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Third Substitute S.B. 47

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Mon, Mar 3, 2014 at 11:48 AM by cmillar. -->

Senator Wayne A. Harper proposes the following substitute bill:


             1     
EMERGENCY MANAGEMENT ACT AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Wayne A. Harper

             5     
House Sponsor: Ryan D. Wilcox

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Emergency Management Act regarding out-of-state businesses
             10      that provide recovery services in the state during a declared disaster or emergency.
             11      Highlighted Provisions:
             12          This bill:
             13          .    provides that an out-of-state business that enters the state during a declared disaster
             14      or emergency to conduct work related to the disaster or emergency is exempt from:
             15              .    licensing or registration requirements as provided;
             16              .    income taxation related to an out-of-state employee as provided; and
             17              .    sales and use taxation of a transaction during a disaster period;
             18          .    provides that any out-of-state business or out-of-state employee that remains in the
             19      state after the disaster period is subject to the state's normal standards for
             20      establishing presence or residency, or doing business in the state; and
             21          .    requires any out-of-state business that enters the state for disaster- or
             22      emergency-related work to provide the Division of Occupational and Professional
             23      Licensing a statement about the purpose of its business in the state, upon request.
             24      Money Appropriated in this Bill:
             25          None



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             26
     Other Special Clauses:
             27          This bill provides an effective date.
             28          This bill provides retrospective operation for a taxable year beginning on or after
             29      January 1, 2014.
             30      Utah Code Sections Affected:
             31      AMENDS:
             32          59-7-102, as last amended by Laws of Utah 2012, Chapter 369
             33          59-7-404.5, as last amended by Laws of Utah 2011, Chapter 69
             34          59-10-403, as renumbered and amended by Laws of Utah 1987, Chapter 2
             35          59-12-104, as last amended by Laws of Utah 2013, Chapters 82, 223, 229, 234, and 441
             36      ENACTS:
             37          53-2a-1201, Utah Code Annotated 1953
             38          53-2a-1202, Utah Code Annotated 1953
             39          53-2a-1203, Utah Code Annotated 1953
             40          53-2a-1204, Utah Code Annotated 1953
             41          53-2a-1205, Utah Code Annotated 1953
             42          59-10-116.1, Utah Code Annotated 1953
             43     

             44      Be it enacted by the Legislature of the state of Utah:
             45          Section 1. Section 53-2a-1201 is enacted to read:
             46     
Part 12. Facilitating Business Rapid Response to State Declared Disasters Act

             47          53-2a-1201. Title.
             48          This part is known as the "Facilitating Business Rapid Response to State Declared
             49      Disasters Act."
             50          Section 2. Section 53-2a-1202 is enacted to read:
             51          53-2a-1202. Definitions.
             52          As used in this part:
             53          (1) "Declared state disaster or emergency" means a declared disaster as defined in
             54      Section 53-2a-602 .
             55          (2) "Disaster- or emergency-related work" means repairing, renovating, installing,
             56      building, rendering services, or other business activities that relate to infrastructure that has



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             57
     been damaged, impaired, or destroyed by a declared state disaster or emergency.
             58          (3) "Disaster period" means a period that begins within 10 days after the first day of a
             59      declared state disaster or emergency and that extends for a period of 60 calendar days after the
             60      end of the declared state disaster or emergency.
             61          (4) "Infrastructure" means property and equipment owned or used by communications
             62      networks, electric generation systems, transmission and distribution systems, gas distribution
             63      systems, water pipelines, and related support facilities that serve multiple customers or citizens,
             64      including real and personal property, such as buildings, offices, power and communication
             65      lines and poles, pipes, structures, and equipment.
             66          (5) "Out-of-state business" means a business entity that:
             67          (a) has no presence in the state, other than any prior disaster or emergency related
             68      work, and conducts no business in the state, and whose services are requested by a registered
             69      business or by a state or local government for purposes of performing disaster- or
             70      emergency-related work in the state; and
             71          (b) has no registration or tax filings or presence sufficient to require the collection or
             72      payment of a tax in the state prior to the declared state disaster or emergency.
             73          (6) "Out-of-state employee" means an employee who does not work in the state, except
             74      for disaster- or emergency-related work during the disaster period.
             75          (7) "Registered business" means a business entity that is currently registered to do
             76      business in the state prior to the declared state disaster or emergency.
             77          Section 3. Section 53-2a-1203 is enacted to read:
             78          53-2a-1203. Business and employee status during disaster period.
             79          (1) Notwithstanding any other provision, an out-of-state business that conducts
             80      operations within the state for purposes of performing work or services related to a declared
             81      state disaster or emergency during the disaster period:
             82          (a) is not considered to have established a level of presence that would require that
             83      business to be subject to any state licensing or registration requirements, provided that the
             84      out-of-state business is in substantial compliance with all applicable regulatory and licensing
             85      requirements in its state of domicile, including:
             86          (i) unemployment insurance;
             87          (ii) state or local occupational licensing fees;



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             88
         (iii) public service commission regulation; or
             89          (iv) state or local licensing or regulatory requirements; and
             90          (b) is exempt from the registration requirements under Title 16, Corporations, Title 42,
             91      Names, and Title 48, Partnership; and
             92          (c) shall S. , within a reasonable time after entry, upon the request of the Labor
             92a      Commission or the Department of Insurance, .S confirm that it is in compliance with Section
             92b      34A-2-406 S. (1)(a), (1)(b), and (2) .S .
             93          (2) Notwithstanding any other provision, an out-of-state employee who performs
             94      disaster or emergency related work specific to a declared state disaster or emergency during the
             95      disaster period is not subject to any state licensing or registration requirements provided that
             96      the out-of-state employee is in substantial compliance with all applicable regulatory and
             97      licensing requirements in the employee's state of residence or state of employment.
             98          (3) (a) Income taxation related to an out-of-state employee or an out-of-state business
             99      is as provided in:
             100          (i) Title 59, Chapter 7, Corporate Franchise and Income Taxes; and
             101          (ii) Title 59, Chapter 10, Individual Income Tax Act.
             102          (b) Sales and use taxation during a disaster period is as provided in Title 59, Chapter
             103      12, Sales and Use Tax Act.
             104          (c) Any property brought into the state temporarily during the disaster period is not
             105      subject to any state or local ad valorem taxes under Title 59, Chapter 2, Property Tax Act.
             106          Section 4. Section 53-2a-1204 is enacted to read:
             107          53-2a-1204. Business or employee activity after disaster period.
             108          Any out-of-state business or out-of-state employee that remains in the state after the
             109      disaster period will become subject to the state's normal standards for establishing presence or
             110      residency, or doing business in the state.
             111          Section 5. Section 53-2a-1205 is enacted to read:
             112          53-2a-1205. Administration -- Notification and procedures.
             113          (1) Any out-of-state business that enters the state shall, within a reasonable time after
             114      entry, not to exceed 30 days, provide to the Division of Occupational and Professional
             115      Licensing a statement that it is in the state for purposes of responding to the disaster or
             116      emergency, which statement shall include the business's:
             117          (a) name;
             118          (b) state of domicile;



