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S.B. 237

             1     

TAXATION OF SHORT-TERM LODGING

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: J. Stuart Adams

             5     
House Sponsor: Brad R. Wilson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill addresses the taxation of short-term lodging.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms;
             13          .    addresses the transactions related to short-term lodging that are subject to state and
             14      local sales and use taxes;
             15          .    addresses sales and use tax exemptions related to short-term lodging;
             16          .    addresses the remittance of sales and use taxes related to short-term lodging; and
             17          .    makes technical and conforming changes.
             18      Money Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          This bill provides effective dates.
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          59-12-102 (Superseded 07/01/14), as last amended by Laws of Utah 2012, Chapters
             25      255, 312, 405, and 410
             26          59-12-102 (Effective 07/01/14), as last amended by Laws of Utah 2012, Chapters 255,
             27      312, 405, 410, and 424


             28          59-12-103 (Superseded 07/01/14), as last amended by Laws of Utah 2012, Chapters
             29      207, 212, 254, and 255
             30          59-12-103 (Effective 07/01/14), as last amended by Laws of Utah 2012, Chapters 207,
             31      212, 254, 255, and 424
             32          59-12-104, as last amended by Laws of Utah 2012, Chapters 255, 399, 405, and 410
             33          59-12-104.2, as last amended by Laws of Utah 2009, Chapter 203
             34          59-12-104.6, as enacted by Laws of Utah 2011, Chapter 288
             35          59-12-107, as last amended by Laws of Utah 2012, Chapters 178, 312, and 399
             36          59-12-107.1, as last amended by Laws of Utah 2008, Chapters 382 and 384
             37          59-12-301, as last amended by Laws of Utah 2012, Chapter 369
             38          59-12-352, as last amended by Laws of Utah 2009, Chapter 92
             39          59-12-353, as last amended by Laws of Utah 2004, Chapters 156 and 255
             40          59-12-603, as last amended by Laws of Utah 2011, Chapter 309
             41     
             42      Be it enacted by the Legislature of the state of Utah:
             43          Section 1. Section 59-12-102 (Superseded 07/01/14) is amended to read:
             44           59-12-102 (Superseded 07/01/14). Definitions.
             45          As used in this chapter:
             46          (1) "800 service" means a telecommunications service that:
             47          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             48          (b) is typically marketed:
             49          (i) under the name 800 toll-free calling;
             50          (ii) under the name 855 toll-free calling;
             51          (iii) under the name 866 toll-free calling;
             52          (iv) under the name 877 toll-free calling;
             53          (v) under the name 888 toll-free calling; or
             54          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             55      Federal Communications Commission.
             56          (2) (a) "900 service" means an inbound toll telecommunications service that:
             57          (i) a subscriber purchases;
             58          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to


             59      the subscriber's:
             60          (A) prerecorded announcement; or
             61          (B) live service; and
             62          (iii) is typically marketed:
             63          (A) under the name 900 service; or
             64          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             65      Communications Commission.
             66          (b) "900 service" does not include a charge for:
             67          (i) a collection service a seller of a telecommunications service provides to a
             68      subscriber; or
             69          (ii) the following a subscriber sells to the subscriber's customer:
             70          (A) a product; or
             71          (B) a service.
             72          (3) (a) "Admission or user fees" includes season passes.
             73          (b) "Admission or user fees" does not include annual membership dues to private
             74      organizations.
             75          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             76      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             77      Agreement after November 12, 2002.
             78          (5) "Agreement combined tax rate" means the sum of the tax rates:
             79          (a) listed under Subsection (6); and
             80          (b) that are imposed within a local taxing jurisdiction.
             81          (6) "Agreement sales and use tax" means a tax imposed under:
             82          (a) Subsection 59-12-103 (2)(a)(i)(A);
             83          (b) Subsection 59-12-103 (2)(b)(i);
             84          (c) Subsection 59-12-103 (2)(c)(i);
             85          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             86          (e) Section 59-12-204 ;
             87          (f) Section 59-12-401 ;
             88          (g) Section 59-12-402 ;
             89          (h) Section 59-12-703 ;


             90          (i) Section 59-12-802 ;
             91          (j) Section 59-12-804 ;
             92          (k) Section 59-12-1102 ;
             93          (l) Section 59-12-1302 ;
             94          (m) Section 59-12-1402 ;
             95          (n) Section 59-12-1802 ;
             96          (o) Section 59-12-2003 ;
             97          (p) Section 59-12-2103 ;
             98          (q) Section 59-12-2213 ;
             99          (r) Section 59-12-2214 ;
             100          (s) Section 59-12-2215 ;
             101          (t) Section 59-12-2216 ;
             102          (u) Section 59-12-2217 ; or
             103          (v) Section 59-12-2218 .
             104          (7) "Aircraft" is as defined in Section 72-10-102 .
             105          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             106          (a) except for:
             107          (i) an airline as defined in Section 59-2-102 ; or
             108          (ii) an affiliated group, as defined in Section 59-7-101 , except that "affiliated group"
             109      includes a corporation that is qualified to do business but is not otherwise doing business in the
             110      state, of an airline; and
             111          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             112      whether the business entity performs the following in this state:
             113          (i) check, diagnose, overhaul, and repair:
             114          (A) an onboard system of a fixed wing turbine powered aircraft; and
             115          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             116          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             117      engine;
             118          (iii) perform at least the following maintenance on a fixed wing turbine powered
             119      aircraft:
             120          (A) an inspection;


             121          (B) a repair, including a structural repair or modification;
             122          (C) changing landing gear; and
             123          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             124          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             125      completely apply new paint to the fixed wing turbine powered aircraft; and
             126          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             127      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             128      authority that certifies the fixed wing turbine powered aircraft.
             129          (9) "Alcoholic beverage" means a beverage that:
             130          (a) is suitable for human consumption; and
             131          (b) contains .5% or more alcohol by volume.
             132          (10) "Alternative energy" means:
             133          (a) biomass energy;
             134          (b) geothermal energy;
             135          (c) hydroelectric energy;
             136          (d) solar energy;
             137          (e) wind energy; or
             138          (f) energy that is derived from:
             139          (i) coal-to-liquids;
             140          (ii) nuclear fuel;
             141          (iii) oil-impregnated diatomaceous earth;
             142          (iv) oil sands;
             143          (v) oil shale; or
             144          (vi) petroleum coke.
             145          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
             146      facility" means a facility that:
             147          (i) uses alternative energy to produce electricity; and
             148          (ii) has a production capacity of 2 megawatts or greater.
             149          (b) A facility is an alternative energy electricity production facility regardless of
             150      whether the facility is:
             151          (i) connected to an electric grid; or


             152          (ii) located on the premises of an electricity consumer.
             153          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
             154      provision of telecommunications service.
             155          (b) "Ancillary service" includes:
             156          (i) a conference bridging service;
             157          (ii) a detailed communications billing service;
             158          (iii) directory assistance;
             159          (iv) a vertical service; or
             160          (v) a voice mail service.
             161          (13) "Area agency on aging" is as defined in Section 62A-3-101 .
             162          (14) "Assisted amusement device" means an amusement device, skill device, or ride
             163      device that is started and stopped by an individual:
             164          (a) who is not the purchaser or renter of the right to use or operate the amusement
             165      device, skill device, or ride device; and
             166          (b) at the direction of the seller of the right to use the amusement device, skill device,
             167      or ride device.
             168          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
             169      washing of tangible personal property if the cleaning or washing labor is primarily performed
             170      by an individual:
             171          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             172      property; and
             173          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             174      property.
             175          (16) "Authorized carrier" means:
             176          (a) in the case of vehicles operated over public highways, the holder of credentials
             177      indicating that the vehicle is or will be operated pursuant to both the International Registration
             178      Plan and the International Fuel Tax Agreement;
             179          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             180      certificate or air carrier's operating certificate; or
             181          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             182      stock, the holder of a certificate issued by the United States Surface Transportation Board.


             183          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
             184      following that is used as the primary source of energy to produce fuel or electricity:
             185          (i) material from a plant or tree; or
             186          (ii) other organic matter that is available on a renewable basis, including:
             187          (A) slash and brush from forests and woodlands;
             188          (B) animal waste;
             189          (C) methane produced:
             190          (I) at landfills; or
             191          (II) as a byproduct of the treatment of wastewater residuals;
             192          (D) aquatic plants; and
             193          (E) agricultural products.
             194          (b) "Biomass energy" does not include:
             195          (i) black liquor;
             196          (ii) treated woods; or
             197          (iii) biomass from municipal solid waste other than methane produced:
             198          (A) at landfills; or
             199          (B) as a byproduct of the treatment of wastewater residuals.
             200          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             201      property, products, or services if the tangible personal property, products, or services are:
             202          (i) distinct and identifiable; and
             203          (ii) sold for one nonitemized price.
             204          (b) "Bundled transaction" does not include:
             205          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             206      the basis of the selection by the purchaser of the items of tangible personal property included in
             207      the transaction;
             208          (ii) the sale of real property;
             209          (iii) the sale of services to real property;
             210          (iv) the retail sale of tangible personal property and a service if:
             211          (A) the tangible personal property:
             212          (I) is essential to the use of the service; and
             213          (II) is provided exclusively in connection with the service; and


             214          (B) the service is the true object of the transaction;
             215          (v) the retail sale of two services if:
             216          (A) one service is provided that is essential to the use or receipt of a second service;
             217          (B) the first service is provided exclusively in connection with the second service; and
             218          (C) the second service is the true object of the transaction;
             219          (vi) a transaction that includes tangible personal property or a product subject to
             220      taxation under this chapter and tangible personal property or a product that is not subject to
             221      taxation under this chapter if the:
             222          (A) seller's purchase price of the tangible personal property or product subject to
             223      taxation under this chapter is de minimis; or
             224          (B) seller's sales price of the tangible personal property or product subject to taxation
             225      under this chapter is de minimis; and
             226          (vii) the retail sale of tangible personal property that is not subject to taxation under
             227      this chapter and tangible personal property that is subject to taxation under this chapter if:
             228          (A) that retail sale includes:
             229          (I) food and food ingredients;
             230          (II) a drug;
             231          (III) durable medical equipment;
             232          (IV) mobility enhancing equipment;
             233          (V) an over-the-counter drug;
             234          (VI) a prosthetic device; or
             235          (VII) a medical supply; and
             236          (B) subject to Subsection (18)(f):
             237          (I) the seller's purchase price of the tangible personal property subject to taxation under
             238      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             239          (II) the seller's sales price of the tangible personal property subject to taxation under
             240      this chapter is 50% or less of the seller's total sales price of that retail sale.
             241          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
             242      service that is distinct and identifiable does not include:
             243          (A) packaging that:
             244          (I) accompanies the sale of the tangible personal property, product, or service; and


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


             276      less of the seller's total purchase price of the bundled transaction; or
             277          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             278      the seller's total sales price of the bundled transaction.
             279          (ii) For purposes of Subsection (18)(b)(vi), a seller:
             280          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             281      purchase price or sales price of the tangible personal property or product subject to taxation
             282      under this chapter is de minimis; and
             283          (B) may not use a combination of the seller's purchase price and the seller's sales price
             284      to determine if the purchase price or sales price of the tangible personal property or product
             285      subject to taxation under this chapter is de minimis.
             286          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
             287      contract to determine if the sales price of tangible personal property or a product is de minimis.
             288          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
             289      the seller's purchase price and the seller's sales price to determine if tangible personal property
             290      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
             291      price of that retail sale.
             292          (19) "Certified automated system" means software certified by the governing board of
             293      the agreement that:
             294          (a) calculates the agreement sales and use tax imposed within a local taxing
             295      jurisdiction:
             296          (i) on a transaction; and
             297          (ii) in the states that are members of the agreement;
             298          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             299      member of the agreement; and
             300          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
             301          (20) "Certified service provider" means an agent certified:
             302          (a) by the governing board of the agreement; and
             303          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             304      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             305      own purchases.
             306          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel


             307      suitable for general use.
             308          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             309      commission shall make rules:
             310          (i) listing the items that constitute "clothing"; and
             311          (ii) that are consistent with the list of items that constitute "clothing" under the
             312      agreement.
             313          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             314          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             315      fuels that does not constitute industrial use under Subsection (51) or residential use under
             316      Subsection (101).
             317          (24) (a) "Common carrier" means a person engaged in or transacting the business of
             318      transporting passengers, freight, merchandise, or other property for hire within this state.
             319          (b) (i) "Common carrier" does not include a person who, at the time the person is
             320      traveling to or from that person's place of employment, transports a passenger to or from the
             321      passenger's place of employment.
             322          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
             323      Utah Administrative Rulemaking Act, the commission may make rules defining what
             324      constitutes a person's place of employment.
             325          (25) "Component part" includes:
             326          (a) poultry, dairy, and other livestock feed, and their components;
             327          (b) baling ties and twine used in the baling of hay and straw;
             328          (c) fuel used for providing temperature control of orchards and commercial
             329      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             330      off-highway type farm machinery; and
             331          (d) feed, seeds, and seedlings.
             332          (26) "Computer" means an electronic device that accepts information:
             333          (a) (i) in digital form; or
             334          (ii) in a form similar to digital form; and
             335          (b) manipulates that information for a result based on a sequence of instructions.
             336          (27) "Computer software" means a set of coded instructions designed to cause:
             337          (a) a computer to perform a task; or


             338          (b) automatic data processing equipment to perform a task.
             339          (28) "Computer software maintenance contract" means a contract that obligates a seller
             340      of computer software to provide a customer with:
             341          (a) future updates or upgrades to computer software;
             342          (b) support services with respect to computer software; or
             343          (c) a combination of Subsections (28)(a) and (b).
             344          (29) (a) "Conference bridging service" means an ancillary service that links two or
             345      more participants of an audio conference call or video conference call.
             346          (b) "Conference bridging service" may include providing a telephone number as part of
             347      the ancillary service described in Subsection (29)(a).
             348          (c) "Conference bridging service" does not include a telecommunications service used
             349      to reach the ancillary service described in Subsection (29)(a).
             350          (30) "Construction materials" means any tangible personal property that will be
             351      converted into real property.
             352          (31) "Delivered electronically" means delivered to a purchaser by means other than
             353      tangible storage media.
             354          (32) (a) "Delivery charge" means a charge:
             355          (i) by a seller of:
             356          (A) tangible personal property;
             357          (B) a product transferred electronically; or
             358          (C) services; and
             359          (ii) for preparation and delivery of the tangible personal property, product transferred
             360      electronically, or services described in Subsection (32)(a)(i) to a location designated by the
             361      purchaser.
             362          (b) "Delivery charge" includes a charge for the following:
             363          (i) transportation;
             364          (ii) shipping;
             365          (iii) postage;
             366          (iv) handling;
             367          (v) crating; or
             368          (vi) packing.


             369          (33) "Detailed telecommunications billing service" means an ancillary service of
             370      separately stating information pertaining to individual calls on a customer's billing statement.
             371          (34) "Dietary supplement" means a product, other than tobacco, that:
             372          (a) is intended to supplement the diet;
             373          (b) contains one or more of the following dietary ingredients:
             374          (i) a vitamin;
             375          (ii) a mineral;
             376          (iii) an herb or other botanical;
             377          (iv) an amino acid;
             378          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             379      dietary intake; or
             380          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             381      described in Subsections (34)(b)(i) through (v);
             382          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
             383          (A) tablet form;
             384          (B) capsule form;
             385          (C) powder form;
             386          (D) softgel form;
             387          (E) gelcap form; or
             388          (F) liquid form; or
             389          (ii) notwithstanding Subsection (34)(c)(i), if the product is not intended for ingestion in
             390      a form described in Subsections (34)(c)(i)(A) through (F), is not represented:
             391          (A) as conventional food; and
             392          (B) for use as a sole item of:
             393          (I) a meal; or
             394          (II) the diet; and
             395          (d) is required to be labeled as a dietary supplement:
             396          (i) identifiable by the "Supplemental Facts" box found on the label; and
             397          (ii) as required by 21 C.F.R. Sec. 101.36.
             398          (35) (a) "Direct mail" means printed material delivered or distributed by United States
             399      mail or other delivery service:


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


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


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


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


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


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


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


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


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


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


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


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


             772      attachment to real property is only through a line that supplies water, electricity, gas,
             773      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             774      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             775          (A) a computer;
             776          (B) a telephone;
             777          (C) a television; or
             778          (D) tangible personal property similar to Subsections (79)(c)(iii)(A) through (C) as
             779      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             780      Administrative Rulemaking Act; or
             781          (iv) an item listed in Subsection [(117)] (124)(c).
             782          (80) "Person" includes any individual, firm, partnership, joint venture, association,
             783      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             784      municipality, district, or other local governmental entity of the state, or any group or
             785      combination acting as a unit.
             786          (81) "Place of primary use":
             787          (a) for telecommunications service other than mobile telecommunications service,
             788      means the street address representative of where the customer's use of the telecommunications
             789      service primarily occurs, which shall be:
             790          (i) the residential street address of the customer; or
             791          (ii) the primary business street address of the customer; or
             792          (b) for mobile telecommunications service, is as defined in the Mobile
             793      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             794          (82) (a) "Postpaid calling service" means a telecommunications service a person
             795      obtains by making a payment on a call-by-call basis:
             796          (i) through the use of a:
             797          (A) bank card;
             798          (B) credit card;
             799          (C) debit card; or
             800          (D) travel card; or
             801          (ii) by a charge made to a telephone number that is not associated with the origination
             802      or termination of the telecommunications service.


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


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


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


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


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


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


             989      services are:
             990          (A) sold;
             991          (B) leased; or
             992          (C) rented.
             993          (b) "Purchase price" and "sales price" include:
             994          (i) the seller's cost of the tangible personal property, a product transferred
             995      electronically, or services sold;
             996          (ii) expenses of the seller, including:
             997          (A) the cost of materials used;
             998          (B) a labor cost;
             999          (C) a service cost;
             1000          (D) interest;
             1001          (E) a loss;
             1002          (F) the cost of transportation to the seller; or
             1003          (G) a tax imposed on the seller;
             1004          (iii) a charge by the seller for any service necessary to complete the sale; or
             1005          (iv) consideration a seller receives from a person other than the purchaser if:
             1006          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             1007      and
             1008          (II) the consideration described in Subsection (94)(b)(iv)(A)(I) is directly related to a
             1009      price reduction or discount on the sale;
             1010          (B) the seller has an obligation to pass the price reduction or discount through to the
             1011      purchaser;
             1012          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             1013      the seller at the time of the sale to the purchaser; and
             1014          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             1015      seller to claim a price reduction or discount; and
             1016          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             1017      coupon, or other documentation with the understanding that the person other than the seller
             1018      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             1019          (II) the purchaser identifies that purchaser to the seller as a member of a group or


             1020      organization allowed a price reduction or discount, except that a preferred customer card that is
             1021      available to any patron of a seller does not constitute membership in a group or organization
             1022      allowed a price reduction or discount; or
             1023          (III) the price reduction or discount is identified as a third party price reduction or
             1024      discount on the:
             1025          (Aa) invoice the purchaser receives; or
             1026          (Bb) certificate, coupon, or other documentation the purchaser presents.
             1027          (c) "Purchase price" and "sales price" do not include:
             1028          (i) a discount:
             1029          (A) in a form including:
             1030          (I) cash;
             1031          (II) term; or
             1032          (III) coupon;
             1033          (B) that is allowed by a seller;
             1034          (C) taken by a purchaser on a sale; and
             1035          (D) that is not reimbursed by a third party; or
             1036          (ii) the following if separately stated on an invoice, bill of sale, or similar document
             1037      provided to the purchaser:
             1038          (A) the following from credit extended on the sale of tangible personal property or
             1039      services:
             1040          (I) a carrying charge;
             1041          (II) a financing charge; or
             1042          (III) an interest charge;
             1043          (B) a delivery charge;
             1044          (C) an installation charge;
             1045          (D) a manufacturer rebate on a motor vehicle; or
             1046          (E) a tax or fee legally imposed directly on the consumer.
             1047          (95) "Purchaser" means a person to whom:
             1048          (a) a sale of tangible personal property is made;
             1049          (b) a product is transferred electronically; or
             1050          (c) a service is furnished.


             1051          (96) "Regularly rented" means:
             1052          (a) rented to a guest for value three or more times during a calendar year; or
             1053          (b) advertised or held out to the public as a place that is regularly rented to guests for
             1054      value.
             1055          (97) "Rental" is as defined in Subsection (54).
             1056          (98) (a) Except as provided in Subsection (98)(b), "repairs or renovations of tangible
             1057      personal property" means:
             1058          (i) a repair or renovation of tangible personal property that is not permanently attached
             1059      to real property; or
             1060          (ii) attaching tangible personal property or a product transferred electronically to other
             1061      tangible personal property or detaching tangible personal property or a product transferred
             1062      electronically from other tangible personal property if:
             1063          (A) the other tangible personal property to which the tangible personal property or
             1064      product transferred electronically is attached or from which the tangible personal property or
             1065      product transferred electronically is detached is not permanently attached to real property; and
             1066          (B) the attachment of tangible personal property or a product transferred electronically
             1067      to other tangible personal property or detachment of tangible personal property or a product
             1068      transferred electronically from other tangible personal property is made in conjunction with a
             1069      repair or replacement of tangible personal property or a product transferred electronically.
             1070          (b) "Repairs or renovations of tangible personal property" does not include:
             1071          (i) attaching prewritten computer software to other tangible personal property if the
             1072      other tangible personal property to which the prewritten computer software is attached is not
             1073      permanently attached to real property; or
             1074          (ii) detaching prewritten computer software from other tangible personal property if the
             1075      other tangible personal property from which the prewritten computer software is detached is
             1076      not permanently attached to real property.
             1077          (99) "Research and development" means the process of inquiry or experimentation
             1078      aimed at the discovery of facts, devices, technologies, or applications and the process of
             1079      preparing those devices, technologies, or applications for marketing.
             1080          (100) (a) "Residential telecommunications services" means a telecommunications
             1081      service or an ancillary service that is provided to an individual for personal use:


             1082          (i) at a residential address; or
             1083          (ii) at an institution, including a nursing home or a school, if the telecommunications
             1084      service or ancillary service is provided to and paid for by the individual residing at the
             1085      institution rather than the institution.
             1086          (b) For purposes of Subsection (100)(a)(i), a residential address includes an:
             1087          (i) apartment; or
             1088          (ii) other individual dwelling unit.
             1089          (101) "Residential use" means the use in or around a home, apartment building,
             1090      sleeping quarters, and similar facilities or accommodations.
             1091          (102) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             1092      than:
             1093          (a) resale;
             1094          (b) sublease; or
             1095          (c) subrent.
             1096          (103) (a) "Retailer" means any person engaged in a regularly organized business in
             1097      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             1098      who is selling to the user or consumer and not for resale.
             1099          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             1100      engaged in the business of selling to users or consumers within the state.
             1101          (104) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             1102      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             1103      Subsection 59-12-103 (1), for consideration.
             1104          (b) "Sale" includes:
             1105          (i) installment and credit sales;
             1106          (ii) any closed transaction constituting a sale;
             1107          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             1108      chapter;
             1109          (iv) any transaction if the possession of property is transferred but the seller retains the
             1110      title as security for the payment of the price; and
             1111          (v) any transaction under which right to possession, operation, or use of any article of
             1112      tangible personal property is granted under a lease or contract and the transfer of possession


             1113      would be taxable if an outright sale were made.
             1114          (105) "Sale at retail" is as defined in Subsection (102).
             1115          (106) "Sale-leaseback transaction" means a transaction by which title to tangible
             1116      personal property or a product transferred electronically that is subject to a tax under this
             1117      chapter is transferred:
             1118          (a) by a purchaser-lessee;
             1119          (b) to a lessor;
             1120          (c) for consideration; and
             1121          (d) if:
             1122          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             1123      of the tangible personal property or product transferred electronically;
             1124          (ii) the sale of the tangible personal property or product transferred electronically to the
             1125      lessor is intended as a form of financing:
             1126          (A) for the tangible personal property or product transferred electronically; and
             1127          (B) to the purchaser-lessee; and
             1128          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             1129      is required to:
             1130          (A) capitalize the tangible personal property or product transferred electronically for
             1131      financial reporting purposes; and
             1132          (B) account for the lease payments as payments made under a financing arrangement.
             1133          (107) "Sales price" is as defined in Subsection (94).
             1134          (108) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             1135      amounts charged by a school:
             1136          (i) sales that are directly related to the school's educational functions or activities
             1137      including:
             1138          (A) the sale of:
             1139          (I) textbooks;
             1140          (II) textbook fees;
             1141          (III) laboratory fees;
             1142          (IV) laboratory supplies; or
             1143          (V) safety equipment;


             1144          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             1145      that:
             1146          (I) a student is specifically required to wear as a condition of participation in a
             1147      school-related event or school-related activity; and
             1148          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             1149      place of ordinary clothing;
             1150          (C) sales of the following if the net or gross revenues generated by the sales are
             1151      deposited into a school district fund or school fund dedicated to school meals:
             1152          (I) food and food ingredients; or
             1153          (II) prepared food; or
             1154          (D) transportation charges for official school activities; or
             1155          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             1156      event or school-related activity.
             1157          (b) "Sales relating to schools" does not include:
             1158          (i) bookstore sales of items that are not educational materials or supplies;
             1159          (ii) except as provided in Subsection (108)(a)(i)(B):
             1160          (A) clothing;
             1161          (B) clothing accessories or equipment;
             1162          (C) protective equipment; or
             1163          (D) sports or recreational equipment; or
             1164          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             1165      event or school-related activity if the amounts paid or charged are passed through to a person:
             1166          (A) other than a:
             1167          (I) school;
             1168          (II) nonprofit organization authorized by a school board or a governing body of a
             1169      private school to organize and direct a competitive secondary school activity; or
             1170          (III) nonprofit association authorized by a school board or a governing body of a
             1171      private school to organize and direct a competitive secondary school activity; and
             1172          (B) that is required to collect sales and use taxes under this chapter.
             1173          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1174      commission may make rules defining the term "passed through."


             1175          (109) For purposes of this section and Section 59-12-104 , "school":
             1176          (a) means:
             1177          (i) an elementary school or a secondary school that:
             1178          (A) is a:
             1179          (I) public school; or
             1180          (II) private school; and
             1181          (B) provides instruction for one or more grades kindergarten through 12; or
             1182          (ii) a public school district; and
             1183          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             1184          (110) "Seller" means a person that makes a sale, lease, or rental of:
             1185          (a) tangible personal property;
             1186          (b) a product transferred electronically; or
             1187          (c) a service.
             1188          (111) (a) "Semiconductor fabricating, processing, research, or development materials"
             1189      means tangible personal property or a product transferred electronically if the tangible personal
             1190      property or product transferred electronically is:
             1191          (i) used primarily in the process of:
             1192          (A) (I) manufacturing a semiconductor;
             1193          (II) fabricating a semiconductor; or
             1194          (III) research or development of a:
             1195          (Aa) semiconductor; or
             1196          (Bb) semiconductor manufacturing process; or
             1197          (B) maintaining an environment suitable for a semiconductor; or
             1198          (ii) consumed primarily in the process of:
             1199          (A) (I) manufacturing a semiconductor;
             1200          (II) fabricating a semiconductor; or
             1201          (III) research or development of a:
             1202          (Aa) semiconductor; or
             1203          (Bb) semiconductor manufacturing process; or
             1204          (B) maintaining an environment suitable for a semiconductor.
             1205          (b) "Semiconductor fabricating, processing, research, or development materials"


             1206      includes:
             1207          (i) parts used in the repairs or renovations of tangible personal property or a product
             1208      transferred electronically described in Subsection (111)(a); or
             1209          (ii) a chemical, catalyst, or other material used to:
             1210          (A) produce or induce in a semiconductor a:
             1211          (I) chemical change; or
             1212          (II) physical change;
             1213          (B) remove impurities from a semiconductor; or
             1214          (C) improve the marketable condition of a semiconductor.
             1215          (112) "Senior citizen center" means a facility having the primary purpose of providing
             1216      services to the aged as defined in Section 62A-3-101 .
             1217          (113) "Short-term lodging" means tourist home, cottage, hotel, motel, or trailer court
             1218      accommodations and services that are regularly rented for less than 30 consecutive days.
             1219          (114) (a) "Short-term lodging charge" means the full retail price charged for the sale,
             1220      use, or possession of short-term lodging.
             1221          (b) "Short-term lodging charge":
             1222          (i) includes any short-term lodging intermediary charge;
             1223          (ii) includes any other tangible personal property, product, or service, except for air
             1224      transportation or a vehicle rental, that is:
             1225          (A) purchased as part of a transaction that includes the purchase of short-term lodging;
             1226      and
             1227          (B) included, but not separately stated, on the invoice, bill of sale, or similar document
             1228      provided to the purchaser of the short-term lodging; and
             1229          (iii) excludes tax.
             1230          (115) "Short-term lodging intermediary" means a person who:
             1231          (a) is not a short-term lodging operator;
             1232          (b) facilitates the sale, use, or possession of short-term lodging, including brokering,
             1233      coordinating, or in any other way arranging for the purchase, sale, use, or possession of
             1234      short-term lodging by the general public; and
             1235          (c) charges a short-term lodging charge to a purchaser.
             1236          (116) (a) "Short-term lodging intermediary charge" means an amount charged by a


             1237      short-term lodging intermediary:
             1238          (i) to the purchaser of short-term lodging for facilitating the sale, use, or possession of
             1239      the short-term lodging; and
             1240          (ii) regardless of how the amount is characterized.
             1241          (b) "Short-term lodging intermediary charge" does not include a commission paid
             1242      directly by a short-term lodging operator to a person for facilitating the sale, use, or possession
             1243      of short-term lodging.
             1244          (117) (a) "Short-term lodging operator" means a person who:
             1245          (i) owns, operates, or manages short-term lodging; and
             1246          (ii) makes short-term lodging available to purchasers for compensation.
             1247          (b) "Short-term lodging operator" does not include:
             1248          (i) a travel agent who does not own, operate, or manage short-term lodging; or
             1249          (ii) another person who:
             1250          (A) does not own, operate, or manage short-term lodging; and
             1251          (B) arranges, books, brokers, coordinates, or facilitates a transaction involving
             1252      short-term lodging between a purchaser and a person who owns, operates, or manages
             1253      short-term lodging.
             1254          (118) "Short-term lodging operator charge" means the difference between the
             1255      short-term lodging charge and the short-term lodging intermediary charge.
             1256          [(113)] (119) "Simplified electronic return" means the electronic return:
             1257          (a) described in Section 318(C) of the agreement; and
             1258          (b) approved by the governing board of the agreement.
             1259          [(114)] (120) "Solar energy" means the sun used as the sole source of energy for
             1260      producing electricity.
             1261          [(115)] (121) (a) "Sports or recreational equipment" means an item:
             1262          (i) designed for human use; and
             1263          (ii) that is:
             1264          (A) worn in conjunction with:
             1265          (I) an athletic activity; or
             1266          (II) a recreational activity; and
             1267          (B) not suitable for general use.


             1268          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1269      commission shall make rules:
             1270          (i) listing the items that constitute "sports or recreational equipment"; and
             1271          (ii) that are consistent with the list of items that constitute "sports or recreational
             1272      equipment" under the agreement.
             1273          [(116)] (122) "State" means the state of Utah, its departments, and agencies.
             1274          [(117)] (123) "Storage" means any keeping or retention of tangible personal property or
             1275      any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
             1276      except sale in the regular course of business.
             1277          [(118)] (124) (a) Except as provided in Subsection [(118)] (124)(d) or (e), "tangible
             1278      personal property" means personal property that:
             1279          (i) may be:
             1280          (A) seen;
             1281          (B) weighed;
             1282          (C) measured;
             1283          (D) felt; or
             1284          (E) touched; or
             1285          (ii) is in any manner perceptible to the senses.
             1286          (b) "Tangible personal property" includes:
             1287          (i) electricity;
             1288          (ii) water;
             1289          (iii) gas;
             1290          (iv) steam; or
             1291          (v) prewritten computer software, regardless of the manner in which the prewritten
             1292      computer software is transferred.
             1293          (c) "Tangible personal property" includes the following regardless of whether the item
             1294      is attached to real property:
             1295          (i) a dishwasher;
             1296          (ii) a dryer;
             1297          (iii) a freezer;
             1298          (iv) a microwave;


             1299          (v) a refrigerator;
             1300          (vi) a stove;
             1301          (vii) a washer; or
             1302          (viii) an item similar to Subsections [(118)] (124)(c)(i) through (vii) as determined by
             1303      the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1304      Rulemaking Act.
             1305          (d) "Tangible personal property" does not include a product that is transferred
             1306      electronically.
             1307          (e) "Tangible personal property" does not include the following if attached to real
             1308      property, regardless of whether the attachment to real property is only through a line that
             1309      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             1310      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             1311      Rulemaking Act:
             1312          (i) a hot water heater;
             1313          (ii) a water filtration system; or
             1314          (iii) a water softener system.
             1315          [(119)] (125) (a) "Telecommunications enabling or facilitating equipment, machinery,
             1316      or software" means an item listed in Subsection [(119)] (125)(b) if that item is purchased or
             1317      leased primarily to enable or facilitate one or more of the following to function:
             1318          (i) telecommunications switching or routing equipment, machinery, or software; or
             1319          (ii) telecommunications transmission equipment, machinery, or software.
             1320          (b) The following apply to Subsection [(119)] (125)(a):
             1321          (i) a pole;
             1322          (ii) software;
             1323          (iii) a supplementary power supply;
             1324          (iv) temperature or environmental equipment or machinery;
             1325          (v) test equipment;
             1326          (vi) a tower; or
             1327          (vii) equipment, machinery, or software that functions similarly to an item listed in
             1328      Subsections [(119)] (125)(b)(i) through (vi) as determined by the commission by rule made in
             1329      accordance with Subsection [(119)] (125)(c).


             1330          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1331      commission may by rule define what constitutes equipment, machinery, or software that
             1332      functions similarly to an item listed in Subsections [(119)] (125)(b)(i) through (vi).
             1333          [(120)] (126) "Telecommunications equipment, machinery, or software required for
             1334      911 service" means equipment, machinery, or software that is required to comply with 47
             1335      C.F.R. Sec. 20.18.
             1336          [(121)] (127) "Telecommunications maintenance or repair equipment, machinery, or
             1337      software" means equipment, machinery, or software purchased or leased primarily to maintain
             1338      or repair one or more of the following, regardless of whether the equipment, machinery, or
             1339      software is purchased or leased as a spare part or as an upgrade or modification to one or more
             1340      of the following:
             1341          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             1342          (b) telecommunications switching or routing equipment, machinery, or software; or
             1343          (c) telecommunications transmission equipment, machinery, or software.
             1344          [(122)] (128) (a) "Telecommunications service" means the electronic conveyance,
             1345      routing, or transmission of audio, data, video, voice, or any other information or signal to a
             1346      point, or among or between points.
             1347          (b) "Telecommunications service" includes:
             1348          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             1349      processing application is used to act:
             1350          (A) on the code, form, or protocol of the content;
             1351          (B) for the purpose of electronic conveyance, routing, or transmission; and
             1352          (C) regardless of whether the service:
             1353          (I) is referred to as voice over Internet protocol service; or
             1354          (II) is classified by the Federal Communications Commission as enhanced or value
             1355      added;
             1356          (ii) an 800 service;
             1357          (iii) a 900 service;
             1358          (iv) a fixed wireless service;
             1359          (v) a mobile wireless service;
             1360          (vi) a postpaid calling service;


             1361          (vii) a prepaid calling service;
             1362          (viii) a prepaid wireless calling service; or
             1363          (ix) a private communications service.
             1364          (c) "Telecommunications service" does not include:
             1365          (i) advertising, including directory advertising;
             1366          (ii) an ancillary service;
             1367          (iii) a billing and collection service provided to a third party;
             1368          (iv) a data processing and information service if:
             1369          (A) the data processing and information service allows data to be:
             1370          (I) (Aa) acquired;
             1371          (Bb) generated;
             1372          (Cc) processed;
             1373          (Dd) retrieved; or
             1374          (Ee) stored; and
             1375          (II) delivered by an electronic transmission to a purchaser; and
             1376          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             1377      or information;
             1378          (v) installation or maintenance of the following on a customer's premises:
             1379          (A) equipment; or
             1380          (B) wiring;
             1381          (vi) Internet access service;
             1382          (vii) a paging service;
             1383          (viii) a product transferred electronically, including:
             1384          (A) music;
             1385          (B) reading material;
             1386          (C) a ring tone;
             1387          (D) software; or
             1388          (E) video;
             1389          (ix) a radio and television audio and video programming service:
             1390          (A) regardless of the medium; and
             1391          (B) including:


             1392          (I) furnishing conveyance, routing, or transmission of a television audio and video
             1393      programming service by a programming service provider;
             1394          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             1395          (III) audio and video programming services delivered by a commercial mobile radio
             1396      service provider as defined in 47 C.F.R. Sec. 20.3;
             1397          (x) a value-added nonvoice data service; or
             1398          (xi) tangible personal property.
             1399          [(123)] (129) (a) "Telecommunications service provider" means a person that:
             1400          (i) owns, controls, operates, or manages a telecommunications service; and
             1401          (ii) engages in an activity described in Subsection [(123)] (129)(a)(i) for the shared use
             1402      with or resale to any person of the telecommunications service.
             1403          (b) A person described in Subsection [(123)] (129)(a) is a telecommunications service
             1404      provider whether or not the Public Service Commission of Utah regulates:
             1405          (i) that person; or
             1406          (ii) the telecommunications service that the person owns, controls, operates, or
             1407      manages.
             1408          [(124)] (130) (a) "Telecommunications switching or routing equipment, machinery, or
             1409      software" means an item listed in Subsection [(124)] (130)(b) if that item is purchased or
             1410      leased primarily for switching or routing:
             1411          (i) an ancillary service;
             1412          (ii) data communications;
             1413          (iii) voice communications; or
             1414          (iv) telecommunications service.
             1415          (b) The following apply to Subsection [(124)] (130)(a):
             1416          (i) a bridge;
             1417          (ii) a computer;
             1418          (iii) a cross connect;
             1419          (iv) a modem;
             1420          (v) a multiplexer;
             1421          (vi) plug in circuitry;
             1422          (vii) a router;


             1423          (viii) software;
             1424          (ix) a switch; or
             1425          (x) equipment, machinery, or software that functions similarly to an item listed in
             1426      Subsections [(124)] (130)(b)(i) through (ix) as determined by the commission by rule made in
             1427      accordance with Subsection [(124)] (130)(c).
             1428          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1429      commission may by rule define what constitutes equipment, machinery, or software that
             1430      functions similarly to an item listed in Subsections [(124)] (130)(b)(i) through (ix).
             1431          [(125)] (131) (a) "Telecommunications transmission equipment, machinery, or
             1432      software" means an item listed in Subsection [(125)] (131)(b) if that item is purchased or
             1433      leased primarily for sending, receiving, or transporting:
             1434          (i) an ancillary service;
             1435          (ii) data communications;
             1436          (iii) voice communications; or
             1437          (iv) telecommunications service.
             1438          (b) The following apply to Subsection [(125)] (131)(a):
             1439          (i) an amplifier;
             1440          (ii) a cable;
             1441          (iii) a closure;
             1442          (iv) a conduit;
             1443          (v) a controller;
             1444          (vi) a duplexer;
             1445          (vii) a filter;
             1446          (viii) an input device;
             1447          (ix) an input/output device;
             1448          (x) an insulator;
             1449          (xi) microwave machinery or equipment;
             1450          (xii) an oscillator;
             1451          (xiii) an output device;
             1452          (xiv) a pedestal;
             1453          (xv) a power converter;


             1454          (xvi) a power supply;
             1455          (xvii) a radio channel;
             1456          (xviii) a radio receiver;
             1457          (xix) a radio transmitter;
             1458          (xx) a repeater;
             1459          (xxi) software;
             1460          (xxii) a terminal;
             1461          (xxiii) a timing unit;
             1462          (xxiv) a transformer;
             1463          (xxv) a wire; or
             1464          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             1465      Subsections [(125)] (131)(b)(i) through (xxv) as determined by the commission by rule made in
             1466      accordance with Subsection [(125)] (131)(c).
             1467          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1468      commission may by rule define what constitutes equipment, machinery, or software that
             1469      functions similarly to an item listed in Subsections [(125)] (131)(b)(i) through (xxv).
             1470          [(126)] (132) (a) "Textbook for a higher education course" means a textbook or other
             1471      printed material that is required for a course:
             1472          (i) offered by an institution of higher education; and
             1473          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             1474          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             1475          (133) "Travel package" means short-term lodging sold with the following for a single
             1476      retail price:
             1477          (a) air transportation; or
             1478          (b) a vehicle rental.
             1479          [(127)] (134) "Tobacco" means:
             1480          (a) a cigarette;
             1481          (b) a cigar;
             1482          (c) chewing tobacco;
             1483          (d) pipe tobacco; or
             1484          (e) any other item that contains tobacco.


             1485          [(128)] (135) "Unassisted amusement device" means an amusement device, skill
             1486      device, or ride device that is started and stopped by the purchaser or renter of the right to use or
             1487      operate the amusement device, skill device, or ride device.
             1488          [(129)] (136) (a) "Use" means the exercise of any right or power over tangible personal
             1489      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             1490      incident to the ownership or the leasing of that tangible personal property, product transferred
             1491      electronically, or service.
             1492          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             1493      property, a product transferred electronically, or a service in the regular course of business and
             1494      held for resale.
             1495          [(130)] (137) "Value-added nonvoice data service" means a service:
             1496          (a) that otherwise meets the definition of a telecommunications service except that a
             1497      computer processing application is used to act primarily for a purpose other than conveyance,
             1498      routing, or transmission; and
             1499          (b) with respect to which a computer processing application is used to act on data or
             1500      information:
             1501          (i) code;
             1502          (ii) content;
             1503          (iii) form; or
             1504          (iv) protocol.
             1505          [(131)] (138) (a) Subject to Subsection [(131)] (138)(b), "vehicle" means the following
             1506      that are required to be titled, registered, or titled and registered:
             1507          (i) an aircraft as defined in Section 72-10-102 ;
             1508          (ii) a vehicle as defined in Section 41-1a-102 ;
             1509          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             1510          (iv) a vessel as defined in Section 41-1a-102 .
             1511          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             1512          (i) a vehicle described in Subsection (131)(a); or
             1513          (ii) (A) a locomotive;
             1514          (B) a freight car;
             1515          (C) railroad work equipment; or


             1516          (D) other railroad rolling stock.
             1517          [(132)] (139) "Vehicle dealer" means a person engaged in the business of buying,
             1518      selling, or exchanging a vehicle as defined in Subsection [(131)] (138).
             1519          [(133)] (140) (a) "Vertical service" means an ancillary service that:
             1520          (i) is offered in connection with one or more telecommunications services; and
             1521          (ii) offers an advanced calling feature that allows a customer to:
             1522          (A) identify a caller; and
             1523          (B) manage multiple calls and call connections.
             1524          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             1525      conference bridging service.
             1526          [(134)] (141) (a) "Voice mail service" means an ancillary service that enables a
             1527      customer to receive, send, or store a recorded message.
             1528          (b) "Voice mail service" does not include a vertical service that a customer is required
             1529      to have in order to utilize a voice mail service.
             1530          [(135)] (142) (a) Except as provided in Subsection [(135)] (142)(b), "waste energy
             1531      facility" means a facility that generates electricity:
             1532          (i) using as the primary source of energy waste materials that would be placed in a
             1533      landfill or refuse pit if it were not used to generate electricity, including:
             1534          (A) tires;
             1535          (B) waste coal;
             1536          (C) oil shale; or
             1537          (D) municipal solid waste; and
             1538          (ii) in amounts greater than actually required for the operation of the facility.
             1539          (b) "Waste energy facility" does not include a facility that incinerates:
             1540          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
             1541          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             1542          [(136)] (143) "Watercraft" means a vessel as defined in Section 73-18-2 .
             1543          [(137)] (144) "Wind energy" means wind used as the sole source of energy to produce
             1544      electricity.
             1545          [(138)] (145) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
             1546      geographic location by the United States Postal Service.


             1547          Section 2. Section 59-12-102 (Effective 07/01/14) is amended to read:
             1548           59-12-102 (Effective 07/01/14). Definitions.
             1549          As used in this chapter:
             1550          (1) "800 service" means a telecommunications service that:
             1551          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
             1552          (b) is typically marketed:
             1553          (i) under the name 800 toll-free calling;
             1554          (ii) under the name 855 toll-free calling;
             1555          (iii) under the name 866 toll-free calling;
             1556          (iv) under the name 877 toll-free calling;
             1557          (v) under the name 888 toll-free calling; or
             1558          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
             1559      Federal Communications Commission.
             1560          (2) (a) "900 service" means an inbound toll telecommunications service that:
             1561          (i) a subscriber purchases;
             1562          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
             1563      the subscriber's:
             1564          (A) prerecorded announcement; or
             1565          (B) live service; and
             1566          (iii) is typically marketed:
             1567          (A) under the name 900 service; or
             1568          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
             1569      Communications Commission.
             1570          (b) "900 service" does not include a charge for:
             1571          (i) a collection service a seller of a telecommunications service provides to a
             1572      subscriber; or
             1573          (ii) the following a subscriber sells to the subscriber's customer:
             1574          (A) a product; or
             1575          (B) a service.
             1576          (3) (a) "Admission or user fees" includes season passes.
             1577          (b) "Admission or user fees" does not include annual membership dues to private


             1578      organizations.
             1579          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
             1580      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
             1581      Agreement after November 12, 2002.
             1582          (5) "Agreement combined tax rate" means the sum of the tax rates:
             1583          (a) listed under Subsection (6); and
             1584          (b) that are imposed within a local taxing jurisdiction.
             1585          (6) "Agreement sales and use tax" means a tax imposed under:
             1586          (a) Subsection 59-12-103 (2)(a)(i)(A);
             1587          (b) Subsection 59-12-103 (2)(b)(i);
             1588          (c) Subsection 59-12-103 (2)(c)(i);
             1589          (d) Subsection 59-12-103 (2)(d)(i)(A)(I);
             1590          (e) Section 59-12-204 ;
             1591          (f) Section 59-12-401 ;
             1592          (g) Section 59-12-402 ;
             1593          (h) Section 59-12-703 ;
             1594          (i) Section 59-12-802 ;
             1595          (j) Section 59-12-804 ;
             1596          (k) Section 59-12-1102 ;
             1597          (l) Section 59-12-1302 ;
             1598          (m) Section 59-12-1402 ;
             1599          (n) Section 59-12-1802 ;
             1600          (o) Section 59-12-2003 ;
             1601          (p) Section 59-12-2103 ;
             1602          (q) Section 59-12-2213 ;
             1603          (r) Section 59-12-2214 ;
             1604          (s) Section 59-12-2215 ;
             1605          (t) Section 59-12-2216 ;
             1606          (u) Section 59-12-2217 ; or
             1607          (v) Section 59-12-2218 .
             1608          (7) "Aircraft" is as defined in Section 72-10-102 .


             1609          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
             1610          (a) except for:
             1611          (i) an airline as defined in Section 59-2-102 ; or
             1612          (ii) an affiliated group, as defined in Section 59-7-101 , except that "affiliated group"
             1613      includes a corporation that is qualified to do business but is not otherwise doing business in the
             1614      state, of an airline; and
             1615          (b) that has the workers, expertise, and facilities to perform the following, regardless of
             1616      whether the business entity performs the following in this state:
             1617          (i) check, diagnose, overhaul, and repair:
             1618          (A) an onboard system of a fixed wing turbine powered aircraft; and
             1619          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
             1620          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
             1621      engine;
             1622          (iii) perform at least the following maintenance on a fixed wing turbine powered
             1623      aircraft:
             1624          (A) an inspection;
             1625          (B) a repair, including a structural repair or modification;
             1626          (C) changing landing gear; and
             1627          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
             1628          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
             1629      completely apply new paint to the fixed wing turbine powered aircraft; and
             1630          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
             1631      results in a change in the fixed wing turbine powered aircraft's certification requirements by the
             1632      authority that certifies the fixed wing turbine powered aircraft.
             1633          (9) "Alcoholic beverage" means a beverage that:
             1634          (a) is suitable for human consumption; and
             1635          (b) contains .5% or more alcohol by volume.
             1636          (10) "Alternative energy" means:
             1637          (a) biomass energy;
             1638          (b) geothermal energy;
             1639          (c) hydroelectric energy;


             1640          (d) solar energy;
             1641          (e) wind energy; or
             1642          (f) energy that is derived from:
             1643          (i) coal-to-liquids;
             1644          (ii) nuclear fuel;
             1645          (iii) oil-impregnated diatomaceous earth;
             1646          (iv) oil sands;
             1647          (v) oil shale; or
             1648          (vi) petroleum coke.
             1649          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
             1650      facility" means a facility that:
             1651          (i) uses alternative energy to produce electricity; and
             1652          (ii) has a production capacity of 2 megawatts or greater.
             1653          (b) A facility is an alternative energy electricity production facility regardless of
             1654      whether the facility is:
             1655          (i) connected to an electric grid; or
             1656          (ii) located on the premises of an electricity consumer.
             1657          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
             1658      provision of telecommunications service.
             1659          (b) "Ancillary service" includes:
             1660          (i) a conference bridging service;
             1661          (ii) a detailed communications billing service;
             1662          (iii) directory assistance;
             1663          (iv) a vertical service; or
             1664          (v) a voice mail service.
             1665          (13) "Area agency on aging" is as defined in Section 62A-3-101 .
             1666          (14) "Assisted amusement device" means an amusement device, skill device, or ride
             1667      device that is started and stopped by an individual:
             1668          (a) who is not the purchaser or renter of the right to use or operate the amusement
             1669      device, skill device, or ride device; and
             1670          (b) at the direction of the seller of the right to use the amusement device, skill device,


             1671      or ride device.
             1672          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
             1673      washing of tangible personal property if the cleaning or washing labor is primarily performed
             1674      by an individual:
             1675          (a) who is not the purchaser of the cleaning or washing of the tangible personal
             1676      property; and
             1677          (b) at the direction of the seller of the cleaning or washing of the tangible personal
             1678      property.
             1679          (16) "Authorized carrier" means:
             1680          (a) in the case of vehicles operated over public highways, the holder of credentials
             1681      indicating that the vehicle is or will be operated pursuant to both the International Registration
             1682      Plan and the International Fuel Tax Agreement;
             1683          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
             1684      certificate or air carrier's operating certificate; or
             1685          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
             1686      stock, the holder of a certificate issued by the United States Surface Transportation Board.
             1687          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
             1688      following that is used as the primary source of energy to produce fuel or electricity:
             1689          (i) material from a plant or tree; or
             1690          (ii) other organic matter that is available on a renewable basis, including:
             1691          (A) slash and brush from forests and woodlands;
             1692          (B) animal waste;
             1693          (C) methane produced:
             1694          (I) at landfills; or
             1695          (II) as a byproduct of the treatment of wastewater residuals;
             1696          (D) aquatic plants; and
             1697          (E) agricultural products.
             1698          (b) "Biomass energy" does not include:
             1699          (i) black liquor;
             1700          (ii) treated woods; or
             1701          (iii) biomass from municipal solid waste other than methane produced:


             1702          (A) at landfills; or
             1703          (B) as a byproduct of the treatment of wastewater residuals.
             1704          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
             1705      property, products, or services if the tangible personal property, products, or services are:
             1706          (i) distinct and identifiable; and
             1707          (ii) sold for one nonitemized price.
             1708          (b) "Bundled transaction" does not include:
             1709          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
             1710      the basis of the selection by the purchaser of the items of tangible personal property included in
             1711      the transaction;
             1712          (ii) the sale of real property;
             1713          (iii) the sale of services to real property;
             1714          (iv) the retail sale of tangible personal property and a service if:
             1715          (A) the tangible personal property:
             1716          (I) is essential to the use of the service; and
             1717          (II) is provided exclusively in connection with the service; and
             1718          (B) the service is the true object of the transaction;
             1719          (v) the retail sale of two services if:
             1720          (A) one service is provided that is essential to the use or receipt of a second service;
             1721          (B) the first service is provided exclusively in connection with the second service; and
             1722          (C) the second service is the true object of the transaction;
             1723          (vi) a transaction that includes tangible personal property or a product subject to
             1724      taxation under this chapter and tangible personal property or a product that is not subject to
             1725      taxation under this chapter if the:
             1726          (A) seller's purchase price of the tangible personal property or product subject to
             1727      taxation under this chapter is de minimis; or
             1728          (B) seller's sales price of the tangible personal property or product subject to taxation
             1729      under this chapter is de minimis; and
             1730          (vii) the retail sale of tangible personal property that is not subject to taxation under
             1731      this chapter and tangible personal property that is subject to taxation under this chapter if:
             1732          (A) that retail sale includes:


             1733          (I) food and food ingredients;
             1734          (II) a drug;
             1735          (III) durable medical equipment;
             1736          (IV) mobility enhancing equipment;
             1737          (V) an over-the-counter drug;
             1738          (VI) a prosthetic device; or
             1739          (VII) a medical supply; and
             1740          (B) subject to Subsection (18)(f):
             1741          (I) the seller's purchase price of the tangible personal property subject to taxation under
             1742      this chapter is 50% or less of the seller's total purchase price of that retail sale; or
             1743          (II) the seller's sales price of the tangible personal property subject to taxation under
             1744      this chapter is 50% or less of the seller's total sales price of that retail sale.
             1745          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
             1746      service that is distinct and identifiable does not include:
             1747          (A) packaging that:
             1748          (I) accompanies the sale of the tangible personal property, product, or service; and
             1749          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
             1750      service;
             1751          (B) tangible personal property, a product, or a service provided free of charge with the
             1752      purchase of another item of tangible personal property, a product, or a service; or
             1753          (C) an item of tangible personal property, a product, or a service included in the
             1754      definition of "purchase price."
             1755          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
             1756      product, or a service is provided free of charge with the purchase of another item of tangible
             1757      personal property, a product, or a service if the sales price of the purchased item of tangible
             1758      personal property, product, or service does not vary depending on the inclusion of the tangible
             1759      personal property, product, or service provided free of charge.
             1760          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
             1761      does not include a price that is separately identified by tangible personal property, product, or
             1762      service on the following, regardless of whether the following is in paper format or electronic
             1763      format:


             1764          (A) a binding sales document; or
             1765          (B) another supporting sales-related document that is available to a purchaser.
             1766          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
             1767      supporting sales-related document that is available to a purchaser includes:
             1768          (A) a bill of sale;
             1769          (B) a contract;
             1770          (C) an invoice;
             1771          (D) a lease agreement;
             1772          (E) a periodic notice of rates and services;
             1773          (F) a price list;
             1774          (G) a rate card;
             1775          (H) a receipt; or
             1776          (I) a service agreement.
             1777          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
             1778      property or a product subject to taxation under this chapter is de minimis if:
             1779          (A) the seller's purchase price of the tangible personal property or product is 10% or
             1780      less of the seller's total purchase price of the bundled transaction; or
             1781          (B) the seller's sales price of the tangible personal property or product is 10% or less of
             1782      the seller's total sales price of the bundled transaction.
             1783          (ii) For purposes of Subsection (18)(b)(vi), a seller:
             1784          (A) shall use the seller's purchase price or the seller's sales price to determine if the
             1785      purchase price or sales price of the tangible personal property or product subject to taxation
             1786      under this chapter is de minimis; and
             1787          (B) may not use a combination of the seller's purchase price and the seller's sales price
             1788      to determine if the purchase price or sales price of the tangible personal property or product
             1789      subject to taxation under this chapter is de minimis.
             1790          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
             1791      contract to determine if the sales price of tangible personal property or a product is de minimis.
             1792          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
             1793      the seller's purchase price and the seller's sales price to determine if tangible personal property
             1794      subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales


             1795      price of that retail sale.
             1796          (19) "Certified automated system" means software certified by the governing board of
             1797      the agreement that:
             1798          (a) calculates the agreement sales and use tax imposed within a local taxing
             1799      jurisdiction:
             1800          (i) on a transaction; and
             1801          (ii) in the states that are members of the agreement;
             1802          (b) determines the amount of agreement sales and use tax to remit to a state that is a
             1803      member of the agreement; and
             1804          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
             1805          (20) "Certified service provider" means an agent certified:
             1806          (a) by the governing board of the agreement; and
             1807          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
             1808      use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
             1809      own purchases.
             1810          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
             1811      suitable for general use.
             1812          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1813      commission shall make rules:
             1814          (i) listing the items that constitute "clothing"; and
             1815          (ii) that are consistent with the list of items that constitute "clothing" under the
             1816      agreement.
             1817          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
             1818          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
             1819      fuels that does not constitute industrial use under Subsection (51) or residential use under
             1820      Subsection (101).
             1821          (24) (a) "Common carrier" means a person engaged in or transacting the business of
             1822      transporting passengers, freight, merchandise, or other property for hire within this state.
             1823          (b) (i) "Common carrier" does not include a person who, at the time the person is
             1824      traveling to or from that person's place of employment, transports a passenger to or from the
             1825      passenger's place of employment.


             1826          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
             1827      Utah Administrative Rulemaking Act, the commission may make rules defining what
             1828      constitutes a person's place of employment.
             1829          (25) "Component part" includes:
             1830          (a) poultry, dairy, and other livestock feed, and their components;
             1831          (b) baling ties and twine used in the baling of hay and straw;
             1832          (c) fuel used for providing temperature control of orchards and commercial
             1833      greenhouses doing a majority of their business in wholesale sales, and for providing power for
             1834      off-highway type farm machinery; and
             1835          (d) feed, seeds, and seedlings.
             1836          (26) "Computer" means an electronic device that accepts information:
             1837          (a) (i) in digital form; or
             1838          (ii) in a form similar to digital form; and
             1839          (b) manipulates that information for a result based on a sequence of instructions.
             1840          (27) "Computer software" means a set of coded instructions designed to cause:
             1841          (a) a computer to perform a task; or
             1842          (b) automatic data processing equipment to perform a task.
             1843          (28) "Computer software maintenance contract" means a contract that obligates a seller
             1844      of computer software to provide a customer with:
             1845          (a) future updates or upgrades to computer software;
             1846          (b) support services with respect to computer software; or
             1847          (c) a combination of Subsections (28)(a) and (b).
             1848          (29) (a) "Conference bridging service" means an ancillary service that links two or
             1849      more participants of an audio conference call or video conference call.
             1850          (b) "Conference bridging service" may include providing a telephone number as part of
             1851      the ancillary service described in Subsection (29)(a).
             1852          (c) "Conference bridging service" does not include a telecommunications service used
             1853      to reach the ancillary service described in Subsection (29)(a).
             1854          (30) "Construction materials" means any tangible personal property that will be
             1855      converted into real property.
             1856          (31) "Delivered electronically" means delivered to a purchaser by means other than


             1857      tangible storage media.
             1858          (32) (a) "Delivery charge" means a charge:
             1859          (i) by a seller of:
             1860          (A) tangible personal property;
             1861          (B) a product transferred electronically; or
             1862          (C) services; and
             1863          (ii) for preparation and delivery of the tangible personal property, product transferred
             1864      electronically, or services described in Subsection (32)(a)(i) to a location designated by the
             1865      purchaser.
             1866          (b) "Delivery charge" includes a charge for the following:
             1867          (i) transportation;
             1868          (ii) shipping;
             1869          (iii) postage;
             1870          (iv) handling;
             1871          (v) crating; or
             1872          (vi) packing.
             1873          (33) "Detailed telecommunications billing service" means an ancillary service of
             1874      separately stating information pertaining to individual calls on a customer's billing statement.
             1875          (34) "Dietary supplement" means a product, other than tobacco, that:
             1876          (a) is intended to supplement the diet;
             1877          (b) contains one or more of the following dietary ingredients:
             1878          (i) a vitamin;
             1879          (ii) a mineral;
             1880          (iii) an herb or other botanical;
             1881          (iv) an amino acid;
             1882          (v) a dietary substance for use by humans to supplement the diet by increasing the total
             1883      dietary intake; or
             1884          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
             1885      described in Subsections (34)(b)(i) through (v);
             1886          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
             1887          (A) tablet form;


             1888          (B) capsule form;
             1889          (C) powder form;
             1890          (D) softgel form;
             1891          (E) gelcap form; or
             1892          (F) liquid form; or
             1893          (ii) notwithstanding Subsection (34)(c)(i), if the product is not intended for ingestion in
             1894      a form described in Subsections (34)(c)(i)(A) through (F), is not represented:
             1895          (A) as conventional food; and
             1896          (B) for use as a sole item of:
             1897          (I) a meal; or
             1898          (II) the diet; and
             1899          (d) is required to be labeled as a dietary supplement:
             1900          (i) identifiable by the "Supplemental Facts" box found on the label; and
             1901          (ii) as required by 21 C.F.R. Sec. 101.36.
             1902          (35) (a) "Direct mail" means printed material delivered or distributed by United States
             1903      mail or other delivery service:
             1904          (i) to:
             1905          (A) a mass audience; or
             1906          (B) addressees on a mailing list provided:
             1907          (I) by a purchaser of the mailing list; or
             1908          (II) at the discretion of the purchaser of the mailing list; and
             1909          (ii) if the cost of the printed material is not billed directly to the recipients.
             1910          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
             1911      purchaser to a seller of direct mail for inclusion in a package containing the printed material.
             1912          (c) "Direct mail" does not include multiple items of printed material delivered to a
             1913      single address.
             1914          (36) "Directory assistance" means an ancillary service of providing:
             1915          (a) address information; or
             1916          (b) telephone number information.
             1917          (37) (a) "Disposable home medical equipment or supplies" means medical equipment
             1918      or supplies that:


             1919          (i) cannot withstand repeated use; and
             1920          (ii) are purchased by, for, or on behalf of a person other than:
             1921          (A) a health care facility as defined in Section 26-21-2 ;
             1922          (B) a health care provider as defined in Section 78B-3-403 ;
             1923          (C) an office of a health care provider described in Subsection (37)(a)(ii)(B); or
             1924          (D) a person similar to a person described in Subsections (37)(a)(ii)(A) through (C).
             1925          (b) "Disposable home medical equipment or supplies" does not include:
             1926          (i) a drug;
             1927          (ii) durable medical equipment;
             1928          (iii) a hearing aid;
             1929          (iv) a hearing aid accessory;
             1930          (v) mobility enhancing equipment; or
             1931          (vi) tangible personal property used to correct impaired vision, including:
             1932          (A) eyeglasses; or
             1933          (B) contact lenses.
             1934          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1935      commission may by rule define what constitutes medical equipment or supplies.
             1936          (38) (a) "Drug" means a compound, substance, or preparation, or a component of a
             1937      compound, substance, or preparation that is:
             1938          (i) recognized in:
             1939          (A) the official United States Pharmacopoeia;
             1940          (B) the official Homeopathic Pharmacopoeia of the United States;
             1941          (C) the official National Formulary; or
             1942          (D) a supplement to a publication listed in Subsections (38)(a)(i)(A) through (C);
             1943          (ii) intended for use in the:
             1944          (A) diagnosis of disease;
             1945          (B) cure of disease;
             1946          (C) mitigation of disease;
             1947          (D) treatment of disease; or
             1948          (E) prevention of disease; or
             1949          (iii) intended to affect:


             1950          (A) the structure of the body; or
             1951          (B) any function of the body.
             1952          (b) "Drug" does not include:
             1953          (i) food and food ingredients;
             1954          (ii) a dietary supplement;
             1955          (iii) an alcoholic beverage; or
             1956          (iv) a prosthetic device.
             1957          (39) (a) Except as provided in Subsection (39)(c), "durable medical equipment" means
             1958      equipment that:
             1959          (i) can withstand repeated use;
             1960          (ii) is primarily and customarily used to serve a medical purpose;
             1961          (iii) generally is not useful to a person in the absence of illness or injury; and
             1962          (iv) is not worn in or on the body.
             1963          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
             1964      equipment described in Subsection (39)(a).
             1965          (c) Notwithstanding Subsection (39)(a), "durable medical equipment" does not include
             1966      mobility enhancing equipment.
             1967          (40) "Electronic" means:
             1968          (a) relating to technology; and
             1969          (b) having:
             1970          (i) electrical capabilities;
             1971          (ii) digital capabilities;
             1972          (iii) magnetic capabilities;
             1973          (iv) wireless capabilities;
             1974          (v) optical capabilities;
             1975          (vi) electromagnetic capabilities; or
             1976          (vii) capabilities similar to Subsections (40)(b)(i) through (vi).
             1977          (41) "Employee" is as defined in Section 59-10-401 .
             1978          (42) "Fixed guideway" means a public transit facility that uses and occupies:
             1979          (a) rail for the use of public transit; or
             1980          (b) a separate right-of-way for the use of public transit.


             1981          (43) "Fixed wing turbine powered aircraft" means an aircraft that:
             1982          (a) is powered by turbine engines;
             1983          (b) operates on jet fuel; and
             1984          (c) has wings that are permanently attached to the fuselage of the aircraft.
             1985          (44) "Fixed wireless service" means a telecommunications service that provides radio
             1986      communication between fixed points.
             1987          (45) (a) "Food and food ingredients" means substances:
             1988          (i) regardless of whether the substances are in:
             1989          (A) liquid form;
             1990          (B) concentrated form;
             1991          (C) solid form;
             1992          (D) frozen form;
             1993          (E) dried form; or
             1994          (F) dehydrated form; and
             1995          (ii) that are:
             1996          (A) sold for:
             1997          (I) ingestion by humans; or
             1998          (II) chewing by humans; and
             1999          (B) consumed for the substance's:
             2000          (I) taste; or
             2001          (II) nutritional value.
             2002          (b) "Food and food ingredients" includes an item described in Subsection (86)(b)(iii).
             2003          (c) "Food and food ingredients" does not include:
             2004          (i) an alcoholic beverage;
             2005          (ii) tobacco; or
             2006          (iii) prepared food.
             2007          (46) (a) "Fundraising sales" means sales:
             2008          (i) (A) made by a school; or
             2009          (B) made by a school student;
             2010          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             2011      materials, or provide transportation; and


             2012          (iii) that are part of an officially sanctioned school activity.
             2013          (b) For purposes of Subsection (46)(a)(iii), "officially sanctioned school activity"
             2014      means a school activity:
             2015          (i) that is conducted in accordance with a formal policy adopted by the school or school
             2016      district governing the authorization and supervision of fundraising activities;
             2017          (ii) that does not directly or indirectly compensate an individual teacher or other
             2018      educational personnel by direct payment, commissions, or payment in kind; and
             2019          (iii) the net or gross revenues from which are deposited in a dedicated account
             2020      controlled by the school or school district.
             2021          (47) "Geothermal energy" means energy contained in heat that continuously flows
             2022      outward from the earth that is used as the sole source of energy to produce electricity.
             2023          (48) "Governing board of the agreement" means the governing board of the agreement
             2024      that is:
             2025          (a) authorized to administer the agreement; and
             2026          (b) established in accordance with the agreement.
             2027          (49) (a) For purposes of Subsection 59-12-104 (41), "governmental entity" means:
             2028          (i) the executive branch of the state, including all departments, institutions, boards,
             2029      divisions, bureaus, offices, commissions, and committees;
             2030          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
             2031      Office of the Court Administrator, and similar administrative units in the judicial branch;
             2032          (iii) the legislative branch of the state, including the House of Representatives, the
             2033      Senate, the Legislative Printing Office, the Office of Legislative Research and General
             2034      Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
             2035      Analyst;
             2036          (iv) the National Guard;
             2037          (v) an independent entity as defined in Section 63E-1-102 ; or
             2038          (vi) a political subdivision as defined in Section 17B-1-102 .
             2039          (b) "Governmental entity" does not include the state systems of public and higher
             2040      education, including:
             2041          (i) a college campus of the Utah College of Applied Technology;
             2042          (ii) a school;


             2043          (iii) the State Board of Education;
             2044          (iv) the State Board of Regents; or
             2045          (v) an institution of higher education.
             2046          (50) "Hydroelectric energy" means water used as the sole source of energy to produce
             2047      electricity.
             2048          (51) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
             2049      other fuels:
             2050          (a) in mining or extraction of minerals;
             2051          (b) in agricultural operations to produce an agricultural product up to the time of
             2052      harvest or placing the agricultural product into a storage facility, including:
             2053          (i) commercial greenhouses;
             2054          (ii) irrigation pumps;
             2055          (iii) farm machinery;
             2056          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             2057      registered under Title 41, Chapter 1a, Part 2, Registration; and
             2058          (v) other farming activities;
             2059          (c) in manufacturing tangible personal property at an establishment described in SIC
             2060      Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
             2061      Executive Office of the President, Office of Management and Budget;
             2062          (d) by a scrap recycler if:
             2063          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             2064      one or more of the following items into prepared grades of processed materials for use in new
             2065      products:
             2066          (A) iron;
             2067          (B) steel;
             2068          (C) nonferrous metal;
             2069          (D) paper;
             2070          (E) glass;
             2071          (F) plastic;
             2072          (G) textile; or
             2073          (H) rubber; and


             2074          (ii) the new products under Subsection (51)(d)(i) would otherwise be made with
             2075      nonrecycled materials; or
             2076          (e) in producing a form of energy or steam described in Subsection 54-2-1 (2)(a) by a
             2077      cogeneration facility as defined in Section 54-2-1 .
             2078          (52) (a) Except as provided in Subsection (52)(b), "installation charge" means a charge
             2079      for installing:
             2080          (i) tangible personal property; or
             2081          (ii) a product transferred electronically.
             2082          (b) "Installation charge" does not include a charge for:
             2083          (i) repairs or renovations of:
             2084          (A) tangible personal property; or
             2085          (B) a product transferred electronically; or
             2086          (ii) attaching tangible personal property or a product transferred electronically:
             2087          (A) to other tangible personal property; and
             2088          (B) as part of a manufacturing or fabrication process.
             2089          (53) "Institution of higher education" means an institution of higher education listed in
             2090      Section 53B-2-101 .
             2091          (54) (a) "Lease" or "rental" means a transfer of possession or control of tangible
             2092      personal property or a product transferred electronically for:
             2093          (i) (A) a fixed term; or
             2094          (B) an indeterminate term; and
             2095          (ii) consideration.
             2096          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
             2097      amount of consideration may be increased or decreased by reference to the amount realized
             2098      upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
             2099      Code.
             2100          (c) "Lease" or "rental" does not include:
             2101          (i) a transfer of possession or control of property under a security agreement or
             2102      deferred payment plan that requires the transfer of title upon completion of the required
             2103      payments;
             2104          (ii) a transfer of possession or control of property under an agreement that requires the


             2105      transfer of title:
             2106          (A) upon completion of required payments; and
             2107          (B) if the payment of an option price does not exceed the greater of:
             2108          (I) $100; or
             2109          (II) 1% of the total required payments; or
             2110          (iii) providing tangible personal property along with an operator for a fixed period of
             2111      time or an indeterminate period of time if the operator is necessary for equipment to perform as
             2112      designed.
             2113          (d) For purposes of Subsection (54)(c)(iii), an operator is necessary for equipment to
             2114      perform as designed if the operator's duties exceed the:
             2115          (i) set-up of tangible personal property;
             2116          (ii) maintenance of tangible personal property; or
             2117          (iii) inspection of tangible personal property.
             2118          (55) "Life science establishment" means an establishment in this state that is classified
             2119      under the following NAICS codes of the 2007 North American Industry Classification System
             2120      of the federal Executive Office of the President, Office of Management and Budget:
             2121          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
             2122          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
             2123      Manufacturing; or
             2124          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
             2125          (56) "Life science research and development facility" means a facility owned, leased,
             2126      or rented by a life science establishment if research and development is performed in 51% or
             2127      more of the total area of the facility.
             2128          (57) "Load and leave" means delivery to a purchaser by use of a tangible storage media
             2129      if the tangible storage media is not physically transferred to the purchaser.
             2130          (58) "Local taxing jurisdiction" means a:
             2131          (a) county that is authorized to impose an agreement sales and use tax;
             2132          (b) city that is authorized to impose an agreement sales and use tax; or
             2133          (c) town that is authorized to impose an agreement sales and use tax.
             2134          (59) "Manufactured home" is as defined in Section 15A-1-302 .
             2135          (60) For purposes of Section 59-12-104 , "manufacturing facility" means:


             2136          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
             2137      Industrial Classification Manual of the federal Executive Office of the President, Office of
             2138      Management and Budget;
             2139          (b) a scrap recycler if:
             2140          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
             2141      one or more of the following items into prepared grades of processed materials for use in new
             2142      products:
             2143          (A) iron;
             2144          (B) steel;
             2145          (C) nonferrous metal;
             2146          (D) paper;
             2147          (E) glass;
             2148          (F) plastic;
             2149          (G) textile; or
             2150          (H) rubber; and
             2151          (ii) the new products under Subsection (60)(b)(i) would otherwise be made with
             2152      nonrecycled materials; or
             2153          (c) a cogeneration facility as defined in Section 54-2-1 .
             2154          (61) "Member of the immediate family of the producer" means a person who is related
             2155      to a producer described in Subsection 59-12-104 (20)(a) as a:
             2156          (a) child or stepchild, regardless of whether the child or stepchild is:
             2157          (i) an adopted child or adopted stepchild; or
             2158          (ii) a foster child or foster stepchild;
             2159          (b) grandchild or stepgrandchild;
             2160          (c) grandparent or stepgrandparent;
             2161          (d) nephew or stepnephew;
             2162          (e) niece or stepniece;
             2163          (f) parent or stepparent;
             2164          (g) sibling or stepsibling;
             2165          (h) spouse;
             2166          (i) person who is the spouse of a person described in Subsections (61)(a) through (g);


             2167      or
             2168          (j) person similar to a person described in Subsections (61)(a) through (i) as
             2169      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             2170      Administrative Rulemaking Act.
             2171          (62) "Mobile home" is as defined in Section 15A-1-302 .
             2172          (63) "Mobile telecommunications service" is as defined in the Mobile
             2173      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             2174          (64) (a) "Mobile wireless service" means a telecommunications service, regardless of
             2175      the technology used, if:
             2176          (i) the origination point of the conveyance, routing, or transmission is not fixed;
             2177          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
             2178          (iii) the origination point described in Subsection (64)(a)(i) and the termination point
             2179      described in Subsection (64)(a)(ii) are not fixed.
             2180          (b) "Mobile wireless service" includes a telecommunications service that is provided
             2181      by a commercial mobile radio service provider.
             2182          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2183      commission may by rule define "commercial mobile radio service provider."
             2184          (65) (a) Except as provided in Subsection (65)(c), "mobility enhancing equipment"
             2185      means equipment that is:
             2186          (i) primarily and customarily used to provide or increase the ability to move from one
             2187      place to another;
             2188          (ii) appropriate for use in a:
             2189          (A) home; or
             2190          (B) motor vehicle; and
             2191          (iii) not generally used by persons with normal mobility.
             2192          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
             2193      the equipment described in Subsection (65)(a).
             2194          (c) Notwithstanding Subsection (65)(a), "mobility enhancing equipment" does not
             2195      include:
             2196          (i) a motor vehicle;
             2197          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor


             2198      vehicle manufacturer;
             2199          (iii) durable medical equipment; or
             2200          (iv) a prosthetic device.
             2201          (66) "Model 1 seller" means a seller registered under the agreement that has selected a
             2202      certified service provider as the seller's agent to perform all of the seller's sales and use tax
             2203      functions for agreement sales and use taxes other than the seller's obligation under Section
             2204      59-12-124 to remit a tax on the seller's own purchases.
             2205          (67) "Model 2 seller" means a seller registered under the agreement that:
             2206          (a) except as provided in Subsection (67)(b), has selected a certified automated system
             2207      to perform the seller's sales tax functions for agreement sales and use taxes; and
             2208          (b) notwithstanding Subsection (67)(a), retains responsibility for remitting all of the
             2209      sales tax:
             2210          (i) collected by the seller; and
             2211          (ii) to the appropriate local taxing jurisdiction.
             2212          (68) (a) Subject to Subsection (68)(b), "model 3 seller" means a seller registered under
             2213      the agreement that has:
             2214          (i) sales in at least five states that are members of the agreement;
             2215          (ii) total annual sales revenues of at least $500,000,000;
             2216          (iii) a proprietary system that calculates the amount of tax:
             2217          (A) for an agreement sales and use tax; and
             2218          (B) due to each local taxing jurisdiction; and
             2219          (iv) entered into a performance agreement with the governing board of the agreement.
             2220          (b) For purposes of Subsection (68)(a), "model 3 seller" includes an affiliated group of
             2221      sellers using the same proprietary system.
             2222          (69) "Model 4 seller" means a seller that is registered under the agreement and is not a
             2223      model 1 seller, model 2 seller, or model 3 seller.
             2224          (70) "Modular home" means a modular unit as defined in Section 15A-1-302 .
             2225          (71) "Motor vehicle" is as defined in Section 41-1a-102 .
             2226          (72) "Oil sands" means impregnated bituminous sands that:
             2227          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
             2228      other hydrocarbons, or otherwise treated;


             2229          (b) yield mixtures of liquid hydrocarbon; and
             2230          (c) require further processing other than mechanical blending before becoming finished
             2231      petroleum products.
             2232          (73) "Oil shale" means a group of fine black to dark brown shales containing kerogen
             2233      material that yields petroleum upon heating and distillation.
             2234          (74) "Optional computer software maintenance contract" means a computer software
             2235      maintenance contract that a customer is not obligated to purchase as a condition to the retail
             2236      sale of computer software.
             2237          (75) (a) "Other fuels" means products that burn independently to produce heat or
             2238      energy.
             2239          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
             2240      personal property.
             2241          (76) (a) "Paging service" means a telecommunications service that provides
             2242      transmission of a coded radio signal for the purpose of activating a specific pager.
             2243          (b) For purposes of Subsection (76)(a), the transmission of a coded radio signal
             2244      includes a transmission by message or sound.
             2245          (77) "Pawnbroker" is as defined in Section 13-32a-102 .
             2246          (78) "Pawn transaction" is as defined in Section 13-32a-102 .
             2247          (79) (a) "Permanently attached to real property" means that for tangible personal
             2248      property attached to real property:
             2249          (i) the attachment of the tangible personal property to the real property:
             2250          (A) is essential to the use of the tangible personal property; and
             2251          (B) suggests that the tangible personal property will remain attached to the real
             2252      property in the same place over the useful life of the tangible personal property; or
             2253          (ii) if the tangible personal property is detached from the real property, the detachment
             2254      would:
             2255          (A) cause substantial damage to the tangible personal property; or
             2256          (B) require substantial alteration or repair of the real property to which the tangible
             2257      personal property is attached.
             2258          (b) "Permanently attached to real property" includes:
             2259          (i) the attachment of an accessory to the tangible personal property if the accessory is:


             2260          (A) essential to the operation of the tangible personal property; and
             2261          (B) attached only to facilitate the operation of the tangible personal property;
             2262          (ii) a temporary detachment of tangible personal property from real property for a
             2263      repair or renovation if the repair or renovation is performed where the tangible personal
             2264      property and real property are located; or
             2265          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
             2266      Subsection (79)(c)(iii) or (iv).
             2267          (c) "Permanently attached to real property" does not include:
             2268          (i) the attachment of portable or movable tangible personal property to real property if
             2269      that portable or movable tangible personal property is attached to real property only for:
             2270          (A) convenience;
             2271          (B) stability; or
             2272          (C) for an obvious temporary purpose;
             2273          (ii) the detachment of tangible personal property from real property except for the
             2274      detachment described in Subsection (79)(b)(ii);
             2275          (iii) an attachment of the following tangible personal property to real property if the
             2276      attachment to real property is only through a line that supplies water, electricity, gas,
             2277      telecommunications, cable, or supplies a similar item as determined by the commission by rule
             2278      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
             2279          (A) a computer;
             2280          (B) a telephone;
             2281          (C) a television; or
             2282          (D) tangible personal property similar to Subsections (79)(c)(iii)(A) through (C) as
             2283      determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
             2284      Administrative Rulemaking Act; or
             2285          (iv) an item listed in Subsection [(117)] (124)(c).
             2286          (80) "Person" includes any individual, firm, partnership, joint venture, association,
             2287      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             2288      municipality, district, or other local governmental entity of the state, or any group or
             2289      combination acting as a unit.
             2290          (81) "Place of primary use":


             2291          (a) for telecommunications service other than mobile telecommunications service,
             2292      means the street address representative of where the customer's use of the telecommunications
             2293      service primarily occurs, which shall be:
             2294          (i) the residential street address of the customer; or
             2295          (ii) the primary business street address of the customer; or
             2296          (b) for mobile telecommunications service, is as defined in the Mobile
             2297      Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
             2298          (82) (a) "Postpaid calling service" means a telecommunications service a person
             2299      obtains by making a payment on a call-by-call basis:
             2300          (i) through the use of a:
             2301          (A) bank card;
             2302          (B) credit card;
             2303          (C) debit card; or
             2304          (D) travel card; or
             2305          (ii) by a charge made to a telephone number that is not associated with the origination
             2306      or termination of the telecommunications service.
             2307          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
             2308      service, that would be a prepaid wireless calling service if the service were exclusively a
             2309      telecommunications service.
             2310          (83) "Postproduction" means an activity related to the finishing or duplication of a
             2311      medium described in Subsection 59-12-104 (54)(a).
             2312          (84) "Prepaid calling service" means a telecommunications service:
             2313          (a) that allows a purchaser access to telecommunications service that is exclusively
             2314      telecommunications service;
             2315          (b) that:
             2316          (i) is paid for in advance; and
             2317          (ii) enables the origination of a call using an:
             2318          (A) access number; or
             2319          (B) authorization code;
             2320          (c) that is dialed:
             2321          (i) manually; or


             2322          (ii) electronically; and
             2323          (d) sold in predetermined units or dollars that decline:
             2324          (i) by a known amount; and
             2325          (ii) with use.
             2326          (85) "Prepaid wireless calling service" means a telecommunications service:
             2327          (a) that provides the right to utilize:
             2328          (i) mobile wireless service; and
             2329          (ii) other service that is not a telecommunications service, including:
             2330          (A) the download of a product transferred electronically;
             2331          (B) a content service; or
             2332          (C) an ancillary service;
             2333          (b) that:
             2334          (i) is paid for in advance; and
             2335          (ii) enables the origination of a call using an:
             2336          (A) access number; or
             2337          (B) authorization code;
             2338          (c) that is dialed:
             2339          (i) manually; or
             2340          (ii) electronically; and
             2341          (d) sold in predetermined units or dollars that decline:
             2342          (i) by a known amount; and
             2343          (ii) with use.
             2344          (86) (a) "Prepared food" means:
             2345          (i) food:
             2346          (A) sold in a heated state; or
             2347          (B) heated by a seller;
             2348          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
             2349      item; or
             2350          (iii) except as provided in Subsection (86)(c), food sold with an eating utensil provided
             2351      by the seller, including a:
             2352          (A) plate;


             2353          (B) knife;
             2354          (C) fork;
             2355          (D) spoon;
             2356          (E) glass;
             2357          (F) cup;
             2358          (G) napkin; or
             2359          (H) straw.
             2360          (b) "Prepared food" does not include:
             2361          (i) food that a seller only:
             2362          (A) cuts;
             2363          (B) repackages; or
             2364          (C) pasteurizes; or
             2365          (ii) (A) the following:
             2366          (I) raw egg;
             2367          (II) raw fish;
             2368          (III) raw meat;
             2369          (IV) raw poultry; or
             2370          (V) a food containing an item described in Subsections (86)(b)(ii)(A)(I) through (IV);
             2371      and
             2372          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
             2373      Food and Drug Administration's Food Code that a consumer cook the items described in
             2374      Subsection (86)(b)(ii)(A) to prevent food borne illness; or
             2375          (iii) the following if sold without eating utensils provided by the seller:
             2376          (A) food and food ingredients sold by a seller if the seller's proper primary
             2377      classification under the 2002 North American Industry Classification System of the federal
             2378      Executive Office of the President, Office of Management and Budget, is manufacturing in
             2379      Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
             2380      Manufacturing;
             2381          (B) food and food ingredients sold in an unheated state:
             2382          (I) by weight or volume; and
             2383          (II) as a single item; or


             2384          (C) a bakery item, including:
             2385          (I) a bagel;
             2386          (II) a bar;
             2387          (III) a biscuit;
             2388          (IV) bread;
             2389          (V) a bun;
             2390          (VI) a cake;
             2391          (VII) a cookie;
             2392          (VIII) a croissant;
             2393          (IX) a danish;
             2394          (X) a donut;
             2395          (XI) a muffin;
             2396          (XII) a pastry;
             2397          (XIII) a pie;
             2398          (XIV) a roll;
             2399          (XV) a tart;
             2400          (XVI) a torte; or
             2401          (XVII) a tortilla.
             2402          (c) Notwithstanding Subsection (86)(a)(iii), an eating utensil provided by the seller
             2403      does not include the following used to transport the food:
             2404          (i) a container; or
             2405          (ii) packaging.
             2406          (87) "Prescription" means an order, formula, or recipe that is issued:
             2407          (a) (i) orally;
             2408          (ii) in writing;
             2409          (iii) electronically; or
             2410          (iv) by any other manner of transmission; and
             2411          (b) by a licensed practitioner authorized by the laws of a state.
             2412          (88) (a) Except as provided in Subsection (88)(b)(ii) or (iii), "prewritten computer
             2413      software" means computer software that is not designed and developed:
             2414          (i) by the author or other creator of the computer software; and


             2415          (ii) to the specifications of a specific purchaser.
             2416          (b) "Prewritten computer software" includes:
             2417          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
             2418      software is not designed and developed:
             2419          (A) by the author or other creator of the computer software; and
             2420          (B) to the specifications of a specific purchaser;
             2421          (ii) notwithstanding Subsection (88)(a), computer software designed and developed by
             2422      the author or other creator of the computer software to the specifications of a specific purchaser
             2423      if the computer software is sold to a person other than the purchaser; or
             2424          (iii) notwithstanding Subsection (88)(a) and except as provided in Subsection (88)(c),
             2425      prewritten computer software or a prewritten portion of prewritten computer software:
             2426          (A) that is modified or enhanced to any degree; and
             2427          (B) if the modification or enhancement described in Subsection (88)(b)(iii)(A) is
             2428      designed and developed to the specifications of a specific purchaser.
             2429          (c) Notwithstanding Subsection (88)(b)(iii), "prewritten computer software" does not
             2430      include a modification or enhancement described in Subsection (88)(b)(iii) if the charges for
             2431      the modification or enhancement are:
             2432          (i) reasonable; and
             2433          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), separately stated on the
             2434      invoice or other statement of price provided to the purchaser at the time of sale or later, as
             2435      demonstrated by:
             2436          (A) the books and records the seller keeps at the time of the transaction in the regular
             2437      course of business, including books and records the seller keeps at the time of the transaction in
             2438      the regular course of business for nontax purposes;
             2439          (B) a preponderance of the facts and circumstances at the time of the transaction; and
             2440          (C) the understanding of all of the parties to the transaction.
             2441          (89) (a) "Private communication service" means a telecommunications service:
             2442          (i) that entitles a customer to exclusive or priority use of one or more communications
             2443      channels between or among termination points; and
             2444          (ii) regardless of the manner in which the one or more communications channels are
             2445      connected.


             2446          (b) "Private communications service" includes the following provided in connection
             2447      with the use of one or more communications channels:
             2448          (i) an extension line;
             2449          (ii) a station;
             2450          (iii) switching capacity; or
             2451          (iv) another associated service that is provided in connection with the use of one or
             2452      more communications channels as defined in Section 59-12-215 .
             2453          (90) (a) Except as provided in Subsection (90)(b), "product transferred electronically"
             2454      means a product transferred electronically that would be subject to a tax under this chapter if
             2455      that product was transferred in a manner other than electronically.
             2456          (b) "Product transferred electronically" does not include:
             2457          (i) an ancillary service;
             2458          (ii) computer software; or
             2459          (iii) a telecommunications service.
             2460          (91) (a) "Prosthetic device" means a device that is worn on or in the body to:
             2461          (i) artificially replace a missing portion of the body;
             2462          (ii) prevent or correct a physical deformity or physical malfunction; or
             2463          (iii) support a weak or deformed portion of the body.
             2464          (b) "Prosthetic device" includes:
             2465          (i) parts used in the repairs or renovation of a prosthetic device;
             2466          (ii) replacement parts for a prosthetic device;
             2467          (iii) a dental prosthesis; or
             2468          (iv) a hearing aid.
             2469          (c) "Prosthetic device" does not include:
             2470          (i) corrective eyeglasses; or
             2471          (ii) contact lenses.
             2472          (92) (a) "Protective equipment" means an item:
             2473          (i) for human wear; and
             2474          (ii) that is:
             2475          (A) designed as protection:
             2476          (I) to the wearer against injury or disease; or


             2477          (II) against damage or injury of other persons or property; and
             2478          (B) not suitable for general use.
             2479          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2480      commission shall make rules:
             2481          (i) listing the items that constitute "protective equipment"; and
             2482          (ii) that are consistent with the list of items that constitute "protective equipment"
             2483      under the agreement.
             2484          (93) (a) For purposes of Subsection 59-12-104 (41), "publication" means any written or
             2485      printed matter, other than a photocopy:
             2486          (i) regardless of:
             2487          (A) characteristics;
             2488          (B) copyright;
             2489          (C) form;
             2490          (D) format;
             2491          (E) method of reproduction; or
             2492          (F) source; and
             2493          (ii) made available in printed or electronic format.
             2494          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2495      commission may by rule define the term "photocopy."
             2496          (94) (a) "Purchase price" and "sales price" mean the total amount of consideration:
             2497          (i) valued in money; and
             2498          (ii) for which tangible personal property, a product transferred electronically, or
             2499      services are:
             2500          (A) sold;
             2501          (B) leased; or
             2502          (C) rented.
             2503          (b) "Purchase price" and "sales price" include:
             2504          (i) the seller's cost of the tangible personal property, a product transferred
             2505      electronically, or services sold;
             2506          (ii) expenses of the seller, including:
             2507          (A) the cost of materials used;


             2508          (B) a labor cost;
             2509          (C) a service cost;
             2510          (D) interest;
             2511          (E) a loss;
             2512          (F) the cost of transportation to the seller; or
             2513          (G) a tax imposed on the seller;
             2514          (iii) a charge by the seller for any service necessary to complete the sale; or
             2515          (iv) consideration a seller receives from a person other than the purchaser if:
             2516          (A) (I) the seller actually receives consideration from a person other than the purchaser;
             2517      and
             2518          (II) the consideration described in Subsection (94)(b)(iv)(A)(I) is directly related to a
             2519      price reduction or discount on the sale;
             2520          (B) the seller has an obligation to pass the price reduction or discount through to the
             2521      purchaser;
             2522          (C) the amount of the consideration attributable to the sale is fixed and determinable by
             2523      the seller at the time of the sale to the purchaser; and
             2524          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
             2525      seller to claim a price reduction or discount; and
             2526          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
             2527      coupon, or other documentation with the understanding that the person other than the seller
             2528      will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
             2529          (II) the purchaser identifies that purchaser to the seller as a member of a group or
             2530      organization allowed a price reduction or discount, except that a preferred customer card that is
             2531      available to any patron of a seller does not constitute membership in a group or organization
             2532      allowed a price reduction or discount; or
             2533          (III) the price reduction or discount is identified as a third party price reduction or
             2534      discount on the:
             2535          (Aa) invoice the purchaser receives; or
             2536          (Bb) certificate, coupon, or other documentation the purchaser presents.
             2537          (c) "Purchase price" and "sales price" do not include:
             2538          (i) a discount:


             2539          (A) in a form including:
             2540          (I) cash;
             2541          (II) term; or
             2542          (III) coupon;
             2543          (B) that is allowed by a seller;
             2544          (C) taken by a purchaser on a sale; and
             2545          (D) that is not reimbursed by a third party; or
             2546          (ii) subject to Subsections 59-12-103 (2)(e)(ii) and (2)(f)(i), the following if separately
             2547      stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
             2548      sale or later, as demonstrated by the books and records the seller keeps at the time of the
             2549      transaction in the regular course of business, including books and records the seller keeps at the
             2550      time of the transaction in the regular course of business for nontax purposes, by a
             2551      preponderance of the facts and circumstances at the time of the transaction, and by the
             2552      understanding of all of the parties to the transaction:
             2553          (A) the following from credit extended on the sale of tangible personal property or
             2554      services:
             2555          (I) a carrying charge;
             2556          (II) a financing charge; or
             2557          (III) an interest charge;
             2558          (B) a delivery charge;
             2559          (C) an installation charge;
             2560          (D) a manufacturer rebate on a motor vehicle; or
             2561          (E) a tax or fee legally imposed directly on the consumer.
             2562          (95) "Purchaser" means a person to whom:
             2563          (a) a sale of tangible personal property is made;
             2564          (b) a product is transferred electronically; or
             2565          (c) a service is furnished.
             2566          (96) "Regularly rented" means:
             2567          (a) rented to a guest for value three or more times during a calendar year; or
             2568          (b) advertised or held out to the public as a place that is regularly rented to guests for
             2569      value.


             2570          (97) "Rental" is as defined in Subsection (54).
             2571          (98) (a) Except as provided in Subsection (98)(b), "repairs or renovations of tangible
             2572      personal property" means:
             2573          (i) a repair or renovation of tangible personal property that is not permanently attached
             2574      to real property; or
             2575          (ii) attaching tangible personal property or a product transferred electronically to other
             2576      tangible personal property or detaching tangible personal property or a product transferred
             2577      electronically from other tangible personal property if:
             2578          (A) the other tangible personal property to which the tangible personal property or
             2579      product transferred electronically is attached or from which the tangible personal property or
             2580      product transferred electronically is detached is not permanently attached to real property; and
             2581          (B) the attachment of tangible personal property or a product transferred electronically
             2582      to other tangible personal property or detachment of tangible personal property or a product
             2583      transferred electronically from other tangible personal property is made in conjunction with a
             2584      repair or replacement of tangible personal property or a product transferred electronically.
             2585          (b) "Repairs or renovations of tangible personal property" does not include:
             2586          (i) attaching prewritten computer software to other tangible personal property if the
             2587      other tangible personal property to which the prewritten computer software is attached is not
             2588      permanently attached to real property; or
             2589          (ii) detaching prewritten computer software from other tangible personal property if the
             2590      other tangible personal property from which the prewritten computer software is detached is
             2591      not permanently attached to real property.
             2592          (99) "Research and development" means the process of inquiry or experimentation
             2593      aimed at the discovery of facts, devices, technologies, or applications and the process of
             2594      preparing those devices, technologies, or applications for marketing.
             2595          (100) (a) "Residential telecommunications services" means a telecommunications
             2596      service or an ancillary service that is provided to an individual for personal use:
             2597          (i) at a residential address; or
             2598          (ii) at an institution, including a nursing home or a school, if the telecommunications
             2599      service or ancillary service is provided to and paid for by the individual residing at the
             2600      institution rather than the institution.


             2601          (b) For purposes of Subsection (100)(a)(i), a residential address includes an:
             2602          (i) apartment; or
             2603          (ii) other individual dwelling unit.
             2604          (101) "Residential use" means the use in or around a home, apartment building,
             2605      sleeping quarters, and similar facilities or accommodations.
             2606          (102) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
             2607      than:
             2608          (a) resale;
             2609          (b) sublease; or
             2610          (c) subrent.
             2611          (103) (a) "Retailer" means any person engaged in a regularly organized business in
             2612      tangible personal property or any other taxable transaction under Subsection 59-12-103 (1), and
             2613      who is selling to the user or consumer and not for resale.
             2614          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             2615      engaged in the business of selling to users or consumers within the state.
             2616          (104) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
             2617      otherwise, in any manner, of tangible personal property or any other taxable transaction under
             2618      Subsection 59-12-103 (1), for consideration.
             2619          (b) "Sale" includes:
             2620          (i) installment and credit sales;
             2621          (ii) any closed transaction constituting a sale;
             2622          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
             2623      chapter;
             2624          (iv) any transaction if the possession of property is transferred but the seller retains the
             2625      title as security for the payment of the price; and
             2626          (v) any transaction under which right to possession, operation, or use of any article of
             2627      tangible personal property is granted under a lease or contract and the transfer of possession
             2628      would be taxable if an outright sale were made.
             2629          (105) "Sale at retail" is as defined in Subsection (102).
             2630          (106) "Sale-leaseback transaction" means a transaction by which title to tangible
             2631      personal property or a product transferred electronically that is subject to a tax under this


             2632      chapter is transferred:
             2633          (a) by a purchaser-lessee;
             2634          (b) to a lessor;
             2635          (c) for consideration; and
             2636          (d) if:
             2637          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
             2638      of the tangible personal property or product transferred electronically;
             2639          (ii) the sale of the tangible personal property or product transferred electronically to the
             2640      lessor is intended as a form of financing:
             2641          (A) for the tangible personal property or product transferred electronically; and
             2642          (B) to the purchaser-lessee; and
             2643          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
             2644      is required to:
             2645          (A) capitalize the tangible personal property or product transferred electronically for
             2646      financial reporting purposes; and
             2647          (B) account for the lease payments as payments made under a financing arrangement.
             2648          (107) "Sales price" is as defined in Subsection (94).
             2649          (108) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
             2650      amounts charged by a school:
             2651          (i) sales that are directly related to the school's educational functions or activities
             2652      including:
             2653          (A) the sale of:
             2654          (I) textbooks;
             2655          (II) textbook fees;
             2656          (III) laboratory fees;
             2657          (IV) laboratory supplies; or
             2658          (V) safety equipment;
             2659          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
             2660      that:
             2661          (I) a student is specifically required to wear as a condition of participation in a
             2662      school-related event or school-related activity; and


             2663          (II) is not readily adaptable to general or continued usage to the extent that it takes the
             2664      place of ordinary clothing;
             2665          (C) sales of the following if the net or gross revenues generated by the sales are
             2666      deposited into a school district fund or school fund dedicated to school meals:
             2667          (I) food and food ingredients; or
             2668          (II) prepared food; or
             2669          (D) transportation charges for official school activities; or
             2670          (ii) amounts paid to or amounts charged by a school for admission to a school-related
             2671      event or school-related activity.
             2672          (b) "Sales relating to schools" does not include:
             2673          (i) bookstore sales of items that are not educational materials or supplies;
             2674          (ii) except as provided in Subsection (108)(a)(i)(B):
             2675          (A) clothing;
             2676          (B) clothing accessories or equipment;
             2677          (C) protective equipment; or
             2678          (D) sports or recreational equipment; or
             2679          (iii) amounts paid to or amounts charged by a school for admission to a school-related
             2680      event or school-related activity if the amounts paid or charged are passed through to a person:
             2681          (A) other than a:
             2682          (I) school;
             2683          (II) nonprofit organization authorized by a school board or a governing body of a
             2684      private school to organize and direct a competitive secondary school activity; or
             2685          (III) nonprofit association authorized by a school board or a governing body of a
             2686      private school to organize and direct a competitive secondary school activity; and
             2687          (B) that is required to collect sales and use taxes under this chapter.
             2688          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2689      commission may make rules defining the term "passed through."
             2690          (109) For purposes of this section and Section 59-12-104 , "school":
             2691          (a) means:
             2692          (i) an elementary school or a secondary school that:
             2693          (A) is a:


             2694          (I) public school; or
             2695          (II) private school; and
             2696          (B) provides instruction for one or more grades kindergarten through 12; or
             2697          (ii) a public school district; and
             2698          (b) includes the Electronic High School as defined in Section 53A-15-1002 .
             2699          (110) "Seller" means a person that makes a sale, lease, or rental of:
             2700          (a) tangible personal property;
             2701          (b) a product transferred electronically; or
             2702          (c) a service.
             2703          (111) (a) "Semiconductor fabricating, processing, research, or development materials"
             2704      means tangible personal property or a product transferred electronically if the tangible personal
             2705      property or product transferred electronically is:
             2706          (i) used primarily in the process of:
             2707          (A) (I) manufacturing a semiconductor;
             2708          (II) fabricating a semiconductor; or
             2709          (III) research or development of a:
             2710          (Aa) semiconductor; or
             2711          (Bb) semiconductor manufacturing process; or
             2712          (B) maintaining an environment suitable for a semiconductor; or
             2713          (ii) consumed primarily in the process of:
             2714          (A) (I) manufacturing a semiconductor;
             2715          (II) fabricating a semiconductor; or
             2716          (III) research or development of a:
             2717          (Aa) semiconductor; or
             2718          (Bb) semiconductor manufacturing process; or
             2719          (B) maintaining an environment suitable for a semiconductor.
             2720          (b) "Semiconductor fabricating, processing, research, or development materials"
             2721      includes:
             2722          (i) parts used in the repairs or renovations of tangible personal property or a product
             2723      transferred electronically described in Subsection (111)(a); or
             2724          (ii) a chemical, catalyst, or other material used to:


             2725          (A) produce or induce in a semiconductor a:
             2726          (I) chemical change; or
             2727          (II) physical change;
             2728          (B) remove impurities from a semiconductor; or
             2729          (C) improve the marketable condition of a semiconductor.
             2730          (112) "Senior citizen center" means a facility having the primary purpose of providing
             2731      services to the aged as defined in Section 62A-3-101 .
             2732          (113) "Short-term lodging" means tourist home, cottage, hotel, motel, or trailer court
             2733      accommodations and services that are regularly rented for less than 30 consecutive days.
             2734          (114) (a) "Short-term lodging charge" means the full retail price charged for the sale,
             2735      use, or possession of short-term lodging.
             2736          (b) "Short-term lodging charge":
             2737          (i) includes any short-term lodging intermediary charge;
             2738          (ii) includes any other tangible personal property, product, or service, except for air
             2739      transportation or a vehicle rental, that is:
             2740          (A) purchased as part of a transaction that includes the purchase of short-term lodging;
             2741      and
             2742          (B) included, but not separately stated, on the invoice, bill of sale, or similar document
             2743      provided to the purchaser of the short-term lodging; and
             2744          (iii) excludes tax.
             2745          (115) "Short-term lodging intermediary" means a person who:
             2746          (a) is not a short-term lodging operator;
             2747          (b) facilitates the sale, use, or possession of short-term lodging, including brokering,
             2748      coordinating, or in any other way arranging for the purchase, sale, use, or possession of
             2749      short-term lodging by the general public; and
             2750          (c) charges a short-term lodging charge to a purchaser.
             2751          (116) (a) "Short-term lodging intermediary charge" means an amount charged by a
             2752      short-term lodging intermediary:
             2753          (i) to the purchaser of short-term lodging for facilitating the sale, use, or possession of
             2754      the short-term lodging; and
             2755          (ii) regardless of how the amount is characterized.


             2756          (b) "Short-term lodging intermediary charge" does not include a commission paid
             2757      directly by a short-term lodging operator to a person for facilitating the sale, use, or possession
             2758      of short-term lodging.
             2759          (117) (a) "Short-term lodging operator" means a person who:
             2760          (i) owns, operates, or manages short-term lodging; and
             2761          (ii) makes short-term lodging available to purchasers for compensation.
             2762          (b) "Short-term lodging operator" does not include:
             2763          (i) a travel agent who does not own, operate, or manage short-term lodging; or
             2764          (ii) another person who:
             2765          (A) does not own, operate, or manage short-term lodging; and
             2766          (B) arranges, books, brokers, coordinates, or facilitates a transaction involving
             2767      short-term lodging between a purchaser and a person who owns, operates, or manages
             2768      short-term lodging.
             2769          (118) "Short-term lodging operator charge" means the difference between the
             2770      short-term lodging charge and the short-term lodging intermediary charge.
             2771          [(113)] (119) "Simplified electronic return" means the electronic return:
             2772          (a) described in Section 318(C) of the agreement; and
             2773          (b) approved by the governing board of the agreement.
             2774          [(114)] (120) "Solar energy" means the sun used as the sole source of energy for
             2775      producing electricity.
             2776          [(115)] (121) (a) "Sports or recreational equipment" means an item:
             2777          (i) designed for human use; and
             2778          (ii) that is:
             2779          (A) worn in conjunction with:
             2780          (I) an athletic activity; or
             2781          (II) a recreational activity; and
             2782          (B) not suitable for general use.
             2783          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2784      commission shall make rules:
             2785          (i) listing the items that constitute "sports or recreational equipment"; and
             2786          (ii) that are consistent with the list of items that constitute "sports or recreational


             2787      equipment" under the agreement.
             2788          [(116)] (122) "State" means the state of Utah, its departments, and agencies.
             2789          [(117)] (123) "Storage" means any keeping or retention of tangible personal property or
             2790      any other taxable transaction under Subsection 59-12-103 (1), in this state for any purpose
             2791      except sale in the regular course of business.
             2792          [(118)] (124) (a) Except as provided in Subsection [(118)] (124)(d) or (e), "tangible
             2793      personal property" means personal property that:
             2794          (i) may be:
             2795          (A) seen;
             2796          (B) weighed;
             2797          (C) measured;
             2798          (D) felt; or
             2799          (E) touched; or
             2800          (ii) is in any manner perceptible to the senses.
             2801          (b) "Tangible personal property" includes:
             2802          (i) electricity;
             2803          (ii) water;
             2804          (iii) gas;
             2805          (iv) steam; or
             2806          (v) prewritten computer software, regardless of the manner in which the prewritten
             2807      computer software is transferred.
             2808          (c) "Tangible personal property" includes the following regardless of whether the item
             2809      is attached to real property:
             2810          (i) a dishwasher;
             2811          (ii) a dryer;
             2812          (iii) a freezer;
             2813          (iv) a microwave;
             2814          (v) a refrigerator;
             2815          (vi) a stove;
             2816          (vii) a washer; or
             2817          (viii) an item similar to Subsections [(118)] (124)(c)(i) through (vii) as determined by


             2818      the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             2819      Rulemaking Act.
             2820          (d) "Tangible personal property" does not include a product that is transferred
             2821      electronically.
             2822          (e) "Tangible personal property" does not include the following if attached to real
             2823      property, regardless of whether the attachment to real property is only through a line that
             2824      supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
             2825      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             2826      Rulemaking Act:
             2827          (i) a hot water heater;
             2828          (ii) a water filtration system; or
             2829          (iii) a water softener system.
             2830          [(119)] (125) (a) "Telecommunications enabling or facilitating equipment, machinery,
             2831      or software" means an item listed in Subsection [(119)] (125)(b) if that item is purchased or
             2832      leased primarily to enable or facilitate one or more of the following to function:
             2833          (i) telecommunications switching or routing equipment, machinery, or software; or
             2834          (ii) telecommunications transmission equipment, machinery, or software.
             2835          (b) The following apply to Subsection [(119)] (125)(a):
             2836          (i) a pole;
             2837          (ii) software;
             2838          (iii) a supplementary power supply;
             2839          (iv) temperature or environmental equipment or machinery;
             2840          (v) test equipment;
             2841          (vi) a tower; or
             2842          (vii) equipment, machinery, or software that functions similarly to an item listed in
             2843      Subsections [(119)] (125)(b)(i) through (vi) as determined by the commission by rule made in
             2844      accordance with Subsection [(119)] (125)(c).
             2845          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2846      commission may by rule define what constitutes equipment, machinery, or software that
             2847      functions similarly to an item listed in Subsections [(119)] (125)(b)(i) through (vi).
             2848          [(120)] (126) "Telecommunications equipment, machinery, or software required for


             2849      911 service" means equipment, machinery, or software that is required to comply with 47
             2850      C.F.R. Sec. 20.18.
             2851          [(121)] (127) "Telecommunications maintenance or repair equipment, machinery, or
             2852      software" means equipment, machinery, or software purchased or leased primarily to maintain
             2853      or repair one or more of the following, regardless of whether the equipment, machinery, or
             2854      software is purchased or leased as a spare part or as an upgrade or modification to one or more
             2855      of the following:
             2856          (a) telecommunications enabling or facilitating equipment, machinery, or software;
             2857          (b) telecommunications switching or routing equipment, machinery, or software; or
             2858          (c) telecommunications transmission equipment, machinery, or software.
             2859          [(122)] (128) (a) "Telecommunications service" means the electronic conveyance,
             2860      routing, or transmission of audio, data, video, voice, or any other information or signal to a
             2861      point, or among or between points.
             2862          (b) "Telecommunications service" includes:
             2863          (i) an electronic conveyance, routing, or transmission with respect to which a computer
             2864      processing application is used to act:
             2865          (A) on the code, form, or protocol of the content;
             2866          (B) for the purpose of electronic conveyance, routing, or transmission; and
             2867          (C) regardless of whether the service:
             2868          (I) is referred to as voice over Internet protocol service; or
             2869          (II) is classified by the Federal Communications Commission as enhanced or value
             2870      added;
             2871          (ii) an 800 service;
             2872          (iii) a 900 service;
             2873          (iv) a fixed wireless service;
             2874          (v) a mobile wireless service;
             2875          (vi) a postpaid calling service;
             2876          (vii) a prepaid calling service;
             2877          (viii) a prepaid wireless calling service; or
             2878          (ix) a private communications service.
             2879          (c) "Telecommunications service" does not include:


             2880          (i) advertising, including directory advertising;
             2881          (ii) an ancillary service;
             2882          (iii) a billing and collection service provided to a third party;
             2883          (iv) a data processing and information service if:
             2884          (A) the data processing and information service allows data to be:
             2885          (I) (Aa) acquired;
             2886          (Bb) generated;
             2887          (Cc) processed;
             2888          (Dd) retrieved; or
             2889          (Ee) stored; and
             2890          (II) delivered by an electronic transmission to a purchaser; and
             2891          (B) the purchaser's primary purpose for the underlying transaction is the processed data
             2892      or information;
             2893          (v) installation or maintenance of the following on a customer's premises:
             2894          (A) equipment; or
             2895          (B) wiring;
             2896          (vi) Internet access service;
             2897          (vii) a paging service;
             2898          (viii) a product transferred electronically, including:
             2899          (A) music;
             2900          (B) reading material;
             2901          (C) a ring tone;
             2902          (D) software; or
             2903          (E) video;
             2904          (ix) a radio and television audio and video programming service:
             2905          (A) regardless of the medium; and
             2906          (B) including:
             2907          (I) furnishing conveyance, routing, or transmission of a television audio and video
             2908      programming service by a programming service provider;
             2909          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
             2910          (III) audio and video programming services delivered by a commercial mobile radio


             2911      service provider as defined in 47 C.F.R. Sec. 20.3;
             2912          (x) a value-added nonvoice data service; or
             2913          (xi) tangible personal property.
             2914          [(123)] (129) (a) "Telecommunications service provider" means a person that:
             2915          (i) owns, controls, operates, or manages a telecommunications service; and
             2916          (ii) engages in an activity described in Subsection [(123)] (129)(a)(i) for the shared use
             2917      with or resale to any person of the telecommunications service.
             2918          (b) A person described in Subsection [(123)] (129)(a) is a telecommunications service
             2919      provider whether or not the Public Service Commission of Utah regulates:
             2920          (i) that person; or
             2921          (ii) the telecommunications service that the person owns, controls, operates, or
             2922      manages.
             2923          [(124)] (130) (a) "Telecommunications switching or routing equipment, machinery, or
             2924      software" means an item listed in Subsection [(124)] (130)(b) if that item is purchased or
             2925      leased primarily for switching or routing:
             2926          (i) an ancillary service;
             2927          (ii) data communications;
             2928          (iii) voice communications; or
             2929          (iv) telecommunications service.
             2930          (b) The following apply to Subsection [(124)] (130)(a):
             2931          (i) a bridge;
             2932          (ii) a computer;
             2933          (iii) a cross connect;
             2934          (iv) a modem;
             2935          (v) a multiplexer;
             2936          (vi) plug in circuitry;
             2937          (vii) a router;
             2938          (viii) software;
             2939          (ix) a switch; or
             2940          (x) equipment, machinery, or software that functions similarly to an item listed in
             2941      Subsections [(124)] (130)(b)(i) through (ix) as determined by the commission by rule made in


             2942      accordance with Subsection [(124)] (130)(c).
             2943          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2944      commission may by rule define what constitutes equipment, machinery, or software that
             2945      functions similarly to an item listed in Subsections [(124)] (130)(b)(i) through (ix).
             2946          [(125)] (131) (a) "Telecommunications transmission equipment, machinery, or
             2947      software" means an item listed in Subsection [(125)] (131)(b) if that item is purchased or
             2948      leased primarily for sending, receiving, or transporting:
             2949          (i) an ancillary service;
             2950          (ii) data communications;
             2951          (iii) voice communications; or
             2952          (iv) telecommunications service.
             2953          (b) The following apply to Subsection [(125)] (131)(a):
             2954          (i) an amplifier;
             2955          (ii) a cable;
             2956          (iii) a closure;
             2957          (iv) a conduit;
             2958          (v) a controller;
             2959          (vi) a duplexer;
             2960          (vii) a filter;
             2961          (viii) an input device;
             2962          (ix) an input/output device;
             2963          (x) an insulator;
             2964          (xi) microwave machinery or equipment;
             2965          (xii) an oscillator;
             2966          (xiii) an output device;
             2967          (xiv) a pedestal;
             2968          (xv) a power converter;
             2969          (xvi) a power supply;
             2970          (xvii) a radio channel;
             2971          (xviii) a radio receiver;
             2972          (xix) a radio transmitter;


             2973          (xx) a repeater;
             2974          (xxi) software;
             2975          (xxii) a terminal;
             2976          (xxiii) a timing unit;
             2977          (xxiv) a transformer;
             2978          (xxv) a wire; or
             2979          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
             2980      Subsections [(125)] (131)(b)(i) through (xxv) as determined by the commission by rule made in
             2981      accordance with Subsection [(125)] (131)(c).
             2982          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2983      commission may by rule define what constitutes equipment, machinery, or software that
             2984      functions similarly to an item listed in Subsections [(125)] (131)(b)(i) through (xxv).
             2985          [(126)] (132) (a) "Textbook for a higher education course" means a textbook or other
             2986      printed material that is required for a course:
             2987          (i) offered by an institution of higher education; and
             2988          (ii) that the purchaser of the textbook or other printed material attends or will attend.
             2989          (b) "Textbook for a higher education course" includes a textbook in electronic format.
             2990          (133) "Travel package" means short-term lodging sold with the following for a single
             2991      retail price:
             2992          (a) air transportation; or
             2993          (b) a vehicle rental.
             2994          [(127)] (134) "Tobacco" means:
             2995          (a) a cigarette;
             2996          (b) a cigar;
             2997          (c) chewing tobacco;
             2998          (d) pipe tobacco; or
             2999          (e) any other item that contains tobacco.
             3000          [(128)] (135) "Unassisted amusement device" means an amusement device, skill
             3001      device, or ride device that is started and stopped by the purchaser or renter of the right to use or
             3002      operate the amusement device, skill device, or ride device.
             3003          [(129)] (136) (a) "Use" means the exercise of any right or power over tangible personal


             3004      property, a product transferred electronically, or a service under Subsection 59-12-103 (1),
             3005      incident to the ownership or the leasing of that tangible personal property, product transferred
             3006      electronically, or service.
             3007          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
             3008      property, a product transferred electronically, or a service in the regular course of business and
             3009      held for resale.
             3010          [(130)] (137) "Value-added nonvoice data service" means a service:
             3011          (a) that otherwise meets the definition of a telecommunications service except that a
             3012      computer processing application is used to act primarily for a purpose other than conveyance,
             3013      routing, or transmission; and
             3014          (b) with respect to which a computer processing application is used to act on data or
             3015      information:
             3016          (i) code;
             3017          (ii) content;
             3018          (iii) form; or
             3019          (iv) protocol.
             3020          [(131)] (138) (a) Subject to Subsection [(131)] (138)(b), "vehicle" means the following
             3021      that are required to be titled, registered, or titled and registered:
             3022          (i) an aircraft as defined in Section 72-10-102 ;
             3023          (ii) a vehicle as defined in Section 41-1a-102 ;
             3024          (iii) an off-highway vehicle as defined in Section 41-22-2 ; or
             3025          (iv) a vessel as defined in Section 41-1a-102 .
             3026          (b) For purposes of Subsection 59-12-104 (33) only, "vehicle" includes:
             3027          (i) a vehicle described in Subsection [(131)] (138)(a); or
             3028          (ii) (A) a locomotive;
             3029          (B) a freight car;
             3030          (C) railroad work equipment; or
             3031          (D) other railroad rolling stock.
             3032          [(132)] (139) "Vehicle dealer" means a person engaged in the business of buying,
             3033      selling, or exchanging a vehicle as defined in Subsection [(131)] (138).
             3034          [(133)] (140) (a) "Vertical service" means an ancillary service that:


             3035          (i) is offered in connection with one or more telecommunications services; and
             3036          (ii) offers an advanced calling feature that allows a customer to:
             3037          (A) identify a caller; and
             3038          (B) manage multiple calls and call connections.
             3039          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
             3040      conference bridging service.
             3041          [(134)] (141) (a) "Voice mail service" means an ancillary service that enables a
             3042      customer to receive, send, or store a recorded message.
             3043          (b) "Voice mail service" does not include a vertical service that a customer is required
             3044      to have in order to utilize a voice mail service.
             3045          [(135)] (142) (a) Except as provided in Subsection [(135)] (142)(b), "waste energy
             3046      facility" means a facility that generates electricity:
             3047          (i) using as the primary source of energy waste materials that would be placed in a
             3048      landfill or refuse pit if it were not used to generate electricity, including:
             3049          (A) tires;
             3050          (B) waste coal;
             3051          (C) oil shale; or
             3052          (D) municipal solid waste; and
             3053          (ii) in amounts greater than actually required for the operation of the facility.
             3054          (b) "Waste energy facility" does not include a facility that incinerates:
             3055          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
             3056          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
             3057          [(136)] (143) "Watercraft" means a vessel as defined in Section 73-18-2 .
             3058          [(137)] (144) "Wind energy" means wind used as the sole source of energy to produce
             3059      electricity.
             3060          [(138)] (145) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
             3061      geographic location by the United States Postal Service.
             3062          Section 3. Section 59-12-103 (Superseded 07/01/14) is amended to read:
             3063           59-12-103 (Superseded 07/01/14). Sales and use tax base -- Rates -- Effective dates
             3064      -- Use of sales and use tax revenues.
             3065          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or


             3066      charged for the following transactions:
             3067          (a) retail sales of tangible personal property made within the state;
             3068          (b) amounts paid for:
             3069          (i) telecommunications service, other than mobile telecommunications service, that
             3070      originates and terminates within the boundaries of this state;
             3071          (ii) mobile telecommunications service that originates and terminates within the
             3072      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             3073      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             3074          (iii) an ancillary service associated with a:
             3075          (A) telecommunications service described in Subsection (1)(b)(i); or
             3076          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             3077          (c) sales of the following for commercial use:
             3078          (i) gas;
             3079          (ii) electricity;
             3080          (iii) heat;
             3081          (iv) coal;
             3082          (v) fuel oil; or
             3083          (vi) other fuels;
             3084          (d) sales of the following for residential use:
             3085          (i) gas;
             3086          (ii) electricity;
             3087          (iii) heat;
             3088          (iv) coal;
             3089          (v) fuel oil; or
             3090          (vi) other fuels;
             3091          (e) sales of prepared food;
             3092          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             3093      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             3094      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             3095      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             3096      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf


             3097      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             3098      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             3099      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             3100      exhibition, cultural, or athletic activity;
             3101          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             3102      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             3103          (i) the tangible personal property; and
             3104          (ii) parts used in the repairs or renovations of the tangible personal property described
             3105      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             3106      of that tangible personal property;
             3107          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             3108      assisted cleaning or washing of tangible personal property;
             3109          (i) subject to Subsection 59-12-107 (3)(i), amounts paid or charged for [tourist home,
             3110      hotel, motel, or trailer court accommodations and services that are regularly rented for less than
             3111      30 consecutive days] short-term lodging;
             3112          (j) amounts paid or charged for laundry or dry cleaning services;
             3113          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             3114      this state the tangible personal property is:
             3115          (i) stored;
             3116          (ii) used; or
             3117          (iii) otherwise consumed;
             3118          (l) amounts paid or charged for tangible personal property if within this state the
             3119      tangible personal property is:
             3120          (i) stored;
             3121          (ii) used; or
             3122          (iii) consumed; and
             3123          (m) amounts paid or charged for a sale:
             3124          (i) (A) of a product transferred electronically; or
             3125          (B) of a repair or renovation of a product transferred electronically; and
             3126          (ii) regardless of whether the sale provides:
             3127          (A) a right of permanent use of the product; or


             3128          (B) a right to use the product that is less than a permanent use, including a right:
             3129          (I) for a definite or specified length of time; and
             3130          (II) that terminates upon the occurrence of a condition.
             3131          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             3132      is imposed on a transaction described in Subsection (1) equal to the sum of:
             3133          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             3134          (A) 4.70%; and
             3135          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             3136      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             3137      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             3138      State Sales and Use Tax Act; and
             3139          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             3140      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             3141      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             3142      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             3143          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             3144      transaction under this chapter other than this part.
             3145          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             3146      on a transaction described in Subsection (1)(d) equal to the sum of:
             3147          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             3148          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             3149      transaction under this chapter other than this part.
             3150          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             3151      on amounts paid or charged for food and food ingredients equal to the sum of:
             3152          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             3153      a tax rate of 1.75%; and
             3154          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             3155      amounts paid or charged for food and food ingredients under this chapter other than this part.
             3156          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
             3157      tangible personal property other than food and food ingredients, a state tax and a local tax is
             3158      imposed on the entire bundled transaction equal to the sum of:


             3159          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             3160          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             3161          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             3162      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             3163      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             3164      Additional State Sales and Use Tax Act; and
             3165          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             3166      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             3167      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             3168      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             3169          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             3170      described in Subsection (2)(a)(ii).
        &