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First Substitute S.B. 124

Senator Wayne A. Harper proposes the following substitute bill:


             1     
SALES AND USE TAX EXEMPTION FOR DATABASE

             2     
ACCESS

             3     
2013 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Wayne A. Harper

             6     
House Sponsor: Keven J. Stratton

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill enacts a sales and use tax exemption for amounts paid or charged to access a
             11      database.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    enacts a sales and use tax exemption for amounts paid or charged to access a
             16      database under certain circumstances; and
             17          .    makes technical and conforming changes.
             18      Money Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          This bill provides effective dates.
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          59-12-102 (Superseded 07/01/14), as last amended by Laws of Utah 2012, Chapters
             25      255, 312, 405, and 410


             26          59-12-102 (Effective 07/01/14), as last amended by Laws of Utah 2012, Chapters 255,
             27      312, 405, 410, and 424
             28          59-12-104, as last amended by Laws of Utah 2012, Chapters 255, 399, 405, and 410
             29     
             30      Be it enacted by the Legislature of the state of Utah:
             31          Section 1. Section 59-12-102 (Superseded 07/01/14) is amended to read:
             32           59-12-102 (Superseded 07/01/14). Definitions.
             33          As used in this chapter:
             34          (1) "800 service" means a telecommunications service that:
             35          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             36          (b) is typically marketed:
             37          (i) under the name 800 toll-free calling;
             38          (ii) under the name 855 toll-free calling;
             39          (iii) under the name 866 toll-free calling;
             40          (iv) under the name 877 toll-free calling;
             41          (v) under the name 888 toll-free calling; or
             42          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             43      Federal Communications Commission.
             44          (2) (a) "900 service" means an inbound toll telecommunications service that:
             45          (i) a subscriber purchases;
             46          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             47      the subscriber's:
             48          (A) prerecorded announcement; or
             49          (B) live service; and
             50          (iii) is typically marketed:
             51          (A) under the name 900 service; or
             52          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             53      Communications Commission.
             54          (b) "900 service" does not include a charge for:
             55          (i) a collection service a seller of a telecommunications service provides to a
             56      subscriber; or


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


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


             119          (b) contains .5% or more alcohol by volume.
             120          (10) "Alternative energy" means:
             121          (a) biomass energy;
             122          (b) geothermal energy;
             123          (c) hydroelectric energy;
             124          (d) solar energy;
             125          (e) wind energy; or
             126          (f) energy that is derived from:
             127          (i) coal-to-liquids;
             128          (ii) nuclear fuel;
             129          (iii) oil-impregnated diatomaceous earth;
             130          (iv) oil sands;
             131          (v) oil shale; or
             132          (vi) petroleum coke.
             133          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
             134      facility" means a facility that:
             135          (i) uses alternative energy to produce electricity; and
             136          (ii) has a production capacity of 2 megawatts or greater.
             137          (b) A facility is an alternative energy electricity production facility regardless of
             138      whether the facility is:
             139          (i) connected to an electric grid; or
             140          (ii) located on the premises of an electricity consumer.
             141          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
             142      provision of telecommunications service.
             143          (b) "Ancillary service" includes:
             144          (i) a conference bridging service;
             145          (ii) a detailed communications billing service;
             146          (iii) directory assistance;
             147          (iv) a vertical service; or
             148          (v) a voice mail service.
             149          (13) "Area agency on aging" is as defined in Section 62A-3-101 .


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


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


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


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


             274          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
             275      contract to determine if the sales price of tangible personal property or a product is de minimis.
             276          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
             277      the seller's purchase price and the seller's sales price to determine if tangible personal property
             278      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             279      price of that retail sale.
             280          (19) "Certified automated system" means software certified by the governing board of
             281      the agreement that:
             282          (a) calculates the agreement sales and use tax imposed within a local taxing
             283      jurisdiction:
             284          (i) on a transaction; and
             285          (ii) in the states that are members of the agreement;
             286          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             287      member of the agreement; and
             288          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
             289          (20) "Certified service provider" means an agent certified:
             290          (a) by the governing board of the agreement; and
             291          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             292      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             293      own purchases.
             294          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
             295      suitable for general use.
             296          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             297      commission shall make rules:
             298          (i) listing the items that constitute "clothing"; and
             299          (ii) that are consistent with the list of items that constitute "clothing" under the
             300      agreement.
             301          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             302          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             303      fuels that does not constitute industrial use under Subsection [(51)] (54) or residential use
             304      under Subsection [(101)] (104).


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


             336          (c) "Conference bridging service" does not include a telecommunications service used
             337      to reach the ancillary service described in Subsection (29)(a).
             338          (30) "Construction materials" means any tangible personal property that will be
             339      converted into real property.
             340          (31) "Delivered electronically" means delivered to a purchaser by means other than
             341      tangible storage media.
             342          (32) (a) "Delivery charge" means a charge:
             343          (i) by a seller of:
             344          (A) tangible personal property;
             345          (B) a product transferred electronically; or
             346          (C) services; and
             347          (ii) for preparation and delivery of the tangible personal property, product transferred
             348      electronically, or services described in Subsection (32)(a)(i) to a location designated by the
             349      purchaser.
             350          (b) "Delivery charge" includes a charge for the following:
             351          (i) transportation;
             352          (ii) shipping;
             353          (iii) postage;
             354          (iv) handling;
             355          (v) crating; or
             356          (vi) packing.
             357          (33) "Detailed telecommunications billing service" means an ancillary service of
             358      separately stating information pertaining to individual calls on a customer's billing statement.
             359          (34) "Dietary supplement" means a product, other than tobacco, that:
             360          (a) is intended to supplement the diet;
             361          (b) contains one or more of the following dietary ingredients:
             362          (i) a vitamin;
             363          (ii) a mineral;
             364          (iii) an herb or other botanical;
             365          (iv) an amino acid;
             366          (v) a dietary substance for use by humans to supplement the diet by increasing the total


             367      dietary intake; or
             368          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             369      described in Subsections (34)(b)(i) through (v);
             370          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
             371          (A) tablet form;
             372          (B) capsule form;
             373          (C) powder form;
             374          (D) softgel form;
             375          (E) gelcap form; or
             376          (F) liquid form; or
             377          (ii) notwithstanding Subsection (34)(c)(i), if the product is not intended for ingestion in
             378      a form described in Subsections (34)(c)(i)(A) through (F), is not represented:
             379          (A) as conventional food; and
             380          (B) for use as a sole item of:
             381          (I) a meal; or
             382          (II) the diet; and
             383          (d) is required to be labeled as a dietary supplement:
             384          (i) identifiable by the "Supplemental Facts" box found on the label; and
             385          (ii) as required by 21 C.F.R. Sec. 101.36.
             386          (35) (a) "Digital audio work" means a work that results from the fixation of a series of
             387      musical, spoken, or other sounds.
             388          (b) "Digital audio work" includes a ringtone.
             389          (36) "Digital audio-visual work" means a series of related images which, when shown
             390      in succession, imparts an impression of motion, together with accompanying sounds, if any.
             391          (37) "Digital book" means a work that is generally recognized in the ordinary and usual
             392      sense as a book.
             393          [(35)] (38) (a) "Direct mail" means printed material delivered or distributed by United
             394      States mail or other delivery service:
             395          (i) to:
             396          (A) a mass audience; or
             397          (B) addressees on a mailing list provided:


             398          (I) by a purchaser of the mailing list; or
             399          (II) at the discretion of the purchaser of the mailing list; and
             400          (ii) if the cost of the printed material is not billed directly to the recipients.
             401          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             402      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             403          (c) "Direct mail" does not include multiple items of printed material delivered to a
             404      single address.
             405          [(36)] (39) "Directory assistance" means an ancillary service of providing:
             406          (a) address information; or
             407          (b) telephone number information.
             408          [(37)] (40) (a) "Disposable home medical equipment or supplies" means medical
             409      equipment or supplies that:
             410          (i) cannot withstand repeated use; and
             411          (ii) are purchased by, for, or on behalf of a person other than:
             412          (A) a health care facility as defined in Section 26-21-2 ;
             413          (B) a health care provider as defined in Section 78B-3-403 ;
             414          (C) an office of a health care provider described in Subsection [(37)] (40)(a)(ii)(B); or
             415          (D) a person similar to a person described in Subsections [(37)] (40)(a)(ii)(A) through
             416      (C).
             417          (b) "Disposable home medical equipment or supplies" does not include:
             418          (i) a drug;
             419          (ii) durable medical equipment;
             420          (iii) a hearing aid;
             421          (iv) a hearing aid accessory;
             422          (v) mobility enhancing equipment; or
             423          (vi) tangible personal property used to correct impaired vision, including:
             424          (A) eyeglasses; or
             425          (B) contact lenses.
             426          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             427      commission may by rule define what constitutes medical equipment or supplies.
             428          [(38)] (41) (a) "Drug" means a compound, substance, or preparation, or a component of


             429      a compound, substance, or preparation that is:
             430          (i) recognized in:
             431          (A) the official United States Pharmacopoeia;
             432          (B) the official Homeopathic Pharmacopoeia of the United States;
             433          (C) the official National Formulary; or
             434          (D) a supplement to a publication listed in Subsections [(38)] (41)(a)(i)(A) through
             435      (C);
             436          (ii) intended for use in the:
             437          (A) diagnosis of disease;
             438          (B) cure of disease;
             439          (C) mitigation of disease;
             440          (D) treatment of disease; or
             441          (E) prevention of disease; or
             442          (iii) intended to affect:
             443          (A) the structure of the body; or
             444          (B) any function of the body.
             445          (b) "Drug" does not include:
             446          (i) food and food ingredients;
             447          (ii) a dietary supplement;
             448          (iii) an alcoholic beverage; or
             449          (iv) a prosthetic device.
             450          [(39)] (42) (a) Except as provided in Subsection [(39)] (42)(c), "durable medical
             451      equipment" means equipment that:
             452          (i) can withstand repeated use;
             453          (ii) is primarily and customarily used to serve a medical purpose;
             454          (iii) generally is not useful to a person in the absence of illness or injury; and
             455          (iv) is not worn in or on the body.
             456          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             457      equipment described in Subsection [(39)] (42)(a).
             458          (c) Notwithstanding Subsection [(39)] (42)(a), "durable medical equipment" does not
             459      include mobility enhancing equipment.


             460          [(40)] (43) "Electronic" means:
             461          (a) relating to technology; and
             462          (b) having:
             463          (i) electrical capabilities;
             464          (ii) digital capabilities;
             465          (iii) magnetic capabilities;
             466          (iv) wireless capabilities;
             467          (v) optical capabilities;
             468          (vi) electromagnetic capabilities; or
             469          (vii) capabilities similar to Subsections [(40)] (43)(b)(i) through (vi).
             470          [(41)] (44) "Employee" is as defined in Section 59-10-401 .
             471          [(42)] (45) "Fixed guideway" means a public transit facility that uses and occupies:
             472          (a) rail for the use of public transit; or
             473          (b) a separate right-of-way for the use of public transit.
             474          [(43)] (46) "Fixed wing turbine powered aircraft" means an aircraft that:
             475          (a) is powered by turbine engines;
             476          (b) operates on jet fuel; and
             477          (c) has wings that are permanently attached to the fuselage of the aircraft.
             478          [(44)] (47) "Fixed wireless service" means a telecommunications service that provides
             479      radio communication between fixed points.
             480          [(45)] (48) (a) "Food and food ingredients" means substances:
             481          (i) regardless of whether the substances are in:
             482          (A) liquid form;
             483          (B) concentrated form;
             484          (C) solid form;
             485          (D) frozen form;
             486          (E) dried form; or
             487          (F) dehydrated form; and
             488          (ii) that are:
             489          (A) sold for:
             490          (I) ingestion by humans; or


             491          (II) chewing by humans; and
             492          (B) consumed for the substance's:
             493          (I) taste; or
             494          (II) nutritional value.
             495          (b) "Food and food ingredients" includes an item described in Subsection [(86)]
             496      (89)(b)(iii).
             497          (c) "Food and food ingredients" does not include:
             498          (i) an alcoholic beverage;
             499          (ii) tobacco; or
             500          (iii) prepared food.
             501          [(46)] (49) (a) "Fundraising sales" means sales:
             502          (i) (A) made by a school; or
             503          (B) made by a school student;
             504          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             505      materials, or provide transportation; and
             506          (iii) that are part of an officially sanctioned school activity.
             507          (b) For purposes of Subsection [(46)] (49)(a)(iii), "officially sanctioned school activity"
             508      means a school activity:
             509          (i) that is conducted in accordance with a formal policy adopted by the school or school
             510      district governing the authorization and supervision of fundraising activities;
             511          (ii) that does not directly or indirectly compensate an individual teacher or other
             512      educational personnel by direct payment, commissions, or payment in kind; and
             513          (iii) the net or gross revenues from which are deposited in a dedicated account
             514      controlled by the school or school district.
             515          [(47)] (50) "Geothermal energy" means energy contained in heat that continuously
             516      flows outward from the earth that is used as the sole source of energy to produce electricity.
             517          [(48)] (51) "Governing board of the agreement" means the governing board of the
             518      agreement that is:
             519          (a) authorized to administer the agreement; and
             520          (b) established in accordance with the agreement.
             521          [(49)] (52) (a) For purposes of Subsection 59-12-104 (41), "governmental entity"


             522      means:
             523          (i) the executive branch of the state, including all departments, institutions, boards,
             524      divisions, bureaus, offices, commissions, and committees;
             525          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             526      Office of the Court Administrator, and similar administrative units in the judicial branch;
             527          (iii) the legislative branch of the state, including the House of Representatives, the
             528      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             529      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             530      Analyst;
             531          (iv) the National Guard;
             532          (v) an independent entity as defined in Section 63E-1-102 ; or
             533          (vi) a political subdivision as defined in Section 17B-1-102 .
             534          (b) "Governmental entity" does not include the state systems of public and higher
             535      education, including:
             536          (i) a college campus of the Utah College of Applied Technology;
             537          (ii) a school;
             538          (iii) the State Board of Education;
             539          (iv) the State Board of Regents; or
             540          (v) an institution of higher education.
             541          [(50)] (53) "Hydroelectric energy" means water used as the sole source of energy to
             542      produce electricity.
             543          [(51)] (54) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil,
             544      or other fuels:
             545          (a) in mining or extraction of minerals;
             546          (b) in agricultural operations to produce an agricultural product up to the time of
             547      harvest or placing the agricultural product into a storage facility, including:
             548          (i) commercial greenhouses;
             549          (ii) irrigation pumps;
             550          (iii) farm machinery;
             551          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             552      registered under Title 41, Chapter 1a, Part 2, Registration; and


             553          (v) other farming activities;
             554          (c) in manufacturing tangible personal property at an establishment described in SIC
             555      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             556      Executive Office of the President, Office of Management and Budget;
             557          (d) by a scrap recycler if:
             558          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             559      one or more of the following items into prepared grades of processed materials for use in new
             560      products:
             561          (A) iron;
             562          (B) steel;
             563          (C) nonferrous metal;
             564          (D) paper;
             565          (E) glass;
             566          (F) plastic;
             567          (G) textile; or
             568          (H) rubber; and
             569          (ii) the new products under Subsection [(51)] (54)(d)(i) would otherwise be made with
             570      nonrecycled materials; or
             571          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             572      cogeneration facility as defined in Section 54-2-1 .
             573          [(52)] (55) (a) Except as provided in Subsection [(52)] (55)(b), "installation charge"
             574      means a charge for installing:
             575          (i) tangible personal property; or
             576          (ii) a product transferred electronically.
             577          (b) "Installation charge" does not include a charge for:
             578          (i) repairs or renovations of:
             579          (A) tangible personal property; or
             580          (B) a product transferred electronically; or
             581          (ii) attaching tangible personal property or a product transferred electronically:
             582          (A) to other tangible personal property; and
             583          (B) as part of a manufacturing or fabrication process.