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             119
         (c) principal business address;
             120          (d) federal tax identification number;
             121          (e) date of entry;
             122          (f) contact information; and
             123          (g) evidence of compliance with the regulatory or licensing requirements in Section
             124      53-2a-1203 , such as a copy of applicable permits or license S. s .S .
             125          (2) Any affiliate of a registered business in the state and any out-of-state business that
             126      is registered as a public utility in another state and that is providing assistance under the terms
             127      of a utility multistate mutual aid agreement shall not be required to provide the information
             128      required in Subsection (1), unless requested by the Division of Occupational and Professional
             129      Licensing within a reasonable period of time.
             130          (3) An out-of-state business or an out-of-state employee that remains in the state after
             131      the disaster period shall complete state and local registration, licensing, and filing requirements
             132      that establish the requisite business presence or residency in the state.
             133          (4) The Division of Occupational and Professional Licensing shall:
             134          (a) make rules necessary to implement Subsection (3);
             135          (b) develop and provide forms or online processes; and
             136          (c) maintain and make available an annual report of any designations made pursuant to
             137      this section.
             138          Section 6. Section 59-7-102 is amended to read:
             139           59-7-102. Exemptions.
             140          (1) Except as provided in this section, the following are exempt from a tax under this
             141      chapter:
             142          (a) an organization exempt under Section 501, Internal Revenue Code;
             143          (b) an organization exempt under Section 528, Internal Revenue Code;
             144          (c) an insurance company that is otherwise taxed on the insurance company's premiums
             145      under Chapter 9, Taxation of Admitted Insurers;
             146          (d) a local building authority as defined in Section 17D-2-102 ;
             147          (e) a farmers' cooperative; or
             148          (f) a public agency, as defined in Section 11-13-103 , with respect to or as a result of an
             149      ownership interest in:



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             150
         (i) a project, as defined in Section 11-13-103 ; or
             151          (ii) facilities providing additional project capacity, as defined in Section 11-13-103 .
             152          (2) A corporation is exempt from a tax under this chapter:
             153          (a) if the corporation is an out-of-state business as defined in Section 53-2a-1202 ; and
             154          (b) for income earned:
             155          (i) during a disaster period as defined in Section 53-2a-1202 ; and
             156          (ii) for the purpose of responding to a declared state disaster or emergency as defined
             157      in Section 53-2a-1202 .
             158          [(2)] (3) Notwithstanding any other provision in this chapter or Chapter 8, Gross
             159      Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax
             160      Act, a person not otherwise subject to the tax imposed by this chapter or Chapter 8 is not
             161      subject to a tax imposed by Section 59-7-104 , 59-7-201 , 59-7-701 , or 59-8-104 , because of:
             162          (a) that person's ownership of tangible personal property located at the premises of a
             163      printer's facility in this state with which the person has contracted for printing; or
             164          (b) the activities of the person's employees or agents who are:
             165          (i) located solely at the premises of a printer's facility; and
             166          (ii) performing services:
             167          (A) related to:
             168          (I) quality control;
             169          (II) distribution; or
             170          (III) printing services; and
             171          (B) performed by the printer's facility in this state with which the person has contracted
             172      for printing.
             173          [(3)] (4) Notwithstanding Subsection (1), an organization, company, authority, farmers'
             174      cooperative, or public agency exempt from this chapter under Subsection (1) is subject to Part
             175      8, Unrelated Business Income, to the extent provided in Part 8.
             176          [(4)] (5) Notwithstanding Subsection (1)(b), to the extent the income of an
             177      organization described in Subsection (1)(b) is taxable for federal tax purposes under Section
             178      528, Internal Revenue Code, the organization's income is also taxable under this chapter.
             179          Section 7. Section 59-7-404.5 is amended to read:
             180           59-7-404.5. Adjustment to apportionment factors for corporations in a combined



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             181
     report -- Sales factor -- Property factor.
             182          For purposes of apportionment under Part 3, Allocation and Apportionment of Income -
             183      Utah UDITPA Provisions:
             184          (1) corporations filing a combined report under Section 59-7-402 or 59-7-403 may not
             185      include intercompany sales or other intercompany transactions between the corporations
             186      included in the combined report in determining the sales factor; [and]
             187          (2) corporations filing a combined report under Section 59-7-402 or 59-7-403 may not
             188      include intercompany rents or other intercompany transactions between the corporations
             189      included in the combined report in determining the property factor[.]; and
             190          (3) the amounts of the numerators in this state of the property, payroll, and sales factors
             191      of an out-of-state business, as defined in Section 53-2a-1202 , that are directly related to
             192      disaster- or emergency-related work, as defined in Section 53-2a-1202 , during a disaster period,
             193      as defined in Section 53-2a-1202 , may not be included in the apportionment fraction of the
             194      combined group.
             195          Section 8. Section 59-10-116.1 is enacted to read:
             196          59-10-116.1. Exemption for out-of-state-employee.
             197          (1) As used in this section:
             198          (a) "Declared state disaster or emergency" is as defined in Section 53-2a-1202 .
             199          (b) "Disaster period" is as defined in Section 53-2a-1202 .
             200          (c) "Out-of-state business" is as defined in Section 53-2a-1202 .
             201          (d) "Out-of-state employee" is as defined in Section 53-2a-1202 .
             202          (2) An out-of-state employee, including a pass-through entity taxpayer who is an
             203      out-of-state employee, is exempt from a tax under this chapter for income earned or passed
             204      through:
             205          (a) from an out-of-state business;
             206          (b) during a disaster period; and
             207          (c) as a result of the out-of-state business responding to a declared state disaster or
             208      emergency.
             209          Section 9. Section 59-10-403 is amended to read:
             210           59-10-403. Circumstances under which an employer is not required to deduct
             211      and withhold a tax.



