2
3
4
5
6
7 LONG TITLE
8 Committee Note:
9 The Tax Restructuring and Equalization Task Force recommended this bill.
10 Membership: 10 legislators 4 non-legislators
11 Legislative Vote: 6 voting for 3 voting against 1 absent
12 General Description:
13 This bill amends and enacts provisions related to state and local taxes and revenue.
14 Highlighted Provisions:
15 This bill:
16 ▸ decreases the corporate franchise and income tax rate and the individual income tax
17 rate;
18 ▸ amends the calculation of certain tax credits to match the applicable income tax
19 rate;
20 ▸ repeals certain transfers from the General Fund into the Education Fund;
21 ▸ modifies the calculation of the Utah personal exemption for purposes of the
22 taxpayer tax credit;
23 ▸ enacts a nonrefundable tax credit for social security benefits that are included in the
24 claimant's federal adjusted gross income;
25 ▸ provides that an individual who claims the tax credit for social security benefits may
26 not also claim the retirement tax credit on the same return;
27 ▸ enacts a refundable state earned income tax credit for certain individuals who are
28 experiencing intergenerational poverty;
29 ▸ enacts a refundable grocery tax credit;
30 ▸ provides for apportionment of the state earned income tax credit and the grocery tax
31 credit;
32 ▸ increases the state sales and use tax rate on food and food ingredients;
33 ▸ imposes state and local sales and use tax on amounts paid or charged for certain
34 services;
35 ▸ modifies the sales and use tax dedications for the Transportation Investment Fund
36 of 2005;
37 ▸ directs a portion of growth in the amount of revenue collected from the sales and
38 use tax on the sale of food and food ingredients be deposited into the Transit and
39 Transportation Investment Fund;
40 ▸ repeals certain sales and use tax exemptions;
41 ▸ provides a sales and use tax exemption for certain transactions paid for through a
42 machine that only accepts cash;
43 ▸ enacts a sales and use tax exemption for tangible personal property consumed in the
44 performance of certain taxable services;
45 ▸ establishes a repeal date for the sales and use tax exemption for construction
46 materials used in the construction of a new or expanding life science research and
47 development facility;
48 ▸ creates a sales and use tax exemption for menstrual products;
49 ▸ enacts a sales tax on motor fuel and special fuel other than diesel and an additional
50 excise tax on diesel fuel;
51 ▸ increases the state motor vehicle rental tax;
52 ▸ provides a repeal date for the program that allows certain clean fuel vehicles to
53 travel in a high occupancy vehicle lane regardless of the number of occupants;
54 ▸ directs the Utah Department of Transportation to implement one or more strategies
55 to manage congestion on state highways and to generate highway user fees;
56 ▸ requires the Utah Department of Transportation to submit an annual report to a
57 legislative committee regarding the road usage charge program;
58 ▸ addresses the requirements for using a high occupancy toll lane;
59 ▸ modifies the permissible uses for funds in the Tollway Special Revenue Fund; and
60 ▸ makes technical and conforming changes.
61 Money Appropriated in this Bill:
62 This bill appropriates in fiscal year 2020:
63 ▸ To the General Fund, as a one-time appropriation:
64 • From the Education Fund Restricted -- Underage Drinking Prevention Program
65 Restricted Account, One-time, $1,750,000.
66 This bill appropriates in fiscal year 2021:
67 ▸ To State Board of Education -- Child Nutrition, as a one-time appropriation:
68 • From Education Fund, $55,500,000.
69 • From Dedicated Credits -- Liquor Tax, ($55,500,000).
70 ▸ To State Board of Education -- State Administrative Office, as an ongoing
71 appropriation:
72 • From Education Fund, $2,850,000.
73 • From Education Fund Restricted -- Underage Drinking Prevention Program
74 Restricted Account, ($2,850,000).
75 ▸ To University of Utah -- Education and General, as an ongoing appropriation:
76 • From General Fund, $101,608,900.
77 • From Education Fund, ($101,608,900).
78 ▸ To University of Utah -- School of Medicine, as an ongoing appropriation:
79 • From General Fund, $35,899,500.
