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S.B. 84

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             22          59-12-102 (Superseded 07/01/14), as last amended by Laws of Utah 2012, Chapters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


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 Section 59-12-102 (Superseded 07/01/14) is amended to read:
             30           59-12-102 (Superseded 07/01/14).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


             59          (b) "Admission or user fees" does not include annual membership dues to private
             60      organizations.
             61          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             62      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             63      Agreement after November 12, 2002.
             64          (5) "Agreement combined tax rate" means the sum of the tax rates:
             65          (a) listed under Subsection (6); and
             66          (b) that are imposed within a local taxing jurisdiction.
             67          (6) "Agreement sales and use tax" means a tax imposed under:
             68          (a) Subsection 59-12-103 (2)(a)(i)(A);
             69          (b) Subsection 59-12-103 (2)(b)(i);
             70          (c) Subsection 59-12-103 (2)(c)(i);
             71          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             72          (e) Section 59-12-204 ;
             73          (f) Section 59-12-401 ;
             74          (g) Section 59-12-402 ;
             75          (h) Section 59-12-703 ;
             76          (i) Section 59-12-802 ;
             77          (j) Section 59-12-804 ;
             78          (k) Section 59-12-1102 ;
             79          (l) Section 59-12-1302 ;
             80          (m) Section 59-12-1402 ;
             81          (n) Section 59-12-1802 ;
             82          (o) Section 59-12-2003 ;
             83          (p) Section 59-12-2103 ;
             84          (q) Section 59-12-2213 ;
             85          (r) Section 59-12-2214 ;
             86          (s) Section 59-12-2215 ;
             87          (t) Section 59-12-2216 ;
             88          (u) Section 59-12-2217 ; or
             89          (v) Section 59-12-2218 .


             90          (7) "Aircraft" is as defined in Section 72-10-102 .
             91          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             92          (a) except for:
             93          (i) an airline as defined in Section 59-2-102 ; or
             94          (ii) an affiliated group, as defined in Section 59-7-101 , except that "affiliated group"
             95      includes a corporation that is qualified to do business but is not otherwise doing business in the
             96      state, of an airline; and
             97          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             98      whether the business entity performs the following in this state:
             99          (i) check, diagnose, overhaul, and repair:
             100          (A) an onboard system of a fixed wing turbine powered aircraft; and
             101          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             102          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             103      engine;
             104          (iii) perform at least the following maintenance on a fixed wing turbine powered
             105      aircraft:
             106          (A) an inspection;
             107          (B) a repair, including a structural repair or modification;
             108          (C) changing landing gear; and
             109          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             110          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             111      completely apply new paint to the fixed wing turbine powered aircraft; and
             112          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             113      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             114      authority that certifies the fixed wing turbine powered aircraft.
             115          (9) "Alcoholic beverage" means a beverage that:
             116          (a) is suitable for human consumption; and
             117          (b) contains .5% or more alcohol by volume.
             118          (10) "Alternative energy" means:
             119          (a) biomass energy;
             120          (b) geothermal energy;


             121          (c) hydroelectric energy;
             122          (d) solar energy;
             123          (e) wind energy; or
             124          (f) energy that is derived from:
             125          (i) coal-to-liquids;
             126          (ii) nuclear fuel;
             127          (iii) oil-impregnated diatomaceous earth;
             128          (iv) oil sands;
             129          (v) oil shale; or
             130          (vi) petroleum coke.
             131          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
             132      facility" means a facility that:
             133          (i) uses alternative energy to produce electricity; and
             134          (ii) has a production capacity of 2 megawatts or greater.
             135          (b) A facility is an alternative energy electricity production facility regardless of
             136      whether the facility is:
             137          (i) connected to an electric grid; or
             138          (ii) located on the premises of an electricity consumer.
             139          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
             140      provision of telecommunications service.
             141          (b) "Ancillary service" includes:
             142          (i) a conference bridging service;
             143          (ii) a detailed communications billing service;
             144          (iii) directory assistance;
             145          (iv) a vertical service; or
             146          (v) a voice mail service.
             147          (13) "Area agency on aging" is as defined in Section 62A-3-101 .
             148          (14) "Assisted amusement device" means an amusement device, skill device, or ride
             149      device that is started and stopped by an individual:
             150          (a) who is not the purchaser or renter of the right to use or operate the amusement
             151      device, skill device, or ride device; and


             152          (b) at the direction of the seller of the right to use the amusement device, skill device,
             153      or ride device.
             154          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
             155      washing of tangible personal property if the cleaning or washing labor is primarily performed
             156      by an individual:
             157          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             158      property; and
             159          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             160      property.
             161          (16) "Authorized carrier" means:
             162          (a) in the case of vehicles operated over public highways, the holder of credentials
             163      indicating that the vehicle is or will be operated pursuant to both the International Registration
             164      Plan and the International Fuel Tax Agreement;
             165          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             166      certificate or air carrier's operating certificate; or
             167          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             168      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             169          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
             170      following that is used as the primary source of energy to produce fuel or electricity:
             171          (i) material from a plant or tree; or
             172          (ii) other organic matter that is available on a renewable basis, including:
             173          (A) slash and brush from forests and woodlands;
             174          (B) animal waste;
             175          (C) methane produced:
             176          (I) at landfills; or
             177          (II) as a byproduct of the treatment of wastewater residuals;
             178          (D) aquatic plants; and
             179          (E) agricultural products.
             180          (b) "Biomass energy" does not include:
             181          (i) black liquor;
             182          (ii) treated woods; or


             183          (iii) biomass from municipal solid waste other than methane produced:
             184          (A) at landfills; or
             185          (B) as a byproduct of the treatment of wastewater residuals.
             186          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             187      property, products, or services if the tangible personal property, products, or services are:
             188          (i) distinct and identifiable; and
             189          (ii) sold for one nonitemized price.
             190          (b) "Bundled transaction" does not include:
             191          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             192      the basis of the selection by the purchaser of the items of tangible personal property included in
             193      the transaction;
             194          (ii) the sale of real property;
             195          (iii) the sale of services to real property;
             196          (iv) the retail sale of tangible personal property and a service if:
             197          (A) the tangible personal property:
             198          (I) is essential to the use of the service; and
             199          (II) is provided exclusively in connection with the service; and
             200          (B) the service is the true object of the transaction;
             201          (v) the retail sale of two services if:
             202          (A) one service is provided that is essential to the use or receipt of a second service;
             203          (B) the first service is provided exclusively in connection with the second service; and
             204          (C) the second service is the true object of the transaction;
             205          (vi) a transaction that includes tangible personal property or a product subject to
             206      taxation under this chapter and tangible personal property or a product that is not subject to
             207      taxation under this chapter if the:
             208          (A) seller's purchase price of the tangible personal property or product subject to
             209      taxation under this chapter is de minimis; or
             210          (B) seller's sales price of the tangible personal property or product subject to taxation
             211      under this chapter is de minimis; and
             212          (vii) the retail sale of tangible personal property that is not subject to taxation under
             213      this chapter and tangible personal property that is subject to taxation under this chapter if:


             214          (A) that retail sale includes:
             215          (I) food and food ingredients;
             216          (II) a drug;
             217          (III) durable medical equipment;
             218          (IV) mobility enhancing equipment;
             219          (V) an over-the-counter drug;
             220          (VI) a prosthetic device; or
             221          (VII) a medical supply; and
             222          (B) subject to Subsection (18)(f):
             223          (I) the seller's purchase price of the tangible personal property subject to taxation under
             224      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             225          (II) the seller's sales price of the tangible personal property subject to taxation under
             226      this chapter is 50% or less of the seller's total sales price of that retail sale.
             227          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
             228      service that is distinct and identifiable does not include:
             229          (A) packaging that:
             230          (I) accompanies the sale of the tangible personal property, product, or service; and
             231          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             232      service;
             233          (B) tangible personal property, a product, or a service provided free of charge with the
             234      purchase of another item of tangible personal property, a product, or a service; or
             235          (C) an item of tangible personal property, a product, or a service included in the
             236      definition of "purchase price."
             237          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
             238      product, or a service is provided free of charge with the purchase of another item of tangible
             239      personal property, a product, or a service if the sales price of the purchased item of tangible
             240      personal property, product, or service does not vary depending on the inclusion of the tangible
             241      personal property, product, or service provided free of charge.
             242          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
             243      does not include a price that is separately identified by tangible personal property, product, or
             244      service on the following, regardless of whether the following is in paper format or electronic


             245      format:
             246          (A) a binding sales document; or
             247          (B) another supporting sales-related document that is available to a purchaser.
             248          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
             249      supporting sales-related document that is available to a purchaser includes:
             250          (A) a bill of sale;
             251          (B) a contract;
             252          (C) an invoice;
             253          (D) a lease agreement;
             254          (E) a periodic notice of rates and services;
             255          (F) a price list;
             256          (G) a rate card;
             257          (H) a receipt; or
             258          (I) a service agreement.
             259          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
             260      property or a product subject to taxation under this chapter is de minimis if:
             261          (A) the seller's purchase price of the tangible personal property or product is 10% or
             262      less of the seller's total purchase price of the bundled transaction; or
             263          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             264      the seller's total sales price of the bundled transaction.
             265          (ii) For purposes of Subsection (18)(b)(vi), a seller:
             266          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             267      purchase price or sales price of the tangible personal property or product subject to taxation
             268      under this chapter is de minimis; and
             269          (B) may not use a combination of the seller's purchase price and the seller's sales price
             270      to determine if the purchase price or sales price of the tangible personal property or product
             271      subject to taxation under this chapter is de minimis.
             272          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
             273      contract to determine if the sales price of tangible personal property or a product is de minimis.
             274          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
             275      the seller's purchase price and the seller's sales price to determine if tangible personal property


             276      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             277      price of that retail sale.
             278          (19) "Certified automated system" means software certified by the governing board of
             279      the agreement that:
             280          (a) calculates the agreement sales and use tax imposed within a local taxing
             281      jurisdiction:
             282          (i) on a transaction; and
             283          (ii) in the states that are members of the agreement;
             284          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             285      member of the agreement; and
             286          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
             287          (20) "Certified service provider" means an agent certified:
             288          (a) by the governing board of the agreement; and
             289          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             290      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             291      own purchases.
             292          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
             293      suitable for general use.
             294          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             295      commission shall make rules:
             296          (i) listing the items that constitute "clothing"; and
             297          (ii) that are consistent with the list of items that constitute "clothing" under the
             298      agreement.
             299          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             300          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             301      fuels that does not constitute industrial use under Subsection (51) or residential use under
             302      Subsection (101).
             303          (24) (a) "Common carrier" means a person engaged in or transacting the business of
             304      transporting passengers, freight, merchandise, or other property for hire within this state.
             305          (b) (i) "Common carrier" does not include a person who, at the time the person is
             306      traveling to or from that person's place of employment, transports a passenger to or from the


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


             338          (31) "Delivered electronically" means delivered to a purchaser by means other than
             339      tangible storage media.
             340          (32) (a) "Delivery charge" means a charge:
             341          (i) by a seller of:
             342          (A) tangible personal property;
             343          (B) a product transferred electronically; or
             344          (C) services; and
             345          (ii) for preparation and delivery of the tangible personal property, product transferred
             346      electronically, or services described in Subsection (32)(a)(i) to a location designated by the
             347      purchaser.
             348          (b) "Delivery charge" includes a charge for the following:
             349          (i) transportation;
             350          (ii) shipping;
             351          (iii) postage;
             352          (iv) handling;
             353          (v) crating; or
             354          (vi) packing.
             355          (33) "Detailed telecommunications billing service" means an ancillary service of
             356      separately stating information pertaining to individual calls on a customer's billing statement.
             357          (34) "Dietary supplement" means a product, other than tobacco, that:
             358          (a) is intended to supplement the diet;
             359          (b) contains one or more of the following dietary ingredients:
             360          (i) a vitamin;
             361          (ii) a mineral;
             362          (iii) an herb or other botanical;
             363          (iv) an amino acid;
             364          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             365      dietary intake; or
             366          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             367      described in Subsections (34)(b)(i) through (v);
             368          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:


             369          (A) tablet form;
             370          (B) capsule form;
             371          (C) powder form;
             372          (D) softgel form;
             373          (E) gelcap form; or
             374          (F) liquid form; or
             375          (ii) [notwithstanding Subsection (34)(c)(i),] if the product is not intended for ingestion
             376      in a form described in Subsections (34)(c)(i)(A) through (F), is not represented:
             377          (A) as conventional food; and
             378          (B) for use as a sole item of:
             379          (I) a meal; or
             380          (II) the diet; and
             381          (d) is required to be labeled as a dietary supplement:
             382          (i) identifiable by the "Supplemental Facts" box found on the label; and
             383          (ii) as required by 21 C.F.R. Sec. 101.36.
             384          (35) (a) "Direct mail" means printed material delivered or distributed by United States
             385      mail or other delivery service:
             386          (i) to:
             387          (A) a mass audience; or
             388          (B) addressees on a mailing list provided:
             389          (I) by a purchaser of the mailing list; or
             390          (II) at the discretion of the purchaser of the mailing list; and
             391          (ii) if the cost of the printed material is not billed directly to the recipients.
             392          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             393      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             394          (c) "Direct mail" does not include multiple items of printed material delivered to a
             395      single address.
             396          (36) "Directory assistance" means an ancillary service of providing:
             397          (a) address information; or
             398          (b) telephone number information.
             399          (37) (a) "Disposable home medical equipment or supplies" means medical equipment


             400      or supplies that:
             401          (i) cannot withstand repeated use; and
             402          (ii) are purchased by, for, or on behalf of a person other than:
             403          (A) a health care facility as defined in Section 26-21-2 ;
             404          (B) a health care provider as defined in Section 78B-3-403 ;
             405          (C) an office of a health care provider described in Subsection (37)(a)(ii)(B); or
             406          (D) a person similar to a person described in Subsections (37)(a)(ii)(A) through (C).
             407          (b) "Disposable home medical equipment or supplies" does not include:
             408          (i) a drug;
             409          (ii) durable medical equipment;
             410          (iii) a hearing aid;
             411          (iv) a hearing aid accessory;
             412          (v) mobility enhancing equipment; or
             413          (vi) tangible personal property used to correct impaired vision, including:
             414          (A) eyeglasses; or
             415          (B) contact lenses.
             416          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             417      commission may by rule define what constitutes medical equipment or supplies.
             418          (38) (a) "Drug" means a compound, substance, or preparation, or a component of a
             419      compound, substance, or preparation that is:
             420          (i) recognized in:
             421          (A) the official United States Pharmacopoeia;
             422          (B) the official Homeopathic Pharmacopoeia of the United States;
             423          (C) the official National Formulary; or
             424          (D) a supplement to a publication listed in Subsections (38)(a)(i)(A) through (C);
             425          (ii) intended for use in the:
             426          (A) diagnosis of disease;
             427          (B) cure of disease;
             428          (C) mitigation of disease;
             429          (D) treatment of disease; or
             430          (E) prevention of disease; or


             431          (iii) intended to affect:
             432          (A) the structure of the body; or
             433          (B) any function of the body.
             434          (b) "Drug" does not include:
             435          (i) food and food ingredients;
             436          (ii) a dietary supplement;
             437          (iii) an alcoholic beverage; or
             438          (iv) a prosthetic device.
             439          (39) (a) Except as provided in Subsection (39)(c), "durable medical equipment" means
             440      equipment that:
             441          (i) can withstand repeated use;
             442          (ii) is primarily and customarily used to serve a medical purpose;
             443          (iii) generally is not useful to a person in the absence of illness or injury; and
             444          (iv) is not worn in or on the body.
             445          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             446      equipment described in Subsection (39)(a).
             447          (c) [Notwithstanding Subsection (39)(a), "durable] "Durable medical equipment" does
             448      not include mobility enhancing equipment.
             449          (40) "Electronic" means:
             450          (a) relating to technology; and
             451          (b) having:
             452          (i) electrical capabilities;
             453          (ii) digital capabilities;
             454          (iii) magnetic capabilities;
             455          (iv) wireless capabilities;
             456          (v) optical capabilities;
             457          (vi) electromagnetic capabilities; or
             458          (vii) capabilities similar to Subsections (40)(b)(i) through (vi).
             459          (41) "Employee" is as defined in Section 59-10-401 .
             460          (42) "Fixed guideway" means a public transit facility that uses and occupies:
             461          (a) rail for the use of public transit; or


