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H.B. 71

             1     

MOBILE AND MANUFACTURED HOME AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Marc K. Roberts

             5     
Senate Sponsor: John L. Valentine

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Motor Vehicle Act and the Mortgage Lending and Servicing Act
             10      to address treatment of a mobile home or manufactured home as real property.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies definitions;
             14          .    repeals language in the Motor Vehicle Act regarding obtaining an affidavit of
             15      affixture and receipt of surrender of ownership documents;
             16          .    modifies references to affidavit of affixture and receipt of surrender of ownership
             17      documents;
             18          .    provides a process to convert a mobile home or manufactured home to an
             19      improvement to real property if the certificate of title has been lost or destroyed and
             20      a duplicate title cannot be obtained; and
             21          .    makes technical and conforming amendments.
             22      Money Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          This bill provides an effective date.
             26      Utah Code Sections Affected:
             27      AMENDS:


             28          41-1a-102, as last amended by Laws of Utah 2011, Chapter 340
             29          41-1a-503, as last amended by Laws of Utah 2006, Chapters 232 and 252
             30          41-1a-506, as last amended by Laws of Utah 2009, Chapter 72
             31          41-1a-509, as last amended by Laws of Utah 1992, Chapter 218 and renumbered and
             32      amended by Laws of Utah 1992, Chapter 1
             33          41-1a-510, as last amended by Laws of Utah 2010, Chapter 324
             34          41-1a-519, as last amended by Laws of Utah 2006, Chapter 252
             35          41-1a-709, as last amended by Laws of Utah 1993, Chapter 221
             36          59-12-102 (Superseded 07/01/14), as last amended by Laws of Utah 2012, Chapters
             37      255, 312, 405, and 410
             38          59-12-102 (Effective 07/01/14), as last amended by Laws of Utah 2012, Chapters 255,
             39      312, 405, 410, and 424
             40          70D-2-401, as renumbered and amended by Laws of Utah 2009, Chapter 72
             41     
             42      Be it enacted by the Legislature of the state of Utah:
             43          Section 1. Section 41-1a-102 is amended to read:
             44           41-1a-102. Definitions.
             45          As used in this chapter:
             46          (1) "Actual miles" means the actual distance a vehicle has traveled while in operation.
             47          (2) "Actual weight" means the actual unladen weight of a vehicle or combination of
             48      vehicles as operated and certified to by a weighmaster.
             49          [(3) "Affidavit of Mobile Home Affixture" means the affidavit of affixture described in
             50      Section 41-1a-503 .]
             51          [(4)] (3) "All-terrain type I vehicle" has the same meaning provided in Section 41-22-2 .
             52          [(5)] (4) "All-terrain type II vehicle" has the same meaning provided in Section
             53      41-22-2 .
             54          [(6)] (5) "Amateur radio operator" means any person licensed by the Federal
             55      Communications Commission to engage in private and experimental two-way radio operation
             56      on the amateur band radio frequencies.
             57          [(7)] (6) "Branded title" means a title certificate that is labeled:
             58          (a) rebuilt and restored to operation;


             59          (b) flooded and restored to operation; or
             60          (c) not restored to operation.
             61          [(8)] (7) "Camper" means any structure designed, used, and maintained primarily to be
             62      mounted on or affixed to a motor vehicle that contains a floor and is designed to provide a
             63      mobile dwelling, sleeping place, commercial space, or facilities for human habitation or for
             64      camping.
             65          [(9)] (8) "Certificate of title" means a document issued by a jurisdiction to establish a
             66      record of ownership between an identified owner and the described vehicle, vessel, or outboard
             67      motor.
             68          [(10)] (9) "Certified scale weigh ticket" means a weigh ticket that has been issued by a
             69      weighmaster.
             70          [(11)] (10) "Commercial vehicle" means a motor vehicle, trailer, or semitrailer used or
             71      maintained for the transportation of persons or property that operates:
             72          (a) as a carrier for hire, compensation, or profit; or
             73          (b) as a carrier to transport the vehicle owner's goods or property in furtherance of the
             74      owner's commercial enterprise.
             75          [(12)] (11) "Commission" means the State Tax Commission.
             76          [(13)] (12) "Dealer" means a person engaged or licensed to engage in the business of
             77      buying, selling, or exchanging new or used vehicles, vessels, or outboard motors either outright
             78      or on conditional sale, bailment, lease, chattel mortgage, or otherwise or who has an
             79      established place of business for the sale, lease, trade, or display of vehicles, vessels, or
             80      outboard motors.
             81          [(14)] (13) "Division" means the Motor Vehicle Division of the commission, created in
             82      Section 41-1a-106 .
             83          [(15)] (14) "Essential parts" means all integral and body parts of a vehicle of a type
             84      required to be registered in this state, the removal, alteration, or substitution of which would
             85      tend to conceal the identity of the vehicle or substantially alter its appearance, model, type, or
             86      mode of operation.
             87          [(16)] (15) "Farm tractor" means every motor vehicle designed and used primarily as a
             88      farm implement for drawing plows, mowing machines, and other implements of husbandry.
             89          [(17)] (16) (a) "Farm truck" means a truck used by the owner or operator of a farm


             90      solely for his own use in the transportation of:
             91          (i) farm products, including livestock and its products, poultry and its products,
             92      floricultural and horticultural products;
             93          (ii) farm supplies, including tile, fence, and every other thing or commodity used in
             94      agricultural, floricultural, horticultural, livestock, and poultry production; and
             95          (iii) livestock, poultry, and other animals and things used for breeding, feeding, or
             96      other purposes connected with the operation of a farm.
             97          (b) "Farm truck" does not include the operation of trucks by commercial processors of
             98      agricultural products.
             99          [(18)] (17) "Fleet" means one or more commercial vehicles.
             100          [(19)] (18) "Foreign vehicle" means a vehicle of a type required to be registered,
             101      brought into this state from another state, territory, or country other than in the ordinary course
             102      of business by or through a manufacturer or dealer, and not registered in this state.
             103          [(20)] (19) "Gross laden weight" means the actual weight of a vehicle or combination
             104      of vehicles, equipped for operation, to which shall be added the maximum load to be carried.
             105          [(21)] (20) "Highway" or "street" means the entire width between property lines of
             106      every way or place of whatever nature when any part of it is open to the public, as a matter of
             107      right, for purposes of vehicular traffic.
             108          [(22)] (21) (a) "Identification number" means the identifying number assigned by the
             109      manufacturer or by the division for the purpose of identifying the vehicle, vessel, or outboard
             110      motor.
             111          (b) "Identification number" includes a vehicle identification number, state assigned
             112      identification number, hull identification number, and motor serial number.
             113          [(23)] (22) "Implement of husbandry" means every vehicle designed or adapted and
             114      used exclusively for an agricultural operation and only incidentally operated or moved upon the
             115      highways.
             116          [(24)] (23) (a) "In-state miles" means the total number of miles operated in this state
             117      during the preceding year by fleet power units.
             118          (b) If fleets are composed entirely of trailers or semitrailers, "in-state miles" means the
             119      total number of miles that those vehicles were towed on Utah highways during the preceding
             120      year.


             121          [(25)] (24) "Interstate vehicle" means any commercial vehicle operated in more than
             122      one state, province, territory, or possession of the United States or foreign country.
             123          [(26)] (25) "Jurisdiction" means a state, district, province, political subdivision,
             124      territory, or possession of the United States or any foreign country.
             125          [(27)] (26) "Lienholder" means a person with a security interest in particular property.
             126          [(28)] (27) "Manufactured home" means a transportable factory built housing unit
             127      constructed on or after June 15, 1976, according to the Federal Home Construction and Safety
             128      Standards Act of 1974 (HUD Code), in one or more sections, which, in the traveling mode, is
             129      eight body feet or more in width or 40 body feet or more in length, or when erected on site, is
             130      400 or more square feet, and which is built on a permanent chassis and designed to be used as a
             131      dwelling with or without a permanent foundation when connected to the required utilities, and
             132      includes the plumbing, heating, air-conditioning, and electrical systems.
             133          [(29)] (28) "Manufacturer" means a person engaged in the business of constructing,
             134      manufacturing, assembling, producing, or importing new or unused vehicles, vessels, or
             135      outboard motors for the purpose of sale or trade.
             136          [(30)] (29) "Mobile home" means a transportable factory built housing unit built prior
             137      to June 15, 1976, in accordance with a state mobile home code which existed prior to the
             138      Federal Manufactured Housing and Safety Standards Act (HUD Code).
             139          [(31)] (30) "Motorboat" has the same meaning as provided in Section 73-18-2 .
             140          [(32)] (31) "Motorcycle" means a motor vehicle having a saddle for the use of the rider
             141      and designed to travel on not more than three wheels in contact with the ground.
             142          [(33)] (32) (a) "Motor vehicle" means a self-propelled vehicle intended primarily for
             143      use and operation on the highways.
             144          (b) "Motor vehicle" does not include an off-highway vehicle.
             145          [(34)] (33) (a) "Nonresident" means a person who is not a resident of this state as
             146      defined by Section 41-1a-202 , and who does not engage in intrastate business within this state
             147      and does not operate in that business any motor vehicle, trailer, or semitrailer within this state.
             148          (b) A person who engages in intrastate business within this state and operates in that
             149      business any motor vehicle, trailer, or semitrailer in this state or who, even though engaging in
             150      interstate commerce, maintains any vehicle in this state as the home station of that vehicle is
             151      considered a resident of this state, insofar as that vehicle is concerned in administering this


             152      chapter.
             153          [(35)] (34) "Odometer" means a device for measuring and recording the actual distance
             154      a vehicle travels while in operation, but does not include any auxiliary odometer designed to be
             155      periodically reset.
             156          [(36)] (35) "Off-highway implement of husbandry" has the same meaning as provided
             157      in Section 41-22-2 .
             158          [(37)] (36) "Off-highway vehicle" has the same meaning as provided in Section
             159      41-22-2 .
             160          [(38)] (37) "Operate" means to drive or be in actual physical control of a vehicle or to
             161      navigate a vessel.
             162          [(39)] (38) "Outboard motor" means a detachable self-contained propulsion unit,
             163      excluding fuel supply, used to propel a vessel.
             164          [(40)] (39) (a) "Owner" means a person, other than a lienholder, holding title to a
             165      vehicle, vessel, or outboard motor whether or not the vehicle, vessel, or outboard motor is
             166      subject to a security interest.
             167          (b) If a vehicle is the subject of an agreement for the conditional sale or installment
             168      sale or mortgage of the vehicle with the right of purchase upon performance of the conditions
             169      stated in the agreement and with an immediate right of possession vested in the conditional
             170      vendee or mortgagor, or if the vehicle is the subject of a security agreement, then the
             171      conditional vendee, mortgagor, or debtor is considered the owner for the purposes of this
             172      chapter.
             173          (c) If a vehicle is the subject of an agreement to lease, the lessor is considered the
             174      owner until the lessee exercises his option to purchase the vehicle.
             175          [(41)] (40) "Personalized license plate" means a license plate that has displayed on it a
             176      combination of letters, numbers, or both as requested by the owner of the vehicle and assigned
             177      to the vehicle by the division.
             178          [(42)] (41) (a) "Pickup truck" means a two-axle motor vehicle with motive power
             179      manufactured, remanufactured, or materially altered to provide an open cargo area.
             180          (b) "Pickup truck" includes motor vehicles with the open cargo area covered with a
             181      camper, camper shell, tarp, removable top, or similar structure.
             182          [(43)] (42) "Pneumatic tire" means every tire in which compressed air is designed to


             183      support the load.
             184          [(44)] (43) "Preceding year" means a period of 12 consecutive months fixed by the
             185      division that is within 16 months immediately preceding the commencement of the registration
             186      or license year in which proportional registration is sought. The division in fixing the period
             187      shall conform it to the terms, conditions, and requirements of any applicable agreement or
             188      arrangement for the proportional registration of vehicles.
             189          [(45)] (44) "Public garage" means every building or other place where vehicles or
             190      vessels are kept and stored and where a charge is made for the storage and keeping of vehicles
             191      and vessels.
             192          (45) "Receipt of surrender of ownership documents" means the receipt of surrender of
             193      ownership documents described in Section 41-1a-503 .
             194          (46) "Reconstructed vehicle" means every vehicle of a type required to be registered in
             195      this state that is materially altered from its original construction by the removal, addition, or
             196      substitution of essential parts, new or used.
             197          (47) "Recreational vehicle" has the same meaning as provided in Section 13-14-102 .
             198          (48) "Registration" means a document issued by a jurisdiction that allows operation of
             199      a vehicle or vessel on the highways or waters of this state for the time period for which the
             200      registration is valid and that is evidence of compliance with the registration requirements of the
             201      jurisdiction.
             202          (49) (a) "Registration year" means a 12 consecutive month period commencing with
             203      the completion of all applicable registration criteria.
             204          (b) For administration of a multistate agreement for proportional registration the
             205      division may prescribe a different 12-month period.
             206          (50) "Repair or replacement" means the restoration of vehicles, vessels, or outboard
             207      motors to a sound working condition by substituting any inoperative part of the vehicle, vessel,
             208      or outboard motor, or by correcting the inoperative part.
             209          (51) "Replica vehicle" means:
             210          (a) a street rod that meets the requirements under Subsection 41-21-1 (1)(a)(i)(B); or
             211          (b) a custom vehicle that meets the requirements under Subsection
             212      41-6a-1507 (1)(a)(i)(B).
             213          (52) "Road tractor" means every motor vehicle designed and used for drawing other


             214      vehicles and constructed so it does not carry any load either independently or any part of the
             215      weight of a vehicle or load that is drawn.
             216          (53) "Sailboat" has the same meaning as provided in Section 73-18-2 .
             217          (54) "Security interest" means an interest that is reserved or created by a security
             218      agreement to secure the payment or performance of an obligation and that is valid against third
             219      parties.
             220          (55) "Semitrailer" means every vehicle without motive power designed for carrying
             221      persons or property and for being drawn by a motor vehicle and constructed so that some part
             222      of its weight and its load rests or is carried by another vehicle.
             223          (56) "Special group license plate" means a type of license plate designed for a
             224      particular group of people or a license plate authorized and issued by the division in accordance
             225      with Section 41-1a-418 .
             226          (57) (a) "Special interest vehicle" means a vehicle used for general transportation
             227      purposes and that is:
             228          (i) 20 years or older from the current year; or
             229          (ii) a make or model of motor vehicle recognized by the division director as having
             230      unique interest or historic value.
             231          (b) In making his determination under Subsection (57)(a), the division director shall
             232      give special consideration to:
             233          (i) a make of motor vehicle that is no longer manufactured;
             234          (ii) a make or model of motor vehicle produced in limited or token quantities;
             235          (iii) a make or model of motor vehicle produced as an experimental vehicle or one
             236      designed exclusively for educational purposes or museum display; or
             237          (iv) a motor vehicle of any age or make that has not been substantially altered or
             238      modified from original specifications of the manufacturer and because of its significance is
             239      being collected, preserved, restored, maintained, or operated by a collector or hobbyist as a
             240      leisure pursuit.
             241          (58) (a) "Special mobile equipment" means every vehicle:
             242          (i) not designed or used primarily for the transportation of persons or property;
             243          (ii) not designed to operate in traffic; and
             244          (iii) only incidentally operated or moved over the highways.


             245          (b) "Special mobile equipment" includes:
             246          (i) farm tractors;
             247          (ii) off-road motorized construction or maintenance equipment including backhoes,
             248      bulldozers, compactors, graders, loaders, road rollers, tractors, and trenchers; and
             249          (iii) ditch-digging apparatus.
             250          (c) "Special mobile equipment" does not include a commercial vehicle as defined
             251      under Section 72-9-102 .
             252          (59) "Specially constructed vehicle" means every vehicle of a type required to be
             253      registered in this state, not originally constructed under a distinctive name, make, model, or
             254      type by a generally recognized manufacturer of vehicles, and not materially altered from its
             255      original construction.
             256          (60) "Title" means the right to or ownership of a vehicle, vessel, or outboard motor.
             257          (61) (a) "Total fleet miles" means the total number of miles operated in all jurisdictions
             258      during the preceding year by power units.
             259          (b) If fleets are composed entirely of trailers or semitrailers, "total fleet miles" means
             260      the number of miles that those vehicles were towed on the highways of all jurisdictions during
             261      the preceding year.
             262          (62) "Trailer" means a vehicle without motive power designed for carrying persons or
             263      property and for being drawn by a motor vehicle and constructed so that no part of its weight
             264      rests upon the towing vehicle.
             265          (63) "Transferee" means a person to whom the ownership of property is conveyed by
             266      sale, gift, or any other means except by the creation of a security interest.
             267          (64) "Transferor" means a person who transfers his ownership in property by sale, gift,
             268      or any other means except by creation of a security interest.
             269          (65) "Travel trailer," "camping trailer," or "fifth wheel trailer" means a portable vehicle
             270      without motive power, designed as a temporary dwelling for travel, recreational, or vacation
             271      use that does not require a special highway movement permit when drawn by a self-propelled
             272      motor vehicle.
             273          (66) "Truck tractor" means a motor vehicle designed and used primarily for drawing
             274      other vehicles and not constructed to carry a load other than a part of the weight of the vehicle
             275      and load that is drawn.


             276          (67) "Vehicle" includes a motor vehicle, trailer, semitrailer, off-highway vehicle,
             277      manufactured home, and mobile home.
             278          (68) "Vessel" has the same meaning as provided in Section 73-18-2 .
             279          (69) "Vintage vehicle" has the same meaning as provided in Section 41-21-1 .
             280          (70) "Waters of this state" has the same meaning as provided in Section 73-18-2 .
             281          (71) "Weighmaster" means a person, association of persons, or corporation permitted
             282      to weigh vehicles under this chapter.
             283          Section 2. Section 41-1a-503 is amended to read:
             284           41-1a-503. Certificate of title or receipt of surrender of ownership documents
             285      required -- Application by owner.
             286          (1) The owner of a manufactured home or mobile home shall apply to the division for a
             287      certificate of title unless the manufactured home or mobile home is previously registered as real
             288      property under Subsection 41-1a-506 (1).
             289          (2) (a) An owner of a manufactured home or mobile home previously issued a
             290      certificate of title who attaches that manufactured home or mobile home to real property shall
             291      apply for [an Affidavit of Mobile Home Affixture] a receipt of surrender of ownership
             292      documents within 45 days of attaching to the real property.
             293          (b) Upon application, the division shall issue [an Affidavit of Mobile Home Affixture]
             294      a receipt of surrender of ownership documents in lieu of a certificate of title.
             295          (c) However, manufactured homes and mobile homes are not exempt from the other
             296      requirements of this part.
             297          (3) (a) The owner of a manufactured home or mobile home previously issued [an
             298      Affidavit of Mobile Home Affixture] a receipt of surrender of ownership documents who
             299      separates that manufactured home or mobile home from the real property shall apply for a
             300      certificate of title within 45 days of the separation[, prior to] and before any transfer of
             301      ownership of that manufactured home or mobile home.
             302          (b) Upon application, the division shall issue a certificate of title in lieu of [an
             303      Affidavit of Mobile Home Affixture] a receipt of surrender of ownership documents.
             304          Section 3. Section 41-1a-506 is amended to read:
             305           41-1a-506. Exceptions to title requirements for manufactured homes or mobile
             306      homes.


