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S.B. 70

             1     

SALES AND USE TAXATION OF SHORT-TERM LODGING

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Curtis S. Bramble

             5     
House Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill addresses provisions related to the sales and use taxation of short-term
             10      lodging.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms;
             14          .    addresses the transactions related to short-term lodging that are subject to tax under
             15      Title 59, Chapter 12, Sales and Use Tax Act;
             16          .    addresses sales and use tax exemptions related to short-term lodging;
             17          .    addresses the remittance of sales and use taxes related to short-term lodging; and
             18          .    makes technical and conforming changes.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          This bill takes effect on July 1, 2012.
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          59-12-102, as last amended by Laws of Utah 2011, Chapters 14, 285, and 314
             26          59-12-103, as last amended by Laws of Utah 2011, Chapters 285, 303, 342, and 441
             27          59-12-104, as last amended by Laws of Utah 2011, Chapters 288, 314, 370, and 391


             28          59-12-104.2, as last amended by Laws of Utah 2009, Chapter 203
             29          59-12-104.6, as enacted by Laws of Utah 2011, Chapter 288
             30          59-12-107, as last amended by Laws of Utah 2009, Chapter 212
             31          59-12-107.1, as last amended by Laws of Utah 2008, Chapters 382 and 384
             32          59-12-301, as last amended by Laws of Utah 2008, Chapter 382
             33          59-12-352, as last amended by Laws of Utah 2009, Chapter 92
             34          59-12-353, as last amended by Laws of Utah 2004, Chapters 156 and 255
             35          59-12-603, as last amended by Laws of Utah 2011, Chapter 309
             36     
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 59-12-102 is amended to read:
             39           59-12-102. Definitions.
             40          As used in this chapter:
             41          (1) "800 service" means a telecommunications service that:
             42          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             43          (b) is typically marketed:
             44          (i) under the name 800 toll-free calling;
             45          (ii) under the name 855 toll-free calling;
             46          (iii) under the name 866 toll-free calling;
             47          (iv) under the name 877 toll-free calling;
             48          (v) under the name 888 toll-free calling; or
             49          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             50      Federal Communications Commission.
             51          (2) (a) "900 service" means an inbound toll telecommunications service that:
             52          (i) a subscriber purchases;
             53          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             54      the subscriber's:
             55          (A) prerecorded announcement; or
             56          (B) live service; and
             57          (iii) is typically marketed:
             58          (A) under the name 900 service; or


             59          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             60      Communications Commission.
             61          (b) "900 service" does not include a charge for:
             62          (i) a collection service a seller of a telecommunications service provides to a
             63      subscriber; or
             64          (ii) the following a subscriber sells to the subscriber's customer:
             65          (A) a product; or
             66          (B) a service.
             67          (3) (a) "Admission or user fees" includes season passes.
             68          (b) "Admission or user fees" does not include annual membership dues to private
             69      organizations.
             70          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             71      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             72      Agreement after November 12, 2002.
             73          (5) "Agreement combined tax rate" means the sum of the tax rates:
             74          (a) listed under Subsection (6); and
             75          (b) that are imposed within a local taxing jurisdiction.
             76          (6) "Agreement sales and use tax" means a tax imposed under:
             77          (a) Subsection 59-12-103 (2)(a)(i)(A);
             78          (b) Subsection 59-12-103 (2)(b)(i);
             79          (c) Subsection 59-12-103 (2)(c)(i);
             80          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             81          (e) Section 59-12-204 ;
             82          (f) Section 59-12-401 ;
             83          (g) Section 59-12-402 ;
             84          (h) Section 59-12-703 ;
             85          (i) Section 59-12-802 ;
             86          (j) Section 59-12-804 ;
             87          (k) Section 59-12-1102 ;
             88          (l) Section 59-12-1302 ;
             89          (m) Section 59-12-1402 ;


             90          (n) Section 59-12-1802 ;
             91          (o) Section 59-12-2003 ;
             92          (p) Section 59-12-2103 ;
             93          (q) Section 59-12-2213 ;
             94          (r) Section 59-12-2214 ;
             95          (s) Section 59-12-2215 ;
             96          (t) Section 59-12-2216 ;
             97          (u) Section 59-12-2217 ; or
             98          (v) Section 59-12-2218 .
             99          (7) "Aircraft" is as defined in Section 72-10-102 .
             100          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             101          (a) except for an airline as defined in Section 59-2-102 or an affiliated group as defined
             102      in Subsection 59-12-107 (1)(f) of an airline; and
             103          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             104      whether the business entity performs the following in this state:
             105          (i) check, diagnose, overhaul, and repair:
             106          (A) an onboard system of a fixed wing turbine powered aircraft; and
             107          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             108          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             109      engine;
             110          (iii) perform at least the following maintenance on a fixed wing turbine powered
             111      aircraft:
             112          (A) an inspection;
             113          (B) a repair, including a structural repair or modification;
             114          (C) changing landing gear; and
             115          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             116          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             117      completely apply new paint to the fixed wing turbine powered aircraft; and
             118          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             119      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             120      authority that certifies the fixed wing turbine powered aircraft.


             121          (9) "Alcoholic beverage" means a beverage that:
             122          (a) is suitable for human consumption; and
             123          (b) contains .5% or more alcohol by volume.
             124          (10) (a) "Ancillary service" means a service associated with, or incidental to, the
             125      provision of telecommunications service.
             126          (b) "Ancillary service" includes:
             127          (i) a conference bridging service;
             128          (ii) a detailed communications billing service;
             129          (iii) directory assistance;
             130          (iv) a vertical service; or
             131          (v) a voice mail service.
             132          (11) "Area agency on aging" is as defined in Section 62A-3-101 .
             133          (12) "Assisted amusement device" means an amusement device, skill device, or ride
             134      device that is started and stopped by an individual:
             135          (a) who is not the purchaser or renter of the right to use or operate the amusement
             136      device, skill device, or ride device; and
             137          (b) at the direction of the seller of the right to use the amusement device, skill device,
             138      or ride device.
             139          (13) "Assisted cleaning or washing of tangible personal property" means cleaning or
             140      washing of tangible personal property if the cleaning or washing labor is primarily performed
             141      by an individual:
             142          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             143      property; and
             144          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             145      property.
             146          (14) "Authorized carrier" means:
             147          (a) in the case of vehicles operated over public highways, the holder of credentials
             148      indicating that the vehicle is or will be operated pursuant to both the International Registration
             149      Plan and the International Fuel Tax Agreement;
             150          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             151      certificate or air carrier's operating certificate; or


             152          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             153      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             154          (15) (a) Except as provided in Subsection (15)(b), "biomass energy" means any of the
             155      following that is used as the primary source of energy to produce fuel or electricity:
             156          (i) material from a plant or tree; or
             157          (ii) other organic matter that is available on a renewable basis, including:
             158          (A) slash and brush from forests and woodlands;
             159          (B) animal waste;
             160          (C) methane produced:
             161          (I) at landfills; or
             162          (II) as a byproduct of the treatment of wastewater residuals;
             163          (D) aquatic plants; and
             164          (E) agricultural products.
             165          (b) "Biomass energy" does not include:
             166          (i) black liquor;
             167          (ii) treated woods; or
             168          (iii) biomass from municipal solid waste other than methane produced:
             169          (A) at landfills; or
             170          (B) as a byproduct of the treatment of wastewater residuals.
             171          (16) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             172      property, products, or services if the tangible personal property, products, or services are:
             173          (i) distinct and identifiable; and
             174          (ii) sold for one nonitemized price.
             175          (b) "Bundled transaction" does not include:
             176          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             177      the basis of the selection by the purchaser of the items of tangible personal property included in
             178      the transaction;
             179          (ii) the sale of real property;
             180          (iii) the sale of services to real property;
             181          (iv) the retail sale of tangible personal property and a service if:
             182          (A) the tangible personal property:


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


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


             245      property or a product subject to taxation under this chapter is de minimis if:
             246          (A) the seller's purchase price of the tangible personal property or product is 10% or
             247      less of the seller's total purchase price of the bundled transaction; or
             248          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             249      the seller's total sales price of the bundled transaction.
             250          (ii) For purposes of Subsection (16)(b)(vi), a seller:
             251          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             252      purchase price or sales price of the tangible personal property or product subject to taxation
             253      under this chapter is de minimis; and
             254          (B) may not use a combination of the seller's purchase price and the seller's sales price
             255      to determine if the purchase price or sales price of the tangible personal property or product
             256      subject to taxation under this chapter is de minimis.
             257          (iii) For purposes of Subsection (16)(b)(vi), a seller shall use the full term of a service
             258      contract to determine if the sales price of tangible personal property or a product is de minimis.
             259          (f) For purposes of Subsection (16)(b)(vii)(B), a seller may not use a combination of
             260      the seller's purchase price and the seller's sales price to determine if tangible personal property
             261      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             262      price of that retail sale.
             263          (17) "Certified automated system" means software certified by the governing board of
             264      the agreement that:
             265          (a) calculates the agreement sales and use tax imposed within a local taxing
             266      jurisdiction:
             267          (i) on a transaction; and
             268          (ii) in the states that are members of the agreement;
             269          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             270      member of the agreement; and
             271          (c) maintains a record of the transaction described in Subsection (17)(a)(i).
             272          (18) "Certified service provider" means an agent certified:
             273          (a) by the governing board of the agreement; and
             274          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             275      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's


             276      own purchases.
             277          (19) (a) Subject to Subsection (19)(b), "clothing" means all human wearing apparel
             278      suitable for general use.
             279          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             280      commission shall make rules:
             281          (i) listing the items that constitute "clothing"; and
             282          (ii) that are consistent with the list of items that constitute "clothing" under the
             283      agreement.
             284          (20) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             285          (21) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             286      fuels that does not constitute industrial use under Subsection (48) or residential use under
             287      Subsection (96).
             288          (22) (a) "Common carrier" means a person engaged in or transacting the business of
             289      transporting passengers, freight, merchandise, or other property for hire within this state.
             290          (b) (i) "Common carrier" does not include a person who, at the time the person is
             291      traveling to or from that person's place of employment, transports a passenger to or from the
             292      passenger's place of employment.
             293          (ii) For purposes of Subsection (22)(b)(i), in accordance with Title 63G, Chapter 3,
             294      Utah Administrative Rulemaking Act, the commission may make rules defining what
             295      constitutes a person's place of employment.
             296          (23) "Component part" includes:
             297          (a) poultry, dairy, and other livestock feed, and their components;
             298          (b) baling ties and twine used in the baling of hay and straw;
             299          (c) fuel used for providing temperature control of orchards and commercial
             300      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             301      off-highway type farm machinery; and
             302          (d) feed, seeds, and seedlings.
             303          (24) "Computer" means an electronic device that accepts information:
             304          (a) (i) in digital form; or
             305          (ii) in a form similar to digital form; and
             306          (b) manipulates that information for a result based on a sequence of instructions.


             307          (25) "Computer software" means a set of coded instructions designed to cause:
             308          (a) a computer to perform a task; or
             309          (b) automatic data processing equipment to perform a task.
             310          (26) (a) "Conference bridging service" means an ancillary service that links two or
             311      more participants of an audio conference call or video conference call.
             312          (b) "Conference bridging service" may include providing a telephone number as part of
             313      the ancillary service described in Subsection (26)(a).
             314          (c) "Conference bridging service" does not include a telecommunications service used
             315      to reach the ancillary service described in Subsection (26)(a).
             316          (27) "Construction materials" means any tangible personal property that will be
             317      converted into real property.
             318          (28) "Delivered electronically" means delivered to a purchaser by means other than
             319      tangible storage media.
             320          (29) (a) "Delivery charge" means a charge:
             321          (i) by a seller of:
             322          (A) tangible personal property;
             323          (B) a product transferred electronically; or
             324          (C) services; and
             325          (ii) for preparation and delivery of the tangible personal property, product transferred
             326      electronically, or services described in Subsection (29)(a)(i) to a location designated by the
             327      purchaser.
             328          (b) "Delivery charge" includes a charge for the following:
             329          (i) transportation;
             330          (ii) shipping;
             331          (iii) postage;
             332          (iv) handling;
             333          (v) crating; or
             334          (vi) packing.
             335          (30) "Detailed telecommunications billing service" means an ancillary service of
             336      separately stating information pertaining to individual calls on a customer's billing statement.
             337          (31) "Dietary supplement" means a product, other than tobacco, that:


             338          (a) is intended to supplement the diet;
             339          (b) contains one or more of the following dietary ingredients:
             340          (i) a vitamin;
             341          (ii) a mineral;
             342          (iii) an herb or other botanical;
             343          (iv) an amino acid;
             344          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             345      dietary intake; or
             346          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             347      described in Subsections (31)(b)(i) through (v);
             348          (c) (i) except as provided in Subsection (31)(c)(ii), is intended for ingestion in:
             349          (A) tablet form;
             350          (B) capsule form;
             351          (C) powder form;
             352          (D) softgel form;
             353          (E) gelcap form; or
             354          (F) liquid form; or
             355          (ii) notwithstanding Subsection (31)(c)(i), if the product is not intended for ingestion in
             356      a form described in Subsections (31)(c)(i)(A) through (F), is not represented:
             357          (A) as conventional food; and
             358          (B) for use as a sole item of:
             359          (I) a meal; or
             360          (II) the diet; and
             361          (d) is required to be labeled as a dietary supplement:
             362          (i) identifiable by the "Supplemental Facts" box found on the label; and
             363          (ii) as required by 21 C.F.R. Sec. 101.36.
             364          (32) (a) "Direct mail" means printed material delivered or distributed by United States
             365      mail or other delivery service:
             366          (i) to:
             367          (A) a mass audience; or
             368          (B) addressees on a mailing list provided:


             369          (I) by a purchaser of the mailing list; or
             370          (II) at the discretion of the purchaser of the mailing list; and
             371          (ii) if the cost of the printed material is not billed directly to the recipients.
             372          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             373      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             374          (c) "Direct mail" does not include multiple items of printed material delivered to a
             375      single address.
             376          (33) "Directory assistance" means an ancillary service of providing:
             377          (a) address information; or
             378          (b) telephone number information.
             379          (34) (a) "Disposable home medical equipment or supplies" means medical equipment
             380      or supplies that:
             381          (i) cannot withstand repeated use; and
             382          (ii) are purchased by, for, or on behalf of a person other than:
             383          (A) a health care facility as defined in Section 26-21-2 ;
             384          (B) a health care provider as defined in Section 78B-3-403 ;
             385          (C) an office of a health care provider described in Subsection (34)(a)(ii)(B); or
             386          (D) a person similar to a person described in Subsections (34)(a)(ii)(A) through (C).
             387          (b) "Disposable home medical equipment or supplies" does not include:
             388          (i) a drug;
             389          (ii) durable medical equipment;
             390          (iii) a hearing aid;
             391          (iv) a hearing aid accessory;
             392          (v) mobility enhancing equipment; or
             393          (vi) tangible personal property used to correct impaired vision, including:
             394          (A) eyeglasses; or
             395          (B) contact lenses.
             396          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             397      commission may by rule define what constitutes medical equipment or supplies.
             398          (35) (a) "Drug" means a compound, substance, or preparation, or a component of a
             399      compound, substance, or preparation that is:


             400          (i) recognized in:
             401          (A) the official United States Pharmacopoeia;
             402          (B) the official Homeopathic Pharmacopoeia of the United States;
             403          (C) the official National Formulary; or
             404          (D) a supplement to a publication listed in Subsections (35)(a)(i)(A) through (C);
             405          (ii) intended for use in the:
             406          (A) diagnosis of disease;
             407          (B) cure of disease;
             408          (C) mitigation of disease;
             409          (D) treatment of disease; or
             410          (E) prevention of disease; or
             411          (iii) intended to affect:
             412          (A) the structure of the body; or
             413          (B) any function of the body.
             414          (b) "Drug" does not include:
             415          (i) food and food ingredients;
             416          (ii) a dietary supplement;
             417          (iii) an alcoholic beverage; or
             418          (iv) a prosthetic device.
             419          (36) (a) Except as provided in Subsection (36)(c), "durable medical equipment" means
             420      equipment that:
             421          (i) can withstand repeated use;
             422          (ii) is primarily and customarily used to serve a medical purpose;
             423          (iii) generally is not useful to a person in the absence of illness or injury; and
             424          (iv) is not worn in or on the body.
             425          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             426      equipment described in Subsection (36)(a).
             427          (c) Notwithstanding Subsection (36)(a), "durable medical equipment" does not include
             428      mobility enhancing equipment.
             429          (37) "Electronic" means:
             430          (a) relating to technology; and


             431          (b) having:
             432          (i) electrical capabilities;
             433          (ii) digital capabilities;
             434          (iii) magnetic capabilities;
             435          (iv) wireless capabilities;
             436          (v) optical capabilities;
             437          (vi) electromagnetic capabilities; or
             438          (vii) capabilities similar to Subsections (37)(b)(i) through (vi).
             439          (38) "Employee" is as defined in Section 59-10-401 .
             440          (39) "Fixed guideway" means a public transit facility that uses and occupies:
             441          (a) rail for the use of public transit; or
             442          (b) a separate right-of-way for the use of public transit.
             443          (40) "Fixed wing turbine powered aircraft" means an aircraft that:
             444          (a) is powered by turbine engines;
             445          (b) operates on jet fuel; and
             446          (c) has wings that are permanently attached to the fuselage of the aircraft.
             447          (41) "Fixed wireless service" means a telecommunications service that provides radio
             448      communication between fixed points.
             449          (42) (a) "Food and food ingredients" means substances:
             450          (i) regardless of whether the substances are in:
             451          (A) liquid form;
             452          (B) concentrated form;
             453          (C) solid form;
             454          (D) frozen form;
             455          (E) dried form; or
             456          (F) dehydrated form; and
             457          (ii) that are:
             458          (A) sold for:
             459          (I) ingestion by humans; or
             460          (II) chewing by humans; and
             461          (B) consumed for the substance's:


             462          (I) taste; or
             463          (II) nutritional value.
             464          (b) "Food and food ingredients" includes an item described in Subsection (79)(b)(iii).
             465          (c) "Food and food ingredients" does not include:
             466          (i) an alcoholic beverage;
             467          (ii) tobacco; or
             468          (iii) prepared food.
             469          (43) (a) "Fundraising sales" means sales:
             470          (i) (A) made by a school; or
             471          (B) made by a school student;
             472          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             473      materials, or provide transportation; and
             474          (iii) that are part of an officially sanctioned school activity.
             475          (b) For purposes of Subsection (43)(a)(iii), "officially sanctioned school activity"
             476      means a school activity:
             477          (i) that is conducted in accordance with a formal policy adopted by the school or school
             478      district governing the authorization and supervision of fundraising activities;
             479          (ii) that does not directly or indirectly compensate an individual teacher or other
             480      educational personnel by direct payment, commissions, or payment in kind; and
             481          (iii) the net or gross revenues from which are deposited in a dedicated account
             482      controlled by the school or school district.
             483          (44) "Geothermal energy" means energy contained in heat that continuously flows
             484      outward from the earth that is used as the sole source of energy to produce electricity.
             485          (45) "Governing board of the agreement" means the governing board of the agreement
             486      that is:
             487          (a) authorized to administer the agreement; and
             488          (b) established in accordance with the agreement.
             489          (46) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             490          (i) the executive branch of the state, including all departments, institutions, boards,
             491      divisions, bureaus, offices, commissions, and committees;
             492          (ii) the judicial branch of the state, including the courts, the Judicial Council, the


             493      Office of the Court Administrator, and similar administrative units in the judicial branch;
             494          (iii) the legislative branch of the state, including the House of Representatives, the
             495      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             496      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             497      Analyst;
             498          (iv) the National Guard;
             499          (v) an independent entity as defined in Section 63E-1-102 ; or
             500          (vi) a political subdivision as defined in Section 17B-1-102 .
             501          (b) "Governmental entity" does not include the state systems of public and higher
             502      education, including:
             503          (i) a college campus of the Utah College of Applied Technology;
             504          (ii) a school;
             505          (iii) the State Board of Education;
             506          (iv) the State Board of Regents; or
             507          (v) an institution of higher education.
             508          (47) "Hydroelectric energy" means water used as the sole source of energy to produce
             509      electricity.
             510          (48) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             511      other fuels:
             512          (a) in mining or extraction of minerals;
             513          (b) in agricultural operations to produce an agricultural product up to the time of
             514      harvest or placing the agricultural product into a storage facility, including:
             515          (i) commercial greenhouses;
             516          (ii) irrigation pumps;
             517          (iii) farm machinery;
             518          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             519      registered under Title 41, Chapter 1a, Part 2, Registration; and
             520          (v) other farming activities;
             521          (c) in manufacturing tangible personal property at an establishment described in SIC
             522      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             523      Executive Office of the President, Office of Management and Budget;


             524          (d) by a scrap recycler if:
             525          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             526      one or more of the following items into prepared grades of processed materials for use in new
             527      products:
             528          (A) iron;
             529          (B) steel;
             530          (C) nonferrous metal;
             531          (D) paper;
             532          (E) glass;
             533          (F) plastic;
             534          (G) textile; or
             535          (H) rubber; and
             536          (ii) the new products under Subsection (48)(d)(i) would otherwise be made with
             537      nonrecycled materials; or
             538          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             539      cogeneration facility as defined in Section 54-2-1 .
             540          (49) (a) Except as provided in Subsection (49)(b), "installation charge" means a charge
             541      for installing:
             542          (i) tangible personal property; or
             543          (ii) a product transferred electronically.
             544          (b) "Installation charge" does not include a charge for:
             545          (i) repairs or renovations of:
             546          (A) tangible personal property; or
             547          (B) a product transferred electronically; or
             548          (ii) attaching tangible personal property or a product transferred electronically:
             549          (A) to other tangible personal property; and
             550          (B) as part of a manufacturing or fabrication process.
             551          (50) "Institution of higher education" means an institution of higher education listed in
             552      Section 53B-2-101 .
             553          (51) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             554      personal property or a product transferred electronically for:


             555          (i) (A) a fixed term; or
             556          (B) an indeterminate term; and
             557          (ii) consideration.
             558          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             559      amount of consideration may be increased or decreased by reference to the amount realized
             560      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             561      Code.
             562          (c) "Lease" or "rental" does not include:
             563          (i) a transfer of possession or control of property under a security agreement or
             564      deferred payment plan that requires the transfer of title upon completion of the required
             565      payments;
             566          (ii) a transfer of possession or control of property under an agreement that requires the
             567      transfer of title:
             568          (A) upon completion of required payments; and
             569          (B) if the payment of an option price does not exceed the greater of:
             570          (I) $100; or
             571          (II) 1% of the total required payments; or
             572          (iii) providing tangible personal property along with an operator for a fixed period of
             573      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             574      designed.
             575          (d) For purposes of Subsection (51)(c)(iii), an operator is necessary for equipment to
             576      perform as designed if the operator's duties exceed the:
             577          (i) set-up of tangible personal property;
             578          (ii) maintenance of tangible personal property; or
             579          (iii) inspection of tangible personal property.
             580          (52) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             581      if the tangible storage media is not physically transferred to the purchaser.
             582          (53) "Local taxing jurisdiction" means a:
             583          (a) county that is authorized to impose an agreement sales and use tax;
             584          (b) city that is authorized to impose an agreement sales and use tax; or
             585          (c) town that is authorized to impose an agreement sales and use tax.


             586          (54) "Manufactured home" is as defined in Section 15A-1-302 .
             587          (55) For purposes of Section 59-12-104 , "manufacturing facility" means:
             588          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             589      Industrial Classification Manual of the federal Executive Office of the President, Office of
             590      Management and Budget;
             591          (b) a scrap recycler if:
             592          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             593      one or more of the following items into prepared grades of processed materials for use in new
             594      products:
             595          (A) iron;
             596          (B) steel;
             597          (C) nonferrous metal;
             598          (D) paper;
             599          (E) glass;
             600          (F) plastic;
             601          (G) textile; or
             602          (H) rubber; and
             603          (ii) the new products under Subsection (55)(b)(i) would otherwise be made with
             604      nonrecycled materials; or
             605          (c) a cogeneration facility as defined in Section 54-2-1 .
             606          (56) "Member of the immediate family of the producer" means a person who is related
             607      to a producer described in Subsection 59-12-104 (20)(a) as a:
             608          (a) child or stepchild, regardless of whether the child or stepchild is:
             609          (i) an adopted child or adopted stepchild; or
             610          (ii) a foster child or foster stepchild;
             611          (b) grandchild or stepgrandchild;
             612          (c) grandparent or stepgrandparent;
             613          (d) nephew or stepnephew;
             614          (e) niece or stepniece;
             615          (f) parent or stepparent;
             616          (g) sibling or stepsibling;


             617          (h) spouse;
             618          (i) person who is the spouse of a person described in Subsections (56)(a) through (g);
             619      or
             620          (j) person similar to a person described in Subsections (56)(a) through (i) as
             621      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             622      Administrative Rulemaking Act.
             623          (57) "Mobile home" is as defined in Section 15A-1-302 .
             624          (58) "Mobile telecommunications service" is as defined in the Mobile
             625      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             626          (59) (a) "Mobile wireless service" means a telecommunications service, regardless of
             627      the technology used, if:
             628          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             629          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             630          (iii) the origination point described in Subsection (59)(a)(i) and the termination point
             631      described in Subsection (59)(a)(ii) are not fixed.
             632          (b) "Mobile wireless service" includes a telecommunications service that is provided
             633      by a commercial mobile radio service provider.
             634          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             635      commission may by rule define "commercial mobile radio service provider."
             636          (60) (a) Except as provided in Subsection (60)(c), "mobility enhancing equipment"
             637      means equipment that is:
             638          (i) primarily and customarily used to provide or increase the ability to move from one
             639      place to another;
             640          (ii) appropriate for use in a:
             641          (A) home; or
             642          (B) motor vehicle; and
             643          (iii) not generally used by persons with normal mobility.
             644          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             645      the equipment described in Subsection (60)(a).
             646          (c) Notwithstanding Subsection (60)(a), "mobility enhancing equipment" does not
             647      include:


             648          (i) a motor vehicle;
             649          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             650      vehicle manufacturer;
             651          (iii) durable medical equipment; or
             652          (iv) a prosthetic device.
             653          (61) "Model 1 seller" means a seller registered under the agreement that has selected a
             654      certified service provider as the seller's agent to perform all of the seller's sales and use tax
             655      functions for agreement sales and use taxes other than the seller's obligation under Section
             656      59-12-124 to remit a tax on the seller's own purchases.
             657          (62) "Model 2 seller" means a seller registered under the agreement that:
             658          (a) except as provided in Subsection (62)(b), has selected a certified automated system
             659      to perform the seller's sales tax functions for agreement sales and use taxes; and
             660          (b) notwithstanding Subsection (62)(a), retains responsibility for remitting all of the
             661      sales tax:
             662          (i) collected by the seller; and
             663          (ii) to the appropriate local taxing jurisdiction.
             664          (63) (a) Subject to Subsection (63)(b), "model 3 seller" means a seller registered under
             665      the agreement that has:
             666          (i) sales in at least five states that are members of the agreement;
             667          (ii) total annual sales revenues of at least $500,000,000;
             668          (iii) a proprietary system that calculates the amount of tax:
             669          (A) for an agreement sales and use tax; and
             670          (B) due to each local taxing jurisdiction; and
             671          (iv) entered into a performance agreement with the governing board of the agreement.
             672          (b) For purposes of Subsection (63)(a), "model 3 seller" includes an affiliated group of
             673      sellers using the same proprietary system.
             674          (64) "Model 4 seller" means a seller that is registered under the agreement and is not a
             675      model 1 seller, model 2 seller, or model 3 seller.
             676          (65) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             677          (66) "Motor vehicle" is as defined in Section 41-1a-102 .
             678          (67) "Oil shale" means a group of fine black to dark brown shales containing


             679      bituminous material that yields petroleum upon distillation.
             680          (68) (a) "Other fuels" means products that burn independently to produce heat or
             681      energy.
             682          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             683      personal property.
             684          (69) (a) "Paging service" means a telecommunications service that provides
             685      transmission of a coded radio signal for the purpose of activating a specific pager.
             686          (b) For purposes of Subsection (69)(a), the transmission of a coded radio signal
             687      includes a transmission by message or sound.
             688          (70) "Pawnbroker" is as defined in Section 13-32a-102 .
             689          (71) "Pawn transaction" is as defined in Section 13-32a-102 .
             690          (72) (a) "Permanently attached to real property" means that for tangible personal
             691      property attached to real property:
             692          (i) the attachment of the tangible personal property to the real property:
             693          (A) is essential to the use of the tangible personal property; and
             694          (B) suggests that the tangible personal property will remain attached to the real
             695      property in the same place over the useful life of the tangible personal property; or
             696          (ii) if the tangible personal property is detached from the real property, the detachment
             697      would:
             698          (A) cause substantial damage to the tangible personal property; or
             699          (B) require substantial alteration or repair of the real property to which the tangible
             700      personal property is attached.
             701          (b) "Permanently attached to real property" includes:
             702          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             703          (A) essential to the operation of the tangible personal property; and
             704          (B) attached only to facilitate the operation of the tangible personal property;
             705          (ii) a temporary detachment of tangible personal property from real property for a
             706      repair or renovation if the repair or renovation is performed where the tangible personal
             707      property and real property are located; or
             708          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             709      Subsection (72)(c)(iii) or (iv).


             710          (c) "Permanently attached to real property" does not include:
             711          (i) the attachment of portable or movable tangible personal property to real property if
             712      that portable or movable tangible personal property is attached to real property only for:
             713          (A) convenience;
             714          (B) stability; or
             715          (C) for an obvious temporary purpose;
             716          (ii) the detachment of tangible personal property from real property except for the
             717      detachment described in Subsection (72)(b)(ii);
             718          (iii) an attachment of the following tangible personal property to real property if the
             719      attachment to real property is only through a line that supplies water, electricity, gas,
             720      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             721      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             722          (A) a computer;
             723          (B) a telephone;
             724          (C) a television; or
             725          (D) tangible personal property similar to Subsections (72)(c)(iii)(A) through (C) as
             726      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             727      Administrative Rulemaking Act; or
             728          (iv) an item listed in Subsection [(113)] (116)(c).
             729          (73) "Person" includes any individual, firm, partnership, joint venture, association,
             730      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             731      municipality, district, or other local governmental entity of the state, or any group or
             732      combination acting as a unit.
             733          (74) "Place of primary use":
             734          (a) for telecommunications service other than mobile telecommunications service,
             735      means the street address representative of where the customer's use of the telecommunications
             736      service primarily occurs, which shall be:
             737          (i) the residential street address of the customer; or
             738          (ii) the primary business street address of the customer; or
             739          (b) for mobile telecommunications service, is as defined in the Mobile
             740      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.


             741          (75) (a) "Postpaid calling service" means a telecommunications service a person
             742      obtains by making a payment on a call-by-call basis:
             743          (i) through the use of a:
             744          (A) bank card;
             745          (B) credit card;
             746          (C) debit card; or
             747          (D) travel card; or
             748          (ii) by a charge made to a telephone number that is not associated with the origination
             749      or termination of the telecommunications service.
             750          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             751      service, that would be a prepaid wireless calling service if the service were exclusively a
             752      telecommunications service.
             753          (76) "Postproduction" means an activity related to the finishing or duplication of a
             754      medium described in Subsection 59-12-104 (54)(a).
             755          (77) "Prepaid calling service" means a telecommunications service:
             756          (a) that allows a purchaser access to telecommunications service that is exclusively
             757      telecommunications service;
             758          (b) that:
             759          (i) is paid for in advance; and
             760          (ii) enables the origination of a call using an:
             761          (A) access number; or
             762          (B) authorization code;
             763          (c) that is dialed:
             764          (i) manually; or
             765          (ii) electronically; and
             766          (d) sold in predetermined units or dollars that decline:
             767          (i) by a known amount; and
             768          (ii) with use.
             769          (78) "Prepaid wireless calling service" means a telecommunications service:
             770          (a) that provides the right to utilize:
             771          (i) mobile wireless service; and


             772          (ii) other service that is not a telecommunications service, including:
             773          (A) the download of a product transferred electronically;
             774          (B) a content service; or
             775          (C) an ancillary service;
             776          (b) that:
             777          (i) is paid for in advance; and
             778          (ii) enables the origination of a call using an:
             779          (A) access number; or
             780          (B) authorization code;
             781          (c) that is dialed:
             782          (i) manually; or
             783          (ii) electronically; and
             784          (d) sold in predetermined units or dollars that decline:
             785          (i) by a known amount; and
             786          (ii) with use.
             787          (79) (a) "Prepared food" means:
             788          (i) food:
             789          (A) sold in a heated state; or
             790          (B) heated by a seller;
             791          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             792      item; or
             793          (iii) except as provided in Subsection (79)(c), food sold with an eating utensil provided
             794      by the seller, including a:
             795          (A) plate;
             796          (B) knife;
             797          (C) fork;
             798          (D) spoon;
             799          (E) glass;
             800          (F) cup;
             801          (G) napkin; or
             802          (H) straw.


             803          (b) "Prepared food" does not include:
             804          (i) food that a seller only:
             805          (A) cuts;
             806          (B) repackages; or
             807          (C) pasteurizes; or
             808          (ii) (A) the following:
             809          (I) raw egg;
             810          (II) raw fish;
             811          (III) raw meat;
             812          (IV) raw poultry; or
             813          (V) a food containing an item described in Subsections (79)(b)(ii)(A)(I) through (IV);
             814      and
             815          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             816      Food and Drug Administration's Food Code that a consumer cook the items described in
             817      Subsection (79)(b)(ii)(A) to prevent food borne illness; or
             818          (iii) the following if sold without eating utensils provided by the seller:
             819          (A) food and food ingredients sold by a seller if the seller's proper primary
             820      classification under the 2002 North American Industry Classification System of the federal
             821      Executive Office of the President, Office of Management and Budget, is manufacturing in
             822      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             823      Manufacturing;
             824          (B) food and food ingredients sold in an unheated state:
             825          (I) by weight or volume; and
             826          (II) as a single item; or
             827          (C) a bakery item, including:
             828          (I) a bagel;
             829          (II) a bar;
             830          (III) a biscuit;
             831          (IV) bread;
             832          (V) a bun;
             833          (VI) a cake;


             834          (VII) a cookie;
             835          (VIII) a croissant;
             836          (IX) a danish;
             837          (X) a donut;
             838          (XI) a muffin;
             839          (XII) a pastry;
             840          (XIII) a pie;
             841          (XIV) a roll;
             842          (XV) a tart;
             843          (XVI) a torte; or
             844          (XVII) a tortilla.
             845          (c) Notwithstanding Subsection (79)(a)(iii), an eating utensil provided by the seller
             846      does not include the following used to transport the food:
             847          (i) a container; or
             848          (ii) packaging.
             849          (80) "Prescription" means an order, formula, or recipe that is issued:
             850          (a) (i) orally;
             851          (ii) in writing;
             852          (iii) electronically; or
             853          (iv) by any other manner of transmission; and
             854          (b) by a licensed practitioner authorized by the laws of a state.
             855          (81) (a) Except as provided in Subsection (81)(b)(ii) or (iii), "prewritten computer
             856      software" means computer software that is not designed and developed:
             857          (i) by the author or other creator of the computer software; and
             858          (ii) to the specifications of a specific purchaser.
             859          (b) "Prewritten computer software" includes:
             860          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             861      software is not designed and developed:
             862          (A) by the author or other creator of the computer software; and
             863          (B) to the specifications of a specific purchaser;
             864          (ii) notwithstanding Subsection (81)(a), computer software designed and developed by


             865      the author or other creator of the computer software to the specifications of a specific purchaser
             866      if the computer software is sold to a person other than the purchaser; or
             867          (iii) notwithstanding Subsection (81)(a) and except as provided in Subsection (81)(c),
             868      prewritten computer software or a prewritten portion of prewritten computer software:
             869          (A) that is modified or enhanced to any degree; and
             870          (B) if the modification or enhancement described in Subsection (81)(b)(iii)(A) is
             871      designed and developed to the specifications of a specific purchaser.
             872          (c) Notwithstanding Subsection (81)(b)(iii), "prewritten computer software" does not
             873      include a modification or enhancement described in Subsection (81)(b)(iii) if the charges for
             874      the modification or enhancement are:
             875          (i) reasonable; and
             876          (ii) separately stated on the invoice or other statement of price provided to the
             877      purchaser.
             878          (82) (a) "Private communication service" means a telecommunications service:
             879          (i) that entitles a customer to exclusive or priority use of one or more communications
             880      channels between or among termination points; and
             881          (ii) regardless of the manner in which the one or more communications channels are
             882      connected.
             883          (b) "Private communications service" includes the following provided in connection
             884      with the use of one or more communications channels:
             885          (i) an extension line;
             886          (ii) a station;
             887          (iii) switching capacity; or
             888          (iv) another associated service that is provided in connection with the use of one or
             889      more communications channels as defined in Section 59-12-215 .
             890          (83) (a) Except as provided in Subsection (83)(b), "product transferred electronically"
             891      means a product transferred electronically that would be subject to a tax under this chapter if
             892      that product was transferred in a manner other than electronically.
             893          (b) "Product transferred electronically" does not include:
             894          (i) an ancillary service;
             895          (ii) computer software; or


