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S.B. 171
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8 LONG TITLE
9 General Description:
10 This bill enacts a sales and use tax exemption for electronic financial payment services.
11 Highlighted Provisions:
12 This bill:
13 . defines terms;
14 . enacts a sales and use tax exemption for electronic financial payment services; and
15 . makes technical and conforming changes.
16 Money Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 This bill provides effective dates.
20 Utah Code Sections Affected:
21 AMENDS:
22 59-12-102 (Superseded 07/01/14), as last amended by Laws of Utah 2012, Chapters
23 255, 312, 405, and 410
24 59-12-102 (Effective 07/01/14), as last amended by Laws of Utah 2012, Chapters 255,
25 312, 405, 410, and 424
26 59-12-104, as last amended by Laws of Utah 2012, Chapters 255, 399, 405, and 410
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28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 59-12-102 (Superseded 07/01/14) is amended to read:
30 59-12-102 (Superseded 07/01/14). Definitions.
31 As used in this chapter:
32 (1) "800 service" means a telecommunications service that:
33 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
34 (b) is typically marketed:
35 (i) under the name 800 toll-free calling;
36 (ii) under the name 855 toll-free calling;
37 (iii) under the name 866 toll-free calling;
38 (iv) under the name 877 toll-free calling;
39 (v) under the name 888 toll-free calling; or
40 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
41 Federal Communications Commission.
42 (2) (a) "900 service" means an inbound toll telecommunications service that:
43 (i) a subscriber purchases;
44 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
45 the subscriber's:
46 (A) prerecorded announcement; or
47 (B) live service; and
48 (iii) is typically marketed:
49 (A) under the name 900 service; or
50 (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
51 Communications Commission.
52 (b) "900 service" does not include a charge for:
53 (i) a collection service a seller of a telecommunications service provides to a
54 subscriber; or
55 (ii) the following a subscriber sells to the subscriber's customer:
56 (A) a product; or
57 (B) a service.
58 (3) (a) "Admission or user fees" includes season passes.
59 (b) "Admission or user fees" does not include annual membership dues to private
60 organizations.
61 (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
62 November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
63 Agreement after November 12, 2002.
64 (5) "Agreement combined tax rate" means the sum of the tax rates:
65 (a) listed under Subsection (6); and
66 (b) that are imposed within a local taxing jurisdiction.
67 (6) "Agreement sales and use tax" means a tax imposed under:
68 (a) Subsection 59-12-103 (2)(a)(i)(A);
69 (b) Subsection 59-12-103 (2)(b)(i);
70 (c) Subsection 59-12-103 (2)(c)(i);
71 (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
72 (e) Section 59-12-204 ;
73 (f) Section 59-12-401 ;
74 (g) Section 59-12-402 ;
75 (h) Section 59-12-703 ;
76 (i) Section 59-12-802 ;
77 (j) Section 59-12-804 ;
78 (k) Section 59-12-1102 ;
79 (l) Section 59-12-1302 ;
80 (m) Section 59-12-1402 ;
81 (n) Section 59-12-1802 ;
82 (o) Section 59-12-2003 ;
83 (p) Section 59-12-2103 ;
84 (q) Section 59-12-2213 ;
85 (r) Section 59-12-2214 ;
86 (s) Section 59-12-2215 ;
87 (t) Section 59-12-2216 ;
88 (u) Section 59-12-2217 ; or
89 (v) Section 59-12-2218 .
90 (7) "Aircraft" is as defined in Section 72-10-102 .
91 (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
92 (a) except for:
93 (i) an airline as defined in Section 59-2-102 ; or
94 (ii) an affiliated group, as defined in Section 59-7-101 , except that "affiliated group"
95 includes a corporation that is qualified to do business but is not otherwise doing business in the
96 state, of an airline; and
97 (b) that has the workers, expertise, and facilities to perform the following, regardless of
98 whether the business entity performs the following in this state:
99 (i) check, diagnose, overhaul, and repair:
100 (A) an onboard system of a fixed wing turbine powered aircraft; and
101 (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
102 (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
103 engine;
104 (iii) perform at least the following maintenance on a fixed wing turbine powered
105 aircraft:
106 (A) an inspection;
107 (B) a repair, including a structural repair or modification;
108 (C) changing landing gear; and
109 (D) addressing issues related to an aging fixed wing turbine powered aircraft;
110 (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
111 completely apply new paint to the fixed wing turbine powered aircraft; and
112 (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
113 results in a change in the fixed wing turbine powered aircraft's certification requirements by the
114 authority that certifies the fixed wing turbine powered aircraft.
115 (9) "Alcoholic beverage" means a beverage that:
116 (a) is suitable for human consumption; and
117 (b) contains .5% or more alcohol by volume.
118 (10) "Alternative energy" means:
119 (a) biomass energy;
120 (b) geothermal energy;
121 (c) hydroelectric energy;
122 (d) solar energy;
123 (e) wind energy; or
124 (f) energy that is derived from:
125 (i) coal-to-liquids;
126 (ii) nuclear fuel;
127 (iii) oil-impregnated diatomaceous earth;
128 (iv) oil sands;
129 (v) oil shale; or
130 (vi) petroleum coke.
131 (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
132 facility" means a facility that:
133 (i) uses alternative energy to produce electricity; and
134 (ii) has a production capacity of 2 megawatts or greater.
135 (b) A facility is an alternative energy electricity production facility regardless of
136 whether the facility is:
137 (i) connected to an electric grid; or
138 (ii) located on the premises of an electricity consumer.
139 (12) (a) "Ancillary service" means a service associated with, or incidental to, the
140 provision of telecommunications service.
141 (b) "Ancillary service" includes:
142 (i) a conference bridging service;
143 (ii) a detailed communications billing service;
144 (iii) directory assistance;
145 (iv) a vertical service; or
146 (v) a voice mail service.
147 (13) "Area agency on aging" is as defined in Section 62A-3-101 .
148 (14) "Assisted amusement device" means an amusement device, skill device, or ride
149 device that is started and stopped by an individual:
150 (a) who is not the purchaser or renter of the right to use or operate the amusement
151 device, skill device, or ride device; and
152 (b) at the direction of the seller of the right to use the amusement device, skill device,
153 or ride device.
154 (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
155 washing of tangible personal property if the cleaning or washing labor is primarily performed
156 by an individual:
157 (a) who is not the purchaser of the cleaning or washing of the tangible personal
158 property; and
159 (b) at the direction of the seller of the cleaning or washing of the tangible personal
160 property.
161 (16) "Authorized carrier" means:
162 (a) in the case of vehicles operated over public highways, the holder of credentials
163 indicating that the vehicle is or will be operated pursuant to both the International Registration
164 Plan and the International Fuel Tax Agreement;
165 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
166 certificate or air carrier's operating certificate; or
167 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
168 stock, the holder of a certificate issued by the United States Surface Transportation Board.
169 (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
170 following that is used as the primary source of energy to produce fuel or electricity:
171 (i) material from a plant or tree; or
172 (ii) other organic matter that is available on a renewable basis, including:
173 (A) slash and brush from forests and woodlands;
174 (B) animal waste;
175 (C) methane produced:
176 (I) at landfills; or
177 (II) as a byproduct of the treatment of wastewater residuals;
178 (D) aquatic plants; and
179 (E) agricultural products.
180 (b) "Biomass energy" does not include:
181 (i) black liquor;
182 (ii) treated woods; or
183 (iii) biomass from municipal solid waste other than methane produced:
184 (A) at landfills; or
185 (B) as a byproduct of the treatment of wastewater residuals.
186 (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
187 property, products, or services if the tangible personal property, products, or services are:
188 (i) distinct and identifiable; and
189 (ii) sold for one nonitemized price.
190 (b) "Bundled transaction" does not include:
191 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
192 the basis of the selection by the purchaser of the items of tangible personal property included in
193 the transaction;
194 (ii) the sale of real property;
195 (iii) the sale of services to real property;
196 (iv) the retail sale of tangible personal property and a service if:
197 (A) the tangible personal property:
198 (I) is essential to the use of the service; and
199 (II) is provided exclusively in connection with the service; and
200 (B) the service is the true object of the transaction;
201 (v) the retail sale of two services if:
202 (A) one service is provided that is essential to the use or receipt of a second service;
203 (B) the first service is provided exclusively in connection with the second service; and
204 (C) the second service is the true object of the transaction;
205 (vi) a transaction that includes tangible personal property or a product subject to
206 taxation under this chapter and tangible personal property or a product that is not subject to
207 taxation under this chapter if the:
208 (A) seller's purchase price of the tangible personal property or product subject to
209 taxation under this chapter is de minimis; or
210 (B) seller's sales price of the tangible personal property or product subject to taxation
211 under this chapter is de minimis; and
212 (vii) the retail sale of tangible personal property that is not subject to taxation under
213 this chapter and tangible personal property that is subject to taxation under this chapter if:
214 (A) that retail sale includes:
215 (I) food and food ingredients;
216 (II) a drug;
217 (III) durable medical equipment;
218 (IV) mobility enhancing equipment;
219 (V) an over-the-counter drug;
220 (VI) a prosthetic device; or
221 (VII) a medical supply; and
222 (B) subject to Subsection (18)(f):
223 (I) the seller's purchase price of the tangible personal property subject to taxation under
224 this chapter is 50% or less of the seller's total purchase price of that retail sale; or
225 (II) the seller's sales price of the tangible personal property subject to taxation under
226 this chapter is 50% or less of the seller's total sales price of that retail sale.
227 (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
228 service that is distinct and identifiable does not include:
229 (A) packaging that:
230 (I) accompanies the sale of the tangible personal property, product, or service; and
231 (II) is incidental or immaterial to the sale of the tangible personal property, product, or
232 service;
233 (B) tangible personal property, a product, or a service provided free of charge with the
234 purchase of another item of tangible personal property, a product, or a service; or
235 (C) an item of tangible personal property, a product, or a service included in the
236 definition of "purchase price."
237 (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
238 product, or a service is provided free of charge with the purchase of another item of tangible
239 personal property, a product, or a service if the sales price of the purchased item of tangible
240 personal property, product, or service does not vary depending on the inclusion of the tangible
241 personal property, product, or service provided free of charge.
242 (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
243 does not include a price that is separately identified by tangible personal property, product, or
244 service on the following, regardless of whether the following is in paper format or electronic
245 format:
246 (A) a binding sales document; or
247 (B) another supporting sales-related document that is available to a purchaser.
248 (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
249 supporting sales-related document that is available to a purchaser includes:
250 (A) a bill of sale;
251 (B) a contract;
252 (C) an invoice;
253 (D) a lease agreement;
254 (E) a periodic notice of rates and services;
255 (F) a price list;
256 (G) a rate card;
257 (H) a receipt; or
258 (I) a service agreement.
259 (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
260 property or a product subject to taxation under this chapter is de minimis if:
261 (A) the seller's purchase price of the tangible personal property or product is 10% or
262 less of the seller's total purchase price of the bundled transaction; or
263 (B) the seller's sales price of the tangible personal property or product is 10% or less of
264 the seller's total sales price of the bundled transaction.
265 (ii) For purposes of Subsection (18)(b)(vi), a seller:
266 (A) shall use the seller's purchase price or the seller's sales price to determine if the
267 purchase price or sales price of the tangible personal property or product subject to taxation
268 under this chapter is de minimis; and
269 (B) may not use a combination of the seller's purchase price and the seller's sales price
270 to determine if the purchase price or sales price of the tangible personal property or product
271 subject to taxation under this chapter is de minimis.
272 (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
273 contract to determine if the sales price of tangible personal property or a product is de minimis.
274 (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
275 the seller's purchase price and the seller's sales price to determine if tangible personal property
276 subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
277 price of that retail sale.
278 (19) "Certified automated system" means software certified by the governing board of
279 the agreement that:
280 (a) calculates the agreement sales and use tax imposed within a local taxing
281 jurisdiction:
282 (i) on a transaction; and
283 (ii) in the states that are members of the agreement;
284 (b) determines the amount of agreement sales and use tax to remit to a state that is a
285 member of the agreement; and
286 (c) maintains a record of the transaction described in Subsection (19)(a)(i).
287 (20) "Certified service provider" means an agent certified:
288 (a) by the governing board of the agreement; and
289 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
290 use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
291 own purchases.
292 (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
293 suitable for general use.
294 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
295 commission shall make rules:
296 (i) listing the items that constitute "clothing"; and
297 (ii) that are consistent with the list of items that constitute "clothing" under the
298 agreement.
299 (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
300 (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
301 fuels that does not constitute industrial use under Subsection [
302 under Subsection [
303 (24) (a) "Common carrier" means a person engaged in or transacting the business of
304 transporting passengers, freight, merchandise, or other property for hire within this state.
305 (b) (i) "Common carrier" does not include a person who, at the time the person is
306 traveling to or from that person's place of employment, transports a passenger to or from the
307 passenger's place of employment.
308 (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
309 Utah Administrative Rulemaking Act, the commission may make rules defining what
310 constitutes a person's place of employment.
311 (25) "Component part" includes:
312 (a) poultry, dairy, and other livestock feed, and their components;
313 (b) baling ties and twine used in the baling of hay and straw;
314 (c) fuel used for providing temperature control of orchards and commercial
315 greenhouses doing a majority of their business in wholesale sales, and for providing power for
316 off-highway type farm machinery; and
317 (d) feed, seeds, and seedlings.
318 (26) "Computer" means an electronic device that accepts information:
319 (a) (i) in digital form; or
320 (ii) in a form similar to digital form; and
321 (b) manipulates that information for a result based on a sequence of instructions.
322 (27) "Computer software" means a set of coded instructions designed to cause:
323 (a) a computer to perform a task; or
324 (b) automatic data processing equipment to perform a task.
325 (28) "Computer software maintenance contract" means a contract that obligates a seller
326 of computer software to provide a customer with:
327 (a) future updates or upgrades to computer software;
328 (b) support services with respect to computer software; or
329 (c) a combination of Subsections (28)(a) and (b).
330 (29) (a) "Conference bridging service" means an ancillary service that links two or
331 more participants of an audio conference call or video conference call.
332 (b) "Conference bridging service" may include providing a telephone number as part of
333 the ancillary service described in Subsection (29)(a).
334 (c) "Conference bridging service" does not include a telecommunications service used
335 to reach the ancillary service described in Subsection (29)(a).
336 (30) "Construction materials" means any tangible personal property that will be
337 converted into real property.
338 (31) "Delivered electronically" means delivered to a purchaser by means other than
339 tangible storage media.
340 (32) (a) "Delivery charge" means a charge:
341 (i) by a seller of:
342 (A) tangible personal property;
343 (B) a product transferred electronically; or
344 (C) services; and
345 (ii) for preparation and delivery of the tangible personal property, product transferred
346 electronically, or services described in Subsection (32)(a)(i) to a location designated by the
347 purchaser.
348 (b) "Delivery charge" includes a charge for the following:
349 (i) transportation;
350 (ii) shipping;
351 (iii) postage;
352 (iv) handling;
353 (v) crating; or
354 (vi) packing.
355 (33) "Detailed telecommunications billing service" means an ancillary service of
356 separately stating information pertaining to individual calls on a customer's billing statement.
357 (34) "Dietary supplement" means a product, other than tobacco, that:
358 (a) is intended to supplement the diet;
359 (b) contains one or more of the following dietary ingredients:
360 (i) a vitamin;
361 (ii) a mineral;
362 (iii) an herb or other botanical;
363 (iv) an amino acid;
364 (v) a dietary substance for use by humans to supplement the diet by increasing the total
365 dietary intake; or
366 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
367 described in Subsections (34)(b)(i) through (v);
368 (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
369 (A) tablet form;
370 (B) capsule form;
371 (C) powder form;
372 (D) softgel form;
373 (E) gelcap form; or
374 (F) liquid form; or
375 (ii) [
376 in a form described in Subsections (34)(c)(i)(A) through (F), is not represented:
377 (A) as conventional food; and
378 (B) for use as a sole item of:
379 (I) a meal; or
380 (II) the diet; and
381 (d) is required to be labeled as a dietary supplement:
382 (i) identifiable by the "Supplemental Facts" box found on the label; and
383 (ii) as required by 21 C.F.R. Sec. 101.36.