80 • From Education Fund, ($35,899,500).
81 ▸ To University of Utah -- University Hospital, as an ongoing appropriation:
82 • From General Fund, $1,413,500.
83 • From Education Fund, ($1,413,500).
84 ▸ To University of Utah -- School of Dentistry, as an ongoing appropriation:
85 • From General Fund, $2,324,700.
86 • From Education Fund, ($2,324,700).
87 ▸ To Utah State University -- Education and General, as an ongoing appropriation:
88 • From General Fund, $73,237,800.
89 • From Education Fund, ($73,237,800).
90 ▸ To Utah State University -- USU-Eastern Education and General, as an ongoing
91 appropriation:
92 • From General Fund, $12,503,400.
93 • From Education Fund, ($12,503,400).
94 ▸ To Weber State University -- Education and General, as an ongoing appropriation:
95 • From General Fund, $91,115,900.
96 • From Education Fund, ($91,115,900).
97 ▸ To Southern Utah University -- Education and General, as an ongoing
98 appropriation:
99 • From General Fund, $48,726,900.
100 • From Education Fund, ($48,726,900).
101 ▸ To Utah Valley University -- Education and General, as an ongoing appropriation:
102 • From General Fund, $117,745,200.
103 • From Education Fund, ($117,745,200).
104 ▸ To Snow College -- Education and General, as an ongoing appropriation:
105 • From General Fund, $24,831,900.
106 • From Education Fund, ($24,831,900).
107 ▸ To Dixie State University -- Education and General, as an ongoing appropriation:
108 • From General Fund, $14,810,400.
109 • From Education Fund, ($14,810,400).
110 ▸ To Utah Department of Transportation -- Joint Highway Committee, as an ongoing
111 appropriation:
112 • From Transportation Fund, $5,000,000.
113 Other Special Clauses:
114 This bill provides a special effective date.
115 This bill provides contingent retrospective operation.
116 Utah Code Sections Affected:
117 AMENDS:
118 15A-1-204, as last amended by Laws of Utah 2017, Chapter 18
119 26-36b-208, as last amended by Laws of Utah 2019, Chapters 1 and 393
120 32B-2-301, as last amended by Laws of Utah 2018, Chapter 329
121 32B-2-304, as last amended by Laws of Utah 2019, Chapter 403
122 32B-2-305, as last amended by Laws of Utah 2013, Chapter 400
123 35A-8-308, as last amended by Laws of Utah 2017, Chapters 181 and 421
124 35A-8-309, as last amended by Laws of Utah 2019, Chapter 493
125 41-6a-409, as last amended by Laws of Utah 2017, Chapter 142
126 41-6a-505, as last amended by Laws of Utah 2019, Chapter 136
127 41-6a-1406, as last amended by Laws of Utah 2019, Chapter 373
128 41-12a-806, as last amended by Laws of Utah 2019, Chapter 55
129 53G-10-406, as last amended by Laws of Utah 2019, Chapter 293
130 59-1-1503, as last amended by Laws of Utah 2012, Chapter 399
131 59-7-104, as last amended by Laws of Utah 2019, Chapter 418
132 59-7-201, as last amended by Laws of Utah 2018, Chapter 456
133 59-7-610, as last amended by Laws of Utah 2019, Chapter 247
134 59-7-614.1, as last amended by Laws of Utah 2016, Chapter 375
135 59-7-618, as last amended by Laws of Utah 2017, Chapter 265
136 59-7-620, as last amended by Laws of Utah 2017, Chapter 222
137 59-10-104, as last amended by Laws of Utah 2018, Chapter 456
138 59-10-529.1, as enacted by Laws of Utah 2015, Chapter 369
139 59-10-1005, as last amended by Laws of Utah 2017, Chapter 148
140 59-10-1007, as last amended by Laws of Utah 2019, Chapter 247
141 59-10-1017, as last amended by Laws of Utah 2017, Chapter 389
142 59-10-1017.1, as enacted by Laws of Utah 2017, Chapter 389
143 59-10-1018, as last amended by Laws of Utah 2018, Second Special Session, Chapter 3
144 59-10-1019, as renumbered and amended by Laws of Utah 2008, Chapter 389
145 59-10-1022, as enacted by Laws of Utah 2008, Chapter 389
146 59-10-1023, as enacted by Laws of Utah 2008, Chapter 389