             896          (iii) a telecommunications service.
             897          (84) (a) "Prosthetic device" means a device that is worn on or in the body to:
             898          (i) artificially replace a missing portion of the body;
             899          (ii) prevent or correct a physical deformity or physical malfunction; or
             900          (iii) support a weak or deformed portion of the body.
             901          (b) "Prosthetic device" includes:
             902          (i) parts used in the repairs or renovation of a prosthetic device;
             903          (ii) replacement parts for a prosthetic device;
             904          (iii) a dental prosthesis; or
             905          (iv) a hearing aid.
             906          (c) "Prosthetic device" does not include:
             907          (i) corrective eyeglasses; or
             908          (ii) contact lenses.
             909          (85) (a) "Protective equipment" means an item:
             910          (i) for human wear; and
             911          (ii) that is:
             912          (A) designed as protection:
             913          (I) to the wearer against injury or disease; or
             914          (II) against damage or injury of other persons or property; and
             915          (B) not suitable for general use.
             916          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             917      commission shall make rules:
             918          (i) listing the items that constitute "protective equipment"; and
             919          (ii) that are consistent with the list of items that constitute "protective equipment"
             920      under the agreement.
             921          (86) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             922      printed matter, other than a photocopy:
             923          (i) regardless of:
             924          (A) characteristics;
             925          (B) copyright;
             926          (C) form;


             927          (D) format;
             928          (E) method of reproduction; or
             929          (F) source; and
             930          (ii) made available in printed or electronic format.
             931          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             932      commission may by rule define the term "photocopy."
             933          (87) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             934          (i) valued in money; and
             935          (ii) for which tangible personal property, a product transferred electronically, or
             936      services are:
             937          (A) sold;
             938          (B) leased; or
             939          (C) rented.
             940          (b) "Purchase price" and "sales price" include:
             941          (i) the seller's cost of the tangible personal property, a product transferred
             942      electronically, or services sold;
             943          (ii) expenses of the seller, including:
             944          (A) the cost of materials used;
             945          (B) a labor cost;
             946          (C) a service cost;
             947          (D) interest;
             948          (E) a loss;
             949          (F) the cost of transportation to the seller; or
             950          (G) a tax imposed on the seller;
             951          (iii) a charge by the seller for any service necessary to complete the sale; or
             952          (iv) consideration a seller receives from a person other than the purchaser if:
             953          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             954      and
             955          (II) the consideration described in Subsection (87)(b)(iv)(A)(I) is directly related to a
             956      price reduction or discount on the sale;
             957          (B) the seller has an obligation to pass the price reduction or discount through to the


             958      purchaser;
             959          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             960      the seller at the time of the sale to the purchaser; and
             961          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             962      seller to claim a price reduction or discount; and
             963          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             964      coupon, or other documentation with the understanding that the person other than the seller
             965      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             966          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             967      organization allowed a price reduction or discount, except that a preferred customer card that is
             968      available to any patron of a seller does not constitute membership in a group or organization
             969      allowed a price reduction or discount; or
             970          (III) the price reduction or discount is identified as a third party price reduction or
             971      discount on the:
             972          (Aa) invoice the purchaser receives; or
             973          (Bb) certificate, coupon, or other documentation the purchaser presents.
             974          (c) "Purchase price" and "sales price" do not include:
             975          (i) a discount:
             976          (A) in a form including:
             977          (I) cash;
             978          (II) term; or
             979          (III) coupon;
             980          (B) that is allowed by a seller;
             981          (C) taken by a purchaser on a sale; and
             982          (D) that is not reimbursed by a third party; or
             983          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             984      provided to the purchaser:
             985          (A) the following from credit extended on the sale of tangible personal property or
             986      services:
             987          (I) a carrying charge;
             988          (II) a financing charge; or


             989          (III) an interest charge;
             990          (B) a delivery charge;
             991          (C) an installation charge;
             992          (D) a manufacturer rebate on a motor vehicle; or
             993          (E) a tax or fee legally imposed directly on the consumer.
             994          (88) "Purchaser" means a person to whom:
             995          (a) a sale of tangible personal property is made;
             996          (b) a product is transferred electronically; or
             997          (c) a service is furnished.
             998          (89) "Regularly rented" means:
             999          (a) rented to a guest for value three or more times during a calendar year; or
             1000          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1001      value.
             1002          (90) "Renewable energy" means:
             1003          (a) biomass energy;
             1004          (b) hydroelectric energy;
             1005          (c) geothermal energy;
             1006          (d) solar energy; or
             1007          (e) wind energy.
             1008          (91) (a) "Renewable energy production facility" means a facility that:
             1009          (i) uses renewable energy to produce electricity; and
             1010          (ii) has a production capacity of 20 kilowatts or greater.
             1011          (b) A facility is a renewable energy production facility regardless of whether the
             1012      facility is:
             1013          (i) connected to an electric grid; or
             1014          (ii) located on the premises of an electricity consumer.
             1015          (92) "Rental" is as defined in Subsection (51).
             1016          (93) (a) Except as provided in Subsection (93)(b), "repairs or renovations of tangible
             1017      personal property" means:
             1018          (i) a repair or renovation of tangible personal property that is not permanently attached
             1019      to real property; or


             1020          (ii) attaching tangible personal property or a product transferred electronically to other
             1021      tangible personal property if:
             1022          (A) the other tangible personal property to which the tangible personal property or
             1023      product transferred electronically is attached is not permanently attached to real property; and
             1024          (B) the attachment of tangible personal property or a product transferred electronically
             1025      to other tangible personal property is made in conjunction with a repair or replacement of
             1026      tangible personal property or a product transferred electronically.
             1027          (b) "Repairs or renovations of tangible personal property" does not include attaching
             1028      prewritten computer software to other tangible personal property if the other tangible personal
             1029      property to which the prewritten computer software is attached is not permanently attached to
             1030      real property.
             1031          (94) "Research and development" means the process of inquiry or experimentation
             1032      aimed at the discovery of facts, devices, technologies, or applications and the process of
             1033      preparing those devices, technologies, or applications for marketing.
             1034          (95) (a) "Residential telecommunications services" means a telecommunications
             1035      service or an ancillary service that is provided to an individual for personal use:
             1036          (i) at a residential address; or
             1037          (ii) at an institution, including a nursing home or a school, if the telecommunications
             1038      service or ancillary service is provided to and paid for by the individual residing at the
             1039      institution rather than the institution.
             1040          (b) For purposes of Subsection (95)(a)(i), a residential address includes an:
             1041          (i) apartment; or
             1042          (ii) other individual dwelling unit.
             1043          (96) "Residential use" means the use in or around a home, apartment building, sleeping
             1044      quarters, and similar facilities or accommodations.
             1045          (97) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             1046      than:
             1047          (a) resale;
             1048          (b) sublease; or
             1049          (c) subrent.
             1050          (98) (a) "Retailer" means any person engaged in a regularly organized business in


             1051      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             1052      who is selling to the user or consumer and not for resale.
             1053          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             1054      engaged in the business of selling to users or consumers within the state.
             1055          (99) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1056      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1057      Subsection 59-12-103 (1), for consideration.
             1058          (b) "Sale" includes:
             1059          (i) installment and credit sales;
             1060          (ii) any closed transaction constituting a sale;
             1061          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1062      chapter;
             1063          (iv) any transaction if the possession of property is transferred but the seller retains the
             1064      title as security for the payment of the price; and
             1065          (v) any transaction under which right to possession, operation, or use of any article of
             1066      tangible personal property is granted under a lease or contract and the transfer of possession
             1067      would be taxable if an outright sale were made.
             1068          (100) "Sale at retail" is as defined in Subsection (97).
             1069          (101) "Sale-leaseback transaction" means a transaction by which title to tangible
             1070      personal property or a product transferred electronically that is subject to a tax under this
             1071      chapter is transferred:
             1072          (a) by a purchaser-lessee;
             1073          (b) to a lessor;
             1074          (c) for consideration; and
             1075          (d) if:
             1076          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1077      of the tangible personal property or product transferred electronically;
             1078          (ii) the sale of the tangible personal property or product transferred electronically to the
             1079      lessor is intended as a form of financing:
             1080          (A) for the tangible personal property or product transferred electronically; and
             1081          (B) to the purchaser-lessee; and


             1082          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1083      is required to:
             1084          (A) capitalize the tangible personal property or product transferred electronically for
             1085      financial reporting purposes; and
             1086          (B) account for the lease payments as payments made under a financing arrangement.
             1087          (102) "Sales price" is as defined in Subsection (87).
             1088          (103) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             1089      amounts charged by a school:
             1090          (i) sales that are directly related to the school's educational functions or activities
             1091      including:
             1092          (A) the sale of:
             1093          (I) textbooks;
             1094          (II) textbook fees;
             1095          (III) laboratory fees;
             1096          (IV) laboratory supplies; or
             1097          (V) safety equipment;
             1098          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1099      that:
             1100          (I) a student is specifically required to wear as a condition of participation in a
             1101      school-related event or school-related activity; and
             1102          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1103      place of ordinary clothing;
             1104          (C) sales of the following if the net or gross revenues generated by the sales are
             1105      deposited into a school district fund or school fund dedicated to school meals:
             1106          (I) food and food ingredients; or
             1107          (II) prepared food; or
             1108          (D) transportation charges for official school activities; or
             1109          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1110      event or school-related activity.
             1111          (b) "Sales relating to schools" does not include:
             1112          (i) bookstore sales of items that are not educational materials or supplies;


             1113          (ii) except as provided in Subsection (103)(a)(i)(B):
             1114          (A) clothing;
             1115          (B) clothing accessories or equipment;
             1116          (C) protective equipment; or
             1117          (D) sports or recreational equipment; or
             1118          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1119      event or school-related activity if the amounts paid or charged are passed through to a person:
             1120          (A) other than a:
             1121          (I) school;
             1122          (II) nonprofit organization authorized by a school board or a governing body of a
             1123      private school to organize and direct a competitive secondary school activity; or
             1124          (III) nonprofit association authorized by a school board or a governing body of a
             1125      private school to organize and direct a competitive secondary school activity; and
             1126          (B) that is required to collect sales and use taxes under this chapter.
             1127          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1128      commission may make rules defining the term "passed through."
             1129          (104) For purposes of this section and Section 59-12-104 , "school":
             1130          (a) means:
             1131          (i) an elementary school or a secondary school that:
             1132          (A) is a:
             1133          (I) public school; or
             1134          (II) private school; and
             1135          (B) provides instruction for one or more grades kindergarten through 12; or
             1136          (ii) a public school district; and
             1137          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1138          (105) "Seller" means a person that makes a sale, lease, or rental of:
             1139          (a) tangible personal property;
             1140          (b) a product transferred electronically; or
             1141          (c) a service.
             1142          (106) (a) "Semiconductor fabricating, processing, research, or development materials"
             1143      means tangible personal property or a product transferred electronically if the tangible personal


             1144      property or product transferred electronically is:
             1145          (i) used primarily in the process of:
             1146          (A) (I) manufacturing a semiconductor;
             1147          (II) fabricating a semiconductor; or
             1148          (III) research or development of a:
             1149          (Aa) semiconductor; or
             1150          (Bb) semiconductor manufacturing process; or
             1151          (B) maintaining an environment suitable for a semiconductor; or
             1152          (ii) consumed primarily in the process of:
             1153          (A) (I) manufacturing a semiconductor;
             1154          (II) fabricating a semiconductor; or
             1155          (III) research or development of a:
             1156          (Aa) semiconductor; or
             1157          (Bb) semiconductor manufacturing process; or
             1158          (B) maintaining an environment suitable for a semiconductor.
             1159          (b) "Semiconductor fabricating, processing, research, or development materials"
             1160      includes:
             1161          (i) parts used in the repairs or renovations of tangible personal property or a product
             1162      transferred electronically described in Subsection (106)(a); or
             1163          (ii) a chemical, catalyst, or other material used to:
             1164          (A) produce or induce in a semiconductor a:
             1165          (I) chemical change; or
             1166          (II) physical change;
             1167          (B) remove impurities from a semiconductor; or
             1168          (C) improve the marketable condition of a semiconductor.
             1169          (107) "Senior citizen center" means a facility having the primary purpose of providing
             1170      services to the aged as defined in Section 62A-3-101 .
             1171          (108) "Short-term lodging" means tourist home, hotel, motel, or trailer court
             1172      accommodations and services that are regularly rented for less than 30 consecutive days.
             1173          (109) (a) Except as provided in Subsection (109)(b), "short-term lodging operator"
             1174      means a person that owns, operates, or manages short-term lodging.


             1175          (b) "Short-term lodging operator" does not include a:
             1176          (i) travel agent who does not own, operate, or manage short-term lodging; or
             1177          (ii) person who:
             1178          (A) does not own, operate, or manage short-term lodging; and
             1179          (B) arranges, books, brokers, coordinates, or facilitates a transaction involving
             1180      short-term lodging between a purchaser and a person who owns, operates, or manages
             1181      short-term lodging.
             1182          (110) "Short-term lodging transaction component" means each of the following
             1183      amounts paid or charged for short-term lodging:
             1184          (a) amounts paid or charged by a short-term lodging operator as a room cost for
             1185      short-term lodging;
             1186          (b) a tax under this chapter on an amount described in Subsection (110)(a); or
             1187          (c) any additional amount, except for an amount described in Subsection (110)(a) or
             1188      (b), paid or charged for service as part of the transaction for the purchase of short-term lodging,
             1189      regardless of how the additional amount is characterized.
             1190          [(108)] (111) "Simplified electronic return" means the electronic return:
             1191          (a) described in Section 318(C) of the agreement; and
             1192          (b) approved by the governing board of the agreement.
             1193          [(109)] (112) "Solar energy" means the sun used as the sole source of energy for
             1194      producing electricity.
             1195          [(110)] (113) (a) "Sports or recreational equipment" means an item:
             1196          (i) designed for human use; and
             1197          (ii) that is:
             1198          (A) worn in conjunction with:
             1199          (I) an athletic activity; or
             1200          (II) a recreational activity; and
             1201          (B) not suitable for general use.
             1202          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1203      commission shall make rules:
             1204          (i) listing the items that constitute "sports or recreational equipment"; and
             1205          (ii) that are consistent with the list of items that constitute "sports or recreational


             1206      equipment" under the agreement.
             1207          [(111)] (114) "State" means the state of Utah, its departments, and agencies.
             1208          [(112)] (115) "Storage" means any keeping or retention of tangible personal property or
             1209      any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
             1210      except sale in the regular course of business.
             1211          [(113)] (116) (a) Except as provided in Subsection [(113)] (116)(d) or (e), "tangible
             1212      personal property" means personal property that:
             1213          (i) may be:
             1214          (A) seen;
             1215          (B) weighed;
             1216          (C) measured;
             1217          (D) felt; or
             1218          (E) touched; or
             1219          (ii) is in any manner perceptible to the senses.
             1220          (b) "Tangible personal property" includes:
             1221          (i) electricity;
             1222          (ii) water;
             1223          (iii) gas;
             1224          (iv) steam; or
             1225          (v) prewritten computer software, regardless of the manner in which the prewritten
             1226      computer software is transferred.
             1227          (c) "Tangible personal property" includes the following regardless of whether the item
             1228      is attached to real property:
             1229          (i) a dishwasher;
             1230          (ii) a dryer;
             1231          (iii) a freezer;
             1232          (iv) a microwave;
             1233          (v) a refrigerator;
             1234          (vi) a stove;
             1235          (vii) a washer; or
             1236          (viii) an item similar to Subsections [(113)] (116)(c)(i) through (vii) as determined by


             1237      the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1238      Rulemaking Act.
             1239          (d) "Tangible personal property" does not include a product that is transferred
             1240      electronically.
             1241          (e) "Tangible personal property" does not include the following if attached to real
             1242      property, regardless of whether the attachment to real property is only through a line that
             1243      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             1244      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1245      Rulemaking Act:
             1246          (i) a hot water heater;
             1247          (ii) a water filtration system; or
             1248          (iii) a water softener system.
             1249          [(114)] (117) "Tar sands" means impregnated sands that yield mixtures of liquid
             1250      hydrocarbon and require further processing other than mechanical blending before becoming
             1251      finished petroleum products.
             1252          [(115)] (118) (a) "Telecommunications enabling or facilitating equipment, machinery,
             1253      or software" means an item listed in Subsection [(115)] (118)(b) if that item is purchased or
             1254      leased primarily to enable or facilitate one or more of the following to function:
             1255          (i) telecommunications switching or routing equipment, machinery, or software; or
             1256          (ii) telecommunications transmission equipment, machinery, or software.
             1257          (b) The following apply to Subsection [(115)] (118)(a):
             1258          (i) a pole;
             1259          (ii) software;
             1260          (iii) a supplementary power supply;
             1261          (iv) temperature or environmental equipment or machinery;
             1262          (v) test equipment;
             1263          (vi) a tower; or
             1264          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1265      Subsections [(115)] (118)(b)(i) through (vi) as determined by the commission by rule made in
             1266      accordance with Subsection [(115)] (118)(c).
             1267          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the


             1268      commission may by rule define what constitutes equipment, machinery, or software that
             1269      functions similarly to an item listed in Subsections [(115)] (118)(b)(i) through (vi).
             1270          [(116)] (119) "Telecommunications equipment, machinery, or software required for
             1271      911 service" means equipment, machinery, or software that is required to comply with 47
             1272      C.F.R. Sec. 20.18.
             1273          [(117)] (120) "Telecommunications maintenance or repair equipment, machinery, or
             1274      software" means equipment, machinery, or software purchased or leased primarily to maintain
             1275      or repair one or more of the following, regardless of whether the equipment, machinery, or
             1276      software is purchased or leased as a spare part or as an upgrade or modification to one or more
             1277      of the following:
             1278          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1279          (b) telecommunications switching or routing equipment, machinery, or software; or
             1280          (c) telecommunications transmission equipment, machinery, or software.
             1281          [(118)] (121) (a) "Telecommunications service" means the electronic conveyance,
             1282      routing, or transmission of audio, data, video, voice, or any other information or signal to a
             1283      point, or among or between points.
             1284          (b) "Telecommunications service" includes:
             1285          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             1286      processing application is used to act:
             1287          (A) on the code, form, or protocol of the content;
             1288          (B) for the purpose of electronic conveyance, routing, or transmission; and
             1289          (C) regardless of whether the service:
             1290          (I) is referred to as voice over Internet protocol service; or
             1291          (II) is classified by the Federal Communications Commission as enhanced or value
             1292      added;
             1293          (ii) an 800 service;
             1294          (iii) a 900 service;
             1295          (iv) a fixed wireless service;
             1296          (v) a mobile wireless service;
             1297          (vi) a postpaid calling service;
             1298          (vii) a prepaid calling service;


