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S.B. 27

             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      Committee Note:
             10          The Revenue and Taxation Interim Committee recommended this bill.
             11      General Description:
             12          This bill amends provisions in the Revenue and Taxation title to address certain issues
             13      related to the Utah Supreme Court case Ivory Homes v. Utah State Tax Commission.
             14      Highlighted Provisions:
             15          This bill:
             16          .    amends definitions;
             17          .    amends the circumstances under which a person who pays a tax, fee, or charge
             18      liability may receive a credit or refund;
             19          .    addresses the construction of a statute involving a tax, fee, or charge by the State
             20      Tax Commission or a court;
             21          .    addresses the taxability of a transaction consisting of taxable and nontaxable
             22      property, products, or services;
             23          .    addresses sales and use tax refund procedures; and
             24          .    makes technical and conforming changes.
             25      Money Appropriated in this Bill:
             26          None


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


             58          (B) except that for purposes of Section 59-1-1410 , the term "person" may include a
             59      customer from whom a municipal telecommunications license tax is recovered in accordance
             60      with Subsection 10-1-403 (2); and
             61          (b) a uniform interlocal agreement between the municipality that imposes the
             62      municipal telecommunications license tax and the commission:
             63          (i) that is executed under Title 11, Chapter 13, Interlocal Cooperation Act;
             64          (ii) that complies with Subsection (2)(a); and
             65          (iii) that is developed by rule in accordance with Subsection (2)(b).
             66          (2) (a) The uniform interlocal agreement described in Subsection (1) shall provide that
             67      the commission shall:
             68          (i) transmit money collected under this part monthly by electronic funds transfer by the
             69      commission to the municipality;
             70          (ii) conduct audits of the municipal telecommunications license tax;
             71          (iii) retain and deposit an administrative charge in accordance with Section 59-1-306
             72      from revenues the commission collects from a tax under this part; and
             73          (iv) collect, enforce, and administer the municipal telecommunications license tax
             74      authorized under this part pursuant to the same procedures used in the administration,
             75      collection, and enforcement of the state sales and use tax as provided in Subsection (1)(a).
             76          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             77      commission shall develop a uniform interlocal agreement that meets the requirements of this
             78      section.
             79          (3) If a telecommunications provider pays a municipal telecommunications license tax
             80      to the commission, the telecommunications provider shall pay the municipal
             81      telecommunications license tax to the commission:
             82          (a) monthly on or before the last day of the month immediately following the last day
             83      of the previous month if:
             84          (i) the telecommunications provider is required to file a sales and use tax return with
             85      the commission monthly under Section 59-12-108 ; or
             86          (ii) the telecommunications provider is not required to file a sales and use tax return
             87      under Title 59, Chapter 12, Sales and Use Tax Act; or
             88          (b) quarterly on or before the last day of the month immediately following the last day


             89      of the previous quarter if the telecommunications provider is required to file a sales and use tax
             90      return with the commission quarterly under Section 59-12-108 .
             91          (4) If, on July 1, 2007, a municipality has in effect an ordinance that levies a municipal
             92      telecommunications license tax under this part at a rate that exceeds 3.5%:
             93          (a) except as provided in Subsection (4)(b), beginning on July 1, 2007, the commission
             94      shall collect the municipal telecommunications license tax:
             95          (i) within the municipality;
             96          (ii) at a rate of 3.5%; and
             97          (iii) from a telecommunications provider required to pay the municipal
             98      telecommunications license tax on or after July 1, 2007; and
             99          (b) the commission shall collect a municipal telecommunications license tax within the
             100      municipality at the rate imposed by the municipality if:
             101          (i) after July 1, 2007, the municipality has in effect an ordinance that levies a municipal
             102      telecommunications license tax under this part at a rate of up to 3.5%;
             103          (ii) the municipality meets the requirements of Subsection 10-1-403 (3)(b) in changing
             104      the rate of the municipal telecommunications license tax; and
             105          (iii) a telecommunications provider is required to pay the municipal
             106      telecommunications license tax on or after the day on which the ordinance described in
             107      Subsection (4)(b)(ii) takes effect.
             108          Section 2. Section 59-1-1410 is amended to read:
             109           59-1-1410. Action for collection of tax, fee, or charge -- Action for refund or
             110      credit of tax, fee, or charge -- Denial of refund claim under appeal -- Appeal of denied
             111      refund claim.
             112          (1) (a) Except as provided in Subsections (3) through (7) and Sections 59-5-114 ,
             113      59-7-519 , 59-10-536 , and 59-11-113 , the commission shall assess a tax, fee, or charge within
             114      three years after the day on which a person files a return.
             115          (b) Except as provided in Subsections (3) through (7), if the commission does not
             116      assess a tax, fee, or charge within the three-year period provided in Subsection (1)(a), the
             117      commission may not commence a proceeding to collect the tax, fee, or charge.
             118          (2) (a) Except as provided in Subsection (2)(b), for purposes of this part, a return filed
             119      before the last day prescribed by statute or rule for filing the return is considered to be filed on


             120      the last day for filing the return.
             121          (b) A return of withholding tax under Chapter 10, Part 4, Withholding of Tax, is
             122      considered to be filed on April 15 of the succeeding calendar year if the return:
             123          (i) is for a period ending with or within a calendar year; and
             124          (ii) is filed before April 15 of the succeeding calendar year.
             125          (3) The commission may assess a tax, fee, or charge or commence a proceeding for the
             126      collection of a tax, fee, or charge at any time if:
             127          (a) a person:
             128          (i) files a:
             129          (A) false return with intent to evade; or
             130          (B) fraudulent return with intent to evade; or
             131          (ii) fails to file a return; or
             132          (b) the commission estimates the amount of tax, fee, or charge due in accordance with
             133      Subsection 59-1-1406 (2).
             134          (4) The commission may extend the period to make an assessment or to commence a
             135      proceeding to collect a tax, fee, or charge if:
             136          (a) the three-year period under Subsection (1) has not expired; and
             137          (b) the commission and the person sign a written agreement:
             138          (i) authorizing the extension; and
             139          (ii) providing for the length of the extension.
             140          (5) The commission may make an assessment as provided in Subsection (6) if:
             141          (a) the commission delays an audit at the request of a person;
             142          (b) the person subsequently refuses to agree to an extension request by the commission;
             143      and
             144          (c) the three-year period under Subsection (1) expires before the commission
             145      completes the audit.
             146          (6) An assessment under Subsection (5) shall be:
             147          (a) for the time period for which the commission could not make the assessment
             148      because of the expiration of the three-year period; and
             149          (b) in an amount equal to the difference between:
             150          (i) the commission's estimate of the amount of tax, fee, or charge the person would


             151      have been assessed for the time period described in Subsection (6)(a); and
             152          (ii) the amount of tax, fee, or charge the person actually paid for the time period
             153      described in Subsection (6)(a).
             154          (7) If a person erroneously pays a liability, overpays a liability, pays a liability more
             155      than once, or the commission erroneously receives, collects, or computes a liability, the
             156      commission shall:
             157          (a) credit the liability against any amount of liability the person owes; and
             158          (b) refund any balance to:
             159          (i) the person; or
             160          (ii) (A) the person's assign;
             161          (B) the person's personal representative;
             162          (C) the person's successor; or
             163          (D) a person similar to Subsections (7)(b)(ii)(A) through (C) as determined by the
             164      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             165      Rulemaking Act.
             166          (8) (a) Except as provided in Subsection (8)(b) or Section 19-2-124 , 59-7-522 ,
             167      59-10-529 , or 59-12-110 , the commission may not make a credit or refund unless a person files
             168      a claim with the commission within the later of:
             169          (i) three years from the due date of the return, including the period of any extension of
             170      time provided in statute for filing the return; or
             171          (ii) two years from the date the tax was paid.
             172          (b) The commission shall extend the time period for a person to file a claim under
             173      Subsection (8)(a) if:
             174          (i) the time period described in Subsection (8)(a) has not expired; and
             175          (ii) the commission and the person sign a written agreement:
             176          (A) authorizing the extension; and
             177          (B) providing for the length of the extension.
             178          (9) If the commission denies a claim for a credit or refund, a person may request a
             179      redetermination of the denial by filing a petition or request for agency action with the
             180      commission:
             181          (a) (i) within a 30-day period after the day on which the commission mails a notice of


             182      denial for the claim for credit or refund; or
             183          (ii) within a 90-day period after the day on which the commission mails a notice of
             184      denial for the claim for credit or refund, if the notice is addressed to a person outside the
             185      United States or the District of Columbia; and
             186          (b) in accordance with:
             187          (i) Section 59-1-501 ; and
             188          (ii) Title 63G, Chapter 4, Administrative Procedures Act.
             189          (10) The action of the commission on a person's petition for redetermination of a denial
             190      of a claim for credit or refund is final 30 days after the day on which the commission sends the
             191      commission's decision or order, unless the person seeks judicial review.
             192          Section 3. Section 59-1-1417 is amended to read:
             193           59-1-1417. Burden of proof -- Statutory construction.
             194          (1) In a proceeding before the commission, the burden of proof is on the petitioner
             195      except for determining the following, in which the burden of proof is on the commission:
             196          [(1)] (a) whether the petitioner committed fraud with intent to evade a tax, fee, or
             197      charge;
             198          [(2)] (b) whether the petitioner is obligated as the transferee of property of the person
             199      that originally owes a liability or a preceding transferee, but not to show that the person that
             200      originally owes a liability is obligated for the liability; and
             201          [(3)] (c) whether the petitioner is liable for an increase in a deficiency if the increase is
             202      asserted initially after a notice of deficiency is mailed in accordance with Section 59-1-1405
             203      and a petition under Part 5, Petitions for Redetermination of Deficiencies, is filed, unless the
             204      increase in the deficiency is the result of a change or correction of federal taxable income:
             205          [(a)] (i) required to be reported; and
             206          [(b)] (ii) of which the commission has no notice at the time the commission mails the
             207      notice of deficiency.
             208          (2) Regardless of whether a taxpayer has paid or remitted a tax, fee, or charge, the
             209      commission or a court considering a case involving the tax, fee, or charge shall:
             210          (a) construe a statute imposing the tax, fee, or charge strictly in favor of the taxpayer;
             211      and
             212          (b) construe a statute providing an exemption from or credit against the tax, fee, or


             213      charge strictly against the taxpayer.
             214          Section 4. Section 59-12-102 is amended to read:
             215           59-12-102. Definitions.
             216          As used in this chapter:
             217          (1) "800 service" means a telecommunications service that:
             218          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             219          (b) is typically marketed:
             220          (i) under the name 800 toll-free calling;
             221          (ii) under the name 855 toll-free calling;
             222          (iii) under the name 866 toll-free calling;
             223          (iv) under the name 877 toll-free calling;
             224          (v) under the name 888 toll-free calling; or
             225          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             226      Federal Communications Commission.
             227          (2) (a) "900 service" means an inbound toll telecommunications service that:
             228          (i) a subscriber purchases;
             229          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             230      the subscriber's:
             231          (A) prerecorded announcement; or
             232          (B) live service; and
             233          (iii) is typically marketed:
             234          (A) under the name 900 service; or
             235          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             236      Communications Commission.
             237          (b) "900 service" does not include a charge for:
             238          (i) a collection service a seller of a telecommunications service provides to a
             239      subscriber; or
             240          (ii) the following a subscriber sells to the subscriber's customer:
             241          (A) a product; or
             242          (B) a service.
             243          (3) (a) "Admission or user fees" includes season passes.