             462          (b) a separate right-of-way for the use of public transit.
             463          (43) "Fixed wing turbine powered aircraft" means an aircraft that:
             464          (a) is powered by turbine engines;
             465          (b) operates on jet fuel; and
             466          (c) has wings that are permanently attached to the fuselage of the aircraft.
             467          (44) "Fixed wireless service" means a telecommunications service that provides radio
             468      communication between fixed points.
             469          (45) (a) "Food and food ingredients" means substances:
             470          (i) regardless of whether the substances are in:
             471          (A) liquid form;
             472          (B) concentrated form;
             473          (C) solid form;
             474          (D) frozen form;
             475          (E) dried form; or
             476          (F) dehydrated form; and
             477          (ii) that are:
             478          (A) sold for:
             479          (I) ingestion by humans; or
             480          (II) chewing by humans; and
             481          (B) consumed for the substance's:
             482          (I) taste; or
             483          (II) nutritional value.
             484          (b) "Food and food ingredients" includes an item described in Subsection (86)(b)(iii).
             485          (c) "Food and food ingredients" does not include:
             486          (i) an alcoholic beverage;
             487          (ii) tobacco; or
             488          (iii) prepared food.
             489          (46) (a) "Fundraising sales" means sales:
             490          (i) (A) made by a school; or
             491          (B) made by a school student;
             492          (ii) that are for the purpose of raising funds for the school to purchase equipment,


             493      materials, or provide transportation; and
             494          (iii) that are part of an officially sanctioned school activity.
             495          (b) For purposes of Subsection (46)(a)(iii), "officially sanctioned school activity"
             496      means a school activity:
             497          (i) that is conducted in accordance with a formal policy adopted by the school or school
             498      district governing the authorization and supervision of fundraising activities;
             499          (ii) that does not directly or indirectly compensate an individual teacher or other
             500      educational personnel by direct payment, commissions, or payment in kind; and
             501          (iii) the net or gross revenues from which are deposited in a dedicated account
             502      controlled by the school or school district.
             503          (47) "Geothermal energy" means energy contained in heat that continuously flows
             504      outward from the earth that is used as the sole source of energy to produce electricity.
             505          (48) "Governing board of the agreement" means the governing board of the agreement
             506      that is:
             507          (a) authorized to administer the agreement; and
             508          (b) established in accordance with the agreement.
             509          (49) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             510          (i) the executive branch of the state, including all departments, institutions, boards,
             511      divisions, bureaus, offices, commissions, and committees;
             512          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             513      Office of the Court Administrator, and similar administrative units in the judicial branch;
             514          (iii) the legislative branch of the state, including the House of Representatives, the
             515      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             516      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             517      Analyst;
             518          (iv) the National Guard;
             519          (v) an independent entity as defined in Section 63E-1-102 ; or
             520          (vi) a political subdivision as defined in Section 17B-1-102 .
             521          (b) "Governmental entity" does not include the state systems of public and higher
             522      education, including:
             523          (i) a college campus of the Utah College of Applied Technology;


             524          (ii) a school;
             525          (iii) the State Board of Education;
             526          (iv) the State Board of Regents; or
             527          (v) an institution of higher education.
             528          (50) "Hydroelectric energy" means water used as the sole source of energy to produce
             529      electricity.
             530          (51) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             531      other fuels:
             532          (a) in mining or extraction of minerals;
             533          (b) in agricultural operations to produce an agricultural product up to the time of
             534      harvest or placing the agricultural product into a storage facility, including:
             535          (i) commercial greenhouses;
             536          (ii) irrigation pumps;
             537          (iii) farm machinery;
             538          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             539      registered under Title 41, Chapter 1a, Part 2, Registration; and
             540          (v) other farming activities;
             541          (c) in manufacturing tangible personal property at an establishment described in SIC
             542      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             543      Executive Office of the President, Office of Management and Budget;
             544          (d) by a scrap recycler if:
             545          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             546      one or more of the following items into prepared grades of processed materials for use in new
             547      products:
             548          (A) iron;
             549          (B) steel;
             550          (C) nonferrous metal;
             551          (D) paper;
             552          (E) glass;
             553          (F) plastic;
             554          (G) textile; or


             555          (H) rubber; and
             556          (ii) the new products under Subsection (51)(d)(i) would otherwise be made with
             557      nonrecycled materials; or
             558          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             559      cogeneration facility as defined in Section 54-2-1 .
             560          (52) (a) Except as provided in Subsection (52)(b), "installation charge" means a charge
             561      for installing:
             562          (i) tangible personal property; or
             563          (ii) a product transferred electronically.
             564          (b) "Installation charge" does not include a charge for:
             565          (i) repairs or renovations of:
             566          (A) tangible personal property; or
             567          (B) a product transferred electronically; or
             568          (ii) attaching tangible personal property or a product transferred electronically:
             569          (A) to other tangible personal property; and
             570          (B) as part of a manufacturing or fabrication process.
             571          (53) "Institution of higher education" means an institution of higher education listed in
             572      Section 53B-2-101 .
             573          (54) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             574      personal property or a product transferred electronically for:
             575          (i) (A) a fixed term; or
             576          (B) an indeterminate term; and
             577          (ii) consideration.
             578          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             579      amount of consideration may be increased or decreased by reference to the amount realized
             580      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             581      Code.
             582          (c) "Lease" or "rental" does not include:
             583          (i) a transfer of possession or control of property under a security agreement or
             584      deferred payment plan that requires the transfer of title upon completion of the required
             585      payments;


             586          (ii) a transfer of possession or control of property under an agreement that requires the
             587      transfer of title:
             588          (A) upon completion of required payments; and
             589          (B) if the payment of an option price does not exceed the greater of:
             590          (I) $100; or
             591          (II) 1% of the total required payments; or
             592          (iii) providing tangible personal property along with an operator for a fixed period of
             593      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             594      designed.
             595          (d) For purposes of Subsection (54)(c)(iii), an operator is necessary for equipment to
             596      perform as designed if the operator's duties exceed the:
             597          (i) set-up of tangible personal property;
             598          (ii) maintenance of tangible personal property; or
             599          (iii) inspection of tangible personal property.
             600          (55) "Life science establishment" means an establishment in this state that is classified
             601      under the following NAICS codes of the 2007 North American Industry Classification System
             602      of the federal Executive Office of the President, Office of Management and Budget:
             603          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
             604          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
             605      Manufacturing; or
             606          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
             607          (56) "Life science research and development facility" means a facility owned, leased,
             608      or rented by a life science establishment if research and development is performed in 51% or
             609      more of the total area of the facility.
             610          (57) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             611      if the tangible storage media is not physically transferred to the purchaser.
             612          (58) "Local taxing jurisdiction" means a:
             613          (a) county that is authorized to impose an agreement sales and use tax;
             614          (b) city that is authorized to impose an agreement sales and use tax; or
             615          (c) town that is authorized to impose an agreement sales and use tax.
             616          (59) "Manufactured home" is as defined in Section 15A-1-302 .


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


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


             679          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             680      vehicle manufacturer;
             681          (iii) durable medical equipment; or
             682          (iv) a prosthetic device.
             683          (66) "Model 1 seller" means a seller registered under the agreement that has selected a
             684      certified service provider as the seller's agent to perform all of the seller's sales and use tax
             685      functions for agreement sales and use taxes other than the seller's obligation under Section
             686      59-12-124 to remit a tax on the seller's own purchases.
             687          (67) "Model 2 seller" means a seller registered under the agreement that:
             688          (a) except as provided in Subsection (67)(b), has selected a certified automated system
             689      to perform the seller's sales tax functions for agreement sales and use taxes; and
             690          (b) [notwithstanding Subsection (67)(a),] retains responsibility for remitting all of the
             691      sales tax:
             692          (i) collected by the seller; and
             693          (ii) to the appropriate local taxing jurisdiction.
             694          (68) (a) Subject to Subsection (68)(b), "model 3 seller" means a seller registered under
             695      the agreement that has:
             696          (i) sales in at least five states that are members of the agreement;
             697          (ii) total annual sales revenues of at least $500,000,000;
             698          (iii) a proprietary system that calculates the amount of tax:
             699          (A) for an agreement sales and use tax; and
             700          (B) due to each local taxing jurisdiction; and
             701          (iv) entered into a performance agreement with the governing board of the agreement.
             702          (b) For purposes of Subsection (68)(a), "model 3 seller" includes an affiliated group of
             703      sellers using the same proprietary system.
             704          (69) "Model 4 seller" means a seller that is registered under the agreement and is not a
             705      model 1 seller, model 2 seller, or model 3 seller.
             706          (70) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             707          (71) "Motor vehicle" is as defined in Section 41-1a-102 .
             708          (72) "Oil sands" means impregnated bituminous sands that:
             709          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with


             710      other hydrocarbons, or otherwise treated;
             711          (b) yield mixtures of liquid hydrocarbon; and
             712          (c) require further processing other than mechanical blending before becoming finished
             713      petroleum products.
             714          (73) "Oil shale" means a group of fine black to dark brown shales containing kerogen
             715      material that yields petroleum upon heating and distillation.
             716          (74) "Optional computer software maintenance contract" means a computer software
             717      maintenance contract that a customer is not obligated to purchase as a condition to the retail
             718      sale of computer software.
             719          (75) (a) "Other fuels" means products that burn independently to produce heat or
             720      energy.
             721          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             722      personal property.
             723          (76) (a) "Paging service" means a telecommunications service that provides
             724      transmission of a coded radio signal for the purpose of activating a specific pager.
             725          (b) For purposes of Subsection (76)(a), the transmission of a coded radio signal
             726      includes a transmission by message or sound.
             727          (77) "Pawnbroker" is as defined in Section 13-32a-102 .
             728          (78) "Pawn transaction" is as defined in Section 13-32a-102 .
             729          (79) (a) "Permanently attached to real property" means that for tangible personal
             730      property attached to real property:
             731          (i) the attachment of the tangible personal property to the real property:
             732          (A) is essential to the use of the tangible personal property; and
             733          (B) suggests that the tangible personal property will remain attached to the real
             734      property in the same place over the useful life of the tangible personal property; or
             735          (ii) if the tangible personal property is detached from the real property, the detachment
             736      would:
             737          (A) cause substantial damage to the tangible personal property; or
             738          (B) require substantial alteration or repair of the real property to which the tangible
             739      personal property is attached.
             740          (b) "Permanently attached to real property" includes:


             741          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             742          (A) essential to the operation of the tangible personal property; and
             743          (B) attached only to facilitate the operation of the tangible personal property;
             744          (ii) a temporary detachment of tangible personal property from real property for a
             745      repair or renovation if the repair or renovation is performed where the tangible personal
             746      property and real property are located; or
             747          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             748      Subsection (79)(c)(iii) or (iv).
             749          (c) "Permanently attached to real property" does not include:
             750          (i) the attachment of portable or movable tangible personal property to real property if
             751      that portable or movable tangible personal property is attached to real property only for:
             752          (A) convenience;
             753          (B) stability; or
             754          (C) for an obvious temporary purpose;
             755          (ii) the detachment of tangible personal property from real property except for the
             756      detachment described in Subsection (79)(b)(ii);
             757          (iii) an attachment of the following tangible personal property to real property if the
             758      attachment to real property is only through a line that supplies water, electricity, gas,
             759      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             760      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             761          (A) a computer;
             762          (B) a telephone;
             763          (C) a television; or
             764          (D) tangible personal property similar to Subsections (79)(c)(iii)(A) through (C) as
             765      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             766      Administrative Rulemaking Act; or
             767          (iv) an item listed in Subsection [(117)] (119)(c).
             768          (80) "Person" includes any individual, firm, partnership, joint venture, association,
             769      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             770      municipality, district, or other local governmental entity of the state, or any group or
             771      combination acting as a unit.


             772          (81) "Place of primary use":
             773          (a) for telecommunications service other than mobile telecommunications service,
             774      means the street address representative of where the customer's use of the telecommunications
             775      service primarily occurs, which shall be:
             776          (i) the residential street address of the customer; or
             777          (ii) the primary business street address of the customer; or
             778          (b) for mobile telecommunications service, is as defined in the Mobile
             779      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             780          (82) (a) "Postpaid calling service" means a telecommunications service a person
             781      obtains by making a payment on a call-by-call basis:
             782          (i) through the use of a:
             783          (A) bank card;
             784          (B) credit card;
             785          (C) debit card; or
             786          (D) travel card; or
             787          (ii) by a charge made to a telephone number that is not associated with the origination
             788      or termination of the telecommunications service.
             789          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             790      service, that would be a prepaid wireless calling service if the service were exclusively a
             791      telecommunications service.
             792          (83) "Postproduction" means an activity related to the finishing or duplication of a
             793      medium described in Subsection 59-12-104 (54)(a).
             794          (84) "Prepaid calling service" means a telecommunications service:
             795          (a) that allows a purchaser access to telecommunications service that is exclusively
             796      telecommunications service;
             797          (b) that:
             798          (i) is paid for in advance; and
             799          (ii) enables the origination of a call using an:
             800          (A) access number; or
             801          (B) authorization code;
             802          (c) that is dialed:


             803          (i) manually; or
             804          (ii) electronically; and
             805          (d) sold in predetermined units or dollars that decline:
             806          (i) by a known amount; and
             807          (ii) with use.
             808          (85) "Prepaid wireless calling service" means a telecommunications service:
             809          (a) that provides the right to utilize:
             810          (i) mobile wireless service; and
             811          (ii) other service that is not a telecommunications service, including:
             812          (A) the download of a product transferred electronically;
             813          (B) a content service; or
             814          (C) an ancillary service;
             815          (b) that:
             816          (i) is paid for in advance; and
             817          (ii) enables the origination of a call using an:
             818          (A) access number; or
             819          (B) authorization code;
             820          (c) that is dialed:
             821          (i) manually; or
             822          (ii) electronically; and
             823          (d) sold in predetermined units or dollars that decline:
             824          (i) by a known amount; and
             825          (ii) with use.
             826          (86) (a) "Prepared food" means:
             827          (i) food:
             828          (A) sold in a heated state; or
             829          (B) heated by a seller;
             830          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             831      item; or
             832          (iii) except as provided in Subsection (86)(c), food sold with an eating utensil provided
             833      by the seller, including a:


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


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


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


             927          (iv) another associated service that is provided in connection with the use of one or
             928      more communications channels as defined in Section 59-12-215 .
             929          (90) (a) Except as provided in Subsection (90)(b), "product transferred electronically"
             930      means a product transferred electronically that would be subject to a tax under this chapter if
             931      that product was transferred in a manner other than electronically.
             932          (b) "Product transferred electronically" does not include:
             933          (i) an ancillary service;
             934          (ii) computer software; or
             935          (iii) a telecommunications service.
             936          (91) (a) "Prosthetic device" means a device that is worn on or in the body to:
             937          (i) artificially replace a missing portion of the body;
             938          (ii) prevent or correct a physical deformity or physical malfunction; or
             939          (iii) support a weak or deformed portion of the body.
             940          (b) "Prosthetic device" includes:
             941          (i) parts used in the repairs or renovation of a prosthetic device;
             942          (ii) replacement parts for a prosthetic device;
             943          (iii) a dental prosthesis; or
             944          (iv) a hearing aid.
             945          (c) "Prosthetic device" does not include:
             946          (i) corrective eyeglasses; or
             947          (ii) contact lenses.
             948          (92) (a) "Protective equipment" means an item:
             949          (i) for human wear; and
             950          (ii) that is:
             951          (A) designed as protection:
             952          (I) to the wearer against injury or disease; or
             953          (II) against damage or injury of other persons or property; and
             954          (B) not suitable for general use.
             955          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             956      commission shall make rules:
             957          (i) listing the items that constitute "protective equipment"; and


             958          (ii) that are consistent with the list of items that constitute "protective equipment"
             959      under the agreement.
             960          (93) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             961      printed matter, other than a photocopy:
             962          (i) regardless of:
             963          (A) characteristics;
             964          (B) copyright;
             965          (C) form;
             966          (D) format;
             967          (E) method of reproduction; or
             968          (F) source; and
             969          (ii) made available in printed or electronic format.
             970          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             971      commission may by rule define the term "photocopy."
             972          (94) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             973          (i) valued in money; and
             974          (ii) for which tangible personal property, a product transferred electronically, or
             975      services are:
             976          (A) sold;
             977          (B) leased; or
             978          (C) rented.
             979          (b) "Purchase price" and "sales price" include:
             980          (i) the seller's cost of the tangible personal property, a product transferred
             981      electronically, or services sold;
             982          (ii) expenses of the seller, including:
             983          (A) the cost of materials used;
             984          (B) a labor cost;
             985          (C) a service cost;
             986          (D) interest;
             987          (E) a loss;
             988          (F) the cost of transportation to the seller; or


             989          (G) a tax imposed on the seller;
             990          (iii) a charge by the seller for any service necessary to complete the sale; or
             991          (iv) consideration a seller receives from a person other than the purchaser if:
             992          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             993      and
             994          (II) the consideration described in Subsection (94)(b)(iv)(A)(I) is directly related to a
             995      price reduction or discount on the sale;
             996          (B) the seller has an obligation to pass the price reduction or discount through to the
             997      purchaser;
             998          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             999      the seller at the time of the sale to the purchaser; and
             1000          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             1001      seller to claim a price reduction or discount; and
             1002          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             1003      coupon, or other documentation with the understanding that the person other than the seller
             1004      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             1005          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             1006      organization allowed a price reduction or discount, except that a preferred customer card that is
             1007      available to any patron of a seller does not constitute membership in a group or organization
             1008      allowed a price reduction or discount; or
             1009          (III) the price reduction or discount is identified as a third party price reduction or
             1010      discount on the:
             1011          (Aa) invoice the purchaser receives; or
             1012          (Bb) certificate, coupon, or other documentation the purchaser presents.
             1013          (c) "Purchase price" and "sales price" do not include:
             1014          (i) a discount:
             1015          (A) in a form including:
             1016          (I) cash;
             1017          (II) term; or
             1018          (III) coupon;
             1019          (B) that is allowed by a seller;