             584          [(53)] (56) "Institution of higher education" means an institution of higher education
             585      listed in Section 53B-2-101 .
             586          [(54)] (57) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             587      personal property or a product transferred electronically for:
             588          (i) (A) a fixed term; or
             589          (B) an indeterminate term; and
             590          (ii) consideration.
             591          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             592      amount of consideration may be increased or decreased by reference to the amount realized
             593      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             594      Code.
             595          (c) "Lease" or "rental" does not include:
             596          (i) a transfer of possession or control of property under a security agreement or
             597      deferred payment plan that requires the transfer of title upon completion of the required
             598      payments;
             599          (ii) a transfer of possession or control of property under an agreement that requires the
             600      transfer of title:
             601          (A) upon completion of required payments; and
             602          (B) if the payment of an option price does not exceed the greater of:
             603          (I) $100; or
             604          (II) 1% of the total required payments; or
             605          (iii) providing tangible personal property along with an operator for a fixed period of
             606      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             607      designed.
             608          (d) For purposes of Subsection [(54)] (57)(c)(iii), an operator is necessary for
             609      equipment to perform as designed if the operator's duties exceed the:
             610          (i) set-up of tangible personal property;
             611          (ii) maintenance of tangible personal property; or
             612          (iii) inspection of tangible personal property.
             613          [(55)] (58) "Life science establishment" means an establishment in this state that is
             614      classified under the following NAICS codes of the 2007 North American Industry


             615      Classification System of the federal Executive Office of the President, Office of Management
             616      and Budget:
             617          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
             618          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
             619      Manufacturing; or
             620          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
             621          [(56)] (59) "Life science research and development facility" means a facility owned,
             622      leased, or rented by a life science establishment if research and development is performed in
             623      51% or more of the total area of the facility.
             624          [(57)] (60) "Load and leave" means delivery to a purchaser by use of a tangible storage
             625      media if the tangible storage media is not physically transferred to the purchaser.
             626          [(58)] (61) "Local taxing jurisdiction" means a:
             627          (a) county that is authorized to impose an agreement sales and use tax;
             628          (b) city that is authorized to impose an agreement sales and use tax; or
             629          (c) town that is authorized to impose an agreement sales and use tax.
             630          [(59)] (62) "Manufactured home" is as defined in Section 15A-1-302 .
             631          [(60)] (63) For purposes of Section 59-12-104 , "manufacturing facility" means:
             632          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             633      Industrial Classification Manual of the federal Executive Office of the President, Office of
             634      Management and Budget;
             635          (b) a scrap recycler if:
             636          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             637      one or more of the following items into prepared grades of processed materials for use in new
             638      products:
             639          (A) iron;
             640          (B) steel;
             641          (C) nonferrous metal;
             642          (D) paper;
             643          (E) glass;
             644          (F) plastic;
             645          (G) textile; or


             646          (H) rubber; and
             647          (ii) the new products under Subsection [(60)] (63)(b)(i) would otherwise be made with
             648      nonrecycled materials; or
             649          (c) a cogeneration facility as defined in Section 54-2-1 .
             650          [(61)] (64) "Member of the immediate family of the producer" means a person who is
             651      related to a producer described in Subsection 59-12-104 (20)(a) as a:
             652          (a) child or stepchild, regardless of whether the child or stepchild is:
             653          (i) an adopted child or adopted stepchild; or
             654          (ii) a foster child or foster stepchild;
             655          (b) grandchild or stepgrandchild;
             656          (c) grandparent or stepgrandparent;
             657          (d) nephew or stepnephew;
             658          (e) niece or stepniece;
             659          (f) parent or stepparent;
             660          (g) sibling or stepsibling;
             661          (h) spouse;
             662          (i) person who is the spouse of a person described in Subsections [(61)] (64)(a) through
             663      (g); or
             664          (j) person similar to a person described in Subsections [(61)] (64)(a) through (i) as
             665      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             666      Administrative Rulemaking Act.
             667          [(62)] (65) "Mobile home" is as defined in Section 15A-1-302 .
             668          [(63)] (66) "Mobile telecommunications service" is as defined in the Mobile
             669      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             670          [(64)] (67) (a) "Mobile wireless service" means a telecommunications service,
             671      regardless of the technology used, if:
             672          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             673          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             674          (iii) the origination point described in Subsection [(64)] (67)(a)(i) and the termination
             675      point described in Subsection [(64)] (67)(a)(ii) are not fixed.
             676          (b) "Mobile wireless service" includes a telecommunications service that is provided


             677      by a commercial mobile radio service provider.
             678          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             679      commission may by rule define "commercial mobile radio service provider."
             680          [(65)] (68) (a) Except as provided in Subsection [(65)] (68)(c), "mobility enhancing
             681      equipment" means equipment that is:
             682          (i) primarily and customarily used to provide or increase the ability to move from one
             683      place to another;
             684          (ii) appropriate for use in a:
             685          (A) home; or
             686          (B) motor vehicle; and
             687          (iii) not generally used by persons with normal mobility.
             688          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             689      the equipment described in Subsection [(65)] (68)(a).
             690          (c) Notwithstanding Subsection [(65)] (68)(a), "mobility enhancing equipment" does
             691      not include:
             692          (i) a motor vehicle;
             693          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             694      vehicle manufacturer;
             695          (iii) durable medical equipment; or
             696          (iv) a prosthetic device.
             697          [(66)] (69) "Model 1 seller" means a seller registered under the agreement that has
             698      selected a certified service provider as the seller's agent to perform all of the seller's sales and
             699      use tax functions for agreement sales and use taxes other than the seller's obligation under
             700      Section 59-12-124 to remit a tax on the seller's own purchases.
             701          [(67)] (70) "Model 2 seller" means a seller registered under the agreement that:
             702          (a) except as provided in Subsection [(67)] (70)(b), has selected a certified automated
             703      system to perform the seller's sales tax functions for agreement sales and use taxes; and
             704          (b) notwithstanding Subsection [(67)] (70)(a), retains responsibility for remitting all of
             705      the sales tax:
             706          (i) collected by the seller; and
             707          (ii) to the appropriate local taxing jurisdiction.


             708          [(68)] (71) (a) Subject to Subsection [(68)] (71)(b), "model 3 seller" means a seller
             709      registered under the agreement that has:
             710          (i) sales in at least five states that are members of the agreement;
             711          (ii) total annual sales revenues of at least $500,000,000;
             712          (iii) a proprietary system that calculates the amount of tax:
             713          (A) for an agreement sales and use tax; and
             714          (B) due to each local taxing jurisdiction; and
             715          (iv) entered into a performance agreement with the governing board of the agreement.
             716          (b) For purposes of Subsection [(68)] (71)(a), "model 3 seller" includes an affiliated
             717      group of sellers using the same proprietary system.
             718          [(69)] (72) "Model 4 seller" means a seller that is registered under the agreement and is
             719      not a model 1 seller, model 2 seller, or model 3 seller.
             720          [(70)] (73) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             721          [(71)] (74) "Motor vehicle" is as defined in Section 41-1a-102 .
             722          [(72)] (75) "Oil sands" means impregnated bituminous sands that:
             723          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
             724      other hydrocarbons, or otherwise treated;
             725          (b) yield mixtures of liquid hydrocarbon; and
             726          (c) require further processing other than mechanical blending before becoming finished
             727      petroleum products.
             728          [(73)] (76) "Oil shale" means a group of fine black to dark brown shales containing
             729      kerogen material that yields petroleum upon heating and distillation.
             730          [(74)] (77) "Optional computer software maintenance contract" means a computer
             731      software maintenance contract that a customer is not obligated to purchase as a condition to the
             732      retail sale of computer software.
             733          [(75)] (78) (a) "Other fuels" means products that burn independently to produce heat or
             734      energy.
             735          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             736      personal property.
             737          [(76)] (79) (a) "Paging service" means a telecommunications service that provides
             738      transmission of a coded radio signal for the purpose of activating a specific pager.


             739          (b) For purposes of Subsection [(76)] (79)(a), the transmission of a coded radio signal
             740      includes a transmission by message or sound.
             741          [(77)] (80) "Pawnbroker" is as defined in Section 13-32a-102 .
             742          [(78)] (81) "Pawn transaction" is as defined in Section 13-32a-102 .
             743          [(79)] (82) (a) "Permanently attached to real property" means that for tangible personal
             744      property attached to real property:
             745          (i) the attachment of the tangible personal property to the real property:
             746          (A) is essential to the use of the tangible personal property; and
             747          (B) suggests that the tangible personal property will remain attached to the real
             748      property in the same place over the useful life of the tangible personal property; or
             749          (ii) if the tangible personal property is detached from the real property, the detachment
             750      would:
             751          (A) cause substantial damage to the tangible personal property; or
             752          (B) require substantial alteration or repair of the real property to which the tangible
             753      personal property is attached.
             754          (b) "Permanently attached to real property" includes:
             755          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             756          (A) essential to the operation of the tangible personal property; and
             757          (B) attached only to facilitate the operation of the tangible personal property;
             758          (ii) a temporary detachment of tangible personal property from real property for a
             759      repair or renovation if the repair or renovation is performed where the tangible personal
             760      property and real property are located; or
             761          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             762      Subsection [(79)] (82)(c)(iii) or (iv).
             763          (c) "Permanently attached to real property" does not include:
             764          (i) the attachment of portable or movable tangible personal property to real property if
             765      that portable or movable tangible personal property is attached to real property only for:
             766          (A) convenience;
             767          (B) stability; or
             768          (C) for an obvious temporary purpose;
             769          (ii) the detachment of tangible personal property from real property except for the


             770      detachment described in Subsection [(79)] (82)(b)(ii);
             771          (iii) an attachment of the following tangible personal property to real property if the
             772      attachment to real property is only through a line that supplies water, electricity, gas,
             773      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             774      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             775          (A) a computer;
             776          (B) a telephone;
             777          (C) a television; or
             778          (D) tangible personal property similar to Subsections [(79)] (82)(c)(iii)(A) through (C)
             779      as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             780      Administrative Rulemaking Act; or
             781          (iv) an item listed in Subsection [(117)] (121)(c).
             782          [(80)] (83) "Person" includes any individual, firm, partnership, joint venture,
             783      association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
             784      city, municipality, district, or other local governmental entity of the state, or any group or
             785      combination acting as a unit.
             786          [(81)] (84) "Place of primary use":
             787          (a) for telecommunications service other than mobile telecommunications service,
             788      means the street address representative of where the customer's use of the telecommunications
             789      service primarily occurs, which shall be:
             790          (i) the residential street address of the customer; or
             791          (ii) the primary business street address of the customer; or
             792          (b) for mobile telecommunications service, is as defined in the Mobile
             793      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             794          [(82)] (85) (a) "Postpaid calling service" means a telecommunications service a person
             795      obtains by making a payment on a call-by-call basis:
             796          (i) through the use of a:
             797          (A) bank card;
             798          (B) credit card;
             799          (C) debit card; or
             800          (D) travel card; or


             801          (ii) by a charge made to a telephone number that is not associated with the origination
             802      or termination of the telecommunications service.
             803          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             804      service, that would be a prepaid wireless calling service if the service were exclusively a
             805      telecommunications service.
             806          [(83)] (86) "Postproduction" means an activity related to the finishing or duplication of
             807      a medium described in Subsection 59-12-104 (54)(a).
             808          [(84)] (87) "Prepaid calling service" means a telecommunications service:
             809          (a) that allows a purchaser access to telecommunications service that is exclusively
             810      telecommunications service;
             811          (b) that:
             812          (i) is paid for in advance; and
             813          (ii) enables the origination of a call using an:
             814          (A) access number; or
             815          (B) authorization code;
             816          (c) that is dialed:
             817          (i) manually; or
             818          (ii) electronically; and
             819          (d) sold in predetermined units or dollars that decline:
             820          (i) by a known amount; and
             821          (ii) with use.
             822          [(85)] (88) "Prepaid wireless calling service" means a telecommunications service:
             823          (a) that provides the right to utilize:
             824          (i) mobile wireless service; and
             825          (ii) other service that is not a telecommunications service, including:
             826          (A) the download of a product transferred electronically;
             827          (B) a content service; or
             828          (C) an ancillary service;
             829          (b) that:
             830          (i) is paid for in advance; and
             831          (ii) enables the origination of a call using an:


             832          (A) access number; or
             833          (B) authorization code;
             834          (c) that is dialed:
             835          (i) manually; or
             836          (ii) electronically; and
             837          (d) sold in predetermined units or dollars that decline:
             838          (i) by a known amount; and
             839          (ii) with use.
             840          [(86)] (89) (a) "Prepared food" means:
             841          (i) food:
             842          (A) sold in a heated state; or
             843          (B) heated by a seller;
             844          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             845      item; or
             846          (iii) except as provided in Subsection [(86)] (89)(c), food sold with an eating utensil
             847      provided by the seller, including a:
             848          (A) plate;
             849          (B) knife;
             850          (C) fork;
             851          (D) spoon;
             852          (E) glass;
             853          (F) cup;
             854          (G) napkin; or
             855          (H) straw.
             856          (b) "Prepared food" does not include:
             857          (i) food that a seller only:
             858          (A) cuts;
             859          (B) repackages; or
             860          (C) pasteurizes; or
             861          (ii) (A) the following:
             862          (I) raw egg;


             863          (II) raw fish;
             864          (III) raw meat;
             865          (IV) raw poultry; or
             866          (V) a food containing an item described in Subsections [(86)] (89)(b)(ii)(A)(I) through
             867      (IV); and
             868          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             869      Food and Drug Administration's Food Code that a consumer cook the items described in
             870      Subsection [(86)] (89)(b)(ii)(A) to prevent food borne illness; or
             871          (iii) the following if sold without eating utensils provided by the seller:
             872          (A) food and food ingredients sold by a seller if the seller's proper primary
             873      classification under the 2002 North American Industry Classification System of the federal
             874      Executive Office of the President, Office of Management and Budget, is manufacturing in
             875      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             876      Manufacturing;
             877          (B) food and food ingredients sold in an unheated state:
             878          (I) by weight or volume; and
             879          (II) as a single item; or
             880          (C) a bakery item, including:
             881          (I) a bagel;
             882          (II) a bar;
             883          (III) a biscuit;
             884          (IV) bread;
             885          (V) a bun;
             886          (VI) a cake;
             887          (VII) a cookie;
             888          (VIII) a croissant;
             889          (IX) a danish;
             890          (X) a donut;
             891          (XI) a muffin;
             892          (XII) a pastry;
             893          (XIII) a pie;


             894          (XIV) a roll;
             895          (XV) a tart;
             896          (XVI) a torte; or
             897          (XVII) a tortilla.
             898          (c) Notwithstanding Subsection [(86)] (89)(a)(iii), an eating utensil provided by the
             899      seller does not include the following used to transport the food:
             900          (i) a container; or
             901          (ii) packaging.
             902          [(87)] (90) "Prescription" means an order, formula, or recipe that is issued:
             903          (a) (i) orally;
             904          (ii) in writing;
             905          (iii) electronically; or
             906          (iv) by any other manner of transmission; and
             907          (b) by a licensed practitioner authorized by the laws of a state.
             908          [(88)] (91) (a) Except as provided in Subsection [(88)] (91)(b)(ii) or (iii), "prewritten
             909      computer software" means computer software that is not designed and developed:
             910          (i) by the author or other creator of the computer software; and
             911          (ii) to the specifications of a specific purchaser.
             912          (b) "Prewritten computer software" includes:
             913          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             914      software is not designed and developed:
             915          (A) by the author or other creator of the computer software; and
             916          (B) to the specifications of a specific purchaser;
             917          (ii) notwithstanding Subsection [(88)] (91)(a), computer software designed and
             918      developed by the author or other creator of the computer software to the specifications of a
             919      specific purchaser if the computer software is sold to a person other than the purchaser; or
             920          (iii) notwithstanding Subsection [(88)] (91)(a) and except as provided in Subsection
             921      [(88)] (91)(c), prewritten computer software or a prewritten portion of prewritten computer
             922      software:
             923          (A) that is modified or enhanced to any degree; and
             924          (B) if the modification or enhancement described in Subsection [(88)] (91)(b)(iii)(A) is


             925      designed and developed to the specifications of a specific purchaser.
             926          (c) Notwithstanding Subsection [(88)] (91)(b)(iii), "prewritten computer software"
             927      does not include a modification or enhancement described in Subsection [(88)] (91)(b)(iii) if
             928      the charges for the modification or enhancement are:
             929          (i) reasonable; and
             930          (ii) separately stated on the invoice or other statement of price provided to the
             931      purchaser.
             932          [(89)] (92) (a) "Private communication service" means a telecommunications service:
             933          (i) that entitles a customer to exclusive or priority use of one or more communications
             934      channels between or among termination points; and
             935          (ii) regardless of the manner in which the one or more communications channels are
             936      connected.
             937          (b) "Private communications service" includes the following provided in connection
             938      with the use of one or more communications channels:
             939          (i) an extension line;
             940          (ii) a station;
             941          (iii) switching capacity; or
             942          (iv) another associated service that is provided in connection with the use of one or
             943      more communications channels as defined in Section 59-12-215 .
             944          [(90)] (93) (a) Except as provided in Subsection [(90)] (93)(b), "product transferred
             945      electronically" means a product transferred electronically that would be subject to a tax under
             946      this chapter if that product was transferred in a manner other than electronically.
             947          (b) "Product transferred electronically" does not include:
             948          (i) an ancillary service;
             949          (ii) computer software; or
             950          (iii) a telecommunications service.
             951          [(91)] (94) (a) "Prosthetic device" means a device that is worn on or in the body to:
             952          (i) artificially replace a missing portion of the body;
             953          (ii) prevent or correct a physical deformity or physical malfunction; or
             954          (iii) support a weak or deformed portion of the body.
             955          (b) "Prosthetic device" includes:


             956          (i) parts used in the repairs or renovation of a prosthetic device;
             957          (ii) replacement parts for a prosthetic device;
             958          (iii) a dental prosthesis; or
             959          (iv) a hearing aid.
             960          (c) "Prosthetic device" does not include:
             961          (i) corrective eyeglasses; or
             962          (ii) contact lenses.
             963          [(92)] (95) (a) "Protective equipment" means an item:
             964          (i) for human wear; and
             965          (ii) that is:
             966          (A) designed as protection:
             967          (I) to the wearer against injury or disease; or
             968          (II) against damage or injury of other persons or property; and
             969          (B) not suitable for general use.
             970          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             971      commission shall make rules:
             972          (i) listing the items that constitute "protective equipment"; and
             973          (ii) that are consistent with the list of items that constitute "protective equipment"
             974      under the agreement.
             975          [(93)] (96) (a) For purposes of Subsection 59-12-104 (41), "publication" means any
             976      written or printed matter, other than a photocopy:
             977          (i) regardless of:
             978          (A) characteristics;
             979          (B) copyright;
             980          (C) form;
             981          (D) format;
             982          (E) method of reproduction; or
             983          (F) source; and
             984          (ii) made available in printed or electronic format.
             985          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             986      commission may by rule define the term "photocopy."