             244          (b) "Admission or user fees" does not include annual membership dues to private
             245      organizations.
             246          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             247      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             248      Agreement after November 12, 2002.
             249          (5) "Agreement combined tax rate" means the sum of the tax rates:
             250          (a) listed under Subsection (6); and
             251          (b) that are imposed within a local taxing jurisdiction.
             252          (6) "Agreement sales and use tax" means a tax imposed under:
             253          (a) Subsection 59-12-103 (2)(a)(i)(A);
             254          (b) Subsection 59-12-103 (2)(b)(i);
             255          (c) Subsection 59-12-103 (2)(c)(i);
             256          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             257          (e) Section 59-12-204 ;
             258          (f) Section 59-12-401 ;
             259          (g) Section 59-12-402 ;
             260          (h) Section 59-12-703 ;
             261          (i) Section 59-12-802 ;
             262          (j) Section 59-12-804 ;
             263          (k) Section 59-12-1102 ;
             264          (l) Section 59-12-1302 ;
             265          (m) Section 59-12-1402 ;
             266          (n) Section 59-12-1802 ;
             267          (o) Section 59-12-2003 ;
             268          (p) Section 59-12-2103 ;
             269          (q) Section 59-12-2213 ;
             270          (r) Section 59-12-2214 ;
             271          (s) Section 59-12-2215 ;
             272          (t) Section 59-12-2216 ;
             273          (u) Section 59-12-2217 ; or
             274          (v) Section 59-12-2218 .


             275          (7) "Aircraft" is as defined in Section 72-10-102 .
             276          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             277          (a) except for an airline as defined in Section 59-2-102 or an affiliated group as defined
             278      in Subsection 59-12-107 (1)(f) of an airline; and
             279          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             280      whether the business entity performs the following in this state:
             281          (i) check, diagnose, overhaul, and repair:
             282          (A) an onboard system of a fixed wing turbine powered aircraft; and
             283          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             284          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             285      engine;
             286          (iii) perform at least the following maintenance on a fixed wing turbine powered
             287      aircraft:
             288          (A) an inspection;
             289          (B) a repair, including a structural repair or modification;
             290          (C) changing landing gear; and
             291          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             292          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             293      completely apply new paint to the fixed wing turbine powered aircraft; and
             294          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             295      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             296      authority that certifies the fixed wing turbine powered aircraft.
             297          (9) "Alcoholic beverage" means a beverage that:
             298          (a) is suitable for human consumption; and
             299          (b) contains .5% or more alcohol by volume.
             300          (10) (a) "Ancillary service" means a service associated with, or incidental to, the
             301      provision of telecommunications service.
             302          (b) "Ancillary service" includes:
             303          (i) a conference bridging service;
             304          (ii) a detailed communications billing service;
             305          (iii) directory assistance;


             306          (iv) a vertical service; or
             307          (v) a voice mail service.
             308          (11) "Area agency on aging" is as defined in Section 62A-3-101 .
             309          (12) "Assisted amusement device" means an amusement device, skill device, or ride
             310      device that is started and stopped by an individual:
             311          (a) who is not the purchaser or renter of the right to use or operate the amusement
             312      device, skill device, or ride device; and
             313          (b) at the direction of the seller of the right to use the amusement device, skill device,
             314      or ride device.
             315          (13) "Assisted cleaning or washing of tangible personal property" means cleaning or
             316      washing of tangible personal property if the cleaning or washing labor is primarily performed
             317      by an individual:
             318          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             319      property; and
             320          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             321      property.
             322          (14) "Authorized carrier" means:
             323          (a) in the case of vehicles operated over public highways, the holder of credentials
             324      indicating that the vehicle is or will be operated pursuant to both the International Registration
             325      Plan and the International Fuel Tax Agreement;
             326          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             327      certificate or air carrier's operating certificate; or
             328          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             329      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             330          (15) (a) Except as provided in Subsection (15)(b), "biomass energy" means any of the
             331      following that is used as the primary source of energy to produce fuel or electricity:
             332          (i) material from a plant or tree; or
             333          (ii) other organic matter that is available on a renewable basis, including:
             334          (A) slash and brush from forests and woodlands;
             335          (B) animal waste;
             336          (C) methane produced:


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


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


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


             430          (B) may not use a combination of the seller's purchase price and the seller's sales price
             431      to determine if the purchase price or sales price of the tangible personal property or product
             432      subject to taxation under this chapter is de minimis.
             433          (iii) For purposes of Subsection (16)(b)(vi), a seller shall use the full term of a service
             434      contract to determine if the sales price of tangible personal property or a product is de minimis.
             435          (f) For purposes of Subsection (16)(b)(vii)(B), a seller may not use a combination of
             436      the seller's purchase price and the seller's sales price to determine if tangible personal property
             437      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             438      price of that retail sale.
             439          (17) "Certified automated system" means software certified by the governing board of
             440      the agreement that:
             441          (a) calculates the agreement sales and use tax imposed within a local taxing
             442      jurisdiction:
             443          (i) on a transaction; and
             444          (ii) in the states that are members of the agreement;
             445          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             446      member of the agreement; and
             447          (c) maintains a record of the transaction described in Subsection (17)(a)(i).
             448          (18) "Certified service provider" means an agent certified:
             449          (a) by the governing board of the agreement; and
             450          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             451      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             452      own purchases.
             453          (19) (a) Subject to Subsection (19)(b), "clothing" means all human wearing apparel
             454      suitable for general use.
             455          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             456      commission shall make rules:
             457          (i) listing the items that constitute "clothing"; and
             458          (ii) that are consistent with the list of items that constitute "clothing" under the
             459      agreement.
             460          (20) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.


             461          (21) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             462      fuels that does not constitute industrial use under Subsection (48) or residential use under
             463      Subsection (96).
             464          (22) (a) "Common carrier" means a person engaged in or transacting the business of
             465      transporting passengers, freight, merchandise, or other property for hire within this state.
             466          (b) (i) "Common carrier" does not include a person who, at the time the person is
             467      traveling to or from that person's place of employment, transports a passenger to or from the
             468      passenger's place of employment.
             469          (ii) For purposes of Subsection (22)(b)(i), in accordance with Title 63G, Chapter 3,
             470      Utah Administrative Rulemaking Act, the commission may make rules defining what
             471      constitutes a person's place of employment.
             472          (23) "Component part" includes:
             473          (a) poultry, dairy, and other livestock feed, and their components;
             474          (b) baling ties and twine used in the baling of hay and straw;
             475          (c) fuel used for providing temperature control of orchards and commercial
             476      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             477      off-highway type farm machinery; and
             478          (d) feed, seeds, and seedlings.
             479          (24) "Computer" means an electronic device that accepts information:
             480          (a) (i) in digital form; or
             481          (ii) in a form similar to digital form; and
             482          (b) manipulates that information for a result based on a sequence of instructions.
             483          (25) "Computer software" means a set of coded instructions designed to cause:
             484          (a) a computer to perform a task; or
             485          (b) automatic data processing equipment to perform a task.
             486          (26) (a) "Conference bridging service" means an ancillary service that links two or
             487      more participants of an audio conference call or video conference call.
             488          (b) "Conference bridging service" may include providing a telephone number as part of
             489      the ancillary service described in Subsection (26)(a).
             490          (c) "Conference bridging service" does not include a telecommunications service used
             491      to reach the ancillary service described in Subsection (26)(a).


             492          (27) "Construction materials" means any tangible personal property that will be
             493      converted into real property.
             494          (28) "Delivered electronically" means delivered to a purchaser by means other than
             495      tangible storage media.
             496          (29) (a) "Delivery charge" means a charge:
             497          (i) by a seller of:
             498          (A) tangible personal property;
             499          (B) a product transferred electronically; or
             500          (C) services; and
             501          (ii) for preparation and delivery of the tangible personal property, product transferred
             502      electronically, or services described in Subsection (29)(a)(i) to a location designated by the
             503      purchaser.
             504          (b) "Delivery charge" includes a charge for the following:
             505          (i) transportation;
             506          (ii) shipping;
             507          (iii) postage;
             508          (iv) handling;
             509          (v) crating; or
             510          (vi) packing.
             511          (30) "Detailed telecommunications billing service" means an ancillary service of
             512      separately stating information pertaining to individual calls on a customer's billing statement.
             513          (31) "Dietary supplement" means a product, other than tobacco, that:
             514          (a) is intended to supplement the diet;
             515          (b) contains one or more of the following dietary ingredients:
             516          (i) a vitamin;
             517          (ii) a mineral;
             518          (iii) an herb or other botanical;
             519          (iv) an amino acid;
             520          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             521      dietary intake; or
             522          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient


             523      described in Subsections (31)(b)(i) through (v);
             524          (c) (i) except as provided in Subsection (31)(c)(ii), is intended for ingestion in:
             525          (A) tablet form;
             526          (B) capsule form;
             527          (C) powder form;
             528          (D) softgel form;
             529          (E) gelcap form; or
             530          (F) liquid form; or
             531          (ii) notwithstanding Subsection (31)(c)(i), if the product is not intended for ingestion in
             532      a form described in Subsections (31)(c)(i)(A) through (F), is not represented:
             533          (A) as conventional food; and
             534          (B) for use as a sole item of:
             535          (I) a meal; or
             536          (II) the diet; and
             537          (d) is required to be labeled as a dietary supplement:
             538          (i) identifiable by the "Supplemental Facts" box found on the label; and
             539          (ii) as required by 21 C.F.R. Sec. 101.36.
             540          (32) (a) "Direct mail" means printed material delivered or distributed by United States
             541      mail or other delivery service:
             542          (i) to:
             543          (A) a mass audience; or
             544          (B) addressees on a mailing list provided:
             545          (I) by a purchaser of the mailing list; or
             546          (II) at the discretion of the purchaser of the mailing list; and
             547          (ii) if the cost of the printed material is not billed directly to the recipients.
             548          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             549      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             550          (c) "Direct mail" does not include multiple items of printed material delivered to a
             551      single address.
             552          (33) "Directory assistance" means an ancillary service of providing:
             553          (a) address information; or