             307          (1) A manufactured home or mobile home in this state is subject to the titling
             308      provisions of this part except:
             309          (a) a manufactured home or mobile home owned and operated by the federal
             310      government; and
             311          (b) a manufactured home or mobile home that has been converted to real property
             312      under Section 70D-2-401 [if:].
             313          [(i) (A) an Affidavit of Mobile Home Affixture is issued by the division for that home;
             314      and]
             315          [(B) the home is permanently affixed to real property; or]
             316          [(ii) (A) the home is permanently affixed to real property;]
             317          [(B) the home is not registered with the division;]
             318          [(C) the home is taxed as an improvement to real estate by the county assessor as
             319      permitted under Section 59-2-1503 ; and]
             320          [(D) the manufacturer's identification number or numbers are included in the deed or
             321      loan document recorded with the county recorder.]
             322          (2) A manufactured home or mobile home previously converted to real property but
             323      that has been separated from the real property is subject to the titling provisions of this part
             324      upon separation.
             325          Section 4. Section 41-1a-509 is amended to read:
             326           41-1a-509. Manufacturer's certificate of origin or title.
             327          (1) If a vehicle other than an off-highway vehicle older than a 1988 model year, or a
             328      vessel or outboard motor older than a 1985 model year has not been previously titled, the
             329      application for certificate of title shall include the manufacturer's certificate of origin properly
             330      endorsed for transfer.
             331          (2) The manufacturer's certificate of origin shall show:
             332          (a) the date of sale to the dealer or person first receiving it from the manufacturer;
             333          (b) the name of the dealer or person;
             334          (c) a description sufficient to identify the vehicle, vessel, or outboard motor; and
             335          (d) a certification by the dealer that the vehicle, vessel, or outboard motor was new
             336      when sold to the applicant.
             337          (3) (a) If the vehicle, vessel, or outboard motor is from a state or foreign country that


             338      does not issue or require certificates of title, the owner shall submit a bill of sale, sworn
             339      statement of ownership, or any other evidence of ownership required by the division.
             340          (b) The division may refuse to issue a certificate of title or [an affidavit of Mobile
             341      Home Affixture] receipt of surrender of ownership documents if the applicant fails to submit
             342      the evidence of ownership required.
             343          Section 5. Section 41-1a-510 is amended to read:
             344           41-1a-510. Sales tax payment required.
             345          (1) (a) Except as provided in Subsection (1)(b), the division before issuing a certificate
             346      of title to a vehicle, vessel, or outboard motor shall require from every applicant:
             347          (i) a receipt from the division showing that the sales tax has been paid to the state on
             348      the sale of the vehicle, vessel, or outboard motor upon which application for certificate of title
             349      has been made; or
             350          (ii) a certificate from the division showing that no sales tax is due.
             351          (b) If a licensed dealer has made a report of sale, no receipt or certificate is required.
             352          (2) The division may also issue [an Affidavit of Mobile Home Affixture] a receipt of
             353      surrender of ownership documents for a manufactured home or mobile home if the applicant
             354      complies with Subsection (1).
             355          Section 6. Section 41-1a-519 is amended to read:
             356           41-1a-519. Dealer requirements for certificate of title or affidavit of affixture and
             357      receipt of surrender of title.
             358          (1) If a dealer delivers a new off-highway vehicle, vessel, or outboard motor to the
             359      purchaser, the dealer shall apply for issuance of a certificate of title or [Affidavit of Mobile
             360      Home Affixture] receipt of surrender of ownership documents, as appropriate, in the
             361      purchaser's name within 45 days of the date of sale.
             362          (2) A dealer who purchases or takes in trade a used off-highway vehicle, vessel, or
             363      outboard motor on which a certificate of title has previously been issued is not required to
             364      apply for a certificate of title.
             365          Section 7. Section 41-1a-709 is amended to read:
             366           41-1a-709. Dealer transfer of used off-highway vehicle, vessel, or outboard motor.
             367          Upon the resale or subsequent transfer by a dealer of a used off-highway vehicle, vessel,
             368      or outboard motor, the dealer shall endorse the certificate of title and forward it, accompanied


             369      by the transferee's application for a certificate of title, or if desired by the purchaser, and as
             370      applicable, [an affidavit of Mobile Home Affixture] a receipt of surrender of ownership
             371      documents, to the division.
             372          Section 8. Section 59-12-102 (Superseded 07/01/14) is amended to read:
             373           59-12-102 (Superseded 07/01/14). Definitions.
             374          As used in this chapter:
             375          (1) "800 service" means a telecommunications service that:
             376          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             377          (b) is typically marketed:
             378          (i) under the name 800 toll-free calling;
             379          (ii) under the name 855 toll-free calling;
             380          (iii) under the name 866 toll-free calling;
             381          (iv) under the name 877 toll-free calling;
             382          (v) under the name 888 toll-free calling; or
             383          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             384      Federal Communications Commission.
             385          (2) (a) "900 service" means an inbound toll telecommunications service that:
             386          (i) a subscriber purchases;
             387          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             388      the subscriber's:
             389          (A) prerecorded announcement; or
             390          (B) live service; and
             391          (iii) is typically marketed:
             392          (A) under the name 900 service; or
             393          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             394      Communications Commission.
             395          (b) "900 service" does not include a charge for:
             396          (i) a collection service a seller of a telecommunications service provides to a
             397      subscriber; or
             398          (ii) the following a subscriber sells to the subscriber's customer:
             399          (A) a product; or


             400          (B) a service.
             401          (3) (a) "Admission or user fees" includes season passes.
             402          (b) "Admission or user fees" does not include annual membership dues to private
             403      organizations.
             404          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             405      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             406      Agreement after November 12, 2002.
             407          (5) "Agreement combined tax rate" means the sum of the tax rates:
             408          (a) listed under Subsection (6); and
             409          (b) that are imposed within a local taxing jurisdiction.
             410          (6) "Agreement sales and use tax" means a tax imposed under:
             411          (a) Subsection 59-12-103 (2)(a)(i)(A);
             412          (b) Subsection 59-12-103 (2)(b)(i);
             413          (c) Subsection 59-12-103 (2)(c)(i);
             414          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             415          (e) Section 59-12-204 ;
             416          (f) Section 59-12-401 ;
             417          (g) Section 59-12-402 ;
             418          (h) Section 59-12-703 ;
             419          (i) Section 59-12-802 ;
             420          (j) Section 59-12-804 ;
             421          (k) Section 59-12-1102 ;
             422          (l) Section 59-12-1302 ;
             423          (m) Section 59-12-1402 ;
             424          (n) Section 59-12-1802 ;
             425          (o) Section 59-12-2003 ;
             426          (p) Section 59-12-2103 ;
             427          (q) Section 59-12-2213 ;
             428          (r) Section 59-12-2214 ;
             429          (s) Section 59-12-2215 ;
             430          (t) Section 59-12-2216 ;


             431          (u) Section 59-12-2217 ; or
             432          (v) Section 59-12-2218 .
             433          (7) "Aircraft" is as defined in Section 72-10-102 .
             434          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             435          (a) except for:
             436          (i) an airline as defined in Section 59-2-102 ; or
             437          (ii) an affiliated group, as defined in Section 59-7-101 , except that "affiliated group"
             438      includes a corporation that is qualified to do business but is not otherwise doing business in the
             439      state, of an airline; and
             440          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             441      whether the business entity performs the following in this state:
             442          (i) check, diagnose, overhaul, and repair:
             443          (A) an onboard system of a fixed wing turbine powered aircraft; and
             444          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             445          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             446      engine;
             447          (iii) perform at least the following maintenance on a fixed wing turbine powered
             448      aircraft:
             449          (A) an inspection;
             450          (B) a repair, including a structural repair or modification;
             451          (C) changing landing gear; and
             452          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             453          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             454      completely apply new paint to the fixed wing turbine powered aircraft; and
             455          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             456      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             457      authority that certifies the fixed wing turbine powered aircraft.
             458          (9) "Alcoholic beverage" means a beverage that:
             459          (a) is suitable for human consumption; and
             460          (b) contains [.5%] 0.5% or more alcohol by volume.
             461          (10) "Alternative energy" means:


             462          (a) biomass energy;
             463          (b) geothermal energy;
             464          (c) hydroelectric energy;
             465          (d) solar energy;
             466          (e) wind energy; or
             467          (f) energy that is derived from:
             468          (i) coal-to-liquids;
             469          (ii) nuclear fuel;
             470          (iii) oil-impregnated diatomaceous earth;
             471          (iv) oil sands;
             472          (v) oil shale; or
             473          (vi) petroleum coke.
             474          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
             475      facility" means a facility that:
             476          (i) uses alternative energy to produce electricity; and
             477          (ii) has a production capacity of [2] two megawatts or greater.
             478          (b) A facility is an alternative energy electricity production facility regardless of
             479      whether the facility is:
             480          (i) connected to an electric grid; or
             481          (ii) located on the premises of an electricity consumer.
             482          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
             483      provision of telecommunications service.
             484          (b) "Ancillary service" includes:
             485          (i) a conference bridging service;
             486          (ii) a detailed communications billing service;
             487          (iii) directory assistance;
             488          (iv) a vertical service; or
             489          (v) a voice mail service.
             490          (13) "Area agency on aging" is as defined in Section 62A-3-101 .
             491          (14) "Assisted amusement device" means an amusement device, skill device, or ride
             492      device that is started and stopped by an individual:


             493          (a) who is not the purchaser or renter of the right to use or operate the amusement
             494      device, skill device, or ride device; and
             495          (b) at the direction of the seller of the right to use the amusement device, skill device,
             496      or ride device.
             497          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
             498      washing of tangible personal property if the cleaning or washing labor is primarily performed
             499      by an individual:
             500          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             501      property; and
             502          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             503      property.
             504          (16) "Authorized carrier" means:
             505          (a) in the case of vehicles operated over public highways, the holder of credentials
             506      indicating that the vehicle is or will be operated pursuant to both the International Registration
             507      Plan and the International Fuel Tax Agreement;
             508          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             509      certificate or air carrier's operating certificate; or
             510          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             511      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             512          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
             513      following that is used as the primary source of energy to produce fuel or electricity:
             514          (i) material from a plant or tree; or
             515          (ii) other organic matter that is available on a renewable basis, including:
             516          (A) slash and brush from forests and woodlands;
             517          (B) animal waste;
             518          (C) methane produced:
             519          (I) at landfills; or
             520          (II) as a byproduct of the treatment of wastewater residuals;
             521          (D) aquatic plants; and
             522          (E) agricultural products.
             523          (b) "Biomass energy" does not include:


             524          (i) black liquor;
             525          (ii) treated woods; or
             526          (iii) biomass from municipal solid waste other than methane produced:
             527          (A) at landfills; or
             528          (B) as a byproduct of the treatment of wastewater residuals.
             529          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             530      property, products, or services if the tangible personal property, products, or services are:
             531          (i) distinct and identifiable; and
             532          (ii) sold for one nonitemized price.
             533          (b) "Bundled transaction" does not include:
             534          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             535      the basis of the selection by the purchaser of the items of tangible personal property included in
             536      the transaction;
             537          (ii) the sale of real property;
             538          (iii) the sale of services to real property;
             539          (iv) the retail sale of tangible personal property and a service if:
             540          (A) the tangible personal property:
             541          (I) is essential to the use of the service; and
             542          (II) is provided exclusively in connection with the service; and
             543          (B) the service is the true object of the transaction;
             544          (v) the retail sale of two services if:
             545          (A) one service is provided that is essential to the use or receipt of a second service;
             546          (B) the first service is provided exclusively in connection with the second service; and
             547          (C) the second service is the true object of the transaction;
             548          (vi) a transaction that includes tangible personal property or a product subject to
             549      taxation under this chapter and tangible personal property or a product that is not subject to
             550      taxation under this chapter if the:
             551          (A) seller's purchase price of the tangible personal property or product subject to
             552      taxation under this chapter is de minimis; or
             553          (B) seller's sales price of the tangible personal property or product subject to taxation
             554      under this chapter is de minimis; and


             555          (vii) the retail sale of tangible personal property that is not subject to taxation under
             556      this chapter and tangible personal property that is subject to taxation under this chapter if:
             557          (A) that retail sale includes:
             558          (I) food and food ingredients;
             559          (II) a drug;
             560          (III) durable medical equipment;
             561          (IV) mobility enhancing equipment;
             562          (V) an over-the-counter drug;
             563          (VI) a prosthetic device; or
             564          (VII) a medical supply; and
             565          (B) subject to Subsection (18)(f):
             566          (I) the seller's purchase price of the tangible personal property subject to taxation under
             567      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             568          (II) the seller's sales price of the tangible personal property subject to taxation under
             569      this chapter is 50% or less of the seller's total sales price of that retail sale.
             570          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
             571      service that is distinct and identifiable does not include:
             572          (A) packaging that:
             573          (I) accompanies the sale of the tangible personal property, product, or service; and
             574          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             575      service;
             576          (B) tangible personal property, a product, or a service provided free of charge with the
             577      purchase of another item of tangible personal property, a product, or a service; or
             578          (C) an item of tangible personal property, a product, or a service included in the
             579      definition of "purchase price."
             580          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
             581      product, or a service is provided free of charge with the purchase of another item of tangible
             582      personal property, a product, or a service if the sales price of the purchased item of tangible
             583      personal property, product, or service does not vary depending on the inclusion of the tangible
             584      personal property, product, or service provided free of charge.
             585          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price


             586      does not include a price that is separately identified by tangible personal property, product, or
             587      service on the following, regardless of whether the following is in paper format or electronic
             588      format:
             589          (A) a binding sales document; or
             590          (B) another supporting sales-related document that is available to a purchaser.
             591          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
             592      supporting sales-related document that is available to a purchaser includes:
             593          (A) a bill of sale;
             594          (B) a contract;
             595          (C) an invoice;
             596          (D) a lease agreement;
             597          (E) a periodic notice of rates and services;
             598          (F) a price list;
             599          (G) a rate card;
             600          (H) a receipt; or
             601          (I) a service agreement.
             602          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
             603      property or a product subject to taxation under this chapter is de minimis if:
             604          (A) the seller's purchase price of the tangible personal property or product is 10% or
             605      less of the seller's total purchase price of the bundled transaction; or
             606          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             607      the seller's total sales price of the bundled transaction.
             608          (ii) For purposes of Subsection (18)(b)(vi), a seller:
             609          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             610      purchase price or sales price of the tangible personal property or product subject to taxation
             611      under this chapter is de minimis; and
             612          (B) may not use a combination of the seller's purchase price and the seller's sales price
             613      to determine if the purchase price or sales price of the tangible personal property or product
             614      subject to taxation under this chapter is de minimis.
             615          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
             616      contract to determine if the sales price of tangible personal property or a product is de minimis.


             617          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
             618      the seller's purchase price and the seller's sales price to determine if tangible personal property
             619      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             620      price of that retail sale.
             621          (19) "Certified automated system" means software certified by the governing board of
             622      the agreement that:
             623          (a) calculates the agreement sales and use tax imposed within a local taxing
             624      jurisdiction:
             625          (i) on a transaction; and
             626          (ii) in the states that are members of the agreement;
             627          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             628      member of the agreement; and
             629          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
             630          (20) "Certified service provider" means an agent certified:
             631          (a) by the governing board of the agreement; and
             632          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             633      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             634      own purchases.
             635          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
             636      suitable for general use.
             637          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             638      commission shall make rules:
             639          (i) listing the items that constitute "clothing"; and
             640          (ii) that are consistent with the list of items that constitute "clothing" under the
             641      agreement.
             642          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             643          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             644      fuels that does not constitute industrial use under Subsection (51) or residential use under
             645      Subsection (101).
             646          (24) (a) "Common carrier" means a person engaged in or transacting the business of
             647      transporting passengers, freight, merchandise, or other property for hire within this state.


             648          (b) (i) "Common carrier" does not include a person who, at the time the person is
             649      traveling to or from that person's place of employment, transports a passenger to or from the
             650      passenger's place of employment.
             651          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
             652      Utah Administrative Rulemaking Act, the commission may make rules defining what
             653      constitutes a person's place of employment.
             654          (25) "Component part" includes:
             655          (a) poultry, dairy, and other livestock feed, and their components;
             656          (b) baling ties and twine used in the baling of hay and straw;
             657          (c) fuel used for providing temperature control of orchards and commercial
             658      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             659      off-highway type farm machinery; and
             660          (d) feed, seeds, and seedlings.
             661          (26) "Computer" means an electronic device that accepts information:
             662          (a) (i) in digital form; or
             663          (ii) in a form similar to digital form; and
             664          (b) manipulates that information for a result based on a sequence of instructions.
             665          (27) "Computer software" means a set of coded instructions designed to cause:
             666          (a) a computer to perform a task; or
             667          (b) automatic data processing equipment to perform a task.
             668          (28) "Computer software maintenance contract" means a contract that obligates a seller
             669      of computer software to provide a customer with:
             670          (a) future updates or upgrades to computer software;
             671          (b) support services with respect to computer software; or
             672          (c) a combination of Subsections (28)(a) and (b).
             673          (29) (a) "Conference bridging service" means an ancillary service that links two or
             674      more participants of an audio conference call or video conference call.
             675          (b) "Conference bridging service" may include providing a telephone number as part of
             676      the ancillary service described in Subsection (29)(a).
             677          (c) "Conference bridging service" does not include a telecommunications service used
             678      to reach the ancillary service described in Subsection (29)(a).