             987          [(94)] (97) (a) "Purchase price" and "sales price" mean the total amount of
             988      consideration:
             989          (i) valued in money; and
             990          (ii) for which tangible personal property, a product transferred electronically, or
             991      services are:
             992          (A) sold;
             993          (B) leased; or
             994          (C) rented.
             995          (b) "Purchase price" and "sales price" include:
             996          (i) the seller's cost of the tangible personal property, a product transferred
             997      electronically, or services sold;
             998          (ii) expenses of the seller, including:
             999          (A) the cost of materials used;
             1000          (B) a labor cost;
             1001          (C) a service cost;
             1002          (D) interest;
             1003          (E) a loss;
             1004          (F) the cost of transportation to the seller; or
             1005          (G) a tax imposed on the seller;
             1006          (iii) a charge by the seller for any service necessary to complete the sale; or
             1007          (iv) consideration a seller receives from a person other than the purchaser if:
             1008          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             1009      and
             1010          (II) the consideration described in Subsection [(94)] (97)(b)(iv)(A)(I) is directly related
             1011      to a price reduction or discount on the sale;
             1012          (B) the seller has an obligation to pass the price reduction or discount through to the
             1013      purchaser;
             1014          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             1015      the seller at the time of the sale to the purchaser; and
             1016          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             1017      seller to claim a price reduction or discount; and


             1018          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             1019      coupon, or other documentation with the understanding that the person other than the seller
             1020      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             1021          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             1022      organization allowed a price reduction or discount, except that a preferred customer card that is
             1023      available to any patron of a seller does not constitute membership in a group or organization
             1024      allowed a price reduction or discount; or
             1025          (III) the price reduction or discount is identified as a third party price reduction or
             1026      discount on the:
             1027          (Aa) invoice the purchaser receives; or
             1028          (Bb) certificate, coupon, or other documentation the purchaser presents.
             1029          (c) "Purchase price" and "sales price" do not include:
             1030          (i) a discount:
             1031          (A) in a form including:
             1032          (I) cash;
             1033          (II) term; or
             1034          (III) coupon;
             1035          (B) that is allowed by a seller;
             1036          (C) taken by a purchaser on a sale; and
             1037          (D) that is not reimbursed by a third party; or
             1038          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             1039      provided to the purchaser:
             1040          (A) the following from credit extended on the sale of tangible personal property or
             1041      services:
             1042          (I) a carrying charge;
             1043          (II) a financing charge; or
             1044          (III) an interest charge;
             1045          (B) a delivery charge;
             1046          (C) an installation charge;
             1047          (D) a manufacturer rebate on a motor vehicle; or
             1048          (E) a tax or fee legally imposed directly on the consumer.


             1049          [(95)] (98) "Purchaser" means a person to whom:
             1050          (a) a sale of tangible personal property is made;
             1051          (b) a product is transferred electronically; or
             1052          (c) a service is furnished.
             1053          [(96)] (99) "Regularly rented" means:
             1054          (a) rented to a guest for value three or more times during a calendar year; or
             1055          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1056      value.
             1057          [(97)] (100) "Rental" is as defined in Subsection [(54)] (57).
             1058          (98) (a) Except as provided in Subsection [(98)] (101)(b), "repairs or renovations of
             1059      tangible personal property" means:
             1060          (i) a repair or renovation of tangible personal property that is not permanently attached
             1061      to real property; or
             1062          (ii) attaching tangible personal property or a product transferred electronically to other
             1063      tangible personal property or detaching tangible personal property or a product transferred
             1064      electronically from other tangible personal property if:
             1065          (A) the other tangible personal property to which the tangible personal property or
             1066      product transferred electronically is attached or from which the tangible personal property or
             1067      product transferred electronically is detached is not permanently attached to real property; and
             1068          (B) the attachment of tangible personal property or a product transferred electronically
             1069      to other tangible personal property or detachment of tangible personal property or a product
             1070      transferred electronically from other tangible personal property is made in conjunction with a
             1071      repair or replacement of tangible personal property or a product transferred electronically.
             1072          (b) "Repairs or renovations of tangible personal property" does not include:
             1073          (i) attaching prewritten computer software to other tangible personal property if the
             1074      other tangible personal property to which the prewritten computer software is attached is not
             1075      permanently attached to real property; or
             1076          (ii) detaching prewritten computer software from other tangible personal property if the
             1077      other tangible personal property from which the prewritten computer software is detached is
             1078      not permanently attached to real property.
             1079          [(99)] (102) "Research and development" means the process of inquiry or


             1080      experimentation aimed at the discovery of facts, devices, technologies, or applications and the
             1081      process of preparing those devices, technologies, or applications for marketing.
             1082          [(100)] (103) (a) "Residential telecommunications services" means a
             1083      telecommunications service or an ancillary service that is provided to an individual for personal
             1084      use:
             1085          (i) at a residential address; or
             1086          (ii) at an institution, including a nursing home or a school, if the telecommunications
             1087      service or ancillary service is provided to and paid for by the individual residing at the
             1088      institution rather than the institution.
             1089          (b) For purposes of Subsection [(100)] (103)(a)(i), a residential address includes an:
             1090          (i) apartment; or
             1091          (ii) other individual dwelling unit.
             1092          [(101)] (104) "Residential use" means the use in or around a home, apartment building,
             1093      sleeping quarters, and similar facilities or accommodations.
             1094          [(102)] (105) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
             1095      other than:
             1096          (a) resale;
             1097          (b) sublease; or
             1098          (c) subrent.
             1099          [(103)] (106) (a) "Retailer" means any person engaged in a regularly organized
             1100      business in tangible personal property or any other taxable transaction under Subsection
             1101      59-12-103 (1), and who is selling to the user or consumer and not for resale.
             1102          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             1103      engaged in the business of selling to users or consumers within the state.
             1104          [(104)] (107) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1105      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1106      Subsection 59-12-103 (1), for consideration.
             1107          (b) "Sale" includes:
             1108          (i) installment and credit sales;
             1109          (ii) any closed transaction constituting a sale;
             1110          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this


             1111      chapter;
             1112          (iv) any transaction if the possession of property is transferred but the seller retains the
             1113      title as security for the payment of the price; and
             1114          (v) any transaction under which right to possession, operation, or use of any article of
             1115      tangible personal property is granted under a lease or contract and the transfer of possession
             1116      would be taxable if an outright sale were made.
             1117          [(105)] (108) "Sale at retail" is as defined in Subsection [(102)] (105).
             1118          [(106)] (109) "Sale-leaseback transaction" means a transaction by which title to
             1119      tangible personal property or a product transferred electronically that is subject to a tax under
             1120      this chapter is transferred:
             1121          (a) by a purchaser-lessee;
             1122          (b) to a lessor;
             1123          (c) for consideration; and
             1124          (d) if:
             1125          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1126      of the tangible personal property or product transferred electronically;
             1127          (ii) the sale of the tangible personal property or product transferred electronically to the
             1128      lessor is intended as a form of financing:
             1129          (A) for the tangible personal property or product transferred electronically; and
             1130          (B) to the purchaser-lessee; and
             1131          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1132      is required to:
             1133          (A) capitalize the tangible personal property or product transferred electronically for
             1134      financial reporting purposes; and
             1135          (B) account for the lease payments as payments made under a financing arrangement.
             1136          [(107)] (110) "Sales price" is as defined in Subsection [(94)] (97).
             1137          [(108)] (111) (a) "Sales relating to schools" means the following sales by, amounts
             1138      paid to, or amounts charged by a school:
             1139          (i) sales that are directly related to the school's educational functions or activities
             1140      including:
             1141          (A) the sale of:


             1142          (I) textbooks;
             1143          (II) textbook fees;
             1144          (III) laboratory fees;
             1145          (IV) laboratory supplies; or
             1146          (V) safety equipment;
             1147          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1148      that:
             1149          (I) a student is specifically required to wear as a condition of participation in a
             1150      school-related event or school-related activity; and
             1151          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1152      place of ordinary clothing;
             1153          (C) sales of the following if the net or gross revenues generated by the sales are
             1154      deposited into a school district fund or school fund dedicated to school meals:
             1155          (I) food and food ingredients; or
             1156          (II) prepared food; or
             1157          (D) transportation charges for official school activities; or
             1158          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1159      event or school-related activity.
             1160          (b) "Sales relating to schools" does not include:
             1161          (i) bookstore sales of items that are not educational materials or supplies;
             1162          (ii) except as provided in Subsection [(108)] (111)(a)(i)(B):
             1163          (A) clothing;
             1164          (B) clothing accessories or equipment;
             1165          (C) protective equipment; or
             1166          (D) sports or recreational equipment; or
             1167          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1168      event or school-related activity if the amounts paid or charged are passed through to a person:
             1169          (A) other than a:
             1170          (I) school;
             1171          (II) nonprofit organization authorized by a school board or a governing body of a
             1172      private school to organize and direct a competitive secondary school activity; or


             1173          (III) nonprofit association authorized by a school board or a governing body of a
             1174      private school to organize and direct a competitive secondary school activity; and
             1175          (B) that is required to collect sales and use taxes under this chapter.
             1176          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1177      commission may make rules defining the term "passed through."
             1178          [(109)] (112) For purposes of this section and Section 59-12-104 , "school":
             1179          (a) means:
             1180          (i) an elementary school or a secondary school that:
             1181          (A) is a:
             1182          (I) public school; or
             1183          (II) private school; and
             1184          (B) provides instruction for one or more grades kindergarten through 12; or
             1185          (ii) a public school district; and
             1186          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1187          [(110)] (113) "Seller" means a person that makes a sale, lease, or rental of:
             1188          (a) tangible personal property;
             1189          (b) a product transferred electronically; or
             1190          (c) a service.
             1191          [(111)] (114) (a) "Semiconductor fabricating, processing, research, or development
             1192      materials" means tangible personal property or a product transferred electronically if the
             1193      tangible personal property or product transferred electronically is:
             1194          (i) used primarily in the process of:
             1195          (A) (I) manufacturing a semiconductor;
             1196          (II) fabricating a semiconductor; or
             1197          (III) research or development of a:
             1198          (Aa) semiconductor; or
             1199          (Bb) semiconductor manufacturing process; or
             1200          (B) maintaining an environment suitable for a semiconductor; or
             1201          (ii) consumed primarily in the process of:
             1202          (A) (I) manufacturing a semiconductor;
             1203          (II) fabricating a semiconductor; or


             1204          (III) research or development of a:
             1205          (Aa) semiconductor; or
             1206          (Bb) semiconductor manufacturing process; or
             1207          (B) maintaining an environment suitable for a semiconductor.
             1208          (b) "Semiconductor fabricating, processing, research, or development materials"
             1209      includes:
             1210          (i) parts used in the repairs or renovations of tangible personal property or a product
             1211      transferred electronically described in Subsection [(111)] (114)(a); or
             1212          (ii) a chemical, catalyst, or other material used to:
             1213          (A) produce or induce in a semiconductor a:
             1214          (I) chemical change; or
             1215          (II) physical change;
             1216          (B) remove impurities from a semiconductor; or
             1217          (C) improve the marketable condition of a semiconductor.
             1218          [(112)] (115) "Senior citizen center" means a facility having the primary purpose of
             1219      providing services to the aged as defined in Section 62A-3-101 .
             1220          [(113)] (116) "Simplified electronic return" means the electronic return:
             1221          (a) described in Section 318(C) of the agreement; and
             1222          (b) approved by the governing board of the agreement.
             1223          [(114)] (117) "Solar energy" means the sun used as the sole source of energy for
             1224      producing electricity.
             1225          [(115)] (118) (a) "Sports or recreational equipment" means an item:
             1226          (i) designed for human use; and
             1227          (ii) that is:
             1228          (A) worn in conjunction with:
             1229          (I) an athletic activity; or
             1230          (II) a recreational activity; and
             1231          (B) not suitable for general use.
             1232          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1233      commission shall make rules:
             1234          (i) listing the items that constitute "sports or recreational equipment"; and


             1235          (ii) that are consistent with the list of items that constitute "sports or recreational
             1236      equipment" under the agreement.
             1237          [(116)] (119) "State" means the state of Utah, its departments, and agencies.
             1238          [(117)] (120) "Storage" means any keeping or retention of tangible personal property or
             1239      any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
             1240      except sale in the regular course of business.
             1241          [(118)] (121) (a) Except as provided in Subsection [(118)] (121)(d) or (e), "tangible
             1242      personal property" means personal property that:
             1243          (i) may be:
             1244          (A) seen;
             1245          (B) weighed;
             1246          (C) measured;
             1247          (D) felt; or
             1248          (E) touched; or
             1249          (ii) is in any manner perceptible to the senses.
             1250          (b) "Tangible personal property" includes:
             1251          (i) electricity;
             1252          (ii) water;
             1253          (iii) gas;
             1254          (iv) steam; or
             1255          (v) prewritten computer software, regardless of the manner in which the prewritten
             1256      computer software is transferred.
             1257          (c) "Tangible personal property" includes the following regardless of whether the item
             1258      is attached to real property:
             1259          (i) a dishwasher;
             1260          (ii) a dryer;
             1261          (iii) a freezer;
             1262          (iv) a microwave;
             1263          (v) a refrigerator;
             1264          (vi) a stove;
             1265          (vii) a washer; or


             1266          (viii) an item similar to Subsections [(118)] (121)(c)(i) through (vii) as determined by
             1267      the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1268      Rulemaking Act.
             1269          (d) "Tangible personal property" does not include a product that is transferred
             1270      electronically.
             1271          (e) "Tangible personal property" does not include the following if attached to real
             1272      property, regardless of whether the attachment to real property is only through a line that
             1273      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             1274      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1275      Rulemaking Act:
             1276          (i) a hot water heater;
             1277          (ii) a water filtration system; or
             1278          (iii) a water softener system.
             1279          [(119)] (122) (a) "Telecommunications enabling or facilitating equipment, machinery,
             1280      or software" means an item listed in Subsection [(119)] (122)(b) if that item is purchased or
             1281      leased primarily to enable or facilitate one or more of the following to function:
             1282          (i) telecommunications switching or routing equipment, machinery, or software; or
             1283          (ii) telecommunications transmission equipment, machinery, or software.
             1284          (b) The following apply to Subsection [(119)] (122)(a):
             1285          (i) a pole;
             1286          (ii) software;
             1287          (iii) a supplementary power supply;
             1288          (iv) temperature or environmental equipment or machinery;
             1289          (v) test equipment;
             1290          (vi) a tower; or
             1291          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1292      Subsections [(119)] (122)(b)(i) through (vi) as determined by the commission by rule made in
             1293      accordance with Subsection [(119)] (122)(c).
             1294          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1295      commission may by rule define what constitutes equipment, machinery, or software that
             1296      functions similarly to an item listed in Subsections [(119)] (122)(b)(i) through (vi).


             1297          [(120)] (123) "Telecommunications equipment, machinery, or software required for
             1298      911 service" means equipment, machinery, or software that is required to comply with 47
             1299      C.F.R. Sec. 20.18.
             1300          [(121)] (124) "Telecommunications maintenance or repair equipment, machinery, or
             1301      software" means equipment, machinery, or software purchased or leased primarily to maintain
             1302      or repair one or more of the following, regardless of whether the equipment, machinery, or
             1303      software is purchased or leased as a spare part or as an upgrade or modification to one or more
             1304      of the following:
             1305          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1306          (b) telecommunications switching or routing equipment, machinery, or software; or
             1307          (c) telecommunications transmission equipment, machinery, or software.
             1308          [(122)] (125) (a) "Telecommunications service" means the electronic conveyance,
             1309      routing, or transmission of audio, data, video, voice, or any other information or signal to a
             1310      point, or among or between points.
             1311          (b) "Telecommunications service" includes:
             1312          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             1313      processing application is used to act:
             1314          (A) on the code, form, or protocol of the content;
             1315          (B) for the purpose of electronic conveyance, routing, or transmission; and
             1316          (C) regardless of whether the service:
             1317          (I) is referred to as voice over Internet protocol service; or
             1318          (II) is classified by the Federal Communications Commission as enhanced or value
             1319      added;
             1320          (ii) an 800 service;
             1321          (iii) a 900 service;
             1322          (iv) a fixed wireless service;
             1323          (v) a mobile wireless service;
             1324          (vi) a postpaid calling service;
             1325          (vii) a prepaid calling service;
             1326          (viii) a prepaid wireless calling service; or
             1327          (ix) a private communications service.


