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S.B. 84 Enrolled

             1     

SALES AND USE TAX EXEMPTION FOR SHORT-TERM

             2     
LODGING CONSUMABLES

             3     
2013 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: J. Stuart Adams

             6     
House Sponsor: Brad R. Wilson

             7      Cosponsor:Curtis S. Bramble              8     
             9      LONG TITLE
             10      General Description:
             11          This bill provides a sales and use tax exemption for a short-term lodging consumable.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    provides a sales and use tax exemption for a short-term lodging consumable; and
             16          .    makes technical and conforming changes.
             17      Money Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          This bill provides effective dates.
             21      Utah Code Sections Affected:
             22      AMENDS:
             23          59-12-102 (Superseded 07/01/14), as last amended by Laws of Utah 2012, Chapters
             24      255, 312, 405, and 410
             25          59-12-102 (Effective 07/01/14), as last amended by Laws of Utah 2012, Chapters 255,
             26      312, 405, 410, and 424
             27          59-12-104, as last amended by Laws of Utah 2012, Chapters 255, 399, 405, and 410
             28     


             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 59-12-102 (Superseded 07/01/14) is amended to read:
             31           59-12-102 (Superseded 07/01/14). Definitions.
             32          As used in this chapter:
             33          (1) "800 service" means a telecommunications service that:
             34          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             35          (b) is typically marketed:
             36          (i) under the name 800 toll-free calling;
             37          (ii) under the name 855 toll-free calling;
             38          (iii) under the name 866 toll-free calling;
             39          (iv) under the name 877 toll-free calling;
             40          (v) under the name 888 toll-free calling; or
             41          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             42      Federal Communications Commission.
             43          (2) (a) "900 service" means an inbound toll telecommunications service that:
             44          (i) a subscriber purchases;
             45          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             46      the subscriber's:
             47          (A) prerecorded announcement; or
             48          (B) live service; and
             49          (iii) is typically marketed:
             50          (A) under the name 900 service; or
             51          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             52      Communications Commission.
             53          (b) "900 service" does not include a charge for:
             54          (i) a collection service a seller of a telecommunications service provides to a
             55      subscriber; or
             56          (ii) the following a subscriber sells to the subscriber's customer:


             57          (A) a product; or
             58          (B) a service.
             59          (3) (a) "Admission or user fees" includes season passes.
             60          (b) "Admission or user fees" does not include annual membership dues to private
             61      organizations.
             62          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             63      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             64      Agreement after November 12, 2002.
             65          (5) "Agreement combined tax rate" means the sum of the tax rates:
             66          (a) listed under Subsection (6); and
             67          (b) that are imposed within a local taxing jurisdiction.
             68          (6) "Agreement sales and use tax" means a tax imposed under:
             69          (a) Subsection 59-12-103 (2)(a)(i)(A);
             70          (b) Subsection 59-12-103 (2)(b)(i);
             71          (c) Subsection 59-12-103 (2)(c)(i);
             72          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             73          (e) Section 59-12-204 ;
             74          (f) Section 59-12-401 ;
             75          (g) Section 59-12-402 ;
             76          (h) Section 59-12-703 ;
             77          (i) Section 59-12-802 ;
             78          (j) Section 59-12-804 ;
             79          (k) Section 59-12-1102 ;
             80          (l) Section 59-12-1302 ;
             81          (m) Section 59-12-1402 ;
             82          (n) Section 59-12-1802 ;
             83          (o) Section 59-12-2003 ;
             84          (p) Section 59-12-2103 ;


             85          (q) Section 59-12-2213 ;
             86          (r) Section 59-12-2214 ;
             87          (s) Section 59-12-2215 ;
             88          (t) Section 59-12-2216 ;
             89          (u) Section 59-12-2217 ; or
             90          (v) Section 59-12-2218 .
             91          (7) "Aircraft" is as defined in Section 72-10-102 .
             92          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             93          (a) except for:
             94          (i) an airline as defined in Section 59-2-102 ; or
             95          (ii) an affiliated group, as defined in Section 59-7-101 , except that "affiliated group"
             96      includes a corporation that is qualified to do business but is not otherwise doing business in the
             97      state, of an airline; and
             98          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             99      whether the business entity performs the following in this state:
             100          (i) check, diagnose, overhaul, and repair:
             101          (A) an onboard system of a fixed wing turbine powered aircraft; and
             102          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             103          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             104      engine;
             105          (iii) perform at least the following maintenance on a fixed wing turbine powered
             106      aircraft:
             107          (A) an inspection;
             108          (B) a repair, including a structural repair or modification;
             109          (C) changing landing gear; and
             110          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             111          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             112      completely apply new paint to the fixed wing turbine powered aircraft; and


             113          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             114      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             115      authority that certifies the fixed wing turbine powered aircraft.
             116          (9) "Alcoholic beverage" means a beverage that:
             117          (a) is suitable for human consumption; and
             118          (b) contains .5% or more alcohol by volume.
             119          (10) "Alternative energy" means:
             120          (a) biomass energy;
             121          (b) geothermal energy;
             122          (c) hydroelectric energy;
             123          (d) solar energy;
             124          (e) wind energy; or
             125          (f) energy that is derived from:
             126          (i) coal-to-liquids;
             127          (ii) nuclear fuel;
             128          (iii) oil-impregnated diatomaceous earth;
             129          (iv) oil sands;
             130          (v) oil shale; or
             131          (vi) petroleum coke.
             132          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
             133      facility" means a facility that:
             134          (i) uses alternative energy to produce electricity; and
             135          (ii) has a production capacity of 2 megawatts or greater.
             136          (b) A facility is an alternative energy electricity production facility regardless of
             137      whether the facility is:
             138          (i) connected to an electric grid; or
             139          (ii) located on the premises of an electricity consumer.
             140          (12) (a) "Ancillary service" means a service associated with, or incidental to, the


             141      provision of telecommunications service.
             142          (b) "Ancillary service" includes:
             143          (i) a conference bridging service;
             144          (ii) a detailed communications billing service;
             145          (iii) directory assistance;
             146          (iv) a vertical service; or
             147          (v) a voice mail service.
             148          (13) "Area agency on aging" is as defined in Section 62A-3-101 .
             149          (14) "Assisted amusement device" means an amusement device, skill device, or ride
             150      device that is started and stopped by an individual:
             151          (a) who is not the purchaser or renter of the right to use or operate the amusement
             152      device, skill device, or ride device; and
             153          (b) at the direction of the seller of the right to use the amusement device, skill device,
             154      or ride device.
             155          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
             156      washing of tangible personal property if the cleaning or washing labor is primarily performed
             157      by an individual:
             158          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             159      property; and
             160          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             161      property.
             162          (16) "Authorized carrier" means:
             163          (a) in the case of vehicles operated over public highways, the holder of credentials
             164      indicating that the vehicle is or will be operated pursuant to both the International Registration
             165      Plan and the International Fuel Tax Agreement;
             166          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             167      certificate or air carrier's operating certificate; or
             168          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling


             169      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             170          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
             171      following that is used as the primary source of energy to produce fuel or electricity:
             172          (i) material from a plant or tree; or
             173          (ii) other organic matter that is available on a renewable basis, including:
             174          (A) slash and brush from forests and woodlands;
             175          (B) animal waste;
             176          (C) methane produced:
             177          (I) at landfills; or
             178          (II) as a byproduct of the treatment of wastewater residuals;
             179          (D) aquatic plants; and
             180          (E) agricultural products.
             181          (b) "Biomass energy" does not include:
             182          (i) black liquor;
             183          (ii) treated woods; or
             184          (iii) biomass from municipal solid waste other than methane produced:
             185          (A) at landfills; or
             186          (B) as a byproduct of the treatment of wastewater residuals.
             187          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             188      property, products, or services if the tangible personal property, products, or services are:
             189          (i) distinct and identifiable; and
             190          (ii) sold for one nonitemized price.
             191          (b) "Bundled transaction" does not include:
             192          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             193      the basis of the selection by the purchaser of the items of tangible personal property included in
             194      the transaction;
             195          (ii) the sale of real property;
             196          (iii) the sale of services to real property;


             197          (iv) the retail sale of tangible personal property and a service if:
             198          (A) the tangible personal property:
             199          (I) is essential to the use of the service; and
             200          (II) is provided exclusively in connection with the service; and
             201          (B) the service is the true object of the transaction;
             202          (v) the retail sale of two services if:
             203          (A) one service is provided that is essential to the use or receipt of a second service;
             204          (B) the first service is provided exclusively in connection with the second service; and
             205          (C) the second service is the true object of the transaction;
             206          (vi) a transaction that includes tangible personal property or a product subject to
             207      taxation under this chapter and tangible personal property or a product that is not subject to
             208      taxation under this chapter if the:
             209          (A) seller's purchase price of the tangible personal property or product subject to
             210      taxation under this chapter is de minimis; or
             211          (B) seller's sales price of the tangible personal property or product subject to taxation
             212      under this chapter is de minimis; and
             213          (vii) the retail sale of tangible personal property that is not subject to taxation under
             214      this chapter and tangible personal property that is subject to taxation under this chapter if:
             215          (A) that retail sale includes:
             216          (I) food and food ingredients;
             217          (II) a drug;
             218          (III) durable medical equipment;
             219          (IV) mobility enhancing equipment;
             220          (V) an over-the-counter drug;
             221          (VI) a prosthetic device; or
             222          (VII) a medical supply; and
             223          (B) subject to Subsection (18)(f):
             224          (I) the seller's purchase price of the tangible personal property subject to taxation under


             225      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             226          (II) the seller's sales price of the tangible personal property subject to taxation under
             227      this chapter is 50% or less of the seller's total sales price of that retail sale.
             228          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
             229      service that is distinct and identifiable does not include:
             230          (A) packaging that:
             231          (I) accompanies the sale of the tangible personal property, product, or service; and
             232          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             233      service;
             234          (B) tangible personal property, a product, or a service provided free of charge with the
             235      purchase of another item of tangible personal property, a product, or a service; or
             236          (C) an item of tangible personal property, a product, or a service included in the
             237      definition of "purchase price."
             238          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
             239      product, or a service is provided free of charge with the purchase of another item of tangible
             240      personal property, a product, or a service if the sales price of the purchased item of tangible
             241      personal property, product, or service does not vary depending on the inclusion of the tangible
             242      personal property, product, or service provided free of charge.
             243          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
             244      does not include a price that is separately identified by tangible personal property, product, or
             245      service on the following, regardless of whether the following is in paper format or electronic
             246      format:
             247          (A) a binding sales document; or
             248          (B) another supporting sales-related document that is available to a purchaser.
             249          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
             250      supporting sales-related document that is available to a purchaser includes:
             251          (A) a bill of sale;
             252          (B) a contract;


             253          (C) an invoice;
             254          (D) a lease agreement;
             255          (E) a periodic notice of rates and services;
             256          (F) a price list;
             257          (G) a rate card;
             258          (H) a receipt; or
             259          (I) a service agreement.
             260          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
             261      property or a product subject to taxation under this chapter is de minimis if:
             262          (A) the seller's purchase price of the tangible personal property or product is 10% or
             263      less of the seller's total purchase price of the bundled transaction; or
             264          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             265      the seller's total sales price of the bundled transaction.
             266          (ii) For purposes of Subsection (18)(b)(vi), a seller:
             267          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             268      purchase price or sales price of the tangible personal property or product subject to taxation
             269      under this chapter is de minimis; and
             270          (B) may not use a combination of the seller's purchase price and the seller's sales price
             271      to determine if the purchase price or sales price of the tangible personal property or product
             272      subject to taxation under this chapter is de minimis.
             273          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
             274      contract to determine if the sales price of tangible personal property or a product is de minimis.
             275          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
             276      the seller's purchase price and the seller's sales price to determine if tangible personal property
             277      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             278      price of that retail sale.
             279          (19) "Certified automated system" means software certified by the governing board of
             280      the agreement that:


             281          (a) calculates the agreement sales and use tax imposed within a local taxing
             282      jurisdiction:
             283          (i) on a transaction; and
             284          (ii) in the states that are members of the agreement;
             285          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             286      member of the agreement; and
             287          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
             288          (20) "Certified service provider" means an agent certified:
             289          (a) by the governing board of the agreement; and
             290          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             291      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             292      own purchases.
             293          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
             294      suitable for general use.
             295          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             296      commission shall make rules:
             297          (i) listing the items that constitute "clothing"; and
             298          (ii) that are consistent with the list of items that constitute "clothing" under the
             299      agreement.
             300          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             301          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             302      fuels that does not constitute industrial use under Subsection (51) or residential use under
             303      Subsection (101).
             304          (24) (a) "Common carrier" means a person engaged in or transacting the business of
             305      transporting passengers, freight, merchandise, or other property for hire within this state.
             306          (b) (i) "Common carrier" does not include a person who, at the time the person is
             307      traveling to or from that person's place of employment, transports a passenger to or from the
             308      passenger's place of employment.


             309          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
             310      Utah Administrative Rulemaking Act, the commission may make rules defining what
             311      constitutes a person's place of employment.
             312          (25) "Component part" includes:
             313          (a) poultry, dairy, and other livestock feed, and their components;
             314          (b) baling ties and twine used in the baling of hay and straw;
             315          (c) fuel used for providing temperature control of orchards and commercial
             316      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             317      off-highway type farm machinery; and
             318          (d) feed, seeds, and seedlings.
             319          (26) "Computer" means an electronic device that accepts information:
             320          (a) (i) in digital form; or
             321          (ii) in a form similar to digital form; and
             322          (b) manipulates that information for a result based on a sequence of instructions.
             323          (27) "Computer software" means a set of coded instructions designed to cause:
             324          (a) a computer to perform a task; or
             325          (b) automatic data processing equipment to perform a task.
             326          (28) "Computer software maintenance contract" means a contract that obligates a seller
             327      of computer software to provide a customer with:
             328          (a) future updates or upgrades to computer software;
             329          (b) support services with respect to computer software; or
             330          (c) a combination of Subsections (28)(a) and (b).
             331          (29) (a) "Conference bridging service" means an ancillary service that links two or
             332      more participants of an audio conference call or video conference call.
             333          (b) "Conference bridging service" may include providing a telephone number as part of
             334      the ancillary service described in Subsection (29)(a).
             335          (c) "Conference bridging service" does not include a telecommunications service used
             336      to reach the ancillary service described in Subsection (29)(a).


             337          (30) "Construction materials" means any tangible personal property that will be
             338      converted into real property.
             339          (31) "Delivered electronically" means delivered to a purchaser by means other than
             340      tangible storage media.
             341          (32) (a) "Delivery charge" means a charge:
             342          (i) by a seller of:
             343          (A) tangible personal property;
             344          (B) a product transferred electronically; or
             345          (C) services; and
             346          (ii) for preparation and delivery of the tangible personal property, product transferred
             347      electronically, or services described in Subsection (32)(a)(i) to a location designated by the
             348      purchaser.
             349          (b) "Delivery charge" includes a charge for the following:
             350          (i) transportation;
             351          (ii) shipping;
             352          (iii) postage;
             353          (iv) handling;
             354          (v) crating; or
             355          (vi) packing.
             356          (33) "Detailed telecommunications billing service" means an ancillary service of
             357      separately stating information pertaining to individual calls on a customer's billing statement.
             358          (34) "Dietary supplement" means a product, other than tobacco, that:
             359          (a) is intended to supplement the diet;
             360          (b) contains one or more of the following dietary ingredients:
             361          (i) a vitamin;
             362          (ii) a mineral;
             363          (iii) an herb or other botanical;
             364          (iv) an amino acid;


             365          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             366      dietary intake; or
             367          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             368      described in Subsections (34)(b)(i) through (v);
             369          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
             370          (A) tablet form;
             371          (B) capsule form;
             372          (C) powder form;
             373          (D) softgel form;
             374          (E) gelcap form; or
             375          (F) liquid form; or
             376          (ii) [notwithstanding Subsection (34)(c)(i),] if the product is not intended for ingestion
             377      in a form described in Subsections (34)(c)(i)(A) through (F), is not represented:
             378          (A) as conventional food; and
             379          (B) for use as a sole item of:
             380          (I) a meal; or
             381          (II) the diet; and
             382          (d) is required to be labeled as a dietary supplement:
             383          (i) identifiable by the "Supplemental Facts" box found on the label; and
             384          (ii) as required by 21 C.F.R. Sec. 101.36.
             385          (35) (a) "Direct mail" means printed material delivered or distributed by United States
             386      mail or other delivery service:
             387          (i) to:
             388          (A) a mass audience; or
             389          (B) addressees on a mailing list provided:
             390          (I) by a purchaser of the mailing list; or
             391          (II) at the discretion of the purchaser of the mailing list; and
             392          (ii) if the cost of the printed material is not billed directly to the recipients.


