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Second Substitute S.B. 65

Senator J. Stuart Adams proposes the following substitute bill:


             1     
ALTERNATIVE ENERGY DEVELOPMENT TAX INCENTIVES

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: J. Stuart Adams

             5     
House Sponsor: Michael E. Noel

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill addresses provisions related to alternative energy development tax incentives.
             10      Highlighted Provisions:
             11          This bill:
             12          .    repeals the Alternative Energy Development Act and enacts the Alternative Energy
             13      Development Tax Credit Act related to alternative energy development tax credits;
             14          .    repeals provisions related to alternative energy development tax credits in economic
             15      development tax credit provisions;
             16          .    defines terms;
             17          .    enacts alternative energy development tax credits;
             18          .    modifies and expands alternative energy sales and use tax exemptions;
             19          .    extends the time period for claiming certain sales and use tax exemptions related to
             20      alternative energy;    
             21          .    requires the Office of Energy Development to administer the alternative energy
             22      development tax credits; and
             23          .    makes technical and conforming changes.
             24      Money Appropriated in this Bill:
             25          None


             26      Other Special Clauses:
             27          This bill provides effective dates.
             28          This bill provides for retrospective operation.
             29      Utah Code Sections Affected:
             30      AMENDS:
             31          10-1-304, as last amended by Laws of Utah 2009, Chapter 92
             32          59-7-614.2, as last amended by Laws of Utah 2011, Chapter 384
             33          59-10-1107, as last amended by Laws of Utah 2011, Chapter 384
             34          59-12-102, as last amended by Laws of Utah 2011, Chapters 14, 285, and 314
             35          59-12-104, as last amended by Laws of Utah 2011, Chapters 288, 314, 370, and 391
             36          63M-4-401, as enacted by Laws of Utah 2011, Chapter 375
             37      ENACTS:
             38          59-7-614.7, Utah Code Annotated 1953
             39          59-10-1029, Utah Code Annotated 1953
             40          63M-4-501, Utah Code Annotated 1953
             41          63M-4-502, Utah Code Annotated 1953
             42          63M-4-503, Utah Code Annotated 1953
             43          63M-4-504, Utah Code Annotated 1953
             44          63M-4-505, Utah Code Annotated 1953
             45      REPEALS:
             46          63M-1-2801, as last amended by Laws of Utah 2010, Chapter 45
             47          63M-1-2802, as last amended by Laws of Utah 2010, Chapter 45
             48          63M-1-2803, as last amended by Laws of Utah 2010, Chapter 45
             49          63M-1-2804, as last amended by Laws of Utah 2010, Chapter 45
             50          63M-1-2805, as last amended by Laws of Utah 2010, Chapter 45
             51          63M-1-2806, as last amended by Laws of Utah 2011, Chapter 384
             52     
             53      Be it enacted by the Legislature of the state of Utah:
             54          Section 1. Section 10-1-304 is amended to read:
             55           10-1-304. Municipality and military installation development authority may levy
             56      tax -- Rate -- Imposition or repeal of tax -- Tax rate change -- Effective date -- Notice


             57      requirements -- Exemptions.
             58          (1) (a) Except as provided in Subsections (4) and (5), a municipality may levy a
             59      municipal energy sales and use tax on the sale or use of taxable energy within the municipality:
             60          (i) by ordinance as provided in Section 10-1-305 ; and
             61          (ii) of up to 6% of the delivered value of the taxable energy.
             62          (b) Subject to Section 63H-1-203 , the military installation development authority
             63      created in Section 63H-1-201 may levy a municipal energy sales and use tax under this part
             64      within a project area described in a project area plan adopted by the authority under Title 63H,
             65      Chapter 1, Military Installation Development Authority Act, as though the authority were a
             66      municipality.
             67          (2) A municipal energy sales and use tax imposed under this part may be in addition to
             68      any sales and use tax imposed by the municipality under Title 59, Chapter 12, Sales and Use
             69      Tax Act.
             70          (3) (a) For purposes of this Subsection (3):
             71          (i) "Annexation" means an annexation to a municipality under [Title 10,] Chapter 2,
             72      Part 4, Annexation.
             73          (ii) "Annexing area" means an area that is annexed into a municipality.
             74          (b) (i) If, on or after May 1, 2000, a city or town enacts or repeals a tax or changes the
             75      rate of a tax under this part, the enactment, repeal, or change shall take effect:
             76          (A) on the first day of a calendar quarter; and
             77          (B) after a 90-day period beginning on the date the commission receives notice meeting
             78      the requirements of Subsection (3)(b)(ii) from the municipality.
             79          (ii) The notice described in Subsection (3)(b)(i)(B) shall state:
             80          (A) that the city or town will enact or repeal a tax or change the rate of a tax under this
             81      part;
             82          (B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
             83          (C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
             84          (D) if the city or town enacts the tax or changes the rate of the tax described in
             85      Subsection (3)(b)(ii)(A), the new rate of the tax.
             86          (c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will
             87      result in a change in the rate of a tax under this part for an annexing area, the change shall take


             88      effect:
             89          (A) on the first day of a calendar quarter; and
             90          (B) after a 90-day period beginning on the date the commission receives notice meeting
             91      the requirements of Subsection (3)(c)(ii) from the municipality that annexes the annexing area.
             92          (ii) The notice described in Subsection (3)(c)(i)(B) shall state:
             93          (A) that the annexation described in Subsection (3)(c)(i) will result in a change in the
             94      rate of a tax under this part for the annexing area;
             95          (B) the statutory authority for the tax described in Subsection (3)(c)(ii)(A);
             96          (C) the effective date of the tax described in Subsection (3)(c)(ii)(A); and
             97          (D) the new rate of the tax described in Subsection (3)(c)(ii)(A).
             98          (4) (a) [A] Subject to Subsection (4)(b), a sale or use of electricity within a
             99      municipality is exempt from the tax authorized by this section if the sale or use is[: (a)] made
             100      under a tariff adopted by the Public Service Commission of Utah only for purchase of
             101      electricity produced from a new [wind, geothermal, biomass, or solar power energy] source of
             102      alternative energy, as defined in Section 59-12-102 , as designated in the tariff by the Public
             103      Service Commission of Utah[; and].
             104          [(b) for an amount of electricity that is:]
             105          [(i) unrelated to the amount of electricity used by the person purchasing the electricity
             106      under the tariff described in Subsection (4)(a); and]
             107          [(ii) equivalent to the number of kilowatthours specified in the tariff described in
             108      Subsection (4)(a) that may be purchased under the tariff described in Subsection (4)(a).]
             109          (b) The exemption under Subsection (4)(a) applies to the portion of the tariff rate a
             110      customer pays under the tariff described in Subsection (4)(a) that exceeds the tariff rate under
             111      the tariff described in Subsection (4)(a) that the customer would have paid absent the tariff.
             112          (5) (a) A municipality may not levy a municipal energy sales and use tax within any
             113      portion of the municipality that is within a project area described in a project area plan adopted
             114      by the military installation development authority under Title 63H, Chapter 1, Military
             115      Installation Development Authority Act.
             116          (b) Subsection (5)(a) does not apply to the military installation development authority's
             117      levy of a municipal energy sales and use tax.
             118          Section 2. Section 59-7-614.2 is amended to read:


             119           59-7-614.2. Refundable economic development tax credit.
             120          (1) As used in this section:
             121          (a) "Business entity" means a taxpayer that meets the definition of "business entity" as
             122      defined in Section 63M-1-2403 [or 63M-1-2803 ].
             123          (b) "Community development and renewal agency" is as defined in Section 17C-1-102 .
             124          (c) "Local government entity" is as defined in Section 63M-1-2403 .
             125          (d) "Office" means the Governor's Office of Economic Development.
             126          (2) Subject to the other provisions of this section, a business entity, local government
             127      entity, or community development and renewal agency may claim a refundable tax credit for
             128      economic development.
             129          (3) The tax credit under this section is the amount listed as the tax credit amount on the
             130      tax credit certificate that the office issues to the business entity, local government entity, or
             131      community development and renewal agency for the taxable year.
             132          (4) A community development and renewal agency may claim a tax credit under this
             133      section only if a local government entity assigns the tax credit to the community development
             134      and renewal agency in accordance with Section 63M-1-2404 .
             135          (5) (a) In accordance with any rules prescribed by the commission under Subsection
             136      (5)(b), the commission shall make a refund to the following that claim a tax credit under this
             137      section:
             138          (i) a local government entity;
             139          (ii) a community development and renewal agency; or
             140          (iii) a business entity if the amount of the tax credit exceeds the business entity's tax
             141      liability for a taxable year.
             142          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             143      commission may make rules providing procedures for making a refund to a business entity,
             144      local government entity, or community development and renewal agency as required by
             145      Subsection (5)(a).
             146          (6) (a) On or before October 1, 2013, and every five years after October 1, 2013, the
             147      Revenue and Taxation Interim Committee shall study the tax credit allowed by this section and
             148      make recommendations to the Legislative Management Committee and the Workforce Services
             149      and Community and Economic Development Interim Committee concerning whether the tax


             150      credit should be continued, modified, or repealed.
             151          (b) For purposes of the study required by this Subsection (6), the office shall provide
             152      the following information to the Revenue and Taxation Interim Committee:
             153          (i) the amount of tax credit that the office grants to each business entity, local
             154      government entity, or community development and renewal agency for each calendar year;
             155          (ii) the criteria that the office uses in granting a tax credit;
             156          (iii) (A) for a business entity, the new state revenues generated by the business entity
             157      for the calendar year; or
             158          (B) for a local government entity, regardless of whether the local government entity
             159      assigns the tax credit in accordance with Section 63M-1-2404 , the new state revenues
             160      generated as a result of a new commercial project within the local government entity for each
             161      calendar year;
             162          (iv) the information contained in the office's latest report to the Legislature under
             163      Section 63M-1-2406 [or 63M-1-2806 ]; and
             164          (v) any other information that the Revenue and Taxation Interim Committee requests.
             165          (c) The Revenue and Taxation Interim Committee shall ensure that its
             166      recommendations under Subsection (6)(a) include an evaluation of:
             167          (i) the cost of the tax credit to the state;
             168          (ii) the purpose and effectiveness of the tax credit; and
             169          (iii) the extent to which the state benefits from the tax credit.
             170          Section 3. Section 59-7-614.7 is enacted to read:
             171          59-7-614.7. Nonrefundable alternative energy development tax credit.
             172          (1) As used in this section:
             173          (a) "Alternative energy entity" is as defined in Section 63M-4-502 .
             174          (b) "Alternative energy project" is as defined in Section 63M-4-502 .
             175          (c) "Office" is as defined in Section 63M-4-401 .
             176          (2) Subject to the other provisions of this section, an alternative energy entity may
             177      claim a nonrefundable tax credit for alternative energy development as provided in this section.
             178          (3) The tax credit under this section is the amount listed as the tax credit amount on a
             179      tax credit certificate that the office issues under Title 63M, Chapter 4, Part 5, Alternative
             180      Energy Development Tax Credit Act, to the alternative energy entity for the taxable year.


             181          (4) An alternative energy entity may carry forward a tax credit under this section for a
             182      period that does not exceed the next seven taxable years if:
             183          (a) the alternative energy entity is allowed to claim a tax credit under this section for a
             184      taxable year; and
             185          (b) the amount of the tax credit exceeds the alternative energy entity's tax liability
             186      under this chapter for that taxable year.
             187          (5) (a) On or before October 1, 2017, and every five years after October 1, 2017, the
             188      Revenue and Taxation Interim Committee shall study the tax credit allowed by this section and
             189      make recommendations to the Legislative Management Committee concerning whether the tax
             190      credit should be continued, modified, or repealed.
             191          (b) For purposes of the study required by this Subsection (5), the office shall provide
             192      the following information to the Revenue and Taxation Interim Committee:
             193          (i) the amount of tax credit that the office grants to each alternative energy entity for
             194      each taxable year;
             195          (ii) the new state revenues generated by each alternative energy project;
             196          (iii) the information contained in the office's latest report to the Legislature under
             197      Section 63M-4-505 ; and
             198          (iv) any other information that the Revenue and Taxation Interim Committee requests.
             199          (c) The Revenue and Taxation Interim Committee shall ensure that its
             200      recommendations under Subsection (5)(a) include an evaluation of:
             201          (i) the cost of the tax credit to the state;
             202          (ii) the purpose and effectiveness of the tax credit; and
             203          (iii) the extent to which the state benefits from the tax credit.
             204          Section 4. Section 59-10-1029 is enacted to read:
             205          59-10-1029. Nonrefundable alternative energy development tax credit.
             206          (1) As used in this section:
             207          (a) "Alternative energy entity" is as defined in Section 63M-4-502 .
             208          (b) "Alternative energy project" is as defined in Section 63M-4-502 .
             209          (c) "Office" is as defined in Section 63M-4-401 .
             210          (2) Subject to the other provisions of this section, an alternative energy entity may
             211      claim a nonrefundable tax credit for alternative energy development as provided in this section.


             212          (3) The tax credit under this section is the amount listed as the tax credit amount on a
             213      tax credit certificate that the office issues under Title 63M, Chapter 4, Part 5, Alternative
             214      Energy Development Tax Credit Act, to the alternative energy entity for the taxable year.
             215          (4) An alternative energy entity may carry forward a tax credit under this section for a
             216      period that does not exceed the next seven taxable years if:
             217          (a) the alternative energy entity is allowed to claim a tax credit under this section for a
             218      taxable year; and
             219          (b) the amount of the tax credit exceeds the alternative energy entity's tax liability
             220      under this chapter for that taxable year.
             221          (5) (a) On or before October 1, 2017, and every five years after October 1, 2017, the
             222      Revenue and Taxation Interim Committee shall study the tax credit allowed by this section and
             223      make recommendations to the Legislative Management Committee concerning whether the tax
             224      credit should be continued, modified, or repealed.
             225          (b) For purposes of the study required by this Subsection (5), the office shall provide
             226      the following information to the Revenue and Taxation Interim Committee:
             227          (i) the amount of tax credit that the office grants to each alternative energy entity for
             228      each taxable year;
             229          (ii) the new state revenues generated by each alternative energy project;
             230          (iii) the information contained in the office's latest report to the Legislature under
             231      Section 63M-4-505 ; and
             232          (iv) any other information that the Revenue and Taxation Interim Committee requests.
             233          (c) The Revenue and Taxation Interim Committee shall ensure that its
             234      recommendations under Subsection (5)(a) include an evaluation of:
             235          (i) the cost of the tax credit to the state;
             236          (ii) the purpose and effectiveness of the tax credit; and
             237          (iii) the extent to which the state benefits from the tax credit.
             238          Section 5. Section 59-10-1107 is amended to read:
             239           59-10-1107. Refundable economic development tax credit.
             240          (1) As used in this section:
             241          (a) "Business entity" means a claimant, estate, or trust that meets the definition of
             242      "business entity" as defined in Section 63M-1-2403 [or 63M-1-2803 ].


             243          (b) "Office" means the Governor's Office of Economic Development.
             244          (2) Subject to the other provisions of this section, a business entity may claim a
             245      refundable tax credit for economic development.
             246          (3) The tax credit under this section is the amount listed as the tax credit amount on the
             247      tax credit certificate that the office issues to the business entity for the taxable year.
             248          (4) (a) In accordance with any rules prescribed by the commission under Subsection
             249      (4)(b), the commission shall make a refund to a business entity that claims a tax credit under
             250      this section if the amount of the tax credit exceeds the business entity's tax liability for a
             251      taxable year.
             252          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             253      commission may make rules providing procedures for making a refund to a business entity as
             254      required by Subsection (4)(a).
             255          (5) (a) On or before October 1, 2013, and every five years after October 1, 2013, the
             256      Revenue and Taxation Interim Committee shall study the tax credit allowed by this section and
             257      make recommendations to the Legislative Management Committee and the Workforce Services
             258      and Community and Economic Development Interim Committee concerning whether the tax
             259      credit should be continued, modified, or repealed.
             260          (b) For purposes of the study required by this Subsection (5), the office shall provide
             261      the following information to the Revenue and Taxation Interim Committee:
             262          (i) the amount of tax credit the office grants to each taxpayer for each calendar year;
             263          (ii) the criteria the office uses in granting a tax credit;
             264          (iii) the new state revenues generated by each taxpayer for each calendar year;
             265          (iv) the information contained in the office's latest report to the Legislature under
             266      Section 63M-1-2406 [or 63M-1-2806 ]; and
             267          (v) any other information that the Revenue and Taxation Interim Committee requests.
             268          (c) The Revenue and Taxation Interim Committee shall ensure that its
             269      recommendations under Subsection (5)(a) include an evaluation of:
             270          (i) the cost of the tax credit to the state;
             271          (ii) the purpose and effectiveness of the tax credit; and
             272          (iii) the extent to which the state benefits from the tax credit.
             273          Section 6. Section 59-12-102 is amended to read:


             274           59-12-102. Definitions.
             275          As used in this chapter:
             276          (1) "800 service" means a telecommunications service that:
             277          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             278          (b) is typically marketed:
             279          (i) under the name 800 toll-free calling;
             280          (ii) under the name 855 toll-free calling;
             281          (iii) under the name 866 toll-free calling;
             282          (iv) under the name 877 toll-free calling;
             283          (v) under the name 888 toll-free calling; or
             284          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             285      Federal Communications Commission.
             286          (2) (a) "900 service" means an inbound toll telecommunications service that:
             287          (i) a subscriber purchases;
             288          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             289      the subscriber's:
             290          (A) prerecorded announcement; or
             291          (B) live service; and
             292          (iii) is typically marketed:
             293          (A) under the name 900 service; or
             294          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             295      Communications Commission.
             296          (b) "900 service" does not include a charge for:
             297          (i) a collection service a seller of a telecommunications service provides to a
             298      subscriber; or
             299          (ii) the following a subscriber sells to the subscriber's customer:
             300          (A) a product; or
             301          (B) a service.
             302          (3) (a) "Admission or user fees" includes season passes.
             303          (b) "Admission or user fees" does not include annual membership dues to private
             304      organizations.