384 (35) (a) "Direct mail" means printed material delivered or distributed by United States
385 mail or other delivery service:
386 (i) to:
387 (A) a mass audience; or
388 (B) addressees on a mailing list provided:
389 (I) by a purchaser of the mailing list; or
390 (II) at the discretion of the purchaser of the mailing list; and
391 (ii) if the cost of the printed material is not billed directly to the recipients.
392 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
393 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
394 (c) "Direct mail" does not include multiple items of printed material delivered to a
395 single address.
396 (36) "Directory assistance" means an ancillary service of providing:
397 (a) address information; or
398 (b) telephone number information.
399 (37) (a) "Disposable home medical equipment or supplies" means medical equipment
400 or supplies that:
401 (i) cannot withstand repeated use; and
402 (ii) are purchased by, for, or on behalf of a person other than:
403 (A) a health care facility as defined in Section 26-21-2 ;
404 (B) a health care provider as defined in Section 78B-3-403 ;
405 (C) an office of a health care provider described in Subsection (37)(a)(ii)(B); or
406 (D) a person similar to a person described in Subsections (37)(a)(ii)(A) through (C).
407 (b) "Disposable home medical equipment or supplies" does not include:
408 (i) a drug;
409 (ii) durable medical equipment;
410 (iii) a hearing aid;
411 (iv) a hearing aid accessory;
412 (v) mobility enhancing equipment; or
413 (vi) tangible personal property used to correct impaired vision, including:
414 (A) eyeglasses; or
415 (B) contact lenses.
416 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
417 commission may by rule define what constitutes medical equipment or supplies.
418 (38) (a) "Drug" means a compound, substance, or preparation, or a component of a
419 compound, substance, or preparation that is:
420 (i) recognized in:
421 (A) the official United States Pharmacopoeia;
422 (B) the official Homeopathic Pharmacopoeia of the United States;
423 (C) the official National Formulary; or
424 (D) a supplement to a publication listed in Subsections (38)(a)(i)(A) through (C);
425 (ii) intended for use in the:
426 (A) diagnosis of disease;
427 (B) cure of disease;
428 (C) mitigation of disease;
429 (D) treatment of disease; or
430 (E) prevention of disease; or
431 (iii) intended to affect:
432 (A) the structure of the body; or
433 (B) any function of the body.
434 (b) "Drug" does not include:
435 (i) food and food ingredients;
436 (ii) a dietary supplement;
437 (iii) an alcoholic beverage; or
438 (iv) a prosthetic device.
439 (39) (a) [
440 equipment" means equipment that:
441 (i) can withstand repeated use;
442 (ii) is primarily and customarily used to serve a medical purpose;
443 (iii) generally is not useful to a person in the absence of illness or injury; and
444 (iv) is not worn in or on the body.
445 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
446 equipment described in Subsection (39)(a).
447 (c) Notwithstanding Subsection (39)(a), "durable medical equipment" does not include
448 mobility enhancing equipment.
449 (40) "Electronic" means:
450 (a) relating to technology; and
451 (b) having:
452 (i) electrical capabilities;
453 (ii) digital capabilities;
454 (iii) magnetic capabilities;
455 (iv) wireless capabilities;
456 (v) optical capabilities;
457 (vi) electromagnetic capabilities; or
458 (vii) capabilities similar to Subsections (40)(b)(i) through (vi).
459 (41) "Electronic financial payment service" means an establishment:
460 (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
461 Clearinghouse Activities, of the 2012 North American Industry Classification System of the
462 federal Executive Office of the President, Office of Management and Budget; and
463 (b) that performs electronic financial payment services.
464 [
465 [
466 (a) rail for the use of public transit; or
467 (b) a separate right-of-way for the use of public transit.
468 [
469 (a) is powered by turbine engines;
470 (b) operates on jet fuel; and
471 (c) has wings that are permanently attached to the fuselage of the aircraft.
472 [
473 radio communication between fixed points.
474 [
475 (i) regardless of whether the substances are in:
476 (A) liquid form;
477 (B) concentrated form;
478 (C) solid form;
479 (D) frozen form;
480 (E) dried form; or
481 (F) dehydrated form; and
482 (ii) that are:
483 (A) sold for:
484 (I) ingestion by humans; or
485 (II) chewing by humans; and
486 (B) consumed for the substance's:
487 (I) taste; or
488 (II) nutritional value.
489 (b) "Food and food ingredients" includes an item described in Subsection [
490 (87)(b)(iii).
491 (c) "Food and food ingredients" does not include:
492 (i) an alcoholic beverage;
493 (ii) tobacco; or
494 (iii) prepared food.
495 [
496 (i) (A) made by a school; or
497 (B) made by a school student;
498 (ii) that are for the purpose of raising funds for the school to purchase equipment,
499 materials, or provide transportation; and
500 (iii) that are part of an officially sanctioned school activity.
501 (b) For purposes of Subsection [
502 means a school activity:
503 (i) that is conducted in accordance with a formal policy adopted by the school or school
504 district governing the authorization and supervision of fundraising activities;
505 (ii) that does not directly or indirectly compensate an individual teacher or other
506 educational personnel by direct payment, commissions, or payment in kind; and
507 (iii) the net or gross revenues from which are deposited in a dedicated account
508 controlled by the school or school district.
509 [
510 flows outward from the earth that is used as the sole source of energy to produce electricity.
511 [
512 agreement that is:
513 (a) authorized to administer the agreement; and
514 (b) established in accordance with the agreement.
515 [
516 means:
517 (i) the executive branch of the state, including all departments, institutions, boards,
518 divisions, bureaus, offices, commissions, and committees;
519 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
520 Office of the Court Administrator, and similar administrative units in the judicial branch;
521 (iii) the legislative branch of the state, including the House of Representatives, the
522 Senate, the Legislative Printing Office, the Office of Legislative Research and General
523 Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
524 Analyst;
525 (iv) the National Guard;
526 (v) an independent entity as defined in Section 63E-1-102 ; or
527 (vi) a political subdivision as defined in Section 17B-1-102 .
528 (b) "Governmental entity" does not include the state systems of public and higher
529 education, including:
530 (i) a college campus of the Utah College of Applied Technology;
531 (ii) a school;
532 (iii) the State Board of Education;
533 (iv) the State Board of Regents; or
534 (v) an institution of higher education.
535 [
536 produce electricity.
537 [
538 or other fuels:
539 (a) in mining or extraction of minerals;
540 (b) in agricultural operations to produce an agricultural product up to the time of
541 harvest or placing the agricultural product into a storage facility, including:
542 (i) commercial greenhouses;
543 (ii) irrigation pumps;
544 (iii) farm machinery;
545 (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
546 registered under Title 41, Chapter 1a, Part 2, Registration; and
547 (v) other farming activities;
548 (c) in manufacturing tangible personal property at an establishment described in SIC
549 Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
550 Executive Office of the President, Office of Management and Budget;
551 (d) by a scrap recycler if:
552 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
553 one or more of the following items into prepared grades of processed materials for use in new
554 products:
555 (A) iron;
556 (B) steel;
557 (C) nonferrous metal;
558 (D) paper;
559 (E) glass;
560 (F) plastic;
561 (G) textile; or
562 (H) rubber; and
563 (ii) the new products under Subsection [
564 nonrecycled materials; or
565 (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
566 cogeneration facility as defined in Section 54-2-1 .
567 [
568 means a charge for installing:
569 (i) tangible personal property; or
570 (ii) a product transferred electronically.
571 (b) "Installation charge" does not include a charge for:
572 (i) repairs or renovations of:
573 (A) tangible personal property; or
574 (B) a product transferred electronically; or
575 (ii) attaching tangible personal property or a product transferred electronically:
576 (A) to other tangible personal property; and
577 (B) as part of a manufacturing or fabrication process.
578 [
579 listed in Section 53B-2-101 .
580 [
581 personal property or a product transferred electronically for:
582 (i) (A) a fixed term; or
583 (B) an indeterminate term; and
584 (ii) consideration.
585 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
586 amount of consideration may be increased or decreased by reference to the amount realized
587 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
588 Code.
589 (c) "Lease" or "rental" does not include:
590 (i) a transfer of possession or control of property under a security agreement or
591 deferred payment plan that requires the transfer of title upon completion of the required
592 payments;
593 (ii) a transfer of possession or control of property under an agreement that requires the
594 transfer of title:
595 (A) upon completion of required payments; and
596 (B) if the payment of an option price does not exceed the greater of:
597 (I) $100; or
598 (II) 1% of the total required payments; or
599 (iii) providing tangible personal property along with an operator for a fixed period of
600 time or an indeterminate period of time if the operator is necessary for equipment to perform as
601 designed.
602 (d) For purposes of Subsection [
603 equipment to perform as designed if the operator's duties exceed the:
604 (i) set-up of tangible personal property;
605 (ii) maintenance of tangible personal property; or
606 (iii) inspection of tangible personal property.
607 [
608 classified under the following NAICS codes of the 2007 North American Industry
609 Classification System of the federal Executive Office of the President, Office of Management
610 and Budget:
611 (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
612 (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
613 Manufacturing; or
614 (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
615 [
616 leased, or rented by a life science establishment if research and development is performed in
617 51% or more of the total area of the facility.
618 [
619 media if the tangible storage media is not physically transferred to the purchaser.
620 [
621 (a) county that is authorized to impose an agreement sales and use tax;
622 (b) city that is authorized to impose an agreement sales and use tax; or
623 (c) town that is authorized to impose an agreement sales and use tax.
624 [
625 [
626 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
627 Industrial Classification Manual of the federal Executive Office of the President, Office of
628 Management and Budget;
629 (b) a scrap recycler if:
630 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
631 one or more of the following items into prepared grades of processed materials for use in new
632 products:
633 (A) iron;
634 (B) steel;
635 (C) nonferrous metal;
636 (D) paper;
637 (E) glass;
638 (F) plastic;
639 (G) textile; or
640 (H) rubber; and
641 (ii) the new products under Subsection [
642 nonrecycled materials; or
643 (c) a cogeneration facility as defined in Section 54-2-1 .
644 [
645 related to a producer described in Subsection 59-12-104 (20)(a) as a:
646 (a) child or stepchild, regardless of whether the child or stepchild is:
647 (i) an adopted child or adopted stepchild; or
648 (ii) a foster child or foster stepchild;
649 (b) grandchild or stepgrandchild;
650 (c) grandparent or stepgrandparent;
651 (d) nephew or stepnephew;
652 (e) niece or stepniece;
653 (f) parent or stepparent;
654 (g) sibling or stepsibling;
655 (h) spouse;
656 (i) person who is the spouse of a person described in Subsections [
657 (g); or
658 (j) person similar to a person described in Subsections [
659 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
660 Administrative Rulemaking Act.
661 [
662 [
663 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
664 [
665 regardless of the technology used, if:
666 (i) the origination point of the conveyance, routing, or transmission is not fixed;
667 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
668 (iii) the origination point described in Subsection [
669 point described in Subsection [
670 (b) "Mobile wireless service" includes a telecommunications service that is provided
671 by a commercial mobile radio service provider.
672 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
673 commission may by rule define "commercial mobile radio service provider."
674 [
675 equipment" means equipment that is:
676 (i) primarily and customarily used to provide or increase the ability to move from one
677 place to another;
678 (ii) appropriate for use in a:
679 (A) home; or
680 (B) motor vehicle; and
681 (iii) not generally used by persons with normal mobility.
682 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
683 the equipment described in Subsection [
684 (c) [
685 equipment" does not include:
686 (i) a motor vehicle;
687 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
688 vehicle manufacturer;
689 (iii) durable medical equipment; or
690 (iv) a prosthetic device.
691 [
692 selected a certified service provider as the seller's agent to perform all of the seller's sales and
693 use tax functions for agreement sales and use taxes other than the seller's obligation under
694 Section 59-12-124 to remit a tax on the seller's own purchases.
695 [
696 (a) except as provided in Subsection [
697 system to perform the seller's sales tax functions for agreement sales and use taxes; and
698 (b) [
699 sales tax:
700 (i) collected by the seller; and
701 (ii) to the appropriate local taxing jurisdiction.
702 [
703 registered under the agreement that has:
704 (i) sales in at least five states that are members of the agreement;
705 (ii) total annual sales revenues of at least $500,000,000;
706 (iii) a proprietary system that calculates the amount of tax:
707 (A) for an agreement sales and use tax; and
708 (B) due to each local taxing jurisdiction; and
709 (iv) entered into a performance agreement with the governing board of the agreement.
710 (b) For purposes of Subsection [
711 group of sellers using the same proprietary system.
712 [
713 not a model 1 seller, model 2 seller, or model 3 seller.
714 [
715 [
716 [
717 (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
718 other hydrocarbons, or otherwise treated;
719 (b) yield mixtures of liquid hydrocarbon; and
720 (c) require further processing other than mechanical blending before becoming finished
721 petroleum products.
722 [
723 kerogen material that yields petroleum upon heating and distillation.
724 [
725 software maintenance contract that a customer is not obligated to purchase as a condition to the
726 retail sale of computer software.
727 [
728 energy.
729 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
730 personal property.
731 [
732 transmission of a coded radio signal for the purpose of activating a specific pager.
733 (b) For purposes of Subsection [
734 includes a transmission by message or sound.
735 [
736 [
737 [
738 property attached to real property:
739 (i) the attachment of the tangible personal property to the real property:
740 (A) is essential to the use of the tangible personal property; and
741 (B) suggests that the tangible personal property will remain attached to the real
742 property in the same place over the useful life of the tangible personal property; or
743 (ii) if the tangible personal property is detached from the real property, the detachment
744 would:
745 (A) cause substantial damage to the tangible personal property; or
746 (B) require substantial alteration or repair of the real property to which the tangible
747 personal property is attached.
748 (b) "Permanently attached to real property" includes:
749 (i) the attachment of an accessory to the tangible personal property if the accessory is:
750 (A) essential to the operation of the tangible personal property; and
751 (B) attached only to facilitate the operation of the tangible personal property;
752 (ii) a temporary detachment of tangible personal property from real property for a
753 repair or renovation if the repair or renovation is performed where the tangible personal
754 property and real property are located; or
755 (iii) property attached to oil, gas, or water pipelines, except for the property listed in
756 Subsection [
757 (c) "Permanently attached to real property" does not include:
758 (i) the attachment of portable or movable tangible personal property to real property if
759 that portable or movable tangible personal property is attached to real property only for:
760 (A) convenience;
761 (B) stability; or
762 (C) for an obvious temporary purpose;
763 (ii) the detachment of tangible personal property from real property except for the
764 detachment described in Subsection [
765 (iii) an attachment of the following tangible personal property to real property if the
766 attachment to real property is only through a line that supplies water, electricity, gas,
767 telecommunications, cable, or supplies a similar item as determined by the commission by rule
768 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
769 (A) a computer;
770 (B) a telephone;
771 (C) a television; or
772 (D) tangible personal property similar to Subsections [
773 as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
774 Administrative Rulemaking Act; or
775 (iv) an item listed in Subsection [
776 [
777 association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
778 city, municipality, district, or other local governmental entity of the state, or any group or
779 combination acting as a unit.
780 [
781 (a) for telecommunications service other than mobile telecommunications service,
782 means the street address representative of where the customer's use of the telecommunications
783 service primarily occurs, which shall be:
784 (i) the residential street address of the customer; or
785 (ii) the primary business street address of the customer; or
786 (b) for mobile telecommunications service, is as defined in the Mobile
787 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
788 [
789 obtains by making a payment on a call-by-call basis:
790 (i) through the use of a:
791 (A) bank card;
792 (B) credit card;
793 (C) debit card; or
794 (D) travel card; or
795 (ii) by a charge made to a telephone number that is not associated with the origination
796 or termination of the telecommunications service.
