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H.B. 59 Enrolled

             1     

NATIONAL GUARD PROGRAM AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Val L. Peterson

             5     
Senate Sponsor: Curtis S. Bramble

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill establishes the Utah National Guard Morale, Welfare, and Recreation
             10      Program.
             11      Highlighted Provisions:
             12          This bill:
             13          .    authorizes the establishment of a state Morale, Welfare, and Recreation Program for
             14      the Utah National Guard;
             15          .    defines terms;
             16          .    specifies who is entitled to use the program;
             17          .    requires the adjutant general to set requirements and parameters for the program;
             18          .    allows the use of State Armory Board properties for the program; and
             19          .    creates an expendable special revenue fund for money generated by the program.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          This bill takes effect on July 1, 2014.
             24      Utah Code Sections Affected:
             25      AMENDS:
             26           59-12-104 , as last amended by Laws of Utah 2013, Chapters 82, 223, 229, 234, and 441
             27      ENACTS:
             28           39-9-101 , Utah Code Annotated 1953
             29           39-9-102 , Utah Code Annotated 1953


             30           39-9-103 , Utah Code Annotated 1953
             31           39-9-104 , Utah Code Annotated 1953
             32           39-9-105 , Utah Code Annotated 1953
             33           39-9-106 , Utah Code Annotated 1953
             34           39-9-107 , Utah Code Annotated 1953
             35     
             36      Be it enacted by the Legislature of the state of Utah:
             37          Section 1. Section 39-9-101 is enacted to read:
             38     
CHAPTER 9. STATE MORALE, WELFARE, AND RECREATION PROGRAM

             39          39-9-101. Title -- Program established.
             40          (1) This chapter is known as the "State Morale, Welfare, and Recreation Program."
             41          (2) The adjutant general is authorized to establish a Utah National Guard Morale,
             42      Welfare, and Recreation Program to serve members of the military, eligible dependents, and
             43      others as set out in Section 39-9-103 .
             44          Section 2. Section 39-9-102 is enacted to read:
             45          39-9-102. Definitions.
             46          For purposes of this chapter:
             47          (1) "Dependent" means the spouse or children of a person eligible to use the program
             48      and facilities in accordance with Section 39-9-103 .
             49          (2) "MWR" means morale, welfare, and recreation.
             50          (3) "MWR facility" means any Utah National Guard facility located on a Department
             51      of Defense or Utah National Guard installation or on property controlled by the Department of
             52      Defense or the Utah National Guard, the purpose of which is to enhance MWR for authorized
             53      patrons.
             54          Section 3. Section 39-9-103 is enacted to read:
             55          39-9-103. Eligibility and facilities.
             56          (1) Use of the MWR program and facilities is limited to:
             57          (a) active and reserve component members of the Utah National Guard and armed


             58      forces of the United States;
             59          (b) persons retired from the armed forces of the United States;
             60          (c) civilian employees of the Utah National Guard;
             61          (d) dependents of authorized persons in Subsections (1)(a) through (c);
             62          (e) contracted employees of the Utah National Guard while working on-site or
             63      conducting business on National Guard property; and
             64          (f) sponsored persons when personally accompanied by a sponsor who is an eligible
             65      patron as described in this section.
             66          (2) MWR facilities include any of the following, even if the shop, building, or parcel is
             67      only partially used for MWR purposes:
             68          (a) post or base exchange;
             69          (b) canteen or service club;
             70          (c) barber shop;
             71          (d) fitness center;
             72          (e) snack bar;
             73          (f) restaurant;
             74          (g) billeting operation;
             75          (h) laundry facility;
             76          (i) range;
             77          (j) swimming pool; or
             78          (k) any other shop, building, or parcel that meets the definition of MWR facility in
             79      Section 39-9-102 .
             80          (3) The adjutant general shall, by regulation, determine specific use priorities when
             81      MWR facilities cannot accommodate all authorized patrons.
             82          Section 4. Section 39-9-104 is enacted to read:
             83          39-9-104. Administration of MWR Program.
             84          (1) The adjutant general may authorize the program to:
             85          (a) contract for goods and services;


             86          (b) hire employees; and
             87          (c) receive funds from patrons in exchange for goods or services provided within the
             88      program.
             89          (2) The adjutant general is authorized to establish MWR facilities throughout the state
             90      that, in the adjutant general's judgment, are necessary for military purposes.
             91          (3) The adjutant general shall promulgate regulations to govern the operation of the
             92      program.
             93          (4) The adjutant general may appoint a director for the program.
             94          (5) The adjutant general shall establish a system of bookkeeping, accounting, and
             95      auditing procedures for the proper handling of funds derived from the program's operations.
             96          (6) The program may use State Armory Board-controlled properties, provided:
             97          (a) the use incurs no more than nominal cost to the state; or
             98          (b) any costs to the state above nominal associated with the use are reimbursed to the
             99      state by the program.
             100          Section 5. Section 39-9-105 is enacted to read:
             101          39-9-105. National Guard MWR Fund -- Proceeds.
             102          (1) There is created an expendable special revenue fund known as the National Guard
             103      MWR Fund.
             104          (2) The fund shall consist of:
             105          (a) all proceeds collected under this chapter;
             106          (b) donations made to the National Guard MWR Program; and
             107          (c) any appropriations to the program by the Legislature.
             108          (3) Money from the fund shall be used for the enhancement of morale, welfare, and
             109      recreation, and the administration of the program under this chapter, including paying the costs
             110      of:
             111          (a) salaries of program employees;
             112          (b) public liability insurance, when needed;
             113          (c) the adjutant general's Outreach Program;