             393          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             394      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             395          (c) "Direct mail" does not include multiple items of printed material delivered to a
             396      single address.
             397          (36) "Directory assistance" means an ancillary service of providing:
             398          (a) address information; or
             399          (b) telephone number information.
             400          (37) (a) "Disposable home medical equipment or supplies" means medical equipment
             401      or supplies that:
             402          (i) cannot withstand repeated use; and
             403          (ii) are purchased by, for, or on behalf of a person other than:
             404          (A) a health care facility as defined in Section 26-21-2 ;
             405          (B) a health care provider as defined in Section 78B-3-403 ;
             406          (C) an office of a health care provider described in Subsection (37)(a)(ii)(B); or
             407          (D) a person similar to a person described in Subsections (37)(a)(ii)(A) through (C).
             408          (b) "Disposable home medical equipment or supplies" does not include:
             409          (i) a drug;
             410          (ii) durable medical equipment;
             411          (iii) a hearing aid;
             412          (iv) a hearing aid accessory;
             413          (v) mobility enhancing equipment; or
             414          (vi) tangible personal property used to correct impaired vision, including:
             415          (A) eyeglasses; or
             416          (B) contact lenses.
             417          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             418      commission may by rule define what constitutes medical equipment or supplies.
             419          (38) (a) "Drug" means a compound, substance, or preparation, or a component of a
             420      compound, substance, or preparation that is:


             421          (i) recognized in:
             422          (A) the official United States Pharmacopoeia;
             423          (B) the official Homeopathic Pharmacopoeia of the United States;
             424          (C) the official National Formulary; or
             425          (D) a supplement to a publication listed in Subsections (38)(a)(i)(A) through (C);
             426          (ii) intended for use in the:
             427          (A) diagnosis of disease;
             428          (B) cure of disease;
             429          (C) mitigation of disease;
             430          (D) treatment of disease; or
             431          (E) prevention of disease; or
             432          (iii) intended to affect:
             433          (A) the structure of the body; or
             434          (B) any function of the body.
             435          (b) "Drug" does not include:
             436          (i) food and food ingredients;
             437          (ii) a dietary supplement;
             438          (iii) an alcoholic beverage; or
             439          (iv) a prosthetic device.
             440          (39) (a) Except as provided in Subsection (39)(c), "durable medical equipment" means
             441      equipment that:
             442          (i) can withstand repeated use;
             443          (ii) is primarily and customarily used to serve a medical purpose;
             444          (iii) generally is not useful to a person in the absence of illness or injury; and
             445          (iv) is not worn in or on the body.
             446          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             447      equipment described in Subsection (39)(a).
             448          (c) [Notwithstanding Subsection (39)(a), "durable] "Durable medical equipment" does


             449      not include mobility enhancing equipment.
             450          (40) "Electronic" means:
             451          (a) relating to technology; and
             452          (b) having:
             453          (i) electrical capabilities;
             454          (ii) digital capabilities;
             455          (iii) magnetic capabilities;
             456          (iv) wireless capabilities;
             457          (v) optical capabilities;
             458          (vi) electromagnetic capabilities; or
             459          (vii) capabilities similar to Subsections (40)(b)(i) through (vi).
             460          (41) "Employee" is as defined in Section 59-10-401 .
             461          (42) "Fixed guideway" means a public transit facility that uses and occupies:
             462          (a) rail for the use of public transit; or
             463          (b) a separate right-of-way for the use of public transit.
             464          (43) "Fixed wing turbine powered aircraft" means an aircraft that:
             465          (a) is powered by turbine engines;
             466          (b) operates on jet fuel; and
             467          (c) has wings that are permanently attached to the fuselage of the aircraft.
             468          (44) "Fixed wireless service" means a telecommunications service that provides radio
             469      communication between fixed points.
             470          (45) (a) "Food and food ingredients" means substances:
             471          (i) regardless of whether the substances are in:
             472          (A) liquid form;
             473          (B) concentrated form;
             474          (C) solid form;
             475          (D) frozen form;
             476          (E) dried form; or


             477          (F) dehydrated form; and
             478          (ii) that are:
             479          (A) sold for:
             480          (I) ingestion by humans; or
             481          (II) chewing by humans; and
             482          (B) consumed for the substance's:
             483          (I) taste; or
             484          (II) nutritional value.
             485          (b) "Food and food ingredients" includes an item described in Subsection (86)(b)(iii).
             486          (c) "Food and food ingredients" does not include:
             487          (i) an alcoholic beverage;
             488          (ii) tobacco; or
             489          (iii) prepared food.
             490          (46) (a) "Fundraising sales" means sales:
             491          (i) (A) made by a school; or
             492          (B) made by a school student;
             493          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             494      materials, or provide transportation; and
             495          (iii) that are part of an officially sanctioned school activity.
             496          (b) For purposes of Subsection (46)(a)(iii), "officially sanctioned school activity"
             497      means a school activity:
             498          (i) that is conducted in accordance with a formal policy adopted by the school or school
             499      district governing the authorization and supervision of fundraising activities;
             500          (ii) that does not directly or indirectly compensate an individual teacher or other
             501      educational personnel by direct payment, commissions, or payment in kind; and
             502          (iii) the net or gross revenues from which are deposited in a dedicated account
             503      controlled by the school or school district.
             504          (47) "Geothermal energy" means energy contained in heat that continuously flows


             505      outward from the earth that is used as the sole source of energy to produce electricity.
             506          (48) "Governing board of the agreement" means the governing board of the agreement
             507      that is:
             508          (a) authorized to administer the agreement; and
             509          (b) established in accordance with the agreement.
             510          (49) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             511          (i) the executive branch of the state, including all departments, institutions, boards,
             512      divisions, bureaus, offices, commissions, and committees;
             513          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             514      Office of the Court Administrator, and similar administrative units in the judicial branch;
             515          (iii) the legislative branch of the state, including the House of Representatives, the
             516      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             517      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             518      Analyst;
             519          (iv) the National Guard;
             520          (v) an independent entity as defined in Section 63E-1-102 ; or
             521          (vi) a political subdivision as defined in Section 17B-1-102 .
             522          (b) "Governmental entity" does not include the state systems of public and higher
             523      education, including:
             524          (i) a college campus of the Utah College of Applied Technology;
             525          (ii) a school;
             526          (iii) the State Board of Education;
             527          (iv) the State Board of Regents; or
             528          (v) an institution of higher education.
             529          (50) "Hydroelectric energy" means water used as the sole source of energy to produce
             530      electricity.
             531          (51) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             532      other fuels:


             533          (a) in mining or extraction of minerals;
             534          (b) in agricultural operations to produce an agricultural product up to the time of
             535      harvest or placing the agricultural product into a storage facility, including:
             536          (i) commercial greenhouses;
             537          (ii) irrigation pumps;
             538          (iii) farm machinery;
             539          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             540      registered under Title 41, Chapter 1a, Part 2, Registration; and
             541          (v) other farming activities;
             542          (c) in manufacturing tangible personal property at an establishment described in SIC
             543      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             544      Executive Office of the President, Office of Management and Budget;
             545          (d) by a scrap recycler if:
             546          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             547      one or more of the following items into prepared grades of processed materials for use in new
             548      products:
             549          (A) iron;
             550          (B) steel;
             551          (C) nonferrous metal;
             552          (D) paper;
             553          (E) glass;
             554          (F) plastic;
             555          (G) textile; or
             556          (H) rubber; and
             557          (ii) the new products under Subsection (51)(d)(i) would otherwise be made with
             558      nonrecycled materials; or
             559          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             560      cogeneration facility as defined in Section 54-2-1 .


             561          (52) (a) Except as provided in Subsection (52)(b), "installation charge" means a charge
             562      for installing:
             563          (i) tangible personal property; or
             564          (ii) a product transferred electronically.
             565          (b) "Installation charge" does not include a charge for:
             566          (i) repairs or renovations of:
             567          (A) tangible personal property; or
             568          (B) a product transferred electronically; or
             569          (ii) attaching tangible personal property or a product transferred electronically:
             570          (A) to other tangible personal property; and
             571          (B) as part of a manufacturing or fabrication process.
             572          (53) "Institution of higher education" means an institution of higher education listed in
             573      Section 53B-2-101 .
             574          (54) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             575      personal property or a product transferred electronically for:
             576          (i) (A) a fixed term; or
             577          (B) an indeterminate term; and
             578          (ii) consideration.
             579          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             580      amount of consideration may be increased or decreased by reference to the amount realized
             581      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             582      Code.
             583          (c) "Lease" or "rental" does not include:
             584          (i) a transfer of possession or control of property under a security agreement or
             585      deferred payment plan that requires the transfer of title upon completion of the required
             586      payments;
             587          (ii) a transfer of possession or control of property under an agreement that requires the
             588      transfer of title:


             589          (A) upon completion of required payments; and
             590          (B) if the payment of an option price does not exceed the greater of:
             591          (I) $100; or
             592          (II) 1% of the total required payments; or
             593          (iii) providing tangible personal property along with an operator for a fixed period of
             594      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             595      designed.
             596          (d) For purposes of Subsection (54)(c)(iii), an operator is necessary for equipment to
             597      perform as designed if the operator's duties exceed the:
             598          (i) set-up of tangible personal property;
             599          (ii) maintenance of tangible personal property; or
             600          (iii) inspection of tangible personal property.
             601          (55) "Life science establishment" means an establishment in this state that is classified
             602      under the following NAICS codes of the 2007 North American Industry Classification System
             603      of the federal Executive Office of the President, Office of Management and Budget:
             604          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
             605          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
             606      Manufacturing; or
             607          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
             608          (56) "Life science research and development facility" means a facility owned, leased,
             609      or rented by a life science establishment if research and development is performed in 51% or
             610      more of the total area of the facility.
             611          (57) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             612      if the tangible storage media is not physically transferred to the purchaser.
             613          (58) "Local taxing jurisdiction" means a:
             614          (a) county that is authorized to impose an agreement sales and use tax;
             615          (b) city that is authorized to impose an agreement sales and use tax; or
             616          (c) town that is authorized to impose an agreement sales and use tax.


             617          (59) "Manufactured home" is as defined in Section 15A-1-302 .
             618          (60) For purposes of Section 59-12-104 , "manufacturing facility" means:
             619          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             620      Industrial Classification Manual of the federal Executive Office of the President, Office of
             621      Management and Budget;
             622          (b) a scrap recycler if:
             623          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             624      one or more of the following items into prepared grades of processed materials for use in new
             625      products:
             626          (A) iron;
             627          (B) steel;
             628          (C) nonferrous metal;
             629          (D) paper;
             630          (E) glass;
             631          (F) plastic;
             632          (G) textile; or
             633          (H) rubber; and
             634          (ii) the new products under Subsection (60)(b)(i) would otherwise be made with
             635      nonrecycled materials; or
             636          (c) a cogeneration facility as defined in Section 54-2-1 .
             637          (61) "Member of the immediate family of the producer" means a person who is related
             638      to a producer described in Subsection 59-12-104 (20)(a) as a:
             639          (a) child or stepchild, regardless of whether the child or stepchild is:
             640          (i) an adopted child or adopted stepchild; or
             641          (ii) a foster child or foster stepchild;
             642          (b) grandchild or stepgrandchild;
             643          (c) grandparent or stepgrandparent;
             644          (d) nephew or stepnephew;


             645          (e) niece or stepniece;
             646          (f) parent or stepparent;
             647          (g) sibling or stepsibling;
             648          (h) spouse;
             649          (i) person who is the spouse of a person described in Subsections (61)(a) through (g);
             650      or
             651          (j) person similar to a person described in Subsections (61)(a) through (i) as
             652      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             653      Administrative Rulemaking Act.
             654          (62) "Mobile home" is as defined in Section 15A-1-302 .
             655          (63) "Mobile telecommunications service" is as defined in the Mobile
             656      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             657          (64) (a) "Mobile wireless service" means a telecommunications service, regardless of
             658      the technology used, if:
             659          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             660          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             661          (iii) the origination point described in Subsection (64)(a)(i) and the termination point
             662      described in Subsection (64)(a)(ii) are not fixed.
             663          (b) "Mobile wireless service" includes a telecommunications service that is provided
             664      by a commercial mobile radio service provider.
             665          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             666      commission may by rule define "commercial mobile radio service provider."
             667          (65) (a) Except as provided in Subsection (65)(c), "mobility enhancing equipment"
             668      means equipment that is:
             669          (i) primarily and customarily used to provide or increase the ability to move from one
             670      place to another;
             671          (ii) appropriate for use in a:
             672          (A) home; or


             673          (B) motor vehicle; and
             674          (iii) not generally used by persons with normal mobility.
             675          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             676      the equipment described in Subsection (65)(a).
             677          (c) [Notwithstanding Subsection (65)(a), "mobility] "Mobility enhancing equipment"
             678      does not include:
             679          (i) a motor vehicle;
             680          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             681      vehicle manufacturer;
             682          (iii) durable medical equipment; or
             683          (iv) a prosthetic device.
             684          (66) "Model 1 seller" means a seller registered under the agreement that has selected a
             685      certified service provider as the seller's agent to perform all of the seller's sales and use tax
             686      functions for agreement sales and use taxes other than the seller's obligation under Section
             687      59-12-124 to remit a tax on the seller's own purchases.
             688          (67) "Model 2 seller" means a seller registered under the agreement that:
             689          (a) except as provided in Subsection (67)(b), has selected a certified automated system
             690      to perform the seller's sales tax functions for agreement sales and use taxes; and
             691          (b) [notwithstanding Subsection (67)(a),] retains responsibility for remitting all of the
             692      sales tax:
             693          (i) collected by the seller; and
             694          (ii) to the appropriate local taxing jurisdiction.
             695          (68) (a) Subject to Subsection (68)(b), "model 3 seller" means a seller registered under
             696      the agreement that has:
             697          (i) sales in at least five states that are members of the agreement;
             698          (ii) total annual sales revenues of at least $500,000,000;
             699          (iii) a proprietary system that calculates the amount of tax:
             700          (A) for an agreement sales and use tax; and


             701          (B) due to each local taxing jurisdiction; and
             702          (iv) entered into a performance agreement with the governing board of the agreement.
             703          (b) For purposes of Subsection (68)(a), "model 3 seller" includes an affiliated group of
             704      sellers using the same proprietary system.
             705          (69) "Model 4 seller" means a seller that is registered under the agreement and is not a
             706      model 1 seller, model 2 seller, or model 3 seller.
             707          (70) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             708          (71) "Motor vehicle" is as defined in Section 41-1a-102 .
             709          (72) "Oil sands" means impregnated bituminous sands that:
             710          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
             711      other hydrocarbons, or otherwise treated;
             712          (b) yield mixtures of liquid hydrocarbon; and
             713          (c) require further processing other than mechanical blending before becoming finished
             714      petroleum products.
             715          (73) "Oil shale" means a group of fine black to dark brown shales containing kerogen
             716      material that yields petroleum upon heating and distillation.
             717          (74) "Optional computer software maintenance contract" means a computer software
             718      maintenance contract that a customer is not obligated to purchase as a condition to the retail
             719      sale of computer software.
             720          (75) (a) "Other fuels" means products that burn independently to produce heat or
             721      energy.
             722          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             723      personal property.
             724          (76) (a) "Paging service" means a telecommunications service that provides
             725      transmission of a coded radio signal for the purpose of activating a specific pager.
             726          (b) For purposes of Subsection (76)(a), the transmission of a coded radio signal
             727      includes a transmission by message or sound.
             728          (77) "Pawnbroker" is as defined in Section 13-32a-102 .


             729          (78) "Pawn transaction" is as defined in Section 13-32a-102 .
             730          (79) (a) "Permanently attached to real property" means that for tangible personal
             731      property attached to real property:
             732          (i) the attachment of the tangible personal property to the real property:
             733          (A) is essential to the use of the tangible personal property; and
             734          (B) suggests that the tangible personal property will remain attached to the real
             735      property in the same place over the useful life of the tangible personal property; or
             736          (ii) if the tangible personal property is detached from the real property, the detachment
             737      would:
             738          (A) cause substantial damage to the tangible personal property; or
             739          (B) require substantial alteration or repair of the real property to which the tangible
             740      personal property is attached.
             741          (b) "Permanently attached to real property" includes:
             742          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             743          (A) essential to the operation of the tangible personal property; and
             744          (B) attached only to facilitate the operation of the tangible personal property;
             745          (ii) a temporary detachment of tangible personal property from real property for a
             746      repair or renovation if the repair or renovation is performed where the tangible personal
             747      property and real property are located; or
             748          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             749      Subsection (79)(c)(iii) or (iv).
             750          (c) "Permanently attached to real property" does not include:
             751          (i) the attachment of portable or movable tangible personal property to real property if
             752      that portable or movable tangible personal property is attached to real property only for:
             753          (A) convenience;
             754          (B) stability; or
             755          (C) for an obvious temporary purpose;
             756          (ii) the detachment of tangible personal property from real property except for the


             757      detachment described in Subsection (79)(b)(ii);
             758          (iii) an attachment of the following tangible personal property to real property if the
             759      attachment to real property is only through a line that supplies water, electricity, gas,
             760      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             761      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             762          (A) a computer;
             763          (B) a telephone;
             764          (C) a television; or
             765          (D) tangible personal property similar to Subsections (79)(c)(iii)(A) through (C) as
             766      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             767      Administrative Rulemaking Act; or
             768          (iv) an item listed in Subsection [(117)] (119)(c).
             769          (80) "Person" includes any individual, firm, partnership, joint venture, association,
             770      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             771      municipality, district, or other local governmental entity of the state, or any group or
             772      combination acting as a unit.
             773          (81) "Place of primary use":
             774          (a) for telecommunications service other than mobile telecommunications service,
             775      means the street address representative of where the customer's use of the telecommunications
             776      service primarily occurs, which shall be:
             777          (i) the residential street address of the customer; or
             778          (ii) the primary business street address of the customer; or
             779          (b) for mobile telecommunications service, is as defined in the Mobile
             780      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             781          (82) (a) "Postpaid calling service" means a telecommunications service a person
             782      obtains by making a payment on a call-by-call basis:
             783          (i) through the use of a:
             784          (A) bank card;


             785          (B) credit card;
             786          (C) debit card; or
             787          (D) travel card; or
             788          (ii) by a charge made to a telephone number that is not associated with the origination
             789      or termination of the telecommunications service.
             790          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             791      service, that would be a prepaid wireless calling service if the service were exclusively a
             792      telecommunications service.
             793          (83) "Postproduction" means an activity related to the finishing or duplication of a
             794      medium described in Subsection 59-12-104 (54)(a).
             795          (84) "Prepaid calling service" means a telecommunications service:
             796          (a) that allows a purchaser access to telecommunications service that is exclusively
             797      telecommunications service;
             798          (b) that:
             799          (i) is paid for in advance; and
             800          (ii) enables the origination of a call using an:
             801          (A) access number; or
             802          (B) authorization code;
             803          (c) that is dialed:
             804          (i) manually; or
             805          (ii) electronically; and
             806          (d) sold in predetermined units or dollars that decline:
             807          (i) by a known amount; and
             808          (ii) with use.
             809          (85) "Prepaid wireless calling service" means a telecommunications service:
             810          (a) that provides the right to utilize:
             811          (i) mobile wireless service; and
             812          (ii) other service that is not a telecommunications service, including:


             813          (A) the download of a product transferred electronically;
             814          (B) a content service; or
             815          (C) an ancillary service;
             816          (b) that:
             817          (i) is paid for in advance; and
             818          (ii) enables the origination of a call using an:
             819          (A) access number; or
             820          (B) authorization code;
             821          (c) that is dialed:
             822          (i) manually; or
             823          (ii) electronically; and
             824          (d) sold in predetermined units or dollars that decline:
             825          (i) by a known amount; and
             826          (ii) with use.
             827          (86) (a) "Prepared food" means:
             828          (i) food:
             829          (A) sold in a heated state; or
             830          (B) heated by a seller;
             831          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             832      item; or
             833          (iii) except as provided in Subsection (86)(c), food sold with an eating utensil provided
             834      by the seller, including a:
             835          (A) plate;
             836          (B) knife;
             837          (C) fork;
             838          (D) spoon;
             839          (E) glass;
             840          (F) cup;


             841          (G) napkin; or
             842          (H) straw.
             843          (b) "Prepared food" does not include:
             844          (i) food that a seller only:
             845          (A) cuts;
             846          (B) repackages; or
             847          (C) pasteurizes; or
             848          (ii) (A) the following:
             849          (I) raw egg;
             850          (II) raw fish;
             851          (III) raw meat;
             852          (IV) raw poultry; or
             853          (V) a food containing an item described in Subsections (86)(b)(ii)(A)(I) through (IV);
             854      and
             855          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             856      Food and Drug Administration's Food Code that a consumer cook the items described in
             857      Subsection (86)(b)(ii)(A) to prevent food borne illness; or
             858          (iii) the following if sold without eating utensils provided by the seller:
             859          (A) food and food ingredients sold by a seller if the seller's proper primary
             860      classification under the 2002 North American Industry Classification System of the federal
             861      Executive Office of the President, Office of Management and Budget, is manufacturing in
             862      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             863      Manufacturing;
             864          (B) food and food ingredients sold in an unheated state:
             865          (I) by weight or volume; and
             866          (II) as a single item; or
             867          (C) a bakery item, including:
             868          (I) a bagel;


             869          (II) a bar;
             870          (III) a biscuit;
             871          (IV) bread;
             872          (V) a bun;
             873          (VI) a cake;
             874          (VII) a cookie;
             875          (VIII) a croissant;
             876          (IX) a danish;
             877          (X) a donut;
             878          (XI) a muffin;
             879          (XII) a pastry;
             880          (XIII) a pie;
             881          (XIV) a roll;
             882          (XV) a tart;
             883          (XVI) a torte; or
             884          (XVII) a tortilla.
             885          (c) [Notwithstanding Subsection (86)(a)(iii), an] An eating utensil provided by the
             886      seller does not include the following used to transport the food:
             887          (i) a container; or
             888          (ii) packaging.
             889          (87) "Prescription" means an order, formula, or recipe that is issued:
             890          (a) (i) orally;
             891          (ii) in writing;
             892          (iii) electronically; or
             893          (iv) by any other manner of transmission; and
             894          (b) by a licensed practitioner authorized by the laws of a state.
             895          (88) (a) Except as provided in Subsection (88)(b)(ii) or (iii), "prewritten computer
             896      software" means computer software that is not designed and developed:


             897          (i) by the author or other creator of the computer software; and
             898          (ii) to the specifications of a specific purchaser.
             899          (b) "Prewritten computer software" includes:
             900          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             901      software is not designed and developed:
             902          (A) by the author or other creator of the computer software; and
             903          (B) to the specifications of a specific purchaser;
             904          (ii) [notwithstanding Subsection (88)(a),] computer software designed and developed
             905      by the author or other creator of the computer software to the specifications of a specific
             906      purchaser if the computer software is sold to a person other than the purchaser; or
             907          (iii) [notwithstanding Subsection (88)(a) and] except as provided in Subsection (88)(c),
             908      prewritten computer software or a prewritten portion of prewritten computer software:
             909          (A) that is modified or enhanced to any degree; and
             910          (B) if the modification or enhancement described in Subsection (88)(b)(iii)(A) is
             911      designed and developed to the specifications of a specific purchaser.
             912          (c) [Notwithstanding Subsection (88)(b)(iii), "prewritten] "Prewritten computer
             913      software" does not include a modification or enhancement described in Subsection (88)(b)(iii)
             914      if the charges for the modification or enhancement are:
             915          (i) reasonable; and
             916          (ii) separately stated on the invoice or other statement of price provided to the
             917      purchaser.
             918          (89) (a) "Private communication service" means a telecommunications service:
             919          (i) that entitles a customer to exclusive or priority use of one or more communications
             920      channels between or among termination points; and
             921          (ii) regardless of the manner in which the one or more communications channels are
             922      connected.
             923          (b) "Private communications service" includes the following provided in connection
             924      with the use of one or more communications channels:


             925          (i) an extension line;
             926          (ii) a station;
             927          (iii) switching capacity; or
             928          (iv) another associated service that is provided in connection with the use of one or
             929      more communications channels as defined in Section 59-12-215 .
             930          (90) (a) Except as provided in Subsection (90)(b), "product transferred electronically"
             931      means a product transferred electronically that would be subject to a tax under this chapter if
             932      that product was transferred in a manner other than electronically.
             933          (b) "Product transferred electronically" does not include:
             934          (i) an ancillary service;
             935          (ii) computer software; or
             936          (iii) a telecommunications service.
             937          (91) (a) "Prosthetic device" means a device that is worn on or in the body to:
             938          (i) artificially replace a missing portion of the body;
             939          (ii) prevent or correct a physical deformity or physical malfunction; or
             940          (iii) support a weak or deformed portion of the body.
             941          (b) "Prosthetic device" includes:
             942          (i) parts used in the repairs or renovation of a prosthetic device;
             943          (ii) replacement parts for a prosthetic device;
             944          (iii) a dental prosthesis; or
             945          (iv) a hearing aid.
             946          (c) "Prosthetic device" does not include:
             947          (i) corrective eyeglasses; or
             948          (ii) contact lenses.
             949          (92) (a) "Protective equipment" means an item:
             950          (i) for human wear; and
             951          (ii) that is:
             952          (A) designed as protection:


             953          (I) to the wearer against injury or disease; or
             954          (II) against damage or injury of other persons or property; and
             955          (B) not suitable for general use.
             956          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             957      commission shall make rules:
             958          (i) listing the items that constitute "protective equipment"; and
             959          (ii) that are consistent with the list of items that constitute "protective equipment"
             960      under the agreement.
             961          (93) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             962      printed matter, other than a photocopy:
             963          (i) regardless of:
             964          (A) characteristics;
             965          (B) copyright;
             966          (C) form;
             967          (D) format;
             968          (E) method of reproduction; or
             969          (F) source; and
             970          (ii) made available in printed or electronic format.
             971          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             972      commission may by rule define the term "photocopy."
             973          (94) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             974          (i) valued in money; and
             975          (ii) for which tangible personal property, a product transferred electronically, or
             976      services are:
             977          (A) sold;
             978          (B) leased; or
             979          (C) rented.
             980          (b) "Purchase price" and "sales price" include:


             981          (i) the seller's cost of the tangible personal property, a product transferred
             982      electronically, or services sold;
             983          (ii) expenses of the seller, including:
             984          (A) the cost of materials used;
             985          (B) a labor cost;
             986          (C) a service cost;
             987          (D) interest;
             988          (E) a loss;
             989          (F) the cost of transportation to the seller; or
             990          (G) a tax imposed on the seller;
             991          (iii) a charge by the seller for any service necessary to complete the sale; or
             992          (iv) consideration a seller receives from a person other than the purchaser if:
             993          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             994      and
             995          (II) the consideration described in Subsection (94)(b)(iv)(A)(I) is directly related to a
             996      price reduction or discount on the sale;
             997          (B) the seller has an obligation to pass the price reduction or discount through to the
             998      purchaser;
             999          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             1000      the seller at the time of the sale to the purchaser; and
             1001          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             1002      seller to claim a price reduction or discount; and
             1003          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             1004      coupon, or other documentation with the understanding that the person other than the seller
             1005      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             1006          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             1007      organization allowed a price reduction or discount, except that a preferred customer card that is
             1008      available to any patron of a seller does not constitute membership in a group or organization


             1009      allowed a price reduction or discount; or
             1010          (III) the price reduction or discount is identified as a third party price reduction or
             1011      discount on the:
             1012          (Aa) invoice the purchaser receives; or
             1013          (Bb) certificate, coupon, or other documentation the purchaser presents.
             1014          (c) "Purchase price" and "sales price" do not include:
             1015          (i) a discount:
             1016          (A) in a form including:
             1017          (I) cash;
             1018          (II) term; or
             1019          (III) coupon;
             1020          (B) that is allowed by a seller;
             1021          (C) taken by a purchaser on a sale; and
             1022          (D) that is not reimbursed by a third party; or
             1023          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             1024      provided to the purchaser:
             1025          (A) the following from credit extended on the sale of tangible personal property or
             1026      services:
             1027          (I) a carrying charge;
             1028          (II) a financing charge; or
             1029          (III) an interest charge;
             1030          (B) a delivery charge;
             1031          (C) an installation charge;
             1032          (D) a manufacturer rebate on a motor vehicle; or
             1033          (E) a tax or fee legally imposed directly on the consumer.
             1034          (95) "Purchaser" means a person to whom:
             1035          (a) a sale of tangible personal property is made;
             1036          (b) a product is transferred electronically; or


             1037          (c) a service is furnished.
             1038          (96) "Regularly rented" means:
             1039          (a) rented to a guest for value three or more times during a calendar year; or
             1040          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1041      value.
             1042          (97) "Rental" is as defined in Subsection (54).
             1043          (98) (a) Except as provided in Subsection (98)(b), "repairs or renovations of tangible
             1044      personal property" means:
             1045          (i) a repair or renovation of tangible personal property that is not permanently attached
             1046      to real property; or
             1047          (ii) attaching tangible personal property or a product transferred electronically to other
             1048      tangible personal property or detaching tangible personal property or a product transferred
             1049      electronically from other tangible personal property if:
             1050          (A) the other tangible personal property to which the tangible personal property or
             1051      product transferred electronically is attached or from which the tangible personal property or
             1052      product transferred electronically is detached is not permanently attached to real property; and
             1053          (B) the attachment of tangible personal property or a product transferred electronically
             1054      to other tangible personal property or detachment of tangible personal property or a product
             1055      transferred electronically from other tangible personal property is made in conjunction with a
             1056      repair or replacement of tangible personal property or a product transferred electronically.
             1057          (b) "Repairs or renovations of tangible personal property" does not include:
             1058          (i) attaching prewritten computer software to other tangible personal property if the
             1059      other tangible personal property to which the prewritten computer software is attached is not
             1060      permanently attached to real property; or
             1061          (ii) detaching prewritten computer software from other tangible personal property if the
             1062      other tangible personal property from which the prewritten computer software is detached is
             1063      not permanently attached to real property.
             1064          (99) "Research and development" means the process of inquiry or experimentation


             1065      aimed at the discovery of facts, devices, technologies, or applications and the process of
             1066      preparing those devices, technologies, or applications for marketing.
             1067          (100) (a) "Residential telecommunications services" means a telecommunications
             1068      service or an ancillary service that is provided to an individual for personal use:
             1069          (i) at a residential address; or
             1070          (ii) at an institution, including a nursing home or a school, if the telecommunications
             1071      service or ancillary service is provided to and paid for by the individual residing at the
             1072      institution rather than the institution.
             1073          (b) For purposes of Subsection (100)(a)(i), a residential address includes an:
             1074          (i) apartment; or
             1075          (ii) other individual dwelling unit.
             1076          (101) "Residential use" means the use in or around a home, apartment building,
             1077      sleeping quarters, and similar facilities or accommodations.
             1078          (102) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             1079      than:
             1080          (a) resale;
             1081          (b) sublease; or
             1082          (c) subrent.
             1083          (103) (a) "Retailer" means any person engaged in a regularly organized business in
             1084      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             1085      who is selling to the user or consumer and not for resale.
             1086          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             1087      engaged in the business of selling to users or consumers within the state.
             1088          (104) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1089      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1090      Subsection 59-12-103 (1), for consideration.
             1091          (b) "Sale" includes:
             1092          (i) installment and credit sales;


             1093          (ii) any closed transaction constituting a sale;
             1094          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1095      chapter;
             1096          (iv) any transaction if the possession of property is transferred but the seller retains the
             1097      title as security for the payment of the price; and
             1098          (v) any transaction under which right to possession, operation, or use of any article of
             1099      tangible personal property is granted under a lease or contract and the transfer of possession
             1100      would be taxable if an outright sale were made.
             1101          (105) "Sale at retail" is as defined in Subsection (102).
             1102          (106) "Sale-leaseback transaction" means a transaction by which title to tangible
             1103      personal property or a product transferred electronically that is subject to a tax under this
             1104      chapter is transferred:
             1105          (a) by a purchaser-lessee;
             1106          (b) to a lessor;
             1107          (c) for consideration; and
             1108          (d) if:
             1109          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1110      of the tangible personal property or product transferred electronically;
             1111          (ii) the sale of the tangible personal property or product transferred electronically to the
             1112      lessor is intended as a form of financing:
             1113          (A) for the tangible personal property or product transferred electronically; and
             1114          (B) to the purchaser-lessee; and
             1115          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1116      is required to:
             1117          (A) capitalize the tangible personal property or product transferred electronically for
             1118      financial reporting purposes; and
             1119          (B) account for the lease payments as payments made under a financing arrangement.
             1120          (107) "Sales price" is as defined in Subsection (94).


             1121          (108) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             1122      amounts charged by a school:
             1123          (i) sales that are directly related to the school's educational functions or activities
             1124      including:
             1125          (A) the sale of:
             1126          (I) textbooks;
             1127          (II) textbook fees;
             1128          (III) laboratory fees;
             1129          (IV) laboratory supplies; or
             1130          (V) safety equipment;
             1131          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1132      that:
             1133          (I) a student is specifically required to wear as a condition of participation in a
             1134      school-related event or school-related activity; and
             1135          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1136      place of ordinary clothing;
             1137          (C) sales of the following if the net or gross revenues generated by the sales are
             1138      deposited into a school district fund or school fund dedicated to school meals:
             1139          (I) food and food ingredients; or
             1140          (II) prepared food; or
             1141          (D) transportation charges for official school activities; or
             1142          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1143      event or school-related activity.
             1144          (b) "Sales relating to schools" does not include:
             1145          (i) bookstore sales of items that are not educational materials or supplies;
             1146          (ii) except as provided in Subsection (108)(a)(i)(B):
             1147          (A) clothing;
             1148          (B) clothing accessories or equipment;


             1149          (C) protective equipment; or
             1150          (D) sports or recreational equipment; or
             1151          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1152      event or school-related activity if the amounts paid or charged are passed through to a person:
             1153          (A) other than a:
             1154          (I) school;
             1155          (II) nonprofit organization authorized by a school board or a governing body of a
             1156      private school to organize and direct a competitive secondary school activity; or
             1157          (III) nonprofit association authorized by a school board or a governing body of a
             1158      private school to organize and direct a competitive secondary school activity; and
             1159          (B) that is required to collect sales and use taxes under this chapter.
             1160          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1161      commission may make rules defining the term "passed through."
             1162          (109) For purposes of this section and Section 59-12-104 , "school":
             1163          (a) means:
             1164          (i) an elementary school or a secondary school that:
             1165          (A) is a:
             1166          (I) public school; or
             1167          (II) private school; and
             1168          (B) provides instruction for one or more grades kindergarten through 12; or
             1169          (ii) a public school district; and
             1170          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1171          (110) "Seller" means a person that makes a sale, lease, or rental of:
             1172          (a) tangible personal property;
             1173          (b) a product transferred electronically; or
             1174          (c) a service.
             1175          (111) (a) "Semiconductor fabricating, processing, research, or development materials"
             1176      means tangible personal property or a product transferred electronically if the tangible personal


             1177      property or product transferred electronically is:
             1178          (i) used primarily in the process of:
             1179          (A) (I) manufacturing a semiconductor;
             1180          (II) fabricating a semiconductor; or
             1181          (III) research or development of a:
             1182          (Aa) semiconductor; or
             1183          (Bb) semiconductor manufacturing process; or
             1184          (B) maintaining an environment suitable for a semiconductor; or
             1185          (ii) consumed primarily in the process of:
             1186          (A) (I) manufacturing a semiconductor;
             1187          (II) fabricating a semiconductor; or
             1188          (III) research or development of a:
             1189          (Aa) semiconductor; or
             1190          (Bb) semiconductor manufacturing process; or
             1191          (B) maintaining an environment suitable for a semiconductor.
             1192          (b) "Semiconductor fabricating, processing, research, or development materials"
             1193      includes:
             1194          (i) parts used in the repairs or renovations of tangible personal property or a product
             1195      transferred electronically described in Subsection (111)(a); or
             1196          (ii) a chemical, catalyst, or other material used to:
             1197          (A) produce or induce in a semiconductor a:
             1198          (I) chemical change; or
             1199          (II) physical change;
             1200          (B) remove impurities from a semiconductor; or
             1201          (C) improve the marketable condition of a semiconductor.
             1202          (112) "Senior citizen center" means a facility having the primary purpose of providing
             1203      services to the aged as defined in Section 62A-3-101 .
             1204          (113) (a) Subject to Subsections (113)(b) and (c), "short-term lodging consumable"


             1205      means tangible personal property that:
             1206          (i) a business that provides accommodations and services described in Subsection
             1207      59-12-103 (1)(i) purchases as part of a transaction to provide the accommodations and services
             1208      to a purchaser;
             1209          (ii) is intended to be consumed by the purchaser; and
             1210          (iii) is:
             1211          (A) included in the purchase price of the accommodations and services; and
             1212          (B) not separately stated on an invoice, bill of sale, or other similar document provided
             1213      to the purchaser.
             1214          (b) "Short-term lodging consumable" includes:
             1215          (i) a beverage;
             1216          (ii) a brush or comb;
             1217          (iii) a cosmetic;
             1218          (iv) a hair care product;
             1219          (v) lotion;
             1220          (vi) a magazine;
             1221          (vii) makeup;
             1222          (viii) a meal;
             1223          (ix) mouthwash;
             1224          (x) nail polish remover;
             1225          (xi) a newspaper;
             1226          (xii) a notepad;
             1227          (xiii) a pen;
             1228          (xiv) a pencil;
             1229          (xv) a razor;
             1230          (xvi) saline solution;
             1231          (xvii) a sewing kit;
             1232          (xviii) shaving cream;