             1328          (c) "Telecommunications service" does not include:
             1329          (i) advertising, including directory advertising;
             1330          (ii) an ancillary service;
             1331          (iii) a billing and collection service provided to a third party;
             1332          (iv) a data processing and information service if:
             1333          (A) the data processing and information service allows data to be:
             1334          (I) (Aa) acquired;
             1335          (Bb) generated;
             1336          (Cc) processed;
             1337          (Dd) retrieved; or
             1338          (Ee) stored; and
             1339          (II) delivered by an electronic transmission to a purchaser; and
             1340          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             1341      or information;
             1342          (v) installation or maintenance of the following on a customer's premises:
             1343          (A) equipment; or
             1344          (B) wiring;
             1345          (vi) Internet access service;
             1346          (vii) a paging service;
             1347          (viii) a product transferred electronically, including:
             1348          (A) music;
             1349          (B) reading material;
             1350          (C) a ring tone;
             1351          (D) software; or
             1352          (E) video;
             1353          (ix) a radio and television audio and video programming service:
             1354          (A) regardless of the medium; and
             1355          (B) including:
             1356          (I) furnishing conveyance, routing, or transmission of a television audio and video
             1357      programming service by a programming service provider;
             1358          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or


             1359          (III) audio and video programming services delivered by a commercial mobile radio
             1360      service provider as defined in 47 C.F.R. Sec. 20.3;
             1361          (x) a value-added nonvoice data service; or
             1362          (xi) tangible personal property.
             1363          [(123)] (126) (a) "Telecommunications service provider" means a person that:
             1364          (i) owns, controls, operates, or manages a telecommunications service; and
             1365          (ii) engages in an activity described in Subsection [(123)] (126)(a)(i) for the shared use
             1366      with or resale to any person of the telecommunications service.
             1367          (b) A person described in Subsection [(123)] (126)(a) is a telecommunications service
             1368      provider whether or not the Public Service Commission of Utah regulates:
             1369          (i) that person; or
             1370          (ii) the telecommunications service that the person owns, controls, operates, or
             1371      manages.
             1372          [(124)] (127) (a) "Telecommunications switching or routing equipment, machinery, or
             1373      software" means an item listed in Subsection [(124)] (127)(b) if that item is purchased or
             1374      leased primarily for switching or routing:
             1375          (i) an ancillary service;
             1376          (ii) data communications;
             1377          (iii) voice communications; or
             1378          (iv) telecommunications service.
             1379          (b) The following apply to Subsection [(124)] (127)(a):
             1380          (i) a bridge;
             1381          (ii) a computer;
             1382          (iii) a cross connect;
             1383          (iv) a modem;
             1384          (v) a multiplexer;
             1385          (vi) plug in circuitry;
             1386          (vii) a router;
             1387          (viii) software;
             1388          (ix) a switch; or
             1389          (x) equipment, machinery, or software that functions similarly to an item listed in


             1390      Subsections [(124)] (127)(b)(i) through (ix) as determined by the commission by rule made in
             1391      accordance with Subsection [(124)] (127)(c).
             1392          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1393      commission may by rule define what constitutes equipment, machinery, or software that
             1394      functions similarly to an item listed in Subsections [(124)] (127)(b)(i) through (ix).
             1395          [(125)] (128) (a) "Telecommunications transmission equipment, machinery, or
             1396      software" means an item listed in Subsection [(125)] (128)(b) if that item is purchased or
             1397      leased primarily for sending, receiving, or transporting:
             1398          (i) an ancillary service;
             1399          (ii) data communications;
             1400          (iii) voice communications; or
             1401          (iv) telecommunications service.
             1402          (b) The following apply to Subsection [(125)] (128)(a):
             1403          (i) an amplifier;
             1404          (ii) a cable;
             1405          (iii) a closure;
             1406          (iv) a conduit;
             1407          (v) a controller;
             1408          (vi) a duplexer;
             1409          (vii) a filter;
             1410          (viii) an input device;
             1411          (ix) an input/output device;
             1412          (x) an insulator;
             1413          (xi) microwave machinery or equipment;
             1414          (xii) an oscillator;
             1415          (xiii) an output device;
             1416          (xiv) a pedestal;
             1417          (xv) a power converter;
             1418          (xvi) a power supply;
             1419          (xvii) a radio channel;
             1420          (xviii) a radio receiver;


             1421          (xix) a radio transmitter;
             1422          (xx) a repeater;
             1423          (xxi) software;
             1424          (xxii) a terminal;
             1425          (xxiii) a timing unit;
             1426          (xxiv) a transformer;
             1427          (xxv) a wire; or
             1428          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1429      Subsections [(125)] (128)(b)(i) through (xxv) as determined by the commission by rule made in
             1430      accordance with Subsection [(125)] (128)(c).
             1431          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1432      commission may by rule define what constitutes equipment, machinery, or software that
             1433      functions similarly to an item listed in Subsections [(125)] (128)(b)(i) through (xxv).
             1434          [(126)] (129) (a) "Textbook for a higher education course" means a textbook or other
             1435      printed material that is required for a course:
             1436          (i) offered by an institution of higher education; and
             1437          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             1438          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             1439          [(127)] (130) "Tobacco" means:
             1440          (a) a cigarette;
             1441          (b) a cigar;
             1442          (c) chewing tobacco;
             1443          (d) pipe tobacco; or
             1444          (e) any other item that contains tobacco.
             1445          [(128)] (131) "Unassisted amusement device" means an amusement device, skill
             1446      device, or ride device that is started and stopped by the purchaser or renter of the right to use or
             1447      operate the amusement device, skill device, or ride device.
             1448          [(129)] (132) (a) "Use" means the exercise of any right or power over tangible personal
             1449      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             1450      incident to the ownership or the leasing of that tangible personal property, product transferred
             1451      electronically, or service.


             1452          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             1453      property, a product transferred electronically, or a service in the regular course of business and
             1454      held for resale.
             1455          [(130)] (133) "Value-added nonvoice data service" means a service:
             1456          (a) that otherwise meets the definition of a telecommunications service except that a
             1457      computer processing application is used to act primarily for a purpose other than conveyance,
             1458      routing, or transmission; and
             1459          (b) with respect to which a computer processing application is used to act on data or
             1460      information:
             1461          (i) code;
             1462          (ii) content;
             1463          (iii) form; or
             1464          (iv) protocol.
             1465          [(131)] (134) (a) Subject to Subsection [(131)] (134)(b), "vehicle" means the following
             1466      that are required to be titled, registered, or titled and registered:
             1467          (i) an aircraft as defined in Section 72-10-102 ;
             1468          (ii) a vehicle as defined in Section 41-1a-102 ;
             1469          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             1470          (iv) a vessel as defined in Section 41-1a-102 .
             1471          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             1472          (i) a vehicle described in Subsection [(131)] (134)(a); or
             1473          (ii) (A) a locomotive;
             1474          (B) a freight car;
             1475          (C) railroad work equipment; or
             1476          (D) other railroad rolling stock.
             1477          [(132)] (135) "Vehicle dealer" means a person engaged in the business of buying,
             1478      selling, or exchanging a vehicle as defined in Subsection [(131)] (134).
             1479          [(133)] (136) (a) "Vertical service" means an ancillary service that:
             1480          (i) is offered in connection with one or more telecommunications services; and
             1481          (ii) offers an advanced calling feature that allows a customer to:
             1482          (A) identify a caller; and


             1483          (B) manage multiple calls and call connections.
             1484          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             1485      conference bridging service.
             1486          [(134)] (137) (a) "Voice mail service" means an ancillary service that enables a
             1487      customer to receive, send, or store a recorded message.
             1488          (b) "Voice mail service" does not include a vertical service that a customer is required
             1489      to have in order to utilize a voice mail service.
             1490          [(135)] (138) (a) Except as provided in Subsection [(135)] (138)(b), "waste energy
             1491      facility" means a facility that generates electricity:
             1492          (i) using as the primary source of energy waste materials that would be placed in a
             1493      landfill or refuse pit if it were not used to generate electricity, including:
             1494          (A) tires;
             1495          (B) waste coal;
             1496          (C) oil shale; or
             1497          (D) municipal solid waste; and
             1498          (ii) in amounts greater than actually required for the operation of the facility.
             1499          (b) "Waste energy facility" does not include a facility that incinerates:
             1500          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
             1501          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             1502          [(136)] (139) "Watercraft" means a vessel as defined in Section 73-18-2 .
             1503          [(137)] (140) "Wind energy" means wind used as the sole source of energy to produce
             1504      electricity.
             1505          [(138)] (141) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
             1506      geographic location by the United States Postal Service.
             1507          Section 2. Section 59-12-102 (Effective 07/01/14) is amended to read:
             1508           59-12-102 (Effective 07/01/14). Definitions.
             1509          As used in this chapter:
             1510          (1) "800 service" means a telecommunications service that:
             1511          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             1512          (b) is typically marketed:
             1513          (i) under the name 800 toll-free calling;


             1514          (ii) under the name 855 toll-free calling;
             1515          (iii) under the name 866 toll-free calling;
             1516          (iv) under the name 877 toll-free calling;
             1517          (v) under the name 888 toll-free calling; or
             1518          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             1519      Federal Communications Commission.
             1520          (2) (a) "900 service" means an inbound toll telecommunications service that:
             1521          (i) a subscriber purchases;
             1522          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             1523      the subscriber's:
             1524          (A) prerecorded announcement; or
             1525          (B) live service; and
             1526          (iii) is typically marketed:
             1527          (A) under the name 900 service; or
             1528          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             1529      Communications Commission.
             1530          (b) "900 service" does not include a charge for:
             1531          (i) a collection service a seller of a telecommunications service provides to a
             1532      subscriber; or
             1533          (ii) the following a subscriber sells to the subscriber's customer:
             1534          (A) a product; or
             1535          (B) a service.
             1536          (3) (a) "Admission or user fees" includes season passes.
             1537          (b) "Admission or user fees" does not include annual membership dues to private
             1538      organizations.
             1539          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             1540      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             1541      Agreement after November 12, 2002.
             1542          (5) "Agreement combined tax rate" means the sum of the tax rates:
             1543          (a) listed under Subsection (6); and
             1544          (b) that are imposed within a local taxing jurisdiction.


             1545          (6) "Agreement sales and use tax" means a tax imposed under:
             1546          (a) Subsection 59-12-103 (2)(a)(i)(A);
             1547          (b) Subsection 59-12-103 (2)(b)(i);
             1548          (c) Subsection 59-12-103 (2)(c)(i);
             1549          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             1550          (e) Section 59-12-204 ;
             1551          (f) Section 59-12-401 ;
             1552          (g) Section 59-12-402 ;
             1553          (h) Section 59-12-703 ;
             1554          (i) Section 59-12-802 ;
             1555          (j) Section 59-12-804 ;
             1556          (k) Section 59-12-1102 ;
             1557          (l) Section 59-12-1302 ;
             1558          (m) Section 59-12-1402 ;
             1559          (n) Section 59-12-1802 ;
             1560          (o) Section 59-12-2003 ;
             1561          (p) Section 59-12-2103 ;
             1562          (q) Section 59-12-2213 ;
             1563          (r) Section 59-12-2214 ;
             1564          (s) Section 59-12-2215 ;
             1565          (t) Section 59-12-2216 ;
             1566          (u) Section 59-12-2217 ; or
             1567          (v) Section 59-12-2218 .
             1568          (7) "Aircraft" is as defined in Section 72-10-102 .
             1569          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             1570          (a) except for:
             1571          (i) an airline as defined in Section 59-2-102 ; or
             1572          (ii) an affiliated group, as defined in Section 59-7-101 , except that "affiliated group"
             1573      includes a corporation that is qualified to do business but is not otherwise doing business in the
             1574      state, of an airline; and
             1575          (b) that has the workers, expertise, and facilities to perform the following, regardless of


             1576      whether the business entity performs the following in this state:
             1577          (i) check, diagnose, overhaul, and repair:
             1578          (A) an onboard system of a fixed wing turbine powered aircraft; and
             1579          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             1580          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             1581      engine;
             1582          (iii) perform at least the following maintenance on a fixed wing turbine powered
             1583      aircraft:
             1584          (A) an inspection;
             1585          (B) a repair, including a structural repair or modification;
             1586          (C) changing landing gear; and
             1587          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             1588          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             1589      completely apply new paint to the fixed wing turbine powered aircraft; and
             1590          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             1591      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             1592      authority that certifies the fixed wing turbine powered aircraft.
             1593          (9) "Alcoholic beverage" means a beverage that:
             1594          (a) is suitable for human consumption; and
             1595          (b) contains .5% or more alcohol by volume.
             1596          (10) "Alternative energy" means:
             1597          (a) biomass energy;
             1598          (b) geothermal energy;
             1599          (c) hydroelectric energy;
             1600          (d) solar energy;
             1601          (e) wind energy; or
             1602          (f) energy that is derived from:
             1603          (i) coal-to-liquids;
             1604          (ii) nuclear fuel;
             1605          (iii) oil-impregnated diatomaceous earth;
             1606          (iv) oil sands;


             1607          (v) oil shale; or
             1608          (vi) petroleum coke.
             1609          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
             1610      facility" means a facility that:
             1611          (i) uses alternative energy to produce electricity; and
             1612          (ii) has a production capacity of 2 megawatts or greater.
             1613          (b) A facility is an alternative energy electricity production facility regardless of
             1614      whether the facility is:
             1615          (i) connected to an electric grid; or
             1616          (ii) located on the premises of an electricity consumer.
             1617          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
             1618      provision of telecommunications service.
             1619          (b) "Ancillary service" includes:
             1620          (i) a conference bridging service;
             1621          (ii) a detailed communications billing service;
             1622          (iii) directory assistance;
             1623          (iv) a vertical service; or
             1624          (v) a voice mail service.
             1625          (13) "Area agency on aging" is as defined in Section 62A-3-101 .
             1626          (14) "Assisted amusement device" means an amusement device, skill device, or ride
             1627      device that is started and stopped by an individual:
             1628          (a) who is not the purchaser or renter of the right to use or operate the amusement
             1629      device, skill device, or ride device; and
             1630          (b) at the direction of the seller of the right to use the amusement device, skill device,
             1631      or ride device.
             1632          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
             1633      washing of tangible personal property if the cleaning or washing labor is primarily performed
             1634      by an individual:
             1635          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             1636      property; and
             1637          (b) at the direction of the seller of the cleaning or washing of the tangible personal


             1638      property.
             1639          (16) "Authorized carrier" means:
             1640          (a) in the case of vehicles operated over public highways, the holder of credentials
             1641      indicating that the vehicle is or will be operated pursuant to both the International Registration
             1642      Plan and the International Fuel Tax Agreement;
             1643          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             1644      certificate or air carrier's operating certificate; or
             1645          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             1646      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             1647          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
             1648      following that is used as the primary source of energy to produce fuel or electricity:
             1649          (i) material from a plant or tree; or
             1650          (ii) other organic matter that is available on a renewable basis, including:
             1651          (A) slash and brush from forests and woodlands;
             1652          (B) animal waste;
             1653          (C) methane produced:
             1654          (I) at landfills; or
             1655          (II) as a byproduct of the treatment of wastewater residuals;
             1656          (D) aquatic plants; and
             1657          (E) agricultural products.
             1658          (b) "Biomass energy" does not include:
             1659          (i) black liquor;
             1660          (ii) treated woods; or
             1661          (iii) biomass from municipal solid waste other than methane produced:
             1662          (A) at landfills; or
             1663          (B) as a byproduct of the treatment of wastewater residuals.
             1664          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             1665      property, products, or services if the tangible personal property, products, or services are:
             1666          (i) distinct and identifiable; and
             1667          (ii) sold for one nonitemized price.
             1668          (b) "Bundled transaction" does not include:


             1669          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             1670      the basis of the selection by the purchaser of the items of tangible personal property included in
             1671      the transaction;
             1672          (ii) the sale of real property;
             1673          (iii) the sale of services to real property;
             1674          (iv) the retail sale of tangible personal property and a service if:
             1675          (A) the tangible personal property:
             1676          (I) is essential to the use of the service; and
             1677          (II) is provided exclusively in connection with the service; and
             1678          (B) the service is the true object of the transaction;
             1679          (v) the retail sale of two services if:
             1680          (A) one service is provided that is essential to the use or receipt of a second service;
             1681          (B) the first service is provided exclusively in connection with the second service; and
             1682          (C) the second service is the true object of the transaction;
             1683          (vi) a transaction that includes tangible personal property or a product subject to
             1684      taxation under this chapter and tangible personal property or a product that is not subject to
             1685      taxation under this chapter if the:
             1686          (A) seller's purchase price of the tangible personal property or product subject to
             1687      taxation under this chapter is de minimis; or
             1688          (B) seller's sales price of the tangible personal property or product subject to taxation
             1689      under this chapter is de minimis; and
             1690          (vii) the retail sale of tangible personal property that is not subject to taxation under
             1691      this chapter and tangible personal property that is subject to taxation under this chapter if:
             1692          (A) that retail sale includes:
             1693          (I) food and food ingredients;
             1694          (II) a drug;
             1695          (III) durable medical equipment;
             1696          (IV) mobility enhancing equipment;
             1697          (V) an over-the-counter drug;
             1698          (VI) a prosthetic device; or
             1699          (VII) a medical supply; and


             1700          (B) subject to Subsection (18)(f):
             1701          (I) the seller's purchase price of the tangible personal property subject to taxation under
             1702      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             1703          (II) the seller's sales price of the tangible personal property subject to taxation under
             1704      this chapter is 50% or less of the seller's total sales price of that retail sale.
             1705          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
             1706      service that is distinct and identifiable does not include:
             1707          (A) packaging that:
             1708          (I) accompanies the sale of the tangible personal property, product, or service; and
             1709          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             1710      service;
             1711          (B) tangible personal property, a product, or a service provided free of charge with the
             1712      purchase of another item of tangible personal property, a product, or a service; or
             1713          (C) an item of tangible personal property, a product, or a service included in the
             1714      definition of "purchase price."
             1715          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
             1716      product, or a service is provided free of charge with the purchase of another item of tangible
             1717      personal property, a product, or a service if the sales price of the purchased item of tangible
             1718      personal property, product, or service does not vary depending on the inclusion of the tangible
             1719      personal property, product, or service provided free of charge.
             1720          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
             1721      does not include a price that is separately identified by tangible personal property, product, or
             1722      service on the following, regardless of whether the following is in paper format or electronic
             1723      format:
             1724          (A) a binding sales document; or
             1725          (B) another supporting sales-related document that is available to a purchaser.
             1726          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
             1727      supporting sales-related document that is available to a purchaser includes:
             1728          (A) a bill of sale;
             1729          (B) a contract;
             1730          (C) an invoice;