             554          (b) telephone number information.
             555          (34) (a) "Disposable home medical equipment or supplies" means medical equipment
             556      or supplies that:
             557          (i) cannot withstand repeated use; and
             558          (ii) are purchased by, for, or on behalf of a person other than:
             559          (A) a health care facility as defined in Section 26-21-2 ;
             560          (B) a health care provider as defined in Section 78B-3-403 ;
             561          (C) an office of a health care provider described in Subsection (34)(a)(ii)(B); or
             562          (D) a person similar to a person described in Subsections (34)(a)(ii)(A) through (C).
             563          (b) "Disposable home medical equipment or supplies" does not include:
             564          (i) a drug;
             565          (ii) durable medical equipment;
             566          (iii) a hearing aid;
             567          (iv) a hearing aid accessory;
             568          (v) mobility enhancing equipment; or
             569          (vi) tangible personal property used to correct impaired vision, including:
             570          (A) eyeglasses; or
             571          (B) contact lenses.
             572          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             573      commission may by rule define what constitutes medical equipment or supplies.
             574          (35) (a) "Drug" means a compound, substance, or preparation, or a component of a
             575      compound, substance, or preparation that is:
             576          (i) recognized in:
             577          (A) the official United States Pharmacopoeia;
             578          (B) the official Homeopathic Pharmacopoeia of the United States;
             579          (C) the official National Formulary; or
             580          (D) a supplement to a publication listed in Subsections (35)(a)(i)(A) through (C);
             581          (ii) intended for use in the:
             582          (A) diagnosis of disease;
             583          (B) cure of disease;
             584          (C) mitigation of disease;


             585          (D) treatment of disease; or
             586          (E) prevention of disease; or
             587          (iii) intended to affect:
             588          (A) the structure of the body; or
             589          (B) any function of the body.
             590          (b) "Drug" does not include:
             591          (i) food and food ingredients;
             592          (ii) a dietary supplement;
             593          (iii) an alcoholic beverage; or
             594          (iv) a prosthetic device.
             595          (36) (a) Except as provided in Subsection (36)(c), "durable medical equipment" means
             596      equipment that:
             597          (i) can withstand repeated use;
             598          (ii) is primarily and customarily used to serve a medical purpose;
             599          (iii) generally is not useful to a person in the absence of illness or injury; and
             600          (iv) is not worn in or on the body.
             601          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             602      equipment described in Subsection (36)(a).
             603          (c) Notwithstanding Subsection (36)(a), "durable medical equipment" does not include
             604      mobility enhancing equipment.
             605          (37) "Electronic" means:
             606          (a) relating to technology; and
             607          (b) having:
             608          (i) electrical capabilities;
             609          (ii) digital capabilities;
             610          (iii) magnetic capabilities;
             611          (iv) wireless capabilities;
             612          (v) optical capabilities;
             613          (vi) electromagnetic capabilities; or
             614          (vii) capabilities similar to Subsections (37)(b)(i) through (vi).
             615          (38) "Employee" is as defined in Section 59-10-401 .


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


             647          (B) made by a school student;
             648          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             649      materials, or provide transportation; and
             650          (iii) that are part of an officially sanctioned school activity.
             651          (b) For purposes of Subsection (43)(a)(iii), "officially sanctioned school activity"
             652      means a school activity:
             653          (i) that is conducted in accordance with a formal policy adopted by the school or school
             654      district governing the authorization and supervision of fundraising activities;
             655          (ii) that does not directly or indirectly compensate an individual teacher or other
             656      educational personnel by direct payment, commissions, or payment in kind; and
             657          (iii) the net or gross revenues from which are deposited in a dedicated account
             658      controlled by the school or school district.
             659          (44) "Geothermal energy" means energy contained in heat that continuously flows
             660      outward from the earth that is used as the sole source of energy to produce electricity.
             661          (45) "Governing board of the agreement" means the governing board of the agreement
             662      that is:
             663          (a) authorized to administer the agreement; and
             664          (b) established in accordance with the agreement.
             665          (46) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             666          (i) the executive branch of the state, including all departments, institutions, boards,
             667      divisions, bureaus, offices, commissions, and committees;
             668          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             669      Office of the Court Administrator, and similar administrative units in the judicial branch;
             670          (iii) the legislative branch of the state, including the House of Representatives, the
             671      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             672      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             673      Analyst;
             674          (iv) the National Guard;
             675          (v) an independent entity as defined in Section 63E-1-102 ; or
             676          (vi) a political subdivision as defined in Section 17B-1-102 .
             677          (b) "Governmental entity" does not include the state systems of public and higher


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


             709          (F) plastic;
             710          (G) textile; or
             711          (H) rubber; and
             712          (ii) the new products under Subsection (48)(d)(i) would otherwise be made with
             713      nonrecycled materials; or
             714          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             715      cogeneration facility as defined in Section 54-2-1 .
             716          (49) (a) Except as provided in Subsection (49)(b), "installation charge" means a charge
             717      for installing:
             718          (i) tangible personal property; or
             719          (ii) a product transferred electronically.
             720          (b) "Installation charge" does not include a charge for:
             721          (i) repairs or renovations of:
             722          (A) tangible personal property; or
             723          (B) a product transferred electronically; or
             724          (ii) attaching tangible personal property or a product transferred electronically:
             725          (A) to other tangible personal property; and
             726          (B) as part of a manufacturing or fabrication process.
             727          (50) "Institution of higher education" means an institution of higher education listed in
             728      Section 53B-2-101 .
             729          (51) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             730      personal property or a product transferred electronically for:
             731          (i) (A) a fixed term; or
             732          (B) an indeterminate term; and
             733          (ii) consideration.
             734          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             735      amount of consideration may be increased or decreased by reference to the amount realized
             736      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             737      Code.
             738          (c) "Lease" or "rental" does not include:
             739          (i) a transfer of possession or control of property under a security agreement or


             740      deferred payment plan that requires the transfer of title upon completion of the required
             741      payments;
             742          (ii) a transfer of possession or control of property under an agreement that requires the
             743      transfer of title:
             744          (A) upon completion of required payments; and
             745          (B) if the payment of an option price does not exceed the greater of:
             746          (I) $100; or
             747          (II) 1% of the total required payments; or
             748          (iii) providing tangible personal property along with an operator for a fixed period of
             749      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             750      designed.
             751          (d) For purposes of Subsection(51)(c)(iii), an operator is necessary for equipment to
             752      perform as designed if the operator's duties exceed the:
             753          (i) set-up of tangible personal property;
             754          (ii) maintenance of tangible personal property; or
             755          (iii) inspection of tangible personal property.
             756          (52) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             757      if the tangible storage media is not physically transferred to the purchaser.
             758          (53) "Local taxing jurisdiction" means a:
             759          (a) county that is authorized to impose an agreement sales and use tax;
             760          (b) city that is authorized to impose an agreement sales and use tax; or
             761          (c) town that is authorized to impose an agreement sales and use tax.
             762          (54) "Manufactured home" is as defined in Section 15A-1-302 .
             763          (55) For purposes of Section 59-12-104 , "manufacturing facility" means:
             764          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             765      Industrial Classification Manual of the federal Executive Office of the President, Office of
             766      Management and Budget;
             767          (b) a scrap recycler if:
             768          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             769      one or more of the following items into prepared grades of processed materials for use in new
             770      products:


             771          (A) iron;
             772          (B) steel;
             773          (C) nonferrous metal;
             774          (D) paper;
             775          (E) glass;
             776          (F) plastic;
             777          (G) textile; or
             778          (H) rubber; and
             779          (ii) the new products under Subsection (55)(b)(i) would otherwise be made with
             780      nonrecycled materials; or
             781          (c) a cogeneration facility as defined in Section 54-2-1 .
             782          (56) "Member of the immediate family of the producer" means a person who is related
             783      to a producer described in Subsection 59-12-104 (20)(a) as a:
             784          (a) child or stepchild, regardless of whether the child or stepchild is:
             785          (i) an adopted child or adopted stepchild; or
             786          (ii) a foster child or foster stepchild;
             787          (b) grandchild or stepgrandchild;
             788          (c) grandparent or stepgrandparent;
             789          (d) nephew or stepnephew;
             790          (e) niece or stepniece;
             791          (f) parent or stepparent;
             792          (g) sibling or stepsibling;
             793          (h) spouse;
             794          (i) person who is the spouse of a person described in Subsections (56)(a) through (g);
             795      or
             796          (j) person similar to a person described in Subsections (56)(a) through (i) as
             797      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             798      Administrative Rulemaking Act.
             799          (57) "Mobile home" is as defined in Section 15A-1-302 .
             800          (58) "Mobile telecommunications service" is as defined in the Mobile
             801      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.


             802          (59) (a) "Mobile wireless service" means a telecommunications service, regardless of
             803      the technology used, if:
             804          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             805          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             806          (iii) the origination point described in Subsection (59)(a)(i) and the termination point
             807      described in Subsection (59)(a)(ii) are not fixed.
             808          (b) "Mobile wireless service" includes a telecommunications service that is provided
             809      by a commercial mobile radio service provider.
             810          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             811      commission may by rule define "commercial mobile radio service provider."
             812          (60) (a) Except as provided in Subsection (60)(c), "mobility enhancing equipment"
             813      means equipment that is:
             814          (i) primarily and customarily used to provide or increase the ability to move from one
             815      place to another;
             816          (ii) appropriate for use in a:
             817          (A) home; or
             818          (B) motor vehicle; and
             819          (iii) not generally used by persons with normal mobility.
             820          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             821      the equipment described in Subsection (60)(a).
             822          (c) Notwithstanding Subsection (60)(a), "mobility enhancing equipment" does not
             823      include:
             824          (i) a motor vehicle;
             825          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             826      vehicle manufacturer;
             827          (iii) durable medical equipment; or
             828          (iv) a prosthetic device.
             829          (61) "Model 1 seller" means a seller registered under the agreement that has selected a
             830      certified service provider as the seller's agent to perform all of the seller's sales and use tax
             831      functions for agreement sales and use taxes other than the seller's obligation under Section
             832      59-12-124 to remit a tax on the seller's own purchases.


             833          (62) "Model 2 seller" means a seller registered under the agreement that:
             834          (a) except as provided in Subsection (62)(b), has selected a certified automated system
             835      to perform the seller's sales tax functions for agreement sales and use taxes; and
             836          (b) notwithstanding Subsection (62)(a), retains responsibility for remitting all of the
             837      sales tax:
             838          (i) collected by the seller; and
             839          (ii) to the appropriate local taxing jurisdiction.
             840          (63) (a) Subject to Subsection (63)(b), "model 3 seller" means a seller registered under
             841      the agreement that has:
             842          (i) sales in at least five states that are members of the agreement;
             843          (ii) total annual sales revenues of at least $500,000,000;
             844          (iii) a proprietary system that calculates the amount of tax:
             845          (A) for an agreement sales and use tax; and
             846          (B) due to each local taxing jurisdiction; and
             847          (iv) entered into a performance agreement with the governing board of the agreement.
             848          (b) For purposes of Subsection (63)(a), "model 3 seller" includes an affiliated group of
             849      sellers using the same proprietary system.
             850          (64) "Model 4 seller" means a seller that is registered under the agreement and is not a
             851      model 1 seller, model 2 seller, or model 3 seller.
             852          (65) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             853          (66) "Motor vehicle" is as defined in Section 41-1a-102 .
             854          (67) "Oil shale" means a group of fine black to dark brown shales containing
             855      bituminous material that yields petroleum upon distillation.
             856          (68) (a) "Other fuels" means products that burn independently to produce heat or
             857      energy.
             858          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             859      personal property.
             860          (69) (a) "Paging service" means a telecommunications service that provides
             861      transmission of a coded radio signal for the purpose of activating a specific pager.
             862          (b) For purposes of Subsection (69)(a), the transmission of a coded radio signal
             863      includes a transmission by message or sound.