             114          (d) the State Partnership Program; and
             115          (e) any other expenses considered necessary in furtherance of the program by the
             116      adjutant general or the adjutant general's designee.
             117          Section 6. Section 39-9-106 is enacted to read:
             118          39-9-106. Risk management.
             119          (1) The program shall be eligible to participate in the state risk management pool.
             120          (2) The program shall procure separate insurance policies to cover liability associated
             121      with activities and operations not otherwise covered in the state risk management pool or by
             122      the Division of Risk Management.
             123          Section 7. Section 39-9-107 is enacted to read:
             124          39-9-107. Equipment rentals and sales of food and beverage.
             125          Equipment rental and food and beverage sales shall be made in accordance with
             126      applicable state and federal law.
             127          Section 8. Section 59-12-104 is amended to read:
             128           59-12-104. Exemptions.
             129          The following sales and uses are exempt from the taxes imposed by this chapter:
             130          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             131      under Chapter 13, Motor and Special Fuel Tax Act;
             132          (2) subject to Section 59-12-104.6 , sales to the state, its institutions, and its political
             133      subdivisions; however, this exemption does not apply to sales of:
             134          (a) construction materials except:
             135          (i) construction materials purchased by or on behalf of institutions of the public
             136      education system as defined in Utah Constitution Article X, Section 2, provided the
             137      construction materials are clearly identified and segregated and installed or converted to real
             138      property which is owned by institutions of the public education system; and
             139          (ii) construction materials purchased by the state, its institutions, or its political
             140      subdivisions which are installed or converted to real property by employees of the state, its
             141      institutions, or its political subdivisions; or


             142          (b) tangible personal property in connection with the construction, operation,
             143      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             144      providing additional project capacity, as defined in Section 11-13-103 ;
             145          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             146          (i) the proceeds of each sale do not exceed $1; and
             147          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             148      the cost of the item described in Subsection (3)(b) as goods consumed; and
             149          (b) Subsection (3)(a) applies to:
             150          (i) food and food ingredients; or
             151          (ii) prepared food;
             152          (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
             153          (i) alcoholic beverages;
             154          (ii) food and food ingredients; or
             155          (iii) prepared food;
             156          (b) sales of tangible personal property or a product transferred electronically:
             157          (i) to a passenger;
             158          (ii) by a commercial airline carrier; and
             159          (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
             160          (c) services related to Subsection (4)(a) or (b);
             161          (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
             162      and equipment:
             163          (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
             164      North American Industry Classification System of the federal Executive Office of the
             165      President, Office of Management and Budget; and
             166          (II) for:
             167          (Aa) installation in an aircraft, including services relating to the installation of parts or
             168      equipment in the aircraft;
             169          (Bb) renovation of an aircraft; or


             170          (Cc) repair of an aircraft; or
             171          (B) for installation in an aircraft operated by a common carrier in interstate or foreign
             172      commerce; or
             173          (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
             174      aircraft operated by a common carrier in interstate or foreign commerce; and
             175          (b) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             176      a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
             177      refund:
             178          (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
             179          (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
             180          (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
             181      the sale prior to filing for the refund;
             182          (iv) for sales and use taxes paid under this chapter on the sale;
             183          (v) in accordance with Section 59-1-1410 ; and
             184          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             185      the person files for the refund on or before September 30, 2011;
             186          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             187      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             188      exhibitor, distributor, or commercial television or radio broadcaster;
             189          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             190      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             191      washing of tangible personal property;
             192          (b) if a seller that sells at the same business location assisted cleaning or washing of
             193      tangible personal property and cleaning or washing of tangible personal property that is not
             194      assisted cleaning or washing of tangible personal property, the exemption described in
             195      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             196      or washing of the tangible personal property; and
             197          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,


             198      Utah Administrative Rulemaking Act, the commission may make rules:
             199          (i) governing the circumstances under which sales are at the same business location;
             200      and
             201          (ii) establishing the procedures and requirements for a seller to separately account for
             202      sales of assisted cleaning or washing of tangible personal property;
             203          (8) sales made to or by religious or charitable institutions in the conduct of their regular
             204      religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
             205      fulfilled;
             206          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
             207      this state if the vehicle is:
             208          (a) not registered in this state; and
             209          (b) (i) not used in this state; or
             210          (ii) used in this state:
             211          (A) if the vehicle is not used to conduct business, for a time period that does not
             212      exceed the longer of:
             213          (I) 30 days in any calendar year; or
             214          (II) the time period necessary to transport the vehicle to the borders of this state; or
             215          (B) if the vehicle is used to conduct business, for the time period necessary to transport
             216      the vehicle to the borders of this state;
             217          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             218          (i) the item is intended for human use; and
             219          (ii) (A) a prescription was issued for the item; or
             220          (B) the item was purchased by a hospital or other medical facility; and
             221          (b) (i) Subsection (10)(a) applies to:
             222          (A) a drug;
             223          (B) a syringe; or
             224          (C) a stoma supply; and
             225          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the


             226      commission may by rule define the terms:
             227          (A) "syringe"; or
             228          (B) "stoma supply";
             229          (11) sales or use of property, materials, or services used in the construction of or
             230      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             231          (12) (a) sales of an item described in Subsection (12)(c) served by:
             232          (i) the following if the item described in Subsection (12)(c) is not available to the
             233      general public:
             234          (A) a church; or
             235          (B) a charitable institution;
             236          (ii) an institution of higher education if:
             237          (A) the item described in Subsection (12)(c) is not available to the general public; or
             238          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             239      offered by the institution of higher education; or
             240          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             241          (i) a medical facility; or
             242          (ii) a nursing facility; and
             243          (c) Subsections (12)(a) and (b) apply to:
             244          (i) food and food ingredients;
             245          (ii) prepared food; or
             246          (iii) alcoholic beverages;
             247          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
             248      or a product transferred electronically by a person:
             249          (i) regardless of the number of transactions involving the sale of that tangible personal
             250      property or product transferred electronically by that person; and
             251          (ii) not regularly engaged in the business of selling that type of tangible personal
             252      property or product transferred electronically;
             253          (b) this Subsection (13) does not apply if:


             254          (i) the sale is one of a series of sales of a character to indicate that the person is
             255      regularly engaged in the business of selling that type of tangible personal property or product
             256      transferred electronically;
             257          (ii) the person holds that person out as regularly engaged in the business of selling that
             258      type of tangible personal property or product transferred electronically;
             259          (iii) the person sells an item of tangible personal property or product transferred
             260      electronically that the person purchased as a sale that is exempt under Subsection (25); or
             261          (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
             262      this state in which case the tax is based upon:
             263          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
             264      sold; or
             265          (B) in the absence of a bill of sale or other written evidence of value, the fair market
             266      value of the vehicle or vessel being sold at the time of the sale as determined by the
             267      commission; and
             268          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             269      commission shall make rules establishing the circumstances under which:
             270          (i) a person is regularly engaged in the business of selling a type of tangible personal
             271      property or product transferred electronically;
             272          (ii) a sale of tangible personal property or a product transferred electronically is one of
             273      a series of sales of a character to indicate that a person is regularly engaged in the business of
             274      selling that type of tangible personal property or product transferred electronically; or
             275          (iii) a person holds that person out as regularly engaged in the business of selling a type
             276      of tangible personal property or product transferred electronically;
             277          (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
             278      July 1, 2006, for a purchase or lease by a manufacturing facility except for a cogeneration
             279      facility, of the following:
             280          (i) machinery and equipment that:
             281          (A) are used:


             282          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             283      recycler described in Subsection 59-12-102 (64)(b):
             284          (Aa) in the manufacturing process;
             285          (Bb) to manufacture an item sold as tangible personal property; and
             286          (Cc) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             287      (14)(a)(i)(A)(I) in the state; or
             288          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             289      59-12-102 (64)(b):
             290          (Aa) to process an item sold as tangible personal property; and
             291          (Bb) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             292      (14)(a)(i)(A)(II) in the state; and
             293          (B) have an economic life of three or more years; and
             294          (ii) normal operating repair or replacement parts that:
             295          (A) have an economic life of three or more years; and
             296          (B) are used:
             297          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             298      recycler described in Subsection 59-12-102 (64)(b):
             299          (Aa) in the manufacturing process; and
             300          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(I) in the
             301      state; or
             302          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             303      59-12-102 (64)(b):
             304          (Aa) to process an item sold as tangible personal property; and
             305          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(II) in the
             306      state;
             307          (b) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
             308      manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
             309      of the following:


             310          (i) machinery and equipment that:
             311          (A) are used:
             312          (I) in the manufacturing process;
             313          (II) to manufacture an item sold as tangible personal property; and
             314          (III) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             315      (14)(b) in the state; and
             316          (B) have an economic life of three or more years; and
             317          (ii) normal operating repair or replacement parts that:
             318          (A) are used:
             319          (I) in the manufacturing process; and
             320          (II) in a manufacturing facility described in this Subsection (14)(b) in the state; and
             321          (B) have an economic life of three or more years;
             322          (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
             323      by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
             324      NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
             325      Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
             326      of the 2002 North American Industry Classification System of the federal Executive Office of
             327      the President, Office of Management and Budget, of the following:
             328          (i) machinery and equipment that:
             329          (A) are used:
             330          (I) (Aa) in the production process, other than the production of real property; or
             331          (Bb) in research and development; and
             332          (II) beginning on July 1, 2009, in an establishment described in this Subsection (14)(c)
             333      in the state; and
             334          (B) have an economic life of three or more years; and
             335          (ii) normal operating repair or replacement parts that:
             336          (A) have an economic life of three or more years; and
             337          (B) are used in:


             338          (I) (Aa) the production process, except for the production of real property; and
             339          (Bb) an establishment described in this Subsection (14)(c) in the state; or
             340          (II) (Aa) research and development; and
             341          (Bb) in an establishment described in this Subsection (14)(c) in the state;
             342          (d) (i) amounts paid or charged for a purchase or lease made on or after July 1, 2010,
             343      but on or before June 30, 2014, by an establishment described in NAICS Code 518112, Web
             344      Search Portals, of the 2002 North American Industry Classification System of the federal
             345      Executive Office of the President, Office of Management and Budget, of the following:
             346          (A) machinery and equipment that:
             347          (I) are used in the operation of the web search portal;
             348          (II) have an economic life of three or more years; and
             349          (III) are used in a new or expanding establishment described in this Subsection (14)(d)
             350      in the state; and
             351          (B) normal operating repair or replacement parts that:
             352          (I) are used in the operation of the web search portal;
             353          (II) have an economic life of three or more years; and
             354          (III) are used in a new or expanding establishment described in this Subsection (14)(d)
             355      in the state; or
             356          (ii) amounts paid or charged for a purchase or lease made on or after July 1, 2014, by
             357      an establishment described in NAICS Code 518112, Web Search Portals, of the 2002 North
             358      American Industry Classification System of the federal Executive Office of the President,
             359      Office of Management and Budget, of the following:
             360          (A) machinery and equipment that:
             361          (I) are used in the operation of the web search portal; and
             362          (II) have an economic life of three or more years; and
             363          (B) normal operating repair or replacement parts that:
             364          (I) are used in the operation of the web search portal; and
             365          (II) have an economic life of three or more years;


             366          (e) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,
             367      Utah Administrative Rulemaking Act, the commission:
             368          (i) shall by rule define the term "establishment"; and
             369          (ii) may by rule define what constitutes:
             370          (A) processing an item sold as tangible personal property;
             371          (B) the production process, except for the production of real property;
             372          (C) research and development; or
             373          (D) a new or expanding establishment described in Subsection (14)(d) in the state; and
             374          (f) on or before October 1, 2011, and every five years after October 1, 2011, the
             375      commission shall:
             376          (i) review the exemptions described in this Subsection (14) and make
             377      recommendations to the Revenue and Taxation Interim Committee concerning whether the
             378      exemptions should be continued, modified, or repealed; and
             379          (ii) include in its report:
             380          (A) an estimate of the cost of the exemptions;
             381          (B) the purpose and effectiveness of the exemptions; and
             382          (C) the benefits of the exemptions to the state;
             383          (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
             384          (i) tooling;
             385          (ii) special tooling;
             386          (iii) support equipment;
             387          (iv) special test equipment; or
             388          (v) parts used in the repairs or renovations of tooling or equipment described in
             389      Subsections (15)(a)(i) through (iv); and
             390          (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
             391          (i) the tooling, equipment, or parts are used or consumed exclusively in the
             392      performance of any aerospace or electronics industry contract with the United States
             393      government or any subcontract under that contract; and


             394          (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
             395      title to the tooling, equipment, or parts is vested in the United States government as evidenced
             396      by:
             397          (A) a government identification tag placed on the tooling, equipment, or parts; or
             398          (B) listing on a government-approved property record if placing a government
             399      identification tag on the tooling, equipment, or parts is impractical;
             400          (16) sales of newspapers or newspaper subscriptions;
             401          (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
             402      product transferred electronically traded in as full or part payment of the purchase price, except
             403      that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
             404      trade-ins are limited to other vehicles only, and the tax is based upon:
             405          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
             406      vehicle being traded in; or
             407          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
             408      fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
             409      commission; and
             410          (b) Subsection (17)(a) does not apply to the following items of tangible personal
             411      property or products transferred electronically traded in as full or part payment of the purchase
             412      price:
             413          (i) money;
             414          (ii) electricity;
             415          (iii) water;
             416          (iv) gas; or
             417          (v) steam;
             418          (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
             419      or a product transferred electronically used or consumed primarily and directly in farming
             420      operations, regardless of whether the tangible personal property or product transferred
             421      electronically:


             422          (A) becomes part of real estate; or
             423          (B) is installed by a:
             424          (I) farmer;
             425          (II) contractor; or
             426          (III) subcontractor; or
             427          (ii) sales of parts used in the repairs or renovations of tangible personal property or a
             428      product transferred electronically if the tangible personal property or product transferred
             429      electronically is exempt under Subsection (18)(a)(i); and
             430          (b) amounts paid or charged for the following are subject to the taxes imposed by this
             431      chapter:
             432          (i) (A) subject to Subsection (18)(b)(i)(B), the following if used in a manner that is
             433      incidental to farming:
             434          (I) machinery;
             435          (II) equipment;
             436          (III) materials; or
             437          (IV) supplies; and
             438          (B) tangible personal property that is considered to be used in a manner that is
             439      incidental to farming includes:
             440          (I) hand tools; or
             441          (II) maintenance and janitorial equipment and supplies;
             442          (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
             443      transferred electronically if the tangible personal property or product transferred electronically
             444      is used in an activity other than farming; and
             445          (B) tangible personal property or a product transferred electronically that is considered
             446      to be used in an activity other than farming includes:
             447          (I) office equipment and supplies; or
             448          (II) equipment and supplies used in:
             449          (Aa) the sale or distribution of farm products;


             450          (Bb) research; or
             451          (Cc) transportation; or
             452          (iii) a vehicle required to be registered by the laws of this state during the period
             453      ending two years after the date of the vehicle's purchase;
             454          (19) sales of hay;
             455          (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
             456      garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
             457      garden, farm, or other agricultural produce is sold by:
             458          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
             459      agricultural produce;
             460          (b) an employee of the producer described in Subsection (20)(a); or
             461          (c) a member of the immediate family of the producer described in Subsection (20)(a);
             462          (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
             463      under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
             464          (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
             465      nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
             466      wholesaler, or retailer for use in packaging tangible personal property to be sold by that
             467      manufacturer, processor, wholesaler, or retailer;
             468          (23) a product stored in the state for resale;
             469          (24) (a) purchases of a product if:
             470          (i) the product is:
             471          (A) purchased outside of this state;
             472          (B) brought into this state:
             473          (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
             474          (II) by a nonresident person who is not living or working in this state at the time of the
             475      purchase;
             476          (C) used for the personal use or enjoyment of the nonresident person described in
             477      Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and


             478          (D) not used in conducting business in this state; and
             479          (ii) for:
             480          (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
             481      the product for a purpose for which the product is designed occurs outside of this state;
             482          (B) a boat, the boat is registered outside of this state; or
             483          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             484      outside of this state;
             485          (b) the exemption provided for in Subsection (24)(a) does not apply to:
             486          (i) a lease or rental of a product; or
             487          (ii) a sale of a vehicle exempt under Subsection (33); and
             488          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             489      purposes of Subsection (24)(a), the commission may by rule define what constitutes the
             490      following:
             491          (i) conducting business in this state if that phrase has the same meaning in this
             492      Subsection (24) as in Subsection (63);
             493          (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
             494      as in Subsection (63); or
             495          (iii) a purpose for which a product is designed if that phrase has the same meaning in
             496      this Subsection (24) as in Subsection (63);
             497          (25) a product purchased for resale in this state, in the regular course of business, either
             498      in its original form or as an ingredient or component part of a manufactured or compounded
             499      product;
             500          (26) a product upon which a sales or use tax was paid to some other state, or one of its
             501      subdivisions, except that the state shall be paid any difference between the tax paid and the tax
             502      imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
             503      the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
             504      Act;
             505          (27) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a


             506      person for use in compounding a service taxable under the subsections;
             507          (28) purchases made in accordance with the special supplemental nutrition program for
             508      women, infants, and children established in 42 U.S.C. Sec. 1786;
             509          (29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
             510      refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
             511      of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification
             512      Manual of the federal Executive Office of the President, Office of Management and Budget;
             513          (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
             514      Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
             515          (a) not registered in this state; and
             516          (b) (i) not used in this state; or
             517          (ii) used in this state:
             518          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
             519      time period that does not exceed the longer of:
             520          (I) 30 days in any calendar year; or
             521          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
             522      the borders of this state; or
             523          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
             524      period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
             525      state;
             526          (31) sales of aircraft manufactured in Utah;
             527          (32) amounts paid for the purchase of telecommunications service for purposes of
             528      providing telecommunications service;
             529          (33) sales, leases, or uses of the following:
             530          (a) a vehicle by an authorized carrier; or
             531          (b) tangible personal property that is installed on a vehicle:
             532          (i) sold or leased to or used by an authorized carrier; and
             533          (ii) before the vehicle is placed in service for the first time;


             534          (34) (a) 45% of the sales price of any new manufactured home; and
             535          (b) 100% of the sales price of any used manufactured home;
             536          (35) sales relating to schools and fundraising sales;
             537          (36) sales or rentals of durable medical equipment if:
             538          (a) a person presents a prescription for the durable medical equipment; and
             539          (b) the durable medical equipment is used for home use only;
             540          (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
             541      Section 72-11-102 ; and
             542          (b) the commission shall by rule determine the method for calculating sales exempt
             543      under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
             544          (38) sales to a ski resort of:
             545          (a) snowmaking equipment;
             546          (b) ski slope grooming equipment;
             547          (c) passenger ropeways as defined in Section 72-11-102 ; or
             548          (d) parts used in the repairs or renovations of equipment or passenger ropeways
             549      described in Subsections (38)(a) through (c);
             550          (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
             551          (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
             552      amusement, entertainment, or recreation an unassisted amusement device as defined in Section
             553      59-12-102 ;
             554          (b) if a seller that sells or rents at the same business location the right to use or operate
             555      for amusement, entertainment, or recreation one or more unassisted amusement devices and
             556      one or more assisted amusement devices, the exemption described in Subsection (40)(a)
             557      applies if the seller separately accounts for the sales or rentals of the right to use or operate for
             558      amusement, entertainment, or recreation for the assisted amusement devices; and
             559          (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
             560      Utah Administrative Rulemaking Act, the commission may make rules:
             561          (i) governing the circumstances under which sales are at the same business location;


             562      and
             563          (ii) establishing the procedures and requirements for a seller to separately account for
             564      the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
             565      assisted amusement devices;
             566          (41) (a) sales of photocopies by:
             567          (i) a governmental entity; or
             568          (ii) an entity within the state system of public education, including:
             569          (A) a school; or
             570          (B) the State Board of Education; or
             571          (b) sales of publications by a governmental entity;
             572          (42) amounts paid for admission to an athletic event at an institution of higher
             573      education that is subject to the provisions of Title IX of the Education Amendments of 1972,
             574      20 U.S.C. Sec. 1681 et seq.;
             575          (43) (a) sales made to or by:
             576          (i) an area agency on aging; or
             577          (ii) a senior citizen center owned by a county, city, or town; or
             578          (b) sales made by a senior citizen center that contracts with an area agency on aging;
             579          (44) sales or leases of semiconductor fabricating, processing, research, or development
             580      materials regardless of whether the semiconductor fabricating, processing, research, or
             581      development materials:
             582          (a) actually come into contact with a semiconductor; or
             583          (b) ultimately become incorporated into real property;
             584          (45) an amount paid by or charged to a purchaser for accommodations and services
             585      described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under Section
             586      59-12-104.2 ;
             587          (46) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
             588      sports event registration certificate in accordance with Section 41-3-306 for the event period
             589      specified on the temporary sports event registration certificate;


             590          (47) (a) sales or uses of electricity, if the sales or uses are made under a tariff adopted
             591      by the Public Service Commission of Utah only for purchase of electricity produced from a
             592      new alternative energy source, as designated in the tariff by the Public Service Commission of
             593      Utah; and
             594          (b) the exemption under Subsection (47)(a) applies to the portion of the tariff rate a
             595      customer pays under the tariff described in Subsection (47)(a) that exceeds the tariff rate under
             596      the tariff described in Subsection (47)(a) that the customer would have paid absent the tariff;
             597          (48) sales or rentals of mobility enhancing equipment if a person presents a
             598      prescription for the mobility enhancing equipment;
             599          (49) sales of water in a:
             600          (a) pipe;
             601          (b) conduit;
             602          (c) ditch; or
             603          (d) reservoir;
             604          (50) sales of currency or coins that constitute legal tender of a state, the United States,
             605      or a foreign nation;
             606          (51) (a) sales of an item described in Subsection (51)(b) if the item:
             607          (i) does not constitute legal tender of a state, the United States, or a foreign nation; and
             608          (ii) has a gold, silver, or platinum content of 50% or more; and
             609          (b) Subsection (51)(a) applies to a gold, silver, or platinum:
             610          (i) ingot;
             611          (ii) bar;
             612          (iii) medallion; or
             613          (iv) decorative coin;
             614          (52) amounts paid on a sale-leaseback transaction;
             615          (53) sales of a prosthetic device:
             616          (a) for use on or in a human; and
             617          (b) (i) for which a prescription is required; or