             305          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             306      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             307      Agreement after November 12, 2002.
             308          (5) "Agreement combined tax rate" means the sum of the tax rates:
             309          (a) listed under Subsection (6); and
             310          (b) that are imposed within a local taxing jurisdiction.
             311          (6) "Agreement sales and use tax" means a tax imposed under:
             312          (a) Subsection 59-12-103 (2)(a)(i)(A);
             313          (b) Subsection 59-12-103 (2)(b)(i);
             314          (c) Subsection 59-12-103 (2)(c)(i);
             315          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             316          (e) Section 59-12-204 ;
             317          (f) Section 59-12-401 ;
             318          (g) Section 59-12-402 ;
             319          (h) Section 59-12-703 ;
             320          (i) Section 59-12-802 ;
             321          (j) Section 59-12-804 ;
             322          (k) Section 59-12-1102 ;
             323          (l) Section 59-12-1302 ;
             324          (m) Section 59-12-1402 ;
             325          (n) Section 59-12-1802 ;
             326          (o) Section 59-12-2003 ;
             327          (p) Section 59-12-2103 ;
             328          (q) Section 59-12-2213 ;
             329          (r) Section 59-12-2214 ;
             330          (s) Section 59-12-2215 ;
             331          (t) Section 59-12-2216 ;
             332          (u) Section 59-12-2217 ; or
             333          (v) Section 59-12-2218 .
             334          (7) "Aircraft" is as defined in Section 72-10-102 .
             335          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:


             336          (a) except for an airline as defined in Section 59-2-102 or an affiliated group as defined
             337      in Subsection 59-12-107 (1)(f) of an airline; and
             338          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             339      whether the business entity performs the following in this state:
             340          (i) check, diagnose, overhaul, and repair:
             341          (A) an onboard system of a fixed wing turbine powered aircraft; and
             342          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             343          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             344      engine;
             345          (iii) perform at least the following maintenance on a fixed wing turbine powered
             346      aircraft:
             347          (A) an inspection;
             348          (B) a repair, including a structural repair or modification;
             349          (C) changing landing gear; and
             350          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             351          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             352      completely apply new paint to the fixed wing turbine powered aircraft; and
             353          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             354      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             355      authority that certifies the fixed wing turbine powered aircraft.
             356          (9) "Alcoholic beverage" means a beverage that:
             357          (a) is suitable for human consumption; and
             358          (b) contains .5% or more alcohol by volume.
             359          (10) "Alternative energy" means:
             360          (a) biomass energy;
             361          (b) geothermal energy;
             362          (c) hydroelectric energy;
             363          (d) solar energy;
             364          (e) wind energy; or
             365          (f) energy that is derived from:
             366          (i) coal-to-liquids;


             367          (ii) nuclear fuel;
             368          (iii) oil-impregnated diatomaceous earth;
             369          (iv) oil sands;
             370          (v) oil shale; or
             371          (vi) petroleum coke.
             372          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
             373      facility" means a facility that:
             374          (i) uses alternative energy to produce electricity; and
             375          (ii) has a production capacity of 2 megawatts or greater.
             376          (b) A facility is an alternative energy electricity production facility regardless of
             377      whether the facility is:
             378          (i) connected to an electric grid; or
             379          (ii) located on the premises of an electricity consumer.
             380          [(10)] (12) (a) "Ancillary service" means a service associated with, or incidental to, the
             381      provision of telecommunications service.
             382          (b) "Ancillary service" includes:
             383          (i) a conference bridging service;
             384          (ii) a detailed communications billing service;
             385          (iii) directory assistance;
             386          (iv) a vertical service; or
             387          (v) a voice mail service.
             388          [(11)] (13) "Area agency on aging" is as defined in Section 62A-3-101 .
             389          [(12)] (14) "Assisted amusement device" means an amusement device, skill device, or
             390      ride device that is started and stopped by an individual:
             391          (a) who is not the purchaser or renter of the right to use or operate the amusement
             392      device, skill device, or ride device; and
             393          (b) at the direction of the seller of the right to use the amusement device, skill device,
             394      or ride device.
             395          [(13)] (15) "Assisted cleaning or washing of tangible personal property" means
             396      cleaning or washing of tangible personal property if the cleaning or washing labor is primarily
             397      performed by an individual:


             398          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             399      property; and
             400          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             401      property.
             402          [(14)] (16) "Authorized carrier" means:
             403          (a) in the case of vehicles operated over public highways, the holder of credentials
             404      indicating that the vehicle is or will be operated pursuant to both the International Registration
             405      Plan and the International Fuel Tax Agreement;
             406          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             407      certificate or air carrier's operating certificate; or
             408          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             409      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             410          [(15)] (17) (a) Except as provided in Subsection [(15)] (17)(b), "biomass energy"
             411      means any of the following that is used as the primary source of energy to produce fuel or
             412      electricity:
             413          (i) material from a plant or tree; or
             414          (ii) other organic matter that is available on a renewable basis, including:
             415          (A) slash and brush from forests and woodlands;
             416          (B) animal waste;
             417          (C) methane produced:
             418          (I) at landfills; or
             419          (II) as a byproduct of the treatment of wastewater residuals;
             420          (D) aquatic plants; and
             421          (E) agricultural products.
             422          (b) "Biomass energy" does not include:
             423          (i) black liquor;
             424          (ii) treated woods; or
             425          (iii) biomass from municipal solid waste other than methane produced:
             426          (A) at landfills; or
             427          (B) as a byproduct of the treatment of wastewater residuals.
             428          [(16)] (18) (a) "Bundled transaction" means the sale of two or more items of tangible


             429      personal property, products, or services if the tangible personal property, products, or services
             430      are:
             431          (i) distinct and identifiable; and
             432          (ii) sold for one nonitemized price.
             433          (b) "Bundled transaction" does not include:
             434          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             435      the basis of the selection by the purchaser of the items of tangible personal property included in
             436      the transaction;
             437          (ii) the sale of real property;
             438          (iii) the sale of services to real property;
             439          (iv) the retail sale of tangible personal property and a service if:
             440          (A) the tangible personal property:
             441          (I) is essential to the use of the service; and
             442          (II) is provided exclusively in connection with the service; and
             443          (B) the service is the true object of the transaction;
             444          (v) the retail sale of two services if:
             445          (A) one service is provided that is essential to the use or receipt of a second service;
             446          (B) the first service is provided exclusively in connection with the second service; and
             447          (C) the second service is the true object of the transaction;
             448          (vi) a transaction that includes tangible personal property or a product subject to
             449      taxation under this chapter and tangible personal property or a product that is not subject to
             450      taxation under this chapter if the:
             451          (A) seller's purchase price of the tangible personal property or product subject to
             452      taxation under this chapter is de minimis; or
             453          (B) seller's sales price of the tangible personal property or product subject to taxation
             454      under this chapter is de minimis; and
             455          (vii) the retail sale of tangible personal property that is not subject to taxation under
             456      this chapter and tangible personal property that is subject to taxation under this chapter if:
             457          (A) that retail sale includes:
             458          (I) food and food ingredients;
             459          (II) a drug;


             460          (III) durable medical equipment;
             461          (IV) mobility enhancing equipment;
             462          (V) an over-the-counter drug;
             463          (VI) a prosthetic device; or
             464          (VII) a medical supply; and
             465          (B) subject to Subsection [(16)] (18)(f):
             466          (I) the seller's purchase price of the tangible personal property subject to taxation under
             467      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             468          (II) the seller's sales price of the tangible personal property subject to taxation under
             469      this chapter is 50% or less of the seller's total sales price of that retail sale.
             470          (c) (i) For purposes of Subsection [(16)] (18)(a)(i), tangible personal property, a
             471      product, or a service that is distinct and identifiable does not include:
             472          (A) packaging that:
             473          (I) accompanies the sale of the tangible personal property, product, or service; and
             474          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             475      service;
             476          (B) tangible personal property, a product, or a service provided free of charge with the
             477      purchase of another item of tangible personal property, a product, or a service; or
             478          (C) an item of tangible personal property, a product, or a service included in the
             479      definition of "purchase price."
             480          (ii) For purposes of Subsection [(16)] (18)(c)(i)(B), an item of tangible personal
             481      property, a product, or a service is provided free of charge with the purchase of another item of
             482      tangible personal property, a product, or a service if the sales price of the purchased item of
             483      tangible personal property, product, or service does not vary depending on the inclusion of the
             484      tangible personal property, product, or service provided free of charge.
             485          (d) (i) For purposes of Subsection [(16)] (18)(a)(ii), property sold for one nonitemized
             486      price does not include a price that is separately identified by tangible personal property,
             487      product, or service on the following, regardless of whether the following is in paper format or
             488      electronic format:
             489          (A) a binding sales document; or
             490          (B) another supporting sales-related document that is available to a purchaser.


             491          (ii) For purposes of Subsection [(16)] (18)(d)(i), a binding sales document or another
             492      supporting sales-related document that is available to a purchaser includes:
             493          (A) a bill of sale;
             494          (B) a contract;
             495          (C) an invoice;
             496          (D) a lease agreement;
             497          (E) a periodic notice of rates and services;
             498          (F) a price list;
             499          (G) a rate card;
             500          (H) a receipt; or
             501          (I) a service agreement.
             502          (e) (i) For purposes of Subsection [(16)] (18)(b)(vi), the sales price of tangible personal
             503      property or a product subject to taxation under this chapter is de minimis if:
             504          (A) the seller's purchase price of the tangible personal property or product is 10% or
             505      less of the seller's total purchase price of the bundled transaction; or
             506          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             507      the seller's total sales price of the bundled transaction.
             508          (ii) For purposes of Subsection [(16)] (18)(b)(vi), a seller:
             509          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             510      purchase price or sales price of the tangible personal property or product subject to taxation
             511      under this chapter is de minimis; and
             512          (B) may not use a combination of the seller's purchase price and the seller's sales price
             513      to determine if the purchase price or sales price of the tangible personal property or product
             514      subject to taxation under this chapter is de minimis.
             515          (iii) For purposes of Subsection [(16)] (18)(b)(vi), a seller shall use the full term of a
             516      service contract to determine if the sales price of tangible personal property or a product is de
             517      minimis.
             518          (f) For purposes of Subsection [(16)] (18)(b)(vii)(B), a seller may not use a
             519      combination of the seller's purchase price and the seller's sales price to determine if tangible
             520      personal property subject to taxation under this chapter is 50% or less of the seller's total
             521      purchase price or sales price of that retail sale.


             522          [(17)] (19) "Certified automated system" means software certified by the governing
             523      board of the agreement that:
             524          (a) calculates the agreement sales and use tax imposed within a local taxing
             525      jurisdiction:
             526          (i) on a transaction; and
             527          (ii) in the states that are members of the agreement;
             528          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             529      member of the agreement; and
             530          (c) maintains a record of the transaction described in Subsection [(17)] (19)(a)(i).
             531          [(18)] (20) "Certified service provider" means an agent certified:
             532          (a) by the governing board of the agreement; and
             533          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             534      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             535      own purchases.
             536          [(19)] (21) (a) Subject to Subsection [(19)] (21)(b), "clothing" means all human
             537      wearing apparel suitable for general use.
             538          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             539      commission shall make rules:
             540          (i) listing the items that constitute "clothing"; and
             541          (ii) that are consistent with the list of items that constitute "clothing" under the
             542      agreement.
             543          [(20)] (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic
             544      fuel.
             545          [(21)] (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or
             546      other fuels that does not constitute industrial use under Subsection [(48)] (50) or residential use
             547      under Subsection [(96)] (97).
             548          [(22)] (24) (a) "Common carrier" means a person engaged in or transacting the
             549      business of transporting passengers, freight, merchandise, or other property for hire within this
             550      state.
             551          (b) (i) "Common carrier" does not include a person who, at the time the person is
             552      traveling to or from that person's place of employment, transports a passenger to or from the


             553      passenger's place of employment.
             554          (ii) For purposes of Subsection [(22)] (24)(b)(i), in accordance with Title 63G, Chapter
             555      3, Utah Administrative Rulemaking Act, the commission may make rules defining what
             556      constitutes a person's place of employment.
             557          [(23)] (25) "Component part" includes:
             558          (a) poultry, dairy, and other livestock feed, and their components;
             559          (b) baling ties and twine used in the baling of hay and straw;
             560          (c) fuel used for providing temperature control of orchards and commercial
             561      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             562      off-highway type farm machinery; and
             563          (d) feed, seeds, and seedlings.
             564          [(24)] (26) "Computer" means an electronic device that accepts information:
             565          (a) (i) in digital form; or
             566          (ii) in a form similar to digital form; and
             567          (b) manipulates that information for a result based on a sequence of instructions.
             568          [(25)] (27) "Computer software" means a set of coded instructions designed to cause:
             569          (a) a computer to perform a task; or
             570          (b) automatic data processing equipment to perform a task.
             571          [(26)] (28) (a) "Conference bridging service" means an ancillary service that links two
             572      or more participants of an audio conference call or video conference call.
             573          (b) "Conference bridging service" may include providing a telephone number as part of
             574      the ancillary service described in Subsection [(26)] (28)(a).
             575          (c) "Conference bridging service" does not include a telecommunications service used
             576      to reach the ancillary service described in Subsection [(26)] (28)(a).
             577          [(27)] (29) "Construction materials" means any tangible personal property that will be
             578      converted into real property.
             579          [(28)] (30) "Delivered electronically" means delivered to a purchaser by means other
             580      than tangible storage media.
             581          [(29)] (31) (a) "Delivery charge" means a charge:
             582          (i) by a seller of:
             583          (A) tangible personal property;


             584          (B) a product transferred electronically; or
             585          (C) services; and
             586          (ii) for preparation and delivery of the tangible personal property, product transferred
             587      electronically, or services described in Subsection [(29)] (31)(a)(i) to a location designated by
             588      the purchaser.
             589          (b) "Delivery charge" includes a charge for the following:
             590          (i) transportation;
             591          (ii) shipping;
             592          (iii) postage;
             593          (iv) handling;
             594          (v) crating; or
             595          (vi) packing.
             596          [(30)] (32) "Detailed telecommunications billing service" means an ancillary service of
             597      separately stating information pertaining to individual calls on a customer's billing statement.
             598          [(31)] (33) "Dietary supplement" means a product, other than tobacco, that:
             599          (a) is intended to supplement the diet;
             600          (b) contains one or more of the following dietary ingredients:
             601          (i) a vitamin;
             602          (ii) a mineral;
             603          (iii) an herb or other botanical;
             604          (iv) an amino acid;
             605          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             606      dietary intake; or
             607          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             608      described in Subsections [(31)] (33)(b)(i) through (v);
             609          (c) (i) except as provided in Subsection [(31)] (33)(c)(ii), is intended for ingestion in:
             610          (A) tablet form;
             611          (B) capsule form;
             612          (C) powder form;
             613          (D) softgel form;
             614          (E) gelcap form; or


             615          (F) liquid form; or
             616          (ii) notwithstanding Subsection [(31)] (33)(c)(i), if the product is not intended for
             617      ingestion in a form described in Subsections [(31)] (33)(c)(i)(A) through (F), is not
             618      represented:
             619          (A) as conventional food; and
             620          (B) for use as a sole item of:
             621          (I) a meal; or
             622          (II) the diet; and
             623          (d) is required to be labeled as a dietary supplement:
             624          (i) identifiable by the "Supplemental Facts" box found on the label; and
             625          (ii) as required by 21 C.F.R. Sec. 101.36.
             626          [(32)] (34) (a) "Direct mail" means printed material delivered or distributed by United
             627      States mail or other delivery service:
             628          (i) to:
             629          (A) a mass audience; or
             630          (B) addressees on a mailing list provided:
             631          (I) by a purchaser of the mailing list; or
             632          (II) at the discretion of the purchaser of the mailing list; and
             633          (ii) if the cost of the printed material is not billed directly to the recipients.
             634          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             635      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             636          (c) "Direct mail" does not include multiple items of printed material delivered to a
             637      single address.
             638          [(33)] (35) "Directory assistance" means an ancillary service of providing:
             639          (a) address information; or
             640          (b) telephone number information.
             641          [(34)] (36) (a) "Disposable home medical equipment or supplies" means medical
             642      equipment or supplies that:
             643          (i) cannot withstand repeated use; and
             644          (ii) are purchased by, for, or on behalf of a person other than:
             645          (A) a health care facility as defined in Section 26-21-2 ;