             864          (70) "Pawnbroker" is as defined in Section 13-32a-102 .
             865          (71) "Pawn transaction" is as defined in Section 13-32a-102 .
             866          (72) (a) "Permanently attached to real property" means that for tangible personal
             867      property attached to real property:
             868          (i) the attachment of the tangible personal property to the real property:
             869          (A) is essential to the use of the tangible personal property; and
             870          (B) suggests that the tangible personal property will remain attached to the real
             871      property in the same place over the useful life of the tangible personal property; or
             872          (ii) if the tangible personal property is detached from the real property, the detachment
             873      would:
             874          (A) cause substantial damage to the tangible personal property; or
             875          (B) require substantial alteration or repair of the real property to which the tangible
             876      personal property is attached.
             877          (b) "Permanently attached to real property" includes:
             878          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             879          (A) essential to the operation of the tangible personal property; and
             880          (B) attached only to facilitate the operation of the tangible personal property;
             881          (ii) a temporary detachment of tangible personal property from real property for a
             882      repair or renovation if the repair or renovation is performed where the tangible personal
             883      property and real property are located; or
             884          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             885      Subsection (72)(c)(iii) or (iv).
             886          (c) "Permanently attached to real property" does not include:
             887          (i) the attachment of portable or movable tangible personal property to real property if
             888      that portable or movable tangible personal property is attached to real property only for:
             889          (A) convenience;
             890          (B) stability; or
             891          (C) for an obvious temporary purpose;
             892          (ii) the detachment of tangible personal property from real property except for the
             893      detachment described in Subsection (72)(b)(ii);
             894          (iii) an attachment of the following tangible personal property to real property if the


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


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


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


             988          (IV) raw poultry; or
             989          (V) a food containing an item described in Subsections (79)(b)(ii)(A)(I) through (IV);
             990      and
             991          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             992      Food and Drug Administration's Food Code that a consumer cook the items described in
             993      Subsection (79)(b)(ii)(A) to prevent food borne illness; or
             994          (iii) the following if sold without eating utensils provided by the seller:
             995          (A) food and food ingredients sold by a seller if the seller's proper primary
             996      classification under the 2002 North American Industry Classification System of the federal
             997      Executive Office of the President, Office of Management and Budget, is manufacturing in
             998      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             999      Manufacturing;
             1000          (B) food and food ingredients sold in an unheated state:
             1001          (I) by weight or volume; and
             1002          (II) as a single item; or
             1003          (C) a bakery item, including:
             1004          (I) a bagel;
             1005          (II) a bar;
             1006          (III) a biscuit;
             1007          (IV) bread;
             1008          (V) a bun;
             1009          (VI) a cake;
             1010          (VII) a cookie;
             1011          (VIII) a croissant;
             1012          (IX) a danish;
             1013          (X) a donut;
             1014          (XI) a muffin;
             1015          (XII) a pastry;
             1016          (XIII) a pie;
             1017          (XIV) a roll;
             1018          (XV) a tart;


             1019          (XVI) a torte; or
             1020          (XVII) a tortilla.
             1021          (c) Notwithstanding Subsection (79)(a)(iii), an eating utensil provided by the seller
             1022      does not include the following used to transport the food:
             1023          (i) a container; or
             1024          (ii) packaging.
             1025          (80) "Prescription" means an order, formula, or recipe that is issued:
             1026          (a) (i) orally;
             1027          (ii) in writing;
             1028          (iii) electronically; or
             1029          (iv) by any other manner of transmission; and
             1030          (b) by a licensed practitioner authorized by the laws of a state.
             1031          (81) (a) Except as provided in Subsection (81)(b)(ii) or (iii), "prewritten computer
             1032      software" means computer software that is not designed and developed:
             1033          (i) by the author or other creator of the computer software; and
             1034          (ii) to the specifications of a specific purchaser.
             1035          (b) "Prewritten computer software" includes:
             1036          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             1037      software is not designed and developed:
             1038          (A) by the author or other creator of the computer software; and
             1039          (B) to the specifications of a specific purchaser;
             1040          (ii) notwithstanding Subsection (81)(a), computer software designed and developed by
             1041      the author or other creator of the computer software to the specifications of a specific purchaser
             1042      if the computer software is sold to a person other than the purchaser; or
             1043          (iii) notwithstanding Subsection (81)(a) and except as provided in Subsection (81)(c),
             1044      prewritten computer software or a prewritten portion of prewritten computer software:
             1045          (A) that is modified or enhanced to any degree; and
             1046          (B) if the modification or enhancement described in Subsection (81)(b)(iii)(A) is
             1047      designed and developed to the specifications of a specific purchaser.
             1048          (c) Notwithstanding Subsection (81)(b)(iii), "prewritten computer software" does not
             1049      include a modification or enhancement described in Subsection (81)(b)(iii) if the charges for


             1050      the modification or enhancement are:
             1051          (i) reasonable; and
             1052          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), separately stated on the
             1053      invoice or other statement of price provided to the purchaser at the time of sale or later, as
             1054      demonstrated by the books and records the seller keeps at the time of the transaction in the
             1055      regular course of business, including books and records the seller keeps at the time of the
             1056      transaction in the regular course of business for nontax purposes.
             1057          (82) (a) "Private communication service" means a telecommunications service:
             1058          (i) that entitles a customer to exclusive or priority use of one or more communications
             1059      channels between or among termination points; and
             1060          (ii) regardless of the manner in which the one or more communications channels are
             1061      connected.
             1062          (b) "Private communications service" includes the following provided in connection
             1063      with the use of one or more communications channels:
             1064          (i) an extension line;
             1065          (ii) a station;
             1066          (iii) switching capacity; or
             1067          (iv) another associated service that is provided in connection with the use of one or
             1068      more communications channels as defined in Section 59-12-215 .
             1069          (83) (a) Except as provided in Subsection (83)(b), "product transferred electronically"
             1070      means a product transferred electronically that would be subject to a tax under this chapter if
             1071      that product was transferred in a manner other than electronically.
             1072          (b) "Product transferred electronically" does not include:
             1073          (i) an ancillary service;
             1074          (ii) computer software; or
             1075          (iii) a telecommunications service.
             1076          (84) (a) "Prosthetic device" means a device that is worn on or in the body to:
             1077          (i) artificially replace a missing portion of the body;
             1078          (ii) prevent or correct a physical deformity or physical malfunction; or
             1079          (iii) support a weak or deformed portion of the body.
             1080          (b) "Prosthetic device" includes:


             1081          (i) parts used in the repairs or renovation of a prosthetic device;
             1082          (ii) replacement parts for a prosthetic device;
             1083          (iii) a dental prosthesis; or
             1084          (iv) a hearing aid.
             1085          (c) "Prosthetic device" does not include:
             1086          (i) corrective eyeglasses; or
             1087          (ii) contact lenses.
             1088          (85) (a) "Protective equipment" means an item:
             1089          (i) for human wear; and
             1090          (ii) that is:
             1091          (A) designed as protection:
             1092          (I) to the wearer against injury or disease; or
             1093          (II) against damage or injury of other persons or property; and
             1094          (B) not suitable for general use.
             1095          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1096      commission shall make rules:
             1097          (i) listing the items that constitute "protective equipment"; and
             1098          (ii) that are consistent with the list of items that constitute "protective equipment"
             1099      under the agreement.
             1100          (86) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             1101      printed matter, other than a photocopy:
             1102          (i) regardless of:
             1103          (A) characteristics;
             1104          (B) copyright;
             1105          (C) form;
             1106          (D) format;
             1107          (E) method of reproduction; or
             1108          (F) source; and
             1109          (ii) made available in printed or electronic format.
             1110          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1111      commission may by rule define the term "photocopy."


             1112          (87) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             1113          (i) valued in money; and
             1114          (ii) for which tangible personal property, a product transferred electronically, or
             1115      services are:
             1116          (A) sold;
             1117          (B) leased; or
             1118          (C) rented.
             1119          (b) "Purchase price" and "sales price" include:
             1120          (i) the seller's cost of the tangible personal property, a product transferred
             1121      electronically, or services sold;
             1122          (ii) expenses of the seller, including:
             1123          (A) the cost of materials used;
             1124          (B) a labor cost;
             1125          (C) a service cost;
             1126          (D) interest;
             1127          (E) a loss;
             1128          (F) the cost of transportation to the seller; or
             1129          (G) a tax imposed on the seller;
             1130          (iii) a charge by the seller for any service necessary to complete the sale; or
             1131          (iv) consideration a seller receives from a person other than the purchaser if:
             1132          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             1133      and
             1134          (II) the consideration described in Subsection (87)(b)(iv)(A)(I) is directly related to a
             1135      price reduction or discount on the sale;
             1136          (B) the seller has an obligation to pass the price reduction or discount through to the
             1137      purchaser;
             1138          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             1139      the seller at the time of the sale to the purchaser; and
             1140          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             1141      seller to claim a price reduction or discount; and
             1142          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,


             1143      coupon, or other documentation with the understanding that the person other than the seller
             1144      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             1145          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             1146      organization allowed a price reduction or discount, except that a preferred customer card that is
             1147      available to any patron of a seller does not constitute membership in a group or organization
             1148      allowed a price reduction or discount; or
             1149          (III) the price reduction or discount is identified as a third party price reduction or
             1150      discount on the:
             1151          (Aa) invoice the purchaser receives; or
             1152          (Bb) certificate, coupon, or other documentation the purchaser presents.
             1153          (c) "Purchase price" and "sales price" do not include:
             1154          (i) a discount:
             1155          (A) in a form including:
             1156          (I) cash;
             1157          (II) term; or
             1158          (III) coupon;
             1159          (B) that is allowed by a seller;
             1160          (C) taken by a purchaser on a sale; and
             1161          (D) that is not reimbursed by a third party; or
             1162          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), the following if separately
             1163      stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
             1164      sale or later, as demonstrated by the books and records the seller keeps at the time of the
             1165      transaction in the regular course of business, including books and records the seller keeps at the
             1166      time of the transaction in the regular course of business for nontax purposes:
             1167          (A) the following from credit extended on the sale of tangible personal property or
             1168      services:
             1169          (I) a carrying charge;
             1170          (II) a financing charge; or
             1171          (III) an interest charge;
             1172          (B) a delivery charge;
             1173          (C) an installation charge;