             1299          (viii) a prepaid wireless calling service; or
             1300          (ix) a private communications service.
             1301          (c) "Telecommunications service" does not include:
             1302          (i) advertising, including directory advertising;
             1303          (ii) an ancillary service;
             1304          (iii) a billing and collection service provided to a third party;
             1305          (iv) a data processing and information service if:
             1306          (A) the data processing and information service allows data to be:
             1307          (I) (Aa) acquired;
             1308          (Bb) generated;
             1309          (Cc) processed;
             1310          (Dd) retrieved; or
             1311          (Ee) stored; and
             1312          (II) delivered by an electronic transmission to a purchaser; and
             1313          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             1314      or information;
             1315          (v) installation or maintenance of the following on a customer's premises:
             1316          (A) equipment; or
             1317          (B) wiring;
             1318          (vi) Internet access service;
             1319          (vii) a paging service;
             1320          (viii) a product transferred electronically, including:
             1321          (A) music;
             1322          (B) reading material;
             1323          (C) a ring tone;
             1324          (D) software; or
             1325          (E) video;
             1326          (ix) a radio and television audio and video programming service:
             1327          (A) regardless of the medium; and
             1328          (B) including:
             1329          (I) furnishing conveyance, routing, or transmission of a television audio and video


             1330      programming service by a programming service provider;
             1331          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             1332          (III) audio and video programming services delivered by a commercial mobile radio
             1333      service provider as defined in 47 C.F.R. Sec. 20.3;
             1334          (x) a value-added nonvoice data service; or
             1335          (xi) tangible personal property.
             1336          [(119)] (122) (a) "Telecommunications service provider" means a person that:
             1337          (i) owns, controls, operates, or manages a telecommunications service; and
             1338          (ii) engages in an activity described in Subsection [(119)] (122)(a)(i) for the shared use
             1339      with or resale to any person of the telecommunications service.
             1340          (b) A person described in Subsection [(119)] (122)(a) is a telecommunications service
             1341      provider whether or not the Public Service Commission of Utah regulates:
             1342          (i) that person; or
             1343          (ii) the telecommunications service that the person owns, controls, operates, or
             1344      manages.
             1345          [(120)] (123) (a) "Telecommunications switching or routing equipment, machinery, or
             1346      software" means an item listed in Subsection [(120)] (123)(b) if that item is purchased or
             1347      leased primarily for switching or routing:
             1348          (i) an ancillary service;
             1349          (ii) data communications;
             1350          (iii) voice communications; or
             1351          (iv) telecommunications service.
             1352          (b) The following apply to Subsection [(120)] (123)(a):
             1353          (i) a bridge;
             1354          (ii) a computer;
             1355          (iii) a cross connect;
             1356          (iv) a modem;
             1357          (v) a multiplexer;
             1358          (vi) plug in circuitry;
             1359          (vii) a router;
             1360          (viii) software;


             1361          (ix) a switch; or
             1362          (x) equipment, machinery, or software that functions similarly to an item listed in
             1363      Subsections [(120)] (123)(b)(i) through (ix) as determined by the commission by rule made in
             1364      accordance with Subsection [(120)] (123)(c).
             1365          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1366      commission may by rule define what constitutes equipment, machinery, or software that
             1367      functions similarly to an item listed in Subsections [(120)] (123)(b)(i) through (ix).
             1368          [(121)] (124) (a) "Telecommunications transmission equipment, machinery, or
             1369      software" means an item listed in Subsection [(121)] (124)(b) if that item is purchased or
             1370      leased primarily for sending, receiving, or transporting:
             1371          (i) an ancillary service;
             1372          (ii) data communications;
             1373          (iii) voice communications; or
             1374          (iv) telecommunications service.
             1375          (b) The following apply to Subsection [(121)] (124)(a):
             1376          (i) an amplifier;
             1377          (ii) a cable;
             1378          (iii) a closure;
             1379          (iv) a conduit;
             1380          (v) a controller;
             1381          (vi) a duplexer;
             1382          (vii) a filter;
             1383          (viii) an input device;
             1384          (ix) an input/output device;
             1385          (x) an insulator;
             1386          (xi) microwave machinery or equipment;
             1387          (xii) an oscillator;
             1388          (xiii) an output device;
             1389          (xiv) a pedestal;
             1390          (xv) a power converter;
             1391          (xvi) a power supply;


             1392          (xvii) a radio channel;
             1393          (xviii) a radio receiver;
             1394          (xix) a radio transmitter;
             1395          (xx) a repeater;
             1396          (xxi) software;
             1397          (xxii) a terminal;
             1398          (xxiii) a timing unit;
             1399          (xxiv) a transformer;
             1400          (xxv) a wire; or
             1401          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1402      Subsections [(121)] (124)(b)(i) through (xxv) as determined by the commission by rule made in
             1403      accordance with Subsection [(121)] (124)(c).
             1404          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1405      commission may by rule define what constitutes equipment, machinery, or software that
             1406      functions similarly to an item listed in Subsections [(121)] (124)(b)(i) through (xxv).
             1407          [(122)] (125) (a) "Textbook for a higher education course" means a textbook or other
             1408      printed material that is required for a course:
             1409          (i) offered by an institution of higher education; and
             1410          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             1411          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             1412          [(123)] (126) "Tobacco" means:
             1413          (a) a cigarette;
             1414          (b) a cigar;
             1415          (c) chewing tobacco;
             1416          (d) pipe tobacco; or
             1417          (e) any other item that contains tobacco.
             1418          [(124)] (127) "Unassisted amusement device" means an amusement device, skill
             1419      device, or ride device that is started and stopped by the purchaser or renter of the right to use or
             1420      operate the amusement device, skill device, or ride device.
             1421          [(125)] (128) (a) "Use" means the exercise of any right or power over tangible personal
             1422      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),


             1423      incident to the ownership or the leasing of that tangible personal property, product transferred
             1424      electronically, or service.
             1425          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             1426      property, a product transferred electronically, or a service in the regular course of business and
             1427      held for resale.
             1428          [(126)] (129) "Value-added nonvoice data service" means a service:
             1429          (a) that otherwise meets the definition of a telecommunications service except that a
             1430      computer processing application is used to act primarily for a purpose other than conveyance,
             1431      routing, or transmission; and
             1432          (b) with respect to which a computer processing application is used to act on data or
             1433      information:
             1434          (i) code;
             1435          (ii) content;
             1436          (iii) form; or
             1437          (iv) protocol.
             1438          [(127)] (130) (a) Subject to Subsection [(127)] (130)(b), "vehicle" means the following
             1439      that are required to be titled, registered, or titled and registered:
             1440          (i) an aircraft as defined in Section 72-10-102 ;
             1441          (ii) a vehicle as defined in Section 41-1a-102 ;
             1442          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             1443          (iv) a vessel as defined in Section 41-1a-102 .
             1444          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             1445          (i) a vehicle described in Subsection [(127)] (130)(a); or
             1446          (ii) (A) a locomotive;
             1447          (B) a freight car;
             1448          (C) railroad work equipment; or
             1449          (D) other railroad rolling stock.
             1450          [(128)] (131) "Vehicle dealer" means a person engaged in the business of buying,
             1451      selling, or exchanging a vehicle as defined in Subsection [(127)] (130).
             1452          [(129)] (132) (a) "Vertical service" means an ancillary service that:
             1453          (i) is offered in connection with one or more telecommunications services; and


             1454          (ii) offers an advanced calling feature that allows a customer to:
             1455          (A) identify a caller; and
             1456          (B) manage multiple calls and call connections.
             1457          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             1458      conference bridging service.
             1459          [(130)] (133) (a) "Voice mail service" means an ancillary service that enables a
             1460      customer to receive, send, or store a recorded message.
             1461          (b) "Voice mail service" does not include a vertical service that a customer is required
             1462      to have in order to utilize a voice mail service.
             1463          [(131)] (134) (a) Except as provided in Subsection [(131)] (134)(b), "waste energy
             1464      facility" means a facility that generates electricity:
             1465          (i) using as the primary source of energy waste materials that would be placed in a
             1466      landfill or refuse pit if it were not used to generate electricity, including:
             1467          (A) tires;
             1468          (B) waste coal; or
             1469          (C) oil shale; and
             1470          (ii) in amounts greater than actually required for the operation of the facility.
             1471          (b) "Waste energy facility" does not include a facility that incinerates:
             1472          (i) municipal solid waste;
             1473          (ii) hospital waste as defined in 40 C.F.R. 60.51c; or
             1474          (iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             1475          [(132)] (135) "Watercraft" means a vessel as defined in Section 73-18-2 .
             1476          [(133)] (136) "Wind energy" means wind used as the sole source of energy to produce
             1477      electricity.
             1478          [(134)] (137) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
             1479      geographic location by the United States Postal Service.
             1480          Section 2. Section 59-12-103 is amended to read:
             1481           59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
             1482      tax revenues.
             1483          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             1484      charged for the following transactions:


             1485          (a) retail sales of tangible personal property made within the state;
             1486          (b) amounts paid for:
             1487          (i) telecommunications service, other than mobile telecommunications service, that
             1488      originates and terminates within the boundaries of this state;
             1489          (ii) mobile telecommunications service that originates and terminates within the
             1490      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             1491      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             1492          (iii) an ancillary service associated with a:
             1493          (A) telecommunications service described in Subsection (1)(b)(i); or
             1494          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             1495          (c) sales of the following for commercial use:
             1496          (i) gas;
             1497          (ii) electricity;
             1498          (iii) heat;
             1499          (iv) coal;
             1500          (v) fuel oil; or
             1501          (vi) other fuels;
             1502          (d) sales of the following for residential use:
             1503          (i) gas;
             1504          (ii) electricity;
             1505          (iii) heat;
             1506          (iv) coal;
             1507          (v) fuel oil; or
             1508          (vi) other fuels;
             1509          (e) sales of prepared food;
             1510          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             1511      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             1512      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             1513      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             1514      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             1515      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,


             1516      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             1517      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             1518      exhibition, cultural, or athletic activity;
             1519          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             1520      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             1521          (i) the tangible personal property; and
             1522          (ii) parts used in the repairs or renovations of the tangible personal property described
             1523      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             1524      of that tangible personal property;
             1525          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             1526      assisted cleaning or washing of tangible personal property;
             1527          (i) subject to Subsection 59-12-107 (2)(h), amounts paid or charged for [tourist home,
             1528      hotel, motel, or trailer court accommodations and services that are regularly rented for less than
             1529      30 consecutive days;] short-term lodging as follows:
             1530          (i) if, at the time a reservation for the purchase of short-term lodging is made, the seller
             1531      separately states each short-term lodging transaction component on an invoice, bill of sale, or
             1532      similar document provided to the purchaser, the tax is imposed only on amounts paid or
             1533      charged as a room cost for the short-term lodging; or
             1534          (ii) if, at the time a reservation for the purchase of short-term lodging is made, the
             1535      seller does not separately state each short-term lodging transaction component on an invoice,
             1536      bill of sale, or similar document provided to the purchaser, the tax is imposed on the sum of:
             1537          (A) amounts paid or charged as a room cost for short-term lodging; and
             1538          (B) any additional amount, except for an amount described in Subsection (1)(i)(ii)(A)
             1539      or a tax under this chapter on an amount described in Subsection (1)(i)(ii)(A), paid or charged
             1540      for service as part of the transaction for the purchase of short-term lodging, regardless of how
             1541      the additional amount is characterized;
             1542          (j) amounts paid or charged for laundry or dry cleaning services;
             1543          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             1544      this state the tangible personal property is:
             1545          (i) stored;
             1546          (ii) used; or


             1547          (iii) otherwise consumed;
             1548          (l) amounts paid or charged for tangible personal property if within this state the
             1549      tangible personal property is:
             1550          (i) stored;
             1551          (ii) used; or
             1552          (iii) consumed; and
             1553          (m) amounts paid or charged for a sale:
             1554          (i) (A) of a product transferred electronically; or
             1555          (B) of a repair or renovation of a product transferred electronically; and
             1556          (ii) regardless of whether the sale provides:
             1557          (A) a right of permanent use of the product; or
             1558          (B) a right to use the product that is less than a permanent use, including a right:
             1559          (I) for a definite or specified length of time; and
             1560          (II) that terminates upon the occurrence of a condition.
             1561          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             1562      is imposed on a transaction described in Subsection (1) equal to the sum of:
             1563          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             1564          (A) 4.70%; and
             1565          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             1566      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             1567      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             1568      State Sales and Use Tax Act; and
             1569          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             1570      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             1571      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             1572      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             1573          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1574      transaction under this chapter other than this part.
             1575          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             1576      on a transaction described in Subsection (1)(d) equal to the sum of:
             1577          (i) a state tax imposed on the transaction at a tax rate of 2%; and


             1578          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1579      transaction under this chapter other than this part.
             1580          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             1581      on amounts paid or charged for food and food ingredients equal to the sum of:
             1582          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             1583      a tax rate of 1.75%; and
             1584          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             1585      amounts paid or charged for food and food ingredients under this chapter other than this part.
             1586          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
             1587      tangible personal property other than food and food ingredients, a state tax and a local tax is
             1588      imposed on the entire bundled transaction equal to the sum of:
             1589          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             1590          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             1591          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             1592      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             1593      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             1594      Additional State Sales and Use Tax Act; and
             1595          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             1596      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             1597      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             1598      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             1599          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             1600      described in Subsection (2)(a)(ii).
             1601          (ii) Subject to Subsection (2)(d)(iii), for a bundled transaction other than a bundled
             1602      transaction described in Subsection (2)(d)(i):
             1603          (A) if the sales price of the bundled transaction is attributable to tangible personal
             1604      property, a product, or a service that is subject to taxation under this chapter and tangible
             1605      personal property, a product, or service that is not subject to taxation under this chapter, the
             1606      entire bundled transaction is subject to taxation under this chapter unless:
             1607          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             1608      personal property, product, or service that is not subject to taxation under this chapter from the


             1609      books and records the seller keeps in the seller's regular course of business; or
             1610          (II) state or federal law provides otherwise; or
             1611          (B) if the sales price of a bundled transaction is attributable to two or more items of
             1612      tangible personal property, products, or services that are subject to taxation under this chapter
             1613      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             1614      higher tax rate unless:
             1615          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             1616      personal property, product, or service that is subject to taxation under this chapter at the lower
             1617      tax rate from the books and records the seller keeps in the seller's regular course of business; or
             1618          (II) state or federal law provides otherwise.
             1619          (iii) For purposes of Subsection (2)(d)(ii), books and records that a seller keeps in the
             1620      seller's regular course of business includes books and records the seller keeps in the regular
             1621      course of business for nontax purposes.
             1622          (e) Subject to Subsections (2)(f) and (g), a tax rate repeal or tax rate change for a tax
             1623      rate imposed under the following shall take effect on the first day of a calendar quarter:
             1624          (i) Subsection (2)(a)(i)(A);
             1625          (ii) Subsection (2)(b)(i);
             1626          (iii) Subsection (2)(c)(i); or
             1627          (iv) Subsection (2)(d)(i)(A)(I).
             1628          (f) (i) A tax rate increase shall take effect on the first day of the first billing period that
             1629      begins after the effective date of the tax rate increase if the billing period for the transaction
             1630      begins before the effective date of a tax rate increase imposed under:
             1631          (A) Subsection (2)(a)(i)(A);
             1632          (B) Subsection (2)(b)(i);
             1633          (C) Subsection (2)(c)(i); or
             1634          (D) Subsection (2)(d)(i)(A)(I).
             1635          (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             1636      billing period that began before the effective date of the repeal of the tax or the tax rate
             1637      decrease if the billing period for the transaction begins before the effective date of the repeal of
             1638      the tax or the tax rate decrease imposed under:
             1639          (A) Subsection (2)(a)(i)(A);


             1640          (B) Subsection (2)(b)(i);
             1641          (C) Subsection (2)(c)(i); or
             1642          (D) Subsection (2)(d)(i)(A)(I).
             1643          (g) (i) For a tax rate described in Subsection (2)(g)(ii), if a tax due on a catalogue sale
             1644      is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
             1645      or change in a tax rate takes effect:
             1646          (A) on the first day of a calendar quarter; and
             1647          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             1648          (ii) Subsection (2)(g)(i) applies to the tax rates described in the following:
             1649          (A) Subsection (2)(a)(i)(A);
             1650          (B) Subsection (2)(b)(i);
             1651          (C) Subsection (2)(c)(i); or
             1652          (D) Subsection (2)(d)(i)(A)(I).
             1653          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             1654      the commission may by rule define the term "catalogue sale."
             1655          (3) (a) The following state taxes shall be deposited into the General Fund:
             1656          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1657          (ii) the tax imposed by Subsection (2)(b)(i);
             1658          (iii) the tax imposed by Subsection (2)(c)(i); or
             1659          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             1660          (b) The following local taxes shall be distributed to a county, city, or town as provided
             1661      in this chapter:
             1662          (i) the tax imposed by Subsection (2)(a)(ii);
             1663          (ii) the tax imposed by Subsection (2)(b)(ii);
             1664          (iii) the tax imposed by Subsection (2)(c)(ii); and
             1665          (iv) the tax imposed by Subsection (2)(d)(i)(B).
             1666          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1667      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             1668      through (g):
             1669          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             1670          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and


             1671          (B) for the fiscal year; or
             1672          (ii) $17,500,000.
             1673          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             1674      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             1675      Department of Natural Resources to:
             1676          (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
             1677      protect sensitive plant and animal species; or
             1678          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             1679      act, to political subdivisions of the state to implement the measures described in Subsections
             1680      79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
             1681          (ii) Money transferred to the Department of Natural Resources under Subsection
             1682      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             1683      person to list or attempt to have listed a species as threatened or endangered under the
             1684      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             1685          (iii) At the end of each fiscal year:
             1686          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             1687      Conservation and Development Fund created in Section 73-10-24 ;
             1688          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             1689      Program Subaccount created in Section 73-10c-5 ; and
             1690          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             1691      Program Subaccount created in Section 73-10c-5 .
             1692          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             1693      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             1694      created in Section 4-18-6 .
             1695          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             1696      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             1697      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             1698      water rights.
             1699          (ii) At the end of each fiscal year:
             1700          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             1701      Conservation and Development Fund created in Section 73-10-24 ;