             1731          (D) a lease agreement;
             1732          (E) a periodic notice of rates and services;
             1733          (F) a price list;
             1734          (G) a rate card;
             1735          (H) a receipt; or
             1736          (I) a service agreement.
             1737          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
             1738      property or a product subject to taxation under this chapter is de minimis if:
             1739          (A) the seller's purchase price of the tangible personal property or product is 10% or
             1740      less of the seller's total purchase price of the bundled transaction; or
             1741          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             1742      the seller's total sales price of the bundled transaction.
             1743          (ii) For purposes of Subsection (18)(b)(vi), a seller:
             1744          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             1745      purchase price or sales price of the tangible personal property or product subject to taxation
             1746      under this chapter is de minimis; and
             1747          (B) may not use a combination of the seller's purchase price and the seller's sales price
             1748      to determine if the purchase price or sales price of the tangible personal property or product
             1749      subject to taxation under this chapter is de minimis.
             1750          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
             1751      contract to determine if the sales price of tangible personal property or a product is de minimis.
             1752          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
             1753      the seller's purchase price and the seller's sales price to determine if tangible personal property
             1754      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             1755      price of that retail sale.
             1756          (19) "Certified automated system" means software certified by the governing board of
             1757      the agreement that:
             1758          (a) calculates the agreement sales and use tax imposed within a local taxing
             1759      jurisdiction:
             1760          (i) on a transaction; and
             1761          (ii) in the states that are members of the agreement;


             1762          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             1763      member of the agreement; and
             1764          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
             1765          (20) "Certified service provider" means an agent certified:
             1766          (a) by the governing board of the agreement; and
             1767          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             1768      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             1769      own purchases.
             1770          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
             1771      suitable for general use.
             1772          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1773      commission shall make rules:
             1774          (i) listing the items that constitute "clothing"; and
             1775          (ii) that are consistent with the list of items that constitute "clothing" under the
             1776      agreement.
             1777          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             1778          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             1779      fuels that does not constitute industrial use under Subsection [(51)] (54) or residential use
             1780      under Subsection [(101)] (104).
             1781          (24) (a) "Common carrier" means a person engaged in or transacting the business of
             1782      transporting passengers, freight, merchandise, or other property for hire within this state.
             1783          (b) (i) "Common carrier" does not include a person who, at the time the person is
             1784      traveling to or from that person's place of employment, transports a passenger to or from the
             1785      passenger's place of employment.
             1786          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
             1787      Utah Administrative Rulemaking Act, the commission may make rules defining what
             1788      constitutes a person's place of employment.
             1789          (25) "Component part" includes:
             1790          (a) poultry, dairy, and other livestock feed, and their components;
             1791          (b) baling ties and twine used in the baling of hay and straw;
             1792          (c) fuel used for providing temperature control of orchards and commercial


             1793      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             1794      off-highway type farm machinery; and
             1795          (d) feed, seeds, and seedlings.
             1796          (26) "Computer" means an electronic device that accepts information:
             1797          (a) (i) in digital form; or
             1798          (ii) in a form similar to digital form; and
             1799          (b) manipulates that information for a result based on a sequence of instructions.
             1800          (27) "Computer software" means a set of coded instructions designed to cause:
             1801          (a) a computer to perform a task; or
             1802          (b) automatic data processing equipment to perform a task.
             1803          (28) "Computer software maintenance contract" means a contract that obligates a seller
             1804      of computer software to provide a customer with:
             1805          (a) future updates or upgrades to computer software;
             1806          (b) support services with respect to computer software; or
             1807          (c) a combination of Subsections (28)(a) and (b).
             1808          (29) (a) "Conference bridging service" means an ancillary service that links two or
             1809      more participants of an audio conference call or video conference call.
             1810          (b) "Conference bridging service" may include providing a telephone number as part of
             1811      the ancillary service described in Subsection (29)(a).
             1812          (c) "Conference bridging service" does not include a telecommunications service used
             1813      to reach the ancillary service described in Subsection (29)(a).
             1814          (30) "Construction materials" means any tangible personal property that will be
             1815      converted into real property.
             1816          (31) "Delivered electronically" means delivered to a purchaser by means other than
             1817      tangible storage media.
             1818          (32) (a) "Delivery charge" means a charge:
             1819          (i) by a seller of:
             1820          (A) tangible personal property;
             1821          (B) a product transferred electronically; or
             1822          (C) services; and
             1823          (ii) for preparation and delivery of the tangible personal property, product transferred


             1824      electronically, or services described in Subsection (32)(a)(i) to a location designated by the
             1825      purchaser.
             1826          (b) "Delivery charge" includes a charge for the following:
             1827          (i) transportation;
             1828          (ii) shipping;
             1829          (iii) postage;
             1830          (iv) handling;
             1831          (v) crating; or
             1832          (vi) packing.
             1833          (33) "Detailed telecommunications billing service" means an ancillary service of
             1834      separately stating information pertaining to individual calls on a customer's billing statement.
             1835          (34) "Dietary supplement" means a product, other than tobacco, that:
             1836          (a) is intended to supplement the diet;
             1837          (b) contains one or more of the following dietary ingredients:
             1838          (i) a vitamin;
             1839          (ii) a mineral;
             1840          (iii) an herb or other botanical;
             1841          (iv) an amino acid;
             1842          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             1843      dietary intake; or
             1844          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             1845      described in Subsections (34)(b)(i) through (v);
             1846          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
             1847          (A) tablet form;
             1848          (B) capsule form;
             1849          (C) powder form;
             1850          (D) softgel form;
             1851          (E) gelcap form; or
             1852          (F) liquid form; or
             1853          (ii) notwithstanding Subsection (34)(c)(i), if the product is not intended for ingestion in
             1854      a form described in Subsections (34)(c)(i)(A) through (F), is not represented:


             1855          (A) as conventional food; and
             1856          (B) for use as a sole item of:
             1857          (I) a meal; or
             1858          (II) the diet; and
             1859          (d) is required to be labeled as a dietary supplement:
             1860          (i) identifiable by the "Supplemental Facts" box found on the label; and
             1861          (ii) as required by 21 C.F.R. Sec. 101.36.
             1862          (35) (a) "Digital audio work" means a work that results from the fixation of a series of
             1863      musical, spoken, or other sounds.
             1864          (b) "Digital audio work" includes a ringtone.
             1865          (36) "Digital audio-visual work" means a series of related images which, when shown
             1866      in succession, imparts an impression of motion, together with accompanying sounds, if any.
             1867          (37) "Digital book" means a work that is generally recognized in the ordinary and usual
             1868      sense as a book.
             1869          [(35)] (38) (a) "Direct mail" means printed material delivered or distributed by United
             1870      States mail or other delivery service:
             1871          (i) to:
             1872          (A) a mass audience; or
             1873          (B) addressees on a mailing list provided:
             1874          (I) by a purchaser of the mailing list; or
             1875          (II) at the discretion of the purchaser of the mailing list; and
             1876          (ii) if the cost of the printed material is not billed directly to the recipients.
             1877          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             1878      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             1879          (c) "Direct mail" does not include multiple items of printed material delivered to a
             1880      single address.
             1881          [(36)] (39) "Directory assistance" means an ancillary service of providing:
             1882          (a) address information; or
             1883          (b) telephone number information.
             1884          [(37)] (40) (a) "Disposable home medical equipment or supplies" means medical
             1885      equipment or supplies that:


             1886          (i) cannot withstand repeated use; and
             1887          (ii) are purchased by, for, or on behalf of a person other than:
             1888          (A) a health care facility as defined in Section 26-21-2 ;
             1889          (B) a health care provider as defined in Section 78B-3-403 ;
             1890          (C) an office of a health care provider described in Subsection [(37)] (40)(a)(ii)(B); or
             1891          (D) a person similar to a person described in Subsections [(37)] (40)(a)(ii)(A) through
             1892      (C).
             1893          (b) "Disposable home medical equipment or supplies" does not include:
             1894          (i) a drug;
             1895          (ii) durable medical equipment;
             1896          (iii) a hearing aid;
             1897          (iv) a hearing aid accessory;
             1898          (v) mobility enhancing equipment; or
             1899          (vi) tangible personal property used to correct impaired vision, including:
             1900          (A) eyeglasses; or
             1901          (B) contact lenses.
             1902          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1903      commission may by rule define what constitutes medical equipment or supplies.
             1904          [(38)] (41) (a) "Drug" means a compound, substance, or preparation, or a component of
             1905      a compound, substance, or preparation that is:
             1906          (i) recognized in:
             1907          (A) the official United States Pharmacopoeia;
             1908          (B) the official Homeopathic Pharmacopoeia of the United States;
             1909          (C) the official National Formulary; or
             1910          (D) a supplement to a publication listed in Subsections [(38)] (41)(a)(i)(A) through
             1911      (C);
             1912          (ii) intended for use in the:
             1913          (A) diagnosis of disease;
             1914          (B) cure of disease;
             1915          (C) mitigation of disease;
             1916          (D) treatment of disease; or


             1917          (E) prevention of disease; or
             1918          (iii) intended to affect:
             1919          (A) the structure of the body; or
             1920          (B) any function of the body.
             1921          (b) "Drug" does not include:
             1922          (i) food and food ingredients;
             1923          (ii) a dietary supplement;
             1924          (iii) an alcoholic beverage; or
             1925          (iv) a prosthetic device.
             1926          [(39)] (42) (a) Except as provided in Subsection [(39)] (42)(c), "durable medical
             1927      equipment" means equipment that:
             1928          (i) can withstand repeated use;
             1929          (ii) is primarily and customarily used to serve a medical purpose;
             1930          (iii) generally is not useful to a person in the absence of illness or injury; and
             1931          (iv) is not worn in or on the body.
             1932          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             1933      equipment described in Subsection [(39)] (42)(a).
             1934          (c) Notwithstanding Subsection [(39)] (42)(a), "durable medical equipment" does not
             1935      include mobility enhancing equipment.
             1936          [(40)] (43) "Electronic" means:
             1937          (a) relating to technology; and
             1938          (b) having:
             1939          (i) electrical capabilities;
             1940          (ii) digital capabilities;
             1941          (iii) magnetic capabilities;
             1942          (iv) wireless capabilities;
             1943          (v) optical capabilities;
             1944          (vi) electromagnetic capabilities; or
             1945          (vii) capabilities similar to Subsections [(40)] (43)(b)(i) through (vi).
             1946          [(41)] (44) "Employee" is as defined in Section 59-10-401 .
             1947          [(42)] (45) "Fixed guideway" means a public transit facility that uses and occupies:


             1948          (a) rail for the use of public transit; or
             1949          (b) a separate right-of-way for the use of public transit.
             1950          [(43)] (46) "Fixed wing turbine powered aircraft" means an aircraft that:
             1951          (a) is powered by turbine engines;
             1952          (b) operates on jet fuel; and
             1953          (c) has wings that are permanently attached to the fuselage of the aircraft.
             1954          [(44)] (47) "Fixed wireless service" means a telecommunications service that provides
             1955      radio communication between fixed points.
             1956          [(45)] (48) (a) "Food and food ingredients" means substances:
             1957          (i) regardless of whether the substances are in:
             1958          (A) liquid form;
             1959          (B) concentrated form;
             1960          (C) solid form;
             1961          (D) frozen form;
             1962          (E) dried form; or
             1963          (F) dehydrated form; and
             1964          (ii) that are:
             1965          (A) sold for:
             1966          (I) ingestion by humans; or
             1967          (II) chewing by humans; and
             1968          (B) consumed for the substance's:
             1969          (I) taste; or
             1970          (II) nutritional value.
             1971          (b) "Food and food ingredients" includes an item described in Subsection [(86)]
             1972      (89)(b)(iii).
             1973          (c) "Food and food ingredients" does not include:
             1974          (i) an alcoholic beverage;
             1975          (ii) tobacco; or
             1976          (iii) prepared food.
             1977          [(46)] (49) (a) "Fundraising sales" means sales:
             1978          (i) (A) made by a school; or


             1979          (B) made by a school student;
             1980          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             1981      materials, or provide transportation; and
             1982          (iii) that are part of an officially sanctioned school activity.
             1983          (b) For purposes of Subsection [(46)] (49)(a)(iii), "officially sanctioned school activity"
             1984      means a school activity:
             1985          (i) that is conducted in accordance with a formal policy adopted by the school or school
             1986      district governing the authorization and supervision of fundraising activities;
             1987          (ii) that does not directly or indirectly compensate an individual teacher or other
             1988      educational personnel by direct payment, commissions, or payment in kind; and
             1989          (iii) the net or gross revenues from which are deposited in a dedicated account
             1990      controlled by the school or school district.
             1991          [(47)] (50) "Geothermal energy" means energy contained in heat that continuously
             1992      flows outward from the earth that is used as the sole source of energy to produce electricity.
             1993          [(48)] (51) "Governing board of the agreement" means the governing board of the
             1994      agreement that is:
             1995          (a) authorized to administer the agreement; and
             1996          (b) established in accordance with the agreement.
             1997          [(49)] (52) (a) For purposes of Subsection 59-12-104 (41), "governmental entity"
             1998      means:
             1999          (i) the executive branch of the state, including all departments, institutions, boards,
             2000      divisions, bureaus, offices, commissions, and committees;
             2001          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             2002      Office of the Court Administrator, and similar administrative units in the judicial branch;
             2003          (iii) the legislative branch of the state, including the House of Representatives, the
             2004      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             2005      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             2006      Analyst;
             2007          (iv) the National Guard;
             2008          (v) an independent entity as defined in Section 63E-1-102 ; or
             2009          (vi) a political subdivision as defined in Section 17B-1-102 .


             2010          (b) "Governmental entity" does not include the state systems of public and higher
             2011      education, including:
             2012          (i) a college campus of the Utah College of Applied Technology;
             2013          (ii) a school;
             2014          (iii) the State Board of Education;
             2015          (iv) the State Board of Regents; or
             2016          (v) an institution of higher education.
             2017          [(50)] (53) "Hydroelectric energy" means water used as the sole source of energy to
             2018      produce electricity.
             2019          [(51)] (54) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil,
             2020      or other fuels:
             2021          (a) in mining or extraction of minerals;
             2022          (b) in agricultural operations to produce an agricultural product up to the time of
             2023      harvest or placing the agricultural product into a storage facility, including:
             2024          (i) commercial greenhouses;
             2025          (ii) irrigation pumps;
             2026          (iii) farm machinery;
             2027          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             2028      registered under Title 41, Chapter 1a, Part 2, Registration; and
             2029          (v) other farming activities;
             2030          (c) in manufacturing tangible personal property at an establishment described in SIC
             2031      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             2032      Executive Office of the President, Office of Management and Budget;
             2033          (d) by a scrap recycler if:
             2034          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             2035      one or more of the following items into prepared grades of processed materials for use in new
             2036      products:
             2037          (A) iron;
             2038          (B) steel;
             2039          (C) nonferrous metal;
             2040          (D) paper;


             2041          (E) glass;
             2042          (F) plastic;
             2043          (G) textile; or
             2044          (H) rubber; and
             2045          (ii) the new products under Subsection [(51)] (54)(d)(i) would otherwise be made with
             2046      nonrecycled materials; or
             2047          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             2048      cogeneration facility as defined in Section 54-2-1 .
             2049          [(52)] (55) (a) Except as provided in Subsection [(52)] (55)(b), "installation charge"
             2050      means a charge for installing:
             2051          (i) tangible personal property; or
             2052          (ii) a product transferred electronically.
             2053          (b) "Installation charge" does not include a charge for:
             2054          (i) repairs or renovations of:
             2055          (A) tangible personal property; or
             2056          (B) a product transferred electronically; or
             2057          (ii) attaching tangible personal property or a product transferred electronically:
             2058          (A) to other tangible personal property; and
             2059          (B) as part of a manufacturing or fabrication process.
             2060          [(53)] (56) "Institution of higher education" means an institution of higher education
             2061      listed in Section 53B-2-101 .
             2062          [(54)] (57) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             2063      personal property or a product transferred electronically for:
             2064          (i) (A) a fixed term; or
             2065          (B) an indeterminate term; and
             2066          (ii) consideration.
             2067          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             2068      amount of consideration may be increased or decreased by reference to the amount realized
             2069      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             2070      Code.
             2071          (c) "Lease" or "rental" does not include:


             2072          (i) a transfer of possession or control of property under a security agreement or
             2073      deferred payment plan that requires the transfer of title upon completion of the required
             2074      payments;
             2075          (ii) a transfer of possession or control of property under an agreement that requires the
             2076      transfer of title:
             2077          (A) upon completion of required payments; and
             2078          (B) if the payment of an option price does not exceed the greater of:
             2079          (I) $100; or
             2080          (II) 1% of the total required payments; or
             2081          (iii) providing tangible personal property along with an operator for a fixed period of
             2082      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             2083      designed.
             2084          (d) For purposes of Subsection [(54)] (57)(c)(iii), an operator is necessary for
             2085      equipment to perform as designed if the operator's duties exceed the:
             2086          (i) set-up of tangible personal property;
             2087          (ii) maintenance of tangible personal property; or
             2088          (iii) inspection of tangible personal property.
             2089          [(55)] (58) "Life science establishment" means an establishment in this state that is
             2090      classified under the following NAICS codes of the 2007 North American Industry
             2091      Classification System of the federal Executive Office of the President, Office of Management
             2092      and Budget:
             2093          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
             2094          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
             2095      Manufacturing; or
             2096          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
             2097          [(56)] (59) "Life science research and development facility" means a facility owned,
             2098      leased, or rented by a life science establishment if research and development is performed in
             2099      51% or more of the total area of the facility.
             2100          [(57)] (60) "Load and leave" means delivery to a purchaser by use of a tangible storage
             2101      media if the tangible storage media is not physically transferred to the purchaser.
             2102          [(58)] (61) "Local taxing jurisdiction" means a:


             2103          (a) county that is authorized to impose an agreement sales and use tax;
             2104          (b) city that is authorized to impose an agreement sales and use tax; or
             2105          (c) town that is authorized to impose an agreement sales and use tax.
             2106          [(59)] (62) "Manufactured home" is as defined in Section 15A-1-302 .
             2107          [(60)] (63) For purposes of Section 59-12-104 , "manufacturing facility" means:
             2108          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             2109      Industrial Classification Manual of the federal Executive Office of the President, Office of
             2110      Management and Budget;
             2111          (b) a scrap recycler if:
             2112          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             2113      one or more of the following items into prepared grades of processed materials for use in new
             2114      products:
             2115          (A) iron;
             2116          (B) steel;
             2117          (C) nonferrous metal;
             2118          (D) paper;
             2119          (E) glass;
             2120          (F) plastic;
             2121          (G) textile; or
             2122          (H) rubber; and
             2123          (ii) the new products under Subsection [(60)] (63)(b)(i) would otherwise be made with
             2124      nonrecycled materials; or
             2125          (c) a cogeneration facility as defined in Section 54-2-1 .
             2126          [(61)] (64) "Member of the immediate family of the producer" means a person who is
             2127      related to a producer described in Subsection 59-12-104 (20)(a) as a:
             2128          (a) child or stepchild, regardless of whether the child or stepchild is:
             2129          (i) an adopted child or adopted stepchild; or
             2130          (ii) a foster child or foster stepchild;
             2131          (b) grandchild or stepgrandchild;
             2132          (c) grandparent or stepgrandparent;
             2133          (d) nephew or stepnephew;


             2134          (e) niece or stepniece;
             2135          (f) parent or stepparent;
             2136          (g) sibling or stepsibling;
             2137          (h) spouse;
             2138          (i) person who is the spouse of a person described in Subsections [(61)] (64)(a) through
             2139      (g); or
             2140          (j) person similar to a person described in Subsections [(61)] (64)(a) through (i) as
             2141      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             2142      Administrative Rulemaking Act.
             2143          [(62)] (65) "Mobile home" is as defined in Section 15A-1-302 .
             2144          [(63)] (66) "Mobile telecommunications service" is as defined in the Mobile
             2145      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             2146          [(64)] (67) (a) "Mobile wireless service" means a telecommunications service,
             2147      regardless of the technology used, if:
             2148          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             2149          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             2150          (iii) the origination point described in Subsection [(64)] (67)(a)(i) and the termination
             2151      point described in Subsection [(64)] (67)(a)(ii) are not fixed.
             2152          (b) "Mobile wireless service" includes a telecommunications service that is provided
             2153      by a commercial mobile radio service provider.
             2154          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2155      commission may by rule define "commercial mobile radio service provider."
             2156          [(65)] (68) (a) Except as provided in Subsection [(65)] (68)(c), "mobility enhancing
             2157      equipment" means equipment that is:
             2158          (i) primarily and customarily used to provide or increase the ability to move from one
             2159      place to another;
             2160          (ii) appropriate for use in a:
             2161          (A) home; or
             2162          (B) motor vehicle; and
             2163          (iii) not generally used by persons with normal mobility.
             2164          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of


             2165      the equipment described in Subsection [(65)] (68)(a).
             2166          (c) Notwithstanding Subsection [(65)] (68)(a), "mobility enhancing equipment" does
             2167      not include:
             2168          (i) a motor vehicle;
             2169          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
             2170      vehicle manufacturer;
             2171          (iii) durable medical equipment; or
             2172          (iv) a prosthetic device.
             2173          [(66)] (69) "Model 1 seller" means a seller registered under the agreement that has
             2174      selected a certified service provider as the seller's agent to perform all of the seller's sales and
             2175      use tax functions for agreement sales and use taxes other than the seller's obligation under
             2176      Section 59-12-124 to remit a tax on the seller's own purchases.
             2177          [(67)] (70) "Model 2 seller" means a seller registered under the agreement that:
             2178          (a) except as provided in Subsection [(67)] (70)(b), has selected a certified automated
             2179      system to perform the seller's sales tax functions for agreement sales and use taxes; and
             2180          (b) notwithstanding Subsection [(67)] (70)(a), retains responsibility for remitting all of
             2181      the sales tax:
             2182          (i) collected by the seller; and
             2183          (ii) to the appropriate local taxing jurisdiction.
             2184          [(68)] (71) (a) Subject to Subsection [(68)] (71)(b), "model 3 seller" means a seller
             2185      registered under the agreement that has:
             2186          (i) sales in at least five states that are members of the agreement;
             2187          (ii) total annual sales revenues of at least $500,000,000;
             2188          (iii) a proprietary system that calculates the amount of tax:
             2189          (A) for an agreement sales and use tax; and
             2190          (B) due to each local taxing jurisdiction; and
             2191          (iv) entered into a performance agreement with the governing board of the agreement.
             2192          (b) For purposes of Subsection [(68)] (71)(a), "model 3 seller" includes an affiliated
             2193      group of sellers using the same proprietary system.
             2194          [(69)] (72) "Model 4 seller" means a seller that is registered under the agreement and is
             2195      not a model 1 seller, model 2 seller, or model 3 seller.


             2196          [(70)] (73) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             2197          [(71)] (74) "Motor vehicle" is as defined in Section 41-1a-102 .
             2198          [(72)] (75) "Oil sands" means impregnated bituminous sands that:
             2199          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
             2200      other hydrocarbons, or otherwise treated;
             2201          (b) yield mixtures of liquid hydrocarbon; and
             2202          (c) require further processing other than mechanical blending before becoming finished
             2203      petroleum products.
             2204          [(73)] (76) "Oil shale" means a group of fine black to dark brown shales containing
             2205      kerogen material that yields petroleum upon heating and distillation.
             2206          [(74)] (77) "Optional computer software maintenance contract" means a computer
             2207      software maintenance contract that a customer is not obligated to purchase as a condition to the
             2208      retail sale of computer software.
             2209          [(75)] (78) (a) "Other fuels" means products that burn independently to produce heat or
             2210      energy.
             2211          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             2212      personal property.
             2213          [(76)] (79) (a) "Paging service" means a telecommunications service that provides
             2214      transmission of a coded radio signal for the purpose of activating a specific pager.
             2215          (b) For purposes of Subsection [(76)] (79)(a), the transmission of a coded radio signal
             2216      includes a transmission by message or sound.
             2217          [(77)] (80) "Pawnbroker" is as defined in Section 13-32a-102 .
             2218          [(78)] (81) "Pawn transaction" is as defined in Section 13-32a-102 .
             2219          [(79)] (82) (a) "Permanently attached to real property" means that for tangible personal
             2220      property attached to real property:
             2221          (i) the attachment of the tangible personal property to the real property:
             2222          (A) is essential to the use of the tangible personal property; and
             2223          (B) suggests that the tangible personal property will remain attached to the real
             2224      property in the same place over the useful life of the tangible personal property; or
             2225          (ii) if the tangible personal property is detached from the real property, the detachment
             2226      would:


             2227          (A) cause substantial damage to the tangible personal property; or
             2228          (B) require substantial alteration or repair of the real property to which the tangible
             2229      personal property is attached.
             2230          (b) "Permanently attached to real property" includes:
             2231          (i) the attachment of an accessory to the tangible personal property if the accessory is:
             2232          (A) essential to the operation of the tangible personal property; and
             2233          (B) attached only to facilitate the operation of the tangible personal property;
             2234          (ii) a temporary detachment of tangible personal property from real property for a
             2235      repair or renovation if the repair or renovation is performed where the tangible personal
             2236      property and real property are located; or
             2237          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             2238      Subsection [(79)] (82)(c)(iii) or (iv).
             2239          (c) "Permanently attached to real property" does not include:
             2240          (i) the attachment of portable or movable tangible personal property to real property if
             2241      that portable or movable tangible personal property is attached to real property only for:
             2242          (A) convenience;
             2243          (B) stability; or
             2244          (C) for an obvious temporary purpose;
             2245          (ii) the detachment of tangible personal property from real property except for the
             2246      detachment described in Subsection [(79)] (82)(b)(ii);
             2247          (iii) an attachment of the following tangible personal property to real property if the
             2248      attachment to real property is only through a line that supplies water, electricity, gas,
             2249      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             2250      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             2251          (A) a computer;
             2252          (B) a telephone;
             2253          (C) a television; or
             2254          (D) tangible personal property similar to Subsections [(79)] (82)(c)(iii)(A) through (C)
             2255      as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             2256      Administrative Rulemaking Act; or
             2257          (iv) an item listed in Subsection [(117)] (120)(c).


             2258          [(80)] (83) "Person" includes any individual, firm, partnership, joint venture,
             2259      association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
             2260      city, municipality, district, or other local governmental entity of the state, or any group or
             2261      combination acting as a unit.
             2262          [(81)] (84) "Place of primary use":
             2263          (a) for telecommunications service other than mobile telecommunications service,
             2264      means the street address representative of where the customer's use of the telecommunications
             2265      service primarily occurs, which shall be:
             2266          (i) the residential street address of the customer; or
             2267          (ii) the primary business street address of the customer; or
             2268          (b) for mobile telecommunications service, is as defined in the Mobile
             2269      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             2270          [(82)] (85) (a) "Postpaid calling service" means a telecommunications service a person
             2271      obtains by making a payment on a call-by-call basis:
             2272          (i) through the use of a:
             2273          (A) bank card;
             2274          (B) credit card;
             2275          (C) debit card; or
             2276          (D) travel card; or
             2277          (ii) by a charge made to a telephone number that is not associated with the origination
             2278      or termination of the telecommunications service.
             2279          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             2280      service, that would be a prepaid wireless calling service if the service were exclusively a
             2281      telecommunications service.
             2282          [(83)] (86) "Postproduction" means an activity related to the finishing or duplication of
             2283      a medium described in Subsection 59-12-104 (54)(a).
             2284          [(84)] (87) "Prepaid calling service" means a telecommunications service:
             2285          (a) that allows a purchaser access to telecommunications service that is exclusively
             2286      telecommunications service;
             2287          (b) that:
             2288          (i) is paid for in advance; and


             2289          (ii) enables the origination of a call using an:
             2290          (A) access number; or
             2291          (B) authorization code;
             2292          (c) that is dialed:
             2293          (i) manually; or
             2294          (ii) electronically; and
             2295          (d) sold in predetermined units or dollars that decline:
             2296          (i) by a known amount; and
             2297          (ii) with use.
             2298          [(85)] (88) "Prepaid wireless calling service" means a telecommunications service:
             2299          (a) that provides the right to utilize:
             2300          (i) mobile wireless service; and
             2301          (ii) other service that is not a telecommunications service, including:
             2302          (A) the download of a product transferred electronically;
             2303          (B) a content service; or
             2304          (C) an ancillary service;
             2305          (b) that:
             2306          (i) is paid for in advance; and
             2307          (ii) enables the origination of a call using an:
             2308          (A) access number; or
             2309          (B) authorization code;
             2310          (c) that is dialed:
             2311          (i) manually; or
             2312          (ii) electronically; and
             2313          (d) sold in predetermined units or dollars that decline:
             2314          (i) by a known amount; and
             2315          (ii) with use.
             2316          [(86)] (89) (a) "Prepared food" means:
             2317          (i) food:
             2318          (A) sold in a heated state; or
             2319          (B) heated by a seller;


             2320          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             2321      item; or
             2322          (iii) except as provided in Subsection [(86)] (89)(c), food sold with an eating utensil
             2323      provided by the seller, including a:
             2324          (A) plate;
             2325          (B) knife;
             2326          (C) fork;
             2327          (D) spoon;
             2328          (E) glass;
             2329          (F) cup;
             2330          (G) napkin; or
             2331          (H) straw.
             2332          (b) "Prepared food" does not include:
             2333          (i) food that a seller only:
             2334          (A) cuts;
             2335          (B) repackages; or
             2336          (C) pasteurizes; or
             2337          (ii) (A) the following:
             2338          (I) raw egg;
             2339          (II) raw fish;
             2340          (III) raw meat;
             2341          (IV) raw poultry; or
             2342          (V) a food containing an item described in Subsections [(86)] (89)(b)(ii)(A)(I) through
             2343      (IV); and
             2344          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             2345      Food and Drug Administration's Food Code that a consumer cook the items described in
             2346      Subsection [(86)] (89)(b)(ii)(A) to prevent food borne illness; or
             2347          (iii) the following if sold without eating utensils provided by the seller:
             2348          (A) food and food ingredients sold by a seller if the seller's proper primary
             2349      classification under the 2002 North American Industry Classification System of the federal
             2350      Executive Office of the President, Office of Management and Budget, is manufacturing in


             2351      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             2352      Manufacturing;
             2353          (B) food and food ingredients sold in an unheated state:
             2354          (I) by weight or volume; and
             2355          (II) as a single item; or
             2356          (C) a bakery item, including:
             2357          (I) a bagel;
             2358          (II) a bar;
             2359          (III) a biscuit;
             2360          (IV) bread;
             2361          (V) a bun;
             2362          (VI) a cake;
             2363          (VII) a cookie;
             2364          (VIII) a croissant;
             2365          (IX) a danish;
             2366          (X) a donut;
             2367          (XI) a muffin;
             2368          (XII) a pastry;
             2369          (XIII) a pie;
             2370          (XIV) a roll;
             2371          (XV) a tart;
             2372          (XVI) a torte; or
             2373          (XVII) a tortilla.
             2374          (c) Notwithstanding Subsection [(86)] (89)(a)(iii), an eating utensil provided by the
             2375      seller does not include the following used to transport the food:
             2376          (i) a container; or
             2377          (ii) packaging.
             2378          [(87)] (90) "Prescription" means an order, formula, or recipe that is issued:
             2379          (a) (i) orally;
             2380          (ii) in writing;
             2381          (iii) electronically; or


             2382          (iv) by any other manner of transmission; and
             2383          (b) by a licensed practitioner authorized by the laws of a state.
             2384          [(88)] (91) (a) Except as provided in Subsection [(88)] (91)(b)(ii) or (iii), "prewritten
             2385      computer software" means computer software that is not designed and developed:
             2386          (i) by the author or other creator of the computer software; and
             2387          (ii) to the specifications of a specific purchaser.
             2388          (b) "Prewritten computer software" includes:
             2389          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             2390      software is not designed and developed:
             2391          (A) by the author or other creator of the computer software; and
             2392          (B) to the specifications of a specific purchaser;
             2393          (ii) notwithstanding Subsection [(88)] (91)(a), computer software designed and
             2394      developed by the author or other creator of the computer software to the specifications of a
             2395      specific purchaser if the computer software is sold to a person other than the purchaser; or
             2396          (iii) notwithstanding Subsection [(88)] (91)(a) and except as provided in Subsection
             2397      [(88)] (91)(c), prewritten computer software or a prewritten portion of prewritten computer
             2398      software:
             2399          (A) that is modified or enhanced to any degree; and
             2400          (B) if the modification or enhancement described in Subsection [(88)] (91)(b)(iii)(A) is
             2401      designed and developed to the specifications of a specific purchaser.
             2402          (c) Notwithstanding Subsection [(88)] (91)(b)(iii), "prewritten computer software"
             2403      does not include a modification or enhancement described in Subsection [(88)] (91)(b)(iii) if
             2404      the charges for the modification or enhancement are:
             2405          (i) reasonable; and
             2406          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), separately stated on the
             2407      invoice or other statement of price provided to the purchaser at the time of sale or later, as
             2408      demonstrated by:
             2409          (A) the books and records the seller keeps at the time of the transaction in the regular
             2410      course of business, including books and records the seller keeps at the time of the transaction in
             2411      the regular course of business for nontax purposes;
             2412          (B) a preponderance of the facts and circumstances at the time of the transaction; and