             1174          (D) a manufacturer rebate on a motor vehicle; or
             1175          (E) a tax or fee legally imposed directly on the consumer.
             1176          (88) "Purchaser" means a person to whom:
             1177          (a) a sale of tangible personal property is made;
             1178          (b) a product is transferred electronically; or
             1179          (c) a service is furnished.
             1180          (89) "Regularly rented" means:
             1181          (a) rented to a guest for value three or more times during a calendar year; or
             1182          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1183      value.
             1184          (90) "Renewable energy" means:
             1185          (a) biomass energy;
             1186          (b) hydroelectric energy;
             1187          (c) geothermal energy;
             1188          (d) solar energy; or
             1189          (e) wind energy.
             1190          (91) (a) "Renewable energy production facility" means a facility that:
             1191          (i) uses renewable energy to produce electricity; and
             1192          (ii) has a production capacity of 20 kilowatts or greater.
             1193          (b) A facility is a renewable energy production facility regardless of whether the
             1194      facility is:
             1195          (i) connected to an electric grid; or
             1196          (ii) located on the premises of an electricity consumer.
             1197          (92) "Rental" is as defined in Subsection (51).
             1198          (93) (a) Except as provided in Subsection (93)(b), "repairs or renovations of tangible
             1199      personal property" means:
             1200          (i) a repair or renovation of tangible personal property that is not permanently attached
             1201      to real property; or
             1202          (ii) attaching tangible personal property or a product transferred electronically to other
             1203      tangible personal property if:
             1204          (A) the other tangible personal property to which the tangible personal property or


             1205      product transferred electronically is attached is not permanently attached to real property; and
             1206          (B) the attachment of tangible personal property or a product transferred electronically
             1207      to other tangible personal property is made in conjunction with a repair or replacement of
             1208      tangible personal property or a product transferred electronically.
             1209          (b) "Repairs or renovations of tangible personal property" does not include attaching
             1210      prewritten computer software to other tangible personal property if the other tangible personal
             1211      property to which the prewritten computer software is attached is not permanently attached to
             1212      real property.
             1213          (94) "Research and development" means the process of inquiry or experimentation
             1214      aimed at the discovery of facts, devices, technologies, or applications and the process of
             1215      preparing those devices, technologies, or applications for marketing.
             1216          (95) (a) "Residential telecommunications services" means a telecommunications
             1217      service or an ancillary service that is provided to an individual for personal use:
             1218          (i) at a residential address; or
             1219          (ii) at an institution, including a nursing home or a school, if the telecommunications
             1220      service or ancillary service is provided to and paid for by the individual residing at the
             1221      institution rather than the institution.
             1222          (b) For purposes of Subsection (95)(a)(i), a residential address includes an:
             1223          (i) apartment; or
             1224          (ii) other individual dwelling unit.
             1225          (96) "Residential use" means the use in or around a home, apartment building, sleeping
             1226      quarters, and similar facilities or accommodations.
             1227          (97) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             1228      than:
             1229          (a) resale;
             1230          (b) sublease; or
             1231          (c) subrent.
             1232          (98) (a) "Retailer" means any person engaged in a regularly organized business in
             1233      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             1234      who is selling to the user or consumer and not for resale.
             1235          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly


             1236      engaged in the business of selling to users or consumers within the state.
             1237          (99) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1238      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1239      Subsection 59-12-103 (1), for consideration.
             1240          (b) "Sale" includes:
             1241          (i) installment and credit sales;
             1242          (ii) any closed transaction constituting a sale;
             1243          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1244      chapter;
             1245          (iv) any transaction if the possession of property is transferred but the seller retains the
             1246      title as security for the payment of the price; and
             1247          (v) any transaction under which right to possession, operation, or use of any article of
             1248      tangible personal property is granted under a lease or contract and the transfer of possession
             1249      would be taxable if an outright sale were made.
             1250          (100) "Sale at retail" is as defined in Subsection (97).
             1251          (101) "Sale-leaseback transaction" means a transaction by which title to tangible
             1252      personal property or a product transferred electronically that is subject to a tax under this
             1253      chapter is transferred:
             1254          (a) by a purchaser-lessee;
             1255          (b) to a lessor;
             1256          (c) for consideration; and
             1257          (d) if:
             1258          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1259      of the tangible personal property or product transferred electronically;
             1260          (ii) the sale of the tangible personal property or product transferred electronically to the
             1261      lessor is intended as a form of financing:
             1262          (A) for the tangible personal property or product transferred electronically; and
             1263          (B) to the purchaser-lessee; and
             1264          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1265      is required to:
             1266          (A) capitalize the tangible personal property or product transferred electronically for


             1267      financial reporting purposes; and
             1268          (B) account for the lease payments as payments made under a financing arrangement.
             1269          (102) "Sales price" is as defined in Subsection (87).
             1270          (103) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             1271      amounts charged by a school:
             1272          (i) sales that are directly related to the school's educational functions or activities
             1273      including:
             1274          (A) the sale of:
             1275          (I) textbooks;
             1276          (II) textbook fees;
             1277          (III) laboratory fees;
             1278          (IV) laboratory supplies; or
             1279          (V) safety equipment;
             1280          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1281      that:
             1282          (I) a student is specifically required to wear as a condition of participation in a
             1283      school-related event or school-related activity; and
             1284          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1285      place of ordinary clothing;
             1286          (C) sales of the following if the net or gross revenues generated by the sales are
             1287      deposited into a school district fund or school fund dedicated to school meals:
             1288          (I) food and food ingredients; or
             1289          (II) prepared food; or
             1290          (D) transportation charges for official school activities; or
             1291          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1292      event or school-related activity.
             1293          (b) "Sales relating to schools" does not include:
             1294          (i) bookstore sales of items that are not educational materials or supplies;
             1295          (ii) except as provided in Subsection (103)(a)(i)(B):
             1296          (A) clothing;
             1297          (B) clothing accessories or equipment;


             1298          (C) protective equipment; or
             1299          (D) sports or recreational equipment; or
             1300          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1301      event or school-related activity if the amounts paid or charged are passed through to a person:
             1302          (A) other than a:
             1303          (I) school;
             1304          (II) nonprofit organization authorized by a school board or a governing body of a
             1305      private school to organize and direct a competitive secondary school activity; or
             1306          (III) nonprofit association authorized by a school board or a governing body of a
             1307      private school to organize and direct a competitive secondary school activity; and
             1308          (B) that is required to collect sales and use taxes under this chapter.
             1309          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1310      commission may make rules defining the term "passed through."
             1311          (104) For purposes of this section and Section 59-12-104 , "school":
             1312          (a) means:
             1313          (i) an elementary school or a secondary school that:
             1314          (A) is a:
             1315          (I) public school; or
             1316          (II) private school; and
             1317          (B) provides instruction for one or more grades kindergarten through 12; or
             1318          (ii) a public school district; and
             1319          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1320          (105) "Seller" means a person that makes a sale, lease, or rental of:
             1321          (a) tangible personal property;
             1322          (b) a product transferred electronically; or
             1323          (c) a service.
             1324          (106) (a) "Semiconductor fabricating, processing, research, or development materials"
             1325      means tangible personal property or a product transferred electronically if the tangible personal
             1326      property or product transferred electronically is:
             1327          (i) used primarily in the process of:
             1328          (A) (I) manufacturing a semiconductor;


             1329          (II) fabricating a semiconductor; or
             1330          (III) research or development of a:
             1331          (Aa) semiconductor; or
             1332          (Bb) semiconductor manufacturing process; or
             1333          (B) maintaining an environment suitable for a semiconductor; or
             1334          (ii) consumed primarily in the process of:
             1335          (A) (I) manufacturing a semiconductor;
             1336          (II) fabricating a semiconductor; or
             1337          (III) research or development of a:
             1338          (Aa) semiconductor; or
             1339          (Bb) semiconductor manufacturing process; or
             1340          (B) maintaining an environment suitable for a semiconductor.
             1341          (b) "Semiconductor fabricating, processing, research, or development materials"
             1342      includes:
             1343          (i) parts used in the repairs or renovations of tangible personal property or a product
             1344      transferred electronically described in Subsection (106)(a); or
             1345          (ii) a chemical, catalyst, or other material used to:
             1346          (A) produce or induce in a semiconductor a:
             1347          (I) chemical change; or
             1348          (II) physical change;
             1349          (B) remove impurities from a semiconductor; or
             1350          (C) improve the marketable condition of a semiconductor.
             1351          (107) "Senior citizen center" means a facility having the primary purpose of providing
             1352      services to the aged as defined in Section 62A-3-101 .
             1353          (108) "Simplified electronic return" means the electronic return:
             1354          (a) described in Section 318(C) of the agreement; and
             1355          (b) approved by the governing board of the agreement.
             1356          (109) "Solar energy" means the sun used as the sole source of energy for producing
             1357      electricity.
             1358          (110) (a) "Sports or recreational equipment" means an item:
             1359          (i) designed for human use; and


             1360          (ii) that is:
             1361          (A) worn in conjunction with:
             1362          (I) an athletic activity; or
             1363          (II) a recreational activity; and
             1364          (B) not suitable for general use.
             1365          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1366      commission shall make rules:
             1367          (i) listing the items that constitute "sports or recreational equipment"; and
             1368          (ii) that are consistent with the list of items that constitute "sports or recreational
             1369      equipment" under the agreement.
             1370          (111) "State" means the state of Utah, its departments, and agencies.
             1371          (112) "Storage" means any keeping or retention of tangible personal property or any
             1372      other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
             1373      sale in the regular course of business.
             1374          (113) (a) Except as provided in Subsection (113)(d) or (e), "tangible personal property"
             1375      means personal property that:
             1376          (i) may be:
             1377          (A) seen;
             1378          (B) weighed;
             1379          (C) measured;
             1380          (D) felt; or
             1381          (E) touched; or
             1382          (ii) is in any manner perceptible to the senses.
             1383          (b) "Tangible personal property" includes:
             1384          (i) electricity;
             1385          (ii) water;
             1386          (iii) gas;
             1387          (iv) steam; or
             1388          (v) prewritten computer software, regardless of the manner in which the prewritten
             1389      computer software is transferred.
             1390          (c) "Tangible personal property" includes the following regardless of whether the item


             1391      is attached to real property:
             1392          (i) a dishwasher;
             1393          (ii) a dryer;
             1394          (iii) a freezer;
             1395          (iv) a microwave;
             1396          (v) a refrigerator;
             1397          (vi) a stove;
             1398          (vii) a washer; or
             1399          (viii) an item similar to Subsections (113)(c)(i) through (vii) as determined by the
             1400      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1401      Rulemaking Act.
             1402          (d) "Tangible personal property" does not include a product that is transferred
             1403      electronically.
             1404          (e) "Tangible personal property" does not include the following if attached to real
             1405      property, regardless of whether the attachment to real property is only through a line that
             1406      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             1407      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1408      Rulemaking Act:
             1409          (i) a hot water heater;
             1410          (ii) a water filtration system; or
             1411          (iii) a water softener system.
             1412          (114) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
             1413      and require further processing other than mechanical blending before becoming finished
             1414      petroleum products.
             1415          (115) (a) "Telecommunications enabling or facilitating equipment, machinery, or
             1416      software" means an item listed in Subsection (115)(b) if that item is purchased or leased
             1417      primarily to enable or facilitate one or more of the following to function:
             1418          (i) telecommunications switching or routing equipment, machinery, or software; or
             1419          (ii) telecommunications transmission equipment, machinery, or software.
             1420          (b) The following apply to Subsection (115)(a):
             1421          (i) a pole;