             646          (B) a health care provider as defined in Section 78B-3-403 ;
             647          (C) an office of a health care provider described in Subsection [(34)] (36)(a)(ii)(B); or
             648          (D) a person similar to a person described in Subsections [(34)] (36)(a)(ii)(A) through
             649      (C).
             650          (b) "Disposable home medical equipment or supplies" does not include:
             651          (i) a drug;
             652          (ii) durable medical equipment;
             653          (iii) a hearing aid;
             654          (iv) a hearing aid accessory;
             655          (v) mobility enhancing equipment; or
             656          (vi) tangible personal property used to correct impaired vision, including:
             657          (A) eyeglasses; or
             658          (B) contact lenses.
             659          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             660      commission may by rule define what constitutes medical equipment or supplies.
             661          [(35)] (37) (a) "Drug" means a compound, substance, or preparation, or a component of
             662      a compound, substance, or preparation that is:
             663          (i) recognized in:
             664          (A) the official United States Pharmacopoeia;
             665          (B) the official Homeopathic Pharmacopoeia of the United States;
             666          (C) the official National Formulary; or
             667          (D) a supplement to a publication listed in Subsections [(35)] (37)(a)(i)(A) through
             668      (C);
             669          (ii) intended for use in the:
             670          (A) diagnosis of disease;
             671          (B) cure of disease;
             672          (C) mitigation of disease;
             673          (D) treatment of disease; or
             674          (E) prevention of disease; or
             675          (iii) intended to affect:
             676          (A) the structure of the body; or


             677          (B) any function of the body.
             678          (b) "Drug" does not include:
             679          (i) food and food ingredients;
             680          (ii) a dietary supplement;
             681          (iii) an alcoholic beverage; or
             682          (iv) a prosthetic device.
             683          [(36)] (38) (a) Except as provided in Subsection [(36)] (38)(c), "durable medical
             684      equipment" means equipment that:
             685          (i) can withstand repeated use;
             686          (ii) is primarily and customarily used to serve a medical purpose;
             687          (iii) generally is not useful to a person in the absence of illness or injury; and
             688          (iv) is not worn in or on the body.
             689          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             690      equipment described in Subsection [(36)] (38)(a).
             691          (c) Notwithstanding Subsection [(36)] (38)(a), "durable medical equipment" does not
             692      include mobility enhancing equipment.
             693          [(37)] (39) "Electronic" means:
             694          (a) relating to technology; and
             695          (b) having:
             696          (i) electrical capabilities;
             697          (ii) digital capabilities;
             698          (iii) magnetic capabilities;
             699          (iv) wireless capabilities;
             700          (v) optical capabilities;
             701          (vi) electromagnetic capabilities; or
             702          (vii) capabilities similar to Subsections [(37)] (39)(b)(i) through (vi).
             703          [(38)] (40) "Employee" is as defined in Section 59-10-401 .
             704          [(39)] (41) "Fixed guideway" means a public transit facility that uses and occupies:
             705          (a) rail for the use of public transit; or
             706          (b) a separate right-of-way for the use of public transit.
             707          [(40)] (42) "Fixed wing turbine powered aircraft" means an aircraft that:


             708          (a) is powered by turbine engines;
             709          (b) operates on jet fuel; and
             710          (c) has wings that are permanently attached to the fuselage of the aircraft.
             711          [(41)] (43) "Fixed wireless service" means a telecommunications service that provides
             712      radio communication between fixed points.
             713          [(42)] (44) (a) "Food and food ingredients" means substances:
             714          (i) regardless of whether the substances are in:
             715          (A) liquid form;
             716          (B) concentrated form;
             717          (C) solid form;
             718          (D) frozen form;
             719          (E) dried form; or
             720          (F) dehydrated form; and
             721          (ii) that are:
             722          (A) sold for:
             723          (I) ingestion by humans; or
             724          (II) chewing by humans; and
             725          (B) consumed for the substance's:
             726          (I) taste; or
             727          (II) nutritional value.
             728          (b) "Food and food ingredients" includes an item described in Subsection [(79)]
             729      (82)(b)(iii).
             730          (c) "Food and food ingredients" does not include:
             731          (i) an alcoholic beverage;
             732          (ii) tobacco; or
             733          (iii) prepared food.
             734          [(43)] (45) (a) "Fundraising sales" means sales:
             735          (i) (A) made by a school; or
             736          (B) made by a school student;
             737          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             738      materials, or provide transportation; and


             739          (iii) that are part of an officially sanctioned school activity.
             740          (b) For purposes of Subsection [(43)] (45)(a)(iii), "officially sanctioned school activity"
             741      means a school activity:
             742          (i) that is conducted in accordance with a formal policy adopted by the school or school
             743      district governing the authorization and supervision of fundraising activities;
             744          (ii) that does not directly or indirectly compensate an individual teacher or other
             745      educational personnel by direct payment, commissions, or payment in kind; and
             746          (iii) the net or gross revenues from which are deposited in a dedicated account
             747      controlled by the school or school district.
             748          [(44)] (46) "Geothermal energy" means energy contained in heat that continuously
             749      flows outward from the earth that is used as the sole source of energy to produce electricity.
             750          [(45)] (47) "Governing board of the agreement" means the governing board of the
             751      agreement that is:
             752          (a) authorized to administer the agreement; and
             753          (b) established in accordance with the agreement.
             754          [(46)] (48) (a) For purposes of Subsection 59-12-104 (41), "governmental entity"
             755      means:
             756          (i) the executive branch of the state, including all departments, institutions, boards,
             757      divisions, bureaus, offices, commissions, and committees;
             758          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             759      Office of the Court Administrator, and similar administrative units in the judicial branch;
             760          (iii) the legislative branch of the state, including the House of Representatives, the
             761      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             762      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             763      Analyst;
             764          (iv) the National Guard;
             765          (v) an independent entity as defined in Section 63E-1-102 ; or
             766          (vi) a political subdivision as defined in Section 17B-1-102 .
             767          (b) "Governmental entity" does not include the state systems of public and higher
             768      education, including:
             769          (i) a college campus of the Utah College of Applied Technology;


             770          (ii) a school;
             771          (iii) the State Board of Education;
             772          (iv) the State Board of Regents; or
             773          (v) an institution of higher education.
             774          [(47)] (49) "Hydroelectric energy" means water used as the sole source of energy to
             775      produce electricity.
             776          [(48)] (50) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil,
             777      or other fuels:
             778          (a) in mining or extraction of minerals;
             779          (b) in agricultural operations to produce an agricultural product up to the time of
             780      harvest or placing the agricultural product into a storage facility, including:
             781          (i) commercial greenhouses;
             782          (ii) irrigation pumps;
             783          (iii) farm machinery;
             784          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             785      registered under Title 41, Chapter 1a, Part 2, Registration; and
             786          (v) other farming activities;
             787          (c) in manufacturing tangible personal property at an establishment described in SIC
             788      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             789      Executive Office of the President, Office of Management and Budget;
             790          (d) by a scrap recycler if:
             791          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             792      one or more of the following items into prepared grades of processed materials for use in new
             793      products:
             794          (A) iron;
             795          (B) steel;
             796          (C) nonferrous metal;
             797          (D) paper;
             798          (E) glass;
             799          (F) plastic;
             800          (G) textile; or


             801          (H) rubber; and
             802          (ii) the new products under Subsection [(48)] (50)(d)(i) would otherwise be made with
             803      nonrecycled materials; or
             804          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             805      cogeneration facility as defined in Section 54-2-1 .
             806          [(49)] (51) (a) Except as provided in Subsection [(49)] (51)(b), "installation charge"
             807      means a charge for installing:
             808          (i) tangible personal property; or
             809          (ii) a product transferred electronically.
             810          (b) "Installation charge" does not include a charge for:
             811          (i) repairs or renovations of:
             812          (A) tangible personal property; or
             813          (B) a product transferred electronically; or
             814          (ii) attaching tangible personal property or a product transferred electronically:
             815          (A) to other tangible personal property; and
             816          (B) as part of a manufacturing or fabrication process.
             817          [(50)] (52) "Institution of higher education" means an institution of higher education
             818      listed in Section 53B-2-101 .
             819          [(51)] (53) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             820      personal property or a product transferred electronically for:
             821          (i) (A) a fixed term; or
             822          (B) an indeterminate term; and
             823          (ii) consideration.
             824          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             825      amount of consideration may be increased or decreased by reference to the amount realized
             826      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             827      Code.
             828          (c) "Lease" or "rental" does not include:
             829          (i) a transfer of possession or control of property under a security agreement or
             830      deferred payment plan that requires the transfer of title upon completion of the required
             831      payments;


             832          (ii) a transfer of possession or control of property under an agreement that requires the
             833      transfer of title:
             834          (A) upon completion of required payments; and
             835          (B) if the payment of an option price does not exceed the greater of:
             836          (I) $100; or
             837          (II) 1% of the total required payments; or
             838          (iii) providing tangible personal property along with an operator for a fixed period of
             839      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             840      designed.
             841          (d) For purposes of Subsection [(51)] (53)(c)(iii), an operator is necessary for
             842      equipment to perform as designed if the operator's duties exceed the:
             843          (i) set-up of tangible personal property;
             844          (ii) maintenance of tangible personal property; or
             845          (iii) inspection of tangible personal property.
             846          [(52)] (54) "Load and leave" means delivery to a purchaser by use of a tangible storage
             847      media if the tangible storage media is not physically transferred to the purchaser.
             848          [(53)] (55) "Local taxing jurisdiction" means a:
             849          (a) county that is authorized to impose an agreement sales and use tax;
             850          (b) city that is authorized to impose an agreement sales and use tax; or
             851          (c) town that is authorized to impose an agreement sales and use tax.
             852          [(54)] (56) "Manufactured home" is as defined in Section 15A-1-302 .
             853          [(55)] (57) For purposes of Section 59-12-104 , "manufacturing facility" means:
             854          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             855      Industrial Classification Manual of the federal Executive Office of the President, Office of
             856      Management and Budget;
             857          (b) a scrap recycler if:
             858          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             859      one or more of the following items into prepared grades of processed materials for use in new
             860      products:
             861          (A) iron;
             862          (B) steel;


             863          (C) nonferrous metal;
             864          (D) paper;
             865          (E) glass;
             866          (F) plastic;
             867          (G) textile; or
             868          (H) rubber; and
             869          (ii) the new products under Subsection [(55)] (57)(b)(i) would otherwise be made with
             870      nonrecycled materials; or
             871          (c) a cogeneration facility as defined in Section 54-2-1 .
             872          [(56)] (58) "Member of the immediate family of the producer" means a person who is
             873      related to a producer described in Subsection 59-12-104 (20)(a) as a:
             874          (a) child or stepchild, regardless of whether the child or stepchild is:
             875          (i) an adopted child or adopted stepchild; or
             876          (ii) a foster child or foster stepchild;
             877          (b) grandchild or stepgrandchild;
             878          (c) grandparent or stepgrandparent;
             879          (d) nephew or stepnephew;
             880          (e) niece or stepniece;
             881          (f) parent or stepparent;
             882          (g) sibling or stepsibling;
             883          (h) spouse;
             884          (i) person who is the spouse of a person described in Subsections [(56)] (58)(a) through
             885      (g); or
             886          (j) person similar to a person described in Subsections [(56)] (58)(a) through (i) as
             887      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             888      Administrative Rulemaking Act.
             889          [(57)] (59) "Mobile home" is as defined in Section 15A-1-302 .
             890          [(58)] (60) "Mobile telecommunications service" is as defined in the Mobile
             891      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             892          [(59)] (61) (a) "Mobile wireless service" means a telecommunications service,
             893      regardless of the technology used, if:


             894          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             895          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             896          (iii) the origination point described in Subsection [(59)] (61)(a)(i) and the termination
             897      point described in Subsection [(59)] (61)(a)(ii) are not fixed.
             898          (b) "Mobile wireless service" includes a telecommunications service that is provided
             899      by a commercial mobile radio service provider.
             900          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             901      commission may by rule define "commercial mobile radio service provider."
             902          [(60)] (62) (a) Except as provided in Subsection [(60)] (62)(c), "mobility enhancing
             903      equipment" means equipment that is:
             904          (i) primarily and customarily used to provide or increase the ability to move from one
             905      place to another;
             906          (ii) appropriate for use in a:
             907          (A) home; or
             908          (B) motor vehicle; and
             909          (iii) not generally used by persons with normal mobility.
             910          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             911      the equipment described in Subsection [(60)] (62)(a).
             912          (c) Notwithstanding Subsection [(60)] (62)(a), "mobility enhancing equipment" does
             913      not include:
             914          (i) a motor vehicle;
             915          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             916      vehicle manufacturer;
             917          (iii) durable medical equipment; or
             918          (iv) a prosthetic device.
             919          [(61)] (63) "Model 1 seller" means a seller registered under the agreement that has
             920      selected a certified service provider as the seller's agent to perform all of the seller's sales and
             921      use tax functions for agreement sales and use taxes other than the seller's obligation under
             922      Section 59-12-124 to remit a tax on the seller's own purchases.
             923          [(62)] (64) "Model 2 seller" means a seller registered under the agreement that:
             924          (a) except as provided in Subsection [(62)] (64)(b), has selected a certified automated


             925      system to perform the seller's sales tax functions for agreement sales and use taxes; and
             926          (b) notwithstanding Subsection [(62)] (64)(a), retains responsibility for remitting all of
             927      the sales tax:
             928          (i) collected by the seller; and
             929          (ii) to the appropriate local taxing jurisdiction.
             930          [(63)] (65) (a) Subject to Subsection [(63)] (65)(b), "model 3 seller" means a seller
             931      registered under the agreement that has:
             932          (i) sales in at least five states that are members of the agreement;
             933          (ii) total annual sales revenues of at least $500,000,000;
             934          (iii) a proprietary system that calculates the amount of tax:
             935          (A) for an agreement sales and use tax; and
             936          (B) due to each local taxing jurisdiction; and
             937          (iv) entered into a performance agreement with the governing board of the agreement.
             938          (b) For purposes of Subsection [(63)] (65)(a), "model 3 seller" includes an affiliated
             939      group of sellers using the same proprietary system.
             940          [(64)] (66) "Model 4 seller" means a seller that is registered under the agreement and is
             941      not a model 1 seller, model 2 seller, or model 3 seller.
             942          [(65)] (67) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             943          [(66)] (68) "Motor vehicle" is as defined in Section 41-1a-102 .
             944          (69) "Oil sands" means impregnated bituminous sands that:
             945          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
             946      other hydrocarbons, or otherwise treated;
             947          (b) yield mixtures of liquid hydrocarbon; and
             948          (c) require further processing other than mechanical blending before becoming finished
             949      petroleum products.
             950          [(67)] (70) "Oil shale" means a group of fine black to dark brown shales containing
             951      [bituminous] kerogen material that yields petroleum upon heating and distillation.
             952          [(68)] (71) (a) "Other fuels" means products that burn independently to produce heat or
             953      energy.
             954          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             955      personal property.