             679          (30) "Construction materials" means any tangible personal property that will be
             680      converted into real property.
             681          (31) "Delivered electronically" means delivered to a purchaser by means other than
             682      tangible storage media.
             683          (32) (a) "Delivery charge" means a charge:
             684          (i) by a seller of:
             685          (A) tangible personal property;
             686          (B) a product transferred electronically; or
             687          (C) services; and
             688          (ii) for preparation and delivery of the tangible personal property, product transferred
             689      electronically, or services described in Subsection (32)(a)(i) to a location designated by the
             690      purchaser.
             691          (b) "Delivery charge" includes a charge for the following:
             692          (i) transportation;
             693          (ii) shipping;
             694          (iii) postage;
             695          (iv) handling;
             696          (v) crating; or
             697          (vi) packing.
             698          (33) "Detailed telecommunications billing service" means an ancillary service of
             699      separately stating information pertaining to individual calls on a customer's billing statement.
             700          (34) "Dietary supplement" means a product, other than tobacco, that:
             701          (a) is intended to supplement the diet;
             702          (b) contains one or more of the following dietary ingredients:
             703          (i) a vitamin;
             704          (ii) a mineral;
             705          (iii) an herb or other botanical;
             706          (iv) an amino acid;
             707          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             708      dietary intake; or
             709          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient


             710      described in Subsections (34)(b)(i) through (v);
             711          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
             712          (A) tablet form;
             713          (B) capsule form;
             714          (C) powder form;
             715          (D) softgel form;
             716          (E) gelcap form; or
             717          (F) liquid form; or
             718          (ii) notwithstanding Subsection (34)(c)(i), if the product is not intended for ingestion in
             719      a form described in Subsections (34)(c)(i)(A) through (F), is not represented:
             720          (A) as conventional food; and
             721          (B) for use as a sole item of:
             722          (I) a meal; or
             723          (II) the diet; and
             724          (d) is required to be labeled as a dietary supplement:
             725          (i) identifiable by the "Supplemental Facts" box found on the label; and
             726          (ii) as required by 21 C.F.R. Sec. 101.36.
             727          (35) (a) "Direct mail" means printed material delivered or distributed by United States
             728      mail or other delivery service:
             729          (i) to:
             730          (A) a mass audience; or
             731          (B) addressees on a mailing list provided:
             732          (I) by a purchaser of the mailing list; or
             733          (II) at the discretion of the purchaser of the mailing list; and
             734          (ii) if the cost of the printed material is not billed directly to the recipients.
             735          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             736      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             737          (c) "Direct mail" does not include multiple items of printed material delivered to a
             738      single address.
             739          (36) "Directory assistance" means an ancillary service of providing:
             740          (a) address information; or


             741          (b) telephone number information.
             742          (37) (a) "Disposable home medical equipment or supplies" means medical equipment
             743      or supplies that:
             744          (i) cannot withstand repeated use; and
             745          (ii) are purchased by, for, or on behalf of a person other than:
             746          (A) a health care facility as defined in Section 26-21-2 ;
             747          (B) a health care provider as defined in Section 78B-3-403 ;
             748          (C) an office of a health care provider described in Subsection (37)(a)(ii)(B); or
             749          (D) a person similar to a person described in Subsections (37)(a)(ii)(A) through (C).
             750          (b) "Disposable home medical equipment or supplies" does not include:
             751          (i) a drug;
             752          (ii) durable medical equipment;
             753          (iii) a hearing aid;
             754          (iv) a hearing aid accessory;
             755          (v) mobility enhancing equipment; or
             756          (vi) tangible personal property used to correct impaired vision, including:
             757          (A) eyeglasses; or
             758          (B) contact lenses.
             759          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             760      commission may by rule define what constitutes medical equipment or supplies.
             761          (38) (a) "Drug" means a compound, substance, or preparation, or a component of a
             762      compound, substance, or preparation that is:
             763          (i) recognized in:
             764          (A) the official United States Pharmacopoeia;
             765          (B) the official Homeopathic Pharmacopoeia of the United States;
             766          (C) the official National Formulary; or
             767          (D) a supplement to a publication listed in Subsections (38)(a)(i)(A) through (C);
             768          (ii) intended for use in the:
             769          (A) diagnosis of disease;
             770          (B) cure of disease;
             771          (C) mitigation of disease;


             772          (D) treatment of disease; or
             773          (E) prevention of disease; or
             774          (iii) intended to affect:
             775          (A) the structure of the body; or
             776          (B) any function of the body.
             777          (b) "Drug" does not include:
             778          (i) food and food ingredients;
             779          (ii) a dietary supplement;
             780          (iii) an alcoholic beverage; or
             781          (iv) a prosthetic device.
             782          (39) (a) Except as provided in Subsection (39)(c), "durable medical equipment" means
             783      equipment that:
             784          (i) can withstand repeated use;
             785          (ii) is primarily and customarily used to serve a medical purpose;
             786          (iii) generally is not useful to a person in the absence of illness or injury; and
             787          (iv) is not worn in or on the body.
             788          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             789      equipment described in Subsection (39)(a).
             790          (c) Notwithstanding Subsection (39)(a), "durable medical equipment" does not include
             791      mobility enhancing equipment.
             792          (40) "Electronic" means:
             793          (a) relating to technology; and
             794          (b) having:
             795          (i) electrical capabilities;
             796          (ii) digital capabilities;
             797          (iii) magnetic capabilities;
             798          (iv) wireless capabilities;
             799          (v) optical capabilities;
             800          (vi) electromagnetic capabilities; or
             801          (vii) capabilities similar to Subsections (40)(b)(i) through (vi).
             802          (41) "Employee" is as defined in Section 59-10-401 .


             803          (42) "Fixed guideway" means a public transit facility that uses and occupies:
             804          (a) rail for the use of public transit; or
             805          (b) a separate right-of-way for the use of public transit.
             806          (43) "Fixed wing turbine powered aircraft" means an aircraft that:
             807          (a) is powered by turbine engines;
             808          (b) operates on jet fuel; and
             809          (c) has wings that are permanently attached to the fuselage of the aircraft.
             810          (44) "Fixed wireless service" means a telecommunications service that provides radio
             811      communication between fixed points.
             812          (45) (a) "Food and food ingredients" means substances:
             813          (i) regardless of whether the substances are in:
             814          (A) liquid form;
             815          (B) concentrated form;
             816          (C) solid form;
             817          (D) frozen form;
             818          (E) dried form; or
             819          (F) dehydrated form; and
             820          (ii) that are:
             821          (A) sold for:
             822          (I) ingestion by humans; or
             823          (II) chewing by humans; and
             824          (B) consumed for the substance's:
             825          (I) taste; or
             826          (II) nutritional value.
             827          (b) "Food and food ingredients" includes an item described in Subsection (86)(b)(iii).
             828          (c) "Food and food ingredients" does not include:
             829          (i) an alcoholic beverage;
             830          (ii) tobacco; or
             831          (iii) prepared food.
             832          (46) (a) "Fundraising sales" means sales:
             833          (i) (A) made by a school; or


             834          (B) made by a school student;
             835          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             836      materials, or provide transportation; and
             837          (iii) that are part of an officially sanctioned school activity.
             838          (b) For purposes of Subsection (46)(a)(iii), "officially sanctioned school activity"
             839      means a school activity:
             840          (i) that is conducted in accordance with a formal policy adopted by the school or school
             841      district governing the authorization and supervision of fundraising activities;
             842          (ii) that does not directly or indirectly compensate an individual teacher or other
             843      educational personnel by direct payment, commissions, or payment in kind; and
             844          (iii) the net or gross revenues from which are deposited in a dedicated account
             845      controlled by the school or school district.
             846          (47) "Geothermal energy" means energy contained in heat that continuously flows
             847      outward from the earth that is used as the sole source of energy to produce electricity.
             848          (48) "Governing board of the agreement" means the governing board of the agreement
             849      that is:
             850          (a) authorized to administer the agreement; and
             851          (b) established in accordance with the agreement.
             852          (49) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             853          (i) the executive branch of the state, including all departments, institutions, boards,
             854      divisions, bureaus, offices, commissions, and committees;
             855          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             856      Office of the Court Administrator, and similar administrative units in the judicial branch;
             857          (iii) the legislative branch of the state, including the House of Representatives, the
             858      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             859      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             860      Analyst;
             861          (iv) the National Guard;
             862          (v) an independent entity as defined in Section 63E-1-102 ; or
             863          (vi) a political subdivision as defined in Section 17B-1-102 .
             864          (b) "Governmental entity" does not include the state systems of public and higher


             865      education, including:
             866          (i) a college campus of the Utah College of Applied Technology;
             867          (ii) a school;
             868          (iii) the State Board of Education;
             869          (iv) the State Board of Regents; or
             870          (v) an institution of higher education.
             871          (50) "Hydroelectric energy" means water used as the sole source of energy to produce
             872      electricity.
             873          (51) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             874      other fuels:
             875          (a) in mining or extraction of minerals;
             876          (b) in agricultural operations to produce an agricultural product up to the time of
             877      harvest or placing the agricultural product into a storage facility, including:
             878          (i) commercial greenhouses;
             879          (ii) irrigation pumps;
             880          (iii) farm machinery;
             881          (iv) implements of husbandry as defined in [Subsection] Section 41-1a-102 [(23)] that
             882      are not registered under Title 41, Chapter 1a, Part 2, Registration; and
             883          (v) other farming activities;
             884          (c) in manufacturing tangible personal property at an establishment described in SIC
             885      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             886      Executive Office of the President, Office of Management and Budget;
             887          (d) by a scrap recycler if:
             888          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             889      one or more of the following items into prepared grades of processed materials for use in new
             890      products:
             891          (A) iron;
             892          (B) steel;
             893          (C) nonferrous metal;
             894          (D) paper;
             895          (E) glass;


             896          (F) plastic;
             897          (G) textile; or
             898          (H) rubber; and
             899          (ii) the new products under Subsection (51)(d)(i) would otherwise be made with
             900      nonrecycled materials; or
             901          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             902      cogeneration facility as defined in Section 54-2-1 .
             903          (52) (a) Except as provided in Subsection (52)(b), "installation charge" means a charge
             904      for installing:
             905          (i) tangible personal property; or
             906          (ii) a product transferred electronically.
             907          (b) "Installation charge" does not include a charge for:
             908          (i) repairs or renovations of:
             909          (A) tangible personal property; or
             910          (B) a product transferred electronically; or
             911          (ii) attaching tangible personal property or a product transferred electronically:
             912          (A) to other tangible personal property; and
             913          (B) as part of a manufacturing or fabrication process.
             914          (53) "Institution of higher education" means an institution of higher education listed in
             915      Section 53B-2-101 .
             916          (54) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             917      personal property or a product transferred electronically for:
             918          (i) (A) a fixed term; or
             919          (B) an indeterminate term; and
             920          (ii) consideration.
             921          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             922      amount of consideration may be increased or decreased by reference to the amount realized
             923      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             924      Code.
             925          (c) "Lease" or "rental" does not include:
             926          (i) a transfer of possession or control of property under a security agreement or


             927      deferred payment plan that requires the transfer of title upon completion of the required
             928      payments;
             929          (ii) a transfer of possession or control of property under an agreement that requires the
             930      transfer of title:
             931          (A) upon completion of required payments; and
             932          (B) if the payment of an option price does not exceed the greater of:
             933          (I) $100; or
             934          (II) 1% of the total required payments; or
             935          (iii) providing tangible personal property along with an operator for a fixed period of
             936      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             937      designed.
             938          (d) For purposes of Subsection (54)(c)(iii), an operator is necessary for equipment to
             939      perform as designed if the operator's duties exceed the:
             940          (i) set-up of tangible personal property;
             941          (ii) maintenance of tangible personal property; or
             942          (iii) inspection of tangible personal property.
             943          (55) "Life science establishment" means an establishment in this state that is classified
             944      under the following NAICS codes of the 2007 North American Industry Classification System
             945      of the federal Executive Office of the President, Office of Management and Budget:
             946          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
             947          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
             948      Manufacturing; or
             949          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
             950          (56) "Life science research and development facility" means a facility owned, leased,
             951      or rented by a life science establishment if research and development is performed in 51% or
             952      more of the total area of the facility.
             953          (57) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             954      if the tangible storage media is not physically transferred to the purchaser.
             955          (58) "Local taxing jurisdiction" means a:
             956          (a) county that is authorized to impose an agreement sales and use tax;
             957          (b) city that is authorized to impose an agreement sales and use tax; or


             958          (c) town that is authorized to impose an agreement sales and use tax.
             959          (59) "Manufactured home" is as defined in Section 15A-1-302 .
             960          (60) For purposes of Section 59-12-104 , "manufacturing facility" means:
             961          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             962      Industrial Classification Manual of the federal Executive Office of the President, Office of
             963      Management and Budget;
             964          (b) a scrap recycler if:
             965          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             966      one or more of the following items into prepared grades of processed materials for use in new
             967      products:
             968          (A) iron;
             969          (B) steel;
             970          (C) nonferrous metal;
             971          (D) paper;
             972          (E) glass;
             973          (F) plastic;
             974          (G) textile; or
             975          (H) rubber; and
             976          (ii) the new products under Subsection (60)(b)(i) would otherwise be made with
             977      nonrecycled materials; or
             978          (c) a cogeneration facility as defined in Section 54-2-1 .
             979          (61) "Member of the immediate family of the producer" means a person who is related
             980      to a producer described in Subsection 59-12-104 (20)(a) as a:
             981          (a) child or stepchild, regardless of whether the child or stepchild is:
             982          (i) an adopted child or adopted stepchild; or
             983          (ii) a foster child or foster stepchild;
             984          (b) grandchild or stepgrandchild;
             985          (c) grandparent or stepgrandparent;
             986          (d) nephew or stepnephew;
             987          (e) niece or stepniece;
             988          (f) parent or stepparent;


             989          (g) sibling or stepsibling;
             990          (h) spouse;
             991          (i) person who is the spouse of a person described in Subsections (61)(a) through (g);
             992      or
             993          (j) person similar to a person described in Subsections (61)(a) through (i) as
             994      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             995      Administrative Rulemaking Act.
             996          (62) "Mobile home" is as defined in Section 15A-1-302 .
             997          (63) "Mobile telecommunications service" is as defined in the Mobile
             998      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             999          (64) (a) "Mobile wireless service" means a telecommunications service, regardless of
             1000      the technology used, if:
             1001          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             1002          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             1003          (iii) the origination point described in Subsection (64)(a)(i) and the termination point
             1004      described in Subsection (64)(a)(ii) are not fixed.
             1005          (b) "Mobile wireless service" includes a telecommunications service that is provided
             1006      by a commercial mobile radio service provider.
             1007          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1008      commission may by rule define "commercial mobile radio service provider."
             1009          (65) (a) Except as provided in Subsection (65)(c), "mobility enhancing equipment"
             1010      means equipment that is:
             1011          (i) primarily and customarily used to provide or increase the ability to move from one
             1012      place to another;
             1013          (ii) appropriate for use in a:
             1014          (A) home; or
             1015          (B) motor vehicle; and
             1016          (iii) not generally used by persons with normal mobility.
             1017          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             1018      the equipment described in Subsection (65)(a).
             1019          (c) Notwithstanding Subsection (65)(a), "mobility enhancing equipment" does not


             1020      include:
             1021          (i) a motor vehicle;
             1022          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             1023      vehicle manufacturer;
             1024          (iii) durable medical equipment; or
             1025          (iv) a prosthetic device.
             1026          (66) "Model 1 seller" means a seller registered under the agreement that has selected a
             1027      certified service provider as the seller's agent to perform all of the seller's sales and use tax
             1028      functions for agreement sales and use taxes other than the seller's obligation under Section
             1029      59-12-124 to remit a tax on the seller's own purchases.
             1030          (67) "Model 2 seller" means a seller registered under the agreement that:
             1031          (a) except as provided in Subsection (67)(b), has selected a certified automated system
             1032      to perform the seller's sales tax functions for agreement sales and use taxes; and
             1033          (b) notwithstanding Subsection (67)(a), retains responsibility for remitting all of the
             1034      sales tax:
             1035          (i) collected by the seller; and
             1036          (ii) to the appropriate local taxing jurisdiction.
             1037          (68) (a) Subject to Subsection (68)(b), "model 3 seller" means a seller registered under
             1038      the agreement that has:
             1039          (i) sales in at least five states that are members of the agreement;
             1040          (ii) total annual sales revenues of at least $500,000,000;
             1041          (iii) a proprietary system that calculates the amount of tax:
             1042          (A) for an agreement sales and use tax; and
             1043          (B) due to each local taxing jurisdiction; and
             1044          (iv) entered into a performance agreement with the governing board of the agreement.
             1045          (b) For purposes of Subsection (68)(a), "model 3 seller" includes an affiliated group of
             1046      sellers using the same proprietary system.
             1047          (69) "Model 4 seller" means a seller that is registered under the agreement and is not a
             1048      model 1 seller, model 2 seller, or model 3 seller.
             1049          (70) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             1050          (71) "Motor vehicle" is as defined in Section 41-1a-102 .


             1051          (72) "Oil sands" means impregnated bituminous sands that:
             1052          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
             1053      other hydrocarbons, or otherwise treated;
             1054          (b) yield mixtures of liquid hydrocarbon; and
             1055          (c) require further processing other than mechanical blending before becoming finished
             1056      petroleum products.
             1057          (73) "Oil shale" means a group of fine black to dark brown shales containing kerogen
             1058      material that yields petroleum upon heating and distillation.
             1059          (74) "Optional computer software maintenance contract" means a computer software
             1060      maintenance contract that a customer is not obligated to purchase as a condition to the retail
             1061      sale of computer software.
             1062          (75) (a) "Other fuels" means products that burn independently to produce heat or
             1063      energy.
             1064          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             1065      personal property.
             1066          (76) (a) "Paging service" means a telecommunications service that provides
             1067      transmission of a coded radio signal for the purpose of activating a specific pager.
             1068          (b) For purposes of Subsection (76)(a), the transmission of a coded radio signal
             1069      includes a transmission by message or sound.
             1070          (77) "Pawnbroker" is as defined in Section 13-32a-102 .
             1071          (78) "Pawn transaction" is as defined in Section 13-32a-102 .
             1072          (79) (a) "Permanently attached to real property" means that for tangible personal
             1073      property attached to real property:
             1074          (i) the attachment of the tangible personal property to the real property:
             1075          (A) is essential to the use of the tangible personal property; and
             1076          (B) suggests that the tangible personal property will remain attached to the real
             1077      property in the same place over the useful life of the tangible personal property; or
             1078          (ii) if the tangible personal property is detached from the real property, the detachment
             1079      would:
             1080          (A) cause substantial damage to the tangible personal property; or
             1081          (B) require substantial alteration or repair of the real property to which the tangible


             1082      personal property is attached.
             1083          (b) "Permanently attached to real property" includes:
             1084          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             1085          (A) essential to the operation of the tangible personal property; and
             1086          (B) attached only to facilitate the operation of the tangible personal property;
             1087          (ii) a temporary detachment of tangible personal property from real property for a
             1088      repair or renovation if the repair or renovation is performed where the tangible personal
             1089      property and real property are located; or
             1090          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             1091      Subsection (79)(c)(iii) or (iv).
             1092          (c) "Permanently attached to real property" does not include:
             1093          (i) the attachment of portable or movable tangible personal property to real property if
             1094      that portable or movable tangible personal property is attached to real property only for:
             1095          (A) convenience;
             1096          (B) stability; or
             1097          (C) for an obvious temporary purpose;
             1098          (ii) the detachment of tangible personal property from real property except for the
             1099      detachment described in Subsection (79)(b)(ii);
             1100          (iii) an attachment of the following tangible personal property to real property if the
             1101      attachment to real property is only through a line that supplies water, electricity, gas,
             1102      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             1103      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             1104          (A) a computer;
             1105          (B) a telephone;
             1106          (C) a television; or
             1107          (D) tangible personal property similar to Subsections (79)(c)(iii)(A) through (C) as
             1108      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             1109      Administrative Rulemaking Act; or
             1110          (iv) an item listed in Subsection [(117)] (118)(c).
             1111          (80) "Person" includes any individual, firm, partnership, joint venture, association,
             1112      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,