             1422          (ii) software;
             1423          (iii) a supplementary power supply;
             1424          (iv) temperature or environmental equipment or machinery;
             1425          (v) test equipment;
             1426          (vi) a tower; or
             1427          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1428      Subsections (115)(b)(i) through (vi) as determined by the commission by rule made in
             1429      accordance with Subsection (115)(c).
             1430          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1431      commission may by rule define what constitutes equipment, machinery, or software that
             1432      functions similarly to an item listed in Subsections (115)(b)(i) through (vi).
             1433          (116) "Telecommunications equipment, machinery, or software required for 911
             1434      service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
             1435      Sec. 20.18.
             1436          (117) "Telecommunications maintenance or repair equipment, machinery, or software"
             1437      means equipment, machinery, or software purchased or leased primarily to maintain or repair
             1438      one or more of the following, regardless of whether the equipment, machinery, or software is
             1439      purchased or leased as a spare part or as an upgrade or modification to one or more of the
             1440      following:
             1441          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1442          (b) telecommunications switching or routing equipment, machinery, or software; or
             1443          (c) telecommunications transmission equipment, machinery, or software.
             1444          (118) (a) "Telecommunications service" means the electronic conveyance, routing, or
             1445      transmission of audio, data, video, voice, or any other information or signal to a point, or
             1446      among or between points.
             1447          (b) "Telecommunications service" includes:
             1448          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             1449      processing application is used to act:
             1450          (A) on the code, form, or protocol of the content;
             1451          (B) for the purpose of electronic conveyance, routing, or transmission; and
             1452          (C) regardless of whether the service:


             1453          (I) is referred to as voice over Internet protocol service; or
             1454          (II) is classified by the Federal Communications Commission as enhanced or value
             1455      added;
             1456          (ii) an 800 service;
             1457          (iii) a 900 service;
             1458          (iv) a fixed wireless service;
             1459          (v) a mobile wireless service;
             1460          (vi) a postpaid calling service;
             1461          (vii) a prepaid calling service;
             1462          (viii) a prepaid wireless calling service; or
             1463          (ix) a private communications service.
             1464          (c) "Telecommunications service" does not include:
             1465          (i) advertising, including directory advertising;
             1466          (ii) an ancillary service;
             1467          (iii) a billing and collection service provided to a third party;
             1468          (iv) a data processing and information service if:
             1469          (A) the data processing and information service allows data to be:
             1470          (I) (Aa) acquired;
             1471          (Bb) generated;
             1472          (Cc) processed;
             1473          (Dd) retrieved; or
             1474          (Ee) stored; and
             1475          (II) delivered by an electronic transmission to a purchaser; and
             1476          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             1477      or information;
             1478          (v) installation or maintenance of the following on a customer's premises:
             1479          (A) equipment; or
             1480          (B) wiring;
             1481          (vi) Internet access service;
             1482          (vii) a paging service;
             1483          (viii) a product transferred electronically, including:


             1484          (A) music;
             1485          (B) reading material;
             1486          (C) a ring tone;
             1487          (D) software; or
             1488          (E) video;
             1489          (ix) a radio and television audio and video programming service:
             1490          (A) regardless of the medium; and
             1491          (B) including:
             1492          (I) furnishing conveyance, routing, or transmission of a television audio and video
             1493      programming service by a programming service provider;
             1494          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             1495          (III) audio and video programming services delivered by a commercial mobile radio
             1496      service provider as defined in 47 C.F.R. Sec. 20.3;
             1497          (x) a value-added nonvoice data service; or
             1498          (xi) tangible personal property.
             1499          (119) (a) "Telecommunications service provider" means a person that:
             1500          (i) owns, controls, operates, or manages a telecommunications service; and
             1501          (ii) engages in an activity described in Subsection (119)(a)(i) for the shared use with or
             1502      resale to any person of the telecommunications service.
             1503          (b) A person described in Subsection (119)(a) is a telecommunications service provider
             1504      whether or not the Public Service Commission of Utah regulates:
             1505          (i) that person; or
             1506          (ii) the telecommunications service that the person owns, controls, operates, or
             1507      manages.
             1508          (120) (a) "Telecommunications switching or routing equipment, machinery, or
             1509      software" means an item listed in Subsection (120)(b) if that item is purchased or leased
             1510      primarily for switching or routing:
             1511          (i) an ancillary service;
             1512          (ii) data communications;
             1513          (iii) voice communications; or
             1514          (iv) telecommunications service.


             1515          (b) The following apply to Subsection (120)(a):
             1516          (i) a bridge;
             1517          (ii) a computer;
             1518          (iii) a cross connect;
             1519          (iv) a modem;
             1520          (v) a multiplexer;
             1521          (vi) plug in circuitry;
             1522          (vii) a router;
             1523          (viii) software;
             1524          (ix) a switch; or
             1525          (x) equipment, machinery, or software that functions similarly to an item listed in
             1526      Subsections (120)(b)(i) through (ix) as determined by the commission by rule made in
             1527      accordance with Subsection (120)(c).
             1528          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1529      commission may by rule define what constitutes equipment, machinery, or software that
             1530      functions similarly to an item listed in Subsections (120)(b)(i) through (ix).
             1531          (121) (a) "Telecommunications transmission equipment, machinery, or software"
             1532      means an item listed in Subsection (121)(b) if that item is purchased or leased primarily for
             1533      sending, receiving, or transporting:
             1534          (i) an ancillary service;
             1535          (ii) data communications;
             1536          (iii) voice communications; or
             1537          (iv) telecommunications service.
             1538          (b) The following apply to Subsection (121)(a):
             1539          (i) an amplifier;
             1540          (ii) a cable;
             1541          (iii) a closure;
             1542          (iv) a conduit;
             1543          (v) a controller;
             1544          (vi) a duplexer;
             1545          (vii) a filter;


             1546          (viii) an input device;
             1547          (ix) an input/output device;
             1548          (x) an insulator;
             1549          (xi) microwave machinery or equipment;
             1550          (xii) an oscillator;
             1551          (xiii) an output device;
             1552          (xiv) a pedestal;
             1553          (xv) a power converter;
             1554          (xvi) a power supply;
             1555          (xvii) a radio channel;
             1556          (xviii) a radio receiver;
             1557          (xix) a radio transmitter;
             1558          (xx) a repeater;
             1559          (xxi) software;
             1560          (xxii) a terminal;
             1561          (xxiii) a timing unit;
             1562          (xxiv) a transformer;
             1563          (xxv) a wire; or
             1564          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1565      Subsections (121)(b)(i) through (xxv) as determined by the commission by rule made in
             1566      accordance with Subsection (121)(c).
             1567          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1568      commission may by rule define what constitutes equipment, machinery, or software that
             1569      functions similarly to an item listed in Subsections (121)(b)(i) through (xxv).
             1570          (122) (a) "Textbook for a higher education course" means a textbook or other printed
             1571      material that is required for a course:
             1572          (i) offered by an institution of higher education; and
             1573          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             1574          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             1575          (123) "Tobacco" means:
             1576          (a) a cigarette;


             1577          (b) a cigar;
             1578          (c) chewing tobacco;
             1579          (d) pipe tobacco; or
             1580          (e) any other item that contains tobacco.
             1581          (124) "Unassisted amusement device" means an amusement device, skill device, or
             1582      ride device that is started and stopped by the purchaser or renter of the right to use or operate
             1583      the amusement device, skill device, or ride device.
             1584          (125) (a) "Use" means the exercise of any right or power over tangible personal
             1585      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             1586      incident to the ownership or the leasing of that tangible personal property, product transferred
             1587      electronically, or service.
             1588          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             1589      property, a product transferred electronically, or a service in the regular course of business and
             1590      held for resale.
             1591          (126) "Value-added nonvoice data service" means a service:
             1592          (a) that otherwise meets the definition of a telecommunications service except that a
             1593      computer processing application is used to act primarily for a purpose other than conveyance,
             1594      routing, or transmission; and
             1595          (b) with respect to which a computer processing application is used to act on data or
             1596      information:
             1597          (i) code;
             1598          (ii) content;
             1599          (iii) form; or
             1600          (iv) protocol.
             1601          (127) (a) Subject to Subsection (127)(b), "vehicle" means the following that are
             1602      required to be titled, registered, or titled and registered:
             1603          (i) an aircraft as defined in Section 72-10-102 ;
             1604          (ii) a vehicle as defined in Section 41-1a-102 ;
             1605          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             1606          (iv) a vessel as defined in Section 41-1a-102 .
             1607          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:


             1608          (i) a vehicle described in Subsection (127)(a); or
             1609          (ii) (A) a locomotive;
             1610          (B) a freight car;
             1611          (C) railroad work equipment; or
             1612          (D) other railroad rolling stock.
             1613          (128) "Vehicle dealer" means a person engaged in the business of buying, selling, or
             1614      exchanging a vehicle as defined in Subsection (127).
             1615          (129) (a) "Vertical service" means an ancillary service that:
             1616          (i) is offered in connection with one or more telecommunications services; and
             1617          (ii) offers an advanced calling feature that allows a customer to:
             1618          (A) identify a caller; and
             1619          (B) manage multiple calls and call connections.
             1620          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             1621      conference bridging service.
             1622          (130) (a) "Voice mail service" means an ancillary service that enables a customer to
             1623      receive, send, or store a recorded message.
             1624          (b) "Voice mail service" does not include a vertical service that a customer is required
             1625      to have in order to utilize a voice mail service.
             1626          (131) (a) Except as provided in Subsection (131)(b), "waste energy facility" means a
             1627      facility that generates electricity:
             1628          (i) using as the primary source of energy waste materials that would be placed in a
             1629      landfill or refuse pit if it were not used to generate electricity, including:
             1630          (A) tires;
             1631          (B) waste coal; or
             1632          (C) oil shale; and
             1633          (ii) in amounts greater than actually required for the operation of the facility.
             1634          (b) "Waste energy facility" does not include a facility that incinerates:
             1635          (i) municipal solid waste;
             1636          (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
             1637          (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             1638          (132) "Watercraft" means a vessel as defined in Section 73-18-2 .


             1639          (133) "Wind energy" means wind used as the sole source of energy to produce
             1640      electricity.
             1641          (134) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
             1642      location by the United States Postal Service.
             1643          Section 5. Section 59-12-103 is amended to read:
             1644           59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
             1645      tax revenues.
             1646          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             1647      charged for the following transactions:
             1648          (a) retail sales of tangible personal property made within the state;
             1649          (b) amounts paid for:
             1650          (i) telecommunications service, other than mobile telecommunications service, that
             1651      originates and terminates within the boundaries of this state;
             1652          (ii) mobile telecommunications service that originates and terminates within the
             1653      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             1654      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             1655          (iii) an ancillary service associated with a:
             1656          (A) telecommunications service described in Subsection (1)(b)(i); or
             1657          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             1658          (c) sales of the following for commercial use:
             1659          (i) gas;
             1660          (ii) electricity;
             1661          (iii) heat;
             1662          (iv) coal;
             1663          (v) fuel oil; or
             1664          (vi) other fuels;
             1665          (d) sales of the following for residential use:
             1666          (i) gas;
             1667          (ii) electricity;
             1668          (iii) heat;
             1669          (iv) coal;


             1670          (v) fuel oil; or
             1671          (vi) other fuels;
             1672          (e) sales of prepared food;
             1673          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             1674      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             1675      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             1676      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             1677      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             1678      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             1679      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             1680      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             1681      exhibition, cultural, or athletic activity;
             1682          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             1683      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             1684          (i) the tangible personal property; and
             1685          (ii) parts used in the repairs or renovations of the tangible personal property described
             1686      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             1687      of that tangible personal property;
             1688          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             1689      assisted cleaning or washing of tangible personal property;
             1690          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             1691      accommodations and services that are regularly rented for less than 30 consecutive days;
             1692          (j) amounts paid or charged for laundry or dry cleaning services;
             1693          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             1694      this state the tangible personal property is:
             1695          (i) stored;
             1696          (ii) used; or
             1697          (iii) otherwise consumed;
             1698          (l) amounts paid or charged for tangible personal property if within this state the
             1699      tangible personal property is:
             1700          (i) stored;


             1701          (ii) used; or
             1702          (iii) consumed; and
             1703          (m) amounts paid or charged for a sale:
             1704          (i) (A) of a product transferred electronically; or
             1705          (B) of a repair or renovation of a product transferred electronically; and
             1706          (ii) regardless of whether the sale provides:
             1707          (A) a right of permanent use of the product; or
             1708          (B) a right to use the product that is less than a permanent use, including a right:
             1709          (I) for a definite or specified length of time; and
             1710          (II) that terminates upon the occurrence of a condition.
             1711          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             1712      is imposed on a transaction described in Subsection (1) equal to the sum of:
             1713          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             1714          (A) 4.70%; and
             1715          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             1716      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             1717      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             1718      State Sales and Use Tax Act; and
             1719          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             1720      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             1721      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             1722      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             1723          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1724      transaction under this chapter other than this part.
             1725          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             1726      on a transaction described in Subsection (1)(d) equal to the sum of:
             1727          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             1728          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1729      transaction under this chapter other than this part.
             1730          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             1731      on amounts paid or charged for food and food ingredients equal to the sum of:


             1732          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             1733      a tax rate of 1.75%; and
             1734          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1735      amounts paid or charged for food and food ingredients under this chapter other than this part.
             1736          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
             1737      tangible personal property other than food and food ingredients, a state tax and a local tax is
             1738      imposed on the entire bundled transaction equal to the sum of:
             1739          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             1740          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             1741          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             1742      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             1743      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             1744      Additional State Sales and Use Tax Act; and
             1745          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             1746      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             1747      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             1748      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             1749          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             1750      described in Subsection (2)(a)(ii).
             1751          (ii) Subject to Subsection (2)(d)(iii), for a bundled transaction other than a bundled
             1752      transaction described in Subsection (2)(d)(i):
             1753          (A) if the sales price of the bundled transaction is attributable to tangible personal
             1754      property, a product, or a service that is subject to taxation under this chapter and tangible
             1755      personal property, a product, or service that is not subject to taxation under this chapter, the
             1756      entire bundled transaction is subject to taxation under this chapter unless:
             1757          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             1758      personal property, product, or service that is not subject to taxation under this chapter from the
             1759      books and records the seller keeps in the seller's regular course of business; or
             1760          (II) state or federal law provides otherwise; or
             1761          (B) if the sales price of a bundled transaction is attributable to two or more items of
             1762      tangible personal property, products, or services that are subject to taxation under this chapter


             1763      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             1764      higher tax rate unless:
             1765          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             1766      personal property, product, or service that is subject to taxation under this chapter at the lower
             1767      tax rate from the books and records the seller keeps in the seller's regular course of business; or
             1768          (II) state or federal law provides otherwise.
             1769          (iii) For purposes of Subsection (2)(d)(ii), books and records that a seller keeps in the
             1770      seller's regular course of business includes books and records the seller keeps in the regular
             1771      course of business for nontax purposes.
             1772          (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
             1773      and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
             1774      product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
             1775      of tangible personal property, other property, a product, or a service that is not subject to
             1776      taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
             1777      the seller, at the time of the transaction:
             1778          (A) separately states the portion of the transaction that is not subject to taxation under
             1779      this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
             1780          (B) is able to identify by reasonable and verifiable standards, from the books and
             1781      records the seller keeps in the seller's regular course of business, the portion of the transaction
             1782      that is not subject to taxation under this chapter.
             1783          (ii) A purchaser and a seller may correct the taxability of a transaction if:
             1784          (A) after the transaction occurs, the purchaser and the seller discover that the portion of
             1785      the transaction that is not subject to taxation under this chapter was not separately stated on an
             1786      invoice, bill of sale, or similar document provided to the purchaser because of an error or
             1787      ignorance of the law; and
             1788          (B) the seller is able to identify by reasonable and verifiable standards, from the books
             1789      and records the seller keeps in the seller's regular course of business, the portion of the
             1790      transaction that is not subject to taxation under this chapter.
             1791          (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
             1792      in the seller's regular course of business includes books and records the seller keeps in the
             1793      regular course of business for nontax purposes.


             1794          (f) (i) If the sales price of a transaction is attributable to two or more items of tangible
             1795      personal property, products, or services that are subject to taxation under this chapter at
             1796      different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
             1797      unless the seller, at the time of the transaction:
             1798          (A) separately states the items subject to taxation under this chapter at each of the
             1799      different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
             1800          (B) is able to identify by reasonable and verifiable standards the tangible personal
             1801      property, product, or service that is subject to taxation under this chapter at the lower tax rate
             1802      from the books and records the seller keeps in the seller's regular course of business.
             1803          (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
             1804      seller's regular course of business includes books and records the seller keeps in the regular
             1805      course of business for nontax purposes.
             1806          [(e)] (g) Subject to Subsections (2)[(f)](h) and [(g)](i), a tax rate repeal or tax rate
             1807      change for a tax rate imposed under the following shall take effect on the first day of a calendar
             1808      quarter:
             1809          (i) Subsection (2)(a)(i)(A);
             1810          (ii) Subsection (2)(b)(i);
             1811          (iii) Subsection (2)(c)(i); or
             1812          (iv) Subsection (2)(d)(i)(A)(I).
             1813          [(f)] (h) (i) A tax rate increase shall take effect on the first day of the first billing period
             1814      that begins after the effective date of the tax rate increase if the billing period for the
             1815      transaction begins before the effective date of a tax rate increase imposed under:
             1816          (A) Subsection (2)(a)(i)(A);
             1817          (B) Subsection (2)(b)(i);
             1818          (C) Subsection (2)(c)(i); or
             1819          (D) Subsection (2)(d)(i)(A)(I).
             1820          (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             1821      billing period that began before the effective date of the repeal of the tax or the tax rate
             1822      decrease if the billing period for the transaction begins before the effective date of the repeal of
             1823      the tax or the tax rate decrease imposed under:
             1824          (A) Subsection (2)(a)(i)(A);


             1825          (B) Subsection (2)(b)(i);
             1826          (C) Subsection (2)(c)(i); or
             1827          (D) Subsection (2)(d)(i)(A)(I).
             1828          [(g)] (i) (i) For a tax rate described in Subsection (2)[(g)](i)(ii), if a tax due on a
             1829      catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, a
             1830      tax rate repeal or change in a tax rate takes effect:
             1831          (A) on the first day of a calendar quarter; and
             1832          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             1833          (ii) Subsection (2)[(g)](i)(i) applies to the tax rates described in the following:
             1834          (A) Subsection (2)(a)(i)(A);
             1835          (B) Subsection (2)(b)(i);
             1836          (C) Subsection (2)(c)(i); or
             1837          (D) Subsection (2)(d)(i)(A)(I).
             1838          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1839      the commission may by rule define the term "catalogue sale."
             1840          (3) (a) The following state taxes shall be deposited into the General Fund:
             1841          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1842          (ii) the tax imposed by Subsection (2)(b)(i);
             1843          (iii) the tax imposed by Subsection (2)(c)(i); or
             1844          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             1845          (b) The following local taxes shall be distributed to a county, city, or town as provided
             1846      in this chapter:
             1847          (i) the tax imposed by Subsection (2)(a)(ii);
             1848          (ii) the tax imposed by Subsection (2)(b)(ii);
             1849          (iii) the tax imposed by Subsection (2)(c)(ii); and
             1850          (iv) the tax imposed by Subsection (2)(d)(i)(B).
             1851          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1852      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             1853      through (g):
             1854          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             1855          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and


             1856          (B) for the fiscal year; or
             1857          (ii) $17,500,000.
             1858          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             1859      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             1860      Department of Natural Resources to:
             1861          (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
             1862      protect sensitive plant and animal species; or
             1863          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             1864      act, to political subdivisions of the state to implement the measures described in Subsections
             1865      79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
             1866          (ii) Money transferred to the Department of Natural Resources under Subsection
             1867      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             1868      person to list or attempt to have listed a species as threatened or endangered under the
             1869      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             1870          (iii) At the end of each fiscal year:
             1871          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             1872      Conservation and Development Fund created in Section 73-10-24 ;
             1873          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             1874      Program Subaccount created in Section 73-10c-5 ; and
             1875          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             1876      Program Subaccount created in Section 73-10c-5 .
             1877          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             1878      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             1879      created in Section 4-18-6 .
             1880          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             1881      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             1882      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             1883      water rights.
             1884          (ii) At the end of each fiscal year:
             1885          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             1886      Conservation and Development Fund created in Section 73-10-24 ;


             1887          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             1888      Program Subaccount created in Section 73-10c-5 ; and
             1889          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             1890      Program Subaccount created in Section 73-10c-5 .
             1891          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             1892      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             1893      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             1894          (ii) In addition to the uses allowed of the Water Resources Conservation and
             1895      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             1896      Development Fund may also be used to:
             1897          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             1898      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             1899      quantifying surface and ground water resources and describing the hydrologic systems of an
             1900      area in sufficient detail so as to enable local and state resource managers to plan for and
             1901      accommodate growth in water use without jeopardizing the resource;
             1902          (B) fund state required dam safety improvements; and
             1903          (C) protect the state's interest in interstate water compact allocations, including the
             1904      hiring of technical and legal staff.
             1905          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             1906      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             1907      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             1908          (g) 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 Drinking Water Loan Program Subaccount
             1910      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             1911          (i) provide for the installation and repair of collection, treatment, storage, and
             1912      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             1913          (ii) develop underground sources of water, including springs and wells; and
             1914          (iii) develop surface water sources.
             1915          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1916      2006, the difference between the following amounts shall be expended as provided in this
             1917      Subsection (5), if that difference is greater than $1:


             1918          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             1919      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             1920          (ii) $17,500,000.
             1921          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             1922          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             1923      credits; and
             1924          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             1925      restoration.
             1926          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             1927      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             1928      created in Section 73-10-24 .
             1929          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             1930      remaining difference described in Subsection (5)(a) shall be:
             1931          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             1932      credits; and
             1933          (B) expended by the Division of Water Resources for cloud-seeding projects
             1934      authorized by Title 73, Chapter 15, Modification of Weather.
             1935          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             1936      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             1937      created in Section 73-10-24 .
             1938          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             1939      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             1940      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             1941      Division of Water Resources for:
             1942          (i) preconstruction costs:
             1943          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             1944      26, Bear River Development Act; and
             1945          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             1946      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             1947          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             1948      Chapter 26, Bear River Development Act;