             2413          (C) the understanding of all of the parties to the transaction.
             2414          [(89)] (92) (a) "Private communication service" means a telecommunications service:
             2415          (i) that entitles a customer to exclusive or priority use of one or more communications
             2416      channels between or among termination points; and
             2417          (ii) regardless of the manner in which the one or more communications channels are
             2418      connected.
             2419          (b) "Private communications service" includes the following provided in connection
             2420      with the use of one or more communications channels:
             2421          (i) an extension line;
             2422          (ii) a station;
             2423          (iii) switching capacity; or
             2424          (iv) another associated service that is provided in connection with the use of one or
             2425      more communications channels as defined in Section 59-12-215 .
             2426          [(90)] (93) (a) Except as provided in Subsection [(90)] (93)(b), "product transferred
             2427      electronically" means a product transferred electronically that would be subject to a tax under
             2428      this chapter if that product was transferred in a manner other than electronically.
             2429          (b) "Product transferred electronically" does not include:
             2430          (i) an ancillary service;
             2431          (ii) computer software; or
             2432          (iii) a telecommunications service.
             2433          [(91)] (94) (a) "Prosthetic device" means a device that is worn on or in the body to:
             2434          (i) artificially replace a missing portion of the body;
             2435          (ii) prevent or correct a physical deformity or physical malfunction; or
             2436          (iii) support a weak or deformed portion of the body.
             2437          (b) "Prosthetic device" includes:
             2438          (i) parts used in the repairs or renovation of a prosthetic device;
             2439          (ii) replacement parts for a prosthetic device;
             2440          (iii) a dental prosthesis; or
             2441          (iv) a hearing aid.
             2442          (c) "Prosthetic device" does not include:
             2443          (i) corrective eyeglasses; or


             2444          (ii) contact lenses.
             2445          [(92)] (95) (a) "Protective equipment" means an item:
             2446          (i) for human wear; and
             2447          (ii) that is:
             2448          (A) designed as protection:
             2449          (I) to the wearer against injury or disease; or
             2450          (II) against damage or injury of other persons or property; and
             2451          (B) not suitable for general use.
             2452          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2453      commission shall make rules:
             2454          (i) listing the items that constitute "protective equipment"; and
             2455          (ii) that are consistent with the list of items that constitute "protective equipment"
             2456      under the agreement.
             2457          [(93)] (96) (a) For purposes of Subsection 59-12-104 (41), "publication" means any
             2458      written or printed matter, other than a photocopy:
             2459          (i) regardless of:
             2460          (A) characteristics;
             2461          (B) copyright;
             2462          (C) form;
             2463          (D) format;
             2464          (E) method of reproduction; or
             2465          (F) source; and
             2466          (ii) made available in printed or electronic format.
             2467          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2468      commission may by rule define the term "photocopy."
             2469          [(94)] (97) (a) "Purchase price" and "sales price" mean the total amount of
             2470      consideration:
             2471          (i) valued in money; and
             2472          (ii) for which tangible personal property, a product transferred electronically, or
             2473      services are:
             2474          (A) sold;


             2475          (B) leased; or
             2476          (C) rented.
             2477          (b) "Purchase price" and "sales price" include:
             2478          (i) the seller's cost of the tangible personal property, a product transferred
             2479      electronically, or services sold;
             2480          (ii) expenses of the seller, including:
             2481          (A) the cost of materials used;
             2482          (B) a labor cost;
             2483          (C) a service cost;
             2484          (D) interest;
             2485          (E) a loss;
             2486          (F) the cost of transportation to the seller; or
             2487          (G) a tax imposed on the seller;
             2488          (iii) a charge by the seller for any service necessary to complete the sale; or
             2489          (iv) consideration a seller receives from a person other than the purchaser if:
             2490          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             2491      and
             2492          (II) the consideration described in Subsection [(94)] (97)(b)(iv)(A)(I) is directly related
             2493      to a price reduction or discount on the sale;
             2494          (B) the seller has an obligation to pass the price reduction or discount through to the
             2495      purchaser;
             2496          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             2497      the seller at the time of the sale to the purchaser; and
             2498          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             2499      seller to claim a price reduction or discount; and
             2500          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             2501      coupon, or other documentation with the understanding that the person other than the seller
             2502      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             2503          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             2504      organization allowed a price reduction or discount, except that a preferred customer card that is
             2505      available to any patron of a seller does not constitute membership in a group or organization


             2506      allowed a price reduction or discount; or
             2507          (III) the price reduction or discount is identified as a third party price reduction or
             2508      discount on the:
             2509          (Aa) invoice the purchaser receives; or
             2510          (Bb) certificate, coupon, or other documentation the purchaser presents.
             2511          (c) "Purchase price" and "sales price" do not include:
             2512          (i) a discount:
             2513          (A) in a form including:
             2514          (I) cash;
             2515          (II) term; or
             2516          (III) coupon;
             2517          (B) that is allowed by a seller;
             2518          (C) taken by a purchaser on a sale; and
             2519          (D) that is not reimbursed by a third party; or
             2520          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), the following if separately
             2521      stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
             2522      sale or later, as demonstrated by the books and records the seller keeps at the time of the
             2523      transaction in the regular course of business, including books and records the seller keeps at the
             2524      time of the transaction in the regular course of business for nontax purposes, by a
             2525      preponderance of the facts and circumstances at the time of the transaction, and by the
             2526      understanding of all of the parties to the transaction:
             2527          (A) the following from credit extended on the sale of tangible personal property or
             2528      services:
             2529          (I) a carrying charge;
             2530          (II) a financing charge; or
             2531          (III) an interest charge;
             2532          (B) a delivery charge;
             2533          (C) an installation charge;
             2534          (D) a manufacturer rebate on a motor vehicle; or
             2535          (E) a tax or fee legally imposed directly on the consumer.
             2536          [(95)] (98) "Purchaser" means a person to whom:


             2537          (a) a sale of tangible personal property is made;
             2538          (b) a product is transferred electronically; or
             2539          (c) a service is furnished.
             2540          [(96)] (99) "Regularly rented" means:
             2541          (a) rented to a guest for value three or more times during a calendar year; or
             2542          (b) advertised or held out to the public as a place that is regularly rented to guests for
             2543      value.
             2544          [(97)] (100) "Rental" is as defined in Subsection [(54)] (57).
             2545          [(98)] (101) (a) Except as provided in Subsection [(98)] (101)(b), "repairs or
             2546      renovations of tangible personal property" means:
             2547          (i) a repair or renovation of tangible personal property that is not permanently attached
             2548      to real property; or
             2549          (ii) attaching tangible personal property or a product transferred electronically to other
             2550      tangible personal property or detaching tangible personal property or a product transferred
             2551      electronically from other tangible personal property if:
             2552          (A) the other tangible personal property to which the tangible personal property or
             2553      product transferred electronically is attached or from which the tangible personal property or
             2554      product transferred electronically is detached is not permanently attached to real property; and
             2555          (B) the attachment of tangible personal property or a product transferred electronically
             2556      to other tangible personal property or detachment of tangible personal property or a product
             2557      transferred electronically from other tangible personal property is made in conjunction with a
             2558      repair or replacement of tangible personal property or a product transferred electronically.
             2559          (b) "Repairs or renovations of tangible personal property" does not include:
             2560          (i) attaching prewritten computer software to other tangible personal property if the
             2561      other tangible personal property to which the prewritten computer software is attached is not
             2562      permanently attached to real property; or
             2563          (ii) detaching prewritten computer software from other tangible personal property if the
             2564      other tangible personal property from which the prewritten computer software is detached is
             2565      not permanently attached to real property.
             2566          [(99)] (102) "Research and development" means the process of inquiry or
             2567      experimentation aimed at the discovery of facts, devices, technologies, or applications and the


             2568      process of preparing those devices, technologies, or applications for marketing.
             2569          [(100)] (103) (a) "Residential telecommunications services" means a
             2570      telecommunications service or an ancillary service that is provided to an individual for personal
             2571      use:
             2572          (i) at a residential address; or
             2573          (ii) at an institution, including a nursing home or a school, if the telecommunications
             2574      service or ancillary service is provided to and paid for by the individual residing at the
             2575      institution rather than the institution.
             2576          (b) For purposes of Subsection [(100)] (103)(a)(i), a residential address includes an:
             2577          (i) apartment; or
             2578          (ii) other individual dwelling unit.
             2579          [(101)] (104) "Residential use" means the use in or around a home, apartment building,
             2580      sleeping quarters, and similar facilities or accommodations.
             2581          [(102)] (105) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
             2582      other than:
             2583          (a) resale;
             2584          (b) sublease; or
             2585          (c) subrent.
             2586          [(103)] (106) (a) "Retailer" means any person engaged in a regularly organized
             2587      business in tangible personal property or any other taxable transaction under Subsection
             2588      59-12-103 (1), and who is selling to the user or consumer and not for resale.
             2589          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             2590      engaged in the business of selling to users or consumers within the state.
             2591          [(104)] (107) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             2592      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             2593      Subsection 59-12-103 (1), for consideration.
             2594          (b) "Sale" includes:
             2595          (i) installment and credit sales;
             2596          (ii) any closed transaction constituting a sale;
             2597          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             2598      chapter;


             2599          (iv) any transaction if the possession of property is transferred but the seller retains the
             2600      title as security for the payment of the price; and
             2601          (v) any transaction under which right to possession, operation, or use of any article of
             2602      tangible personal property is granted under a lease or contract and the transfer of possession
             2603      would be taxable if an outright sale were made.
             2604          [(105)] (108) "Sale at retail" is as defined in Subsection [(102)] (105).
             2605          [(106)] (109) "Sale-leaseback transaction" means a transaction by which title to
             2606      tangible personal property or a product transferred electronically that is subject to a tax under
             2607      this chapter is transferred:
             2608          (a) by a purchaser-lessee;
             2609          (b) to a lessor;
             2610          (c) for consideration; and
             2611          (d) if:
             2612          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             2613      of the tangible personal property or product transferred electronically;
             2614          (ii) the sale of the tangible personal property or product transferred electronically to the
             2615      lessor is intended as a form of financing:
             2616          (A) for the tangible personal property or product transferred electronically; and
             2617          (B) to the purchaser-lessee; and
             2618          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             2619      is required to:
             2620          (A) capitalize the tangible personal property or product transferred electronically for
             2621      financial reporting purposes; and
             2622          (B) account for the lease payments as payments made under a financing arrangement.
             2623          [(107)] (110) "Sales price" is as defined in Subsection [(94)] (97).
             2624          [(108)] (111) (a) "Sales relating to schools" means the following sales by, amounts
             2625      paid to, or amounts charged by a school:
             2626          (i) sales that are directly related to the school's educational functions or activities
             2627      including:
             2628          (A) the sale of:
             2629          (I) textbooks;


             2630          (II) textbook fees;
             2631          (III) laboratory fees;
             2632          (IV) laboratory supplies; or
             2633          (V) safety equipment;
             2634          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             2635      that:
             2636          (I) a student is specifically required to wear as a condition of participation in a
             2637      school-related event or school-related activity; and
             2638          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             2639      place of ordinary clothing;
             2640          (C) sales of the following if the net or gross revenues generated by the sales are
             2641      deposited into a school district fund or school fund dedicated to school meals:
             2642          (I) food and food ingredients; or
             2643          (II) prepared food; or
             2644          (D) transportation charges for official school activities; or
             2645          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             2646      event or school-related activity.
             2647          (b) "Sales relating to schools" does not include:
             2648          (i) bookstore sales of items that are not educational materials or supplies;
             2649          (ii) except as provided in Subsection [(108)] (111)(a)(i)(B):
             2650          (A) clothing;
             2651          (B) clothing accessories or equipment;
             2652          (C) protective equipment; or
             2653          (D) sports or recreational equipment; or
             2654          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             2655      event or school-related activity if the amounts paid or charged are passed through to a person:
             2656          (A) other than a:
             2657          (I) school;
             2658          (II) nonprofit organization authorized by a school board or a governing body of a
             2659      private school to organize and direct a competitive secondary school activity; or
             2660          (III) nonprofit association authorized by a school board or a governing body of a


             2661      private school to organize and direct a competitive secondary school activity; and
             2662          (B) that is required to collect sales and use taxes under this chapter.
             2663          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2664      commission may make rules defining the term "passed through."
             2665          [(109)] (112) For purposes of this section and Section 59-12-104 , "school":
             2666          (a) means:
             2667          (i) an elementary school or a secondary school that:
             2668          (A) is a:
             2669          (I) public school; or
             2670          (II) private school; and
             2671          (B) provides instruction for one or more grades kindergarten through 12; or
             2672          (ii) a public school district; and
             2673          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             2674          [(110)] (113) "Seller" means a person that makes a sale, lease, or rental of:
             2675          (a) tangible personal property;
             2676          (b) a product transferred electronically; or
             2677          (c) a service.
             2678          [(111)] (114) (a) "Semiconductor fabricating, processing, research, or development
             2679      materials" means tangible personal property or a product transferred electronically if the
             2680      tangible personal property or product transferred electronically is:
             2681          (i) used primarily in the process of:
             2682          (A) (I) manufacturing a semiconductor;
             2683          (II) fabricating a semiconductor; or
             2684          (III) research or development of a:
             2685          (Aa) semiconductor; or
             2686          (Bb) semiconductor manufacturing process; or
             2687          (B) maintaining an environment suitable for a semiconductor; or
             2688          (ii) consumed primarily in the process of:
             2689          (A) (I) manufacturing a semiconductor;
             2690          (II) fabricating a semiconductor; or
             2691          (III) research or development of a:


             2692          (Aa) semiconductor; or
             2693          (Bb) semiconductor manufacturing process; or
             2694          (B) maintaining an environment suitable for a semiconductor.
             2695          (b) "Semiconductor fabricating, processing, research, or development materials"
             2696      includes:
             2697          (i) parts used in the repairs or renovations of tangible personal property or a product
             2698      transferred electronically described in Subsection [(111)] (114)(a); or
             2699          (ii) a chemical, catalyst, or other material used to:
             2700          (A) produce or induce in a semiconductor a:
             2701          (I) chemical change; or
             2702          (II) physical change;
             2703          (B) remove impurities from a semiconductor; or
             2704          (C) improve the marketable condition of a semiconductor.
             2705          [(112)] (115) "Senior citizen center" means a facility having the primary purpose of
             2706      providing services to the aged as defined in Section 62A-3-101 .
             2707          [(113)] (116) "Simplified electronic return" means the electronic return:
             2708          (a) described in Section 318(C) of the agreement; and
             2709          (b) approved by the governing board of the agreement.
             2710          [(114)] (117) "Solar energy" means the sun used as the sole source of energy for
             2711      producing electricity.
             2712          [(115)] (118) (a) "Sports or recreational equipment" means an item:
             2713          (i) designed for human use; and
             2714          (ii) that is:
             2715          (A) worn in conjunction with:
             2716          (I) an athletic activity; or
             2717          (II) a recreational activity; and
             2718          (B) not suitable for general use.
             2719          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2720      commission shall make rules:
             2721          (i) listing the items that constitute "sports or recreational equipment"; and
             2722          (ii) that are consistent with the list of items that constitute "sports or recreational


             2723      equipment" under the agreement.
             2724          [(116)] (119) "State" means the state of Utah, its departments, and agencies.
             2725          [(117)] (120) "Storage" means any keeping or retention of tangible personal property or
             2726      any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
             2727      except sale in the regular course of business.
             2728          [(118)] (121) (a) Except as provided in Subsection [(118)] (121)(d) or (e), "tangible
             2729      personal property" means personal property that:
             2730          (i) may be:
             2731          (A) seen;
             2732          (B) weighed;
             2733          (C) measured;
             2734          (D) felt; or
             2735          (E) touched; or
             2736          (ii) is in any manner perceptible to the senses.
             2737          (b) "Tangible personal property" includes:
             2738          (i) electricity;
             2739          (ii) water;
             2740          (iii) gas;
             2741          (iv) steam; or
             2742          (v) prewritten computer software, regardless of the manner in which the prewritten
             2743      computer software is transferred.
             2744          (c) "Tangible personal property" includes the following regardless of whether the item
             2745      is attached to real property:
             2746          (i) a dishwasher;
             2747          (ii) a dryer;
             2748          (iii) a freezer;
             2749          (iv) a microwave;
             2750          (v) a refrigerator;
             2751          (vi) a stove;
             2752          (vii) a washer; or
             2753          (viii) an item similar to Subsections [(118)] (121)(c)(i) through (vii) as determined by


             2754      the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             2755      Rulemaking Act.
             2756          (d) "Tangible personal property" does not include a product that is transferred
             2757      electronically.
             2758          (e) "Tangible personal property" does not include the following if attached to real
             2759      property, regardless of whether the attachment to real property is only through a line that
             2760      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             2761      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             2762      Rulemaking Act:
             2763          (i) a hot water heater;
             2764          (ii) a water filtration system; or
             2765          (iii) a water softener system.
             2766          [(119)] (122) (a) "Telecommunications enabling or facilitating equipment, machinery,
             2767      or software" means an item listed in Subsection [(119)] (122)(b) if that item is purchased or
             2768      leased primarily to enable or facilitate one or more of the following to function:
             2769          (i) telecommunications switching or routing equipment, machinery, or software; or
             2770          (ii) telecommunications transmission equipment, machinery, or software.
             2771          (b) The following apply to Subsection [(119)] (122)(a):
             2772          (i) a pole;
             2773          (ii) software;
             2774          (iii) a supplementary power supply;
             2775          (iv) temperature or environmental equipment or machinery;
             2776          (v) test equipment;
             2777          (vi) a tower; or
             2778          (vii) equipment, machinery, or software that functions similarly to an item listed in
             2779      Subsections [(119)] (122)(b)(i) through (vi) as determined by the commission by rule made in
             2780      accordance with Subsection [(119)] (122)(c).
             2781          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2782      commission may by rule define what constitutes equipment, machinery, or software that
             2783      functions similarly to an item listed in Subsections [(119)] (122)(b)(i) through (vi).
             2784          [(120)] (123) "Telecommunications equipment, machinery, or software required for