             1113      municipality, district, or other local governmental entity of the state, or any group or
             1114      combination acting as a unit.
             1115          (81) "Place of primary use":
             1116          (a) for telecommunications service other than mobile telecommunications service,
             1117      means the street address representative of where the customer's use of the telecommunications
             1118      service primarily occurs, which shall be:
             1119          (i) the residential street address of the customer; or
             1120          (ii) the primary business street address of the customer; or
             1121          (b) for mobile telecommunications service, is as defined in the Mobile
             1122      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             1123          (82) (a) "Postpaid calling service" means a telecommunications service a person
             1124      obtains by making a payment on a call-by-call basis:
             1125          (i) through the use of a:
             1126          (A) bank card;
             1127          (B) credit card;
             1128          (C) debit card; or
             1129          (D) travel card; or
             1130          (ii) by a charge made to a telephone number that is not associated with the origination
             1131      or termination of the telecommunications service.
             1132          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             1133      service, that would be a prepaid wireless calling service if the service were exclusively a
             1134      telecommunications service.
             1135          (83) "Postproduction" means an activity related to the finishing or duplication of a
             1136      medium described in Subsection 59-12-104 (54)(a).
             1137          (84) "Prepaid calling service" means a telecommunications service:
             1138          (a) that allows a purchaser access to telecommunications service that is exclusively
             1139      telecommunications service;
             1140          (b) that:
             1141          (i) is paid for in advance; and
             1142          (ii) enables the origination of a call using an:
             1143          (A) access number; or


             1144          (B) authorization code;
             1145          (c) that is dialed:
             1146          (i) manually; or
             1147          (ii) electronically; and
             1148          (d) sold in predetermined units or dollars that decline:
             1149          (i) by a known amount; and
             1150          (ii) with use.
             1151          (85) "Prepaid wireless calling service" means a telecommunications service:
             1152          (a) that provides the right to utilize:
             1153          (i) mobile wireless service; and
             1154          (ii) other service that is not a telecommunications service, including:
             1155          (A) the download of a product transferred electronically;
             1156          (B) a content service; or
             1157          (C) an ancillary service;
             1158          (b) that:
             1159          (i) is paid for in advance; and
             1160          (ii) enables the origination of a call using an:
             1161          (A) access number; or
             1162          (B) authorization code;
             1163          (c) that is dialed:
             1164          (i) manually; or
             1165          (ii) electronically; and
             1166          (d) sold in predetermined units or dollars that decline:
             1167          (i) by a known amount; and
             1168          (ii) with use.
             1169          (86) (a) "Prepared food" means:
             1170          (i) food:
             1171          (A) sold in a heated state; or
             1172          (B) heated by a seller;
             1173          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             1174      item; or


             1175          (iii) except as provided in Subsection (86)(c), food sold with an eating utensil provided
             1176      by the seller, including a:
             1177          (A) plate;
             1178          (B) knife;
             1179          (C) fork;
             1180          (D) spoon;
             1181          (E) glass;
             1182          (F) cup;
             1183          (G) napkin; or
             1184          (H) straw.
             1185          (b) "Prepared food" does not include:
             1186          (i) food that a seller only:
             1187          (A) cuts;
             1188          (B) repackages; or
             1189          (C) pasteurizes; or
             1190          (ii) (A) the following:
             1191          (I) raw egg;
             1192          (II) raw fish;
             1193          (III) raw meat;
             1194          (IV) raw poultry; or
             1195          (V) a food containing an item described in Subsections (86)(b)(ii)(A)(I) through (IV);
             1196      and
             1197          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             1198      Food and Drug Administration's Food Code that a consumer cook the items described in
             1199      Subsection (86)(b)(ii)(A) to prevent food borne illness; or
             1200          (iii) the following if sold without eating utensils provided by the seller:
             1201          (A) food and food ingredients sold by a seller if the seller's proper primary
             1202      classification under the 2002 North American Industry Classification System of the federal
             1203      Executive Office of the President, Office of Management and Budget, is manufacturing in
             1204      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             1205      Manufacturing;


             1206          (B) food and food ingredients sold in an unheated state:
             1207          (I) by weight or volume; and
             1208          (II) as a single item; or
             1209          (C) a bakery item, including:
             1210          (I) a bagel;
             1211          (II) a bar;
             1212          (III) a biscuit;
             1213          (IV) bread;
             1214          (V) a bun;
             1215          (VI) a cake;
             1216          (VII) a cookie;
             1217          (VIII) a croissant;
             1218          (IX) a danish;
             1219          (X) a donut;
             1220          (XI) a muffin;
             1221          (XII) a pastry;
             1222          (XIII) a pie;
             1223          (XIV) a roll;
             1224          (XV) a tart;
             1225          (XVI) a torte; or
             1226          (XVII) a tortilla.
             1227          (c) Notwithstanding Subsection (86)(a)(iii), an eating utensil provided by the seller
             1228      does not include the following used to transport the food:
             1229          (i) a container; or
             1230          (ii) packaging.
             1231          (87) "Prescription" means an order, formula, or recipe that is issued:
             1232          (a) (i) orally;
             1233          (ii) in writing;
             1234          (iii) electronically; or
             1235          (iv) by any other manner of transmission; and
             1236          (b) by a licensed practitioner authorized by the laws of a state.


             1237          (88) (a) Except as provided in Subsection (88)(b)(ii) or (iii), "prewritten computer
             1238      software" means computer software that is not designed and developed:
             1239          (i) by the author or other creator of the computer software; and
             1240          (ii) to the specifications of a specific purchaser.
             1241          (b) "Prewritten computer software" includes:
             1242          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             1243      software is not designed and developed:
             1244          (A) by the author or other creator of the computer software; and
             1245          (B) to the specifications of a specific purchaser;
             1246          (ii) notwithstanding Subsection (88)(a), computer software designed and developed by
             1247      the author or other creator of the computer software to the specifications of a specific purchaser
             1248      if the computer software is sold to a person other than the purchaser; or
             1249          (iii) notwithstanding Subsection (88)(a) and except as provided in Subsection (88)(c),
             1250      prewritten computer software or a prewritten portion of prewritten computer software:
             1251          (A) that is modified or enhanced to any degree; and
             1252          (B) if the modification or enhancement described in Subsection (88)(b)(iii)(A) is
             1253      designed and developed to the specifications of a specific purchaser.
             1254          (c) Notwithstanding Subsection (88)(b)(iii), "prewritten computer software" does not
             1255      include a modification or enhancement described in Subsection (88)(b)(iii) if the charges for
             1256      the modification or enhancement are:
             1257          (i) reasonable; and
             1258          (ii) separately stated on the invoice or other statement of price provided to the
             1259      purchaser.
             1260          (89) (a) "Private communication service" means a telecommunications service:
             1261          (i) that entitles a customer to exclusive or priority use of one or more communications
             1262      channels between or among termination points; and
             1263          (ii) regardless of the manner in which the one or more communications channels are
             1264      connected.
             1265          (b) "Private communications service" includes the following provided in connection
             1266      with the use of one or more communications channels:
             1267          (i) an extension line;


             1268          (ii) a station;
             1269          (iii) switching capacity; or
             1270          (iv) another associated service that is provided in connection with the use of one or
             1271      more communications channels as defined in Section 59-12-215 .
             1272          (90) (a) Except as provided in Subsection (90)(b), "product transferred electronically"
             1273      means a product transferred electronically that would be subject to a tax under this chapter if
             1274      that product was transferred in a manner other than electronically.
             1275          (b) "Product transferred electronically" does not include:
             1276          (i) an ancillary service;
             1277          (ii) computer software; or
             1278          (iii) a telecommunications service.
             1279          (91) (a) "Prosthetic device" means a device that is worn on or in the body to:
             1280          (i) artificially replace a missing portion of the body;
             1281          (ii) prevent or correct a physical deformity or physical malfunction; or
             1282          (iii) support a weak or deformed portion of the body.
             1283          (b) "Prosthetic device" includes:
             1284          (i) parts used in the repairs or renovation of a prosthetic device;
             1285          (ii) replacement parts for a prosthetic device;
             1286          (iii) a dental prosthesis; or
             1287          (iv) a hearing aid.
             1288          (c) "Prosthetic device" does not include:
             1289          (i) corrective eyeglasses; or
             1290          (ii) contact lenses.
             1291          (92) (a) "Protective equipment" means an item:
             1292          (i) for human wear; and
             1293          (ii) that is:
             1294          (A) designed as protection:
             1295          (I) to the wearer against injury or disease; or
             1296          (II) against damage or injury of other persons or property; and
             1297          (B) not suitable for general use.
             1298          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the


             1299      commission shall make rules:
             1300          (i) listing the items that constitute "protective equipment"; and
             1301          (ii) that are consistent with the list of items that constitute "protective equipment"
             1302      under the agreement.
             1303          (93) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             1304      printed matter, other than a photocopy:
             1305          (i) regardless of:
             1306          (A) characteristics;
             1307          (B) copyright;
             1308          (C) form;
             1309          (D) format;
             1310          (E) method of reproduction; or
             1311          (F) source; and
             1312          (ii) made available in printed or electronic format.
             1313          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1314      commission may by rule define the term "photocopy."
             1315          (94) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             1316          (i) valued in money; and
             1317          (ii) for which tangible personal property, a product transferred electronically, or
             1318      services are:
             1319          (A) sold;
             1320          (B) leased; or
             1321          (C) rented.
             1322          (b) "Purchase price" and "sales price" include:
             1323          (i) the seller's cost of the tangible personal property, a product transferred
             1324      electronically, or services sold;
             1325          (ii) expenses of the seller, including:
             1326          (A) the cost of materials used;
             1327          (B) a labor cost;
             1328          (C) a service cost;
             1329          (D) interest;


             1330          (E) a loss;
             1331          (F) the cost of transportation to the seller; or
             1332          (G) a tax imposed on the seller;
             1333          (iii) a charge by the seller for any service necessary to complete the sale; or
             1334          (iv) consideration a seller receives from a person other than the purchaser if:
             1335          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             1336      and
             1337          (II) the consideration described in Subsection (94)(b)(iv)(A)(I) is directly related to a
             1338      price reduction or discount on the sale;
             1339          (B) the seller has an obligation to pass the price reduction or discount through to the
             1340      purchaser;
             1341          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             1342      the seller at the time of the sale to the purchaser; and
             1343          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             1344      seller to claim a price reduction or discount; and
             1345          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             1346      coupon, or other documentation with the understanding that the person other than the seller
             1347      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             1348          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             1349      organization allowed a price reduction or discount, except that a preferred customer card that is
             1350      available to any patron of a seller does not constitute membership in a group or organization
             1351      allowed a price reduction or discount; or
             1352          (III) the price reduction or discount is identified as a third party price reduction or
             1353      discount on the:
             1354          (Aa) invoice the purchaser receives; or
             1355          (Bb) certificate, coupon, or other documentation the purchaser presents.
             1356          (c) "Purchase price" and "sales price" do not include:
             1357          (i) a discount:
             1358          (A) in a form including:
             1359          (I) cash;
             1360          (II) term; or


             1361          (III) coupon;
             1362          (B) that is allowed by a seller;
             1363          (C) taken by a purchaser on a sale; and
             1364          (D) that is not reimbursed by a third party; or
             1365          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             1366      provided to the purchaser:
             1367          (A) the following from credit extended on the sale of tangible personal property or
             1368      services:
             1369          (I) a carrying charge;
             1370          (II) a financing charge; or
             1371          (III) an interest charge;
             1372          (B) a delivery charge;
             1373          (C) an installation charge;
             1374          (D) a manufacturer rebate on a motor vehicle; or
             1375          (E) a tax or fee legally imposed directly on the consumer.
             1376          (95) "Purchaser" means a person to whom:
             1377          (a) a sale of tangible personal property is made;
             1378          (b) a product is transferred electronically; or
             1379          (c) a service is furnished.
             1380          (96) "Regularly rented" means:
             1381          (a) rented to a guest for value three or more times during a calendar year; or
             1382          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1383      value.
             1384          (97) "Rental" is as defined in Subsection (54).
             1385          (98) (a) Except as provided in Subsection (98)(b), "repairs or renovations of tangible
             1386      personal property" means:
             1387          (i) a repair or renovation of tangible personal property that is not permanently attached
             1388      to real property; or
             1389          (ii) attaching tangible personal property or a product transferred electronically to other
             1390      tangible personal property or detaching tangible personal property or a product transferred
             1391      electronically from other tangible personal property if:


             1392          (A) the other tangible personal property to which the tangible personal property or
             1393      product transferred electronically is attached or from which the tangible personal property or
             1394      product transferred electronically is detached is not permanently attached to real property; and
             1395          (B) the attachment of tangible personal property or a product transferred electronically
             1396      to other tangible personal property or detachment of tangible personal property or a product
             1397      transferred electronically from other tangible personal property is made in conjunction with a
             1398      repair or replacement of tangible personal property or a product transferred electronically.
             1399          (b) "Repairs or renovations of tangible personal property" does not include:
             1400          (i) attaching prewritten computer software to other tangible personal property if the
             1401      other tangible personal property to which the prewritten computer software is attached is not
             1402      permanently attached to real property; or
             1403          (ii) detaching prewritten computer software from other tangible personal property if the
             1404      other tangible personal property from which the prewritten computer software is detached is
             1405      not permanently attached to real property.
             1406          (99) "Research and development" means the process of inquiry or experimentation
             1407      aimed at the discovery of facts, devices, technologies, or applications and the process of
             1408      preparing those devices, technologies, or applications for marketing.
             1409          (100) (a) "Residential telecommunications services" means a telecommunications
             1410      service or an ancillary service that is provided to an individual for personal use:
             1411          (i) at a residential address; or
             1412          (ii) at an institution, including a nursing home or a school, if the telecommunications
             1413      service or ancillary service is provided to and paid for by the individual residing at the
             1414      institution rather than the institution.
             1415          (b) For purposes of Subsection (100)(a)(i), a residential address includes an:
             1416          (i) apartment; or
             1417          (ii) other individual dwelling unit.
             1418          (101) "Residential use" means the use in or around a home, apartment building,
             1419      sleeping quarters, and similar facilities or accommodations.
             1420          (102) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             1421      than:
             1422          (a) resale;


             1423          (b) sublease; or
             1424          (c) subrent.
             1425          (103) (a) "Retailer" means any person engaged in a regularly organized business in
             1426      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             1427      who is selling to the user or consumer and not for resale.
             1428          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             1429      engaged in the business of selling to users or consumers within the state.
             1430          (104) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1431      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1432      Subsection 59-12-103 (1), for consideration.
             1433          (b) "Sale" includes:
             1434          (i) installment and credit sales;
             1435          (ii) any closed transaction constituting a sale;
             1436          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1437      chapter;
             1438          (iv) any transaction if the possession of property is transferred but the seller retains the
             1439      title as security for the payment of the price; and
             1440          (v) any transaction under which right to possession, operation, or use of any article of
             1441      tangible personal property is granted under a lease or contract and the transfer of possession
             1442      would be taxable if an outright sale were made.
             1443          (105) "Sale at retail" is as defined in Subsection (102).
             1444          (106) "Sale-leaseback transaction" means a transaction by which title to tangible
             1445      personal property or a product transferred electronically that is subject to a tax under this
             1446      chapter is transferred:
             1447          (a) by a purchaser-lessee;
             1448          (b) to a lessor;
             1449          (c) for consideration; and
             1450          (d) if:
             1451          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1452      of the tangible personal property or product transferred electronically;
             1453          (ii) the sale of the tangible personal property or product transferred electronically to the


             1454      lessor is intended as a form of financing:
             1455          (A) for the tangible personal property or product transferred electronically; and
             1456          (B) to the purchaser-lessee; and
             1457          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1458      is required to:
             1459          (A) capitalize the tangible personal property or product transferred electronically for
             1460      financial reporting purposes; and
             1461          (B) account for the lease payments as payments made under a financing arrangement.
             1462          (107) "Sales price" is as defined in Subsection (94).
             1463          (108) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             1464      amounts charged by a school:
             1465          (i) sales that are directly related to the school's educational functions or activities
             1466      including:
             1467          (A) the sale of:
             1468          (I) textbooks;
             1469          (II) textbook fees;
             1470          (III) laboratory fees;
             1471          (IV) laboratory supplies; or
             1472          (V) safety equipment;
             1473          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1474      that:
             1475          (I) a student is specifically required to wear as a condition of participation in a
             1476      school-related event or school-related activity; and
             1477          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1478      place of ordinary clothing;
             1479          (C) sales of the following if the net or gross revenues generated by the sales are
             1480      deposited into a school district fund or school fund dedicated to school meals:
             1481          (I) food and food ingredients; or
             1482          (II) prepared food; or
             1483          (D) transportation charges for official school activities; or
             1484          (ii) amounts paid to or amounts charged by a school for admission to a school-related


             1485      event or school-related activity.
             1486          (b) "Sales relating to schools" does not include:
             1487          (i) bookstore sales of items that are not educational materials or supplies;
             1488          (ii) except as provided in Subsection (108)(a)(i)(B):
             1489          (A) clothing;
             1490          (B) clothing accessories or equipment;
             1491          (C) protective equipment; or
             1492          (D) sports or recreational equipment; or
             1493          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1494      event or school-related activity if the amounts paid or charged are passed through to a person:
             1495          (A) other than a:
             1496          (I) school;
             1497          (II) nonprofit organization authorized by a school board or a governing body of a
             1498      private school to organize and direct a competitive secondary school activity; or
             1499          (III) nonprofit association authorized by a school board or a governing body of a
             1500      private school to organize and direct a competitive secondary school activity; and
             1501          (B) that is required to collect sales and use taxes under this chapter.
             1502          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1503      commission may make rules defining the term "passed through."
             1504          (109) For purposes of this section and Section 59-12-104 , "school":
             1505          (a) means:
             1506          (i) an elementary school or a secondary school that:
             1507          (A) is a:
             1508          (I) public school; or
             1509          (II) private school; and
             1510          (B) provides instruction for one or more grades kindergarten through 12; or
             1511          (ii) a public school district; and
             1512          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1513          (110) "Seller" means a person that makes a sale, lease, or rental of:
             1514          (a) tangible personal property;
             1515          (b) a product transferred electronically; or


             1516          (c) a service.
             1517          (111) (a) "Semiconductor fabricating, processing, research, or development materials"
             1518      means tangible personal property or a product transferred electronically if the tangible personal
             1519      property or product transferred electronically is:
             1520          (i) used primarily in the process of:
             1521          (A) (I) manufacturing a semiconductor;
             1522          (II) fabricating a semiconductor; or
             1523          (III) research or development of a:
             1524          (Aa) semiconductor; or
             1525          (Bb) semiconductor manufacturing process; or
             1526          (B) maintaining an environment suitable for a semiconductor; or
             1527          (ii) consumed primarily in the process of:
             1528          (A) (I) manufacturing a semiconductor;
             1529          (II) fabricating a semiconductor; or
             1530          (III) research or development of a:
             1531          (Aa) semiconductor; or
             1532          (Bb) semiconductor manufacturing process; or
             1533          (B) maintaining an environment suitable for a semiconductor.
             1534          (b) "Semiconductor fabricating, processing, research, or development materials"
             1535      includes:
             1536          (i) parts used in the repairs or renovations of tangible personal property or a product
             1537      transferred electronically described in Subsection (111)(a); or
             1538          (ii) a chemical, catalyst, or other material used to:
             1539          (A) produce or induce in a semiconductor a:
             1540          (I) chemical change; or
             1541          (II) physical change;
             1542          (B) remove impurities from a semiconductor; or
             1543          (C) improve the marketable condition of a semiconductor.
             1544          (112) "Senior citizen center" means a facility having the primary purpose of providing
             1545      services to the aged as defined in Section 62A-3-101 .
             1546          (113) "Simplified electronic return" means the electronic return:


             1547          (a) described in Section 318(C) of the agreement; and
             1548          (b) approved by the governing board of the agreement.
             1549          (114) "Solar energy" means the sun used as the sole source of energy for producing
             1550      electricity.
             1551          (115) (a) "Sports or recreational equipment" means an item:
             1552          (i) designed for human use; and
             1553          (ii) that is:
             1554          (A) worn in conjunction with:
             1555          (I) an athletic activity; or
             1556          (II) a recreational activity; and
             1557          (B) not suitable for general use.
             1558          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1559      commission shall make rules:
             1560          (i) listing the items that constitute "sports or recreational equipment"; and
             1561          (ii) that are consistent with the list of items that constitute "sports or recreational
             1562      equipment" under the agreement.
             1563          (116) "State" means the state of Utah, its departments, and agencies.
             1564          (117) "Storage" means any keeping or retention of tangible personal property or any
             1565      other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
             1566      sale in the regular course of business.
             1567          (118) (a) Except as provided in Subsection (118)(d) or (e), "tangible personal property"
             1568      means personal property that:
             1569          (i) may be:
             1570          (A) seen;
             1571          (B) weighed;
             1572          (C) measured;
             1573          (D) felt; or
             1574          (E) touched; or
             1575          (ii) is in any manner perceptible to the senses.
             1576          (b) "Tangible personal property" includes:
             1577          (i) electricity;


             1578          (ii) water;
             1579          (iii) gas;
             1580          (iv) steam; or
             1581          (v) prewritten computer software, regardless of the manner in which the prewritten
             1582      computer software is transferred.
             1583          (c) "Tangible personal property" includes the following regardless of whether the item
             1584      is attached to real property:
             1585          (i) a dishwasher;
             1586          (ii) a dryer;
             1587          (iii) a freezer;
             1588          (iv) a microwave;
             1589          (v) a refrigerator;
             1590          (vi) a stove;
             1591          (vii) a washer; or
             1592          (viii) an item similar to Subsections (118)(c)(i) through (vii) as determined by the
             1593      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1594      Rulemaking Act.
             1595          (d) "Tangible personal property" does not include a product that is transferred
             1596      electronically.
             1597          (e) "Tangible personal property" does not include the following if attached to real
             1598      property, regardless of whether the attachment to real property is only through a line that
             1599      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             1600      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1601      Rulemaking Act:
             1602          (i) a hot water heater;
             1603          (ii) a water filtration system; or
             1604          (iii) a water softener system.
             1605          (119) (a) "Telecommunications enabling or facilitating equipment, machinery, or
             1606      software" means an item listed in Subsection (119)(b) if that item is purchased or leased
             1607      primarily to enable or facilitate one or more of the following to function:
             1608          (i) telecommunications switching or routing equipment, machinery, or software; or


             1609          (ii) telecommunications transmission equipment, machinery, or software.
             1610          (b) The following apply to Subsection (119)(a):
             1611          (i) a pole;
             1612          (ii) software;
             1613          (iii) a supplementary power supply;
             1614          (iv) temperature or environmental equipment or machinery;
             1615          (v) test equipment;
             1616          (vi) a tower; or
             1617          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1618      Subsections (119)(b)(i) through (vi) as determined by the commission by rule made in
             1619      accordance with Subsection (119)(c).
             1620          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1621      commission may by rule define what constitutes equipment, machinery, or software that
             1622      functions similarly to an item listed in Subsections (119)(b)(i) through (vi).
             1623          (120) "Telecommunications equipment, machinery, or software required for 911
             1624      service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
             1625      Sec. 20.18.
             1626          (121) "Telecommunications maintenance or repair equipment, machinery, or software"
             1627      means equipment, machinery, or software purchased or leased primarily to maintain or repair
             1628      one or more of the following, regardless of whether the equipment, machinery, or software is
             1629      purchased or leased as a spare part or as an upgrade or modification to one or more of the
             1630      following:
             1631          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1632          (b) telecommunications switching or routing equipment, machinery, or software; or
             1633          (c) telecommunications transmission equipment, machinery, or software.
             1634          (122) (a) "Telecommunications service" means the electronic conveyance, routing, or
             1635      transmission of audio, data, video, voice, or any other information or signal to a point, or
             1636      among or between points.
             1637          (b) "Telecommunications service" includes:
             1638          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             1639      processing application is used to act:


             1640          (A) on the code, form, or protocol of the content;
             1641          (B) for the purpose of electronic conveyance, routing, or transmission; and
             1642          (C) regardless of whether the service:
             1643          (I) is referred to as voice over Internet protocol service; or
             1644          (II) is classified by the Federal Communications Commission as enhanced or value
             1645      added;
             1646          (ii) an 800 service;
             1647          (iii) a 900 service;
             1648          (iv) a fixed wireless service;
             1649          (v) a mobile wireless service;
             1650          (vi) a postpaid calling service;
             1651          (vii) a prepaid calling service;
             1652          (viii) a prepaid wireless calling service; or
             1653          (ix) a private communications service.
             1654          (c) "Telecommunications service" does not include:
             1655          (i) advertising, including directory advertising;
             1656          (ii) an ancillary service;
             1657          (iii) a billing and collection service provided to a third party;
             1658          (iv) a data processing and information service if:
             1659          (A) the data processing and information service allows data to be:
             1660          (I) (Aa) acquired;
             1661          (Bb) generated;
             1662          (Cc) processed;
             1663          (Dd) retrieved; or
             1664          (Ee) stored; and
             1665          (II) delivered by an electronic transmission to a purchaser; and
             1666          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             1667      or information;
             1668          (v) installation or maintenance of the following on a customer's premises:
             1669          (A) equipment; or
             1670          (B) wiring;


             1671          (vi) Internet access service;
             1672          (vii) a paging service;
             1673          (viii) a product transferred electronically, including:
             1674          (A) music;
             1675          (B) reading material;
             1676          (C) a ring tone;
             1677          (D) software; or
             1678          (E) video;
             1679          (ix) a radio and television audio and video programming service:
             1680          (A) regardless of the medium; and
             1681          (B) including:
             1682          (I) furnishing conveyance, routing, or transmission of a television audio and video
             1683      programming service by a programming service provider;
             1684          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             1685          (III) audio and video programming services delivered by a commercial mobile radio
             1686      service provider as defined in 47 C.F.R. Sec. 20.3;
             1687          (x) a value-added nonvoice data service; or
             1688          (xi) tangible personal property.
             1689          (123) (a) "Telecommunications service provider" means a person that:
             1690          (i) owns, controls, operates, or manages a telecommunications service; and
             1691          (ii) engages in an activity described in Subsection (123)(a)(i) for the shared use with or
             1692      resale to any person of the telecommunications service.
             1693          (b) A person described in Subsection (123)(a) is a telecommunications service provider
             1694      whether or not the Public Service Commission of Utah regulates:
             1695          (i) that person; or
             1696          (ii) the telecommunications service that the person owns, controls, operates, or
             1697      manages.
             1698          (124) (a) "Telecommunications switching or routing equipment, machinery, or
             1699      software" means an item listed in Subsection (124)(b) if that item is purchased or leased
             1700      primarily for switching or routing:
             1701          (i) an ancillary service;


             1702          (ii) data communications;
             1703          (iii) voice communications; or
             1704          (iv) telecommunications service.
             1705          (b) The following apply to Subsection (124)(a):
             1706          (i) a bridge;
             1707          (ii) a computer;
             1708          (iii) a cross connect;
             1709          (iv) a modem;
             1710          (v) a multiplexer;
             1711          (vi) plug in circuitry;
             1712          (vii) a router;
             1713          (viii) software;
             1714          (ix) a switch; or
             1715          (x) equipment, machinery, or software that functions similarly to an item listed in
             1716      Subsections (124)(b)(i) through (ix) as determined by the commission by rule made in
             1717      accordance with Subsection (124)(c).
             1718          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1719      commission may by rule define what constitutes equipment, machinery, or software that
             1720      functions similarly to an item listed in Subsections (124)(b)(i) through (ix).
             1721          (125) (a) "Telecommunications transmission equipment, machinery, or software"
             1722      means an item listed in Subsection (125)(b) if that item is purchased or leased primarily for
             1723      sending, receiving, or transporting:
             1724          (i) an ancillary service;
             1725          (ii) data communications;
             1726          (iii) voice communications; or
             1727          (iv) telecommunications service.
             1728          (b) The following apply to Subsection (125)(a):
             1729          (i) an amplifier;
             1730          (ii) a cable;
             1731          (iii) a closure;
             1732          (iv) a conduit;


             1733          (v) a controller;
             1734          (vi) a duplexer;
             1735          (vii) a filter;
             1736          (viii) an input device;
             1737          (ix) an input/output device;
             1738          (x) an insulator;
             1739          (xi) microwave machinery or equipment;
             1740          (xii) an oscillator;
             1741          (xiii) an output device;
             1742          (xiv) a pedestal;
             1743          (xv) a power converter;
             1744          (xvi) a power supply;
             1745          (xvii) a radio channel;
             1746          (xviii) a radio receiver;
             1747          (xix) a radio transmitter;
             1748          (xx) a repeater;
             1749          (xxi) software;
             1750          (xxii) a terminal;
             1751          (xxiii) a timing unit;
             1752          (xxiv) a transformer;
             1753          (xxv) a wire; or
             1754          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1755      Subsections (125)(b)(i) through (xxv) as determined by the commission by rule made in
             1756      accordance with Subsection (125)(c).
             1757          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1758      commission may by rule define what constitutes equipment, machinery, or software that
             1759      functions similarly to an item listed in Subsections (125)(b)(i) through (xxv).
             1760          (126) (a) "Textbook for a higher education course" means a textbook or other printed
             1761      material that is required for a course:
             1762          (i) offered by an institution of higher education; and
             1763          (ii) that the purchaser of the textbook or other printed material attends or will attend.


             1764          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             1765          (127) "Tobacco" means:
             1766          (a) a cigarette;
             1767          (b) a cigar;
             1768          (c) chewing tobacco;
             1769          (d) pipe tobacco; or
             1770          (e) any other item that contains tobacco.
             1771          (128) "Unassisted amusement device" means an amusement device, skill device, or
             1772      ride device that is started and stopped by the purchaser or renter of the right to use or operate
             1773      the amusement device, skill device, or ride device.
             1774          (129) (a) "Use" means the exercise of any right or power over tangible personal
             1775      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             1776      incident to the ownership or the leasing of that tangible personal property, product transferred
             1777      electronically, or service.
             1778          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             1779      property, a product transferred electronically, or a service in the regular course of business and
             1780      held for resale.
             1781          (130) "Value-added nonvoice data service" means a service:
             1782          (a) that otherwise meets the definition of a telecommunications service except that a
             1783      computer processing application is used to act primarily for a purpose other than conveyance,
             1784      routing, or transmission; and
             1785          (b) with respect to which a computer processing application is used to act on data or
             1786      information:
             1787          (i) code;
             1788          (ii) content;
             1789          (iii) form; or
             1790          (iv) protocol.
             1791          (131) (a) Subject to Subsection (131)(b), "vehicle" means the following that are
             1792      required to be titled, registered, or titled and registered:
             1793          (i) an aircraft as defined in Section 72-10-102 ;
             1794          (ii) a vehicle as defined in Section 41-1a-102 ;


             1795          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             1796          (iv) a vessel as defined in Section 41-1a-102 .
             1797          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             1798          (i) a vehicle described in Subsection (131)(a); or
             1799          (ii) (A) a locomotive;
             1800          (B) a freight car;
             1801          (C) railroad work equipment; or
             1802          (D) other railroad rolling stock.
             1803          (132) "Vehicle dealer" means a person engaged in the business of buying, selling, or
             1804      exchanging a vehicle as defined in Subsection (131).
             1805          (133) (a) "Vertical service" means an ancillary service that:
             1806          (i) is offered in connection with one or more telecommunications services; and
             1807          (ii) offers an advanced calling feature that allows a customer to:
             1808          (A) identify a caller; and
             1809          (B) manage multiple calls and call connections.
             1810          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             1811      conference bridging service.
             1812          (134) (a) "Voice mail service" means an ancillary service that enables a customer to
             1813      receive, send, or store a recorded message.
             1814          (b) "Voice mail service" does not include a vertical service that a customer is required
             1815      to have in order to utilize a voice mail service.
             1816          (135) (a) Except as provided in Subsection (135)(b), "waste energy facility" means a
             1817      facility that generates electricity:
             1818          (i) using as the primary source of energy waste materials that would be placed in a
             1819      landfill or refuse pit if it were not used to generate electricity, including:
             1820          (A) tires;
             1821          (B) waste coal;
             1822          (C) oil shale; or
             1823          (D) municipal solid waste; and
             1824          (ii) in amounts greater than actually required for the operation of the facility.
             1825          (b) "Waste energy facility" does not include a facility that incinerates:


             1826          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
             1827          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             1828          (136) "Watercraft" means a vessel as defined in Section 73-18-2 .
             1829          (137) "Wind energy" means wind used as the sole source of energy to produce
             1830      electricity.
             1831          (138) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
             1832      location by the United States Postal Service.
             1833          Section 9. Section 59-12-102 (Effective 07/01/14) is amended to read:
             1834           59-12-102 (Effective 07/01/14). Definitions.
             1835          As used in this chapter:
             1836          (1) "800 service" means a telecommunications service that:
             1837          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             1838          (b) is typically marketed:
             1839          (i) under the name 800 toll-free calling;
             1840          (ii) under the name 855 toll-free calling;
             1841          (iii) under the name 866 toll-free calling;
             1842          (iv) under the name 877 toll-free calling;
             1843          (v) under the name 888 toll-free calling; or
             1844          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             1845      Federal Communications Commission.
             1846          (2) (a) "900 service" means an inbound toll telecommunications service that:
             1847          (i) a subscriber purchases;
             1848          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             1849      the subscriber's:
             1850          (A) prerecorded announcement; or
             1851          (B) live service; and
             1852          (iii) is typically marketed:
             1853          (A) under the name 900 service; or
             1854          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             1855      Communications Commission.
             1856          (b) "900 service" does not include a charge for:


             1857          (i) a collection service a seller of a telecommunications service provides to a
             1858      subscriber; or
             1859          (ii) the following a subscriber sells to the subscriber's customer:
             1860          (A) a product; or
             1861          (B) a service.
             1862          (3) (a) "Admission or user fees" includes season passes.
             1863          (b) "Admission or user fees" does not include annual membership dues to private
             1864      organizations.
             1865          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             1866      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             1867      Agreement after November 12, 2002.
             1868          (5) "Agreement combined tax rate" means the sum of the tax rates:
             1869          (a) listed under Subsection (6); and
             1870          (b) that are imposed within a local taxing jurisdiction.
             1871          (6) "Agreement sales and use tax" means a tax imposed under:
             1872          (a) Subsection 59-12-103 (2)(a)(i)(A);
             1873          (b) Subsection 59-12-103 (2)(b)(i);
             1874          (c) Subsection 59-12-103 (2)(c)(i);
             1875          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             1876          (e) Section 59-12-204 ;
             1877          (f) Section 59-12-401 ;
             1878          (g) Section 59-12-402 ;
             1879          (h) Section 59-12-703 ;
             1880          (i) Section 59-12-802 ;
             1881          (j) Section 59-12-804 ;
             1882          (k) Section 59-12-1102 ;
             1883          (l) Section 59-12-1302 ;
             1884          (m) Section 59-12-1402 ;
             1885          (n) Section 59-12-1802 ;
             1886          (o) Section 59-12-2003 ;
             1887          (p) Section 59-12-2103 ;


             1888          (q) Section 59-12-2213 ;
             1889          (r) Section 59-12-2214 ;
             1890          (s) Section 59-12-2215 ;
             1891          (t) Section 59-12-2216 ;
             1892          (u) Section 59-12-2217 ; or
             1893          (v) Section 59-12-2218 .
             1894          (7) "Aircraft" is as defined in Section 72-10-102 .
             1895          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             1896          (a) except for:
             1897          (i) an airline as defined in Section 59-2-102 ; or
             1898          (ii) an affiliated group, as defined in Section 59-7-101 , except that "affiliated group"
             1899      includes a corporation that is qualified to do business but is not otherwise doing business in the
             1900      state, of an airline; and
             1901          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             1902      whether the business entity performs the following in this state:
             1903          (i) check, diagnose, overhaul, and repair:
             1904          (A) an onboard system of a fixed wing turbine powered aircraft; and
             1905          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             1906          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             1907      engine;
             1908          (iii) perform at least the following maintenance on a fixed wing turbine powered
             1909      aircraft:
             1910          (A) an inspection;
             1911          (B) a repair, including a structural repair or modification;
             1912          (C) changing landing gear; and
             1913          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             1914          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             1915      completely apply new paint to the fixed wing turbine powered aircraft; and
             1916          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             1917      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             1918      authority that certifies the fixed wing turbine powered aircraft.


             1919          (9) "Alcoholic beverage" means a beverage that:
             1920          (a) is suitable for human consumption; and
             1921          (b) contains .5% or more alcohol by volume.
             1922          (10) "Alternative energy" means:
             1923          (a) biomass energy;
             1924          (b) geothermal energy;
             1925          (c) hydroelectric energy;
             1926          (d) solar energy;
             1927          (e) wind energy; or
             1928          (f) energy that is derived from:
             1929          (i) coal-to-liquids;
             1930          (ii) nuclear fuel;
             1931          (iii) oil-impregnated diatomaceous earth;
             1932          (iv) oil sands;
             1933          (v) oil shale; or
             1934          (vi) petroleum coke.
             1935          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
             1936      facility" means a facility that:
             1937          (i) uses alternative energy to produce electricity; and
             1938          (ii) has a production capacity of [2] two megawatts or greater.
             1939          (b) A facility is an alternative energy electricity production facility regardless of
             1940      whether the facility is:
             1941          (i) connected to an electric grid; or
             1942          (ii) located on the premises of an electricity consumer.
             1943          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
             1944      provision of telecommunications service.
             1945          (b) "Ancillary service" includes:
             1946          (i) a conference bridging service;
             1947          (ii) a detailed communications billing service;
             1948          (iii) directory assistance;
             1949          (iv) a vertical service; or


             1950          (v) a voice mail service.
             1951          (13) "Area agency on aging" is as defined in Section 62A-3-101 .
             1952          (14) "Assisted amusement device" means an amusement device, skill device, or ride
             1953      device that is started and stopped by an individual:
             1954          (a) who is not the purchaser or renter of the right to use or operate the amusement
             1955      device, skill device, or ride device; and
             1956          (b) at the direction of the seller of the right to use the amusement device, skill device,
             1957      or ride device.
             1958          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
             1959      washing of tangible personal property if the cleaning or washing labor is primarily performed
             1960      by an individual:
             1961          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             1962      property; and
             1963          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             1964      property.
             1965          (16) "Authorized carrier" means:
             1966          (a) in the case of vehicles operated over public highways, the holder of credentials
             1967      indicating that the vehicle is or will be operated pursuant to both the International Registration
             1968      Plan and the International Fuel Tax Agreement;
             1969          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             1970      certificate or air carrier's operating certificate; or
             1971          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             1972      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             1973          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
             1974      following that is used as the primary source of energy to produce fuel or electricity:
             1975          (i) material from a plant or tree; or
             1976          (ii) other organic matter that is available on a renewable basis, including:
             1977          (A) slash and brush from forests and woodlands;
             1978          (B) animal waste;
             1979          (C) methane produced:
             1980          (I) at landfills; or


             1981          (II) as a byproduct of the treatment of wastewater residuals;
             1982          (D) aquatic plants; and
             1983          (E) agricultural products.
             1984          (b) "Biomass energy" does not include:
             1985          (i) black liquor;
             1986          (ii) treated woods; or
             1987          (iii) biomass from municipal solid waste other than methane produced:
             1988          (A) at landfills; or
             1989          (B) as a byproduct of the treatment of wastewater residuals.
             1990          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             1991      property, products, or services if the tangible personal property, products, or services are:
             1992          (i) distinct and identifiable; and
             1993          (ii) sold for one nonitemized price.
             1994          (b) "Bundled transaction" does not include:
             1995          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             1996      the basis of the selection by the purchaser of the items of tangible personal property included in
             1997      the transaction;
             1998          (ii) the sale of real property;
             1999          (iii) the sale of services to real property;
             2000          (iv) the retail sale of tangible personal property and a service if:
             2001          (A) the tangible personal property:
             2002          (I) is essential to the use of the service; and
             2003          (II) is provided exclusively in connection with the service; and
             2004          (B) the service is the true object of the transaction;
             2005          (v) the retail sale of two services if:
             2006          (A) one service is provided that is essential to the use or receipt of a second service;
             2007          (B) the first service is provided exclusively in connection with the second service; and
             2008          (C) the second service is the true object of the transaction;
             2009          (vi) a transaction that includes tangible personal property or a product subject to
             2010      taxation under this chapter and tangible personal property or a product that is not subject to
             2011      taxation under this chapter if the:


             2012          (A) seller's purchase price of the tangible personal property or product subject to
             2013      taxation under this chapter is de minimis; or
             2014          (B) seller's sales price of the tangible personal property or product subject to taxation
             2015      under this chapter is de minimis; and
             2016          (vii) the retail sale of tangible personal property that is not subject to taxation under
             2017      this chapter and tangible personal property that is subject to taxation under this chapter if:
             2018          (A) that retail sale includes:
             2019          (I) food and food ingredients;
             2020          (II) a drug;
             2021          (III) durable medical equipment;
             2022          (IV) mobility enhancing equipment;
             2023          (V) an over-the-counter drug;
             2024          (VI) a prosthetic device; or
             2025          (VII) a medical supply; and
             2026          (B) subject to Subsection (18)(f):
             2027          (I) the seller's purchase price of the tangible personal property subject to taxation under
             2028      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             2029          (II) the seller's sales price of the tangible personal property subject to taxation under
             2030      this chapter is 50% or less of the seller's total sales price of that retail sale.
             2031          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
             2032      service that is distinct and identifiable does not include:
             2033          (A) packaging that:
             2034          (I) accompanies the sale of the tangible personal property, product, or service; and
             2035          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             2036      service;
             2037          (B) tangible personal property, a product, or a service provided free of charge with the
             2038      purchase of another item of tangible personal property, a product, or a service; or
             2039          (C) an item of tangible personal property, a product, or a service included in the
             2040      definition of "purchase price."
             2041          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
             2042      product, or a service is provided free of charge with the purchase of another item of tangible


             2043      personal property, a product, or a service if the sales price of the purchased item of tangible
             2044      personal property, product, or service does not vary depending on the inclusion of the tangible
             2045      personal property, product, or service provided free of charge.
             2046          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
             2047      does not include a price that is separately identified by tangible personal property, product, or
             2048      service on the following, regardless of whether the following is in paper format or electronic
             2049      format:
             2050          (A) a binding sales document; or
             2051          (B) another supporting sales-related document that is available to a purchaser.
             2052          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
             2053      supporting sales-related document that is available to a purchaser includes:
             2054          (A) a bill of sale;
             2055          (B) a contract;
             2056          (C) an invoice;
             2057          (D) a lease agreement;
             2058          (E) a periodic notice of rates and services;
             2059          (F) a price list;
             2060          (G) a rate card;
             2061          (H) a receipt; or
             2062          (I) a service agreement.
             2063          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
             2064      property or a product subject to taxation under this chapter is de minimis if:
             2065          (A) the seller's purchase price of the tangible personal property or product is 10% or
             2066      less of the seller's total purchase price of the bundled transaction; or
             2067          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             2068      the seller's total sales price of the bundled transaction.
             2069          (ii) For purposes of Subsection (18)(b)(vi), a seller:
             2070          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             2071      purchase price or sales price of the tangible personal property or product subject to taxation
             2072      under this chapter is de minimis; and
             2073          (B) may not use a combination of the seller's purchase price and the seller's sales price


             2074      to determine if the purchase price or sales price of the tangible personal property or product
             2075      subject to taxation under this chapter is de minimis.
             2076          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
             2077      contract to determine if the sales price of tangible personal property or a product is de minimis.
             2078          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
             2079      the seller's purchase price and the seller's sales price to determine if tangible personal property
             2080      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             2081      price of that retail sale.
             2082          (19) "Certified automated system" means software certified by the governing board of
             2083      the agreement that:
             2084          (a) calculates the agreement sales and use tax imposed within a local taxing
             2085      jurisdiction:
             2086          (i) on a transaction; and
             2087          (ii) in the states that are members of the agreement;
             2088          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             2089      member of the agreement; and
             2090          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
             2091          (20) "Certified service provider" means an agent certified:
             2092          (a) by the governing board of the agreement; and
             2093          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             2094      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             2095      own purchases.
             2096          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
             2097      suitable for general use.
             2098          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2099      commission shall make rules:
             2100          (i) listing the items that constitute "clothing"; and
             2101          (ii) that are consistent with the list of items that constitute "clothing" under the
             2102      agreement.
             2103          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             2104          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other


             2105      fuels that does not constitute industrial use under Subsection (51) or residential use under
             2106      Subsection (101).
             2107          (24) (a) "Common carrier" means a person engaged in or transacting the business of
             2108      transporting passengers, freight, merchandise, or other property for hire within this state.
             2109          (b) (i) "Common carrier" does not include a person who, at the time the person is
             2110      traveling to or from that person's place of employment, transports a passenger to or from the
             2111      passenger's place of employment.
             2112          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
             2113      Utah Administrative Rulemaking Act, the commission may make rules defining what
             2114      constitutes a person's place of employment.
             2115          (25) "Component part" includes:
             2116          (a) poultry, dairy, and other livestock feed, and their components;
             2117          (b) baling ties and twine used in the baling of hay and straw;
             2118          (c) fuel used for providing temperature control of orchards and commercial
             2119      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             2120      off-highway type farm machinery; and
             2121          (d) feed, seeds, and seedlings.
             2122          (26) "Computer" means an electronic device that accepts information:
             2123          (a) (i) in digital form; or
             2124          (ii) in a form similar to digital form; and
             2125          (b) manipulates that information for a result based on a sequence of instructions.
             2126          (27) "Computer software" means a set of coded instructions designed to cause:
             2127          (a) a computer to perform a task; or
             2128          (b) automatic data processing equipment to perform a task.
             2129          (28) "Computer software maintenance contract" means a contract that obligates a seller
             2130      of computer software to provide a customer with:
             2131          (a) future updates or upgrades to computer software;
             2132          (b) support services with respect to computer software; or
             2133          (c) a combination of Subsections (28)(a) and (b).
             2134          (29) (a) "Conference bridging service" means an ancillary service that links two or
             2135      more participants of an audio conference call or video conference call.


             2136          (b) "Conference bridging service" may include providing a telephone number as part of
             2137      the ancillary service described in Subsection (29)(a).
             2138          (c) "Conference bridging service" does not include a telecommunications service used
             2139      to reach the ancillary service described in Subsection (29)(a).
             2140          (30) "Construction materials" means any tangible personal property that will be
             2141      converted into real property.
             2142          (31) "Delivered electronically" means delivered to a purchaser by means other than
             2143      tangible storage media.
             2144          (32) (a) "Delivery charge" means a charge:
             2145          (i) by a seller of:
             2146          (A) tangible personal property;
             2147          (B) a product transferred electronically; or
             2148          (C) services; and
             2149          (ii) for preparation and delivery of the tangible personal property, product transferred
             2150      electronically, or services described in Subsection (32)(a)(i) to a location designated by the
             2151      purchaser.
             2152          (b) "Delivery charge" includes a charge for the following:
             2153          (i) transportation;
             2154          (ii) shipping;
             2155          (iii) postage;
             2156          (iv) handling;
             2157          (v) crating; or
             2158          (vi) packing.
             2159          (33) "Detailed telecommunications billing service" means an ancillary service of
             2160      separately stating information pertaining to individual calls on a customer's billing statement.
             2161          (34) "Dietary supplement" means a product, other than tobacco, that:
             2162          (a) is intended to supplement the diet;
             2163          (b) contains one or more of the following dietary ingredients:
             2164          (i) a vitamin;
             2165          (ii) a mineral;
             2166          (iii) an herb or other botanical;


             2167          (iv) an amino acid;
             2168          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             2169      dietary intake; or
             2170          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             2171      described in Subsections (34)(b)(i) through (v);
             2172          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
             2173          (A) tablet form;
             2174          (B) capsule form;
             2175          (C) powder form;
             2176          (D) softgel form;
             2177          (E) gelcap form; or
             2178          (F) liquid form; or
             2179          (ii) notwithstanding Subsection (34)(c)(i), if the product is not intended for ingestion in
             2180      a form described in Subsections (34)(c)(i)(A) through (F), is not represented:
             2181          (A) as conventional food; and
             2182          (B) for use as a sole item of:
             2183          (I) a meal; or
             2184          (II) the diet; and
             2185          (d) is required to be labeled as a dietary supplement:
             2186          (i) identifiable by the "Supplemental Facts" box found on the label; and
             2187          (ii) as required by 21 C.F.R. Sec. 101.36.
             2188          (35) (a) "Direct mail" means printed material delivered or distributed by United States
             2189      mail or other delivery service:
             2190          (i) to:
             2191          (A) a mass audience; or
             2192          (B) addressees on a mailing list provided:
             2193          (I) by a purchaser of the mailing list; or
             2194          (II) at the discretion of the purchaser of the mailing list; and
             2195          (ii) if the cost of the printed material is not billed directly to the recipients.
             2196          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             2197      purchaser to a seller of direct mail for inclusion in a package containing the printed material.


             2198          (c) "Direct mail" does not include multiple items of printed material delivered to a
             2199      single address.
             2200          (36) "Directory assistance" means an ancillary service of providing:
             2201          (a) address information; or
             2202          (b) telephone number information.
             2203          (37) (a) "Disposable home medical equipment or supplies" means medical equipment
             2204      or supplies that:
             2205          (i) cannot withstand repeated use; and
             2206          (ii) are purchased by, for, or on behalf of a person other than:
             2207          (A) a health care facility as defined in Section 26-21-2 ;
             2208          (B) a health care provider as defined in Section 78B-3-403 ;
             2209          (C) an office of a health care provider described in Subsection (37)(a)(ii)(B); or
             2210          (D) a person similar to a person described in Subsections (37)(a)(ii)(A) through (C).
             2211          (b) "Disposable home medical equipment or supplies" does not include:
             2212          (i) a drug;
             2213          (ii) durable medical equipment;
             2214          (iii) a hearing aid;
             2215          (iv) a hearing aid accessory;
             2216          (v) mobility enhancing equipment; or
             2217          (vi) tangible personal property used to correct impaired vision, including:
             2218          (A) eyeglasses; or
             2219          (B) contact lenses.
             2220          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2221      commission may by rule define what constitutes medical equipment or supplies.
             2222          (38) (a) "Drug" means a compound, substance, or preparation, or a component of a
             2223      compound, substance, or preparation that is:
             2224          (i) recognized in:
             2225          (A) the official United States Pharmacopoeia;
             2226          (B) the official Homeopathic Pharmacopoeia of the United States;
             2227          (C) the official National Formulary; or
             2228          (D) a supplement to a publication listed in Subsections (38)(a)(i)(A) through (C);


             2229          (ii) intended for use in the:
             2230          (A) diagnosis of disease;
             2231          (B) cure of disease;
             2232          (C) mitigation of disease;
             2233          (D) treatment of disease; or
             2234          (E) prevention of disease; or
             2235          (iii) intended to affect:
             2236          (A) the structure of the body; or
             2237          (B) any function of the body.
             2238          (b) "Drug" does not include:
             2239          (i) food and food ingredients;
             2240          (ii) a dietary supplement;
             2241          (iii) an alcoholic beverage; or
             2242          (iv) a prosthetic device.
             2243          (39) (a) Except as provided in Subsection (39)(c), "durable medical equipment" means
             2244      equipment that:
             2245          (i) can withstand repeated use;
             2246          (ii) is primarily and customarily used to serve a medical purpose;
             2247          (iii) generally is not useful to a person in the absence of illness or injury; and
             2248          (iv) is not worn in or on the body.
             2249          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             2250      equipment described in Subsection (39)(a).
             2251          (c) Notwithstanding Subsection (39)(a), "durable medical equipment" does not include
             2252      mobility enhancing equipment.
             2253          (40) "Electronic" means:
             2254          (a) relating to technology; and
             2255          (b) having:
             2256          (i) electrical capabilities;
             2257          (ii) digital capabilities;
             2258          (iii) magnetic capabilities;
             2259          (iv) wireless capabilities;


             2260          (v) optical capabilities;
             2261          (vi) electromagnetic capabilities; or
             2262          (vii) capabilities similar to Subsections (40)(b)(i) through (vi).
             2263          (41) "Employee" is as defined in Section 59-10-401 .
             2264          (42) "Fixed guideway" means a public transit facility that uses and occupies:
             2265          (a) rail for the use of public transit; or
             2266          (b) a separate right-of-way for the use of public transit.
             2267          (43) "Fixed wing turbine powered aircraft" means an aircraft that:
             2268          (a) is powered by turbine engines;
             2269          (b) operates on jet fuel; and
             2270          (c) has wings that are permanently attached to the fuselage of the aircraft.
             2271          (44) "Fixed wireless service" means a telecommunications service that provides radio
             2272      communication between fixed points.
             2273          (45) (a) "Food and food ingredients" means substances:
             2274          (i) regardless of whether the substances are in:
             2275          (A) liquid form;
             2276          (B) concentrated form;
             2277          (C) solid form;
             2278          (D) frozen form;
             2279          (E) dried form; or
             2280          (F) dehydrated form; and
             2281          (ii) that are:
             2282          (A) sold for:
             2283          (I) ingestion by humans; or
             2284          (II) chewing by humans; and
             2285          (B) consumed for the substance's:
             2286          (I) taste; or
             2287          (II) nutritional value.
             2288          (b) "Food and food ingredients" includes an item described in Subsection (86)(b)(iii).
             2289          (c) "Food and food ingredients" does not include:
             2290          (i) an alcoholic beverage;


             2291          (ii) tobacco; or
             2292          (iii) prepared food.
             2293          (46) (a) "Fundraising sales" means sales:
             2294          (i) (A) made by a school; or
             2295          (B) made by a school student;
             2296          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             2297      materials, or provide transportation; and
             2298          (iii) that are part of an officially sanctioned school activity.
             2299          (b) For purposes of Subsection (46)(a)(iii), "officially sanctioned school activity"
             2300      means a school activity:
             2301          (i) that is conducted in accordance with a formal policy adopted by the school or school
             2302      district governing the authorization and supervision of fundraising activities;
             2303          (ii) that does not directly or indirectly compensate an individual teacher or other
             2304      educational personnel by direct payment, commissions, or payment in kind; and
             2305          (iii) the net or gross revenues from which are deposited in a dedicated account
             2306      controlled by the school or school district.
             2307          (47) "Geothermal energy" means energy contained in heat that continuously flows
             2308      outward from the earth that is used as the sole source of energy to produce electricity.
             2309          (48) "Governing board of the agreement" means the governing board of the agreement
             2310      that is:
             2311          (a) authorized to administer the agreement; and
             2312          (b) established in accordance with the agreement.
             2313          (49) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             2314          (i) the executive branch of the state, including all departments, institutions, boards,
             2315      divisions, bureaus, offices, commissions, and committees;
             2316          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             2317      Office of the Court Administrator, and similar administrative units in the judicial branch;
             2318          (iii) the legislative branch of the state, including the House of Representatives, the
             2319      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             2320      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             2321      Analyst;


             2322          (iv) the National Guard;
             2323          (v) an independent entity as defined in Section 63E-1-102 ; or
             2324          (vi) a political subdivision as defined in Section 17B-1-102 .
             2325          (b) "Governmental entity" does not include the state systems of public and higher
             2326      education, including:
             2327          (i) a college campus of the Utah College of Applied Technology;
             2328          (ii) a school;
             2329          (iii) the State Board of Education;
             2330          (iv) the State Board of Regents; or
             2331          (v) an institution of higher education.
             2332          (50) "Hydroelectric energy" means water used as the sole source of energy to produce
             2333      electricity.
             2334          (51) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             2335      other fuels:
             2336          (a) in mining or extraction of minerals;
             2337          (b) in agricultural operations to produce an agricultural product up to the time of
             2338      harvest or placing the agricultural product into a storage facility, including:
             2339          (i) commercial greenhouses;
             2340          (ii) irrigation pumps;
             2341          (iii) farm machinery;
             2342          (iv) implements of husbandry as defined in [Subsection] Section 41-1a-102 [(23)] that
             2343      are not registered under Title 41, Chapter 1a, Part 2, Registration; and
             2344          (v) other farming activities;
             2345          (c) in manufacturing tangible personal property at an establishment described in SIC
             2346      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             2347      Executive Office of the President, Office of Management and Budget;
             2348          (d) by a scrap recycler if:
             2349          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             2350      one or more of the following items into prepared grades of processed materials for use in new
             2351      products:
             2352          (A) iron;