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             212
         (1) Notwithstanding any other provision of this chapter, an employer is not required to
             213      deduct and withhold any tax under this chapter upon a payment of wages to an employee:
             214          (a) if there is in effect with respect to [such] the payment a withholding exemption
             215      certificate [(in such form and containing such other information as the commission may
             216      prescribe)] furnished to the employer by the employee, certifying that the employee:
             217          [(a)] (i) incurred no liability for [income] a tax imposed under this chapter for [his] the
             218      employee's immediately preceding taxable year; and
             219          [(b) anticipates that he will incur no liability for income]
             220          (ii) expects that the employee will not incur liability for a tax imposed under this
             221      chapter for [his] the employee's current taxable year[.]; or
             222          (b) if the employer:
             223          (i) is an out-of-state business as defined in Section 53-2a-1202 ; and
             224          (ii) pays the wages as compensation for services performed in response to a declared
             225      state disaster or emergency as defined in Section 53-2a-1202 .
             226          (2) [The commission shall by rule] In accordance with Title 63G, Chapter 3, Utah
             227      Administrative Rulemaking Act, the commission shall provide for the coordination of [the
             228      provisions of] this section with [the provisions of] Section 59-10-402 .
             229          Section 01. Section 59-12-104 is amended to read:
             230           59-12-104. Exemptions.
             231          The following sales and uses are exempt from the taxes imposed by this chapter:
             232          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             233      under Chapter 13, Motor and Special Fuel Tax Act;
             234          (2) subject to Section 59-12-104.6 , sales to the state, its institutions, and its political
             235      subdivisions; however, this exemption does not apply to sales of:
             236          (a) construction materials except:
             237          (i) construction materials purchased by or on behalf of institutions of the public
             238      education system as defined in Utah Constitution Article X, Section 2, provided the
             239      construction materials are clearly identified and segregated and installed or converted to real
             240      property which is owned by institutions of the public education system; and
             241          (ii) construction materials purchased by the state, its institutions, or its political
             242      subdivisions which are installed or converted to real property by employees of the state, its



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             243
     institutions, or its political subdivisions; or
             244          (b) tangible personal property in connection with the construction, operation,
             245      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             246      providing additional project capacity, as defined in Section 11-13-103 ;
             247          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             248          (i) the proceeds of each sale do not exceed $1; and
             249          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             250      the cost of the item described in Subsection (3)(b) as goods consumed; and
             251          (b) Subsection (3)(a) applies to:
             252          (i) food and food ingredients; or
             253          (ii) prepared food;
             254          (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
             255          (i) alcoholic beverages;
             256          (ii) food and food ingredients; or
             257          (iii) prepared food;
             258          (b) sales of tangible personal property or a product transferred electronically:
             259          (i) to a passenger;
             260          (ii) by a commercial airline carrier; and
             261          (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
             262          (c) services related to Subsection (4)(a) or (b);
             263          (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
             264      and equipment:
             265          (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
             266      North American Industry Classification System of the federal Executive Office of the
             267      President, Office of Management and Budget; and
             268          (II) for:
             269          (Aa) installation in an aircraft, including services relating to the installation of parts or
             270      equipment in the aircraft;
             271          (Bb) renovation of an aircraft; or
             272          (Cc) repair of an aircraft; or
             273          (B) for installation in an aircraft operated by a common carrier in interstate or foreign



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             274
     commerce; or
             275          (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
             276      aircraft operated by a common carrier in interstate or foreign commerce; and
             277          (b) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             278      a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
             279      refund:
             280          (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
             281          (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
             282          (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
             283      the sale prior to filing for the refund;
             284          (iv) for sales and use taxes paid under this chapter on the sale;
             285          (v) in accordance with Section 59-1-1410 ; and
             286          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             287      the person files for the refund on or before September 30, 2011;
             288          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             289      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             290      exhibitor, distributor, or commercial television or radio broadcaster;
             291          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             292      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             293      washing of tangible personal property;
             294          (b) if a seller that sells at the same business location assisted cleaning or washing of
             295      tangible personal property and cleaning or washing of tangible personal property that is not
             296      assisted cleaning or washing of tangible personal property, the exemption described in
             297      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             298      or washing of the tangible personal property; and
             299          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
             300      Utah Administrative Rulemaking Act, the commission may make rules:
             301          (i) governing the circumstances under which sales are at the same business location;
             302      and
             303          (ii) establishing the procedures and requirements for a seller to separately account for
             304      sales of assisted cleaning or washing of tangible personal property;



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             305
         (8) sales made to or by religious or charitable institutions in the conduct of their regular
             306      religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
             307      fulfilled;
             308          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
             309      this state if the vehicle is:
             310          (a) not registered in this state; and
             311          (b) (i) not used in this state; or
             312          (ii) used in this state:
             313          (A) if the vehicle is not used to conduct business, for a time period that does not
             314      exceed the longer of:
             315          (I) 30 days in any calendar year; or
             316          (II) the time period necessary to transport the vehicle to the borders of this state; or
             317          (B) if the vehicle is used to conduct business, for the time period necessary to transport
             318      the vehicle to the borders of this state;
             319          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             320          (i) the item is intended for human use; and
             321          (ii) (A) a prescription was issued for the item; or
             322          (B) the item was purchased by a hospital or other medical facility; and
             323          (b) (i) Subsection (10)(a) applies to:
             324          (A) a drug;
             325          (B) a syringe; or
             326          (C) a stoma supply; and
             327          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             328      commission may by rule define the terms:
             329          (A) "syringe"; or
             330          (B) "stoma supply";
             331          (11) sales or use of property, materials, or services used in the construction of or
             332      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             333          (12) (a) sales of an item described in Subsection (12)(c) served by:
             334          (i) the following if the item described in Subsection (12)(c) is not available to the
             335      general public:



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             336
         (A) a church; or
             337          (B) a charitable institution;
             338          (ii) an institution of higher education if:
             339          (A) the item described in Subsection (12)(c) is not available to the general public; or
             340          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             341      offered by the institution of higher education; or
             342          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             343          (i) a medical facility; or
             344          (ii) a nursing facility; and
             345          (c) Subsections (12)(a) and (b) apply to:
             346          (i) food and food ingredients;
             347          (ii) prepared food; or
             348          (iii) alcoholic beverages;
             349          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
             350      or a product transferred electronically by a person:
             351          (i) regardless of the number of transactions involving the sale of that tangible personal
             352      property or product transferred electronically by that person; and
             353          (ii) not regularly engaged in the business of selling that type of tangible personal
             354      property or product transferred electronically;
             355          (b) this Subsection (13) does not apply if:
             356          (i) the sale is one of a series of sales of a character to indicate that the person is
             357      regularly engaged in the business of selling that type of tangible personal property or product
             358      transferred electronically;
             359          (ii) the person holds that person out as regularly engaged in the business of selling that
             360      type of tangible personal property or product transferred electronically;
             361          (iii) the person sells an item of tangible personal property or product transferred
             362      electronically that the person purchased as a sale that is exempt under Subsection (25); or
             363          (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
             364      this state in which case the tax is based upon:
             365          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
             366      sold; or