             1702          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             1703      Program Subaccount created in Section 73-10c-5 ; and
             1704          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             1705      Program Subaccount created in Section 73-10c-5 .
             1706          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             1707      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             1708      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             1709          (ii) In addition to the uses allowed of the Water Resources Conservation and
             1710      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             1711      Development Fund may also be used to:
             1712          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             1713      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             1714      quantifying surface and ground water resources and describing the hydrologic systems of an
             1715      area in sufficient detail so as to enable local and state resource managers to plan for and
             1716      accommodate growth in water use without jeopardizing the resource;
             1717          (B) fund state required dam safety improvements; and
             1718          (C) protect the state's interest in interstate water compact allocations, including the
             1719      hiring of technical and legal staff.
             1720          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             1721      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             1722      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             1723          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             1724      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             1725      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             1726          (i) provide for the installation and repair of collection, treatment, storage, and
             1727      distribution facilities for any public water system, as defined in Section 19-4-102 ;
             1728          (ii) develop underground sources of water, including springs and wells; and
             1729          (iii) develop surface water sources.
             1730          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1731      2006, the difference between the following amounts shall be expended as provided in this
             1732      Subsection (5), if that difference is greater than $1:


             1733          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             1734      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             1735          (ii) $17,500,000.
             1736          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             1737          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             1738      credits; and
             1739          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             1740      restoration.
             1741          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             1742      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             1743      created in Section 73-10-24 .
             1744          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             1745      remaining difference described in Subsection (5)(a) shall be:
             1746          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             1747      credits; and
             1748          (B) expended by the Division of Water Resources for cloud-seeding projects
             1749      authorized by Title 73, Chapter 15, Modification of Weather.
             1750          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             1751      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             1752      created in Section 73-10-24 .
             1753          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             1754      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             1755      Resources Conservation and Development Fund created in Section 73-10-24 for use by the
             1756      Division of Water Resources for:
             1757          (i) preconstruction costs:
             1758          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             1759      26, Bear River Development Act; and
             1760          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             1761      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             1762          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             1763      Chapter 26, Bear River Development Act;


             1764          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             1765      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             1766          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             1767      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             1768          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
             1769      Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
             1770      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             1771      incurred for employing additional technical staff for the administration of water rights.
             1772          (f) At the end of each fiscal year, any unexpended dedicated credits described in
             1773      Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
             1774      Fund created in Section 73-10-24 .
             1775          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             1776      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             1777      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             1778      the Transportation Fund created by Section 72-2-102 .
             1779          (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
             1780      beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
             1781      Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
             1782      under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
             1783      transactions under Subsection (1).
             1784          (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
             1785      have been paid off and the highway projects completed that are intended to be paid from
             1786      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             1787      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
             1788      Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
             1789      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             1790      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             1791          (8) (a) Notwithstanding Subsection (3)(a) and in addition to the amount deposited in
             1792      Subsection (7)(a), for the 2010-11 fiscal year only, the Division of Finance shall deposit into
             1793      the Centennial Highway Fund Restricted Account created by Section 72-2-118 a portion of the
             1794      taxes listed under Subsection (3)(a) equal to 1.93% of the revenues collected from the


             1795      following taxes, which represents a portion of the approximately 17% of sales and use tax
             1796      revenues generated annually by the sales and use tax on vehicles and vehicle-related products:
             1797          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1798          (ii) the tax imposed by Subsection (2)(b)(i);
             1799          (iii) the tax imposed by Subsection (2)(c)(i); and
             1800          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             1801          (b) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
             1802      Subsection (7)(a), and until Subsection (8)(c) applies, for the 2011-12 fiscal year only, the
             1803      Division of Finance shall deposit into the Centennial Highway Fund Restricted Account
             1804      created by Section 72-2-118 a portion of the taxes listed under Subsection (3)(a) equal to 8.3%
             1805      of the revenues collected from the following taxes, which represents a portion of the
             1806      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             1807      on vehicles and vehicle-related products:
             1808          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1809          (ii) the tax imposed by Subsection (2)(b)(i);
             1810          (iii) the tax imposed by Subsection (2)(c)(i); and
             1811          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             1812          (c) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
             1813      Subsection (7)(b), and until Subsection (8)(d) or (e) applies, when the highway general
             1814      obligation bonds have been paid off and the highway projects completed that are intended to be
             1815      paid from revenues deposited in the Centennial Highway Fund Restricted Account as
             1816      determined by the Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the
             1817      Division of Finance shall deposit into the Transportation Investment Fund of 2005 created by
             1818      Section 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to 8.3% of the
             1819      revenues collected from the following taxes, which represents a portion of the approximately
             1820      17% of sales and use tax revenues generated annually by the sales and use tax on vehicles and
             1821      vehicle-related products:
             1822          (i) the tax imposed by Subsection (2)(a)(i)(A);
             1823          (ii) the tax imposed by Subsection (2)(b)(i);
             1824          (iii) the tax imposed by Subsection (2)(c)(i); and
             1825          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).


             1826          (d) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
             1827      Subsection (7)(a), until Subsection (8)(e) applies, and subject to Subsection (8)(f), for a fiscal
             1828      year beginning on or after July 1, 2012, the Division of Finance shall deposit into the
             1829      Centennial Highway Fund Restricted Account created by Section 72-2-118 :
             1830          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
             1831      the revenues collected from the following taxes, which represents a portion of the
             1832      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             1833      on vehicles and vehicle-related products:
             1834          (A) the tax imposed by Subsection (2)(a)(i)(A);
             1835          (B) the tax imposed by Subsection (2)(b)(i);
             1836          (C) the tax imposed by Subsection (2)(c)(i); and
             1837          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
             1838          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             1839      current fiscal year from the sales and use taxes described in Subsections (8)(d)(i)(A) through
             1840      (D) that exceeds the amount collected from the sales and use taxes described in Subsections
             1841      (8)(d)(i)(A) through (D) in the 2010-11 fiscal year.
             1842          (e) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
             1843      Subsection (7)(b), and subject to Subsection (8)(f), when the highway general obligation bonds
             1844      have been paid off and the highway projects completed that are intended to be paid from
             1845      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             1846      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), for a fiscal year
             1847      beginning on or after July 1, 2012, the Division of Finance shall deposit into the Transportation
             1848      Investment Fund of 2005 created by Section 72-2-124 :
             1849          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
             1850      the revenues collected from the following taxes, which represents a portion of the
             1851      approximately 17% of sales and use tax revenues generated annually by the sales and use tax
             1852      on vehicles and vehicle-related products:
             1853          (A) the tax imposed by Subsection (2)(a)(i)(A);
             1854          (B) the tax imposed by Subsection (2)(b)(i);
             1855          (C) the tax imposed by Subsection (2)(c)(i); and
             1856          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus


             1857          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
             1858      current fiscal year from the sales and use taxes described in Subsections (8)(e)(i)(A) through
             1859      (D) that exceeds the amount collected from the sales and use taxes described in Subsections
             1860      (8)(e)(i)(A) through (D) in the 2010-11 fiscal year.
             1861          (f) (i) Subject to Subsections (8)(f)(ii) and (iii), in any fiscal year that the portion of the
             1862      sales and use taxes deposited under Subsection (8)(d) or (e) represents an amount that is a total
             1863      lower percentage of the sales and use taxes described in Subsections (8)(e)(i)(A) through (D)
             1864      generated in the current fiscal year than the total percentage of sales and use taxes deposited in
             1865      the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
             1866      (8)(d) or (e) equal to the product of:
             1867          (A) the total percentage of sales and use taxes deposited under Subsection (8)(d) or (e)
             1868      in the previous fiscal year; and
             1869          (B) the total sales and use tax revenue generated by the taxes described in Subsections
             1870      (8)(e)(i)(A) through (D) in the current fiscal year.
             1871          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
             1872      Subsection (8)(d) or (e) would exceed 17% of the revenues collected from the sales and use
             1873      taxes described in Subsections (8)(e)(i)(A) through (D) in the current fiscal year, the Division
             1874      of Finance shall deposit 17% of the revenues collected from the sales and use taxes described
             1875      in Subsections (8)(e)(i)(A) through (D) for the current fiscal year under Subsection (8)(d) or
             1876      (e).
             1877          (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
             1878      from the sales and use taxes described in Subsections (8)(e)(i)(A) through (D) was deposited
             1879      under Subsection (8)(d) or (e), the Division of Finance shall annually deposit 17% of the
             1880      revenues collected from the sales and use taxes described in Subsections (8)(e)(i)(A) through
             1881      (D) in the current fiscal year under Subsection (8)(d) or (e).
             1882          (9) (a) Notwithstanding Subsection (3)(a) and for the fiscal year 2008-09 only, the
             1883      Division of Finance shall deposit $55,000,000 of the revenues generated by the taxes listed
             1884      under Subsection (3)(a) into the Critical Highway Needs Fund created by Section 72-2-125 .
             1885          (b) Notwithstanding Subsection (3)(a) and until Subsection (9)(c) applies, for a fiscal
             1886      year beginning on or after July 1, 2009, the Division of Finance shall annually deposit
             1887      $90,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the


             1888      Critical Highway Needs Fund created by Section 72-2-125 .
             1889          (c) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
             1890      Subsections (7) and (8), when the general obligation bonds authorized by Section 63B-16-101
             1891      have been paid off and the highway projects completed that are included in the prioritized
             1892      project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
             1893      72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues
             1894      generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
             1895      of 2005 created by Section 72-2-124 .
             1896          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
             1897      2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
             1898      created by Section 9-4-1409 and expended as provided in Section 9-4-1409 .
             1899          (11) (a) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection
             1900      (11)(a)(ii), and until Subsection (11)(b) applies, beginning on January 1, 2009, the Division of
             1901      Finance shall deposit into the Critical Highway Needs Fund created by Section 72-2-125 the
             1902      amount of tax revenue generated by a .025% tax rate on the transactions described in
             1903      Subsection (1).
             1904          (ii) For purposes of Subsection (11)(a)(i), the Division of Finance may not deposit into
             1905      the Critical Highway Needs Fund any tax revenue generated by amounts paid or charged for
             1906      food and food ingredients, except for tax revenue generated by a bundled transaction
             1907      attributable to food and food ingredients and tangible personal property other than food and
             1908      food ingredients described in Subsection (2)[(e)](d).
             1909          (b) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b)(ii),
             1910      and in addition to any amounts deposited under Subsections (7), (9), and (10), when the general
             1911      obligation bonds authorized by Section 63B-16-101 have been paid off and the highway
             1912      projects completed that are included in the prioritized project list under Subsection 72-2-125 (4)
             1913      as determined in accordance with Subsection 72-2-125 (6), the Division of Finance shall
             1914      deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
             1915      amount of tax revenue generated by a .025% tax rate on the transactions described in
             1916      Subsection (1).
             1917          (ii) For purposes of Subsection (11)(b)(i), the Division of Finance may not deposit into
             1918      the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or


             1919      charged for food and food ingredients, except for tax revenue generated by a bundled
             1920      transaction attributable to food and food ingredients and tangible personal property other than
             1921      food and food ingredients described in Subsection (2)[(e)](d).
             1922          (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
             1923      (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
             1924      Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
             1925      .025% tax rate on the transactions described in Subsection (1) to be expended to address
             1926      chokepoints in construction management.
             1927          (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
             1928      the Transportation Fund any tax revenue generated by amounts paid or charged for food and
             1929      food ingredients, except for tax revenue generated by a bundled transaction attributable to food
             1930      and food ingredients and tangible personal property other than food and food ingredients
             1931      described in Subsection (2)[(e)](d).
             1932          Section 3. Section 59-12-104 is amended to read:
             1933           59-12-104. Exemptions.
             1934          The following sales and uses are exempt from the taxes imposed by this chapter:
             1935          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             1936      under Chapter 13, Motor and Special Fuel Tax Act;
             1937          (2) subject to Section 59-12-104.6 , sales to the state, its institutions, and its political
             1938      subdivisions; however, this exemption does not apply to sales of:
             1939          (a) construction materials except:
             1940          (i) construction materials purchased by or on behalf of institutions of the public
             1941      education system as defined in Utah Constitution Article X, Section 2, provided the
             1942      construction materials are clearly identified and segregated and installed or converted to real
             1943      property which is owned by institutions of the public education system; and
             1944          (ii) construction materials purchased by the state, its institutions, or its political
             1945      subdivisions which are installed or converted to real property by employees of the state, its
             1946      institutions, or its political subdivisions; or
             1947          (b) tangible personal property in connection with the construction, operation,
             1948      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             1949      providing additional project capacity, as defined in Section 11-13-103 ;


             1950          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             1951          (i) the proceeds of each sale do not exceed $1; and
             1952          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             1953      the cost of the item described in Subsection (3)(b) as goods consumed; and
             1954          (b) Subsection (3)(a) applies to:
             1955          (i) food and food ingredients; or
             1956          (ii) prepared food;
             1957          (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
             1958          (i) alcoholic beverages;
             1959          (ii) food and food ingredients; or
             1960          (iii) prepared food;
             1961          (b) sales of tangible personal property or a product transferred electronically:
             1962          (i) to a passenger;
             1963          (ii) by a commercial airline carrier; and
             1964          (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
             1965          (c) services related to Subsection (4)(a) or (b);
             1966          (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
             1967      and equipment:
             1968          (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
             1969      North American Industry Classification System of the federal Executive Office of the
             1970      President, Office of Management and Budget; and
             1971          (II) for:
             1972          (Aa) installation in an aircraft, including services relating to the installation of parts or
             1973      equipment in the aircraft;
             1974          (Bb) renovation of an aircraft; or
             1975          (Cc) repair of an aircraft; or
             1976          (B) for installation in an aircraft operated by a common carrier in interstate or foreign
             1977      commerce; or
             1978          (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
             1979      aircraft operated by a common carrier in interstate or foreign commerce; and
             1980          (b) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,


             1981      a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
             1982      refund:
             1983          (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
             1984          (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
             1985          (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
             1986      the sale prior to filing for the refund;
             1987          (iv) for sales and use taxes paid under this chapter on the sale;
             1988          (v) in accordance with Section 59-1-1410 ; and
             1989          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             1990      the person files for the refund on or before September 30, 2011;
             1991          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             1992      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             1993      exhibitor, distributor, or commercial television or radio broadcaster;
             1994          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             1995      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             1996      washing of tangible personal property;
             1997          (b) if a seller that sells at the same business location assisted cleaning or washing of
             1998      tangible personal property and cleaning or washing of tangible personal property that is not
             1999      assisted cleaning or washing of tangible personal property, the exemption described in
             2000      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             2001      or washing of the tangible personal property; and
             2002          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
             2003      Utah Administrative Rulemaking Act, the commission may make rules:
             2004          (i) governing the circumstances under which sales are at the same business location;
             2005      and
             2006          (ii) establishing the procedures and requirements for a seller to separately account for
             2007      sales of assisted cleaning or washing of tangible personal property;
             2008          (8) sales made to or by religious or charitable institutions in the conduct of their regular
             2009      religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
             2010      fulfilled;
             2011          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of


             2012      this state if the vehicle is:
             2013          (a) not registered in this state; and
             2014          (b) (i) not used in this state; or
             2015          (ii) used in this state:
             2016          (A) if the vehicle is not used to conduct business, for a time period that does not
             2017      exceed the longer of:
             2018          (I) 30 days in any calendar year; or
             2019          (II) the time period necessary to transport the vehicle to the borders of this state; or
             2020          (B) if the vehicle is used to conduct business, for the time period necessary to transport
             2021      the vehicle to the borders of this state;
             2022          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             2023          (i) the item is intended for human use; and
             2024          (ii) (A) a prescription was issued for the item; or
             2025          (B) the item was purchased by a hospital or other medical facility; and
             2026          (b) (i) Subsection (10)(a) applies to:
             2027          (A) a drug;
             2028          (B) a syringe; or
             2029          (C) a stoma supply; and
             2030          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2031      commission may by rule define the terms:
             2032          (A) "syringe"; or
             2033          (B) "stoma supply";
             2034          (11) sales or use of property, materials, or services used in the construction of or
             2035      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             2036          (12) (a) sales of an item described in Subsection (12)(c) served by:
             2037          (i) the following if the item described in Subsection (12)(c) is not available to the
             2038      general public:
             2039          (A) a church; or
             2040          (B) a charitable institution;
             2041          (ii) an institution of higher education if:
             2042          (A) the item described in Subsection (12)(c) is not available to the general public; or


             2043          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             2044      offered by the institution of higher education; or
             2045          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             2046          (i) a medical facility; or
             2047          (ii) a nursing facility; and
             2048          (c) Subsections (12)(a) and (b) apply to:
             2049          (i) food and food ingredients;
             2050          (ii) prepared food; or
             2051          (iii) alcoholic beverages;
             2052          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
             2053      or a product transferred electronically by a person:
             2054          (i) regardless of the number of transactions involving the sale of that tangible personal
             2055      property or product transferred electronically by that person; and
             2056          (ii) not regularly engaged in the business of selling that type of tangible personal
             2057      property or product transferred electronically;
             2058          (b) this Subsection (13) does not apply if:
             2059          (i) the sale is one of a series of sales of a character to indicate that the person is
             2060      regularly engaged in the business of selling that type of tangible personal property or product
             2061      transferred electronically;
             2062          (ii) the person holds that person out as regularly engaged in the business of selling that
             2063      type of tangible personal property or product transferred electronically;
             2064          (iii) the person sells an item of tangible personal property or product transferred
             2065      electronically that the person purchased as a sale that is exempt under Subsection (25); or
             2066          (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
             2067      this state in which case the tax is based upon:
             2068          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
             2069      sold; or
             2070          (B) in the absence of a bill of sale or other written evidence of value, the fair market
             2071      value of the vehicle or vessel being sold at the time of the sale as determined by the
             2072      commission; and
             2073          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the


