1     
SALES TAX EXEMPTION REVISIONS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Joel K. Briscoe

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill creates a sales and use tax exemption for an electric energy storage asset.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines electric energy storage asset;
13          ▸     creates a sales and use tax exemption for an electric energy storage asset used for
14     residential, commercial, or industrial purposes; and
15          ▸     makes technical changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          This bill provides a special effective date.
20     Utah Code Sections Affected:
21     AMENDS:
22          59-12-102, as last amended by Laws of Utah 2018, Chapters 25, 281, 415, 424, and 472
23          59-12-104, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
24     

25     Be it enacted by the Legislature of the state of Utah:
26          Section 1. Section 59-12-102 is amended to read:
27          59-12-102. Definitions.

28          As used in this chapter:
29          (1) "800 service" means a telecommunications service that:
30          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
31          (b) is typically marketed:
32          (i) under the name 800 toll-free calling;
33          (ii) under the name 855 toll-free calling;
34          (iii) under the name 866 toll-free calling;
35          (iv) under the name 877 toll-free calling;
36          (v) under the name 888 toll-free calling; or
37          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
38     Federal Communications Commission.
39          (2) (a) "900 service" means an inbound toll telecommunications service that:
40          (i) a subscriber purchases;
41          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
42     the subscriber's:
43          (A) prerecorded announcement; or
44          (B) live service; and
45          (iii) is typically marketed:
46          (A) under the name 900 service; or
47          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
48     Communications Commission.
49          (b) "900 service" does not include a charge for:
50          (i) a collection service a seller of a telecommunications service provides to a
51     subscriber; or
52          (ii) the following a subscriber sells to the subscriber's customer:
53          (A) a product; or
54          (B) a service.
55          (3) (a) "Admission or user fees" includes season passes.
56          (b) "Admission or user fees" does not include annual membership dues to private
57     organizations.
58          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on

59     November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
60     Agreement after November 12, 2002.
61          (5) "Agreement combined tax rate" means the sum of the tax rates:
62          (a) listed under Subsection (6); and
63          (b) that are imposed within a local taxing jurisdiction.
64          (6) "Agreement sales and use tax" means a tax imposed under:
65          (a) Subsection 59-12-103(2)(a)(i)(A);
66          (b) Subsection 59-12-103(2)(b)(i);
67          (c) Subsection 59-12-103(2)(c)(i);
68          (d) Subsection 59-12-103(2)(d)(i)(A)(I);
69          (e) Section 59-12-204;
70          (f) Section 59-12-401;
71          (g) Section 59-12-402;
72          (h) Section 59-12-402.1;
73          (i) Section 59-12-703;
74          (j) Section 59-12-802;
75          (k) Section 59-12-804;
76          (l) Section 59-12-1102;
77          (m) Section 59-12-1302;
78          (n) Section 59-12-1402;
79          (o) Section 59-12-1802;
80          (p) Section 59-12-2003;
81          (q) Section 59-12-2103;
82          (r) Section 59-12-2213;
83          (s) Section 59-12-2214;
84          (t) Section 59-12-2215;
85          (u) Section 59-12-2216;
86          (v) Section 59-12-2217;
87          (w) Section 59-12-2218;
88          (x) Section 59-12-2219; or
89          (y) Section 59-12-2220.

90          (7) "Aircraft" means the same as that term is defined in Section 72-10-102.
91          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
92          (a) except for:
93          (i) an airline as defined in Section 59-2-102; or
94          (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
95     includes a corporation that is qualified to do business but is not otherwise doing business in the
96     state, of an airline; and
97          (b) that has the workers, expertise, and facilities to perform the following, regardless of
98     whether the business entity performs the following in this state:
99          (i) check, diagnose, overhaul, and repair:
100          (A) an onboard system of a fixed wing turbine powered aircraft; and
101          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
102          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
103     engine;
104          (iii) perform at least the following maintenance on a fixed wing turbine powered
105     aircraft:
106          (A) an inspection;
107          (B) a repair, including a structural repair or modification;
108          (C) changing landing gear; and
109          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
110          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
111     completely apply new paint to the fixed wing turbine powered aircraft; and
112          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
113     results in a change in the fixed wing turbine powered aircraft's certification requirements by the
114     authority that certifies the fixed wing turbine powered aircraft.
115          (9) "Alcoholic beverage" means a beverage that:
116          (a) is suitable for human consumption; and
117          (b) contains .5% or more alcohol by volume.
118          (10) "Alternative energy" means:
119          (a) biomass energy;
120          (b) geothermal energy;

121          (c) hydroelectric energy;
122          (d) solar energy;
123          (e) wind energy; or
124          (f) energy that is derived from:
125          (i) coal-to-liquids;
126          (ii) nuclear fuel;
127          (iii) oil-impregnated diatomaceous earth;
128          (iv) oil sands;
129          (v) oil shale;
130          (vi) petroleum coke; or
131          (vii) waste heat from:
132          (A) an industrial facility; or
133          (B) a power station in which an electric generator is driven through a process in which
134     water is heated, turns into steam, and spins a steam turbine.
135          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
136     facility" means a facility that:
137          (i) uses alternative energy to produce electricity; and
138          (ii) has a production capacity of two megawatts or greater.
139          (b) A facility is an alternative energy electricity production facility regardless of
140     whether the facility is:
141          (i) connected to an electric grid; or
142          (ii) located on the premises of an electricity consumer.
143          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
144     provision of telecommunications service.
145          (b) "Ancillary service" includes:
146          (i) a conference bridging service;
147          (ii) a detailed communications billing service;
148          (iii) directory assistance;
149          (iv) a vertical service; or
150          (v) a voice mail service.
151          (13) "Area agency on aging" means the same as that term is defined in Section

152     62A-3-101.
153          (14) "Assisted amusement device" means an amusement device, skill device, or ride
154     device that is started and stopped by an individual:
155          (a) who is not the purchaser or renter of the right to use or operate the amusement
156     device, skill device, or ride device; and
157          (b) at the direction of the seller of the right to use the amusement device, skill device,
158     or ride device.
159          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
160     washing of tangible personal property if the cleaning or washing labor is primarily performed
161     by an individual:
162          (a) who is not the purchaser of the cleaning or washing of the tangible personal
163     property; and
164          (b) at the direction of the seller of the cleaning or washing of the tangible personal
165     property.
166          (16) "Authorized carrier" means:
167          (a) in the case of vehicles operated over public highways, the holder of credentials
168     indicating that the vehicle is or will be operated pursuant to both the International Registration
169     Plan and the International Fuel Tax Agreement;
170          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
171     certificate or air carrier's operating certificate; or
172          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
173     stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
174     stock in more than one state.
175          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
176     following that is used as the primary source of energy to produce fuel or electricity:
177          (i) material from a plant or tree; or
178          (ii) other organic matter that is available on a renewable basis, including:
179          (A) slash and brush from forests and woodlands;
180          (B) animal waste;
181          (C) waste vegetable oil;
182          (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of

183     wastewater residuals, or through the conversion of a waste material through a nonincineration,
184     thermal conversion process;
185          (E) aquatic plants; and
186          (F) agricultural products.
187          (b) "Biomass energy" does not include:
188          (i) black liquor; or
189          (ii) treated woods.
190          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
191     property, products, or services if the tangible personal property, products, or services are:
192          (i) distinct and identifiable; and
193          (ii) sold for one nonitemized price.
194          (b) "Bundled transaction" does not include:
195          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
196     the basis of the selection by the purchaser of the items of tangible personal property included in
197     the transaction;
198          (ii) the sale of real property;
199          (iii) the sale of services to real property;
200          (iv) the retail sale of tangible personal property and a service if:
201          (A) the tangible personal property:
202          (I) is essential to the use of the service; and
203          (II) is provided exclusively in connection with the service; and
204          (B) the service is the true object of the transaction;
205          (v) the retail sale of two services if:
206          (A) one service is provided that is essential to the use or receipt of a second service;
207          (B) the first service is provided exclusively in connection with the second service; and
208          (C) the second service is the true object of the transaction;
209          (vi) a transaction that includes tangible personal property or a product subject to
210     taxation under this chapter and tangible personal property or a product that is not subject to
211     taxation under this chapter if the:
212          (A) seller's purchase price of the tangible personal property or product subject to
213     taxation under this chapter is de minimis; or

214          (B) seller's sales price of the tangible personal property or product subject to taxation
215     under this chapter is de minimis; and
216          (vii) the retail sale of tangible personal property that is not subject to taxation under
217     this chapter and tangible personal property that is subject to taxation under this chapter if:
218          (A) that retail sale includes:
219          (I) food and food ingredients;
220          (II) a drug;
221          (III) durable medical equipment;
222          (IV) mobility enhancing equipment;
223          (V) an over-the-counter drug;
224          (VI) a prosthetic device; or
225          (VII) a medical supply; and
226          (B) subject to Subsection (18)(f):
227          (I) the seller's purchase price of the tangible personal property subject to taxation under
228     this chapter is 50% or less of the seller's total purchase price of that retail sale; or
229          (II) the seller's sales price of the tangible personal property subject to taxation under
230     this chapter is 50% or less of the seller's total sales price of that retail sale.
231          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
232     service that is distinct and identifiable does not include:
233          (A) packaging that:
234          (I) accompanies the sale of the tangible personal property, product, or service; and
235          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
236     service;
237          (B) tangible personal property, a product, or a service provided free of charge with the
238     purchase of another item of tangible personal property, a product, or a service; or
239          (C) an item of tangible personal property, a product, or a service included in the
240     definition of "purchase price."
241          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
242     product, or a service is provided free of charge with the purchase of another item of tangible
243     personal property, a product, or a service if the sales price of the purchased item of tangible
244     personal property, product, or service does not vary depending on the inclusion of the tangible

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

276          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
277     contract to determine if the sales price of tangible personal property or a product is de minimis.
278          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
279     the seller's purchase price and the seller's sales price to determine if tangible personal property
280     subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
281     price of that retail sale.
282          (19) "Certified automated system" means software certified by the governing board of
283     the agreement that:
284          (a) calculates the agreement sales and use tax imposed within a local taxing
285     jurisdiction:
286          (i) on a transaction; and
287          (ii) in the states that are members of the agreement;
288          (b) determines the amount of agreement sales and use tax to remit to a state that is a
289     member of the agreement; and
290          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
291          (20) "Certified service provider" means an agent certified:
292          (a) by the governing board of the agreement; and
293          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
294     use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
295     own purchases.
296          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
297     suitable for general use.
298          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
299     commission shall make rules:
300          (i) listing the items that constitute "clothing"; and
301          (ii) that are consistent with the list of items that constitute "clothing" under the
302     agreement.
303          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
304          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
305     fuels that does not constitute industrial use under Subsection [(56)] (57) or residential use
306     under Subsection [(106)] (107).

307          (24) (a) "Common carrier" means a person engaged in or transacting the business of
308     transporting passengers, freight, merchandise, or other property for hire within this state.
309          (b) (i) "Common carrier" does not include a person who, at the time the person is
310     traveling to or from that person's place of employment, transports a passenger to or from the
311     passenger's place of employment.
312          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
313     Utah Administrative Rulemaking Act, the commission may make rules defining what
314     constitutes a person's place of employment.
315          (c) "Common carrier" does not include a person that provides transportation network
316     services, as defined in Section 13-51-102.
317          (25) "Component part" includes:
318          (a) poultry, dairy, and other livestock feed, and their components;
319          (b) baling ties and twine used in the baling of hay and straw;
320          (c) fuel used for providing temperature control of orchards and commercial
321     greenhouses doing a majority of their business in wholesale sales, and for providing power for
322     off-highway type farm machinery; and
323          (d) feed, seeds, and seedlings.
324          (26) "Computer" means an electronic device that accepts information:
325          (a) (i) in digital form; or
326          (ii) in a form similar to digital form; and
327          (b) manipulates that information for a result based on a sequence of instructions.
328          (27) "Computer software" means a set of coded instructions designed to cause:
329          (a) a computer to perform a task; or
330          (b) automatic data processing equipment to perform a task.
331          (28) "Computer software maintenance contract" means a contract that obligates a seller
332     of computer software to provide a customer with:
333          (a) future updates or upgrades to computer software;
334          (b) support services with respect to computer software; or
335          (c) a combination of Subsections (28)(a) and (b).
336          (29) (a) "Conference bridging service" means an ancillary service that links two or
337     more participants of an audio conference call or video conference call.

338          (b) "Conference bridging service" may include providing a telephone number as part of
339     the ancillary service described in Subsection (29)(a).
340          (c) "Conference bridging service" does not include a telecommunications service used
341     to reach the ancillary service described in Subsection (29)(a).
342          (30) "Construction materials" means any tangible personal property that will be
343     converted into real property.
344          (31) "Delivered electronically" means delivered to a purchaser by means other than
345     tangible storage media.
346          (32) (a) "Delivery charge" means a charge:
347          (i) by a seller of:
348          (A) tangible personal property;
349          (B) a product transferred electronically; or
350          (C) services; and
351          (ii) for preparation and delivery of the tangible personal property, product transferred
352     electronically, or services described in Subsection (32)(a)(i) to a location designated by the
353     purchaser.
354          (b) "Delivery charge" includes a charge for the following:
355          (i) transportation;
356          (ii) shipping;
357          (iii) postage;
358          (iv) handling;
359          (v) crating; or
360          (vi) packing.
361          (33) "Detailed telecommunications billing service" means an ancillary service of
362     separately stating information pertaining to individual calls on a customer's billing statement.
363          (34) "Dietary supplement" means a product, other than tobacco, that:
364          (a) is intended to supplement the diet;
365          (b) contains one or more of the following dietary ingredients:
366          (i) a vitamin;
367          (ii) a mineral;
368          (iii) an herb or other botanical;

369          (iv) an amino acid;
370          (v) a dietary substance for use by humans to supplement the diet by increasing the total
371     dietary intake; or
372          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
373     described in Subsections (34)(b)(i) through (v);
374          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
375          (A) tablet form;
376          (B) capsule form;
377          (C) powder form;
378          (D) softgel form;
379          (E) gelcap form; or
380          (F) liquid form; or
381          (ii) if the product is not intended for ingestion in a form described in Subsections
382     (34)(c)(i)(A) through (F), is not represented:
383          (A) as conventional food; and
384          (B) for use as a sole item of:
385          (I) a meal; or
386          (II) the diet; and
387          (d) is required to be labeled as a dietary supplement:
388          (i) identifiable by the "Supplemental Facts" box found on the label; and
389          (ii) as required by 21 C.F.R. Sec. 101.36.
390          (35) "Digital audio-visual work" means a series of related images which, when shown
391     in succession, imparts an impression of motion, together with accompanying sounds, if any.
392          (36) (a) "Digital audio work" means a work that results from the fixation of a series of
393     musical, spoken, or other sounds.
394          (b) "Digital audio work" includes a ringtone.
395          (37) "Digital book" means a work that is generally recognized in the ordinary and usual
396     sense as a book.
397          (38) (a) "Direct mail" means printed material delivered or distributed by United States
398     mail or other delivery service:
399          (i) to:

400          (A) a mass audience; or
401          (B) addressees on a mailing list provided:
402          (I) by a purchaser of the mailing list; or
403          (II) at the discretion of the purchaser of the mailing list; and
404          (ii) if the cost of the printed material is not billed directly to the recipients.
405          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
406     purchaser to a seller of direct mail for inclusion in a package containing the printed material.
407          (c) "Direct mail" does not include multiple items of printed material delivered to a
408     single address.
409          (39) "Directory assistance" means an ancillary service of providing:
410          (a) address information; or
411          (b) telephone number information.
412          (40) (a) "Disposable home medical equipment or supplies" means medical equipment
413     or supplies that:
414          (i) cannot withstand repeated use; and
415          (ii) are purchased by, for, or on behalf of a person other than:
416          (A) a health care facility as defined in Section 26-21-2;
417          (B) a health care provider as defined in Section 78B-3-403;
418          (C) an office of a health care provider described in Subsection (40)(a)(ii)(B); or
419          (D) a person similar to a person described in Subsections (40)(a)(ii)(A) through (C).
420          (b) "Disposable home medical equipment or supplies" does not include:
421          (i) a drug;
422          (ii) durable medical equipment;
423          (iii) a hearing aid;
424          (iv) a hearing aid accessory;
425          (v) mobility enhancing equipment; or
426          (vi) tangible personal property used to correct impaired vision, including:
427          (A) eyeglasses; or
428          (B) contact lenses.
429          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
430     commission may by rule define what constitutes medical equipment or supplies.

431          (41) "Drilling equipment manufacturer" means a facility:
432          (a) located in the state;
433          (b) with respect to which 51% or more of the manufacturing activities of the facility
434     consist of manufacturing component parts of drilling equipment;
435          (c) that uses pressure of 800,000 or more pounds per square inch as part of the
436     manufacturing process; and
437          (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
438     manufacturing process.
439          (42) (a) "Drug" means a compound, substance, or preparation, or a component of a
440     compound, substance, or preparation that is:
441          (i) recognized in:
442          (A) the official United States Pharmacopoeia;
443          (B) the official Homeopathic Pharmacopoeia of the United States;
444          (C) the official National Formulary; or
445          (D) a supplement to a publication listed in Subsections (42)(a)(i)(A) through (C);
446          (ii) intended for use in the:
447          (A) diagnosis of disease;
448          (B) cure of disease;
449          (C) mitigation of disease;
450          (D) treatment of disease; or
451          (E) prevention of disease; or
452          (iii) intended to affect:
453          (A) the structure of the body; or
454          (B) any function of the body.
455          (b) "Drug" does not include:
456          (i) food and food ingredients;
457          (ii) a dietary supplement;
458          (iii) an alcoholic beverage; or
459          (iv) a prosthetic device.
460          (43) (a) Except as provided in Subsection (43)(c), "durable medical equipment" means
461     equipment that:

462          (i) can withstand repeated use;
463          (ii) is primarily and customarily used to serve a medical purpose;
464          (iii) generally is not useful to a person in the absence of illness or injury; and
465          (iv) is not worn in or on the body.
466          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
467     equipment described in Subsection (43)(a).
468          (c) "Durable medical equipment" does not include mobility enhancing equipment.
469          (44) "Electric energy storage asset" means property that is interconnected to the
470     electrical grid and is designed to:
471          (a) receive electrical energy;
472          (b) store electrical energy as another energy form; and
473          (c) (i) convert electrical energy described in Subsection (44)(b) back to electricity and
474     deliver such electricity for sale; or
475          (ii) use electrical energy described in Subsection (44)(b) to provide reliability or
476     economic benefits to the grid.
477          [(44)] (45) "Electronic" means:
478          (a) relating to technology; and
479          (b) having:
480          (i) electrical capabilities;
481          (ii) digital capabilities;
482          (iii) magnetic capabilities;
483          (iv) wireless capabilities;
484          (v) optical capabilities;
485          (vi) electromagnetic capabilities; or
486          (vii) capabilities similar to Subsections [(44)] (45)(b)(i) through (vi).
487          [(45)] (46) "Electronic financial payment service" means an establishment:
488          (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
489     Clearinghouse Activities, of the 2012 North American Industry Classification System of the
490     federal Executive Office of the President, Office of Management and Budget; and
491          (b) that performs electronic financial payment services.
492          [(46)] (47) "Employee" means the same as that term is defined in Section 59-10-401.

493          [(47)] (48) "Fixed guideway" means a public transit facility that uses and occupies:
494          (a) rail for the use of public transit; or
495          (b) a separate right-of-way for the use of public transit.
496          [(48)] (49) "Fixed wing turbine powered aircraft" means an aircraft that:
497          (a) is powered by turbine engines;
498          (b) operates on jet fuel; and
499          (c) has wings that are permanently attached to the fuselage of the aircraft.
500          [(49)] (50) "Fixed wireless service" means a telecommunications service that provides
501     radio communication between fixed points.
502          [(50)] (51) (a) "Food and food ingredients" means substances:
503          (i) regardless of whether the substances are in:
504          (A) liquid form;
505          (B) concentrated form;
506          (C) solid form;
507          (D) frozen form;
508          (E) dried form; or
509          (F) dehydrated form; and
510          (ii) that are:
511          (A) sold for:
512          (I) ingestion by humans; or
513          (II) chewing by humans; and
514          (B) consumed for the substance's:
515          (I) taste; or
516          (II) nutritional value.
517          (b) "Food and food ingredients" includes an item described in Subsection [(91)]
518     (92)(b)(iii).
519          (c) "Food and food ingredients" does not include:
520          (i) an alcoholic beverage;
521          (ii) tobacco; or
522          (iii) prepared food.
523          [(51)] (52) (a) "Fundraising sales" means sales:

524          (i) (A) made by a school; or
525          (B) made by a school student;
526          (ii) that are for the purpose of raising funds for the school to purchase equipment,
527     materials, or provide transportation; and
528          (iii) that are part of an officially sanctioned school activity.
529          (b) For purposes of Subsection [(51)] (52)(a)(iii), "officially sanctioned school activity"
530     means a school activity:
531          (i) that is conducted in accordance with a formal policy adopted by the school or school
532     district governing the authorization and supervision of fundraising activities;
533          (ii) that does not directly or indirectly compensate an individual teacher or other
534     educational personnel by direct payment, commissions, or payment in kind; and
535          (iii) the net or gross revenues from which are deposited in a dedicated account
536     controlled by the school or school district.
537          [(52)] (53) "Geothermal energy" means energy contained in heat that continuously
538     flows outward from the earth that is used as the sole source of energy to produce electricity.
539          [(53)] (54) "Governing board of the agreement" means the governing board of the
540     agreement that is:
541          (a) authorized to administer the agreement; and
542          (b) established in accordance with the agreement.
543          [(54)] (55) (a) For purposes of Subsection 59-12-104(41), "governmental entity"
544     means:
545          (i) the executive branch of the state, including all departments, institutions, boards,
546     divisions, bureaus, offices, commissions, and committees;
547          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
548     Administrative Office of the Courts, and similar administrative units in the judicial branch;
549          (iii) the legislative branch of the state, including the House of Representatives, the
550     Senate, the Legislative Printing Office, the Office of Legislative Research and General
551     Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
552     Analyst;
553          (iv) the National Guard;
554          (v) an independent entity as defined in Section 63E-1-102; or

555          (vi) a political subdivision as defined in Section 17B-1-102.
556          (b) "Governmental entity" does not include the state systems of public and higher
557     education, including:
558          (i) a school;
559          (ii) the State Board of Education;
560          (iii) the State Board of Regents; or
561          (iv) an institution of higher education described in Section 53B-1-102.
562          [(55)] (56) "Hydroelectric energy" means water used as the sole source of energy to
563     produce electricity.
564          [(56)] (57) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil,
565     or other fuels:
566          (a) in mining or extraction of minerals;
567          (b) in agricultural operations to produce an agricultural product up to the time of
568     harvest or placing the agricultural product into a storage facility, including:
569          (i) commercial greenhouses;
570          (ii) irrigation pumps;
571          (iii) farm machinery;
572          (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
573     under Title 41, Chapter 1a, Part 2, Registration; and
574          (v) other farming activities;
575          (c) in manufacturing tangible personal property at an establishment described in:
576          (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
577     the federal Executive Office of the President, Office of Management and Budget; or
578          (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
579     American Industry Classification System of the federal Executive Office of the President,
580     Office of Management and Budget;
581          (d) by a scrap recycler if:
582          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
583     one or more of the following items into prepared grades of processed materials for use in new
584     products:
585          (A) iron;

586          (B) steel;
587          (C) nonferrous metal;
588          (D) paper;
589          (E) glass;
590          (F) plastic;
591          (G) textile; or
592          (H) rubber; and
593          (ii) the new products under Subsection [(56)] (57)(d)(i) would otherwise be made with
594     nonrecycled materials; or
595          (e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
596     cogeneration facility as defined in Section 54-2-1.
597          [(57)] (58) (a) Except as provided in Subsection [(57)] (58)(b), "installation charge"
598     means a charge for installing:
599          (i) tangible personal property; or
600          (ii) a product transferred electronically.
601          (b) "Installation charge" does not include a charge for:
602          (i) repairs or renovations of:
603          (A) tangible personal property; or
604          (B) a product transferred electronically; or
605          (ii) attaching tangible personal property or a product transferred electronically:
606          (A) to other tangible personal property; and
607          (B) as part of a manufacturing or fabrication process.
608          [(58)] (59) "Institution of higher education" means an institution of higher education
609     listed in Section 53B-2-101.
610          [(59)] (60) (a) "Lease" or "rental" means a transfer of possession or control of tangible
611     personal property or a product transferred electronically for:
612          (i) (A) a fixed term; or
613          (B) an indeterminate term; and
614          (ii) consideration.
615          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
616     amount of consideration may be increased or decreased by reference to the amount realized

617     upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
618     Code.
619          (c) "Lease" or "rental" does not include:
620          (i) a transfer of possession or control of property under a security agreement or
621     deferred payment plan that requires the transfer of title upon completion of the required
622     payments;
623          (ii) a transfer of possession or control of property under an agreement that requires the
624     transfer of title:
625          (A) upon completion of required payments; and
626          (B) if the payment of an option price does not exceed the greater of:
627          (I) $100; or
628          (II) 1% of the total required payments; or
629          (iii) providing tangible personal property along with an operator for a fixed period of
630     time or an indeterminate period of time if the operator is necessary for equipment to perform as
631     designed.
632          (d) For purposes of Subsection [(59)] (60)(c)(iii), an operator is necessary for
633     equipment to perform as designed if the operator's duties exceed the:
634          (i) set-up of tangible personal property;
635          (ii) maintenance of tangible personal property; or
636          (iii) inspection of tangible personal property.
637          [(60)] (61) "Life science establishment" means an establishment in this state that is
638     classified under the following NAICS codes of the 2007 North American Industry
639     Classification System of the federal Executive Office of the President, Office of Management
640     and Budget:
641          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
642          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
643     Manufacturing; or
644          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
645          [(61)] (62) "Life science research and development facility" means a facility owned,
646     leased, or rented by a life science establishment if research and development is performed in
647     51% or more of the total area of the facility.

648          [(62)] (63) "Load and leave" means delivery to a purchaser by use of a tangible storage
649     media if the tangible storage media is not physically transferred to the purchaser.
650          [(63)] (64) "Local taxing jurisdiction" means a:
651          (a) county that is authorized to impose an agreement sales and use tax;
652          (b) city that is authorized to impose an agreement sales and use tax; or
653          (c) town that is authorized to impose an agreement sales and use tax.
654          [(64)] (65) "Manufactured home" means the same as that term is defined in Section
655     15A-1-302.
656          [(65)] (66) "Manufacturing facility" means:
657          (a) an establishment described in:
658          (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
659     the federal Executive Office of the President, Office of Management and Budget; or
660          (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
661     American Industry Classification System of the federal Executive Office of the President,
662     Office of Management and Budget;
663          (b) a scrap recycler if:
664          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
665     one or more of the following items into prepared grades of processed materials for use in new
666     products:
667          (A) iron;
668          (B) steel;
669          (C) nonferrous metal;
670          (D) paper;
671          (E) glass;
672          (F) plastic;
673          (G) textile; or
674          (H) rubber; and
675          (ii) the new products under Subsection [(65)] (66)(b)(i) would otherwise be made with
676     nonrecycled materials; or
677          (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
678     placed in service on or after May 1, 2006.

679          [(66)] (67) "Member of the immediate family of the producer" means a person who is
680     related to a producer described in Subsection 59-12-104(20)(a) as a:
681          (a) child or stepchild, regardless of whether the child or stepchild is:
682          (i) an adopted child or adopted stepchild; or
683          (ii) a foster child or foster stepchild;
684          (b) grandchild or stepgrandchild;
685          (c) grandparent or stepgrandparent;
686          (d) nephew or stepnephew;
687          (e) niece or stepniece;
688          (f) parent or stepparent;
689          (g) sibling or stepsibling;
690          (h) spouse;
691          (i) person who is the spouse of a person described in Subsections [(66)] (67)(a) through
692     (g); or
693          (j) person similar to a person described in Subsections [(66)] (67)(a) through (i) as
694     determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
695     Administrative Rulemaking Act.
696          [(67)] (68) "Mobile home" means the same as that term is defined in Section
697     15A-1-302.
698          [(68)] (69) "Mobile telecommunications service" means the same as that term is
699     defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
700          [(69)] (70) (a) "Mobile wireless service" means a telecommunications service,
701     regardless of the technology used, if:
702          (i) the origination point of the conveyance, routing, or transmission is not fixed;
703          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
704          (iii) the origination point described in Subsection [(69)] (70)(a)(i) and the termination
705     point described in Subsection [(69)] (70)(a)(ii) are not fixed.
706          (b) "Mobile wireless service" includes a telecommunications service that is provided
707     by a commercial mobile radio service provider.
708          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
709     commission may by rule define "commercial mobile radio service provider."

710          [(70)] (71) (a) Except as provided in Subsection [(70)] (71)(c), "mobility enhancing
711     equipment" means equipment that is:
712          (i) primarily and customarily used to provide or increase the ability to move from one
713     place to another;
714          (ii) appropriate for use in a:
715          (A) home; or
716          (B) motor vehicle; and
717          (iii) not generally used by persons with normal mobility.
718          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
719     the equipment described in Subsection [(70)] (71)(a).
720          (c) "Mobility enhancing equipment" does not include:
721          (i) a motor vehicle;
722          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
723     vehicle manufacturer;
724          (iii) durable medical equipment; or
725          (iv) a prosthetic device.
726          [(71)] (72) "Model 1 seller" means a seller registered under the agreement that has
727     selected a certified service provider as the seller's agent to perform all of the seller's sales and
728     use tax functions for agreement sales and use taxes other than the seller's obligation under
729     Section 59-12-124 to remit a tax on the seller's own purchases.
730          [(72)] (73) "Model 2 seller" means a seller registered under the agreement that:
731          (a) except as provided in Subsection [(72)] (73)(b), has selected a certified automated
732     system to perform the seller's sales tax functions for agreement sales and use taxes; and
733          (b) retains responsibility for remitting all of the sales tax:
734          (i) collected by the seller; and
735          (ii) to the appropriate local taxing jurisdiction.
736          [(73)] (74) (a) Subject to Subsection [(73)] (74)(b), "model 3 seller" means a seller
737     registered under the agreement that has:
738          (i) sales in at least five states that are members of the agreement;
739          (ii) total annual sales revenues of at least $500,000,000;
740          (iii) a proprietary system that calculates the amount of tax:

741          (A) for an agreement sales and use tax; and
742          (B) due to each local taxing jurisdiction; and
743          (iv) entered into a performance agreement with the governing board of the agreement.
744          (b) For purposes of Subsection [(73)] (74)(a), "model 3 seller" includes an affiliated
745     group of sellers using the same proprietary system.
746          [(74)] (75) "Model 4 seller" means a seller that is registered under the agreement and is
747     not a model 1 seller, model 2 seller, or model 3 seller.
748          [(75)] (76) "Modular home" means a modular unit as defined in Section 15A-1-302.
749          [(76)] (77) "Motor vehicle" means the same as that term is defined in Section
750     41-1a-102.
751          [(77)] (78) "Oil sands" means impregnated bituminous sands that:
752          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
753     other hydrocarbons, or otherwise treated;
754          (b) yield mixtures of liquid hydrocarbon; and
755          (c) require further processing other than mechanical blending before becoming finished
756     petroleum products.
757          [(78)] (79) "Oil shale" means a group of fine black to dark brown shales containing
758     kerogen material that yields petroleum upon heating and distillation.
759          [(79)] (80) "Optional computer software maintenance contract" means a computer
760     software maintenance contract that a customer is not obligated to purchase as a condition to the
761     retail sale of computer software.
762          [(80)] (81) (a) "Other fuels" means products that burn independently to produce heat or
763     energy.
764          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
765     personal property.
766          [(81)] (82) (a) "Paging service" means a telecommunications service that provides
767     transmission of a coded radio signal for the purpose of activating a specific pager.
768          (b) For purposes of Subsection [(81)] (82)(a), the transmission of a coded radio signal
769     includes a transmission by message or sound.
770          [(82)] (83) "Pawnbroker" means the same as that term is defined in Section
771     13-32a-102.

772          [(83)] (84) "Pawn transaction" means the same as that term is defined in Section
773     13-32a-102.
774          [(84)] (85) (a) "Permanently attached to real property" means that for tangible personal
775     property attached to real property:
776          (i) the attachment of the tangible personal property to the real property:
777          (A) is essential to the use of the tangible personal property; and
778          (B) suggests that the tangible personal property will remain attached to the real
779     property in the same place over the useful life of the tangible personal property; or
780          (ii) if the tangible personal property is detached from the real property, the detachment
781     would:
782          (A) cause substantial damage to the tangible personal property; or
783          (B) require substantial alteration or repair of the real property to which the tangible
784     personal property is attached.
785          (b) "Permanently attached to real property" includes:
786          (i) the attachment of an accessory to the tangible personal property if the accessory is:
787          (A) essential to the operation of the tangible personal property; and
788          (B) attached only to facilitate the operation of the tangible personal property;
789          (ii) a temporary detachment of tangible personal property from real property for a
790     repair or renovation if the repair or renovation is performed where the tangible personal
791     property and real property are located; or
792          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
793     Subsection [(84)] (85)(c)(iii) or (iv).
794          (c) "Permanently attached to real property" does not include:
795          (i) the attachment of portable or movable tangible personal property to real property if
796     that portable or movable tangible personal property is attached to real property only for:
797          (A) convenience;
798          (B) stability; or
799          (C) for an obvious temporary purpose;
800          (ii) the detachment of tangible personal property from real property except for the
801     detachment described in Subsection [(84)] (85)(b)(ii);
802          (iii) an attachment of the following tangible personal property to real property if the

803     attachment to real property is only through a line that supplies water, electricity, gas,
804     telecommunications, cable, or supplies a similar item as determined by the commission by rule
805     made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
806          (A) a computer;
807          (B) a telephone;
808          (C) a television; or
809          (D) tangible personal property similar to Subsections [(84)] (85)(c)(iii)(A) through (C)
810     as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
811     Administrative Rulemaking Act; or
812          (iv) an item listed in Subsection [(125)] (126)(c).
813          [(85)] (86) "Person" includes any individual, firm, partnership, joint venture,
814     association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
815     city, municipality, district, or other local governmental entity of the state, or any group or
816     combination acting as a unit.
817          [(86)] (87) "Place of primary use":
818          (a) for telecommunications service other than mobile telecommunications service,
819     means the street address representative of where the customer's use of the telecommunications
820     service primarily occurs, which shall be:
821          (i) the residential street address of the customer; or
822          (ii) the primary business street address of the customer; or
823          (b) for mobile telecommunications service, means the same as that term is defined in
824     the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
825          [(87)] (88) (a) "Postpaid calling service" means a telecommunications service a person
826     obtains by making a payment on a call-by-call basis:
827          (i) through the use of a:
828          (A) bank card;
829          (B) credit card;
830          (C) debit card; or
831          (D) travel card; or
832          (ii) by a charge made to a telephone number that is not associated with the origination
833     or termination of the telecommunications service.

834          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
835     service, that would be a prepaid wireless calling service if the service were exclusively a
836     telecommunications service.
837          [(88)] (89) "Postproduction" means an activity related to the finishing or duplication of
838     a medium described in Subsection 59-12-104(54)(a).
839          [(89)] (90) "Prepaid calling service" means a telecommunications service:
840          (a) that allows a purchaser access to telecommunications service that is exclusively
841     telecommunications service;
842          (b) that:
843          (i) is paid for in advance; and
844          (ii) enables the origination of a call using an:
845          (A) access number; or
846          (B) authorization code;
847          (c) that is dialed:
848          (i) manually; or
849          (ii) electronically; and
850          (d) sold in predetermined units or dollars that decline:
851          (i) by a known amount; and
852          (ii) with use.
853          [(90)] (91) "Prepaid wireless calling service" means a telecommunications service:
854          (a) that provides the right to utilize:
855          (i) mobile wireless service; and
856          (ii) other service that is not a telecommunications service, including:
857          (A) the download of a product transferred electronically;
858          (B) a content service; or
859          (C) an ancillary service;
860          (b) that:
861          (i) is paid for in advance; and
862          (ii) enables the origination of a call using an:
863          (A) access number; or
864          (B) authorization code;

865          (c) that is dialed:
866          (i) manually; or
867          (ii) electronically; and
868          (d) sold in predetermined units or dollars that decline:
869          (i) by a known amount; and
870          (ii) with use.
871          [(91)] (92) (a) "Prepared food" means:
872          (i) food:
873          (A) sold in a heated state; or
874          (B) heated by a seller;
875          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
876     item; or
877          (iii) except as provided in Subsection [(91)] (92)(c), food sold with an eating utensil
878     provided by the seller, including a:
879          (A) plate;
880          (B) knife;
881          (C) fork;
882          (D) spoon;
883          (E) glass;
884          (F) cup;
885          (G) napkin; or
886          (H) straw.
887          (b) "Prepared food" does not include:
888          (i) food that a seller only:
889          (A) cuts;
890          (B) repackages; or
891          (C) pasteurizes; or
892          (ii) (A) the following:
893          (I) raw egg;
894          (II) raw fish;
895          (III) raw meat;

896          (IV) raw poultry; or
897          (V) a food containing an item described in Subsections [(91)] (92)(b)(ii)(A)(I) through
898     (IV); and
899          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
900     Food and Drug Administration's Food Code that a consumer cook the items described in
901     Subsection [(91)] (92)(b)(ii)(A) to prevent food borne illness; or
902          (iii) the following if sold without eating utensils provided by the seller:
903          (A) food and food ingredients sold by a seller if the seller's proper primary
904     classification under the 2002 North American Industry Classification System of the federal
905     Executive Office of the President, Office of Management and Budget, is manufacturing in
906     Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
907     Manufacturing;
908          (B) food and food ingredients sold in an unheated state:
909          (I) by weight or volume; and
910          (II) as a single item; or
911          (C) a bakery item, including:
912          (I) a bagel;
913          (II) a bar;
914          (III) a biscuit;
915          (IV) bread;
916          (V) a bun;
917          (VI) a cake;
918          (VII) a cookie;
919          (VIII) a croissant;
920          (IX) a danish;
921          (X) a donut;
922          (XI) a muffin;
923          (XII) a pastry;
924          (XIII) a pie;
925          (XIV) a roll;
926          (XV) a tart;

927          (XVI) a torte; or
928          (XVII) a tortilla.
929          (c) An eating utensil provided by the seller does not include the following used to
930     transport the food:
931          (i) a container; or
932          (ii) packaging.
933          [(92)] (93) "Prescription" means an order, formula, or recipe that is issued:
934          (a) (i) orally;
935          (ii) in writing;
936          (iii) electronically; or
937          (iv) by any other manner of transmission; and
938          (b) by a licensed practitioner authorized by the laws of a state.
939          [(93)] (94) (a) Except as provided in Subsection [(93)] (94)(b)(ii) or (iii), "prewritten
940     computer software" means computer software that is not designed and developed:
941          (i) by the author or other creator of the computer software; and
942          (ii) to the specifications of a specific purchaser.
943          (b) "Prewritten computer software" includes:
944          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
945     software is not designed and developed:
946          (A) by the author or other creator of the computer software; and
947          (B) to the specifications of a specific purchaser;
948          (ii) computer software designed and developed by the author or other creator of the
949     computer software to the specifications of a specific purchaser if the computer software is sold
950     to a person other than the purchaser; or
951          (iii) except as provided in Subsection [(93)] (94)(c), prewritten computer software or a
952     prewritten portion of prewritten computer software:
953          (A) that is modified or enhanced to any degree; and
954          (B) if the modification or enhancement described in Subsection [(93)] (94)(b)(iii)(A) is
955     designed and developed to the specifications of a specific purchaser.
956          (c) "Prewritten computer software" does not include a modification or enhancement
957     described in Subsection [(93)] (94)(b)(iii) if the charges for the modification or enhancement

958     are:
959          (i) reasonable; and
960          (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), separately stated on the
961     invoice or other statement of price provided to the purchaser at the time of sale or later, as
962     demonstrated by:
963          (A) the books and records the seller keeps at the time of the transaction in the regular
964     course of business, including books and records the seller keeps at the time of the transaction in
965     the regular course of business for nontax purposes;
966          (B) a preponderance of the facts and circumstances at the time of the transaction; and
967          (C) the understanding of all of the parties to the transaction.
968          [(94)] (95) (a) "Private communications service" means a telecommunications service:
969          (i) that entitles a customer to exclusive or priority use of one or more communications
970     channels between or among termination points; and
971          (ii) regardless of the manner in which the one or more communications channels are
972     connected.
973          (b) "Private communications service" includes the following provided in connection
974     with the use of one or more communications channels:
975          (i) an extension line;
976          (ii) a station;
977          (iii) switching capacity; or
978          (iv) another associated service that is provided in connection with the use of one or
979     more communications channels as defined in Section 59-12-215.
980          [(95)] (96) (a) Except as provided in Subsection [(95)] (96)(b), "product transferred
981     electronically" means a product transferred electronically that would be subject to a tax under
982     this chapter if that product was transferred in a manner other than electronically.
983          (b) "Product transferred electronically" does not include:
984          (i) an ancillary service;
985          (ii) computer software; or
986          (iii) a telecommunications service.
987          [(96)] (97) (a) "Prosthetic device" means a device that is worn on or in the body to:
988          (i) artificially replace a missing portion of the body;

989          (ii) prevent or correct a physical deformity or physical malfunction; or
990          (iii) support a weak or deformed portion of the body.
991          (b) "Prosthetic device" includes:
992          (i) parts used in the repairs or renovation of a prosthetic device;
993          (ii) replacement parts for a prosthetic device;
994          (iii) a dental prosthesis; or
995          (iv) a hearing aid.
996          (c) "Prosthetic device" does not include:
997          (i) corrective eyeglasses; or
998          (ii) contact lenses.
999          [(97)] (98) (a) "Protective equipment" means an item:
1000          (i) for human wear; and
1001          (ii) that is:
1002          (A) designed as protection:
1003          (I) to the wearer against injury or disease; or
1004          (II) against damage or injury of other persons or property; and
1005          (B) not suitable for general use.
1006          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1007     commission shall make rules:
1008          (i) listing the items that constitute "protective equipment"; and
1009          (ii) that are consistent with the list of items that constitute "protective equipment"
1010     under the agreement.
1011          [(98)] (99) (a) For purposes of Subsection 59-12-104(41), "publication" means any
1012     written or printed matter, other than a photocopy:
1013          (i) regardless of:
1014          (A) characteristics;
1015          (B) copyright;
1016          (C) form;
1017          (D) format;
1018          (E) method of reproduction; or
1019          (F) source; and

1020          (ii) made available in printed or electronic format.
1021          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1022     commission may by rule define the term "photocopy."
1023          [(99)] (100) (a) "Purchase price" and "sales price" mean the total amount of
1024     consideration:
1025          (i) valued in money; and
1026          (ii) for which tangible personal property, a product transferred electronically, or
1027     services are:
1028          (A) sold;
1029          (B) leased; or
1030          (C) rented.
1031          (b) "Purchase price" and "sales price" include:
1032          (i) the seller's cost of the tangible personal property, a product transferred
1033     electronically, or services sold;
1034          (ii) expenses of the seller, including:
1035          (A) the cost of materials used;
1036          (B) a labor cost;
1037          (C) a service cost;
1038          (D) interest;
1039          (E) a loss;
1040          (F) the cost of transportation to the seller; or
1041          (G) a tax imposed on the seller;
1042          (iii) a charge by the seller for any service necessary to complete the sale; or
1043          (iv) consideration a seller receives from a person other than the purchaser if:
1044          (A) (I) the seller actually receives consideration from a person other than the purchaser;
1045     and
1046          (II) the consideration described in Subsection [(99)] (100)(b)(iv)(A)(I) is directly
1047     related to a price reduction or discount on the sale;
1048          (B) the seller has an obligation to pass the price reduction or discount through to the
1049     purchaser;
1050          (C) the amount of the consideration attributable to the sale is fixed and determinable by

1051     the seller at the time of the sale to the purchaser; and
1052          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1053     seller to claim a price reduction or discount; and
1054          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1055     coupon, or other documentation with the understanding that the person other than the seller
1056     will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1057          (II) the purchaser identifies that purchaser to the seller as a member of a group or
1058     organization allowed a price reduction or discount, except that a preferred customer card that is
1059     available to any patron of a seller does not constitute membership in a group or organization
1060     allowed a price reduction or discount; or
1061          (III) the price reduction or discount is identified as a third party price reduction or
1062     discount on the:
1063          (Aa) invoice the purchaser receives; or
1064          (Bb) certificate, coupon, or other documentation the purchaser presents.
1065          (c) "Purchase price" and "sales price" do not include:
1066          (i) a discount:
1067          (A) in a form including:
1068          (I) cash;
1069          (II) term; or
1070          (III) coupon;
1071          (B) that is allowed by a seller;
1072          (C) taken by a purchaser on a sale; and
1073          (D) that is not reimbursed by a third party; or
1074          (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), the following if separately
1075     stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
1076     sale or later, as demonstrated by the books and records the seller keeps at the time of the
1077     transaction in the regular course of business, including books and records the seller keeps at the
1078     time of the transaction in the regular course of business for nontax purposes, by a
1079     preponderance of the facts and circumstances at the time of the transaction, and by the
1080     understanding of all of the parties to the transaction:
1081          (A) the following from credit extended on the sale of tangible personal property or

1082     services:
1083          (I) a carrying charge;
1084          (II) a financing charge; or
1085          (III) an interest charge;
1086          (B) a delivery charge;
1087          (C) an installation charge;
1088          (D) a manufacturer rebate on a motor vehicle; or
1089          (E) a tax or fee legally imposed directly on the consumer.
1090          [(100)] (101) "Purchaser" means a person to whom:
1091          (a) a sale of tangible personal property is made;
1092          (b) a product is transferred electronically; or
1093          (c) a service is furnished.
1094          [(101)] (102) "Qualifying enterprise data center" means an establishment that will:
1095          (a) own and operate a data center facility that will house a group of networked server
1096     computers in one physical location in order to centralize the dissemination, management, and
1097     storage of data and information;
1098          (b) be located in the state;
1099          (c) be a new operation constructed on or after July 1, 2016;
1100          (d) consist of one or more buildings that total 150,000 or more square feet;
1101          (e) be owned or leased by:
1102          (i) the establishment; or
1103          (ii) a person under common ownership, as defined in Section 59-7-101, of the
1104     establishment; and
1105          (f) be located on one or more parcels of land that are owned or leased by:
1106          (i) the establishment; or
1107          (ii) a person under common ownership, as defined in Section 59-7-101, of the
1108     establishment.
1109          [(102)] (103) "Regularly rented" means:
1110          (a) rented to a guest for value three or more times during a calendar year; or
1111          (b) advertised or held out to the public as a place that is regularly rented to guests for
1112     value.

1113          [(103)] (104) "Rental" means the same as that term is defined in Subsection [(59)] (60).
1114          [(104)] (105) (a) Except as provided in Subsection [(104)] (105)(b), "repairs or
1115     renovations of tangible personal property" means:
1116          (i) a repair or renovation of tangible personal property that is not permanently attached
1117     to real property; or
1118          (ii) attaching tangible personal property or a product transferred electronically to other
1119     tangible personal property or detaching tangible personal property or a product transferred
1120     electronically from other tangible personal property if:
1121          (A) the other tangible personal property to which the tangible personal property or
1122     product transferred electronically is attached or from which the tangible personal property or
1123     product transferred electronically is detached is not permanently attached to real property; and
1124          (B) the attachment of tangible personal property or a product transferred electronically
1125     to other tangible personal property or detachment of tangible personal property or a product
1126     transferred electronically from other tangible personal property is made in conjunction with a
1127     repair or replacement of tangible personal property or a product transferred electronically.
1128          (b) "Repairs or renovations of tangible personal property" does not include:
1129          (i) attaching prewritten computer software to other tangible personal property if the
1130     other tangible personal property to which the prewritten computer software is attached is not
1131     permanently attached to real property; or
1132          (ii) detaching prewritten computer software from other tangible personal property if the
1133     other tangible personal property from which the prewritten computer software is detached is
1134     not permanently attached to real property.
1135          [(105)] (106) "Research and development" means the process of inquiry or
1136     experimentation aimed at the discovery of facts, devices, technologies, or applications and the
1137     process of preparing those devices, technologies, or applications for marketing.
1138          [(106)] (107) (a) "Residential telecommunications services" means a
1139     telecommunications service or an ancillary service that is provided to an individual for personal
1140     use:
1141          (i) at a residential address; or
1142          (ii) at an institution, including a nursing home or a school, if the telecommunications
1143     service or ancillary service is provided to and paid for by the individual residing at the

1144     institution rather than the institution.
1145          (b) For purposes of Subsection [(106)] (107)(a)(i), a residential address includes an:
1146          (i) apartment; or
1147          (ii) other individual dwelling unit.
1148          [(107)] (108) "Residential use" means the use in or around a home, apartment building,
1149     sleeping quarters, and similar facilities or accommodations.
1150          [(108)] (109) (a) "Retailer" means any person engaged in a regularly organized
1151     business in tangible personal property or any other taxable transaction under Subsection
1152     59-12-103(1), and who is selling to the user or consumer and not for resale.
1153          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1154     engaged in the business of selling to users or consumers within the state.
1155          [(109)] (110) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
1156     other than:
1157          (a) resale;
1158          (b) sublease; or
1159          (c) subrent.
1160          [(110)] (111) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
1161     otherwise, in any manner, of tangible personal property or any other taxable transaction under
1162     Subsection 59-12-103(1), for consideration.
1163          (b) "Sale" includes:
1164          (i) installment and credit sales;
1165          (ii) any closed transaction constituting a sale;
1166          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1167     chapter;
1168          (iv) any transaction if the possession of property is transferred but the seller retains the
1169     title as security for the payment of the price; and
1170          (v) any transaction under which right to possession, operation, or use of any article of
1171     tangible personal property is granted under a lease or contract and the transfer of possession
1172     would be taxable if an outright sale were made.
1173          [(111)] (112) "Sale at retail" means the same as that term is defined in Subsection
1174     [(109)] (110).

1175          [(112)] (113) "Sale-leaseback transaction" means a transaction by which title to
1176     tangible personal property or a product transferred electronically that is subject to a tax under
1177     this chapter is transferred:
1178          (a) by a purchaser-lessee;
1179          (b) to a lessor;
1180          (c) for consideration; and
1181          (d) if:
1182          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1183     of the tangible personal property or product transferred electronically;
1184          (ii) the sale of the tangible personal property or product transferred electronically to the
1185     lessor is intended as a form of financing:
1186          (A) for the tangible personal property or product transferred electronically; and
1187          (B) to the purchaser-lessee; and
1188          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1189     is required to:
1190          (A) capitalize the tangible personal property or product transferred electronically for
1191     financial reporting purposes; and
1192          (B) account for the lease payments as payments made under a financing arrangement.
1193          [(113)] (114) "Sales price" means the same as that term is defined in Subsection [(99)]
1194     (100).
1195          [(114)] (115) (a) "Sales relating to schools" means the following sales by, amounts
1196     paid to, or amounts charged by a school:
1197          (i) sales that are directly related to the school's educational functions or activities
1198     including:
1199          (A) the sale of:
1200          (I) textbooks;
1201          (II) textbook fees;
1202          (III) laboratory fees;
1203          (IV) laboratory supplies; or
1204          (V) safety equipment;
1205          (B) the sale of a uniform, protective equipment, or sports or recreational equipment

1206     that:
1207          (I) a student is specifically required to wear as a condition of participation in a
1208     school-related event or school-related activity; and
1209          (II) is not readily adaptable to general or continued usage to the extent that it takes the
1210     place of ordinary clothing;
1211          (C) sales of the following if the net or gross revenues generated by the sales are
1212     deposited into a school district fund or school fund dedicated to school meals:
1213          (I) food and food ingredients; or
1214          (II) prepared food; or
1215          (D) transportation charges for official school activities; or
1216          (ii) amounts paid to or amounts charged by a school for admission to a school-related
1217     event or school-related activity.
1218          (b) "Sales relating to schools" does not include:
1219          (i) bookstore sales of items that are not educational materials or supplies;
1220          (ii) except as provided in Subsection [(114)] (115)(a)(i)(B):
1221          (A) clothing;
1222          (B) clothing accessories or equipment;
1223          (C) protective equipment; or
1224          (D) sports or recreational equipment; or
1225          (iii) amounts paid to or amounts charged by a school for admission to a school-related
1226     event or school-related activity if the amounts paid or charged are passed through to a person:
1227          (A) other than a:
1228          (I) school;
1229          (II) nonprofit organization authorized by a school board or a governing body of a
1230     private school to organize and direct a competitive secondary school activity; or
1231          (III) nonprofit association authorized by a school board or a governing body of a
1232     private school to organize and direct a competitive secondary school activity; and
1233          (B) that is required to collect sales and use taxes under this chapter.
1234          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1235     commission may make rules defining the term "passed through."
1236          [(115)] (116) For purposes of this section and Section 59-12-104, "school":

1237          (a) means:
1238          (i) an elementary school or a secondary school that:
1239          (A) is a:
1240          (I) public school; or
1241          (II) private school; and
1242          (B) provides instruction for one or more grades kindergarten through 12; or
1243          (ii) a public school district; and
1244          (b) includes the Electronic High School as defined in Section 53E-10-601.
1245          [(116)] (117) "Seller" means a person that makes a sale, lease, or rental of:
1246          (a) tangible personal property;
1247          (b) a product transferred electronically; or
1248          (c) a service.
1249          [(117)] (118) (a) "Semiconductor fabricating, processing, research, or development
1250     materials" means tangible personal property or a product transferred electronically if the
1251     tangible personal property or product transferred electronically is:
1252          (i) used primarily in the process of:
1253          (A) (I) manufacturing a semiconductor;
1254          (II) fabricating a semiconductor; or
1255          (III) research or development of a:
1256          (Aa) semiconductor; or
1257          (Bb) semiconductor manufacturing process; or
1258          (B) maintaining an environment suitable for a semiconductor; or
1259          (ii) consumed primarily in the process of:
1260          (A) (I) manufacturing a semiconductor;
1261          (II) fabricating a semiconductor; or
1262          (III) research or development of a:
1263          (Aa) semiconductor; or
1264          (Bb) semiconductor manufacturing process; or
1265          (B) maintaining an environment suitable for a semiconductor.
1266          (b) "Semiconductor fabricating, processing, research, or development materials"
1267     includes:

1268          (i) parts used in the repairs or renovations of tangible personal property or a product
1269     transferred electronically described in Subsection [(117)] (118)(a); or
1270          (ii) a chemical, catalyst, or other material used to:
1271          (A) produce or induce in a semiconductor a:
1272          (I) chemical change; or
1273          (II) physical change;
1274          (B) remove impurities from a semiconductor; or
1275          (C) improve the marketable condition of a semiconductor.
1276          [(118)] (119) "Senior citizen center" means a facility having the primary purpose of
1277     providing services to the aged as defined in Section 62A-3-101.
1278          [(119)] (120) (a) Subject to Subsections [(119)] (120)(b) and (c), "short-term lodging
1279     consumable" means tangible personal property that:
1280          (i) a business that provides accommodations and services described in Subsection
1281     59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
1282     to a purchaser;
1283          (ii) is intended to be consumed by the purchaser; and
1284          (iii) is:
1285          (A) included in the purchase price of the accommodations and services; and
1286          (B) not separately stated on an invoice, bill of sale, or other similar document provided
1287     to the purchaser.
1288          (b) "Short-term lodging consumable" includes:
1289          (i) a beverage;
1290          (ii) a brush or comb;
1291          (iii) a cosmetic;
1292          (iv) a hair care product;
1293          (v) lotion;
1294          (vi) a magazine;
1295          (vii) makeup;
1296          (viii) a meal;
1297          (ix) mouthwash;
1298          (x) nail polish remover;

1299          (xi) a newspaper;
1300          (xii) a notepad;
1301          (xiii) a pen;
1302          (xiv) a pencil;
1303          (xv) a razor;
1304          (xvi) saline solution;
1305          (xvii) a sewing kit;
1306          (xviii) shaving cream;
1307          (xix) a shoe shine kit;
1308          (xx) a shower cap;
1309          (xxi) a snack item;
1310          (xxii) soap;
1311          (xxiii) toilet paper;
1312          (xxiv) a toothbrush;
1313          (xxv) toothpaste; or
1314          (xxvi) an item similar to Subsections [(119)] (120)(b)(i) through (xxv) as the
1315     commission may provide by rule made in accordance with Title 63G, Chapter 3, Utah
1316     Administrative Rulemaking Act.
1317          (c) "Short-term lodging consumable" does not include:
1318          (i) tangible personal property that is cleaned or washed to allow the tangible personal
1319     property to be reused; or
1320          (ii) a product transferred electronically.
1321          [(120)] (121) "Simplified electronic return" means the electronic return:
1322          (a) described in Section 318(C) of the agreement; and
1323          (b) approved by the governing board of the agreement.
1324          [(121)] (122) "Solar energy" means the sun used as the sole source of energy for
1325     producing electricity.
1326          [(122)] (123) (a) "Sports or recreational equipment" means an item:
1327          (i) designed for human use; and
1328          (ii) that is:
1329          (A) worn in conjunction with:

1330          (I) an athletic activity; or
1331          (II) a recreational activity; and
1332          (B) not suitable for general use.
1333          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1334     commission shall make rules:
1335          (i) listing the items that constitute "sports or recreational equipment"; and
1336          (ii) that are consistent with the list of items that constitute "sports or recreational
1337     equipment" under the agreement.
1338          [(123)] (124) "State" means the state of Utah, its departments, and agencies.
1339          [(124)] (125) "Storage" means any keeping or retention of tangible personal property or
1340     any other taxable transaction under Subsection 59-12-103(1), in this state for any purpose
1341     except sale in the regular course of business.
1342          [(125)] (126) (a) Except as provided in Subsection [(125)] (126)(d) or (e), "tangible
1343     personal property" means personal property that:
1344          (i) may be:
1345          (A) seen;
1346          (B) weighed;
1347          (C) measured;
1348          (D) felt; or
1349          (E) touched; or
1350          (ii) is in any manner perceptible to the senses.
1351          (b) "Tangible personal property" includes:
1352          (i) electricity;
1353          (ii) water;
1354          (iii) gas;
1355          (iv) steam; or
1356          (v) prewritten computer software, regardless of the manner in which the prewritten
1357     computer software is transferred.
1358          (c) "Tangible personal property" includes the following regardless of whether the item
1359     is attached to real property:
1360          (i) a dishwasher;

1361          (ii) a dryer;
1362          (iii) a freezer;
1363          (iv) a microwave;
1364          (v) a refrigerator;
1365          (vi) a stove;
1366          (vii) a washer; or
1367          (viii) an item similar to Subsections [(125)] (126)(c)(i) through (vii) as determined by
1368     the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1369     Rulemaking Act.
1370          (d) "Tangible personal property" does not include a product that is transferred
1371     electronically.
1372          (e) "Tangible personal property" does not include the following if attached to real
1373     property, regardless of whether the attachment to real property is only through a line that
1374     supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1375     commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1376     Rulemaking Act:
1377          (i) a hot water heater;
1378          (ii) a water filtration system; or
1379          (iii) a water softener system.
1380          [(126)] (127) (a) "Telecommunications enabling or facilitating equipment, machinery,
1381     or software" means an item listed in Subsection [(126)] (127)(b) if that item is purchased or
1382     leased primarily to enable or facilitate one or more of the following to function:
1383          (i) telecommunications switching or routing equipment, machinery, or software; or
1384          (ii) telecommunications transmission equipment, machinery, or software.
1385          (b) The following apply to Subsection [(126)] (127)(a):
1386          (i) a pole;
1387          (ii) software;
1388          (iii) a supplementary power supply;
1389          (iv) temperature or environmental equipment or machinery;
1390          (v) test equipment;
1391          (vi) a tower; or

1392          (vii) equipment, machinery, or software that functions similarly to an item listed in
1393     Subsections [(126)] (127)(b)(i) through (vi) as determined by the commission by rule made in
1394     accordance with Subsection [(126)] (127)(c).
1395          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1396     commission may by rule define what constitutes equipment, machinery, or software that
1397     functions similarly to an item listed in Subsections [(126)] (127)(b)(i) through (vi).
1398          [(127)] (128) "Telecommunications equipment, machinery, or software required for
1399     911 service" means equipment, machinery, or software that is required to comply with 47
1400     C.F.R. Sec. 20.18.
1401          [(128)] (129) "Telecommunications maintenance or repair equipment, machinery, or
1402     software" means equipment, machinery, or software purchased or leased primarily to maintain
1403     or repair one or more of the following, regardless of whether the equipment, machinery, or
1404     software is purchased or leased as a spare part or as an upgrade or modification to one or more
1405     of the following:
1406          (a) telecommunications enabling or facilitating equipment, machinery, or software;
1407          (b) telecommunications switching or routing equipment, machinery, or software; or
1408          (c) telecommunications transmission equipment, machinery, or software.
1409          [(129)] (130) (a) "Telecommunications service" means the electronic conveyance,
1410     routing, or transmission of audio, data, video, voice, or any other information or signal to a
1411     point, or among or between points.
1412          (b) "Telecommunications service" includes:
1413          (i) an electronic conveyance, routing, or transmission with respect to which a computer
1414     processing application is used to act:
1415          (A) on the code, form, or protocol of the content;
1416          (B) for the purpose of electronic conveyance, routing, or transmission; and
1417          (C) regardless of whether the service:
1418          (I) is referred to as voice over Internet protocol service; or
1419          (II) is classified by the Federal Communications Commission as enhanced or value
1420     added;
1421          (ii) an 800 service;
1422          (iii) a 900 service;

1423          (iv) a fixed wireless service;
1424          (v) a mobile wireless service;
1425          (vi) a postpaid calling service;
1426          (vii) a prepaid calling service;
1427          (viii) a prepaid wireless calling service; or
1428          (ix) a private communications service.
1429          (c) "Telecommunications service" does not include:
1430          (i) advertising, including directory advertising;
1431          (ii) an ancillary service;
1432          (iii) a billing and collection service provided to a third party;
1433          (iv) a data processing and information service if:
1434          (A) the data processing and information service allows data to be:
1435          (I) (Aa) acquired;
1436          (Bb) generated;
1437          (Cc) processed;
1438          (Dd) retrieved; or
1439          (Ee) stored; and
1440          (II) delivered by an electronic transmission to a purchaser; and
1441          (B) the purchaser's primary purpose for the underlying transaction is the processed data
1442     or information;
1443          (v) installation or maintenance of the following on a customer's premises:
1444          (A) equipment; or
1445          (B) wiring;
1446          (vi) Internet access service;
1447          (vii) a paging service;
1448          (viii) a product transferred electronically, including:
1449          (A) music;
1450          (B) reading material;
1451          (C) a ring tone;
1452          (D) software; or
1453          (E) video;

1454          (ix) a radio and television audio and video programming service:
1455          (A) regardless of the medium; and
1456          (B) including:
1457          (I) furnishing conveyance, routing, or transmission of a television audio and video
1458     programming service by a programming service provider;
1459          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1460          (III) audio and video programming services delivered by a commercial mobile radio
1461     service provider as defined in 47 C.F.R. Sec. 20.3;
1462          (x) a value-added nonvoice data service; or
1463          (xi) tangible personal property.
1464          [(130)] (131) (a) "Telecommunications service provider" means a person that:
1465          (i) owns, controls, operates, or manages a telecommunications service; and
1466          (ii) engages in an activity described in Subsection [(130)] (131)(a)(i) for the shared use
1467     with or resale to any person of the telecommunications service.
1468          (b) A person described in Subsection [(130)] (131)(a) is a telecommunications service
1469     provider whether or not the Public Service Commission of Utah regulates:
1470          (i) that person; or
1471          (ii) the telecommunications service that the person owns, controls, operates, or
1472     manages.
1473          [(131)] (132) (a) "Telecommunications switching or routing equipment, machinery, or
1474     software" means an item listed in Subsection [(131)] (132)(b) if that item is purchased or
1475     leased primarily for switching or routing:
1476          (i) an ancillary service;
1477          (ii) data communications;
1478          (iii) voice communications; or
1479          (iv) telecommunications service.
1480          (b) The following apply to Subsection [(131)] (132)(a):
1481          (i) a bridge;
1482          (ii) a computer;
1483          (iii) a cross connect;
1484          (iv) a modem;

1485          (v) a multiplexer;
1486          (vi) plug in circuitry;
1487          (vii) a router;
1488          (viii) software;
1489          (ix) a switch; or
1490          (x) equipment, machinery, or software that functions similarly to an item listed in
1491     Subsections [(131)] (132)(b)(i) through (ix) as determined by the commission by rule made in
1492     accordance with Subsection [(131)] (132)(c).
1493          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1494     commission may by rule define what constitutes equipment, machinery, or software that
1495     functions similarly to an item listed in Subsections [(131)] (132)(b)(i) through (ix).
1496          [(132)] (133) (a) "Telecommunications transmission equipment, machinery, or
1497     software" means an item listed in Subsection [(132)] (133)(b) if that item is purchased or
1498     leased primarily for sending, receiving, or transporting:
1499          (i) an ancillary service;
1500          (ii) data communications;
1501          (iii) voice communications; or
1502          (iv) telecommunications service.
1503          (b) The following apply to Subsection [(132)] (133)(a):
1504          (i) an amplifier;
1505          (ii) a cable;
1506          (iii) a closure;
1507          (iv) a conduit;
1508          (v) a controller;
1509          (vi) a duplexer;
1510          (vii) a filter;
1511          (viii) an input device;
1512          (ix) an input/output device;
1513          (x) an insulator;
1514          (xi) microwave machinery or equipment;
1515          (xii) an oscillator;

1516          (xiii) an output device;
1517          (xiv) a pedestal;
1518          (xv) a power converter;
1519          (xvi) a power supply;
1520          (xvii) a radio channel;
1521          (xviii) a radio receiver;
1522          (xix) a radio transmitter;
1523          (xx) a repeater;
1524          (xxi) software;
1525          (xxii) a terminal;
1526          (xxiii) a timing unit;
1527          (xxiv) a transformer;
1528          (xxv) a wire; or
1529          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1530     Subsections [(132)] (133)(b)(i) through (xxv) as determined by the commission by rule made in
1531     accordance with Subsection [(132)] (133)(c).
1532          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1533     commission may by rule define what constitutes equipment, machinery, or software that
1534     functions similarly to an item listed in Subsections [(132)] (133)(b)(i) through (xxv).
1535          [(133)] (134) (a) "Textbook for a higher education course" means a textbook or other
1536     printed material that is required for a course:
1537          (i) offered by an institution of higher education; and
1538          (ii) that the purchaser of the textbook or other printed material attends or will attend.
1539          (b) "Textbook for a higher education course" includes a textbook in electronic format.
1540          [(134)] (135) "Tobacco" means:
1541          (a) a cigarette;
1542          (b) a cigar;
1543          (c) chewing tobacco;
1544          (d) pipe tobacco; or
1545          (e) any other item that contains tobacco.
1546          [(135)] (136) "Unassisted amusement device" means an amusement device, skill

1547     device, or ride device that is started and stopped by the purchaser or renter of the right to use or
1548     operate the amusement device, skill device, or ride device.
1549          [(136)] (137) (a) "Use" means the exercise of any right or power over tangible personal
1550     property, a product transferred electronically, or a service under Subsection 59-12-103(1),
1551     incident to the ownership or the leasing of that tangible personal property, product transferred
1552     electronically, or service.
1553          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1554     property, a product transferred electronically, or a service in the regular course of business and
1555     held for resale.
1556          [(137)] (138) "Value-added nonvoice data service" means a service:
1557          (a) that otherwise meets the definition of a telecommunications service except that a
1558     computer processing application is used to act primarily for a purpose other than conveyance,
1559     routing, or transmission; and
1560          (b) with respect to which a computer processing application is used to act on data or
1561     information:
1562          (i) code;
1563          (ii) content;
1564          (iii) form; or
1565          (iv) protocol.
1566          [(138)] (139) (a) Subject to Subsection [(138)] (139)(b), "vehicle" means the following
1567     that are required to be titled, registered, or titled and registered:
1568          (i) an aircraft as defined in Section 72-10-102;
1569          (ii) a vehicle as defined in Section 41-1a-102;
1570          (iii) an off-highway vehicle as defined in Section 41-22-2; or
1571          (iv) a vessel as defined in Section 41-1a-102.
1572          (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
1573          (i) a vehicle described in Subsection [(138)] (139)(a); or
1574          (ii) (A) a locomotive;
1575          (B) a freight car;
1576          (C) railroad work equipment; or
1577          (D) other railroad rolling stock.

1578          [(139)] (140) "Vehicle dealer" means a person engaged in the business of buying,
1579     selling, or exchanging a vehicle as defined in Subsection [(138)] (139).
1580          [(140)] (141) (a) "Vertical service" means an ancillary service that:
1581          (i) is offered in connection with one or more telecommunications services; and
1582          (ii) offers an advanced calling feature that allows a customer to:
1583          (A) identify a caller; and
1584          (B) manage multiple calls and call connections.
1585          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1586     conference bridging service.
1587          [(141)] (142) (a) "Voice mail service" means an ancillary service that enables a
1588     customer to receive, send, or store a recorded message.
1589          (b) "Voice mail service" does not include a vertical service that a customer is required
1590     to have in order to utilize a voice mail service.
1591          [(142)] (143) (a) Except as provided in Subsection [(142)] (143)(b), "waste energy
1592     facility" means a facility that generates electricity:
1593          (i) using as the primary source of energy waste materials that would be placed in a
1594     landfill or refuse pit if it were not used to generate electricity, including:
1595          (A) tires;
1596          (B) waste coal;
1597          (C) oil shale; or
1598          (D) municipal solid waste; and
1599          (ii) in amounts greater than actually required for the operation of the facility.
1600          (b) "Waste energy facility" does not include a facility that incinerates:
1601          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
1602          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1603          [(143)] (144) "Watercraft" means a vessel as defined in Section 73-18-2.
1604          [(144)] (145) "Wind energy" means wind used as the sole source of energy to produce
1605     electricity.
1606          [(145)] (146) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
1607     geographic location by the United States Postal Service.
1608          Section 2. Section 59-12-104 is amended to read:

1609          59-12-104. Exemptions.
1610          Exemptions from the taxes imposed by this chapter are as follows:
1611          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
1612     under Chapter 13, Motor and Special Fuel Tax Act;
1613          (2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
1614     subdivisions; however, this exemption does not apply to sales of:
1615          (a) construction materials except:
1616          (i) construction materials purchased by or on behalf of institutions of the public
1617     education system as defined in Utah Constitution, Article X, Section 2, provided the
1618     construction materials are clearly identified and segregated and installed or converted to real
1619     property which is owned by institutions of the public education system; and
1620          (ii) construction materials purchased by the state, its institutions, or its political
1621     subdivisions which are installed or converted to real property by employees of the state, its
1622     institutions, or its political subdivisions; or
1623          (b) tangible personal property in connection with the construction, operation,
1624     maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or facilities
1625     providing additional project capacity, as defined in Section 11-13-103;
1626          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
1627          (i) the proceeds of each sale do not exceed $1; and
1628          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
1629     the cost of the item described in Subsection (3)(b) as goods consumed; and
1630          (b) Subsection (3)(a) applies to:
1631          (i) food and food ingredients; or
1632          (ii) prepared food;
1633          (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
1634          (i) alcoholic beverages;
1635          (ii) food and food ingredients; or
1636          (iii) prepared food;
1637          (b) sales of tangible personal property or a product transferred electronically:
1638          (i) to a passenger;
1639          (ii) by a commercial airline carrier; and

1640          (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
1641          (c) services related to Subsection (4)(a) or (b);
1642          [(5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
1643     and equipment:]
1644          [(A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
1645     North American Industry Classification System of the federal Executive Office of the
1646     President, Office of Management and Budget; and]
1647          [(II) for:]
1648          [(Aa) installation in an aircraft, including services relating to the installation of parts or
1649     equipment in the aircraft;]
1650          [(Bb) renovation of an aircraft; or]
1651          [(Cc) repair of an aircraft; or]
1652          [(B) for installation in an aircraft operated by a common carrier in interstate or foreign
1653     commerce; or]
1654          [(ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
1655     aircraft operated by a common carrier in interstate or foreign commerce; and]
1656          [(b) notwithstanding the time period of Subsection 59-1-1410(8) for filing for a refund,
1657     a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
1658     refund:]
1659          [(i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;]
1660          [(ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;]
1661          [(iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
1662     the sale prior to filing for the refund;]
1663          [(iv) for sales and use taxes paid under this chapter on the sale;]
1664          [(v) in accordance with Section 59-1-1410; and]
1665          [(vi) subject to any extension allowed for filing for a refund under Section 59-1-1410,
1666     if the person files for the refund on or before September 30, 2011;]
1667          (5) sales of parts and equipment for installation in an aircraft operated by a common
1668     carrier in interstate or foreign commerce;
1669          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
1670     records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture

1671     exhibitor, distributor, or commercial television or radio broadcaster;
1672          (7) (a) except as provided in Subsection [(88)] (85) and subject to Subsection (7)(b),
1673     sales of cleaning or washing of tangible personal property if the cleaning or washing of the
1674     tangible personal property is not assisted cleaning or washing of tangible personal property;
1675          (b) if a seller that sells at the same business location assisted cleaning or washing of
1676     tangible personal property and cleaning or washing of tangible personal property that is not
1677     assisted cleaning or washing of tangible personal property, the exemption described in
1678     Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
1679     or washing of the tangible personal property; and
1680          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
1681     Utah Administrative Rulemaking Act, the commission may make rules:
1682          (i) governing the circumstances under which sales are at the same business location;
1683     and
1684          (ii) establishing the procedures and requirements for a seller to separately account for
1685     sales of assisted cleaning or washing of tangible personal property;
1686          (8) sales made to or by religious or charitable institutions in the conduct of their regular
1687     religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
1688     fulfilled;
1689          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
1690     this state if the vehicle is:
1691          (a) not registered in this state; and
1692          (b) (i) not used in this state; or
1693          (ii) used in this state:
1694          (A) if the vehicle is not used to conduct business, for a time period that does not
1695     exceed the longer of:
1696          (I) 30 days in any calendar year; or
1697          (II) the time period necessary to transport the vehicle to the borders of this state; or
1698          (B) if the vehicle is used to conduct business, for the time period necessary to transport
1699     the vehicle to the borders of this state;
1700          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
1701          (i) the item is intended for human use; and

1702          (ii) (A) a prescription was issued for the item; or
1703          (B) the item was purchased by a hospital or other medical facility; and
1704          (b) (i) Subsection (10)(a) applies to:
1705          (A) a drug;
1706          (B) a syringe; or
1707          (C) a stoma supply; and
1708          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1709     commission may by rule define the terms:
1710          (A) "syringe"; or
1711          (B) "stoma supply";
1712          (11) purchases or leases exempt under Section 19-12-201;
1713          (12) (a) sales of an item described in Subsection (12)(c) served by:
1714          (i) the following if the item described in Subsection (12)(c) is not available to the
1715     general public:
1716          (A) a church; or
1717          (B) a charitable institution; or
1718          (ii) an institution of higher education if:
1719          (A) the item described in Subsection (12)(c) is not available to the general public; or
1720          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
1721     offered by the institution of higher education; or
1722          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
1723          (i) a medical facility; or
1724          (ii) a nursing facility; and
1725          (c) Subsections (12)(a) and (b) apply to:
1726          (i) food and food ingredients;
1727          (ii) prepared food; or
1728          (iii) alcoholic beverages;
1729          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
1730     or a product transferred electronically by a person:
1731          (i) regardless of the number of transactions involving the sale of that tangible personal
1732     property or product transferred electronically by that person; and

1733          (ii) not regularly engaged in the business of selling that type of tangible personal
1734     property or product transferred electronically;
1735          (b) this Subsection (13) does not apply if:
1736          (i) the sale is one of a series of sales of a character to indicate that the person is
1737     regularly engaged in the business of selling that type of tangible personal property or product
1738     transferred electronically;
1739          (ii) the person holds that person out as regularly engaged in the business of selling that
1740     type of tangible personal property or product transferred electronically;
1741          (iii) the person sells an item of tangible personal property or product transferred
1742     electronically that the person purchased as a sale that is exempt under Subsection (25); or
1743           (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
1744     this state in which case the tax is based upon:
1745          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
1746     sold; or
1747          (B) in the absence of a bill of sale or other written evidence of value, the fair market
1748     value of the vehicle or vessel being sold at the time of the sale as determined by the
1749     commission; and
1750          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1751     commission shall make rules establishing the circumstances under which:
1752          (i) a person is regularly engaged in the business of selling a type of tangible personal
1753     property or product transferred electronically;
1754          (ii) a sale of tangible personal property or a product transferred electronically is one of
1755     a series of sales of a character to indicate that a person is regularly engaged in the business of
1756     selling that type of tangible personal property or product transferred electronically; or
1757          (iii) a person holds that person out as regularly engaged in the business of selling a type
1758     of tangible personal property or product transferred electronically;
1759          (14) amounts paid or charged for a purchase or lease of machinery, equipment, normal
1760     operating repair or replacement parts, or materials, except for office equipment or office
1761     supplies, by:
1762          (a) a manufacturing facility that:
1763          (i) is located in the state; and

1764          (ii) uses or consumes the machinery, equipment, normal operating repair or
1765     replacement parts, or materials:
1766          (A) in the manufacturing process to manufacture an item sold as tangible personal
1767     property, as the commission may define that phrase in accordance with Title 63G, Chapter 3,
1768     Utah Administrative Rulemaking Act; or
1769          (B) for a scrap recycler, to process an item sold as tangible personal property, as the
1770     commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
1771     Administrative Rulemaking Act;
1772          (b) an establishment, as the commission defines that term in accordance with Title
1773     63G, Chapter 3, Utah Administrative Rulemaking Act, that:
1774          (i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
1775     Code 213113, Support Activities for Coal Mining, 213114, Support Activities for Metal
1776     Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining, of the
1777     2002 North American Industry Classification System of the federal Executive Office of the
1778     President, Office of Management and Budget;
1779          (ii) is located in the state; and
1780          (iii) uses or consumes the machinery, equipment, normal operating repair or
1781     replacement parts, or materials in:
1782          (A) the production process to produce an item sold as tangible personal property, as the
1783     commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
1784     Administrative Rulemaking Act;
1785          (B) research and development, as the commission may define that phrase in accordance
1786     with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1787          (C) transporting, storing, or managing tailings, overburden, or similar waste materials
1788     produced from mining;
1789          (D) developing or maintaining a road, tunnel, excavation, or similar feature used in
1790     mining; or
1791          (E) preventing, controlling, or reducing dust or other pollutants from mining; or
1792          (c) an establishment, as the commission defines that term in accordance with Title 63G,
1793     Chapter 3, Utah Administrative Rulemaking Act, that:
1794          (i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North

1795     American Industry Classification System of the federal Executive Office of the President,
1796     Office of Management and Budget;
1797          (ii) is located in the state; and
1798          (iii) uses or consumes the machinery, equipment, normal operating repair or
1799     replacement parts, or materials in the operation of the web search portal;
1800          (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
1801          (i) tooling;
1802          (ii) special tooling;
1803          (iii) support equipment;
1804          (iv) special test equipment; or
1805          (v) parts used in the repairs or renovations of tooling or equipment described in
1806     Subsections (15)(a)(i) through (iv); and
1807          (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
1808          (i) the tooling, equipment, or parts are used or consumed exclusively in the
1809     performance of any aerospace or electronics industry contract with the United States
1810     government or any subcontract under that contract; and
1811          (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
1812     title to the tooling, equipment, or parts is vested in the United States government as evidenced
1813     by:
1814          (A) a government identification tag placed on the tooling, equipment, or parts; or
1815          (B) listing on a government-approved property record if placing a government
1816     identification tag on the tooling, equipment, or parts is impractical;
1817          (16) sales of newspapers or newspaper subscriptions;
1818          (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
1819     product transferred electronically traded in as full or part payment of the purchase price, except
1820     that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
1821     trade-ins are limited to other vehicles only, and the tax is based upon:
1822          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
1823     vehicle being traded in; or
1824          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
1825     fair market value of the vehicle being sold and the vehicle being traded in, as determined by the

1826     commission; and
1827          (b) Subsection (17)(a) does not apply to the following items of tangible personal
1828     property or products transferred electronically traded in as full or part payment of the purchase
1829     price:
1830          (i) money;
1831          (ii) electricity;
1832          (iii) water;
1833          (iv) gas; or
1834          (v) steam;
1835          (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
1836     or a product transferred electronically used or consumed primarily and directly in farming
1837     operations, regardless of whether the tangible personal property or product transferred
1838     electronically:
1839          (A) becomes part of real estate; or
1840          (B) is installed by a:
1841          (I) farmer;
1842          (II) contractor; or
1843          (III) subcontractor; or
1844          (ii) sales of parts used in the repairs or renovations of tangible personal property or a
1845     product transferred electronically if the tangible personal property or product transferred
1846     electronically is exempt under Subsection (18)(a)(i); and
1847          (b) amounts paid or charged for the following are subject to the taxes imposed by this
1848     chapter:
1849          (i) (A) subject to Subsection (18)(b)(i)(B), machinery, equipment, materials, or
1850     supplies if used in a manner that is incidental to farming; and
1851          (B) tangible personal property that is considered to be used in a manner that is
1852     incidental to farming includes:
1853          (I) hand tools; or
1854          (II) maintenance and janitorial equipment and supplies;
1855          (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
1856     transferred electronically if the tangible personal property or product transferred electronically

1857     is used in an activity other than farming; and
1858          (B) tangible personal property or a product transferred electronically that is considered
1859     to be used in an activity other than farming includes:
1860          (I) office equipment and supplies; or
1861          (II) equipment and supplies used in:
1862          (Aa) the sale or distribution of farm products;
1863          (Bb) research; or
1864          (Cc) transportation; or
1865          (iii) a vehicle required to be registered by the laws of this state during the period
1866     ending two years after the date of the vehicle's purchase;
1867          (19) sales of hay;
1868          (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
1869     garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
1870     garden, farm, or other agricultural produce is sold by:
1871          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
1872     agricultural produce;
1873          (b) an employee of the producer described in Subsection (20)(a); or
1874          (c) a member of the immediate family of the producer described in Subsection (20)(a);
1875          (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
1876     under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
1877          (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
1878     nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
1879     wholesaler, or retailer for use in packaging tangible personal property to be sold by that
1880     manufacturer, processor, wholesaler, or retailer;
1881          (23) a product stored in the state for resale;
1882          (24) (a) purchases of a product if:
1883          (i) the product is:
1884          (A) purchased outside of this state;
1885          (B) brought into this state:
1886          (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
1887          (II) by a nonresident person who is not living or working in this state at the time of the

1888     purchase;
1889          (C) used for the personal use or enjoyment of the nonresident person described in
1890     Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
1891          (D) not used in conducting business in this state; and
1892          (ii) for:
1893          (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
1894     the product for a purpose for which the product is designed occurs outside of this state;
1895          (B) a boat, the boat is registered outside of this state; or
1896          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
1897     outside of this state;
1898          (b) the exemption provided for in Subsection (24)(a) does not apply to:
1899          (i) a lease or rental of a product; or
1900          (ii) a sale of a vehicle exempt under Subsection (33); and
1901          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
1902     purposes of Subsection (24)(a), the commission may by rule define what constitutes the
1903     following:
1904          (i) conducting business in this state if that phrase has the same meaning in this
1905     Subsection (24) as in Subsection (63);
1906          (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
1907     as in Subsection (63); or
1908          (iii) a purpose for which a product is designed if that phrase has the same meaning in
1909     this Subsection (24) as in Subsection (63);
1910          (25) a product purchased for resale in the regular course of business, either in its
1911     original form or as an ingredient or component part of a manufactured or compounded product;
1912          (26) a product upon which a sales or use tax was paid to some other state, or one of its
1913     subdivisions, except that the state shall be paid any difference between the tax paid and the tax
1914     imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
1915     the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
1916     Act;
1917          (27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a
1918     person for use in compounding a service taxable under the subsections;

1919          (28) purchases made in accordance with the special supplemental nutrition program for
1920     women, infants, and children established in 42 U.S.C. Sec. 1786;
1921          (29) sales or leases of rolls, rollers, refractory brick, electric motors, or other
1922     replacement parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code
1923     3312 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of
1924     the President, Office of Management and Budget;
1925          (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
1926     Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
1927          (a) not registered in this state; and
1928          (b) (i) not used in this state; or
1929          (ii) used in this state:
1930          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
1931     time period that does not exceed the longer of:
1932          (I) 30 days in any calendar year; or
1933          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
1934     the borders of this state; or
1935          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
1936     period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
1937     state;
1938          (31) sales of aircraft manufactured in Utah;
1939          (32) amounts paid for the purchase of telecommunications service for purposes of
1940     providing telecommunications service;
1941          (33) sales, leases, or uses of the following:
1942          (a) a vehicle by an authorized carrier; or
1943          (b) tangible personal property that is installed on a vehicle:
1944          (i) sold or leased to or used by an authorized carrier; and
1945          (ii) before the vehicle is placed in service for the first time;
1946          (34) (a) 45% of the sales price of any new manufactured home; and
1947          (b) 100% of the sales price of any used manufactured home;
1948          (35) sales relating to schools and fundraising sales;
1949          (36) sales or rentals of durable medical equipment if:

1950          (a) a person presents a prescription for the durable medical equipment; and
1951          (b) the durable medical equipment is used for home use only;
1952          (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
1953     Section 72-11-102; and
1954          (b) the commission shall by rule determine the method for calculating sales exempt
1955     under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
1956          (38) sales to a ski resort of:
1957          (a) snowmaking equipment;
1958          (b) ski slope grooming equipment;
1959          (c) passenger ropeways as defined in Section 72-11-102; or
1960          (d) parts used in the repairs or renovations of equipment or passenger ropeways
1961     described in Subsections (38)(a) through (c);
1962          (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
1963          (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
1964     amusement, entertainment, or recreation an unassisted amusement device as defined in Section
1965     59-12-102;
1966          (b) if a seller that sells or rents at the same business location the right to use or operate
1967     for amusement, entertainment, or recreation one or more unassisted amusement devices and
1968     one or more assisted amusement devices, the exemption described in Subsection (40)(a)
1969     applies if the seller separately accounts for the sales or rentals of the right to use or operate for
1970     amusement, entertainment, or recreation for the assisted amusement devices; and
1971          (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
1972     Utah Administrative Rulemaking Act, the commission may make rules:
1973          (i) governing the circumstances under which sales are at the same business location;
1974     and
1975          (ii) establishing the procedures and requirements for a seller to separately account for
1976     the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
1977     assisted amusement devices;
1978          (41) (a) sales of photocopies by:
1979          (i) a governmental entity; or
1980          (ii) an entity within the state system of public education, including:

1981          (A) a school; or
1982          (B) the State Board of Education; or
1983          (b) sales of publications by a governmental entity;
1984          (42) amounts paid for admission to an athletic event at an institution of higher
1985     education that is subject to the provisions of Title IX of the Education Amendments of 1972,
1986     20 U.S.C. Sec. 1681 et seq.;
1987          (43) (a) sales made to or by:
1988          (i) an area agency on aging; or
1989          (ii) a senior citizen center owned by a county, city, or town; or
1990          (b) sales made by a senior citizen center that contracts with an area agency on aging;
1991          (44) sales or leases of semiconductor fabricating, processing, research, or development
1992     materials regardless of whether the semiconductor fabricating, processing, research, or
1993     development materials:
1994          (a) actually come into contact with a semiconductor; or
1995          (b) ultimately become incorporated into real property;
1996          (45) an amount paid by or charged to a purchaser for accommodations and services
1997     described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under Section
1998     59-12-104.2;
1999          (46) [beginning on September 1, 2001,] the lease or use of a vehicle issued a temporary
2000     sports event registration certificate in accordance with Section 41-3-306 for the event period
2001     specified on the temporary sports event registration certificate;
2002          (47) (a) sales or uses of electricity, if the sales or uses are made under a retail tariff
2003     adopted by the Public Service Commission only for purchase of electricity produced from a
2004     new alternative energy source built after January 1, 2016, as designated in the tariff by the
2005     Public Service Commission; and
2006          (b) for a residential use customer only, the exemption under Subsection (47)(a) applies
2007     only to the portion of the tariff rate a customer pays under the tariff described in Subsection
2008     (47)(a) that exceeds the tariff rate under the tariff described in Subsection (47)(a) that the
2009     customer would have paid absent the tariff;
2010          (48) sales or rentals of mobility enhancing equipment if a person presents a
2011     prescription for the mobility enhancing equipment;

2012          (49) sales of water in a:
2013          (a) pipe;
2014          (b) conduit;
2015          (c) ditch; or
2016          (d) reservoir;
2017          (50) sales of currency or coins that constitute legal tender of a state, the United States,
2018     or a foreign nation;
2019          (51) (a) sales of an item described in Subsection (51)(b) if the item:
2020          (i) does not constitute legal tender of a state, the United States, or a foreign nation; and
2021          (ii) has a gold, silver, or platinum content of 50% or more; and
2022          (b) Subsection (51)(a) applies to a gold, silver, or platinum:
2023          (i) ingot;
2024          (ii) bar;
2025          (iii) medallion; or
2026          (iv) decorative coin;
2027          (52) amounts paid on a sale-leaseback transaction;
2028          (53) sales of a prosthetic device:
2029          (a) for use on or in a human; and
2030          (b) (i) for which a prescription is required; or
2031          (ii) if the prosthetic device is purchased by a hospital or other medical facility;
2032          (54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
2033     machinery or equipment by an establishment described in Subsection (54)(c) if the machinery
2034     or equipment is primarily used in the production or postproduction of the following media for
2035     commercial distribution:
2036          (i) a motion picture;
2037          (ii) a television program;
2038          (iii) a movie made for television;
2039          (iv) a music video;
2040          (v) a commercial;
2041          (vi) a documentary; or
2042          (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the

2043     commission by administrative rule made in accordance with Subsection (54)(d); or
2044          (b) purchases, leases, or rentals of machinery or equipment by an establishment
2045     described in Subsection (54)(c) that is used for the production or postproduction of the
2046     following are subject to the taxes imposed by this chapter:
2047          (i) a live musical performance;
2048          (ii) a live news program; or
2049          (iii) a live sporting event;
2050          (c) the following establishments listed in the 1997 North American Industry
2051     Classification System of the federal Executive Office of the President, Office of Management
2052     and Budget, apply to Subsections (54)(a) and (b):
2053          (i) NAICS Code 512110; or
2054          (ii) NAICS Code 51219; and
2055          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2056     commission may by rule:
2057          (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
2058     or
2059          (ii) define:
2060          (A) "commercial distribution";
2061          (B) "live musical performance";
2062          (C) "live news program"; or
2063          (D) "live sporting event";
2064          (55) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
2065     on or before June 30, 2027, of tangible personal property that:
2066          (i) is leased or purchased for or by a facility that:
2067          (A) is an alternative energy electricity production facility;
2068          (B) is located in the state; and
2069          (C) (I) becomes operational on or after July 1, 2004; or
2070          (II) has its generation capacity increased by one or more megawatts on or after July 1,
2071     2004, as a result of the use of the tangible personal property;
2072          (ii) has an economic life of five or more years; and
2073          (iii) is used to make the facility or the increase in capacity of the facility described in

2074     Subsection (55)(a)(i) operational up to the point of interconnection with an existing
2075     transmission grid including:
2076          (A) a wind turbine;
2077          (B) generating equipment;
2078          (C) a control and monitoring system;
2079          (D) a power line;
2080          (E) substation equipment;
2081          (F) lighting;
2082          (G) fencing;
2083          (H) pipes; or
2084          (I) other equipment used for locating a power line or pole; and
2085          (b) this Subsection (55) does not apply to:
2086          (i) tangible personal property used in construction of:
2087          (A) a new alternative energy electricity production facility; or
2088          (B) the increase in the capacity of an alternative energy electricity production facility;
2089          (ii) contracted services required for construction and routine maintenance activities;
2090     and
2091          (iii) unless the tangible personal property is used or acquired for an increase in capacity
2092     of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal property used or
2093     acquired after:
2094          (A) the alternative energy electricity production facility described in Subsection
2095     (55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
2096          (B) the increased capacity described in Subsection (55)(a)(i) is operational as described
2097     in Subsection (55)(a)(iii);
2098          (56) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
2099     on or before June 30, 2027, of tangible personal property that:
2100          (i) is leased or purchased for or by a facility that:
2101          (A) is a waste energy production facility;
2102          (B) is located in the state; and
2103          (C) (I) becomes operational on or after July 1, 2004; or
2104          (II) has its generation capacity increased by one or more megawatts on or after July 1,

2105     2004, as a result of the use of the tangible personal property;
2106          (ii) has an economic life of five or more years; and
2107          (iii) is used to make the facility or the increase in capacity of the facility described in
2108     Subsection (56)(a)(i) operational up to the point of interconnection with an existing
2109     transmission grid including:
2110          (A) generating equipment;
2111          (B) a control and monitoring system;
2112          (C) a power line;
2113          (D) substation equipment;
2114          (E) lighting;
2115          (F) fencing;
2116          (G) pipes; or
2117          (H) other equipment used for locating a power line or pole; and
2118          (b) this Subsection (56) does not apply to:
2119          (i) tangible personal property used in construction of:
2120          (A) a new waste energy facility; or
2121          (B) the increase in the capacity of a waste energy facility;
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 (56)(a)(i)(C)(II), tangible personal property used or acquired after:
2126          (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
2127     described in Subsection (56)(a)(iii); or
2128          (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
2129     in Subsection (56)(a)(iii);
2130          (57) (a) leases of five or more years or purchases made on or after July 1, 2004, but on
2131     or before June 30, 2027, of tangible personal property that:
2132          (i) is leased or purchased for or by a facility that:
2133          (A) is located in the state;
2134          (B) produces fuel from alternative energy, including:
2135          (I) methanol; or

2136          (II) ethanol; and
2137          (C) (I) becomes operational on or after July 1, 2004; or
2138          (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as
2139     a result of the installation of the tangible personal property;
2140          (ii) has an economic life of five or more years; and
2141          (iii) is installed on the facility described in Subsection (57)(a)(i);
2142          (b) this Subsection (57) does not apply to:
2143          (i) tangible personal property used in construction of:
2144          (A) a new facility described in Subsection (57)(a)(i); or
2145          (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
2146          (ii) contracted services required for construction and routine maintenance activities;
2147     and
2148          (iii) unless the tangible personal property is used or acquired for an increase in capacity
2149     described in Subsection (57)(a)(i)(C)(II), tangible personal property used or acquired after:
2150          (A) the facility described in Subsection (57)(a)(i) is operational; or
2151          (B) the increased capacity described in Subsection (57)(a)(i) is operational;
2152          (58) (a) subject to Subsection (58)(b) [or (c)], sales of tangible personal property or a
2153     product transferred electronically to a person within this state if that tangible personal property
2154     or product transferred electronically is subsequently shipped outside the state and incorporated
2155     pursuant to contract into and becomes a part of real property located outside of this state; and
2156          (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
2157     state or political entity to which the tangible personal property is shipped imposes a sales, use,
2158     gross receipts, or other similar transaction excise tax on the transaction against which the other
2159     state or political entity allows a credit for sales and use taxes imposed by this chapter; [and]
2160          [(c) notwithstanding the time period of Subsection 59-1-1410(8) for filing for a refund,
2161     a person may claim the exemption allowed by this Subsection (58) for a sale by filing for a
2162     refund:]
2163          [(i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;]
2164          [(ii) as if this Subsection (58) as in effect on July 1, 2008, were in effect on the day on
2165     which the sale is made;]
2166          [(iii) if the person did not claim the exemption allowed by this Subsection (58) for the

2167     sale prior to filing for the refund;]
2168          [(iv) for sales and use taxes paid under this chapter on the sale;]
2169          [(v) in accordance with Section 59-1-1410; and]
2170          [(vi) subject to any extension allowed for filing for a refund under Section 59-1-1410,
2171     if the person files for the refund on or before June 30, 2011;]
2172          (59) purchases:
2173          (a) of one or more of the following items in printed or electronic format:
2174          (i) a list containing information that includes one or more:
2175          (A) names; or
2176          (B) addresses; or
2177          (ii) a database containing information that includes one or more:
2178          (A) names; or
2179          (B) addresses; and
2180          (b) used to send direct mail;
2181          (60) redemptions or repurchases of a product by a person if that product was:
2182          (a) delivered to a pawnbroker as part of a pawn transaction; and
2183          (b) redeemed or repurchased within the time period established in a written agreement
2184     between the person and the pawnbroker for redeeming or repurchasing the product;
2185          (61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
2186          (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
2187     and
2188          (ii) has a useful economic life of one or more years; and
2189          (b) the following apply to Subsection (61)(a):
2190          (i) telecommunications enabling or facilitating equipment, machinery, or software;
2191          (ii) telecommunications equipment, machinery, or software required for 911 service;
2192          (iii) telecommunications maintenance or repair equipment, machinery, or software;
2193          (iv) telecommunications switching or routing equipment, machinery, or software; or
2194          (v) telecommunications transmission equipment, machinery, or software;
2195          (62) (a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
2196     personal property or a product transferred electronically that are used in the research and
2197     development of alternative energy technology; and

2198          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2199     commission may, for purposes of Subsection (62)(a), make rules defining what constitutes
2200     purchases of tangible personal property or a product transferred electronically that are used in
2201     the research and development of alternative energy technology;
2202          (63) (a) purchases of tangible personal property or a product transferred electronically
2203     if:
2204          (i) the tangible personal property or product transferred electronically is:
2205          (A) purchased outside of this state;
2206          (B) brought into this state at any time after the purchase described in Subsection
2207     (63)(a)(i)(A); and
2208          (C) used in conducting business in this state; and
2209          (ii) for:
2210          (A) tangible personal property or a product transferred electronically other than the
2211     tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property
2212     for a purpose for which the property is designed occurs outside of this state; or
2213          (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
2214     outside of this state;
2215          (b) the exemption provided for in Subsection (63)(a) does not apply to:
2216          (i) a lease or rental of tangible personal property or a product transferred electronically;
2217     or
2218          (ii) a sale of a vehicle exempt under Subsection (33); and
2219          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
2220     purposes of Subsection (63)(a), the commission may by rule define what constitutes the
2221     following:
2222          (i) conducting business in this state if that phrase has the same meaning in this
2223     Subsection (63) as in Subsection (24);
2224          (ii) the first use of tangible personal property or a product transferred electronically if
2225     that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
2226          (iii) a purpose for which tangible personal property or a product transferred
2227     electronically is designed if that phrase has the same meaning in this Subsection (63) as in
2228     Subsection (24);

2229          (64) sales of disposable home medical equipment or supplies if:
2230          (a) a person presents a prescription for the disposable home medical equipment or
2231     supplies;
2232          (b) the disposable home medical equipment or supplies are used exclusively by the
2233     person to whom the prescription described in Subsection (64)(a) is issued; and
2234          (c) the disposable home medical equipment and supplies are listed as eligible for
2235     payment under:
2236          (i) Title XVIII, federal Social Security Act; or
2237          (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
2238          (65) sales:
2239          (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
2240     District Act; or
2241          (b) of tangible personal property to a subcontractor of a public transit district, if the
2242     tangible personal property is:
2243          (i) clearly identified; and
2244          (ii) installed or converted to real property owned by the public transit district;
2245          (66) sales of construction materials:
2246          (a) purchased on or after July 1, 2010;
2247          (b) purchased by, on behalf of, or for the benefit of an international airport:
2248          (i) located within a county of the first class; and
2249          (ii) that has a United States customs office on its premises; and
2250          (c) if the construction materials are:
2251          (i) clearly identified;
2252          (ii) segregated; and
2253          (iii) installed or converted to real property:
2254          (A) owned or operated by the international airport described in Subsection (66)(b); and
2255          (B) located at the international airport described in Subsection (66)(b);
2256          (67) sales of construction materials:
2257          (a) purchased on or after July 1, 2008;
2258          (b) purchased by, on behalf of, or for the benefit of a new airport:
2259          (i) located within a county of the second class; and

2260          (ii) that is owned or operated by a city in which an airline as defined in Section
2261     59-2-102 is headquartered; and
2262          (c) if the construction materials are:
2263          (i) clearly identified;
2264          (ii) segregated; and
2265          (iii) installed or converted to real property:
2266          (A) owned or operated by the new airport described in Subsection (67)(b);
2267          (B) located at the new airport described in Subsection (67)(b); and
2268          (C) as part of the construction of the new airport described in Subsection (67)(b);
2269          (68) sales of fuel to a common carrier that is a railroad for use in a locomotive engine;
2270          (69) purchases and sales described in Section 63H-4-111;
2271          (70) (a) sales of tangible personal property to an aircraft maintenance, repair, and
2272     overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
2273     a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
2274     lists a state or country other than this state as the location of registry of the fixed wing turbine
2275     powered aircraft; or
2276          (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
2277     provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
2278     a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
2279     lists a state or country other than this state as the location of registry of the fixed wing turbine
2280     powered aircraft;
2281          (71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
2282          (a) to a person admitted to an institution of higher education; and
2283          (b) by a seller, other than a bookstore owned by an institution of higher education, if
2284     51% or more of that seller's sales revenue for the previous calendar quarter are sales of a
2285     textbook for a higher education course;
2286          (72) a license fee or tax a municipality imposes in accordance with Subsection
2287     10-1-203(5) on a purchaser from a business for which the municipality provides an enhanced
2288     level of municipal services;
2289          (73) amounts paid or charged for construction materials used in the construction of a
2290     new or expanding life science research and development facility in the state, if the construction

2291     materials are:
2292          (a) clearly identified;
2293          (b) segregated; and
2294          (c) installed or converted to real property;
2295          (74) amounts paid or charged for:
2296          (a) a purchase or lease of machinery and equipment that:
2297          (i) are used in performing qualified research:
2298          (A) as defined in Section 41(d), Internal Revenue Code; and
2299          (B) in the state; and
2300          (ii) have an economic life of three or more years; and
2301          (b) normal operating repair or replacement parts:
2302          (i) for the machinery and equipment described in Subsection (74)(a); and
2303          (ii) that have an economic life of three or more years;
2304          (75) a sale or lease of tangible personal property used in the preparation of prepared
2305     food if:
2306          (a) for a sale:
2307          (i) the ownership of the seller and the ownership of the purchaser are identical; and
2308          (ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
2309     tangible personal property prior to making the sale; or
2310          (b) for a lease:
2311          (i) the ownership of the lessor and the ownership of the lessee are identical; and
2312          (ii) the lessor or the lessee paid a tax under this chapter on the purchase of that tangible
2313     personal property prior to making the lease;
2314          (76) (a) purchases of machinery or equipment if:
2315          (i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
2316     Gambling, and Recreation Industries, of the 2012 North American Industry Classification
2317     System of the federal Executive Office of the President, Office of Management and Budget;
2318          (ii) the machinery or equipment:
2319          (A) has an economic life of three or more years; and
2320          (B) is used by one or more persons who pay admission or user fees described in
2321     Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment; and

2322          (iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
2323          (A) amounts paid or charged as admission or user fees described in Subsection
2324     59-12-103(1)(f); and
2325          (B) subject to taxation under this chapter; and
2326          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2327     commission may make rules for verifying that 51% of a purchaser's sales revenue for the
2328     previous calendar quarter is:
2329          (i) amounts paid or charged as admission or user fees described in Subsection
2330     59-12-103(1)(f); and
2331          (ii) subject to taxation under this chapter;
2332          (77) purchases of a short-term lodging consumable by a business that provides
2333     accommodations and services described in Subsection 59-12-103(1)(i);
2334          (78) amounts paid or charged to access a database:
2335          (a) if the primary purpose for accessing the database is to view or retrieve information
2336     from the database; and
2337          (b) not including amounts paid or charged for a:
2338          (i) digital audiowork;
2339          (ii) digital audio-visual work; or
2340          (iii) digital book;
2341          (79) amounts paid or charged for a purchase or lease made by an electronic financial
2342     payment service, of:
2343          (a) machinery and equipment that:
2344          (i) are used in the operation of the electronic financial payment service; and
2345          (ii) have an economic life of three or more years; and
2346          (b) normal operating repair or replacement parts that:
2347          (i) are used in the operation of the electronic financial payment service; and
2348          (ii) have an economic life of three or more years;
2349          (80) [beginning on April 1, 2013,] sales of a fuel cell as defined in Section 54-15-102;
2350          (81) amounts paid or charged for a purchase or lease of tangible personal property or a
2351     product transferred electronically if the tangible personal property or product transferred
2352     electronically:

2353          (a) is stored, used, or consumed in the state; and
2354          (b) is temporarily brought into the state from another state:
2355          (i) during a disaster period as defined in Section 53-2a-1202;
2356          (ii) by an out-of-state business as defined in Section 53-2a-1202;
2357          (iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
2358          (iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
2359          (82) sales of goods and services at a morale, welfare, and recreation facility, as defined
2360     in Section 39-9-102, made pursuant to Title 39, Chapter 9, State Morale, Welfare, and
2361     Recreation Program;
2362          (83) amounts paid or charged for a purchase or lease of molten magnesium;
2363          (84) amounts paid or charged for a purchase or lease made by a qualifying enterprise
2364     data center of machinery, equipment, or normal operating repair or replacement parts, if the
2365     machinery, equipment, or normal operating repair or replacement parts:
2366          (a) are used in the operation of the establishment; and
2367          (b) have an economic life of one or more years;
2368          (85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a
2369     vehicle that includes cleaning or washing of the interior of the vehicle;
2370          (86) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2371     operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or supplies used
2372     or consumed:
2373          (a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
2374     in Section 63M-4-701 located in the state;
2375          (b) if the machinery, equipment, normal operating repair or replacement parts,
2376     catalysts, chemicals, reagents, solutions, or supplies are used or consumed in:
2377          (i) the production process to produce gasoline or diesel fuel, or at which blendstock is
2378     added to gasoline or diesel fuel;
2379          (ii) research and development;
2380          (iii) transporting, storing, or managing raw materials, work in process, finished
2381     products, and waste materials produced from refining gasoline or diesel fuel, or adding
2382     blendstock to gasoline or diesel fuel;
2383          (iv) developing or maintaining a road, tunnel, excavation, or similar feature used in

2384     refining; or
2385          (v) preventing, controlling, or reducing pollutants from refining; and
2386          (c) beginning on July 1, 2021, if the person has obtained a form certified by the Office
2387     of Energy Development under Subsection 63M-4-702(2);
2388          (87) amounts paid to or charged by a proprietor for accommodations and services, as
2389     defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations tax
2390     imposed under Section 63H-1-205; [and]
2391          (88) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2392     operating repair or replacement parts, or materials, except for office equipment or office
2393     supplies, by an establishment, as the commission defines that term in accordance with Title
2394     63G, Chapter 3, Utah Administrative Rulemaking Act, that:
2395          (a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
2396     American Industry Classification System of the federal Executive Office of the President,
2397     Office of Management and Budget;
2398          (b) is located in this state; and
2399          (c) uses the machinery, equipment, normal operating repair or replacement parts, or
2400     materials in the operation of the establishment[.]; and
2401          (89) amounts paid or charged for a purchase or lease of an electric energy storage asset
2402     for residential, commercial, or industrial use.
2403          Section 3. Effective date.
2404          This bill takes effect on July 1, 2019.