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             367
         (B) in the absence of a bill of sale or other written evidence of value, the fair market
             368      value of the vehicle or vessel being sold at the time of the sale as determined by the
             369      commission; and
             370          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             371      commission shall make rules establishing the circumstances under which:
             372          (i) a person is regularly engaged in the business of selling a type of tangible personal
             373      property or product transferred electronically;
             374          (ii) a sale of tangible personal property or a product transferred electronically is one of
             375      a series of sales of a character to indicate that a person is regularly engaged in the business of
             376      selling that type of tangible personal property or product transferred electronically; or
             377          (iii) a person holds that person out as regularly engaged in the business of selling a type
             378      of tangible personal property or product transferred electronically;
             379          (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
             380      July 1, 2006, for a purchase or lease by a manufacturing facility except for a cogeneration
             381      facility, of the following:
             382          (i) machinery and equipment that:
             383          (A) are used:
             384          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             385      recycler described in Subsection 59-12-102 (64)(b):
             386          (Aa) in the manufacturing process;
             387          (Bb) to manufacture an item sold as tangible personal property; and
             388          (Cc) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             389      (14)(a)(i)(A)(I) in the state; or
             390          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             391      59-12-102 (64)(b):
             392          (Aa) to process an item sold as tangible personal property; and
             393          (Bb) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             394      (14)(a)(i)(A)(II) in the state; and
             395          (B) have an economic life of three or more years; and
             396          (ii) normal operating repair or replacement parts that:
             397          (A) have an economic life of three or more years; and



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             398
         (B) are used:
             399          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             400      recycler described in Subsection 59-12-102 (64)(b):
             401          (Aa) in the manufacturing process; and
             402          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(I) in the
             403      state; or
             404          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             405      59-12-102 (64)(b):
             406          (Aa) to process an item sold as tangible personal property; and
             407          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(II) in the
             408      state;
             409          (b) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
             410      manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
             411      of the following:
             412          (i) machinery and equipment that:
             413          (A) are used:
             414          (I) in the manufacturing process;
             415          (II) to manufacture an item sold as tangible personal property; and
             416          (III) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             417      (14)(b) in the state; and
             418          (B) have an economic life of three or more years; and
             419          (ii) normal operating repair or replacement parts that:
             420          (A) are used:
             421          (I) in the manufacturing process; and
             422          (II) in a manufacturing facility described in this Subsection (14)(b) in the state; and
             423          (B) have an economic life of three or more years;
             424          (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
             425      by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
             426      NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
             427      Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
             428      of the 2002 North American Industry Classification System of the federal Executive Office of



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             429
     the President, Office of Management and Budget, of the following:
             430          (i) machinery and equipment that:
             431          (A) are used:
             432          (I) (Aa) in the production process, other than the production of real property; or
             433          (Bb) in research and development; and
             434          (II) beginning on July 1, 2009, in an establishment described in this Subsection (14)(c)
             435      in the state; and
             436          (B) have an economic life of three or more years; and
             437          (ii) normal operating repair or replacement parts that:
             438          (A) have an economic life of three or more years; and
             439          (B) are used in:
             440          (I) (Aa) the production process, except for the production of real property; and
             441          (Bb) an establishment described in this Subsection (14)(c) in the state; or
             442          (II) (Aa) research and development; and
             443          (Bb) in an establishment described in this Subsection (14)(c) in the state;
             444          (d) (i) amounts paid or charged for a purchase or lease made on or after July 1, 2010,
             445      but on or before June 30, 2014, by an establishment described in NAICS Code 518112, Web
             446      Search Portals, of the 2002 North American Industry Classification System of the federal
             447      Executive Office of the President, Office of Management and Budget, of the following:
             448          (A) machinery and equipment that:
             449          (I) are used in the operation of the web search portal;
             450          (II) have an economic life of three or more years; and
             451          (III) are used in a new or expanding establishment described in this Subsection (14)(d)
             452      in the state; and
             453          (B) normal operating repair or replacement parts that:
             454          (I) are used in the operation of the web search portal;
             455          (II) have an economic life of three or more years; and
             456          (III) are used in a new or expanding establishment described in this Subsection (14)(d)
             457      in the state; or
             458          (ii) amounts paid or charged for a purchase or lease made on or after July 1, 2014, by
             459      an establishment described in NAICS Code 518112, Web Search Portals, of the 2002 North



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             460
     American Industry Classification System of the federal Executive Office of the President,
             461      Office of Management and Budget, of the following:
             462          (A) machinery and equipment that:
             463          (I) are used in the operation of the web search portal; and
             464          (II) have an economic life of three or more years; and
             465          (B) normal operating repair or replacement parts that:
             466          (I) are used in the operation of the web search portal; and
             467          (II) have an economic life of three or more years;
             468          (e) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,
             469      Utah Administrative Rulemaking Act, the commission:
             470          (i) shall by rule define the term "establishment"; and
             471          (ii) may by rule define what constitutes:
             472          (A) processing an item sold as tangible personal property;
             473          (B) the production process, except for the production of real property;
             474          (C) research and development; or
             475          (D) a new or expanding establishment described in Subsection (14)(d) in the state; and
             476          (f) on or before October 1, 2011, and every five years after October 1, 2011, the
             477      commission shall:
             478          (i) review the exemptions described in this Subsection (14) and make
             479      recommendations to the Revenue and Taxation Interim Committee concerning whether the
             480      exemptions should be continued, modified, or repealed; and
             481          (ii) include in its report:
             482          (A) an estimate of the cost of the exemptions;
             483          (B) the purpose and effectiveness of the exemptions; and
             484          (C) the benefits of the exemptions to the state;
             485          (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
             486          (i) tooling;
             487          (ii) special tooling;
             488          (iii) support equipment;
             489          (iv) special test equipment; or
             490          (v) parts used in the repairs or renovations of tooling or equipment described in



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             491
     Subsections (15)(a)(i) through (iv); and
             492          (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
             493          (i) the tooling, equipment, or parts are used or consumed exclusively in the
             494      performance of any aerospace or electronics industry contract with the United States
             495      government or any subcontract under that contract; and
             496          (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
             497      title to the tooling, equipment, or parts is vested in the United States government as evidenced
             498      by:
             499          (A) a government identification tag placed on the tooling, equipment, or parts; or
             500          (B) listing on a government-approved property record if placing a government
             501      identification tag on the tooling, equipment, or parts is impractical;
             502          (16) sales of newspapers or newspaper subscriptions;
             503          (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
             504      product transferred electronically traded in as full or part payment of the purchase price, except
             505      that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
             506      trade-ins are limited to other vehicles only, and the tax is based upon:
             507          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
             508      vehicle being traded in; or
             509          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
             510      fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
             511      commission; and
             512          (b) Subsection (17)(a) does not apply to the following items of tangible personal
             513      property or products transferred electronically traded in as full or part payment of the purchase
             514      price:
             515          (i) money;
             516          (ii) electricity;
             517          (iii) water;
             518          (iv) gas; or
             519          (v) steam;
             520          (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
             521      or a product transferred electronically used or consumed primarily and directly in farming