             1233          (xix) a shoe shine kit;
             1234          (xx) a shower cap;
             1235          (xxi) a snack item;
             1236          (xxii) soap;
             1237          (xxiii) toilet paper;
             1238          (xxiv) a toothbrush;
             1239          (xxv) toothpaste; or
             1240          (xxvi) an item similar to Subsections (113)(b)(i) through (xxv) as the commission may
             1241      provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1242      Rulemaking Act.
             1243          (c) "Short-term lodging consumable" does not include:
             1244          (i) tangible personal property that is cleaned or washed to allow the tangible personal
             1245      property to be reused; or
             1246          (ii) a product transferred electronically.
             1247          [(113)] (114) "Simplified electronic return" means the electronic return:
             1248          (a) described in Section 318(C) of the agreement; and
             1249          (b) approved by the governing board of the agreement.
             1250          [(114)] (115) "Solar energy" means the sun used as the sole source of energy for
             1251      producing electricity.
             1252          [(115)] (116) (a) "Sports or recreational equipment" means an item:
             1253          (i) designed for human use; and
             1254          (ii) that is:
             1255          (A) worn in conjunction with:
             1256          (I) an athletic activity; or
             1257          (II) a recreational activity; and
             1258          (B) not suitable for general use.
             1259          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1260      commission shall make rules:


             1261          (i) listing the items that constitute "sports or recreational equipment"; and
             1262          (ii) that are consistent with the list of items that constitute "sports or recreational
             1263      equipment" under the agreement.
             1264          [(116)] (117) "State" means the state of Utah, its departments, and agencies.
             1265          [(117)] (118) "Storage" means any keeping or retention of tangible personal property or
             1266      any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
             1267      except sale in the regular course of business.
             1268          [(118)] (119) (a) Except as provided in Subsection [(118)] (119)(d) or (e), "tangible
             1269      personal property" means personal property that:
             1270          (i) may be:
             1271          (A) seen;
             1272          (B) weighed;
             1273          (C) measured;
             1274          (D) felt; or
             1275          (E) touched; or
             1276          (ii) is in any manner perceptible to the senses.
             1277          (b) "Tangible personal property" includes:
             1278          (i) electricity;
             1279          (ii) water;
             1280          (iii) gas;
             1281          (iv) steam; or
             1282          (v) prewritten computer software, regardless of the manner in which the prewritten
             1283      computer software is transferred.
             1284          (c) "Tangible personal property" includes the following regardless of whether the item
             1285      is attached to real property:
             1286          (i) a dishwasher;
             1287          (ii) a dryer;
             1288          (iii) a freezer;


             1289          (iv) a microwave;
             1290          (v) a refrigerator;
             1291          (vi) a stove;
             1292          (vii) a washer; or
             1293          (viii) an item similar to Subsections [(118)] (119)(c)(i) through (vii) as determined by
             1294      the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1295      Rulemaking Act.
             1296          (d) "Tangible personal property" does not include a product that is transferred
             1297      electronically.
             1298          (e) "Tangible personal property" does not include the following if attached to real
             1299      property, regardless of whether the attachment to real property is only through a line that
             1300      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             1301      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1302      Rulemaking Act:
             1303          (i) a hot water heater;
             1304          (ii) a water filtration system; or
             1305          (iii) a water softener system.
             1306          [(119)] (120) (a) "Telecommunications enabling or facilitating equipment, machinery,
             1307      or software" means an item listed in Subsection [(119)] (120)(b) if that item is purchased or
             1308      leased primarily to enable or facilitate one or more of the following to function:
             1309          (i) telecommunications switching or routing equipment, machinery, or software; or
             1310          (ii) telecommunications transmission equipment, machinery, or software.
             1311          (b) The following apply to Subsection [(119)] (120)(a):
             1312          (i) a pole;
             1313          (ii) software;
             1314          (iii) a supplementary power supply;
             1315          (iv) temperature or environmental equipment or machinery;
             1316          (v) test equipment;


             1317          (vi) a tower; or
             1318          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1319      Subsections [(119)] (120)(b)(i) through (vi) as determined by the commission by rule made in
             1320      accordance with Subsection [(119)] (120)(c).
             1321          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1322      commission may by rule define what constitutes equipment, machinery, or software that
             1323      functions similarly to an item listed in Subsections [(119)] (120)(b)(i) through (vi).
             1324          [(120)] (121) "Telecommunications equipment, machinery, or software required for
             1325      911 service" means equipment, machinery, or software that is required to comply with 47
             1326      C.F.R. Sec. 20.18.
             1327          [(121)] (122) "Telecommunications maintenance or repair equipment, machinery, or
             1328      software" means equipment, machinery, or software purchased or leased primarily to maintain
             1329      or repair one or more of the following, regardless of whether the equipment, machinery, or
             1330      software is purchased or leased as a spare part or as an upgrade or modification to one or more
             1331      of the following:
             1332          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1333          (b) telecommunications switching or routing equipment, machinery, or software; or
             1334          (c) telecommunications transmission equipment, machinery, or software.
             1335          [(122)] (123) (a) "Telecommunications service" means the electronic conveyance,
             1336      routing, or transmission of audio, data, video, voice, or any other information or signal to a
             1337      point, or among or between points.
             1338          (b) "Telecommunications service" includes:
             1339          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             1340      processing application is used to act:
             1341          (A) on the code, form, or protocol of the content;
             1342          (B) for the purpose of electronic conveyance, routing, or transmission; and
             1343          (C) regardless of whether the service:
             1344          (I) is referred to as voice over Internet protocol service; or


             1345          (II) is classified by the Federal Communications Commission as enhanced or value
             1346      added;
             1347          (ii) an 800 service;
             1348          (iii) a 900 service;
             1349          (iv) a fixed wireless service;
             1350          (v) a mobile wireless service;
             1351          (vi) a postpaid calling service;
             1352          (vii) a prepaid calling service;
             1353          (viii) a prepaid wireless calling service; or
             1354          (ix) a private communications service.
             1355          (c) "Telecommunications service" does not include:
             1356          (i) advertising, including directory advertising;
             1357          (ii) an ancillary service;
             1358          (iii) a billing and collection service provided to a third party;
             1359          (iv) a data processing and information service if:
             1360          (A) the data processing and information service allows data to be:
             1361          (I) (Aa) acquired;
             1362          (Bb) generated;
             1363          (Cc) processed;
             1364          (Dd) retrieved; or
             1365          (Ee) stored; and
             1366          (II) delivered by an electronic transmission to a purchaser; and
             1367          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             1368      or information;
             1369          (v) installation or maintenance of the following on a customer's premises:
             1370          (A) equipment; or
             1371          (B) wiring;
             1372          (vi) Internet access service;


             1373          (vii) a paging service;
             1374          (viii) a product transferred electronically, including:
             1375          (A) music;
             1376          (B) reading material;
             1377          (C) a ring tone;
             1378          (D) software; or
             1379          (E) video;
             1380          (ix) a radio and television audio and video programming service:
             1381          (A) regardless of the medium; and
             1382          (B) including:
             1383          (I) furnishing conveyance, routing, or transmission of a television audio and video
             1384      programming service by a programming service provider;
             1385          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             1386          (III) audio and video programming services delivered by a commercial mobile radio
             1387      service provider as defined in 47 C.F.R. Sec. 20.3;
             1388          (x) a value-added nonvoice data service; or
             1389          (xi) tangible personal property.
             1390          [(123)] (124) (a) "Telecommunications service provider" means a person that:
             1391          (i) owns, controls, operates, or manages a telecommunications service; and
             1392          (ii) engages in an activity described in Subsection [(123)] (124)(a)(i) for the shared use
             1393      with or resale to any person of the telecommunications service.
             1394          (b) A person described in Subsection [(123)] (124)(a) is a telecommunications service
             1395      provider whether or not the Public Service Commission of Utah regulates:
             1396          (i) that person; or
             1397          (ii) the telecommunications service that the person owns, controls, operates, or
             1398      manages.
             1399          [(124)] (125) (a) "Telecommunications switching or routing equipment, machinery, or
             1400      software" means an item listed in Subsection [(124)] (125)(b) if that item is purchased or


             1401      leased primarily for switching or routing:
             1402          (i) an ancillary service;
             1403          (ii) data communications;
             1404          (iii) voice communications; or
             1405          (iv) telecommunications service.
             1406          (b) The following apply to Subsection [(124)] (125)(a):
             1407          (i) a bridge;
             1408          (ii) a computer;
             1409          (iii) a cross connect;
             1410          (iv) a modem;
             1411          (v) a multiplexer;
             1412          (vi) plug in circuitry;
             1413          (vii) a router;
             1414          (viii) software;
             1415          (ix) a switch; or
             1416          (x) equipment, machinery, or software that functions similarly to an item listed in
             1417      Subsections [(124)] (125)(b)(i) through (ix) as determined by the commission by rule made in
             1418      accordance with Subsection [(124)] (125)(c).
             1419          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1420      commission may by rule define what constitutes equipment, machinery, or software that
             1421      functions similarly to an item listed in Subsections [(124)] (125)(b)(i) through (ix).
             1422          [(125)] (126) (a) "Telecommunications transmission equipment, machinery, or
             1423      software" means an item listed in Subsection [(125)] (126)(b) if that item is purchased or
             1424      leased primarily for sending, receiving, or transporting:
             1425          (i) an ancillary service;
             1426          (ii) data communications;
             1427          (iii) voice communications; or
             1428          (iv) telecommunications service.


             1429          (b) The following apply to Subsection [(125)] (126)(a):
             1430          (i) an amplifier;
             1431          (ii) a cable;
             1432          (iii) a closure;
             1433          (iv) a conduit;
             1434          (v) a controller;
             1435          (vi) a duplexer;
             1436          (vii) a filter;
             1437          (viii) an input device;
             1438          (ix) an input/output device;
             1439          (x) an insulator;
             1440          (xi) microwave machinery or equipment;
             1441          (xii) an oscillator;
             1442          (xiii) an output device;
             1443          (xiv) a pedestal;
             1444          (xv) a power converter;
             1445          (xvi) a power supply;
             1446          (xvii) a radio channel;
             1447          (xviii) a radio receiver;
             1448          (xix) a radio transmitter;
             1449          (xx) a repeater;
             1450          (xxi) software;
             1451          (xxii) a terminal;
             1452          (xxiii) a timing unit;
             1453          (xxiv) a transformer;
             1454          (xxv) a wire; or
             1455          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1456      Subsections [(125)] (126)(b)(i) through (xxv) as determined by the commission by rule made in


             1457      accordance with Subsection [(125)] (126)(c).
             1458          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1459      commission may by rule define what constitutes equipment, machinery, or software that
             1460      functions similarly to an item listed in Subsections [(125)] (126)(b)(i) through (xxv).
             1461          [(126)] (127) (a) "Textbook for a higher education course" means a textbook or other
             1462      printed material that is required for a course:
             1463          (i) offered by an institution of higher education; and
             1464          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             1465          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             1466          [(127)] (128) "Tobacco" means:
             1467          (a) a cigarette;
             1468          (b) a cigar;
             1469          (c) chewing tobacco;
             1470          (d) pipe tobacco; or
             1471          (e) any other item that contains tobacco.
             1472          [(128)] (129) "Unassisted amusement device" means an amusement device, skill
             1473      device, or ride device that is started and stopped by the purchaser or renter of the right to use or
             1474      operate the amusement device, skill device, or ride device.
             1475          [(129)] (130) (a) "Use" means the exercise of any right or power over tangible personal
             1476      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             1477      incident to the ownership or the leasing of that tangible personal property, product transferred
             1478      electronically, or service.
             1479          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             1480      property, a product transferred electronically, or a service in the regular course of business and
             1481      held for resale.
             1482          [(130)] (131) "Value-added nonvoice data service" means a service:
             1483          (a) that otherwise meets the definition of a telecommunications service except that a
             1484      computer processing application is used to act primarily for a purpose other than conveyance,


             1485      routing, or transmission; and
             1486          (b) with respect to which a computer processing application is used to act on data or
             1487      information:
             1488          (i) code;
             1489          (ii) content;
             1490          (iii) form; or
             1491          (iv) protocol.
             1492          [(131)] (132) (a) Subject to Subsection [(131)] (132)(b), "vehicle" means the following
             1493      that are required to be titled, registered, or titled and registered:
             1494          (i) an aircraft as defined in Section 72-10-102 ;
             1495          (ii) a vehicle as defined in Section 41-1a-102 ;
             1496          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             1497          (iv) a vessel as defined in Section 41-1a-102 .
             1498          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             1499          (i) a vehicle described in Subsection [(131)] (132)(a); or
             1500          (ii) (A) a locomotive;
             1501          (B) a freight car;
             1502          (C) railroad work equipment; or
             1503          (D) other railroad rolling stock.
             1504          [(132)] (133) "Vehicle dealer" means a person engaged in the business of buying,
             1505      selling, or exchanging a vehicle as defined in Subsection [(131)] (132).
             1506          [(133)] (134) (a) "Vertical service" means an ancillary service that:
             1507          (i) is offered in connection with one or more telecommunications services; and
             1508          (ii) offers an advanced calling feature that allows a customer to:
             1509          (A) identify a caller; and
             1510          (B) manage multiple calls and call connections.
             1511          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             1512      conference bridging service.


             1513          [(134)] (135) (a) "Voice mail service" means an ancillary service that enables a
             1514      customer to receive, send, or store a recorded message.
             1515          (b) "Voice mail service" does not include a vertical service that a customer is required
             1516      to have in order to utilize a voice mail service.
             1517          [(135)] (136) (a) Except as provided in Subsection [(135)] (136)(b), "waste energy
             1518      facility" means a facility that generates electricity:
             1519          (i) using as the primary source of energy waste materials that would be placed in a
             1520      landfill or refuse pit if it were not used to generate electricity, including:
             1521          (A) tires;
             1522          (B) waste coal;
             1523          (C) oil shale; or
             1524          (D) municipal solid waste; and
             1525          (ii) in amounts greater than actually required for the operation of the facility.
             1526          (b) "Waste energy facility" does not include a facility that incinerates:
             1527          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
             1528          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             1529          [(136)] (137) "Watercraft" means a vessel as defined in Section 73-18-2 .
             1530          [(137)] (138) "Wind energy" means wind used as the sole source of energy to produce
             1531      electricity.
             1532          [(138)] (139) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
             1533      geographic location by the United States Postal Service.
             1534          Section 2. Section 59-12-102 (Effective 07/01/14) is amended to read:
             1535           59-12-102 (Effective 07/01/14). Definitions.
             1536          As used in this chapter:
             1537          (1) "800 service" means a telecommunications service that:
             1538          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             1539          (b) is typically marketed:
             1540          (i) under the name 800 toll-free calling;


             1541          (ii) under the name 855 toll-free calling;
             1542          (iii) under the name 866 toll-free calling;
             1543          (iv) under the name 877 toll-free calling;
             1544          (v) under the name 888 toll-free calling; or
             1545          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             1546      Federal Communications Commission.
             1547          (2) (a) "900 service" means an inbound toll telecommunications service that:
             1548          (i) a subscriber purchases;
             1549          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             1550      the subscriber's:
             1551          (A) prerecorded announcement; or
             1552          (B) live service; and
             1553          (iii) is typically marketed:
             1554          (A) under the name 900 service; or
             1555          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             1556      Communications Commission.
             1557          (b) "900 service" does not include a charge for:
             1558          (i) a collection service a seller of a telecommunications service provides to a
             1559      subscriber; or
             1560          (ii) the following a subscriber sells to the subscriber's customer:
             1561          (A) a product; or
             1562          (B) a service.
             1563          (3) (a) "Admission or user fees" includes season passes.
             1564          (b) "Admission or user fees" does not include annual membership dues to private
             1565      organizations.
             1566          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             1567      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             1568      Agreement after November 12, 2002.


             1569          (5) "Agreement combined tax rate" means the sum of the tax rates:
             1570          (a) listed under Subsection (6); and
             1571          (b) that are imposed within a local taxing jurisdiction.
             1572          (6) "Agreement sales and use tax" means a tax imposed under:
             1573          (a) Subsection 59-12-103 (2)(a)(i)(A);
             1574          (b) Subsection 59-12-103 (2)(b)(i);
             1575          (c) Subsection 59-12-103 (2)(c)(i);
             1576          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             1577          (e) Section 59-12-204 ;
             1578          (f) Section 59-12-401 ;
             1579          (g) Section 59-12-402 ;
             1580          (h) Section 59-12-703 ;
             1581          (i) Section 59-12-802 ;
             1582          (j) Section 59-12-804 ;
             1583          (k) Section 59-12-1102 ;
             1584          (l) Section 59-12-1302 ;
             1585          (m) Section 59-12-1402 ;
             1586          (n) Section 59-12-1802 ;
             1587          (o) Section 59-12-2003 ;
             1588          (p) Section 59-12-2103 ;
             1589          (q) Section 59-12-2213 ;
             1590          (r) Section 59-12-2214 ;
             1591          (s) Section 59-12-2215 ;
             1592          (t) Section 59-12-2216 ;
             1593          (u) Section 59-12-2217 ; or
             1594          (v) Section 59-12-2218 .
             1595          (7) "Aircraft" is as defined in Section 72-10-102 .
             1596          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:


             1597          (a) except for:
             1598          (i) an airline as defined in Section 59-2-102 ; or
             1599          (ii) an affiliated group, as defined in Section 59-7-101 , except that "affiliated group"
             1600      includes a corporation that is qualified to do business but is not otherwise doing business in the
             1601      state, of an airline; and
             1602          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             1603      whether the business entity performs the following in this state:
             1604          (i) check, diagnose, overhaul, and repair:
             1605          (A) an onboard system of a fixed wing turbine powered aircraft; and
             1606          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             1607          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             1608      engine;
             1609          (iii) perform at least the following maintenance on a fixed wing turbine powered
             1610      aircraft:
             1611          (A) an inspection;
             1612          (B) a repair, including a structural repair or modification;
             1613          (C) changing landing gear; and
             1614          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             1615          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             1616      completely apply new paint to the fixed wing turbine powered aircraft; and
             1617          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             1618      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             1619      authority that certifies the fixed wing turbine powered aircraft.
             1620          (9) "Alcoholic beverage" means a beverage that:
             1621          (a) is suitable for human consumption; and
             1622          (b) contains .5% or more alcohol by volume.
             1623          (10) "Alternative energy" means:
             1624          (a) biomass energy;


             1625          (b) geothermal energy;
             1626          (c) hydroelectric energy;
             1627          (d) solar energy;
             1628          (e) wind energy; or
             1629          (f) energy that is derived from:
             1630          (i) coal-to-liquids;
             1631          (ii) nuclear fuel;
             1632          (iii) oil-impregnated diatomaceous earth;
             1633          (iv) oil sands;
             1634          (v) oil shale; or
             1635          (vi) petroleum coke.
             1636          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
             1637      facility" means a facility that:
             1638          (i) uses alternative energy to produce electricity; and
             1639          (ii) has a production capacity of 2 megawatts or greater.
             1640          (b) A facility is an alternative energy electricity production facility regardless of
             1641      whether the facility is:
             1642          (i) connected to an electric grid; or
             1643          (ii) located on the premises of an electricity consumer.
             1644          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
             1645      provision of telecommunications service.
             1646          (b) "Ancillary service" includes:
             1647          (i) a conference bridging service;
             1648          (ii) a detailed communications billing service;
             1649          (iii) directory assistance;
             1650          (iv) a vertical service; or
             1651          (v) a voice mail service.
             1652          (13) "Area agency on aging" is as defined in Section 62A-3-101 .