             2074      commission shall make rules establishing the circumstances under which:
             2075          (i) a person is regularly engaged in the business of selling a type of tangible personal
             2076      property or product transferred electronically;
             2077          (ii) a sale of tangible personal property or a product transferred electronically is one of
             2078      a series of sales of a character to indicate that a person is regularly engaged in the business of
             2079      selling that type of tangible personal property or product transferred electronically; or
             2080          (iii) a person holds that person out as regularly engaged in the business of selling a type
             2081      of tangible personal property or product transferred electronically;
             2082          (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
             2083      July 1, 2006, for a purchase or lease by a manufacturing facility except for a cogeneration
             2084      facility, of the following:
             2085          (i) machinery and equipment that:
             2086          (A) are used:
             2087          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             2088      recycler described in Subsection 59-12-102 (55)(b):
             2089          (Aa) in the manufacturing process;
             2090          (Bb) to manufacture an item sold as tangible personal property; and
             2091          (Cc) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             2092      (14)(a)(i)(A)(I) in the state; or
             2093          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             2094      59-12-102 (55)(b):
             2095          (Aa) to process an item sold as tangible personal property; and
             2096          (Bb) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             2097      (14)(a)(i)(A)(II) in the state; and
             2098          (B) have an economic life of three or more years; and
             2099          (ii) normal operating repair or replacement parts that:
             2100          (A) have an economic life of three or more years; and
             2101          (B) are used:
             2102          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             2103      recycler described in Subsection 59-12-102 (55)(b):
             2104          (Aa) in the manufacturing process; and


             2105          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(I) in the
             2106      state; or
             2107          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             2108      59-12-102 (55)(b):
             2109          (Aa) to process an item sold as tangible personal property; and
             2110          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(II) in the
             2111      state;
             2112          (b) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
             2113      manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
             2114      of the following:
             2115          (i) machinery and equipment that:
             2116          (A) are used:
             2117          (I) in the manufacturing process;
             2118          (II) to manufacture an item sold as tangible personal property; and
             2119          (III) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             2120      (14)(b) in the state; and
             2121          (B) have an economic life of three or more years; and
             2122          (ii) normal operating repair or replacement parts that:
             2123          (A) are used:
             2124          (I) in the manufacturing process; and
             2125          (II) in a manufacturing facility described in this Subsection (14)(b) in the state; and
             2126          (B) have an economic life of three or more years;
             2127          (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
             2128      by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
             2129      NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
             2130      Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
             2131      of the 2002 North American Industry Classification System of the federal Executive Office of
             2132      the President, Office of Management and Budget, of the following:
             2133          (i) machinery and equipment that:
             2134          (A) are used:
             2135          (I) (Aa) in the production process, other than the production of real property; or


             2136          (Bb) in research and development; and
             2137          (II) beginning on July 1, 2009, in an establishment described in this Subsection (14)(c)
             2138      in the state; and
             2139          (B) have an economic life of three or more years; and
             2140          (ii) normal operating repair or replacement parts that:
             2141          (A) have an economic life of three or more years; and
             2142          (B) are used in:
             2143          (I) (Aa) the production process, except for the production of real property; and
             2144          (Bb) an establishment described in this Subsection (14)(c) in the state; or
             2145          (II) (Aa) research and development; and
             2146          (Bb) in an establishment described in this Subsection (14)(c) in the state;
             2147          (d) (i) amounts paid or charged for a purchase or lease made on or after July 1, 2010,
             2148      but on or before June 30, 2014, by an establishment described in NAICS Code 518112, Web
             2149      Search Portals, of the 2002 North American Industry Classification System of the federal
             2150      Executive Office of the President, Office of Management and Budget, of the following:
             2151          (A) machinery and equipment that:
             2152          (I) are used in the operation of the web search portal;
             2153          (II) have an economic life of three or more years; and
             2154          (III) are used in a new or expanding establishment described in this Subsection (14)(d)
             2155      in the state; and
             2156          (B) normal operating repair or replacement parts that:
             2157          (I) are used in the operation of the web search portal;
             2158          (II) have an economic life of three or more years; and
             2159          (III) are used in a new or expanding establishment described in this Subsection (14)(d)
             2160      in the state; or
             2161          (ii) amounts paid or charged for a purchase or lease made on or after July 1, 2014, by
             2162      an establishment described in NAICS Code 518112, Web Search Portals, of the 2002 North
             2163      American Industry Classification System of the federal Executive Office of the President,
             2164      Office of Management and Budget, of the following:
             2165          (A) machinery and equipment that:
             2166          (I) are used in the operation of the web search portal; and


             2167          (II) have an economic life of three or more years; and
             2168          (B) normal operating repair or replacement parts that:
             2169          (I) are used in the operation of the web search portal; and
             2170          (II) have an economic life of three or more years;
             2171          (e) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,
             2172      Utah Administrative Rulemaking Act, the commission:
             2173          (i) shall by rule define the term "establishment"; and
             2174          (ii) may by rule define what constitutes:
             2175          (A) processing an item sold as tangible personal property;
             2176          (B) the production process, except for the production of real property;
             2177          (C) research and development; or
             2178          (D) a new or expanding establishment described in Subsection (14)(d) in the state; and
             2179          (f) on or before October 1, 2011, and every five years after October 1, 2011, the
             2180      commission shall:
             2181          (i) review the exemptions described in this Subsection (14) and make
             2182      recommendations to the Revenue and Taxation Interim Committee concerning whether the
             2183      exemptions should be continued, modified, or repealed; and
             2184          (ii) include in its report:
             2185          (A) an estimate of the cost of the exemptions;
             2186          (B) the purpose and effectiveness of the exemptions; and
             2187          (C) the benefits of the exemptions to the state;
             2188          (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
             2189          (i) tooling;
             2190          (ii) special tooling;
             2191          (iii) support equipment;
             2192          (iv) special test equipment; or
             2193          (v) parts used in the repairs or renovations of tooling or equipment described in
             2194      Subsections (15)(a)(i) through (iv); and
             2195          (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
             2196          (i) the tooling, equipment, or parts are used or consumed exclusively in the
             2197      performance of any aerospace or electronics industry contract with the United States


             2198      government or any subcontract under that contract; and
             2199          (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
             2200      title to the tooling, equipment, or parts is vested in the United States government as evidenced
             2201      by:
             2202          (A) a government identification tag placed on the tooling, equipment, or parts; or
             2203          (B) listing on a government-approved property record if placing a government
             2204      identification tag on the tooling, equipment, or parts is impractical;
             2205          (16) sales of newspapers or newspaper subscriptions;
             2206          (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
             2207      product transferred electronically traded in as full or part payment of the purchase price, except
             2208      that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
             2209      trade-ins are limited to other vehicles only, and the tax is based upon:
             2210          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
             2211      vehicle being traded in; or
             2212          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
             2213      fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
             2214      commission; and
             2215          (b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
             2216      following items of tangible personal property or products transferred electronically traded in as
             2217      full or part payment of the purchase price:
             2218          (i) money;
             2219          (ii) electricity;
             2220          (iii) water;
             2221          (iv) gas; or
             2222          (v) steam;
             2223          (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
             2224      or a product transferred electronically used or consumed primarily and directly in farming
             2225      operations, regardless of whether the tangible personal property or product transferred
             2226      electronically:
             2227          (A) becomes part of real estate; or
             2228          (B) is installed by a:


             2229          (I) farmer;
             2230          (II) contractor; or
             2231          (III) subcontractor; or
             2232          (ii) sales of parts used in the repairs or renovations of tangible personal property or a
             2233      product transferred electronically if the tangible personal property or product transferred
             2234      electronically is exempt under Subsection (18)(a)(i); and
             2235          (b) notwithstanding Subsection (18)(a), amounts paid or charged for the following are
             2236      subject to the taxes imposed by this chapter:
             2237          (i) (A) subject to Subsection (18)(b)(i)(B), the following if used in a manner that is
             2238      incidental to farming:
             2239          (I) machinery;
             2240          (II) equipment;
             2241          (III) materials; or
             2242          (IV) supplies; and
             2243          (B) tangible personal property that is considered to be used in a manner that is
             2244      incidental to farming includes:
             2245          (I) hand tools; or
             2246          (II) maintenance and janitorial equipment and supplies;
             2247          (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
             2248      transferred electronically if the tangible personal property or product transferred electronically
             2249      is used in an activity other than farming; and
             2250          (B) tangible personal property or a product transferred electronically that is considered
             2251      to be used in an activity other than farming includes:
             2252          (I) office equipment and supplies; or
             2253          (II) equipment and supplies used in:
             2254          (Aa) the sale or distribution of farm products;
             2255          (Bb) research; or
             2256          (Cc) transportation; or
             2257          (iii) a vehicle required to be registered by the laws of this state during the period
             2258      ending two years after the date of the vehicle's purchase;
             2259          (19) sales of hay;


             2260          (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
             2261      garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
             2262      garden, farm, or other agricultural produce is sold by:
             2263          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
             2264      agricultural produce;
             2265          (b) an employee of the producer described in Subsection (20)(a); or
             2266          (c) a member of the immediate family of the producer described in Subsection (20)(a);
             2267          (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
             2268      under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
             2269          (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
             2270      nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
             2271      wholesaler, or retailer for use in packaging tangible personal property to be sold by that
             2272      manufacturer, processor, wholesaler, or retailer;
             2273          (23) a product stored in the state for resale;
             2274          (24) (a) purchases of a product if:
             2275          (i) the product is:
             2276          (A) purchased outside of this state;
             2277          (B) brought into this state:
             2278          (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
             2279          (II) by a nonresident person who is not living or working in this state at the time of the
             2280      purchase;
             2281          (C) used for the personal use or enjoyment of the nonresident person described in
             2282      Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
             2283          (D) not used in conducting business in this state; and
             2284          (ii) for:
             2285          (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
             2286      the product for a purpose for which the product is designed occurs outside of this state;
             2287          (B) a boat, the boat is registered outside of this state; or
             2288          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             2289      outside of this state;
             2290          (b) the exemption provided for in Subsection (24)(a) does not apply to:


             2291          (i) a lease or rental of a product; or
             2292          (ii) a sale of a vehicle exempt under Subsection (33); and
             2293          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             2294      purposes of Subsection (24)(a), the commission may by rule define what constitutes the
             2295      following:
             2296          (i) conducting business in this state if that phrase has the same meaning in this
             2297      Subsection (24) as in Subsection (63);
             2298          (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
             2299      as in Subsection (63); or
             2300          (iii) a purpose for which a product is designed if that phrase has the same meaning in
             2301      this Subsection (24) as in Subsection (63);
             2302          (25) a product purchased for resale in this state, in the regular course of business, either
             2303      in its original form or as an ingredient or component part of a manufactured or compounded
             2304      product;
             2305          (26) a product upon which a sales or use tax was paid to some other state, or one of its
             2306      subdivisions, except that the state shall be paid any difference between the tax paid and the tax
             2307      imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
             2308      the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
             2309      Act;
             2310          (27) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a
             2311      person for use in compounding a service taxable under the subsections;
             2312          (28) purchases made in accordance with the special supplemental nutrition program for
             2313      women, infants, and children established in 42 U.S.C. Sec. 1786;
             2314          (29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
             2315      refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
             2316      of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification
             2317      Manual of the federal Executive Office of the President, Office of Management and Budget;
             2318          (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
             2319      Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
             2320          (a) not registered in this state; and
             2321          (b) (i) not used in this state; or


             2322          (ii) used in this state:
             2323          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
             2324      time period that does not exceed the longer of:
             2325          (I) 30 days in any calendar year; or
             2326          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
             2327      the borders of this state; or
             2328          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
             2329      period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
             2330      state;
             2331          (31) sales of aircraft manufactured in Utah;
             2332          (32) amounts paid for the purchase of telecommunications service for purposes of
             2333      providing telecommunications service;
             2334          (33) sales, leases, or uses of the following:
             2335          (a) a vehicle by an authorized carrier; or
             2336          (b) tangible personal property that is installed on a vehicle:
             2337          (i) sold or leased to or used by an authorized carrier; and
             2338          (ii) before the vehicle is placed in service for the first time;
             2339          (34) (a) 45% of the sales price of any new manufactured home; and
             2340          (b) 100% of the sales price of any used manufactured home;
             2341          (35) sales relating to schools and fundraising sales;
             2342          (36) sales or rentals of durable medical equipment if:
             2343          (a) a person presents a prescription for the durable medical equipment; and
             2344          (b) the durable medical equipment is used for home use only;
             2345          (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
             2346      Section 72-11-102 ; and
             2347          (b) the commission shall by rule determine the method for calculating sales exempt
             2348      under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
             2349          (38) sales to a ski resort of:
             2350          (a) snowmaking equipment;
             2351          (b) ski slope grooming equipment;
             2352          (c) passenger ropeways as defined in Section 72-11-102 ; or


             2353          (d) parts used in the repairs or renovations of equipment or passenger ropeways
             2354      described in Subsections (38)(a) through (c);
             2355          (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
             2356          (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
             2357      amusement, entertainment, or recreation an unassisted amusement device as defined in Section
             2358      59-12-102 ;
             2359          (b) if a seller that sells or rents at the same business location the right to use or operate
             2360      for amusement, entertainment, or recreation one or more unassisted amusement devices and
             2361      one or more assisted amusement devices, the exemption described in Subsection (40)(a)
             2362      applies if the seller separately accounts for the sales or rentals of the right to use or operate for
             2363      amusement, entertainment, or recreation for the assisted amusement devices; and
             2364          (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
             2365      Utah Administrative Rulemaking Act, the commission may make rules:
             2366          (i) governing the circumstances under which sales are at the same business location;
             2367      and
             2368          (ii) establishing the procedures and requirements for a seller to separately account for
             2369      the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
             2370      assisted amusement devices;
             2371          (41) (a) sales of photocopies by:
             2372          (i) a governmental entity; or
             2373          (ii) an entity within the state system of public education, including:
             2374          (A) a school; or
             2375          (B) the State Board of Education; or
             2376          (b) sales of publications by a governmental entity;
             2377          (42) amounts paid for admission to an athletic event at an institution of higher
             2378      education that is subject to the provisions of Title IX of the Education Amendments of 1972,
             2379      20 U.S.C. Sec. 1681 et seq.;
             2380          (43) (a) sales made to or by:
             2381          (i) an area agency on aging; or
             2382          (ii) a senior citizen center owned by a county, city, or town; or
             2383          (b) sales made by a senior citizen center that contracts with an area agency on aging;


             2384          (44) sales or leases of semiconductor fabricating, processing, research, or development
             2385      materials regardless of whether the semiconductor fabricating, processing, research, or
             2386      development materials:
             2387          (a) actually come into contact with a semiconductor; or
             2388          (b) ultimately become incorporated into real property;
             2389          (45) [an amount paid by or charged to a purchaser for accommodations and services
             2390      described in Subsection 59-12-103 (1)(i) to the extent the amount is] short-term lodging exempt
             2391      under Section 59-12-104.2 ;
             2392          (46) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
             2393      sports event registration certificate in accordance with Section 41-3-306 for the event period
             2394      specified on the temporary sports event registration certificate;
             2395          (47) sales or uses of electricity, if the sales or uses are:
             2396          (a) made under a tariff adopted by the Public Service Commission of Utah only for
             2397      purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
             2398      source, as designated in the tariff by the Public Service Commission of Utah; and
             2399          (b) for an amount of electricity that is:
             2400          (i) unrelated to the amount of electricity used by the person purchasing the electricity
             2401      under the tariff described in Subsection (47)(a); and
             2402          (ii) equivalent to the number of kilowatthours specified in the tariff described in
             2403      Subsection (47)(a) that may be purchased under the tariff described in Subsection (47)(a);
             2404          (48) sales or rentals of mobility enhancing equipment if a person presents a
             2405      prescription for the mobility enhancing equipment;
             2406          (49) sales of water in a:
             2407          (a) pipe;
             2408          (b) conduit;
             2409          (c) ditch; or
             2410          (d) reservoir;
             2411          (50) sales of currency or coinage that constitute legal tender of the United States or of a
             2412      foreign nation;
             2413          (51) (a) sales of an item described in Subsection (51)(b) if the item:
             2414          (i) does not constitute legal tender of any nation; and


             2415          (ii) has a gold, silver, or platinum content of 80% or more; and
             2416          (b) Subsection (51)(a) applies to a gold, silver, or platinum:
             2417          (i) ingot;
             2418          (ii) bar;
             2419          (iii) medallion; or
             2420          (iv) decorative coin;
             2421          (52) amounts paid on a sale-leaseback transaction;
             2422          (53) sales of a prosthetic device:
             2423          (a) for use on or in a human; and
             2424          (b) (i) for which a prescription is required; or
             2425          (ii) if the prosthetic device is purchased by a hospital or other medical facility;
             2426          (54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
             2427      machinery or equipment by an establishment described in Subsection (54)(c) if the machinery
             2428      or equipment is primarily used in the production or postproduction of the following media for
             2429      commercial distribution:
             2430          (i) a motion picture;
             2431          (ii) a television program;
             2432          (iii) a movie made for television;
             2433          (iv) a music video;
             2434          (v) a commercial;
             2435          (vi) a documentary; or
             2436          (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
             2437      commission by administrative rule made in accordance with Subsection (54)(d); or
             2438          (b) notwithstanding Subsection (54)(a), purchases, leases, or rentals of machinery or
             2439      equipment by an establishment described in Subsection (54)(c) that is used for the production
             2440      or postproduction of the following are subject to the taxes imposed by this chapter:
             2441          (i) a live musical performance;
             2442          (ii) a live news program; or
             2443          (iii) a live sporting event;
             2444          (c) the following establishments listed in the 1997 North American Industry
             2445      Classification System of the federal Executive Office of the President, Office of Management


             2446      and Budget, apply to Subsections (54)(a) and (b):
             2447          (i) NAICS Code 512110; or
             2448          (ii) NAICS Code 51219; and
             2449          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2450      commission may by rule:
             2451          (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
             2452      or
             2453          (ii) define:
             2454          (A) "commercial distribution";
             2455          (B) "live musical performance";
             2456          (C) "live news program"; or
             2457          (D) "live sporting event";
             2458          (55) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
             2459      on or before June 30, 2019, of machinery or equipment that:
             2460          (i) is leased or purchased for or by a facility that:
             2461          (A) is a renewable energy production facility;
             2462          (B) is located in the state; and
             2463          (C) (I) becomes operational on or after July 1, 2004; or
             2464          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             2465      2004, as a result of the use of the machinery or equipment;
             2466          (ii) has an economic life of five or more years; and
             2467          (iii) is used to make the facility or the increase in capacity of the facility described in
             2468      Subsection (55)(a)(i) operational up to the point of interconnection with an existing
             2469      transmission grid including:
             2470          (A) a wind turbine;
             2471          (B) generating equipment;
             2472          (C) a control and monitoring system;
             2473          (D) a power line;
             2474          (E) substation equipment;
             2475          (F) lighting;
             2476          (G) fencing;


