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7 LONG TITLE
8 General Description:
9 This bill enacts a sales and use tax exemption.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines a term;
13 ▸ enacts a sales and use tax exemption for certain purchases or leases made by a
14 drilling equipment manufacturer;
15 ▸ provides that for a certain time period, the exemption may be claimed only by filing
16 for a partial refund of the tax paid; and
17 ▸ makes technical and conforming changes.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 This bill provides a special effective date.
22 Utah Code Sections Affected:
23 AMENDS:
24 59-12-102, as last amended by Laws of Utah 2014, Chapters 380 and 414
25 59-12-104, as last amended by Laws of Utah 2014, Chapters 24, 27, 122, 376, and 380
26
27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 59-12-102 is amended to read:
29 59-12-102. Definitions.
30 As used in this chapter:
31 (1) "800 service" means a telecommunications service that:
32 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
33 (b) is typically marketed:
34 (i) under the name 800 toll-free calling;
35 (ii) under the name 855 toll-free calling;
36 (iii) under the name 866 toll-free calling;
37 (iv) under the name 877 toll-free calling;
38 (v) under the name 888 toll-free calling; or
39 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
40 Federal Communications Commission.
41 (2) (a) "900 service" means an inbound toll telecommunications service that:
42 (i) a subscriber purchases;
43 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
44 the subscriber's:
45 (A) prerecorded announcement; or
46 (B) live service; and
47 (iii) is typically marketed:
48 (A) under the name 900 service; or
49 (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
50 Communications Commission.
51 (b) "900 service" does not include a charge for:
52 (i) a collection service a seller of a telecommunications service provides to a
53 subscriber; or
54 (ii) the following a subscriber sells to the subscriber's customer:
55 (A) a product; or
56 (B) a service.
57 (3) (a) "Admission or user fees" includes season passes.
58 (b) "Admission or user fees" does not include annual membership dues to private
59 organizations.
60 (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
61 November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
62 Agreement after November 12, 2002.
63 (5) "Agreement combined tax rate" means the sum of the tax rates:
64 (a) listed under Subsection (6); and
65 (b) that are imposed within a local taxing jurisdiction.
66 (6) "Agreement sales and use tax" means a tax imposed under:
67 (a) Subsection 59-12-103(2)(a)(i)(A);
68 (b) Subsection 59-12-103(2)(b)(i);
69 (c) Subsection 59-12-103(2)(c)(i);
70 (d) Subsection 59-12-103(2)(d)(i)(A)(I);
71 (e) Section 59-12-204;
72 (f) Section 59-12-401;
73 (g) Section 59-12-402;
74 (h) Section 59-12-703;
75 (i) Section 59-12-802;
76 (j) Section 59-12-804;
77 (k) Section 59-12-1102;
78 (l) Section 59-12-1302;
79 (m) Section 59-12-1402;
80 (n) Section 59-12-1802;
81 (o) Section 59-12-2003;
82 (p) Section 59-12-2103;
83 (q) Section 59-12-2213;
84 (r) Section 59-12-2214;
85 (s) Section 59-12-2215;
86 (t) Section 59-12-2216;
87 (u) Section 59-12-2217; or
88 (v) Section 59-12-2218.
89 (7) "Aircraft" is as defined in Section 72-10-102.
90 (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
91 (a) except for:
92 (i) an airline as defined in Section 59-2-102; or
93 (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
94 includes a corporation that is qualified to do business but is not otherwise doing business in the
95 state, of an airline; and
96 (b) that has the workers, expertise, and facilities to perform the following, regardless of
97 whether the business entity performs the following in this state:
98 (i) check, diagnose, overhaul, and repair:
99 (A) an onboard system of a fixed wing turbine powered aircraft; and
100 (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
101 (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
102 engine;
103 (iii) perform at least the following maintenance on a fixed wing turbine powered
104 aircraft:
105 (A) an inspection;
106 (B) a repair, including a structural repair or modification;
107 (C) changing landing gear; and
108 (D) addressing issues related to an aging fixed wing turbine powered aircraft;
109 (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
110 completely apply new paint to the fixed wing turbine powered aircraft; and
111 (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
112 results in a change in the fixed wing turbine powered aircraft's certification requirements by the
113 authority that certifies the fixed wing turbine powered aircraft.
114 (9) "Alcoholic beverage" means a beverage that:
115 (a) is suitable for human consumption; and
116 (b) contains .5% or more alcohol by volume.
117 (10) "Alternative energy" means:
118 (a) biomass energy;
119 (b) geothermal energy;
120 (c) hydroelectric energy;
121 (d) solar energy;
122 (e) wind energy; or
123 (f) energy that is derived from:
124 (i) coal-to-liquids;
125 (ii) nuclear fuel;
126 (iii) oil-impregnated diatomaceous earth;
127 (iv) oil sands;
128 (v) oil shale;
129 (vi) petroleum coke; or
130 (vii) waste heat from:
131 (A) an industrial facility; or
132 (B) a power station in which an electric generator is driven through a process in which
133 water is heated, turns into steam, and spins a steam turbine.
134 (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
135 facility" means a facility that:
136 (i) uses alternative energy to produce electricity; and
137 (ii) has a production capacity of two megawatts or greater.
138 (b) A facility is an alternative energy electricity production facility regardless of
139 whether the facility is:
140 (i) connected to an electric grid; or
141 (ii) located on the premises of an electricity consumer.
142 (12) (a) "Ancillary service" means a service associated with, or incidental to, the
143 provision of telecommunications service.
144 (b) "Ancillary service" includes:
145 (i) a conference bridging service;
146 (ii) a detailed communications billing service;
147 (iii) directory assistance;
148 (iv) a vertical service; or
149 (v) a voice mail service.
150 (13) "Area agency on aging" is as defined in Section 62A-3-101.
151 (14) "Assisted amusement device" means an amusement device, skill device, or ride
152 device that is started and stopped by an individual:
153 (a) who is not the purchaser or renter of the right to use or operate the amusement
154 device, skill device, or ride device; and
155 (b) at the direction of the seller of the right to use the amusement device, skill device,
156 or ride device.
157 (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
158 washing of tangible personal property if the cleaning or washing labor is primarily performed
159 by an individual:
160 (a) who is not the purchaser of the cleaning or washing of the tangible personal
161 property; and
162 (b) at the direction of the seller of the cleaning or washing of the tangible personal
163 property.
164 (16) "Authorized carrier" means:
165 (a) in the case of vehicles operated over public highways, the holder of credentials
166 indicating that the vehicle is or will be operated pursuant to both the International Registration
167 Plan and the International Fuel Tax Agreement;
168 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
169 certificate or air carrier's operating certificate; or
170 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
171 stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
172 stock in more than one state.
173 (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
174 following that is used as the primary source of energy to produce fuel or electricity:
175 (i) material from a plant or tree; or
176 (ii) other organic matter that is available on a renewable basis, including:
177 (A) slash and brush from forests and woodlands;
178 (B) animal waste;
179 (C) waste vegetable oil;
180 (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
181 wastewater residuals, or through the conversion of a waste material through a nonincineration,
182 thermal conversion process;
183 (E) aquatic plants; and
184 (F) agricultural products.
185 (b) "Biomass energy" does not include:
186 (i) black liquor; or
187 (ii) treated woods.
188 (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
189 property, products, or services if the tangible personal property, products, or services are:
190 (i) distinct and identifiable; and
191 (ii) sold for one nonitemized price.
192 (b) "Bundled transaction" does not include:
193 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
194 the basis of the selection by the purchaser of the items of tangible personal property included in
195 the transaction;
196 (ii) the sale of real property;
197 (iii) the sale of services to real property;
198 (iv) the retail sale of tangible personal property and a service if:
199 (A) the tangible personal property:
200 (I) is essential to the use of the service; and
201 (II) is provided exclusively in connection with the service; and
202 (B) the service is the true object of the transaction;
203 (v) the retail sale of two services if:
204 (A) one service is provided that is essential to the use or receipt of a second service;
205 (B) the first service is provided exclusively in connection with the second service; and
206 (C) the second service is the true object of the transaction;
207 (vi) a transaction that includes tangible personal property or a product subject to
208 taxation under this chapter and tangible personal property or a product that is not subject to
209 taxation under this chapter if the:
210 (A) seller's purchase price of the tangible personal property or product subject to
211 taxation under this chapter is de minimis; or
212 (B) seller's sales price of the tangible personal property or product subject to taxation
213 under this chapter is de minimis; and
214 (vii) the retail sale of tangible personal property that is not subject to taxation under
215 this chapter and tangible personal property that is subject to taxation under this chapter if:
216 (A) that retail sale includes:
217 (I) food and food ingredients;
218 (II) a drug;
219 (III) durable medical equipment;
220 (IV) mobility enhancing equipment;
221 (V) an over-the-counter drug;
222 (VI) a prosthetic device; or
223 (VII) a medical supply; and
224 (B) subject to Subsection (18)(f):
225 (I) the seller's purchase price of the tangible personal property subject to taxation under
226 this chapter is 50% or less of the seller's total purchase price of that retail sale; or
227 (II) the seller's sales price of the tangible personal property subject to taxation under
228 this chapter is 50% or less of the seller's total sales price of that retail sale.
229 (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
230 service that is distinct and identifiable does not include:
231 (A) packaging that:
232 (I) accompanies the sale of the tangible personal property, product, or service; and
233 (II) is incidental or immaterial to the sale of the tangible personal property, product, or
234 service;
235 (B) tangible personal property, a product, or a service provided free of charge with the
236 purchase of another item of tangible personal property, a product, or a service; or
237 (C) an item of tangible personal property, a product, or a service included in the
238 definition of "purchase price."
239 (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
240 product, or a service is provided free of charge with the purchase of another item of tangible
241 personal property, a product, or a service if the sales price of the purchased item of tangible
242 personal property, product, or service does not vary depending on the inclusion of the tangible
243 personal property, product, or service provided free of charge.
244 (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
245 does not include a price that is separately identified by tangible personal property, product, or
246 service on the following, regardless of whether the following is in paper format or electronic
247 format:
248 (A) a binding sales document; or
249 (B) another supporting sales-related document that is available to a purchaser.
250 (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
251 supporting sales-related document that is available to a purchaser includes:
252 (A) a bill of sale;
253 (B) a contract;
254 (C) an invoice;
255 (D) a lease agreement;
256 (E) a periodic notice of rates and services;
257 (F) a price list;
258 (G) a rate card;
259 (H) a receipt; or
260 (I) a service agreement.
261 (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
262 property or a product subject to taxation under this chapter is de minimis if:
263 (A) the seller's purchase price of the tangible personal property or product is 10% or
264 less of the seller's total purchase price of the bundled transaction; or
265 (B) the seller's sales price of the tangible personal property or product is 10% or less of
266 the seller's total sales price of the bundled transaction.
267 (ii) For purposes of Subsection (18)(b)(vi), a seller:
268 (A) shall use the seller's purchase price or the seller's sales price to determine if the
269 purchase price or sales price of the tangible personal property or product subject to taxation
270 under this chapter is de minimis; and
271 (B) may not use a combination of the seller's purchase price and the seller's sales price
272 to determine if the purchase price or sales price of the tangible personal property or product
273 subject to taxation under this chapter is de minimis.
274 (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
275 contract to determine if the sales price of tangible personal property or a product is de minimis.
276 (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
277 the seller's purchase price and the seller's sales price to determine if tangible personal property
278 subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
279 price of that retail sale.
280 (19) "Certified automated system" means software certified by the governing board of
281 the agreement that:
282 (a) calculates the agreement sales and use tax imposed within a local taxing
283 jurisdiction:
284 (i) on a transaction; and
285 (ii) in the states that are members of the agreement;
286 (b) determines the amount of agreement sales and use tax to remit to a state that is a
287 member of the agreement; and
288 (c) maintains a record of the transaction described in Subsection (19)(a)(i).
289 (20) "Certified service provider" means an agent certified:
290 (a) by the governing board of the agreement; and
291 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
292 use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
293 own purchases.
294 (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
295 suitable for general use.
296 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
297 commission shall make rules:
298 (i) listing the items that constitute "clothing"; and
299 (ii) that are consistent with the list of items that constitute "clothing" under the
300 agreement.
301 (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
302 (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
303 fuels that does not constitute industrial use under Subsection [
304 under Subsection [
305 (24) (a) "Common carrier" means a person engaged in or transacting the business of
306 transporting passengers, freight, merchandise, or other property for hire within this state.
307 (b) (i) "Common carrier" does not include a person who, at the time the person is
308 traveling to or from that person's place of employment, transports a passenger to or from the
309 passenger's place of employment.
310 (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
311 Utah Administrative Rulemaking Act, the commission may make rules defining what
312 constitutes a person's place of employment.
313 (25) "Component part" includes:
314 (a) poultry, dairy, and other livestock feed, and their components;
315 (b) baling ties and twine used in the baling of hay and straw;
316 (c) fuel used for providing temperature control of orchards and commercial
317 greenhouses doing a majority of their business in wholesale sales, and for providing power for
318 off-highway type farm machinery; and
319 (d) feed, seeds, and seedlings.
320 (26) "Computer" means an electronic device that accepts information:
321 (a) (i) in digital form; or
322 (ii) in a form similar to digital form; and
323 (b) manipulates that information for a result based on a sequence of instructions.
324 (27) "Computer software" means a set of coded instructions designed to cause:
325 (a) a computer to perform a task; or
326 (b) automatic data processing equipment to perform a task.
327 (28) "Computer software maintenance contract" means a contract that obligates a seller
328 of computer software to provide a customer with:
329 (a) future updates or upgrades to computer software;
330 (b) support services with respect to computer software; or
331 (c) a combination of Subsections (28)(a) and (b).
332 (29) (a) "Conference bridging service" means an ancillary service that links two or
333 more participants of an audio conference call or video conference call.
334 (b) "Conference bridging service" may include providing a telephone number as part of
335 the ancillary service described in Subsection (29)(a).
336 (c) "Conference bridging service" does not include a telecommunications service used
337 to reach the ancillary service described in Subsection (29)(a).
338 (30) "Construction materials" means any tangible personal property that will be
339 converted into real property.
340 (31) "Delivered electronically" means delivered to a purchaser by means other than
341 tangible storage media.
342 (32) (a) "Delivery charge" means a charge:
343 (i) by a seller of:
344 (A) tangible personal property;
345 (B) a product transferred electronically; or
346 (C) services; and
347 (ii) for preparation and delivery of the tangible personal property, product transferred
348 electronically, or services described in Subsection (32)(a)(i) to a location designated by the
349 purchaser.
350 (b) "Delivery charge" includes a charge for the following:
351 (i) transportation;
352 (ii) shipping;
353 (iii) postage;
354 (iv) handling;
355 (v) crating; or
356 (vi) packing.
357 (33) "Detailed telecommunications billing service" means an ancillary service of
358 separately stating information pertaining to individual calls on a customer's billing statement.
359 (34) "Dietary supplement" means a product, other than tobacco, that:
360 (a) is intended to supplement the diet;
361 (b) contains one or more of the following dietary ingredients:
362 (i) a vitamin;
363 (ii) a mineral;
364 (iii) an herb or other botanical;
365 (iv) an amino acid;
366 (v) a dietary substance for use by humans to supplement the diet by increasing the total
367 dietary intake; or
368 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
369 described in Subsections (34)(b)(i) through (v);
370 (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
371 (A) tablet form;
372 (B) capsule form;
373 (C) powder form;
374 (D) softgel form;
375 (E) gelcap form; or
376 (F) liquid form; or
377 (ii) if the product is not intended for ingestion in a form described in Subsections
378 (34)(c)(i)(A) through (F), is not represented:
379 (A) as conventional food; and
380 (B) for use as a sole item of:
381 (I) a meal; or
382 (II) the diet; and
383 (d) is required to be labeled as a dietary supplement:
384 (i) identifiable by the "Supplemental Facts" box found on the label; and
385 (ii) as required by 21 C.F.R. Sec. 101.36.
386 [
387 shown in succession, imparts an impression of motion, together with accompanying sounds, if
388 any.
389 [
390 series of musical, spoken, or other sounds.
391 (b) "Digital audio work" includes a ringtone.
392 (37) "Digital book" means a work that is generally recognized in the ordinary and usual
393 sense as a book.
394 (38) (a) "Direct mail" means printed material delivered or distributed by United States
395 mail or other delivery service:
396 (i) to:
397 (A) a mass audience; or
398 (B) addressees on a mailing list provided:
399 (I) by a purchaser of the mailing list; or
400 (II) at the discretion of the purchaser of the mailing list; and
401 (ii) if the cost of the printed material is not billed directly to the recipients.
402 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
403 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
404 (c) "Direct mail" does not include multiple items of printed material delivered to a
405 single address.
406 (39) "Directory assistance" means an ancillary service of providing:
407 (a) address information; or
408 (b) telephone number information.
409 (40) (a) "Disposable home medical equipment or supplies" means medical equipment
410 or supplies that:
411 (i) cannot withstand repeated use; and
412 (ii) are purchased by, for, or on behalf of a person other than:
413 (A) a health care facility as defined in Section 26-21-2;
414 (B) a health care provider as defined in Section 78B-3-403;
415 (C) an office of a health care provider described in Subsection (40)(a)(ii)(B); or
416 (D) a person similar to a person described in Subsections (40)(a)(ii)(A) through (C).
417 (b) "Disposable home medical equipment or supplies" does not include:
418 (i) a drug;
419 (ii) durable medical equipment;
420 (iii) a hearing aid;
421 (iv) a hearing aid accessory;
422 (v) mobility enhancing equipment; or
423 (vi) tangible personal property used to correct impaired vision, including:
424 (A) eyeglasses; or
425 (B) contact lenses.
426 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
427 commission may by rule define what constitutes medical equipment or supplies.
428 (41) "Drilling equipment manufacturer" means a facility:
429 (a) located in the state;
430 (b) with respect to which 51% or more of the manufacturing activities of the facility
431 consist of manufacturing component parts of drilling equipment;
432 (c) that uses pressure of 800,000 or more pounds per square inch as part of the
433 manufacturing process; and
434 (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
435 manufacturing process.
436 [
437 a compound, substance, or preparation that is:
438 (i) recognized in:
439 (A) the official United States Pharmacopoeia;
440 (B) the official Homeopathic Pharmacopoeia of the United States;
441 (C) the official National Formulary; or
442 (D) a supplement to a publication listed in Subsections [
443 (C);
444 (ii) intended for use in the:
445 (A) diagnosis of disease;
446 (B) cure of disease;
447 (C) mitigation of disease;
448 (D) treatment of disease; or
449 (E) prevention of disease; or
450 (iii) intended to affect:
451 (A) the structure of the body; or
452 (B) any function of the body.
453 (b) "Drug" does not include:
454 (i) food and food ingredients;
455 (ii) a dietary supplement;
456 (iii) an alcoholic beverage; or
457 (iv) a prosthetic device.
458 [
459 equipment" means equipment that:
460 (i) can withstand repeated use;
461 (ii) is primarily and customarily used to serve a medical purpose;
462 (iii) generally is not useful to a person in the absence of illness or injury; and
463 (iv) is not worn in or on the body.
464 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
465 equipment described in Subsection [
466 (c) "Durable medical equipment" does not include mobility enhancing equipment.
467 [
468 (a) relating to technology; and
469 (b) having:
470 (i) electrical capabilities;
471 (ii) digital capabilities;
472 (iii) magnetic capabilities;
473 (iv) wireless capabilities;
474 (v) optical capabilities;
475 (vi) electromagnetic capabilities; or
476 (vii) capabilities similar to Subsections [
477 [
478 (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
479 Clearinghouse Activities, of the 2012 North American Industry Classification System of the
480 federal Executive Office of the President, Office of Management and Budget; and
481 (b) that performs electronic financial payment services.
482 [
483 [
484 (a) rail for the use of public transit; or
485 (b) a separate right-of-way for the use of public transit.
486 [
487 (a) is powered by turbine engines;
488 (b) operates on jet fuel; and
489 (c) has wings that are permanently attached to the fuselage of the aircraft.
490 [
491 radio communication between fixed points.
492 [
493 (i) regardless of whether the substances are in:
494 (A) liquid form;
495 (B) concentrated form;
496 (C) solid form;
497 (D) frozen form;
498 (E) dried form; or
499 (F) dehydrated form; and
500 (ii) that are:
501 (A) sold for:
502 (I) ingestion by humans; or
503 (II) chewing by humans; and
504 (B) consumed for the substance's:
505 (I) taste; or
506 (II) nutritional value.
507 (b) "Food and food ingredients" includes an item described in Subsection [
508 (91)(b)(iii).
509 (c) "Food and food ingredients" does not include:
510 (i) an alcoholic beverage;
511 (ii) tobacco; or
512 (iii) prepared food.
513 [
514 (i) (A) made by a school; or
515 (B) made by a school student;
516 (ii) that are for the purpose of raising funds for the school to purchase equipment,
517 materials, or provide transportation; and
518 (iii) that are part of an officially sanctioned school activity.
519 (b) For purposes of Subsection [
520 means a school activity:
521 (i) that is conducted in accordance with a formal policy adopted by the school or school
522 district governing the authorization and supervision of fundraising activities;
523 (ii) that does not directly or indirectly compensate an individual teacher or other
524 educational personnel by direct payment, commissions, or payment in kind; and
525 (iii) the net or gross revenues from which are deposited in a dedicated account
526 controlled by the school or school district.
527 [
528 flows outward from the earth that is used as the sole source of energy to produce electricity.
529 [
530 agreement that is:
531 (a) authorized to administer the agreement; and
532 (b) established in accordance with the agreement.
533 [
534 means:
535 (i) the executive branch of the state, including all departments, institutions, boards,
536 divisions, bureaus, offices, commissions, and committees;
537 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
538 Office of the Court Administrator, and similar administrative units in the judicial branch;
539 (iii) the legislative branch of the state, including the House of Representatives, the
540 Senate, the Legislative Printing Office, the Office of Legislative Research and General
541 Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
542 Analyst;
543 (iv) the National Guard;
544 (v) an independent entity as defined in Section 63E-1-102; or
545 (vi) a political subdivision as defined in Section 17B-1-102.
546 (b) "Governmental entity" does not include the state systems of public and higher
547 education, including:
548 (i) a college campus of the Utah College of Applied Technology;
549 (ii) a school;
550 (iii) the State Board of Education;
551 (iv) the State Board of Regents; or
552 (v) an institution of higher education.
553 [
554 produce electricity.
555 [
556 or other fuels:
557 (a) in mining or extraction of minerals;
558 (b) in agricultural operations to produce an agricultural product up to the time of
559 harvest or placing the agricultural product into a storage facility, including:
560 (i) commercial greenhouses;
561 (ii) irrigation pumps;
562 (iii) farm machinery;
563 (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
564 under Title 41, Chapter 1a, Part 2, Registration; and
565 (v) other farming activities;
566 (c) in manufacturing tangible personal property at an establishment described in SIC
567 Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
568 Executive Office of the President, Office of Management and Budget;
569 (d) by a scrap recycler if:
570 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
571 one or more of the following items into prepared grades of processed materials for use in new
572 products:
573 (A) iron;
574 (B) steel;
575 (C) nonferrous metal;
576 (D) paper;
577 (E) glass;
578 (F) plastic;
579 (G) textile; or
580 (H) rubber; and
581 (ii) the new products under Subsection [
582 nonrecycled materials; or
583 (e) in producing a form of energy or steam described in Subsection 54-2-1(2)(a) by a
584 cogeneration facility as defined in Section 54-2-1.
585 [
586 means a charge for installing:
587 (i) tangible personal property; or
588 (ii) a product transferred electronically.
589 (b) "Installation charge" does not include a charge for:
590 (i) repairs or renovations of:
591 (A) tangible personal property; or
592 (B) a product transferred electronically; or
593 (ii) attaching tangible personal property or a product transferred electronically:
594 (A) to other tangible personal property; and
595 (B) as part of a manufacturing or fabrication process.
596 [
597 listed in Section 53B-2-101.
598 [
599 personal property or a product transferred electronically for:
600 (i) (A) a fixed term; or
601 (B) an indeterminate term; and
602 (ii) consideration.
603 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
604 amount of consideration may be increased or decreased by reference to the amount realized
605 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
606 Code.
607 (c) "Lease" or "rental" does not include:
608 (i) a transfer of possession or control of property under a security agreement or
609 deferred payment plan that requires the transfer of title upon completion of the required
610 payments;
611 (ii) a transfer of possession or control of property under an agreement that requires the
612 transfer of title:
613 (A) upon completion of required payments; and
614 (B) if the payment of an option price does not exceed the greater of:
615 (I) $100; or
616 (II) 1% of the total required payments; or
617 (iii) providing tangible personal property along with an operator for a fixed period of
618 time or an indeterminate period of time if the operator is necessary for equipment to perform as
619 designed.
620 (d) For purposes of Subsection [
621 equipment to perform as designed if the operator's duties exceed the:
622 (i) set-up of tangible personal property;
623 (ii) maintenance of tangible personal property; or
624 (iii) inspection of tangible personal property.
625 [
626 classified under the following NAICS codes of the 2007 North American Industry
627 Classification System of the federal Executive Office of the President, Office of Management
628 and Budget:
629 (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
630 (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
631 Manufacturing; or
632 (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
633 [
634 leased, or rented by a life science establishment if research and development is performed in
635 51% or more of the total area of the facility.
636 [
637 media if the tangible storage media is not physically transferred to the purchaser.
638 [
639 (a) county that is authorized to impose an agreement sales and use tax;
640 (b) city that is authorized to impose an agreement sales and use tax; or
641 (c) town that is authorized to impose an agreement sales and use tax.
642 [
643 [
644 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
645 Industrial Classification Manual of the federal Executive Office of the President, Office of
646 Management and Budget;
647 (b) a scrap recycler if:
648 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
649 one or more of the following items into prepared grades of processed materials for use in new
650 products:
651 (A) iron;
652 (B) steel;
653 (C) nonferrous metal;
654 (D) paper;
655 (E) glass;
656 (F) plastic;
657 (G) textile; or
658 (H) rubber; and
659 (ii) the new products under Subsection [
660 nonrecycled materials; or
661 (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
662 placed in service on or after May 1, 2006.
663 [
664 related to a producer described in Subsection 59-12-104(20)(a) as a:
665 (a) child or stepchild, regardless of whether the child or stepchild is:
666 (i) an adopted child or adopted stepchild; or
667 (ii) a foster child or foster stepchild;
668 (b) grandchild or stepgrandchild;
669 (c) grandparent or stepgrandparent;
670 (d) nephew or stepnephew;
671 (e) niece or stepniece;
672 (f) parent or stepparent;
673 (g) sibling or stepsibling;
674 (h) spouse;
675 (i) person who is the spouse of a person described in Subsections [
676 (g); or
677 (j) person similar to a person described in Subsections [
678 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
679 Administrative Rulemaking Act.
680 [
681 [
682 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
683 [
684 regardless of the technology used, if:
685 (i) the origination point of the conveyance, routing, or transmission is not fixed;
686 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
687 (iii) the origination point described in Subsection [
688 point described in Subsection [
689 (b) "Mobile wireless service" includes a telecommunications service that is provided
690 by a commercial mobile radio service provider.
691 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
692 commission may by rule define "commercial mobile radio service provider."
693 [
694 equipment" means equipment that is:
695 (i) primarily and customarily used to provide or increase the ability to move from one
696 place to another;
697 (ii) appropriate for use in a:
698 (A) home; or
699 (B) motor vehicle; and
700 (iii) not generally used by persons with normal mobility.
701 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
702 the equipment described in Subsection [
703 (c) "Mobility enhancing equipment" does not include:
704 (i) a motor vehicle;
705 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
706 vehicle manufacturer;
707 (iii) durable medical equipment; or
708 (iv) a prosthetic device.
709 [
710 selected a certified service provider as the seller's agent to perform all of the seller's sales and
711 use tax functions for agreement sales and use taxes other than the seller's obligation under
712 Section 59-12-124 to remit a tax on the seller's own purchases.
713 [
714 (a) except as provided in Subsection [
715 system to perform the seller's sales tax functions for agreement sales and use taxes; and
716 (b) retains responsibility for remitting all of the sales tax:
717 (i) collected by the seller; and
718 (ii) to the appropriate local taxing jurisdiction.
719 [
720 registered under the agreement that has:
721 (i) sales in at least five states that are members of the agreement;
722 (ii) total annual sales revenues of at least $500,000,000;
723 (iii) a proprietary system that calculates the amount of tax:
724 (A) for an agreement sales and use tax; and
725 (B) due to each local taxing jurisdiction; and
726 (iv) entered into a performance agreement with the governing board of the agreement.
727 (b) For purposes of Subsection [
728 group of sellers using the same proprietary system.
729 [
730 not a model 1 seller, model 2 seller, or model 3 seller.
731 [
732 [
733 [
734 (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
735 other hydrocarbons, or otherwise treated;
736 (b) yield mixtures of liquid hydrocarbon; and
737 (c) require further processing other than mechanical blending before becoming finished
738 petroleum products.
739 [
740 kerogen material that yields petroleum upon heating and distillation.
741 [
742 software maintenance contract that a customer is not obligated to purchase as a condition to the
743 retail sale of computer software.
744 [
745 energy.
746 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
747 personal property.
748 [
749 transmission of a coded radio signal for the purpose of activating a specific pager.
750 (b) For purposes of Subsection [
751 includes a transmission by message or sound.
752 [
753 [
754 [
755 property attached to real property:
756 (i) the attachment of the tangible personal property to the real property:
757 (A) is essential to the use of the tangible personal property; and
758 (B) suggests that the tangible personal property will remain attached to the real
759 property in the same place over the useful life of the tangible personal property; or
760 (ii) if the tangible personal property is detached from the real property, the detachment
761 would:
762 (A) cause substantial damage to the tangible personal property; or
763 (B) require substantial alteration or repair of the real property to which the tangible
764 personal property is attached.
765 (b) "Permanently attached to real property" includes:
766 (i) the attachment of an accessory to the tangible personal property if the accessory is:
767 (A) essential to the operation of the tangible personal property; and
768 (B) attached only to facilitate the operation of the tangible personal property;
769 (ii) a temporary detachment of tangible personal property from real property for a
770 repair or renovation if the repair or renovation is performed where the tangible personal
771 property and real property are located; or
772 (iii) property attached to oil, gas, or water pipelines, except for the property listed in
773 Subsection [
774 (c) "Permanently attached to real property" does not include:
775 (i) the attachment of portable or movable tangible personal property to real property if
776 that portable or movable tangible personal property is attached to real property only for:
777 (A) convenience;
778 (B) stability; or
779 (C) for an obvious temporary purpose;
780 (ii) the detachment of tangible personal property from real property except for the
781 detachment described in Subsection [
782 (iii) an attachment of the following tangible personal property to real property if the
783 attachment to real property is only through a line that supplies water, electricity, gas,
784 telecommunications, cable, or supplies a similar item as determined by the commission by rule
785 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
786 (A) a computer;
787 (B) a telephone;
788 (C) a television; or
789 (D) tangible personal property similar to Subsections [
790 as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
791 Administrative Rulemaking Act; or
792 (iv) an item listed in Subsection [
793 [
794 association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
795 city, municipality, district, or other local governmental entity of the state, or any group or
796 combination acting as a unit.
797 [
798 (a) for telecommunications service other than mobile telecommunications service,
799 means the street address representative of where the customer's use of the telecommunications
800 service primarily occurs, which shall be:
801 (i) the residential street address of the customer; or
802 (ii) the primary business street address of the customer; or
803 (b) for mobile telecommunications service, is as defined in the Mobile
804 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
805 [
806 obtains by making a payment on a call-by-call basis:
807 (i) through the use of a:
808 (A) bank card;
809 (B) credit card;
810 (C) debit card; or
811 (D) travel card; or
812 (ii) by a charge made to a telephone number that is not associated with the origination
813 or termination of the telecommunications service.
814 (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
815 service, that would be a prepaid wireless calling service if the service were exclusively a
816 telecommunications service.
817 [
818 a medium described in Subsection 59-12-104(54)(a).
819 [
820 (a) that allows a purchaser access to telecommunications service that is exclusively
821 telecommunications service;
822 (b) that:
823 (i) is paid for in advance; and
824 (ii) enables the origination of a call using an:
825 (A) access number; or
826 (B) authorization code;
827 (c) that is dialed:
828 (i) manually; or
829 (ii) electronically; and
830 (d) sold in predetermined units or dollars that decline:
831 (i) by a known amount; and
832 (ii) with use.
833 [
834 (a) that provides the right to utilize:
835 (i) mobile wireless service; and
836 (ii) other service that is not a telecommunications service, including:
837 (A) the download of a product transferred electronically;
838 (B) a content service; or
839 (C) an ancillary service;
840 (b) that:
841 (i) is paid for in advance; and
842 (ii) enables the origination of a call using an:
843 (A) access number; or
844 (B) authorization code;
845 (c) that is dialed:
846 (i) manually; or
847 (ii) electronically; and
848 (d) sold in predetermined units or dollars that decline:
849 (i) by a known amount; and
850 (ii) with use.
851 [
852 (i) food:
853 (A) sold in a heated state; or
854 (B) heated by a seller;
855 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
856 item; or
857 (iii) except as provided in Subsection [
858 provided by the seller, including a:
859 (A) plate;
860 (B) knife;
861 (C) fork;
862 (D) spoon;
863 (E) glass;
864 (F) cup;
865 (G) napkin; or
866 (H) straw.
867 (b) "Prepared food" does not include:
868 (i) food that a seller only:
869 (A) cuts;
870 (B) repackages; or
871 (C) pasteurizes; or
872 (ii) (A) the following:
873 (I) raw egg;
874 (II) raw fish;
875 (III) raw meat;
876 (IV) raw poultry; or
877 (V) a food containing an item described in Subsections [
878 (IV); and
879 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
880 Food and Drug Administration's Food Code that a consumer cook the items described in
881 Subsection [
882 (iii) the following if sold without eating utensils provided by the seller:
883 (A) food and food ingredients sold by a seller if the seller's proper primary
884 classification under the 2002 North American Industry Classification System of the federal
885 Executive Office of the President, Office of Management and Budget, is manufacturing in
886 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
887 Manufacturing;
888 (B) food and food ingredients sold in an unheated state:
889 (I) by weight or volume; and
890 (II) as a single item; or
891 (C) a bakery item, including:
892 (I) a bagel;
893 (II) a bar;
894 (III) a biscuit;
895 (IV) bread;
896 (V) a bun;
897 (VI) a cake;
898 (VII) a cookie;
899 (VIII) a croissant;
900 (IX) a danish;
901 (X) a donut;
902 (XI) a muffin;
903 (XII) a pastry;
904 (XIII) a pie;
905 (XIV) a roll;
906 (XV) a tart;
907 (XVI) a torte; or
908 (XVII) a tortilla.
909 (c) An eating utensil provided by the seller does not include the following used to
910 transport the food:
911 (i) a container; or
912 (ii) packaging.
913 [
914 (a) (i) orally;
915 (ii) in writing;
916 (iii) electronically; or
917 (iv) by any other manner of transmission; and
918 (b) by a licensed practitioner authorized by the laws of a state.
919 [
920 computer software" means computer software that is not designed and developed:
921 (i) by the author or other creator of the computer software; and
922 (ii) to the specifications of a specific purchaser.
923 (b) "Prewritten computer software" includes:
924 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
925 software is not designed and developed:
926 (A) by the author or other creator of the computer software; and
927 (B) to the specifications of a specific purchaser;
928 (ii) computer software designed and developed by the author or other creator of the
929 computer software to the specifications of a specific purchaser if the computer software is sold
930 to a person other than the purchaser; or
931 (iii) except as provided in Subsection [
932 prewritten portion of prewritten computer software:
933 (A) that is modified or enhanced to any degree; and
934 (B) if the modification or enhancement described in Subsection [
935 designed and developed to the specifications of a specific purchaser.
936 (c) "Prewritten computer software" does not include a modification or enhancement
937 described in Subsection [
938 are:
939 (i) reasonable; and
940 (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), separately stated on the
941 invoice or other statement of price provided to the purchaser at the time of sale or later, as
942 demonstrated by:
943 (A) the books and records the seller keeps at the time of the transaction in the regular
944 course of business, including books and records the seller keeps at the time of the transaction in
945 the regular course of business for nontax purposes;
946 (B) a preponderance of the facts and circumstances at the time of the transaction; and
947 (C) the understanding of all of the parties to the transaction.
948 [
949 (i) that entitles a customer to exclusive or priority use of one or more communications
950 channels between or among termination points; and
951 (ii) regardless of the manner in which the one or more communications channels are
952 connected.
953 (b) "Private communications service" includes the following provided in connection
954 with the use of one or more communications channels:
955 (i) an extension line;
956 (ii) a station;
957 (iii) switching capacity; or
958 (iv) another associated service that is provided in connection with the use of one or
959 more communications channels as defined in Section 59-12-215.
960 [
961 electronically" means a product transferred electronically that would be subject to a tax under
962 this chapter if that product was transferred in a manner other than electronically.
963 (b) "Product transferred electronically" does not include:
964 (i) an ancillary service;
965 (ii) computer software; or
966 (iii) a telecommunications service.
967 [
968 (i) artificially replace a missing portion of the body;
969 (ii) prevent or correct a physical deformity or physical malfunction; or
970 (iii) support a weak or deformed portion of the body.
971 (b) "Prosthetic device" includes:
972 (i) parts used in the repairs or renovation of a prosthetic device;
973 (ii) replacement parts for a prosthetic device;
974 (iii) a dental prosthesis; or
975 (iv) a hearing aid.
976 (c) "Prosthetic device" does not include:
977 (i) corrective eyeglasses; or
978 (ii) contact lenses.
979 [
980 (i) for human wear; and
981 (ii) that is:
982 (A) designed as protection:
983 (I) to the wearer against injury or disease; or
984 (II) against damage or injury of other persons or property; and
985 (B) not suitable for general use.
986 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
987 commission shall make rules:
988 (i) listing the items that constitute "protective equipment"; and
989 (ii) that are consistent with the list of items that constitute "protective equipment"
990 under the agreement.
991 [
992 written or printed matter, other than a photocopy:
993 (i) regardless of:
994 (A) characteristics;
995 (B) copyright;
996 (C) form;
997 (D) format;
998 (E) method of reproduction; or
999 (F) source; and
1000 (ii) made available in printed or electronic format.
1001 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1002 commission may by rule define the term "photocopy."
1003 [
1004 consideration:
1005 (i) valued in money; and
1006 (ii) for which tangible personal property, a product transferred electronically, or
1007 services are:
1008 (A) sold;
1009 (B) leased; or
1010 (C) rented.
1011 (b) "Purchase price" and "sales price" include:
1012 (i) the seller's cost of the tangible personal property, a product transferred
1013 electronically, or services sold;
1014 (ii) expenses of the seller, including:
1015 (A) the cost of materials used;
1016 (B) a labor cost;
1017 (C) a service cost;
1018 (D) interest;
1019 (E) a loss;
1020 (F) the cost of transportation to the seller; or
1021 (G) a tax imposed on the seller;
1022 (iii) a charge by the seller for any service necessary to complete the sale; or
1023 (iv) consideration a seller receives from a person other than the purchaser if:
1024 (A) (I) the seller actually receives consideration from a person other than the purchaser;
1025 and
1026 (II) the consideration described in Subsection [
1027 to a price reduction or discount on the sale;
1028 (B) the seller has an obligation to pass the price reduction or discount through to the
1029 purchaser;
1030 (C) the amount of the consideration attributable to the sale is fixed and determinable by
1031 the seller at the time of the sale to the purchaser; and
1032 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1033 seller to claim a price reduction or discount; and
1034 (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1035 coupon, or other documentation with the understanding that the person other than the seller
1036 will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1037 (II) the purchaser identifies that purchaser to the seller as a member of a group or
1038 organization allowed a price reduction or discount, except that a preferred customer card that is
1039 available to any patron of a seller does not constitute membership in a group or organization
1040 allowed a price reduction or discount; or
1041 (III) the price reduction or discount is identified as a third party price reduction or
1042 discount on the:
1043 (Aa) invoice the purchaser receives; or
1044 (Bb) certificate, coupon, or other documentation the purchaser presents.
1045 (c) "Purchase price" and "sales price" do not include:
1046 (i) a discount:
1047 (A) in a form including:
1048 (I) cash;
1049 (II) term; or
1050 (III) coupon;
1051 (B) that is allowed by a seller;
1052 (C) taken by a purchaser on a sale; and
1053 (D) that is not reimbursed by a third party; or
1054 (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), the following if separately
1055 stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
1056 sale or later, as demonstrated by the books and records the seller keeps at the time of the
1057 transaction in the regular course of business, including books and records the seller keeps at the
1058 time of the transaction in the regular course of business for nontax purposes, by a
1059 preponderance of the facts and circumstances at the time of the transaction, and by the
1060 understanding of all of the parties to the transaction:
1061 (A) the following from credit extended on the sale of tangible personal property or
1062 services:
1063 (I) a carrying charge;
1064 (II) a financing charge; or
1065 (III) an interest charge;
1066 (B) a delivery charge;
1067 (C) an installation charge;
1068 (D) a manufacturer rebate on a motor vehicle; or
1069 (E) a tax or fee legally imposed directly on the consumer.
1070 [
1071 (a) a sale of tangible personal property is made;
1072 (b) a product is transferred electronically; or
1073 (c) a service is furnished.
1074 [
1075 (a) rented to a guest for value three or more times during a calendar year; or
1076 (b) advertised or held out to the public as a place that is regularly rented to guests for
1077 value.
1078 [
1079 [
1080 renovations of tangible personal property" means:
1081 (i) a repair or renovation of tangible personal property that is not permanently attached
1082 to real property; or
1083 (ii) attaching tangible personal property or a product transferred electronically to other
1084 tangible personal property or detaching tangible personal property or a product transferred
1085 electronically from other tangible personal property if:
1086 (A) the other tangible personal property to which the tangible personal property or
1087 product transferred electronically is attached or from which the tangible personal property or
1088 product transferred electronically is detached is not permanently attached to real property; and
1089 (B) the attachment of tangible personal property or a product transferred electronically
1090 to other tangible personal property or detachment of tangible personal property or a product
1091 transferred electronically from other tangible personal property is made in conjunction with a
1092 repair or replacement of tangible personal property or a product transferred electronically.
1093 (b) "Repairs or renovations of tangible personal property" does not include:
1094 (i) attaching prewritten computer software to other tangible personal property if the
1095 other tangible personal property to which the prewritten computer software is attached is not
1096 permanently attached to real property; or
1097 (ii) detaching prewritten computer software from other tangible personal property if the
1098 other tangible personal property from which the prewritten computer software is detached is
1099 not permanently attached to real property.
1100 [
1101 experimentation aimed at the discovery of facts, devices, technologies, or applications and the
1102 process of preparing those devices, technologies, or applications for marketing.
1103 [
1104 telecommunications service or an ancillary service that is provided to an individual for personal
1105 use:
1106 (i) at a residential address; or
1107 (ii) at an institution, including a nursing home or a school, if the telecommunications
1108 service or ancillary service is provided to and paid for by the individual residing at the
1109 institution rather than the institution.
1110 (b) For purposes of Subsection [
1111 (i) apartment; or
1112 (ii) other individual dwelling unit.
1113 [
1114 sleeping quarters, and similar facilities or accommodations.
1115 [
1116 other than:
1117 (a) resale;
1118 (b) sublease; or
1119 (c) subrent.
1120 [
1121 business in tangible personal property or any other taxable transaction under Subsection
1122 59-12-103(1), and who is selling to the user or consumer and not for resale.
1123 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1124 engaged in the business of selling to users or consumers within the state.
1125 [
1126 otherwise, in any manner, of tangible personal property or any other taxable transaction under
1127 Subsection 59-12-103(1), for consideration.
1128 (b) "Sale" includes:
1129 (i) installment and credit sales;
1130 (ii) any closed transaction constituting a sale;
1131 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1132 chapter;
1133 (iv) any transaction if the possession of property is transferred but the seller retains the
1134 title as security for the payment of the price; and
1135 (v) any transaction under which right to possession, operation, or use of any article of
1136 tangible personal property is granted under a lease or contract and the transfer of possession
1137 would be taxable if an outright sale were made.
1138 [
1139 [
1140 tangible personal property or a product transferred electronically that is subject to a tax under
1141 this chapter is transferred:
1142 (a) by a purchaser-lessee;
1143 (b) to a lessor;
1144 (c) for consideration; and
1145 (d) if:
1146 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1147 of the tangible personal property or product transferred electronically;
1148 (ii) the sale of the tangible personal property or product transferred electronically to the
1149 lessor is intended as a form of financing:
1150 (A) for the tangible personal property or product transferred electronically; and
1151 (B) to the purchaser-lessee; and
1152 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1153 is required to:
1154 (A) capitalize the tangible personal property or product transferred electronically for
1155 financial reporting purposes; and
1156 (B) account for the lease payments as payments made under a financing arrangement.
1157 [
1158 [
1159 paid to, or amounts charged by a school:
1160 (i) sales that are directly related to the school's educational functions or activities
1161 including:
1162 (A) the sale of:
1163 (I) textbooks;
1164 (II) textbook fees;
1165 (III) laboratory fees;
1166 (IV) laboratory supplies; or
1167 (V) safety equipment;
1168 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1169 that:
1170 (I) a student is specifically required to wear as a condition of participation in a
1171 school-related event or school-related activity; and
1172 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1173 place of ordinary clothing;
1174 (C) sales of the following if the net or gross revenues generated by the sales are
1175 deposited into a school district fund or school fund dedicated to school meals:
1176 (I) food and food ingredients; or
1177 (II) prepared food; or
1178 (D) transportation charges for official school activities; or
1179 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1180 event or school-related activity.
1181 (b) "Sales relating to schools" does not include:
1182 (i) bookstore sales of items that are not educational materials or supplies;
1183 (ii) except as provided in Subsection [
1184 (A) clothing;
1185 (B) clothing accessories or equipment;
1186 (C) protective equipment; or
1187 (D) sports or recreational equipment; or
1188 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1189 event or school-related activity if the amounts paid or charged are passed through to a person:
1190 (A) other than a:
1191 (I) school;
1192 (II) nonprofit organization authorized by a school board or a governing body of a
1193 private school to organize and direct a competitive secondary school activity; or
1194 (III) nonprofit association authorized by a school board or a governing body of a
1195 private school to organize and direct a competitive secondary school activity; and
1196 (B) that is required to collect sales and use taxes under this chapter.
1197 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1198 commission may make rules defining the term "passed through."
1199 [
1200 (a) means:
1201 (i) an elementary school or a secondary school that:
1202 (A) is a:
1203 (I) public school; or
1204 (II) private school; and
1205 (B) provides instruction for one or more grades kindergarten through 12; or
1206 (ii) a public school district; and
1207 (b) includes the Electronic High School as defined in Section 53A-15-1002.
1208 [
1209 (a) tangible personal property;
1210 (b) a product transferred electronically; or
1211 (c) a service.
1212 [
1213 materials" means tangible personal property or a product transferred electronically if the
1214 tangible personal property or product transferred electronically is:
1215 (i) used primarily in the process of:
1216 (A) (I) manufacturing a semiconductor;
1217 (II) fabricating a semiconductor; or
1218 (III) research or development of a:
1219 (Aa) semiconductor; or
1220 (Bb) semiconductor manufacturing process; or
1221 (B) maintaining an environment suitable for a semiconductor; or
1222 (ii) consumed primarily in the process of:
1223 (A) (I) manufacturing a semiconductor;
1224 (II) fabricating a semiconductor; or
1225 (III) research or development of a:
1226 (Aa) semiconductor; or
1227 (Bb) semiconductor manufacturing process; or
1228 (B) maintaining an environment suitable for a semiconductor.
1229 (b) "Semiconductor fabricating, processing, research, or development materials"
1230 includes:
1231 (i) parts used in the repairs or renovations of tangible personal property or a product
1232 transferred electronically described in Subsection [
1233 (ii) a chemical, catalyst, or other material used to:
1234 (A) produce or induce in a semiconductor a:
1235 (I) chemical change; or
1236 (II) physical change;
1237 (B) remove impurities from a semiconductor; or
1238 (C) improve the marketable condition of a semiconductor.
1239 [
1240 providing services to the aged as defined in Section 62A-3-101.
1241 [
1242 consumable" means tangible personal property that:
1243 (i) a business that provides accommodations and services described in Subsection
1244 59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
1245 to a purchaser;
1246 (ii) is intended to be consumed by the purchaser; and
1247 (iii) is:
1248 (A) included in the purchase price of the accommodations and services; and
1249 (B) not separately stated on an invoice, bill of sale, or other similar document provided
1250 to the purchaser.
1251 (b) "Short-term lodging consumable" includes:
1252 (i) a beverage;
1253 (ii) a brush or comb;
1254 (iii) a cosmetic;
1255 (iv) a hair care product;
1256 (v) lotion;
1257 (vi) a magazine;
1258 (vii) makeup;
1259 (viii) a meal;
1260 (ix) mouthwash;
1261 (x) nail polish remover;
1262 (xi) a newspaper;
1263 (xii) a notepad;
1264 (xiii) a pen;
1265 (xiv) a pencil;
1266 (xv) a razor;
1267 (xvi) saline solution;
1268 (xvii) a sewing kit;
1269 (xviii) shaving cream;
1270 (xix) a shoe shine kit;
1271 (xx) a shower cap;
1272 (xxi) a snack item;
1273 (xxii) soap;
1274 (xxiii) toilet paper;
1275 (xxiv) a toothbrush;
1276 (xxv) toothpaste; or
1277 (xxvi) an item similar to Subsections [
1278 commission may provide by rule made in accordance with Title 63G, Chapter 3, Utah
1279 Administrative Rulemaking Act.
1280 (c) "Short-term lodging consumable" does not include:
1281 (i) tangible personal property that is cleaned or washed to allow the tangible personal
1282 property to be reused; or
1283 (ii) a product transferred electronically.
1284 [
1285 (a) described in Section 318(C) of the agreement; and
1286 (b) approved by the governing board of the agreement.
1287 [
1288 producing electricity.
1289 [
1290 (i) designed for human use; and
1291 (ii) that is:
1292 (A) worn in conjunction with:
1293 (I) an athletic activity; or
1294 (II) a recreational activity; and
1295 (B) not suitable for general use.
1296 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1297 commission shall make rules:
1298 (i) listing the items that constitute "sports or recreational equipment"; and
1299 (ii) that are consistent with the list of items that constitute "sports or recreational
1300 equipment" under the agreement.
1301 [
1302 [
1303 any other taxable transaction under Subsection 59-12-103(1), in this state for any purpose
1304 except sale in the regular course of business.
1305 [
1306 personal property" means personal property that:
1307 (i) may be:
1308 (A) seen;
1309 (B) weighed;
1310 (C) measured;
1311 (D) felt; or
1312 (E) touched; or
1313 (ii) is in any manner perceptible to the senses.
1314 (b) "Tangible personal property" includes:
1315 (i) electricity;
1316 (ii) water;
1317 (iii) gas;
1318 (iv) steam; or
1319 (v) prewritten computer software, regardless of the manner in which the prewritten
1320 computer software is transferred.
1321 (c) "Tangible personal property" includes the following regardless of whether the item
1322 is attached to real property:
1323 (i) a dishwasher;
1324 (ii) a dryer;
1325 (iii) a freezer;
1326 (iv) a microwave;
1327 (v) a refrigerator;
1328 (vi) a stove;
1329 (vii) a washer; or
1330 (viii) an item similar to Subsections [
1331 the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1332 Rulemaking Act.
1333 (d) "Tangible personal property" does not include a product that is transferred
1334 electronically.
1335 (e) "Tangible personal property" does not include the following if attached to real
1336 property, regardless of whether the attachment to real property is only through a line that
1337 supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1338 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1339 Rulemaking Act:
1340 (i) a hot water heater;
1341 (ii) a water filtration system; or
1342 (iii) a water softener system.
1343 [
1344 or software" means an item listed in Subsection [
1345 leased primarily to enable or facilitate one or more of the following to function:
1346 (i) telecommunications switching or routing equipment, machinery, or software; or
1347 (ii) telecommunications transmission equipment, machinery, or software.
1348 (b) The following apply to Subsection [
1349 (i) a pole;
1350 (ii) software;
1351 (iii) a supplementary power supply;
1352 (iv) temperature or environmental equipment or machinery;
1353 (v) test equipment;
1354 (vi) a tower; or
1355 (vii) equipment, machinery, or software that functions similarly to an item listed in
1356 Subsections [
1357 accordance with Subsection [
1358 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1359 commission may by rule define what constitutes equipment, machinery, or software that
1360 functions similarly to an item listed in Subsections [
1361 [
1362 911 service" means equipment, machinery, or software that is required to comply with 47
1363 C.F.R. Sec. 20.18.
1364 [
1365 software" means equipment, machinery, or software purchased or leased primarily to maintain
1366 or repair one or more of the following, regardless of whether the equipment, machinery, or
1367 software is purchased or leased as a spare part or as an upgrade or modification to one or more
1368 of the following:
1369 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1370 (b) telecommunications switching or routing equipment, machinery, or software; or
1371 (c) telecommunications transmission equipment, machinery, or software.
1372 [
1373 routing, or transmission of audio, data, video, voice, or any other information or signal to a
1374 point, or among or between points.
1375 (b) "Telecommunications service" includes:
1376 (i) an electronic conveyance, routing, or transmission with respect to which a computer
1377 processing application is used to act:
1378 (A) on the code, form, or protocol of the content;
1379 (B) for the purpose of electronic conveyance, routing, or transmission; and
1380 (C) regardless of whether the service:
1381 (I) is referred to as voice over Internet protocol service; or
1382 (II) is classified by the Federal Communications Commission as enhanced or value
1383 added;
1384 (ii) an 800 service;
1385 (iii) a 900 service;
1386 (iv) a fixed wireless service;
1387 (v) a mobile wireless service;
1388 (vi) a postpaid calling service;
1389 (vii) a prepaid calling service;
1390 (viii) a prepaid wireless calling service; or
1391 (ix) a private communications service.
1392 (c) "Telecommunications service" does not include:
1393 (i) advertising, including directory advertising;
1394 (ii) an ancillary service;
1395 (iii) a billing and collection service provided to a third party;
1396 (iv) a data processing and information service if:
1397 (A) the data processing and information service allows data to be:
1398 (I) (Aa) acquired;
1399 (Bb) generated;
1400 (Cc) processed;
1401 (Dd) retrieved; or
1402 (Ee) stored; and
1403 (II) delivered by an electronic transmission to a purchaser; and
1404 (B) the purchaser's primary purpose for the underlying transaction is the processed data
1405 or information;
1406 (v) installation or maintenance of the following on a customer's premises:
1407 (A) equipment; or
1408 (B) wiring;
1409 (vi) Internet access service;
1410 (vii) a paging service;
1411 (viii) a product transferred electronically, including:
1412 (A) music;
1413 (B) reading material;
1414 (C) a ring tone;
1415 (D) software; or
1416 (E) video;
1417 (ix) a radio and television audio and video programming service:
1418 (A) regardless of the medium; and
1419 (B) including:
1420 (I) furnishing conveyance, routing, or transmission of a television audio and video
1421 programming service by a programming service provider;
1422 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1423 (III) audio and video programming services delivered by a commercial mobile radio
1424 service provider as defined in 47 C.F.R. Sec. 20.3;
1425 (x) a value-added nonvoice data service; or
1426 (xi) tangible personal property.
1427 [
1428 (i) owns, controls, operates, or manages a telecommunications service; and
1429 (ii) engages in an activity described in Subsection [
1430 with or resale to any person of the telecommunications service.
1431 (b) A person described in Subsection [
1432 provider whether or not the Public Service Commission of Utah regulates:
1433 (i) that person; or
1434 (ii) the telecommunications service that the person owns, controls, operates, or
1435 manages.
1436 [
1437 software" means an item listed in Subsection [
1438 leased primarily for switching or routing:
1439 (i) an ancillary service;
1440 (ii) data communications;
1441 (iii) voice communications; or
1442 (iv) telecommunications service.
1443 (b) The following apply to Subsection [
1444 (i) a bridge;
1445 (ii) a computer;
1446 (iii) a cross connect;
1447 (iv) a modem;
1448 (v) a multiplexer;
1449 (vi) plug in circuitry;
1450 (vii) a router;
1451 (viii) software;
1452 (ix) a switch; or
1453 (x) equipment, machinery, or software that functions similarly to an item listed in
1454 Subsections [
1455 accordance with Subsection [
1456 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1457 commission may by rule define what constitutes equipment, machinery, or software that
1458 functions similarly to an item listed in Subsections [
1459 [
1460 software" means an item listed in Subsection [
1461 leased primarily for sending, receiving, or transporting:
1462 (i) an ancillary service;
1463 (ii) data communications;
1464 (iii) voice communications; or
1465 (iv) telecommunications service.
1466 (b) The following apply to Subsection [
1467 (i) an amplifier;
1468 (ii) a cable;
1469 (iii) a closure;
1470 (iv) a conduit;
1471 (v) a controller;
1472 (vi) a duplexer;
1473 (vii) a filter;
1474 (viii) an input device;
1475 (ix) an input/output device;
1476 (x) an insulator;
1477 (xi) microwave machinery or equipment;
1478 (xii) an oscillator;
1479 (xiii) an output device;
1480 (xiv) a pedestal;
1481 (xv) a power converter;
1482 (xvi) a power supply;
1483 (xvii) a radio channel;
1484 (xviii) a radio receiver;
1485 (xix) a radio transmitter;
1486 (xx) a repeater;
1487 (xxi) software;
1488 (xxii) a terminal;
1489 (xxiii) a timing unit;
1490 (xxiv) a transformer;
1491 (xxv) a wire; or
1492 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1493 Subsections [
1494 accordance with Subsection [
1495 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1496 commission may by rule define what constitutes equipment, machinery, or software that
1497 functions similarly to an item listed in Subsections [
1498 [
1499 printed material that is required for a course:
1500 (i) offered by an institution of higher education; and
1501 (ii) that the purchaser of the textbook or other printed material attends or will attend.
1502 (b) "Textbook for a higher education course" includes a textbook in electronic format.
1503 [
1504 (a) a cigarette;
1505 (b) a cigar;
1506 (c) chewing tobacco;
1507 (d) pipe tobacco; or
1508 (e) any other item that contains tobacco.
1509 [
1510 device, or ride device that is started and stopped by the purchaser or renter of the right to use or
1511 operate the amusement device, skill device, or ride device.
1512 [
1513 property, a product transferred electronically, or a service under Subsection 59-12-103(1),
1514 incident to the ownership or the leasing of that tangible personal property, product transferred
1515 electronically, or service.
1516 (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1517 property, a product transferred electronically, or a service in the regular course of business and
1518 held for resale.
1519 [
1520 (a) that otherwise meets the definition of a telecommunications service except that a
1521 computer processing application is used to act primarily for a purpose other than conveyance,
1522 routing, or transmission; and
1523 (b) with respect to which a computer processing application is used to act on data or
1524 information:
1525 (i) code;
1526 (ii) content;
1527 (iii) form; or
1528 (iv) protocol.
1529 [
1530 that are required to be titled, registered, or titled and registered:
1531 (i) an aircraft as defined in Section 72-10-102;
1532 (ii) a vehicle as defined in Section 41-1a-102;
1533 (iii) an off-highway vehicle as defined in Section 41-22-2; or
1534 (iv) a vessel as defined in Section 41-1a-102.
1535 (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
1536 (i) a vehicle described in Subsection [
1537 (ii) (A) a locomotive;
1538 (B) a freight car;
1539 (C) railroad work equipment; or
1540 (D) other railroad rolling stock.
1541 [
1542 selling, or exchanging a vehicle as defined in Subsection [
1543 [
1544 (i) is offered in connection with one or more telecommunications services; and
1545 (ii) offers an advanced calling feature that allows a customer to:
1546 (A) identify a caller; and
1547 (B) manage multiple calls and call connections.
1548 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1549 conference bridging service.
1550 [
1551 customer to receive, send, or store a recorded message.
1552 (b) "Voice mail service" does not include a vertical service that a customer is required
1553 to have in order to utilize a voice mail service.
1554 [
1555 facility" means a facility that generates electricity:
1556 (i) using as the primary source of energy waste materials that would be placed in a
1557 landfill or refuse pit if it were not used to generate electricity, including:
1558 (A) tires;
1559 (B) waste coal;
1560 (C) oil shale; or
1561 (D) municipal solid waste; and
1562 (ii) in amounts greater than actually required for the operation of the facility.
1563 (b) "Waste energy facility" does not include a facility that incinerates:
1564 (i) hospital waste as defined in 40 C.F.R. 60.51c; or
1565 (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1566 [
1567 [
1568 electricity.
1569 [
1570 geographic location by the United States Postal Service.
1571 Section 2. Section 59-12-104 is amended to read:
1572 59-12-104. Exemptions.
1573 Exemptions from the taxes imposed by this chapter are as follows:
1574 (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
1575 under Chapter 13, Motor and Special Fuel Tax Act;
1576 (2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
1577 subdivisions; however, this exemption does not apply to sales of:
1578 (a) construction materials except:
1579 (i) construction materials purchased by or on behalf of institutions of the public
1580 education system as defined in Utah Constitution Article X, Section 2, provided the
1581 construction materials are clearly identified and segregated and installed or converted to real
1582 property which is owned by institutions of the public education system; and
1583 (ii) construction materials purchased by the state, its institutions, or its political
1584 subdivisions which are installed or converted to real property by employees of the state, its
1585 institutions, or its political subdivisions; or
1586 (b) tangible personal property in connection with the construction, operation,
1587 maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or facilities
1588 providing additional project capacity, as defined in Section 11-13-103;
1589 (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
1590 (i) the proceeds of each sale do not exceed $1; and
1591 (ii) the seller or operator of the vending machine reports an amount equal to 150% of
1592 the cost of the item described in Subsection (3)(b) as goods consumed; and
1593 (b) Subsection (3)(a) applies to:
1594 (i) food and food ingredients; or
1595 (ii) prepared food;
1596 (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
1597 (i) alcoholic beverages;
1598 (ii) food and food ingredients; or
1599 (iii) prepared food;
1600 (b) sales of tangible personal property or a product transferred electronically:
1601 (i) to a passenger;
1602 (ii) by a commercial airline carrier; and
1603 (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
1604 (c) services related to Subsection (4)(a) or (b);
1605 (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
1606 and equipment:
1607 (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
1608 North American Industry Classification System of the federal Executive Office of the
1609 President, Office of Management and Budget; and
1610 (II) for:
1611 (Aa) installation in an aircraft, including services relating to the installation of parts or
1612 equipment in the aircraft;
1613 (Bb) renovation of an aircraft; or
1614 (Cc) repair of an aircraft; or
1615 (B) for installation in an aircraft operated by a common carrier in interstate or foreign
1616 commerce; or
1617 (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
1618 aircraft operated by a common carrier in interstate or foreign commerce; and
1619 (b) notwithstanding the time period of Subsection 59-1-1410(8) for filing for a refund,
1620 a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
1621 refund:
1622 (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
1623 (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
1624 (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
1625 the sale prior to filing for the refund;
1626 (iv) for sales and use taxes paid under this chapter on the sale;
1627 (v) in accordance with Section 59-1-1410; and
1628 (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410, if
1629 the person files for the refund on or before September 30, 2011;
1630 (6) sales of commercials, motion picture films, prerecorded audio program tapes or
1631 records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
1632 exhibitor, distributor, or commercial television or radio broadcaster;
1633 (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
1634 property if the cleaning or washing of the tangible personal property is not assisted cleaning or
1635 washing of tangible personal property;
1636 (b) if a seller that sells at the same business location assisted cleaning or washing of
1637 tangible personal property and cleaning or washing of tangible personal property that is not
1638 assisted cleaning or washing of tangible personal property, the exemption described in
1639 Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
1640 or washing of the tangible personal property; and
1641 (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
1642 Utah Administrative Rulemaking Act, the commission may make rules:
1643 (i) governing the circumstances under which sales are at the same business location;
1644 and
1645 (ii) establishing the procedures and requirements for a seller to separately account for
1646 sales of assisted cleaning or washing of tangible personal property;
1647 (8) sales made to or by religious or charitable institutions in the conduct of their regular
1648 religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
1649 fulfilled;
1650 (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
1651 this state if the vehicle is:
1652 (a) not registered in this state; and
1653 (b) (i) not used in this state; or
1654 (ii) used in this state:
1655 (A) if the vehicle is not used to conduct business, for a time period that does not
1656 exceed the longer of:
1657 (I) 30 days in any calendar year; or
1658 (II) the time period necessary to transport the vehicle to the borders of this state; or
1659 (B) if the vehicle is used to conduct business, for the time period necessary to transport
1660 the vehicle to the borders of this state;
1661 (10) (a) amounts paid for an item described in Subsection (10)(b) if:
1662 (i) the item is intended for human use; and
1663 (ii) (A) a prescription was issued for the item; or
1664 (B) the item was purchased by a hospital or other medical facility; and
1665 (b) (i) Subsection (10)(a) applies to:
1666 (A) a drug;
1667 (B) a syringe; or
1668 (C) a stoma supply; and
1669 (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1670 commission may by rule define the terms:
1671 (A) "syringe"; or
1672 (B) "stoma supply";
1673 (11) purchases or leases exempt under Section 19-12-201;
1674 (12) (a) sales of an item described in Subsection (12)(c) served by:
1675 (i) the following if the item described in Subsection (12)(c) is not available to the
1676 general public:
1677 (A) a church; or
1678 (B) a charitable institution;
1679 (ii) an institution of higher education if:
1680 (A) the item described in Subsection (12)(c) is not available to the general public; or
1681 (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
1682 offered by the institution of higher education; or
1683 (b) sales of an item described in Subsection (12)(c) provided for a patient by:
1684 (i) a medical facility; or
1685 (ii) a nursing facility; and
1686 (c) Subsections (12)(a) and (b) apply to:
1687 (i) food and food ingredients;
1688 (ii) prepared food; or
1689 (iii) alcoholic beverages;
1690 (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
1691 or a product transferred electronically by a person:
1692 (i) regardless of the number of transactions involving the sale of that tangible personal
1693 property or product transferred electronically by that person; and
1694 (ii) not regularly engaged in the business of selling that type of tangible personal
1695 property or product transferred electronically;
1696 (b) this Subsection (13) does not apply if:
1697 (i) the sale is one of a series of sales of a character to indicate that the person is
1698 regularly engaged in the business of selling that type of tangible personal property or product
1699 transferred electronically;
1700 (ii) the person holds that person out as regularly engaged in the business of selling that
1701 type of tangible personal property or product transferred electronically;
1702 (iii) the person sells an item of tangible personal property or product transferred
1703 electronically that the person purchased as a sale that is exempt under Subsection (25); or
1704 (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
1705 this state in which case the tax is based upon:
1706 (A) the bill of sale or other written evidence of value of the vehicle or vessel being
1707 sold; or
1708 (B) in the absence of a bill of sale or other written evidence of value, the fair market
1709 value of the vehicle or vessel being sold at the time of the sale as determined by the
1710 commission; and
1711 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1712 commission shall make rules establishing the circumstances under which:
1713 (i) a person is regularly engaged in the business of selling a type of tangible personal
1714 property or product transferred electronically;
1715 (ii) a sale of tangible personal property or a product transferred electronically is one of
1716 a series of sales of a character to indicate that a person is regularly engaged in the business of
1717 selling that type of tangible personal property or product transferred electronically; or
1718 (iii) a person holds that person out as regularly engaged in the business of selling a type
1719 of tangible personal property or product transferred electronically;
1720 (14) (a) amounts paid or charged for a purchase or lease:
1721 (i) by a manufacturing facility located in the state; and
1722 (ii) of machinery, equipment, or normal operating repair or replacement parts if the
1723 machinery, equipment, or normal operating repair or replacement parts have an economic life
1724 of three or more years and are used:
1725 (A) in the manufacturing process to manufacture an item sold as tangible personal
1726 property; or
1727 (B) for a scrap recycler, to process an item sold as tangible personal property;
1728 (b) amounts paid or charged for a purchase or lease:
1729 (i) by an establishment:
1730 (A) described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS Code
1731 213113, Support Activities for Coal Mining, 213114, Support Activities for Metal Mining, or
1732 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining, of the 2002 North
1733 American Industry Classification System of the federal Executive Office of the President,
1734 Office of Management and Budget; and
1735 (B) located in the state; and
1736 (ii) of machinery, equipment, or normal operating repair or replacement parts if the
1737 machinery, equipment, or normal operating repair or replacement parts have an economic life
1738 of three or more years and are used in:
1739 (A) the production process to produce an item sold as tangible personal property;
1740 (B) research and development;
1741 (C) transporting, storing, or managing tailings, overburden, or similar waste materials
1742 produced from mining;
1743 (D) developing or maintaining a road, tunnel, excavation, or similar feature used in
1744 mining; or
1745 (E) preventing, controlling, or reducing dust or other pollutants from mining;
1746 (c) amounts paid or charged for a purchase or lease:
1747 (i) by an establishment:
1748 (A) described in NAICS Code 518112, Web Search Portals, of the 2002 North
1749 American Industry Classification System of the federal Executive Office of the President,
1750 Office of Management and Budget; and
1751 (B) located in the state; and
1752 (ii) of machinery, equipment, or normal operating repair or replacement parts if the
1753 machinery, equipment, or normal operating repair or replacement parts:
1754 (A) are used in the operation of the web search portal; and
1755 (B) have an economic life of three or more years;
1756 (d) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,
1757 Utah Administrative Rulemaking Act, the commission:
1758 (i) shall by rule define the term "establishment"; and
1759 (ii) may by rule define what constitutes:
1760 (A) processing an item sold as tangible personal property;
1761 (B) the production process, to produce an item sold as tangible personal property; or
1762 (C) research and development; and
1763 (e) on or before October 1, 2016, and every five years after October 1, 2016, the
1764 commission shall:
1765 (i) review the exemptions described in this Subsection (14) and make
1766 recommendations to the Revenue and Taxation Interim Committee concerning whether the
1767 exemptions should be continued, modified, or repealed; and
1768 (ii) include in its report:
1769 (A) an estimate of the cost of the exemptions;
1770 (B) the purpose and effectiveness of the exemptions; and
1771 (C) the benefits of the exemptions to the state;
1772 (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
1773 (i) tooling;
1774 (ii) special tooling;
1775 (iii) support equipment;
1776 (iv) special test equipment; or
1777 (v) parts used in the repairs or renovations of tooling or equipment described in
1778 Subsections (15)(a)(i) through (iv); and
1779 (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
1780 (i) the tooling, equipment, or parts are used or consumed exclusively in the
1781 performance of any aerospace or electronics industry contract with the United States
1782 government or any subcontract under that contract; and
1783 (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
1784 title to the tooling, equipment, or parts is vested in the United States government as evidenced
1785 by:
1786 (A) a government identification tag placed on the tooling, equipment, or parts; or
1787 (B) listing on a government-approved property record if placing a government
1788 identification tag on the tooling, equipment, or parts is impractical;
1789 (16) sales of newspapers or newspaper subscriptions;
1790 (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
1791 product transferred electronically traded in as full or part payment of the purchase price, except
1792 that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
1793 trade-ins are limited to other vehicles only, and the tax is based upon:
1794 (i) the bill of sale or other written evidence of value of the vehicle being sold and the
1795 vehicle being traded in; or
1796 (ii) in the absence of a bill of sale or other written evidence of value, the then existing
1797 fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
1798 commission; and
1799 (b) Subsection (17)(a) does not apply to the following items of tangible personal
1800 property or products transferred electronically traded in as full or part payment of the purchase
1801 price:
1802 (i) money;
1803 (ii) electricity;
1804 (iii) water;
1805 (iv) gas; or
1806 (v) steam;
1807 (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
1808 or a product transferred electronically used or consumed primarily and directly in farming
1809 operations, regardless of whether the tangible personal property or product transferred
1810 electronically:
1811 (A) becomes part of real estate; or
1812 (B) is installed by a:
1813 (I) farmer;
1814 (II) contractor; or
1815 (III) subcontractor; or
1816 (ii) sales of parts used in the repairs or renovations of tangible personal property or a
1817 product transferred electronically if the tangible personal property or product transferred
1818 electronically is exempt under Subsection (18)(a)(i); and
1819 (b) amounts paid or charged for the following are subject to the taxes imposed by this
1820 chapter:
1821 (i) (A) subject to Subsection (18)(b)(i)(B), the following if used in a manner that is
1822 incidental to farming:
1823 (I) machinery;
1824 (II) equipment;
1825 (III) materials; or
1826 (IV) supplies; and
1827 (B) tangible personal property that is considered to be used in a manner that is
1828 incidental to farming includes:
1829 (I) hand tools; or
1830 (II) maintenance and janitorial equipment and supplies;
1831 (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
1832 transferred electronically if the tangible personal property or product transferred electronically
1833 is used in an activity other than farming; and
1834 (B) tangible personal property or a product transferred electronically that is considered
1835 to be used in an activity other than farming includes:
1836 (I) office equipment and supplies; or
1837 (II) equipment and supplies used in:
1838 (Aa) the sale or distribution of farm products;
1839 (Bb) research; or
1840 (Cc) transportation; or
1841 (iii) a vehicle required to be registered by the laws of this state during the period
1842 ending two years after the date of the vehicle's purchase;
1843 (19) sales of hay;
1844 (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
1845 garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
1846 garden, farm, or other agricultural produce is sold by:
1847 (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
1848 agricultural produce;
1849 (b) an employee of the producer described in Subsection (20)(a); or
1850 (c) a member of the immediate family of the producer described in Subsection (20)(a);
1851 (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
1852 under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
1853 (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
1854 nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
1855 wholesaler, or retailer for use in packaging tangible personal property to be sold by that
1856 manufacturer, processor, wholesaler, or retailer;
1857 (23) a product stored in the state for resale;
1858 (24) (a) purchases of a product if:
1859 (i) the product is:
1860 (A) purchased outside of this state;
1861 (B) brought into this state:
1862 (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
1863 (II) by a nonresident person who is not living or working in this state at the time of the
1864 purchase;
1865 (C) used for the personal use or enjoyment of the nonresident person described in
1866 Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
1867 (D) not used in conducting business in this state; and
1868 (ii) for:
1869 (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
1870 the product for a purpose for which the product is designed occurs outside of this state;
1871 (B) a boat, the boat is registered outside of this state; or
1872 (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
1873 outside of this state;
1874 (b) the exemption provided for in Subsection (24)(a) does not apply to:
1875 (i) a lease or rental of a product; or
1876 (ii) a sale of a vehicle exempt under Subsection (33); and
1877 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
1878 purposes of Subsection (24)(a), the commission may by rule define what constitutes the
1879 following:
1880 (i) conducting business in this state if that phrase has the same meaning in this
1881 Subsection (24) as in Subsection (63);
1882 (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
1883 as in Subsection (63); or
1884 (iii) a purpose for which a product is designed if that phrase has the same meaning in
1885 this Subsection (24) as in Subsection (63);
1886 (25) a product purchased for resale in this state, in the regular course of business, either
1887 in its original form or as an ingredient or component part of a manufactured or compounded
1888 product;
1889 (26) a product upon which a sales or use tax was paid to some other state, or one of its
1890 subdivisions, except that the state shall be paid any difference between the tax paid and the tax
1891 imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
1892 the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
1893 Act;
1894 (27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a
1895 person for use in compounding a service taxable under the subsections;
1896 (28) purchases made in accordance with the special supplemental nutrition program for
1897 women, infants, and children established in 42 U.S.C. Sec. 1786;
1898 (29) sales or leases of rolls, rollers, refractory brick, electric motors, or other
1899 replacement parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code
1900 3312 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of
1901 the President, Office of Management and Budget;
1902 (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
1903 Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
1904 (a) not registered in this state; and
1905 (b) (i) not used in this state; or
1906 (ii) used in this state:
1907 (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
1908 time period that does not exceed the longer of:
1909 (I) 30 days in any calendar year; or
1910 (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
1911 the borders of this state; or
1912 (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
1913 period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
1914 state;
1915 (31) sales of aircraft manufactured in Utah;
1916 (32) amounts paid for the purchase of telecommunications service for purposes of
1917 providing telecommunications service;
1918 (33) sales, leases, or uses of the following:
1919 (a) a vehicle by an authorized carrier; or
1920 (b) tangible personal property that is installed on a vehicle:
1921 (i) sold or leased to or used by an authorized carrier; and
1922 (ii) before the vehicle is placed in service for the first time;
1923 (34) (a) 45% of the sales price of any new manufactured home; and
1924 (b) 100% of the sales price of any used manufactured home;
1925 (35) sales relating to schools and fundraising sales;
1926 (36) sales or rentals of durable medical equipment if:
1927 (a) a person presents a prescription for the durable medical equipment; and
1928 (b) the durable medical equipment is used for home use only;
1929 (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
1930 Section 72-11-102; and
1931 (b) the commission shall by rule determine the method for calculating sales exempt
1932 under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
1933 (38) sales to a ski resort of:
1934 (a) snowmaking equipment;
1935 (b) ski slope grooming equipment;
1936 (c) passenger ropeways as defined in Section 72-11-102; or
1937 (d) parts used in the repairs or renovations of equipment or passenger ropeways
1938 described in Subsections (38)(a) through (c);
1939 (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
1940 (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
1941 amusement, entertainment, or recreation an unassisted amusement device as defined in Section
1942 59-12-102;
1943 (b) if a seller that sells or rents at the same business location the right to use or operate
1944 for amusement, entertainment, or recreation one or more unassisted amusement devices and
1945 one or more assisted amusement devices, the exemption described in Subsection (40)(a)
1946 applies if the seller separately accounts for the sales or rentals of the right to use or operate for
1947 amusement, entertainment, or recreation for the assisted amusement devices; and
1948 (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
1949 Utah Administrative Rulemaking Act, the commission may make rules:
1950 (i) governing the circumstances under which sales are at the same business location;
1951 and
1952 (ii) establishing the procedures and requirements for a seller to separately account for
1953 the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
1954 assisted amusement devices;
1955 (41) (a) sales of photocopies by:
1956 (i) a governmental entity; or
1957 (ii) an entity within the state system of public education, including:
1958 (A) a school; or
1959 (B) the State Board of Education; or
1960 (b) sales of publications by a governmental entity;
1961 (42) amounts paid for admission to an athletic event at an institution of higher
1962 education that is subject to the provisions of Title IX of the Education Amendments of 1972,
1963 20 U.S.C. Sec. 1681 et seq.;
1964 (43) (a) sales made to or by:
1965 (i) an area agency on aging; or
1966 (ii) a senior citizen center owned by a county, city, or town; or
1967 (b) sales made by a senior citizen center that contracts with an area agency on aging;
1968 (44) sales or leases of semiconductor fabricating, processing, research, or development
1969 materials regardless of whether the semiconductor fabricating, processing, research, or
1970 development materials:
1971 (a) actually come into contact with a semiconductor; or
1972 (b) ultimately become incorporated into real property;
1973 (45) an amount paid by or charged to a purchaser for accommodations and services
1974 described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under Section
1975 59-12-104.2;
1976 (46) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
1977 sports event registration certificate in accordance with Section 41-3-306 for the event period
1978 specified on the temporary sports event registration certificate;
1979 (47) (a) sales or uses of electricity, if the sales or uses are made under a tariff adopted
1980 by the Public Service Commission of Utah only for purchase of electricity produced from a
1981 new alternative energy source, as designated in the tariff by the Public Service Commission of
1982 Utah; and
1983 (b) the exemption under Subsection (47)(a) applies to the portion of the tariff rate a
1984 customer pays under the tariff described in Subsection (47)(a) that exceeds the tariff rate under
1985 the tariff described in Subsection (47)(a) that the customer would have paid absent the tariff;
1986 (48) sales or rentals of mobility enhancing equipment if a person presents a
1987 prescription for the mobility enhancing equipment;
1988 (49) sales of water in a:
1989 (a) pipe;
1990 (b) conduit;
1991 (c) ditch; or
1992 (d) reservoir;
1993 (50) sales of currency or coins that constitute legal tender of a state, the United States,
1994 or a foreign nation;
1995 (51) (a) sales of an item described in Subsection (51)(b) if the item:
1996 (i) does not constitute legal tender of a state, the United States, or a foreign nation; and
1997 (ii) has a gold, silver, or platinum content of 50% or more; and
1998 (b) Subsection (51)(a) applies to a gold, silver, or platinum:
1999 (i) ingot;
2000 (ii) bar;
2001 (iii) medallion; or
2002 (iv) decorative coin;
2003 (52) amounts paid on a sale-leaseback transaction;
2004 (53) sales of a prosthetic device:
2005 (a) for use on or in a human; and
2006 (b) (i) for which a prescription is required; or
2007 (ii) if the prosthetic device is purchased by a hospital or other medical facility;
2008 (54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
2009 machinery or equipment by an establishment described in Subsection (54)(c) if the machinery
2010 or equipment is primarily used in the production or postproduction of the following media for
2011 commercial distribution:
2012 (i) a motion picture;
2013 (ii) a television program;
2014 (iii) a movie made for television;
2015 (iv) a music video;
2016 (v) a commercial;
2017 (vi) a documentary; or
2018 (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
2019 commission by administrative rule made in accordance with Subsection (54)(d); or
2020 (b) purchases, leases, or rentals of machinery or equipment by an establishment
2021 described in Subsection (54)(c) that is used for the production or postproduction of the
2022 following are subject to the taxes imposed by this chapter:
2023 (i) a live musical performance;
2024 (ii) a live news program; or
2025 (iii) a live sporting event;
2026 (c) the following establishments listed in the 1997 North American Industry
2027 Classification System of the federal Executive Office of the President, Office of Management
2028 and Budget, apply to Subsections (54)(a) and (b):
2029 (i) NAICS Code 512110; or
2030 (ii) NAICS Code 51219; and
2031 (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2032 commission may by rule:
2033 (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
2034 or
2035 (ii) define:
2036 (A) "commercial distribution";
2037 (B) "live musical performance";
2038 (C) "live news program"; or
2039 (D) "live sporting event";
2040 (55) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
2041 on or before June 30, 2027, of tangible personal property that:
2042 (i) is leased or purchased for or by a facility that:
2043 (A) is an alternative energy electricity production facility;
2044 (B) is located in the state; and
2045 (C) (I) becomes operational on or after July 1, 2004; or
2046 (II) has its generation capacity increased by one or more megawatts on or after July 1,
2047 2004, as a result of the use of the tangible personal property;
2048 (ii) has an economic life of five or more years; and
2049 (iii) is used to make the facility or the increase in capacity of the facility described in
2050 Subsection (55)(a)(i) operational up to the point of interconnection with an existing
2051 transmission grid including:
2052 (A) a wind turbine;
2053 (B) generating equipment;
2054 (C) a control and monitoring system;
2055 (D) a power line;
2056 (E) substation equipment;
2057 (F) lighting;
2058 (G) fencing;
2059 (H) pipes; or
2060 (I) other equipment used for locating a power line or pole; and
2061 (b) this Subsection (55) does not apply to:
2062 (i) tangible personal property used in construction of:
2063 (A) a new alternative energy electricity production facility; or
2064 (B) the increase in the capacity of an alternative energy electricity production facility;
2065 (ii) contracted services required for construction and routine maintenance activities;
2066 and
2067 (iii) unless the tangible personal property is used or acquired for an increase in capacity
2068 of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal property used or
2069 acquired after:
2070 (A) the alternative energy electricity production facility described in Subsection
2071 (55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
2072 (B) the increased capacity described in Subsection (55)(a)(i) is operational as described
2073 in Subsection (55)(a)(iii);
2074 (56) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
2075 on or before June 30, 2027, of tangible personal property that:
2076 (i) is leased or purchased for or by a facility that:
2077 (A) is a waste energy production facility;
2078 (B) is located in the state; and
2079 (C) (I) becomes operational on or after July 1, 2004; or
2080 (II) has its generation capacity increased by one or more megawatts on or after July 1,
2081 2004, as a result of the use of the tangible personal property;
2082 (ii) has an economic life of five or more years; and
2083 (iii) is used to make the facility or the increase in capacity of the facility described in
2084 Subsection (56)(a)(i) operational up to the point of interconnection with an existing
2085 transmission grid including:
2086 (A) generating equipment;
2087 (B) a control and monitoring system;
2088 (C) a power line;
2089 (D) substation equipment;
2090 (E) lighting;
2091 (F) fencing;
2092 (G) pipes; or
2093 (H) other equipment used for locating a power line or pole; and
2094 (b) this Subsection (56) does not apply to:
2095 (i) tangible personal property used in construction of:
2096 (A) a new waste energy facility; or
2097 (B) the increase in the capacity of a waste energy facility;
2098 (ii) contracted services required for construction and routine maintenance activities;
2099 and
2100 (iii) unless the tangible personal property is used or acquired for an increase in capacity
2101 described in Subsection (56)(a)(i)(C)(II), tangible personal property used or acquired after:
2102 (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
2103 described in Subsection (56)(a)(iii); or
2104 (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
2105 in Subsection (56)(a)(iii);
2106 (57) (a) leases of five or more years or purchases made on or after July 1, 2004, but on
2107 or before June 30, 2027, of tangible personal property that:
2108 (i) is leased or purchased for or by a facility that:
2109 (A) is located in the state;
2110 (B) produces fuel from alternative energy, including:
2111 (I) methanol; or
2112 (II) ethanol; and
2113 (C) (I) becomes operational on or after July 1, 2004; or
2114 (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as
2115 a result of the installation of the tangible personal property;
2116 (ii) has an economic life of five or more years; and
2117 (iii) is installed on the facility described in Subsection (57)(a)(i);
2118 (b) this Subsection (57) does not apply to:
2119 (i) tangible personal property used in construction of:
2120 (A) a new facility described in Subsection (57)(a)(i); or
2121 (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
2122 (ii) contracted services required for construction and routine maintenance activities;
2123 and
2124 (iii) unless the tangible personal property is used or acquired for an increase in capacity
2125 described in Subsection (57)(a)(i)(C)(II), tangible personal property used or acquired after:
2126 (A) the facility described in Subsection (57)(a)(i) is operational; or
2127 (B) the increased capacity described in Subsection (57)(a)(i) is operational;
2128 (58) (a) subject to Subsection (58)(b) or (c), sales of tangible personal property or a
2129 product transferred electronically to a person within this state if that tangible personal property
2130 or product transferred electronically is subsequently shipped outside the state and incorporated
2131 pursuant to contract into and becomes a part of real property located outside of this state;
2132 (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
2133 state or political entity to which the tangible personal property is shipped imposes a sales, use,
2134 gross receipts, or other similar transaction excise tax on the transaction against which the other
2135 state or political entity allows a credit for sales and use taxes imposed by this chapter; and
2136 (c) notwithstanding the time period of Subsection 59-1-1410(8) for filing for a refund,
2137 a person may claim the exemption allowed by this Subsection (58) for a sale by filing for a
2138 refund:
2139 (i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
2140 (ii) as if this Subsection (58) as in effect on July 1, 2008, were in effect on the day on
2141 which the sale is made;
2142 (iii) if the person did not claim the exemption allowed by this Subsection (58) for the
2143 sale prior to filing for the refund;
2144 (iv) for sales and use taxes paid under this chapter on the sale;
2145 (v) in accordance with Section 59-1-1410; and
2146 (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410, if
2147 the person files for the refund on or before June 30, 2011;
2148 (59) purchases:
2149 (a) of one or more of the following items in printed or electronic format:
2150 (i) a list containing information that includes one or more:
2151 (A) names; or
2152 (B) addresses; or
2153 (ii) a database containing information that includes one or more:
2154 (A) names; or
2155 (B) addresses; and
2156 (b) used to send direct mail;
2157 (60) redemptions or repurchases of a product by a person if that product was:
2158 (a) delivered to a pawnbroker as part of a pawn transaction; and
2159 (b) redeemed or repurchased within the time period established in a written agreement
2160 between the person and the pawnbroker for redeeming or repurchasing the product;
2161 (61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
2162 (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
2163 and
2164 (ii) has a useful economic life of one or more years; and
2165 (b) the following apply to Subsection (61)(a):
2166 (i) telecommunications enabling or facilitating equipment, machinery, or software;
2167 (ii) telecommunications equipment, machinery, or software required for 911 service;
2168 (iii) telecommunications maintenance or repair equipment, machinery, or software;
2169 (iv) telecommunications switching or routing equipment, machinery, or software; or
2170 (v) telecommunications transmission equipment, machinery, or software;
2171 (62) (a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
2172 personal property or a product transferred electronically that are used in the research and
2173 development of alternative energy technology; and
2174 (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2175 commission may, for purposes of Subsection (62)(a), make rules defining what constitutes
2176 purchases of tangible personal property or a product transferred electronically that are used in
2177 the research and development of alternative energy technology;
2178 (63) (a) purchases of tangible personal property or a product transferred electronically
2179 if:
2180 (i) the tangible personal property or product transferred electronically is:
2181 (A) purchased outside of this state;
2182 (B) brought into this state at any time after the purchase described in Subsection
2183 (63)(a)(i)(A); and
2184 (C) used in conducting business in this state; and
2185 (ii) for:
2186 (A) tangible personal property or a product transferred electronically other than the
2187 tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property
2188 for a purpose for which the property is designed occurs outside of this state; or
2189 (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
2190 outside of this state;
2191 (b) the exemption provided for in Subsection (63)(a) does not apply to:
2192 (i) a lease or rental of tangible personal property or a product transferred electronically;
2193 or
2194 (ii) a sale of a vehicle exempt under Subsection (33); and
2195 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
2196 purposes of Subsection (63)(a), the commission may by rule define what constitutes the
2197 following:
2198 (i) conducting business in this state if that phrase has the same meaning in this
2199 Subsection (63) as in Subsection (24);
2200 (ii) the first use of tangible personal property or a product transferred electronically if
2201 that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
2202 (iii) a purpose for which tangible personal property or a product transferred
2203 electronically is designed if that phrase has the same meaning in this Subsection (63) as in
2204 Subsection (24);
2205 (64) sales of disposable home medical equipment or supplies if:
2206 (a) a person presents a prescription for the disposable home medical equipment or
2207 supplies;
2208 (b) the disposable home medical equipment or supplies are used exclusively by the
2209 person to whom the prescription described in Subsection (64)(a) is issued; and
2210 (c) the disposable home medical equipment and supplies are listed as eligible for
2211 payment under:
2212 (i) Title XVIII, federal Social Security Act; or
2213 (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
2214 (65) sales:
2215 (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
2216 District Act; or
2217 (b) of tangible personal property to a subcontractor of a public transit district, if the
2218 tangible personal property is:
2219 (i) clearly identified; and
2220 (ii) installed or converted to real property owned by the public transit district;
2221 (66) sales of construction materials:
2222 (a) purchased on or after July 1, 2010;
2223 (b) purchased by, on behalf of, or for the benefit of an international airport:
2224 (i) located within a county of the first class; and
2225 (ii) that has a United States customs office on its premises; and
2226 (c) if the construction materials are:
2227 (i) clearly identified;
2228 (ii) segregated; and
2229 (iii) installed or converted to real property:
2230 (A) owned or operated by the international airport described in Subsection (66)(b); and
2231 (B) located at the international airport described in Subsection (66)(b);
2232 (67) sales of construction materials:
2233 (a) purchased on or after July 1, 2008;
2234 (b) purchased by, on behalf of, or for the benefit of a new airport:
2235 (i) located within a county of the second class; and
2236 (ii) that is owned or operated by a city in which an airline as defined in Section
2237 59-2-102 is headquartered; and
2238 (c) if the construction materials are:
2239 (i) clearly identified;
2240 (ii) segregated; and
2241 (iii) installed or converted to real property:
2242 (A) owned or operated by the new airport described in Subsection (67)(b);
2243 (B) located at the new airport described in Subsection (67)(b); and
2244 (C) as part of the construction of the new airport described in Subsection (67)(b);
2245 (68) sales of fuel to a common carrier that is a railroad for use in a locomotive engine;
2246 (69) purchases and sales described in Section 63H-4-111;
2247 (70) (a) sales of tangible personal property to an aircraft maintenance, repair, and
2248 overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
2249 a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
2250 lists a state or country other than this state as the location of registry of the fixed wing turbine
2251 powered aircraft; or
2252 (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
2253 provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
2254 a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
2255 lists a state or country other than this state as the location of registry of the fixed wing turbine
2256 powered aircraft;
2257 (71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
2258 (a) to a person admitted to an institution of higher education; and
2259 (b) by a seller, other than a bookstore owned by an institution of higher education, if
2260 51% or more of that seller's sales revenue for the previous calendar quarter are sales of a
2261 textbook for a higher education course;
2262 (72) a license fee or tax a municipality imposes in accordance with Subsection
2263 10-1-203(5) on a purchaser from a business for which the municipality provides an enhanced
2264 level of municipal services;
2265 (73) amounts paid or charged for construction materials used in the construction of a
2266 new or expanding life science research and development facility in the state, if the construction
2267 materials are:
2268 (a) clearly identified;
2269 (b) segregated; and
2270 (c) installed or converted to real property;
2271 (74) amounts paid or charged for:
2272 (a) a purchase or lease of machinery and equipment that:
2273 (i) are used in performing qualified research:
2274 (A) as defined in Section 59-7-612;
2275 (B) in the state; and
2276 (C) with respect to which the purchaser pays or incurs a qualified research expense as
2277 defined in Section 59-7-612; and
2278 (ii) have an economic life of three or more years; and
2279 (b) normal operating repair or replacement parts:
2280 (i) for the machinery and equipment described in Subsection (74)(a); and
2281 (ii) that have an economic life of three or more years;
2282 (75) a sale or lease of tangible personal property used in the preparation of prepared
2283 food if:
2284 (a) for a sale:
2285 (i) the ownership of the seller and the ownership of the purchaser are identical; and
2286 (ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
2287 tangible personal property prior to making the sale; or
2288 (b) for a lease:
2289 (i) the ownership of the lessor and the ownership of the lessee are identical; and
2290 (ii) the lessor or the lessee paid a tax under this chapter on the purchase of that tangible
2291 personal property prior to making the lease;
2292 (76) (a) purchases of machinery or equipment if:
2293 (i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
2294 Gambling, and Recreation Industries, of the 2012 North American Industry Classification
2295 System of the federal Executive Office of the President, Office of Management and Budget;
2296 (ii) the machinery or equipment:
2297 (A) has an economic life of three or more years; and
2298 (B) is used by one or more persons who pay admission or user fees described in
2299 Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment; and
2300 (iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
2301 (A) amounts paid or charged as admission or user fees described in Subsection
2302 59-12-103(1)(f); and
2303 (B) subject to taxation under this chapter;
2304 (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2305 commission may make rules for verifying that 51% of a purchaser's sales revenue for the
2306 previous calendar quarter is:
2307 (i) amounts paid or charged as admission or user fees described in Subsection
2308 59-12-103(1)(f); and
2309 (ii) subject to taxation under this chapter; and
2310 (c) on or before the November 2018 interim meeting, and every five years after the
2311 November 2018 interim meeting, the commission shall review the exemption provided in this
2312 Subsection (76) and report to the Revenue and Taxation Interim Committee on:
2313 (i) the revenue lost to the state and local taxing jurisdictions as a result of the
2314 exemption;
2315 (ii) the purpose and effectiveness of the exemption; and
2316 (iii) whether the exemption benefits the state;
2317 (77) purchases of a short-term lodging consumable by a business that provides
2318 accommodations and services described in Subsection 59-12-103(1)(i);
2319 (78) amounts paid or charged to access a database:
2320 (a) if the primary purpose for accessing the database is to view or retrieve information
2321 from the database; and
2322 (b) not including amounts paid or charged for a:
2323 (i) digital audiowork;
2324 (ii) digital audio-visual work; or
2325 (iii) digital book;
2326 (79) amounts paid or charged for a purchase or lease made by an electronic financial
2327 payment service, of:
2328 (a) machinery and equipment that:
2329 (i) are used in the operation of the electronic financial payment service; and
2330 (ii) have an economic life of three or more years; and
2331 (b) normal operating repair or replacement parts that:
2332 (i) are used in the operation of the electronic financial payment service; and
2333 (ii) have an economic life of three or more years;
2334 (80) beginning on April 1, 2013, sales of a fuel cell as defined in Section 54-15-102;
2335 (81) amounts paid or charged for a purchase or lease of tangible personal property or a
2336 product transferred electronically if the tangible personal property or product transferred
2337 electronically:
2338 (a) is stored, used, or consumed in the state; and
2339 (b) is temporarily brought into the state from another state:
2340 (i) during a disaster period as defined in Section 53-2a-1202;
2341 (ii) by an out-of-state business as defined in Section 53-2a-1202;
2342 (iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
2343 (iv) for disaster- or emergency-related work as defined in Section 53-2a-1202; [
2344 (82) sales of goods and services at a morale, welfare, and recreation facility, as defined
2345 in Section 39-9-102, made pursuant to Title 39, Chapter 9, State Morale, Welfare, and
2346 Recreation Program[
2347 (83) (a) except as provided in Subsection (83)(b), amounts paid or charged for a
2348 purchase or lease made by a drilling equipment manufacturer of machinery, equipment,
2349 materials, or normal operating repair or replacement parts:
2350 (i) that are used or consumed exclusively in the drilling equipment manufacturer's
2351 manufacturing process; and
2352 (ii) except for office:
2353 (A) equipment; or
2354 (B) supplies; and
2355 (b) beginning on July 1, 2015, and ending on June 30, 2017, a person may claim an
2356 exemption described in Subsection (83)(a) only by filing for a refund:
2357 (i) of 50% of the tax paid on the amounts paid or charged; and
2358 (ii) in accordance with Section 59-1-1410.
2359 Section 3. Effective date.
2360 This bill takes effect on July 1, 2015.