             956          [(69)] (72) (a) "Paging service" means a telecommunications service that provides
             957      transmission of a coded radio signal for the purpose of activating a specific pager.
             958          (b) For purposes of Subsection [(69)] (72)(a), the transmission of a coded radio signal
             959      includes a transmission by message or sound.
             960          [(70)] (73) "Pawnbroker" is as defined in Section 13-32a-102 .
             961          [(71)] (74) "Pawn transaction" is as defined in Section 13-32a-102 .
             962          [(72)] (75) (a) "Permanently attached to real property" means that for tangible personal
             963      property attached to real property:
             964          (i) the attachment of the tangible personal property to the real property:
             965          (A) is essential to the use of the tangible personal property; and
             966          (B) suggests that the tangible personal property will remain attached to the real
             967      property in the same place over the useful life of the tangible personal property; or
             968          (ii) if the tangible personal property is detached from the real property, the detachment
             969      would:
             970          (A) cause substantial damage to the tangible personal property; or
             971          (B) require substantial alteration or repair of the real property to which the tangible
             972      personal property is attached.
             973          (b) "Permanently attached to real property" includes:
             974          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             975          (A) essential to the operation of the tangible personal property; and
             976          (B) attached only to facilitate the operation of the tangible personal property;
             977          (ii) a temporary detachment of tangible personal property from real property for a
             978      repair or renovation if the repair or renovation is performed where the tangible personal
             979      property and real property are located; or
             980          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             981      Subsection [(72)] (75)(c)(iii) or (iv).
             982          (c) "Permanently attached to real property" does not include:
             983          (i) the attachment of portable or movable tangible personal property to real property if
             984      that portable or movable tangible personal property is attached to real property only for:
             985          (A) convenience;
             986          (B) stability; or


             987          (C) for an obvious temporary purpose;
             988          (ii) the detachment of tangible personal property from real property except for the
             989      detachment described in Subsection [(72)] (75)(b)(ii);
             990          (iii) an attachment of the following tangible personal property to real property if the
             991      attachment to real property is only through a line that supplies water, electricity, gas,
             992      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             993      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             994          (A) a computer;
             995          (B) a telephone;
             996          (C) a television; or
             997          (D) tangible personal property similar to Subsections [(72)] (75)(c)(iii)(A) through (C)
             998      as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             999      Administrative Rulemaking Act; or
             1000          (iv) an item listed in Subsection [(113)] (114)(c).
             1001          [(73)] (76) "Person" includes any individual, firm, partnership, joint venture,
             1002      association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
             1003      city, municipality, district, or other local governmental entity of the state, or any group or
             1004      combination acting as a unit.
             1005          [(74)] (77) "Place of primary use":
             1006          (a) for telecommunications service other than mobile telecommunications service,
             1007      means the street address representative of where the customer's use of the telecommunications
             1008      service primarily occurs, which shall be:
             1009          (i) the residential street address of the customer; or
             1010          (ii) the primary business street address of the customer; or
             1011          (b) for mobile telecommunications service, is as defined in the Mobile
             1012      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             1013          [(75)] (78) (a) "Postpaid calling service" means a telecommunications service a person
             1014      obtains by making a payment on a call-by-call basis:
             1015          (i) through the use of a:
             1016          (A) bank card;
             1017          (B) credit card;


             1018          (C) debit card; or
             1019          (D) travel card; or
             1020          (ii) by a charge made to a telephone number that is not associated with the origination
             1021      or termination of the telecommunications service.
             1022          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             1023      service, that would be a prepaid wireless calling service if the service were exclusively a
             1024      telecommunications service.
             1025          [(76)] (79) "Postproduction" means an activity related to the finishing or duplication of
             1026      a medium described in Subsection 59-12-104 (54)(a).
             1027          [(77)] (80) "Prepaid calling service" means a telecommunications service:
             1028          (a) that allows a purchaser access to telecommunications service that is exclusively
             1029      telecommunications service;
             1030          (b) that:
             1031          (i) is paid for in advance; and
             1032          (ii) enables the origination of a call using an:
             1033          (A) access number; or
             1034          (B) authorization code;
             1035          (c) that is dialed:
             1036          (i) manually; or
             1037          (ii) electronically; and
             1038          (d) sold in predetermined units or dollars that decline:
             1039          (i) by a known amount; and
             1040          (ii) with use.
             1041          [(78)] (81) "Prepaid wireless calling service" means a telecommunications service:
             1042          (a) that provides the right to utilize:
             1043          (i) mobile wireless service; and
             1044          (ii) other service that is not a telecommunications service, including:
             1045          (A) the download of a product transferred electronically;
             1046          (B) a content service; or
             1047          (C) an ancillary service;
             1048          (b) that:


             1049          (i) is paid for in advance; and
             1050          (ii) enables the origination of a call using an:
             1051          (A) access number; or
             1052          (B) authorization code;
             1053          (c) that is dialed:
             1054          (i) manually; or
             1055          (ii) electronically; and
             1056          (d) sold in predetermined units or dollars that decline:
             1057          (i) by a known amount; and
             1058          (ii) with use.
             1059          [(79)] (82) (a) "Prepared food" means:
             1060          (i) food:
             1061          (A) sold in a heated state; or
             1062          (B) heated by a seller;
             1063          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             1064      item; or
             1065          (iii) except as provided in Subsection [(79)] (82)(c), food sold with an eating utensil
             1066      provided by the seller, including a:
             1067          (A) plate;
             1068          (B) knife;
             1069          (C) fork;
             1070          (D) spoon;
             1071          (E) glass;
             1072          (F) cup;
             1073          (G) napkin; or
             1074          (H) straw.
             1075          (b) "Prepared food" does not include:
             1076          (i) food that a seller only:
             1077          (A) cuts;
             1078          (B) repackages; or
             1079          (C) pasteurizes; or


             1080          (ii) (A) the following:
             1081          (I) raw egg;
             1082          (II) raw fish;
             1083          (III) raw meat;
             1084          (IV) raw poultry; or
             1085          (V) a food containing an item described in Subsections [(79)] (82)(b)(ii)(A)(I) through
             1086      (IV); and
             1087          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             1088      Food and Drug Administration's Food Code that a consumer cook the items described in
             1089      Subsection [(79)] (82)(b)(ii)(A) to prevent food borne illness; or
             1090          (iii) the following if sold without eating utensils provided by the seller:
             1091          (A) food and food ingredients sold by a seller if the seller's proper primary
             1092      classification under the 2002 North American Industry Classification System of the federal
             1093      Executive Office of the President, Office of Management and Budget, is manufacturing in
             1094      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             1095      Manufacturing;
             1096          (B) food and food ingredients sold in an unheated state:
             1097          (I) by weight or volume; and
             1098          (II) as a single item; or
             1099          (C) a bakery item, including:
             1100          (I) a bagel;
             1101          (II) a bar;
             1102          (III) a biscuit;
             1103          (IV) bread;
             1104          (V) a bun;
             1105          (VI) a cake;
             1106          (VII) a cookie;
             1107          (VIII) a croissant;
             1108          (IX) a danish;
             1109          (X) a donut;
             1110          (XI) a muffin;


             1111          (XII) a pastry;
             1112          (XIII) a pie;
             1113          (XIV) a roll;
             1114          (XV) a tart;
             1115          (XVI) a torte; or
             1116          (XVII) a tortilla.
             1117          (c) Notwithstanding Subsection [(79)] (82)(a)(iii), an eating utensil provided by the
             1118      seller does not include the following used to transport the food:
             1119          (i) a container; or
             1120          (ii) packaging.
             1121          [(80)] (83) "Prescription" means an order, formula, or recipe that is issued:
             1122          (a) (i) orally;
             1123          (ii) in writing;
             1124          (iii) electronically; or
             1125          (iv) by any other manner of transmission; and
             1126          (b) by a licensed practitioner authorized by the laws of a state.
             1127          [(81)] (84) (a) Except as provided in Subsection [(81)] (84)(b)(ii) or (iii), "prewritten
             1128      computer software" means computer software that is not designed and developed:
             1129          (i) by the author or other creator of the computer software; and
             1130          (ii) to the specifications of a specific purchaser.
             1131          (b) "Prewritten computer software" includes:
             1132          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             1133      software is not designed and developed:
             1134          (A) by the author or other creator of the computer software; and
             1135          (B) to the specifications of a specific purchaser;
             1136          (ii) notwithstanding Subsection [(81)] (84)(a), computer software designed and
             1137      developed by the author or other creator of the computer software to the specifications of a
             1138      specific purchaser if the computer software is sold to a person other than the purchaser; or
             1139          (iii) notwithstanding Subsection [(81)] (84)(a) and except as provided in Subsection
             1140      [(81)](84)(c), prewritten computer software or a prewritten portion of prewritten computer
             1141      software:


             1142          (A) that is modified or enhanced to any degree; and
             1143          (B) if the modification or enhancement described in Subsection [(81)] (84)(b)(iii)(A) is
             1144      designed and developed to the specifications of a specific purchaser.
             1145          (c) Notwithstanding Subsection [(81)] (84)(b)(iii), "prewritten computer software"
             1146      does not include a modification or enhancement described in Subsection [(81)] (84)(b)(iii) if
             1147      the charges for the modification or enhancement are:
             1148          (i) reasonable; and
             1149          (ii) separately stated on the invoice or other statement of price provided to the
             1150      purchaser.
             1151          [(82)] (85) (a) "Private communication service" means a telecommunications service:
             1152          (i) that entitles a customer to exclusive or priority use of one or more communications
             1153      channels between or among termination points; and
             1154          (ii) regardless of the manner in which the one or more communications channels are
             1155      connected.
             1156          (b) "Private communications service" includes the following provided in connection
             1157      with the use of one or more communications channels:
             1158          (i) an extension line;
             1159          (ii) a station;
             1160          (iii) switching capacity; or
             1161          (iv) another associated service that is provided in connection with the use of one or
             1162      more communications channels as defined in Section 59-12-215 .
             1163          [(83)] (86) (a) Except as provided in Subsection [(83)] (86)(b), "product transferred
             1164      electronically" means a product transferred electronically that would be subject to a tax under
             1165      this chapter if that product was transferred in a manner other than electronically.
             1166          (b) "Product transferred electronically" does not include:
             1167          (i) an ancillary service;
             1168          (ii) computer software; or
             1169          (iii) a telecommunications service.
             1170          [(84)] (87) (a) "Prosthetic device" means a device that is worn on or in the body to:
             1171          (i) artificially replace a missing portion of the body;
             1172          (ii) prevent or correct a physical deformity or physical malfunction; or


             1173          (iii) support a weak or deformed portion of the body.
             1174          (b) "Prosthetic device" includes:
             1175          (i) parts used in the repairs or renovation of a prosthetic device;
             1176          (ii) replacement parts for a prosthetic device;
             1177          (iii) a dental prosthesis; or
             1178          (iv) a hearing aid.
             1179          (c) "Prosthetic device" does not include:
             1180          (i) corrective eyeglasses; or
             1181          (ii) contact lenses.
             1182          [(85)] (88) (a) "Protective equipment" means an item:
             1183          (i) for human wear; and
             1184          (ii) that is:
             1185          (A) designed as protection:
             1186          (I) to the wearer against injury or disease; or
             1187          (II) against damage or injury of other persons or property; and
             1188          (B) not suitable for general use.
             1189          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1190      commission shall make rules:
             1191          (i) listing the items that constitute "protective equipment"; and
             1192          (ii) that are consistent with the list of items that constitute "protective equipment"
             1193      under the agreement.
             1194          [(86)] (89) (a) For purposes of Subsection 59-12-104 (41), "publication" means any
             1195      written or printed matter, other than a photocopy:
             1196          (i) regardless of:
             1197          (A) characteristics;
             1198          (B) copyright;
             1199          (C) form;
             1200          (D) format;
             1201          (E) method of reproduction; or
             1202          (F) source; and
             1203          (ii) made available in printed or electronic format.


             1204          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1205      commission may by rule define the term "photocopy."
             1206          [(87)] (90) (a) "Purchase price" and "sales price" mean the total amount of
             1207      consideration:
             1208          (i) valued in money; and
             1209          (ii) for which tangible personal property, a product transferred electronically, or
             1210      services are:
             1211          (A) sold;
             1212          (B) leased; or
             1213          (C) rented.
             1214          (b) "Purchase price" and "sales price" include:
             1215          (i) the seller's cost of the tangible personal property, a product transferred
             1216      electronically, or services sold;
             1217          (ii) expenses of the seller, including:
             1218          (A) the cost of materials used;
             1219          (B) a labor cost;
             1220          (C) a service cost;
             1221          (D) interest;
             1222          (E) a loss;
             1223          (F) the cost of transportation to the seller; or
             1224          (G) a tax imposed on the seller;
             1225          (iii) a charge by the seller for any service necessary to complete the sale; or
             1226          (iv) consideration a seller receives from a person other than the purchaser if:
             1227          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             1228      and
             1229          (II) the consideration described in Subsection [(87)] (90)(b)(iv)(A)(I) is directly related
             1230      to a price reduction or discount on the sale;
             1231          (B) the seller has an obligation to pass the price reduction or discount through to the
             1232      purchaser;
             1233          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             1234      the seller at the time of the sale to the purchaser; and


             1235          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             1236      seller to claim a price reduction or discount; and
             1237          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             1238      coupon, or other documentation with the understanding that the person other than the seller
             1239      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             1240          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             1241      organization allowed a price reduction or discount, except that a preferred customer card that is
             1242      available to any patron of a seller does not constitute membership in a group or organization
             1243      allowed a price reduction or discount; or
             1244          (III) the price reduction or discount is identified as a third party price reduction or
             1245      discount on the:
             1246          (Aa) invoice the purchaser receives; or
             1247          (Bb) certificate, coupon, or other documentation the purchaser presents.
             1248          (c) "Purchase price" and "sales price" do not include:
             1249          (i) a discount:
             1250          (A) in a form including:
             1251          (I) cash;
             1252          (II) term; or
             1253          (III) coupon;
             1254          (B) that is allowed by a seller;
             1255          (C) taken by a purchaser on a sale; and
             1256          (D) that is not reimbursed by a third party; or
             1257          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             1258      provided to the purchaser:
             1259          (A) the following from credit extended on the sale of tangible personal property or
             1260      services:
             1261          (I) a carrying charge;
             1262          (II) a financing charge; or
             1263          (III) an interest charge;
             1264          (B) a delivery charge;
             1265          (C) an installation charge;


             1266          (D) a manufacturer rebate on a motor vehicle; or
             1267          (E) a tax or fee legally imposed directly on the consumer.
             1268          [(88)] (91) "Purchaser" means a person to whom:
             1269          (a) a sale of tangible personal property is made;
             1270          (b) a product is transferred electronically; or
             1271          (c) a service is furnished.
             1272          [(89)] (92) "Regularly rented" means:
             1273          (a) rented to a guest for value three or more times during a calendar year; or
             1274          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1275      value.
             1276          [(90) "Renewable energy" means:]
             1277          [(a) biomass energy;]
             1278          [(b) hydroelectric energy;]
             1279          [(c) geothermal energy;]
             1280          [(d) solar energy; or]
             1281          [(e) wind energy.]
             1282          [(91) (a) "Renewable energy production facility" means a facility that:]
             1283          [(i) uses renewable energy to produce electricity; and]
             1284          [(ii) has a production capacity of 20 kilowatts or greater.]
             1285          [(b) A facility is a renewable energy production facility regardless of whether the
             1286      facility is:]
             1287          [(i) connected to an electric grid; or]
             1288          [(ii) located on the premises of an electricity consumer.]
             1289          [(92)] (93) "Rental" is as defined in Subsection [(51)] (53).
             1290          [(93)] (94) (a) Except as provided in Subsection [(93)] (94)(b), "repairs or renovations
             1291      of tangible personal property" means:
             1292          (i) a repair or renovation of tangible personal property that is not permanently attached
             1293      to real property; or
             1294          (ii) attaching tangible personal property or a product transferred electronically to other
             1295      tangible personal property if:
             1296          (A) the other tangible personal property to which the tangible personal property or


             1297      product transferred electronically is attached is not permanently attached to real property; and
             1298          (B) the attachment of tangible personal property or a product transferred electronically
             1299      to other tangible personal property is made in conjunction with a repair or replacement of
             1300      tangible personal property or a product transferred electronically.
             1301          (b) "Repairs or renovations of tangible personal property" does not include attaching
             1302      prewritten computer software to other tangible personal property if the other tangible personal
             1303      property to which the prewritten computer software is attached is not permanently attached to
             1304      real property.
             1305          [(94)] (95) "Research and development" means the process of inquiry or
             1306      experimentation aimed at the discovery of facts, devices, technologies, or applications and the
             1307      process of preparing those devices, technologies, or applications for marketing.
             1308          [(95)] (96) (a) "Residential telecommunications services" means a telecommunications
             1309      service or an ancillary service that is provided to an individual for personal use:
             1310          (i) at a residential address; or
             1311          (ii) at an institution, including a nursing home or a school, if the telecommunications
             1312      service or ancillary service is provided to and paid for by the individual residing at the
             1313      institution rather than the institution.
             1314          (b) For purposes of Subsection [(95)] (96)(a)(i), a residential address includes an:
             1315          (i) apartment; or
             1316          (ii) other individual dwelling unit.
             1317          [(96)] (97) "Residential use" means the use in or around a home, apartment building,
             1318      sleeping quarters, and similar facilities or accommodations.
             1319          [(97)] (98) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
             1320      other than:
             1321          (a) resale;
             1322          (b) sublease; or
             1323          (c) subrent.
             1324          [(98)] (99) (a) "Retailer" means any person engaged in a regularly organized business
             1325      in tangible personal property or any other taxable transaction under Subsection 59-12-103 (1),
             1326      and who is selling to the user or consumer and not for resale.
             1327          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly


             1328      engaged in the business of selling to users or consumers within the state.
             1329          [(99)] (100) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1330      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1331      Subsection 59-12-103 (1), for consideration.
             1332          (b) "Sale" includes:
             1333          (i) installment and credit sales;
             1334          (ii) any closed transaction constituting a sale;
             1335          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1336      chapter;
             1337          (iv) any transaction if the possession of property is transferred but the seller retains the
             1338      title as security for the payment of the price; and
             1339          (v) any transaction under which right to possession, operation, or use of any article of
             1340      tangible personal property is granted under a lease or contract and the transfer of possession
             1341      would be taxable if an outright sale were made.
             1342          [(100)] (101) "Sale at retail" is as defined in Subsection [(97)] (98).
             1343          [(101)] (102) "Sale-leaseback transaction" means a transaction by which title to
             1344      tangible personal property or a product transferred electronically that is subject to a tax under
             1345      this chapter is transferred:
             1346          (a) by a purchaser-lessee;
             1347          (b) to a lessor;
             1348          (c) for consideration; and
             1349          (d) if:
             1350          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1351      of the tangible personal property or product transferred electronically;
             1352          (ii) the sale of the tangible personal property or product transferred electronically to the
             1353      lessor is intended as a form of financing:
             1354          (A) for the tangible personal property or product transferred electronically; and
             1355          (B) to the purchaser-lessee; and
             1356          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1357      is required to:
             1358          (A) capitalize the tangible personal property or product transferred electronically for


             1359      financial reporting purposes; and
             1360          (B) account for the lease payments as payments made under a financing arrangement.
             1361          [(102)] (103) "Sales price" is as defined in Subsection [(87)] (90).
             1362          [(103)] (104) (a) "Sales relating to schools" means the following sales by, amounts
             1363      paid to, or amounts charged by a school:
             1364          (i) sales that are directly related to the school's educational functions or activities
             1365      including:
             1366          (A) the sale of:
             1367          (I) textbooks;
             1368          (II) textbook fees;
             1369          (III) laboratory fees;
             1370          (IV) laboratory supplies; or
             1371          (V) safety equipment;
             1372          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1373      that:
             1374          (I) a student is specifically required to wear as a condition of participation in a
             1375      school-related event or school-related activity; and
             1376          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1377      place of ordinary clothing;
             1378          (C) sales of the following if the net or gross revenues generated by the sales are
             1379      deposited into a school district fund or school fund dedicated to school meals:
             1380          (I) food and food ingredients; or
             1381          (II) prepared food; or
             1382          (D) transportation charges for official school activities; or
             1383          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1384      event or school-related activity.
             1385          (b) "Sales relating to schools" does not include:
             1386          (i) bookstore sales of items that are not educational materials or supplies;
             1387          (ii) except as provided in Subsection [(103)] (104)(a)(i)(B):
             1388          (A) clothing;
             1389          (B) clothing accessories or equipment;


             1390          (C) protective equipment; or
             1391          (D) sports or recreational equipment; or
             1392          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1393      event or school-related activity if the amounts paid or charged are passed through to a person:
             1394          (A) other than a:
             1395          (I) school;
             1396          (II) nonprofit organization authorized by a school board or a governing body of a
             1397      private school to organize and direct a competitive secondary school activity; or
             1398          (III) nonprofit association authorized by a school board or a governing body of a
             1399      private school to organize and direct a competitive secondary school activity; and
             1400          (B) that is required to collect sales and use taxes under this chapter.
             1401          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1402      commission may make rules defining the term "passed through."
             1403          [(104)] (105) For purposes of this section and Section 59-12-104 , "school":
             1404          (a) means:
             1405          (i) an elementary school or a secondary school that:
             1406          (A) is a:
             1407          (I) public school; or
             1408          (II) private school; and
             1409          (B) provides instruction for one or more grades kindergarten through 12; or
             1410          (ii) a public school district; and
             1411          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1412          [(105)] (106) "Seller" means a person that makes a sale, lease, or rental of:
             1413          (a) tangible personal property;
             1414          (b) a product transferred electronically; or
             1415          (c) a service.
             1416          [(106)] (107) (a) "Semiconductor fabricating, processing, research, or development
             1417      materials" means tangible personal property or a product transferred electronically if the
             1418      tangible personal property or product transferred electronically is:
             1419          (i) used primarily in the process of:
             1420          (A) (I) manufacturing a semiconductor;


             1421          (II) fabricating a semiconductor; or
             1422          (III) research or development of a:
             1423          (Aa) semiconductor; or
             1424          (Bb) semiconductor manufacturing process; or
             1425          (B) maintaining an environment suitable for a semiconductor; or
             1426          (ii) consumed primarily in the process of:
             1427          (A) (I) manufacturing a semiconductor;
             1428          (II) fabricating a semiconductor; or
             1429          (III) research or development of a:
             1430          (Aa) semiconductor; or
             1431          (Bb) semiconductor manufacturing process; or
             1432          (B) maintaining an environment suitable for a semiconductor.
             1433          (b) "Semiconductor fabricating, processing, research, or development materials"
             1434      includes:
             1435          (i) parts used in the repairs or renovations of tangible personal property or a product
             1436      transferred electronically described in Subsection [(106)] (107)(a); or
             1437          (ii) a chemical, catalyst, or other material used to:
             1438          (A) produce or induce in a semiconductor a:
             1439          (I) chemical change; or
             1440          (II) physical change;
             1441          (B) remove impurities from a semiconductor; or
             1442          (C) improve the marketable condition of a semiconductor.
             1443          [(107)] (108) "Senior citizen center" means a facility having the primary purpose of
             1444      providing services to the aged as defined in Section 62A-3-101 .
             1445          [(108)] (109) "Simplified electronic return" means the electronic return:
             1446          (a) described in Section 318(C) of the agreement; and
             1447          (b) approved by the governing board of the agreement.
             1448          [(109)] (110) "Solar energy" means the sun used as the sole source of energy for
             1449      producing electricity.
             1450          [(110)] (111) (a) "Sports or recreational equipment" means an item:
             1451          (i) designed for human use; and


             1452          (ii) that is:
             1453          (A) worn in conjunction with:
             1454          (I) an athletic activity; or
             1455          (II) a recreational activity; and
             1456          (B) not suitable for general use.
             1457          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1458      commission shall make rules:
             1459          (i) listing the items that constitute "sports or recreational equipment"; and
             1460          (ii) that are consistent with the list of items that constitute "sports or recreational
             1461      equipment" under the agreement.
             1462          [(111)] (112) "State" means the state of Utah, its departments, and agencies.
             1463          [(112)] (113) "Storage" means any keeping or retention of tangible personal property or
             1464      any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
             1465      except sale in the regular course of business.
             1466          [(113)] (114) (a) Except as provided in Subsection [(113)] (114)(d) or (e), "tangible
             1467      personal property" means personal property that:
             1468          (i) may be:
             1469          (A) seen;
             1470          (B) weighed;
             1471          (C) measured;
             1472          (D) felt; or
             1473          (E) touched; or
             1474          (ii) is in any manner perceptible to the senses.
             1475          (b) "Tangible personal property" includes:
             1476          (i) electricity;
             1477          (ii) water;
             1478          (iii) gas;
             1479          (iv) steam; or
             1480          (v) prewritten computer software, regardless of the manner in which the prewritten
             1481      computer software is transferred.
             1482          (c) "Tangible personal property" includes the following regardless of whether the item


             1483      is attached to real property:
             1484          (i) a dishwasher;
             1485          (ii) a dryer;
             1486          (iii) a freezer;
             1487          (iv) a microwave;
             1488          (v) a refrigerator;
             1489          (vi) a stove;
             1490          (vii) a washer; or
             1491          (viii) an item similar to Subsections [(113)] (114)(c)(i) through (vii) as determined by
             1492      the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1493      Rulemaking Act.
             1494          (d) "Tangible personal property" does not include a product that is transferred
             1495      electronically.
             1496          (e) "Tangible personal property" does not include the following if attached to real
             1497      property, regardless of whether the attachment to real property is only through a line that
             1498      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             1499      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1500      Rulemaking Act:
             1501          (i) a hot water heater;
             1502          (ii) a water filtration system; or
             1503          (iii) a water softener system.
             1504          [(114) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
             1505      and require further processing other than mechanical blending before becoming finished
             1506      petroleum products.]
             1507          (115) (a) "Telecommunications enabling or facilitating equipment, machinery, or
             1508      software" means an item listed in Subsection (115)(b) if that item is purchased or leased
             1509      primarily to enable or facilitate one or more of the following to function:
             1510          (i) telecommunications switching or routing equipment, machinery, or software; or
             1511          (ii) telecommunications transmission equipment, machinery, or software.
             1512          (b) The following apply to Subsection (115)(a):
             1513          (i) a pole;


             1514          (ii) software;
             1515          (iii) a supplementary power supply;
             1516          (iv) temperature or environmental equipment or machinery;
             1517          (v) test equipment;
             1518          (vi) a tower; or
             1519          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1520      Subsections (115)(b)(i) through (vi) as determined by the commission by rule made in
             1521      accordance with Subsection (115)(c).
             1522          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1523      commission may by rule define what constitutes equipment, machinery, or software that
             1524      functions similarly to an item listed in Subsections (115)(b)(i) through (vi).
             1525          (116) "Telecommunications equipment, machinery, or software required for 911
             1526      service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
             1527      Sec. 20.18.
             1528          (117) "Telecommunications maintenance or repair equipment, machinery, or software"
             1529      means equipment, machinery, or software purchased or leased primarily to maintain or repair
             1530      one or more of the following, regardless of whether the equipment, machinery, or software is
             1531      purchased or leased as a spare part or as an upgrade or modification to one or more of the
             1532      following:
             1533          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1534          (b) telecommunications switching or routing equipment, machinery, or software; or
             1535          (c) telecommunications transmission equipment, machinery, or software.
             1536          (118) (a) "Telecommunications service" means the electronic conveyance, routing, or
             1537      transmission of audio, data, video, voice, or any other information or signal to a point, or
             1538      among or between points.
             1539          (b) "Telecommunications service" includes:
             1540          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             1541      processing application is used to act:
             1542          (A) on the code, form, or protocol of the content;
             1543          (B) for the purpose of electronic conveyance, routing, or transmission; and
             1544          (C) regardless of whether the service:


             1545          (I) is referred to as voice over Internet protocol service; or
             1546          (II) is classified by the Federal Communications Commission as enhanced or value
             1547      added;
             1548          (ii) an 800 service;
             1549          (iii) a 900 service;
             1550          (iv) a fixed wireless service;
             1551          (v) a mobile wireless service;
             1552          (vi) a postpaid calling service;
             1553          (vii) a prepaid calling service;
             1554          (viii) a prepaid wireless calling service; or
             1555          (ix) a private communications service.
             1556          (c) "Telecommunications service" does not include:
             1557          (i) advertising, including directory advertising;
             1558          (ii) an ancillary service;
             1559          (iii) a billing and collection service provided to a third party;
             1560          (iv) a data processing and information service if:
             1561          (A) the data processing and information service allows data to be:
             1562          (I) (Aa) acquired;
             1563          (Bb) generated;
             1564          (Cc) processed;
             1565          (Dd) retrieved; or
             1566          (Ee) stored; and
             1567          (II) delivered by an electronic transmission to a purchaser; and
             1568          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             1569      or information;
             1570          (v) installation or maintenance of the following on a customer's premises:
             1571          (A) equipment; or
             1572          (B) wiring;
             1573          (vi) Internet access service;
             1574          (vii) a paging service;
             1575          (viii) a product transferred electronically, including:


             1576          (A) music;
             1577          (B) reading material;
             1578          (C) a ring tone;
             1579          (D) software; or
             1580          (E) video;
             1581          (ix) a radio and television audio and video programming service:
             1582          (A) regardless of the medium; and
             1583          (B) including:
             1584          (I) furnishing conveyance, routing, or transmission of a television audio and video
             1585      programming service by a programming service provider;
             1586          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             1587          (III) audio and video programming services delivered by a commercial mobile radio
             1588      service provider as defined in 47 C.F.R. Sec. 20.3;
             1589          (x) a value-added nonvoice data service; or
             1590          (xi) tangible personal property.
             1591          (119) (a) "Telecommunications service provider" means a person that:
             1592          (i) owns, controls, operates, or manages a telecommunications service; and
             1593          (ii) engages in an activity described in Subsection (119)(a)(i) for the shared use with or
             1594      resale to any person of the telecommunications service.
             1595          (b) A person described in Subsection (119)(a) is a telecommunications service provider
             1596      whether or not the Public Service Commission of Utah regulates:
             1597          (i) that person; or
             1598          (ii) the telecommunications service that the person owns, controls, operates, or
             1599      manages.
             1600          (120) (a) "Telecommunications switching or routing equipment, machinery, or
             1601      software" means an item listed in Subsection (120)(b) if that item is purchased or leased
             1602      primarily for switching or routing:
             1603          (i) an ancillary service;
             1604          (ii) data communications;
             1605          (iii) voice communications; or
             1606          (iv) telecommunications service.


             1607          (b) The following apply to Subsection (120)(a):
             1608          (i) a bridge;
             1609          (ii) a computer;
             1610          (iii) a cross connect;
             1611          (iv) a modem;
             1612          (v) a multiplexer;
             1613          (vi) plug in circuitry;
             1614          (vii) a router;
             1615          (viii) software;
             1616          (ix) a switch; or
             1617          (x) equipment, machinery, or software that functions similarly to an item listed in
             1618      Subsections (120)(b)(i) through (ix) as determined by the commission by rule made in
             1619      accordance with Subsection (120)(c).
             1620          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1621      commission may by rule define what constitutes equipment, machinery, or software that
             1622      functions similarly to an item listed in Subsections (120)(b)(i) through (ix).
             1623          (121) (a) "Telecommunications transmission equipment, machinery, or software"
             1624      means an item listed in Subsection (121)(b) if that item is purchased or leased primarily for
             1625      sending, receiving, or transporting:
             1626          (i) an ancillary service;
             1627          (ii) data communications;
             1628          (iii) voice communications; or
             1629          (iv) telecommunications service.
             1630          (b) The following apply to Subsection (121)(a):
             1631          (i) an amplifier;
             1632          (ii) a cable;
             1633          (iii) a closure;
             1634          (iv) a conduit;
             1635          (v) a controller;
             1636          (vi) a duplexer;
             1637          (vii) a filter;


             1638          (viii) an input device;
             1639          (ix) an input/output device;
             1640          (x) an insulator;
             1641          (xi) microwave machinery or equipment;
             1642          (xii) an oscillator;
             1643          (xiii) an output device;
             1644          (xiv) a pedestal;
             1645          (xv) a power converter;
             1646          (xvi) a power supply;
             1647          (xvii) a radio channel;
             1648          (xviii) a radio receiver;
             1649          (xix) a radio transmitter;
             1650          (xx) a repeater;
             1651          (xxi) software;
             1652          (xxii) a terminal;
             1653          (xxiii) a timing unit;
             1654          (xxiv) a transformer;
             1655          (xxv) a wire; or
             1656          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1657      Subsections (121)(b)(i) through (xxv) as determined by the commission by rule made in
             1658      accordance with Subsection (121)(c).
             1659          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1660      commission may by rule define what constitutes equipment, machinery, or software that
             1661      functions similarly to an item listed in Subsections (121)(b)(i) through (xxv).
             1662          (122) (a) "Textbook for a higher education course" means a textbook or other printed
             1663      material that is required for a course:
             1664          (i) offered by an institution of higher education; and
             1665          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             1666          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             1667          (123) "Tobacco" means:
             1668          (a) a cigarette;


             1669          (b) a cigar;
             1670          (c) chewing tobacco;
             1671          (d) pipe tobacco; or
             1672          (e) any other item that contains tobacco.
             1673          (124) "Unassisted amusement device" means an amusement device, skill device, or
             1674      ride device that is started and stopped by the purchaser or renter of the right to use or operate
             1675      the amusement device, skill device, or ride device.
             1676          (125) (a) "Use" means the exercise of any right or power over tangible personal
             1677      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             1678      incident to the ownership or the leasing of that tangible personal property, product transferred
             1679      electronically, or service.
             1680          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             1681      property, a product transferred electronically, or a service in the regular course of business and
             1682      held for resale.
             1683          (126) "Value-added nonvoice data service" means a service:
             1684          (a) that otherwise meets the definition of a telecommunications service except that a
             1685      computer processing application is used to act primarily for a purpose other than conveyance,
             1686      routing, or transmission; and
             1687          (b) with respect to which a computer processing application is used to act on data or
             1688      information:
             1689          (i) code;
             1690          (ii) content;
             1691          (iii) form; or
             1692          (iv) protocol.
             1693          (127) (a) Subject to Subsection (127)(b), "vehicle" means the following that are
             1694      required to be titled, registered, or titled and registered:
             1695          (i) an aircraft as defined in Section 72-10-102 ;
             1696          (ii) a vehicle as defined in Section 41-1a-102 ;
             1697          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             1698          (iv) a vessel as defined in Section 41-1a-102 .
             1699          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:


             1700          (i) a vehicle described in Subsection (127)(a); or
             1701          (ii) (A) a locomotive;
             1702          (B) a freight car;
             1703          (C) railroad work equipment; or
             1704          (D) other railroad rolling stock.
             1705          (128) "Vehicle dealer" means a person engaged in the business of buying, selling, or
             1706      exchanging a vehicle as defined in Subsection (127).
             1707          (129) (a) "Vertical service" means an ancillary service that:
             1708          (i) is offered in connection with one or more telecommunications services; and
             1709          (ii) offers an advanced calling feature that allows a customer to:
             1710          (A) identify a caller; and
             1711          (B) manage multiple calls and call connections.
             1712          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             1713      conference bridging service.
             1714          (130) (a) "Voice mail service" means an ancillary service that enables a customer to
             1715      receive, send, or store a recorded message.
             1716          (b) "Voice mail service" does not include a vertical service that a customer is required
             1717      to have in order to utilize a voice mail service.
             1718          (131) (a) Except as provided in Subsection (131)(b), "waste energy facility" means a
             1719      facility that generates electricity:
             1720          (i) using as the primary source of energy waste materials that would be placed in a
             1721      landfill or refuse pit if it were not used to generate electricity, including:
             1722          (A) tires;
             1723          (B) waste coal; [or]
             1724          (C) oil shale; [and] or
             1725          (D) municipal solid waste; and
             1726          (ii) in amounts greater than actually required for the operation of the facility.
             1727          (b) "Waste energy facility" does not include a facility that incinerates:
             1728          [(i) municipal solid waste;]
             1729          [(ii)] (i) hospital waste as defined in 40 C.F.R. 60.51c; or
             1730          [(iii)] (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.