             2477          (H) pipes; or
             2478          (I) other equipment used for locating a power line or pole; and
             2479          (b) this Subsection (55) does not apply to:
             2480          (i) machinery or equipment used in construction of:
             2481          (A) a new renewable energy production facility; or
             2482          (B) the increase in the capacity of a renewable energy production facility;
             2483          (ii) contracted services required for construction and routine maintenance activities;
             2484      and
             2485          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             2486      of the facility described in Subsection (55)(a)(i)(C)(II), machinery or equipment used or
             2487      acquired after:
             2488          (A) the renewable energy production facility described in Subsection (55)(a)(i) is
             2489      operational as described in Subsection (55)(a)(iii); or
             2490          (B) the increased capacity described in Subsection (55)(a)(i) is operational as described
             2491      in Subsection (55)(a)(iii);
             2492          (56) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
             2493      on or before June 30, 2019, of machinery or equipment that:
             2494          (i) is leased or purchased for or by a facility that:
             2495          (A) is a waste energy production facility;
             2496          (B) is located in the state; and
             2497          (C) (I) becomes operational on or after July 1, 2004; or
             2498          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             2499      2004, as a result of the use of the machinery or equipment;
             2500          (ii) has an economic life of five or more years; and
             2501          (iii) is used to make the facility or the increase in capacity of the facility described in
             2502      Subsection (56)(a)(i) operational up to the point of interconnection with an existing
             2503      transmission grid including:
             2504          (A) generating equipment;
             2505          (B) a control and monitoring system;
             2506          (C) a power line;
             2507          (D) substation equipment;


             2508          (E) lighting;
             2509          (F) fencing;
             2510          (G) pipes; or
             2511          (H) other equipment used for locating a power line or pole; and
             2512          (b) this Subsection (56) does not apply to:
             2513          (i) machinery or equipment used in construction of:
             2514          (A) a new waste energy facility; or
             2515          (B) the increase in the capacity of a waste energy facility;
             2516          (ii) contracted services required for construction and routine maintenance activities;
             2517      and
             2518          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             2519      described in Subsection (56)(a)(i)(C)(II), machinery or equipment used or acquired after:
             2520          (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
             2521      described in Subsection (56)(a)(iii); or
             2522          (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
             2523      in Subsection (56)(a)(iii);
             2524          (57) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
             2525      or before June 30, 2019, of machinery or equipment that:
             2526          (i) is leased or purchased for or by a facility that:
             2527          (A) is located in the state;
             2528          (B) produces fuel from biomass energy including:
             2529          (I) methanol; or
             2530          (II) ethanol; and
             2531          (C) (I) becomes operational on or after July 1, 2004; or
             2532          (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as
             2533      a result of the installation of the machinery or equipment;
             2534          (ii) has an economic life of five or more years; and
             2535          (iii) is installed on the facility described in Subsection (57)(a)(i);
             2536          (b) this Subsection (57) does not apply to:
             2537          (i) machinery or equipment used in construction of:
             2538          (A) a new facility described in Subsection (57)(a)(i); or


             2539          (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
             2540          (ii) contracted services required for construction and routine maintenance activities;
             2541      and
             2542          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             2543      described in Subsection (57)(a)(i)(C)(II), machinery or equipment used or acquired after:
             2544          (A) the facility described in Subsection (57)(a)(i) is operational; or
             2545          (B) the increased capacity described in Subsection (57)(a)(i) is operational;
             2546          (58) (a) subject to Subsection (58)(b) or (c), sales of tangible personal property or a
             2547      product transferred electronically to a person within this state if that tangible personal property
             2548      or product transferred electronically is subsequently shipped outside the state and incorporated
             2549      pursuant to contract into and becomes a part of real property located outside of this state;
             2550          (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
             2551      state or political entity to which the tangible personal property is shipped imposes a sales, use,
             2552      gross receipts, or other similar transaction excise tax on the transaction against which the other
             2553      state or political entity allows a credit for sales and use taxes imposed by this chapter; and
             2554          (c) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             2555      a person may claim the exemption allowed by this Subsection (58) for a sale by filing for a
             2556      refund:
             2557          (i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
             2558          (ii) as if this Subsection (58) as in effect on July 1, 2008, were in effect on the day on
             2559      which the sale is made;
             2560          (iii) if the person did not claim the exemption allowed by this Subsection (58) for the
             2561      sale prior to filing for the refund;
             2562          (iv) for sales and use taxes paid under this chapter on the sale;
             2563          (v) in accordance with Section 59-1-1410 ; and
             2564          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             2565      the person files for the refund on or before June 30, 2011;
             2566          (59) purchases:
             2567          (a) of one or more of the following items in printed or electronic format:
             2568          (i) a list containing information that includes one or more:
             2569          (A) names; or


             2570          (B) addresses; or
             2571          (ii) a database containing information that includes one or more:
             2572          (A) names; or
             2573          (B) addresses; and
             2574          (b) used to send direct mail;
             2575          (60) redemptions or repurchases of a product by a person if that product was:
             2576          (a) delivered to a pawnbroker as part of a pawn transaction; and
             2577          (b) redeemed or repurchased within the time period established in a written agreement
             2578      between the person and the pawnbroker for redeeming or repurchasing the product;
             2579          (61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
             2580          (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
             2581      and
             2582          (ii) has a useful economic life of one or more years; and
             2583          (b) the following apply to Subsection (61)(a):
             2584          (i) telecommunications enabling or facilitating equipment, machinery, or software;
             2585          (ii) telecommunications equipment, machinery, or software required for 911 service;
             2586          (iii) telecommunications maintenance or repair equipment, machinery, or software;
             2587          (iv) telecommunications switching or routing equipment, machinery, or software; or
             2588          (v) telecommunications transmission equipment, machinery, or software;
             2589          (62) (a) beginning on July 1, 2006, and ending on June 30, 2016, purchases of tangible
             2590      personal property or a product transferred electronically that are used in the research and
             2591      development of coal-to-liquids, oil shale, or tar sands technology; and
             2592          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2593      commission may, for purposes of Subsection (62)(a), make rules defining what constitutes
             2594      purchases of tangible personal property or a product transferred electronically that are used in
             2595      the research and development of coal-to-liquids, oil shale, and tar sands technology;
             2596          (63) (a) purchases of tangible personal property or a product transferred electronically
             2597      if:
             2598          (i) the tangible personal property or product transferred electronically is:
             2599          (A) purchased outside of this state;
             2600          (B) brought into this state at any time after the purchase described in Subsection


             2601      (63)(a)(i)(A); and
             2602          (C) used in conducting business in this state; and
             2603          (ii) for:
             2604          (A) tangible personal property or a product transferred electronically other than the
             2605      tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property
             2606      for a purpose for which the property is designed occurs outside of this state; or
             2607          (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             2608      outside of this state;
             2609          (b) the exemption provided for in Subsection (63)(a) does not apply to:
             2610          (i) a lease or rental of tangible personal property or a product transferred electronically;
             2611      or
             2612          (ii) a sale of a vehicle exempt under Subsection (33); and
             2613          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             2614      purposes of Subsection (63)(a), the commission may by rule define what constitutes the
             2615      following:
             2616          (i) conducting business in this state if that phrase has the same meaning in this
             2617      Subsection (63) as in Subsection (24);
             2618          (ii) the first use of tangible personal property or a product transferred electronically if
             2619      that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
             2620          (iii) a purpose for which tangible personal property or a product transferred
             2621      electronically is designed if that phrase has the same meaning in this Subsection (63) as in
             2622      Subsection (24);
             2623          (64) sales of disposable home medical equipment or supplies if:
             2624          (a) a person presents a prescription for the disposable home medical equipment or
             2625      supplies;
             2626          (b) the disposable home medical equipment or supplies are used exclusively by the
             2627      person to whom the prescription described in Subsection (64)(a) is issued; and
             2628          (c) the disposable home medical equipment and supplies are listed as eligible for
             2629      payment under:
             2630          (i) Title XVIII, federal Social Security Act; or
             2631          (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;


             2632          (65) sales:
             2633          (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
             2634      District Act; or
             2635          (b) of tangible personal property to a subcontractor of a public transit district, if the
             2636      tangible personal property is:
             2637          (i) clearly identified; and
             2638          (ii) installed or converted to real property owned by the public transit district;
             2639          (66) sales of construction materials:
             2640          (a) purchased on or after July 1, 2010;
             2641          (b) purchased by, on behalf of, or for the benefit of an international airport:
             2642          (i) located within a county of the first class; and
             2643          (ii) that has a United States customs office on its premises; and
             2644          (c) if the construction materials are:
             2645          (i) clearly identified;
             2646          (ii) segregated; and
             2647          (iii) installed or converted to real property:
             2648          (A) owned or operated by the international airport described in Subsection (66)(b); and
             2649          (B) located at the international airport described in Subsection (66)(b);
             2650          (67) sales of construction materials:
             2651          (a) purchased on or after July 1, 2008;
             2652          (b) purchased by, on behalf of, or for the benefit of a new airport:
             2653          (i) located within a county of the second class; and
             2654          (ii) that is owned or operated by a city in which an airline as defined in Section
             2655      59-2-102 is headquartered; and
             2656          (c) if the construction materials are:
             2657          (i) clearly identified;
             2658          (ii) segregated; and
             2659          (iii) installed or converted to real property:
             2660          (A) owned or operated by the new airport described in Subsection (67)(b);
             2661          (B) located at the new airport described in Subsection (67)(b); and
             2662          (C) as part of the construction of the new airport described in Subsection (67)(b);


             2663          (68) sales of fuel to a common carrier that is a railroad for use in a locomotive engine;
             2664          (69) purchases and sales described in Section 63H-4-111 ;
             2665          (70) (a) sales of tangible personal property to an aircraft maintenance, repair, and
             2666      overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
             2667      a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
             2668      lists a state or country other than this state as the location of registry of the fixed wing turbine
             2669      powered aircraft; or
             2670          (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
             2671      provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
             2672      a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
             2673      lists a state or country other than this state as the location of registry of the fixed wing turbine
             2674      powered aircraft;
             2675          (71) subject to Section 59-12-104.4 , sales of a textbook for a higher education course:
             2676          (a) to a person admitted to an institution of higher education; and
             2677          (b) by a seller, other than a bookstore owned by an institution of higher education, if
             2678      51% or more of that seller's sales revenue for the previous calendar quarter are sales of a
             2679      textbook for a higher education course; and
             2680          (72) a license fee or tax a municipality imposes in accordance with Subsection
             2681      10-1-203 (5) on a purchaser from a business for which the municipality provides an enhanced
             2682      level of municipal services.
             2683          Section 4. Section 59-12-104.2 is amended to read:
             2684           59-12-104.2. Exemption for short-term lodging taxed by the Navajo Nation.
             2685          (1) As used in this section "tribal taxing area" means the geographical area that:
             2686          (a) is subject to the taxing authority of the Navajo Nation; and
             2687          (b) consists of:
             2688          (i) notwithstanding the issuance of a patent, all land:
             2689          (A) within the limits of an Indian reservation under the jurisdiction of the federal
             2690      government; and
             2691          (B) including any rights-of-way running through the reservation; and
             2692          (ii) all Indian allotments the Indian titles to which have not been extinguished,
             2693      including any rights-of-way running through an Indian allotment.


             2694          (2) (a) Beginning July 1, 2001, amounts [paid by or charged to a purchaser for
             2695      accommodations and services described in] subject to taxation as short-term lodging under
             2696      Subsection 59-12-103 (1)(i) are exempt from the tax imposed by Subsection
             2697      59-12-103 (2)(a)(i)(A) or (2)(d)(i)(A)(I) to the extent permitted under Subsection (2)(b) if:
             2698          (i) the [accommodations and services described in Subsection 59-12-103 (1)(i) are]
             2699      short-term lodging is provided within:
             2700          (A) the state; and
             2701          (B) a tribal taxing area;
             2702          (ii) the Navajo Nation imposes and collects a tax on the amounts paid by or charged to
             2703      the purchaser for the [accommodations and services described in Subsection 59-12-103 (1)(i)]
             2704      short-term lodging;
             2705          (iii) the Navajo Nation imposes the tax described in Subsection (2)(a)(ii) without
             2706      regard to whether or not the purchaser that pays or is charged for the [accommodations and
             2707      services] short-term lodging is an enrolled member of the Navajo Nation; and
             2708          (iv) the requirements of Subsection (4) are met.
             2709          (b) If but for Subsection (2)(a) the amounts paid by or charged to a purchaser for
             2710      [accommodations and services] short-term lodging described in Subsection (2)(a) are subject to
             2711      a tax imposed by Subsection 59-12-103 (2)(a)(i)(A) or (2)(d)(i)(A)(I):
             2712          (i) the seller shall collect and pay to the state the difference described in Subsection (3)
             2713      if that difference is greater than $0; and
             2714          (ii) a person may not require the state to provide a refund, a credit, or similar tax relief
             2715      if the difference described in Subsection (3) is equal to or less than $0.
             2716          (3) The difference described in Subsection (2)(b) is equal to the difference between:
             2717          (a) the amount of tax imposed by Subsection 59-12-103 (2)(a)(i)(A) or (2)(d)(i)(A)(I)
             2718      on the amounts [paid by or charged to a purchaser for accommodations and services described
             2719      in Subsection 59-12-103 (1)(i)] subject to taxation as short-term lodging under Subsection
             2720      59-12-103 (1)(i); [less] and
             2721          (b) the tax imposed and collected by the Navajo Nation on the amounts paid by or
             2722      charged to a purchaser for the [accommodations and services described in Subsection
             2723      59-12-103 (1)(i)] short-term lodging.
             2724          (4) (a) If, on or after July 1, 2001, the Navajo Nation changes the tax rate of a tax


             2725      imposed on amounts paid by or charged to a purchaser for [accommodations and services
             2726      described in Subsection 59-12-103 (1)(i)] short-term lodging, any change in the amount of the
             2727      exemption under Subsection (2) as a result of the change in the tax rate is not effective until the
             2728      first day of the calendar quarter after a 90-day period beginning on the date the commission
             2729      receives notice meeting the requirements of Subsection (4)(b) from the Navajo Nation.
             2730          (b) The notice described in Subsection (4)(a) shall state:
             2731          (i) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
             2732      amounts paid by or charged to a purchaser for [accommodations and services described in
             2733      Subsection 59-12-103 (1)(i)] short-term lodging;
             2734          (ii) the effective date of the rate change on the tax described in Subsection (4)(b)(i);
             2735      and
             2736          (iii) the new rate of the tax described in Subsection (4)(b)(i).
             2737          (5) Beginning with the 2006 interim, the Revenue and Taxation Interim Committee:
             2738          (a) shall review the exemption provided for in this section one or more times every five
             2739      years;
             2740          (b) shall determine on or before the November interim meeting of the year in which the
             2741      Revenue and Taxation Interim Committee reviews the exemption provided for in this section
             2742      whether the exemption should be:
             2743          (i) continued;
             2744          (ii) modified; or
             2745          (iii) repealed; and
             2746          (c) may review any other issue related to the exemption provided for in this section as
             2747      determined by the Revenue and Taxation Interim Committee.
             2748          Section 5. Section 59-12-104.6 is amended to read:
             2749           59-12-104.6. Procedure for claiming a sales and use tax exemption for certain
             2750      lodging related purchases -- Rulemaking authority -- Applicability of section.
             2751          (1) As used in this section:
             2752          (a) "Designated establishment within the lodging industry" means an establishment
             2753      described in NAICS Code 721110 or 721191 of the 2007 North American Industry
             2754      Classification System of the federal Executive Office of the President, Office of Management
             2755      and Budget.


             2756          (b) "Exempt purchaser" means a person that:
             2757          (i) makes a lodging related purchase; and
             2758          (ii) may claim an exemption from a tax under this chapter for the purchase.
             2759          (c) "Lodging related purchase" means the purchase of the following from a seller that is
             2760      a designated establishment within the lodging industry:
             2761          (i) [accommodations and services described in Subsection 59-12-103 (1)(i)] short-term
             2762      lodging; or
             2763          (ii) any other tangible personal property, product, or service that is:
             2764          (A) purchased as part of a transaction that includes the purchase of [accommodations
             2765      and services described in Subsection (1)(c)(i)] short-term lodging; and
             2766          (B) included on the invoice, bill of sale, or similar document provided to the purchaser
             2767      of the [accommodations and services described in Subsection (1)(c)(i)] short-term lodging.
             2768          (2) Except as provided in Subsection (3), an exempt purchaser that makes a lodging
             2769      related purchase:
             2770          (a) shall pay a tax that would otherwise be imposed under this chapter on the lodging
             2771      related purchase but for the purchaser being allowed to claim an exemption from a tax under
             2772      this chapter for the purchase; and
             2773          (b) may apply to the commission for a refund of the tax described in Subsection (2)(a)
             2774      that the purchaser pays.
             2775          (3) An exempt purchaser that makes a lodging related purchase may claim an
             2776      exemption from a tax under this chapter at the point of sale if the exempt purchaser:
             2777          (a) is an agency or instrumentality of the United States;
             2778          (b) is exempt from a tax under this chapter on a lodging related purchase as authorized
             2779      by a diplomatic tax exemption card issued by the United States; or
             2780          (c) may claim the exemption at the point of sale in accordance with Section
             2781      59-12-104.1 .
             2782          (4) An exempt purchaser that applies to the commission for a refund may not make an
             2783      application to the commission for a refund more frequently than monthly.
             2784          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2785      commission may make rules providing:
             2786          (a) procedures for applying for a refund under this section;


             2787          (b) standards for determining and verifying the amount of a lodging related purchase by
             2788      an exempt purchaser; and
             2789          (c) procedures for claiming a refund on a monthly basis.
             2790          (6) This section does not apply to amounts taxed by the Navajo Nation that are exempt
             2791      from sales and use taxes in accordance with Section 59-12-104.2 .
             2792          Section 6. Section 59-12-107 is amended to read:
             2793           59-12-107. Collection, remittance, and payment of tax by sellers or other persons
             2794      -- Returns -- Reports -- Direct payment by purchaser of vehicle -- Other liability for
             2795      collection -- Rulemaking authority -- Credits -- Treatment of bad debt -- Penalties.
             2796          (1) (a) Except as provided in Subsection (1)(d) or Section 59-12-107.1 or 59-12-123
             2797      and subject to Subsection (1)(e), each seller shall pay or collect and remit the sales and use
             2798      taxes imposed by this chapter if within this state the seller:
             2799          (i) has or utilizes:
             2800          (A) an office;
             2801          (B) a distribution house;
             2802          (C) a sales house;
             2803          (D) a warehouse;
             2804          (E) a service enterprise; or
             2805          (F) a place of business similar to Subsections (1)(a)(i)(A) through (E);
             2806          (ii) maintains a stock of goods;
             2807          (iii) regularly solicits orders, regardless of whether or not the orders are accepted in the
             2808      state, unless the seller's only activity in the state is:
             2809          (A) advertising; or
             2810          (B) solicitation by:
             2811          (I) direct mail;
             2812          (II) electronic mail;
             2813          (III) the Internet;
             2814          (IV) telecommunications service; or
             2815          (V) a means similar to Subsection (1)(a)(iii)(A) or (B);
             2816          (iv) regularly engages in the delivery of property in the state other than by:
             2817          (A) common carrier; or


             2818          (B) United States mail; or
             2819          (v) regularly engages in an activity directly related to the leasing or servicing of
             2820      property located within the state.
             2821          (b) A seller that does not meet one or more of the criteria provided for in Subsection
             2822      (1)(a):
             2823          (i) except as provided in Subsection (1)(b)(ii), may voluntarily:
             2824          (A) collect a tax on a transaction described in Subsection 59-12-103 (1); and
             2825          (B) remit the tax to the commission as provided in this part; or
             2826          (ii) notwithstanding Subsection (1)(b)(i), shall collect a tax on a transaction described
             2827      in Subsection 59-12-103 (1) if Section 59-12-103.1 requires the seller to collect the tax.
             2828          (c) The collection and remittance of a tax under this chapter by a seller that is
             2829      registered under the agreement may not be used as a factor in determining whether that seller is
             2830      required by Subsection (1)(a) to:
             2831          (i) pay a tax, fee, or charge under:
             2832          (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
             2833          (B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
             2834          (C) Section 19-6-714 ;
             2835          (D) Section 19-6-805 ;
             2836          (E) Section 69-2-5 ;
             2837          (F) Section 69-2-5.5 ;
             2838          (G) Section 69-2-5.6 ; or
             2839          (H) this title; or
             2840          (ii) collect and remit a tax, fee, or charge under:
             2841          (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
             2842          (B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
             2843          (C) Section 19-6-714 ;
             2844          (D) Section 19-6-805 ;
             2845          (E) Section 69-2-5 ;
             2846          (F) Section 69-2-5.5 ;
             2847          (G) Section 69-2-5.6 ; or
             2848          (H) this title.