147 59-10-1028, as last amended by Laws of Utah 2012, Chapter 399
148 59-10-1033, as last amended by Laws of Utah 2017, Chapter 265
149 59-10-1035, as last amended by Laws of Utah 2017, Chapter 222
150 59-10-1105, as last amended by Laws of Utah 2016, Chapter 375
151 59-10-1403.3, as enacted by Laws of Utah 2017, Chapter 270
152 59-12-102, as last amended by Laws of Utah 2019, Chapters 325, 481, and 486
153 59-12-103, as last amended by Laws of Utah 2019, Chapters 1, 136, and 479
154 59-12-104, as last amended by Laws of Utah 2019, Chapters 136 and 486
155 59-12-104.5, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
156 59-12-1201, as last amended by Laws of Utah 2016, Chapters 184 and 291
157 59-13-202, as last amended by Laws of Utah 2016, Third Special Session, Chapter 1
158 63I-2-259, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
159 63I-2-272, as last amended by Laws of Utah 2019, Chapters 136 and 246
160 63M-4-702, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
161 72-1-201, as last amended by Laws of Utah 2019, Chapter 431
162 72-1-213.1, as enacted by Laws of Utah 2019, Chapter 479
163 72-2-120, as last amended by Laws of Utah 2018, Chapter 269
164 72-2-124, as last amended by Laws of Utah 2019, Chapters 327 and 479
165 72-6-118, as last amended by Laws of Utah 2018, Chapter 269
166 72-9-603, as last amended by Laws of Utah 2019, Chapter 373
167 ENACTS:
168 35A-9-214, Utah Code Annotated 1953
169 59-10-1041, Utah Code Annotated 1953
170 59-10-1102.1, Utah Code Annotated 1953
171 59-10-1113, Utah Code Annotated 1953
172 59-10-1114, Utah Code Annotated 1953
173 59-12-130, Utah Code Annotated 1953
174 59-13-323, Utah Code Annotated 1953
175 63I-2-241, Utah Code Annotated 1953
176 REPEALS:
177 53F-9-304, as last amended by Laws of Utah 2019, Chapter 186
178 59-12-104.4, as enacted by Laws of Utah 2011, Chapter 314
179
180 Be it enacted by the Legislature of the state of Utah:
181 Section 1. Section 15A-1-204 is amended to read:
182 15A-1-204. Adoption of State Construction Code -- Amendments by commission
183 -- Approved codes -- Exemptions.
184 (1) (a) The State Construction Code is the construction codes adopted with any
185 modifications in accordance with this section that the state and each political subdivision of the
186 state shall follow.
187 (b) A person shall comply with the applicable provisions of the State Construction
188 Code when:
189 (i) new construction is involved; and
190 (ii) the owner of an existing building, or the owner's agent, is voluntarily engaged in:
191 (A) the repair, renovation, remodeling, alteration, enlargement, rehabilitation,
192 conservation, or reconstruction of the building; or
193 (B) changing the character or use of the building in a manner that increases the
194 occupancy loads, other demands, or safety risks of the building.
195 (c) On and after July 1, 2010, the State Construction Code is the State Construction
196 Code in effect on July 1, 2010, until in accordance with this section:
197 (i) a new State Construction Code is adopted; or
198 (ii) one or more provisions of the State Construction Code are amended or repealed in
199 accordance with this section.
200 (d) A provision of the State Construction Code may be applicable:
201 (i) to the entire state; or
202 (ii) within a county, city, or town.
203 (2) (a) The Legislature shall adopt a State Construction Code by enacting legislation
204 that adopts a nationally recognized construction code with any modifications.
205 (b) Legislation described in Subsection (2)(a) shall state that the legislation takes effect
206 on the July 1 after the day on which the legislation is enacted, unless otherwise stated in the
207 legislation.
208 (c) Subject to Subsection (6), a State Construction Code adopted by the Legislature is
209 the State Construction Code until, in accordance with this section, the Legislature adopts a new
210 State Construction Code by:
211 (i) adopting a new State Construction Code in its entirety; or
212 (ii) amending or repealing one or more provisions of the State Construction Code.
213 (3) (a) Except as provided in Subsection (3)(b), for each update of a nationally
214 recognized construction code, the commission shall prepare a report described in Subsection
215 (4).
216 (b) For the provisions of a nationally recognized construction code that apply only to
217 detached one- and two-family dwellings and townhouses not more than three stories above
218 grade plane in height with separate means of egress and their accessory structures, the
219 commission shall:
220 (i) prepare a report described in Subsection (4) in 2021 and, thereafter, for every
221 second update of the nationally recognized construction code; and
222 (ii) not prepare a report described in Subsection (4) in 2018.
223 (4) (a) In accordance with Subsection (3), on or before September 1 of the same year as
224 the year designated in the title of a nationally recognized construction code, the commission
225 shall prepare and submit, in accordance with Section 68-3-14, a written report to the Business
226 and Labor Interim Committee that:
227 (i) states whether the commission recommends the Legislature adopt the update with
228 any modifications; and
229 (ii) describes the costs and benefits of each recommended change in the update or in
230 any modification.
231 (b) After the Business and Labor Interim Committee receives the report described in
232 Subsection (4)(a), the Business and Labor Interim Committee shall:
233 (i) study the recommendations; and
234 (ii) if the Business and Labor Interim Committee decides to recommend legislative
235 action to the Legislature, prepare legislation for consideration by the Legislature in the next
236 general session.
237 (5) (a) (i) The commission shall, by no later than September 1 of each year in which
238 the commission is not required to submit a report described in Subsection (4), submit, in
239 accordance with Section 68-3-14, a written report to the Business and Labor Interim
240 Committee recommending whether the Legislature should amend or repeal one or more
241 provisions of the State Construction Code.
242 (ii) As part of a recommendation described in Subsection (5)(a)(i), the commission
243 shall describe the costs and benefits of each proposed amendment or repeal.
244 (b) The commission may recommend legislative action related to the State
245 Construction Code:
246 (i) on its own initiative;
247 (ii) upon the recommendation of the division; or
248 (iii) upon the receipt of a request by one of the following that the commission
249 recommend legislative action related to the State Construction Code:
250 (A) a local regulator;
251 (B) a state regulator;
252 (C) a state agency involved with the construction and design of a building;
253 (D) the Construction Services Commission;
254 (E) the Electrician Licensing Board;
255 (F) the Plumbers Licensing Board; or
256 (G) a recognized construction-related association.
257 (c) If the Business and Labor Interim Committee decides to recommend legislative
258 action to the Legislature, the Business and Labor Interim Committee shall prepare legislation
259 for consideration by the Legislature in the next general session.
260 (6) (a) Notwithstanding the provisions of this section, the commission may, in
261 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, amend the State
262 Construction Code if the commission determines that waiting for legislative action in the next
263 general legislative session would:
264 (i) cause an imminent peril to the public health, safety, or welfare; or
265 (ii) place a person in violation of federal or other state law.
266 (b) If the commission amends the State Construction Code in accordance with this
267 Subsection (6), the commission shall file with the division:
268 (i) the text of the amendment to the State Construction Code; and
269 (ii) an analysis that includes the specific reasons and justifications for the commission's
270 findings.
271 (c) If the State Construction Code is amended under this Subsection (6), the division
272 shall:
273 (i) publish the amendment to the State Construction Code in accordance with Section
274 15A-1-205; and
275 (ii) prepare and submit, in accordance with Section 68-3-14, a written notice to the
276 Business and Labor Interim Committee containing the amendment to the State Construction
277 Code, including a copy of the commission's analysis described in Subsection (6)(b)(ii).
278 (d) If not formally adopted by the Legislature at the next annual general session, an
279 amendment to the State Construction Code under this Subsection (6) is repealed on the July 1
280 immediately following the next annual general session that follows the adoption of the
281 amendment.
282 (7) (a) The division, in consultation with the commission, may approve, without
283 adopting, one or more approved codes, including a specific edition of a construction code, for
284 use by a compliance agency.
285 (b) If the code adopted by a compliance agency is an approved code described in
286 Subsection (7)(a), the compliance agency may:
287 (i) adopt an ordinance requiring removal, demolition, or repair of a building;
288 (ii) adopt, by ordinance or rule, a dangerous building code; or
289 (iii) adopt, by ordinance or rule, a building rehabilitation code.
290 (8) Except as provided in Subsections (6), (7), (9), and (10), or as expressly provided in
291 state law, a state executive branch entity or political subdivision of the state may not, after
292 December 1, 2016, adopt or enforce a rule, ordinance, or requirement that applies to a subject
293 specifically addressed by, and that is more restrictive than, the State Construction Code.
294 (9) A state executive branch entity or political subdivision of the state may:
295 (a) enforce a federal law or regulation;
296 (b) adopt or enforce a rule, ordinance, or requirement if the rule, ordinance, or
297 requirement applies only to a facility or construction owned or used by a state entity or a
298 political subdivision of the state; or
299 (c) enforce a rule, ordinance, or requirement:
300 (i) that the state executive branch entity or political subdivision adopted or made
301 effective before July 1, 2015; and
302 (ii) for which the state executive branch entity or political subdivision can demonstrate,
303 with substantial evidence, that the rule, ordinance, or requirement is necessary to protect an
304 individual from a condition likely to cause imminent injury or death.
305 (10) The Department of Health or the Department of Environmental Quality may
306 enforce a rule or requirement adopted before January 1, 2015.
307 (11) (a) Except as provided in Subsection (11)(b), a structure used solely in
308 conjunction with agriculture use, and not for human occupancy, or a structure that is no more
309 than 1,500 square feet and used solely for the type of sales described in Subsection
310 59-12-104[
311 (b) (i) Unless exempted by a provision other than Subsection (11)(a), a plumbing,
312 electrical, and mechanical permit may be required when that work is included in a structure
313 described in Subsection (11)(a).
314 (ii) Unless located in whole or in part in an agricultural protection area created under
315 Title 17, Chapter 41, Agriculture, Industrial, or Critical Infrastructure Materials Protection
316 Areas, a structure described in Subsection (11)(a) is not exempt from a permit requirement if
317 the structure is located on land that is:
318 (A) within the boundaries of a city or town, and less than five contiguous acres; or
319 (B) within a subdivision for which the county has approved a subdivision plat under
320 Title 17, Chapter 27a, Part 6, Subdivisions, and less than two contiguous acres.
321 Section 2. Section 26-36b-208 is amended to read:
322 26-36b-208. Medicaid Expansion Fund.
323 (1) There is created an expendable special revenue fund known as the Medicaid
324 Expansion Fund.
325 (2) The fund consists of:
326 (a) assessments collected under this chapter;
327 (b) intergovernmental transfers under Section 26-36b-206;
328 (c) savings attributable to the health coverage improvement program as determined by
329 the department;
330 (d) savings attributable to the enhancement waiver program as determined by the
331 department;
332 (e) savings attributable to the Medicaid waiver expansion as determined by the
333 department;
334 (f) savings attributable to the inclusion of psychotropic drugs on the preferred drug list
335 under Subsection 26-18-2.4(3) as determined by the department;
336 (g) [
337 59-12-103[
338 (h) gifts, grants, donations, or any other conveyance of money that may be made to the
339 fund from private sources;
340 (i) interest earned on money in the fund; and
341 (j) additional amounts as appropriated by the Legislature.
342 (3) (a) The fund shall earn interest.
343 (b) All interest earned on fund money shall be deposited into the fund.
344 (4) (a) A state agency administering the provisions of this chapter may use money from
345 the fund to pay the costs, not otherwise paid for with federal funds or other revenue sources, of:
346 (i) the health coverage improvement program;
347 (ii) the enhancement waiver program;
348 (iii) a Medicaid waiver expansion; and
349 (iv) the outpatient upper payment limit supplemental payments under Section
350 26-36b-210.