             1653          (14) "Assisted amusement device" means an amusement device, skill device, or ride
             1654      device that is started and stopped by an individual:
             1655          (a) who is not the purchaser or renter of the right to use or operate the amusement
             1656      device, skill device, or ride device; and
             1657          (b) at the direction of the seller of the right to use the amusement device, skill device,
             1658      or ride device.
             1659          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
             1660      washing of tangible personal property if the cleaning or washing labor is primarily performed
             1661      by an individual:
             1662          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             1663      property; and
             1664          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             1665      property.
             1666          (16) "Authorized carrier" means:
             1667          (a) in the case of vehicles operated over public highways, the holder of credentials
             1668      indicating that the vehicle is or will be operated pursuant to both the International Registration
             1669      Plan and the International Fuel Tax Agreement;
             1670          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             1671      certificate or air carrier's operating certificate; or
             1672          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             1673      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             1674          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
             1675      following that is used as the primary source of energy to produce fuel or electricity:
             1676          (i) material from a plant or tree; or
             1677          (ii) other organic matter that is available on a renewable basis, including:
             1678          (A) slash and brush from forests and woodlands;
             1679          (B) animal waste;
             1680          (C) methane produced:


             1681          (I) at landfills; or
             1682          (II) as a byproduct of the treatment of wastewater residuals;
             1683          (D) aquatic plants; and
             1684          (E) agricultural products.
             1685          (b) "Biomass energy" does not include:
             1686          (i) black liquor;
             1687          (ii) treated woods; or
             1688          (iii) biomass from municipal solid waste other than methane produced:
             1689          (A) at landfills; or
             1690          (B) as a byproduct of the treatment of wastewater residuals.
             1691          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             1692      property, products, or services if the tangible personal property, products, or services are:
             1693          (i) distinct and identifiable; and
             1694          (ii) sold for one nonitemized price.
             1695          (b) "Bundled transaction" does not include:
             1696          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             1697      the basis of the selection by the purchaser of the items of tangible personal property included in
             1698      the transaction;
             1699          (ii) the sale of real property;
             1700          (iii) the sale of services to real property;
             1701          (iv) the retail sale of tangible personal property and a service if:
             1702          (A) the tangible personal property:
             1703          (I) is essential to the use of the service; and
             1704          (II) is provided exclusively in connection with the service; and
             1705          (B) the service is the true object of the transaction;
             1706          (v) the retail sale of two services if:
             1707          (A) one service is provided that is essential to the use or receipt of a second service;
             1708          (B) the first service is provided exclusively in connection with the second service; and


             1709          (C) the second service is the true object of the transaction;
             1710          (vi) a transaction that includes tangible personal property or a product subject to
             1711      taxation under this chapter and tangible personal property or a product that is not subject to
             1712      taxation under this chapter if the:
             1713          (A) seller's purchase price of the tangible personal property or product subject to
             1714      taxation under this chapter is de minimis; or
             1715          (B) seller's sales price of the tangible personal property or product subject to taxation
             1716      under this chapter is de minimis; and
             1717          (vii) the retail sale of tangible personal property that is not subject to taxation under
             1718      this chapter and tangible personal property that is subject to taxation under this chapter if:
             1719          (A) that retail sale includes:
             1720          (I) food and food ingredients;
             1721          (II) a drug;
             1722          (III) durable medical equipment;
             1723          (IV) mobility enhancing equipment;
             1724          (V) an over-the-counter drug;
             1725          (VI) a prosthetic device; or
             1726          (VII) a medical supply; and
             1727          (B) subject to Subsection (18)(f):
             1728          (I) the seller's purchase price of the tangible personal property subject to taxation under
             1729      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             1730          (II) the seller's sales price of the tangible personal property subject to taxation under
             1731      this chapter is 50% or less of the seller's total sales price of that retail sale.
             1732          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
             1733      service that is distinct and identifiable does not include:
             1734          (A) packaging that:
             1735          (I) accompanies the sale of the tangible personal property, product, or service; and
             1736          (II) is incidental or immaterial to the sale of the tangible personal property, product, or


             1737      service;
             1738          (B) tangible personal property, a product, or a service provided free of charge with the
             1739      purchase of another item of tangible personal property, a product, or a service; or
             1740          (C) an item of tangible personal property, a product, or a service included in the
             1741      definition of "purchase price."
             1742          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
             1743      product, or a service is provided free of charge with the purchase of another item of tangible
             1744      personal property, a product, or a service if the sales price of the purchased item of tangible
             1745      personal property, product, or service does not vary depending on the inclusion of the tangible
             1746      personal property, product, or service provided free of charge.
             1747          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
             1748      does not include a price that is separately identified by tangible personal property, product, or
             1749      service on the following, regardless of whether the following is in paper format or electronic
             1750      format:
             1751          (A) a binding sales document; or
             1752          (B) another supporting sales-related document that is available to a purchaser.
             1753          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
             1754      supporting sales-related document that is available to a purchaser includes:
             1755          (A) a bill of sale;
             1756          (B) a contract;
             1757          (C) an invoice;
             1758          (D) a lease agreement;
             1759          (E) a periodic notice of rates and services;
             1760          (F) a price list;
             1761          (G) a rate card;
             1762          (H) a receipt; or
             1763          (I) a service agreement.
             1764          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal


             1765      property or a product subject to taxation under this chapter is de minimis if:
             1766          (A) the seller's purchase price of the tangible personal property or product is 10% or
             1767      less of the seller's total purchase price of the bundled transaction; or
             1768          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             1769      the seller's total sales price of the bundled transaction.
             1770          (ii) For purposes of Subsection (18)(b)(vi), a seller:
             1771          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             1772      purchase price or sales price of the tangible personal property or product subject to taxation
             1773      under this chapter is de minimis; and
             1774          (B) may not use a combination of the seller's purchase price and the seller's sales price
             1775      to determine if the purchase price or sales price of the tangible personal property or product
             1776      subject to taxation under this chapter is de minimis.
             1777          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
             1778      contract to determine if the sales price of tangible personal property or a product is de minimis.
             1779          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
             1780      the seller's purchase price and the seller's sales price to determine if tangible personal property
             1781      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             1782      price of that retail sale.
             1783          (19) "Certified automated system" means software certified by the governing board of
             1784      the agreement that:
             1785          (a) calculates the agreement sales and use tax imposed within a local taxing
             1786      jurisdiction:
             1787          (i) on a transaction; and
             1788          (ii) in the states that are members of the agreement;
             1789          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             1790      member of the agreement; and
             1791          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
             1792          (20) "Certified service provider" means an agent certified:


             1793          (a) by the governing board of the agreement; and
             1794          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             1795      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             1796      own purchases.
             1797          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
             1798      suitable for general use.
             1799          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1800      commission shall make rules:
             1801          (i) listing the items that constitute "clothing"; and
             1802          (ii) that are consistent with the list of items that constitute "clothing" under the
             1803      agreement.
             1804          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             1805          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             1806      fuels that does not constitute industrial use under Subsection (51) or residential use under
             1807      Subsection (101).
             1808          (24) (a) "Common carrier" means a person engaged in or transacting the business of
             1809      transporting passengers, freight, merchandise, or other property for hire within this state.
             1810          (b) (i) "Common carrier" does not include a person who, at the time the person is
             1811      traveling to or from that person's place of employment, transports a passenger to or from the
             1812      passenger's place of employment.
             1813          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
             1814      Utah Administrative Rulemaking Act, the commission may make rules defining what
             1815      constitutes a person's place of employment.
             1816          (25) "Component part" includes:
             1817          (a) poultry, dairy, and other livestock feed, and their components;
             1818          (b) baling ties and twine used in the baling of hay and straw;
             1819          (c) fuel used for providing temperature control of orchards and commercial
             1820      greenhouses doing a majority of their business in wholesale sales, and for providing power for


             1821      off-highway type farm machinery; and
             1822          (d) feed, seeds, and seedlings.
             1823          (26) "Computer" means an electronic device that accepts information:
             1824          (a) (i) in digital form; or
             1825          (ii) in a form similar to digital form; and
             1826          (b) manipulates that information for a result based on a sequence of instructions.
             1827          (27) "Computer software" means a set of coded instructions designed to cause:
             1828          (a) a computer to perform a task; or
             1829          (b) automatic data processing equipment to perform a task.
             1830          (28) "Computer software maintenance contract" means a contract that obligates a seller
             1831      of computer software to provide a customer with:
             1832          (a) future updates or upgrades to computer software;
             1833          (b) support services with respect to computer software; or
             1834          (c) a combination of Subsections (28)(a) and (b).
             1835          (29) (a) "Conference bridging service" means an ancillary service that links two or
             1836      more participants of an audio conference call or video conference call.
             1837          (b) "Conference bridging service" may include providing a telephone number as part of
             1838      the ancillary service described in Subsection (29)(a).
             1839          (c) "Conference bridging service" does not include a telecommunications service used
             1840      to reach the ancillary service described in Subsection (29)(a).
             1841          (30) "Construction materials" means any tangible personal property that will be
             1842      converted into real property.
             1843          (31) "Delivered electronically" means delivered to a purchaser by means other than
             1844      tangible storage media.
             1845          (32) (a) "Delivery charge" means a charge:
             1846          (i) by a seller of:
             1847          (A) tangible personal property;
             1848          (B) a product transferred electronically; or


             1849          (C) services; and
             1850          (ii) for preparation and delivery of the tangible personal property, product transferred
             1851      electronically, or services described in Subsection (32)(a)(i) to a location designated by the
             1852      purchaser.
             1853          (b) "Delivery charge" includes a charge for the following:
             1854          (i) transportation;
             1855          (ii) shipping;
             1856          (iii) postage;
             1857          (iv) handling;
             1858          (v) crating; or
             1859          (vi) packing.
             1860          (33) "Detailed telecommunications billing service" means an ancillary service of
             1861      separately stating information pertaining to individual calls on a customer's billing statement.
             1862          (34) "Dietary supplement" means a product, other than tobacco, that:
             1863          (a) is intended to supplement the diet;
             1864          (b) contains one or more of the following dietary ingredients:
             1865          (i) a vitamin;
             1866          (ii) a mineral;
             1867          (iii) an herb or other botanical;
             1868          (iv) an amino acid;
             1869          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             1870      dietary intake; or
             1871          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             1872      described in Subsections (34)(b)(i) through (v);
             1873          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
             1874          (A) tablet form;
             1875          (B) capsule form;
             1876          (C) powder form;


             1877          (D) softgel form;
             1878          (E) gelcap form; or
             1879          (F) liquid form; or
             1880          (ii) [notwithstanding Subsection (34)(c)(i),] if the product is not intended for ingestion
             1881      in a form described in Subsections (34)(c)(i)(A) through (F), is not represented:
             1882          (A) as conventional food; and
             1883          (B) for use as a sole item of:
             1884          (I) a meal; or
             1885          (II) the diet; and
             1886          (d) is required to be labeled as a dietary supplement:
             1887          (i) identifiable by the "Supplemental Facts" box found on the label; and
             1888          (ii) as required by 21 C.F.R. Sec. 101.36.
             1889          (35) (a) "Direct mail" means printed material delivered or distributed by United States
             1890      mail or other delivery service:
             1891          (i) to:
             1892          (A) a mass audience; or
             1893          (B) addressees on a mailing list provided:
             1894          (I) by a purchaser of the mailing list; or
             1895          (II) at the discretion of the purchaser of the mailing list; and
             1896          (ii) if the cost of the printed material is not billed directly to the recipients.
             1897          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             1898      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             1899          (c) "Direct mail" does not include multiple items of printed material delivered to a
             1900      single address.
             1901          (36) "Directory assistance" means an ancillary service of providing:
             1902          (a) address information; or
             1903          (b) telephone number information.
             1904          (37) (a) "Disposable home medical equipment or supplies" means medical equipment


             1905      or supplies that:
             1906          (i) cannot withstand repeated use; and
             1907          (ii) are purchased by, for, or on behalf of a person other than:
             1908          (A) a health care facility as defined in Section 26-21-2 ;
             1909          (B) a health care provider as defined in Section 78B-3-403 ;
             1910          (C) an office of a health care provider described in Subsection (37)(a)(ii)(B); or
             1911          (D) a person similar to a person described in Subsections (37)(a)(ii)(A) through (C).
             1912          (b) "Disposable home medical equipment or supplies" does not include:
             1913          (i) a drug;
             1914          (ii) durable medical equipment;
             1915          (iii) a hearing aid;
             1916          (iv) a hearing aid accessory;
             1917          (v) mobility enhancing equipment; or
             1918          (vi) tangible personal property used to correct impaired vision, including:
             1919          (A) eyeglasses; or
             1920          (B) contact lenses.
             1921          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1922      commission may by rule define what constitutes medical equipment or supplies.
             1923          (38) (a) "Drug" means a compound, substance, or preparation, or a component of a
             1924      compound, substance, or preparation that is:
             1925          (i) recognized in:
             1926          (A) the official United States Pharmacopoeia;
             1927          (B) the official Homeopathic Pharmacopoeia of the United States;
             1928          (C) the official National Formulary; or
             1929          (D) a supplement to a publication listed in Subsections (38)(a)(i)(A) through (C);
             1930          (ii) intended for use in the:
             1931          (A) diagnosis of disease;
             1932          (B) cure of disease;


             1933          (C) mitigation of disease;
             1934          (D) treatment of disease; or
             1935          (E) prevention of disease; or
             1936          (iii) intended to affect:
             1937          (A) the structure of the body; or
             1938          (B) any function of the body.
             1939          (b) "Drug" does not include:
             1940          (i) food and food ingredients;
             1941          (ii) a dietary supplement;
             1942          (iii) an alcoholic beverage; or
             1943          (iv) a prosthetic device.
             1944          (39) (a) Except as provided in Subsection (39)(c), "durable medical equipment" means
             1945      equipment that:
             1946          (i) can withstand repeated use;
             1947          (ii) is primarily and customarily used to serve a medical purpose;
             1948          (iii) generally is not useful to a person in the absence of illness or injury; and
             1949          (iv) is not worn in or on the body.
             1950          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             1951      equipment described in Subsection (39)(a).
             1952          (c) [Notwithstanding Subsection (39)(a), "durable] "Durable medical equipment" does
             1953      not include mobility enhancing equipment.
             1954          (40) "Electronic" means:
             1955          (a) relating to technology; and
             1956          (b) having:
             1957          (i) electrical capabilities;
             1958          (ii) digital capabilities;
             1959          (iii) magnetic capabilities;
             1960          (iv) wireless capabilities;


             1961          (v) optical capabilities;
             1962          (vi) electromagnetic capabilities; or
             1963          (vii) capabilities similar to Subsections (40)(b)(i) through (vi).
             1964          (41) "Employee" is as defined in Section 59-10-401 .
             1965          (42) "Fixed guideway" means a public transit facility that uses and occupies:
             1966          (a) rail for the use of public transit; or
             1967          (b) a separate right-of-way for the use of public transit.
             1968          (43) "Fixed wing turbine powered aircraft" means an aircraft that:
             1969          (a) is powered by turbine engines;
             1970          (b) operates on jet fuel; and
             1971          (c) has wings that are permanently attached to the fuselage of the aircraft.
             1972          (44) "Fixed wireless service" means a telecommunications service that provides radio
             1973      communication between fixed points.
             1974          (45) (a) "Food and food ingredients" means substances:
             1975          (i) regardless of whether the substances are in:
             1976          (A) liquid form;
             1977          (B) concentrated form;
             1978          (C) solid form;
             1979          (D) frozen form;
             1980          (E) dried form; or
             1981          (F) dehydrated form; and
             1982          (ii) that are:
             1983          (A) sold for:
             1984          (I) ingestion by humans; or
             1985          (II) chewing by humans; and
             1986          (B) consumed for the substance's:
             1987          (I) taste; or
             1988          (II) nutritional value.


             1989          (b) "Food and food ingredients" includes an item described in Subsection (86)(b)(iii).
             1990          (c) "Food and food ingredients" does not include:
             1991          (i) an alcoholic beverage;
             1992          (ii) tobacco; or
             1993          (iii) prepared food.
             1994          (46) (a) "Fundraising sales" means sales:
             1995          (i) (A) made by a school; or
             1996          (B) made by a school student;
             1997          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             1998      materials, or provide transportation; and
             1999          (iii) that are part of an officially sanctioned school activity.
             2000          (b) For purposes of Subsection (46)(a)(iii), "officially sanctioned school activity"
             2001      means a school activity:
             2002          (i) that is conducted in accordance with a formal policy adopted by the school or school
             2003      district governing the authorization and supervision of fundraising activities;
             2004          (ii) that does not directly or indirectly compensate an individual teacher or other
             2005      educational personnel by direct payment, commissions, or payment in kind; and
             2006          (iii) the net or gross revenues from which are deposited in a dedicated account
             2007      controlled by the school or school district.
             2008          (47) "Geothermal energy" means energy contained in heat that continuously flows
             2009      outward from the earth that is used as the sole source of energy to produce electricity.
             2010          (48) "Governing board of the agreement" means the governing board of the agreement
             2011      that is:
             2012          (a) authorized to administer the agreement; and
             2013          (b) established in accordance with the agreement.
             2014          (49) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             2015          (i) the executive branch of the state, including all departments, institutions, boards,
             2016      divisions, bureaus, offices, commissions, and committees;


             2017          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             2018      Office of the Court Administrator, and similar administrative units in the judicial branch;
             2019          (iii) the legislative branch of the state, including the House of Representatives, the
             2020      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             2021      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             2022      Analyst;
             2023          (iv) the National Guard;
             2024          (v) an independent entity as defined in Section 63E-1-102 ; or
             2025          (vi) a political subdivision as defined in Section 17B-1-102 .
             2026          (b) "Governmental entity" does not include the state systems of public and higher
             2027      education, including:
             2028          (i) a college campus of the Utah College of Applied Technology;
             2029          (ii) a school;
             2030          (iii) the State Board of Education;
             2031          (iv) the State Board of Regents; or
             2032          (v) an institution of higher education.
             2033          (50) "Hydroelectric energy" means water used as the sole source of energy to produce
             2034      electricity.
             2035          (51) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             2036      other fuels:
             2037          (a) in mining or extraction of minerals;
             2038          (b) in agricultural operations to produce an agricultural product up to the time of
             2039      harvest or placing the agricultural product into a storage facility, including:
             2040          (i) commercial greenhouses;
             2041          (ii) irrigation pumps;
             2042          (iii) farm machinery;
             2043          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             2044      registered under Title 41, Chapter 1a, Part 2, Registration; and


             2045          (v) other farming activities;
             2046          (c) in manufacturing tangible personal property at an establishment described in SIC
             2047      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             2048      Executive Office of the President, Office of Management and Budget;
             2049          (d) by a scrap recycler if:
             2050          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             2051      one or more of the following items into prepared grades of processed materials for use in new
             2052      products:
             2053          (A) iron;
             2054          (B) steel;
             2055          (C) nonferrous metal;
             2056          (D) paper;
             2057          (E) glass;
             2058          (F) plastic;
             2059          (G) textile; or
             2060          (H) rubber; and
             2061          (ii) the new products under Subsection (51)(d)(i) would otherwise be made with
             2062      nonrecycled materials; or
             2063          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             2064      cogeneration facility as defined in Section 54-2-1 .
             2065          (52) (a) Except as provided in Subsection (52)(b), "installation charge" means a charge
             2066      for installing:
             2067          (i) tangible personal property; or
             2068          (ii) a product transferred electronically.
             2069          (b) "Installation charge" does not include a charge for:
             2070          (i) repairs or renovations of:
             2071          (A) tangible personal property; or
             2072          (B) a product transferred electronically; or


             2073          (ii) attaching tangible personal property or a product transferred electronically:
             2074          (A) to other tangible personal property; and
             2075          (B) as part of a manufacturing or fabrication process.
             2076          (53) "Institution of higher education" means an institution of higher education listed in
             2077      Section 53B-2-101 .
             2078          (54) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             2079      personal property or a product transferred electronically for:
             2080          (i) (A) a fixed term; or
             2081          (B) an indeterminate term; and
             2082          (ii) consideration.
             2083          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             2084      amount of consideration may be increased or decreased by reference to the amount realized
             2085      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             2086      Code.
             2087          (c) "Lease" or "rental" does not include:
             2088          (i) a transfer of possession or control of property under a security agreement or
             2089      deferred payment plan that requires the transfer of title upon completion of the required
             2090      payments;
             2091          (ii) a transfer of possession or control of property under an agreement that requires the
             2092      transfer of title:
             2093          (A) upon completion of required payments; and
             2094          (B) if the payment of an option price does not exceed the greater of:
             2095          (I) $100; or
             2096          (II) 1% of the total required payments; or
             2097          (iii) providing tangible personal property along with an operator for a fixed period of
             2098      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             2099      designed.
             2100          (d) For purposes of Subsection (54)(c)(iii), an operator is necessary for equipment to


             2101      perform as designed if the operator's duties exceed the:
             2102          (i) set-up of tangible personal property;
             2103          (ii) maintenance of tangible personal property; or
             2104          (iii) inspection of tangible personal property.
             2105          (55) "Life science establishment" means an establishment in this state that is classified
             2106      under the following NAICS codes of the 2007 North American Industry Classification System
             2107      of the federal Executive Office of the President, Office of Management and Budget:
             2108          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
             2109          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
             2110      Manufacturing; or
             2111          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
             2112          (56) "Life science research and development facility" means a facility owned, leased,
             2113      or rented by a life science establishment if research and development is performed in 51% or
             2114      more of the total area of the facility.
             2115          (57) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             2116      if the tangible storage media is not physically transferred to the purchaser.
             2117          (58) "Local taxing jurisdiction" means a:
             2118          (a) county that is authorized to impose an agreement sales and use tax;
             2119          (b) city that is authorized to impose an agreement sales and use tax; or
             2120          (c) town that is authorized to impose an agreement sales and use tax.
             2121          (59) "Manufactured home" is as defined in Section 15A-1-302 .
             2122          (60) For purposes of Section 59-12-104 , "manufacturing facility" means:
             2123          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             2124      Industrial Classification Manual of the federal Executive Office of the President, Office of
             2125      Management and Budget;
             2126          (b) a scrap recycler if:
             2127          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             2128      one or more of the following items into prepared grades of processed materials for use in new


             2129      products:
             2130          (A) iron;
             2131          (B) steel;
             2132          (C) nonferrous metal;
             2133          (D) paper;
             2134          (E) glass;
             2135          (F) plastic;
             2136          (G) textile; or
             2137          (H) rubber; and
             2138          (ii) the new products under Subsection (60)(b)(i) would otherwise be made with
             2139      nonrecycled materials; or
             2140          (c) a cogeneration facility as defined in Section 54-2-1 .
             2141          (61) "Member of the immediate family of the producer" means a person who is related
             2142      to a producer described in Subsection 59-12-104 (20)(a) as a:
             2143          (a) child or stepchild, regardless of whether the child or stepchild is:
             2144          (i) an adopted child or adopted stepchild; or
             2145          (ii) a foster child or foster stepchild;
             2146          (b) grandchild or stepgrandchild;
             2147          (c) grandparent or stepgrandparent;
             2148          (d) nephew or stepnephew;
             2149          (e) niece or stepniece;
             2150          (f) parent or stepparent;
             2151          (g) sibling or stepsibling;
             2152          (h) spouse;
             2153          (i) person who is the spouse of a person described in Subsections (61)(a) through (g);
             2154      or
             2155          (j) person similar to a person described in Subsections (61)(a) through (i) as
             2156      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah


             2157      Administrative Rulemaking Act.
             2158          (62) "Mobile home" is as defined in Section 15A-1-302 .
             2159          (63) "Mobile telecommunications service" is as defined in the Mobile
             2160      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             2161          (64) (a) "Mobile wireless service" means a telecommunications service, regardless of
             2162      the technology used, if:
             2163          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             2164          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             2165          (iii) the origination point described in Subsection (64)(a)(i) and the termination point
             2166      described in Subsection (64)(a)(ii) are not fixed.
             2167          (b) "Mobile wireless service" includes a telecommunications service that is provided
             2168      by a commercial mobile radio service provider.
             2169          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2170      commission may by rule define "commercial mobile radio service provider."
             2171          (65) (a) Except as provided in Subsection (65)(c), "mobility enhancing equipment"
             2172      means equipment that is:
             2173          (i) primarily and customarily used to provide or increase the ability to move from one
             2174      place to another;
             2175          (ii) appropriate for use in a:
             2176          (A) home; or
             2177          (B) motor vehicle; and
             2178          (iii) not generally used by persons with normal mobility.
             2179          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             2180      the equipment described in Subsection (65)(a).
             2181          (c) [Notwithstanding Subsection (65)(a), "mobility] "Mobility enhancing equipment"
             2182      does not include:
             2183          (i) a motor vehicle;
             2184          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor


             2185      vehicle manufacturer;
             2186          (iii) durable medical equipment; or
             2187          (iv) a prosthetic device.
             2188          (66) "Model 1 seller" means a seller registered under the agreement that has selected a
             2189      certified service provider as the seller's agent to perform all of the seller's sales and use tax
             2190      functions for agreement sales and use taxes other than the seller's obligation under Section
             2191      59-12-124 to remit a tax on the seller's own purchases.
             2192          (67) "Model 2 seller" means a seller registered under the agreement that:
             2193          (a) except as provided in Subsection (67)(b), has selected a certified automated system
             2194      to perform the seller's sales tax functions for agreement sales and use taxes; and
             2195          (b) [notwithstanding Subsection (67)(a),] retains responsibility for remitting all of the
             2196      sales tax:
             2197          (i) collected by the seller; and
             2198          (ii) to the appropriate local taxing jurisdiction.
             2199          (68) (a) Subject to Subsection (68)(b), "model 3 seller" means a seller registered under
             2200      the agreement that has:
             2201          (i) sales in at least five states that are members of the agreement;
             2202          (ii) total annual sales revenues of at least $500,000,000;
             2203          (iii) a proprietary system that calculates the amount of tax:
             2204          (A) for an agreement sales and use tax; and
             2205          (B) due to each local taxing jurisdiction; and
             2206          (iv) entered into a performance agreement with the governing board of the agreement.
             2207          (b) For purposes of Subsection (68)(a), "model 3 seller" includes an affiliated group of
             2208      sellers using the same proprietary system.
             2209          (69) "Model 4 seller" means a seller that is registered under the agreement and is not a
             2210      model 1 seller, model 2 seller, or model 3 seller.
             2211          (70) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             2212          (71) "Motor vehicle" is as defined in Section 41-1a-102 .


             2213          (72) "Oil sands" means impregnated bituminous sands that:
             2214          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
             2215      other hydrocarbons, or otherwise treated;
             2216          (b) yield mixtures of liquid hydrocarbon; and
             2217          (c) require further processing other than mechanical blending before becoming finished
             2218      petroleum products.
             2219          (73) "Oil shale" means a group of fine black to dark brown shales containing kerogen
             2220      material that yields petroleum upon heating and distillation.
             2221          (74) "Optional computer software maintenance contract" means a computer software
             2222      maintenance contract that a customer is not obligated to purchase as a condition to the retail
             2223      sale of computer software.
             2224          (75) (a) "Other fuels" means products that burn independently to produce heat or
             2225      energy.
             2226          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             2227      personal property.
             2228          (76) (a) "Paging service" means a telecommunications service that provides
             2229      transmission of a coded radio signal for the purpose of activating a specific pager.
             2230          (b) For purposes of Subsection (76)(a), the transmission of a coded radio signal
             2231      includes a transmission by message or sound.
             2232          (77) "Pawnbroker" is as defined in Section 13-32a-102 .
             2233          (78) "Pawn transaction" is as defined in Section 13-32a-102 .
             2234          (79) (a) "Permanently attached to real property" means that for tangible personal
             2235      property attached to real property:
             2236          (i) the attachment of the tangible personal property to the real property:
             2237          (A) is essential to the use of the tangible personal property; and
             2238          (B) suggests that the tangible personal property will remain attached to the real
             2239      property in the same place over the useful life of the tangible personal property; or
             2240          (ii) if the tangible personal property is detached from the real property, the detachment


             2241      would:
             2242          (A) cause substantial damage to the tangible personal property; or
             2243          (B) require substantial alteration or repair of the real property to which the tangible
             2244      personal property is attached.
             2245          (b) "Permanently attached to real property" includes:
             2246          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             2247          (A) essential to the operation of the tangible personal property; and
             2248          (B) attached only to facilitate the operation of the tangible personal property;
             2249          (ii) a temporary detachment of tangible personal property from real property for a
             2250      repair or renovation if the repair or renovation is performed where the tangible personal
             2251      property and real property are located; or
             2252          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             2253      Subsection (79)(c)(iii) or (iv).
             2254          (c) "Permanently attached to real property" does not include:
             2255          (i) the attachment of portable or movable tangible personal property to real property if
             2256      that portable or movable tangible personal property is attached to real property only for:
             2257          (A) convenience;
             2258          (B) stability; or
             2259          (C) for an obvious temporary purpose;
             2260          (ii) the detachment of tangible personal property from real property except for the
             2261      detachment described in Subsection (79)(b)(ii);
             2262          (iii) an attachment of the following tangible personal property to real property if the
             2263      attachment to real property is only through a line that supplies water, electricity, gas,
             2264      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             2265      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             2266          (A) a computer;
             2267          (B) a telephone;
             2268          (C) a television; or


             2269          (D) tangible personal property similar to Subsections (79)(c)(iii)(A) through (C) as
             2270      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             2271      Administrative Rulemaking Act; or
             2272          (iv) an item listed in Subsection [(117)] (119)(c).
             2273          (80) "Person" includes any individual, firm, partnership, joint venture, association,
             2274      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             2275      municipality, district, or other local governmental entity of the state, or any group or
             2276      combination acting as a unit.
             2277          (81) "Place of primary use":
             2278          (a) for telecommunications service other than mobile telecommunications service,
             2279      means the street address representative of where the customer's use of the telecommunications
             2280      service primarily occurs, which shall be:
             2281          (i) the residential street address of the customer; or
             2282          (ii) the primary business street address of the customer; or
             2283          (b) for mobile telecommunications service, is as defined in the Mobile
             2284      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             2285          (82) (a) "Postpaid calling service" means a telecommunications service a person
             2286      obtains by making a payment on a call-by-call basis:
             2287          (i) through the use of a:
             2288          (A) bank card;
             2289          (B) credit card;
             2290          (C) debit card; or
             2291          (D) travel card; or
             2292          (ii) by a charge made to a telephone number that is not associated with the origination
             2293      or termination of the telecommunications service.
             2294          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             2295      service, that would be a prepaid wireless calling service if the service were exclusively a
             2296      telecommunications service.


             2297          (83) "Postproduction" means an activity related to the finishing or duplication of a
             2298      medium described in Subsection 59-12-104 (54)(a).
             2299          (84) "Prepaid calling service" means a telecommunications service:
             2300          (a) that allows a purchaser access to telecommunications service that is exclusively
             2301      telecommunications service;
             2302          (b) that:
             2303          (i) is paid for in advance; and
             2304          (ii) enables the origination of a call using an:
             2305          (A) access number; or
             2306          (B) authorization code;
             2307          (c) that is dialed:
             2308          (i) manually; or
             2309          (ii) electronically; and
             2310          (d) sold in predetermined units or dollars that decline:
             2311          (i) by a known amount; and
             2312          (ii) with use.
             2313          (85) "Prepaid wireless calling service" means a telecommunications service:
             2314          (a) that provides the right to utilize:
             2315          (i) mobile wireless service; and
             2316          (ii) other service that is not a telecommunications service, including:
             2317          (A) the download of a product transferred electronically;
             2318          (B) a content service; or
             2319          (C) an ancillary service;
             2320          (b) that:
             2321          (i) is paid for in advance; and
             2322          (ii) enables the origination of a call using an:
             2323          (A) access number; or
             2324          (B) authorization code;


             2325          (c) that is dialed:
             2326          (i) manually; or
             2327          (ii) electronically; and
             2328          (d) sold in predetermined units or dollars that decline:
             2329          (i) by a known amount; and
             2330          (ii) with use.
             2331          (86) (a) "Prepared food" means:
             2332          (i) food:
             2333          (A) sold in a heated state; or
             2334          (B) heated by a seller;
             2335          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             2336      item; or
             2337          (iii) except as provided in Subsection (86)(c), food sold with an eating utensil provided
             2338      by the seller, including a:
             2339          (A) plate;
             2340          (B) knife;
             2341          (C) fork;
             2342          (D) spoon;
             2343          (E) glass;
             2344          (F) cup;
             2345          (G) napkin; or
             2346          (H) straw.
             2347          (b) "Prepared food" does not include:
             2348          (i) food that a seller only:
             2349          (A) cuts;
             2350          (B) repackages; or
             2351          (C) pasteurizes; or
             2352          (ii) (A) the following:


             2353          (I) raw egg;
             2354          (II) raw fish;
             2355          (III) raw meat;
             2356          (IV) raw poultry; or
             2357          (V) a food containing an item described in Subsections (86)(b)(ii)(A)(I) through (IV);
             2358      and
             2359          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             2360      Food and Drug Administration's Food Code that a consumer cook the items described in
             2361      Subsection (86)(b)(ii)(A) to prevent food borne illness; or
             2362          (iii) the following if sold without eating utensils provided by the seller:
             2363          (A) food and food ingredients sold by a seller if the seller's proper primary
             2364      classification under the 2002 North American Industry Classification System of the federal
             2365      Executive Office of the President, Office of Management and Budget, is manufacturing in
             2366      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             2367      Manufacturing;
             2368          (B) food and food ingredients sold in an unheated state:
             2369          (I) by weight or volume; and
             2370          (II) as a single item; or
             2371          (C) a bakery item, including:
             2372          (I) a bagel;
             2373          (II) a bar;
             2374          (III) a biscuit;
             2375          (IV) bread;
             2376          (V) a bun;
             2377          (VI) a cake;
             2378          (VII) a cookie;
             2379          (VIII) a croissant;
             2380          (IX) a danish;


             2381          (X) a donut;
             2382          (XI) a muffin;
             2383          (XII) a pastry;
             2384          (XIII) a pie;
             2385          (XIV) a roll;
             2386          (XV) a tart;
             2387          (XVI) a torte; or
             2388          (XVII) a tortilla.
             2389          (c) [Notwithstanding Subsection (86)(a)(iii), an] An eating utensil provided by the
             2390      seller does not include the following used to transport the food:
             2391          (i) a container; or
             2392          (ii) packaging.
             2393          (87) "Prescription" means an order, formula, or recipe that is issued:
             2394          (a) (i) orally;
             2395          (ii) in writing;
             2396          (iii) electronically; or
             2397          (iv) by any other manner of transmission; and
             2398          (b) by a licensed practitioner authorized by the laws of a state.
             2399          (88) (a) Except as provided in Subsection (88)(b)(ii) or (iii), "prewritten computer
             2400      software" means computer software that is not designed and developed:
             2401          (i) by the author or other creator of the computer software; and
             2402          (ii) to the specifications of a specific purchaser.
             2403          (b) "Prewritten computer software" includes:
             2404          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             2405      software is not designed and developed:
             2406          (A) by the author or other creator of the computer software; and
             2407          (B) to the specifications of a specific purchaser;
             2408          (ii) [notwithstanding Subsection (88)(a),] computer software designed and developed


             2409      by the author or other creator of the computer software to the specifications of a specific
             2410      purchaser if the computer software is sold to a person other than the purchaser; or
             2411          (iii) [notwithstanding Subsection (88)(a) and] except as provided in Subsection (88)(c),
             2412      prewritten computer software or a prewritten portion of prewritten computer software:
             2413          (A) that is modified or enhanced to any degree; and
             2414          (B) if the modification or enhancement described in Subsection (88)(b)(iii)(A) is
             2415      designed and developed to the specifications of a specific purchaser.
             2416          (c) [Notwithstanding Subsection (88)(b)(iii), "prewritten] "Prewritten computer
             2417      software" does not include a modification or enhancement described in Subsection (88)(b)(iii)
             2418      if the charges for the modification or enhancement are:
             2419          (i) reasonable; and
             2420          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), separately stated on the
             2421      invoice or other statement of price provided to the purchaser at the time of sale or later, as
             2422      demonstrated by:
             2423          (A) the books and records the seller keeps at the time of the transaction in the regular
             2424      course of business, including books and records the seller keeps at the time of the transaction in
             2425      the regular course of business for nontax purposes;
             2426          (B) a preponderance of the facts and circumstances at the time of the transaction; and
             2427          (C) the understanding of all of the parties to the transaction.
             2428          (89) (a) "Private communication service" means a telecommunications service:
             2429          (i) that entitles a customer to exclusive or priority use of one or more communications
             2430      channels between or among termination points; and
             2431          (ii) regardless of the manner in which the one or more communications channels are
             2432      connected.
             2433          (b) "Private communications service" includes the following provided in connection
             2434      with the use of one or more communications channels:
             2435          (i) an extension line;
             2436          (ii) a station;


             2437          (iii) switching capacity; or
             2438          (iv) another associated service that is provided in connection with the use of one or
             2439      more communications channels as defined in Section 59-12-215 .
             2440          (90) (a) Except as provided in Subsection (90)(b), "product transferred electronically"
             2441      means a product transferred electronically that would be subject to a tax under this chapter if
             2442      that product was transferred in a manner other than electronically.
             2443          (b) "Product transferred electronically" does not include:
             2444          (i) an ancillary service;
             2445          (ii) computer software; or
             2446          (iii) a telecommunications service.
             2447          (91) (a) "Prosthetic device" means a device that is worn on or in the body to:
             2448          (i) artificially replace a missing portion of the body;
             2449          (ii) prevent or correct a physical deformity or physical malfunction; or
             2450          (iii) support a weak or deformed portion of the body.
             2451          (b) "Prosthetic device" includes:
             2452          (i) parts used in the repairs or renovation of a prosthetic device;
             2453          (ii) replacement parts for a prosthetic device;
             2454          (iii) a dental prosthesis; or
             2455          (iv) a hearing aid.
             2456          (c) "Prosthetic device" does not include:
             2457          (i) corrective eyeglasses; or
             2458          (ii) contact lenses.
             2459          (92) (a) "Protective equipment" means an item:
             2460          (i) for human wear; and
             2461          (ii) that is:
             2462          (A) designed as protection:
             2463          (I) to the wearer against injury or disease; or
             2464          (II) against damage or injury of other persons or property; and


             2465          (B) not suitable for general use.
             2466          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2467      commission shall make rules:
             2468          (i) listing the items that constitute "protective equipment"; and
             2469          (ii) that are consistent with the list of items that constitute "protective equipment"
             2470      under the agreement.
             2471          (93) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             2472      printed matter, other than a photocopy:
             2473          (i) regardless of:
             2474          (A) characteristics;
             2475          (B) copyright;
             2476          (C) form;
             2477          (D) format;
             2478          (E) method of reproduction; or
             2479          (F) source; and
             2480          (ii) made available in printed or electronic format.
             2481          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2482      commission may by rule define the term "photocopy."
             2483          (94) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             2484          (i) valued in money; and
             2485          (ii) for which tangible personal property, a product transferred electronically, or
             2486      services are:
             2487          (A) sold;
             2488          (B) leased; or
             2489          (C) rented.
             2490          (b) "Purchase price" and "sales price" include:
             2491          (i) the seller's cost of the tangible personal property, a product transferred
             2492      electronically, or services sold;


             2493          (ii) expenses of the seller, including:
             2494          (A) the cost of materials used;
             2495          (B) a labor cost;
             2496          (C) a service cost;
             2497          (D) interest;
             2498          (E) a loss;
             2499          (F) the cost of transportation to the seller; or
             2500          (G) a tax imposed on the seller;
             2501          (iii) a charge by the seller for any service necessary to complete the sale; or
             2502          (iv) consideration a seller receives from a person other than the purchaser if:
             2503          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             2504      and
             2505          (II) the consideration described in Subsection (94)(b)(iv)(A)(I) is directly related to a
             2506      price reduction or discount on the sale;
             2507          (B) the seller has an obligation to pass the price reduction or discount through to the
             2508      purchaser;
             2509          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             2510      the seller at the time of the sale to the purchaser; and
             2511          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             2512      seller to claim a price reduction or discount; and
             2513          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             2514      coupon, or other documentation with the understanding that the person other than the seller
             2515      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             2516          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             2517      organization allowed a price reduction or discount, except that a preferred customer card that is
             2518      available to any patron of a seller does not constitute membership in a group or organization
             2519      allowed a price reduction or discount; or
             2520          (III) the price reduction or discount is identified as a third party price reduction or


             2521      discount on the:
             2522          (Aa) invoice the purchaser receives; or
             2523          (Bb) certificate, coupon, or other documentation the purchaser presents.
             2524          (c) "Purchase price" and "sales price" do not include:
             2525          (i) a discount:
             2526          (A) in a form including:
             2527          (I) cash;
             2528          (II) term; or
             2529          (III) coupon;
             2530          (B) that is allowed by a seller;
             2531          (C) taken by a purchaser on a sale; and
             2532          (D) that is not reimbursed by a third party; or
             2533          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), the following if separately
             2534      stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
             2535      sale or later, as demonstrated by the books and records the seller keeps at the time of the
             2536      transaction in the regular course of business, including books and records the seller keeps at the
             2537      time of the transaction in the regular course of business for nontax purposes, by a
             2538      preponderance of the facts and circumstances at the time of the transaction, and by the
             2539      understanding of all of the parties to the transaction:
             2540          (A) the following from credit extended on the sale of tangible personal property or
             2541      services:
             2542          (I) a carrying charge;
             2543          (II) a financing charge; or
             2544          (III) an interest charge;
             2545          (B) a delivery charge;
             2546          (C) an installation charge;
             2547          (D) a manufacturer rebate on a motor vehicle; or
             2548          (E) a tax or fee legally imposed directly on the consumer.


             2549          (95) "Purchaser" means a person to whom:
             2550          (a) a sale of tangible personal property is made;
             2551          (b) a product is transferred electronically; or
             2552          (c) a service is furnished.
             2553          (96) "Regularly rented" means:
             2554          (a) rented to a guest for value three or more times during a calendar year; or
             2555          (b) advertised or held out to the public as a place that is regularly rented to guests for
             2556      value.
             2557          (97) "Rental" is as defined in Subsection (54).
             2558          (98) (a) Except as provided in Subsection (98)(b), "repairs or renovations of tangible
             2559      personal property" means:
             2560          (i) a repair or renovation of tangible personal property that is not permanently attached
             2561      to real property; or
             2562          (ii) attaching tangible personal property or a product transferred electronically to other
             2563      tangible personal property or detaching tangible personal property or a product transferred
             2564      electronically from other tangible personal property if:
             2565          (A) the other tangible personal property to which the tangible personal property or
             2566      product transferred electronically is attached or from which the tangible personal property or
             2567      product transferred electronically is detached is not permanently attached to real property; and
             2568          (B) the attachment of tangible personal property or a product transferred electronically
             2569      to other tangible personal property or detachment of tangible personal property or a product
             2570      transferred electronically from other tangible personal property is made in conjunction with a
             2571      repair or replacement of tangible personal property or a product transferred electronically.
             2572          (b) "Repairs or renovations of tangible personal property" does not include:
             2573          (i) attaching prewritten computer software to other tangible personal property if the
             2574      other tangible personal property to which the prewritten computer software is attached is not
             2575      permanently attached to real property; or
             2576          (ii) detaching prewritten computer software from other tangible personal property if the


             2577      other tangible personal property from which the prewritten computer software is detached is
             2578      not permanently attached to real property.
             2579          (99) "Research and development" means the process of inquiry or experimentation
             2580      aimed at the discovery of facts, devices, technologies, or applications and the process of
             2581      preparing those devices, technologies, or applications for marketing.
             2582          (100) (a) "Residential telecommunications services" means a telecommunications
             2583      service or an ancillary service that is provided to an individual for personal use:
             2584          (i) at a residential address; or
             2585          (ii) at an institution, including a nursing home or a school, if the telecommunications
             2586      service or ancillary service is provided to and paid for by the individual residing at the
             2587      institution rather than the institution.
             2588          (b) For purposes of Subsection (100)(a)(i), a residential address includes an:
             2589          (i) apartment; or
             2590          (ii) other individual dwelling unit.
             2591          (101) "Residential use" means the use in or around a home, apartment building,
             2592      sleeping quarters, and similar facilities or accommodations.
             2593          (102) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             2594      than:
             2595          (a) resale;
             2596          (b) sublease; or
             2597          (c) subrent.
             2598          (103) (a) "Retailer" means any person engaged in a regularly organized business in
             2599      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             2600      who is selling to the user or consumer and not for resale.
             2601          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             2602      engaged in the business of selling to users or consumers within the state.
             2603          (104) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             2604      otherwise, in any manner, of tangible personal property or any other taxable transaction under


             2605      Subsection 59-12-103 (1), for consideration.
             2606          (b) "Sale" includes:
             2607          (i) installment and credit sales;
             2608          (ii) any closed transaction constituting a sale;
             2609          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             2610      chapter;
             2611          (iv) any transaction if the possession of property is transferred but the seller retains the
             2612      title as security for the payment of the price; and
             2613          (v) any transaction under which right to possession, operation, or use of any article of
             2614      tangible personal property is granted under a lease or contract and the transfer of possession
             2615      would be taxable if an outright sale were made.
             2616          (105) "Sale at retail" is as defined in Subsection (102).
             2617          (106) "Sale-leaseback transaction" means a transaction by which title to tangible
             2618      personal property or a product transferred electronically that is subject to a tax under this
             2619      chapter is transferred:
             2620          (a) by a purchaser-lessee;
             2621          (b) to a lessor;
             2622          (c) for consideration; and
             2623          (d) if:
             2624          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             2625      of the tangible personal property or product transferred electronically;
             2626          (ii) the sale of the tangible personal property or product transferred electronically to the
             2627      lessor is intended as a form of financing:
             2628          (A) for the tangible personal property or product transferred electronically; and
             2629          (B) to the purchaser-lessee; and
             2630          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             2631      is required to:
             2632          (A) capitalize the tangible personal property or product transferred electronically for


             2633      financial reporting purposes; and
             2634          (B) account for the lease payments as payments made under a financing arrangement.
             2635          (107) "Sales price" is as defined in Subsection (94).
             2636          (108) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             2637      amounts charged by a school:
             2638          (i) sales that are directly related to the school's educational functions or activities
             2639      including:
             2640          (A) the sale of:
             2641          (I) textbooks;
             2642          (II) textbook fees;
             2643          (III) laboratory fees;
             2644          (IV) laboratory supplies; or
             2645          (V) safety equipment;
             2646          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             2647      that:
             2648          (I) a student is specifically required to wear as a condition of participation in a
             2649      school-related event or school-related activity; and
             2650          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             2651      place of ordinary clothing;
             2652          (C) sales of the following if the net or gross revenues generated by the sales are
             2653      deposited into a school district fund or school fund dedicated to school meals:
             2654          (I) food and food ingredients; or
             2655          (II) prepared food; or
             2656          (D) transportation charges for official school activities; or
             2657          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             2658      event or school-related activity.
             2659          (b) "Sales relating to schools" does not include:
             2660          (i) bookstore sales of items that are not educational materials or supplies;


             2661          (ii) except as provided in Subsection (108)(a)(i)(B):
             2662          (A) clothing;
             2663          (B) clothing accessories or equipment;
             2664          (C) protective equipment; or
             2665          (D) sports or recreational equipment; or
             2666          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             2667      event or school-related activity if the amounts paid or charged are passed through to a person:
             2668          (A) other than a:
             2669          (I) school;
             2670          (II) nonprofit organization authorized by a school board or a governing body of a
             2671      private school to organize and direct a competitive secondary school activity; or
             2672          (III) nonprofit association authorized by a school board or a governing body of a
             2673      private school to organize and direct a competitive secondary school activity; and
             2674          (B) that is required to collect sales and use taxes under this chapter.
             2675          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2676      commission may make rules defining the term "passed through."
             2677          (109) For purposes of this section and Section 59-12-104 , "school":
             2678          (a) means:
             2679          (i) an elementary school or a secondary school that:
             2680          (A) is a:
             2681          (I) public school; or
             2682          (II) private school; and
             2683          (B) provides instruction for one or more grades kindergarten through 12; or
             2684          (ii) a public school district; and
             2685          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             2686          (110) "Seller" means a person that makes a sale, lease, or rental of:
             2687          (a) tangible personal property;
             2688          (b) a product transferred electronically; or


             2689          (c) a service.
             2690          (111) (a) "Semiconductor fabricating, processing, research, or development materials"
             2691      means tangible personal property or a product transferred electronically if the tangible personal
             2692      property or product transferred electronically is:
             2693          (i) used primarily in the process of:
             2694          (A) (I) manufacturing a semiconductor;
             2695          (II) fabricating a semiconductor; or
             2696          (III) research or development of a:
             2697          (Aa) semiconductor; or
             2698          (Bb) semiconductor manufacturing process; or
             2699          (B) maintaining an environment suitable for a semiconductor; or
             2700          (ii) consumed primarily in the process of:
             2701          (A) (I) manufacturing a semiconductor;
             2702          (II) fabricating a semiconductor; or
             2703          (III) research or development of a:
             2704          (Aa) semiconductor; or
             2705          (Bb) semiconductor manufacturing process; or
             2706          (B) maintaining an environment suitable for a semiconductor.
             2707          (b) "Semiconductor fabricating, processing, research, or development materials"
             2708      includes:
             2709          (i) parts used in the repairs or renovations of tangible personal property or a product
             2710      transferred electronically described in Subsection (111)(a); or
             2711          (ii) a chemical, catalyst, or other material used to:
             2712          (A) produce or induce in a semiconductor a:
             2713          (I) chemical change; or
             2714          (II) physical change;
             2715          (B) remove impurities from a semiconductor; or
             2716          (C) improve the marketable condition of a semiconductor.


             2717          (112) "Senior citizen center" means a facility having the primary purpose of providing
             2718      services to the aged as defined in Section 62A-3-101 .
             2719          (113) (a) Subject to Subsections (113)(b) and (c), "short-term lodging consumable"
             2720      means tangible personal property that:
             2721          (i) a business that provides accommodations and services described in Subsection
             2722      59-12-103 (1)(i) purchases as part of a transaction to provide the accommodations and services
             2723      to a purchaser;
             2724          (ii) is intended to be consumed by the purchaser; and
             2725          (iii) is:
             2726          (A) included in the purchase price of the accommodations and services; and
             2727          (B) not separately stated on an invoice, bill of sale, or other similar document provided
             2728      to the purchaser.
             2729          (b) "Short-term lodging consumable" includes:
             2730          (i) a beverage;
             2731          (ii) a brush or comb;
             2732          (iii) a cosmetic;
             2733          (iv) a hair care product;
             2734          (v) lotion;
             2735          (vi) a magazine;
             2736          (vii) makeup;
             2737          (viii) a meal;
             2738          (ix) mouthwash;
             2739          (x) nail polish remover;
             2740          (xi) a newspaper;
             2741          (xii) a notepad;
             2742          (xiii) a pen;
             2743          (xiv) a pencil;
             2744          (xv) a razor;


             2745          (xvi) saline solution;
             2746          (xvii) a sewing kit;
             2747          (xviii) shaving cream;
             2748          (xix) a shoe shine kit;
             2749          (xx) a shower cap;
             2750          (xxi) a snack item;
             2751          (xxii) soap;
             2752          (xxiii) toilet paper;
             2753          (xxiv) a toothbrush;
             2754          (xxv) toothpaste; or
             2755          (xxvi) an item similar to Subsections (113)(b)(i) through (xxv) as the commission may
             2756      provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             2757      Rulemaking Act.
             2758          (c) "Short-term lodging consumable" does not include:
             2759          (i) tangible personal property that is cleaned or washed to allow the tangible personal
             2760      property to be reused; or
             2761          (ii) a product transferred electronically.
             2762          [(113)] (114) "Simplified electronic return" means the electronic return:
             2763          (a) described in Section 318(C) of the agreement; and
             2764          (b) approved by the governing board of the agreement.
             2765          [(114)] (115) "Solar energy" means the sun used as the sole source of energy for
             2766      producing electricity.
             2767          [(115)] (116) (a) "Sports or recreational equipment" means an item:
             2768          (i) designed for human use; and
             2769          (ii) that is:
             2770          (A) worn in conjunction with:
             2771          (I) an athletic activity; or
             2772          (II) a recreational activity; and


             2773          (B) not suitable for general use.
             2774          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2775      commission shall make rules:
             2776          (i) listing the items that constitute "sports or recreational equipment"; and
             2777          (ii) that are consistent with the list of items that constitute "sports or recreational
             2778      equipment" under the agreement.
             2779          [(116)] (117) "State" means the state of Utah, its departments, and agencies.
             2780          [(117)] (118) "Storage" means any keeping or retention of tangible personal property or
             2781      any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
             2782      except sale in the regular course of business.
             2783          [(118)] (119) (a) Except as provided in Subsection [(118)] (119)(d) or (e), "tangible
             2784      personal property" means personal property that:
             2785          (i) may be:
             2786          (A) seen;
             2787          (B) weighed;
             2788          (C) measured;
             2789          (D) felt; or
             2790          (E) touched; or
             2791          (ii) is in any manner perceptible to the senses.
             2792          (b) "Tangible personal property" includes:
             2793          (i) electricity;
             2794          (ii) water;
             2795          (iii) gas;
             2796          (iv) steam; or
             2797          (v) prewritten computer software, regardless of the manner in which the prewritten
             2798      computer software is transferred.
             2799          (c) "Tangible personal property" includes the following regardless of whether the item
             2800      is attached to real property:


             2801          (i) a dishwasher;
             2802          (ii) a dryer;
             2803          (iii) a freezer;
             2804          (iv) a microwave;
             2805          (v) a refrigerator;
             2806          (vi) a stove;
             2807          (vii) a washer; or
             2808          (viii) an item similar to Subsections [(118)] (119)(c)(i) through (vii) as determined by
             2809      the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             2810      Rulemaking Act.
             2811          (d) "Tangible personal property" does not include a product that is transferred
             2812      electronically.
             2813          (e) "Tangible personal property" does not include the following if attached to real
             2814      property, regardless of whether the attachment to real property is only through a line that
             2815      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             2816      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             2817      Rulemaking Act:
             2818          (i) a hot water heater;
             2819          (ii) a water filtration system; or
             2820          (iii) a water softener system.
             2821          [(119)] (120) (a) "Telecommunications enabling or facilitating equipment, machinery,
             2822      or software" means an item listed in Subsection [(119)] (120)(b) if that item is purchased or
             2823      leased primarily to enable or facilitate one or more of the following to function:
             2824          (i) telecommunications switching or routing equipment, machinery, or software; or
             2825          (ii) telecommunications transmission equipment, machinery, or software.
             2826          (b) The following apply to Subsection [(119)] (120)(a):
             2827          (i) a pole;
             2828          (ii) software;


             2829          (iii) a supplementary power supply;
             2830          (iv) temperature or environmental equipment or machinery;
             2831          (v) test equipment;
             2832          (vi) a tower; or
             2833          (vii) equipment, machinery, or software that functions similarly to an item listed in
             2834      Subsections [(119)] (120)(b)(i) through (vi) as determined by the commission by rule made in
             2835      accordance with Subsection [(119)] (120)(c).
             2836          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2837      commission may by rule define what constitutes equipment, machinery, or software that
             2838      functions similarly to an item listed in Subsections [(119)] (120)(b)(i) through (vi).
             2839          [(120)] (121) "Telecommunications equipment, machinery, or software required for
             2840      911 service" means equipment, machinery, or software that is required to comply with 47
             2841      C.F.R. Sec. 20.18.
             2842          [(121)] (122) "Telecommunications maintenance or repair equipment, machinery, or
             2843      software" means equipment, machinery, or software purchased or leased primarily to maintain
             2844      or repair one or more of the following, regardless of whether the equipment, machinery, or
             2845      software is purchased or leased as a spare part or as an upgrade or modification to one or more
             2846      of the following:
             2847          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             2848          (b) telecommunications switching or routing equipment, machinery, or software; or
             2849          (c) telecommunications transmission equipment, machinery, or software.
             2850          [(122)] (123) (a) "Telecommunications service" means the electronic conveyance,
             2851      routing, or transmission of audio, data, video, voice, or any other information or signal to a
             2852      point, or among or between points.
             2853          (b) "Telecommunications service" includes:
             2854          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             2855      processing application is used to act:
             2856          (A) on the code, form, or protocol of the content;


             2857          (B) for the purpose of electronic conveyance, routing, or transmission; and
             2858          (C) regardless of whether the service:
             2859          (I) is referred to as voice over Internet protocol service; or
             2860          (II) is classified by the Federal Communications Commission as enhanced or value
             2861      added;
             2862          (ii) an 800 service;
             2863          (iii) a 900 service;
             2864          (iv) a fixed wireless service;
             2865          (v) a mobile wireless service;
             2866          (vi) a postpaid calling service;
             2867          (vii) a prepaid calling service;
             2868          (viii) a prepaid wireless calling service; or
             2869          (ix) a private communications service.
             2870          (c) "Telecommunications service" does not include:
             2871          (i) advertising, including directory advertising;
             2872          (ii) an ancillary service;
             2873          (iii) a billing and collection service provided to a third party;
             2874          (iv) a data processing and information service if:
             2875          (A) the data processing and information service allows data to be:
             2876          (I) (Aa) acquired;
             2877          (Bb) generated;
             2878          (Cc) processed;
             2879          (Dd) retrieved; or
             2880          (Ee) stored; and
             2881          (II) delivered by an electronic transmission to a purchaser; and
             2882          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             2883      or information;
             2884          (v) installation or maintenance of the following on a customer's premises:


             2885          (A) equipment; or
             2886          (B) wiring;
             2887          (vi) Internet access service;
             2888          (vii) a paging service;
             2889          (viii) a product transferred electronically, including:
             2890          (A) music;
             2891          (B) reading material;
             2892          (C) a ring tone;
             2893          (D) software; or
             2894          (E) video;
             2895          (ix) a radio and television audio and video programming service:
             2896          (A) regardless of the medium; and
             2897          (B) including:
             2898          (I) furnishing conveyance, routing, or transmission of a television audio and video
             2899      programming service by a programming service provider;
             2900          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             2901          (III) audio and video programming services delivered by a commercial mobile radio
             2902      service provider as defined in 47 C.F.R. Sec. 20.3;
             2903          (x) a value-added nonvoice data service; or
             2904          (xi) tangible personal property.
             2905          [(123)] (124) (a) "Telecommunications service provider" means a person that:
             2906          (i) owns, controls, operates, or manages a telecommunications service; and
             2907          (ii) engages in an activity described in Subsection [(123)] (124)(a)(i) for the shared use
             2908      with or resale to any person of the telecommunications service.
             2909          (b) A person described in Subsection [(123)] (124)(a) is a telecommunications service
             2910      provider whether or not the Public Service Commission of Utah regulates:
             2911          (i) that person; or
             2912          (ii) the telecommunications service that the person owns, controls, operates, or


             2913      manages.
             2914          [(124)] (125) (a) "Telecommunications switching or routing equipment, machinery, or
             2915      software" means an item listed in Subsection [(124)] (125)(b) if that item is purchased or
             2916      leased primarily for switching or routing:
             2917          (i) an ancillary service;
             2918          (ii) data communications;
             2919          (iii) voice communications; or
             2920          (iv) telecommunications service.
             2921          (b) The following apply to Subsection [(124)] (125)(a):
             2922          (i) a bridge;
             2923          (ii) a computer;
             2924          (iii) a cross connect;
             2925          (iv) a modem;
             2926          (v) a multiplexer;
             2927          (vi) plug in circuitry;
             2928          (vii) a router;
             2929          (viii) software;
             2930          (ix) a switch; or
             2931          (x) equipment, machinery, or software that functions similarly to an item listed in
             2932      Subsections [(124)] (125)(b)(i) through (ix) as determined by the commission by rule made in
             2933      accordance with Subsection [(124)] (125)(c).
             2934          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2935      commission may by rule define what constitutes equipment, machinery, or software that
             2936      functions similarly to an item listed in Subsections [(124)] (125)(b)(i) through (ix).
             2937          [(125)] (126) (a) "Telecommunications transmission equipment, machinery, or
             2938      software" means an item listed in Subsection [(125)] (126)(b) if that item is purchased or
             2939      leased primarily for sending, receiving, or transporting:
             2940          (i) an ancillary service;


             2941          (ii) data communications;
             2942          (iii) voice communications; or
             2943          (iv) telecommunications service.
             2944          (b) The following apply to Subsection [(125)] (126)(a):
             2945          (i) an amplifier;
             2946          (ii) a cable;
             2947          (iii) a closure;
             2948          (iv) a conduit;
             2949          (v) a controller;
             2950          (vi) a duplexer;
             2951          (vii) a filter;
             2952          (viii) an input device;
             2953          (ix) an input/output device;
             2954          (x) an insulator;
             2955          (xi) microwave machinery or equipment;
             2956          (xii) an oscillator;
             2957          (xiii) an output device;
             2958          (xiv) a pedestal;
             2959          (xv) a power converter;
             2960          (xvi) a power supply;
             2961          (xvii) a radio channel;
             2962          (xviii) a radio receiver;
             2963          (xix) a radio transmitter;
             2964          (xx) a repeater;
             2965          (xxi) software;
             2966          (xxii) a terminal;
             2967          (xxiii) a timing unit;
             2968          (xxiv) a transformer;


             2969          (xxv) a wire; or
             2970          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             2971      Subsections [(125)] (126)(b)(i) through (xxv) as determined by the commission by rule made in
             2972      accordance with Subsection [(125)] (126)(c).
             2973          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2974      commission may by rule define what constitutes equipment, machinery, or software that
             2975      functions similarly to an item listed in Subsections [(125)] (126)(b)(i) through (xxv).
             2976          [(126)] (127) (a) "Textbook for a higher education course" means a textbook or other
             2977      printed material that is required for a course:
             2978          (i) offered by an institution of higher education; and
             2979          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             2980          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             2981          [(127)] (128) "Tobacco" means:
             2982          (a) a cigarette;
             2983          (b) a cigar;
             2984          (c) chewing tobacco;
             2985          (d) pipe tobacco; or
             2986          (e) any other item that contains tobacco.
             2987          [(128)] (129) "Unassisted amusement device" means an amusement device, skill
             2988      device, or ride device that is started and stopped by the purchaser or renter of the right to use or
             2989      operate the amusement device, skill device, or ride device.
             2990          [(129)] (130) (a) "Use" means the exercise of any right or power over tangible personal
             2991      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             2992      incident to the ownership or the leasing of that tangible personal property, product transferred
             2993      electronically, or service.
             2994          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             2995      property, a product transferred electronically, or a service in the regular course of business and
             2996      held for resale.


             2997          [(130)] (131) "Value-added nonvoice data service" means a service:
             2998          (a) that otherwise meets the definition of a telecommunications service except that a
             2999      computer processing application is used to act primarily for a purpose other than conveyance,
             3000      routing, or transmission; and
             3001          (b) with respect to which a computer processing application is used to act on data or
             3002      information:
             3003          (i) code;
             3004          (ii) content;
             3005          (iii) form; or
             3006          (iv) protocol.
             3007          [(131)] (132) (a) Subject to Subsection [(131)] (132)(b), "vehicle" means the following
             3008      that are required to be titled, registered, or titled and registered:
             3009          (i) an aircraft as defined in Section 72-10-102 ;
             3010          (ii) a vehicle as defined in Section 41-1a-102 ;
             3011          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             3012          (iv) a vessel as defined in Section 41-1a-102 .
             3013          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             3014          (i) a vehicle described in Subsection [(131)] (132)(a); or
             3015          (ii) (A) a locomotive;
             3016          (B) a freight car;
             3017          (C) railroad work equipment; or
             3018          (D) other railroad rolling stock.
             3019          [(132)] (133) "Vehicle dealer" means a person engaged in the business of buying,
             3020      selling, or exchanging a vehicle as defined in Subsection [(131)] (132).
             3021          [(133)] (134) (a) "Vertical service" means an ancillary service that:
             3022          (i) is offered in connection with one or more telecommunications services; and
             3023          (ii) offers an advanced calling feature that allows a customer to:
             3024          (A) identify a caller; and


             3025          (B) manage multiple calls and call connections.
             3026          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             3027      conference bridging service.
             3028          [(134)] (135) (a) "Voice mail service" means an ancillary service that enables a
             3029      customer to receive, send, or store a recorded message.
             3030          (b) "Voice mail service" does not include a vertical service that a customer is required
             3031      to have in order to utilize a voice mail service.
             3032          [(135)] (136) (a) Except as provided in Subsection [(135)] (136)(b), "waste energy
             3033      facility" means a facility that generates electricity:
             3034          (i) using as the primary source of energy waste materials that would be placed in a
             3035      landfill or refuse pit if it were not used to generate electricity, including:
             3036          (A) tires;
             3037          (B) waste coal;
             3038          (C) oil shale; or
             3039          (D) municipal solid waste; and
             3040          (ii) in amounts greater than actually required for the operation of the facility.
             3041          (b) "Waste energy facility" does not include a facility that incinerates:
             3042          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
             3043          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             3044          [(136)] (137) "Watercraft" means a vessel as defined in Section 73-18-2 .
             3045          [(137)] (138) "Wind energy" means wind used as the sole source of energy to produce
             3046      electricity.
             3047          [(138)] (139) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
             3048      geographic location by the United States Postal Service.
             3049          Section 3. Section 59-12-104 is amended to read:
             3050           59-12-104. Exemptions.
             3051          The following sales and uses are exempt from the taxes imposed by this chapter:
             3052          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax


             3053      under Chapter 13, Motor and Special Fuel Tax Act;
             3054          (2) subject to Section 59-12-104.6 , sales to the state, its institutions, and its political
             3055      subdivisions; however, this exemption does not apply to sales of:
             3056          (a) construction materials except:
             3057          (i) construction materials purchased by or on behalf of institutions of the public
             3058      education system as defined in Utah Constitution Article X, Section 2, provided the
             3059      construction materials are clearly identified and segregated and installed or converted to real
             3060      property which is owned by institutions of the public education system; and
             3061          (ii) construction materials purchased by the state, its institutions, or its political
             3062      subdivisions which are installed or converted to real property by employees of the state, its
             3063      institutions, or its political subdivisions; or
             3064          (b) tangible personal property in connection with the construction, operation,
             3065      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             3066      providing additional project capacity, as defined in Section 11-13-103 ;
             3067          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             3068          (i) the proceeds of each sale do not exceed $1; and
             3069          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             3070      the cost of the item described in Subsection (3)(b) as goods consumed; and
             3071          (b) Subsection (3)(a) applies to:
             3072          (i) food and food ingredients; or
             3073          (ii) prepared food;
             3074          (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
             3075          (i) alcoholic beverages;
             3076          (ii) food and food ingredients; or
             3077          (iii) prepared food;
             3078          (b) sales of tangible personal property or a product transferred electronically:
             3079          (i) to a passenger;
             3080          (ii) by a commercial airline carrier; and


             3081          (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
             3082          (c) services related to Subsection (4)(a) or (b);
             3083          (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
             3084      and equipment:
             3085          (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
             3086      North American Industry Classification System of the federal Executive Office of the
             3087      President, Office of Management and Budget; and
             3088          (II) for:
             3089          (Aa) installation in an aircraft, including services relating to the installation of parts or
             3090      equipment in the aircraft;
             3091          (Bb) renovation of an aircraft; or
             3092          (Cc) repair of an aircraft; or
             3093          (B) for installation in an aircraft operated by a common carrier in interstate or foreign
             3094      commerce; or
             3095          (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
             3096      aircraft operated by a common carrier in interstate or foreign commerce; and
             3097          (b) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             3098      a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
             3099      refund:
             3100          (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
             3101          (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
             3102          (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
             3103      the sale prior to filing for the refund;
             3104          (iv) for sales and use taxes paid under this chapter on the sale;
             3105          (v) in accordance with Section 59-1-1410 ; and
             3106          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             3107      the person files for the refund on or before September 30, 2011;
             3108          (6) sales of commercials, motion picture films, prerecorded audio program tapes or


             3109      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             3110      exhibitor, distributor, or commercial television or radio broadcaster;
             3111          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             3112      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             3113      washing of tangible personal property;
             3114          (b) if a seller that sells at the same business location assisted cleaning or washing of
             3115      tangible personal property and cleaning or washing of tangible personal property that is not
             3116      assisted cleaning or washing of tangible personal property, the exemption described in
             3117      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             3118      or washing of the tangible personal property; and
             3119          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
             3120      Utah Administrative Rulemaking Act, the commission may make rules:
             3121          (i) governing the circumstances under which sales are at the same business location;
             3122      and
             3123          (ii) establishing the procedures and requirements for a seller to separately account for
             3124      sales of assisted cleaning or washing of tangible personal property;
             3125          (8) sales made to or by religious or charitable institutions in the conduct of their regular
             3126      religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
             3127      fulfilled;
             3128          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
             3129      this state if the vehicle is:
             3130          (a) not registered in this state; and
             3131          (b) (i) not used in this state; or
             3132          (ii) used in this state:
             3133          (A) if the vehicle is not used to conduct business, for a time period that does not
             3134      exceed the longer of:
             3135          (I) 30 days in any calendar year; or
             3136          (II) the time period necessary to transport the vehicle to the borders of this state; or


             3137          (B) if the vehicle is used to conduct business, for the time period necessary to transport
             3138      the vehicle to the borders of this state;
             3139          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             3140          (i) the item is intended for human use; and
             3141          (ii) (A) a prescription was issued for the item; or
             3142          (B) the item was purchased by a hospital or other medical facility; and
             3143          (b) (i) Subsection (10)(a) applies to:
             3144          (A) a drug;
             3145          (B) a syringe; or
             3146          (C) a stoma supply; and
             3147          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3148      commission may by rule define the terms:
             3149          (A) "syringe"; or
             3150          (B) "stoma supply";
             3151          (11) sales or use of property, materials, or services used in the construction of or
             3152      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             3153          (12) (a) sales of an item described in Subsection (12)(c) served by:
             3154          (i) the following if the item described in Subsection (12)(c) is not available to the
             3155      general public:
             3156          (A) a church; or
             3157          (B) a charitable institution;
             3158          (ii) an institution of higher education if:
             3159          (A) the item described in Subsection (12)(c) is not available to the general public; or
             3160          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             3161      offered by the institution of higher education; or
             3162          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             3163          (i) a medical facility; or
             3164          (ii) a nursing facility; and


             3165          (c) Subsections (12)(a) and (b) apply to:
             3166          (i) food and food ingredients;
             3167          (ii) prepared food; or
             3168          (iii) alcoholic beverages;
             3169          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
             3170      or a product transferred electronically by a person:
             3171          (i) regardless of the number of transactions involving the sale of that tangible personal
             3172      property or product transferred electronically by that person; and
             3173          (ii) not regularly engaged in the business of selling that type of tangible personal
             3174      property or product transferred electronic