             2849          (d) A person shall pay a use tax imposed by this chapter on a transaction described in
             2850      Subsection 59-12-103 (1) if:
             2851          (i) the seller did not collect a tax imposed by this chapter on the transaction; and
             2852          (ii) the person:
             2853          (A) stores the tangible personal property or product transferred electronically in the
             2854      state;
             2855          (B) uses the tangible personal property or product transferred electronically in the state;
             2856      or
             2857          (C) consumes the tangible personal property or product transferred electronically in the
             2858      state.
             2859          (e) The ownership of property that is located at the premises of a printer's facility with
             2860      which the retailer has contracted for printing and that consists of the final printed product,
             2861      property that becomes a part of the final printed product, or copy from which the printed
             2862      product is produced, shall not result in the retailer being considered to have or maintain an
             2863      office, distribution house, sales house, warehouse, service enterprise, or other place of
             2864      business, or to maintain a stock of goods, within this state.
             2865          (f) (i) As used in this Subsection (1)(f):
             2866          (A) "Affiliated group" is as defined in Section 59-7-101 , except that "affiliated group"
             2867      includes a corporation that is qualified to do business but is not otherwise doing business in
             2868      this state.
             2869          (B) "Common ownership" is as defined in Section 59-7-101 .
             2870          (C) "Related seller" means a seller that:
             2871          (I) is not required to pay or collect and remit sales and use taxes under Subsection
             2872      (1)(a) or Section 59-12-103.1 ;
             2873          (II) is:
             2874          (Aa) related to a seller that is required to pay or collect and remit sales and use taxes
             2875      under Subsection (1)(a) as part of an affiliated group or because of common ownership; or
             2876          (Bb) a limited liability company owned by the parent corporation of an affiliated group
             2877      if that parent corporation of the affiliated group is required to pay or collect and remit sales and
             2878      use taxes under Subsection (1)(a); and
             2879          (III) does not voluntarily collect and remit a tax under Subsection (1)(b)(i).


             2880          (ii) A seller is not required to pay or collect and remit sales and use taxes under
             2881      Subsection (1)(a):
             2882          (A) if the seller is a related seller;
             2883          (B) if the seller to which the related seller is related does not engage in any of the
             2884      following activities on behalf of the related seller:
             2885          (I) advertising;
             2886          (II) marketing;
             2887          (III) sales; or
             2888          (IV) other services; and
             2889          (C) if the seller to which the related seller is related accepts the return of an item sold
             2890      by the related seller, the seller to which the related seller is related accepts the return of that
             2891      item:
             2892          (I) sold by a seller that is not a related seller; and
             2893          (II) on the same terms as the return of an item sold by that seller to which the related
             2894      seller is related.
             2895          (2) (a) Except as provided in Section 59-12-107.1 , a tax under this chapter shall be
             2896      collected from a purchaser.
             2897          (b) A seller may not collect as tax an amount, without regard to fractional parts of one
             2898      cent, in excess of the tax computed at the rates prescribed by this chapter.
             2899          (c) (i) Each seller shall:
             2900          (A) give the purchaser a receipt for the tax collected; or
             2901          (B) bill the tax as a separate item and declare the name of this state and the seller's
             2902      sales and use tax license number on the invoice for the sale.
             2903          (ii) The receipt or invoice is prima facie evidence that the seller has collected the tax
             2904      and relieves the purchaser of the liability for reporting the tax to the commission as a
             2905      consumer.
             2906          (d) A seller is not required to maintain a separate account for the tax collected, but is
             2907      considered to be a person charged with receipt, safekeeping, and transfer of public money.
             2908          (e) Taxes collected by a seller pursuant to this chapter shall be held in trust for the
             2909      benefit of the state and for payment to the commission in the manner and at the time provided
             2910      for in this chapter.


             2911          (f) If any seller, during any reporting period, collects as a tax an amount in excess of
             2912      the lawful state and local percentage of total taxable sales allowed under this chapter, the seller
             2913      shall remit to the commission the full amount of the tax imposed under this chapter, plus any
             2914      excess.
             2915          (g) If the accounting methods regularly employed by the seller in the transaction of the
             2916      seller's business are such that reports of sales made during a calendar month or quarterly period
             2917      will impose unnecessary hardships, the commission may accept reports at intervals that will, in
             2918      the commission's opinion, better suit the convenience of the taxpayer or seller and will not
             2919      jeopardize collection of the tax.
             2920          (h) For purposes of a transaction described in Subsection 59-12-103 (1)(i):
             2921          (i) if an additional amount described in Subsection 59-12-102 (110)(c) is not charged as
             2922      part of a purchase of short-term lodging, the short-term lodging operator shall remit the tax on
             2923      amounts paid or charged as a room cost for the short-term lodging;
             2924          (ii) if an additional amount described in Subsection 59-12-102 (110)(c) is charged as
             2925      part of a purchase of short-term lodging and, at the time a reservation for the purchase of the
             2926      short-term lodging is made, the seller separately states each short-term lodging transaction
             2927      component on an invoice, bill of sale, or similar document provided to the purchaser, the
             2928      short-term lodging operator shall remit the tax on amounts paid or charged as a room cost for
             2929      the short-term lodging; or
             2930          (iii) if an additional amount described in Subsection 59-12-102 (110)(c) is charged as
             2931      part of a purchase of short-term lodging and, at the time a reservation for the purchase of the
             2932      short-term lodging is made, the seller does not separately state each short-term lodging
             2933      transaction component on an invoice, bill of sale, or similar document provided to the
             2934      purchaser:
             2935          (A) the short-term lodging operator shall remit the tax on amounts paid or charged as a
             2936      room cost for the short-term lodging; and
             2937          (B) the seller who charges the additional amount described in Subsection
             2938      59-12-102 (110)(c) shall remit the tax on that additional amount.
             2939          (3) (a) Except as provided in Subsections (4) through (6) and Section 59-12-108 , the
             2940      sales or use tax imposed by this chapter is due and payable to the commission quarterly on or
             2941      before the last day of the month next succeeding each calendar quarterly period.


             2942          (b) (i) Each seller shall, on or before the last day of the month next succeeding each
             2943      calendar quarterly period, file with the commission a return for the preceding quarterly period.
             2944          (ii) The seller shall remit with the return under Subsection (3)(b)(i) the amount of the
             2945      tax required under this chapter to be collected or paid for the period covered by the return.
             2946          (c) Except as provided in Subsection (4)(c), a return shall contain information and be in
             2947      a form the commission prescribes by rule.
             2948          (d) The sales tax as computed in the return shall be based upon the total nonexempt
             2949      sales made during the period, including both cash and charge sales.
             2950          (e) The use tax as computed in the return shall be based upon the total amount of
             2951      purchases for storage, use, or other consumption in this state made during the period, including
             2952      both by cash and by charge.
             2953          (f) (i) Subject to Subsection (3)(f)(ii) and in accordance with Title 63G, Chapter 3,
             2954      Utah Administrative Rulemaking Act, the commission may by rule extend the time for making
             2955      returns and paying the taxes.
             2956          (ii) An extension under Subsection (3)(f)(i) may not be for more than 90 days.
             2957          (g) The commission may require returns and payment of the tax to be made for other
             2958      than quarterly periods if the commission considers it necessary in order to ensure the payment
             2959      of the tax imposed by this chapter.
             2960          (h) (i) The commission may require a seller that files a simplified electronic return with
             2961      the commission to file an additional electronic report with the commission.
             2962          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2963      commission may make rules providing:
             2964          (A) the information required to be included in the additional electronic report described
             2965      in Subsection (3)(h)(i); and
             2966          (B) one or more due dates for filing the additional electronic report described in
             2967      Subsection (3)(h)(i).
             2968          (4) (a) As used in this Subsection (4) and Subsection (5)(b), "remote seller" means a
             2969      seller that is:
             2970          (i) registered under the agreement;
             2971          (ii) described in Subsection (1)(b); and
             2972          (iii) not a:


             2973          (A) model 1 seller;
             2974          (B) model 2 seller; or
             2975          (C) model 3 seller.
             2976          (b) (i) Except as provided in Subsection (4)(b)(ii), a tax a remote seller collects in
             2977      accordance with Subsection (1)(b) is due and payable:
             2978          (A) to the commission;
             2979          (B) annually; and
             2980          (C) on or before the last day of the month immediately following the last day of each
             2981      calendar year.
             2982          (ii) The commission may require that a tax a remote seller collects in accordance with
             2983      Subsection (1)(b) be due and payable:
             2984          (A) to the commission; and
             2985          (B) on the last day of the month immediately following any month in which the seller
             2986      accumulates a total of at least $1,000 in agreement sales and use tax.
             2987          (c) (i) If a remote seller remits a tax to the commission in accordance with Subsection
             2988      (4)(b), the remote seller shall file a return:
             2989          (A) with the commission;
             2990          (B) with respect to the tax;
             2991          (C) containing information prescribed by the commission; and
             2992          (D) on a form prescribed by the commission.
             2993          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2994      commission shall make rules prescribing:
             2995          (A) the information required to be contained in a return described in Subsection
             2996      (4)(a)(i); and
             2997          (B) the form described in Subsection (4)(c)(i)(D).
             2998          (d) A tax a remote seller collects in accordance with this Subsection (4) shall be
             2999      calculated on the basis of the total amount of taxable transactions under Subsection
             3000      59-12-103 (1) the remote seller completes, including:
             3001          (i) a cash transaction; and
             3002          (ii) a charge transaction.
             3003          (5) (a) Except as provided in Subsection (5)(b), a tax a seller that files a simplified


             3004      electronic return collects in accordance with this chapter is due and payable:
             3005          (i) monthly on or before the last day of the month immediately following the month for
             3006      which the seller collects a tax under this chapter; and
             3007          (ii) for the month for which the seller collects a tax under this chapter.
             3008          (b) A tax a remote seller that files a simplified electronic return collects in accordance
             3009      with this chapter is due and payable as provided in Subsection (4).
             3010          (6) (a) On each vehicle sale made by other than a regular licensed vehicle dealer, the
             3011      purchaser shall pay the sales or use tax directly to the commission if the vehicle is subject to
             3012      titling or registration under the laws of this state.
             3013          (b) The commission shall collect the tax described in Subsection (6)(a) when the
             3014      vehicle is titled or registered.
             3015          (7) If any sale of tangible personal property or any other taxable transaction under
             3016      Subsection 59-12-103 (1), is made by a wholesaler to a retailer, the wholesaler is not
             3017      responsible for the collection or payment of the tax imposed on the sale and the retailer is
             3018      responsible for the collection or payment of the tax imposed on the sale if:
             3019          (a) the retailer represents that the personal property is purchased by the retailer for
             3020      resale; and
             3021          (b) the personal property is not subsequently resold.
             3022          (8) If any sale of property or service subject to the tax is made to a person prepaying
             3023      sales or use tax in accordance with Title 63M, Chapter 5, Resource Development Act, or to a
             3024      contractor or subcontractor of that person, the person to whom such payment or consideration
             3025      is payable is not responsible for the collection or payment of the sales or use tax and the person
             3026      prepaying the sales or use tax is responsible for the collection or payment of the sales or use tax
             3027      if the person prepaying the sales or use tax represents that the amount prepaid as sales or use
             3028      tax has not been fully credited against sales or use tax due and payable under the rules
             3029      promulgated by the commission.
             3030          (9) (a) For purposes of this Subsection (9):
             3031          (i) Except as provided in Subsection (9)(a)(ii), "bad debt" is as defined in Section 166,
             3032      Internal Revenue Code.
             3033          (ii) Notwithstanding Subsection (9)(a)(i), "bad debt" does not include:
             3034          (A) an amount included in the purchase price of tangible personal property, a product


             3035      transferred electronically, or a service that is:
             3036          (I) not a transaction described in Subsection 59-12-103 (1); or
             3037          (II) exempt under Section 59-12-104 ;
             3038          (B) a financing charge;
             3039          (C) interest;
             3040          (D) a tax imposed under this chapter on the purchase price of tangible personal
             3041      property, a product transferred electronically, or a service;
             3042          (E) an uncollectible amount on tangible personal property or a product transferred
             3043      electronically that:
             3044          (I) is subject to a tax under this chapter; and
             3045          (II) remains in the possession of a seller until the full purchase price is paid;
             3046          (F) an expense incurred in attempting to collect any debt; or
             3047          (G) an amount that a seller does not collect on repossessed property.
             3048          (b) A seller may deduct bad debt from the total amount from which a tax under this
             3049      chapter is calculated on a return.
             3050          (c) A seller may file a refund claim with the commission if:
             3051          (i) the amount of bad debt for the time period described in Subsection (9)(e) exceeds
             3052      the amount of the seller's sales that are subject to a tax under this chapter for that same time
             3053      period; and
             3054          (ii) as provided in Section 59-1-1410 .
             3055          (d) A bad debt deduction under this section may not include interest.
             3056          (e) A bad debt may be deducted under this Subsection (9) on a return for the time
             3057      period during which the bad debt:
             3058          (i) is written off as uncollectible in the seller's books and records; and
             3059          (ii) would be eligible for a bad debt deduction:
             3060          (A) for federal income tax purposes; and
             3061          (B) if the seller were required to file a federal income tax return.
             3062          (f) If a seller recovers any portion of bad debt for which the seller makes a deduction or
             3063      claims a refund under this Subsection (9), the seller shall report and remit a tax under this
             3064      chapter:
             3065          (i) on the portion of the bad debt the seller recovers; and


             3066          (ii) on a return filed for the time period for which the portion of the bad debt is
             3067      recovered.
             3068          (g) For purposes of reporting a recovery of a portion of bad debt under Subsection
             3069      (9)(f), a seller shall apply amounts received on the bad debt in the following order:
             3070          (i) in a proportional amount:
             3071          (A) to the purchase price of the tangible personal property, product transferred
             3072      electronically, or service; and
             3073          (B) to the tax due under this chapter on the tangible personal property, product
             3074      transferred electronically, or service; and
             3075          (ii) to:
             3076          (A) interest charges;
             3077          (B) service charges; and
             3078          (C) other charges.
             3079          (h) A seller's certified service provider may make a deduction or claim a refund for bad
             3080      debt on behalf of the seller:
             3081          (i) in accordance with this Subsection (9); and
             3082          (ii) if the certified service provider credits or refunds the entire amount of the bad debt
             3083      deduction or refund to the seller.
             3084          (i) A seller may allocate bad debt among the states that are members of the agreement
             3085      if the seller's books and records support that allocation.
             3086          (10) (a) A seller may not, with intent to evade any tax, fail to timely remit the full
             3087      amount of tax required by this chapter.
             3088          (b) A violation of this section is punishable as provided in Section 59-1-401 .
             3089          (c) Each person who fails to pay any tax to the state or any amount of tax required to be
             3090      paid to the state, except amounts determined to be due by the commission under Chapter 1,
             3091      Part 14, Assessment, Collections, and Refunds Act, or Section 59-12-111 , within the time
             3092      required by this chapter, or who fails to file any return as required by this chapter, shall pay, in
             3093      addition to the tax, penalties and interest as provided in Section 59-1-401 .
             3094          (d) For purposes of prosecution under this section, each quarterly tax period in which a
             3095      seller, with intent to evade any tax, collects a tax and fails to timely remit the full amount of the
             3096      tax required to be remitted, constitutes a separate offense.


             3097          Section 7. Section 59-12-107.1 is amended to read:
             3098           59-12-107.1. Direct payment permit.
             3099          (1) The commission may issue a direct payment permit to a seller that:
             3100          (a) obtains a license under Section 59-12-106 ;
             3101          (b) makes aggregate purchases of at least $1,500,000 for each of the three years prior to
             3102      the year in which the commission issues the direct payment permit to the seller;
             3103          (c) has a record of timely payment of taxes under this chapter as determined by the
             3104      commission; and
             3105          (d) demonstrates to the commission that the seller has the ability to determine the
             3106      appropriate location of a transaction:
             3107          (i) under:
             3108          (A) Section 59-12-211 ;
             3109          (B) Section 59-12-212 ; or
             3110          (C) Section 59-12-213 ; and
             3111          (ii) for each transaction for which the seller makes a purchase using the direct payment
             3112      permit.
             3113          (2) The commission shall within 120 days after the date a seller applies for a direct
             3114      payment permit notify the seller of the commission's decision to issue or deny the issuance of
             3115      the direct payment permit.
             3116          (3) A direct payment permit may