             1731          (132) "Watercraft" means a vessel as defined in Section 73-18-2 .
             1732          (133) "Wind energy" means wind used as the sole source of energy to produce
             1733      electricity.
             1734          (134) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
             1735      location by the United States Postal Service.
             1736          Section 7. Section 59-12-104 is amended to read:
             1737           59-12-104. Exemptions.
             1738          The following sales and uses are exempt from the taxes imposed by this chapter:
             1739          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             1740      under Chapter 13, Motor and Special Fuel Tax Act;
             1741          (2) subject to Section 59-12-104.6 , sales to the state, its institutions, and its political
             1742      subdivisions; however, this exemption does not apply to sales of:
             1743          (a) construction materials except:
             1744          (i) construction materials purchased by or on behalf of institutions of the public
             1745      education system as defined in Utah Constitution Article X, Section 2, provided the
             1746      construction materials are clearly identified and segregated and installed or converted to real
             1747      property which is owned by institutions of the public education system; and
             1748          (ii) construction materials purchased by the state, its institutions, or its political
             1749      subdivisions which are installed or converted to real property by employees of the state, its
             1750      institutions, or its political subdivisions; or
             1751          (b) tangible personal property in connection with the construction, operation,
             1752      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             1753      providing additional project capacity, as defined in Section 11-13-103 ;
             1754          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             1755          (i) the proceeds of each sale do not exceed $1; and
             1756          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             1757      the cost of the item described in Subsection (3)(b) as goods consumed; and
             1758          (b) Subsection (3)(a) applies to:
             1759          (i) food and food ingredients; or
             1760          (ii) prepared food;
             1761          (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:


             1762          (i) alcoholic beverages;
             1763          (ii) food and food ingredients; or
             1764          (iii) prepared food;
             1765          (b) sales of tangible personal property or a product transferred electronically:
             1766          (i) to a passenger;
             1767          (ii) by a commercial airline carrier; and
             1768          (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
             1769          (c) services related to Subsection (4)(a) or (b);
             1770          (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
             1771      and equipment:
             1772          (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
             1773      North American Industry Classification System of the federal Executive Office of the
             1774      President, Office of Management and Budget; and
             1775          (II) for:
             1776          (Aa) installation in an aircraft, including services relating to the installation of parts or
             1777      equipment in the aircraft;
             1778          (Bb) renovation of an aircraft; or
             1779          (Cc) repair of an aircraft; or
             1780          (B) for installation in an aircraft operated by a common carrier in interstate or foreign
             1781      commerce; or
             1782          (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
             1783      aircraft operated by a common carrier in interstate or foreign commerce; and
             1784          (b) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             1785      a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
             1786      refund:
             1787          (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
             1788          (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
             1789          (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
             1790      the sale prior to filing for the refund;
             1791          (iv) for sales and use taxes paid under this chapter on the sale;
             1792          (v) in accordance with Section 59-1-1410 ; and


             1793          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             1794      the person files for the refund on or before September 30, 2011;
             1795          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             1796      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             1797      exhibitor, distributor, or commercial television or radio broadcaster;
             1798          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             1799      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             1800      washing of tangible personal property;
             1801          (b) if a seller that sells at the same business location assisted cleaning or washing of
             1802      tangible personal property and cleaning or washing of tangible personal property that is not
             1803      assisted cleaning or washing of tangible personal property, the exemption described in
             1804      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             1805      or washing of the tangible personal property; and
             1806          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
             1807      Utah Administrative Rulemaking Act, the commission may make rules:
             1808          (i) governing the circumstances under which sales are at the same business location;
             1809      and
             1810          (ii) establishing the procedures and requirements for a seller to separately account for
             1811      sales of assisted cleaning or washing of tangible personal property;
             1812          (8) sales made to or by religious or charitable institutions in the conduct of their regular
             1813      religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
             1814      fulfilled;
             1815          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
             1816      this state if the vehicle is:
             1817          (a) not registered in this state; and
             1818          (b) (i) not used in this state; or
             1819          (ii) used in this state:
             1820          (A) if the vehicle is not used to conduct business, for a time period that does not
             1821      exceed the longer of:
             1822          (I) 30 days in any calendar year; or
             1823          (II) the time period necessary to transport the vehicle to the borders of this state; or


             1824          (B) if the vehicle is used to conduct business, for the time period necessary to transport
             1825      the vehicle to the borders of this state;
             1826          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             1827          (i) the item is intended for human use; and
             1828          (ii) (A) a prescription was issued for the item; or
             1829          (B) the item was purchased by a hospital or other medical facility; and
             1830          (b) (i) Subsection (10)(a) applies to:
             1831          (A) a drug;
             1832          (B) a syringe; or
             1833          (C) a stoma supply; and
             1834          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1835      commission may by rule define the terms:
             1836          (A) "syringe"; or
             1837          (B) "stoma supply";
             1838          (11) sales or use of property, materials, or services used in the construction of or
             1839      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             1840          (12) (a) sales of an item described in Subsection (12)(c) served by:
             1841          (i) the following if the item described in Subsection (12)(c) is not available to the
             1842      general public:
             1843          (A) a church; or
             1844          (B) a charitable institution;
             1845          (ii) an institution of higher education if:
             1846          (A) the item described in Subsection (12)(c) is not available to the general public; or
             1847          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             1848      offered by the institution of higher education; or
             1849          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             1850          (i) a medical facility; or
             1851          (ii) a nursing facility; and
             1852          (c) Subsections (12)(a) and (b) apply to:
             1853          (i) food and food ingredients;
             1854          (ii) prepared food; or


             1855          (iii) alcoholic beverages;
             1856          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
             1857      or a product transferred electronically by a person:
             1858          (i) regardless of the number of transactions involving the sale of that tangible personal
             1859      property or product transferred electronically by that person; and
             1860          (ii) not regularly engaged in the business of selling that type of tangible personal
             1861      property or product transferred electronically;
             1862          (b) this Subsection (13) does not apply if:
             1863          (i) the sale is one of a series of sales of a character to indicate that the person is
             1864      regularly engaged in the business of selling that type of tangible personal property or product
             1865      transferred electronically;
             1866          (ii) the person holds that person out as regularly engaged in the business of selling that
             1867      type of tangible personal property or product transferred electronically;
             1868          (iii) the person sells an item of tangible personal property or product transferred
             1869      electronically that the person purchased as a sale that is exempt under Subsection (25); or
             1870          (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
             1871      this state in which case the tax is based upon:
             1872          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
             1873      sold; or
             1874          (B) in the absence of a bill of sale or other written evidence of value, the fair market
             1875      value of the vehicle or vessel being sold at the time of the sale as determined by the
             1876      commission; and
             1877          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1878      commission shall make rules establishing the circumstances under which:
             1879          (i) a person is regularly engaged in the business of selling a type of tangible personal
             1880      property or product transferred electronically;
             1881          (ii) a sale of tangible personal property or a product transferred electronically is one of
             1882      a series of sales of a character to indicate that a person is regularly engaged in the business of
             1883      selling that type of tangible personal property or product transferred electronically; or
             1884          (iii) a person holds that person out as regularly engaged in the business of selling a type
             1885      of tangible personal property or product transferred electronically;


             1886          (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
             1887      July 1, 2006, for a purchase or lease by a manufacturing facility except for a cogeneration
             1888      facility, of the following:
             1889          (i) machinery and equipment that:
             1890          (A) are used:
             1891          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             1892      recycler described in Subsection 59-12-102 [(55)](57)(b):
             1893          (Aa) in the manufacturing process;
             1894          (Bb) to manufacture an item sold as tangible personal property; and
             1895          (Cc) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             1896      (14)(a)(i)(A)(I) in the state; or
             1897          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             1898      59-12-102 [(55)](57)(b):
             1899          (Aa) to process an item sold as tangible personal property; and
             1900          (Bb) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             1901      (14)(a)(i)(A)(II) in the state; and
             1902          (B) have an economic life of three or more years; and
             1903          (ii) normal operating repair or replacement parts that:
             1904          (A) have an economic life of three or more years; and
             1905          (B) are used:
             1906          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             1907      recycler described in Subsection 59-12-102 [(55)](57)(b):
             1908          (Aa) in the manufacturing process; and
             1909          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(I) in the
             1910      state; or
             1911          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             1912      59-12-102 [(55)](57)(b):
             1913          (Aa) to process an item sold as tangible personal property; and
             1914          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(II) in the
             1915      state;
             1916          (b) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a


             1917      manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
             1918      of the following:
             1919          (i) machinery and equipment that:
             1920          (A) are used:
             1921          (I) in the manufacturing process;
             1922          (II) to manufacture an item sold as tangible personal property; and
             1923          (III) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             1924      (14)(b) in the state; and
             1925          (B) have an economic life of three or more years; and
             1926          (ii) normal operating repair or replacement parts that:
             1927          (A) are used:
             1928          (I) in the manufacturing process; and
             1929          (II) in a manufacturing facility described in this Subsection (14)(b) in the state; and
             1930          (B) have an economic life of three or more years;
             1931          (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
             1932      by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
             1933      NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
             1934      Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
             1935      of the 2002 North American Industry Classification System of the federal Executive Office of
             1936      the President, Office of Management and Budget, of the following:
             1937          (i) machinery and equipment that:
             1938          (A) are used:
             1939          (I) (Aa) in the production process, other than the production of real property; or
             1940          (Bb) in research and development; and
             1941          (II) beginning on July 1, 2009, in an establishment described in this Subsection (14)(c)
             1942      in the state; and
             1943          (B) have an economic life of three or more years; and
             1944          (ii) normal operating repair or replacement parts that:
             1945          (A) have an economic life of three or more years; and
             1946          (B) are used in:
             1947          (I) (Aa) the production process, except for the production of real property; and


             1948          (Bb) an establishment described in this Subsection (14)(c) in the state; or
             1949          (II) (Aa) research and development; and
             1950          (Bb) in an establishment described in this Subsection (14)(c) in the state;
             1951          (d) (i) amounts paid or charged for a purchase or lease made on or after July 1, 2010,
             1952      but on or before June 30, 2014, by an establishment described in NAICS Code 518112, Web
             1953      Search Portals, of the 2002 North American Industry Classification System of the federal
             1954      Executive Office of the President, Office of Management and Budget, of the following:
             1955          (A) machinery and equipment that:
             1956          (I) are used in the operation of the web search portal;
             1957          (II) have an economic life of three or more years; and
             1958          (III) are used in a new or expanding establishment described in this Subsection (14)(d)
             1959      in the state; and
             1960          (B) normal operating repair or replacement parts that:
             1961          (I) are used in the operation of the web search portal;
             1962          (II) have an economic life of three or more years; and
             1963          (III) are used in a new or expanding establishment described in this Subsection (14)(d)
             1964      in the state; or
             1965          (ii) amounts paid or charged for a purchase or lease made on or after July 1, 2014, by
             1966      an establishment described in NAICS Code 518112, Web Search Portals, of the 2002 North
             1967      American Industry Classification System of the federal Executive Office of the President,
             1968      Office of Management and Budget, of the following:
             1969          (A) machinery and equipment that:
             1970          (I) are used in the operation of the web search portal; and
             1971          (II) have an economic life of three or more years; and
             1972          (B) normal operating repair or replacement parts that:
             1973          (I) are used in the operation of the web search portal; and
             1974          (II) have an economic life of three or more years;
             1975          (e) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,
             1976      Utah Administrative Rulemaking Act, the commission:
             1977          (i) shall by rule define the term "establishment"; and
             1978          (ii) may by rule define what constitutes:


             1979          (A) processing an item sold as tangible personal property;
             1980          (B) the production process, except for the production of real property;
             1981          (C) research and development; or
             1982          (D) a new or expanding establishment described in Subsection (14)(d) in the state; and
             1983          (f) on or before October 1, 2011, and every five years after October 1, 2011, the
             1984      commission shall:
             1985          (i) review the exemptions described in this Subsection (14) and make
             1986      recommendations to the Revenue and Taxation Interim Committee concerning whether the
             1987      exemptions should be continued, modified, or repealed; and
             1988          (ii) include in its report:
             1989          (A) an estimate of the cost of the exemptions;
             1990          (B) the purpose and effectiveness of the exemptions; and
             1991          (C) the benefits of the exemptions to the state;
             1992          (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
             1993          (i) tooling;
             1994          (ii) special tooling;
             1995          (iii) support equipment;
             1996          (iv) special test equipment; or
             1997          (v) parts used in the repairs or renovations of tooling or equipment described in
             1998      Subsections (15)(a)(i) through (iv); and
             1999          (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
             2000          (i) the tooling, equipment, or parts are used or consumed exclusively in the
             2001      performance of any aerospace or electronics industry contract with the United States
             2002      government or any subcontract under that contract; and
             2003          (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
             2004      title to the tooling, equipment, or parts is vested in the United States government as evidenced
             2005      by:
             2006          (A) a government identification tag placed on the tooling, equipment, or parts; or
             2007          (B) listing on a government-approved property record if placing a government
             2008      identification tag on the tooling, equipment, or parts is impractical;
             2009          (16) sales of newspapers or newspaper subscriptions;


             2010          (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
             2011      product transferred electronically traded in as full or part payment of the purchase price, except
             2012      that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
             2013      trade-ins are limited to other vehicles only, and the tax is based upon:
             2014          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
             2015      vehicle being traded in; or
             2016          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
             2017      fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
             2018      commission; and
             2019          (b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
             2020      following items of tangible personal property or products transferred electronically traded in as
             2021      full or part payment of the purchase price:
             2022          (i) money;
             2023          (ii) electricity;
             2024          (iii) water;
             2025          (iv) gas; or
             2026          (v) steam;
             2027          (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
             2028      or a product transferred electronically used or consumed primarily and directly in farming
             2029      operations, regardless of whether the tangible personal property or product transferred
             2030      electronically:
             2031          (A) becomes part of real estate; or
             2032          (B) is installed by a:
             2033          (I) farmer;
             2034          (II) contractor; or
             2035          (III) subcontractor; or
             2036          (ii) sales of parts used in the repairs or renovations of tangible personal property or a
             2037      product transferred electronically if the tangible personal property or product transferred
             2038      electronically is exempt under Subsection (18)(a)(i); and
             2039          (b) notwithstanding Subsection (18)(a), amounts paid or charged for the following are
             2040      subject to the taxes imposed by this chapter:


             2041          (i) (A) subject to Subsection (18)(b)(i)(B), the following if used in a manner that is
             2042      incidental to farming:
             2043          (I) machinery;
             2044          (II) equipment;
             2045          (III) materials; or
             2046          (IV) supplies; and
             2047          (B) tangible personal property that is considered to be used in a manner that is
             2048      incidental to farming includes:
             2049          (I) hand tools; or
             2050          (II) maintenance and janitorial equipment and supplies;
             2051          (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
             2052      transferred electronically if the tangible personal property or product transferred electronically
             2053      is used in an activity other than farming; and
             2054          (B) tangible personal property or a product transferred electronically that is considered
             2055      to be used in an activity other than farming includes:
             2056          (I) office equipment and supplies; or
             2057          (II) equipment and supplies used in:
             2058          (Aa) the sale or distribution of farm products;
             2059          (Bb) research; or
             2060          (Cc) transportation; or
             2061          (iii) a vehicle required to be registered by the laws of this state during the period
             2062      ending two years after the date of the vehicle's purchase;
             2063          (19) sales of hay;
             2064          (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
             2065      garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
             2066      garden, farm, or other agricultural produce is sold by:
             2067          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
             2068      agricultural produce;
             2069          (b) an employee of the producer described in Subsection (20)(a); or
             2070          (c) a member of the immediate family of the producer described in Subsection (20)(a);
             2071          (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued


             2072      under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
             2073          (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
             2074      nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
             2075      wholesaler, or retailer for use in packaging tangible personal property to be sold by that
             2076      manufacturer, processor, wholesaler, or retailer;
             2077          (23) a product stored in the state for resale;
             2078          (24) (a) purchases of a product if:
             2079          (i) the product is:
             2080          (A) purchased outside of this state;
             2081          (B) brought into this state:
             2082          (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
             2083          (II) by a nonresident person who is not living or working in this state at the time of the
             2084      purchase;
             2085          (C) used for the personal use or enjoyment of the nonresident person described in
             2086      Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
             2087          (D) not used in conducting business in this state; and
             2088          (ii) for:
             2089          (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
             2090      the product for a purpose for which the product is designed occurs outside of this state;
             2091          (B) a boat, the boat is registered outside of this state; or
             2092          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             2093      outside of this state;
             2094          (b) the exemption provided for in Subsection (24)(a) does not apply to:
             2095          (i) a lease or rental of a product; or
             2096          (ii) a sale of a vehicle exempt under Subsection (33); and
             2097          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             2098      purposes of Subsection (24)(a), the commission may by rule define what constitutes the
             2099      following:
             2100          (i) conducting business in this state if that phrase has the same meaning in this
             2101      Subsection (24) as in Subsection (63);
             2102          (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)


             2103      as in Subsection (63); or
             2104          (iii) a purpose for which a product is designed if that phrase has the same meaning in
             2105      this Subsection (24) as in Subsection (63);
             2106          (25) a product purchased for resale in this state, in the regular course of business, either
             2107      in its original form or as an ingredient or component part of a manufactured or compounded
             2108      product;
             2109          (26) a product upon which a sales or use tax was paid to some other state, or one of its
             2110      subdivisions, except that the state shall be paid any difference between the tax paid and the tax
             2111      imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
             2112      the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
             2113      Act;
             2114          (27) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a
             2115      person for use in compounding a service taxable under the subsections;
             2116          (28) purchases made in accordance with the special supplemental nutrition program for
             2117      women, infants, and children established in 42 U.S.C. Sec. 1786;
             2118          (29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
             2119      refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
             2120      of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification
             2121      Manual of the federal Executive Office of the President, Office of Management and Budget;
             2122          (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
             2123      Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
             2124          (a) not registered in this state; and
             2125          (b) (i) not used in this state; or
             2126          (ii) used in this state:
             2127          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
             2128      time period that does not exceed the longer of:
             2129          (I) 30 days in any calendar year; or
             2130          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
             2131      the borders of this state; or
             2132          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
             2133      period necessary to transport the boat, boat trailer, or outboard motor to the borders of this


             2134      state;
             2135          (31) sales of aircraft manufactured in Utah;
             2136          (32) amounts paid for the purchase of telecommunications service for purposes of
             2137      providing telecommunications service;
             2138          (33) sales, leases, or uses of the following:
             2139          (a) a vehicle by an authorized carrier; or
             2140          (b) tangible personal property that is installed on a vehicle:
             2141          (i) sold or leased to or used by an authorized carrier; and
             2142          (ii) before the vehicle is placed in service for the first time;
             2143          (34) (a) 45% of the sales price of any new manufactured home; and
             2144          (b) 100% of the sales price of any used manufactured home;
             2145          (35) sales relating to schools and fundraising sales;
             2146          (36) sales or rentals of durable medical equipment if:
             2147          (a) a person presents a prescription for the durable medical equipment; and
             2148          (b) the durable medical equipment is used for home use only;
             2149          (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
             2150      Section 72-11-102 ; and
             2151          (b) the commission shall by rule determine the method for calculating sales exempt
             2152      under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
             2153          (38) sales to a ski resort of:
             2154          (a) snowmaking equipment;
             2155          (b) ski slope grooming equipment;
             2156          (c) passenger ropeways as defined in Section 72-11-102 ; or
             2157          (d) parts used in the repairs or renovations of equipment or passenger ropeways
             2158      described in Subsections (38)(a) through (c);
             2159          (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
             2160          (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
             2161      amusement, entertainment, or recreation an unassisted amusement device as defined in Section
             2162      59-12-102 ;
             2163          (b) if a seller that sells or rents at the same business location the right to use or operate
             2164      for amusement, entertainment, or recreation one or more unassisted amusement devices and


             2165      one or more assisted amusement devices, the exemption described in Subsection (40)(a)
             2166      applies if the seller separately accounts for the sales or rentals of the right to use or operate for
             2167      amusement, entertainment, or recreation for the assisted amusement devices; and
             2168          (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
             2169      Utah Administrative Rulemaking Act, the commission may make rules:
             2170          (i) governing the circumstances under which sales are at the same business location;
             2171      and
             2172          (ii) establishing the procedures and requirements for a seller to separately account for
             2173      the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
             2174      assisted amusement devices;
             2175          (41) (a) sales of photocopies by:
             2176          (i) a governmental entity; or
             2177          (ii) an entity within the state system of public education, including:
             2178          (A) a school; or
             2179          (B) the State Board of Education; or
             2180          (b) sales of publications by a governmental entity;
             2181          (42) amounts paid for admission to an athletic event at an institution of higher
             2182      education that is subject to the provisions of Title IX of the Education Amendments of 1972,
             2183      20 U.S.C. Sec. 1681 et seq.;
             2184          (43) (a) sales made to or by:
             2185          (i) an area agency on aging; or
             2186          (ii) a senior citizen center owned by a county, city, or town; or
             2187          (b) sales made by a senior citizen center that contracts with an area agency on aging;
             2188          (44) sales or leases of semiconductor fabricating, processing, research, or development
             2189      materials regardless of whether the semiconductor fabricating, processing, research, or
             2190      development materials:
             2191          (a) actually come into contact with a semiconductor; or
             2192          (b) ultimately become incorporated into real property;
             2193          (45) an amount paid by or charged to a purchaser for accommodations and services
             2194      described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under Section
             2195      59-12-104.2 ;


             2196          (46) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
             2197      sports event registration certificate in accordance with Section 41-3-306 for the event period
             2198      specified on the temporary sports event registration certificate;
             2199          (47) (a) sales or uses of electricity, if the sales or uses are[: (a)] made under a tariff
             2200      adopted by the Public Service Commission of Utah only for purchase of electricity produced
             2201      from a new [wind, geothermal, biomass, or solar power] alternative energy source, as
             2202      designated in the tariff by the Public Service Commission of Utah; and
             2203          [(b) for an amount of electricity that is:]
             2204          [(i) unrelated to the amount of electricity used by the person purchasing the electricity
             2205      under the tariff described in Subsection (47)(a); and]
             2206          [(ii) equivalent to the number of kilowatthours specified in the tariff described in
             2207      Subsection (47)(a) that may be purchased under the tariff described in Subsection (47)(a);]
             2208          (b) the exemption under Subsection (47)(a) applies to the portion of the tariff rate a
             2209      customer pays under the tariff described in Subsection (47)(a) that exceeds the tariff rate under
             2210      the tariff described in Subsection (47)(a) that the customer would have paid absent the tariff;
             2211          (48) sales or rentals of mobility enhancing equipment if a person presents a
             2212      prescription for the mobility enhancing equipment;
             2213          (49) sales of water in a:
             2214          (a) pipe;
             2215          (b) conduit;
             2216          (c) ditch; or
             2217          (d) reservoir;
             2218          (50) sales of currency or coinage that constitute legal tender of the United States or of a
             2219      foreign nation;
             2220          (51) (a) sales of an item described in Subsection (51)(b) if the item:
             2221          (i) does not constitute legal tender of any nation; and
             2222          (ii) has a gold, silver, or platinum content of 80% or more; and
             2223          (b) Subsection (51)(a) applies to a gold, silver, or platinum:
             2224          (i) ingot;
             2225          (ii) bar;
             2226          (iii) medallion; or


             2227          (iv) decorative coin;
             2228          (52) amounts paid on a sale-leaseback transaction;
             2229          (53) sales of a prosthetic device:
             2230          (a) for use on or in a human; and
             2231          (b) (i) for which a prescription is required; or
             2232          (ii) if the prosthetic device is purchased by a hospital or other medical facility;
             2233          (54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
             2234      machinery or equipment by an establishment described in Subsection (54)(c) if the machinery
             2235      or equipment is primarily used in the production or postproduction of the following media for
             2236      commercial distribution:
             2237          (i) a motion picture;
             2238          (ii) a television program;
             2239          (iii) a movie made for television;
             2240          (iv) a music video;
             2241          (v) a commercial;
             2242          (vi) a documentary; or
             2243          (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
             2244      commission by administrative rule made in accordance with Subsection (54)(d); or
             2245          (b) notwithstanding Subsection (54)(a), purchases, leases, or rentals of machinery or
             2246      equipment by an establishment described in Subsection (54)(c) that is used for the production
             2247      or postproduction of the following are subject to the taxes imposed by this chapter:
             2248          (i) a live musical performance;
             2249          (ii) a live news program; or
             2250          (iii) a live sporting event;
             2251          (c) the following establishments listed in the 1997 North American Industry
             2252      Classification System of the federal Executive Office of the President, Office of Management
             2253      and Budget, apply to Subsections (54)(a) and (b):
             2254          (i) NAICS Code 512110; or
             2255          (ii) NAICS Code 51219; and
             2256          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2257      commission may by rule:


             2258          (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
             2259      or
             2260          (ii) define:
             2261          (A) "commercial distribution";
             2262          (B) "live musical performance";
             2263          (C) "live news program"; or
             2264          (D) "live sporting event";
             2265          (55) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
             2266      on or before June 30, [2019] 2027, of [machinery or equipment] tangible personal property
             2267      that:
             2268          (i) is leased or purchased for or by a facility that:
             2269          (A) is [a renewable] an alternative energy electricity production facility;
             2270          (B) is located in the state; and
             2271          (C) (I) becomes operational on or after July 1, 2004; or
             2272          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             2273      2004, as a result of the use of the [machinery or equipment] tangible personal property;
             2274          (ii) has an economic life of five or more years; and
             2275          (iii) is used to make the facility or the increase in capacity of the facility described in
             2276      Subsection (55)(a)(i) operational up to the point of interconnection with an existing
             2277      transmission grid including:
             2278          (A) a wind turbine;
             2279          (B) generating equipment;
             2280          (C) a control and monitoring system;
             2281          (D) a power line;
             2282          (E) substation equipment;
             2283          (F) lighting;
             2284          (G) fencing;
             2285          (H) pipes; or
             2286          (I) other equipment used for locating a power line or pole; and
             2287          (b) this Subsection (55) does not apply to:
             2288          (i) [machinery or equipment] tangible personal property used in construction of:


             2289          (A) a new [renewable] alternative energy electricity production facility; or
             2290          (B) the increase in the capacity of [a renewable] an alternative energy electricity
             2291      production facility;
             2292          (ii) contracted services required for construction and routine maintenance activities;
             2293      and
             2294          (iii) unless the [machinery or equipment] tangible personal property is used or acquired
             2295      for an increase in capacity of the facility described in Subsection (55)(a)(i)(C)(II), [machinery
             2296      or equipment] tangible personal property used or acquired after:
             2297          (A) the [renewable] alternative energy electricity production facility described in
             2298      Subsection (55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
             2299          (B) the increased capacity described in Subsection (55)(a)(i) is operational as described
             2300      in Subsection (55)(a)(iii);
             2301          (56) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
             2302      on or before June 30, [2019] 2027, of [machinery or equipment] tangible personal property
             2303      that:
             2304          (i) is leased or purchased for or by a facility that:
             2305          (A) is a waste energy production facility;
             2306          (B) is located in the state; and
             2307          (C) (I) becomes operational on or after July 1, 2004; or
             2308          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             2309      2004, as a result of the use of the [machinery or equipment] tangible personal property;
             2310          (ii) has an economic life of five or more years; and
             2311          (iii) is used to make the facility or the increase in capacity of the facility described in
             2312      Subsection (56)(a)(i) operational up to the point of interconnection with an existing
             2313      transmission grid including:
             2314          (A) generating equipment;
             2315          (B) a control and monitoring system;
             2316          (C) a power line;
             2317          (D) substation equipment;
             2318          (E) lighting;
             2319          (F) fencing;


             2320          (G) pipes; or
             2321          (H) other equipment used for locating a power line or pole; and
             2322          (b) this Subsection (56) does not apply to:
             2323          (i) [machinery or equipment] tangible personal property used in construction of:
             2324          (A) a new waste energy facility; or
             2325          (B) the increase in the capacity of a waste energy facility;
             2326          (ii) contracted services required for construction and routine maintenance activities;
             2327      and
             2328          (iii) unless the [machinery or equipment] tangible personal property is used or acquired
             2329      for an increase in capacity described in Subsection (56)(a)(i)(C)(II), [machinery or equipment]
             2330      tangible personal property used or acquired after:
             2331          (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
             2332      described in Subsection (56)(a)(iii); or
             2333          (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
             2334      in Subsection (56)(a)(iii);
             2335          (57) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
             2336      or before June 30, [2019] 2027, of [machinery or equipment] tangible personal property that:
             2337          (i) is leased or purchased for or by a facility that:
             2338          (A) is located in the state;
             2339          (B) produces fuel from [biomass energy including:] alternative energy, including:
             2340          (I) methanol; or
             2341          (II) ethanol; and
             2342          (C) (I) becomes operational on or after July 1, 2004; or
             2343          (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as
             2344      a result of the installation of the [machinery or equipment] tangible personal property;
             2345          (ii) has an economic life of five or more years; and
             2346          (iii) is installed on the facility described in Subsection (57)(a)(i);
             2347          (b) this Subsection (57) does not apply to:
             2348          (i) [machinery or equipment] tangible personal property used in construction of:
             2349          (A) a new facility described in Subsection (57)(a)(i); or
             2350          (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or


             2351          (ii) contracted services required for construction and routine maintenance activities;
             2352      and
             2353          (iii) unless the [machinery or equipment] tangible personal property is used or acquired
             2354      for an increase in capacity described in Subsection (57)(a)(i)(C)(II), [machinery or equipment]
             2355      tangible personal property used or acquired after:
             2356          (A) the facility described in Subsection (57)(a)(i) is operational; or
             2357          (B) the increased capacity described in Subsection (57)(a)(i) is operational;
             2358          (58) (a) subject to Subsection (58)(b) or (c), sales of tangible personal property or a
             2359      product transferred electronically to a person within this state if that tangible personal property
             2360      or product transferred electronically is subsequently shipped outside the state and incorporated
             2361      pursuant to contract into and becomes a part of real property located outside of this state;
             2362          (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
             2363      state or political entity to which the tangible personal property is shipped imposes a sales, use,
             2364      gross receipts, or other similar transaction excise tax on the transaction against which the other
             2365      state or political entity allows a credit for sales and use taxes imposed by this chapter; and
             2366          (c) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             2367      a person may claim the exemption allowed by this Subsection (58) for a sale by filing for a
             2368      refund:
             2369          (i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
             2370          (ii) as if this Subsection (58) as in effect on July 1, 2008, were in effect on the day on
             2371      which the sale is made;
             2372          (iii) if the person did not claim the exemption allowed by this Subsection (58) for the
             2373      sale prior to filing for the refund;
             2374          (iv) for sales and use taxes paid under this chapter on the sale;
             2375          (v) in accordance with Section 59-1-1410 ; and
             2376          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             2377      the person files for the refund on or before June 30, 2011;
             2378          (59) purchases:
             2379          (a) of one or more of the following items in printed or electronic format:
             2380          (i) a list containing information that includes one or more:
             2381          (A) names; or


             2382          (B) addresses; or
             2383          (ii) a database containing information that includes one or more:
             2384          (A) names; or
             2385          (B) addresses; and
             2386          (b) used to send direct mail;
             2387          (60) redemptions or repurchases of a product by a person if that product was:
             2388          (a) delivered to a pawnbroker as part of a pawn transaction; and
             2389          (b) redeemed or repurchased within the time period established in a written agreement
             2390      between the person and the pawnbroker for redeeming or repurchasing the product;
             2391          (61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
             2392          (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
             2393      and
             2394          (ii) has a useful economic life of one or more years; and
             2395          (b) the following apply to Subsection (61)(a):
             2396          (i) telecommunications enabling or facilitating equipment, machinery, or software;
             2397          (ii) telecommunications equipment, machinery, or software required for 911 service;
             2398          (iii) telecommunications maintenance or repair equipment, machinery, or software;
             2399          (iv) telecommunications switching or routing equipment, machinery, or software; or
             2400          (v) telecommunications transmission equipment, machinery, or software;
             2401          (62) (a) beginning on July 1, 2006, and ending on June 30, [2016] 2027, purchases of
             2402      tangible personal property or a product transferred electronically that are used in the research
             2403      and development of [coal-to-liquids, oil shale, or tar sands] alternative energy technology; and
             2404          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2405      commission may, for purposes of Subsection (62)(a), make rules defining what constitutes
             2406      purchases of tangible personal property or a product transferred electronically that are used in
             2407      the research and development of [coal-to-liquids, oil shale, and tar sands] alternative energy
             2408      technology;
             2409          (63) (a) purchases of tangible personal property or a product transferred electronically
             2410      if:
             2411          (i) the tangible personal property or product transferred electronically is:
             2412          (A) purchased outside of this state;