             1020          (C) taken by a purchaser on a sale; and
             1021          (D) that is not reimbursed by a third party; or
             1022          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             1023      provided to the purchaser:
             1024          (A) the following from credit extended on the sale of tangible personal property or
             1025      services:
             1026          (I) a carrying charge;
             1027          (II) a financing charge; or
             1028          (III) an interest charge;
             1029          (B) a delivery charge;
             1030          (C) an installation charge;
             1031          (D) a manufacturer rebate on a motor vehicle; or
             1032          (E) a tax or fee legally imposed directly on the consumer.
             1033          (95) "Purchaser" means a person to whom:
             1034          (a) a sale of tangible personal property is made;
             1035          (b) a product is transferred electronically; or
             1036          (c) a service is furnished.
             1037          (96) "Regularly rented" means:
             1038          (a) rented to a guest for value three or more times during a calendar year; or
             1039          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1040      value.
             1041          (97) "Rental" is as defined in Subsection (54).
             1042          (98) (a) Except as provided in Subsection (98)(b), "repairs or renovations of tangible
             1043      personal property" means:
             1044          (i) a repair or renovation of tangible personal property that is not permanently attached
             1045      to real property; or
             1046          (ii) attaching tangible personal property or a product transferred electronically to other
             1047      tangible personal property or detaching tangible personal property or a product transferred
             1048      electronically from other tangible personal property if:
             1049          (A) the other tangible personal property to which the tangible personal property or
             1050      product transferred electronically is attached or from which the tangible personal property or


             1051      product transferred electronically is detached is not permanently attached to real property; and
             1052          (B) the attachment of tangible personal property or a product transferred electronically
             1053      to other tangible personal property or detachment of tangible personal property or a product
             1054      transferred electronically from other tangible personal property is made in conjunction with a
             1055      repair or replacement of tangible personal property or a product transferred electronically.
             1056          (b) "Repairs or renovations of tangible personal property" does not include:
             1057          (i) attaching prewritten computer software to other tangible personal property if the
             1058      other tangible personal property to which the prewritten computer software is attached is not
             1059      permanently attached to real property; or
             1060          (ii) detaching prewritten computer software from other tangible personal property if the
             1061      other tangible personal property from which the prewritten computer software is detached is
             1062      not permanently attached to real property.
             1063          (99) "Research and development" means the process of inquiry or experimentation
             1064      aimed at the discovery of facts, devices, technologies, or applications and the process of
             1065      preparing those devices, technologies, or applications for marketing.
             1066          (100) (a) "Residential telecommunications services" means a telecommunications
             1067      service or an ancillary service that is provided to an individual for personal use:
             1068          (i) at a residential address; or
             1069          (ii) at an institution, including a nursing home or a school, if the telecommunications
             1070      service or ancillary service is provided to and paid for by the individual residing at the
             1071      institution rather than the institution.
             1072          (b) For purposes of Subsection (100)(a)(i), a residential address includes an:
             1073          (i) apartment; or
             1074          (ii) other individual dwelling unit.
             1075          (101) "Residential use" means the use in or around a home, apartment building,
             1076      sleeping quarters, and similar facilities or accommodations.
             1077          (102) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             1078      than:
             1079          (a) resale;
             1080          (b) sublease; or
             1081          (c) subrent.


             1082          (103) (a) "Retailer" means any person engaged in a regularly organized business in
             1083      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             1084      who is selling to the user or consumer and not for resale.
             1085          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             1086      engaged in the business of selling to users or consumers within the state.
             1087          (104) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1088      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1089      Subsection 59-12-103 (1), for consideration.
             1090          (b) "Sale" includes:
             1091          (i) installment and credit sales;
             1092          (ii) any closed transaction constituting a sale;
             1093          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1094      chapter;
             1095          (iv) any transaction if the possession of property is transferred but the seller retains the
             1096      title as security for the payment of the price; and
             1097          (v) any transaction under which right to possession, operation, or use of any article of
             1098      tangible personal property is granted under a lease or contract and the transfer of possession
             1099      would be taxable if an outright sale were made.
             1100          (105) "Sale at retail" is as defined in Subsection (102).
             1101          (106) "Sale-leaseback transaction" means a transaction by which title to tangible
             1102      personal property or a product transferred electronically that is subject to a tax under this
             1103      chapter is transferred:
             1104          (a) by a purchaser-lessee;
             1105          (b) to a lessor;
             1106          (c) for consideration; and
             1107          (d) if:
             1108          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1109      of the tangible personal property or product transferred electronically;
             1110          (ii) the sale of the tangible personal property or product transferred electronically to the
             1111      lessor is intended as a form of financing:
             1112          (A) for the tangible personal property or product transferred electronically; and


             1113          (B) to the purchaser-lessee; and
             1114          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1115      is required to:
             1116          (A) capitalize the tangible personal property or product transferred electronically for
             1117      financial reporting purposes; and
             1118          (B) account for the lease payments as payments made under a financing arrangement.
             1119          (107) "Sales price" is as defined in Subsection (94).
             1120          (108) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             1121      amounts charged by a school:
             1122          (i) sales that are directly related to the school's educational functions or activities
             1123      including:
             1124          (A) the sale of:
             1125          (I) textbooks;
             1126          (II) textbook fees;
             1127          (III) laboratory fees;
             1128          (IV) laboratory supplies; or
             1129          (V) safety equipment;
             1130          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1131      that:
             1132          (I) a student is specifically required to wear as a condition of participation in a
             1133      school-related event or school-related activity; and
             1134          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1135      place of ordinary clothing;
             1136          (C) sales of the following if the net or gross revenues generated by the sales are
             1137      deposited into a school district fund or school fund dedicated to school meals:
             1138          (I) food and food ingredients; or
             1139          (II) prepared food; or
             1140          (D) transportation charges for official school activities; or
             1141          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1142      event or school-related activity.
             1143          (b) "Sales relating to schools" does not include:


             1144          (i) bookstore sales of items that are not educational materials or supplies;
             1145          (ii) except as provided in Subsection (108)(a)(i)(B):
             1146          (A) clothing;
             1147          (B) clothing accessories or equipment;
             1148          (C) protective equipment; or
             1149          (D) sports or recreational equipment; or
             1150          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1151      event or school-related activity if the amounts paid or charged are passed through to a person:
             1152          (A) other than a:
             1153          (I) school;
             1154          (II) nonprofit organization authorized by a school board or a governing body of a
             1155      private school to organize and direct a competitive secondary school activity; or
             1156          (III) nonprofit association authorized by a school board or a governing body of a
             1157      private school to organize and direct a competitive secondary school activity; and
             1158          (B) that is required to collect sales and use taxes under this chapter.
             1159          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1160      commission may make rules defining the term "passed through."
             1161          (109) For purposes of this section and Section 59-12-104 , "school":
             1162          (a) means:
             1163          (i) an elementary school or a secondary school that:
             1164          (A) is a:
             1165          (I) public school; or
             1166          (II) private school; and
             1167          (B) provides instruction for one or more grades kindergarten through 12; or
             1168          (ii) a public school district; and
             1169          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1170          (110) "Seller" means a person that makes a sale, lease, or rental of:
             1171          (a) tangible personal property;
             1172          (b) a product transferred electronically; or
             1173          (c) a service.
             1174          (111) (a) "Semiconductor fabricating, processing, research, or development materials"


             1175      means tangible personal property or a product transferred electronically if the tangible personal
             1176      property or product transferred electronically is:
             1177          (i) used primarily in the process of:
             1178          (A) (I) manufacturing a semiconductor;
             1179          (II) fabricating a semiconductor; or
             1180          (III) research or development of a:
             1181          (Aa) semiconductor; or
             1182          (Bb) semiconductor manufacturing process; or
             1183          (B) maintaining an environment suitable for a semiconductor; or
             1184          (ii) consumed primarily in the process of:
             1185          (A) (I) manufacturing a semiconductor;
             1186          (II) fabricating a semiconductor; or
             1187          (III) research or development of a:
             1188          (Aa) semiconductor; or
             1189          (Bb) semiconductor manufacturing process; or
             1190          (B) maintaining an environment suitable for a semiconductor.
             1191          (b) "Semiconductor fabricating, processing, research, or development materials"
             1192      includes:
             1193          (i) parts used in the repairs or renovations of tangible personal property or a product
             1194      transferred electronically described in Subsection (111)(a); or
             1195          (ii) a chemical, catalyst, or other material used to:
             1196          (A) produce or induce in a semiconductor a:
             1197          (I) chemical change; or
             1198          (II) physical change;
             1199          (B) remove impurities from a semiconductor; or
             1200          (C) improve the marketable condition of a semiconductor.
             1201          (112) "Senior citizen center" means a facility having the primary purpose of providing
             1202      services to the aged as defined in Section 62A-3-101 .
             1203          (113) (a) Subject to Subsections (113)(b) and (c), "short-term lodging consumable"
             1204      means tangible personal property that:
             1205          (i) a business that provides accommodations and services described in Subsection


             1206      59-12-103 (1)(i) purchases as part of a transaction to provide the accommodations and services
             1207      to a purchaser;
             1208          (ii) is intended to be consumed by the purchaser; and
             1209          (iii) is:
             1210          (A) included in the purchase price of the accommodations and services; and
             1211          (B) not separately stated on an invoice, bill of sale, or other similar document provided
             1212      to the purchaser.
             1213          (b) "Short-term lodging consumable" includes:
             1214          (i) a beverage;
             1215          (ii) a brush or comb;
             1216          (iii) a cosmetic;
             1217          (iv) a hair care product;
             1218          (v) lotion;
             1219          (vi) a magazine;
             1220          (vii) makeup;
             1221          (viii) a meal;
             1222          (ix) mouthwash;
             1223          (x) nail polish remover;
             1224          (xi) a newspaper;
             1225          (xii) a notepad;
             1226          (xiii) a pen;
             1227          (xiv) a pencil;
             1228          (xv) a razor;
             1229          (xvi) saline solution;
             1230          (xvii) a sewing kit;
             1231          (xviii) shaving cream;
             1232          (xix) a shoe shine kit;
             1233          (xx) a shower cap;
             1234          (xxi) a snack item;
             1235          (xxii) soap;
             1236          (xxiii) toilet paper;


             1237          (xxiv) a toothbrush;
             1238          (xxv) toothpaste; or
             1239          (xxvi) an item similar to Subsections (113)(b)(i) through (xxv) as the commission may
             1240      provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1241      Rulemaking Act.
             1242          (c) "Short-term lodging consumable" does not include:
             1243          (i) tangible personal property that is cleaned or washed to allow the tangible personal
             1244      property to be reused; or
             1245          (ii) a product transferred electronically.
             1246          [(113)] (114) "Simplified electronic return" means the electronic return:
             1247          (a) described in Section 318(C) of the agreement; and
             1248          (b) approved by the governing board of the agreement.
             1249          [(114)] (115) "Solar energy" means the sun used as the sole source of energy for
             1250      producing electricity.
             1251          [(115)] (116) (a) "Sports or recreational equipment" means an item:
             1252          (i) designed for human use; and
             1253          (ii) that is:
             1254          (A) worn in conjunction with:
             1255          (I) an athletic activity; or
             1256          (II) a recreational activity; and
             1257          (B) not suitable for general use.
             1258          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1259      commission shall make rules:
             1260          (i) listing the items that constitute "sports or recreational equipment"; and
             1261          (ii) that are consistent with the list of items that constitute "sports or recreational
             1262      equipment" under the agreement.
             1263          [(116)] (117) "State" means the state of Utah, its departments, and agencies.
             1264          [(117)] (118) "Storage" means any keeping or retention of tangible personal property or
             1265      any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
             1266      except sale in the regular course of business.
             1267          [(118)] (119) (a) Except as provided in Subsection [(118)] (119)(d) or (e), "tangible


             1268      personal property" means personal property that:
             1269          (i) may be:
             1270          (A) seen;
             1271          (B) weighed;
             1272          (C) measured;
             1273          (D) felt; or
             1274          (E) touched; or
             1275          (ii) is in any manner perceptible to the senses.
             1276          (b) "Tangible personal property" includes:
             1277          (i) electricity;
             1278          (ii) water;
             1279          (iii) gas;
             1280          (iv) steam; or
             1281          (v) prewritten computer software, regardless of the manner in which the prewritten
             1282      computer software is transferred.
             1283          (c) "Tangible personal property" includes the following regardless of whether the item
             1284      is attached to real property:
             1285          (i) a dishwasher;
             1286          (ii) a dryer;
             1287          (iii) a freezer;
             1288          (iv) a microwave;
             1289          (v) a refrigerator;
             1290          (vi) a stove;
             1291          (vii) a washer; or
             1292          (viii) an item similar to Subsections [(118)] (119)(c)(i) through (vii) as determined by
             1293      the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1294      Rulemaking Act.
             1295          (d) "Tangible personal property" does not include a product that is transferred
             1296      electronically.
             1297          (e) "Tangible personal property" does not include the following if attached to real
             1298      property, regardless of whether the attachment to real property is only through a line that


             1299      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             1300      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1301      Rulemaking Act:
             1302          (i) a hot water heater;
             1303          (ii) a water filtration system; or
             1304          (iii) a water softener system.
             1305          [(119)] (120) (a) "Telecommunications enabling or facilitating equipment, machinery,
             1306      or software" means an item listed in Subsection [(119)] (120)(b) if that item is purchased or
             1307      leased primarily to enable or facilitate one or more of the following to function:
             1308          (i) telecommunications switching or routing equipment, machinery, or software; or
             1309          (ii) telecommunications transmission equipment, machinery, or software.
             1310          (b) The following apply to Subsection [(119)] (120)(a):
             1311          (i) a pole;
             1312          (ii) software;
             1313          (iii) a supplementary power supply;
             1314          (iv) temperature or environmental equipment or machinery;
             1315          (v) test equipment;
             1316          (vi) a tower; or
             1317          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1318      Subsections [(119)] (120)(b)(i) through (vi) as determined by the commission by rule made in
             1319      accordance with Subsection [(119)] (120)(c).
             1320          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1321      commission may by rule define what constitutes equipment, machinery, or software that
             1322      functions similarly to an item listed in Subsections [(119)] (120)(b)(i) through (vi).
             1323          [(120)] (121) "Telecommunications equipment, machinery, or software required for
             1324      911 service" means equipment, machinery, or software that is required to comply with 47
             1325      C.F.R. Sec. 20.18.
             1326          [(121)] (122) "Telecommunications maintenance or repair equipment, machinery, or
             1327      software" means equipment, machinery, or software purchased or leased primarily to maintain
             1328      or repair one or more of the following, regardless of whether the equipment, machinery, or
             1329      software is purchased or leased as a spare part or as an upgrade or modification to one or more


             1330      of the following:
             1331          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1332          (b) telecommunications switching or routing equipment, machinery, or software; or
             1333          (c) telecommunications transmission equipment, machinery, or software.
             1334          [(122)] (123) (a) "Telecommunications service" means the electronic conveyance,
             1335      routing, or transmission of audio, data, video, voice, or any other information or signal to a
             1336      point, or among or between points.
             1337          (b) "Telecommunications service" includes:
             1338          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             1339      processing application is used to act:
             1340          (A) on the code, form, or protocol of the content;
             1341          (B) for the purpose of electronic conveyance, routing, or transmission; and
             1342          (C) regardless of whether the service:
             1343          (I) is referred to as voice over Internet protocol service; or
             1344          (II) is classified by the Federal Communications Commission as enhanced or value
             1345      added;
             1346          (ii) an 800 service;
             1347          (iii) a 900 service;
             1348          (iv) a fixed wireless service;
             1349          (v) a mobile wireless service;
             1350          (vi) a postpaid calling service;
             1351          (vii) a prepaid calling service;
             1352          (viii) a prepaid wireless calling service; or
             1353          (ix) a private communications service.
             1354          (c) "Telecommunications service" does not include:
             1355          (i) advertising, including directory advertising;
             1356          (ii) an ancillary service;
             1357          (iii) a billing and collection service provided to a third party;
             1358          (iv) a data processing and information service if:
             1359          (A) the data processing and information service allows data to be:
             1360          (I) (Aa) acquired;