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             522
     operations, regardless of whether the tangible personal property or product transferred
             523      electronically:
             524          (A) becomes part of real estate; or
             525          (B) is installed by a:
             526          (I) farmer;
             527          (II) contractor; or
             528          (III) subcontractor; or
             529          (ii) sales of parts used in the repairs or renovations of tangible personal property or a
             530      product transferred electronically if the tangible personal property or product transferred
             531      electronically is exempt under Subsection (18)(a)(i); and
             532          (b) amounts paid or charged for the following are subject to the taxes imposed by this
             533      chapter:
             534          (i) (A) subject to Subsection (18)(b)(i)(B), the following if used in a manner that is
             535      incidental to farming:
             536          (I) machinery;
             537          (II) equipment;
             538          (III) materials; or
             539          (IV) supplies; and
             540          (B) tangible personal property that is considered to be used in a manner that is
             541      incidental to farming includes:
             542          (I) hand tools; or
             543          (II) maintenance and janitorial equipment and supplies;
             544          (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
             545      transferred electronically if the tangible personal property or product transferred electronically
             546      is used in an activity other than farming; and
             547          (B) tangible personal property or a product transferred electronically that is considered
             548      to be used in an activity other than farming includes:
             549          (I) office equipment and supplies; or
             550          (II) equipment and supplies used in:
             551          (Aa) the sale or distribution of farm products;
             552          (Bb) research; or



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             553
         (Cc) transportation; or
             554          (iii) a vehicle required to be registered by the laws of this state during the period
             555      ending two years after the date of the vehicle's purchase;
             556          (19) sales of hay;
             557          (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
             558      garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
             559      garden, farm, or other agricultural produce is sold by:
             560          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
             561      agricultural produce;
             562          (b) an employee of the producer described in Subsection (20)(a); or
             563          (c) a member of the immediate family of the producer described in Subsection (20)(a);
             564          (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
             565      under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
             566          (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
             567      nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
             568      wholesaler, or retailer for use in packaging tangible personal property to be sold by that
             569      manufacturer, processor, wholesaler, or retailer;
             570          (23) a product stored in the state for resale;
             571          (24) (a) purchases of a product if:
             572          (i) the product is:
             573          (A) purchased outside of this state;
             574          (B) brought into this state:
             575          (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
             576          (II) by a nonresident person who is not living or working in this state at the time of the
             577      purchase;
             578          (C) used for the personal use or enjoyment of the nonresident person described in
             579      Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
             580          (D) not used in conducting business in this state; and
             581          (ii) for:
             582          (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
             583      the product for a purpose for which the product is designed occurs outside of this state;



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             584
         (B) a boat, the boat is registered outside of this state; or
             585          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             586      outside of this state;
             587          (b) the exemption provided for in Subsection (24)(a) does not apply to:
             588          (i) a lease or rental of a product; or
             589          (ii) a sale of a vehicle exempt under Subsection (33); and
             590          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             591      purposes of Subsection (24)(a), the commission may by rule define what constitutes the
             592      following:
             593          (i) conducting business in this state if that phrase has the same meaning in this
             594      Subsection (24) as in Subsection (63);
             595          (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
             596      as in Subsection (63); or
             597          (iii) a purpose for which a product is designed if that phrase has the same meaning in
             598      this Subsection (24) as in Subsection (63);
             599          (25) a product purchased for resale in this state, in the regular course of business, either
             600      in its original form or as an ingredient or component part of a manufactured or compounded
             601      product;
             602          (26) a product upon which a sales or use tax was paid to some other state, or one of its
             603      subdivisions, except that the state shall be paid any difference between the tax paid and the tax
             604      imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
             605      the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
             606      Act;
             607          (27) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a
             608      person for use in compounding a service taxable under the subsections;
             609          (28) purchases made in accordance with the special supplemental nutrition program for
             610      women, infants, and children established in 42 U.S.C. Sec. 1786;
             611          (29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
             612      refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
             613      of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification
             614      Manual of the federal Executive Office of the President, Office of Management and Budget;



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             615
         (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
             616      Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
             617          (a) not registered in this state; and
             618          (b) (i) not used in this state; or
             619          (ii) used in this state:
             620          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
             621      time period that does not exceed the longer of:
             622          (I) 30 days in any calendar year; or
             623          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
             624      the borders of this state; or
             625          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
             626      period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
             627      state;
             628          (31) sales of aircraft manufactured in Utah;
             629          (32) amounts paid for the purchase of telecommunications service for purposes of
             630      providing telecommunications service;
             631          (33) sales, leases, or uses of the following:
             632          (a) a vehicle by an authorized carrier; or
             633          (b) tangible personal property that is installed on a vehicle:
             634          (i) sold or leased to or used by an authorized carrier; and
             635          (ii) before the vehicle is placed in service for the first time;
             636          (34) (a) 45% of the sales price of any new manufactured home; and
             637          (b) 100% of the sales price of any used manufactured home;
             638          (35) sales relating to schools and fundraising sales;
             639          (36) sales or rentals of durable medical equipment if:
             640          (a) a person presents a prescription for the durable medical equipment; and
             641          (b) the durable medical equipment is used for home use only;
             642          (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
             643      Section 72-11-102 ; and
             644          (b) the commission shall by rule determine the method for calculating sales exempt
             645      under Subsection (37)(a) that are not separately metered and accounted for in utility billings;



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             646
         (38) sales to a ski resort of:
             647          (a) snowmaking equipment;
             648          (b) ski slope grooming equipment;
             649          (c) passenger ropeways as defined in Section 72-11-102 ; or
             650          (d) parts used in the repairs or renovations of equipment or passenger ropeways
             651      described in Subsections (38)(a) through (c);
             652          (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
             653          (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
             654      amusement, entertainment, or recreation an unassisted amusement device as defined in Section
             655      59-12-102 ;
             656          (b) if a seller that sells or rents at the same business location the right to use or operate
             657      for amusement, entertainment, or recreation one or more unassisted amusement devices and
             658      one or more assisted amusement devices, the exemption described in Subsection (40)(a)
             659      applies if the seller separately accounts for the sales or rentals of the right to use or operate for
             660      amusement, entertainment, or recreation for the assisted amusement devices; and
             661          (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
             662      Utah Administrative Rulemaking Act, the commission may make rules:
             663          (i) governing the circumstances under which sales are at the same business location;
             664      and
             665          (ii) establishing the procedures and requirements for a seller to separately account for
             666      the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
             667      assisted amusement devices;
             668          (41) (a) sales of photocopies by:
             669          (i) a governmental entity; or
             670          (ii) an entity within the state system of public education, including:
             671          (A) a school; or
             672          (B) the State Board of Education; or
             673          (b) sales of publications by a governmental entity;
             674          (42) amounts paid for admission to an athletic event at an institution of higher
             675      education that is subject to the provisions of Title IX of the Education Amendments of 1972,
             676      20 U.S.C. Sec. 1681 et seq.;