             2785      911 service" means equipment, machinery, or software that is required to comply with 47
             2786      C.F.R. Sec. 20.18.
             2787          [(121)] (124) "Telecommunications maintenance or repair equipment, machinery, or
             2788      software" means equipment, machinery, or software purchased or leased primarily to maintain
             2789      or repair one or more of the following, regardless of whether the equipment, machinery, or
             2790      software is purchased or leased as a spare part or as an upgrade or modification to one or more
             2791      of the following:
             2792          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             2793          (b) telecommunications switching or routing equipment, machinery, or software; or
             2794          (c) telecommunications transmission equipment, machinery, or software.
             2795          [(122)] (125) (a) "Telecommunications service" means the electronic conveyance,
             2796      routing, or transmission of audio, data, video, voice, or any other information or signal to a
             2797      point, or among or between points.
             2798          (b) "Telecommunications service" includes:
             2799          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             2800      processing application is used to act:
             2801          (A) on the code, form, or protocol of the content;
             2802          (B) for the purpose of electronic conveyance, routing, or transmission; and
             2803          (C) regardless of whether the service:
             2804          (I) is referred to as voice over Internet protocol service; or
             2805          (II) is classified by the Federal Communications Commission as enhanced or value
             2806      added;
             2807          (ii) an 800 service;
             2808          (iii) a 900 service;
             2809          (iv) a fixed wireless service;
             2810          (v) a mobile wireless service;
             2811          (vi) a postpaid calling service;
             2812          (vii) a prepaid calling service;
             2813          (viii) a prepaid wireless calling service; or
             2814          (ix) a private communications service.
             2815          (c) "Telecommunications service" does not include:


             2816          (i) advertising, including directory advertising;
             2817          (ii) an ancillary service;
             2818          (iii) a billing and collection service provided to a third party;
             2819          (iv) a data processing and information service if:
             2820          (A) the data processing and information service allows data to be:
             2821          (I) (Aa) acquired;
             2822          (Bb) generated;
             2823          (Cc) processed;
             2824          (Dd) retrieved; or
             2825          (Ee) stored; and
             2826          (II) delivered by an electronic transmission to a purchaser; and
             2827          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             2828      or information;
             2829          (v) installation or maintenance of the following on a customer's premises:
             2830          (A) equipment; or
             2831          (B) wiring;
             2832          (vi) Internet access service;
             2833          (vii) a paging service;
             2834          (viii) a product transferred electronically, including:
             2835          (A) music;
             2836          (B) reading material;
             2837          (C) a ring tone;
             2838          (D) software; or
             2839          (E) video;
             2840          (ix) a radio and television audio and video programming service:
             2841          (A) regardless of the medium; and
             2842          (B) including:
             2843          (I) furnishing conveyance, routing, or transmission of a television audio and video
             2844      programming service by a programming service provider;
             2845          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             2846          (III) audio and video programming services delivered by a commercial mobile radio


             2847      service provider as defined in 47 C.F.R. Sec. 20.3;
             2848          (x) a value-added nonvoice data service; or
             2849          (xi) tangible personal property.
             2850          [(123)] (126) (a) "Telecommunications service provider" means a person that:
             2851          (i) owns, controls, operates, or manages a telecommunications service; and
             2852          (ii) engages in an activity described in Subsection [(123)] (126)(a)(i) for the shared use
             2853      with or resale to any person of the telecommunications service.
             2854          (b) A person described in Subsection [(123)] (126)(a) is a telecommunications service
             2855      provider whether or not the Public Service Commission of Utah regulates:
             2856          (i) that person; or
             2857          (ii) the telecommunications service that the person owns, controls, operates, or
             2858      manages.
             2859          [(124)] (127) (a) "Telecommunications switching or routing equipment, machinery, or
             2860      software" means an item listed in Subsection [(124)] (127)(b) if that item is purchased or
             2861      leased primarily for switching or routing:
             2862          (i) an ancillary service;
             2863          (ii) data communications;
             2864          (iii) voice communications; or
             2865          (iv) telecommunications service.
             2866          (b) The following apply to Subsection [(124)] (127)(a):
             2867          (i) a bridge;
             2868          (ii) a computer;
             2869          (iii) a cross connect;
             2870          (iv) a modem;
             2871          (v) a multiplexer;
             2872          (vi) plug in circuitry;
             2873          (vii) a router;
             2874          (viii) software;
             2875          (ix) a switch; or
             2876          (x) equipment, machinery, or software that functions similarly to an item listed in
             2877      Subsections [(124)] (127)(b)(i) through (ix) as determined by the commission by rule made in


             2878      accordance with Subsection [(124)] (127)(c).
             2879          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2880      commission may by rule define what constitutes equipment, machinery, or software that
             2881      functions similarly to an item listed in Subsections [(124)] (127)(b)(i) through (ix).
             2882          [(125)] (128) (a) "Telecommunications transmission equipment, machinery, or
             2883      software" means an item listed in Subsection [(125)] (128)(b) if that item is purchased or
             2884      leased primarily for sending, receiving, or transporting:
             2885          (i) an ancillary service;
             2886          (ii) data communications;
             2887          (iii) voice communications; or
             2888          (iv) telecommunications service.
             2889          (b) The following apply to Subsection [(125)] (128)(a):
             2890          (i) an amplifier;
             2891          (ii) a cable;
             2892          (iii) a closure;
             2893          (iv) a conduit;
             2894          (v) a controller;
             2895          (vi) a duplexer;
             2896          (vii) a filter;
             2897          (viii) an input device;
             2898          (ix) an input/output device;
             2899          (x) an insulator;
             2900          (xi) microwave machinery or equipment;
             2901          (xii) an oscillator;
             2902          (xiii) an output device;
             2903          (xiv) a pedestal;
             2904          (xv) a power converter;
             2905          (xvi) a power supply;
             2906          (xvii) a radio channel;
             2907          (xviii) a radio receiver;
             2908          (xix) a radio transmitter;


             2909          (xx) a repeater;
             2910          (xxi) software;
             2911          (xxii) a terminal;
             2912          (xxiii) a timing unit;
             2913          (xxiv) a transformer;
             2914          (xxv) a wire; or
             2915          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             2916      Subsections [(125)] (128)(b)(i) through (xxv) as determined by the commission by rule made in
             2917      accordance with Subsection [(125)] (128)(c).
             2918          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2919      commission may by rule define what constitutes equipment, machinery, or software that
             2920      functions similarly to an item listed in Subsections [(125)] (128)(b)(i) through (xxv).
             2921          [(126)] (129) (a) "Textbook for a higher education course" means a textbook or other
             2922      printed material that is required for a course:
             2923          (i) offered by an institution of higher education; and
             2924          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             2925          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             2926          [(127)] (130) "Tobacco" means:
             2927          (a) a cigarette;
             2928          (b) a cigar;
             2929          (c) chewing tobacco;
             2930          (d) pipe tobacco; or
             2931          (e) any other item that contains tobacco.
             2932          [(128)] (131) "Unassisted amusement device" means an amusement device, skill
             2933      device, or ride device that is started and stopped by the purchaser or renter of the right to use or
             2934      operate the amusement device, skill device, or ride device.
             2935          [(129)] (132) (a) "Use" means the exercise of any right or power over tangible personal
             2936      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             2937      incident to the ownership or the leasing of that tangible personal property, product transferred
             2938      electronically, or service.
             2939          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal


             2940      property, a product transferred electronically, or a service in the regular course of business and
             2941      held for resale.
             2942          [(130)] (133) "Value-added nonvoice data service" means a service:
             2943          (a) that otherwise meets the definition of a telecommunications service except that a
             2944      computer processing application is used to act primarily for a purpose other than conveyance,
             2945      routing, or transmission; and
             2946          (b) with respect to which a computer processing application is used to act on data or
             2947      information:
             2948          (i) code;
             2949          (ii) content;
             2950          (iii) form; or
             2951          (iv) protocol.
             2952          [(131)] (134) (a) Subject to Subsection [(131)] (134)(b), "vehicle" means the following
             2953      that are required to be titled, registered, or titled and registered:
             2954          (i) an aircraft as defined in Section 72-10-102 ;
             2955          (ii) a vehicle as defined in Section 41-1a-102 ;
             2956          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             2957          (iv) a vessel as defined in Section 41-1a-102 .
             2958          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             2959          (i) a vehicle described in Subsection [(131)] (134)(a); or
             2960          (ii) (A) a locomotive;
             2961          (B) a freight car;
             2962          (C) railroad work equipment; or
             2963          (D) other railroad rolling stock.
             2964          [(132)] (135) "Vehicle dealer" means a person engaged in the business of buying,
             2965      selling, or exchanging a vehicle as defined in Subsection [(131)] (134).
             2966          [(133)] (136) (a) "Vertical service" means an ancillary service that:
             2967          (i) is offered in connection with one or more telecommunications services; and
             2968          (ii) offers an advanced calling feature that allows a customer to:
             2969          (A) identify a caller; and
             2970          (B) manage multiple calls and call connections.


             2971          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             2972      conference bridging service.
             2973          [(134)] (137) (a) "Voice mail service" means an ancillary service that enables a
             2974      customer to receive, send, or store a recorded message.
             2975          (b) "Voice mail service" does not include a vertical service that a customer is required
             2976      to have in order to utilize a voice mail service.
             2977          [(135)] (138) (a) Except as provided in Subsection [(135)] (138)(b), "waste energy
             2978      facility" means a facility that generates electricity:
             2979          (i) using as the primary source of energy waste materials that would be placed in a
             2980      landfill or refuse pit if it were not used to generate electricity, including:
             2981          (A) tires;
             2982          (B) waste coal;
             2983          (C) oil shale; or
             2984          (D) municipal solid waste; and
             2985          (ii) in amounts greater than actually required for the operation of the facility.
             2986          (b) "Waste energy facility" does not include a facility that incinerates:
             2987          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
             2988          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             2989          [(136)] (139) "Watercraft" means a vessel as defined in Section 73-18-2 .
             2990          [(137)] (140) "Wind energy" means wind used as the sole source of energy to produce
             2991      electricity.
             2992          [(138)] (141) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
             2993      geographic location by the United States Postal Service.
             2994          Section 3. Section 59-12-104 is amended to read:
             2995           59-12-104. Exemptions.
             2996          The following sales and uses are exempt from the taxes imposed by this chapter:
             2997          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             2998      under Chapter 13, Motor and Special Fuel Tax Act;
             2999          (2) subject to Section 59-12-104.6 , sales to the state, its institutions, and its political
             3000      subdivisions; however, this exemption does not apply to sales of:
             3001          (a) construction materials except:


             3002          (i) construction materials purchased by or on behalf of institutions of the public
             3003      education system as defined in Utah Constitution Article X, Section 2, provided the
             3004      construction materials are clearly identified and segregated and installed or converted to real
             3005      property which is owned by institutions of the public education system; and
             3006          (ii) construction materials purchased by the state, its institutions, or its political
             3007      subdivisions which are installed or converted to real property by employees of the state, its
             3008      institutions, or its political subdivisions; or
             3009          (b) tangible personal property in connection with the construction, operation,
             3010      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             3011      providing additional project capacity, as defined in Section 11-13-103 ;
             3012          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             3013          (i) the proceeds of each sale do not exceed $1; and
             3014          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             3015      the cost of the item described in Subsection (3)(b) as goods consumed; and
             3016          (b) Subsection (3)(a) applies to:
             3017          (i) food and food ingredients; or
             3018          (ii) prepared food;
             3019          (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
             3020          (i) alcoholic beverages;
             3021          (ii) food and food ingredients; or
             3022          (iii) prepared food;
             3023          (b) sales of tangible personal property or a product transferred electronically:
             3024          (i) to a passenger;
             3025          (ii) by a commercial airline carrier; and
             3026          (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
             3027          (c) services related to Subsection (4)(a) or (b);
             3028          (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
             3029      and equipment:
             3030          (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
             3031      North American Industry Classification System of the federal Executive Office of the
             3032      President, Office of Management and Budget; and


             3033          (II) for:
             3034          (Aa) installation in an aircraft, including services relating to the installation of parts or
             3035      equipment in the aircraft;
             3036          (Bb) renovation of an aircraft; or
             3037          (Cc) repair of an aircraft; or
             3038          (B) for installation in an aircraft operated by a common carrier in interstate or foreign
             3039      commerce; or
             3040          (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
             3041      aircraft operated by a common carrier in interstate or foreign commerce; and
             3042          (b) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             3043      a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
             3044      refund:
             3045          (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
             3046          (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
             3047          (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
             3048      the sale prior to filing for the refund;
             3049          (iv) for sales and use taxes paid under this chapter on the sale;
             3050          (v) in accordance with Section 59-1-1410 ; and
             3051          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             3052      the person files for the refund on or before September 30, 2011;
             3053          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             3054      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             3055      exhibitor, distributor, or commercial television or radio broadcaster;
             3056          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             3057      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             3058      washing of tangible personal property;
             3059          (b) if a seller that sells at the same business location assisted cleaning or washing of
             3060      tangible personal property and cleaning or washing of tangible personal property that is not
             3061      assisted cleaning or washing of tangible personal property, the exemption described in
             3062      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             3063      or washing of the tangible personal property; and


             3064          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
             3065      Utah Administrative Rulemaking Act, the commission may make rules:
             3066          (i) governing the circumstances under which sales are at the same business location;
             3067      and
             3068          (ii) establishing the procedures and requirements for a seller to separately account for
             3069      sales of assisted cleaning or washing of tangible personal property;
             3070          (8) sales made to or by religious or charitable institutions in the conduct of their regular
             3071      religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
             3072      fulfilled;
             3073          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
             3074      this state if the vehicle is:
             3075          (a) not registered in this state; and
             3076          (b) (i) not used in this state; or
             3077          (ii) used in this state:
             3078          (A) if the vehicle is not used to conduct business, for a time period that does not
             3079      exceed the longer of:
             3080          (I) 30 days in any calendar year; or
             3081          (II) the time period necessary to transport the vehicle to the borders of this state; or
             3082          (B) if the vehicle is used to conduct business, for the time period necessary to transport
             3083      the vehicle to the borders of this state;
             3084          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             3085          (i) the item is intended for human use; and
             3086          (ii) (A) a prescription was issued for the item; or
             3087          (B) the item was purchased by a hospital or other medical facility; and
             3088          (b) (i) Subsection (10)(a) applies to:
             3089          (A) a drug;
             3090          (B) a syringe; or
             3091          (C) a stoma supply; and
             3092          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3093      commission may by rule define the terms:
             3094          (A) "syringe"; or


             3095          (B) "stoma supply";
             3096          (11) sales or use of property, materials, or services used in the construction of or
             3097      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             3098          (12) (a) sales of an item described in Subsection (12)(c) served by:
             3099          (i) the following if the item described in Subsection (12)(c) is not available to the
             3100      general public:
             3101          (A) a church; or
             3102          (B) a charitable institution;
             3103          (ii) an institution of higher education if:
             3104          (A) the item described in Subsection (12)(c) is not available to the general public; or
             3105          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             3106      offered by the institution of higher education; or
             3107          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             3108          (i) a medical facility; or
             3109          (ii) a nursing facility; and
             3110          (c) Subsections (12)(a) and (b) apply to:
             3111          (i) food and food ingredients;
             3112          (ii) prepared food; or
             3113          (iii) alcoholic beverages;
             3114          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
             3115      or a product transferred electronically by a person:
             3116          (i) regardless of the number of transactions involving the sale of that tangible personal
             3117      property or product transferred electronically by that person; and
             3118          (ii) not regularly engaged in the business of selling that type of tangible personal
             3119      property or product transferred electronically;
             3120          (b) this Subsection (13) does not apply if:
             3121          (i) the sale is one of a series of sales of a character to indicate that the person is
             3122      regularly engaged in the business of selling that type of tangible personal property or product
             3123      transferred electronically;
             3124          (ii) the person holds that person out as regularly engaged in the business of selling that
             3125      type of tangible personal property or product transferred electronically;


             3126          (iii) the person sells an item of tangible personal property or product transferred
             3127      electronically that the person purchased as a sale that is exempt under Subsection (25); or
             3128          (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
             3129      this state in which case the tax is based upon:
             3130          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
             3131      sold; or
             3132          (B) in the absence of a bill of sale or other written evidence of value, the fair market
             3133      value of the vehicle or vessel being sold at the time of the sale as determined by the
             3134      commission; and
             3135          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             3136      commission shall make rules establishing the circumstances under which:
             3137          (i) a person is regularly engaged in the business of selling a type of tangible personal
             3138      property or product transferred electronically;
             3139          (ii) a sale of tangible personal property or a product transferred electronically is one of
             3140      a series of sales of a character to indicate that a person is regularly engaged in the business of
             3141      selling that type of tangible personal property or product transferred electronically; or
             3142          (iii) a person holds that person out as regularly engaged in the business of selling a type
             3143      of tangible personal property or product transferred electronically;
             3144          (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
             3145      July 1, 2006, for a purchase or lease by a manufacturing facility except for a cogeneration
             3146      facility, of the following:
             3147          (i) machinery and equipment that:
             3148          (A) are used: