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H.B. 31

This document includes House Committee Amendments incorporated into the bill on Thu, Feb 13, 2014 at 11:13 AM by lerror. -->              1     

POLLUTION CONTROL AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Ryan D. Wilcox

             5     
Senate Sponsor: Deidre M. Henderson

             6     
             7      LONG TITLE
             8      Committee Note:
             9          The Revenue and Taxation Interim Committee recommended this bill.
             10      General Description:
             11          This bill addresses provisions related to pollution control.
             12      Highlighted Provisions:
             13          This bill:
             14          .    addresses definitions;
             15          .    repeals provisions related to pollution control;
             16          .    enacts the Pollution Control Act chapter, including:
             17              .    defining terms;
             18              .    addressing a sales and use tax exemption related to pollution control;
             19              .    addressing the process for claiming a refund of sales and use taxes paid;
             20              .    addressing the certification process for purposes of the sales and use tax
             21      exemption;
             22              .    addressing the revocation of certification; and
             23              .    addressing rulemaking authority by the Air Quality Board or Water Quality
             24      Board; and
             25          .    makes technical and conforming changes.
             26      Money Appropriated in this Bill:
             27          None


             28      Other Special Clauses:
             29          None
             30      Utah Code Sections Affected:
             31      AMENDS:
             32           19-2-102 , as last amended by Laws of Utah 2012, Chapter 360
             33           59-1-1410 , as last amended by Laws of Utah 2012, Chapter 424
             34           59-12-104 , as last amended by Laws of Utah 2013, Chapters 82, 223, 229, 234, and 441
             35      ENACTS:
             36           19-12-101 , Utah Code Annotated 1953
             37           19-12-102 , Utah Code Annotated 1953
             38           19-12-201 , Utah Code Annotated 1953
             39           19-12-202 , Utah Code Annotated 1953
             40           19-12-203 , Utah Code Annotated 1953
             41           19-12-301 , Utah Code Annotated 1953
             42           19-12-302 , Utah Code Annotated 1953
             43           19-12-303 , Utah Code Annotated 1953
             44           19-12-304 , Utah Code Annotated 1953
             45           19-12-305 , Utah Code Annotated 1953
             46      REPEALS:
             47           19-2-123 , as renumbered and amended by Laws of Utah 1991, Chapter 112
             48           19-2-124 , as last amended by Laws of Utah 2011, Chapter 142
             49           19-2-125 , as last amended by Laws of Utah 2008, Chapter 30
             50           19-2-126 , as last amended by Laws of Utah 1994, Chapter 135
             51           19-2-127 , as renumbered and amended by Laws of Utah 1991, Chapter 112
             52     
             53      Be it enacted by the Legislature of the state of Utah:
             54          Section 1. Section 19-2-102 is amended to read:
             55           19-2-102. Definitions.
             56          As used in this chapter:
             57          (1) "Air contaminant" means any particulate matter or any gas, vapor, suspended solid,
             58      or any combination of them, excluding steam and water vapors.


             59          (2) "Air contaminant source" means all sources of emission of air contaminants
             60      whether privately or publicly owned or operated.
             61          (3) "Air pollution" means the presence in the ambient air of one or more air
             62      contaminants in the quantities and duration and under conditions and circumstances as is or
             63      tends to be injurious to human health or welfare, animal or plant life, or property, or would
             64      unreasonably interfere with the enjoyment of life or use of property, as determined by the rules
             65      adopted by the board.
             66          (4) "Ambient air" means the surrounding or outside air.
             67          (5) "Asbestos" means the asbestiform varieties of serpentine (chrysotile), riebeckite
             68      (crocidolite), cummingtonite-grunerite, anthophyllite, and actinolite-tremolite.
             69          (6) "Asbestos-containing material" means any material containing more than 1%
             70      asbestos, as determined using the method adopted in 40 CFR Part 61, Subpart M, National
             71      Emission Standard for Asbestos.
             72          (7) "Asbestos inspection" means an activity undertaken to determine the presence or
             73      location, or to assess the condition of, asbestos-containing material or suspected
             74      asbestos-containing material, whether by visual or physical examination, or by taking samples
             75      of the material.
             76          (8) [(a)] "Board" means the Air Quality Board.
             77          [(b) "Board" means, as used in Sections 19-2-123 through 19-2-126 , the Air Quality
             78      Board or the Water Quality Board.]
             79          (9) "Clean school bus" has the same meaning as defined in 42 U.S.C. Sec. 16091.
             80          (10) "Director" means the director of the Division of Air Quality.
             81          (11) "Division" means the Division of Air Quality[,] created in [Subsection
             82      19-1-105 (1)(a)] Section 19-1-105 .
             83          [(12) (a) "Facility" means machinery, equipment, structures, or any part or accessories
             84      of them, installed or acquired for the primary purpose of controlling or disposing of air
             85      pollution.]
             86          [(b) "Facility" does not include an air conditioner, fan, or other similar facility for the
             87      comfort of personnel.]
             88          [(13)] (12) "Friable asbestos-containing material" means any material containing more
             89      than 1% asbestos, as determined using the method adopted in 40 CFR Part 61, Subpart M,


             90      National Emission Standard for Asbestos, that hand pressure can crumble, pulverize, or reduce
             91      to powder when dry.
             92          [(14)] (13) "Indirect source" means a facility, building, structure, or installation which
             93      attracts or may attract mobile source activity that results in emissions of a pollutant for which
             94      there is a national standard.
             95          [(15) (a) "Pollution control facility" or "facility" means, as used in Sections 19-2-123
             96      through 19-2-126 , any land, structure, building, installation, excavation, machinery, equipment,
             97      or device, or any addition to, reconstruction, replacement or improvement of, land or an
             98      existing structure, building, installation, excavation, machinery, equipment, or device
             99      reasonably used, erected, constructed, acquired, or installed by any person if the primary
             100      purpose of the use, erection, construction, acquisition, or installation is the prevention, control,
             101      or reduction of air or water pollution by:]
             102          [(i) the disposal or elimination of or redesign to eliminate waste and the use of
             103      treatment works for industrial waste as defined in Title 19, Chapter 5, Water Quality Act; or]
             104          [(ii) the disposal, elimination, or reduction of or redesign to eliminate or reduce air
             105      contaminants or air pollution or air contamination sources and the use of air cleaning devices.]
             106          [(b) "Pollution control facility" or "facility" does not include air conditioners, septic
             107      tanks, or other facilities for human waste, nor any property installed, constructed, or used for
             108      the moving of sewage to the collection facilities of a public or quasi-public sewerage system.]
             109          Section 2. Section 19-12-101 is enacted to read:
             110     
CHAPTER 12. POLLUTION CONTROL ACT

             111     
Part 1. General Provisions

             112          19-12-101. Title.
             113          This chapter is known as the "Pollution Control Act."
             114          Section 3. Section 19-12-102 is enacted to read:
             115          19-12-102. Definitions.
             116          As used in this chapter:
             117          (1) "Air contaminant" is as defined in Section 19-2-102 .
             118          (2) "Air contaminant source" is as defined in Section 19-2-102 .
             119          (3) "Air pollution" is as defined in Section 19-2-102 .
             120          (4) "Director" means:


             121          (a) for purposes of an application or certification under this chapter related to air
             122      pollution, the director of the Division of Air Quality; or
             123          (b) for purposes of an application or certification under this chapter related to water
             124      pollution, the director of the Division of Water Quality.
             125          (5) (a) "Freestanding pollution control property" means tangible personal property
             126      located in the state, regardless of whether a purchaser purchases the tangible personal property
             127      voluntarily or H. [ a governmental entity requires the purchaser to purchase the tangible personal
             128      property
] to comply with a requirement of a governmental entity .H
, if:
             129          (i) the primary purpose of the tangible personal property is the prevention, control, or
             130      reduction of air or water pollution by:
             131          (A) the disposal or elimination of, or redesign to eliminate, waste, and the use of
             132      treatment works for industrial waste; or
             133          (B) the disposal, elimination, or reduction of, or redesign to eliminate or reduce, air
             134      contaminants, air pollution, or air contamination sources, and the use of one or more air
             135      cleaning devices; and
             136          (ii) the tangible personal property is not used at, in the construction of, or incorporated
             137      into a pollution control facility.
             138          (b) "Freestanding pollution control property" does not include:
             138a      H. (i) a consumable:
             138b          (A) chemical that is not reusable;
             138c          (B) cleaning material that is not reusable; or
             138d          (C) supply that is not reusable;
             139           [ (i) ] (ii) .H the following used for human waste:
             140          (A) a septic tank; or
             141          (B) other property;
             142           H. [ (ii) ] (iii) .H property installed, constructed, or used for the moving of sewage to a
             142a      collection
             143      facility of a public or quasi-public sewerage system;
             144           H. [ (iii) ] (iv) .H the following used for the comfort of personnel:
             145          (A) an air conditioner;
             146          (B) a fan; or
             147          (C) an item similar to Subsection (5)(b) H. [ (iii) ] (iv) .H (A) or (B); or
             148           H. [ (iv) ] (v) .H office equipment or an office supply if the primary purpose of the office
             148a      equipment
             149      or office supply is not the prevention, control, or reduction of air or water pollution by:
             150          (A) the disposal or elimination of, or redesign to eliminate, waste, and the use of
             151      treatment works for industrial waste; or


             152          (B) the disposal, elimination, or reduction of, or redesign to eliminate or reduce, air
             153      contaminants, air pollution, or air contamination sources, and the use of one or more air
             154      cleaning devices.
             155          (6) (a) "Pollution control facility" means real property in the state, regardless of
             156      whether a purchaser purchases the real property voluntarily or H. [ a governmental entity requires
             157      the purchaser to purchase the real property
] to comply with a requirement of a governmental

             157a      entity .H , if the primary purpose of the real property is the
             158      prevention, control, or reduction of air pollution or water pollution by:
             159          (i) the disposal or elimination of, or redesign to eliminate:
             160          (A) waste; and
             161          (B) the use of treatment works for industrial waste; or
             162          (ii) (A) the disposal, elimination, or reduction of, or redesign to eliminate or reduce, air
             163      contaminants, air pollution, or air contamination sources; and
             164          (B) the use of one or more air cleaning devices.
             165          (b) "Pollution control facility" includes:
             166          (i) an addition to real property described in Subsection (6)(a);
             167          (ii) the reconstruction of real property described in Subsection (6)(a); or
             168          (iii) an improvement to real property described in Subsection (6)(a).
             169          (c) "Pollution control facility" does not include:    
             169a      H.(i) a consumable:
             169b          (A) chemical that is not reusable;
             169c          (B) cleaning material that is not reusable; or
             169d           (C) supply that is not reusable;
             170           [ (i) ] (ii) .H the following used for human waste:
             171          (A) a septic tank; or
             172          (B) another facility;
             173           H. [ (ii) ] (iii) .H property installed, constructed, or used for the moving of sewage to a
             173a      collection
             174      facility of a public or quasi-public sewerage system;
             175           H. [ (iii) ] (iv) .H the following used for the comfort of personnel:
             176          (A) an air conditioner;
             177          (B) a fan; or
             178          (C) an item similar to Subsection (6)(c) H. [ (iii) ] (iv) .H (A) or (B); or
             179           H. [ (iv) ] (v) .H office equipment or an office supply if the primary purpose of the office
             179a      equipment
             180      or office supply is not the prevention, control, or reduction of air or water pollution by:
             181          (A) the disposal or elimination of, or redesign to eliminate, waste, and the use of
             182      treatment works for industrial waste; or


             183          (B) the disposal, elimination, or reduction of, or redesign to eliminate, or reduce, air
             184      contaminants, air pollution, or air contamination sources, and the use of one or more air
             185      cleaning devices.
             186          (7) "Treatment works" is as defined in Section 19-5-102 .
             187          (8) "Waste" is as defined in Section 19-5-102 .
             188          (9) "Water pollution" has the same meaning as "pollution" under Section 19-5-102 .
             189          Section 4. Section 19-12-201 is enacted to read:
             190     
Part 2. Sales and Use Tax Provisions

             191          19-12-201. Sales and use tax exemption for certain purchases or leases related to
             192      pollution control.
             193          (1) Except as provided in Subsection (2), a purchase or lease of the following is
             194      exempt from a tax imposed under Title 59, Chapter 12, Sales and Use Tax Act:
             195          (a) freestanding pollution control property;
             196          (b) tangible personal property H. [ , including tangible personal property that has an
             197      economic life of less than three years,
] .H
if the tangible personal property is:
             198          (i) incorporated into freestanding pollution control property; or
             199          (ii) used at, used in the construction of, or incorporated into a pollution control facility;
             200          (c) a part, if the part is used in the repair or replacement of property described in
             201      Subsection (1)(a) or (b);
             202          (d) a product transferred electronically, if the property transferred electronically is:
             203          (i) incorporated into freestanding pollution control property; or
             204          (ii) used at, used in the construction of, or incorporated into a pollution control facility;
             205      or
             206          (e) a service, if the service is performed on:
             207          (i) freestanding pollution control property;
             208          (ii) a pollution control facility; or
             209          (iii) property described in Subsection (1)(b), a part described in Subsection (1)(c), or a
             210      product described in Subsection (1)(d).
             210a           H. (2) A purchase or lease of the following is not exempt under this section:
             210b           (a) a consumable chemical that is not reusable;
             210c          (b) a consumable cleaning material that is not reusable; or
             210d          (c) a consumable supply that is not reusable.
             211           [ (2) ] (3) .H A purchase or lease of office equipment or an office supply is not exempt
             211a      under this
             212      section if the primary purpose of the office equipment or office supply is not the prevention,
             213      control, or reduction of air or water pollution by:


             214          (a) the disposal or elimination of, or redesign to eliminate, waste, and the use of
             215      treatment works for industrial waste; or
             216          (b) the disposal, elimination, or reduction of, or redesign to eliminate or reduce, air
             217      contaminants, air pollution, or air contamination sources, and the use of one or more air
             218      cleaning devices.
             219          Section 5. Section 19-12-202 is enacted to read:
             220          19-12-202. Certification required before claiming a sales and use tax exemption.
             221          (1) Before a person may claim a sales and use tax exemption under Section 19-12-201 ,
             222      the person shall obtain certification issued in accordance with Section 19-12-303 .
             223          (2) For purposes of Subsection (1), if a certification relates to air pollution:
             224          (a) a person shall submit an application under Section 19-12-301 or 19-12-302 to the
             225      director of the Division of Air Quality; and
             226          (b) the director of the Division of Air Quality shall perform the duties described in:
             227          (i) Section 19-12-303 related to certification; and
             228          (ii) Section 19-12-304 related to revocation of certification.
             229          (3) For purposes of Subsection (1), if a certification relates to water pollution:
             230          (a) a person shall submit an application under Section 19-12-301 or 19-12-302 to the
             231      director of the Division of Water Quality; and
             232          (b) the director of the Division of Water Quality shall perform the duties described in:
             233          (i) Section 19-12-303 related to certification; and
             234          (ii) Section 19-12-304 related to revocation of certification.
             235          Section 6. Section 19-12-203 is enacted to read:
             236          19-12-203. Refunds -- Interest.
             237          (1) A person who pays a tax under Title 59, Chapter 12, Sales and Use Tax Act, on a
             238      purchase or lease that would otherwise be exempt under Section 19-12-201 , except that the
             239      director has not issued a certification under Section 19-12-303 , may obtain a refund of the tax
             240      if:
             241          (a) the director subsequently issues a certification under Section 19-12-303 ; and
             242          (b) the person files a claim for the refund with the State Tax Commission on or before
             243      the earlier of:
             244          (i) three years after the date the director issues the certification under Section


             245      19-12-303 ; or
             246          (ii) six years after the date the person pays the tax under Title 59, Chapter 12, Sales and
             247      Use Tax Act.
             248          (2) A person who pays a tax under Title 59, Chapter 12, Sales and Use Tax Act, on a
             249      purchase or lease that is exempt under Section 19-12-201 , may obtain a refund of the tax if the
             250      person files a claim for the refund with the State Tax Commission within three years after the
             251      date the person pays the tax under Title 59, Chapter 12, Sales and Use Tax Act.
             252          (3) (a) If a person files a claim for a refund of taxes under Subsection (1) within 180
             253      days after the date the director issues a certification under Section 19-12-303 , interest shall be
             254      added to the amount of the refund the State Tax Commission grants:
             255          (i) at the interest rate prescribed in Section 59-1-402 ; and
             256          (ii) beginning on the date the person pays the tax under Title 59, Chapter 12, Sales and
             257      Use Tax Act, for which the person is claiming the refund.
             258          (b) If a person files a claim for a refund of taxes under Subsection (1) more than 180
             259      days after the date the director issues a certification under Section 19-12-303 , interest shall be
             260      added to the amount of the refund the State Tax Commission grants:
             261          (i) at the interest rate prescribed in Section 59-1-402 ; and
             262          (ii) beginning 30 days after the date the person files the claim for a refund.
             263          (4) If a person files a claim for a refund of taxes under Subsection (2), interest shall be
             264      added to the amount of the refund the State Tax Commission grants:
             265          (a) at the interest rate prescribed in Section 59-1-402 ; and
             266          (b) beginning 30 days after the date the person files the claim for the refund.
             267          Section 7. Section 19-12-301 is enacted to read:
             268     
Part 3. Procedures for Certification and Revocation of Certification

             269          19-12-301. Application for certification of a pollution control facility.
             270          (1) The following may apply to the director for certification of a pollution control
             271      facility erected, constructed, installed, or acquired, or to be erected, constructed, installed, or
             272      acquired:
             273          (a) an owner, including a contract purchaser, of a trade or business that includes a
             274      pollution control facility;
             275          (b) a person who, as a lessee or in accordance with an agreement, conducts a trade or


             276      business that includes a pollution control facility; or
             277          (c) a person who operates a pollution control facility in accordance with an agreement
             278      with a person described in Subsection (1)(a) or (b).
             279          (2) A person may file an application under this section after:
             280          (a) the person enters into a firm construction contract with another person; or
             281          (b) construction has commenced.
             282          (3) An application for certification under this section shall:
             283          (a) be in a form the director prescribes; and
             284          (b) contain:
             285          (i) a description of the pollution control facility;
             286          (ii) for a purchase or lease of property, a part, a product, or a service for which a person
             287      seeks to claim a sales and use tax exemption under Section 19-12-201 , a description of the
             288      property, part, product, or service;
             289          (iii) the existing or proposed operation procedure for the pollution control facility; and
             290          (iv) a statement of the purpose served or to be served by the pollution control facility.
             291          (4) The director may require an application to contain additional information the
             292      director finds necessary to determine whether to grant certification under Section 19-12-303 .
             293          (5) This section does not apply to the certification of freestanding pollution control
             294      property.
             295          Section 8. Section 19-12-302 is enacted to read:
             296          19-12-302. Application for certification of freestanding pollution control property.
             297          (1) The following may apply to the director for certification of freestanding pollution
             298      control property:
             299          (a) an owner, including a contract purchaser, of the freestanding pollution control
             300      property;
             301          (b) a person who leases the freestanding pollution control property; or
             302          (c) a person who operates the freestanding pollution control property under an
             303      agreement with a person described in Subsection (1)(a) or (b).
             304          (2) An application for certification under this section shall:
             305          (a) be in a form the director prescribes; and
             306          (b) contain:


             307          (i) a description of the freestanding pollution control property;
             308          (ii) for a purchase or lease of property, a part, a product, or a service for which a person
             309      seeks to claim a sales and use tax exemption under Section 19-12-201 , a description of the
             310      property, part, product, or service;
             311          (iii) the existing or proposed operational procedure for the freestanding pollution
             312      control property; and
             313          (iv) a statement of the purpose served or to be served by the freestanding pollution
             314      control property.
             315          (3) The director may require an application to contain additional information the
             316      director finds necessary to determine whether to grant certification under Section 19-12-303 .
             317          (4) This section does not apply to the certification of a pollution control facility.
             318          Section 9. Section 19-12-303 is enacted to read:
             319          19-12-303. Certification of pollution control facility or freestanding pollution
             320      control property.
             321          (1) The director shall issue a written certification to a person no later than 120 days
             322      after the date the person files an application under Section 19-12-301 or 19-12-302 if the
             323      director determines that:
             324          (a) for a pollution control facility:
             325          (i) the application meets the requirements of Subsection 19-12-301 (3);
             326          (ii) the facility that is the subject of the application is a pollution control facility;
             327          (iii) the person who files the application is a person described in Subsection
             328      19-12-301 (1); and
             329          (iv) the purchases or leases for which the person seeks to claim a sales and use tax
             330      exemption are exempt under Section 19-12-201 ; or
             331          (b) for freestanding pollution control property:
             332          (i) the application meets the requirements of Subsection 19-12-302 (2);
             333          (ii) the property that is the subject of the application is freestanding pollution control
             334      property;
             335          (iii) the person who files the application is a person described in Subsection
             336      19-12-302 (1); and
             337          (iv) the purchases or leases for which the person seeks to claim a sales and use tax


             338      exemption are exempt under Section 19-12-201 .
             339          (2) If the director denies certification under this section to a person who files an
             340      application, the director shall provide a written statement of the reason for the denial to the
             341      person no later than 120 days after the date the person files the application.
             342          (3) The director may not require the certification of:
             343          (a) a replacement of freestanding pollution control property; or
             344          (b) property, a part, a product, or a service described in Subsections 19-12-201 (1)(b)
             345      through (e) used or performed in a repair or replacement related to:
             346          (i) a pollution control facility; or
             347          (ii) freestanding pollution control property.
             348          (4) The director may issue one certification under this section of two or more:
             349          (a) pollution control facilities that constitute an operational unit; or
             350          (b) freestanding pollution control properties that constitute an operational unit.
             351          (5) If the director does not issue or deny a certification under this section within 120
             352      days after the date a person files an application, the director shall issue a certification to the
             353      person at the person's request.
             354          Section 10. Section 19-12-304 is enacted to read:
             355          19-12-304. Revocation of certification.
             356          (1) The director may revoke a certification issued under Section 19-12-303 if the
             357      director determines that:
             358          (a) the certification was obtained by fraud or gross misrepresentation; or
             359          (b) (i) for a pollution control facility, a requirement of Subsection 19-12-303 (1)(a) is
             360      not met; or
             361          (ii) for freestanding pollution control property, a requirement of Subsection
             362      19-12-303 (1)(b) is not met.
             363          (2) A shutdown of a pollution control facility or freestanding pollution control property
             364      due to force majeure, including obsolescence, is not cause to revoke the certification of the
             365      pollution control facility or freestanding pollution control property.
             366          (3) The director shall provide notice of the director's determination to revoke a
             367      certification by issuing a notice of agency action.
             368          (4) The holder of a certification may obtain judicial review of the decision of the


             369      director to revoke the certification.
             370          (5) A revocation under this section is final and conclusive unless the holder of the
             371      certification obtains judicial review in accordance with Subsection (4).
             372          (6) If a revocation is affirmed on appeal, the revocation is final on the date the holder
             373      receives the notice described in Subsection (3).
             374          (7) If a revocation becomes final under this section, the director shall notify the State
             375      Tax Commission of the revocation.
             376          (8) If the director revokes a certification under this section:
             377          (a) the prior sales and use tax exemptions the holder of the certification claimed under
             378      Section 19-12-201 are forfeited; and
             379          (b) the State Tax Commission shall collect taxes not paid by the holder of the
             380      certification:
             381          (i) as a result of claiming the sales and use tax exemptions under Subsection (8)(a); and
             382          (ii) to the extent permitted by Title 59, Chapter 1, Part 14, Assessment, Collections,
             383      and Refunds Act.
             384          Section 11. Section 19-12-305 is enacted to read:
             385          19-12-305. Rulemaking authority.
             386          (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             387      purposes of a certification related to air pollution, the Air Quality Board may make rules
             388      establishing procedures for:
             389          (a) processing and evaluating an application for certification; and
             390          (b) the issuance and revocation of a certification.
             391          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             392      purposes of a certification related to water pollution, the Water Quality Board may make rules
             393      establishing procedures for:
             394          (a) processing and evaluating an application for certification; and
             395          (b) the issuance or revocation of a certification.
             396          Section 12. Section 59-1-1410 is amended to read:
             397           59-1-1410. Action for collection of tax, fee, or charge -- Action for refund or
             398      credit of tax, fee, or charge -- Denial of refund claim under appeal -- Appeal of denied
             399      refund claim.


             400          (1) (a) Except as provided in Subsections (3) through (7) and Sections 59-5-114 ,
             401      59-7-519 , 59-10-536 , and 59-11-113 , the commission shall assess a tax, fee, or charge within
             402      three years after the day on which a person files a return.
             403          (b) Except as provided in Subsections (3) through (7), if the commission does not
             404      assess a tax, fee, or charge within the three-year period provided in Subsection (1)(a), the
             405      commission may not commence a proceeding to collect the tax, fee, or charge.
             406          (2) (a) Except as provided in Subsection (2)(b), for purposes of this part, a return filed
             407      before the last day prescribed by statute or rule for filing the return is considered to be filed on
             408      the last day for filing the return.
             409          (b) A return of withholding tax under Chapter 10, Part 4, Withholding of Tax, is
             410      considered to be filed on April 15 of the succeeding calendar year if the return:
             411          (i) is for a period ending with or within a calendar year; and
             412          (ii) is filed before April 15 of the succeeding calendar year.
             413          (3) The commission may assess a tax, fee, or charge or commence a proceeding for the
             414      collection of a tax, fee, or charge at any time if:
             415          (a) a person:
             416          (i) files a:
             417          (A) false return with intent to evade; or
             418          (B) fraudulent return with intent to evade; or
             419          (ii) fails to file a return; or
             420          (b) the commission estimates the amount of tax, fee, or charge due in accordance with
             421      Subsection 59-1-1406 (2).
             422          (4) The commission may extend the period to make an assessment or to commence a
             423      proceeding to collect a tax, fee, or charge if:
             424          (a) the three-year period under Subsection (1) has not expired; and
             425          (b) the commission and the person sign a written agreement:
             426          (i) authorizing the extension; and
             427          (ii) providing for the length of the extension.
             428          (5) The commission may make an assessment as provided in Subsection (6) if:
             429          (a) the commission delays an audit at the request of a person;
             430          (b) the person subsequently refuses to agree to an extension request by the commission;


             431      and
             432          (c) the three-year period under Subsection (1) expires before the commission
             433      completes the audit.
             434          (6) An assessment under Subsection (5) shall be:
             435          (a) for the time period for which the commission could not make the assessment
             436      because of the expiration of the three-year period; and
             437          (b) in an amount equal to the difference between:
             438          (i) the commission's estimate of the amount of tax, fee, or charge the person would
             439      have been assessed for the time period described in Subsection (6)(a); and
             440          (ii) the amount of tax, fee, or charge the person actually paid for the time period
             441      described in Subsection (6)(a).
             442          (7) If a person erroneously pays a liability, overpays a liability, pays a liability more
             443      than once, or the commission erroneously receives, collects, or computes a liability, the
             444      commission shall:
             445          (a) credit the liability against any amount of liability the person owes; and
             446          (b) refund any balance to:
             447          (i) the person; or
             448          (ii) (A) the person's assign;
             449          (B) the person's personal representative;
             450          (C) the person's successor; or
             451          (D) a person similar to Subsections (7)(b)(ii)(A) through (C) as determined by the
             452      commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
             453      Rulemaking Act.
             454          (8) (a) Except as provided in Subsection (8)(b) or Section [ 19-2-124 ] 19-12-203 ,
             455      59-7-522 , 59-10-529 , or 59-12-110 , the commission may not make a credit or refund unless a
             456      person files a claim with the commission within the later of:
             457          (i) three years from the due date of the return, including the period of any extension of
             458      time provided in statute for filing the return; or
             459          (ii) two years from the date the tax was paid.
             460          (b) The commission shall extend the time period for a person to file a claim under
             461      Subsection (8)(a) if:


             462          (i) the time period described in Subsection (8)(a) has not expired; and
             463          (ii) the commission and the person sign a written agreement:
             464          (A) authorizing the extension; and
             465          (B) providing for the length of the extension.
             466          (9) If the commission denies a claim for a credit or refund, a person may request a
             467      redetermination of the denial by filing a petition or request for agency action with the
             468      commission:
             469          (a) (i) within a 30-day period after the day on which the commission mails a notice of
             470      denial for the claim for credit or refund; or
             471          (ii) within a 90-day period after the day on which the commission mails a notice of
             472      denial for the claim for credit or refund, if the notice is addressed to a person outside the
             473      United States or the District of Columbia; and
             474          (b) in accordance with:
             475          (i) Section 59-1-501 ; and
             476          (ii) Title 63G, Chapter 4, Administrative Procedures Act.
             477          (10) The action of the commission on a person's petition for redetermination of a denial
             478      of a claim for credit or refund is final 30 days after the day on which the commission sends the
             479      commission's decision or order, unless the person seeks judicial review.
             480          Section 13. Section 59-12-104 is amended to read:
             481           59-12-104. Exemptions.
             482          The following sales and uses are exempt from the taxes imposed by this chapter:
             483          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             484      under Chapter 13, Motor and Special Fuel Tax Act;
             485          (2) subject to Section 59-12-104.6 , sales to the state, its institutions, and its political
             486      subdivisions; however, this exemption does not apply to sales of:
             487          (a) construction materials except:
             488          (i) construction materials purchased by or on behalf of institutions of the public
             489      education system as defined in Utah Constitution Article X, Section 2, provided the
             490      construction materials are clearly identified and segregated and installed or converted to real
             491      property which is owned by institutions of the public education system; and
             492          (ii) construction materials purchased by the state, its institutions, or its political


             493      subdivisions which are installed or converted to real property by employees of the state, its
             494      institutions, or its political subdivisions; or
             495          (b) tangible personal property in connection with the construction, operation,
             496      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             497      providing additional project capacity, as defined in Section 11-13-103 ;
             498          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             499          (i) the proceeds of each sale do not exceed $1; and
             500          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             501      the cost of the item described in Subsection (3)(b) as goods consumed; and
             502          (b) Subsection (3)(a) applies to:
             503          (i) food and food ingredients; or
             504          (ii) prepared food;
             505          (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
             506          (i) alcoholic beverages;
             507          (ii) food and food ingredients; or
             508          (iii) prepared food;
             509          (b) sales of tangible personal property or a product transferred electronically:
             510          (i) to a passenger;
             511          (ii) by a commercial airline carrier; and
             512          (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
             513          (c) services related to Subsection (4)(a) or (b);
             514          (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
             515      and equipment:
             516          (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
             517      North American Industry Classification System of the federal Executive Office of the
             518      President, Office of Management and Budget; and
             519          (II) for:
             520          (Aa) installation in an aircraft, including services relating to the installation of parts or
             521      equipment in the aircraft;
             522          (Bb) renovation of an aircraft; or
             523          (Cc) repair of an aircraft; or


             524          (B) for installation in an aircraft operated by a common carrier in interstate or foreign
             525      commerce; or
             526          (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
             527      aircraft operated by a common carrier in interstate or foreign commerce; and
             528          (b) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             529      a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
             530      refund:
             531          (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
             532          (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
             533          (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
             534      the sale prior to filing for the refund;
             535          (iv) for sales and use taxes paid under this chapter on the sale;
             536          (v) in accordance with Section 59-1-1410 ; and
             537          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             538      the person files for the refund on or before September 30, 2011;
             539          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             540      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             541      exhibitor, distributor, or commercial television or radio broadcaster;
             542          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             543      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             544      washing of tangible personal property;
             545          (b) if a seller that sells at the same business location assisted cleaning or washing of
             546      tangible personal property and cleaning or washing of tangible personal property that is not
             547      assisted cleaning or washing of tangible personal property, the exemption described in
             548      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             549      or washing of the tangible personal property; and
             550          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
             551      Utah Administrative Rulemaking Act, the commission may make rules:
             552          (i) governing the circumstances under which sales are at the same business location;
             553      and
             554          (ii) establishing the procedures and requirements for a seller to separately account for


             555      sales of assisted cleaning or washing of tangible personal property;
             556          (8) sales made to or by religious or charitable institutions in the conduct of their regular
             557      religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
             558      fulfilled;
             559          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
             560      this state if the vehicle is:
             561          (a) not registered in this state; and
             562          (b) (i) not used in this state; or
             563          (ii) used in this state:
             564          (A) if the vehicle is not used to conduct business, for a time period that does not
             565      exceed the longer of:
             566          (I) 30 days in any calendar year; or
             567          (II) the time period necessary to transport the vehicle to the borders of this state; or
             568          (B) if the vehicle is used to conduct business, for the time period necessary to transport
             569      the vehicle to the borders of this state;
             570          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             571          (i) the item is intended for human use; and
             572          (ii) (A) a prescription was issued for the item; or
             573          (B) the item was purchased by a hospital or other medical facility; and
             574          (b) (i) Subsection (10)(a) applies to:
             575          (A) a drug;
             576          (B) a syringe; or
             577          (C) a stoma supply; and
             578          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             579      commission may by rule define the terms:
             580          (A) "syringe"; or
             581          (B) "stoma supply";
             582          [(11) sales or use of property, materials, or services used in the construction of or
             583      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;]
             584          (11) purchases or leases exempt under Section 19-12-201 ;
             585          (12) (a) sales of an item described in Subsection (12)(c) served by:


             586          (i) the following if the item described in Subsection (12)(c) is not available to the
             587      general public:
             588          (A) a church; or
             589          (B) a charitable institution;
             590          (ii) an institution of higher education if:
             591          (A) the item described in Subsection (12)(c) is not available to the general public; or
             592          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             593      offered by the institution of higher education; or
             594          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             595          (i) a medical facility; or
             596          (ii) a nursing facility; and
             597          (c) Subsections (12)(a) and (b) apply to:
             598          (i) food and food ingredients;
             599          (ii) prepared food; or
             600          (iii) alcoholic beverages;
             601          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
             602      or a product transferred electronically by a person:
             603          (i) regardless of the number of transactions involving the sale of that tangible personal
             604      property or product transferred electronically by that person; and
             605          (ii) not regularly engaged in the business of selling that type of tangible personal
             606      property or product transferred electronically;
             607          (b) this Subsection (13) does not apply if:
             608          (i) the sale is one of a series of sales of a character to indicate that the person is
             609      regularly engaged in the business of selling that type of tangible personal property or product
             610      transferred electronically;
             611          (ii) the person holds that person out as regularly engaged in the business of selling that
             612      type of tangible personal property or product transferred electronically;
             613          (iii) the person sells an item of tangible personal property or product transferred
             614      electronically that the person purchased as a sale that is exempt under Subsection (25); or
             615          (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
             616      this state in which case the tax is based upon:


             617          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
             618      sold; or
             619          (B) in the absence of a bill of sale or other written evidence of value, the fair market
             620      value of the vehicle or vessel being sold at the time of the sale as determined by the
             621      commission; and
             622          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             623      commission shall make rules establishing the circumstances under which:
             624          (i) a person is regularly engaged in the business of selling a type of tangible personal
             625      property or product transferred electronically;
             626          (ii) a sale of tangible personal property or a product transferred electronically is one of
             627      a series of sales of a character to indicate that a person is regularly engaged in the business of
             628      selling that type of tangible personal property or product transferred electronically; or
             629          (iii) a person holds that person out as regularly engaged in the business of selling a type
             630      of tangible personal property or product transferred electronically;
             631          (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
             632      July 1, 2006, for a purchase or lease by a manufacturing facility except for a cogeneration
             633      facility, of the following:
             634          (i) machinery and equipment that:
             635          (A) are used:
             636          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             637      recycler described in Subsection 59-12-102 (64)(b):
             638          (Aa) in the manufacturing process;
             639          (Bb) to manufacture an item sold as tangible personal property; and
             640          (Cc) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             641      (14)(a)(i)(A)(I) in the state; or
             642          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             643      59-12-102 (64)(b):
             644          (Aa) to process an item sold as tangible personal property; and
             645          (Bb) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             646      (14)(a)(i)(A)(II) in the state; and
             647          (B) have an economic life of three or more years; and


             648          (ii) normal operating repair or replacement parts that:
             649          (A) have an economic life of three or more years; and
             650          (B) are used:
             651          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             652      recycler described in Subsection 59-12-102 (64)(b):
             653          (Aa) in the manufacturing process; and
             654          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(I) in the
             655      state; or
             656          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             657      59-12-102 (64)(b):
             658          (Aa) to process an item sold as tangible personal property; and
             659          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(II) in the
             660      state;
             661          (b) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
             662      manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
             663      of the following:
             664          (i) machinery and equipment that:
             665          (A) are used:
             666          (I) in the manufacturing process;
             667          (II) to manufacture an item sold as tangible personal property; and
             668          (III) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             669      (14)(b) in the state; and
             670          (B) have an economic life of three or more years; and
             671          (ii) normal operating repair or replacement parts that:
             672          (A) are used:
             673          (I) in the manufacturing process; and
             674          (II) in a manufacturing facility described in this Subsection (14)(b) in the state; and
             675          (B) have an economic life of three or more years;
             676          (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
             677      by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
             678      NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for


             679      Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
             680      of the 2002 North American Industry Classification System of the federal Executive Office of
             681      the President, Office of Management and Budget, of the following:
             682          (i) machinery and equipment that:
             683          (A) are used:
             684          (I) (Aa) in the production process, other than the production of real property; or
             685          (Bb) in research and development; and
             686          (II) beginning on July 1, 2009, in an establishment described in this Subsection (14)(c)
             687      in the state; and
             688          (B) have an economic life of three or more years; and
             689          (ii) normal operating repair or replacement parts that:
             690          (A) have an economic life of three or more years; and
             691          (B) are used in:
             692          (I) (Aa) the production process, except for the production of real property; and
             693          (Bb) an establishment described in this Subsection (14)(c) in the state; or
             694          (II) (Aa) research and development; and
             695          (Bb) in an establishment described in this Subsection (14)(c) in the state;
             696          (d) (i) amounts paid or charged for a purchase or lease made on or after July 1, 2010,
             697      but on or before June 30, 2014, by an establishment described in NAICS Code 518112, Web
             698      Search Portals, of the 2002 North American Industry Classification System of the federal
             699      Executive Office of the President, Office of Management and Budget, of the following:
             700          (A) machinery and equipment that:
             701          (I) are used in the operation of the web search portal;
             702          (II) have an economic life of three or more years; and
             703          (III) are used in a new or expanding establishment described in this Subsection (14)(d)
             704      in the state; and
             705          (B) normal operating repair or replacement parts that:
             706          (I) are used in the operation of the web search portal;
             707          (II) have an economic life of three or more years; and
             708          (III) are used in a new or expanding establishment described in this Subsection (14)(d)
             709      in the state; or


             710          (ii) amounts paid or charged for a purchase or lease made on or after July 1, 2014, by
             711      an establishment described in NAICS Code 518112, Web Search Portals, of the 2002 North
             712      American Industry Classification System of the federal Executive Office of the President,
             713      Office of Management and Budget, of the following:
             714          (A) machinery and equipment that:
             715          (I) are used in the operation of the web search portal; and
             716          (II) have an economic life of three or more years; and
             717          (B) normal operating repair or replacement parts that:
             718          (I) are used in the operation of the web search portal; and
             719          (II) have an economic life of three or more years;
             720          (e) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,
             721      Utah Administrative Rulemaking Act, the commission:
             722          (i) shall by rule define the term "establishment"; and
             723          (ii) may by rule define what constitutes:
             724          (A) processing an item sold as tangible personal property;
             725          (B) the production process, except for the production of real property;
             726          (C) research and development; or
             727          (D) a new or expanding establishment described in Subsection (14)(d) in the state; and
             728          (f) on or before October 1, 2011, and every five years after October 1, 2011, the
             729      commission shall:
             730          (i) review the exemptions described in this Subsection (14) and make
             731      recommendations to the Revenue and Taxation Interim Committee concerning whether the
             732      exemptions should be continued, modified, or repealed; and
             733          (ii) include in its report:
             734          (A) an estimate of the cost of the exemptions;
             735          (B) the purpose and effectiveness of the exemptions; and
             736          (C) the benefits of the exemptions to the state;
             737          (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
             738          (i) tooling;
             739          (ii) special tooling;
             740          (iii) support equipment;


             741          (iv) special test equipment; or
             742          (v) parts used in the repairs or renovations of tooling or equipment described in
             743      Subsections (15)(a)(i) through (iv); and
             744          (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
             745          (i) the tooling, equipment, or parts are used or consumed exclusively in the
             746      performance of any aerospace or electronics industry contract with the United States
             747      government or any subcontract under that contract; and
             748          (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
             749      title to the tooling, equipment, or parts is vested in the United States government as evidenced
             750      by:
             751          (A) a government identification tag placed on the tooling, equipment, or parts; or
             752          (B) listing on a government-approved property record if placing a government
             753      identification tag on the tooling, equipment, or parts is impractical;
             754          (16) sales of newspapers or newspaper subscriptions;
             755          (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
             756      product transferred electronically traded in as full or part payment of the purchase price, except
             757      that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
             758      trade-ins are limited to other vehicles only, and the tax is based upon:
             759          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
             760      vehicle being traded in; or
             761          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
             762      fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
             763      commission; and
             764          (b) Subsection (17)(a) does not apply to the following items of tangible personal
             765      property or products transferred electronically traded in as full or part payment of the purchase
             766      price:
             767          (i) money;
             768          (ii) electricity;
             769          (iii) water;
             770          (iv) gas; or
             771          (v) steam;


             772          (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
             773      or a product transferred electronically used or consumed primarily and directly in farming
             774      operations, regardless of whether the tangible personal property or product transferred
             775      electronically:
             776          (A) becomes part of real estate; or
             777          (B) is installed by a:
             778          (I) farmer;
             779          (II) contractor; or
             780          (III) subcontractor; or
             781          (ii) sales of parts used in the repairs or renovations of tangible personal property or a
             782      product transferred electronically if the tangible personal property or product transferred
             783      electronically is exempt under Subsection (18)(a)(i); and
             784          (b) amounts paid or charged for the following are subject to the taxes imposed by this
             785      chapter:
             786          (i) (A) subject to Subsection (18)(b)(i)(B), the following if used in a manner that is
             787      incidental to farming:
             788          (I) machinery;
             789          (II) equipment;
             790          (III) materials; or
             791          (IV) supplies; and
             792          (B) tangible personal property that is considered to be used in a manner that is
             793      incidental to farming includes:
             794          (I) hand tools; or
             795          (II) maintenance and janitorial equipment and supplies;
             796          (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
             797      transferred electronically if the tangible personal property or product transferred electronically
             798      is used in an activity other than farming; and
             799          (B) tangible personal property or a product transferred electronically that is considered
             800      to be used in an activity other than farming includes:
             801          (I) office equipment and supplies; or
             802          (II) equipment and supplies used in:


             803          (Aa) the sale or distribution of farm products;
             804          (Bb) research; or
             805          (Cc) transportation; or
             806          (iii) a vehicle required to be registered by the laws of this state during the period
             807      ending two years after the date of the vehicle's purchase;
             808          (19) sales of hay;
             809          (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
             810      garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
             811      garden, farm, or other agricultural produce is sold by:
             812          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
             813      agricultural produce;
             814          (b) an employee of the producer described in Subsection (20)(a); or
             815          (c) a member of the immediate family of the producer described in Subsection (20)(a);
             816          (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
             817      under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
             818          (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
             819      nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
             820      wholesaler, or retailer for use in packaging tangible personal property to be sold by that
             821      manufacturer, processor, wholesaler, or retailer;
             822          (23) a product stored in the state for resale;
             823          (24) (a) purchases of a product if:
             824          (i) the product is:
             825          (A) purchased outside of this state;
             826          (B) brought into this state:
             827          (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
             828          (II) by a nonresident person who is not living or working in this state at the time of the
             829      purchase;
             830          (C) used for the personal use or enjoyment of the nonresident person described in
             831      Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
             832          (D) not used in conducting business in this state; and
             833          (ii) for:


             834          (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
             835      the product for a purpose for which the product is designed occurs outside of this state;
             836          (B) a boat, the boat is registered outside of this state; or
             837          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             838      outside of this state;
             839          (b) the exemption provided for in Subsection (24)(a) does not apply to:
             840          (i) a lease or rental of a product; or
             841          (ii) a sale of a vehicle exempt under Subsection (33); and
             842          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             843      purposes of Subsection (24)(a), the commission may by rule define what constitutes the
             844      following:
             845          (i) conducting business in this state if that phrase has the same meaning in this
             846      Subsection (24) as in Subsection (63);
             847          (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
             848      as in Subsection (63); or
             849          (iii) a purpose for which a product is designed if that phrase has the same meaning in
             850      this Subsection (24) as in Subsection (63);
             851          (25) a product purchased for resale in this state, in the regular course of business, either
             852      in its original form or as an ingredient or component part of a manufactured or compounded
             853      product;
             854          (26) a product upon which a sales or use tax was paid to some other state, or one of its
             855      subdivisions, except that the state shall be paid any difference between the tax paid and the tax
             856      imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
             857      the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
             858      Act;
             859          (27) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a
             860      person for use in compounding a service taxable under the subsections;
             861          (28) purchases made in accordance with the special supplemental nutrition program for
             862      women, infants, and children established in 42 U.S.C. Sec. 1786;
             863          (29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
             864      refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens


             865      of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification
             866      Manual of the federal Executive Office of the President, Office of Management and Budget;
             867          (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
             868      Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
             869          (a) not registered in this state; and
             870          (b) (i) not used in this state; or
             871          (ii) used in this state:
             872          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
             873      time period that does not exceed the longer of:
             874          (I) 30 days in any calendar year; or
             875          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
             876      the borders of this state; or
             877          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
             878      period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
             879      state;
             880          (31) sales of aircraft manufactured in Utah;
             881          (32) amounts paid for the purchase of telecommunications service for purposes of
             882      providing telecommunications service;
             883          (33) sales, leases, or uses of the following:
             884          (a) a vehicle by an authorized carrier; or
             885          (b) tangible personal property that is installed on a vehicle:
             886          (i) sold or leased to or used by an authorized carrier; and
             887          (ii) before the vehicle is placed in service for the first time;
             888          (34) (a) 45% of the sales price of any new manufactured home; and
             889          (b) 100% of the sales price of any used manufactured home;
             890          (35) sales relating to schools and fundraising sales;
             891          (36) sales or rentals of durable medical equipment if:
             892          (a) a person presents a prescription for the durable medical equipment; and
             893          (b) the durable medical equipment is used for home use only;
             894          (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
             895      Section 72-11-102 ; and


             896          (b) the commission shall by rule determine the method for calculating sales exempt
             897      under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
             898          (38) sales to a ski resort of:
             899          (a) snowmaking equipment;
             900          (b) ski slope grooming equipment;
             901          (c) passenger ropeways as defined in Section 72-11-102 ; or
             902          (d) parts used in the repairs or renovations of equipment or passenger ropeways
             903      described in Subsections (38)(a) through (c);
             904          (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
             905          (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
             906      amusement, entertainment, or recreation an unassisted amusement device as defined in Section
             907      59-12-102 ;
             908          (b) if a seller that sells or rents at the same business location the right to use or operate
             909      for amusement, entertainment, or recreation one or more unassisted amusement devices and
             910      one or more assisted amusement devices, the exemption described in Subsection (40)(a)
             911      applies if the seller separately accounts for the sales or rentals of the right to use or operate for
             912      amusement, entertainment, or recreation for the assisted amusement devices; and
             913          (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
             914      Utah Administrative Rulemaking Act, the commission may make rules:
             915          (i) governing the circumstances under which sales are at the same business location;
             916      and
             917          (ii) establishing the procedures and requirements for a seller to separately account for
             918      the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
             919      assisted amusement devices;
             920          (41) (a) sales of photocopies by:
             921          (i) a governmental entity; or
             922          (ii) an entity within the state system of public education, including:
             923          (A) a school; or
             924          (B) the State Board of Education; or
             925          (b) sales of publications by a governmental entity;
             926          (42) amounts paid for admission to an athletic event at an institution of higher


             927      education that is subject to the provisions of Title IX of the Education Amendments of 1972,
             928      20 U.S.C. Sec. 1681 et seq.;
             929          (43) (a) sales made to or by:
             930          (i) an area agency on aging; or
             931          (ii) a senior citizen center owned by a county, city, or town; or
             932          (b) sales made by a senior citizen center that contracts with an area agency on aging;
             933          (44) sales or leases of semiconductor fabricating, processing, research, or development
             934      materials regardless of whether the semiconductor fabricating, processing, research, or
             935      development materials:
             936          (a) actually come into contact with a semiconductor; or
             937          (b) ultimately become incorporated into real property;
             938          (45) an amount paid by or charged to a purchaser for accommodations and services
             939      described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under Section
             940      59-12-104.2 ;
             941          (46) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
             942      sports event registration certificate in accordance with Section 41-3-306 for the event period
             943      specified on the temporary sports event registration certificate;
             944          (47) (a) sales or uses of electricity, if the sales or uses are made under a tariff adopted
             945      by the Public Service Commission of Utah only for purchase of electricity produced from a
             946      new alternative energy source, as designated in the tariff by the Public Service Commission of
             947      Utah; and
             948          (b) the exemption under Subsection (47)(a) applies to the portion of the tariff rate a
             949      customer pays under the tariff described in Subsection (47)(a) that exceeds the tariff rate under
             950      the tariff described in Subsection (47)(a) that the customer would have paid absent the tariff;
             951          (48) sales or rentals of mobility enhancing equipment if a person presents a
             952      prescription for the mobility enhancing equipment;
             953          (49) sales of water in a:
             954          (a) pipe;
             955          (b) conduit;
             956          (c) ditch; or
             957          (d) reservoir;


             958          (50) sales of currency or coins that constitute legal tender of a state, the United States,
             959      or a foreign nation;
             960          (51) (a) sales of an item described in Subsection (51)(b) if the item:
             961          (i) does not constitute legal tender of a state, the United States, or a foreign nation; and
             962          (ii) has a gold, silver, or platinum content of 50% or more; and
             963          (b) Subsection (51)(a) applies to a gold, silver, or platinum:
             964          (i) ingot;
             965          (ii) bar;
             966          (iii) medallion; or
             967          (iv) decorative coin;
             968          (52) amounts paid on a sale-leaseback transaction;
             969          (53) sales of a prosthetic device:
             970          (a) for use on or in a human; and
             971          (b) (i) for which a prescription is required; or
             972          (ii) if the prosthetic device is purchased by a hospital or other medical facility;
             973          (54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
             974      machinery or equipment by an establishment described in Subsection (54)(c) if the machinery
             975      or equipment is primarily used in the production or postproduction of the following media for
             976      commercial distribution:
             977          (i) a motion picture;
             978          (ii) a television program;
             979          (iii) a movie made for television;
             980          (iv) a music video;
             981          (v) a commercial;
             982          (vi) a documentary; or
             983          (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
             984      commission by administrative rule made in accordance with Subsection (54)(d); or
             985          (b) purchases, leases, or rentals of machinery or equipment by an establishment
             986      described in Subsection (54)(c) that is used for the production or postproduction of the
             987      following are subject to the taxes imposed by this chapter:
             988          (i) a live musical performance;


             989          (ii) a live news program; or
             990          (iii) a live sporting event;
             991          (c) the following establishments listed in the 1997 North American Industry
             992      Classification System of the federal Executive Office of the President, Office of Management
             993      and Budget, apply to Subsections (54)(a) and (b):
             994          (i) NAICS Code 512110; or
             995          (ii) NAICS Code 51219; and
             996          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             997      commission may by rule:
             998          (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
             999      or
             1000          (ii) define:
             1001          (A) "commercial distribution";
             1002          (B) "live musical performance";
             1003          (C) "live news program"; or
             1004          (D) "live sporting event";
             1005          (55) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
             1006      on or before June 30, 2027, of tangible personal property that:
             1007          (i) is leased or purchased for or by a facility that:
             1008          (A) is an alternative energy electricity production facility;
             1009          (B) is located in the state; and
             1010          (C) (I) becomes operational on or after July 1, 2004; or
             1011          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             1012      2004, as a result of the use of the tangible personal property;
             1013          (ii) has an economic life of five or more years; and
             1014          (iii) is used to make the facility or the increase in capacity of the facility described in
             1015      Subsection (55)(a)(i) operational up to the point of interconnection with an existing
             1016      transmission grid including:
             1017          (A) a wind turbine;
             1018          (B) generating equipment;
             1019          (C) a control and monitoring system;


             1020          (D) a power line;
             1021          (E) substation equipment;
             1022          (F) lighting;
             1023          (G) fencing;
             1024          (H) pipes; or
             1025          (I) other equipment used for locating a power line or pole; and
             1026          (b) this Subsection (55) does not apply to:
             1027          (i) tangible personal property used in construction of:
             1028          (A) a new alternative energy electricity production facility; or
             1029          (B) the increase in the capacity of an alternative energy electricity production facility;
             1030          (ii) contracted services required for construction and routine maintenance activities;
             1031      and
             1032          (iii) unless the tangible personal property is used or acquired for an increase in capacity
             1033      of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal property used or
             1034      acquired after:
             1035          (A) the alternative energy electricity production facility described in Subsection
             1036      (55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
             1037          (B) the increased capacity described in Subsection (55)(a)(i) is operational as described
             1038      in Subsection (55)(a)(iii);
             1039          (56) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
             1040      on or before June 30, 2027, of tangible personal property that:
             1041          (i) is leased or purchased for or by a facility that:
             1042          (A) is a waste energy production facility;
             1043          (B) is located in the state; and
             1044          (C) (I) becomes operational on or after July 1, 2004; or
             1045          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             1046      2004, as a result of the use of the tangible personal property;
             1047          (ii) has an economic life of five or more years; and
             1048          (iii) is used to make the facility or the increase in capacity of the facility described in
             1049      Subsection (56)(a)(i) operational up to the point of interconnection with an existing
             1050      transmission grid including:


             1051          (A) generating equipment;
             1052          (B) a control and monitoring system;
             1053          (C) a power line;
             1054          (D) substation equipment;
             1055          (E) lighting;
             1056          (F) fencing;
             1057          (G) pipes; or
             1058          (H) other equipment used for locating a power line or pole; and
             1059          (b) this Subsection (56) does not apply to:
             1060          (i) tangible personal property used in construction of:
             1061          (A) a new waste energy facility; or
             1062          (B) the increase in the capacity of a waste energy facility;
             1063          (ii) contracted services required for construction and routine maintenance activities;
             1064      and
             1065          (iii) unless the tangible personal property is used or acquired for an increase in capacity
             1066      described in Subsection (56)(a)(i)(C)(II), tangible personal property used or acquired after:
             1067          (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
             1068      described in Subsection (56)(a)(iii); or
             1069          (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
             1070      in Subsection (56)(a)(iii);
             1071          (57) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
             1072      or before June 30, 2027, of tangible personal property that:
             1073          (i) is leased or purchased for or by a facility that:
             1074          (A) is located in the state;
             1075          (B) produces fuel from alternative energy, including:
             1076          (I) methanol; or
             1077          (II) ethanol; and
             1078          (C) (I) becomes operational on or after July 1, 2004; or
             1079          (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as
             1080      a result of the installation of the tangible personal property;
             1081          (ii) has an economic life of five or more years; and


             1082          (iii) is installed on the facility described in Subsection (57)(a)(i);
             1083          (b) this Subsection (57) does not apply to:
             1084          (i) tangible personal property used in construction of:
             1085          (A) a new facility described in Subsection (57)(a)(i); or
             1086          (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
             1087          (ii) contracted services required for construction and routine maintenance activities;
             1088      and
             1089          (iii) unless the tangible personal property is used or acquired for an increase in capacity
             1090      described in Subsection (57)(a)(i)(C)(II), tangible personal property used or acquired after:
             1091          (A) the facility described in Subsection (57)(a)(i) is operational; or
             1092          (B) the increased capacity described in Subsection (57)(a)(i) is operational;
             1093          (58) (a) subject to Subsection (58)(b) or (c), sales of tangible personal property or a
             1094      product transferred electronically to a person within this state if that tangible personal property
             1095      or product transferred electronically is subsequently shipped outside the state and incorporated
             1096      pursuant to contract into and becomes a part of real property located outside of this state;
             1097          (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
             1098      state or political entity to which the tangible personal property is shipped imposes a sales, use,
             1099      gross receipts, or other similar transaction excise tax on the transaction against which the other
             1100      state or political entity allows a credit for sales and use taxes imposed by this chapter; and
             1101          (c) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             1102      a person may claim the exemption allowed by this Subsection (58) for a sale by filing for a
             1103      refund:
             1104          (i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
             1105          (ii) as if this Subsection (58) as in effect on July 1, 2008, were in effect on the day on
             1106      which the sale is made;
             1107          (iii) if the person did not claim the exemption allowed by this Subsection (58) for the
             1108      sale prior to filing for the refund;
             1109          (iv) for sales and use taxes paid under this chapter on the sale;
             1110          (v) in accordance with Section 59-1-1410 ; and
             1111          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             1112      the person files for the refund on or before June 30, 2011;


             1113          (59) purchases:
             1114          (a) of one or more of the following items in printed or electronic format:
             1115          (i) a list containing information that includes one or more:
             1116          (A) names; or
             1117          (B) addresses; or
             1118          (ii) a database containing information that includes one or more:
             1119          (A) names; or
             1120          (B) addresses; and
             1121          (b) used to send direct mail;
             1122          (60) redemptions or repurchases of a product by a person if that product was:
             1123          (a) delivered to a pawnbroker as part of a pawn transaction; and
             1124          (b) redeemed or repurchased within the time period established in a written agreement
             1125      between the person and the pawnbroker for redeeming or repurchasing the product;
             1126          (61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
             1127          (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
             1128      and
             1129          (ii) has a useful economic life of one or more years; and
             1130          (b) the following apply to Subsection (61)(a):
             1131          (i) telecommunications enabling or facilitating equipment, machinery, or software;
             1132          (ii) telecommunications equipment, machinery, or software required for 911 service;
             1133          (iii) telecommunications maintenance or repair equipment, machinery, or software;
             1134          (iv) telecommunications switching or routing equipment, machinery, or software; or
             1135          (v) telecommunications transmission equipment, machinery, or software;
             1136          (62) (a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
             1137      personal property or a product transferred electronically that are used in the research and
             1138      development of alternative energy technology; and
             1139          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1140      commission may, for purposes of Subsection (62)(a), make rules defining what constitutes
             1141      purchases of tangible personal property or a product transferred electronically that are used in
             1142      the research and development of alternative energy technology;
             1143          (63) (a) purchases of tangible personal property or a product transferred electronically


             1144      if:
             1145          (i) the tangible personal property or product transferred electronically is:
             1146          (A) purchased outside of this state;
             1147          (B) brought into this state at any time after the purchase described in Subsection
             1148      (63)(a)(i)(A); and
             1149          (C) used in conducting business in this state; and
             1150          (ii) for:
             1151          (A) tangible personal property or a product transferred electronically other than the
             1152      tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property
             1153      for a purpose for which the property is designed occurs outside of this state; or
             1154          (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             1155      outside of this state;
             1156          (b) the exemption provided for in Subsection (63)(a) does not apply to:
             1157          (i) a lease or rental of tangible personal property or a product transferred electronically;
             1158      or
             1159          (ii) a sale of a vehicle exempt under Subsection (33); and
             1160          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             1161      purposes of Subsection (63)(a), the commission may by rule define what constitutes the
             1162      following:
             1163          (i) conducting business in this state if that phrase has the same meaning in this
             1164      Subsection (63) as in Subsection (24);
             1165          (ii) the first use of tangible personal property or a product transferred electronically if
             1166      that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
             1167          (iii) a purpose for which tangible personal property or a product transferred
             1168      electronically is designed if that phrase has the same meaning in this Subsection (63) as in
             1169      Subsection (24);
             1170          (64) sales of disposable home medical equipment or supplies if:
             1171          (a) a person presents a prescription for the disposable home medical equipment or
             1172      supplies;
             1173          (b) the disposable home medical equipment or supplies are used exclusively by the
             1174      person to whom the prescription described in Subsection (64)(a) is issued; and


             1175          (c) the disposable home medical equipment and supplies are listed as eligible for
             1176      payment under:
             1177          (i) Title XVIII, federal Social Security Act; or
             1178          (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
             1179          (65) sales:
             1180          (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
             1181      District Act; or
             1182          (b) of tangible personal property to a subcontractor of a public transit district, if the
             1183      tangible personal property is:
             1184          (i) clearly identified; and
             1185          (ii) installed or converted to real property owned by the public transit district;
             1186          (66) sales of construction materials:
             1187          (a) purchased on or after July 1, 2010;
             1188          (b) purchased by, on behalf of, or for the benefit of an international airport:
             1189          (i) located within a county of the first class; and
             1190          (ii) that has a United States customs office on its premises; and
             1191          (c) if the construction materials are:
             1192          (i) clearly identified;
             1193          (ii) segregated; and
             1194          (iii) installed or converted to real property:
             1195          (A) owned or operated by the international airport described in Subsection (66)(b); and
             1196          (B) located at the international airport described in Subsection (66)(b);
             1197          (67) sales of construction materials:
             1198          (a) purchased on or after July 1, 2008;
             1199          (b) purchased by, on behalf of, or for the benefit of a new airport:
             1200          (i) located within a county of the second class; and
             1201          (ii) that is owned or operated by a city in which an airline as defined in Section
             1202      59-2-102 is headquartered; and
             1203          (c) if the construction materials are:
             1204          (i) clearly identified;
             1205          (ii) segregated; and


             1206          (iii) installed or converted to real property:
             1207          (A) owned or operated by the new airport described in Subsection (67)(b);
             1208          (B) located at the new airport described in Subsection (67)(b); and
             1209          (C) as part of the construction of the new airport described in Subsection (67)(b);
             1210          (68) sales of fuel to a common carrier that is a railroad for use in a locomotive engine;
             1211          (69) purchases and sales described in Section 63H-4-111 ;
             1212          (70) (a) sales of tangible personal property to an aircraft maintenance, repair, and
             1213      overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
             1214      a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
             1215      lists a state or country other than this state as the location of registry of the fixed wing turbine
             1216      powered aircraft; or
             1217          (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
             1218      provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
             1219      a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
             1220      lists a state or country other than this state as the location of registry of the fixed wing turbine
             1221      powered aircraft;
             1222          (71) subject to Section 59-12-104.4 , sales of a textbook for a higher education course:
             1223          (a) to a person admitted to an institution of higher education; and
             1224          (b) by a seller, other than a bookstore owned by an institution of higher education, if
             1225      51% or more of that seller's sales revenue for the previous calendar quarter are sales of a
             1226      textbook for a higher education course;
             1227          (72) a license fee or tax a municipality imposes in accordance with Subsection
             1228      10-1-203 (5) on a purchaser from a business for which the municipality provides an enhanced
             1229      level of municipal services;
             1230          (73) amounts paid or charged for construction materials used in the construction of a
             1231      new or expanding life science research and development facility in the state, if the construction
             1232      materials are:
             1233          (a) clearly identified;
             1234          (b) segregated; and
             1235          (c) installed or converted to real property;
             1236          (74) amounts paid or charged for:


             1237          (a) a purchase or lease of machinery and equipment that:
             1238          (i) are used in performing qualified research:
             1239          (A) as defined in Section 59-7-612 ;
             1240          (B) in the state; and
             1241          (C) with respect to which the purchaser pays or incurs a qualified research expense as
             1242      defined in Section 59-7-612 ; and
             1243          (ii) have an economic life of three or more years; and
             1244          (b) normal operating repair or replacement parts:
             1245          (i) for the machinery and equipment described in Subsection (74)(a); and
             1246          (ii) that have an economic life of three or more years;
             1247          (75) a sale or lease of tangible personal property used in the preparation of prepared
             1248      food if:
             1249          (a) for a sale:
             1250          (i) the ownership of the seller and the ownership of the purchaser are identical; and
             1251          (ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
             1252      tangible personal property prior to making the sale; or
             1253          (b) for a lease:
             1254          (i) the ownership of the lessor and the ownership of the lessee are identical; and
             1255          (ii) the lessor or the lessee paid a tax under this chapter on the purchase of that tangible
             1256      personal property prior to making the lease;
             1257          (76) (a) purchases of machinery or equipment if:
             1258          (i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
             1259      Gambling, and Recreation Industries, of the 2012 North American Industry Classification
             1260      System of the federal Executive Office of the President, Office of Management and Budget;
             1261          (ii) the machinery or equipment:
             1262          (A) has an economic life of three or more years; and
             1263          (B) is used by one or more persons who pay admission or user fees described in
             1264      Subsection 59-12-103 (1)(f) to the purchaser of the machinery and equipment; and
             1265          (iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
             1266          (A) amounts paid or charged as admission or user fees described in Subsection
             1267      59-12-103 (1)(f); and


             1268          (B) subject to taxation under this chapter;
             1269          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1270      commission may make rules for verifying that 51% of a purchaser's sales revenue for the
             1271      previous calendar quarter is:
             1272          (i) amounts paid or charged as admission or user fees described in Subsection
             1273      59-12-103 (1)(f); and
             1274          (ii) subject to taxation under this chapter; and
             1275          (c) on or before the November 2018 interim meeting, and every five years after the
             1276      November 2018 interim meeting, the commission shall review the exemption provided in this
             1277      Subsection (76) and report to the Revenue and Taxation Interim Committee on:
             1278          (i) the revenue lost to the state and local taxing jurisdictions as a result of the
             1279      exemption;
             1280          (ii) the purpose and effectiveness of the exemption; and
             1281          (iii) whether the exemption benefits the state;
             1282          (77) purchases of a short-term lodging consumable by a business that provides
             1283      accommodations and services described in Subsection 59-12-103 (1)(i);
             1284          (78) amounts paid or charged to access a database:
             1285          (a) if the primary purpose for accessing the database is to view or retrieve information
             1286      from the database; and
             1287          (b) not including amounts paid or charged for a:
             1288          (i) digital audiowork;
             1289          (ii) digital audio-visual work; or
             1290          (iii) digital book;
             1291          (79) amounts paid or charged for a purchase or lease made by an electronic financial
             1292      payment service, of:
             1293          (a) machinery and equipment that:
             1294          (i) are used in the operation of the electronic financial payment service; and
             1295          (ii) have an economic life of three or more years; and
             1296          (b) normal operating repair or replacement parts that:
             1297          (i) are used in the operation of the electronic financial payment service; and
             1298          (ii) have an economic life of three or more years; and


             1299          (80) beginning on April 1, 2013, sales of a fuel cell as defined in Section 54-15-102 .
             1300          Section 14. Repealer.
             1301          This bill repeals:
             1302          Section 19-2-123 , Tax relief to encourage investment in facilities -- Sales and use
             1303      tax exemption.
             1304          Section 19-2-124 , Application for certification of pollution control facility --
             1305      Refunds -- Interest.
             1306          Section 19-2-125 , Action on application for certification.
             1307          Section 19-2-126 , Revocation of certification -- Grounds -- Procedure.
             1308          Section 19-2-127 , Rules for administering certification for tax relief.




Legislative Review Note
    as of 11-21-13 10:40 AM


Office of Legislative Research and General Counsel


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