2
3
4
5
6 Cosponsor:
7 Wayne A. Harper
8
9 LONG TITLE
10 General Description:
11 This bill modifies the sales and use tax act.
12 Highlighted Provisions:
13 This bill:
14 ▸ defines terms;
15 ▸ modifies sales and use tax exemptions;
16 ▸ provides the circumstances under which a marketplace facilitator or a marketplace
17 seller is subject to the payment or collection and remittance requirements of the
18 sales and use tax act; and
19 ▸ makes technical and conforming changes.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill provides a special effective date.
24 Utah Code Sections Affected:
25 AMENDS:
26 59-12-102, as last amended by Laws of Utah 2018, Chapters 25, 281, 415, 424, and 472
27 59-12-104, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
28 59-12-107, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
29 ENACTS:
30 59-12-107.6, Utah Code Annotated 1953
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 59-12-102 is amended to read:
34 59-12-102. Definitions.
35 As used in this chapter:
36 (1) "800 service" means a telecommunications service that:
37 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
38 (b) is typically marketed:
39 (i) under the name 800 toll-free calling;
40 (ii) under the name 855 toll-free calling;
41 (iii) under the name 866 toll-free calling;
42 (iv) under the name 877 toll-free calling;
43 (v) under the name 888 toll-free calling; or
44 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
45 Federal Communications Commission.
46 (2) (a) "900 service" means an inbound toll telecommunications service that:
47 (i) a subscriber purchases;
48 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
49 the subscriber's:
50 (A) prerecorded announcement; or
51 (B) live service; and
52 (iii) is typically marketed:
53 (A) under the name 900 service; or
54 (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
55 Communications Commission.
56 (b) "900 service" does not include a charge for:
57 (i) a collection service a seller of a telecommunications service provides to a
58 subscriber; or
59 (ii) the following a subscriber sells to the subscriber's customer:
60 (A) a product; or
61 (B) a service.
62 (3) (a) "Admission or user fees" includes season passes.
63 (b) "Admission or user fees" does not include annual membership dues to private
64 organizations.
65 (4) "Affiliate" or "affiliated person" means a person that, with respect to another
66 person:
67 (a) has an ownership interest of more than 5%, whether direct or indirect, in that other
68 person; or
69 (b) is related to the other person because a third person, or a group of third persons who
70 are affiliated persons with respect to each other, holds an ownership interest of more than 5%,
71 whether direct or indirect, in the related persons.
72 [
73 on November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
74 Agreement after November 12, 2002.
75 [
76 (a) listed under Subsection [
77 (b) that are imposed within a local taxing jurisdiction.
78 [
79 (a) Subsection 59-12-103(2)(a)(i)(A);
80 (b) Subsection 59-12-103(2)(b)(i);
81 (c) Subsection 59-12-103(2)(c)(i);
82 (d) Subsection 59-12-103(2)(d)(i)(A)(I);
83 (e) Section 59-12-204;
84 (f) Section 59-12-401;
85 (g) Section 59-12-402;
86 (h) Section 59-12-402.1;
87 (i) Section 59-12-703;
88 (j) Section 59-12-802;
89 (k) Section 59-12-804;
90 (l) Section 59-12-1102;
91 (m) Section 59-12-1302;
92 (n) Section 59-12-1402;
93 (o) Section 59-12-1802;
94 (p) Section 59-12-2003;
95 (q) Section 59-12-2103;
96 (r) Section 59-12-2213;
97 (s) Section 59-12-2214;
98 (t) Section 59-12-2215;
99 (u) Section 59-12-2216;
100 (v) Section 59-12-2217;
101 (w) Section 59-12-2218;
102 (x) Section 59-12-2219; or
103 (y) Section 59-12-2220.
104 [
105 [
106 (a) except for:
107 (i) an airline as defined in Section 59-2-102; or
108 (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
109 includes a corporation that is qualified to do business but is not otherwise doing business in the
110 state, of an airline; and
111 (b) that has the workers, expertise, and facilities to perform the following, regardless of
112 whether the business entity performs the following in this state:
113 (i) check, diagnose, overhaul, and repair:
114 (A) an onboard system of a fixed wing turbine powered aircraft; and
115 (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
116 (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
117 engine;
118 (iii) perform at least the following maintenance on a fixed wing turbine powered
119 aircraft:
120 (A) an inspection;
121 (B) a repair, including a structural repair or modification;
122 (C) changing landing gear; and
123 (D) addressing issues related to an aging fixed wing turbine powered aircraft;
124 (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
125 completely apply new paint to the fixed wing turbine powered aircraft; and
126 (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
127 results in a change in the fixed wing turbine powered aircraft's certification requirements by the
128 authority that certifies the fixed wing turbine powered aircraft.
129 [
130 (a) is suitable for human consumption; and
131 (b) contains .5% or more alcohol by volume.
132 [
133 (a) biomass energy;
134 (b) geothermal energy;
135 (c) hydroelectric energy;
136 (d) solar energy;
137 (e) wind energy; or
138 (f) energy that is derived from:
139 (i) coal-to-liquids;
140 (ii) nuclear fuel;
141 (iii) oil-impregnated diatomaceous earth;
142 (iv) oil sands;
143 (v) oil shale;
144 (vi) petroleum coke; or
145 (vii) waste heat from:
146 (A) an industrial facility; or
147 (B) a power station in which an electric generator is driven through a process in which
148 water is heated, turns into steam, and spins a steam turbine.
149 [
150 production facility" means a facility that:
151 (i) uses alternative energy to produce electricity; and
152 (ii) has a production capacity of two megawatts or greater.
153 (b) A facility is an alternative energy electricity production facility regardless of
154 whether the facility is:
155 (i) connected to an electric grid; or
156 (ii) located on the premises of an electricity consumer.
157 [
158 provision of telecommunications service.
159 (b) "Ancillary service" includes:
160 (i) a conference bridging service;
161 (ii) a detailed communications billing service;
162 (iii) directory assistance;
163 (iv) a vertical service; or
164 (v) a voice mail service.
165 [
166 62A-3-101.
167 [
168 ride device that is started and stopped by an individual:
169 (a) who is not the purchaser or renter of the right to use or operate the amusement
170 device, skill device, or ride device; and
171 (b) at the direction of the seller of the right to use the amusement device, skill device,
172 or ride device.
173 [
174 cleaning or washing of tangible personal property if the cleaning or washing labor is primarily
175 performed by an individual:
176 (a) who is not the purchaser of the cleaning or washing of the tangible personal
177 property; and
178 (b) at the direction of the seller of the cleaning or washing of the tangible personal
179 property.
180 [
181 (a) in the case of vehicles operated over public highways, the holder of credentials
182 indicating that the vehicle is or will be operated pursuant to both the International Registration
183 Plan and the International Fuel Tax Agreement;
184 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
185 certificate or air carrier's operating certificate; or
186 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
187 stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
188 stock in more than one state.
189 [
190 means any of the following that is used as the primary source of energy to produce fuel or
191 electricity:
192 (i) material from a plant or tree; or
193 (ii) other organic matter that is available on a renewable basis, including:
194 (A) slash and brush from forests and woodlands;
195 (B) animal waste;
196 (C) waste vegetable oil;
197 (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
198 wastewater residuals, or through the conversion of a waste material through a nonincineration,
199 thermal conversion process;
200 (E) aquatic plants; and
201 (F) agricultural products.
202 (b) "Biomass energy" does not include:
203 (i) black liquor; or
204 (ii) treated woods.
205 [
206 personal property, products, or services if the tangible personal property, products, or services
207 are:
208 (i) distinct and identifiable; and
209 (ii) sold for one nonitemized price.
210 (b) "Bundled transaction" does not include:
211 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
212 the basis of the selection by the purchaser of the items of tangible personal property included in
213 the transaction;
214 (ii) the sale of real property;
215 (iii) the sale of services to real property;
216 (iv) the retail sale of tangible personal property and a service if:
217 (A) the tangible personal property:
218 (I) is essential to the use of the service; and
219 (II) is provided exclusively in connection with the service; and
220 (B) the service is the true object of the transaction;
221 (v) the retail sale of two services if:
222 (A) one service is provided that is essential to the use or receipt of a second service;
223 (B) the first service is provided exclusively in connection with the second service; and
224 (C) the second service is the true object of the transaction;
225 (vi) a transaction that includes tangible personal property or a product subject to
226 taxation under this chapter and tangible personal property or a product that is not subject to
227 taxation under this chapter if the:
228 (A) seller's purchase price of the tangible personal property or product subject to
229 taxation under this chapter is de minimis; or
230 (B) seller's sales price of the tangible personal property or product subject to taxation
231 under this chapter is de minimis; and
232 (vii) the retail sale of tangible personal property that is not subject to taxation under
233 this chapter and tangible personal property that is subject to taxation under this chapter if:
234 (A) that retail sale includes:
235 (I) food and food ingredients;
236 (II) a drug;
237 (III) durable medical equipment;
238 (IV) mobility enhancing equipment;
239 (V) an over-the-counter drug;
240 (VI) a prosthetic device; or
241 (VII) a medical supply; and
242 (B) subject to Subsection [
243 (I) the seller's purchase price of the tangible personal property subject to taxation under
244 this chapter is 50% or less of the seller's total purchase price of that retail sale; or
245 (II) the seller's sales price of the tangible personal property subject to taxation under
246 this chapter is 50% or less of the seller's total sales price of that retail sale.
247 (c) (i) For purposes of Subsection [
248 product, or a service that is distinct and identifiable does not include:
249 (A) packaging that:
250 (I) accompanies the sale of the tangible personal property, product, or service; and
251 (II) is incidental or immaterial to the sale of the tangible personal property, product, or
252 service;
253 (B) tangible personal property, a product, or a service provided free of charge with the
254 purchase of another item of tangible personal property, a product, or a service; or
255 (C) an item of tangible personal property, a product, or a service included in the
256 definition of "purchase price."
257 (ii) For purposes of Subsection [
258 property, a product, or a service is provided free of charge with the purchase of another item of
259 tangible personal property, a product, or a service if the sales price of the purchased item of
260 tangible personal property, product, or service does not vary depending on the inclusion of the
261 tangible personal property, product, or service provided free of charge.
262 (d) (i) For purposes of Subsection [
263 price does not include a price that is separately identified by tangible personal property,
264 product, or service on the following, regardless of whether the following is in paper format or
265 electronic format:
266 (A) a binding sales document; or
267 (B) another supporting sales-related document that is available to a purchaser.
268 (ii) For purposes of Subsection [
269 supporting sales-related document that is available to a purchaser includes:
270 (A) a bill of sale;
271 (B) a contract;
272 (C) an invoice;
273 (D) a lease agreement;
274 (E) a periodic notice of rates and services;
275 (F) a price list;
276 (G) a rate card;
277 (H) a receipt; or
278 (I) a service agreement.
279 (e) (i) For purposes of Subsection [
280 property or a product subject to taxation under this chapter is de minimis if:
281 (A) the seller's purchase price of the tangible personal property or product is 10% or
282 less of the seller's total purchase price of the bundled transaction; or
283 (B) the seller's sales price of the tangible personal property or product is 10% or less of
284 the seller's total sales price of the bundled transaction.
285 (ii) For purposes of Subsection [
286 (A) shall use the seller's purchase price or the seller's sales price to determine if the
287 purchase price or sales price of the tangible personal property or product subject to taxation
288 under this chapter is de minimis; and
289 (B) may not use a combination of the seller's purchase price and the seller's sales price
290 to determine if the purchase price or sales price of the tangible personal property or product
291 subject to taxation under this chapter is de minimis.
292 (iii) For purposes of Subsection [
293 service contract to determine if the sales price of tangible personal property or a product is de
294 minimis.
295 (f) For purposes of Subsection [
296 combination of the seller's purchase price and the seller's sales price to determine if tangible
297 personal property subject to taxation under this chapter is 50% or less of the seller's total
298 purchase price or sales price of that retail sale.
299 [
300 board of the agreement that:
301 (a) calculates the agreement sales and use tax imposed within a local taxing
302 jurisdiction:
303 (i) on a transaction; and
304 (ii) in the states that are members of the agreement;
305 (b) determines the amount of agreement sales and use tax to remit to a state that is a
306 member of the agreement; and
307 (c) maintains a record of the transaction described in Subsection [
308 [
309 (a) by the governing board of the agreement; and
310 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
311 use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
312 own purchases.
313 [
314 wearing apparel suitable for general use.
315 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
316 commission shall make rules:
317 (i) listing the items that constitute "clothing"; and
318 (ii) that are consistent with the list of items that constitute "clothing" under the
319 agreement.
320 [
321 fuel.
322 [
323 other fuels that does not constitute industrial use under Subsection [
324 under Subsection [
325 [
326 business of transporting passengers, freight, merchandise, or other property for hire within this
327 state.
328 (b) (i) "Common carrier" does not include a person [
329 traveling to or from that person's place of employment, transports a passenger to or from the
330 passenger's place of employment.
331 (ii) For purposes of Subsection [
332 3, Utah Administrative Rulemaking Act, the commission may make rules defining what
333 constitutes a person's place of employment.
334 (c) "Common carrier" does not include a person that provides transportation network
335 services, as defined in Section 13-51-102.
336 [
337 (a) poultry, dairy, and other livestock feed, and their components;
338 (b) baling ties and twine used in the baling of hay and straw;
339 (c) fuel used for providing temperature control of orchards and commercial
340 greenhouses doing a majority of their business in wholesale sales, and for providing power for
341 off-highway type farm machinery; and
342 (d) feed, seeds, and seedlings.
343 [
344 (a) (i) in digital form; or
345 (ii) in a form similar to digital form; and
346 (b) manipulates that information for a result based on a sequence of instructions.
347 [
348 (a) a computer to perform a task; or
349 (b) automatic data processing equipment to perform a task.
350 [
351 seller of computer software to provide a customer with:
352 (a) future updates or upgrades to computer software;
353 (b) support services with respect to computer software; or
354 (c) a combination of Subsections [
355 [
356 or more participants of an audio conference call or video conference call.
357 (b) "Conference bridging service" may include providing a telephone number as part of
358 the ancillary service described in Subsection [
359 (c) "Conference bridging service" does not include a telecommunications service used
360 to reach the ancillary service described in Subsection [
361 [
362 converted into real property.
363 [
364 than tangible storage media.
365 [
366 (i) by a seller of:
367 (A) tangible personal property;
368 (B) a product transferred electronically; or
369 (C) [
370 (ii) for preparation and delivery of the tangible personal property, product transferred
371 electronically, or services described in Subsection [
372 the purchaser.
373 (b) "Delivery charge" includes a charge for the following:
374 (i) transportation;
375 (ii) shipping;
376 (iii) postage;
377 (iv) handling;
378 (v) crating; or
379 (vi) packing.
380 [
381 separately stating information pertaining to individual calls on a customer's billing statement.
382 [
383 (a) is intended to supplement the diet;
384 (b) contains one or more of the following dietary ingredients:
385 (i) a vitamin;
386 (ii) a mineral;
387 (iii) an herb or other botanical;
388 (iv) an amino acid;
389 (v) a dietary substance for use by humans to supplement the diet by increasing the total
390 dietary intake; or
391 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
392 described in Subsections [
393 (c) (i) except as provided in Subsection [
394 (A) tablet form;
395 (B) capsule form;
396 (C) powder form;
397 (D) softgel form;
398 (E) gelcap form; or
399 (F) liquid form; or
400 (ii) if the product is not intended for ingestion in a form described in Subsections [
401 (35)(c)(i)(A) through (F), is not represented:
402 (A) as conventional food; and
403 (B) for use as a sole item of:
404 (I) a meal; or
405 (II) the diet; and
406 (d) is required to be labeled as a dietary supplement:
407 (i) identifiable by the "Supplemental Facts" box found on the label; and
408 (ii) as required by 21 C.F.R. Sec. 101.36.
409 [
410
411 (36) (a) "Digital audio work" means a work that results from the fixation of a series of
412 musical, spoken, or other sounds.
413 (b) "Digital audio work" includes a ringtone.
414 (37) "Digital audio-visual work" means a series of related images which, when shown
415 in succession, imparts an impression of motion, together with accompanying sounds, if any.
416 [
417 and usual sense as a book.
418 [
419 States mail or other delivery service:
420 (i) to:
421 (A) a mass audience; or
422 (B) addressees on a mailing list provided:
423 (I) by a purchaser of the mailing list; or
424 (II) at the discretion of the purchaser of the mailing list; and
425 (ii) if the cost of the printed material is not billed directly to the recipients.
426 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
427 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
428 (c) "Direct mail" does not include multiple items of printed material delivered to a
429 single address.
430 [
431 (a) address information; or
432 (b) telephone number information.
433 [
434 equipment or supplies that:
435 (i) cannot withstand repeated use; and
436 (ii) are purchased by, for, or on behalf of a person other than:
437 (A) a health care facility as defined in Section 26-21-2;
438 (B) a health care provider as defined in Section 78B-3-403;
439 (C) an office of a health care provider described in Subsection [
440 (D) a person similar to a person described in Subsections [
441 (C).
442 (b) "Disposable home medical equipment or supplies" does not include:
443 (i) a drug;
444 (ii) durable medical equipment;
445 (iii) a hearing aid;
446 (iv) a hearing aid accessory;
447 (v) mobility enhancing equipment; or
448 (vi) tangible personal property used to correct impaired vision, including:
449 (A) eyeglasses; or
450 (B) contact lenses.
451 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
452 commission may by rule define what constitutes medical equipment or supplies.
453 [
454 (a) located in the state;
455 (b) with respect to which 51% or more of the manufacturing activities of the facility
456 consist of manufacturing component parts of drilling equipment;
457 (c) that uses pressure of 800,000 or more pounds per square inch as part of the
458 manufacturing process; and
459 (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
460 manufacturing process.
461 [
462 a compound, substance, or preparation that is:
463 (i) recognized in:
464 (A) the official United States Pharmacopoeia;
465 (B) the official Homeopathic Pharmacopoeia of the United States;
466 (C) the official National Formulary; or
467 (D) a supplement to a publication listed in Subsections [
468 (C);
469 (ii) intended for use in the:
470 (A) diagnosis of disease;
471 (B) cure of disease;
472 (C) mitigation of disease;
473 (D) treatment of disease; or
474 (E) prevention of disease; or
475 (iii) intended to affect:
476 (A) the structure of the body; or
477 (B) any function of the body.
478 (b) "Drug" does not include:
479 (i) food and food ingredients;
480 (ii) a dietary supplement;
481 (iii) an alcoholic beverage; or
482 (iv) a prosthetic device.
483 [
484 equipment" means equipment that:
485 (i) can withstand repeated use;
486 (ii) is primarily and customarily used to serve a medical purpose;
487 (iii) generally is not useful to a person in the absence of illness or injury; and
488 (iv) is not worn in or on the body.
489 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
490 equipment described in Subsection [
491 (c) "Durable medical equipment" does not include mobility enhancing equipment.
492 [
493 (a) relating to technology; and
494 (b) having:
495 (i) electrical capabilities;
496 (ii) digital capabilities;
497 (iii) magnetic capabilities;
498 (iv) wireless capabilities;
499 (v) optical capabilities;
500 (vi) electromagnetic capabilities; or
501 (vii) capabilities similar to Subsections [
502 [
503 (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
504 Clearinghouse Activities, of the 2012 North American Industry Classification System of the
505 federal Executive Office of the President, Office of Management and Budget; and
506 (b) that performs electronic financial payment services.
507 [
508 [
509 (a) rail for the use of public transit; or
510 (b) a separate right-of-way for the use of public transit.
511 [
512 (a) is powered by turbine engines;
513 (b) operates on jet fuel; and
514 (c) has wings that are permanently attached to the fuselage of the aircraft.
515 [
516 radio communication between fixed points.
517 [
518 (i) regardless of whether the substances are in:
519 (A) liquid form;
520 (B) concentrated form;
521 (C) solid form;
522 (D) frozen form;
523 (E) dried form; or
524 (F) dehydrated form; and
525 (ii) that are:
526 (A) sold for:
527 (I) ingestion by humans; or
528 (II) chewing by humans; and
529 (B) consumed for the substance's:
530 (I) taste; or
531 (II) nutritional value.
532 (b) "Food and food ingredients" includes an item described in Subsection [
533 (95)(b)(iii).
534 (c) "Food and food ingredients" does not include:
535 (i) an alcoholic beverage;
536 (ii) tobacco; or
537 (iii) prepared food.
538 [
539 (i) (A) made by a school; or
540 (B) made by a school student;
541 (ii) that are for the purpose of raising funds for the school to purchase equipment,
542 materials, or provide transportation; and
543 (iii) that are part of an officially sanctioned school activity.
544 (b) For purposes of Subsection [
545 means a school activity:
546 (i) that is conducted in accordance with a formal policy adopted by the school or school
547 district governing the authorization and supervision of fundraising activities;
548 (ii) that does not directly or indirectly compensate an individual teacher or other
549 educational personnel by direct payment, commissions, or payment in kind; and
550 (iii) the net or gross revenues from which are deposited in a dedicated account
551 controlled by the school or school district.
552 [
553 flows outward from the earth that is used as the sole source of energy to produce electricity.
554 [
555 agreement that is:
556 (a) authorized to administer the agreement; and
557 (b) established in accordance with the agreement.
558 [
559 means:
560 (i) the executive branch of the state, including all departments, institutions, boards,
561 divisions, bureaus, offices, commissions, and committees;
562 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
563 Administrative Office of the Courts, and similar administrative units in the judicial branch;
564 (iii) the legislative branch of the state, including the House of Representatives, the
565 Senate, the Legislative Printing Office, the Office of Legislative Research and General
566 Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
567 Analyst;
568 (iv) the National Guard;
569 (v) an independent entity as defined in Section 63E-1-102; or
570 (vi) a political subdivision as defined in Section 17B-1-102.
571 (b) "Governmental entity" does not include the state systems of public and higher
572 education, including:
573 (i) a school;
574 (ii) the State Board of Education;
575 (iii) the State Board of Regents; or
576 (iv) an institution of higher education described in Section 53B-1-102.
577 [
578 produce electricity.
579 [
580 or other fuels:
581 (a) in mining or extraction of minerals;
582 (b) in agricultural operations to produce an agricultural product up to the time of
583 harvest or placing the agricultural product into a storage facility, including:
584 (i) commercial greenhouses;
585 (ii) irrigation pumps;
586 (iii) farm machinery;
587 (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
588 under Title 41, Chapter 1a, Part 2, Registration; and
589 (v) other farming activities;
590 (c) in manufacturing tangible personal property at an establishment described in:
591 (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
592 the federal Executive Office of the President, Office of Management and Budget; or
593 (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
594 American Industry Classification System of the federal Executive Office of the President,
595 Office of Management and Budget;
596 (d) by a scrap recycler if:
597 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
598 one or more of the following items into prepared grades of processed materials for use in new
599 products:
600 (A) iron;
601 (B) steel;
602 (C) nonferrous metal;
603 (D) paper;
604 (E) glass;
605 (F) plastic;
606 (G) textile; or
607 (H) rubber; and
608 (ii) the new products under Subsection [
609 nonrecycled materials; or
610 (e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
611 cogeneration facility as defined in Section 54-2-1.
612 [
613 means a charge for installing:
614 (i) tangible personal property; or
615 (ii) a product transferred electronically.
616 (b) "Installation charge" does not include a charge for:
617 (i) repairs or renovations of:
618 (A) tangible personal property; or
619 (B) a product transferred electronically; or
620 (ii) attaching tangible personal property or a product transferred electronically:
621 (A) to other tangible personal property; and
622 (B) as part of a manufacturing or fabrication process.
623 [
624 listed in Section 53B-2-101.
625 [
626 personal property or a product transferred electronically for:
627 (i) (A) a fixed term; or
628 (B) an indeterminate term; and
629 (ii) consideration.
630 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
631 amount of consideration may be increased or decreased by reference to the amount realized
632 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
633 Code.
634 (c) "Lease" or "rental" does not include:
635 (i) a transfer of possession or control of property under a security agreement or
636 deferred payment plan that requires the transfer of title upon completion of the required
637 payments;
638 (ii) a transfer of possession or control of property under an agreement that requires the
639 transfer of title:
640 (A) upon completion of required payments; and
641 (B) if the payment of an option price does not exceed the greater of:
642 (I) $100; or
643 (II) 1% of the total required payments; or
644 (iii) providing tangible personal property along with an operator for a fixed period of
645 time or an indeterminate period of time if the operator is necessary for equipment to perform as
646 designed.
647 (d) For purposes of Subsection [
648 equipment to perform as designed if the operator's duties exceed the:
649 (i) set-up of tangible personal property;
650 (ii) maintenance of tangible personal property; or
651 (iii) inspection of tangible personal property.
652 [
653 classified under the following NAICS codes of the 2007 North American Industry
654 Classification System of the federal Executive Office of the President, Office of Management
655 and Budget:
656 (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
657 (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
658 Manufacturing; or
659 (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
660 [
661 leased, or rented by a life science establishment if research and development is performed in
662 51% or more of the total area of the facility.
663 [
664 media if the tangible storage media is not physically transferred to the purchaser.
665 [
666 (a) county that is authorized to impose an agreement sales and use tax;
667 (b) city that is authorized to impose an agreement sales and use tax; or
668 (c) town that is authorized to impose an agreement sales and use tax.
669 [
670 15A-1-302.
671 [
672 (a) an establishment described in:
673 (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
674 the federal Executive Office of the President, Office of Management and Budget; or
675 (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
676 American Industry Classification System of the federal Executive Office of the President,
677 Office of Management and Budget;
678 (b) a scrap recycler if:
679 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
680 one or more of the following items into prepared grades of processed materials for use in new
681 products:
682 (A) iron;
683 (B) steel;
684 (C) nonferrous metal;
685 (D) paper;
686 (E) glass;
687 (F) plastic;
688 (G) textile; or
689 (H) rubber; and
690 (ii) the new products under Subsection [
691 nonrecycled materials; or
692 (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
693 placed in service on or after May 1, 2006.
694 (67) (a) "Marketplace" means a physical or electronic place, platform, or forum where
695 tangible personal property, a product transferred electronically, or a service is offered for sale.
696 (b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a
697 dedicated sales software application.
698 (68) (a) "Marketplace facilitator" means a person, including an affiliate of the person,
699 that enters into a contract, an agreement, or otherwise with sellers, for consideration, to
700 facilitate the sale of a seller's product through a marketplace that the person owns, operates, or
701 controls and that directly or indirectly:
702 (i) does any of the following:
703 (A) lists, makes available, or advertises tangible personal property, a product
704 transferred electronically, or a service for sale by a marketplace seller on a marketplace that the
705 person owns, operates, or controls;
706 (B) facilitates the sale of a marketplace seller's tangible personal property, product
707 transferred electronically, or service by transmitting or otherwise communicating an offer or
708 acceptance of a retail sale between the marketplace seller and a purchaser using the
709 marketplace;
710 (C) owns, rents, licenses, makes available, or operates any electronic or physical
711 infrastructure or any property, process, method, copyright, trademark, or patent that connects a
712 marketplace seller to a purchaser for the purpose of making a retail sale of tangible personal
713 property, a product transferred electronically, or a service;
714 (D) provides a marketplace for making, or otherwise facilitates, a retail sale of tangible
715 personal property, a product transferred electronically, or a service, regardless of ownership or
716 control of the tangible personal property, the product transferred electronically, or the service
717 that is the subject of the retail sale;
718 (E) provides software development or research and development activities related to
719 any activity described in this Subsection (68)(a)(i), if the software development or research and
720 development activity is directly related to the person's marketplace;
721 (F) provides or offers fulfillment or storage services for a marketplace seller;
722 (G) sets prices for the sale of tangible personal property, a product transferred
723 electronically, or a service by a marketplace seller;
724 (H) provides or offers customer service to a marketplace seller or a marketplace seller's
725 purchaser or accepts or assists with taking orders, returns, or exchanges of tangible personal
726 property, a product transferred electronically, or a service sold by a marketplace seller on the
727 person's marketplace; or
728 (I) brands or otherwise identifies sales as those of the person; and
729 (ii) does any of the following:
730 (A) collects the sales price or purchase price of a retail sale of tangible personal
731 property, a product transferred electronically, or a service;
732 (B) provides payment processing services for a retail sale of tangible personal property,
733 a product transferred electronically, or a service;
734 (C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee, closing
735 fee, a fee for inserting or making available tangible personal property, a product transferred
736 electronically, or a service on the person's marketplace, or other consideration for the
737 facilitation of a retail sale of tangible personal property, a product transferred electronically, or
738 a service, regardless of ownership or control of the tangible personal property, the product
739 transferred electronically, or the service that is the subject of the retail sale;
740 (D) through terms and conditions, an agreement, or another arrangement with a third
741 person, collects payment from a purchase for a retail sale of tangible personal property, a
742 product transferred electronically, or a service and transmits that payment to the marketplace
743 seller, regardless of whether the third person receives compensation or other consideration in
744 exchange for the service; or
745 (E) provides a virtual currency for a purchaser to use to purchase tangible personal
746 property, a product transferred electronically, or service offered for sale.
747 (b) "Marketplace facilitator" does not include a person that only provides payment
748 processing services.
749 (69) "Marketplace seller" means a seller that makes one or more retail sales through a
750 marketplace that a marketplace facilitator owns, operates, or controls, regardless of whether the
751 seller is required to be registered to collect and remit the tax under this part.
752 [
753 related to a producer described in Subsection 59-12-104(20)(a) as a:
754 (a) child or stepchild, regardless of whether the child or stepchild is:
755 (i) an adopted child or adopted stepchild; or
756 (ii) a foster child or foster stepchild;
757 (b) grandchild or stepgrandchild;
758 (c) grandparent or stepgrandparent;
759 (d) nephew or stepnephew;
760 (e) niece or stepniece;
761 (f) parent or stepparent;
762 (g) sibling or stepsibling;
763 (h) spouse;
764 (i) person who is the spouse of a person described in Subsections [
765 (g); or
766 (j) person similar to a person described in Subsections [
767 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
768 Administrative Rulemaking Act.
769 [
770 15A-1-302.
771 [
772 defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
773 [
774 regardless of the technology used, if:
775 (i) the origination point of the conveyance, routing, or transmission is not fixed;
776 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
777 (iii) the origination point described in Subsection [
778 point described in Subsection [
779 (b) "Mobile wireless service" includes a telecommunications service that is provided
780 by a commercial mobile radio service provider.
781 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
782 commission may by rule define "commercial mobile radio service provider."
783 [
784 equipment" means equipment that is:
785 (i) primarily and customarily used to provide or increase the ability to move from one
786 place to another;
787 (ii) appropriate for use in a:
788 (A) home; or
789 (B) motor vehicle; and
790 (iii) not generally used by persons with normal mobility.
791 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
792 the equipment described in Subsection [
793 (c) "Mobility enhancing equipment" does not include:
794 (i) a motor vehicle;
795 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
796 vehicle manufacturer;
797 (iii) durable medical equipment; or
798 (iv) a prosthetic device.
799 [
800 selected a certified service provider as the seller's agent to perform all of the seller's sales and
801 use tax functions for agreement sales and use taxes other than the seller's obligation under
802 Section 59-12-124 to remit a tax on the seller's own purchases.
803 [
804 (a) except as provided in Subsection [
805 system to perform the seller's sales tax functions for agreement sales and use taxes; and
806 (b) retains responsibility for remitting all of the sales tax:
807 (i) collected by the seller; and
808 (ii) to the appropriate local taxing jurisdiction.
809 [
810 registered under the agreement that has:
811 (i) sales in at least five states that are members of the agreement;
812 (ii) total annual sales revenues of at least $500,000,000;
813 (iii) a proprietary system that calculates the amount of tax:
814 (A) for an agreement sales and use tax; and
815 (B) due to each local taxing jurisdiction; and
816 (iv) entered into a performance agreement with the governing board of the agreement.
817 (b) For purposes of Subsection [
818 group of sellers using the same proprietary system.
819 [
820 not a model 1 seller, model 2 seller, or model 3 seller.
821 [
822 [
823 41-1a-102.
824 [
825 (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
826 other hydrocarbons, or otherwise treated;
827 (b) yield mixtures of liquid hydrocarbon; and
828 (c) require further processing other than mechanical blending before becoming finished
829 petroleum products.
830 [
831 kerogen material that yields petroleum upon heating and distillation.
832 [
833 software maintenance contract that a customer is not obligated to purchase as a condition to the
834 retail sale of computer software.
835 [
836 energy.
837 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
838 personal property.
839 [
840 transmission of a coded radio signal for the purpose of activating a specific pager.
841 (b) For purposes of Subsection [
842 includes a transmission by message or sound.
843 [
844 13-32a-102.
845 [
846 13-32a-102.
847 [
848 property attached to real property:
849 (i) the attachment of the tangible personal property to the real property:
850 (A) is essential to the use of the tangible personal property; and
851 (B) suggests that the tangible personal property will remain attached to the real
852 property in the same place over the useful life of the tangible personal property; or
853 (ii) if the tangible personal property is detached from the real property, the detachment
854 would:
855 (A) cause substantial damage to the tangible personal property; or
856 (B) require substantial alteration or repair of the real property to which the tangible
857 personal property is attached.
858 (b) "Permanently attached to real property" includes:
859 (i) the attachment of an accessory to the tangible personal property if the accessory is:
860 (A) essential to the operation of the tangible personal property; and
861 (B) attached only to facilitate the operation of the tangible personal property;
862 (ii) a temporary detachment of tangible personal property from real property for a
863 repair or renovation if the repair or renovation is performed where the tangible personal
864 property and real property are located; or
865 (iii) property attached to oil, gas, or water pipelines, except for the property listed in
866 Subsection [
867 (c) "Permanently attached to real property" does not include:
868 (i) the attachment of portable or movable tangible personal property to real property if
869 that portable or movable tangible personal property is attached to real property only for:
870 (A) convenience;
871 (B) stability; or
872 (C) for an obvious temporary purpose;
873 (ii) the detachment of tangible personal property from real property except for the
874 detachment described in Subsection [
875 (iii) an attachment of the following tangible personal property to real property if the
876 attachment to real property is only through a line that supplies water, electricity, gas,
877 telecommunications, cable, or supplies a similar item as determined by the commission by rule
878 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
879 (A) a computer;
880 (B) a telephone;
881 (C) a television; or
882 (D) tangible personal property similar to Subsections [
883 as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
884 Administrative Rulemaking Act; or
885 (iv) an item listed in Subsection [
886 [
887 association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
888 city, municipality, district, or other local governmental entity of the state, or any group or
889 combination acting as a unit.
890 [
891 (a) for telecommunications service other than mobile telecommunications service,
892 means the street address representative of where the customer's use of the telecommunications
893 service primarily occurs, which shall be:
894 (i) the residential street address of the customer; or
895 (ii) the primary business street address of the customer; or
896 (b) for mobile telecommunications service, means the same as that term is defined in
897 the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
898 [
899 obtains by making a payment on a call-by-call basis:
900 (i) through the use of a:
901 (A) bank card;
902 (B) credit card;
903 (C) debit card; or
904 (D) travel card; or
905 (ii) by a charge made to a telephone number that is not associated with the origination
906 or termination of the telecommunications service.
907 (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
908 service, that would be a prepaid wireless calling service if the service were exclusively a
909 telecommunications service.
910 [
911 a medium described in Subsection 59-12-104(54)(a).
912 [
913 (a) that allows a purchaser access to telecommunications service that is exclusively
914 telecommunications service;
915 (b) that:
916 (i) is paid for in advance; and
917 (ii) enables the origination of a call using an:
918 (A) access number; or
919 (B) authorization code;
920 (c) that is dialed:
921 (i) manually; or
922 (ii) electronically; and
923 (d) sold in predetermined units or dollars that decline:
924 (i) by a known amount; and
925 (ii) with use.
926 [
927 (a) that provides the right to utilize:
928 (i) mobile wireless service; and
929 (ii) other service that is not a telecommunications service, including:
930 (A) the download of a product transferred electronically;
931 (B) a content service; or
932 (C) an ancillary service;
933 (b) that:
934 (i) is paid for in advance; and
935 (ii) enables the origination of a call using an:
936 (A) access number; or
937 (B) authorization code;
938 (c) that is dialed:
939 (i) manually; or
940 (ii) electronically; and
941 (d) sold in predetermined units or dollars that decline:
942 (i) by a known amount; and
943 (ii) with use.
944 [
945 (i) food:
946 (A) sold in a heated state; or
947 (B) heated by a seller;
948 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
949 item; or
950 (iii) except as provided in Subsection [
951 provided by the seller, including a:
952 (A) plate;
953 (B) knife;
954 (C) fork;
955 (D) spoon;
956 (E) glass;
957 (F) cup;
958 (G) napkin; or
959 (H) straw.
960 (b) "Prepared food" does not include:
961 (i) food that a seller only:
962 (A) cuts;
963 (B) repackages; or
964 (C) pasteurizes; or
965 (ii) (A) the following:
966 (I) raw egg;
967 (II) raw fish;
968 (III) raw meat;
969 (IV) raw poultry; or
970 (V) a food containing an item described in Subsections [
971 (IV); and
972 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
973 Food and Drug Administration's Food Code that a consumer cook the items described in
974 Subsection [
975 (iii) the following if sold without eating utensils provided by the seller:
976 (A) food and food ingredients sold by a seller if the seller's proper primary
977 classification under the 2002 North American Industry Classification System of the federal
978 Executive Office of the President, Office of Management and Budget, is manufacturing in
979 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
980 Manufacturing;
981 (B) food and food ingredients sold in an unheated state:
982 (I) by weight or volume; and
983 (II) as a single item; or
984 (C) a bakery item, including:
985 (I) a bagel;
986 (II) a bar;
987 (III) a biscuit;
988 (IV) bread;
989 (V) a bun;
990 (VI) a cake;
991 (VII) a cookie;
992 (VIII) a croissant;
993 (IX) a danish;
994 (X) a donut;
995 (XI) a muffin;
996 (XII) a pastry;
997 (XIII) a pie;
998 (XIV) a roll;
999 (XV) a tart;
1000 (XVI) a torte; or
1001 (XVII) a tortilla.
1002 (c) An eating utensil provided by the seller does not include the following used to
1003 transport the food:
1004 (i) a container; or
1005 (ii) packaging.
1006 [
1007 (a) (i) orally;
1008 (ii) in writing;
1009 (iii) electronically; or
1010 (iv) by any other manner of transmission; and
1011 (b) by a licensed practitioner authorized by the laws of a state.
1012 [
1013 computer software" means computer software that is not designed and developed:
1014 (i) by the author or other creator of the computer software; and
1015 (ii) to the specifications of a specific purchaser.
1016 (b) "Prewritten computer software" includes:
1017 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
1018 software is not designed and developed:
1019 (A) by the author or other creator of the computer software; and
1020 (B) to the specifications of a specific purchaser;
1021 (ii) computer software designed and developed by the author or other creator of the
1022 computer software to the specifications of a specific purchaser if the computer software is sold
1023 to a person other than the purchaser; or
1024 (iii) except as provided in Subsection [
1025 prewritten portion of prewritten computer software:
1026 (A) that is modified or enhanced to any degree; and
1027 (B) if the modification or enhancement described in Subsection [
1028 designed and developed to the specifications of a specific purchaser.
1029 (c) "Prewritten computer software" does not include a modification or enhancement
1030 described in Subsection [
1031 are:
1032 (i) reasonable; and
1033 (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), separately stated on the
1034 invoice or other statement of price provided to the purchaser at the time of sale or later, as
1035 demonstrated by:
1036 (A) the books and records the seller keeps at the time of the transaction in the regular
1037 course of business, including books and records the seller keeps at the time of the transaction in
1038 the regular course of business for nontax purposes;
1039 (B) a preponderance of the facts and circumstances at the time of the transaction; and
1040 (C) the understanding of all of the parties to the transaction.
1041 [
1042 (i) that entitles a customer to exclusive or priority use of one or more communications
1043 channels between or among termination points; and
1044 (ii) regardless of the manner in which the one or more communications channels are
1045 connected.
1046 (b) "Private communications service" includes the following provided in connection
1047 with the use of one or more communications channels:
1048 (i) an extension line;
1049 (ii) a station;
1050 (iii) switching capacity; or
1051 (iv) another associated service that is provided in connection with the use of one or
1052 more communications channels as defined in Section 59-12-215.
1053 [
1054 electronically" means a product transferred electronically that would be subject to a tax under
1055 this chapter if that product was transferred in a manner other than electronically.
1056 (b) "Product transferred electronically" does not include:
1057 (i) an ancillary service;
1058 (ii) computer software; or
1059 (iii) a telecommunications service.
1060 [
1061 (i) artificially replace a missing portion of the body;
1062 (ii) prevent or correct a physical deformity or physical malfunction; or
1063 (iii) support a weak or deformed portion of the body.
1064 (b) "Prosthetic device" includes:
1065 (i) parts used in the repairs or renovation of a prosthetic device;
1066 (ii) replacement parts for a prosthetic device;
1067 (iii) a dental prosthesis; or
1068 (iv) a hearing aid.
1069 (c) "Prosthetic device" does not include:
1070 (i) corrective eyeglasses; or
1071 (ii) contact lenses.
1072 [
1073 (i) for human wear; and
1074 (ii) that is:
1075 (A) designed as protection:
1076 (I) to the wearer against injury or disease; or
1077 (II) against damage or injury of other persons or property; and
1078 (B) not suitable for general use.
1079 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1080 commission shall make rules:
1081 (i) listing the items that constitute "protective equipment"; and
1082 (ii) that are consistent with the list of items that constitute "protective equipment"
1083 under the agreement.
1084 [
1085 written or printed matter, other than a photocopy:
1086 (i) regardless of:
1087 (A) characteristics;
1088 (B) copyright;
1089 (C) form;
1090 (D) format;
1091 (E) method of reproduction; or
1092 (F) source; and
1093 (ii) made available in printed or electronic format.
1094 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1095 commission may by rule define the term "photocopy."
1096 [
1097 consideration:
1098 (i) valued in money; and
1099 (ii) for which tangible personal property, a product transferred electronically, or
1100 services are:
1101 (A) sold;
1102 (B) leased; or
1103 (C) rented.
1104 (b) "Purchase price" and "sales price" include:
1105 (i) the seller's cost of the tangible personal property, a product transferred
1106 electronically, or services sold;
1107 (ii) expenses of the seller, including:
1108 (A) the cost of materials used;
1109 (B) a labor cost;
1110 (C) a service cost;
1111 (D) interest;
1112 (E) a loss;
1113 (F) the cost of transportation to the seller; or
1114 (G) a tax imposed on the seller;
1115 (iii) a charge by the seller for any service necessary to complete the sale; or
1116 (iv) consideration a seller receives from a person other than the purchaser if:
1117 (A) (I) the seller actually receives consideration from a person other than the purchaser;
1118 and
1119 (II) the consideration described in Subsection [
1120 related to a price reduction or discount on the sale;
1121 (B) the seller has an obligation to pass the price reduction or discount through to the
1122 purchaser;
1123 (C) the amount of the consideration attributable to the sale is fixed and determinable by
1124 the seller at the time of the sale to the purchaser; and
1125 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1126 seller to claim a price reduction or discount; and
1127 (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1128 coupon, or other documentation with the understanding that the person other than the seller
1129 will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1130 (II) the purchaser identifies that purchaser to the seller as a member of a group or
1131 organization allowed a price reduction or discount, except that a preferred customer card that is
1132 available to any patron of a seller does not constitute membership in a group or organization
1133 allowed a price reduction or discount; or
1134 (III) the price reduction or discount is identified as a third party price reduction or
1135 discount on the:
1136 (Aa) invoice the purchaser receives; or
1137 (Bb) certificate, coupon, or other documentation the purchaser presents.
1138 (c) "Purchase price" and "sales price" do not include:
1139 (i) a discount:
1140 (A) in a form including:
1141 (I) cash;
1142 (II) term; or
1143 (III) coupon;
1144 (B) that is allowed by a seller;
1145 (C) taken by a purchaser on a sale; and
1146 (D) that is not reimbursed by a third party; or
1147 (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), the following if separately
1148 stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
1149 sale or later, as demonstrated by the books and records the seller keeps at the time of the
1150 transaction in the regular course of business, including books and records the seller keeps at the
1151 time of the transaction in the regular course of business for nontax purposes, by a
1152 preponderance of the facts and circumstances at the time of the transaction, and by the
1153 understanding of all of the parties to the transaction:
1154 (A) the following from credit extended on the sale of tangible personal property or
1155 services:
1156 (I) a carrying charge;
1157 (II) a financing charge; or
1158 (III) an interest charge;
1159 (B) a delivery charge;
1160 (C) an installation charge;
1161 (D) a manufacturer rebate on a motor vehicle; or
1162 (E) a tax or fee legally imposed directly on the consumer.
1163 [
1164 (a) a sale of tangible personal property is made;
1165 (b) a product is transferred electronically; or
1166 (c) a service is furnished.
1167 [
1168 (a) own and operate a data center facility that will house a group of networked server
1169 computers in one physical location in order to centralize the dissemination, management, and
1170 storage of data and information;
1171 (b) be located in the state;
1172 (c) be a new operation constructed on or after July 1, 2016;
1173 (d) consist of one or more buildings that total 150,000 or more square feet;
1174 (e) be owned or leased by:
1175 (i) the establishment; or
1176 (ii) a person under common ownership, as defined in Section 59-7-101, of the
1177 establishment; and
1178 (f) be located on one or more parcels of land that are owned or leased by:
1179 (i) the establishment; or
1180 (ii) a person under common ownership, as defined in Section 59-7-101, of the
1181 establishment.
1182 [
1183 (a) rented to a guest for value three or more times during a calendar year; or
1184 (b) advertised or held out to the public as a place that is regularly rented to guests for
1185 value.
1186 [
1187 [
1188 renovations of tangible personal property" means:
1189 (i) a repair or renovation of tangible personal property that is not permanently attached
1190 to real property; or
1191 (ii) attaching tangible personal property or a product transferred electronically to other
1192 tangible personal property or detaching tangible personal property or a product transferred
1193 electronically from other tangible personal property if:
1194 (A) the other tangible personal property to which the tangible personal property or
1195 product transferred electronically is attached or from which the tangible personal property or
1196 product transferred electronically is detached is not permanently attached to real property; and
1197 (B) the attachment of tangible personal property or a product transferred electronically
1198 to other tangible personal property or detachment of tangible personal property or a product
1199 transferred electronically from other tangible personal property is made in conjunction with a
1200 repair or replacement of tangible personal property or a product transferred electronically.
1201 (b) "Repairs or renovations of tangible personal property" does not include:
1202 (i) attaching prewritten computer software to other tangible personal property if the
1203 other tangible personal property to which the prewritten computer software is attached is not
1204 permanently attached to real property; or
1205 (ii) detaching prewritten computer software from other tangible personal property if the
1206 other tangible personal property from which the prewritten computer software is detached is
1207 not permanently attached to real property.
1208 [
1209 experimentation aimed at the discovery of facts, devices, technologies, or applications and the
1210 process of preparing those devices, technologies, or applications for marketing.
1211 [
1212 telecommunications service or an ancillary service that is provided to an individual for personal
1213 use:
1214 (i) at a residential address; or
1215 (ii) at an institution, including a nursing home or a school, if the telecommunications
1216 service or ancillary service is provided to and paid for by the individual residing at the
1217 institution rather than the institution.
1218 (b) For purposes of Subsection [
1219 (i) apartment; or
1220 (ii) other individual dwelling unit.
1221 [
1222 sleeping quarters, and similar facilities or accommodations.
1223 [
1224
1225
1226 [
1227
1228 [
1229 other than:
1230 (a) resale;
1231 (b) sublease; or
1232 (c) subrent.
1233 (113) (a) "Retailer" means any person, unless prohibited by the Constitution of the
1234 United States or federal law, that is engaged in a regularly organized business in tangible
1235 personal property or any other taxable transaction under Subsection 59-12-103(1), and who is
1236 selling to the user or consumer and not for resale.
1237 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1238 engaged in the business of selling to users or consumers within the state.
1239 [
1240 otherwise, in any manner, of tangible personal property or any other taxable transaction under
1241 Subsection 59-12-103(1), for consideration.
1242 (b) "Sale" includes:
1243 (i) installment and credit sales;
1244 (ii) any closed transaction constituting a sale;
1245 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1246 chapter;
1247 (iv) any transaction if the possession of property is transferred but the seller retains the
1248 title as security for the payment of the price; and
1249 (v) any transaction under which right to possession, operation, or use of any article of
1250 tangible personal property is granted under a lease or contract and the transfer of possession
1251 would be taxable if an outright sale were made.
1252 [
1253 [
1254 [
1255 tangible personal property or a product transferred electronically that is subject to a tax under
1256 this chapter is transferred:
1257 (a) by a purchaser-lessee;
1258 (b) to a lessor;
1259 (c) for consideration; and
1260 (d) if:
1261 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1262 of the tangible personal property or product transferred electronically;
1263 (ii) the sale of the tangible personal property or product transferred electronically to the
1264 lessor is intended as a form of financing:
1265 (A) for the tangible personal property or product transferred electronically; and
1266 (B) to the purchaser-lessee; and
1267 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1268 is required to:
1269 (A) capitalize the tangible personal property or product transferred electronically for
1270 financial reporting purposes; and
1271 (B) account for the lease payments as payments made under a financing arrangement.
1272 [
1273 (103).
1274 [
1275 paid to, or amounts charged by a school:
1276 (i) sales that are directly related to the school's educational functions or activities
1277 including:
1278 (A) the sale of:
1279 (I) textbooks;
1280 (II) textbook fees;
1281 (III) laboratory fees;
1282 (IV) laboratory supplies; or
1283 (V) safety equipment;
1284 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1285 that:
1286 (I) a student is specifically required to wear as a condition of participation in a
1287 school-related event or school-related activity; and
1288 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1289 place of ordinary clothing;
1290 (C) sales of the following if the net or gross revenues generated by the sales are
1291 deposited into a school district fund or school fund dedicated to school meals:
1292 (I) food and food ingredients; or
1293 (II) prepared food; or
1294 (D) transportation charges for official school activities; or
1295 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1296 event or school-related activity.
1297 (b) "Sales relating to schools" does not include:
1298 (i) bookstore sales of items that are not educational materials or supplies;
1299 (ii) except as provided in Subsection [
1300 (A) clothing;
1301 (B) clothing accessories or equipment;
1302 (C) protective equipment; or
1303 (D) sports or recreational equipment; or
1304 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1305 event or school-related activity if the amounts paid or charged are passed through to a person:
1306 (A) other than a:
1307 (I) school;
1308 (II) nonprofit organization authorized by a school board or a governing body of a
1309 private school to organize and direct a competitive secondary school activity; or
1310 (III) nonprofit association authorized by a school board or a governing body of a
1311 private school to organize and direct a competitive secondary school activity; and
1312 (B) that is required to collect sales and use taxes under this chapter.
1313 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1314 commission may make rules defining the term "passed through."
1315 [
1316 (a) means:
1317 (i) an elementary school or a secondary school that:
1318 (A) is a:
1319 (I) public school; or
1320 (II) private school; and
1321 (B) provides instruction for one or more grades kindergarten through 12; or
1322 (ii) a public school district; and
1323 (b) includes the Electronic High School as defined in Section 53E-10-601.
1324 [
1325 [
1326 [
1327 [
1328 (b) "Seller" includes a marketplace facilitator.
1329 [
1330 materials" means tangible personal property or a product transferred electronically if the
1331 tangible personal property or product transferred electronically is:
1332 (i) used primarily in the process of:
1333 (A) (I) manufacturing a semiconductor;
1334 (II) fabricating a semiconductor; or
1335 (III) research or development of a:
1336 (Aa) semiconductor; or
1337 (Bb) semiconductor manufacturing process; or
1338 (B) maintaining an environment suitable for a semiconductor; or
1339 (ii) consumed primarily in the process of:
1340 (A) (I) manufacturing a semiconductor;
1341 (II) fabricating a semiconductor; or
1342 (III) research or development of a:
1343 (Aa) semiconductor; or
1344 (Bb) semiconductor manufacturing process; or
1345 (B) maintaining an environment suitable for a semiconductor.
1346 (b) "Semiconductor fabricating, processing, research, or development materials"
1347 includes:
1348 (i) parts used in the repairs or renovations of tangible personal property or a product
1349 transferred electronically described in Subsection [
1350 (ii) a chemical, catalyst, or other material used to:
1351 (A) produce or induce in a semiconductor a:
1352 (I) chemical change; or
1353 (II) physical change;
1354 (B) remove impurities from a semiconductor; or
1355 (C) improve the marketable condition of a semiconductor.
1356 [
1357 providing services to the aged as defined in Section 62A-3-101.
1358 [
1359 consumable" means tangible personal property that:
1360 (i) a business that provides accommodations and services described in Subsection
1361 59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
1362 to a purchaser;
1363 (ii) is intended to be consumed by the purchaser; and
1364 (iii) is:
1365 (A) included in the purchase price of the accommodations and services; and
1366 (B) not separately stated on an invoice, bill of sale, or other similar document provided
1367 to the purchaser.
1368 (b) "Short-term lodging consumable" includes:
1369 (i) a beverage;
1370 (ii) a brush or comb;
1371 (iii) a cosmetic;
1372 (iv) a hair care product;
1373 (v) lotion;
1374 (vi) a magazine;
1375 (vii) makeup;
1376 (viii) a meal;
1377 (ix) mouthwash;
1378 (x) nail polish remover;
1379 (xi) a newspaper;
1380 (xii) a notepad;
1381 (xiii) a pen;
1382 (xiv) a pencil;
1383 (xv) a razor;
1384 (xvi) saline solution;
1385 (xvii) a sewing kit;
1386 (xviii) shaving cream;
1387 (xix) a shoe shine kit;
1388 (xx) a shower cap;
1389 (xxi) a snack item;
1390 (xxii) soap;
1391 (xxiii) toilet paper;
1392 (xxiv) a toothbrush;
1393 (xxv) toothpaste; or
1394 (xxvi) an item similar to Subsections [
1395 commission may provide by rule made in accordance with Title 63G, Chapter 3, Utah
1396 Administrative Rulemaking Act.
1397 (c) "Short-term lodging consumable" does not include:
1398 (i) tangible personal property that is cleaned or washed to allow the tangible personal
1399 property to be reused; or
1400 (ii) a product transferred electronically.
1401 [
1402 (a) described in Section 318(C) of the agreement; and
1403 (b) approved by the governing board of the agreement.
1404 [
1405 producing electricity.
1406 [
1407 (i) designed for human use; and
1408 (ii) that is:
1409 (A) worn in conjunction with:
1410 (I) an athletic activity; or
1411 (II) a recreational activity; and
1412 (B) not suitable for general use.
1413 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1414 commission shall make rules:
1415 (i) listing the items that constitute "sports or recreational equipment"; and
1416 (ii) that are consistent with the list of items that constitute "sports or recreational
1417 equipment" under the agreement.
1418 [
1419 [
1420 any other taxable transaction under Subsection 59-12-103(1), in this state for any purpose
1421 except sale in the regular course of business.
1422 [
1423 personal property" means personal property that:
1424 (i) may be:
1425 (A) seen;
1426 (B) weighed;
1427 (C) measured;
1428 (D) felt; or
1429 (E) touched; or
1430 (ii) is in any manner perceptible to the senses.
1431 (b) "Tangible personal property" includes:
1432 (i) electricity;
1433 (ii) water;
1434 (iii) gas;
1435 (iv) steam; or
1436 (v) prewritten computer software, regardless of the manner in which the prewritten
1437 computer software is transferred.
1438 (c) "Tangible personal property" includes the following regardless of whether the item
1439 is attached to real property:
1440 (i) a dishwasher;
1441 (ii) a dryer;
1442 (iii) a freezer;
1443 (iv) a microwave;
1444 (v) a refrigerator;
1445 (vi) a stove;
1446 (vii) a washer; or
1447 (viii) an item similar to Subsections [
1448 the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1449 Rulemaking Act.
1450 (d) "Tangible personal property" does not include a product that is transferred
1451 electronically.
1452 (e) "Tangible personal property" does not include the following if attached to real
1453 property, regardless of whether the attachment to real property is only through a line that
1454 supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1455 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1456 Rulemaking Act:
1457 (i) a hot water heater;
1458 (ii) a water filtration system; or
1459 (iii) a water softener system.
1460 [
1461 or software" means an item listed in Subsection [
1462 leased primarily to enable or facilitate one or more of the following to function:
1463 (i) telecommunications switching or routing equipment, machinery, or software; or
1464 (ii) telecommunications transmission equipment, machinery, or software.
1465 (b) The following apply to Subsection [
1466 (i) a pole;
1467 (ii) software;
1468 (iii) a supplementary power supply;
1469 (iv) temperature or environmental equipment or machinery;
1470 (v) test equipment;
1471 (vi) a tower; or
1472 (vii) equipment, machinery, or software that functions similarly to an item listed in
1473 Subsections [
1474 accordance with Subsection [
1475 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1476 commission may by rule define what constitutes equipment, machinery, or software that
1477 functions similarly to an item listed in Subsections [
1478 [
1479 911 service" means equipment, machinery, or software that is required to comply with 47
1480 C.F.R. Sec. 20.18.
1481 [
1482 software" means equipment, machinery, or software purchased or leased primarily to maintain
1483 or repair one or more of the following, regardless of whether the equipment, machinery, or
1484 software is purchased or leased as a spare part or as an upgrade or modification to one or more
1485 of the following:
1486 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1487 (b) telecommunications switching or routing equipment, machinery, or software; or
1488 (c) telecommunications transmission equipment, machinery, or software.
1489 [
1490 routing, or transmission of audio, data, video, voice, or any other information or signal to a
1491 point, or among or between points.
1492 (b) "Telecommunications service" includes:
1493 (i) an electronic conveyance, routing, or transmission with respect to which a computer
1494 processing application is used to act:
1495 (A) on the code, form, or protocol of the content;
1496 (B) for the purpose of electronic conveyance, routing, or transmission; and
1497 (C) regardless of whether the service:
1498 (I) is referred to as voice over Internet protocol service; or
1499 (II) is classified by the Federal Communications Commission as enhanced or value
1500 added;
1501 (ii) an 800 service;
1502 (iii) a 900 service;
1503 (iv) a fixed wireless service;
1504 (v) a mobile wireless service;
1505 (vi) a postpaid calling service;
1506 (vii) a prepaid calling service;
1507 (viii) a prepaid wireless calling service; or
1508 (ix) a private communications service.
1509 (c) "Telecommunications service" does not include:
1510 (i) advertising, including directory advertising;
1511 (ii) an ancillary service;
1512 (iii) a billing and collection service provided to a third party;
1513 (iv) a data processing and information service if:
1514 (A) the data processing and information service allows data to be:
1515 (I) (Aa) acquired;
1516 (Bb) generated;
1517 (Cc) processed;
1518 (Dd) retrieved; or
1519 (Ee) stored; and
1520 (II) delivered by an electronic transmission to a purchaser; and
1521 (B) the purchaser's primary purpose for the underlying transaction is the processed data
1522 or information;
1523 (v) installation or maintenance of the following on a customer's premises:
1524 (A) equipment; or
1525 (B) wiring;
1526 (vi) Internet access service;
1527 (vii) a paging service;
1528 (viii) a product transferred electronically, including:
1529 (A) music;
1530 (B) reading material;
1531 (C) a ring tone;
1532 (D) software; or
1533 (E) video;
1534 (ix) a radio and television audio and video programming service:
1535 (A) regardless of the medium; and
1536 (B) including:
1537 (I) furnishing conveyance, routing, or transmission of a television audio and video
1538 programming service by a programming service provider;
1539 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1540 (III) audio and video programming services delivered by a commercial mobile radio
1541 service provider as defined in 47 C.F.R. Sec. 20.3;
1542 (x) a value-added nonvoice data service; or
1543 (xi) tangible personal property.
1544 [
1545 (i) owns, controls, operates, or manages a telecommunications service; and
1546 (ii) engages in an activity described in Subsection [
1547 with or resale to any person of the telecommunications service.
1548 (b) A person described in Subsection [
1549 provider whether or not the Public Service Commission of Utah regulates:
1550 (i) that person; or
1551 (ii) the telecommunications service that the person owns, controls, operates, or
1552 manages.
1553 [
1554 software" means an item listed in Subsection [
1555 leased primarily for switching or routing:
1556 (i) an ancillary service;
1557 (ii) data communications;
1558 (iii) voice communications; or
1559 (iv) telecommunications service.
1560 (b) The following apply to Subsection [
1561 (i) a bridge;
1562 (ii) a computer;
1563 (iii) a cross connect;
1564 (iv) a modem;
1565 (v) a multiplexer;
1566 (vi) plug in circuitry;
1567 (vii) a router;
1568 (viii) software;
1569 (ix) a switch; or
1570 (x) equipment, machinery, or software that functions similarly to an item listed in
1571 Subsections [
1572 accordance with Subsection [
1573 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1574 commission may by rule define what constitutes equipment, machinery, or software that
1575 functions similarly to an item listed in Subsections [
1576 [
1577 software" means an item listed in Subsection [
1578 leased primarily for sending, receiving, or transporting:
1579 (i) an ancillary service;
1580 (ii) data communications;
1581 (iii) voice communications; or
1582 (iv) telecommunications service.
1583 (b) The following apply to Subsection [
1584 (i) an amplifier;
1585 (ii) a cable;
1586 (iii) a closure;
1587 (iv) a conduit;
1588 (v) a controller;
1589 (vi) a duplexer;
1590 (vii) a filter;
1591 (viii) an input device;
1592 (ix) an input/output device;
1593 (x) an insulator;
1594 (xi) microwave machinery or equipment;
1595 (xii) an oscillator;
1596 (xiii) an output device;
1597 (xiv) a pedestal;
1598 (xv) a power converter;
1599 (xvi) a power supply;
1600 (xvii) a radio channel;
1601 (xviii) a radio receiver;
1602 (xix) a radio transmitter;
1603 (xx) a repeater;
1604 (xxi) software;
1605 (xxii) a terminal;
1606 (xxiii) a timing unit;
1607 (xxiv) a transformer;
1608 (xxv) a wire; or
1609 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1610 Subsections [
1611 accordance with Subsection [
1612 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1613 commission may by rule define what constitutes equipment, machinery, or software that
1614 functions similarly to an item listed in Subsections [
1615 [
1616 printed material that is required for a course:
1617 (i) offered by an institution of higher education; and
1618 (ii) that the purchaser of the textbook or other printed material attends or will attend.
1619 (b) "Textbook for a higher education course" includes a textbook in electronic format.
1620 [
1621 (a) a cigarette;
1622 (b) a cigar;
1623 (c) chewing tobacco;
1624 (d) pipe tobacco; or
1625 (e) any other item that contains tobacco.
1626 [
1627 device, or ride device that is started and stopped by the purchaser or renter of the right to use or
1628 operate the amusement device, skill device, or ride device.
1629 [
1630 property, a product transferred electronically, or a service under Subsection 59-12-103(1),
1631 incident to the ownership or the leasing of that tangible personal property, product transferred
1632 electronically, or service.
1633 (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1634 property, a product transferred electronically, or a service in the regular course of business and
1635 held for resale.
1636 [
1637 (a) that otherwise meets the definition of a telecommunications service except that a
1638 computer processing application is used to act primarily for a purpose other than conveyance,
1639 routing, or transmission; and
1640 (b) with respect to which a computer processing application is used to act on data or
1641 information:
1642 (i) code;
1643 (ii) content;
1644 (iii) form; or
1645 (iv) protocol.
1646 [
1647 that are required to be titled, registered, or titled and registered:
1648 (i) an aircraft as defined in Section 72-10-102;
1649 (ii) a vehicle as defined in Section 41-1a-102;
1650 (iii) an off-highway vehicle as defined in Section 41-22-2; or
1651 (iv) a vessel as defined in Section 41-1a-102.
1652 (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
1653 (i) a vehicle described in Subsection [
1654 (ii) (A) a locomotive;
1655 (B) a freight car;
1656 (C) railroad work equipment; or
1657 (D) other railroad rolling stock.
1658 [
1659 selling, or exchanging a vehicle as defined in Subsection [
1660 [
1661 (i) is offered in connection with one or more telecommunications services; and
1662 (ii) offers an advanced calling feature that allows a customer to:
1663 (A) identify a caller; and
1664 (B) manage multiple calls and call connections.
1665 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1666 conference bridging service.
1667 [
1668 customer to receive, send, or store a recorded message.
1669 (b) "Voice mail service" does not include a vertical service that a customer is required
1670 to have in order to utilize a voice mail service.
1671 [
1672 facility" means a facility that generates electricity:
1673 (i) using as the primary source of energy waste materials that would be placed in a
1674 landfill or refuse pit if it were not used to generate electricity, including:
1675 (A) tires;
1676 (B) waste coal;
1677 (C) oil shale; or
1678 (D) municipal solid waste; and
1679 (ii) in amounts greater than actually required for the operation of the facility.
1680 (b) "Waste energy facility" does not include a facility that incinerates:
1681 (i) hospital waste as defined in 40 C.F.R. 60.51c; or
1682 (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1683 [
1684 [
1685 electricity.
1686 [
1687 geographic location by the United States Postal Service.
1688 Section 2. Section 59-12-104 is amended to read:
1689 59-12-104. Exemptions.
1690 Exemptions from the taxes imposed by this chapter are as follows:
1691 (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
1692 under Chapter 13, Motor and Special Fuel Tax Act;
1693 (2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
1694 subdivisions; however, this exemption does not apply to sales of:
1695 (a) construction materials except:
1696 (i) construction materials purchased by or on behalf of institutions of the public
1697 education system as defined in Utah Constitution, Article X, Section 2, provided the
1698 construction materials are clearly identified and segregated and installed or converted to real
1699 property which is owned by institutions of the public education system; and
1700 (ii) construction materials purchased by the state, its institutions, or its political
1701 subdivisions which are installed or converted to real property by employees of the state, its
1702 institutions, or its political subdivisions; or
1703 (b) tangible personal property in connection with the construction, operation,
1704 maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or facilities
1705 providing additional project capacity, as defined in Section 11-13-103;
1706 (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
1707 (i) the proceeds of each sale do not exceed $1; and
1708 (ii) the seller or operator of the vending machine reports an amount equal to 150% of
1709 the cost of the item described in Subsection (3)(b) as goods consumed; and
1710 (b) Subsection (3)(a) applies to:
1711 (i) food and food ingredients; or
1712 (ii) prepared food;
1713 (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
1714 (i) alcoholic beverages;
1715 (ii) food and food ingredients; or
1716 (iii) prepared food;
1717 (b) sales of tangible personal property or a product transferred electronically:
1718 (i) to a passenger;
1719 (ii) by a commercial airline carrier; and
1720 (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
1721 (c) services related to Subsection (4)(a) or (b);
1722 (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
1723 and equipment:
1724 (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
1725 North American Industry Classification System of the federal Executive Office of the
1726 President, Office of Management and Budget; and
1727 (II) for:
1728 (Aa) installation in an aircraft, including services relating to the installation of parts or
1729 equipment in the aircraft;
1730 (Bb) renovation of an aircraft; or
1731 (Cc) repair of an aircraft; or
1732 (B) for installation in an aircraft operated by a common carrier in interstate or foreign
1733 commerce; or
1734 (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
1735 aircraft operated by a common carrier in interstate or foreign commerce; and
1736 (b) notwithstanding the time period of Subsection 59-1-1410(8) for filing for a refund,
1737 a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
1738 refund:
1739 (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
1740 (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
1741 (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
1742 the sale prior to filing for the refund;
1743 (iv) for sales and use taxes paid under this chapter on the sale;
1744 (v) in accordance with Section 59-1-1410; and
1745 (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410, if
1746 the person files for the refund on or before September 30, 2011;
1747 (6) sales of commercials, motion picture films, prerecorded audio program tapes or
1748 records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
1749 exhibitor, distributor, or commercial television or radio broadcaster;
1750 (7) (a) except as provided in Subsection (88) and subject to Subsection (7)(b), sales of
1751 cleaning or washing of tangible personal property if the cleaning or washing of the tangible
1752 personal property is not assisted cleaning or washing of tangible personal property;
1753 (b) if a seller that sells at the same business location assisted cleaning or washing of
1754 tangible personal property and cleaning or washing of tangible personal property that is not
1755 assisted cleaning or washing of tangible personal property, the exemption described in
1756 Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
1757 or washing of the tangible personal property; and
1758 (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
1759 Utah Administrative Rulemaking Act, the commission may make rules:
1760 (i) governing the circumstances under which sales are at the same business location;
1761 and
1762 (ii) establishing the procedures and requirements for a seller to separately account for
1763 sales of assisted cleaning or washing of tangible personal property;
1764 (8) sales made to or by religious or charitable institutions in the conduct of their regular
1765 religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
1766 fulfilled;
1767 (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
1768 this state if the vehicle is:
1769 (a) not registered in this state; and
1770 (b) (i) not used in this state; or
1771 (ii) used in this state:
1772 (A) if the vehicle is not used to conduct business, for a time period that does not
1773 exceed the longer of:
1774 (I) 30 days in any calendar year; or
1775 (II) the time period necessary to transport the vehicle to the borders of this state; or
1776 (B) if the vehicle is used to conduct business, for the time period necessary to transport
1777 the vehicle to the borders of this state;
1778 (10) (a) amounts paid for an item described in Subsection (10)(b) if:
1779 (i) the item is intended for human use; and
1780 (ii) (A) a prescription was issued for the item; or
1781 (B) the item was purchased by a hospital or other medical facility; and
1782 (b) (i) Subsection (10)(a) applies to:
1783 (A) a drug;
1784 (B) a syringe; or
1785 (C) a stoma supply; and
1786 (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1787 commission may by rule define the terms:
1788 (A) "syringe"; or
1789 (B) "stoma supply";
1790 (11) purchases or leases exempt under Section 19-12-201;
1791 (12) (a) sales of an item described in Subsection (12)(c) served by:
1792 (i) the following if the item described in Subsection (12)(c) is not available to the
1793 general public:
1794 (A) a church; or
1795 (B) a charitable institution; or
1796 (ii) an institution of higher education if:
1797 (A) the item described in Subsection (12)(c) is not available to the general public; or
1798 (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
1799 offered by the institution of higher education; or
1800 (b) sales of an item described in Subsection (12)(c) provided for a patient by:
1801 (i) a medical facility; or
1802 (ii) a nursing facility; and
1803 (c) Subsections (12)(a) and (b) apply to:
1804 (i) food and food ingredients;
1805 (ii) prepared food; or
1806 (iii) alcoholic beverages;
1807 (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
1808 or a product transferred electronically by a person:
1809 (i) regardless of the number of transactions involving the sale of that tangible personal
1810 property or product transferred electronically by that person; and
1811 (ii) not regularly engaged in the business of selling that type of tangible personal
1812 property or product transferred electronically;
1813 (b) this Subsection (13) does not apply if:
1814 (i) the sale is one of a series of sales of a character to indicate that the person is
1815 regularly engaged in the business of selling that type of tangible personal property or product
1816 transferred electronically;
1817 (ii) the person holds that person out as regularly engaged in the business of selling that
1818 type of tangible personal property or product transferred electronically;
1819 (iii) the person sells an item of tangible personal property or product transferred
1820 electronically that the person purchased as a sale that is exempt under Subsection (25); or
1821 (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
1822 this state in which case the tax is based upon:
1823 (A) the bill of sale or other written evidence of value of the vehicle or vessel being
1824 sold; or
1825 (B) in the absence of a bill of sale or other written evidence of value, the fair market
1826 value of the vehicle or vessel being sold at the time of the sale as determined by the
1827 commission; and
1828 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1829 commission shall make rules establishing the circumstances under which:
1830 (i) a person is regularly engaged in the business of selling a type of tangible personal
1831 property or product transferred electronically;
1832 (ii) a sale of tangible personal property or a product transferred electronically is one of
1833 a series of sales of a character to indicate that a person is regularly engaged in the business of
1834 selling that type of tangible personal property or product transferred electronically; or
1835 (iii) a person holds that person out as regularly engaged in the business of selling a type
1836 of tangible personal property or product transferred electronically;
1837 (14) amounts paid or charged for a purchase or lease of machinery, equipment, normal
1838 operating repair or replacement parts, or materials, except for office equipment or office
1839 supplies, by:
1840 (a) a manufacturing facility that:
1841 (i) is located in the state; and
1842 (ii) uses or consumes the machinery, equipment, normal operating repair or
1843 replacement parts, or materials:
1844 (A) in the manufacturing process to manufacture an item sold as tangible personal
1845 property, as the commission may define that phrase in accordance with Title 63G, Chapter 3,
1846 Utah Administrative Rulemaking Act; or
1847 (B) for a scrap recycler, to process an item sold as tangible personal property, as the
1848 commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
1849 Administrative Rulemaking Act;
1850 (b) an establishment, as the commission defines that term in accordance with Title
1851 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
1852 (i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
1853 Code 213113, Support Activities for Coal Mining, 213114, Support Activities for Metal
1854 Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining, of the
1855 2002 North American Industry Classification System of the federal Executive Office of the
1856 President, Office of Management and Budget;
1857 (ii) is located in the state; and
1858 (iii) uses or consumes the machinery, equipment, normal operating repair or
1859 replacement parts, or materials in:
1860 (A) the production process to produce an item sold as tangible personal property, as the
1861 commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
1862 Administrative Rulemaking Act;
1863 (B) research and development, as the commission may define that phrase in accordance
1864 with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1865 (C) transporting, storing, or managing tailings, overburden, or similar waste materials
1866 produced from mining;
1867 (D) developing or maintaining a road, tunnel, excavation, or similar feature used in
1868 mining; or
1869 (E) preventing, controlling, or reducing dust or other pollutants from mining; or
1870 (c) an establishment, as the commission defines that term in accordance with Title 63G,
1871 Chapter 3, Utah Administrative Rulemaking Act, that:
1872 (i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North
1873 American Industry Classification System of the federal Executive Office of the President,
1874 Office of Management and Budget;
1875 (ii) is located in the state; and
1876 (iii) uses or consumes the machinery, equipment, normal operating repair or
1877 replacement parts, or materials in the operation of the web search portal;
1878 (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
1879 (i) tooling;
1880 (ii) special tooling;
1881 (iii) support equipment;
1882 (iv) special test equipment; or
1883 (v) parts used in the repairs or renovations of tooling or equipment described in
1884 Subsections (15)(a)(i) through (iv); and
1885 (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
1886 (i) the tooling, equipment, or parts are used or consumed exclusively in the
1887 performance of any aerospace or electronics industry contract with the United States
1888 government or any subcontract under that contract; and
1889 (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
1890 title to the tooling, equipment, or parts is vested in the United States government as evidenced
1891 by:
1892 (A) a government identification tag placed on the tooling, equipment, or parts; or
1893 (B) listing on a government-approved property record if placing a government
1894 identification tag on the tooling, equipment, or parts is impractical;
1895 (16) sales of newspapers or newspaper subscriptions;
1896 (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
1897 product transferred electronically traded in as full or part payment of the purchase price, except
1898 that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
1899 trade-ins are limited to other vehicles only, and the tax is based upon:
1900 (i) the bill of sale or other written evidence of value of the vehicle being sold and the
1901 vehicle being traded in; or
1902 (ii) in the absence of a bill of sale or other written evidence of value, the then existing
1903 fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
1904 commission; and
1905 (b) Subsection (17)(a) does not apply to the following items of tangible personal
1906 property or products transferred electronically traded in as full or part payment of the purchase
1907 price:
1908 (i) money;
1909 (ii) electricity;
1910 (iii) water;
1911 (iv) gas; or
1912 (v) steam;
1913 (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
1914 or a product transferred electronically used or consumed primarily and directly in farming
1915 operations, regardless of whether the tangible personal property or product transferred
1916 electronically:
1917 (A) becomes part of real estate; or
1918 (B) is installed by a:
1919 (I) farmer;
1920 (II) contractor; or
1921 (III) subcontractor; or
1922 (ii) sales of parts used in the repairs or renovations of tangible personal property or a
1923 product transferred electronically if the tangible personal property or product transferred
1924 electronically is exempt under Subsection (18)(a)(i); and
1925 (b) amounts paid or charged for the following are subject to the taxes imposed by this
1926 chapter:
1927 (i) (A) subject to Subsection (18)(b)(i)(B), machinery, equipment, materials, or
1928 supplies if used in a manner that is incidental to farming; and
1929 (B) tangible personal property that is considered to be used in a manner that is
1930 incidental to farming includes:
1931 (I) hand tools; or
1932 (II) maintenance and janitorial equipment and supplies;
1933 (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
1934 transferred electronically if the tangible personal property or product transferred electronically
1935 is used in an activity other than farming; and
1936 (B) tangible personal property or a product transferred electronically that is considered
1937 to be used in an activity other than farming includes:
1938 (I) office equipment and supplies; or
1939 (II) equipment and supplies used in:
1940 (Aa) the sale or distribution of farm products;
1941 (Bb) research; or
1942 (Cc) transportation; or
1943 (iii) a vehicle required to be registered by the laws of this state during the period
1944 ending two years after the date of the vehicle's purchase;
1945 (19) sales of hay;
1946 (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
1947 garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
1948 garden, farm, or other agricultural produce is sold by:
1949 (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
1950 agricultural produce;
1951 (b) an employee of the producer described in Subsection (20)(a); or
1952 (c) a member of the immediate family of the producer described in Subsection (20)(a);
1953 (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
1954 under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
1955 (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
1956 nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
1957 wholesaler, or retailer for use in packaging tangible personal property to be sold by that
1958 manufacturer, processor, wholesaler, or retailer;
1959 (23) a product stored in the state for resale;
1960 (24) (a) purchases of a product if:
1961 (i) the product is:
1962 (A) purchased outside of this state;
1963 (B) brought into this state:
1964 (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
1965 (II) by a nonresident person who is not living or working in this state at the time of the
1966 purchase;
1967 (C) used for the personal use or enjoyment of the nonresident person described in
1968 Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
1969 (D) not used in conducting business in this state; and
1970 (ii) for:
1971 (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
1972 the product for a purpose for which the product is designed occurs outside of this state;
1973 (B) a boat, the boat is registered outside of this state; or
1974 (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
1975 outside of this state;
1976 (b) the exemption provided for in Subsection (24)(a) does not apply to:
1977 (i) a lease or rental of a product; or
1978 (ii) a sale of a vehicle exempt under Subsection (33); and
1979 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
1980 purposes of Subsection (24)(a), the commission may by rule define what constitutes the
1981 following:
1982 (i) conducting business in this state if that phrase has the same meaning in this
1983 Subsection (24) as in Subsection (63);
1984 (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
1985 as in Subsection (63); or
1986 (iii) a purpose for which a product is designed if that phrase has the same meaning in
1987 this Subsection (24) as in Subsection (63);
1988 (25) a product purchased for resale in the regular course of business, either in its
1989 original form or as an ingredient or component part of a manufactured or compounded product;
1990 (26) a product upon which a sales or use tax was paid to some other state, or one of its
1991 subdivisions, except that the state shall be paid any difference between the tax paid and the tax
1992 imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
1993 the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
1994 Act;
1995 (27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a
1996 person for use in compounding a service taxable under the subsections;
1997 (28) purchases made in accordance with the special supplemental nutrition program for
1998 women, infants, and children established in 42 U.S.C. Sec. 1786;
1999 (29) sales or leases of rolls, rollers, refractory brick, electric motors, or other
2000 replacement parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code
2001 3312 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of
2002 the President, Office of Management and Budget;
2003 (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
2004 Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
2005 (a) not registered in this state; and
2006 (b) (i) not used in this state; or
2007 (ii) used in this state:
2008 (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
2009 time period that does not exceed the longer of:
2010 (I) 30 days in any calendar year; or
2011 (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
2012 the borders of this state; or
2013 (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
2014 period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
2015 state;
2016 (31) sales of aircraft manufactured in Utah;
2017 (32) amounts paid for the purchase of telecommunications service for purposes of
2018 providing telecommunications service;
2019 (33) sales, leases, or uses of the following:
2020 (a) a vehicle by an authorized carrier; or
2021 (b) tangible personal property that is installed on a vehicle:
2022 (i) sold or leased to or used by an authorized carrier; and
2023 (ii) before the vehicle is placed in service for the first time;
2024 (34) (a) 45% of the sales price of any new manufactured home; and
2025 (b) 100% of the sales price of any used manufactured home;
2026 (35) sales relating to schools and fundraising sales;
2027 (36) sales or rentals of durable medical equipment if:
2028 (a) a person presents a prescription for the durable medical equipment; and
2029 (b) the durable medical equipment is used for home use only;
2030 (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
2031 Section 72-11-102; and
2032 (b) the commission shall by rule determine the method for calculating sales exempt
2033 under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
2034 (38) sales to a ski resort of:
2035 (a) snowmaking equipment;
2036 (b) ski slope grooming equipment;
2037 (c) passenger ropeways as defined in Section 72-11-102; or
2038 (d) parts used in the repairs or renovations of equipment or passenger ropeways
2039 described in Subsections (38)(a) through (c);
2040 (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
2041 (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
2042 amusement, entertainment, or recreation an unassisted amusement device as defined in Section
2043 59-12-102;
2044 (b) if a seller that sells or rents at the same business location the right to use or operate
2045 for amusement, entertainment, or recreation one or more unassisted amusement devices and
2046 one or more assisted amusement devices, the exemption described in Subsection (40)(a)
2047 applies if the seller separately accounts for the sales or rentals of the right to use or operate for
2048 amusement, entertainment, or recreation for the assisted amusement devices; and
2049 (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
2050 Utah Administrative Rulemaking Act, the commission may make rules:
2051 (i) governing the circumstances under which sales are at the same business location;
2052 and
2053 (ii) establishing the procedures and requirements for a seller to separately account for
2054 the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
2055 assisted amusement devices;
2056 (41) (a) sales of photocopies by:
2057 (i) a governmental entity; or
2058 (ii) an entity within the state system of public education, including:
2059 (A) a school; or
2060 (B) the State Board of Education; or
2061 (b) sales of publications by a governmental entity;
2062 (42) amounts paid for admission to an athletic event at an institution of higher
2063 education that is subject to the provisions of Title IX of the Education Amendments of 1972,
2064 20 U.S.C. Sec. 1681 et seq.;
2065 (43) (a) sales made to or by:
2066 (i) an area agency on aging; or
2067 (ii) a senior citizen center owned by a county, city, or town; or
2068 (b) sales made by a senior citizen center that contracts with an area agency on aging;
2069 (44) sales or leases of semiconductor fabricating, processing, research, or development
2070 materials regardless of whether the semiconductor fabricating, processing, research, or
2071 development materials:
2072 (a) actually come into contact with a semiconductor; or
2073 (b) ultimately become incorporated into real property;
2074 (45) an amount paid by or charged to a purchaser for accommodations and services
2075 described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under Section
2076 59-12-104.2;
2077 (46) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
2078 sports event registration certificate in accordance with Section 41-3-306 for the event period
2079 specified on the temporary sports event registration certificate;
2080 (47) (a) sales or uses of electricity, if the sales or uses are made under a retail tariff
2081 adopted by the Public Service Commission only for purchase of electricity produced from a
2082 new alternative energy source built after January 1, 2016, as designated in the tariff by the
2083 Public Service Commission; and
2084 (b) for a residential use customer only, the exemption under Subsection (47)(a) applies
2085 only to the portion of the tariff rate a customer pays under the tariff described in Subsection
2086 (47)(a) that exceeds the tariff rate under the tariff described in Subsection (47)(a) that the
2087 customer would have paid absent the tariff;
2088 (48) sales or rentals of mobility enhancing equipment if a person presents a
2089 prescription for the mobility enhancing equipment;
2090 (49) sales of water in a:
2091 (a) pipe;
2092 (b) conduit;
2093 (c) ditch; or
2094 (d) reservoir;
2095 (50) sales of currency or coins that constitute legal tender of a state, the United States,
2096 or a foreign nation;
2097 (51) (a) sales of an item described in Subsection (51)(b) if the item:
2098 (i) does not constitute legal tender of a state, the United States, or a foreign nation; and
2099 (ii) has a gold, silver, or platinum content of 50% or more; and
2100 (b) Subsection (51)(a) applies to a gold, silver, or platinum:
2101 (i) ingot;
2102 (ii) bar;
2103 (iii) medallion; or
2104 (iv) decorative coin;
2105 (52) amounts paid on a sale-leaseback transaction;
2106 (53) sales of a prosthetic device:
2107 (a) for use on or in a human; and
2108 (b) (i) for which a prescription is required; or
2109 (ii) if the prosthetic device is purchased by a hospital or other medical facility;
2110 (54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
2111 machinery or equipment by an establishment described in Subsection (54)(c) if the machinery
2112 or equipment is primarily used in the production or postproduction of the following media for
2113 commercial distribution:
2114 (i) a motion picture;
2115 (ii) a television program;
2116 (iii) a movie made for television;
2117 (iv) a music video;
2118 (v) a commercial;
2119 (vi) a documentary; or
2120 (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
2121 commission by administrative rule made in accordance with Subsection (54)(d); or
2122 (b) purchases, leases, or rentals of machinery or equipment by an establishment
2123 described in Subsection (54)(c) that is used for the production or postproduction of the
2124 following are subject to the taxes imposed by this chapter:
2125 (i) a live musical performance;
2126 (ii) a live news program; or
2127 (iii) a live sporting event;
2128 (c) the following establishments listed in the 1997 North American Industry
2129 Classification System of the federal Executive Office of the President, Office of Management
2130 and Budget, apply to Subsections (54)(a) and (b):
2131 (i) NAICS Code 512110; or
2132 (ii) NAICS Code 51219; and
2133 (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2134 commission may by rule:
2135 (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
2136 or
2137 (ii) define:
2138 (A) "commercial distribution";
2139 (B) "live musical performance";
2140 (C) "live news program"; or
2141 (D) "live sporting event";
2142 (55) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
2143 on or before June 30, 2027, of tangible personal property that:
2144 (i) is leased or purchased for or by a facility that:
2145 (A) is an alternative energy electricity production facility;
2146 (B) is located in the state; and
2147 (C) (I) becomes operational on or after July 1, 2004; or
2148 (II) has its generation capacity increased by one or more megawatts on or after July 1,
2149 2004, as a result of the use of the tangible personal property;
2150 (ii) has an economic life of five or more years; and
2151 (iii) is used to make the facility or the increase in capacity of the facility described in
2152 Subsection (55)(a)(i) operational up to the point of interconnection with an existing
2153 transmission grid including:
2154 (A) a wind turbine;
2155 (B) generating equipment;
2156 (C) a control and monitoring system;
2157 (D) a power line;
2158 (E) substation equipment;
2159 (F) lighting;
2160 (G) fencing;
2161 (H) pipes; or
2162 (I) other equipment used for locating a power line or pole; and
2163 (b) this Subsection (55) does not apply to:
2164 (i) tangible personal property used in construction of:
2165 (A) a new alternative energy electricity production facility; or
2166 (B) the increase in the capacity of an alternative energy electricity production facility;
2167 (ii) contracted services required for construction and routine maintenance activities;
2168 and
2169 (iii) unless the tangible personal property is used or acquired for an increase in capacity
2170 of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal property used or
2171 acquired after:
2172 (A) the alternative energy electricity production facility described in Subsection
2173 (55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
2174 (B) the increased capacity described in Subsection (55)(a)(i) is operational as described
2175 in Subsection (55)(a)(iii);
2176 (56) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
2177 on or before June 30, 2027, of tangible personal property that:
2178 (i) is leased or purchased for or by a facility that:
2179 (A) is a waste energy production facility;
2180 (B) is located in the state; and
2181 (C) (I) becomes operational on or after July 1, 2004; or
2182 (II) has its generation capacity increased by one or more megawatts on or after July 1,
2183 2004, as a result of the use of the tangible personal property;
2184 (ii) has an economic life of five or more years; and
2185 (iii) is used to make the facility or the increase in capacity of the facility described in
2186 Subsection (56)(a)(i) operational up to the point of interconnection with an existing
2187 transmission grid including:
2188 (A) generating equipment;
2189 (B) a control and monitoring system;
2190 (C) a power line;
2191 (D) substation equipment;
2192 (E) lighting;
2193 (F) fencing;
2194 (G) pipes; or
2195 (H) other equipment used for locating a power line or pole; and
2196 (b) this Subsection (56) does not apply to:
2197 (i) tangible personal property used in construction of:
2198 (A) a new waste energy facility; or
2199 (B) the increase in the capacity of a waste energy facility;
2200 (ii) contracted services required for construction and routine maintenance activities;
2201 and
2202 (iii) unless the tangible personal property is used or acquired for an increase in capacity
2203 described in Subsection (56)(a)(i)(C)(II), tangible personal property used or acquired after:
2204 (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
2205 described in Subsection (56)(a)(iii); or
2206 (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
2207 in Subsection (56)(a)(iii);
2208 (57) (a) leases of five or more years or purchases made on or after July 1, 2004, but on
2209 or before June 30, 2027, of tangible personal property that:
2210 (i) is leased or purchased for or by a facility that:
2211 (A) is located in the state;
2212 (B) produces fuel from alternative energy, including:
2213 (I) methanol; or
2214 (II) ethanol; and
2215 (C) (I) becomes operational on or after July 1, 2004; or
2216 (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as
2217 a result of the installation of the tangible personal property;
2218 (ii) has an economic life of five or more years; and
2219 (iii) is installed on the facility described in Subsection (57)(a)(i);
2220 (b) this Subsection (57) does not apply to:
2221 (i) tangible personal property used in construction of:
2222 (A) a new facility described in Subsection (57)(a)(i); or
2223 (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
2224 (ii) contracted services required for construction and routine maintenance activities;
2225 and
2226 (iii) unless the tangible personal property is used or acquired for an increase in capacity
2227 described in Subsection (57)(a)(i)(C)(II), tangible personal property used or acquired after:
2228 (A) the facility described in Subsection (57)(a)(i) is operational; or
2229 (B) the increased capacity described in Subsection (57)(a)(i) is operational;
2230 (58) (a) subject to Subsection (58)(b) or (c), sales of tangible personal property or a
2231 product transferred electronically to a person within this state if that tangible personal property
2232 or product transferred electronically is subsequently shipped outside the state and incorporated
2233 pursuant to contract into and becomes a part of real property located outside of this state;
2234 (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
2235 state or political entity to which the tangible personal property is shipped imposes a sales, use,
2236 gross receipts, or other similar transaction excise tax on the transaction against which the other
2237 state or political entity allows a credit for sales and use taxes imposed by this chapter; and
2238 (c) notwithstanding the time period of Subsection 59-1-1410(8) for filing for a refund,
2239 a person may claim the exemption allowed by this Subsection (58) for a sale by filing for a
2240 refund:
2241 (i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
2242 (ii) as if this Subsection (58) as in effect on July 1, 2008, were in effect on the day on
2243 which the sale is made;
2244 (iii) if the person did not claim the exemption allowed by this Subsection (58) for the
2245 sale prior to filing for the refund;
2246 (iv) for sales and use taxes paid under this chapter on the sale;
2247 (v) in accordance with Section 59-1-1410; and
2248 (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410, if
2249 the person files for the refund on or before June 30, 2011;
2250 (59) purchases:
2251 (a) of one or more of the following items in printed or electronic format:
2252 (i) a list containing information that includes one or more:
2253 (A) names; or
2254 (B) addresses; or
2255 (ii) a database containing information that includes one or more:
2256 (A) names; or
2257 (B) addresses; and
2258 (b) used to send direct mail;
2259 (60) redemptions or repurchases of a product by a person if that product was:
2260 (a) delivered to a pawnbroker as part of a pawn transaction; and
2261 (b) redeemed or repurchased within the time period established in a written agreement
2262 between the person and the pawnbroker for redeeming or repurchasing the product;
2263 (61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
2264 (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
2265 and
2266 (ii) has a useful economic life of one or more years; and
2267 (b) the following apply to Subsection (61)(a):
2268 (i) telecommunications enabling or facilitating equipment, machinery, or software;
2269 (ii) telecommunications equipment, machinery, or software required for 911 service;
2270 (iii) telecommunications maintenance or repair equipment, machinery, or software;
2271 (iv) telecommunications switching or routing equipment, machinery, or software; or
2272 (v) telecommunications transmission equipment, machinery, or software;
2273 (62) (a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
2274 personal property or a product transferred electronically that are used in the research and
2275 development of alternative energy technology; and
2276 (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2277 commission may, for purposes of Subsection (62)(a), make rules defining what constitutes
2278 purchases of tangible personal property or a product transferred electronically that are used in
2279 the research and development of alternative energy technology;
2280 (63) (a) purchases of tangible personal property or a product transferred electronically
2281 if:
2282 (i) the tangible personal property or product transferred electronically is:
2283 (A) purchased outside of this state;
2284 (B) brought into this state at any time after the purchase described in Subsection
2285 (63)(a)(i)(A); and
2286 (C) used in conducting business in this state; and
2287 (ii) for:
2288 (A) tangible personal property or a product transferred electronically other than the
2289 tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property
2290 for a purpose for which the property is designed occurs outside of this state; or
2291 (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
2292 outside of this state;
2293 (b) the exemption provided for in Subsection (63)(a) does not apply to:
2294 (i) a lease or rental of tangible personal property or a product transferred electronically;
2295 or
2296 (ii) a sale of a vehicle exempt under Subsection (33); and
2297 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
2298 purposes of Subsection (63)(a), the commission may by rule define what constitutes the
2299 following:
2300 (i) conducting business in this state if that phrase has the same meaning in this
2301 Subsection (63) as in Subsection (24);
2302 (ii) the first use of tangible personal property or a product transferred electronically if
2303 that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
2304 (iii) a purpose for which tangible personal property or a product transferred
2305 electronically is designed if that phrase has the same meaning in this Subsection (63) as in
2306 Subsection (24);
2307 (64) sales of disposable home medical equipment or supplies if:
2308 (a) a person presents a prescription for the disposable home medical equipment or
2309 supplies;
2310 (b) the disposable home medical equipment or supplies are used exclusively by the
2311 person to whom the prescription described in Subsection (64)(a) is issued; and
2312 (c) the disposable home medical equipment and supplies are listed as eligible for
2313 payment under:
2314 (i) Title XVIII, federal Social Security Act; or
2315 (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
2316 (65) sales:
2317 (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
2318 District Act; or
2319 (b) of tangible personal property to a subcontractor of a public transit district, if the
2320 tangible personal property is:
2321 (i) clearly identified; and
2322 (ii) installed or converted to real property owned by the public transit district;
2323 (66) sales of construction materials:
2324 (a) purchased on or after July 1, 2010;
2325 (b) purchased by, on behalf of, or for the benefit of an international airport:
2326 (i) located within a county of the first class; and
2327 (ii) that has a United States customs office on its premises; and
2328 (c) if the construction materials are:
2329 (i) clearly identified;
2330 (ii) segregated; and
2331 (iii) installed or converted to real property:
2332 (A) owned or operated by the international airport described in Subsection (66)(b); and
2333 (B) located at the international airport described in Subsection (66)(b);
2334 (67) sales of construction materials:
2335 (a) purchased on or after July 1, 2008;
2336 (b) purchased by, on behalf of, or for the benefit of a new airport:
2337 (i) located within a county of the second class; and
2338 (ii) that is owned or operated by a city in which an airline as defined in Section
2339 59-2-102 is headquartered; and
2340 (c) if the construction materials are:
2341 (i) clearly identified;
2342 (ii) segregated; and
2343 (iii) installed or converted to real property:
2344 (A) owned or operated by the new airport described in Subsection (67)(b);
2345 (B) located at the new airport described in Subsection (67)(b); and
2346 (C) as part of the construction of the new airport described in Subsection (67)(b);
2347 (68) sales of fuel to a common carrier that is a railroad for use in a locomotive engine;
2348 (69) purchases and sales described in Section 63H-4-111;
2349 (70) (a) sales of tangible personal property to an aircraft maintenance, repair, and
2350 overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
2351 a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
2352 lists a state or country other than this state as the location of registry of the fixed wing turbine
2353 powered aircraft; or
2354 (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
2355 provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
2356 a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
2357 lists a state or country other than this state as the location of registry of the fixed wing turbine
2358 powered aircraft;
2359 (71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
2360 (a) to a person admitted to an institution of higher education; and
2361 (b) by a seller, other than a bookstore owned by an institution of higher education, if
2362 51% or more of that seller's sales revenue for the previous calendar quarter are sales of a
2363 textbook for a higher education course;
2364 (72) a license fee or tax a municipality imposes in accordance with Subsection
2365 10-1-203(5) on a purchaser from a business for which the municipality provides an enhanced
2366 level of municipal services;
2367 (73) amounts paid or charged for construction materials used in the construction of a
2368 new or expanding life science research and development facility in the state, if the construction
2369 materials are:
2370 (a) clearly identified;
2371 (b) segregated; and
2372 (c) installed or converted to real property;
2373 (74) amounts paid or charged for:
2374 (a) a purchase or lease of machinery and equipment that:
2375 (i) are used in performing qualified research:
2376 (A) as defined in Section 41(d), Internal Revenue Code; and
2377 (B) in the state; and
2378 (ii) have an economic life of three or more years; and
2379 (b) normal operating repair or replacement parts:
2380 (i) for the machinery and equipment described in Subsection (74)(a); and
2381 (ii) that have an economic life of three or more years;
2382 (75) a sale or lease of tangible personal property used in the preparation of prepared
2383 food if:
2384 (a) for a sale:
2385 (i) the ownership of the seller and the ownership of the purchaser are identical; and
2386 (ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
2387 tangible personal property prior to making the sale; or
2388 (b) for a lease:
2389 (i) the ownership of the lessor and the ownership of the lessee are identical; and
2390 (ii) the lessor or the lessee paid a tax under this chapter on the purchase of that tangible
2391 personal property prior to making the lease;
2392 (76) (a) purchases of machinery or equipment if:
2393 (i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
2394 Gambling, and Recreation Industries, of the 2012 North American Industry Classification
2395 System of the federal Executive Office of the President, Office of Management and Budget;
2396 (ii) the machinery or equipment:
2397 (A) has an economic life of three or more years; and
2398 (B) is used by one or more persons who pay admission or user fees described in
2399 Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment; and
2400 (iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
2401 (A) amounts paid or charged as admission or user fees described in Subsection
2402 59-12-103(1)(f); and
2403 (B) subject to taxation under this chapter; and
2404 (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2405 commission may make rules for verifying that 51% of a purchaser's sales revenue for the
2406 previous calendar quarter is:
2407 (i) amounts paid or charged as admission or user fees described in Subsection
2408 59-12-103(1)(f); and
2409 (ii) subject to taxation under this chapter;
2410 (77) purchases of a short-term lodging consumable by a business that provides
2411 accommodations and services described in Subsection 59-12-103(1)(i);
2412 (78) amounts paid or charged to access a database:
2413 (a) if the primary purpose for accessing the database is to view or retrieve information
2414 from the database; and
2415 (b) not including amounts paid or charged for a:
2416 (i) digital audiowork;
2417 (ii) digital audio-visual work; or
2418 (iii) digital book;
2419 (79) amounts paid or charged for a purchase or lease made by an electronic financial
2420 payment service, of:
2421 (a) machinery and equipment that:
2422 (i) are used in the operation of the electronic financial payment service; and
2423 (ii) have an economic life of three or more years; and
2424 (b) normal operating repair or replacement parts that:
2425 (i) are used in the operation of the electronic financial payment service; and
2426 (ii) have an economic life of three or more years;
2427 (80) beginning on April 1, 2013, sales of a fuel cell as defined in Section 54-15-102;
2428 (81) amounts paid or charged for a purchase or lease of tangible personal property or a
2429 product transferred electronically if the tangible personal property or product transferred
2430 electronically:
2431 (a) is stored, used, or consumed in the state; and
2432 (b) is temporarily brought into the state from another state:
2433 (i) during a disaster period as defined in Section 53-2a-1202;
2434 (ii) by an out-of-state business as defined in Section 53-2a-1202;
2435 (iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
2436 (iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
2437 (82) sales of goods and services at a morale, welfare, and recreation facility, as defined
2438 in Section 39-9-102, made pursuant to Title 39, Chapter 9, State Morale, Welfare, and
2439 Recreation Program;
2440 (83) amounts paid or charged for a purchase or lease of molten magnesium;
2441 (84) amounts paid or charged for a purchase or lease made by a qualifying enterprise
2442 data center of machinery, equipment, or normal operating repair or replacement parts, if the
2443 machinery, equipment, or normal operating repair or replacement parts:
2444 (a) are used in the operation of the establishment; and
2445 (b) have an economic life of one or more years;
2446 (85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a
2447 vehicle that includes cleaning or washing of the interior of the vehicle;
2448 (86) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2449 operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or supplies used
2450 or consumed:
2451 (a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
2452 in Section 63M-4-701 located in the state;
2453 (b) if the machinery, equipment, normal operating repair or replacement parts,
2454 catalysts, chemicals, reagents, solutions, or supplies are used or consumed in:
2455 (i) the production process to produce gasoline or diesel fuel, or at which blendstock is
2456 added to gasoline or diesel fuel;
2457 (ii) research and development;
2458 (iii) transporting, storing, or managing raw materials, work in process, finished
2459 products, and waste materials produced from refining gasoline or diesel fuel, or adding
2460 blendstock to gasoline or diesel fuel;
2461 (iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
2462 refining; or
2463 (v) preventing, controlling, or reducing pollutants from refining; and
2464 (c) beginning on July 1, 2021, if the person has obtained a form certified by the Office
2465 of Energy Development under Subsection 63M-4-702(2);
2466 (87) amounts paid to or charged by a proprietor for accommodations and services, as
2467 defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations tax
2468 imposed under Section 63H-1-205; [
2469 (88) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2470 operating repair or replacement parts, or materials, except for office equipment or office
2471 supplies, by an establishment, as the commission defines that term in accordance with Title
2472 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
2473 (a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
2474 American Industry Classification System of the federal Executive Office of the President,
2475 Office of Management and Budget;
2476 (b) is located in this state; and
2477 (c) uses the machinery, equipment, normal operating repair or replacement parts, or
2478 materials in the operation of the establishment[
2479 (89) amounts paid or charged for an item exempt under Section 59-12-104.10.
2480 Section 3. Section 59-12-107 is amended to read:
2481 59-12-107. Definitions -- Collection, remittance, and payment of tax by sellers or
2482 other persons -- Returns -- Reports -- Direct payment by purchaser of vehicle -- Other
2483 liability for collection -- Rulemaking authority -- Credits -- Treatment of bad debt --
2484 Penalties and interest.
2485 (1) As used in this section:
2486 (a) "Ownership" means direct ownership or indirect ownership through a parent,
2487 subsidiary, or affiliate.
2488 (b) "Related seller" means a seller that:
2489 (i) meets one or more of the criteria described in Subsection (2)(a)(i); and
2490 (ii) delivers tangible personal property, a service, or a product transferred electronically
2491 that is sold:
2492 (A) by a seller that does not meet one or more of the criteria described in Subsection
2493 (2)(a)(i); and
2494 (B) to a purchaser in the state.
2495 (c) "Substantial ownership interest" means an ownership interest in a business entity if
2496 that ownership interest is greater than the degree of ownership of equity interest specified in 15
2497 U.S.C. Sec. 78p, with respect to a person other than a director or an officer.
2498 (2) (a) Except as provided in Subsection (2)(f), Section 59-12-107.1, or Section
2499 59-12-123, and subject to Subsection (2)(g), each seller shall pay or collect and remit the sales
2500 and use taxes imposed by this chapter if within this state the seller:
2501 (i) has or utilizes:
2502 (A) an office;
2503 (B) a distribution house;
2504 (C) a sales house;
2505 (D) a warehouse;
2506 (E) a service enterprise; or
2507 (F) a place of business similar to Subsections (2)(a)(i)(A) through (E);
2508 (ii) maintains a stock of goods;
2509 (iii) regularly solicits orders, regardless of whether or not the orders are accepted in the
2510 state, unless the seller's only activity in the state is:
2511 (A) advertising; or
2512 (B) solicitation by:
2513 (I) direct mail;
2514 (II) electronic mail;
2515 (III) the Internet;
2516 (IV) telecommunications service; or
2517 (V) a means similar to Subsection (2)(a)(iii)(A) or (B);
2518 (iv) regularly engages in the delivery of property in the state other than by:
2519 (A) common carrier; or
2520 (B) United States mail; or
2521 (v) regularly engages in an activity directly related to the leasing or servicing of
2522 property located within the state.
2523 (b) A seller is considered to be engaged in the business of selling tangible personal
2524 property, [
2525 shall pay or collect and remit the sales and use taxes imposed by this chapter if:
2526 (i) the seller holds a substantial ownership interest in, or is owned in whole or in
2527 substantial part by, a related seller; and
2528 (ii) (A) the seller sells the same or a substantially similar line of products as the related
2529 seller and does so under the same or a substantially similar business name; or
2530 (B) the place of business described in Subsection (2)(a)(i) of the related seller or an in
2531 state employee of the related seller is used to advertise, promote, or facilitate sales by the seller
2532 to a purchaser.
2533 (c) [
2534 of the criteria provided for in Subsection (2)(a) or is not a seller required to pay or collect and
2535 remit the sales and use taxes imposed by this chapter under Subsection (2)(b) shall pay or
2536 collect and remit the sales and use tax imposed by this chapter if the seller:
2537 (i) sells tangible personal property, products transferred electronically, or services for
2538 storage, use, or consumption in the state; and
2539 (ii) in either the previous calendar year or the current calendar year:
2540 (A) receives gross revenue from the sale of tangible personal property, [
2541 products transferred electronically, or services for storage, use, or consumption in the state of
2542 more than $100,000; or
2543 (B) sells tangible personal property, products transferred electronically, or services for
2544 storage, use, or consumption in the state in 200 or more separate transactions.
2545 (d) A seller that does not meet one or more of the criteria provided for in Subsection
2546 (2)(a) or is not a seller required to pay or collect and remit sales and use taxes under Subsection
2547 (2)(b) [
2548 (i) collect a tax on a transaction described in Subsection 59-12-103(1); and
2549 (ii) remit the tax to the commission as provided in this part.
2550 (e) The collection and remittance of a tax under this chapter by a seller that is
2551 registered under the agreement may not be used as a factor in determining whether that seller is
2552 required by this Subsection (2) to:
2553 (i) pay a tax, fee, or charge under:
2554 (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
2555 (B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
2556 (C) Section 19-6-714;
2557 (D) Section 19-6-805;
2558 (E) Title 69, Chapter 2, Part 4, 911 Emergency Service Charges; or
2559 (F) this title; or
2560 (ii) collect and remit a tax, fee, or charge under:
2561 (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
2562 (B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
2563 (C) Section 19-6-714;
2564 (D) Section 19-6-805;
2565 (E) Title 69, Chapter 2, Part 4, 911 Emergency Service Charges; or
2566 (F) this title.
2567 (f) A person shall pay a use tax imposed by this chapter on a transaction described in
2568 Subsection 59-12-103(1) if:
2569 (i) the seller did not collect a tax imposed by this chapter on the transaction; and
2570 (ii) the person:
2571 (A) stores the tangible personal property or product transferred electronically in the
2572 state;
2573 (B) uses the tangible personal property or product transferred electronically in the state;
2574 or
2575 (C) consumes the tangible personal property or product transferred electronically in the
2576 state.
2577 (g) The ownership of property that is located at the premises of a printer's facility with
2578 which the retailer has contracted for printing and that consists of the final printed product,
2579 property that becomes a part of the final printed product, or copy from which the printed
2580 product is produced, shall not result in the retailer being considered to have or maintain an
2581 office, distribution house, sales house, warehouse, service enterprise, or other place of
2582 business, or to maintain a stock of goods, within this state.
2583 (3) (a) Except as provided in Section 59-12-107.1, a seller shall collect a tax under this
2584 chapter [
2585 (b) A seller may not collect as tax an amount, without regard to fractional parts of one
2586 cent, in excess of the tax computed at the rates prescribed by this chapter.
2587 (c) (i) Each seller shall:
2588 (A) give the purchaser a receipt for the tax collected; or
2589 (B) bill the tax as a separate item and declare the name of this state and the seller's
2590 sales and use tax license number on the invoice for the sale.
2591 (ii) The receipt or invoice is prima facie evidence that the seller has collected the tax
2592 and relieves the purchaser of the liability for reporting the tax to the commission as a
2593 consumer.
2594 (d) A seller is not required to maintain a separate account for the tax collected, but is
2595 considered to be a person charged with receipt, safekeeping, and transfer of public money.
2596 (e) Taxes collected by a seller pursuant to this chapter shall be held in trust for the
2597 benefit of the state and for payment to the commission in the manner and at the time provided
2598 for in this chapter.
2599 (f) If any seller, during any reporting period, collects as a tax an amount in excess of
2600 the lawful state and local percentage of total taxable sales allowed under this chapter, the seller
2601 shall remit to the commission the full amount of the tax imposed under this chapter, plus any
2602 excess.
2603 (g) If the accounting methods regularly employed by the seller in the transaction of the
2604 seller's business are such that reports of sales made during a calendar month or quarterly period
2605 will impose unnecessary hardships, the commission may accept reports at intervals that, in the
2606 commission's opinion, will better suit the convenience of the taxpayer or seller and will not
2607 jeopardize collection of the tax.
2608 (h) (i) For a purchase paid with specie legal tender as defined in Section 59-1-1501.1,
2609 and until such time as the commission accepts specie legal tender for the payment of a tax
2610 under this chapter, if the commission requires a seller to remit a tax under this chapter in legal
2611 tender other than specie legal tender, the seller shall state on the seller's books and records and
2612 on an invoice, bill of sale, or similar document provided to the purchaser:
2613 (A) the purchase price in specie legal tender and in the legal tender the seller is
2614 required to remit to the commission;
2615 (B) subject to Subsection (3)(h)(ii), the amount of tax due under this chapter in specie
2616 legal tender and in the legal tender the seller is required to remit to the commission;
2617 (C) the tax rate under this chapter applicable to the purchase; and
2618 (D) the date of the purchase.
2619 (ii) (A) Subject to Subsection (3)(h)(ii)(B), for purposes of determining the amount of
2620 tax due under Subsection (3)(h)(i), a seller shall use the most recent London fixing price for the
2621 specie legal tender the purchaser paid.
2622 (B) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2623 commission may make rules for determining the amount of tax due under Subsection (3)(h)(i)
2624 if the London fixing price is not available for a particular day.
2625 (4) (a) Except as provided in Subsections (5) through (7) and Section 59-12-108, the
2626 sales or use tax imposed by this chapter is due and payable to the commission quarterly on or
2627 before the last day of the month next succeeding each quarterly calendar period.
2628 (b) (i) Each seller shall, on or before the last day of the month next succeeding each
2629 quarterly calendar period, file with the commission a return for the preceding quarterly period.
2630 (ii) The seller shall remit with the return under Subsection (4)(b)(i) the amount of the
2631 tax required under this chapter to be collected or paid for the period covered by the return.
2632 (c) Except as provided in Subsection (5)(c), a return shall contain information and be in
2633 a form the commission prescribes by rule.
2634 (d) (i) Subject to Subsection (4)(d)(ii), the sales tax as computed in the return shall be
2635 based on the total nonexempt sales made during the period for which the return is filed,
2636 including both cash and charge sales.
2637 (ii) For a sale that includes the delivery or installation of tangible personal property at a
2638 location other than a seller's place of business described in Subsection (2)(a)(i), if the delivery
2639 or installation is separately stated on an invoice or receipt, a seller may compute the tax due on
2640 the sale for purposes of Subsection (4)(d)(i) based on the amount the seller receives for that
2641 sale during each period for which the seller receives payment for the sale.
2642 (e) (i) The use tax as computed in the return shall be based on the total amount of
2643 purchases for storage, use, or other consumption in this state made during the period for which
2644 the return is filed, including both cash and charge purchases.
2645 (ii) (A) As used in this Subsection (4)(e)(ii), "qualifying purchaser" means a purchaser
2646 that is required to remit taxes under this chapter, but is not required to remit taxes monthly in
2647 accordance with Section 59-12-108, and that converts tangible personal property into real
2648 property.
2649 (B) Subject to Subsections (4)(e)(ii)(C) and (D), a qualifying purchaser may remit the
2650 taxes due under this chapter on tangible personal property for which the qualifying purchaser
2651 claims an exemption as allowed under Subsection 59-12-104(23) or (25) based on the period in
2652 which the qualifying purchaser receives payment, in accordance with Subsection (4)(e)(ii)(C),
2653 for the conversion of the tangible personal property into real property.
2654 (C) A qualifying purchaser remitting taxes due under this chapter in accordance with
2655 Subsection (4)(e)(ii)(B) shall remit an amount equal to the total amount of tax due on the
2656 qualifying purchaser's purchase of the tangible personal property that was converted into real
2657 property multiplied by a fraction, the numerator of which is the payment received in the period
2658 for the qualifying purchaser's sale of the tangible personal property that was converted into real
2659 property and the denominator of which is the entire sales price for the qualifying purchaser's
2660 sale of the tangible personal property that was converted into real property.
2661 (D) A qualifying purchaser may remit taxes due under this chapter in accordance with
2662 this Subsection (4)(e)(ii) only if the books and records that the qualifying purchaser keeps in
2663 the qualifying purchaser's regular course of business identify by reasonable and verifiable
2664 standards that the tangible personal property was converted into real property.
2665 (f) (i) Subject to Subsection (4)(f)(ii) and in accordance with Title 63G, Chapter 3,
2666 Utah Administrative Rulemaking Act, the commission may by rule extend the time for making
2667 returns and paying the taxes.
2668 (ii) An extension under Subsection (4)(f)(i) may not be for more than 90 days.
2669 (g) The commission may require returns and payment of the tax to be made for other
2670 than quarterly periods if the commission considers it necessary in order to ensure the payment
2671 of the tax imposed by this chapter.
2672 (h) (i) The commission may require a seller that files a simplified electronic return with
2673 the commission to file an additional electronic report with the commission.
2674 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2675 commission may make rules providing:
2676 (A) the information required to be included in the additional electronic report described
2677 in Subsection (4)(h)(i); and
2678 (B) one or more due dates for filing the additional electronic report described in
2679 Subsection (4)(h)(i).
2680 (5) (a) As used in this Subsection (5) and Subsection (6)(b), "remote seller" means a
2681 seller that is:
2682 (i) registered under the agreement;
2683 (ii) described in Subsection (2)(d); and
2684 (iii) not a:
2685 (A) model 1 seller;
2686 (B) model 2 seller; or
2687 (C) model 3 seller.
2688 (b) (i) Except as provided in Subsection (5)(b)(ii), a tax a remote seller collects in
2689 accordance with Subsection (2)(d) is due and payable:
2690 (A) to the commission;
2691 (B) annually; and
2692 (C) on or before the last day of the month immediately following the last day of each
2693 calendar year.
2694 (ii) The commission may require that a tax a remote seller collects in accordance with
2695 Subsection (2)(d) be due and payable:
2696 (A) to the commission; and
2697 (B) on the last day of the month immediately following any month in which the seller
2698 accumulates a total of at least $1,000 in agreement sales and use tax.
2699 (c) (i) If a remote seller remits a tax to the commission in accordance with Subsection
2700 (5)(b), the remote seller shall file a return:
2701 (A) with the commission;
2702 (B) with respect to the tax;
2703 (C) containing information prescribed by the commission; and
2704 (D) on a form prescribed by the commission.
2705 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2706 commission shall make rules prescribing:
2707 (A) the information required to be contained in a return described in Subsection
2708 (5)(c)(i); and
2709 (B) the form described in Subsection (5)(c)(i)(D).
2710 (d) A tax a remote seller collects in accordance with this Subsection (5) shall be
2711 calculated on the basis of the total amount of taxable transactions under Subsection
2712 59-12-103(1) the remote seller completes, including:
2713 (i) a cash transaction; and
2714 (ii) a charge transaction.
2715 (6) (a) Except as provided in Subsection (6)(b), a tax a seller that files a simplified
2716 electronic return collects in accordance with this chapter is due and payable:
2717 (i) monthly on or before the last day of the month immediately following the month for
2718 which the seller collects a tax under this chapter; and
2719 (ii) for the month for which the seller collects a tax under this chapter.
2720 (b) A tax a remote seller that files a simplified electronic return collects in accordance
2721 with this chapter is due and payable as provided in Subsection (5).
2722 (7) (a) On each vehicle sale made by other than a regular licensed vehicle dealer, the
2723 purchaser shall pay the sales or use tax directly to the commission if the vehicle is subject to
2724 titling or registration under the laws of this state.
2725 (b) The commission shall collect the tax described in Subsection (7)(a) when the
2726 vehicle is titled or registered.
2727 (8) If any sale of tangible personal property or any other taxable transaction under
2728 Subsection 59-12-103(1), is made by a wholesaler to a retailer:
2729 (a) the wholesaler is not responsible for the collection or payment of the tax imposed
2730 on the sale; and
2731 (b) the retailer is responsible for the collection or payment of the tax imposed on the
2732 sale if:
2733 (i) the retailer represents that the tangible personal property, product transferred
2734 electronically, or service is purchased by the retailer for resale; and
2735 (ii) the tangible personal property, product transferred electronically, or service is not
2736 subsequently resold.
2737 (9) If any sale of property or service subject to the tax is made to a person prepaying
2738 sales or use tax in accordance with Title 63M, Chapter 5, Resource Development Act, or to a
2739 contractor or subcontractor of that person:
2740 (a) the person to whom such payment or consideration is payable is not responsible for
2741 the collection or payment of the sales or use tax; and
2742 (b) the person prepaying the sales or use tax is responsible for the collection or
2743 payment of the sales or use tax if the person prepaying the sales or use tax represents that the
2744 amount prepaid as sales or use tax has not been fully credited against sales or use tax due and
2745 payable under the rules promulgated by the commission.
2746 (10) (a) For purposes of this Subsection (10):
2747 (i) Except as provided in Subsection (10)(a)(ii), "bad debt" means the same as that term
2748 is defined in Section 166, Internal Revenue Code.
2749 (ii) "Bad debt" does not include:
2750 (A) an amount included in the purchase price of tangible personal property, a product
2751 transferred electronically, or a service that is:
2752 (I) not a transaction described in Subsection 59-12-103(1); or
2753 (II) exempt under Section 59-12-104;
2754 (B) a financing charge;
2755 (C) interest;
2756 (D) a tax imposed under this chapter on the purchase price of tangible personal
2757 property, a product transferred electronically, or a service;
2758 (E) an uncollectible amount on tangible personal property or a product transferred
2759 electronically that:
2760 (I) is subject to a tax under this chapter; and
2761 (II) remains in the possession of a seller until the full purchase price is paid;
2762 (F) an expense incurred in attempting to collect any debt; or
2763 (G) an amount that a seller does not collect on repossessed property.
2764 (b) (i) To the extent an amount remitted in accordance with Subsection (4)(d) later
2765 becomes bad debt, a seller may deduct the bad debt from the total amount from which a tax
2766 under this chapter is calculated on a return.
2767 (ii) A qualifying purchaser, as defined in Subsection (4)(e)(ii)(A), may deduct from the
2768 total amount of taxes due under this chapter the amount of tax the qualifying purchaser paid on
2769 the qualifying purchaser's purchase of tangible personal property converted into real property to
2770 the extent that:
2771 (A) tax was remitted in accordance with Subsection (4)(e) on that tangible personal
2772 property converted into real property;
2773 (B) the qualifying purchaser's sale of that tangible personal property converted into real
2774 property later becomes bad debt; and
2775 (C) the books and records that the qualifying purchaser keeps in the qualifying
2776 purchaser's regular course of business identify by reasonable and verifiable standards that the
2777 tangible personal property was converted into real property.
2778 (c) A seller may file a refund claim with the commission if:
2779 (i) the amount of bad debt for the time period described in Subsection (10)(e) exceeds
2780 the amount of the seller's sales that are subject to a tax under this chapter for that same time
2781 period; and
2782 (ii) as provided in Section 59-1-1410.
2783 (d) A bad debt deduction under this section may not include interest.
2784 (e) A bad debt may be deducted under this Subsection (10) on a return for the time
2785 period during which the bad debt:
2786 (i) is written off as uncollectible in the seller's books and records; and
2787 (ii) would be eligible for a bad debt deduction:
2788 (A) for federal income tax purposes; and
2789 (B) if the seller were required to file a federal income tax return.
2790 (f) If a seller recovers any portion of bad debt for which the seller makes a deduction or
2791 claims a refund under this Subsection (10), the seller shall report and remit a tax under this
2792 chapter:
2793 (i) on the portion of the bad debt the seller recovers; and
2794 (ii) on a return filed for the time period for which the portion of the bad debt is
2795 recovered.
2796 (g) For purposes of reporting a recovery of a portion of bad debt under Subsection
2797 (10)(f), a seller shall apply amounts received on the bad debt in the following order:
2798 (i) in a proportional amount:
2799 (A) to the purchase price of the tangible personal property, product transferred
2800 electronically, or service; and
2801 (B) to the tax due under this chapter on the tangible personal property, product
2802 transferred electronically, or service; and
2803 (ii) to:
2804 (A) interest charges;
2805 (B) service charges; and
2806 (C) other charges.
2807 (h) A seller's certified service provider may make a deduction or claim a refund for bad
2808 debt on behalf of the seller:
2809 (i) in accordance with this Subsection (10); and
2810 (ii) if the certified service provider credits or refunds the entire amount of the bad debt
2811 deduction or refund to the seller.
2812 (i) A seller may allocate bad debt among the states that are members of the agreement
2813 if the seller's books and records support that allocation.
2814 (11) (a) A seller may not, with intent to evade any tax, fail to timely remit the full
2815 amount of tax required by this chapter.
2816 (b) A violation of this section is punishable as provided in Section 59-1-401.
2817 (c) Each person that fails to pay any tax to the state or any amount of tax required to be
2818 paid to the state, except amounts determined to be due by the commission under Chapter 1,
2819 Part 14, Assessment, Collections, and Refunds Act, or Section 59-12-111, within the time
2820 required by this chapter, or that fails to file any return as required by this chapter, shall pay, in
2821 addition to the tax, penalties and interest as provided in Sections 59-1-401 and 59-1-402.
2822 (d) For purposes of prosecution under this section, each quarterly tax period in which a
2823 seller, with intent to evade any tax, collects a tax and fails to timely remit the full amount of the
2824 tax required to be remitted constitutes a separate offense.
2825 Section 4. Section 59-12-107.6 is enacted to read:
2826 59-12-107.6. Marketplace facilitator collection, remittance, and payment of sales
2827 tax obligation -- Marketplace seller collection, remittance, and payment of sales tax
2828 obligation -- Liability for collection.
2829 (1) A marketplace facilitator shall pay or collect and remit sales and use taxes imposed
2830 by this chapter in accordance with Section 59-12-107:
2831 (a) if the marketplace facilitator meets one or more of the criteria provided for in
2832 Subsection 59-12-107(2)(a) or (b); and
2833 (b) on the sales the marketplace facilitator made on the marketplace facilitator's own
2834 behalf.
2835 (2) (a) A marketplace facilitator shall pay or collect and remit sales and use taxes
2836 imposed by this chapter in accordance with Subsection (3) if the marketplace facilitator, in the
2837 previous calendar year or the current calendar year, makes sales of tangible personal property,
2838 products transferred electronically, or services on the marketplace facilitator's own behalf or
2839 facilitates sales on behalf of one or more marketplace sellers:
2840 (i) that exceed $100,000; or
2841 (ii) in 200 or more separate transactions.
2842 (b) For purposes of determining if a marketplace facilitator meets or exceeds one or
2843 both thresholds described in this Subsection (2), a marketplace facilitator shall separately total:
2844 (i) the marketplace facilitator's sales; and
2845 (ii) any sales the marketplace facilitator makes or facilitates for a marketplace seller.
2846 (c) A marketplace facilitator without a physical presence in this state shall begin
2847 collecting and remitting the sales and use taxes imposed by this chapter no later than the first
2848 day of the calendar quarter that is at least 60 days after the day on which the marketplace
2849 facilitator meets or exceeds either threshold described in Subsection (2)(a).
2850 (3) A marketplace facilitator described in Subsection (2) shall pay or collect and remit
2851 sales and use taxes imposed by this chapter for each sale that the marketplace facilitator:
2852 (a) makes on the marketplace facilitator's own behalf; or
2853 (b) makes or facilitates on behalf of a marketplace seller, regardless of:
2854 (i) whether the marketplace seller has an obligation to pay or collect and remit sales
2855 and use taxes under Section 59-12-107;
2856 (ii) whether the marketplace seller would have been required to pay or collect and
2857 remit sales and use taxes under Section 59-12-107 if the marketplace facilitator had not
2858 facilitated the sale; or
2859 (iii) the amount of the sales price or the purchase price that accrues to or benefits the
2860 marketplace facilitator, the marketplace seller, or any other person.
2861 (4) A marketplace facilitator shall comply with the procedures and requirements in this
2862 chapter and Chapter 1, General Taxation Policies, for sellers required to pay or collect and
2863 remit sales and use taxes except that the marketplace facilitator shall segregate, in the
2864 marketplace facilitator's books and records:
2865 (a) the sales that the marketplace facilitator makes on the marketplace facilitator's own
2866 behalf; and
2867 (b) the sales that the marketplace facilitator makes or facilitates on behalf of one or
2868 more marketplace sellers.
2869 (5) (a) The commission may audit the marketplace facilitator for sales made or
2870 facilitated through the marketplace facilitator's marketplace on behalf of one or more
2871 marketplace sellers.
2872 (b) The commission may not audit the marketplace seller for sales made or facilitated
2873 through the marketplace facilitator's marketplace on the marketplace seller's behalf.
2874 (6) Nothing in this section prohibits a marketplace facilitator from providing in a
2875 marketplace facilitator's agreement with a marketplace seller for the recovery of sales and use
2876 taxes, and any related interest or penalties to the extent that a tax, interest, or penalty is
2877 assessed by the state in an audit of the marketplace facilitator on a retail sale:
2878 (a) that a marketplace facilitator makes or facilitates on behalf of a marketplace seller;
2879 and
2880 (b) for which the marketplace facilitator relied on incorrect or incomplete information
2881 provided by the marketplace seller.
2882 (7) (a) Subject to Subsections (7)(b) and (c), a marketplace facilitator is not liable for
2883 failing to collect the taxes under this chapter for a sale on which the marketplace facilitator
2884 failed to collect sales and use taxes if the marketplace facilitator demonstrates, to the
2885 satisfaction of the commission, that:
2886 (i) the marketplace facilitator made or facilitated the sale through the marketplace
2887 facilitator's marketplace on or before December 31, 2022;
2888 (ii) the marketplace facilitator made or facilitated the sale on behalf of a marketplace
2889 seller and not on behalf of the marketplace facilitator;
2890 (iii) the marketplace facilitator and the marketplace seller are not affiliates; and
2891 (iv) the failure to collect sales and use taxes was due to a good faith error other than an
2892 error in sourcing.
2893 (b) For purposes of Subsection (7)(a):
2894 (i) for sales made or facilitated during the 2019 or 2020 calendar year, the marketplace
2895 facilitator is not liable for the amount the marketplace facilitator fails to collect due to error that
2896 is equal to the error rate, but not to exceed a 7% error rate;
2897 (ii) for sales made or facilitated during the 2021 calendar year, the marketplace
2898 facilitator is not liable for the amount the marketplace facilitator fails to collect due to error that
2899 is equal to the error rate, but not to exceed a 5% error rate; and
2900 (iii) for sales made or facilitated during the 2022 calendar year, the marketplace
2901 facilitator is not liable for the amount the marketplace facilitator fails to collect due to error that
2902 is equal to the error rate, but not to exceed a 3% error rate.
2903 (c) The commission shall calculate the percentages described in Subsection (7)(b):
2904 (i) using the total sales and use taxes due on sales that:
2905 (A) a marketplace facilitator made or facilitated in this state on behalf of one or more
2906 marketplace sellers during the calendar year that the sale for which the marketplace facilitator
2907 seeks relief was made or facilitated; and
2908 (B) are sourced to the state; and
2909 (ii) not including sales that the marketplace facilitator or the marketplace facilitator's
2910 affiliates directly made during the same calendar year.
2911 (8) A marketplace seller shall pay or collect and remit sales and use taxes imposed by
2912 this chapter for a sale of tangible personal property, a product transferred electronically, or a
2913 service that the marketplace seller makes other than through a marketplace facilitator if:
2914 (a) the sale is sourced to this state; and
2915 (b) the marketplace seller's sales in this state, other than through a marketplace
2916 facilitator, in the previous calendar year or the current calendar year:
2917 (i) exceed $100,000; or
2918 (ii) occur in 200 or more separate transactions.
2919 (9) (a) A marketplace seller may not pay or collect and remit sales and use taxes
2920 imposed by this chapter for any sale for which a marketplace facilitator is required to pay or
2921 collect and remit.
2922 (b) A marketplace seller is not liable for a marketplace facilitator's failure to pay or
2923 collect and remit, or the marketplace facilitator's underpayment of, sales and use taxes imposed
2924 by this chapter for any sale for which a marketplace facilitator is required to pay or collect and
2925 remit the taxes imposed by this chapter.
2926 (10) (a) A purchaser of tangible personal property, a product transferred electronically,
2927 or a service may file a claim for a refund with the marketplace facilitator if the purchaser
2928 overpaid sales and use taxes imposed under this chapter.
2929 (b) No person may bring a class action against a marketplace facilitator in any court of
2930 the state on behalf of purchasers arising from or in any way related to an overpayment of sales
2931 and use taxes collected and remitted on sales made or facilitated by the marketplace facilitator
2932 on behalf of a marketplace seller, regardless of whether such claim is characterized as a tax
2933 refund claim.
2934 (11) Nothing in this section affects the obligation of a purchaser to remit the use tax
2935 described in Subsection 59-12-107(2)(f) on any sale for which a marketplace facilitator or
2936 marketplace seller failed to collect and remit a tax imposed by this chapter.
2937 Section 5. Effective date.
2938 This bill takes effect on October 1, 2019.