797 (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
798 service, that would be a prepaid wireless calling service if the service were exclusively a
799 telecommunications service.
800 [
801 a medium described in Subsection 59-12-104 (54)(a).
802 [
803 (a) that allows a purchaser access to telecommunications service that is exclusively
804 telecommunications service;
805 (b) that:
806 (i) is paid for in advance; and
807 (ii) enables the origination of a call using an:
808 (A) access number; or
809 (B) authorization code;
810 (c) that is dialed:
811 (i) manually; or
812 (ii) electronically; and
813 (d) sold in predetermined units or dollars that decline:
814 (i) by a known amount; and
815 (ii) with use.
816 [
817 (a) that provides the right to utilize:
818 (i) mobile wireless service; and
819 (ii) other service that is not a telecommunications service, including:
820 (A) the download of a product transferred electronically;
821 (B) a content service; or
822 (C) an ancillary service;
823 (b) that:
824 (i) is paid for in advance; and
825 (ii) enables the origination of a call using an:
826 (A) access number; or
827 (B) authorization code;
828 (c) that is dialed:
829 (i) manually; or
830 (ii) electronically; and
831 (d) sold in predetermined units or dollars that decline:
832 (i) by a known amount; and
833 (ii) with use.
834 [
835 (i) food:
836 (A) sold in a heated state; or
837 (B) heated by a seller;
838 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
839 item; or
840 (iii) except as provided in Subsection [
841 provided by the seller, including a:
842 (A) plate;
843 (B) knife;
844 (C) fork;
845 (D) spoon;
846 (E) glass;
847 (F) cup;
848 (G) napkin; or
849 (H) straw.
850 (b) "Prepared food" does not include:
851 (i) food that a seller only:
852 (A) cuts;
853 (B) repackages; or
854 (C) pasteurizes; or
855 (ii) (A) the following:
856 (I) raw egg;
857 (II) raw fish;
858 (III) raw meat;
859 (IV) raw poultry; or
860 (V) a food containing an item described in Subsections [
861 (IV); and
862 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
863 Food and Drug Administration's Food Code that a consumer cook the items described in
864 Subsection [
865 (iii) the following if sold without eating utensils provided by the seller:
866 (A) food and food ingredients sold by a seller if the seller's proper primary
867 classification under the 2002 North American Industry Classification System of the federal
868 Executive Office of the President, Office of Management and Budget, is manufacturing in
869 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
870 Manufacturing;
871 (B) food and food ingredients sold in an unheated state:
872 (I) by weight or volume; and
873 (II) as a single item; or
874 (C) a bakery item, including:
875 (I) a bagel;
876 (II) a bar;
877 (III) a biscuit;
878 (IV) bread;
879 (V) a bun;
880 (VI) a cake;
881 (VII) a cookie;
882 (VIII) a croissant;
883 (IX) a danish;
884 (X) a donut;
885 (XI) a muffin;
886 (XII) a pastry;
887 (XIII) a pie;
888 (XIV) a roll;
889 (XV) a tart;
890 (XVI) a torte; or
891 (XVII) a tortilla.
892 (c) [
893 seller does not include the following used to transport the food:
894 (i) a container; or
895 (ii) packaging.
896 [
897 (a) (i) orally;
898 (ii) in writing;
899 (iii) electronically; or
900 (iv) by any other manner of transmission; and
901 (b) by a licensed practitioner authorized by the laws of a state.
902 [
903 computer software" means computer software that is not designed and developed:
904 (i) by the author or other creator of the computer software; and
905 (ii) to the specifications of a specific purchaser.
906 (b) "Prewritten computer software" includes:
907 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
908 software is not designed and developed:
909 (A) by the author or other creator of the computer software; and
910 (B) to the specifications of a specific purchaser;
911 (ii) [
912 by the author or other creator of the computer software to the specifications of a specific
913 purchaser if the computer software is sold to a person other than the purchaser; or
914 (iii) [
915 (89)(c), prewritten computer software or a prewritten portion of prewritten computer software:
916 (A) that is modified or enhanced to any degree; and
917 (B) if the modification or enhancement described in Subsection [
918 designed and developed to the specifications of a specific purchaser.
919 (c) [
920 software" does not include a modification or enhancement described in Subsection [
921 (89)(b)(iii) if the charges for the modification or enhancement are:
922 (i) reasonable; and
923 (ii) separately stated on the invoice or other statement of price provided to the
924 purchaser.
925 [
926 (i) that entitles a customer to exclusive or priority use of one or more communications
927 channels between or among termination points; and
928 (ii) regardless of the manner in which the one or more communications channels are
929 connected.
930 (b) "Private communications service" includes the following provided in connection
931 with the use of one or more communications channels:
932 (i) an extension line;
933 (ii) a station;
934 (iii) switching capacity; or
935 (iv) another associated service that is provided in connection with the use of one or
936 more communications channels as defined in Section 59-12-215 .
937 [
938 electronically" means a product transferred electronically that would be subject to a tax under
939 this chapter if that product was transferred in a manner other than electronically.
940 (b) "Product transferred electronically" does not include:
941 (i) an ancillary service;
942 (ii) computer software; or
943 (iii) a telecommunications service.
944 [
945 (i) artificially replace a missing portion of the body;
946 (ii) prevent or correct a physical deformity or physical malfunction; or
947 (iii) support a weak or deformed portion of the body.
948 (b) "Prosthetic device" includes:
949 (i) parts used in the repairs or renovation of a prosthetic device;
950 (ii) replacement parts for a prosthetic device;
951 (iii) a dental prosthesis; or
952 (iv) a hearing aid.
953 (c) "Prosthetic device" does not include:
954 (i) corrective eyeglasses; or
955 (ii) contact lenses.
956 [
957 (i) for human wear; and
958 (ii) that is:
959 (A) designed as protection:
960 (I) to the wearer against injury or disease; or
961 (II) against damage or injury of other persons or property; and
962 (B) not suitable for general use.
963 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
964 commission shall make rules:
965 (i) listing the items that constitute "protective equipment"; and
966 (ii) that are consistent with the list of items that constitute "protective equipment"
967 under the agreement.
968 [
969 written or printed matter, other than a photocopy:
970 (i) regardless of:
971 (A) characteristics;
972 (B) copyright;
973 (C) form;
974 (D) format;
975 (E) method of reproduction; or
976 (F) source; and
977 (ii) made available in printed or electronic format.
978 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
979 commission may by rule define the term "photocopy."
980 [
981 consideration:
982 (i) valued in money; and
983 (ii) for which tangible personal property, a product transferred electronically, or
984 services are:
985 (A) sold;
986 (B) leased; or
987 (C) rented.
988 (b) "Purchase price" and "sales price" include:
989 (i) the seller's cost of the tangible personal property, a product transferred
990 electronically, or services sold;
991 (ii) expenses of the seller, including:
992 (A) the cost of materials used;
993 (B) a labor cost;
994 (C) a service cost;
995 (D) interest;
996 (E) a loss;
997 (F) the cost of transportation to the seller; or
998 (G) a tax imposed on the seller;
999 (iii) a charge by the seller for any service necessary to complete the sale; or
1000 (iv) consideration a seller receives from a person other than the purchaser if:
1001 (A) (I) the seller actually receives consideration from a person other than the purchaser;
1002 and
1003 (II) the consideration described in Subsection [
1004 to a price reduction or discount on the sale;
1005 (B) the seller has an obligation to pass the price reduction or discount through to the
1006 purchaser;
1007 (C) the amount of the consideration attributable to the sale is fixed and determinable by
1008 the seller at the time of the sale to the purchaser; and
1009 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1010 seller to claim a price reduction or discount; and
1011 (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1012 coupon, or other documentation with the understanding that the person other than the seller
1013 will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1014 (II) the purchaser identifies that purchaser to the seller as a member of a group or
1015 organization allowed a price reduction or discount, except that a preferred customer card that is
1016 available to any patron of a seller does not constitute membership in a group or organization
1017 allowed a price reduction or discount; or
1018 (III) the price reduction or discount is identified as a third party price reduction or
1019 discount on the:
1020 (Aa) invoice the purchaser receives; or
1021 (Bb) certificate, coupon, or other documentation the purchaser presents.
1022 (c) "Purchase price" and "sales price" do not include:
1023 (i) a discount:
1024 (A) in a form including:
1025 (I) cash;
1026 (II) term; or
1027 (III) coupon;
1028 (B) that is allowed by a seller;
1029 (C) taken by a purchaser on a sale; and
1030 (D) that is not reimbursed by a third party; or
1031 (ii) the following if separately stated on an invoice, bill of sale, or similar document
1032 provided to the purchaser:
1033 (A) the following from credit extended on the sale of tangible personal property or
1034 services:
1035 (I) a carrying charge;
1036 (II) a financing charge; or
1037 (III) an interest charge;
1038 (B) a delivery charge;
1039 (C) an installation charge;
1040 (D) a manufacturer rebate on a motor vehicle; or
1041 (E) a tax or fee legally imposed directly on the consumer.
1042 [
1043 (a) a sale of tangible personal property is made;
1044 (b) a product is transferred electronically; or
1045 (c) a service is furnished.
1046 [
1047 (a) rented to a guest for value three or more times during a calendar year; or
1048 (b) advertised or held out to the public as a place that is regularly rented to guests for
1049 value.
1050 [
1051 [
1052 of tangible personal property" means:
1053 (i) a repair or renovation of tangible personal property that is not permanently attached
1054 to real property; or
1055 (ii) attaching tangible personal property or a product transferred electronically to other
1056 tangible personal property or detaching tangible personal property or a product transferred
1057 electronically from other tangible personal property if:
1058 (A) the other tangible personal property to which the tangible personal property or
1059 product transferred electronically is attached or from which the tangible personal property or
1060 product transferred electronically is detached is not permanently attached to real property; and
1061 (B) the attachment of tangible personal property or a product transferred electronically
1062 to other tangible personal property or detachment of tangible personal property or a product
1063 transferred electronically from other tangible personal property is made in conjunction with a
1064 repair or replacement of tangible personal property or a product transferred electronically.
1065 (b) "Repairs or renovations of tangible personal property" does not include:
1066 (i) attaching prewritten computer software to other tangible personal property if the
1067 other tangible personal property to which the prewritten computer software is attached is not
1068 permanently attached to real property; or
1069 (ii) detaching prewritten computer software from other tangible personal property if the
1070 other tangible personal property from which the prewritten computer software is detached is
1071 not permanently attached to real property.
1072 [
1073 experimentation aimed at the discovery of facts, devices, technologies, or applications and the
1074 process of preparing those devices, technologies, or applications for marketing.
1075 [
1076 telecommunications service or an ancillary service that is provided to an individual for personal
1077 use:
1078 (i) at a residential address; or
1079 (ii) at an institution, including a nursing home or a school, if the telecommunications
1080 service or ancillary service is provided to and paid for by the individual residing at the
1081 institution rather than the institution.
1082 (b) For purposes of Subsection [
1083 (i) apartment; or
1084 (ii) other individual dwelling unit.
1085 [
1086 sleeping quarters, and similar facilities or accommodations.
1087 [
1088 other than:
1089 (a) resale;
1090 (b) sublease; or
1091 (c) subrent.
1092 [
1093 business in tangible personal property or any other taxable transaction under Subsection
1094 59-12-103 (1), and who is selling to the user or consumer and not for resale.
1095 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1096 engaged in the business of selling to users or consumers within the state.
1097 [
1098 otherwise, in any manner, of tangible personal property or any other taxable transaction under
1099 Subsection 59-12-103 (1), for consideration.
1100 (b) "Sale" includes:
1101 (i) installment and credit sales;
1102 (ii) any closed transaction constituting a sale;
1103 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1104 chapter;
1105 (iv) any transaction if the possession of property is transferred but the seller retains the
1106 title as security for the payment of the price; and
1107 (v) any transaction under which right to possession, operation, or use of any article of
1108 tangible personal property is granted under a lease or contract and the transfer of possession
1109 would be taxable if an outright sale were made.
1110 [
1111 [
1112 tangible personal property or a product transferred electronically that is subject to a tax under
1113 this chapter is transferred:
1114 (a) by a purchaser-lessee;
1115 (b) to a lessor;
1116 (c) for consideration; and
1117 (d) if:
1118 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1119 of the tangible personal property or product transferred electronically;
1120 (ii) the sale of the tangible personal property or product transferred electronically to the
1121 lessor is intended as a form of financing:
1122 (A) for the tangible personal property or product transferred electronically; and
1123 (B) to the purchaser-lessee; and
1124 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1125 is required to:
1126 (A) capitalize the tangible personal property or product transferred electronically for
1127 financial reporting purposes; and
1128 (B) account for the lease payments as payments made under a financing arrangement.
1129 [
1130 [
1131 paid to, or amounts charged by a school:
1132 (i) sales that are directly related to the school's educational functions or activities
1133 including:
1134 (A) the sale of:
1135 (I) textbooks;
1136 (II) textbook fees;
1137 (III) laboratory fees;
1138 (IV) laboratory supplies; or
1139 (V) safety equipment;
1140 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1141 that:
1142 (I) a student is specifically required to wear as a condition of participation in a
1143 school-related event or school-related activity; and
1144 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1145 place of ordinary clothing;
1146 (C) sales of the following if the net or gross revenues generated by the sales are
1147 deposited into a school district fund or school fund dedicated to school meals:
1148 (I) food and food ingredients; or
1149 (II) prepared food; or
1150 (D) transportation charges for official school activities; or
1151 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1152 event or school-related activity.
1153 (b) "Sales relating to schools" does not include:
1154 (i) bookstore sales of items that are not educational materials or supplies;
1155 (ii) except as provided in Subsection [
1156 (A) clothing;
1157 (B) clothing accessories or equipment;
1158 (C) protective equipment; or
1159 (D) sports or recreational equipment; or
1160 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1161 event or school-related activity if the amounts paid or charged are passed through to a person:
1162 (A) other than a:
1163 (I) school;
1164 (II) nonprofit organization authorized by a school board or a governing body of a
1165 private school to organize and direct a competitive secondary school activity; or
1166 (III) nonprofit association authorized by a school board or a governing body of a
1167 private school to organize and direct a competitive secondary school activity; and
1168 (B) that is required to collect sales and use taxes under this chapter.
1169 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1170 commission may make rules defining the term "passed through."
1171 [
1172 (a) means:
1173 (i) an elementary school or a secondary school that:
1174 (A) is a:
1175 (I) public school; or
1176 (II) private school; and
1177 (B) provides instruction for one or more grades kindergarten through 12; or
1178 (ii) a public school district; and
1179 (b) includes the Electronic High School as defined in Section 53A-15-1002 .
1180 [
1181 (a) tangible personal property;
1182 (b) a product transferred electronically; or
1183 (c) a service.
1184 [
1185 materials" means tangible personal property or a product transferred electronically if the
1186 tangible personal property or product transferred electronically is:
1187 (i) used primarily in the process of:
1188 (A) (I) manufacturing a semiconductor;
1189 (II) fabricating a semiconductor; or
1190 (III) research or development of a:
1191 (Aa) semiconductor; or
1192 (Bb) semiconductor manufacturing process; or
1193 (B) maintaining an environment suitable for a semiconductor; or
1194 (ii) consumed 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.
1201 (b) "Semiconductor fabricating, processing, research, or development materials"
1202 includes:
1203 (i) parts used in the repairs or renovations of tangible personal property or a product
1204 transferred electronically described in Subsection [
1205 (ii) a chemical, catalyst, or other material used to:
1206 (A) produce or induce in a semiconductor a:
1207 (I) chemical change; or
1208 (II) physical change;
1209 (B) remove impurities from a semiconductor; or
1210 (C) improve the marketable condition of a semiconductor.
1211 [
1212 providing services to the aged as defined in Section 62A-3-101 .
1213 [
1214 (a) described in Section 318(C) of the agreement; and
1215 (b) approved by the governing board of the agreement.
1216 [
1217 producing electricity.
1218 [
1219 (i) designed for human use; and
1220 (ii) that is:
1221 (A) worn in conjunction with:
1222 (I) an athletic activity; or
1223 (II) a recreational activity; and
1224 (B) not suitable for general use.
1225 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1226 commission shall make rules:
1227 (i) listing the items that constitute "sports or recreational equipment"; and
1228 (ii) that are consistent with the list of items that constitute "sports or recreational
1229 equipment" under the agreement.
1230 [
1231 [
1232 any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
1233 except sale in the regular course of business.
1234 [
1235 personal property" means personal property that:
1236 (i) may be:
1237 (A) seen;
1238 (B) weighed;
1239 (C) measured;
1240 (D) felt; or
1241 (E) touched; or
1242 (ii) is in any manner perceptible to the senses.
1243 (b) "Tangible personal property" includes:
1244 (i) electricity;
1245 (ii) water;
1246 (iii) gas;
1247 (iv) steam; or
1248 (v) prewritten computer software, regardless of the manner in which the prewritten
1249 computer software is transferred.
1250 (c) "Tangible personal property" includes the following regardless of whether the item
1251 is attached to real property:
1252 (i) a dishwasher;
1253 (ii) a dryer;
1254 (iii) a freezer;
1255 (iv) a microwave;
1256 (v) a refrigerator;
1257 (vi) a stove;
1258 (vii) a washer; or
1259 (viii) an item similar to Subsections [
1260 the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1261 Rulemaking Act.
1262 (d) "Tangible personal property" does not include a product that is transferred
1263 electronically.
1264 (e) "Tangible personal property" does not include the following if attached to real
1265 property, regardless of whether the attachment to real property is only through a line that
1266 supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1267 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1268 Rulemaking Act:
1269 (i) a hot water heater;
1270 (ii) a water filtration system; or
1271 (iii) a water softener system.
1272 [
1273 or software" means an item listed in Subsection [
1274 leased primarily to enable or facilitate one or more of the following to function:
1275 (i) telecommunications switching or routing equipment, machinery, or software; or
1276 (ii) telecommunications transmission equipment, machinery, or software.
1277 (b) The following apply to Subsection [
1278 (i) a pole;
1279 (ii) software;
1280 (iii) a supplementary power supply;
1281 (iv) temperature or environmental equipment or machinery;
1282 (v) test equipment;
1283 (vi) a tower; or
1284 (vii) equipment, machinery, or software that functions similarly to an item listed in
1285 Subsections [
1286 accordance with Subsection [
1287 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1288 commission may by rule define what constitutes equipment, machinery, or software that
1289 functions similarly to an item listed in Subsections [
1290 [
1291 911 service" means equipment, machinery, or software that is required to comply with 47
1292 C.F.R. Sec. 20.18.
1293 [
1294 software" means equipment, machinery, or software purchased or leased primarily to maintain
1295 or repair one or more of the following, regardless of whether the equipment, machinery, or
1296 software is purchased or leased as a spare part or as an upgrade or modification to one or more
1297 of the following:
1298 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1299 (b) telecommunications switching or routing equipment, machinery, or software; or
1300 (c) telecommunications transmission equipment, machinery, or software.
1301 [
1302 routing, or transmission of audio, data, video, voice, or any other information or signal to a
1303 point, or among or between points.
1304 (b) "Telecommunications service" includes:
1305 (i) an electronic conveyance, routing, or transmission with respect to which a computer
1306 processing application is used to act:
1307 (A) on the code, form, or protocol of the content;
1308 (B) for the purpose of electronic conveyance, routing, or transmission; and
1309 (C) regardless of whether the service:
1310 (I) is referred to as voice over Internet protocol service; or
1311 (II) is classified by the Federal Communications Commission as enhanced or value
1312 added;
1313 (ii) an 800 service;
1314 (iii) a 900 service;
1315 (iv) a fixed wireless service;
1316 (v) a mobile wireless service;
1317 (vi) a postpaid calling service;
1318 (vii) a prepaid calling service;
1319 (viii) a prepaid wireless calling service; or
1320 (ix) a private communications service.
1321 (c) "Telecommunications service" does not include:
1322 (i) advertising, including directory advertising;
1323 (ii) an ancillary service;
1324 (iii) a billing and collection service provided to a third party;
1325 (iv) a data processing and information service if:
1326 (A) the data processing and information service allows data to be:
1327 (I) (Aa) acquired;
1328 (Bb) generated;
1329 (Cc) processed;
1330 (Dd) retrieved; or
1331 (Ee) stored; and
1332 (II) delivered by an electronic transmission to a purchaser; and
1333 (B) the purchaser's primary purpose for the underlying transaction is the processed data
1334 or information;
1335 (v) installation or maintenance of the following on a customer's premises:
1336 (A) equipment; or
1337 (B) wiring;
1338 (vi) Internet access service;
1339 (vii) a paging service;
1340 (viii) a product transferred electronically, including:
1341 (A) music;
1342 (B) reading material;
1343 (C) a ring tone;
1344 (D) software; or
1345 (E) video;
1346 (ix) a radio and television audio and video programming service:
1347 (A) regardless of the medium; and
1348 (B) including:
1349 (I) furnishing conveyance, routing, or transmission of a television audio and video
1350 programming service by a programming service provider;
1351 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1352 (III) audio and video programming services delivered by a commercial mobile radio
1353 service provider as defined in 47 C.F.R. Sec. 20.3;
1354 (x) a value-added nonvoice data service; or
1355 (xi) tangible personal property.
1356 [
1357 (i) owns, controls, operates, or manages a telecommunications service; and
1358 (ii) engages in an activity described in Subsection [
1359 with or resale to any person of the telecommunications service.
1360 (b) A person described in Subsection [
1361 provider whether or not the Public Service Commission of Utah regulates:
1362 (i) that person; or
1363 (ii) the telecommunications service that the person owns, controls, operates, or
1364 manages.
1365 [
1366 software" means an item listed in Subsection [
1367 leased primarily for switching or routing:
1368 (i) an ancillary service;
1369 (ii) data communications;
1370 (iii) voice communications; or
1371 (iv) telecommunications service.
1372 (b) The following apply to Subsection [
1373 (i) a bridge;
1374 (ii) a computer;
1375 (iii) a cross connect;
1376 (iv) a modem;
1377 (v) a multiplexer;
1378 (vi) plug in circuitry;
1379 (vii) a router;
1380 (viii) software;
1381 (ix) a switch; or
1382 (x) equipment, machinery, or software that functions similarly to an item listed in
1383 Subsections [
1384 accordance with Subsection [
1385 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1386 commission may by rule define what constitutes equipment, machinery, or software that
1387 functions similarly to an item listed in Subsections [
1388 [
1389 software" means an item listed in Subsection [
1390 leased primarily for sending, receiving, or transporting:
1391 (i) an ancillary service;
1392 (ii) data communications;
1393 (iii) voice communications; or
1394 (iv) telecommunications service.
1395 (b) The following apply to Subsection [
1396 (i) an amplifier;
1397 (ii) a cable;
1398 (iii) a closure;
1399 (iv) a conduit;
1400 (v) a controller;
1401 (vi) a duplexer;
1402 (vii) a filter;
1403 (viii) an input device;
1404 (ix) an input/output device;
1405 (x) an insulator;
1406 (xi) microwave machinery or equipment;
1407 (xii) an oscillator;
1408 (xiii) an output device;
1409 (xiv) a pedestal;
1410 (xv) a power converter;
1411 (xvi) a power supply;
1412 (xvii) a radio channel;
1413 (xviii) a radio receiver;
1414 (xix) a radio transmitter;
1415 (xx) a repeater;
1416 (xxi) software;
1417 (xxii) a terminal;
1418 (xxiii) a timing unit;
1419 (xxiv) a transformer;
1420 (xxv) a wire; or
1421 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1422 Subsections [
1423 accordance with Subsection [
1424 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1425 commission may by rule define what constitutes equipment, machinery, or software that
1426 functions similarly to an item listed in Subsections [
1427 [
1428 printed material that is required for a course:
1429 (i) offered by an institution of higher education; and
1430 (ii) that the purchaser of the textbook or other printed material attends or will attend.
1431 (b) "Textbook for a higher education course" includes a textbook in electronic format.
1432 [
1433 (a) a cigarette;
1434 (b) a cigar;
1435 (c) chewing tobacco;
1436 (d) pipe tobacco; or
1437 (e) any other item that contains tobacco.
1438 [
1439 device, or ride device that is started and stopped by the purchaser or renter of the right to use or
1440 operate the amusement device, skill device, or ride device.
1441 [
1442 property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
1443 incident to the ownership or the leasing of that tangible personal property, product transferred
1444 electronically, or service.
1445 (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1446 property, a product transferred electronically, or a service in the regular course of business and
1447 held for resale.
1448 [
1449 (a) that otherwise meets the definition of a telecommunications service except that a
1450 computer processing application is used to act primarily for a purpose other than conveyance,
1451 routing, or transmission; and
1452 (b) with respect to which a computer processing application is used to act on data or
1453 information:
1454 (i) code;
1455 (ii) content;
1456 (iii) form; or
1457 (iv) protocol.
1458 [
1459 that are required to be titled, registered, or titled and registered:
1460 (i) an aircraft as defined in Section 72-10-102 ;
1461 (ii) a vehicle as defined in Section 41-1a-102 ;
1462 (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
1463 (iv) a vessel as defined in Section 41-1a-102 .
1464 (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
1465 (i) a vehicle described in Subsection [
1466 (ii) (A) a locomotive;
1467 (B) a freight car;
1468 (C) railroad work equipment; or
1469 (D) other railroad rolling stock.
1470 [
1471 selling, or exchanging a vehicle as defined in Subsection [
1472 [
1473 (i) is offered in connection with one or more telecommunications services; and
1474 (ii) offers an advanced calling feature that allows a customer to:
1475 (A) identify a caller; and
1476 (B) manage multiple calls and call connections.
1477 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1478 conference bridging service.
1479 [
1480 customer to receive, send, or store a recorded message.
1481 (b) "Voice mail service" does not include a vertical service that a customer is required
1482 to have in order to utilize a voice mail service.
1483 [
1484 facility" means a facility that generates electricity:
1485 (i) using as the primary source of energy waste materials that would be placed in a
1486 landfill or refuse pit if it were not used to generate electricity, including:
1487 (A) tires;
1488 (B) waste coal;
1489 (C) oil shale; or
1490 (D) municipal solid waste; and
1491 (ii) in amounts greater than actually required for the operation of the facility.
1492 (b) "Waste energy facility" does not include a facility that incinerates:
1493 (i) hospital waste as defined in 40 C.F.R. 60.51c; or
1494 (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1495 [
1496 [
1497 electricity.
1498 [
1499 geographic location by the United States Postal Service.
1500 Section 2. Section 59-12-102 (Effective 07/01/14) is amended to read:
1501 59-12-102 (Effective 07/01/14). Definitions.
1502 As used in this chapter:
1503 (1) "800 service" means a telecommunications service that:
1504 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
1505 (b) is typically marketed:
1506 (i) under the name 800 toll-free calling;
1507 (ii) under the name 855 toll-free calling;
1508 (iii) under the name 866 toll-free calling;
1509 (iv) under the name 877 toll-free calling;
1510 (v) under the name 888 toll-free calling; or
1511 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
1512 Federal Communications Commission.
1513 (2) (a) "900 service" means an inbound toll telecommunications service that:
1514 (i) a subscriber purchases;
1515 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
1516 the subscriber's:
1517 (A) prerecorded announcement; or
1518 (B) live service; and
1519 (iii) is typically marketed:
1520 (A) under the name 900 service; or
1521 (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
1522 Communications Commission.
1523 (b) "900 service" does not include a charge for:
1524 (i) a collection service a seller of a telecommunications service provides to a
1525 subscriber; or
1526 (ii) the following a subscriber sells to the subscriber's customer:
1527 (A) a product; or
1528 (B) a service.
1529 (3) (a) "Admission or user fees" includes season passes.
1530 (b) "Admission or user fees" does not include annual membership dues to private
1531 organizations.
1532 (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
1533 November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
1534 Agreement after November 12, 2002.
1535 (5) "Agreement combined tax rate" means the sum of the tax rates:
1536 (a) listed under Subsection (6); and
1537 (b) that are imposed within a local taxing jurisdiction.
1538 (6) "Agreement sales and use tax" means a tax imposed under:
1539 (a) Subsection 59-12-103 (2)(a)(i)(A);
1540 (b) Subsection 59-12-103 (2)(b)(i);
1541 (c) Subsection 59-12-103 (2)(c)(i);
1542 (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
1543 (e) Section 59-12-204 ;
1544 (f) Section 59-12-401 ;
1545 (g) Section 59-12-402 ;
1546 (h) Section 59-12-703 ;
1547 (i) Section 59-12-802 ;
1548 (j) Section 59-12-804 ;
1549 (k) Section 59-12-1102 ;
1550 (l) Section 59-12-1302 ;
1551 (m) Section 59-12-1402 ;
1552 (n) Section 59-12-1802 ;
1553 (o) Section 59-12-2003 ;
1554 (p) Section 59-12-2103 ;
1555 (q) Section 59-12-2213 ;
1556 (r) Section 59-12-2214 ;
1557 (s) Section 59-12-2215 ;
1558 (t) Section 59-12-2216 ;
1559 (u) Section 59-12-2217 ; or
1560 (v) Section 59-12-2218 .
1561 (7) "Aircraft" is as defined in Section 72-10-102 .
1562 (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
1563 (a) except for:
1564 (i) an airline as defined in Section 59-2-102 ; or
1565 (ii) an affiliated group, as defined in Section 59-7-101 , except that "affiliated group"
1566 includes a corporation that is qualified to do business but is not otherwise doing business in the
1567 state, of an airline; and
1568 (b) that has the workers, expertise, and facilities to perform the following, regardless of
1569 whether the business entity performs the following in this state:
1570 (i) check, diagnose, overhaul, and repair:
1571 (A) an onboard system of a fixed wing turbine powered aircraft; and
1572 (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
1573 (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
1574 engine;
1575 (iii) perform at least the following maintenance on a fixed wing turbine powered
1576 aircraft:
1577 (A) an inspection;
1578 (B) a repair, including a structural repair or modification;
1579 (C) changing landing gear; and
1580 (D) addressing issues related to an aging fixed wing turbine powered aircraft;
1581 (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
1582 completely apply new paint to the fixed wing turbine powered aircraft; and
1583 (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
1584 results in a change in the fixed wing turbine powered aircraft's certification requirements by the
1585 authority that certifies the fixed wing turbine powered aircraft.
1586 (9) "Alcoholic beverage" means a beverage that:
1587 (a) is suitable for human consumption; and
1588 (b) contains .5% or more alcohol by volume.
1589 (10) "Alternative energy" means:
1590 (a) biomass energy;
1591 (b) geothermal energy;
1592 (c) hydroelectric energy;
1593 (d) solar energy;
1594 (e) wind energy; or
1595 (f) energy that is derived from:
1596 (i) coal-to-liquids;
1597 (ii) nuclear fuel;
1598 (iii) oil-impregnated diatomaceous earth;
1599 (iv) oil sands;
1600 (v) oil shale; or
1601 (vi) petroleum coke.
1602 (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
1603 facility" means a facility that:
1604 (i) uses alternative energy to produce electricity; and
1605 (ii) has a production capacity of 2 megawatts or greater.
1606 (b) A facility is an alternative energy electricity production facility regardless of
1607 whether the facility is:
1608 (i) connected to an electric grid; or
1609 (ii) located on the premises of an electricity consumer.
1610 (12) (a) "Ancillary service" means a service associated with, or incidental to, the
1611 provision of telecommunications service.
1612 (b) "Ancillary service" includes:
1613 (i) a conference bridging service;
1614 (ii) a detailed communications billing service;
1615 (iii) directory assistance;
1616 (iv) a vertical service; or
1617 (v) a voice mail service.
1618 (13) "Area agency on aging" is as defined in Section 62A-3-101 .
1619 (14) "Assisted amusement device" means an amusement device, skill device, or ride
1620 device that is started and stopped by an individual:
1621 (a) who is not the purchaser or renter of the right to use or operate the amusement
1622 device, skill device, or ride device; and
1623 (b) at the direction of the seller of the right to use the amusement device, skill device,
1624 or ride device.
1625 (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
1626 washing of tangible personal property if the cleaning or washing labor is primarily performed
1627 by an individual:
1628 (a) who is not the purchaser of the cleaning or washing of the tangible personal
1629 property; and
1630 (b) at the direction of the seller of the cleaning or washing of the tangible personal
1631 property.
1632 (16) "Authorized carrier" means:
1633 (a) in the case of vehicles operated over public highways, the holder of credentials
1634 indicating that the vehicle is or will be operated pursuant to both the International Registration
1635 Plan and the International Fuel Tax Agreement;
1636 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
1637 certificate or air carrier's operating certificate; or
1638 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
1639 stock, the holder of a certificate issued by the United States Surface Transportation Board.
1640 (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
1641 following that is used as the primary source of energy to produce fuel or electricity:
1642 (i) material from a plant or tree; or
1643 (ii) other organic matter that is available on a renewable basis, including:
1644 (A) slash and brush from forests and woodlands;
1645 (B) animal waste;
1646 (C) methane produced:
1647 (I) at landfills; or
1648 (II) as a byproduct of the treatment of wastewater residuals;
1649 (D) aquatic plants; and
1650 (E) agricultural products.
1651 (b) "Biomass energy" does not include:
1652 (i) black liquor;
1653 (ii) treated woods; or
1654 (iii) biomass from municipal solid waste other than methane produced:
1655 (A) at landfills; or
1656 (B) as a byproduct of the treatment of wastewater residuals.
1657 (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
1658 property, products, or services if the tangible personal property, products, or services are:
1659 (i) distinct and identifiable; and
1660 (ii) sold for one nonitemized price.
1661 (b) "Bundled transaction" does not include:
1662 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
1663 the basis of the selection by the purchaser of the items of tangible personal property included in
1664 the transaction;
1665 (ii) the sale of real property;
1666 (iii) the sale of services to real property;
1667 (iv) the retail sale of tangible personal property and a service if:
1668 (A) the tangible personal property:
1669 (I) is essential to the use of the service; and
1670 (II) is provided exclusively in connection with the service; and
1671 (B) the service is the true object of the transaction;
1672 (v) the retail sale of two services if:
1673 (A) one service is provided that is essential to the use or receipt of a second service;
1674 (B) the first service is provided exclusively in connection with the second service; and
1675 (C) the second service is the true object of the transaction;
1676 (vi) a transaction that includes tangible personal property or a product subject to
1677 taxation under this chapter and tangible personal property or a product that is not subject to
1678 taxation under this chapter if the:
1679 (A) seller's purchase price of the tangible personal property or product subject to
1680 taxation under this chapter is de minimis; or
1681 (B) seller's sales price of the tangible personal property or product subject to taxation
1682 under this chapter is de minimis; and
1683 (vii) the retail sale of tangible personal property that is not subject to taxation under
1684 this chapter and tangible personal property that is subject to taxation under this chapter if:
1685 (A) that retail sale includes:
1686 (I) food and food ingredients;
1687 (II) a drug;
1688 (III) durable medical equipment;
1689 (IV) mobility enhancing equipment;
1690 (V) an over-the-counter drug;
1691 (VI) a prosthetic device; or
1692 (VII) a medical supply; and
1693 (B) subject to Subsection (18)(f):
1694 (I) the seller's purchase price of the tangible personal property subject to taxation under
1695 this chapter is 50% or less of the seller's total purchase price of that retail sale; or
1696 (II) the seller's sales price of the tangible personal property subject to taxation under
1697 this chapter is 50% or less of the seller's total sales price of that retail sale.
1698 (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
1699 service that is distinct and identifiable does not include:
1700 (A) packaging that:
1701 (I) accompanies the sale of the tangible personal property, product, or service; and
1702 (II) is incidental or immaterial to the sale of the tangible personal property, product, or
1703 service;
1704 (B) tangible personal property, a product, or a service provided free of charge with the
1705 purchase of another item of tangible personal property, a product, or a service; or
1706 (C) an item of tangible personal property, a product, or a service included in the
1707 definition of "purchase price."
1708 (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
1709 product, or a service is provided free of charge with the purchase of another item of tangible
1710 personal property, a product, or a service if the sales price of the purchased item of tangible
1711 personal property, product, or service does not vary depending on the inclusion of the tangible
1712 personal property, product, or service provided free of charge.
1713 (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
1714 does not include a price that is separately identified by tangible personal property, product, or
1715 service on the following, regardless of whether the following is in paper format or electronic
1716 format:
1717 (A) a binding sales document; or
1718 (B) another supporting sales-related document that is available to a purchaser.
1719 (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
1720 supporting sales-related document that is available to a purchaser includes:
1721 (A) a bill of sale;
1722 (B) a contract;
1723 (C) an invoice;
1724 (D) a lease agreement;
1725 (E) a periodic notice of rates and services;
1726 (F) a price list;
1727 (G) a rate card;
1728 (H) a receipt; or
1729 (I) a service agreement.
1730 (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
1731 property or a product subject to taxation under this chapter is de minimis if:
1732 (A) the seller's purchase price of the tangible personal property or product is 10% or
1733 less of the seller's total purchase price of the bundled transaction; or
1734 (B) the seller's sales price of the tangible personal property or product is 10% or less of
1735 the seller's total sales price of the bundled transaction.
1736 (ii) For purposes of Subsection (18)(b)(vi), a seller:
1737 (A) shall use the seller's purchase price or the seller's sales price to determine if the
1738 purchase price or sales price of the tangible personal property or product subject to taxation
1739 under this chapter is de minimis; and
1740 (B) may not use a combination of the seller's purchase price and the seller's sales price
1741 to determine if the purchase price or sales price of the tangible personal property or product
1742 subject to taxation under this chapter is de minimis.
1743 (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
1744 contract to determine if the sales price of tangible personal property or a product is de minimis.
1745 (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
1746 the seller's purchase price and the seller's sales price to determine if tangible personal property
1747 subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
1748 price of that retail sale.
1749 (19) "Certified automated system" means software certified by the governing board of
1750 the agreement that:
1751 (a) calculates the agreement sales and use tax imposed within a local taxing
1752 jurisdiction:
1753 (i) on a transaction; and
1754 (ii) in the states that are members of the agreement;
1755 (b) determines the amount of agreement sales and use tax to remit to a state that is a
1756 member of the agreement; and
1757 (c) maintains a record of the transaction described in Subsection (19)(a)(i).
1758 (20) "Certified service provider" means an agent certified:
1759 (a) by the governing board of the agreement; and
1760 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
1761 use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
1762 own purchases.
1763 (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
1764 suitable for general use.
1765 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1766 commission shall make rules:
1767 (i) listing the items that constitute "clothing"; and
1768 (ii) that are consistent with the list of items that constitute "clothing" under the
1769 agreement.
1770 (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
1771 (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
1772 fuels that does not constitute industrial use under Subsection [
1773 under Subsection [
1774 (24) (a) "Common carrier" means a person engaged in or transacting the business of
1775 transporting passengers, freight, merchandise, or other property for hire within this state.
1776 (b) (i) "Common carrier" does not include a person who, at the time the person is
1777 traveling to or from that person's place of employment, transports a passenger to or from the
1778 passenger's place of employment.
1779 (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
1780 Utah Administrative Rulemaking Act, the commission may make rules defining what
1781 constitutes a person's place of employment.
1782 (25) "Component part" includes:
1783 (a) poultry, dairy, and other livestock feed, and their components;
1784 (b) baling ties and twine used in the baling of hay and straw;
1785 (c) fuel used for providing temperature control of orchards and commercial
1786 greenhouses doing a majority of their business in wholesale sales, and for providing power for
1787 off-highway type farm machinery; and
1788 (d) feed, seeds, and seedlings.
1789 (26) "Computer" means an electronic device that accepts information:
1790 (a) (i) in digital form; or
1791 (ii) in a form similar to digital form; and
1792 (b) manipulates that information for a result based on a sequence of instructions.
1793 (27) "Computer software" means a set of coded instructions designed to cause:
1794 (a) a computer to perform a task; or
1795 (b) automatic data processing equipment to perform a task.
1796 (28) "Computer software maintenance contract" means a contract that obligates a seller
1797 of computer software to provide a customer with:
1798 (a) future updates or upgrades to computer software;
1799 (b) support services with respect to computer software; or
1800 (c) a combination of Subsections (28)(a) and (b).
1801 (29) (a) "Conference bridging service" means an ancillary service that links two or
1802 more participants of an audio conference call or video conference call.
1803 (b) "Conference bridging service" may include providing a telephone number as part of
1804 the ancillary service described in Subsection (29)(a).
1805 (c) "Conference bridging service" does not include a telecommunications service used
1806 to reach the ancillary service described in Subsection (29)(a).
1807 (30) "Construction materials" means any tangible personal property that will be
1808 converted into real property.
1809 (31) "Delivered electronically" means delivered to a purchaser by means other than
1810 tangible storage media.
1811 (32) (a) "Delivery charge" means a charge:
1812 (i) by a seller of:
1813 (A) tangible personal property;
1814 (B) a product transferred electronically; or
1815 (C) services; and
1816 (ii) for preparation and delivery of the tangible personal property, product transferred
1817 electronically, or services described in Subsection (32)(a)(i) to a location designated by the
1818 purchaser.
1819 (b) "Delivery charge" includes a charge for the following:
1820 (i) transportation;
1821 (ii) shipping;
1822 (iii) postage;
1823 (iv) handling;
1824 (v) crating; or
1825 (vi) packing.
1826 (33) "Detailed telecommunications billing service" means an ancillary service of
1827 separately stating information pertaining to individual calls on a customer's billing statement.
1828 (34) "Dietary supplement" means a product, other than tobacco, that:
1829 (a) is intended to supplement the diet;
1830 (b) contains one or more of the following dietary ingredients:
1831 (i) a vitamin;
1832 (ii) a mineral;
1833 (iii) an herb or other botanical;
1834 (iv) an amino acid;
1835 (v) a dietary substance for use by humans to supplement the diet by increasing the total
1836 dietary intake; or
1837 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
1838 described in Subsections (34)(b)(i) through (v);
1839 (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
1840 (A) tablet form;
1841 (B) capsule form;
1842 (C) powder form;
1843 (D) softgel form;
1844 (E) gelcap form; or
1845 (F) liquid form; or
1846 (ii) [
1847 in a form described in Subsections (34)(c)(i)(A) through (F), is not represented:
1848 (A) as conventional food; and
1849 (B) for use as a sole item of:
1850 (I) a meal; or
1851 (II) the diet; and
1852 (d) is required to be labeled as a dietary supplement:
1853 (i) identifiable by the "Supplemental Facts" box found on the label; and
1854 (ii) as required by 21 C.F.R. Sec. 101.36.
1855 (35) (a) "Direct mail" means printed material delivered or distributed by United States
1856 mail or other delivery service:
1857 (i) to:
1858 (A) a mass audience; or
1859 (B) addressees on a mailing list provided:
1860 (I) by a purchaser of the mailing list; or
1861 (II) at the discretion of the purchaser of the mailing list; and
1862 (ii) if the cost of the printed material is not billed directly to the recipients.
1863 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
1864 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
1865 (c) "Direct mail" does not include multiple items of printed material delivered to a
1866 single address.
1867 (36) "Directory assistance" means an ancillary service of providing:
1868 (a) address information; or
1869 (b) telephone number information.
1870 (37) (a) "Disposable home medical equipment or supplies" means medical equipment
1871 or supplies that:
1872 (i) cannot withstand repeated use; and
1873 (ii) are purchased by, for, or on behalf of a person other than:
1874 (A) a health care facility as defined in Section 26-21-2 ;
1875 (B) a health care provider as defined in Section 78B-3-403 ;
1876 (C) an office of a health care provider described in Subsection (37)(a)(ii)(B); or
1877 (D) a person similar to a person described in Subsections (37)(a)(ii)(A) through (C).
1878 (b) "Disposable home medical equipment or supplies" does not include:
1879 (i) a drug;
1880 (ii) durable medical equipment;
1881 (iii) a hearing aid;
1882 (iv) a hearing aid accessory;
1883 (v) mobility enhancing equipment; or
1884 (vi) tangible personal property used to correct impaired vision, including:
1885 (A) eyeglasses; or
1886 (B) contact lenses.
1887 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1888 commission may by rule define what constitutes medical equipment or supplies.
1889 (38) (a) "Drug" means a compound, substance, or preparation, or a component of a
1890 compound, substance, or preparation that is:
1891 (i) recognized in:
1892 (A) the official United States Pharmacopoeia;
1893 (B) the official Homeopathic Pharmacopoeia of the United States;
1894 (C) the official National Formulary; or
1895 (D) a supplement to a publication listed in Subsections (38)(a)(i)(A) through (C);
1896 (ii) intended for use in the:
1897 (A) diagnosis of disease;
1898 (B) cure of disease;
1899 (C) mitigation of disease;
1900 (D) treatment of disease; or
1901 (E) prevention of disease; or
1902 (iii) intended to affect:
1903 (A) the structure of the body; or
1904 (B) any function of the body.
1905 (b) "Drug" does not include:
1906 (i) food and food ingredients;
1907 (ii) a dietary supplement;
1908 (iii) an alcoholic beverage; or
1909 (iv) a prosthetic device.
1910 (39) (a) Except as provided in Subsection (39)(c), "durable medical equipment" means
1911 equipment that:
1912 (i) can withstand repeated use;
1913 (ii) is primarily and customarily used to serve a medical purpose;
1914 (iii) generally is not useful to a person in the absence of illness or injury; and
1915 (iv) is not worn in or on the body.
1916 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
1917 equipment described in Subsection (39)(a).
1918 (c) [
1919 not include mobility enhancing equipment.
1920 (40) "Electronic" means:
1921 (a) relating to technology; and
1922 (b) having:
1923 (i) electrical capabilities;
1924 (ii) digital capabilities;
1925 (iii) magnetic capabilities;
1926 (iv) wireless capabilities;
1927 (v) optical capabilities;
1928 (vi) electromagnetic capabilities; or
1929 (vii) capabilities similar to Subsections (40)(b)(i) through (vi).
1930 (41) "Electronic financial payment service" means an establishment:
1931 (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
1932 Clearinghouse Activities, of the 2012 North American Industry Classification System of the
1933 federal Executive Office of the President, Office of Management and Budget; and
1934 (b) that performs electronic financial payment services.
1935 [
1936 [
1937 (a) rail for the use of public transit; or
1938 (b) a separate right-of-way for the use of public transit.
1939 [
1940 (a) is powered by turbine engines;
1941 (b) operates on jet fuel; and
1942 (c) has wings that are permanently attached to the fuselage of the aircraft.
1943 [
1944 radio communication between fixed points.
1945 [
1946 (i) regardless of whether the substances are in:
1947 (A) liquid form;
1948 (B) concentrated form;
1949 (C) solid form;
1950 (D) frozen form;
1951 (E) dried form; or
1952 (F) dehydrated form; and
1953 (ii) that are:
1954 (A) sold for:
1955 (I) ingestion by humans; or
1956 (II) chewing by humans; and
1957 (B) consumed for the substance's:
1958 (I) taste; or
1959 (II) nutritional value.
1960 (b) "Food and food ingredients" includes an item described in Subsection [
1961 (87)(b)(iii).
1962 (c) "Food and food ingredients" does not include:
1963 (i) an alcoholic beverage;
1964 (ii) tobacco; or
1965 (iii) prepared food.
1966 [
1967 (i) (A) made by a school; or
1968 (B) made by a school student;
1969 (ii) that are for the purpose of raising funds for the school to purchase equipment,
1970 materials, or provide transportation; and
1971 (iii) that are part of an officially sanctioned school activity.