             1949          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             1950      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             1951          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             1952      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             1953          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
             1954      Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
             1955      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             1956      incurred for employing additional technical staff for the administration of water rights.
             1957          (f) At the end of each fiscal year, any unexpended dedicated credits described in
             1958      Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
             1959      Fund created in Section 73-10-24 .
             1960          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1961      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             1962      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             1963      the Transportation Fund created by Section 72-2-102 .
             1964          (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
             1965      beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
             1966      Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
             1967      under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
             1968      transactions under Subsection (1).
             1969          (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
             1970      have been paid off and the highway projects completed that are intended to be paid from
             1971      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             1972      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
             1973      Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
             1974      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             1975      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             1976          (8) (a) Notwithstanding Subsection (3)(a) and in addition to the amount deposited in
             1977      Subsection (7)(a), for the 2010-11 fiscal year only, the Division of Finance shall deposit into
             1978      the Centennial Highway Fund Restricted Account created by Section 72-2-118 a portion of the
             1979      taxes listed under Subsection (3)(a) equal to 1.93% of the revenues collected from the


             1980      following taxes, which represents a portion of the approximately 17% of sales and use tax
             1981      revenues generated annually by the sales and use tax on vehicles and vehicle-related products:
             1982          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1983          (ii) the tax imposed by Subsection (2)(b)(i);
             1984          (iii) the tax imposed by Subsection (2)(c)(i); and
             1985          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             1986          (b) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
             1987      Subsection (7)(a), and until Subsection (8)(c) applies, for the 2011-12 fiscal year only, the
             1988      Division of Finance shall deposit into the Centennial Highway Fund Restricted Account
             1989      created by Section 72-2-118 a portion of the taxes listed under Subsection (3)(a) equal to 8.3%
             1990      of the revenues collected from the following taxes, which represents a portion of the
             1991      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             1992      on vehicles and vehicle-related products:
             1993          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1994          (ii) the tax imposed by Subsection (2)(b)(i);
             1995          (iii) the tax imposed by Subsection (2)(c)(i); and
             1996          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             1997          (c) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
             1998      Subsection (7)(b), and until Subsection (8)(d) or (e) applies, when the highway general
             1999      obligation bonds have been paid off and the highway projects completed that are intended to be
             2000      paid from revenues deposited in the Centennial Highway Fund Restricted Account as
             2001      determined by the Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the
             2002      Division of Finance shall deposit into the Transportation Investment Fund of 2005 created by
             2003      Section 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to 8.3% of the
             2004      revenues collected from the following taxes, which represents a portion of the approximately
             2005      17% of sales and use tax revenues generated annually by the sales and use tax on vehicles and
             2006      vehicle-related products:
             2007          (i) the tax imposed by Subsection (2)(a)(i)(A);
             2008          (ii) the tax imposed by Subsection (2)(b)(i);
             2009          (iii) the tax imposed by Subsection (2)(c)(i); and
             2010          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).


             2011          (d) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
             2012      Subsection (7)(a), until Subsection (8)(e) applies, and subject to Subsection (8)(f), for a fiscal
             2013      year beginning on or after July 1, 2012, the Division of Finance shall deposit into the
             2014      Centennial Highway Fund Restricted Account created by Section 72-2-118 :
             2015          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
             2016      the revenues collected from the following taxes, which represents a portion of the
             2017      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             2018      on vehicles and vehicle-related products:
             2019          (A) the tax imposed by Subsection (2)(a)(i)(A);
             2020          (B) the tax imposed by Subsection (2)(b)(i);
             2021          (C) the tax imposed by Subsection (2)(c)(i); and
             2022          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
             2023          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             2024      current fiscal year from the sales and use taxes described in Subsections (8)(d)(i)(A) through
             2025      (D) that exceeds the amount collected from the sales and use taxes described in Subsections
             2026      (8)(d)(i)(A) through (D) in the 2010-11 fiscal year.
             2027          (e) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
             2028      Subsection (7)(b), and subject to Subsection (8)(f), when the highway general obligation bonds
             2029      have been paid off and the highway projects completed that are intended to be paid from
             2030      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             2031      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), for a fiscal year
             2032      beginning on or after July 1, 2012, the Division of Finance shall deposit into the Transportation
             2033      Investment Fund of 2005 created by Section 72-2-124 :
             2034          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
             2035      the revenues collected from the following taxes, which represents a portion of the
             2036      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             2037      on vehicles and vehicle-related products:
             2038          (A) the tax imposed by Subsection (2)(a)(i)(A);
             2039          (B) the tax imposed by Subsection (2)(b)(i);
             2040          (C) the tax imposed by Subsection (2)(c)(i); and
             2041          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus


             2042          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             2043      current fiscal year from the sales and use taxes described in Subsections (8)(e)(i)(A) through
             2044      (D) that exceeds the amount collected from the sales and use taxes described in Subsections
             2045      (8)(e)(i)(A) through (D) in the 2010-11 fiscal year.
             2046          (f) (i) Subject to Subsections (8)(f)(ii) and (iii), in any fiscal year that the portion of the
             2047      sales and use taxes deposited under Subsection (8)(d) or (e) represents an amount that is a total
             2048      lower percentage of the sales and use taxes described in Subsections (8)(e)(i)(A) through (D)
             2049      generated in the current fiscal year than the total percentage of sales and use taxes deposited in
             2050      the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
             2051      (8)(d) or (e) equal to the product of:
             2052          (A) the total percentage of sales and use taxes deposited under Subsection (8)(d) or (e)
             2053      in the previous fiscal year; and
             2054          (B) the total sales and use tax revenue generated by the taxes described in Subsections
             2055      (8)(e)(i)(A) through (D) in the current fiscal year.
             2056          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
             2057      Subsection (8)(d) or (e) would exceed 17% of the revenues collected from the sales and use
             2058      taxes described in Subsections (8)(e)(i)(A) through (D) in the current fiscal year, the Division
             2059      of Finance shall deposit 17% of the revenues collected from the sales and use taxes described
             2060      in Subsections (8)(e)(i)(A) through (D) for the current fiscal year under Subsection (8)(d) or
             2061      (e).
             2062          (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
             2063      from the sales and use taxes described in Subsections (8)(e)(i)(A) through (D) was deposited
             2064      under Subsection (8)(d) or (e), the Division of Finance shall annually deposit 17% of the
             2065      revenues collected from the sales and use taxes described in Subsections (8)(e)(i)(A) through
             2066      (D) in the current fiscal year under Subsection (8)(d) or (e).
             2067          (9) (a) Notwithstanding Subsection (3)(a) and for the fiscal year 2008-09 only, the
             2068      Division of Finance shall deposit $55,000,000 of the revenues generated by the taxes listed
             2069      under Subsection (3)(a) into the Critical Highway Needs Fund created by Section 72-2-125 .
             2070          (b) Notwithstanding Subsection (3)(a) and until Subsection (9)(c) applies, for a fiscal
             2071      year beginning on or after July 1, 2009, the Division of Finance shall annually deposit
             2072      $90,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the


             2073      Critical Highway Needs Fund created by Section 72-2-125 .
             2074          (c) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
             2075      Subsections (7) and (8), when the general obligation bonds authorized by Section 63B-16-101
             2076      have been paid off and the highway projects completed that are included in the prioritized
             2077      project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
             2078      72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues
             2079      generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
             2080      of 2005 created by Section 72-2-124 .
             2081          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
             2082      2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
             2083      created by Section 9-4-1409 and expended as provided in Section 9-4-1409 .
             2084          (11) (a) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection
             2085      (11)(a)(ii), and until Subsection (11)(b) applies, beginning on January 1, 2009, the Division of
             2086      Finance shall deposit into the Critical Highway Needs Fund created by Section 72-2-125 the
             2087      amount of tax revenue generated by a .025% tax rate on the transactions described in
             2088      Subsection (1).
             2089          (ii) For purposes of Subsection (11)(a)(i), the Division of Finance may not deposit into
             2090      the Critical Highway Needs Fund any tax revenue generated by amounts paid or charged for
             2091      food and food ingredients, except for tax revenue generated by a bundled transaction
             2092      attributable to food and food ingredients and tangible personal property other than food and
             2093      food ingredients described in Subsection (2)(e).
             2094          (b) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b)(ii),
             2095      and in addition to any amounts deposited under Subsections (7), (9), and (10), when the general
             2096      obligation bonds authorized by Section 63B-16-101 have been paid off and the highway
             2097      projects completed that are included in the prioritized project list under Subsection 72-2-125 (4)
             2098      as determined in accordance with Subsection 72-2-125 (6), the Division of Finance shall
             2099      deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
             2100      amount of tax revenue generated by a .025% tax rate on the transactions described in
             2101      Subsection (1).
             2102          (ii) For purposes of Subsection (11)(b)(i), the Division of Finance may not deposit into
             2103      the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or


             2104      charged for food and food ingredients, except for tax revenue generated by a bundled
             2105      transaction attributable to food and food ingredients and tangible personal property other than
             2106      food and food ingredients described in Subsection (2)(e).
             2107          (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
             2108      (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
             2109      Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
             2110      .025% tax rate on the transactions described in Subsection (1) to be expended to address
             2111      chokepoints in construction management.
             2112          (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
             2113      the Transportation Fund any tax revenue generated by amounts paid or charged for food and
             2114      food ingredients, except for tax revenue generated by a bundled transaction attributable to food
             2115      and food ingredients and tangible personal property other than food and food ingredients
             2116      described in Subsection (2)(e).
             2117          Section 6. Section 59-12-110 is amended to read:
             2118           59-12-110. Refunds procedures.
             2119          (1) A seller that files a claim for a refund under Section 59-12-107 for bad debt shall
             2120      file the claim with the commission within three years from the date on which the seller could
             2121      first claim the refund for the bad debt.
             2122          (2) A seller that files a claim for a refund for a repossessed item shall file the claim
             2123      with the commission within three years from the date the item is repossessed.
             2124          [(3) A taxpayer may obtain a refund under Section 59-1-1410 of a tax paid under this
             2125      chapter on a transaction that is taxable under Subsection 59-12-103 (1) if:]
             2126          [(a) the sale or use is exempt from sales and use taxes under Section 59-12-104 on the
             2127      date of purchase; and]
             2128          [(b) the taxpayer files a claim for a refund with the commission as provided in Section
             2129      59-1-1410 .]
             2130          (3) Except as provided in Subsection (1) or (2), procedures and requirements for a
             2131      taxpayer to obtain a refund from the commission are as provided in Section 59-1-1410 .
             2132          Section 7. Effective date -- Retrospective operation.
             2133          (1) Subject to Subsection (2), this bill takes effect on May 8, 2012.
             2134          (2) This bill applies retrospectively to a refund request that is pending on, or filed on or


             2135      after, September 27, 2011.





Legislative Review Note
    as of 11-17-11 1:52 PM


Office of Legislative Research and General Counsel


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