             2353          (B) steel;
             2354          (C) nonferrous metal;
             2355          (D) paper;
             2356          (E) glass;
             2357          (F) plastic;
             2358          (G) textile; or
             2359          (H) rubber; and
             2360          (ii) the new products under Subsection (51)(d)(i) would otherwise be made with
             2361      nonrecycled materials; or
             2362          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             2363      cogeneration facility as defined in Section 54-2-1 .
             2364          (52) (a) Except as provided in Subsection (52)(b), "installation charge" means a charge
             2365      for installing:
             2366          (i) tangible personal property; or
             2367          (ii) a product transferred electronically.
             2368          (b) "Installation charge" does not include a charge for:
             2369          (i) repairs or renovations of:
             2370          (A) tangible personal property; or
             2371          (B) a product transferred electronically; or
             2372          (ii) attaching tangible personal property or a product transferred electronically:
             2373          (A) to other tangible personal property; and
             2374          (B) as part of a manufacturing or fabrication process.
             2375          (53) "Institution of higher education" means an institution of higher education listed in
             2376      Section 53B-2-101 .
             2377          (54) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             2378      personal property or a product transferred electronically for:
             2379          (i) (A) a fixed term; or
             2380          (B) an indeterminate term; and
             2381          (ii) consideration.
             2382          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             2383      amount of consideration may be increased or decreased by reference to the amount realized


             2384      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             2385      Code.
             2386          (c) "Lease" or "rental" does not include:
             2387          (i) a transfer of possession or control of property under a security agreement or
             2388      deferred payment plan that requires the transfer of title upon completion of the required
             2389      payments;
             2390          (ii) a transfer of possession or control of property under an agreement that requires the
             2391      transfer of title:
             2392          (A) upon completion of required payments; and
             2393          (B) if the payment of an option price does not exceed the greater of:
             2394          (I) $100; or
             2395          (II) 1% of the total required payments; or
             2396          (iii) providing tangible personal property along with an operator for a fixed period of
             2397      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             2398      designed.
             2399          (d) For purposes of Subsection (54)(c)(iii), an operator is necessary for equipment to
             2400      perform as designed if the operator's duties exceed the:
             2401          (i) set-up of tangible personal property;
             2402          (ii) maintenance of tangible personal property; or
             2403          (iii) inspection of tangible personal property.
             2404          (55) "Life science establishment" means an establishment in this state that is classified
             2405      under the following NAICS codes of the 2007 North American Industry Classification System
             2406      of the federal Executive Office of the President, Office of Management and Budget:
             2407          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
             2408          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
             2409      Manufacturing; or
             2410          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
             2411          (56) "Life science research and development facility" means a facility owned, leased,
             2412      or rented by a life science establishment if research and development is performed in 51% or
             2413      more of the total area of the facility.
             2414          (57) "Load and leave" means delivery to a purchaser by use of a tangible storage media


             2415      if the tangible storage media is not physically transferred to the purchaser.
             2416          (58) "Local taxing jurisdiction" means a:
             2417          (a) county that is authorized to impose an agreement sales and use tax;
             2418          (b) city that is authorized to impose an agreement sales and use tax; or
             2419          (c) town that is authorized to impose an agreement sales and use tax.
             2420          (59) "Manufactured home" is as defined in Section 15A-1-302 .
             2421          (60) For purposes of Section 59-12-104 , "manufacturing facility" means:
             2422          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             2423      Industrial Classification Manual of the federal Executive Office of the President, Office of
             2424      Management and Budget;
             2425          (b) a scrap recycler if:
             2426          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             2427      one or more of the following items into prepared grades of processed materials for use in new
             2428      products:
             2429          (A) iron;
             2430          (B) steel;
             2431          (C) nonferrous metal;
             2432          (D) paper;
             2433          (E) glass;
             2434          (F) plastic;
             2435          (G) textile; or
             2436          (H) rubber; and
             2437          (ii) the new products under Subsection (60)(b)(i) would otherwise be made with
             2438      nonrecycled materials; or
             2439          (c) a cogeneration facility as defined in Section 54-2-1 .
             2440          (61) "Member of the immediate family of the producer" means a person who is related
             2441      to a producer described in Subsection 59-12-104 (20)(a) as a:
             2442          (a) child or stepchild, regardless of whether the child or stepchild is:
             2443          (i) an adopted child or adopted stepchild; or
             2444          (ii) a foster child or foster stepchild;
             2445          (b) grandchild or stepgrandchild;


             2446          (c) grandparent or stepgrandparent;
             2447          (d) nephew or stepnephew;
             2448          (e) niece or stepniece;
             2449          (f) parent or stepparent;
             2450          (g) sibling or stepsibling;
             2451          (h) spouse;
             2452          (i) person who is the spouse of a person described in Subsections (61)(a) through (g);
             2453      or
             2454          (j) person similar to a person described in Subsections (61)(a) through (i) as
             2455      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             2456      Administrative Rulemaking Act.
             2457          (62) "Mobile home" is as defined in Section 15A-1-302 .
             2458          (63) "Mobile telecommunications service" is as defined in the Mobile
             2459      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             2460          (64) (a) "Mobile wireless service" means a telecommunications service, regardless of
             2461      the technology used, if:
             2462          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             2463          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             2464          (iii) the origination point described in Subsection (64)(a)(i) and the termination point
             2465      described in Subsection (64)(a)(ii) are not fixed.
             2466          (b) "Mobile wireless service" includes a telecommunications service that is provided
             2467      by a commercial mobile radio service provider.
             2468          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2469      commission may by rule define "commercial mobile radio service provider."
             2470          (65) (a) Except as provided in Subsection (65)(c), "mobility enhancing equipment"
             2471      means equipment that is:
             2472          (i) primarily and customarily used to provide or increase the ability to move from one
             2473      place to another;
             2474          (ii) appropriate for use in a:
             2475          (A) home; or
             2476          (B) motor vehicle; and


             2477          (iii) not generally used by persons with normal mobility.
             2478          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             2479      the equipment described in Subsection (65)(a).
             2480          (c) Notwithstanding Subsection (65)(a), "mobility enhancing equipment" does not
             2481      include:
             2482          (i) a motor vehicle;
             2483          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             2484      vehicle manufacturer;
             2485          (iii) durable medical equipment; or
             2486          (iv) a prosthetic device.
             2487          (66) "Model 1 seller" means a seller registered under the agreement that has selected a
             2488      certified service provider as the seller's agent to perform all of the seller's sales and use tax
             2489      functions for agreement sales and use taxes other than the seller's obligation under Section
             2490      59-12-124 to remit a tax on the seller's own purchases.
             2491          (67) "Model 2 seller" means a seller registered under the agreement that:
             2492          (a) except as provided in Subsection (67)(b), has selected a certified automated system
             2493      to perform the seller's sales tax functions for agreement sales and use taxes; and
             2494          (b) notwithstanding Subsection (67)(a), retains responsibility for remitting all of the
             2495      sales tax:
             2496          (i) collected by the seller; and
             2497          (ii) to the appropriate local taxing jurisdiction.
             2498          (68) (a) Subject to Subsection (68)(b), "model 3 seller" means a seller registered under
             2499      the agreement that has:
             2500          (i) sales in at least five states that are members of the agreement;
             2501          (ii) total annual sales revenues of at least $500,000,000;
             2502          (iii) a proprietary system that calculates the amount of tax:
             2503          (A) for an agreement sales and use tax; and
             2504          (B) due to each local taxing jurisdiction; and
             2505          (iv) entered into a performance agreement with the governing board of the agreement.
             2506          (b) For purposes of Subsection (68)(a), "model 3 seller" includes an affiliated group of
             2507      sellers using the same proprietary system.


             2508          (69) "Model 4 seller" means a seller that is registered under the agreement and is not a
             2509      model 1 seller, model 2 seller, or model 3 seller.
             2510          (70) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             2511          (71) "Motor vehicle" is as defined in Section 41-1a-102 .
             2512          (72) "Oil sands" means impregnated bituminous sands that:
             2513          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
             2514      other hydrocarbons, or otherwise treated;
             2515          (b) yield mixtures of liquid hydrocarbon; and
             2516          (c) require further processing other than mechanical blending before becoming finished
             2517      petroleum products.
             2518          (73) "Oil shale" means a group of fine black to dark brown shales containing kerogen
             2519      material that yields petroleum upon heating and distillation.
             2520          (74) "Optional computer software maintenance contract" means a computer software
             2521      maintenance contract that a customer is not obligated to purchase as a condition to the retail
             2522      sale of computer software.
             2523          (75) (a) "Other fuels" means products that burn independently to produce heat or
             2524      energy.
             2525          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             2526      personal property.
             2527          (76) (a) "Paging service" means a telecommunications service that provides
             2528      transmission of a coded radio signal for the purpose of activating a specific pager.
             2529          (b) For purposes of Subsection (76)(a), the transmission of a coded radio signal
             2530      includes a transmission by message or sound.
             2531          (77) "Pawnbroker" is as defined in Section 13-32a-102 .
             2532          (78) "Pawn transaction" is as defined in Section 13-32a-102 .
             2533          (79) (a) "Permanently attached to real property" means that for tangible personal
             2534      property attached to real property:
             2535          (i) the attachment of the tangible personal property to the real property:
             2536          (A) is essential to the use of the tangible personal property; and
             2537          (B) suggests that the tangible personal property will remain attached to the real
             2538      property in the same place over the useful life of the tangible personal property; or


             2539          (ii) if the tangible personal property is detached from the real property, the detachment
             2540      would:
             2541          (A) cause substantial damage to the tangible personal property; or
             2542          (B) require substantial alteration or repair of the real property to which the tangible
             2543      personal property is attached.
             2544          (b) "Permanently attached to real property" includes:
             2545          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             2546          (A) essential to the operation of the tangible personal property; and
             2547          (B) attached only to facilitate the operation of the tangible personal property;
             2548          (ii) a temporary detachment of tangible personal property from real property for a
             2549      repair or renovation if the repair or renovation is performed where the tangible personal
             2550      property and real property are located; or
             2551          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             2552      Subsection (79)(c)(iii) or (iv).
             2553          (c) "Permanently attached to real property" does not include:
             2554          (i) the attachment of portable or movable tangible personal property to real property if
             2555      that portable or movable tangible personal property is attached to real property only for:
             2556          (A) convenience;
             2557          (B) stability; or
             2558          (C) for an obvious temporary purpose;
             2559          (ii) the detachment of tangible personal property from real property except for the
             2560      detachment described in Subsection (79)(b)(ii);
             2561          (iii) an attachment of the following tangible personal property to real property if the
             2562      attachment to real property is only through a line that supplies water, electricity, gas,
             2563      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             2564      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             2565          (A) a computer;
             2566          (B) a telephone;
             2567          (C) a television; or
             2568          (D) tangible personal property similar to Subsections (79)(c)(iii)(A) through (C) as
             2569      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah


             2570      Administrative Rulemaking Act; or
             2571          (iv) an item listed in Subsection [(117)] (118)(c).
             2572          (80) "Person" includes any individual, firm, partnership, joint venture, association,
             2573      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             2574      municipality, district, or other local governmental entity of the state, or any group or
             2575      combination acting as a unit.
             2576          (81) "Place of primary use":
             2577          (a) for telecommunications service other than mobile telecommunications service,
             2578      means the street address representative of where the customer's use of the telecommunications
             2579      service primarily occurs, which shall be:
             2580          (i) the residential street address of the customer; or
             2581          (ii) the primary business street address of the customer; or
             2582          (b) for mobile telecommunications service, is as defined in the Mobile
             2583      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             2584          (82) (a) "Postpaid calling service" means a telecommunications service a person
             2585      obtains by making a payment on a call-by-call basis:
             2586          (i) through the use of a:
             2587          (A) bank card;
             2588          (B) credit card;
             2589          (C) debit card; or
             2590          (D) travel card; or
             2591          (ii) by a charge made to a telephone number that is not associated with the origination
             2592      or termination of the telecommunications service.
             2593          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             2594      service, that would be a prepaid wireless calling service if the service were exclusively a
             2595      telecommunications service.
             2596          (83) "Postproduction" means an activity related to the finishing or duplication of a
             2597      medium described in Subsection 59-12-104 (54)(a).
             2598          (84) "Prepaid calling service" means a telecommunications service:
             2599          (a) that allows a purchaser access to telecommunications service that is exclusively
             2600      telecommunications service;


             2601          (b) that:
             2602          (i) is paid for in advance; and
             2603          (ii) enables the origination of a call using an:
             2604          (A) access number; or
             2605          (B) authorization code;
             2606          (c) that is dialed:
             2607          (i) manually; or
             2608          (ii) electronically; and
             2609          (d) sold in predetermined units or dollars that decline:
             2610          (i) by a known amount; and
             2611          (ii) with use.
             2612          (85) "Prepaid wireless calling service" means a telecommunications service:
             2613          (a) that provides the right to utilize:
             2614          (i) mobile wireless service; and
             2615          (ii) other service that is not a telecommunications service, including:
             2616          (A) the download of a product transferred electronically;
             2617          (B) a content service; or
             2618          (C) an ancillary service;
             2619          (b) that:
             2620          (i) is paid for in advance; and
             2621          (ii) enables the origination of a call using an:
             2622          (A) access number; or
             2623          (B) authorization code;
             2624          (c) that is dialed:
             2625          (i) manually; or
             2626          (ii) electronically; and
             2627          (d) sold in predetermined units or dollars that decline:
             2628          (i) by a known amount; and
             2629          (ii) with use.
             2630          (86) (a) "Prepared food" means:
             2631          (i) food:


             2632          (A) sold in a heated state; or
             2633          (B) heated by a seller;
             2634          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             2635      item; or
             2636          (iii) except as provided in Subsection (86)(c), food sold with an eating utensil provided
             2637      by the seller, including a:
             2638          (A) plate;
             2639          (B) knife;
             2640          (C) fork;
             2641          (D) spoon;
             2642          (E) glass;
             2643          (F) cup;
             2644          (G) napkin; or
             2645          (H) straw.
             2646          (b) "Prepared food" does not include:
             2647          (i) food that a seller only:
             2648          (A) cuts;
             2649          (B) repackages; or
             2650          (C) pasteurizes; or
             2651          (ii) (A) the following:
             2652          (I) raw egg;
             2653          (II) raw fish;
             2654          (III) raw meat;
             2655          (IV) raw poultry; or
             2656          (V) a food containing an item described in Subsections (86)(b)(ii)(A)(I) through (IV);
             2657      and
             2658          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             2659      Food and Drug Administration's Food Code that a consumer cook the items described in
             2660      Subsection (86)(b)(ii)(A) to prevent food borne illness; or
             2661          (iii) the following if sold without eating utensils provided by the seller:
             2662          (A) food and food ingredients sold by a seller if the seller's proper primary


             2663      classification under the 2002 North American Industry Classification System of the federal
             2664      Executive Office of the President, Office of Management and Budget, is manufacturing in
             2665      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             2666      Manufacturing;
             2667          (B) food and food ingredients sold in an unheated state:
             2668          (I) by weight or volume; and
             2669          (II) as a single item; or
             2670          (C) a bakery item, including:
             2671          (I) a bagel;
             2672          (II) a bar;
             2673          (III) a biscuit;
             2674          (IV) bread;
             2675          (V) a bun;
             2676          (VI) a cake;
             2677          (VII) a cookie;
             2678          (VIII) a croissant;
             2679          (IX) a danish;
             2680          (X) a donut;
             2681          (XI) a muffin;
             2682          (XII) a pastry;
             2683          (XIII) a pie;
             2684          (XIV) a roll;
             2685          (XV) a tart;
             2686          (XVI) a torte; or
             2687          (XVII) a tortilla.
             2688          (c) Notwithstanding Subsection (86)(a)(iii), an eating utensil provided by the seller
             2689      does not include the following used to transport the food:
             2690          (i) a container; or
             2691          (ii) packaging.
             2692          (87) "Prescription" means an order, formula, or recipe that is issued:
             2693          (a) (i) orally;


             2694          (ii) in writing;
             2695          (iii) electronically; or
             2696          (iv) by any other manner of transmission; and
             2697          (b) by a licensed practitioner authorized by the laws of a state.
             2698          (88) (a) Except as provided in Subsection (88)(b)(ii) or (iii), "prewritten computer
             2699      software" means computer software that is not designed and developed:
             2700          (i) by the author or other creator of the computer software; and
             2701          (ii) to the specifications of a specific purchaser.
             2702          (b) "Prewritten computer software" includes:
             2703          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             2704      software is not designed and developed:
             2705          (A) by the author or other creator of the computer software; and
             2706          (B) to the specifications of a specific purchaser;
             2707          (ii) notwithstanding Subsection (88)(a), computer software designed and developed by
             2708      the author or other creator of the computer software to the specifications of a specific purchaser
             2709      if the computer software is sold to a person other than the purchaser; or
             2710          (iii) notwithstanding Subsection (88)(a) and except as provided in Subsection (88)(c),
             2711      prewritten computer software or a prewritten portion of prewritten computer software:
             2712          (A) that is modified or enhanced to any degree; and
             2713          (B) if the modification or enhancement described in Subsection (88)(b)(iii)(A) is
             2714      designed and developed to the specifications of a specific purchaser.
             2715          (c) Notwithstanding Subsection (88)(b)(iii), "prewritten computer software" does not
             2716      include a modification or enhancement described in Subsection (88)(b)(iii) if the charges for
             2717      the modification or enhancement are:
             2718          (i) reasonable; and
             2719          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), separately stated on the
             2720      invoice or other statement of price provided to the purchaser at the time of sale or later, as
             2721      demonstrated by:
             2722          (A) the books and records the seller keeps at the time of the transaction in the regular
             2723      course of business, including books and records the seller keeps at the time of the transaction in
             2724      the regular course of business for nontax purposes;


             2725          (B) a preponderance of the facts and circumstances at the time of the transaction; and
             2726          (C) the understanding of all of the parties to the transaction.
             2727          (89) (a) "Private communication service" means a telecommunications service:
             2728          (i) that entitles a customer to exclusive or priority use of one or more communications
             2729      channels between or among termination points; and
             2730          (ii) regardless of the manner in which the one or more communications channels are
             2731      connected.
             2732          (b) "Private communications service" includes the following provided in connection
             2733      with the use of one or more communications channels:
             2734          (i) an extension line;
             2735          (ii) a station;
             2736          (iii) switching capacity; or
             2737          (iv) another associated service that is provided in connection with the use of one or
             2738      more communications channels as defined in Section 59-12-215 .
             2739          (90) (a) Except as provided in Subsection (90)(b), "product transferred electronically"
             2740      means a product transferred electronically that would be subject to a tax under this chapter if
             2741      that product was transferred in a manner other than electronically.
             2742          (b) "Product transferred electronically" does not include:
             2743          (i) an ancillary service;
             2744          (ii) computer software; or
             2745          (iii) a telecommunications service.
             2746          (91) (a) "Prosthetic device" means a device that is worn on or in the body to:
             2747          (i) artificially replace a missing portion of the body;
             2748          (ii) prevent or correct a physical deformity or physical malfunction; or
             2749          (iii) support a weak or deformed portion of the body.
             2750          (b) "Prosthetic device" includes:
             2751          (i) parts used in the repairs or renovation of a prosthetic device;
             2752          (ii) replacement parts for a prosthetic device;
             2753          (iii) a dental prosthesis; or
             2754          (iv) a hearing aid.
             2755          (c) "Prosthetic device" does not include:


             2756          (i) corrective eyeglasses; or
             2757          (ii) contact lenses.
             2758          (92) (a) "Protective equipment" means an item:
             2759          (i) for human wear; and
             2760          (ii) that is:
             2761          (A) designed as protection:
             2762          (I) to the wearer against injury or disease; or
             2763          (II) against damage or injury of other persons or property; and
             2764          (B) not suitable for general use.
             2765          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2766      commission shall make rules:
             2767          (i) listing the items that constitute "protective equipment"; and
             2768          (ii) that are consistent with the list of items that constitute "protective equipment"
             2769      under the agreement.
             2770          (93) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             2771      printed matter, other than a photocopy:
             2772          (i) regardless of:
             2773          (A) characteristics;
             2774          (B) copyright;
             2775          (C) form;
             2776          (D) format;
             2777          (E) method of reproduction; or
             2778          (F) source; and
             2779          (ii) made available in printed or electronic format.
             2780          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2781      commission may by rule define the term "photocopy."
             2782          (94) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             2783          (i) valued in money; and
             2784          (ii) for which tangible personal property, a product transferred electronically, or
             2785      services are:
             2786          (A) sold;


             2787          (B) leased; or
             2788          (C) rented.
             2789          (b) "Purchase price" and "sales price" include:
             2790          (i) the seller's cost of the tangible personal property, a product transferred
             2791      electronically, or services sold;
             2792          (ii) expenses of the seller, including:
             2793          (A) the cost of materials used;
             2794          (B) a labor cost;
             2795          (C) a service cost;
             2796          (D) interest;
             2797          (E) a loss;
             2798          (F) the cost of transportation to the seller; or
             2799          (G) a tax imposed on the seller;
             2800          (iii) a charge by the seller for any service necessary to complete the sale; or
             2801          (iv) consideration a seller receives from a person other than the purchaser if:
             2802          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             2803      and
             2804          (II) the consideration described in Subsection (94)(b)(iv)(A)(I) is directly related to a
             2805      price reduction or discount on the sale;
             2806          (B) the seller has an obligation to pass the price reduction or discount through to the
             2807      purchaser;
             2808          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             2809      the seller at the time of the sale to the purchaser; and
             2810          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             2811      seller to claim a price reduction or discount; and
             2812          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             2813      coupon, or other documentation with the understanding that the person other than the seller
             2814      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             2815          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             2816      organization allowed a price reduction or discount, except that a preferred customer card that is
             2817      available to any patron of a seller does not constitute membership in a group or organization


             2818      allowed a price reduction or discount; or
             2819          (III) the price reduction or discount is identified as a third party price reduction or
             2820      discount on the:
             2821          (Aa) invoice the purchaser receives; or
             2822          (Bb) certificate, coupon, or other documentation the purchaser presents.
             2823          (c) "Purchase price" and "sales price" do not include:
             2824          (i) a discount:
             2825          (A) in a form including:
             2826          (I) cash;
             2827          (II) term; or
             2828          (III) coupon;
             2829          (B) that is allowed by a seller;
             2830          (C) taken by a purchaser on a sale; and
             2831          (D) that is not reimbursed by a third party; or
             2832          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), the following if separately
             2833      stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
             2834      sale or later, as demonstrated by the books and records the seller keeps at the time of the
             2835      transaction in the regular course of business, including books and records the seller keeps at the
             2836      time of the transaction in the regular course of business for nontax purposes, by a
             2837      preponderance of the facts and circumstances at the time of the transaction, and by the
             2838      understanding of all of the parties to the transaction:
             2839          (A) the following from credit extended on the sale of tangible personal property or
             2840      services:
             2841          (I) a carrying charge;
             2842          (II) a financing charge; or
             2843          (III) an interest charge;
             2844          (B) a delivery charge;
             2845          (C) an installation charge;
             2846          (D) a manufacturer rebate on a motor vehicle; or
             2847          (E) a tax or fee legally imposed directly on the consumer.
             2848          (95) "Purchaser" means a person to whom:


             2849          (a) a sale of tangible personal property is made;
             2850          (b) a product is transferred electronically; or
             2851          (c) a service is furnished.
             2852          (96) "Regularly rented" means:
             2853          (a) rented to a guest for value three or more times during a calendar year; or
             2854          (b) advertised or held out to the public as a place that is regularly rented to guests for
             2855      value.
             2856          (97) "Rental" is as defined in Subsection (54).
             2857          (98) (a) Except as provided in Subsection (98)(b), "repairs or renovations of tangible
             2858      personal property" means:
             2859          (i) a repair or renovation of tangible personal property that is not permanently attached
             2860      to real property; or
             2861          (ii) attaching tangible personal property or a product transferred electronically to other
             2862      tangible personal property or detaching tangible personal property or a product transferred
             2863      electronically from other tangible personal property if:
             2864          (A) the other tangible personal property to which the tangible personal property or
             2865      product transferred electronically is attached or from which the tangible personal property or
             2866      product transferred electronically is detached is not permanently attached to real property; and
             2867          (B) the attachment of tangible personal property or a product transferred electronically
             2868      to other tangible personal property or detachment of tangible personal property or a product
             2869      transferred electronically from other tangible personal property is made in conjunction with a
             2870      repair or replacement of tangible personal property or a product transferred electronically.
             2871          (b) "Repairs or renovations of tangible personal property" does not include:
             2872          (i) attaching prewritten computer software to other tangible personal property if the
             2873      other tangible personal property to which the prewritten computer software is attached is not
             2874      permanently attached to real property; or
             2875          (ii) detaching prewritten computer software from other tangible personal property if the
             2876      other tangible personal property from which the prewritten computer software is detached is
             2877      not permanently attached to real property.
             2878          (99) "Research and development" means the process of inquiry or experimentation
             2879      aimed at the discovery of facts, devices, technologies, or applications and the process of


             2880      preparing those devices, technologies, or applications for marketing.
             2881          (100) (a) "Residential telecommunications services" means a telecommunications
             2882      service or an ancillary service that is provided to an individual for personal use:
             2883          (i) at a residential address; or
             2884          (ii) at an institution, including a nursing home or a school, if the telecommunications
             2885      service or ancillary service is provided to and paid for by the individual residing at the
             2886      institution rather than the institution.
             2887          (b) For purposes of Subsection (100)(a)(i), a residential address includes an:
             2888          (i) apartment; or
             2889          (ii) other individual dwelling unit.
             2890          (101) "Residential use" means the use in or around a home, apartment building,
             2891      sleeping quarters, and similar facilities or accommodations.
             2892          (102) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             2893      than:
             2894          (a) resale;
             2895          (b) sublease; or
             2896          (c) subrent.
             2897          (103) (a) "Retailer" means any person engaged in a regularly organized business in
             2898      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             2899      who is selling to the user or consumer and not for resale.
             2900          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             2901      engaged in the business of selling to users or consumers within the state.
             2902          (104) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             2903      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             2904      Subsection 59-12-103 (1), for consideration.
             2905          (b) "Sale" includes:
             2906          (i) installment and credit sales;
             2907          (ii) any closed transaction constituting a sale;
             2908          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             2909      chapter;
             2910          (iv) any transaction if the possession of property is transferred but the seller retains the


             2911      title as security for the payment of the price; and
             2912          (v) any transaction under which right to possession, operation, or use of any article of
             2913      tangible personal property is granted under a lease or contract and the transfer of possession
             2914      would be taxable if an outright sale were made.
             2915          (105) "Sale at retail" is as defined in Subsection (102).
             2916          (106) "Sale-leaseback transaction" means a transaction by which title to tangible
             2917      personal property or a product transferred electronically that is subject to a tax under this
             2918      chapter is transferred:
             2919          (a) by a purchaser-lessee;
             2920          (b) to a lessor;
             2921          (c) for consideration; and
             2922          (d) if:
             2923          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             2924      of the tangible personal property or product transferred electronically;
             2925          (ii) the sale of the tangible personal property or product transferred electronically to the
             2926      lessor is intended as a form of financing:
             2927          (A) for the tangible personal property or product transferred electronically; and
             2928          (B) to the purchaser-lessee; and
             2929          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             2930      is required to:
             2931          (A) capitalize the tangible personal property or product transferred electronically for
             2932      financial reporting purposes; and
             2933          (B) account for the lease payments as payments made under a financing arrangement.
             2934          (107) "Sales price" is as defined in Subsection (94).
             2935          (108) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             2936      amounts charged by a school:
             2937          (i) sales that are directly related to the school's educational functions or activities
             2938      including:
             2939          (A) the sale of:
             2940          (I) textbooks;
             2941          (II) textbook fees;


             2942          (III) laboratory fees;
             2943          (IV) laboratory supplies; or
             2944          (V) safety equipment;
             2945          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             2946      that:
             2947          (I) a student is specifically required to wear as a condition of participation in a
             2948      school-related event or school-related activity; and
             2949          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             2950      place of ordinary clothing;
             2951          (C) sales of the following if the net or gross revenues generated by the sales are
             2952      deposited into a school district fund or school fund dedicated to school meals:
             2953          (I) food and food ingredients; or
             2954          (II) prepared food; or
             2955          (D) transportation charges for official school activities; or
             2956          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             2957      event or school-related activity.
             2958          (b) "Sales relating to schools" does not include:
             2959          (i) bookstore sales of items that are not educational materials or supplies;
             2960          (ii) except as provided in Subsection (108)(a)(i)(B):
             2961          (A) clothing;
             2962          (B) clothing accessories or equipment;
             2963          (C) protective equipment; or
             2964          (D) sports or recreational equipment; or
             2965          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             2966      event or school-related activity if the amounts paid or charged are passed through to a person:
             2967          (A) other than a:
             2968          (I) school;
             2969          (II) nonprofit organization authorized by a school board or a governing body of a
             2970      private school to organize and direct a competitive secondary school activity; or
             2971          (III) nonprofit association authorized by a school board or a governing body of a
             2972      private school to organize and direct a competitive secondary school activity; and


             2973          (B) that is required to collect sales and use taxes under this chapter.
             2974          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2975      commission may make rules defining the term "passed through."
             2976          (109) For purposes of this section and Section 59-12-104 , "school":
             2977          (a) means:
             2978          (i) an elementary school or a secondary school that:
             2979          (A) is a:
             2980          (I) public school; or
             2981          (II) private school; and
             2982          (B) provides instruction for one or more grades kindergarten through 12; or
             2983          (ii) a public school district; and
             2984          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             2985          (110) "Seller" means a person that makes a sale, lease, or rental of:
             2986          (a) tangible personal property;
             2987          (b) a product transferred electronically; or
             2988          (c) a service.
             2989          (111) (a) "Semiconductor fabricating, processing, research, or development materials"
             2990      means tangible personal property or a product transferred electronically if the tangible personal
             2991      property or product transferred electronically is:
             2992          (i) used primarily in the process of:
             2993          (A) (I) manufacturing a semiconductor;
             2994          (II) fabricating a semiconductor; or
             2995          (III) research or development of a:
             2996          (Aa) semiconductor; or
             2997          (Bb) semiconductor manufacturing process; or
             2998          (B) maintaining an environment suitable for a semiconductor; or
             2999          (ii) consumed primarily in the process of:
             3000          (A) (I) manufacturing a semiconductor;
             3001          (II) fabricating a semiconductor; or
             3002          (III) research or development of a:
             3003          (Aa) semiconductor; or


             3004          (Bb) semiconductor manufacturing process; or
             3005          (B) maintaining an environment suitable for a semiconductor.
             3006          (b) "Semiconductor fabricating, processing, research, or development materials"
             3007      includes:
             3008          (i) parts used in the repairs or renovations of tangible personal property or a product
             3009      transferred electronically described in Subsection (111)(a); or
             3010          (ii) a chemical, catalyst, or other material used to:
             3011          (A) produce or induce in a semiconductor a:
             3012          (I) chemical change; or
             3013          (II) physical change;
             3014          (B) remove impurities from a semiconductor; or
             3015          (C) improve the marketable condition of a semiconductor.
             3016          (112) "Senior citizen center" means a facility having the primary purpose of providing
             3017      services to the aged as defined in Section 62A-3-101 .
             3018          (113) "Simplified electronic return" means the electronic return:
             3019          (a) described in Section 318(C) of the agreement; and
             3020          (b) approved by the governing board of the agreement.
             3021          (114) "Solar energy" means the sun used as the sole source of energy for producing
             3022      electricity.
             3023          (115) (a) "Sports or recreational equipment" means an item:
             3024          (i) designed for human use; and
             3025          (ii) that is:
             3026          (A) worn in conjunction with:
             3027          (I) an athletic activity; or
             3028          (II) a recreational activity; and
             3029          (B) not suitable for general use.
             3030          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3031      commission shall make rules:
             3032          (i) listing the items that constitute "sports or recreational equipment"; and
             3033          (ii) that are consistent with the list of items that constitute "sports or recreational
             3034      equipment" under the agreement.


             3035          (116) "State" means the state of Utah, its departments, and agencies.
             3036          (117) "Storage" means any keeping or retention of tangible personal property or any
             3037      other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose except
             3038      sale in the regular course of business.
             3039          (118) (a) Except as provided in Subsection (118)(d) or (e), "tangible personal property"
             3040      means personal property that:
             3041          (i) may be:
             3042          (A) seen;
             3043          (B) weighed;
             3044          (C) measured;
             3045          (D) felt; or
             3046          (E) touched; or
             3047          (ii) is in any manner perceptible to the senses.
             3048          (b) "Tangible personal property" includes:
             3049          (i) electricity;
             3050          (ii) water;
             3051          (iii) gas;
             3052          (iv) steam; or
             3053          (v) prewritten computer software, regardless of the manner in which the prewritten
             3054      computer software is transferred.
             3055          (c) "Tangible personal property" includes the following regardless of whether the item
             3056      is attached to real property:
             3057          (i) a dishwasher;
             3058          (ii) a dryer;
             3059          (iii) a freezer;
             3060          (iv) a microwave;
             3061          (v) a refrigerator;
             3062          (vi) a stove;
             3063          (vii) a washer; or
             3064          (viii) an item similar to Subsections (118)(c)(i) through (vii) as determined by the
             3065      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative


             3066      Rulemaking Act.
             3067          (d) "Tangible personal property" does not include a product that is transferred
             3068      electronically.
             3069          (e) "Tangible personal property" does not include the following if attached to real
             3070      property, regardless of whether the attachment to real property is only through a line that
             3071      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             3072      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             3073      Rulemaking Act:
             3074          (i) a hot water heater;
             3075          (ii) a water filtration system; or
             3076          (iii) a water softener system.
             3077          (119) (a) "Telecommunications enabling or facilitating equipment, machinery, or
             3078      software" means an item listed in Subsection (119)(b) if that item is purchased or leased
             3079      primarily to enable or facilitate one or more of the following to function:
             3080          (i) telecommunications switching or routing equipment, machinery, or software; or
             3081          (ii) telecommunications transmission equipment, machinery, or software.
             3082          (b) The following apply to Subsection (119)(a):
             3083          (i) a pole;
             3084          (ii) software;
             3085          (iii) a supplementary power supply;
             3086          (iv) temperature or environmental equipment or machinery;
             3087          (v) test equipment;
             3088          (vi) a tower; or
             3089          (vii) equipment, machinery, or software that functions similarly to an item listed in
             3090      Subsections (119)(b)(i) through (vi) as determined by the commission by rule made in
             3091      accordance with Subsection (119)(c).
             3092          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3093      commission may by rule define what constitutes equipment, machinery, or software that
             3094      functions similarly to an item listed in Subsections (119)(b)(i) through (vi).
             3095          (120) "Telecommunications equipment, machinery, or software required for 911
             3096      service" means equipment, machinery, or software that is required to comply with 47 C.F.R.


             3097      Sec. 20.18.
             3098          (121) "Telecommunications maintenance or repair equipment, machinery, or software"
             3099      means equipment, machinery, or software purchased or leased primarily to maintain or repair
             3100      one or more of the following, regardless of whether the equipment, machinery, or software is
             3101      purchased or leased as a spare part or as an upgrade or modification to one or more of the
             3102      following:
             3103          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             3104          (b) telecommunications switching or routing equipment, machinery, or software; or
             3105          (c) telecommunications transmission equipment, machinery, or software.
             3106          (122) (a) "Telecommunications service" means the electronic conveyance, routing, or
             3107      transmission of audio, data, video, voice, or any other information or signal to a point, or
             3108      among or between points.
             3109          (b) "Telecommunications service" includes:
             3110          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             3111      processing application is used to act:
             3112          (A) on the code, form, or protocol of the content;
             3113          (B) for the purpose of electronic conveyance, routing, or transmission; and
             3114          (C) regardless of whether the service:
             3115          (I) is referred to as voice over Internet protocol service; or
             3116          (II) is classified by the Federal Communications Commission as enhanced or value
             3117      added;
             3118          (ii) an 800 service;
             3119          (iii) a 900 service;
             3120          (iv) a fixed wireless service;
             3121          (v) a mobile wireless service;
             3122          (vi) a postpaid calling service;
             3123          (vii) a prepaid calling service;
             3124          (viii) a prepaid wireless calling service; or
             3125          (ix) a private communications service.
             3126          (c) "Telecommunications service" does not include:
             3127          (i) advertising, including directory advertising;


             3128          (ii) an ancillary service;
             3129          (iii) a billing and collection service provided to a third party;
             3130          (iv) a data processing and information service if:
             3131          (A) the data processing and information service allows data to be:
             3132          (I) (Aa) acquired;
             3133          (Bb) generated;
             3134          (Cc) processed;
             3135          (Dd) retrieved; or
             3136          (Ee) stored; and
             3137          (II) delivered by an electronic transmission to a purchaser; and
             3138          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             3139      or information;
             3140          (v) installation or maintenance of the following on a customer's premises:
             3141          (A) equipment; or
             3142          (B) wiring;
             3143          (vi) Internet access service;
             3144          (vii) a paging service;
             3145          (viii) a product transferred electronically, including:
             3146          (A) music;
             3147          (B) reading material;
             3148          (C) a ring tone;
             3149          (D) software; or
             3150          (E) video;
             3151          (ix) a radio and television audio and video programming service:
             3152          (A) regardless of the medium; and
             3153          (B) including:
             3154          (I) furnishing conveyance, routing, or transmission of a television audio and video
             3155      programming service by a programming service provider;
             3156          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             3157          (III) audio and video programming services delivered by a commercial mobile radio
             3158      service provider as defined in 47 C.F.R. Sec. 20.3;


             3159          (x) a value-added nonvoice data service; or
             3160          (xi) tangible personal property.
             3161          (123) (a) "Telecommunications service provider" means a person that:
             3162          (i) owns, controls, operates, or manages a telecommunications service; and
             3163          (ii) engages in an activity described in Subsection (123)(a)(i) for the shared use with or
             3164      resale to any person of the telecommunications service.
             3165          (b) A person described in Subsection (123)(a) is a telecommunications service provider
             3166