1972 (b) For purposes of Subsection [
1973 means a school activity:
1974 (i) that is conducted in accordance with a formal policy adopted by the school or school
1975 district governing the authorization and supervision of fundraising activities;
1976 (ii) that does not directly or indirectly compensate an individual teacher or other
1977 educational personnel by direct payment, commissions, or payment in kind; and
1978 (iii) the net or gross revenues from which are deposited in a dedicated account
1979 controlled by the school or school district.
1980 [
1981 flows outward from the earth that is used as the sole source of energy to produce electricity.
1982 [
1983 agreement that is:
1984 (a) authorized to administer the agreement; and
1985 (b) established in accordance with the agreement.
1986 [
1987 means:
1988 (i) the executive branch of the state, including all departments, institutions, boards,
1989 divisions, bureaus, offices, commissions, and committees;
1990 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
1991 Office of the Court Administrator, and similar administrative units in the judicial branch;
1992 (iii) the legislative branch of the state, including the House of Representatives, the
1993 Senate, the Legislative Printing Office, the Office of Legislative Research and General
1994 Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
1995 Analyst;
1996 (iv) the National Guard;
1997 (v) an independent entity as defined in Section 63E-1-102 ; or
1998 (vi) a political subdivision as defined in Section 17B-1-102 .
1999 (b) "Governmental entity" does not include the state systems of public and higher
2000 education, including:
2001 (i) a college campus of the Utah College of Applied Technology;
2002 (ii) a school;
2003 (iii) the State Board of Education;
2004 (iv) the State Board of Regents; or
2005 (v) an institution of higher education.
2006 [
2007 produce electricity.
2008 [
2009 or other fuels:
2010 (a) in mining or extraction of minerals;
2011 (b) in agricultural operations to produce an agricultural product up to the time of
2012 harvest or placing the agricultural product into a storage facility, including:
2013 (i) commercial greenhouses;
2014 (ii) irrigation pumps;
2015 (iii) farm machinery;
2016 (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
2017 registered under Title 41, Chapter 1a, Part 2, Registration; and
2018 (v) other farming activities;
2019 (c) in manufacturing tangible personal property at an establishment described in SIC
2020 Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
2021 Executive Office of the President, Office of Management and Budget;
2022 (d) by a scrap recycler if:
2023 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
2024 one or more of the following items into prepared grades of processed materials for use in new
2025 products:
2026 (A) iron;
2027 (B) steel;
2028 (C) nonferrous metal;
2029 (D) paper;
2030 (E) glass;
2031 (F) plastic;
2032 (G) textile; or
2033 (H) rubber; and
2034 (ii) the new products under Subsection [
2035 nonrecycled materials; or
2036 (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
2037 cogeneration facility as defined in Section 54-2-1 .
2038 [
2039 means a charge for installing:
2040 (i) tangible personal property; or
2041 (ii) a product transferred electronically.
2042 (b) "Installation charge" does not include a charge for:
2043 (i) repairs or renovations of:
2044 (A) tangible personal property; or
2045 (B) a product transferred electronically; or
2046 (ii) attaching tangible personal property or a product transferred electronically:
2047 (A) to other tangible personal property; and
2048 (B) as part of a manufacturing or fabrication process.
2049 [
2050 listed in Section 53B-2-101 .
2051 [
2052 personal property or a product transferred electronically for:
2053 (i) (A) a fixed term; or
2054 (B) an indeterminate term; and
2055 (ii) consideration.
2056 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
2057 amount of consideration may be increased or decreased by reference to the amount realized
2058 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
2059 Code.
2060 (c) "Lease" or "rental" does not include:
2061 (i) a transfer of possession or control of property under a security agreement or
2062 deferred payment plan that requires the transfer of title upon completion of the required
2063 payments;
2064 (ii) a transfer of possession or control of property under an agreement that requires the
2065 transfer of title:
2066 (A) upon completion of required payments; and
2067 (B) if the payment of an option price does not exceed the greater of:
2068 (I) $100; or
2069 (II) 1% of the total required payments; or
2070 (iii) providing tangible personal property along with an operator for a fixed period of
2071 time or an indeterminate period of time if the operator is necessary for equipment to perform as
2072 designed.
2073 (d) For purposes of Subsection [
2074 equipment to perform as designed if the operator's duties exceed the:
2075 (i) set-up of tangible personal property;
2076 (ii) maintenance of tangible personal property; or
2077 (iii) inspection of tangible personal property.
2078 [
2079 classified under the following NAICS codes of the 2007 North American Industry
2080 Classification System of the federal Executive Office of the President, Office of Management
2081 and Budget:
2082 (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
2083 (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
2084 Manufacturing; or
2085 (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
2086 [
2087 leased, or rented by a life science establishment if research and development is performed in
2088 51% or more of the total area of the facility.
2089 [
2090 media if the tangible storage media is not physically transferred to the purchaser.
2091 [
2092 (a) county that is authorized to impose an agreement sales and use tax;
2093 (b) city that is authorized to impose an agreement sales and use tax; or
2094 (c) town that is authorized to impose an agreement sales and use tax.
2095 [
2096 [
2097 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
2098 Industrial Classification Manual of the federal Executive Office of the President, Office of
2099 Management and Budget;
2100 (b) a scrap recycler if:
2101 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
2102 one or more of the following items into prepared grades of processed materials for use in new
2103 products:
2104 (A) iron;
2105 (B) steel;
2106 (C) nonferrous metal;
2107 (D) paper;
2108 (E) glass;
2109 (F) plastic;
2110 (G) textile; or
2111 (H) rubber; and
2112 (ii) the new products under Subsection [
2113 nonrecycled materials; or
2114 (c) a cogeneration facility as defined in Section 54-2-1 .
2115 [
2116 related to a producer described in Subsection 59-12-104 (20)(a) as a:
2117 (a) child or stepchild, regardless of whether the child or stepchild is:
2118 (i) an adopted child or adopted stepchild; or
2119 (ii) a foster child or foster stepchild;
2120 (b) grandchild or stepgrandchild;
2121 (c) grandparent or stepgrandparent;
2122 (d) nephew or stepnephew;
2123 (e) niece or stepniece;
2124 (f) parent or stepparent;
2125 (g) sibling or stepsibling;
2126 (h) spouse;
2127 (i) person who is the spouse of a person described in Subsections [
2128 (g); or
2129 (j) person similar to a person described in Subsections [
2130 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
2131 Administrative Rulemaking Act.
2132 [
2133 [
2134 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
2135 [
2136 regardless of the technology used, if:
2137 (i) the origination point of the conveyance, routing, or transmission is not fixed;
2138 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
2139 (iii) the origination point described in Subsection [
2140 point described in Subsection [
2141 (b) "Mobile wireless service" includes a telecommunications service that is provided
2142 by a commercial mobile radio service provider.
2143 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2144 commission may by rule define "commercial mobile radio service provider."
2145 [
2146 equipment" means equipment that is:
2147 (i) primarily and customarily used to provide or increase the ability to move from one
2148 place to another;
2149 (ii) appropriate for use in a:
2150 (A) home; or
2151 (B) motor vehicle; and
2152 (iii) not generally used by persons with normal mobility.
2153 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
2154 the equipment described in Subsection [
2155 (c) [
2156 does not include:
2157 (i) a motor vehicle;
2158 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
2159 vehicle manufacturer;
2160 (iii) durable medical equipment; or
2161 (iv) a prosthetic device.
2162 [
2163 selected a certified service provider as the seller's agent to perform all of the seller's sales and
2164 use tax functions for agreement sales and use taxes other than the seller's obligation under
2165 Section 59-12-124 to remit a tax on the seller's own purchases.
2166 [
2167 (a) except as provided in Subsection [
2168 system to perform the seller's sales tax functions for agreement sales and use taxes; and
2169 (b) [
2170 sales tax:
2171 (i) collected by the seller; and
2172 (ii) to the appropriate local taxing jurisdiction.
2173 [
2174 registered under the agreement that has:
2175 (i) sales in at least five states that are members of the agreement;
2176 (ii) total annual sales revenues of at least $500,000,000;
2177 (iii) a proprietary system that calculates the amount of tax:
2178 (A) for an agreement sales and use tax; and
2179 (B) due to each local taxing jurisdiction; and
2180 (iv) entered into a performance agreement with the governing board of the agreement.
2181 (b) For purposes of Subsection [
2182 group of sellers using the same proprietary system.
2183 [
2184 not a model 1 seller, model 2 seller, or model 3 seller.
2185 [
2186 [
2187 [
2188 (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
2189 other hydrocarbons, or otherwise treated;
2190 (b) yield mixtures of liquid hydrocarbon; and
2191 (c) require further processing other than mechanical blending before becoming finished
2192 petroleum products.
2193 [
2194 kerogen material that yields petroleum upon heating and distillation.
2195 [
2196 software maintenance contract that a customer is not obligated to purchase as a condition to the
2197 retail sale of computer software.
2198 [
2199 energy.
2200 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
2201 personal property.
2202 [
2203 transmission of a coded radio signal for the purpose of activating a specific pager.
2204 (b) For purposes of Subsection [
2205 includes a transmission by message or sound.
2206 [
2207 [
2208 [
2209 property attached to real property:
2210 (i) the attachment of the tangible personal property to the real property:
2211 (A) is essential to the use of the tangible personal property; and
2212 (B) suggests that the tangible personal property will remain attached to the real
2213 property in the same place over the useful life of the tangible personal property; or
2214 (ii) if the tangible personal property is detached from the real property, the detachment
2215 would:
2216 (A) cause substantial damage to the tangible personal property; or
2217 (B) require substantial alteration or repair of the real property to which the tangible
2218 personal property is attached.
2219 (b) "Permanently attached to real property" includes:
2220 (i) the attachment of an accessory to the tangible personal property if the accessory is:
2221 (A) essential to the operation of the tangible personal property; and
2222 (B) attached only to facilitate the operation of the tangible personal property;
2223 (ii) a temporary detachment of tangible personal property from real property for a
2224 repair or renovation if the repair or renovation is performed where the tangible personal
2225 property and real property are located; or
2226 (iii) property attached to oil, gas, or water pipelines, except for the property listed in
2227 Subsection [
2228 (c) "Permanently attached to real property" does not include:
2229 (i) the attachment of portable or movable tangible personal property to real property if
2230 that portable or movable tangible personal property is attached to real property only for:
2231 (A) convenience;
2232 (B) stability; or
2233 (C) for an obvious temporary purpose;
2234 (ii) the detachment of tangible personal property from real property except for the
2235 detachment described in Subsection [
2236 (iii) an attachment of the following tangible personal property to real property if the
2237 attachment to real property is only through a line that supplies water, electricity, gas,
2238 telecommunications, cable, or supplies a similar item as determined by the commission by rule
2239 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
2240 (A) a computer;
2241 (B) a telephone;
2242 (C) a television; or
2243 (D) tangible personal property similar to Subsections [
2244 as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
2245 Administrative Rulemaking Act; or
2246 (iv) an item listed in Subsection [
2247 [
2248 association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
2249 city, municipality, district, or other local governmental entity of the state, or any group or
2250 combination acting as a unit.
2251 [
2252 (a) for telecommunications service other than mobile telecommunications service,
2253 means the street address representative of where the customer's use of the telecommunications
2254 service primarily occurs, which shall be:
2255 (i) the residential street address of the customer; or
2256 (ii) the primary business street address of the customer; or
2257 (b) for mobile telecommunications service, is as defined in the Mobile
2258 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
2259 [
2260 obtains by making a payment on a call-by-call basis:
2261 (i) through the use of a:
2262 (A) bank card;
2263 (B) credit card;
2264 (C) debit card; or
2265 (D) travel card; or
2266 (ii) by a charge made to a telephone number that is not associated with the origination
2267 or termination of the telecommunications service.
2268 (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
2269 service, that would be a prepaid wireless calling service if the service were exclusively a
2270 telecommunications service.
2271 [
2272 a medium described in Subsection 59-12-104 (54)(a).
2273 [
2274 (a) that allows a purchaser access to telecommunications service that is exclusively
2275 telecommunications service;
2276 (b) that:
2277 (i) is paid for in advance; and
2278 (ii) enables the origination of a call using an:
2279 (A) access number; or
2280 (B) authorization code;
2281 (c) that is dialed:
2282 (i) manually; or
2283 (ii) electronically; and
2284 (d) sold in predetermined units or dollars that decline:
2285 (i) by a known amount; and
2286 (ii) with use.
2287 [
2288 (a) that provides the right to utilize:
2289 (i) mobile wireless service; and
2290 (ii) other service that is not a telecommunications service, including:
2291 (A) the download of a product transferred electronically;
2292 (B) a content service; or
2293 (C) an ancillary service;
2294 (b) that:
2295 (i) is paid for in advance; and
2296 (ii) enables the origination of a call using an:
2297 (A) access number; or
2298 (B) authorization code;
2299 (c) that is dialed:
2300 (i) manually; or
2301 (ii) electronically; and
2302 (d) sold in predetermined units or dollars that decline:
2303 (i) by a known amount; and
2304 (ii) with use.
2305 [
2306 (i) food:
2307 (A) sold in a heated state; or
2308 (B) heated by a seller;
2309 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
2310 item; or
2311 (iii) except as provided in Subsection [
2312 provided by the seller, including a:
2313 (A) plate;
2314 (B) knife;
2315 (C) fork;
2316 (D) spoon;
2317 (E) glass;
2318 (F) cup;
2319 (G) napkin; or
2320 (H) straw.
2321 (b) "Prepared food" does not include:
2322 (i) food that a seller only:
2323 (A) cuts;
2324 (B) repackages; or
2325 (C) pasteurizes; or
2326 (ii) (A) the following:
2327 (I) raw egg;
2328 (II) raw fish;
2329 (III) raw meat;
2330 (IV) raw poultry; or
2331 (V) a food containing an item described in Subsections [
2332 (IV); and
2333 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
2334 Food and Drug Administration's Food Code that a consumer cook the items described in
2335 Subsection [
2336 (iii) the following if sold without eating utensils provided by the seller:
2337 (A) food and food ingredients sold by a seller if the seller's proper primary
2338 classification under the 2002 North American Industry Classification System of the federal
2339 Executive Office of the President, Office of Management and Budget, is manufacturing in
2340 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
2341 Manufacturing;
2342 (B) food and food ingredients sold in an unheated state:
2343 (I) by weight or volume; and
2344 (II) as a single item; or
2345 (C) a bakery item, including:
2346 (I) a bagel;
2347 (II) a bar;
2348 (III) a biscuit;
2349 (IV) bread;
2350 (V) a bun;
2351 (VI) a cake;
2352 (VII) a cookie;
2353 (VIII) a croissant;
2354 (IX) a danish;
2355 (X) a donut;
2356 (XI) a muffin;
2357 (XII) a pastry;
2358 (XIII) a pie;
2359 (XIV) a roll;
2360 (XV) a tart;
2361 (XVI) a torte; or
2362 (XVII) a tortilla.
2363 (c) [
2364 seller does not include the following used to transport the food:
2365 (i) a container; or
2366 (ii) packaging.
2367 [
2368 (a) (i) orally;
2369 (ii) in writing;
2370 (iii) electronically; or
2371 (iv) by any other manner of transmission; and
2372 (b) by a licensed practitioner authorized by the laws of a state.
2373 [
2374 computer software" means computer software that is not designed and developed:
2375 (i) by the author or other creator of the computer software; and
2376 (ii) to the specifications of a specific purchaser.
2377 (b) "Prewritten computer software" includes:
2378 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
2379 software is not designed and developed:
2380 (A) by the author or other creator of the computer software; and
2381 (B) to the specifications of a specific purchaser;
2382 (ii) [
2383 by the author or other creator of the computer software to the specifications of a specific
2384 purchaser if the computer software is sold to a person other than the purchaser; or
2385 (iii) [
2386 (89)(c), prewritten computer software or a prewritten portion of prewritten computer software:
2387 (A) that is modified or enhanced to any degree; and
2388 (B) if the modification or enhancement described in Subsection [
2389 designed and developed to the specifications of a specific purchaser.