             2413          (B) brought into this state at any time after the purchase described in Subsection
             2414      (63)(a)(i)(A); and
             2415          (C) used in conducting business in this state; and
             2416          (ii) for:
             2417          (A) tangible personal property or a product transferred electronically other than the
             2418      tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property
             2419      for a purpose for which the property is designed occurs outside of this state; or
             2420          (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             2421      outside of this state;
             2422          (b) the exemption provided for in Subsection (63)(a) does not apply to:
             2423          (i) a lease or rental of tangible personal property or a product transferred electronically;
             2424      or
             2425          (ii) a sale of a vehicle exempt under Subsection (33); and
             2426          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             2427      purposes of Subsection (63)(a), the commission may by rule define what constitutes the
             2428      following:
             2429          (i) conducting business in this state if that phrase has the same meaning in this
             2430      Subsection (63) as in Subsection (24);
             2431          (ii) the first use of tangible personal property or a product transferred electronically if
             2432      that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
             2433          (iii) a purpose for which tangible personal property or a product transferred
             2434      electronically is designed if that phrase has the same meaning in this Subsection (63) as in
             2435      Subsection (24);
             2436          (64) sales of disposable home medical equipment or supplies if:
             2437          (a) a person presents a prescription for the disposable home medical equipment or
             2438      supplies;
             2439          (b) the disposable home medical equipment or supplies are used exclusively by the
             2440      person to whom the prescription described in Subsection (64)(a) is issued; and
             2441          (c) the disposable home medical equipment and supplies are listed as eligible for
             2442      payment under:
             2443          (i) Title XVIII, federal Social Security Act; or


             2444          (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
             2445          (65) sales:
             2446          (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
             2447      District Act; or
             2448          (b) of tangible personal property to a subcontractor of a public transit district, if the
             2449      tangible personal property is:
             2450          (i) clearly identified; and
             2451          (ii) installed or converted to real property owned by the public transit district;
             2452          (66) sales of construction materials:
             2453          (a) purchased on or after July 1, 2010;
             2454          (b) purchased by, on behalf of, or for the benefit of an international airport:
             2455          (i) located within a county of the first class; and
             2456          (ii) that has a United States customs office on its premises; and
             2457          (c) if the construction materials are:
             2458          (i) clearly identified;
             2459          (ii) segregated; and
             2460          (iii) installed or converted to real property:
             2461          (A) owned or operated by the international airport described in Subsection (66)(b); and
             2462          (B) located at the international airport described in Subsection (66)(b);
             2463          (67) sales of construction materials:
             2464          (a) purchased on or after July 1, 2008;
             2465          (b) purchased by, on behalf of, or for the benefit of a new airport:
             2466          (i) located within a county of the second class; and
             2467          (ii) that is owned or operated by a city in which an airline as defined in Section
             2468      59-2-102 is headquartered; and
             2469          (c) if the construction materials are:
             2470          (i) clearly identified;
             2471          (ii) segregated; and
             2472          (iii) installed or converted to real property:
             2473          (A) owned or operated by the new airport described in Subsection (67)(b);
             2474          (B) located at the new airport described in Subsection (67)(b); and


             2475          (C) as part of the construction of the new airport described in Subsection (67)(b);
             2476          (68) sales of fuel to a common carrier that is a railroad for use in a locomotive engine;
             2477          (69) purchases and sales described in Section 63H-4-111 ;
             2478          (70) (a) sales of tangible personal property to an aircraft maintenance, repair, and
             2479      overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
             2480      a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
             2481      lists a state or country other than this state as the location of registry of the fixed wing turbine
             2482      powered aircraft; or
             2483          (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
             2484      provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
             2485      a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
             2486      lists a state or country other than this state as the location of registry of the fixed wing turbine
             2487      powered aircraft;
             2488          (71) subject to Section 59-12-104.4 , sales of a textbook for a higher education course:
             2489          (a) to a person admitted to an institution of higher education; and
             2490          (b) by a seller, other than a bookstore owned by an institution of higher education, if
             2491      51% or more of that seller's sales revenue for the previous calendar quarter are sales of a
             2492      textbook for a higher education course; and
             2493          (72) a license fee or tax a municipality imposes in accordance with Subsection
             2494      10-1-203 (5) on a purchaser from a business for which the municipality provides an enhanced
             2495      level of municipal services.
             2496          Section 8. Section 63M-4-401 is amended to read:
             2497           63M-4-401. Creation of Office of Energy Development -- Director -- Purpose --
             2498      Rulemaking regarding confidential information.
             2499          (1) As used in this section, "office" means the Office of Energy Development created
             2500      in Subsection (2).
             2501          (2) There is created an Office of Energy Development.
             2502          (3) (a) The governor's energy advisor shall appoint a director of the office.
             2503          (b) The director shall report to the governor's energy advisor and may appoint staff as
             2504      funding within existing budgets allows.
             2505          (c) The office may consolidate energy staff and functions existing in the State Energy


             2506      Program.
             2507          (4) The purpose of the office is to implement:
             2508          (a) the state energy policy under Section 63M-4-301 ; and
             2509          (b) the governor's energy goals and objectives.
             2510          (5) By following the procedures and requirements of Title 63J, Chapter 5, Federal
             2511      Funds Procedures Act, the office may:
             2512          (a) seek federal grants or loans;
             2513          (b) seek to participate in federal programs; and
             2514          (c) in accordance with applicable federal program guidelines, administer federally
             2515      funded state energy programs.
             2516          (6) The office shall perform the duties required by Sections 59-7-614.7 and 59-10-1029
             2517      and Part 5, Alternative Energy Development Tax Credit Act.
             2518          [(6)] (7) (a) For purposes of administering this section, the office may make rules, by
             2519      following the procedures and requirements of Title 63G, Chapter 3, Utah Administrative
             2520      Rulemaking Act, to maintain as confidential, and not as a public record, information that the
             2521      office receives from any source.
             2522          (b) The office shall maintain information the office receives from any source at the
             2523      level of confidentiality assigned by the source.
             2524          Section 9. Section 63M-4-501 is enacted to read:
             2525     
Part 5. Alternative Energy Development Tax Credit Act

             2526          63M-4-501. Title.
             2527          This part is known as the "Alternative Energy Development Tax Credit Act."
             2528          Section 10. Section 63M-4-502 is enacted to read:
             2529          63M-4-502. Definitions.
             2530          As used in this part:
             2531          (1) "Alternative energy" is as defined in Section 59-12-102 .
             2532          (2) (a) "Alternative energy entity" means a person that:
             2533          (i) conducts business within the state; and
             2534          (ii) enters into an agreement with the office that qualifies the person to receive a tax
             2535      credit.
             2536          (b) "Alternative energy entity" includes a pass-through entity taxpayer, as defined in


             2537      Section 59-10-1402 , of a person described in Subsection (2)(a).
             2538          (3) "Alternative energy project" means a project produced by an alternative energy
             2539      entity if that project involves:
             2540          (a) a new or expanding operation in the state; and
             2541          (b) (i) utility-scale alternative energy generation; or
             2542          (ii) the extraction of alternative fuels.
             2543          (4) "New incremental job within the state" means, with respect to an alternative energy
             2544      entity, an employment position that:
             2545          (a) did not exist within the state before:
             2546          (i) the alternative energy entity entered into an agreement with the office in accordance
             2547      with Section 63M-4-503 ; and
             2548          (ii) the alternative energy project began;
             2549          (b) is not shifted from one location in the state to another location in the state; and
             2550          (c) is established to the satisfaction of the office, including by amounts paid or
             2551      withheld by the alternative energy entity under Title 59, Chapter 10, Individual Income Tax
             2552      Act.
             2553          (5) "New state revenues" means an increased amount of tax revenues generated as a
             2554      result of an alternative energy project by an alternative energy entity or a new incremental job
             2555      within the state under the following:
             2556          (a) Title 59, Chapter 7, Corporate Franchise and Income Taxes;
             2557          (b) Title 59, Chapter 10, Individual Income Tax Act; and
             2558          (c) Title 59, Chapter 12, Sales and Use Tax Act.
             2559          (6) "Office" is as defined in Section 63M-4-401 .
             2560          (7) "Tax credit" means a tax credit under Section 59-7-614.7 or 59-10-1029 .
             2561          (8) "Tax credit applicant" means an alternative energy entity that applies to the office
             2562      to receive a tax credit certificate under this part.
             2563          (9) "Tax credit certificate" means a certificate issued by the office that:
             2564          (a) lists the name of the tax credit certificate recipient;
             2565          (b) lists the tax credit certificate recipient's taxpayer identification number;
             2566          (c) lists the amount of the tax credit certificate recipient's tax credits authorized under
             2567      this part for a taxable year; and


             2568          (d) includes other information as determined by the office.
             2569          (10) "Tax credit certificate recipient" means an alternative energy entity that receives a
             2570      tax credit certificate for a tax credit in accordance with this part.
             2571          Section 11. Section 63M-4-503 is enacted to read:
             2572          63M-4-503. Tax credits.
             2573          (1) (a) By following the procedures and requirements of Title 63G, Chapter 4,
             2574      Administrative Procedures Act, the office shall set standards an alternative energy entity shall
             2575      meet to qualify for a tax credit.
             2576          (b) Before the office enters into an agreement described in Subsection (2) with an
             2577      alternative energy entity, the office, in consultation with other state agencies as necessary, shall
             2578      certify:
             2579          (i) that the alternative energy entity plans to produce in the state at least:
             2580          (A) two megawatts of electricity; or
             2581          (B) 1,000 barrels per day if the alternative energy project is a crude oil equivalent
             2582      production;
             2583          (ii) that the alternative energy project will generate new state revenues;
             2584          (iii) the economic life of the alternative energy project produced by the alternative
             2585      energy entity;
             2586          (iv) that the alternative energy entity meets the requirements of Section 63M-4-504 ;
             2587      and
             2588          (v) that the alternative energy entity has received a Certificate of Good Standing from
             2589      the Division of Corporations and Commercial Code.
             2590          (2) If an alternative energy entity meets the requirements of this part to receive a tax
             2591      credit, the office shall enter into an agreement with the alternative energy entity to authorize the
             2592      tax credit in accordance with Subsection (3).
             2593          (3) (a) Subject to Subsection (3)(c), if the office expects that the time from the
             2594      commencement of construction until the end of the economic life of the alternative energy
             2595      project is less than 50 years:
             2596          (i) the office shall grant a tax credit for the lesser of:
             2597          (A) the economic life of the alternative energy project; or
             2598          (B) 20 years; and


             2599          (ii) the tax credit is equal to 75% of new state revenues generated by the alternative
             2600      energy project.
             2601          (b) Subject to Subsection (3)(c), if the office expects that the time from the
             2602      commencement of construction until the end of the economic life of the alternative energy
             2603      project is 50 years or more:
             2604          (i) the office shall grant a tax credit for the lesser of:
             2605          (A) the economic life of the alternative energy project; or
             2606          (B) 30 years; and
             2607          (ii) the tax credit is equal to 75% of new state revenues generated by the alternative
             2608      energy project.
             2609          (c) For a taxable year, a tax credit under this section may not exceed the new state
             2610      revenues generated by an alternative energy entity during that taxable year.
             2611          (4) An alternative energy entity that seeks to receive a tax credit or has entered into an
             2612      agreement described in Subsection (2) with the office shall:
             2613          (a) annually file a report with the office showing the new state revenues generated by
             2614      the alternative energy project during the taxable year for which the alternative energy entity
             2615      seeks to receive a tax credit under Section 59-7-614.6 or 59-10-1029 ;
             2616          (b) subject to Subsection (5), annually file a report with the office prepared by an
             2617      independent certified public accountant verifying the new state revenue described in
             2618      Subsection (4)(a);
             2619          (c) subject to Subsection (5), file a report with the office at least every four years
             2620      prepared by an independent auditor auditing the new state revenue described in Subsection
             2621      (4)(a);
             2622          (d) provide the office with information required by the office to certify the economic
             2623      life of the alternative energy project produced by the alternative energy entity, which may
             2624      include a power purchase agreement, a lease, or a permit; and
             2625          (e) retain records supporting a claim for a tax credit for at least four years after the
             2626      alternative energy entity claims a tax credit under Section 59-7-614.7 or 59-10-1029 .
             2627          (5) An alternative energy entity for which a report is prepared under Subsection (4)(b)
             2628      or (c) shall pay the costs of preparing the report.
             2629          (6) The office shall annually certify the new state revenues generated by an alternative


             2630      energy entity that has entered into an agreement described in Subsection (2) with the office.
             2631          Section 12. Section 63M-4-504 is enacted to read:
             2632          63M-4-504. Qualifications for tax credit -- Procedure.
             2633          (1) The office shall certify an alternative energy entity's eligibility for a tax credit as
             2634      provided in this section.
             2635          (2) A tax credit applicant shall provide the office with:
             2636          (a) an application for a tax credit certificate;
             2637          (b) documentation that the tax credit applicant meets the standards and requirements
             2638      described in Section 63M-4-503 to the satisfaction of the office for the taxable year for which
             2639      the tax credit applicant seeks to claim a tax credit; and
             2640          (c) documentation that expressly directs and authorizes the State Tax Commission to
             2641      disclose to the office the tax credit applicant's returns and other information concerning the tax
             2642      credit applicant that would otherwise be subject to confidentiality under Section 59-1-403 or
             2643      Section 6103, Internal Revenue Code.
             2644          (3) (a) The office shall submit the documentation described in Subsection (2)(c) to the
             2645      State Tax Commission.
             2646          (b) Upon receipt of the documentation described in Subsection (2)(c), the State Tax
             2647      Commission shall provide the office with the documentation described in Subsection (2)(c)
             2648      requested by the office that the tax credit applicant directed and authorized the State Tax
             2649      Commission to provide to the office.
             2650          (4) If, after the office reviews the documentation described in Subsections (2) and (3),
             2651      the office determines that the documentation supporting the tax credit applicant's claim for a
             2652      tax credit is not substantially accurate, the office shall:
             2653          (a) deny the tax credit; or
             2654          (b) inform the tax credit applicant that the documentation supporting the tax credit
             2655      applicant's claim for a tax credit was inadequate and ask the tax credit applicant to submit new
             2656      documentation.
             2657          (5) If, after the office reviews the documentation described in Subsections (2) and (3),
             2658      the office determines that the documentation supporting the tax credit applicant's claim for a
             2659      tax credit is substantially accurate, the office shall, on the basis of that documentation:
             2660          (a) enter into the agreement described in Section 63M-4-503 ;


             2661          (b) issue a tax credit certificate to the tax credit applicant; and
             2662          (c) provide a duplicate copy of the tax credit certificate described in Subsection (5)(b)
             2663      to the State Tax Commission.
             2664          (6) An alternative energy entity may not claim a tax credit under this part unless the
             2665      alternative energy entity is a tax credit certificate recipient.
             2666          (7) A tax credit certificate recipient that claims a tax credit shall retain the tax credit
             2667      certificate in accordance with Subsection 63M-4-503 (5)(b).
             2668          Section 13. Section 63M-4-505 is enacted to read:
             2669          63M-4-505. Report to the Legislature.
             2670          The office shall report annually to the Public Utilities and Technology Interim
             2671      Committee and the Revenue and Taxation Interim Committee describing:
             2672          (1) its success in attracting alternative energy projects to the state and the resulting
             2673      increase in new state revenues under this part;
             2674          (2) the amount of tax credits the office has granted or will grant and the period of time
             2675      during which the tax credits have been or will be granted; and
             2676          (3) the economic impact on the state by comparing new state revenues to tax credits
             2677      that have been or will be granted under this part.
             2678          Section 14. Repealer.
             2679          This bill repeals:
             2680          Section 63M-1-2801, Title.
             2681          Section 63M-1-2802, Findings.
             2682          Section 63M-1-2803, Definitions.
             2683          Section 63M-1-2804, Creation of alternative energy development zones -- Tax
             2684      credits.
             2685          Section 63M-1-2805, Qualifications for tax credit -- Procedure.
             2686          Section 63M-1-2806, Report to the Legislature.
             2687          Section 15. Effective date -- Retrospective operation.
             2688          (1) Except as provided in Subsection (2) or (3), this bill takes effect on May 8, 2012.
             2689          (2) The amendments to or enactments of the following sections have retrospective
             2690      operation for a taxable year beginning on or after January 1, 2012:
             2691          (a) Section 59-7-614.2 ;


             2692          (b) Section 59-7-614.7 ;
             2693          (c) Section 59-10-1029 ; and
             2694          (d) Section 59-10-1107 .
             2695          (3) The amendments to the following sections take effect on July 1, 2012:
             2696          (a) Section 10-1-304 ;
             2697          (b) Section 59-12-102 ; and
             2698          (c) Section 59-12-104 .


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