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             677
         (43) (a) sales made to or by:
             678          (i) an area agency on aging; or
             679          (ii) a senior citizen center owned by a county, city, or town; or
             680          (b) sales made by a senior citizen center that contracts with an area agency on aging;
             681          (44) sales or leases of semiconductor fabricating, processing, research, or development
             682      materials regardless of whether the semiconductor fabricating, processing, research, or
             683      development materials:
             684          (a) actually come into contact with a semiconductor; or
             685          (b) ultimately become incorporated into real property;
             686          (45) an amount paid by or charged to a purchaser for accommodations and services
             687      described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under Section
             688      59-12-104.2 ;
             689          (46) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
             690      sports event registration certificate in accordance with Section 41-3-306 for the event period
             691      specified on the temporary sports event registration certificate;
             692          (47) (a) sales or uses of electricity, if the sales or uses are made under a tariff adopted
             693      by the Public Service Commission of Utah only for purchase of electricity produced from a
             694      new alternative energy source, as designated in the tariff by the Public Service Commission of
             695      Utah; and
             696          (b) the exemption under Subsection (47)(a) applies to the portion of the tariff rate a
             697      customer pays under the tariff described in Subsection (47)(a) that exceeds the tariff rate under
             698      the tariff described in Subsection (47)(a) that the customer would have paid absent the tariff;
             699          (48) sales or rentals of mobility enhancing equipment if a person presents a
             700      prescription for the mobility enhancing equipment;
             701          (49) sales of water in a:
             702          (a) pipe;
             703          (b) conduit;
             704          (c) ditch; or
             705          (d) reservoir;
             706          (50) sales of currency or coins that constitute legal tender of a state, the United States,
             707      or a foreign nation;



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             708
         (51) (a) sales of an item described in Subsection (51)(b) if the item:
             709          (i) does not constitute legal tender of a state, the United States, or a foreign nation; and
             710          (ii) has a gold, silver, or platinum content of 50% or more; and
             711          (b) Subsection (51)(a) applies to a gold, silver, or platinum:
             712          (i) ingot;
             713          (ii) bar;
             714          (iii) medallion; or
             715          (iv) decorative coin;
             716          (52) amounts paid on a sale-leaseback transaction;
             717          (53) sales of a prosthetic device:
             718          (a) for use on or in a human; and
             719          (b) (i) for which a prescription is required; or
             720          (ii) if the prosthetic device is purchased by a hospital or other medical facility;
             721          (54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
             722      machinery or equipment by an establishment described in Subsection (54)(c) if the machinery
             723      or equipment is primarily used in the production or postproduction of the following media for
             724      commercial distribution:
             725          (i) a motion picture;
             726          (ii) a television program;
             727          (iii) a movie made for television;
             728          (iv) a music video;
             729          (v) a commercial;
             730          (vi) a documentary; or
             731          (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
             732      commission by administrative rule made in accordance with Subsection (54)(d); or
             733          (b) purchases, leases, or rentals of machinery or equipment by an establishment
             734      described in Subsection (54)(c) that is used for the production or postproduction of the
             735      following are subject to the taxes imposed by this chapter:
             736          (i) a live musical performance;
             737          (ii) a live news program; or
             738          (iii) a live sporting event;



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             739
         (c) the following establishments listed in the 1997 North American Industry
             740      Classification System of the federal Executive Office of the President, Office of Management
             741      and Budget, apply to Subsections (54)(a) and (b):
             742          (i) NAICS Code 512110; or
             743          (ii) NAICS Code 51219; and
             744          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             745      commission may by rule:
             746          (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
             747      or
             748          (ii) define:
             749          (A) "commercial distribution";
             750          (B) "live musical performance";
             751          (C) "live news program"; or
             752          (D) "live sporting event";
             753          (55) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
             754      on or before June 30, 2027, of tangible personal property that:
             755          (i) is leased or purchased for or by a facility that:
             756          (A) is an alternative energy electricity production facility;
             757          (B) is located in the state; and
             758          (C) (I) becomes operational on or after July 1, 2004; or
             759          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             760      2004, as a result of the use of the tangible personal property;
             761          (ii) has an economic life of five or more years; and
             762          (iii) is used to make the facility or the increase in capacity of the facility described in
             763      Subsection (55)(a)(i) operational up to the point of interconnection with an existing
             764      transmission grid including:
             765          (A) a wind turbine;
             766          (B) generating equipment;
             767          (C) a control and monitoring system;
             768          (D) a power line;
             769          (E) substation equipment;



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             770
         (F) lighting;
             771          (G) fencing;
             772          (H) pipes; or
             773          (I) other equipment used for locating a power line or pole; and
             774          (b) this Subsection (55) does not apply to:
             775          (i) tangible personal property used in construction of:
             776          (A) a new alternative energy electricity production facility; or
             777          (B) the increase in the capacity of an alternative energy electricity production facility;
             778          (ii) contracted services required for construction and routine maintenance activities;
             779      and
             780          (iii) unless the tangible personal property is used or acquired for an increase in capacity
             781      of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal property used or
             782      acquired after:
             783          (A) the alternative energy electricity production facility described in Subsection
             784      (55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
             785          (B) the increased capacity described in Subsection (55)(a)(i) is operational as described
             786      in Subsection (55)(a)(iii);
             787          (56) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
             788      on or before June 30, 2027, of tangible personal property that:
             789          (i) is leased or purchased for or by a facility that:
             790          (A) is a waste energy production facility;
             791          (B) is located in the state; and
             792          (C) (I) becomes operational on or after July 1, 2004; or
             793          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             794      2004, as a result of the use of the tangible personal property;
             795          (ii) has an economic life of five or more years; and
             796          (iii) is used to make the facility or the increase in capacity of the facility described in
             797      Subsection (56)(a)(i) operational up to the point of interconnection with an existing
             798      transmission grid including:
             799          (A) generating equipment;
             800          (B) a control and monitoring system;