2390 (c) [
2391 software" does not include a modification or enhancement described in Subsection [
2392 (89)(b)(iii) if the charges for the modification or enhancement are:
2393 (i) reasonable; and
2394 (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), separately stated on the
2395 invoice or other statement of price provided to the purchaser at the time of sale or later, as
2396 demonstrated by:
2397 (A) the books and records the seller keeps at the time of the transaction in the regular
2398 course of business, including books and records the seller keeps at the time of the transaction in
2399 the regular course of business for nontax purposes;
2400 (B) a preponderance of the facts and circumstances at the time of the transaction; and
2401 (C) the understanding of all of the parties to the transaction.
2402 [
2403 (i) that entitles a customer to exclusive or priority use of one or more communications
2404 channels between or among termination points; and
2405 (ii) regardless of the manner in which the one or more communications channels are
2406 connected.
2407 (b) "Private communications service" includes the following provided in connection
2408 with the use of one or more communications channels:
2409 (i) an extension line;
2410 (ii) a station;
2411 (iii) switching capacity; or
2412 (iv) another associated service that is provided in connection with the use of one or
2413 more communications channels as defined in Section 59-12-215 .
2414 [
2415 electronically" means a product transferred electronically that would be subject to a tax under
2416 this chapter if that product was transferred in a manner other than electronically.
2417 (b) "Product transferred electronically" does not include:
2418 (i) an ancillary service;
2419 (ii) computer software; or
2420 (iii) a telecommunications service.
2421 [
2422 (i) artificially replace a missing portion of the body;
2423 (ii) prevent or correct a physical deformity or physical malfunction; or
2424 (iii) support a weak or deformed portion of the body.
2425 (b) "Prosthetic device" includes:
2426 (i) parts used in the repairs or renovation of a prosthetic device;
2427 (ii) replacement parts for a prosthetic device;
2428 (iii) a dental prosthesis; or
2429 (iv) a hearing aid.
2430 (c) "Prosthetic device" does not include:
2431 (i) corrective eyeglasses; or
2432 (ii) contact lenses.
2433 [
2434 (i) for human wear; and
2435 (ii) that is:
2436 (A) designed as protection:
2437 (I) to the wearer against injury or disease; or
2438 (II) against damage or injury of other persons or property; and
2439 (B) not suitable for general use.
2440 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2441 commission shall make rules:
2442 (i) listing the items that constitute "protective equipment"; and
2443 (ii) that are consistent with the list of items that constitute "protective equipment"
2444 under the agreement.
2445 [
2446 written or printed matter, other than a photocopy:
2447 (i) regardless of:
2448 (A) characteristics;
2449 (B) copyright;
2450 (C) form;
2451 (D) format;
2452 (E) method of reproduction; or
2453 (F) source; and
2454 (ii) made available in printed or electronic format.
2455 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2456 commission may by rule define the term "photocopy."
2457 [
2458 consideration:
2459 (i) valued in money; and
2460 (ii) for which tangible personal property, a product transferred electronically, or
2461 services are:
2462 (A) sold;
2463 (B) leased; or
2464 (C) rented.
2465 (b) "Purchase price" and "sales price" include:
2466 (i) the seller's cost of the tangible personal property, a product transferred
2467 electronically, or services sold;
2468 (ii) expenses of the seller, including:
2469 (A) the cost of materials used;
2470 (B) a labor cost;
2471 (C) a service cost;
2472 (D) interest;
2473 (E) a loss;
2474 (F) the cost of transportation to the seller; or
2475 (G) a tax imposed on the seller;
2476 (iii) a charge by the seller for any service necessary to complete the sale; or
2477 (iv) consideration a seller receives from a person other than the purchaser if:
2478 (A) (I) the seller actually receives consideration from a person other than the purchaser;
2479 and
2480 (II) the consideration described in Subsection [
2481 to a price reduction or discount on the sale;
2482 (B) the seller has an obligation to pass the price reduction or discount through to the
2483 purchaser;
2484 (C) the amount of the consideration attributable to the sale is fixed and determinable by
2485 the seller at the time of the sale to the purchaser; and
2486 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
2487 seller to claim a price reduction or discount; and
2488 (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
2489 coupon, or other documentation with the understanding that the person other than the seller
2490 will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
2491 (II) the purchaser identifies that purchaser to the seller as a member of a group or
2492 organization allowed a price reduction or discount, except that a preferred customer card that is
2493 available to any patron of a seller does not constitute membership in a group or organization
2494 allowed a price reduction or discount; or
2495 (III) the price reduction or discount is identified as a third party price reduction or
2496 discount on the:
2497 (Aa) invoice the purchaser receives; or
2498 (Bb) certificate, coupon, or other documentation the purchaser presents.
2499 (c) "Purchase price" and "sales price" do not include:
2500 (i) a discount:
2501 (A) in a form including:
2502 (I) cash;
2503 (II) term; or
2504 (III) coupon;
2505 (B) that is allowed by a seller;
2506 (C) taken by a purchaser on a sale; and
2507 (D) that is not reimbursed by a third party; or
2508 (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), the following if separately
2509 stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
2510 sale or later, as demonstrated by the books and records the seller keeps at the time of the
2511 transaction in the regular course of business, including books and records the seller keeps at the
2512 time of the transaction in the regular course of business for nontax purposes, by a
2513 preponderance of the facts and circumstances at the time of the transaction, and by the
2514 understanding of all of the parties to the transaction:
2515 (A) the following from credit extended on the sale of tangible personal property or
2516 services:
2517 (I) a carrying charge;
2518 (II) a financing charge; or
2519 (III) an interest charge;
2520 (B) a delivery charge;
2521 (C) an installation charge;
2522 (D) a manufacturer rebate on a motor vehicle; or
2523 (E) a tax or fee legally imposed directly on the consumer.
2524 [
2525 (a) a sale of tangible personal property is made;
2526 (b) a product is transferred electronically; or
2527 (c) a service is furnished.
2528 [
2529 (a) rented to a guest for value three or more times during a calendar year; or
2530 (b) advertised or held out to the public as a place that is regularly rented to guests for
2531 value.
2532 [
2533 [
2534 of tangible personal property" means:
2535 (i) a repair or renovation of tangible personal property that is not permanently attached
2536 to real property; or
2537 (ii) attaching tangible personal property or a product transferred electronically to other
2538 tangible personal property or detaching tangible personal property or a product transferred
2539 electronically from other tangible personal property if:
2540 (A) the other tangible personal property to which the tangible personal property or
2541 product transferred electronically is attached or from which the tangible personal property or
2542 product transferred electronically is detached is not permanently attached to real property; and
2543 (B) the attachment of tangible personal property or a product transferred electronically
2544 to other tangible personal property or detachment of tangible personal property or a product
2545 transferred electronically from other tangible personal property is made in conjunction with a
2546 repair or replacement of tangible personal property or a product transferred electronically.
2547 (b) "Repairs or renovations of tangible personal property" does not include:
2548 (i) attaching prewritten computer software to other tangible personal property if the
2549 other tangible personal property to which the prewritten computer software is attached is not
2550 permanently attached to real property; or
2551 (ii) detaching prewritten computer software from other tangible personal property if the
2552 other tangible personal property from which the prewritten computer software is detached is
2553 not permanently attached to real property.
2554 [
2555 experimentation aimed at the discovery of facts, devices, technologies, or applications and the
2556 process of preparing those devices, technologies, or applications for marketing.
2557 [
2558 telecommunications service or an ancillary service that is provided to an individual for personal
2559 use:
2560 (i) at a residential address; or
2561 (ii) at an institution, including a nursing home or a school, if the telecommunications
2562 service or ancillary service is provided to and paid for by the individual residing at the
2563 institution rather than the institution.
2564 (b) For purposes of Subsection [
2565 (i) apartment; or
2566 (ii) other individual dwelling unit.
2567 [
2568 sleeping quarters, and similar facilities or accommodations.
2569 [
2570 other than:
2571 (a) resale;
2572 (b) sublease; or
2573 (c) subrent.
2574 [
2575 business in tangible personal property or any other taxable transaction under Subsection
2576 59-12-103 (1), and who is selling to the user or consumer and not for resale.
2577 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
2578 engaged in the business of selling to users or consumers within the state.
2579 [
2580 otherwise, in any manner, of tangible personal property or any other taxable transaction under
2581 Subsection 59-12-103 (1), for consideration.
2582 (b) "Sale" includes:
2583 (i) installment and credit sales;
2584 (ii) any closed transaction constituting a sale;
2585 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
2586 chapter;
2587 (iv) any transaction if the possession of property is transferred but the seller retains the
2588 title as security for the payment of the price; and
2589 (v) any transaction under which right to possession, operation, or use of any article of
2590 tangible personal property is granted under a lease or contract and the transfer of possession
2591 would be taxable if an outright sale were made.
2592 [
2593 [
2594 tangible personal property or a product transferred electronically that is subject to a tax under
2595 this chapter is transferred:
2596 (a) by a purchaser-lessee;
2597 (b) to a lessor;
2598 (c) for consideration; and
2599 (d) if:
2600 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
2601 of the tangible personal property or product transferred electronically;
2602 (ii) the sale of the tangible personal property or product transferred electronically to the
2603 lessor is intended as a form of financing:
2604 (A) for the tangible personal property or product transferred electronically; and
2605 (B) to the purchaser-lessee; and
2606 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
2607 is required to:
2608 (A) capitalize the tangible personal property or product transferred electronically for
2609 financial reporting purposes; and
2610 (B) account for the lease payments as payments made under a financing arrangement.
2611 [
2612 [
2613 paid to, or amounts charged by a school:
2614 (i) sales that are directly related to the school's educational functions or activities
2615 including:
2616 (A) the sale of:
2617 (I) textbooks;
2618 (II) textbook fees;
2619 (III) laboratory fees;
2620 (IV) laboratory supplies; or
2621 (V) safety equipment;
2622 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
2623 that:
2624 (I) a student is specifically required to wear as a condition of participation in a
2625 school-related event or school-related activity; and
2626 (II) is not readily adaptable to general or continued usage to the extent that it takes the
2627 place of ordinary clothing;
2628 (C) sales of the following if the net or gross revenues generated by the sales are
2629 deposited into a school district fund or school fund dedicated to school meals:
2630 (I) food and food ingredients; or
2631 (II) prepared food; or
2632 (D) transportation charges for official school activities; or
2633 (ii) amounts paid to or amounts charged by a school for admission to a school-related
2634 event or school-related activity.
2635 (b) "Sales relating to schools" does not include:
2636 (i) bookstore sales of items that are not educational materials or supplies;
2637 (ii) except as provided in Subsection [
2638 (A) clothing;
2639 (B) clothing accessories or equipment;
2640 (C) protective equipment; or
2641 (D) sports or recreational equipment; or
2642 (iii) amounts paid to or amounts charged by a school for admission to a school-related
2643 event or school-related activity if the amounts paid or charged are passed through to a person:
2644 (A) other than a:
2645 (I) school;
2646 (II) nonprofit organization authorized by a school board or a governing body of a
2647 private school to organize and direct a competitive secondary school activity; or
2648 (III) nonprofit association authorized by a school board or a governing body of a
2649 private school to organize and direct a competitive secondary school activity; and
2650 (B) that is required to collect sales and use taxes under this chapter.
2651 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2652 commission may make rules defining the term "passed through."
2653 [
2654 (a) means:
2655 (i) an elementary school or a secondary school that:
2656 (A) is a:
2657 (I) public school; or
2658 (II) private school; and
2659 (B) provides instruction for one or more grades kindergarten through 12; or
2660 (ii) a public school district; and
2661 (b) includes the Electronic High School as defined in Section 53A-15-1002 .
2662 [
2663 (a) tangible personal property;
2664 (b) a product transferred electronically; or
2665 (c) a service.
2666 [
2667 materials" means tangible personal property or a product transferred electronically if the
2668 tangible personal property or product transferred electronically is:
2669 (i) used primarily in the process of:
2670 (A) (I) manufacturing a semiconductor;
2671 (II) fabricating a semiconductor; or
2672 (III) research or development of a:
2673 (Aa) semiconductor; or
2674 (Bb) semiconductor manufacturing process; or
2675 (B) maintaining an environment suitable for a semiconductor; or
2676 (ii) consumed primarily in the process of:
2677 (A) (I) manufacturing a semiconductor;
2678 (II) fabricating a semiconductor; or
2679 (III) research or development of a:
2680 (Aa) semiconductor; or
2681 (Bb) semiconductor manufacturing process; or
2682 (B) maintaining an environment suitable for a semiconductor.
2683 (b) "Semiconductor fabricating, processing, research, or development materials"
2684 includes:
2685 (i) parts used in the repairs or renovations of tangible personal property or a product
2686 transferred electronically described in Subsection [
2687 (ii) a chemical, catalyst, or other material used to:
2688 (A) produce or induce in a semiconductor a:
2689 (I) chemical change; or
2690 (II) physical change;
2691 (B) remove impurities from a semiconductor; or
2692 (C) improve the marketable condition of a semiconductor.
2693 [
2694 providing services to the aged as defined in Section 62A-3-101 .
2695 [
2696 (a) described in Section 318(C) of the agreement; and
2697 (b) approved by the governing board of the agreement.
2698 [
2699 producing electricity.
2700 [
2701 (i) designed for human use; and
2702 (ii) that is:
2703 (A) worn in conjunction with:
2704 (I) an athletic activity; or
2705 (II) a recreational activity; and
2706 (B) not suitable for general use.
2707 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2708 commission shall make rules:
2709 (i) listing the items that constitute "sports or recreational equipment"; and
2710 (ii) that are consistent with the list of items that constitute "sports or recreational
2711 equipment" under the agreement.
2712 [
2713 [
2714 any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
2715 except sale in the regular course of business.
2716 [
2717 personal property" means personal property that:
2718 (i) may be:
2719 (A) seen;
2720 (B) weighed;
2721 (C) measured;
2722 (D) felt; or
2723 (E) touched; or
2724 (ii) is in any manner perceptible to the senses.
2725 (b) "Tangible personal property" includes:
2726 (i) electricity;
2727 (ii) water;
2728 (iii) gas;
2729 (iv) steam; or
2730 (v) prewritten computer software, regardless of the manner in which the prewritten
2731 computer software is transferred.
2732 (c) "Tangible personal property" includes the following regardless of whether the item
2733 is attached to real property:
2734 (i) a dishwasher;
2735 (ii) a dryer;
2736 (iii) a freezer;
2737 (iv) a microwave;
2738 (v) a refrigerator;
2739 (vi) a stove;
2740 (vii) a washer; or
2741 (viii) an item similar to Subsections [
2742 the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2743 Rulemaking Act.
2744 (d) "Tangible personal property" does not include a product that is transferred
2745 electronically.
2746 (e) "Tangible personal property" does not include the following if attached to real
2747 property, regardless of whether the attachment to real property is only through a line that
2748 supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
2749 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2750 Rulemaking Act:
2751 (i) a hot water heater;
2752 (ii) a water filtration system; or
2753 (iii) a water softener system.
2754 [
2755 or software" means an item listed in Subsection [
2756 leased primarily to enable or facilitate one or more of the following to function:
2757 (i) telecommunications switching or routing equipment, machinery, or software; or
2758 (ii) telecommunications transmission equipment, machinery, or software.