             618          (ii) if the prosthetic device is purchased by a hospital or other medical facility;
             619          (54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
             620      machinery or equipment by an establishment described in Subsection (54)(c) if the machinery
             621      or equipment is primarily used in the production or postproduction of the following media for
             622      commercial distribution:
             623          (i) a motion picture;
             624          (ii) a television program;
             625          (iii) a movie made for television;
             626          (iv) a music video;
             627          (v) a commercial;
             628          (vi) a documentary; or
             629          (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
             630      commission by administrative rule made in accordance with Subsection (54)(d); or
             631          (b) purchases, leases, or rentals of machinery or equipment by an establishment
             632      described in Subsection (54)(c) that is used for the production or postproduction of the
             633      following are subject to the taxes imposed by this chapter:
             634          (i) a live musical performance;
             635          (ii) a live news program; or
             636          (iii) a live sporting event;
             637          (c) the following establishments listed in the 1997 North American Industry
             638      Classification System of the federal Executive Office of the President, Office of Management
             639      and Budget, apply to Subsections (54)(a) and (b):
             640          (i) NAICS Code 512110; or
             641          (ii) NAICS Code 51219; and
             642          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             643      commission may by rule:
             644          (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
             645      or


             646          (ii) define:
             647          (A) "commercial distribution";
             648          (B) "live musical performance";
             649          (C) "live news program"; or
             650          (D) "live sporting event";
             651          (55) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
             652      on or before June 30, 2027, of tangible personal property that:
             653          (i) is leased or purchased for or by a facility that:
             654          (A) is an alternative energy electricity production facility;
             655          (B) is located in the state; and
             656          (C) (I) becomes operational on or after July 1, 2004; or
             657          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             658      2004, as a result of the use of the tangible personal property;
             659          (ii) has an economic life of five or more years; and
             660          (iii) is used to make the facility or the increase in capacity of the facility described in
             661      Subsection (55)(a)(i) operational up to the point of interconnection with an existing
             662      transmission grid including:
             663          (A) a wind turbine;
             664          (B) generating equipment;
             665          (C) a control and monitoring system;
             666          (D) a power line;
             667          (E) substation equipment;
             668          (F) lighting;
             669          (G) fencing;
             670          (H) pipes; or
             671          (I) other equipment used for locating a power line or pole; and
             672          (b) this Subsection (55) does not apply to:
             673          (i) tangible personal property used in construction of:


             674          (A) a new alternative energy electricity production facility; or
             675          (B) the increase in the capacity of an alternative energy electricity production facility;
             676          (ii) contracted services required for construction and routine maintenance activities;
             677      and
             678          (iii) unless the tangible personal property is used or acquired for an increase in capacity
             679      of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal property used or
             680      acquired after:
             681          (A) the alternative energy electricity production facility described in Subsection
             682      (55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
             683          (B) the increased capacity described in Subsection (55)(a)(i) is operational as described
             684      in Subsection (55)(a)(iii);
             685          (56) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
             686      on or before June 30, 2027, of tangible personal property that:
             687          (i) is leased or purchased for or by a facility that:
             688          (A) is a waste energy production facility;
             689          (B) is located in the state; and
             690          (C) (I) becomes operational on or after July 1, 2004; or
             691          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             692      2004, as a result of the use of the tangible personal property;
             693          (ii) has an economic life of five or more years; and
             694          (iii) is used to make the facility or the increase in capacity of the facility described in
             695      Subsection (56)(a)(i) operational up to the point of interconnection with an existing
             696      transmission grid including:
             697          (A) generating equipment;
             698          (B) a control and monitoring system;
             699          (C) a power line;
             700          (D) substation equipment;
             701          (E) lighting;


             702          (F) fencing;
             703          (G) pipes; or
             704          (H) other equipment used for locating a power line or pole; and
             705          (b) this Subsection (56) does not apply to:
             706          (i) tangible personal property used in construction of:
             707          (A) a new waste energy facility; or
             708          (B) the increase in the capacity of a waste energy facility;
             709          (ii) contracted services required for construction and routine maintenance activities;
             710      and
             711          (iii) unless the tangible personal property is used or acquired for an increase in capacity
             712      described in Subsection (56)(a)(i)(C)(II), tangible personal property used or acquired after:
             713          (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
             714      described in Subsection (56)(a)(iii); or
             715          (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
             716      in Subsection (56)(a)(iii);
             717          (57) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
             718      or before June 30, 2027, of tangible personal property that:
             719          (i) is leased or purchased for or by a facility that:
             720          (A) is located in the state;
             721          (B) produces fuel from alternative energy, including:
             722          (I) methanol; or
             723          (II) ethanol; and
             724          (C) (I) becomes operational on or after July 1, 2004; or
             725          (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as
             726      a result of the installation of the tangible personal property;
             727          (ii) has an economic life of five or more years; and
             728          (iii) is installed on the facility described in Subsection (57)(a)(i);
             729          (b) this Subsection (57) does not apply to:


             730          (i) tangible personal property used in construction of:
             731          (A) a new facility described in Subsection (57)(a)(i); or
             732          (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
             733          (ii) contracted services required for construction and routine maintenance activities;
             734      and
             735          (iii) unless the tangible personal property is used or acquired for an increase in capacity
             736      described in Subsection (57)(a)(i)(C)(II), tangible personal property used or acquired after:
             737          (A) the facility described in Subsection (57)(a)(i) is operational; or
             738          (B) the increased capacity described in Subsection (57)(a)(i) is operational;
             739          (58) (a) subject to Subsection (58)(b) or (c), sales of tangible personal property or a
             740      product transferred electronically to a person within this state if that tangible personal property
             741      or product transferred electronically is subsequently shipped outside the state and incorporated
             742      pursuant to contract into and becomes a part of real property located outside of this state;
             743          (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
             744      state or political entity to which the tangible personal property is shipped imposes a sales, use,
             745      gross receipts, or other similar transaction excise tax on the transaction against which the other
             746      state or political entity allows a credit for sales and use taxes imposed by this chapter; and
             747          (c) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             748      a person may claim the exemption allowed by this Subsection (58) for a sale by filing for a
             749      refund:
             750          (i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
             751          (ii) as if this Subsection (58) as in effect on July 1, 2008, were in effect on the day on
             752      which the sale is made;
             753          (iii) if the person did not claim the exemption allowed by this Subsection (58) for the
             754      sale prior to filing for the refund;
             755          (iv) for sales and use taxes paid under this chapter on the sale;
             756          (v) in accordance with Section 59-1-1410 ; and
             757          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if


             758      the person files for the refund on or before June 30, 2011;
             759          (59) purchases:
             760          (a) of one or more of the following items in printed or electronic format:
             761          (i) a list containing information that includes one or more:
             762          (A) names; or
             763          (B) addresses; or
             764          (ii) a database containing information that includes one or more:
             765          (A) names; or
             766          (B) addresses; and
             767          (b) used to send direct mail;
             768          (60) redemptions or repurchases of a product by a person if that product was:
             769          (a) delivered to a pawnbroker as part of a pawn transaction; and
             770          (b) redeemed or repurchased within the time period established in a written agreement
             771      between the person and the pawnbroker for redeeming or repurchasing the product;
             772          (61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
             773          (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
             774      and
             775          (ii) has a useful economic life of one or more years; and
             776          (b) the following apply to Subsection (61)(a):
             777          (i) telecommunications enabling or facilitating equipment, machinery, or software;
             778          (ii) telecommunications equipment, machinery, or software required for 911 service;
             779          (iii) telecommunications maintenance or repair equipment, machinery, or software;
             780          (iv) telecommunications switching or routing equipment, machinery, or software; or
             781          (v) telecommunications transmission equipment, machinery, or software;
             782          (62) (a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
             783      personal property or a product transferred electronically that are used in the research and
             784      development of alternative energy technology; and
             785          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the


             786      commission may, for purposes of Subsection (62)(a), make rules defining what constitutes
             787      purchases of tangible personal property or a product transferred electronically that are used in
             788      the research and development of alternative energy technology;
             789          (63) (a) purchases of tangible personal property or a product transferred electronically
             790      if:
             791          (i) the tangible personal property or product transferred electronically is:
             792          (A) purchased outside of this state;
             793          (B) brought into this state at any time after the purchase described in Subsection
             794      (63)(a)(i)(A); and
             795          (C) used in conducting business in this state; and
             796          (ii) for:
             797          (A) tangible personal property or a product transferred electronically other than the
             798      tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property
             799      for a purpose for which the property is designed occurs outside of this state; or
             800          (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             801      outside of this state;
             802          (b) the exemption provided for in Subsection (63)(a) does not apply to:
             803          (i) a lease or rental of tangible personal property or a product transferred electronically;
             804      or
             805          (ii) a sale of a vehicle exempt under Subsection (33); and
             806          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             807      purposes of Subsection (63)(a), the commission may by rule define what constitutes the
             808      following:
             809          (i) conducting business in this state if that phrase has the same meaning in this
             810      Subsection (63) as in Subsection (24);
             811          (ii) the first use of tangible personal property or a product transferred electronically if
             812      that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
             813          (iii) a purpose for which tangible personal property or a product transferred


             814      electronically is designed if that phrase has the same meaning in this Subsection (63) as in
             815      Subsection (24);
             816          (64) sales of disposable home medical equipment or supplies if:
             817          (a) a person presents a prescription for the disposable home medical equipment or
             818      supplies;
             819          (b) the disposable home medical equipment or supplies are used exclusively by the
             820      person to whom the prescription described in Subsection (64)(a) is issued; and
             821          (c) the disposable home medical equipment and supplies are listed as eligible for
             822      payment under:
             823          (i) Title XVIII, federal Social Security Act; or
             824          (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
             825          (65) sales:
             826          (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
             827      District Act; or
             828          (b) of tangible personal property to a subcontractor of a public transit district, if the
             829      tangible personal property is:
             830          (i) clearly identified; and
             831          (ii) installed or converted to real property owned by the public transit district;
             832          (66) sales of construction materials:
             833          (a) purchased on or after July 1, 2010;
             834          (b) purchased by, on behalf of, or for the benefit of an international airport:
             835          (i) located within a county of the first class; and
             836          (ii) that has a United States customs office on its premises; and
             837          (c) if the construction materials are:
             838          (i) clearly identified;
             839          (ii) segregated; and
             840          (iii) installed or converted to real property:
             841          (A) owned or operated by the international airport described in Subsection (66)(b); and


             842          (B) located at the international airport described in Subsection (66)(b);
             843          (67) sales of construction materials:
             844          (a) purchased on or after July 1, 2008;
             845          (b) purchased by, on behalf of, or for the benefit of a new airport:
             846          (i) located within a county of the second class; and
             847          (ii) that is owned or operated by a city in which an airline as defined in Section
             848      59-2-102 is headquartered; and
             849          (c) if the construction materials are:
             850          (i) clearly identified;
             851          (ii) segregated; and
             852          (iii) installed or converted to real property:
             853          (A) owned or operated by the new airport described in Subsection (67)(b);
             854          (B) located at the new airport described in Subsection (67)(b); and
             855          (C) as part of the construction of the new airport described in Subsection (67)(b);
             856          (68) sales of fuel to a common carrier that is a railroad for use in a locomotive engine;
             857          (69) purchases and sales described in Section 63H-4-111 ;
             858          (70) (a) sales of tangible personal property to an aircraft maintenance, repair, and
             859      overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
             860      a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
             861      lists a state or country other than this state as the location of registry of the fixed wing turbine
             862      powered aircraft; or
             863          (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
             864      provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
             865      a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
             866      lists a state or country other than this state as the location of registry of the fixed wing turbine
             867      powered aircraft;
             868          (71) subject to Section 59-12-104.4 , sales of a textbook for a higher education course:
             869          (a) to a person admitted to an institution of higher education; and


             870          (b) by a seller, other than a bookstore owned by an institution of higher education, if
             871      51% or more of that seller's sales revenue for the previous calendar quarter are sales of a
             872      textbook for a higher education course;
             873          (72) a license fee or tax a municipality imposes in accordance with Subsection
             874      10-1-203 (5) on a purchaser from a business for which the municipality provides an enhanced
             875      level of municipal services;
             876          (73) amounts paid or charged for construction materials used in the construction of a
             877      new or expanding life science research and development facility in the state, if the construction
             878      materials are:
             879          (a) clearly identified;
             880          (b) segregated; and
             881          (c) installed or converted to real property;
             882          (74) amounts paid or charged for:
             883          (a) a purchase or lease of machinery and equipment that:
             884          (i) are used in performing qualified research:
             885          (A) as defined in Section 59-7-612 ;
             886          (B) in the state; and
             887          (C) with respect to which the purchaser pays or incurs a qualified research expense as
             888      defined in Section 59-7-612 ; and
             889          (ii) have an economic life of three or more years; and
             890          (b) normal operating repair or replacement parts:
             891          (i) for the machinery and equipment described in Subsection (74)(a); and
             892          (ii) that have an economic life of three or more years;
             893          (75) a sale or lease of tangible personal property used in the preparation of prepared
             894      food if:
             895          (a) for a sale:
             896          (i) the ownership of the seller and the ownership of the purchaser are identical; and
             897          (ii) the seller or the purchaser paid a tax under this chapter on the purchase of that


             898      tangible personal property prior to making the sale; or
             899          (b) for a lease:
             900          (i) the ownership of the lessor and the ownership of the lessee are identical; and
             901          (ii) the lessor or the lessee paid a tax under this chapter on the purchase of that tangible
             902      personal property prior to making the lease;
             903          (76) (a) purchases of machinery or equipment if:
             904          (i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
             905      Gambling, and Recreation Industries, of the 2012 North American Industry Classification
             906      System of the federal Executive Office of the President, Office of Management and Budget;
             907          (ii) the machinery or equipment:
             908          (A) has an economic life of three or more years; and
             909          (B) is used by one or more persons who pay admission or user fees described in
             910      Subsection 59-12-103 (1)(f) to the purchaser of the machinery and equipment; and
             911          (iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
             912          (A) amounts paid or charged as admission or user fees described in Subsection
             913      59-12-103 (1)(f); and
             914          (B) subject to taxation under this chapter;
             915          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             916      commission may make rules for verifying that 51% of a purchaser's sales revenue for the
             917      previous calendar quarter is:
             918          (i) amounts paid or charged as admission or user fees described in Subsection
             919      59-12-103 (1)(f); and
             920          (ii) subject to taxation under this chapter; and
             921          (c) on or before the November 2018 interim meeting, and every five years after the
             922      November 2018 interim meeting, the commission shall review the exemption provided in this
             923      Subsection (76) and report to the Revenue and Taxation Interim Committee on:
             924          (i) the revenue lost to the state and local taxing jurisdictions as a result of the
             925      exemption;


             926          (ii) the purpose and effectiveness of the exemption; and
             927          (iii) whether the exemption benefits the state;
             928          (77) purchases of a short-term lodging consumable by a business that provides
             929      accommodations and services described in Subsection 59-12-103 (1)(i);
             930          (78) amounts paid or charged to access a database:
             931          (a) if the primary purpose for accessing the database is to view or retrieve information
             932      from the database; and
             933          (b) not including amounts paid or charged for a:
             934          (i) digital audiowork;
             935          (ii) digital audio-visual work; or
             936          (iii) digital book;
             937          (79) amounts paid or charged for a purchase or lease made by an electronic financial
             938      payment service, of:
             939          (a) machinery and equipment that:
             940          (i) are used in the operation of the electronic financial payment service; and
             941          (ii) have an economic life of three or more years; and
             942          (b) normal operating repair or replacement parts that:
             943          (i) are used in the operation of the electronic financial payment service; and
             944          (ii) have an economic life of three or more years; [and]
             945          (80) beginning on April 1, 2013, sales of a fuel cell as defined in Section 54-15-102 [.];
             946      and
             947          (81) sales of goods and services at a morale, welfare, and recreation facility, as defined
             948      in Section 39-9-102 , made pursuant to Title 39, Chapter 9, State Morale, Welfare, and
             949      Recreation Program.
             950          Section 9. Effective date.
             951          This bill takes effect on July 1, 2014.


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