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             801
         (C) a power line;
             802          (D) substation equipment;
             803          (E) lighting;
             804          (F) fencing;
             805          (G) pipes; or
             806          (H) other equipment used for locating a power line or pole; and
             807          (b) this Subsection (56) does not apply to:
             808          (i) tangible personal property used in construction of:
             809          (A) a new waste energy facility; or
             810          (B) the increase in the capacity of a waste energy facility;
             811          (ii) contracted services required for construction and routine maintenance activities;
             812      and
             813          (iii) unless the tangible personal property is used or acquired for an increase in capacity
             814      described in Subsection (56)(a)(i)(C)(II), tangible personal property used or acquired after:
             815          (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
             816      described in Subsection (56)(a)(iii); or
             817          (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
             818      in Subsection (56)(a)(iii);
             819          (57) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
             820      or before June 30, 2027, of tangible personal property that:
             821          (i) is leased or purchased for or by a facility that:
             822          (A) is located in the state;
             823          (B) produces fuel from alternative energy, including:
             824          (I) methanol; or
             825          (II) ethanol; and
             826          (C) (I) becomes operational on or after July 1, 2004; or
             827          (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as
             828      a result of the installation of the tangible personal property;
             829          (ii) has an economic life of five or more years; and
             830          (iii) is installed on the facility described in Subsection (57)(a)(i);
             831          (b) this Subsection (57) does not apply to:



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             832
         (i) tangible personal property used in construction of:
             833          (A) a new facility described in Subsection (57)(a)(i); or
             834          (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
             835          (ii) contracted services required for construction and routine maintenance activities;
             836      and
             837          (iii) unless the tangible personal property is used or acquired for an increase in capacity
             838      described in Subsection (57)(a)(i)(C)(II), tangible personal property used or acquired after:
             839          (A) the facility described in Subsection (57)(a)(i) is operational; or
             840          (B) the increased capacity described in Subsection (57)(a)(i) is operational;
             841          (58) (a) subject to Subsection (58)(b) or (c), sales of tangible personal property or a
             842      product transferred electronically to a person within this state if that tangible personal property
             843      or product transferred electronically is subsequently shipped outside the state and incorporated
             844      pursuant to contract into and becomes a part of real property located outside of this state;
             845          (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
             846      state or political entity to which the tangible personal property is shipped imposes a sales, use,
             847      gross receipts, or other similar transaction excise tax on the transaction against which the other
             848      state or political entity allows a credit for sales and use taxes imposed by this chapter; and
             849          (c) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             850      a person may claim the exemption allowed by this Subsection (58) for a sale by filing for a
             851      refund:
             852          (i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
             853          (ii) as if this Subsection (58) as in effect on July 1, 2008, were in effect on the day on
             854      which the sale is made;
             855          (iii) if the person did not claim the exemption allowed by this Subsection (58) for the
             856      sale prior to filing for the refund;
             857          (iv) for sales and use taxes paid under this chapter on the sale;
             858          (v) in accordance with Section 59-1-1410 ; and
             859          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             860      the person files for the refund on or before June 30, 2011;
             861          (59) purchases:
             862          (a) of one or more of the following items in printed or electronic format:



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             863
         (i) a list containing information that includes one or more:
             864          (A) names; or
             865          (B) addresses; or
             866          (ii) a database containing information that includes one or more:
             867          (A) names; or
             868          (B) addresses; and
             869          (b) used to send direct mail;
             870          (60) redemptions or repurchases of a product by a person if that product was:
             871          (a) delivered to a pawnbroker as part of a pawn transaction; and
             872          (b) redeemed or repurchased within the time period established in a written agreement
             873      between the person and the pawnbroker for redeeming or repurchasing the product;
             874          (61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
             875          (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
             876      and
             877          (ii) has a useful economic life of one or more years; and
             878          (b) the following apply to Subsection (61)(a):
             879          (i) telecommunications enabling or facilitating equipment, machinery, or software;
             880          (ii) telecommunications equipment, machinery, or software required for 911 service;
             881          (iii) telecommunications maintenance or repair equipment, machinery, or software;
             882          (iv) telecommunications switching or routing equipment, machinery, or software; or
             883          (v) telecommunications transmission equipment, machinery, or software;
             884          (62) (a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
             885      personal property or a product transferred electronically that are used in the research and
             886      development of alternative energy technology; and
             887          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             888      commission may, for purposes of Subsection (62)(a), make rules defining what constitutes
             889      purchases of tangible personal property or a product transferred electronically that are used in
             890      the research and development of alternative energy technology;
             891          (63) (a) purchases of tangible personal property or a product transferred electronically
             892      if:
             893          (i) the tangible personal property or product transferred electronically is:



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             894
         (A) purchased outside of this state;
             895          (B) brought into this state at any time after the purchase described in Subsection
             896      (63)(a)(i)(A); and
             897          (C) used in conducting business in this state; and
             898          (ii) for:
             899          (A) tangible personal property or a product transferred electronically other than the
             900      tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property
             901      for a purpose for which the property is designed occurs outside of this state; or
             902          (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             903      outside of this state;
             904          (b) the exemption provided for in Subsection (63)(a) does not apply to:
             905          (i) a lease or rental of tangible personal property or a product transferred electronically;
             906      or
             907          (ii) a sale of a vehicle exempt under Subsection (33); and
             908          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             909      purposes of Subsection (63)(a), the commission may by rule define what constitutes the
             910      following:
             911          (i) conducting business in this state if that phrase has the same meaning in this
             912      Subsection (63) as in Subsection (24);
             913          (ii) the first use of tangible personal property or a product transferred electronically if
             914      that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
             915          (iii) a purpose for which tangible personal property or a product transferred
             916      electronically is designed if that phrase has the same meaning in this Subsection (63) as in
             917      Subsection (24);
             918          (64) sales of disposable home medical equipment or supplies if:
             919          (a) a person presents a prescription for the disposable home medical equipment or
             920      supplies;
             921          (b) the disposable home medical equipment or supplies are used exclusively by the
             922      person to whom the prescription described in Subsection (64)(a) is issued; and
             923          (c) the disposable home medical equipment and supplies are listed as eligible for
             924      payment under:



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             925
         (i) Title XVIII, federal Social Security Act; or
             926          (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
             927          (65) sales:
             928          (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
             929      District Act; or
             930          (b) of tangible personal property to a subcontractor of a public transit district, if the
             931      tangible personal property is:
             932          (i) clearly identified; and
             933          (ii) installed or converted to real property owned by the public transit district;
             934          (66) sales of construction materials:
             935          (a) purchased on or after July 1, 2010;
             936          (b) purchased by, on behalf of, or for the benefit of an international airport:
             937          (i) located within a county of the first class; and
             938          (ii) that has a United States customs office on its premises; and
             939          (c) if the construction materials are:
             940          (i) clearly identified;
             941          (ii) segregated; and
             942          (iii) installed or converted to real property:
             943          (A) owned or operated by the international airport described in Subsection (66)(b); and
             944          (B) located at the international airport described in Subsection (66)(b);
             945          (67) sales of construction materials:
             946          (a) purchased on or after July 1, 2008;
             947          (b) purchased by, on behalf of, or for the benefit of a new airport:
             948          (i) located within a county of the second class; and
             949          (ii) that is owned or operated by a city in which an airline as defined in Section
             950      59-2-102 is headquartered; and
             951          (c) if the construction materials are:
             952          (i) clearly identified;
             953          (ii) segregated; and
             954          (iii) installed or converted to real property:
             955          (A) owned or operated by the new airport described in Subsection (67)(b);



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             956
         (B) located at the new airport described in Subsection (67)(b); and
             957          (C) as part of the construction of the new airport described in Subsection (67)(b);
             958          (68) sales of fuel to a common carrier that is a railroad for use in a locomotive engine;
             959          (69) purchases and sales described in Section 63H-4-111 ;
             960          (70) (a) sales of tangible personal property to an aircraft maintenance, repair, and
             961      overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
             962      a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
             963      lists a state or country other than this state as the location of registry of the fixed wing turbine
             964      powered aircraft; or
             965          (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
             966      provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
             967      a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
             968      lists a state or country other than this state as the location of registry of the fixed wing turbine
             969      powered aircraft;
             970          (71) subject to Section 59-12-104.4 , sales of a textbook for a higher education course:
             971          (a) to a person admitted to an institution of higher education; and
             972          (b) by a seller, other than a bookstore owned by an institution of higher education, if
             973      51% or more of that seller's sales revenue for the previous calendar quarter are sales of a
             974      textbook for a higher education course;
             975          (72) a license fee or tax a municipality imposes in accordance with Subsection
             976      10-1-203 (5) on a purchaser from a business for which the municipality provides an enhanced
             977      level of municipal services;
             978          (73) amounts paid or charged for construction materials used in the construction of a
             979      new or expanding life science research and development facility in the state, if the construction
             980      materials are:
             981          (a) clearly identified;
             982          (b) segregated; and
             983          (c) installed or converted to real property;
             984          (74) amounts paid or charged for:
             985          (a) a purchase or lease of machinery and equipment that:
             986          (i) are used in performing qualified research:



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             987
         (A) as defined in Section 59-7-612 ;
             988          (B) in the state; and
             989          (C) with respect to which the purchaser pays or incurs a qualified research expense as
             990      defined in Section 59-7-612 ; and
             991          (ii) have an economic life of three or more years; and
             992          (b) normal operating repair or replacement parts:
             993          (i) for the machinery and equipment described in Subsection (74)(a); and
             994          (ii) that have an economic life of three or more years;
             995          (75) a sale or lease of tangible personal property used in the preparation of prepared
             996      food if:
             997          (a) for a sale:
             998          (i) the ownership of the seller and the ownership of the purchaser are identical; and
             999          (ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
             1000      tangible personal property prior to making the sale; or
             1001          (b) for a lease:
             1002          (i) the ownership of the lessor and the ownership of the lessee are identical; and
             1003          (ii) the lessor or the lessee paid a tax under this chapter on the purchase of that tangible
             1004      personal property prior to making the lease;
             1005          (76) (a) purchases of machinery or equipment if:
             1006          (i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
             1007      Gambling, and Recreation Industries, of the 2012 North American Industry Classification
             1008      System of the federal Executive Office of the President, Office of Management and Budget;
             1009          (ii) the machinery or equipment:
             1010          (A) has an economic life of three or more years; and
             1011          (B) is used by one or more persons who pay admission or user fees described in
             1012      Subsection 59-12-103 (1)(f) to the purchaser of the machinery and equipment; and
             1013          (iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
             1014          (A) amounts paid or charged as admission or user fees described in Subsection
             1015      59-12-103 (1)(f); and
             1016          (B) subject to taxation under this chapter;
             1017          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the



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             1018
     commission may make rules for verifying that 51% of a purchaser's sales revenue for the
             1019      previous calendar quarter is:
             1020          (i) amounts paid or charged as admission or user fees described in Subsection
             1021      59-12-103 (1)(f); and
             1022          (ii) subject to taxation under this chapter; and
             1023          (c) on or before the November 2018 interim meeting, and every five years after the
             1024      November 2018 interim meeting, the commission shall review the exemption provided in this
             1025      Subsection (76) and report to the Revenue and Taxation Interim Committee on:
             1026          (i) the revenue lost to the state and local taxing jurisdictions as a result of the
             1027      exemption;
             1028          (ii) the purpose and effectiveness of the exemption; and
             1029          (iii) whether the exemption benefits the state;
             1030          (77) purchases of a short-term lodging consumable by a business that provides
             1031      accommodations and services described in Subsection 59-12-103 (1)(i);
             1032          (78) amounts paid or charged to access a database:
             1033          (a) if the primary purpose for accessing the database is to view or retrieve information
             1034      from the database; and
             1035          (b) not including amounts paid or charged for a:
             1036          (i) digital audiowork;
             1037          (ii) digital audio-visual work; or
             1038          (iii) digital book;
             1039          (79) amounts paid or charged for a purchase or lease made by an electronic financial
             1040      payment service, of:
             1041          (a) machinery and equipment that:
             1042          (i) are used in the operation of the electronic financial payment service; and
             1043          (ii) have an economic life of three or more years; and
             1044          (b) normal operating repair or replacement parts that:
             1045          (i) are used in the operation of the electronic financial payment service; and
             1046          (ii) have an economic life of three or more years; [and]
             1047          (80) beginning on April 1, 2013, sales of a fuel cell as defined in Section 54-15-102 [.];
             1048      and



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             1049
         (81) amounts paid or charged for a purchase or lease of tangible personal property or a
             1050      product transferred electronically if the tangible personal property or product transferred
             1051      electronically:
             1052          (a) is stored, used, or consumed in the state; and
             1053          (b) is temporarily brought into the state from another state;
             1054          (i) during a disaster period as defined in Section 53-2a-1202 :
             1055          (ii) by an out-of-state business as defined in Section 53-2a-1202 ;
             1056          (iii) for a declared state disaster or emergency as defined in Section 53-2a-1202 ; and
             1057          (iv) for disaster- or emergency-related work as defined in Section 53-2a-1202 .
             1058          Section 11. Effective date.
             1059          (1) Except as provided in Subsection (2), this bill takes effect on May 13, 2014.
             1060          (2) The actions affecting Section 59-12-104 take effect on July 1, 2014.
             1061          Section 21. Retrospective operation.
             1062          The actions affecting the following sections have retrospective operation for a taxable
             1063      year beginning on or after January 1, 2014:
             1064          (1) Section 59-7-102 ;
             1065          (2) Section 59-10-104 ; and
             1066          (3) Section 59-10-403 .


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