             1361          (Bb) generated;
             1362          (Cc) processed;
             1363          (Dd) retrieved; or
             1364          (Ee) stored; and
             1365          (II) delivered by an electronic transmission to a purchaser; and
             1366          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             1367      or information;
             1368          (v) installation or maintenance of the following on a customer's premises:
             1369          (A) equipment; or
             1370          (B) wiring;
             1371          (vi) Internet access service;
             1372          (vii) a paging service;
             1373          (viii) a product transferred electronically, including:
             1374          (A) music;
             1375          (B) reading material;
             1376          (C) a ring tone;
             1377          (D) software; or
             1378          (E) video;
             1379          (ix) a radio and television audio and video programming service:
             1380          (A) regardless of the medium; and
             1381          (B) including:
             1382          (I) furnishing conveyance, routing, or transmission of a television audio and video
             1383      programming service by a programming service provider;
             1384          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             1385          (III) audio and video programming services delivered by a commercial mobile radio
             1386      service provider as defined in 47 C.F.R. Sec. 20.3;
             1387          (x) a value-added nonvoice data service; or
             1388          (xi) tangible personal property.
             1389          [(123)] (124) (a) "Telecommunications service provider" means a person that:
             1390          (i) owns, controls, operates, or manages a telecommunications service; and
             1391          (ii) engages in an activity described in Subsection [(123)] (124)(a)(i) for the shared use


             1392      with or resale to any person of the telecommunications service.
             1393          (b) A person described in Subsection [(123)] (124)(a) is a telecommunications service
             1394      provider whether or not the Public Service Commission of Utah regulates:
             1395          (i) that person; or
             1396          (ii) the telecommunications service that the person owns, controls, operates, or
             1397      manages.
             1398          [(124)] (125) (a) "Telecommunications switching or routing equipment, machinery, or
             1399      software" means an item listed in Subsection [(124)] (125)(b) if that item is purchased or
             1400      leased primarily for switching or routing:
             1401          (i) an ancillary service;
             1402          (ii) data communications;
             1403          (iii) voice communications; or
             1404          (iv) telecommunications service.
             1405          (b) The following apply to Subsection [(124)] (125)(a):
             1406          (i) a bridge;
             1407          (ii) a computer;
             1408          (iii) a cross connect;
             1409          (iv) a modem;
             1410          (v) a multiplexer;
             1411          (vi) plug in circuitry;
             1412          (vii) a router;
             1413          (viii) software;
             1414          (ix) a switch; or
             1415          (x) equipment, machinery, or software that functions similarly to an item listed in
             1416      Subsections [(124)] (125)(b)(i) through (ix) as determined by the commission by rule made in
             1417      accordance with Subsection [(124)] (125)(c).
             1418          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1419      commission may by rule define what constitutes equipment, machinery, or software that
             1420      functions similarly to an item listed in Subsections [(124)] (125)(b)(i) through (ix).
             1421          [(125)] (126) (a) "Telecommunications transmission equipment, machinery, or
             1422      software" means an item listed in Subsection [(125)] (126)(b) if that item is purchased or


             1423      leased primarily for sending, receiving, or transporting:
             1424          (i) an ancillary service;
             1425          (ii) data communications;
             1426          (iii) voice communications; or
             1427          (iv) telecommunications service.
             1428          (b) The following apply to Subsection [(125)] (126)(a):
             1429          (i) an amplifier;
             1430          (ii) a cable;
             1431          (iii) a closure;
             1432          (iv) a conduit;
             1433          (v) a controller;
             1434          (vi) a duplexer;
             1435          (vii) a filter;
             1436          (viii) an input device;
             1437          (ix) an input/output device;
             1438          (x) an insulator;
             1439          (xi) microwave machinery or equipment;
             1440          (xii) an oscillator;
             1441          (xiii) an output device;
             1442          (xiv) a pedestal;
             1443          (xv) a power converter;
             1444          (xvi) a power supply;
             1445          (xvii) a radio channel;
             1446          (xviii) a radio receiver;
             1447          (xix) a radio transmitter;
             1448          (xx) a repeater;
             1449          (xxi) software;
             1450          (xxii) a terminal;
             1451          (xxiii) a timing unit;
             1452          (xxiv) a transformer;
             1453          (xxv) a wire; or


             1454          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1455      Subsections [(125)] (126)(b)(i) through (xxv) as determined by the commission by rule made in
             1456      accordance with Subsection [(125)] (126)(c).
             1457          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1458      commission may by rule define what constitutes equipment, machinery, or software that
             1459      functions similarly to an item listed in Subsections [(125)] (126)(b)(i) through (xxv).
             1460          [(126)] (127) (a) "Textbook for a higher education course" means a textbook or other
             1461      printed material that is required for a course:
             1462          (i) offered by an institution of higher education; and
             1463          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             1464          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             1465          [(127)] (128) "Tobacco" means:
             1466          (a) a cigarette;
             1467          (b) a cigar;
             1468          (c) chewing tobacco;
             1469          (d) pipe tobacco; or
             1470          (e) any other item that contains tobacco.
             1471          [(128)] (129) "Unassisted amusement device" means an amusement device, skill
             1472      device, or ride device that is started and stopped by the purchaser or renter of the right to use or
             1473      operate the amusement device, skill device, or ride device.
             1474          [(129)] (130) (a) "Use" means the exercise of any right or power over tangible personal
             1475      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             1476      incident to the ownership or the leasing of that tangible personal property, product transferred
             1477      electronically, or service.
             1478          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             1479      property, a product transferred electronically, or a service in the regular course of business and
             1480      held for resale.
             1481          [(130)] (131) "Value-added nonvoice data service" means a service:
             1482          (a) that otherwise meets the definition of a telecommunications service except that a
             1483      computer processing application is used to act primarily for a purpose other than conveyance,
             1484      routing, or transmission; and


             1485          (b) with respect to which a computer processing application is used to act on data or
             1486      information:
             1487          (i) code;
             1488          (ii) content;
             1489          (iii) form; or
             1490          (iv) protocol.
             1491          [(131)] (132) (a) Subject to Subsection [(131)] (132)(b), "vehicle" means the following
             1492      that are required to be titled, registered, or titled and registered:
             1493          (i) an aircraft as defined in Section 72-10-102 ;
             1494          (ii) a vehicle as defined in Section 41-1a-102 ;
             1495          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             1496          (iv) a vessel as defined in Section 41-1a-102 .
             1497          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             1498          (i) a vehicle described in Subsection [(131)] (132)(a); or
             1499          (ii) (A) a locomotive;
             1500          (B) a freight car;
             1501          (C) railroad work equipment; or
             1502          (D) other railroad rolling stock.
             1503          [(132)] (133) "Vehicle dealer" means a person engaged in the business of buying,
             1504      selling, or exchanging a vehicle as defined in Subsection [(131)] (132).
             1505          [(133)] (134) (a) "Vertical service" means an ancillary service that:
             1506          (i) is offered in connection with one or more telecommunications services; and
             1507          (ii) offers an advanced calling feature that allows a customer to:
             1508          (A) identify a caller; and
             1509          (B) manage multiple calls and call connections.
             1510          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             1511      conference bridging service.
             1512          [(134)] (135) (a) "Voice mail service" means an ancillary service that enables a
             1513      customer to receive, send, or store a recorded message.
             1514          (b) "Voice mail service" does not include a vertical service that a customer is required
             1515      to have in order to utilize a voice mail service.


             1516          [(135)] (136) (a) Except as provided in Subsection [(135)] (136)(b), "waste energy
             1517      facility" means a facility that generates electricity:
             1518          (i) using as the primary source of energy waste materials that would be placed in a
             1519      landfill or refuse pit if it were not used to generate electricity, including:
             1520          (A) tires;
             1521          (B) waste coal;
             1522          (C) oil shale; or
             1523          (D) municipal solid waste; and
             1524          (ii) in amounts greater than actually required for the operation of the facility.
             1525          (b) "Waste energy facility" does not include a facility that incinerates:
             1526          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
             1527          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             1528          [(136)] (137) "Watercraft" means a vessel as defined in Section 73-18-2 .
             1529          [(137)] (138) "Wind energy" means wind used as the sole source of energy to produce
             1530      electricity.
             1531          [(138)] (139) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
             1532      geographic location by the United States Postal Service.
             1533          Section 2. Section 59-12-102 (Effective 07/01/14) is amended to read:
             1534           59-12-102 (Effective 07/01/14). Definitions.
             1535          As used in this chapter:
             1536          (1) "800 service" means a telecommunications service that:
             1537          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             1538          (b) is typically marketed:
             1539          (i) under the name 800 toll-free calling;
             1540          (ii) under the name 855 toll-free calling;
             1541          (iii) under the name 866 toll-free calling;
             1542          (iv) under the name 877 toll-free calling;
             1543          (v) under the name 888 toll-free calling; or
             1544          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             1545      Federal Communications Commission.
             1546          (2) (a) "900 service" means an inbound toll telecommunications service that:


             1547          (i) a subscriber purchases;
             1548          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             1549      the subscriber's:
             1550          (A) prerecorded announcement; or
             1551          (B) live service; and
             1552          (iii) is typically marketed:
             1553          (A) under the name 900 service; or
             1554          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             1555      Communications Commission.
             1556          (b) "900 service" does not include a charge for:
             1557          (i) a collection service a seller of a telecommunications service provides to a
             1558      subscriber; or
             1559          (ii) the following a subscriber sells to the subscriber's customer:
             1560          (A) a product; or
             1561          (B) a service.
             1562          (3) (a) "Admission or user fees" includes season passes.
             1563          (b) "Admission or user fees" does not include annual membership dues to private
             1564      organizations.
             1565          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             1566      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             1567      Agreement after November 12, 2002.
             1568          (5) "Agreement combined tax rate" means the sum of the tax rates:
             1569          (a) listed under Subsection (6); and
             1570          (b) that are imposed within a local taxing jurisdiction.
             1571          (6) "Agreement sales and use tax" means a tax imposed under:
             1572          (a) Subsection 59-12-103 (2)(a)(i)(A);
             1573          (b) Subsection 59-12-103 (2)(b)(i);
             1574          (c) Subsection 59-12-103 (2)(c)(i);
             1575          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             1576          (e) Section 59-12-204 ;
             1577          (f) Section 59-12-401 ;


             1578          (g) Section 59-12-402 ;
             1579          (h) Section 59-12-703 ;
             1580          (i) Section 59-12-802 ;
             1581          (j) Section 59-12-804 ;
             1582          (k) Section 59-12-1102 ;
             1583          (l) Section 59-12-1302 ;
             1584          (m) Section 59-12-1402 ;
             1585          (n) Section 59-12-1802 ;
             1586          (o) Section 59-12-2003 ;
             1587          (p) Section 59-12-2103 ;
             1588          (q) Section 59-12-2213 ;
             1589          (r) Section 59-12-2214 ;
             1590          (s) Section 59-12-2215 ;
             1591          (t) Section 59-12-2216 ;
             1592          (u) Section 59-12-2217 ; or
             1593          (v) Section 59-12-2218 .
             1594          (7) "Aircraft" is as defined in Section 72-10-102 .
             1595          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             1596          (a) except for:
             1597          (i) an airline as defined in Section 59-2-102 ; or
             1598          (ii) an affiliated group, as defined in Section 59-7-101 , except that "affiliated group"
             1599      includes a corporation that is qualified to do business but is not otherwise doing business in the
             1600      state, of an airline; and
             1601          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             1602      whether the business entity performs the following in this state:
             1603          (i) check, diagnose, overhaul, and repair:
             1604          (A) an onboard system of a fixed wing turbine powered aircraft; and
             1605          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             1606          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             1607      engine;
             1608          (iii) perform at least the following maintenance on a fixed wing turbine powered


             1609      aircraft:
             1610          (A) an inspection;
             1611          (B) a repair, including a structural repair or modification;
             1612          (C) changing landing gear; and
             1613          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             1614          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             1615      completely apply new paint to the fixed wing turbine powered aircraft; and
             1616          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             1617      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             1618      authority that certifies the fixed wing turbine powered aircraft.
             1619          (9) "Alcoholic beverage" means a beverage that:
             1620          (a) is suitable for human consumption; and
             1621          (b) contains .5% or more alcohol by volume.
             1622          (10) "Alternative energy" means:
             1623          (a) biomass energy;
             1624          (b) geothermal energy;
             1625          (c) hydroelectric energy;
             1626          (d) solar energy;
             1627          (e) wind energy; or
             1628          (f) energy that is derived from:
             1629          (i) coal-to-liquids;
             1630          (ii) nuclear fuel;
             1631          (iii) oil-impregnated diatomaceous earth;
             1632          (iv) oil sands;
             1633          (v) oil shale; or
             1634          (vi) petroleum coke.
             1635          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
             1636      facility" means a facility that:
             1637          (i) uses alternative energy to produce electricity; and
             1638          (ii) has a production capacity of 2 megawatts or greater.
             1639          (b) A facility is an alternative energy electricity production facility regardless of


             1640      whether the facility is:
             1641          (i) connected to an electric grid; or
             1642          (ii) located on the premises of an electricity consumer.
             1643          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
             1644      provision of telecommunications service.
             1645          (b) "Ancillary service" includes:
             1646          (i) a conference bridging service;
             1647          (ii) a detailed communications billing service;
             1648          (iii) directory assistance;
             1649          (iv) a vertical service; or
             1650          (v) a voice mail service.
             1651          (13) "Area agency on aging" is as defined in Section 62A-3-101 .
             1652          (14) "Assisted amusement device" means an amusement device, skill device, or ride
             1653      device that is started and stopped by an individual:
             1654          (a) who is not the purchaser or renter of the right to use or operate the amusement
             1655      device, skill device, or ride device; and
             1656          (b) at the direction of the seller of the right to use the amusement device, skill device,
             1657      or ride device.
             1658          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
             1659      washing of tangible personal property if the cleaning or washing labor is primarily performed
             1660      by an individual:
             1661          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             1662      property; and
             1663          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             1664      property.
             1665          (16) "Authorized carrier" means:
             1666          (a) in the case of vehicles operated over public highways, the holder of credentials
             1667      indicating that the vehicle is or will be operated pursuant to both the International Registration
             1668      Plan and the International Fuel Tax Agreement;
             1669          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             1670      certificate or air carrier's operating certificate; or


             1671          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             1672      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             1673          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
             1674      following that is used as the primary source of energy to produce fuel or electricity:
             1675          (i) material from a plant or tree; or
             1676          (ii) other organic matter that is available on a renewable basis, including:
             1677          (A) slash and brush from forests and woodlands;
             1678          (B) animal waste;
             1679          (C) methane produced:
             1680          (I) at landfills; or
             1681          (II) as a byproduct of the treatment of wastewater residuals;
             1682          (D) aquatic plants; and
             1683          (E) agricultural products.
             1684          (b) "Biomass energy" does not include:
             1685          (i) black liquor;
             1686          (ii) treated woods; or
             1687          (iii) biomass from municipal solid waste other than methane produced:
             1688          (A) at landfills; or
             1689          (B) as a byproduct of the treatment of wastewater residuals.
             1690          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             1691      property, products, or services if the tangible personal property, products, or services are:
             1692          (i) distinct and identifiable; and
             1693          (ii) sold for one nonitemized price.
             1694          (b) "Bundled transaction" does not include:
             1695          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             1696      the basis of the selection by the purchaser of the items of tangible personal property included in
             1697      the transaction;
             1698          (ii) the sale of real property;
             1699          (iii) the sale of services to real property;
             1700          (iv) the retail sale of tangible personal property and a service if:
             1701          (A) the tangible personal property:


             1702          (I) is essential to the use of the service; and
             1703          (II) is provided exclusively in connection with the service; and
             1704          (B) the service is the true object of the transaction;
             1705          (v) the retail sale of two services if:
             1706          (A) one service is provided that is essential to the use or receipt of a second service;
             1707          (B) the first service is provided exclusively in connection with the second service; and
             1708          (C) the second service is the true object of the transaction;
             1709          (vi) a transaction that includes tangible personal property or a product subject to
             1710      taxation under this chapter and tangible personal property or a product that is not subject to
             1711      taxation under this chapter if the:
             1712          (A) seller's purchase price of the tangible personal property or product subject to
             1713      taxation under this chapter is de minimis; or
             1714          (B) seller's sales price of the tangible personal property or product subject to taxation
             1715      under this chapter is de minimis; and
             1716          (vii) the retail sale of tangible personal property that is not subject to taxation under
             1717      this chapter and tangible personal property that is subject to taxation under this chapter if:
             1718          (A) that retail sale includes:
             1719          (I) food and food ingredients;
             1720          (II) a drug;
             1721          (III) durable medical equipment;
             1722          (IV) mobility enhancing equipment;
             1723          (V) an over-the-counter drug;
             1724          (VI) a prosthetic device; or
             1725          (VII) a medical supply; and
             1726          (B) subject to Subsection (18)(f):
             1727          (I) the seller's purchase price of the tangible personal property subject to taxation under
             1728      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             1729          (II) the seller's sales price of the tangible personal property subject to taxation under
             1730      this chapter is 50% or less of the seller's total sales price of that retail sale.
             1731          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
             1732      service that is distinct and identifiable does not include:


             1733          (A) packaging that:
             1734          (I) accompanies the sale of the tangible personal property, product, or service; and
             1735          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             1736      service;
             1737          (B) tangible personal property, a product, or a service provided free of charge with the
             1738      purchase of another item of tangible personal property, a product, or a service; or
             1739          (C) an item of tangible personal property, a product, or a service included in the
             1740      definition of "purchase price."
             1741          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
             1742      product, or a service is provided free of charge with the purchase of another item of tangible
             1743      personal property, a product, or a service if the sales price of the purchased item of tangible
             1744      personal property, product, or service does not vary depending on the inclusion of the tangible
             1745      personal property, product, or service provided free of charge.
             1746          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
             1747      does not include a price that is separately identified by tangible personal property, product, or
             1748      service on the following, regardless of whether the following is in paper format or electronic
             1749      format:
             1750          (A) a binding sales document; or
             1751          (B) another supporting sales-related document that is available to a purchaser.
             1752          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
             1753      supporting sales-related document that is available to a purchaser includes:
             1754          (A) a bill of sale;
             1755          (B) a contract;
             1756          (C) an invoice;
             1757          (D) a lease agreement;
             1758          (E) a periodic notice of rates and services;
             1759          (F) a price list;
             1760          (G) a rate card;
             1761          (H) a receipt; or
             1762          (I) a service agreement.
             1763          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal


             1764      property or a product subject to taxation under this chapter is de minimis if:
             1765          (A) the seller's purchase price of the tangible personal property or product is 10% or
             1766      less of the seller's total purchase price of the bundled transaction; or
             1767          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             1768      the seller's total sales price of the bundled transaction.
             1769          (ii) For purposes of Subsection (18)(b)(vi), a seller:
             1770          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             1771      purchase price or sales price of the tangible personal property or product subject to taxation
             1772      under this chapter is de minimis; and
             1773          (B) may not use a combination of the seller's purchase price and the seller's sales price
             1774      to determine if the purchase price or sales price of the tangible personal property or product
             1775      subject to taxation under this chapter is de minimis.
             1776          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
             1777      contract to determine if the sales price of tangible personal property or a product is de minimis.
             1778          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
             1779      the seller's purchase price and the seller's sales price to determine if tangible personal property
             1780      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             1781      price of that retail sale.
             1782          (19) "Certified automated system" means software certified by the governing board of
             1783      the agreement that:
             1784          (a) calculates the agreement sales and use tax imposed within a local taxing
             1785      jurisdiction:
             1786          (i) on a transaction; and
             1787          (ii) in the states that are members of the agreement;
             1788          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             1789      member of the agreement; and
             1790          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
             1791          (20) "Certified service provider" means an agent certified:
             1792          (a) by the governing board of the agreement; and
             1793          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             1794      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's


             1795      own purchases.
             1796          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
             1797      suitable for general use.
             1798          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1799      commission shall make rules:
             1800          (i) listing the items that constitute "clothing"; and
             1801          (ii) that are consistent with the list of items that constitute "clothing" under the
             1802      agreement.
             1803          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             1804          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             1805      fuels that does not constitute industrial use under Subsection (51) or residential use under
             1806      Subsection (101).
             1807          (24) (a) "Common carrier" means a person engaged in or transacting the business of
             1808      transporting passengers, freight, merchandise, or other property for hire within this state.
             1809          (b) (i) "Common carrier" does not include a person who, at the time the person is
             1810      traveling to or from that person's place of employment, transports a passenger to or from the
             1811      passenger's place of employment.
             1812          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
             1813      Utah Administrative Rulemaking Act, the commission may make rules defining what
             1814      constitutes a person's place of employment.
             1815          (25) "Component part" includes:
             1816          (a) poultry, dairy, and other livestock feed, and their components;
             1817          (b) baling ties and twine used in the baling of hay and straw;
             1818          (c) fuel used for providing temperature control of orchards and commercial
             1819      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             1820      off-highway type farm machinery; and
             1821          (d) feed, seeds, and seedlings.
             1822          (26) "Computer" means an electronic device that accepts information:
             1823          (a) (i) in digital form; or
             1824          (ii) in a form similar to digital form; and
             1825          (b) manipulates that information for a result based on a sequence of instructions.


             1826          (27) "Computer software" means a set of coded instructions designed to cause:
             1827          (a) a computer to perform a task; or
             1828          (b) automatic data processing equipment to perform a task.
             1829          (28) "Computer software maintenance contract" means a contract that obligates a seller
             1830      of computer software to provide a customer with:
             1831          (a) future updates or upgrades to computer software;
             1832          (b) support services with respect to computer software; or
             1833          (c) a combination of Subsections (28)(a) and (b).
             1834          (29) (a) "Conference bridging service" means an ancillary service that links two or
             1835      more participants of an audio conference call or video conference call.
             1836          (b) "Conference bridging service" may include providing a telephone number as part of
             1837      the ancillary service described in Subsection (29)(a).
             1838          (c) "Conference bridging service" does not include a telecommunications service used
             1839      to reach the ancillary service described in Subsection (29)(a).
             1840          (30) "Construction materials" means any tangible personal property that will be
             1841      converted into real property.
             1842          (31) "Delivered electronically" means delivered to a purchaser by means other than
             1843      tangible storage media.
             1844          (32) (a) "Delivery charge" means a charge:
             1845          (i) by a seller of:
             1846          (A) tangible personal property;
             1847          (B) a product transferred electronically; or
             1848          (C) services; and
             1849          (ii) for preparation and delivery of the tangible personal property, product transferred
             1850      electronically, or services described in Subsection (32)(a)(i) to a location designated by the
             1851      purchaser.
             1852          (b) "Delivery charge" includes a charge for the following:
             1853          (i) transportation;
             1854          (ii) shipping;
             1855          (iii) postage;
             1856          (iv) handling;


             1857          (v) crating; or
             1858          (vi) packing.
             1859          (33) "Detailed telecommunications billing service" means an ancillary service of
             1860      separately stating information pertaining to individual calls on a customer's billing statement.
             1861          (34) "Dietary supplement" means a product, other than tobacco, that:
             1862          (a) is intended to supplement the diet;
             1863          (b) contains one or more of the following dietary ingredients:
             1864          (i) a vitamin;
             1865          (ii) a mineral;
             1866          (iii) an herb or other botanical;
             1867          (iv) an amino acid;
             1868          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             1869      dietary intake; or
             1870          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             1871      described in Subsections (34)(b)(i) through (v);
             1872          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
             1873          (A) tablet form;
             1874          (B) capsule form;
             1875          (C) powder form;
             1876          (D) softgel form;
             1877          (E) gelcap form; or
             1878          (F) liquid form; or
             1879          (ii) [notwithstanding Subsection (34)(c)(i),] if the product is not intended for ingestion
             1880      in a form described in Subsections (34)(c)(i)(A) through (F), is not represented:
             1881          (A) as conventional food; and
             1882          (B) for use as a sole item of:
             1883          (I) a meal; or
             1884          (II) the diet; and
             1885          (d) is required to be labeled as a dietary supplement:
             1886          (i) identifiable by the "Supplemental Facts" box found on the label; and
             1887          (ii) as required by 21 C.F.R. Sec. 101.36.


             1888          (35) (a) "Direct mail" means printed material delivered or distributed by United States
             1889      mail or other delivery service:
             1890          (i) to:
             1891          (A) a mass audience; or
             1892          (B) addressees on a mailing list provided:
             1893          (I) by a purchaser of the mailing list; or
             1894          (II) at the discretion of the purchaser of the mailing list; and
             1895          (ii) if the cost of the printed material is not billed directly to the recipients.
             1896          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             1897      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             1898          (c) "Direct mail" does not include multiple items of printed material delivered to a
             1899      single address.
             1900          (36) "Directory assistance" means an ancillary service of providing:
             1901          (a) address information; or
             1902          (b) telephone number information.
             1903          (37) (a) "Disposable home medical equipment or supplies" means medical equipment
             1904      or supplies that:
             1905          (i) cannot withstand repeated use; and
             1906          (ii) are purchased by, for, or on behalf of a person other than:
             1907          (A) a health care facility as defined in Section 26-21-2 ;
             1908          (B) a health care provider as defined in Section 78B-3-403 ;
             1909          (C) an office of a health care provider described in Subsection (37)(a)(ii)(B); or
             1910          (D) a person similar to a person described in Subsections (37)(a)(ii)(A) through (C).
             1911          (b) "Disposable home medical equipment or supplies" does not include:
             1912          (i) a drug;
             1913          (ii) durable medical equipment;
             1914          (iii) a hearing aid;
             1915          (iv) a hearing aid accessory;
             1916          (v) mobility enhancing equipment; or
             1917          (vi) tangible personal property used to correct impaired vision, including:
             1918          (A) eyeglasses; or


             1919          (B) contact lenses.
             1920          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1921      commission may by rule define what constitutes medical equipment or supplies.
             1922          (38) (a) "Drug" means a compound, substance, or preparation, or a component of a
             1923      compound, substance, or preparation that is:
             1924          (i) recognized in:
             1925          (A) the official United States Pharmacopoeia;
             1926          (B) the official Homeopathic Pharmacopoeia of the United States;
             1927          (C) the official National Formulary; or
             1928          (D) a supplement to a publication listed in Subsections (38)(a)(i)(A) through (C);
             1929          (ii) intended for use in the:
             1930          (A) diagnosis of disease;
             1931          (B) cure of disease;
             1932          (C) mitigation of disease;
             1933          (D) treatment of disease; or
             1934          (E) prevention of disease; or
             1935          (iii) intended to affect:
             1936          (A) the structure of the body; or
             1937          (B) any function of the body.
             1938          (b) "Drug" does not include:
             1939          (i) food and food ingredients;
             1940          (ii) a dietary supplement;
             1941          (iii) an alcoholic beverage; or
             1942          (iv) a prosthetic device.
             1943          (39) (a) Except as provided in Subsection (39)(c), "durable medical equipment" means
             1944      equipment that:
             1945          (i) can withstand repeated use;
             1946          (ii) is primarily and customarily used to serve a medical purpose;
             1947          (iii) generally is not useful to a person in the absence of illness or injury; and
             1948          (iv) is not worn in or on the body.
             1949          (b) "Durable medical equipment" includes parts used in the repair or replacement of the


             1950      equipment described in Subsection (39)(a).
             1951          (c) [Notwithstanding Subsection (39)(a), "durable] "Durable medical equipment" does
             1952      not include mobility enhancing equipment.
             1953          (40) "Electronic" means:
             1954          (a) relating to technology; and
             1955          (b) having:
             1956          (i) electrical capabilities;
             1957          (ii) digital capabilities;
             1958          (iii) magnetic capabilities;
             1959          (iv) wireless capabilities;
             1960          (v) optical capabilities;
             1961          (vi) electromagnetic capabilities; or
             1962          (vii) capabilities similar to Subsections (40)(b)(i) through (vi).
             1963          (41) "Employee" is as defined in Section 59-10-401 .
             1964          (42) "Fixed guideway" means a public transit facility that uses and occupies:
             1965          (a) rail for the use of public transit; or
             1966          (b) a separate right-of-way for the use of public transit.
             1967          (43) "Fixed wing turbine powered aircraft" means an aircraft that:
             1968          (a) is powered by turbine engines;
             1969          (b) operates on jet fuel; and
             1970          (c) has wings that are permanently attached to the fuselage of the aircraft.
             1971          (44) "Fixed wireless service" means a telecommunications service that provides radio
             1972      communication between fixed points.
             1973          (45) (a) "Food and food ingredients" means substances:
             1974          (i) regardless of whether the substances are in:
             1975          (A) liquid form;
             1976          (B) concentrated form;
             1977          (C) solid form;
             1978          (D) frozen form;
             1979          (E) dried form; or
             1980          (F) dehydrated form; and


             1981          (ii) that are:
             1982          (A) sold for:
             1983          (I) ingestion by humans; or
             1984          (II) chewing by humans; and
             1985          (B) consumed for the substance's:
             1986          (I) taste; or
             1987          (II) nutritional value.
             1988          (b) "Food and food ingredients" includes an item described in Subsection (86)(b)(iii).
             1989          (c) "Food and food ingredients" does not include:
             1990          (i) an alcoholic beverage;
             1991          (ii) tobacco; or
             1992          (iii) prepared food.
             1993          (46) (a) "Fundraising sales" means sales:
             1994          (i) (A) made by a school; or
             1995          (B) made by a school student;
             1996          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             1997      materials, or provide transportation; and
             1998          (iii) that are part of an officially sanctioned school activity.
             1999          (b) For purposes of Subsection (46)(a)(iii), "officially sanctioned school activity"
             2000      means a school activity:
             2001          (i) that is conducted in accordance with a formal policy adopted by the school or school
             2002      district governing the authorization and supervision of fundraising activities;
             2003          (ii) that does not directly or indirectly compensate an individual teacher or other
             2004      educational personnel by direct payment, commissions, or payment in kind; and
             2005          (iii) the net or gross revenues from which are deposited in a dedicated account
             2006      controlled by the school or school district.
             2007          (47) "Geothermal energy" means energy contained in heat that continuously flows
             2008      outward from the earth that is used as the sole source of energy to produce electricity.
             2009          (48) "Governing board of the agreement" means the governing board of the agreement
             2010      that is:
             2011          (a) authorized to administer the agreement; and


             2012          (b) established in accordance with the agreement.
             2013          (49) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             2014          (i) the executive branch of the state, including all departments, institutions, boards,
             2015      divisions, bureaus, offices, commissions, and committees;
             2016          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             2017      Office of the Court Administrator, and similar administrative units in the judicial branch;
             2018          (iii) the legislative branch of the state, including the House of Representatives, the
             2019      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             2020      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             2021      Analyst;
             2022          (iv) the National Guard;
             2023          (v) an independent entity as defined in Section 63E-1-102 ; or
             2024          (vi) a political subdivision as defined in Section 17B-1-102 .
             2025          (b) "Governmental entity" does not include the state systems of public and higher
             2026      education, including:
             2027          (i) a college campus of the Utah College of Applied Technology;
             2028          (ii) a school;
             2029          (iii) the State Board of Education;
             2030          (iv) the State Board of Regents; or
             2031          (v) an institution of higher education.
             2032          (50) "Hydroelectric energy" means water used as the sole source of energy to produce
             2033      electricity.
             2034          (51) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             2035      other fuels:
             2036          (a) in mining or extraction of minerals;
             2037          (b) in agricultural operations to produce an agricultural product up to the time of
             2038      harvest or placing the agricultural product into a storage facility, including:
             2039          (i) commercial greenhouses;
             2040          (ii) irrigation pumps;
             2041          (iii) farm machinery;
             2042          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not


             2043      registered under Title 41, Chapter 1a, Part 2, Registration; and
             2044          (v) other farming activities;
             2045          (c) in manufacturing tangible personal property at an establishment described in SIC
             2046      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             2047      Executive Office of the President, Office of Management and Budget;
             2048          (d) by a scrap recycler if:
             2049          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             2050      one or more of the following items into prepared grades of processed materials for use in new
             2051      products:
             2052          (A) iron;
             2053          (B) steel;
             2054          (C) nonferrous metal;
             2055          (D) paper;
             2056          (E) glass;
             2057          (F) plastic;
             2058          (G) textile; or
             2059          (H) rubber; and
             2060          (ii) the new products under Subsection (51)(d)(i) would otherwise be made with
             2061      nonrecycled materials; or
             2062          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             2063      cogeneration facility as defined in Section 54-2-1 .
             2064          (52) (a) Except as provided in Subsection (52)(b), "installation charge" means a charge
             2065      for installing:
             2066          (i) tangible personal property; or
             2067          (ii) a product transferred electronically.
             2068          (b) "Installation charge" does not include a charge for:
             2069          (i) repairs or renovations of:
             2070          (A) tangible personal property; or
             2071          (B) a product transferred electronically; or
             2072          (ii) attaching tangible personal property or a product transferred electronically:
             2073          (A) to other tangible personal property; and


             2074          (B) as part of a manufacturing or fabrication process.
             2075          (53) "Institution of higher education" means an institution of higher education listed in
             2076      Section 53B-2-101 .
             2077          (54) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             2078      personal property or a product transferred electronically for:
             2079          (i) (A) a fixed term; or
             2080          (B) an indeterminate term; and
             2081          (ii) consideration.
             2082          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             2083      amount of consideration may be increased or decreased by reference to the amount realized
             2084      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             2085      Code.
             2086          (c) "Lease" or "rental" does not include:
             2087          (i) a transfer of possession or control of property under a security agreement or
             2088      deferred payment plan that requires the transfer of title upon completion of the required
             2089      payments;
             2090          (ii) a transfer of possession or control of property under an agreement that requires the
             2091      transfer of title:
             2092          (A) upon completion of required payments; and
             2093          (B) if the payment of an option price does not exceed the greater of:
             2094          (I) $100; or
             2095          (II) 1% of the total required payments; or
             2096          (iii) providing tangible personal property along with an operator for a fixed period of
             2097      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             2098      designed.
             2099          (d) For purposes of Subsection (54)(c)(iii), an operator is necessary for equipment to
             2100      perform as designed if the operator's duties exceed the:
             2101          (i) set-up of tangible personal property;
             2102          (ii) maintenance of tangible personal property; or
             2103          (iii) inspection of tangible personal property.
             2104          (55) "Life science establishment" means an establishment in this state that is classified