2759 (b) The following apply to Subsection [
2760 (i) a pole;
2761 (ii) software;
2762 (iii) a supplementary power supply;
2763 (iv) temperature or environmental equipment or machinery;
2764 (v) test equipment;
2765 (vi) a tower; or
2766 (vii) equipment, machinery, or software that functions similarly to an item listed in
2767 Subsections [
2768 accordance with Subsection [
2769 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2770 commission may by rule define what constitutes equipment, machinery, or software that
2771 functions similarly to an item listed in Subsections [
2772 [
2773 911 service" means equipment, machinery, or software that is required to comply with 47
2774 C.F.R. Sec. 20.18.
2775 [
2776 software" means equipment, machinery, or software purchased or leased primarily to maintain
2777 or repair one or more of the following, regardless of whether the equipment, machinery, or
2778 software is purchased or leased as a spare part or as an upgrade or modification to one or more
2779 of the following:
2780 (a) telecommunications enabling or facilitating equipment, machinery, or software;
2781 (b) telecommunications switching or routing equipment, machinery, or software; or
2782 (c) telecommunications transmission equipment, machinery, or software.
2783 [
2784 routing, or transmission of audio, data, video, voice, or any other information or signal to a
2785 point, or among or between points.
2786 (b) "Telecommunications service" includes:
2787 (i) an electronic conveyance, routing, or transmission with respect to which a computer
2788 processing application is used to act:
2789 (A) on the code, form, or protocol of the content;
2790 (B) for the purpose of electronic conveyance, routing, or transmission; and
2791 (C) regardless of whether the service:
2792 (I) is referred to as voice over Internet protocol service; or
2793 (II) is classified by the Federal Communications Commission as enhanced or value
2794 added;
2795 (ii) an 800 service;
2796 (iii) a 900 service;
2797 (iv) a fixed wireless service;
2798 (v) a mobile wireless service;
2799 (vi) a postpaid calling service;
2800 (vii) a prepaid calling service;
2801 (viii) a prepaid wireless calling service; or
2802 (ix) a private communications service.
2803 (c) "Telecommunications service" does not include:
2804 (i) advertising, including directory advertising;
2805 (ii) an ancillary service;
2806 (iii) a billing and collection service provided to a third party;
2807 (iv) a data processing and information service if:
2808 (A) the data processing and information service allows data to be:
2809 (I) (Aa) acquired;
2810 (Bb) generated;
2811 (Cc) processed;
2812 (Dd) retrieved; or
2813 (Ee) stored; and
2814 (II) delivered by an electronic transmission to a purchaser; and
2815 (B) the purchaser's primary purpose for the underlying transaction is the processed data
2816 or information;
2817 (v) installation or maintenance of the following on a customer's premises:
2818 (A) equipment; or
2819 (B) wiring;
2820 (vi) Internet access service;
2821 (vii) a paging service;
2822 (viii) a product transferred electronically, including:
2823 (A) music;
2824 (B) reading material;
2825 (C) a ring tone;
2826 (D) software; or
2827 (E) video;
2828 (ix) a radio and television audio and video programming service:
2829 (A) regardless of the medium; and
2830 (B) including:
2831 (I) furnishing conveyance, routing, or transmission of a television audio and video
2832 programming service by a programming service provider;
2833 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
2834 (III) audio and video programming services delivered by a commercial mobile radio
2835 service provider as defined in 47 C.F.R. Sec. 20.3;
2836 (x) a value-added nonvoice data service; or
2837 (xi) tangible personal property.
2838 [
2839 (i) owns, controls, operates, or manages a telecommunications service; and
2840 (ii) engages in an activity described in Subsection [
2841 with or resale to any person of the telecommunications service.
2842 (b) A person described in Subsection [
2843 provider whether or not the Public Service Commission of Utah regulates:
2844 (i) that person; or
2845 (ii) the telecommunications service that the person owns, controls, operates, or
2846 manages.
2847 [
2848 software" means an item listed in Subsection [
2849 leased primarily for switching or routing:
2850 (i) an ancillary service;
2851 (ii) data communications;
2852 (iii) voice communications; or
2853 (iv) telecommunications service.
2854 (b) The following apply to Subsection [
2855 (i) a bridge;
2856 (ii) a computer;
2857 (iii) a cross connect;
2858 (iv) a modem;
2859 (v) a multiplexer;
2860 (vi) plug in circuitry;
2861 (vii) a router;
2862 (viii) software;
2863 (ix) a switch; or
2864 (x) equipment, machinery, or software that functions similarly to an item listed in
2865 Subsections [
2866 accordance with Subsection [
2867 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2868 commission may by rule define what constitutes equipment, machinery, or software that
2869 functions similarly to an item listed in Subsections [
2870 [
2871 software" means an item listed in Subsection [
2872 leased primarily for sending, receiving, or transporting:
2873 (i) an ancillary service;
2874 (ii) data communications;
2875 (iii) voice communications; or
2876 (iv) telecommunications service.
2877 (b) The following apply to Subsection [
2878 (i) an amplifier;
2879 (ii) a cable;
2880 (iii) a closure;
2881 (iv) a conduit;
2882 (v) a controller;
2883 (vi) a duplexer;
2884 (vii) a filter;
2885 (viii) an input device;
2886 (ix) an input/output device;
2887 (x) an insulator;
2888 (xi) microwave machinery or equipment;
2889 (xii) an oscillator;
2890 (xiii) an output device;
2891 (xiv) a pedestal;
2892 (xv) a power converter;
2893 (xvi) a power supply;
2894 (xvii) a radio channel;
2895 (xviii) a radio receiver;
2896 (xix) a radio transmitter;
2897 (xx) a repeater;
2898 (xxi) software;
2899 (xxii) a terminal;
2900 (xxiii) a timing unit;
2901 (xxiv) a transformer;
2902 (xxv) a wire; or
2903 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
2904 Subsections [
2905 accordance with Subsection [
2906 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2907 commission may by rule define what constitutes equipment, machinery, or software that
2908 functions similarly to an item listed in Subsections [
2909 [
2910 printed material that is required for a course:
2911 (i) offered by an institution of higher education; and
2912 (ii) that the purchaser of the textbook or other printed material attends or will attend.
2913 (b) "Textbook for a higher education course" includes a textbook in electronic format.
2914 [
2915 (a) a cigarette;
2916 (b) a cigar;
2917 (c) chewing tobacco;
2918 (d) pipe tobacco; or
2919 (e) any other item that contains tobacco.
2920 [
2921 device, or ride device that is started and stopped by the purchaser or renter of the right to use or
2922 operate the amusement device, skill device, or ride device.
2923 [
2924 property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
2925 incident to the ownership or the leasing of that tangible personal property, product transferred
2926 electronically, or service.
2927 (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
2928 property, a product transferred electronically, or a service in the regular course of business and
2929 held for resale.
2930 [
2931 (a) that otherwise meets the definition of a telecommunications service except that a
2932 computer processing application is used to act primarily for a purpose other than conveyance,
2933 routing, or transmission; and
2934 (b) with respect to which a computer processing application is used to act on data or
2935 information:
2936 (i) code;
2937 (ii) content;
2938 (iii) form; or
2939 (iv) protocol.
2940 [
2941 that are required to be titled, registered, or titled and registered:
2942 (i) an aircraft as defined in Section 72-10-102 ;
2943 (ii) a vehicle as defined in Section 41-1a-102 ;
2944 (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
2945 (iv) a vessel as defined in Section 41-1a-102 .
2946 (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
2947 (i) a vehicle described in Subsection [
2948 (ii) (A) a locomotive;
2949 (B) a freight car;
2950 (C) railroad work equipment; or
2951 (D) other railroad rolling stock.
2952 [
2953 selling, or exchanging a vehicle as defined in Subsection [
2954 [
2955 (i) is offered in connection with one or more telecommunications services; and
2956 (ii) offers an advanced calling feature that allows a customer to:
2957 (A) identify a caller; and
2958 (B) manage multiple calls and call connections.
2959 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
2960 conference bridging service.
2961 [
2962 customer to receive, send, or store a recorded message.
2963 (b) "Voice mail service" does not include a vertical service that a customer is required
2964 to have in order to utilize a voice mail service.
2965 [
2966 facility" means a facility that generates electricity:
2967 (i) using as the primary source of energy waste materials that would be placed in a
2968 landfill or refuse pit if it were not used to generate electricity, including:
2969 (A) tires;
2970 (B) waste coal;
2971 (C) oil shale; or
2972 (D) municipal solid waste; and
2973 (ii) in amounts greater than actually required for the operation of the facility.
2974 (b) "Waste energy facility" does not include a facility that incinerates:
2975 (i) hospital waste as defined in 40 C.F.R. 60.51c; or
2976 (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
2977 [
2978 [
2979 electricity.
2980 [
2981 geographic location by the United States Postal Service.
2982 Section 3. Section 59-12-104 is amended to read:
2983 59-12-104. Exemptions.
2984 The following sales and uses are exempt from the taxes imposed by this chapter:
2985 (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
2986 under Chapter 13, Motor and Special Fuel Tax Act;
2987 (2) subject to Section 59-12-104.6 , sales to the state, its institutions, and its political
2988 subdivisions; however, this exemption does not apply to sales of:
2989 (a) construction materials except:
2990 (i) construction materials purchased by or on behalf of institutions of the public
2991 education system as defined in Utah Constitution Article X, Section 2, provided the
2992 construction materials are clearly identified and segregated and installed or converted to real
2993 property which is owned by institutions of the public education system; and
2994 (ii) construction materials purchased by the state, its institutions, or its political
2995 subdivisions which are installed or converted to real property by employees of the state, its
2996 institutions, or its political subdivisions; or
2997 (b) tangible personal property in connection with the construction, operation,
2998 maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
2999 providing additional project capacity, as defined in Section 11-13-103 ;
3000 (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
3001 (i) the proceeds of each sale do not exceed $1; and
3002 (ii) the seller or operator of the vending machine reports an amount equal to 150% of
3003 the cost of the item described in Subsection (3)(b) as goods consumed; and
3004 (b) Subsection (3)(a) applies to:
3005 (i) food and food ingredients; or
3006 (ii) prepared food;
3007 (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
3008 (i) alcoholic beverages;
3009 (ii) food and food ingredients; or
3010 (iii) prepared food;
3011 (b) sales of tangible personal property or a product transferred electronically:
3012 (i) to a passenger;
3013 (ii) by a commercial airline carrier; and
3014 (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
3015 (c) services related to Subsection (4)(a) or (b);
3016 (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
3017 and equipment:
3018 (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
3019 North American Industry Classification System of the federal Executive Office of the
3020 President, Office of Management and Budget; and
3021 (II) for:
3022 (Aa) installation in an aircraft, including services relating to the installation of parts or
3023 equipment in the aircraft;
3024 (Bb) renovation of an aircraft; or
3025 (Cc) repair of an aircraft; or
3026 (B) for installation in an aircraft operated by a common carrier in interstate or foreign
3027 commerce; or
3028 (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
3029 aircraft operated by a common carrier in interstate or foreign commerce; and
3030 (b) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
3031 a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
3032 refund:
3033 (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
3034 (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
3035 (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
3036 the sale prior to filing for the refund;
3037 (iv) for sales and use taxes paid under this chapter on the sale;
3038 (v) in accordance with Section 59-1-1410 ; and
3039 (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
3040 the person files for the refund on or before September 30, 2011;
3041 (6) sales of commercials, motion picture films, prerecorded audio program tapes or
3042 records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
3043 exhibitor, distributor, or commercial television or radio broadcaster;
3044 (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
3045 property if the cleaning or washing of the tangible personal property is not assisted cleaning or
3046 washing of tangible personal property;
3047 (b) if a seller that sells at the same business location assisted cleaning or washing of
3048 tangible personal property and cleaning or washing of tangible personal property that is not
3049 assisted cleaning or washing of tangible personal property, the exemption described in
3050 Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
3051 or washing of the tangible personal property; and
3052 (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
3053 Utah Administrative Rulemaking Act, the commission may make rules:
3054 (i) governing the circumstances under which sales are at the same business location;
3055 and
3056 (ii) establishing the procedures and requirements for a seller to separately account for
3057 sales of assisted cleaning or washing of tangible personal property;
3058 (8) sales made to or by religious or charitable institutions in the conduct of their regular
3059 religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
3060 fulfilled;
3061 (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
3062 this state if the vehicle is:
3063 (a) not registered in this state; and
3064 (b) (i) not used in this state; or
3065 (ii) used in this state:
3066 (A) if the vehicle is not used to conduct business, for a time period that does not
3067 exceed the longer of:
3068 (I) 30 days in any calendar year; or
3069 (II) the time period necessary to transport the vehicle to the borders of this state; or
3070 (B) if the vehicle is used to conduct business, for the time period necessary to transport
3071 the vehicle to the borders of this state;
3072 (10) (a) amounts paid for an item described in Subsection (10)(b) if:
3073 (i) the item is intended for human use; and
3074 (ii) (A) a prescription was issued for the item; or
3075 (B) the item was purchased by a hospital or other medical facility; and
3076 (b) (i) Subsection (10)(a) applies to:
3077 (A) a drug;
3078 (B) a syringe; or
3079 (C) a stoma supply; and
3080 (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3081 commission may by rule define the terms:
3082 (A) "syringe"; or
3083 (B) "stoma supply";
3084 (11) sales or use of property, materials, or services used in the construction of or
3085 incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
3086 (12) (a) sales of an item described in Subsection (12)(c) served by:
3087 (i) the following if the item described in Subsection (12)(c) is not available to the
3088 general public:
3089 (A) a church; or
3090 (B) a charitable institution;
3091 (ii) an institution of higher education if:
3092 (A) the item described in Subsection (12)(c) is not available to the general public; or
3093 (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
3094 offered by the institution of higher education; or
3095 (b) sales of an item described in Subsection (12)(c) provided for a patient by:
3096 (i) a medical facility; or
3097 (ii) a nursing facility; and
3098 (c) Subsections (12)(a) and (b) apply to:
3099 (i) food and food ingredients;
3100 (ii) prepared food; or
3101 (iii) alcoholic beverages;
3102 (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
3103 or a product transferred electronically by a person:
3104 (i) regardless of the number of transactions involving the sale of that tangible personal
3105 property or product transferred electronically by that person; and
3106 (ii) not regularly engaged in the business of selling that type of tangible personal
3107 property or product transferred electronically;
3108 (b) this Subsection (13) does not apply if:
3109 (i) the sale is one of a series of sales of a character to indicate that the person is
3110 regularly engaged in the business of selling that type of tangible personal property or product
3111 transferred electronically;
3112 (ii) the person holds that person out as regularly engaged in the business of selling that
3113 type of tangible personal property or product transferred electronically;
3114 (iii) the person sells an item of tangible personal property or product transferred
3115 electronically that the person purchased as a sale that is exempt under Subsection (25); or
3116 (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
3117 this state in which case the tax is based upon:
3118 (A) the bill of sale or other written evidence of value of the vehicle or vessel being
3119 sold; or
3120 (B) in the absence of a bill of sale or other written evidence of value, the fair market
3121 value of the vehicle or vessel being sold at the time of the sale as determined by the
3122 commission; and
3123 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3124 commission shall make rules establishing the circumstances under which:
3125 (i) a person is regularly engaged in the business of selling a type of tangible personal
3126 property or product transferred electronically;
3127 (ii) a sale of tangible personal property or a product transferred electronically is one of
3128 a series of sales of a character to indicate that a person is regularly engaged in the business of
3129 selling that type of tangible personal property or product transferred electronically; or
3130 (iii) a person holds that person out as regularly engaged in the business of selling a type
3131 of tangible personal property or product transferred electronically;
3132 (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
3133 July 1, 2006, for a purchase or lease by a manufacturing facility except for a cogeneration
3134 facility, of the following:
3135 (i) machinery and equipment that:
3136 (A) are used:
3137 (I) for a manufacturing facility except for a manufacturing facility that is a scrap
3138 recycler described in Subsection 59-12-102 (60)(b):
3139 (Aa) in the manufacturing process;
3140 (Bb) to manufacture an item sold as tangible personal property; and
3141 (Cc) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
3142 (14)(a)(i)(A)(I) in the state; or
3143 (II) for a manufacturing facility that is a scrap recycler described in Subsection
3144 59-12-102 (60)(b):
3145 (Aa) to process an item sold as tangible personal property; and
3146 (Bb) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
3147 (14)(a)(i)(A)(II) in the state; and