             2105      under the following NAICS codes of the 2007 North American Industry Classification System
             2106      of the federal Executive Office of the President, Office of Management and Budget:
             2107          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
             2108          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
             2109      Manufacturing; or
             2110          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
             2111          (56) "Life science research and development facility" means a facility owned, leased,
             2112      or rented by a life science establishment if research and development is performed in 51% or
             2113      more of the total area of the facility.
             2114          (57) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             2115      if the tangible storage media is not physically transferred to the purchaser.
             2116          (58) "Local taxing jurisdiction" means a:
             2117          (a) county that is authorized to impose an agreement sales and use tax;
             2118          (b) city that is authorized to impose an agreement sales and use tax; or
             2119          (c) town that is authorized to impose an agreement sales and use tax.
             2120          (59) "Manufactured home" is as defined in Section 15A-1-302 .
             2121          (60) For purposes of Section 59-12-104 , "manufacturing facility" means:
             2122          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             2123      Industrial Classification Manual of the federal Executive Office of the President, Office of
             2124      Management and Budget;
             2125          (b) a scrap recycler if:
             2126          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             2127      one or more of the following items into prepared grades of processed materials for use in new
             2128      products:
             2129          (A) iron;
             2130          (B) steel;
             2131          (C) nonferrous metal;
             2132          (D) paper;
             2133          (E) glass;
             2134          (F) plastic;
             2135          (G) textile; or


             2136          (H) rubber; and
             2137          (ii) the new products under Subsection (60)(b)(i) would otherwise be made with
             2138      nonrecycled materials; or
             2139          (c) a cogeneration facility as defined in Section 54-2-1 .
             2140          (61) "Member of the immediate family of the producer" means a person who is related
             2141      to a producer described in Subsection 59-12-104 (20)(a) as a:
             2142          (a) child or stepchild, regardless of whether the child or stepchild is:
             2143          (i) an adopted child or adopted stepchild; or
             2144          (ii) a foster child or foster stepchild;
             2145          (b) grandchild or stepgrandchild;
             2146          (c) grandparent or stepgrandparent;
             2147          (d) nephew or stepnephew;
             2148          (e) niece or stepniece;
             2149          (f) parent or stepparent;
             2150          (g) sibling or stepsibling;
             2151          (h) spouse;
             2152          (i) person who is the spouse of a person described in Subsections (61)(a) through (g);
             2153      or
             2154          (j) person similar to a person described in Subsections (61)(a) through (i) as
             2155      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             2156      Administrative Rulemaking Act.
             2157          (62) "Mobile home" is as defined in Section 15A-1-302 .
             2158          (63) "Mobile telecommunications service" is as defined in the Mobile
             2159      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             2160          (64) (a) "Mobile wireless service" means a telecommunications service, regardless of
             2161      the technology used, if:
             2162          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             2163          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             2164          (iii) the origination point described in Subsection (64)(a)(i) and the termination point
             2165      described in Subsection (64)(a)(ii) are not fixed.
             2166          (b) "Mobile wireless service" includes a telecommunications service that is provided


             2167      by a commercial mobile radio service provider.
             2168          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2169      commission may by rule define "commercial mobile radio service provider."
             2170          (65) (a) Except as provided in Subsection (65)(c), "mobility enhancing equipment"
             2171      means equipment that is:
             2172          (i) primarily and customarily used to provide or increase the ability to move from one
             2173      place to another;
             2174          (ii) appropriate for use in a:
             2175          (A) home; or
             2176          (B) motor vehicle; and
             2177          (iii) not generally used by persons with normal mobility.
             2178          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             2179      the equipment described in Subsection (65)(a).
             2180          (c) [Notwithstanding Subsection (65)(a), "mobility] "Mobility enhancing equipment"
             2181      does not include:
             2182          (i) a motor vehicle;
             2183          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             2184      vehicle manufacturer;
             2185          (iii) durable medical equipment; or
             2186          (iv) a prosthetic device.
             2187          (66) "Model 1 seller" means a seller registered under the agreement that has selected a
             2188      certified service provider as the seller's agent to perform all of the seller's sales and use tax
             2189      functions for agreement sales and use taxes other than the seller's obligation under Section
             2190      59-12-124 to remit a tax on the seller's own purchases.
             2191          (67) "Model 2 seller" means a seller registered under the agreement that:
             2192          (a) except as provided in Subsection (67)(b), has selected a certified automated system
             2193      to perform the seller's sales tax functions for agreement sales and use taxes; and
             2194          (b) [notwithstanding Subsection (67)(a),] retains responsibility for remitting all of the
             2195      sales tax:
             2196          (i) collected by the seller; and
             2197          (ii) to the appropriate local taxing jurisdiction.


             2198          (68) (a) Subject to Subsection (68)(b), "model 3 seller" means a seller registered under
             2199      the agreement that has:
             2200          (i) sales in at least five states that are members of the agreement;
             2201          (ii) total annual sales revenues of at least $500,000,000;
             2202          (iii) a proprietary system that calculates the amount of tax:
             2203          (A) for an agreement sales and use tax; and
             2204          (B) due to each local taxing jurisdiction; and
             2205          (iv) entered into a performance agreement with the governing board of the agreement.
             2206          (b) For purposes of Subsection (68)(a), "model 3 seller" includes an affiliated group of
             2207      sellers using the same proprietary system.
             2208          (69) "Model 4 seller" means a seller that is registered under the agreement and is not a
             2209      model 1 seller, model 2 seller, or model 3 seller.
             2210          (70) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             2211          (71) "Motor vehicle" is as defined in Section 41-1a-102 .
             2212          (72) "Oil sands" means impregnated bituminous sands that:
             2213          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
             2214      other hydrocarbons, or otherwise treated;
             2215          (b) yield mixtures of liquid hydrocarbon; and
             2216          (c) require further processing other than mechanical blending before becoming finished
             2217      petroleum products.
             2218          (73) "Oil shale" means a group of fine black to dark brown shales containing kerogen
             2219      material that yields petroleum upon heating and distillation.
             2220          (74) "Optional computer software maintenance contract" means a computer software
             2221      maintenance contract that a customer is not obligated to purchase as a condition to the retail
             2222      sale of computer software.
             2223          (75) (a) "Other fuels" means products that burn independently to produce heat or
             2224      energy.
             2225          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             2226      personal property.
             2227          (76) (a) "Paging service" means a telecommunications service that provides
             2228      transmission of a coded radio signal for the purpose of activating a specific pager.


             2229          (b) For purposes of Subsection (76)(a), the transmission of a coded radio signal
             2230      includes a transmission by message or sound.
             2231          (77) "Pawnbroker" is as defined in Section 13-32a-102 .
             2232          (78) "Pawn transaction" is as defined in Section 13-32a-102 .
             2233          (79) (a) "Permanently attached to real property" means that for tangible personal
             2234      property attached to real property:
             2235          (i) the attachment of the tangible personal property to the real property:
             2236          (A) is essential to the use of the tangible personal property; and
             2237          (B) suggests that the tangible personal property will remain attached to the real
             2238      property in the same place over the useful life of the tangible personal property; or
             2239          (ii) if the tangible personal property is detached from the real property, the detachment
             2240      would:
             2241          (A) cause substantial damage to the tangible personal property; or
             2242          (B) require substantial alteration or repair of the real property to which the tangible
             2243      personal property is attached.
             2244          (b) "Permanently attached to real property" includes:
             2245          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             2246          (A) essential to the operation of the tangible personal property; and
             2247          (B) attached only to facilitate the operation of the tangible personal property;
             2248          (ii) a temporary detachment of tangible personal property from real property for a
             2249      repair or renovation if the repair or renovation is performed where the tangible personal
             2250      property and real property are located; or
             2251          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             2252      Subsection (79)(c)(iii) or (iv).
             2253          (c) "Permanently attached to real property" does not include:
             2254          (i) the attachment of portable or movable tangible personal property to real property if
             2255      that portable or movable tangible personal property is attached to real property only for:
             2256          (A) convenience;
             2257          (B) stability; or
             2258          (C) for an obvious temporary purpose;
             2259          (ii) the detachment of tangible personal property from real property except for the


             2260      detachment described in Subsection (79)(b)(ii);
             2261          (iii) an attachment of the following tangible personal property to real property if the
             2262      attachment to real property is only through a line that supplies water, electricity, gas,
             2263      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             2264      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             2265          (A) a computer;
             2266          (B) a telephone;
             2267          (C) a television; or
             2268          (D) tangible personal property similar to Subsections (79)(c)(iii)(A) through (C) as
             2269      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             2270      Administrative Rulemaking Act; or
             2271          (iv) an item listed in Subsection [(117)] (119)(c).
             2272          (80) "Person" includes any individual, firm, partnership, joint venture, association,
             2273      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             2274      municipality, district, or other local governmental entity of the state, or any group or
             2275      combination acting as a unit.
             2276          (81) "Place of primary use":
             2277          (a) for telecommunications service other than mobile telecommunications service,
             2278      means the street address representative of where the customer's use of the telecommunications
             2279      service primarily occurs, which shall be:
             2280          (i) the residential street address of the customer; or
             2281          (ii) the primary business street address of the customer; or
             2282          (b) for mobile telecommunications service, is as defined in the Mobile
             2283      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             2284          (82) (a) "Postpaid calling service" means a telecommunications service a person
             2285      obtains by making a payment on a call-by-call basis:
             2286          (i) through the use of a:
             2287          (A) bank card;
             2288          (B) credit card;
             2289          (C) debit card; or
             2290          (D) travel card; or


             2291          (ii) by a charge made to a telephone number that is not associated with the origination
             2292      or termination of the telecommunications service.
             2293          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             2294      service, that would be a prepaid wireless calling service if the service were exclusively a
             2295      telecommunications service.
             2296          (83) "Postproduction" means an activity related to the finishing or duplication of a
             2297      medium described in Subsection 59-12-104 (54)(a).
             2298          (84) "Prepaid calling service" means a telecommunications service:
             2299          (a) that allows a purchaser access to telecommunications service that is exclusively
             2300      telecommunications service;
             2301          (b) that:
             2302          (i) is paid for in advance; and
             2303          (ii) enables the origination of a call using an:
             2304          (A) access number; or
             2305          (B) authorization code;
             2306          (c) that is dialed:
             2307          (i) manually; or
             2308          (ii) electronically; and
             2309          (d) sold in predetermined units or dollars that decline:
             2310          (i) by a known amount; and
             2311          (ii) with use.
             2312          (85) "Prepaid wireless calling service" means a telecommunications service:
             2313          (a) that provides the right to utilize:
             2314          (i) mobile wireless service; and
             2315          (ii) other service that is not a telecommunications service, including:
             2316          (A) the download of a product transferred electronically;
             2317          (B) a content service; or
             2318          (C) an ancillary service;
             2319          (b) that:
             2320          (i) is paid for in advance; and
             2321          (ii) enables the origination of a call using an:


             2322          (A) access number; or
             2323          (B) authorization code;
             2324          (c) that is dialed:
             2325          (i) manually; or
             2326          (ii) electronically; and
             2327          (d) sold in predetermined units or dollars that decline:
             2328          (i) by a known amount; and
             2329          (ii) with use.
             2330          (86) (a) "Prepared food" means:
             2331          (i) food:
             2332          (A) sold in a heated state; or
             2333          (B) heated by a seller;
             2334          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             2335      item; or
             2336          (iii) except as provided in Subsection (86)(c), food sold with an eating utensil provided
             2337      by the seller, including a:
             2338          (A) plate;
             2339          (B) knife;
             2340          (C) fork;
             2341          (D) spoon;
             2342          (E) glass;
             2343          (F) cup;
             2344          (G) napkin; or
             2345          (H) straw.
             2346          (b) "Prepared food" does not include:
             2347          (i) food that a seller only:
             2348          (A) cuts;
             2349          (B) repackages; or
             2350          (C) pasteurizes; or
             2351          (ii) (A) the following:
             2352          (I) raw egg;


             2353          (II) raw fish;
             2354          (III) raw meat;
             2355          (IV) raw poultry; or
             2356          (V) a food containing an item described in Subsections (86)(b)(ii)(A)(I) through (IV);
             2357      and
             2358          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             2359      Food and Drug Administration's Food Code that a consumer cook the items described in
             2360      Subsection (86)(b)(ii)(A) to prevent food borne illness; or
             2361          (iii) the following if sold without eating utensils provided by the seller:
             2362          (A) food and food ingredients sold by a seller if the seller's proper primary
             2363      classification under the 2002 North American Industry Classification System of the federal
             2364      Executive Office of the President, Office of Management and Budget, is manufacturing in
             2365      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             2366      Manufacturing;
             2367          (B) food and food ingredients sold in an unheated state:
             2368          (I) by weight or volume; and
             2369          (II) as a single item; or
             2370          (C) a bakery item, including:
             2371          (I) a bagel;
             2372          (II) a bar;
             2373          (III) a biscuit;
             2374          (IV) bread;
             2375          (V) a bun;
             2376          (VI) a cake;
             2377          (VII) a cookie;
             2378          (VIII) a croissant;
             2379          (IX) a danish;
             2380          (X) a donut;
             2381          (XI) a muffin;
             2382          (XII) a pastry;
             2383          (XIII) a pie;


             2384          (XIV) a roll;
             2385          (XV) a tart;
             2386          (XVI) a torte; or
             2387          (XVII) a tortilla.
             2388          (c) [Notwithstanding Subsection (86)(a)(iii), an] An eating utensil provided by the
             2389      seller does not include the following used to transport the food:
             2390          (i) a container; or
             2391          (ii) packaging.
             2392          (87) "Prescription" means an order, formula, or recipe that is issued:
             2393          (a) (i) orally;
             2394          (ii) in writing;
             2395          (iii) electronically; or
             2396          (iv) by any other manner of transmission; and
             2397          (b) by a licensed practitioner authorized by the laws of a state.
             2398          (88) (a) Except as provided in Subsection (88)(b)(ii) or (iii), "prewritten computer
             2399      software" means computer software that is not designed and developed:
             2400          (i) by the author or other creator of the computer software; and
             2401          (ii) to the specifications of a specific purchaser.
             2402          (b) "Prewritten computer software" includes:
             2403          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             2404      software is not designed and developed:
             2405          (A) by the author or other creator of the computer software; and
             2406          (B) to the specifications of a specific purchaser;
             2407          (ii) [notwithstanding Subsection (88)(a),] computer software designed and developed
             2408      by the author or other creator of the computer software to the specifications of a specific
             2409      purchaser if the computer software is sold to a person other than the purchaser; or
             2410          (iii) [notwithstanding Subsection (88)(a) and] except as provided in Subsection (88)(c),
             2411      prewritten computer software or a prewritten portion of prewritten computer software:
             2412          (A) that is modified or enhanced to any degree; and
             2413          (B) if the modification or enhancement described in Subsection (88)(b)(iii)(A) is
             2414      designed and developed to the specifications of a specific purchaser.


             2415          (c) [Notwithstanding Subsection (88)(b)(iii), "prewritten] "Prewritten computer
             2416      software" does not include a modification or enhancement described in Subsection (88)(b)(iii)
             2417      if the charges for the modification or enhancement are:
             2418          (i) reasonable; and
             2419          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), separately stated on the
             2420      invoice or other statement of price provided to the purchaser at the time of sale or later, as
             2421      demonstrated by:
             2422          (A) the books and records the seller keeps at the time of the transaction in the regular
             2423      course of business, including books and records the seller keeps at the time of the transaction in
             2424      the regular course of business for nontax purposes;
             2425          (B) a preponderance of the facts and circumstances at the time of the transaction; and
             2426          (C) the understanding of all of the parties to the transaction.
             2427          (89) (a) "Private communication service" means a telecommunications service:
             2428          (i) that entitles a customer to exclusive or priority use of one or more communications
             2429      channels between or among termination points; and
             2430          (ii) regardless of the manner in which the one or more communications channels are
             2431      connected.
             2432          (b) "Private communications service" includes the following provided in connection
             2433      with the use of one or more communications channels:
             2434          (i) an extension line;
             2435          (ii) a station;
             2436          (iii) switching capacity; or
             2437          (iv) another associated service that is provided in connection with the use of one or
             2438      more communications channels as defined in Section 59-12-215 .
             2439          (90) (a) Except as provided in Subsection (90)(b), "product transferred electronically"
             2440      means a product transferred electronically that would be subject to a tax under this chapter if
             2441      that product was transferred in a manner other than electronically.
             2442          (b) "Product transferred electronically" does not include:
             2443          (i) an ancillary service;
             2444          (ii) computer software; or
             2445          (iii) a telecommunications service.


             2446          (91) (a) "Prosthetic device" means a device that is worn on or in the body to:
             2447          (i) artificially replace a missing portion of the body;
             2448          (ii) prevent or correct a physical deformity or physical malfunction; or
             2449          (iii) support a weak or deformed portion of the body.
             2450          (b) "Prosthetic device" includes:
             2451          (i) parts used in the repairs or renovation of a prosthetic device;
             2452          (ii) replacement parts for a prosthetic device;
             2453          (iii) a dental prosthesis; or
             2454          (iv) a hearing aid.
             2455          (c) "Prosthetic device" does not include:
             2456          (i) corrective eyeglasses; or
             2457          (ii) contact lenses.
             2458          (92) (a) "Protective equipment" means an item:
             2459          (i) for human wear; and
             2460          (ii) that is:
             2461          (A) designed as protection:
             2462          (I) to the wearer against injury or disease; or
             2463          (II) against damage or injury of other persons or property; and
             2464          (B) not suitable for general use.
             2465          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2466      commission shall make rules:
             2467          (i) listing the items that constitute "protective equipment"; and
             2468          (ii) that are consistent with the list of items that constitute "protective equipment"
             2469      under the agreement.
             2470          (93) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             2471      printed matter, other than a photocopy:
             2472          (i) regardless of:
             2473          (A) characteristics;
             2474          (B) copyright;
             2475          (C) form;
             2476          (D) format;


             2477          (E) method of reproduction; or
             2478          (F) source; and
             2479          (ii) made available in printed or electronic format.
             2480          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2481      commission may by rule define the term "photocopy."
             2482          (94) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             2483          (i) valued in money; and
             2484          (ii) for which tangible personal property, a product transferred electronically, or
             2485      services are:
             2486          (A) sold;
             2487          (B) leased; or
             2488          (C) rented.
             2489          (b) "Purchase price" and "sales price" include:
             2490          (i) the seller's cost of the tangible personal property, a product transferred
             2491      electronically, or services sold;
             2492          (ii) expenses of the seller, including:
             2493          (A) the cost of materials used;
             2494          (B) a labor cost;
             2495          (C) a service cost;
             2496          (D) interest;
             2497          (E) a loss;
             2498          (F) the cost of transportation to the seller; or
             2499          (G) a tax imposed on the seller;
             2500          (iii) a charge by the seller for any service necessary to complete the sale; or
             2501          (iv) consideration a seller receives from a person other than the purchaser if:
             2502          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             2503      and
             2504          (II) the consideration described in Subsection (94)(b)(iv)(A)(I) is directly related to a
             2505      price reduction or discount on the sale;
             2506          (B) the seller has an obligation to pass the price reduction or discount through to the
             2507      purchaser;


             2508          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             2509      the seller at the time of the sale to the purchaser; and
             2510          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             2511      seller to claim a price reduction or discount; and
             2512          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             2513      coupon, or other documentation with the understanding that the person other than the seller
             2514      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             2515          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             2516      organization allowed a price reduction or discount, except that a preferred customer card that is
             2517      available to any patron of a seller does not constitute membership in a group or organization
             2518      allowed a price reduction or discount; or
             2519          (III) the price reduction or discount is identified as a third party price reduction or
             2520      discount on the:
             2521          (Aa) invoice the purchaser receives; or
             2522          (Bb) certificate, coupon, or other documentation the purchaser presents.
             2523          (c) "Purchase price" and "sales price" do not include:
             2524          (i) a discount:
             2525          (A) in a form including:
             2526          (I) cash;
             2527          (II) term; or
             2528          (III) coupon;
             2529          (B) that is allowed by a seller;
             2530          (C) taken by a purchaser on a sale; and
             2531          (D) that is not reimbursed by a third party; or
             2532          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), the following if separately
             2533      stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
             2534      sale or later, as demonstrated by the books and records the seller keeps at the time of the
             2535      transaction in the regular course of business, including books and records the seller keeps at the
             2536      time of the transaction in the regular course of business for nontax purposes, by a
             2537      preponderance of the facts and circumstances at the time of the transaction, and by the
             2538      understanding of all of the parties to the transaction:


             2539          (A) the following from credit extended on the sale of tangible personal property or
             2540      services:
             2541          (I) a carrying charge;
             2542          (II) a financing charge; or
             2543          (III) an interest charge;
             2544          (B) a delivery charge;
             2545          (C) an installation charge;
             2546          (D) a manufacturer rebate on a motor vehicle; or
             2547          (E) a tax or fee legally imposed directly on the consumer.
             2548          (95) "Purchaser" means a person to whom:
             2549          (a) a sale of tangible personal property is made;
             2550          (b) a product is transferred electronically; or
             2551          (c) a service is furnished.
             2552          (96) "Regularly rented" means:
             2553          (a) rented to a guest for value three or more times during a calendar year; or
             2554          (b) advertised or held out to the public as a place that is regularly rented to guests for
             2555      value.
             2556          (97) "Rental" is as defined in Subsection (54).
             2557          (98) (a) Except as provided in Subsection (98)(b), "repairs or renovations of tangible
             2558      personal property" means:
             2559          (i) a repair or renovation of tangible personal property that is not permanently attached
             2560      to real property; or
             2561          (ii) attaching tangible personal property or a product transferred electronically to other
             2562      tangible personal property or detaching tangible personal property or a product transferred
             2563      electronically from other tangible personal property if:
             2564          (A) the other tangible personal property to which the tangible personal property or
             2565      product transferred electronically is attached or from which the tangible personal property or
             2566      product transferred electronically is detached is not permanently attached to real property; and
             2567          (B) the attachment of tangible personal property or a product transferred electronically
             2568      to other tangible personal property or detachment of tangible personal property or a product
             2569      transferred electronically from other tangible personal property is made in conjunction with a


             2570      repair or replacement of tangible personal property or a product transferred electronically.
             2571          (b) "Repairs or renovations of tangible personal property" does not include:
             2572          (i) attaching prewritten computer software to other tangible personal property if the
             2573      other tangible personal property to which the prewritten computer software is attached is not
             2574      permanently attached to real property; or
             2575          (ii) detaching prewritten computer software from other tangible personal property if the
             2576      other tangible personal property from which the prewritten computer software is detached is
             2577      not permanently attached to real property.
             2578          (99) "Research and development" means the process of inquiry or experimentation
             2579      aimed at the discovery of facts, devices, technologies, or applications and the process of
             2580      preparing those devices, technologies, or applications for marketing.
             2581          (100) (a) "Residential telecommunications services" means a telecommunications
             2582      service or an ancillary service that is provided to an individual for personal use:
             2583          (i) at a residential address; or
             2584          (ii) at an institution, including a nursing home or a school, if the telecommunications
             2585      service or ancillary service is provided to and paid for by the individual residing at the
             2586      institution rather than the institution.
             2587          (b) For purposes of Subsection (100)(a)(i), a residential address includes an:
             2588          (i) apartment; or
             2589          (ii) other individual dwelling unit.
             2590          (101) "Residential use" means the use in or around a home, apartment building,
             2591      sleeping quarters, and similar facilities or accommodations.
             2592          (102) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             2593      than:
             2594          (a) resale;
             2595          (b) sublease; or
             2596          (c) subrent.
             2597          (103) (a) "Retailer" means any person engaged in a regularly organized business in
             2598      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             2599      who is selling to the user or consumer and not for resale.
             2600          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly


             2601      engaged in the business of selling to users or consumers within the state.
             2602          (104) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             2603      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             2604      Subsection 59-12-103 (1), for consideration.
             2605          (b) "Sale" includes:
             2606          (i) installment and credit sales;
             2607          (ii) any closed transaction constituting a sale;
             2608          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             2609      chapter;
             2610          (iv) any transaction if the possession of property is transferred but the seller retains the
             2611      title as security for the payment of the price; and
             2612          (v) any transaction under which right to possession, operation, or use of any article of
             2613      tangible personal property is granted under a lease or contract and the transfer of possession
             2614      would be taxable if an outright sale were made.
             2615          (105) "Sale at retail" is as defined in Subsection (102).
             2616          (106) "Sale-leaseback transaction" means a transaction by which title to tangible
             2617      personal property or a product transferred electronically that is subject to a tax under this
             2618      chapter is transferred:
             2619          (a) by a purchaser-lessee;
             2620          (b) to a lessor;
             2621          (c) for consideration; and
             2622          (d) if:
             2623          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             2624      of the tangible personal property or product transferred electronically;
             2625          (ii) the sale of the tangible personal property or product transferred electronically to the
             2626      lessor is intended as a form of financing:
             2627          (A) for the tangible personal property or product transferred electronically; and
             2628          (B) to the purchaser-lessee; and
             2629          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             2630      is required to:
             2631          (A) capitalize the tangible personal property or product transferred electronically for


             2632      financial reporting purposes; and
             2633          (B) account for the lease payments as payments made under a financing arrangement.
             2634          (107) "Sales price" is as defined in Subsection (94).
             2635          (108) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             2636      amounts charged by a school:
             2637          (i) sales that are directly related to the school's educational functions or activities
             2638      including:
             2639          (A) the sale of:
             2640          (I) textbooks;
             2641          (II) textbook fees;
             2642          (III) laboratory fees;
             2643          (IV) laboratory supplies; or
             2644          (V) safety equipment;
             2645          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             2646      that:
             2647          (I) a student is specifically required to wear as a condition of participation in a
             2648      school-related event or school-related activity; and
             2649          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             2650      place of ordinary clothing;
             2651          (C) sales of the following if the net or gross revenues generated by the sales are
             2652      deposited into a school district fund or school fund dedicated to school meals:
             2653          (I) food and food ingredients; or
             2654          (II) prepared food; or
             2655          (D) transportation charges for official school activities; or
             2656          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             2657      event or school-related activity.
             2658          (b) "Sales relating to schools" does not include:
             2659          (i) bookstore sales of items that are not educational materials or supplies;
             2660          (ii) except as provided in Subsection (108)(a)(i)(B):
             2661          (A) clothing;
             2662          (B) clothing accessories or equipment;


             2663          (C) protective equipment; or
             2664          (D) sports or recreational equipment; or
             2665          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             2666      event or school-related activity if the amounts paid or charged are passed through to a person:
             2667          (A) other than a:
             2668          (I) school;
             2669          (II) nonprofit organization authorized by a school board or a governing body of a
             2670      private school to organize and direct a competitive secondary school activity; or
             2671          (III) nonprofit association authorized by a school board or a governing body of a
             2672      private school to organize and direct a competitive secondary school activity; and
             2673          (B) that is required to collect sales and use taxes under this chapter.
             2674          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2675      commission may make rules defining the term "passed through."
             2676          (109) For purposes of this section and Section 59-12-104 , "school":
             2677          (a) means:
             2678          (i) an elementary school or a secondary school that:
             2679          (A) is a:
             2680          (I) public school; or
             2681          (II) private school; and
             2682          (B) provides instruction for one or more grades kindergarten through 12; or
             2683          (ii) a public school district; and
             2684          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             2685          (110) "Seller" means a person that makes a sale, lease, or rental of:
             2686          (a) tangible personal property;
             2687          (b) a product transferred electronically; or
             2688          (c) a service.
             2689          (111) (a) "Semiconductor fabricating, processing, research, or development materials"
             2690      means tangible personal property or a product transferred electronically if the tangible personal
             2691      property or product transferred electronically is:
             2692          (i) used primarily in the process of:
             2693          (A) (I) manufacturing a semiconductor;


             2694          (II) fabricating a semiconductor; or
             2695          (III) research or development of a:
             2696          (Aa) semiconductor; or
             2697          (Bb) semiconductor manufacturing process; or
             2698          (B) maintaining an environment suitable for a semiconductor; or
             2699          (ii) consumed primarily in the process of:
             2700          (A) (I) manufacturing a semiconductor;
             2701          (II) fabricating a semiconductor; or
             2702          (III) research or development of a:
             2703          (Aa) semiconductor; or
             2704          (Bb) semiconductor manufacturing process; or
             2705          (B) maintaining an environment suitable for a semiconductor.
             2706          (b) "Semiconductor fabricating, processing, research, or development materials"
             2707      includes:
             2708          (i) parts used in the repairs or renovations of tangible personal property or a product
             2709      transferred electronically described in Subsection (111)(a); or
             2710          (ii) a chemical, catalyst, or other material used to:
             2711          (A) produce or induce in a semiconductor a:
             2712          (I) chemical change; or
             2713          (II) physical change;
             2714          (B) remove impurities from a semiconductor; or
             2715          (C) improve the marketable condition of a semiconductor.
             2716          (112) "Senior citizen center" means a facility having the primary purpose of providing
             2717      services to the aged as defined in Section 62A-3-101 .
             2718          (113) (a) Subject to Subsections (113)(b) and (c), "short-term lodging consumable"
             2719      means tangible personal property that:
             2720          (i) a business that provides accommodations and services described in Subsection
             2721      59-12-103 (1)(i) purchases as part of a transaction to provide the accommodations and services
             2722      to a purchaser;
             2723          (ii) is intended to be consumed by the purchaser; and
             2724          (iii) is:


             2725          (A) included in the purchase price of the accommodations and services; and
             2726          (B) not separately stated on an invoice, bill of sale, or other similar document provided
             2727      to the purchaser.
             2728          (b) "Short-term lodging consumable" includes:
             2729          (i) a beverage;
             2730          (ii) a brush or comb;
             2731          (iii) a cosmetic;
             2732          (iv) a hair care product;
             2733          (v) lotion;
             2734          (vi) a magazine;
             2735          (vii) makeup;
             2736          (viii) a meal;
             2737          (ix) mouthwash;
             2738          (x) nail polish remover;
             2739          (xi) a newspaper;
             2740          (xii) a notepad;
             2741          (xiii) a pen;
             2742          (xiv) a pencil;
             2743          (xv) a razor;
             2744          (xvi) saline solution;
             2745          (xvii) a sewing kit;
             2746          (xviii) shaving cream;
             2747          (xix) a shoe shine kit;
             2748          (xx) a shower cap;
             2749          (xxi) a snack item;
             2750          (xxii) soap;
             2751          (xxiii) toilet paper;
             2752          (xxiv) a toothbrush;
             2753          (xxv) toothpaste; or
             2754          (xxvi) an item similar to Subsections (113)(b)(i) through (xxv) as the commission may
             2755      provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative


             2756      Rulemaking Act.
             2757          (c) "Short-term lodging consumable" does not include:
             2758          (i) tangible personal property that is cleaned or washed to allow the tangible personal
             2759      property to be reused; or
             2760          (ii) a product transferred electronically.
             2761          [(113)] (114) "Simplified electronic return" means the electronic return:
             2762          (a) described in Section 318(C) of the agreement; and
             2763          (b) approved by the governing board of the agreement.
             2764          [(114)] (115) "Solar energy" means the sun used as the sole source of energy for
             2765      producing electricity.
             2766          [(115)] (116) (a) "Sports or recreational equipment" means an item:
             2767          (i) designed for human use; and
             2768          (ii) that is:
             2769          (A) worn in conjunction with:
             2770          (I) an athletic activity; or
             2771          (II) a recreational activity; and
             2772          (B) not suitable for general use.
             2773          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2774      commission shall make rules:
             2775          (i) listing the items that constitute "sports or recreational equipment"; and
             2776          (ii) that are consistent with the list of items that constitute "sports or recreational
             2777      equipment" under the agreement.
             2778          [(116)] (117) "State" means the state of Utah, its departments, and agencies.
             2779          [(117)] (118) "Storage" means any keeping or retention of tangible personal property or
             2780      any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
             2781      except sale in the regular course of business.
             2782          [(118)] (119) (a) Except as provided in Subsection [(118)] (119)(d) or (e), "tangible
             2783      personal property" means personal property that:
             2784          (i) may be:
             2785          (A) seen;
             2786          (B) weighed;


             2787          (C) measured;
             2788          (D) felt; or
             2789          (E) touched; or
             2790          (ii) is in any manner perceptible to the senses.
             2791          (b) "Tangible personal property" includes:
             2792          (i) electricity;
             2793          (ii) water;
             2794          (iii) gas;
             2795          (iv) steam; or
             2796          (v) prewritten computer software, regardless of the manner in which the prewritten
             2797      computer software is transferred.
             2798          (c) "Tangible personal property" includes the following regardless of whether the item
             2799      is attached to real property:
             2800          (i) a dishwasher;
             2801          (ii) a dryer;
             2802          (iii) a freezer;
             2803          (iv) a microwave;
             2804          (v) a refrigerator;
             2805          (vi) a stove;
             2806          (vii) a washer; or
             2807          (viii) an item similar to Subsections [(118)] (119)(c)(i) through (vii) as determined by
             2808      the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             2809      Rulemaking Act.
             2810          (d) "Tangible personal property" does not include a product that is transferred
             2811      electronically.
             2812          (e) "Tangible personal property" does not include the following if attached to real
             2813      property, regardless of whether the attachment to real property is only through a line that
             2814      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             2815      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             2816      Rulemaking Act:
             2817          (i) a hot water heater;


             2818          (ii) a water filtration system; or
             2819          (iii) a water softener system.
             2820          [(119)] (120) (a) "Telecommunications enabling or facilitating equipment, machinery,
             2821      or software" means an item listed in Subsection [(119)] (120)(b) if that item is purchased or
             2822      leased primarily to enable or facilitate one or more of the following to function:
             2823          (i) telecommunications switching or routing equipment, machinery, or software; or
             2824          (ii) telecommunications transmission equipment, machinery, or software.
             2825          (b) The following apply to Subsection [(119)] (120)(a):
             2826          (i) a pole;
             2827          (ii) software;
             2828          (iii) a supplementary power supply;
             2829          (iv) temperature or environmental equipment or machinery;
             2830          (v) test equipment;
             2831          (vi) a tower; or
             2832          (vii) equipment, machinery, or software that functions similarly to an item listed in
             2833      Subsections [(119)] (120)(b)(i) through (vi) as determined by the commission by rule made in
             2834      accordance with Subsection [(119)] (120)(c).
             2835          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2836      commission may by rule define what constitutes equipment, machinery, or software that
             2837      functions similarly to an item listed in Subsections [(119)] (120)(b)(i) through (vi).
             2838          [(120)] (121) "Telecommunications equipment, machinery, or software required for
             2839      911 service" means equipment, machinery, or software that is required to comply with 47
             2840      C.F.R. Sec. 20.18.
             2841          [(121)] (122) "Telecommunications maintenance or repair equipment, machinery, or
             2842      software" means equipment, machinery, or software purchased or leased primarily to maintain
             2843      or repair one or more of the following, regardless of whether the equipment, machinery, or
             2844      software is purchased or leased as a spare part or as an upgrade or modification to one or more
             2845      of the following:
             2846          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             2847          (b) telecommunications switching or routing equipment, machinery, or software; or
             2848          (c) telecommunications transmission equipment, machinery, or software.


             2849          [(122)] (123) (a) "Telecommunications service" means the electronic conveyance,
             2850      routing, or transmission of audio, data, video, voice, or any other information or signal to a
             2851      point, or among or between points.
             2852          (b) "Telecommunications service" includes:
             2853          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             2854      processing application is used to act:
             2855          (A) on the code, form, or protocol of the content;
             2856          (B) for the purpose of electronic conveyance, routing, or transmission; and
             2857          (C) regardless of whether the service:
             2858          (I) is referred to as voice over Internet protocol service; or
             2859          (II) is classified by the Federal Communications Commission as enhanced or value
             2860      added;
             2861          (ii) an 800 service;
             2862          (iii) a 900 service;
             2863          (iv) a fixed wireless service;
             2864          (v) a mobile wireless service;
             2865          (vi) a postpaid calling service;
             2866          (vii) a prepaid calling service;
             2867          (viii) a prepaid wireless calling service; or
             2868          (ix) a private communications service.
             2869          (c) "Telecommunications service" does not include:
             2870          (i) advertising, including directory advertising;
             2871          (ii) an ancillary service;
             2872          (iii) a billing and collection service provided to a third party;
             2873          (iv) a data processing and information service if:
             2874          (A) the data processing and information service allows data to be:
             2875          (I) (Aa) acquired;
             2876          (Bb) generated;
             2877          (Cc) processed;
             2878          (Dd) retrieved; or
             2879          (Ee) stored; and


             2880          (II) delivered by an electronic transmission to a purchaser; and
             2881          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             2882      or information;
             2883          (v) installation or maintenance of the following on a customer's premises:
             2884          (A) equipment; or
             2885          (B) wiring;
             2886          (vi) Internet access service;
             2887          (vii) a paging service;
             2888          (viii) a product transferred electronically, including:
             2889          (A) music;
             2890          (B) reading material;
             2891          (C) a ring tone;
             2892          (D) software; or
             2893          (E) video;
             2894          (ix) a radio and television audio and video programming service:
             2895          (A) regardless of the medium; and
             2896          (B) including:
             2897          (I) furnishing conveyance, routing, or transmission of a television audio and video
             2898      programming service by a programming service provider;
             2899          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             2900          (III) audio and video programming services delivered by a commercial mobile radio
             2901      service provider as defined in 47 C.F.R. Sec. 20.3;
             2902          (x) a value-added nonvoice data service; or
             2903          (xi) tangible personal property.
             2904          [(123)] (124) (a) "Telecommunications service provider" means a person that:
             2905          (i) owns, controls, operates, or manages a telecommunications service; and
             2906          (ii) engages in an activity described in Subsection [(123)] (124)(a)(i) for the shared use
             2907      with or resale to any person of the telecommunications service.
             2908          (b) A person described in Subsection [(123)] (124)(a) is a telecommunications service
             2909      provider whether or not the Public Service Commission of Utah regulates:
             2910          (i) that person; or


             2911          (ii) the telecommunications service that the person owns, controls, operates, or
             2912      manages.
             2913          [(124)] (125) (a) "Telecommunications switching or routing equipment, machinery, or
             2914      software" means an item listed in Subsection [(124)] (125)(b) if that item is purchased or
             2915      leased primarily for switching or routing:
             2916          (i) an ancillary service;
             2917          (ii) data communications;
             2918          (iii) voice communications; or
             2919          (iv) telecommunications service.
             2920          (b) The following apply to Subsection [(124)] (125)(a):
             2921          (i) a bridge;
             2922          (ii) a computer;
             2923          (iii) a cross connect;
             2924          (iv) a modem;
             2925          (v) a multiplexer;
             2926          (vi) plug in circuitry;
             2927          (vii) a router;
             2928          (viii) software;
             2929          (ix) a switch; or
             2930          (x) equipment, machinery, or software that functions similarly to an item listed in
             2931      Subsections [(124)] (125)(b)(i) through (ix) as determined by the commission by rule made in
             2932      accordance with Subsection [(124)] (125)(c).
             2933          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2934      commission may by rule define what constitutes equipment, machinery, or software that
             2935      functions similarly to an item listed in Subsections [(124)] (125)(b)(i) through (ix).
             2936          [(125)] (126) (a) "Telecommunications transmission equipment, machinery, or
             2937      software" means an item listed in Subsection [(125)] (126)(b) if that item is purchased or
             2938      leased primarily for sending, receiving, or transporting:
             2939          (i) an ancillary service;
             2940          (ii) data communications;
             2941          (iii) voice communications; or


             2942          (iv) telecommunications service.
             2943          (b) The following apply to Subsection [(125)] (126)(a):
             2944          (i) an amplifier;
             2945          (ii) a cable;
             2946          (iii) a closure;
             2947          (iv) a conduit;
             2948          (v) a controller;
             2949          (vi) a duplexer;
             2950          (vii) a filter;
             2951          (viii) an input device;
             2952          (ix) an input/output device;
             2953          (x) an insulator;
             2954          (xi) microwave machinery or equipment;
             2955          (xii) an oscillator;
             2956          (xiii) an output device;
             2957          (xiv) a pedestal;
             2958          (xv) a power converter;
             2959          (xvi) a power supply;
             2960          (xvii) a radio channel;
             2961          (xviii) a radio receiver;
             2962          (xix) a radio transmitter;
             2963          (xx) a repeater;
             2964          (xxi) software;
             2965          (xxii) a terminal;
             2966          (xxiii) a timing unit;
             2967          (xxiv) a transformer;
             2968          (xxv) a wire; or
             2969          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             2970      Subsections [(125)] (126)(b)(i) through (xxv) as determined by the commission by rule made in
             2971      accordance with Subsection [(125)] (126)(c).
             2972          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the


             2973      commission may by rule define what constitutes equipment, machinery, or software that
             2974      functions similarly to an item listed in Subsections [(125)] (126)(b)(i) through (xxv).
             2975          [(126)] (127) (a) "Textbook for a higher education course" means a textbook or other
             2976      printed material that is required for a course:
             2977          (i) offered by an institution of higher education; and
             2978          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             2979          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             2980          [(127)] (128) "Tobacco" means:
             2981          (a) a cigarette;
             2982          (b) a cigar;
             2983          (c) chewing tobacco;
             2984          (d) pipe tobacco; or
             2985          (e) any other item that contains tobacco.
             2986          [(128)] (129) "Unassisted amusement device" means an amusement device, skill
             2987      device, or ride device that is started and stopped by the purchaser or renter of the right to use or
             2988      operate the amusement device, skill device, or ride device.
             2989          [(129)] (130) (a) "Use" means the exercise of any right or power over tangible personal
             2990      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             2991      incident to the ownership or the leasing of that tangible personal property, product transferred
             2992      electronically, or service.
             2993          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             2994      property, a product transferred electronically, or a service in the regular course of business and
             2995      held for resale.
             2996          [(130)] (131) "Value-added nonvoice data service" means a service:
             2997          (a) that otherwise meets the definition of a telecommunications service except that a
             2998      computer processing application is used to act primarily for a purpose other than conveyance,
             2999      routing, or transmission; and
             3000          (b) with respect to which a computer processing application is used to act on data or
             3001      information:
             3002          (i) code;
             3003          (ii) content;


             3004          (iii) form; or
             3005          (iv) protocol.
             3006          [(131)] (132) (a) Subject to Subsection [(131)] (132)(b), "vehicle" means the following
             3007      that are required to be titled, registered, or titled and registered:
             3008          (i) an aircraft as defined in Section 72-10-102 ;
             3009          (ii) a vehicle as defined in Section 41-1a-102 ;
             3010          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             3011          (iv) a vessel as defined in Section 41-1a-102 .
             3012          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             3013          (i) a vehicle described in Subsection [(131)] (132)(a); or
             3014          (ii) (A) a locomotive;
             3015          (B) a freight car;
             3016          (C) railroad work equipment; or
             3017          (D) other railroad rolling stock.
             3018          [(132)] (133) "Vehicle dealer" means a person engaged in the business of buying,
             3019      selling, or exchanging a vehicle as defined in Subsection [(131)] (132).
             3020          [(133)] (134) (a) "Vertical service" means an ancillary service that:
             3021          (i) is offered in connection with one or more telecommunications services; and
             3022          (ii) offers an advanced calling feature that allows a customer to:
             3023          (A) identify a caller; and
             3024          (B) manage multiple calls and call connections.
             3025          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             3026      conference bridging service.
             3027          [(134)] (135) (a) "Voice mail service" means an ancillary service that enables a
             3028      customer to receive, send, or store a recorded message.
             3029          (b) "Voice mail service" does not include a vertical service that a customer is required
             3030      to have in order to utilize a voice mail service.
             3031          [(135)] (136) (a) Except as provided in Subsection [(135)] (136)(b), "waste energy
             3032      facility" means a facility that generates electricity:
             3033          (i) using as the primary source of energy waste materials that would be placed in a
             3034      landfill or refuse pit if it were not used to generate electricity, including:


             3035          (A) tires;
             3036          (B) waste coal;
             3037          (C) oil shale; or
             3038          (D) municipal solid waste; and
             3039          (ii) in amounts greater than actually required for the operation of the facility.
             3040          (b) "Waste energy facility" does not include a facility that incinerates:
             3041          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
             3042          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             3043          [(136)] (137) "Watercraft" means a vessel as defined in Section 73-18-2 .
             3044          [(137)] (138) "Wind energy" means wind used as the sole source of energy to produce
             3045      electricity.
             3046          [(138)] (139) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
             3047      geographic location by the United States Postal Service.
             3048          Section 3. Section 59-12-104 is amended to read:
             3049           59-12-104. Exemptions.
             3050          The following sales and uses are exempt from the taxes imposed by this chapter:
             3051          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             3052      under Chapter 13, Motor and Special Fuel Tax Act;
             3053          (2) subject to Section 59-12-104.6 , sales to the state, its institutions, and its political
             3054      subdivisions; however, this exemption does not apply to sales of:
             3055          (a) construction materials except:
             3056          (i) construction materials purchased by or on behalf of institutions of the public
             3057      education system as defined in Utah Constitution Article X, Section 2, provided the
             3058      construction materials are clearly identified and segregated and installed or converted to real
             3059      property which is owned by institutions of the public education system; and
             3060          (ii) construction materials purchased by the state, its institutions, or its political
             3061      subdivisions which are installed or converted to real property by employees of the state, its
             3062      institutions, or its political subdivisions; or
             3063          (b) tangible personal property in connection with the construction, operation,
             3064      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             3065      providing additional project capacity, as defined in Section 11-13-103 ;


             3066          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             3067          (i) the proceeds of each sale do not exceed $1; and
             3068          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             3069      the cost of the item described in Subsection (3)(b) as goods consumed; and
             3070          (b) Subsection (3)(a) applies to:
             3071          (i) food and food ingredients; or
             3072          (ii) prepared food;
             3073          (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
             3074          (i) alcoholic beverages;
             3075          (ii) food and food ingredients; or
             3076          (iii) prepared food;
             3077          (b) sales of tangible personal property or a product transferred electronically:
             3078          (i) to a passenger;
             3079          (ii) by a commercial airline carrier; and
             3080          (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
             3081          (c) services related to Subsection (4)(a) or (b);
             3082          (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
             3083      and equipment:
             3084          (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
             3085      North American Industry Classification System of the federal Executive Office of the
             3086      President, Office of Management and Budget; and
             3087          (II) for:
             3088          (Aa) installation in an aircraft, including services relating to the installation of parts or
             3089      equipment in the aircraft;
             3090          (Bb) renovation of an aircraft; or
             3091          (Cc) repair of an aircraft; or
             3092          (B) for installation in an aircraft operated by a common carrier in interstate or foreign
             3093      commerce; or
             3094          (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
             3095      aircraft operated by a common carrier in interstate or foreign commerce; and
             3096          (b) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,


             3097      a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
             3098      refund:
             3099          (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
             3100          (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
             3101          (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
             3102      the sale prior to filing for the refund;
             3103          (iv) for sales and use taxes paid under this chapter on the sale;
             3104          (v) in accordance with Section 59-1-1410 ; and
             3105          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             3106      the person files for the refund on or before September 30, 2011;
             3107          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             3108      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             3109      exhibitor, distributor, or commercial television or radio broadcaster;
             3110          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             3111      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             3112      washing of tangible personal property;
             3113          (b) if a seller that sells at the same business location assisted cleaning or washing of
             3114      tangible personal property and cleaning or washing of tangible personal property that is not
             3115      assisted cleaning or washing of tangible personal property, the exemption described in
             3116      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             3117      or washing of the tangible personal property; and
             3118          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
             3119      Utah Administrative Rulemaking Act, the commission may make rules:
             3120          (i) governing the circumstances under which sales are at the same business location;
             3121      and
             3122          (ii) establishing the procedures and requirements for a seller to separately account for
             3123      sales of assisted cleaning or washing of tangible personal property;
             3124          (8) sales made to or by religious or charitable institutions in the conduct of their regular
             3125      religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
             3126      fulfilled;
             3127          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of


             3128      this state if the vehicle is:
             3129          (a) not registered in this state; and
             3130          (b) (i) not used in this state; or
             3131          (ii) used in this state:
             3132          (A) if the vehicle is not used to conduct business, for a time period that does not
             3133      exceed the longer of:
             3134          (I) 30 days in any calendar year; or
             3135          (II) the time period necessary to transport the vehicle to the borders of this state; or
             3136          (B) if the vehicle is used to conduct business, for the time period necessary to transport
             3137      the vehicle to the borders of this state;
             3138          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             3139          (i) the item is intended for human use; and
             3140          (ii) (A) a prescription was issued for the item; or
             3141          (B) the item was purchased by a hospital or other medical facility; and
             3142          (b) (i) Subsection (10)(a) applies to:
             3143          (A) a drug;
             3144          (B) a syringe; or
             3145          (C) a stoma supply; and
             3146          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3147      commission may by rule define the terms:
             3148          (A) "syringe"; or
             3149          (B) "stoma supply";
             3150          (11) sales or use of property, materials, or services used in the construction of or
             3151      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             3152          (12) (a) sales of an item described in Subsection (12)(c) served by:
             3153          (i) the following if the item described in Subsection (12)(c) is not available to the
             3154      general public:
             3155          (A) a church; or
             3156          (B) a charitable institution;
             3157          (ii) an institution of higher education if:
             3158          (A) the item described in Subsection (12)(c) is not available to the general public; or


             3159          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             3160      offered by the institution of higher education; or
             3161          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             3162          (i) a medical facility; or
             3163          (ii) a nursing facility; and
             3164          (c) Subsections (12)(a) and (b) apply to:
             3165          (i) food and food ingredients;
             3166          (ii) prepared food; or
             3167          (iii) alcoholic beverages;
             3168          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
             3169      or a product transferred electronically by a person:
             3170          (i) regardless of the number of transactions involving the sale of that tangible personal
             3171      property or product transferred electronically by that person; and
             3172          (ii) not regularly engaged in the business of selling that type of tangible personal
             3173      property or product transferred electronically;
             3174          (b) this Subsection (13) does not apply if:
             3175          (i) the sale is one of a series of sales of a character to indicate that the