351 (b) A state agency administering the provisions of this chapter may not use:
352 (i) funds described in Subsection (2)(b) to pay the cost of private outpatient upper
353 payment limit supplemental payments; or
354 (ii) money in the fund for any purpose not described in Subsection (4)(a).
355 Section 3. Section 32B-2-301 is amended to read:
356 32B-2-301. State property -- Liquor Control Fund -- Money to be retained by
357 department -- Department building process.
358 (1) The following are property of the state:
359 (a) the money received in the administration of this title, except as otherwise provided;
360 and
361 (b) property acquired, administered, possessed, or received by the department.
362 (2) (a) There is created an enterprise fund known as the "Liquor Control Fund."
363 (b) [
364 following into the Liquor Control Fund:
365 (i) money received in the administration of this title; and
366 (ii) money received from the markup described in Section 32B-2-304.
367 (c) The department may draw from the Liquor Control Fund only to the extent
368 appropriated by the Legislature or provided by statute.
369 (d) The net position of the Liquor Control Fund may not fall below zero.
370 (3) (a) Notwithstanding Subsection (2)(c), the department may draw by warrant from
371 the Liquor Control Fund without an appropriation for an expenditure that is directly incurred by
372 the department:
373 (i) to purchase an alcoholic product;
374 (ii) to transport an alcoholic product from the supplier to a warehouse of the
375 department; or
376 (iii) for variances related to an alcoholic product, including breakage or theft.
377 (b) If the balance of the Liquor Control Fund is not adequate to cover a warrant that the
378 department draws against the Liquor Control Fund, to the extent necessary to cover the
379 warrant, the cash resources of the General Fund may be used.
380 (4) (a) As used in this Subsection (4), "base budget" means the same as that term is
381 defined in legislative rule.
382 (b) The department's base budget shall include as an appropriation from the Liquor
383 Control Fund:
384 (i) credit card related fees paid by the department;
385 (ii) package agency compensation; and
386 (iii) the department's costs of shipping and warehousing alcoholic products.
387 (5) (a) The Division of Finance shall transfer annually from the Liquor Control Fund to
388 the General Fund a sum equal to the amount of net profit earned from the sale of liquor since
389 the preceding transfer of money under this Subsection (5).
390 (b) After each fiscal year, the Division of Finance shall calculate the amount for the
391 transfer on or before September 1 and the Division of Finance shall make the transfer on or
392 before September 30.
393 (c) The Division of Finance may make year-end closing entries in the Liquor Control
394 Fund to comply with Subsection 51-5-6(2).
395 (6) (a) By the end of each day, the department shall:
396 (i) make a deposit to a qualified depository, as defined in Section 51-7-3; and
397 (ii) report the deposit to the state treasurer.
398 (b) A commissioner or department employee is not personally liable for a loss caused
399 by the default or failure of a qualified depository.
400 (c) Money deposited in a qualified depository is entitled to the same priority of
401 payment as other public funds of the state.
402 (7) Before the Division of Finance makes the transfer described in Subsection (5), the
403 department may retain each fiscal year from the Liquor Control Fund $1,000,000 that the
404 department may use for:
405 (a) capital equipment purchases;
406 (b) salary increases for department employees;
407 (c) performance awards for department employees; or
408 (d) information technology enhancements because of changes or trends in technology.
409 Section 4. Section 32B-2-304 is amended to read:
410 32B-2-304. Liquor price -- School lunch program -- Remittance of markup.
411 (1) For purposes of this section:
412 (a) (i) "Landed case cost" means:
413 (A) the cost of the product; and
414 (B) inbound shipping costs incurred by the department.
415 (ii) "Landed case cost" does not include the outbound shipping cost from a warehouse
416 of the department to a state store.
417 (b) "Proof gallon" means the same as that term is defined in 26 U.S.C. Sec. 5002.
418 (c) Notwithstanding Section 32B-1-102, "small brewer" means a brewer who
419 manufactures in a calendar year less than 40,000 barrels of beer, heavy beer, and flavored malt
420 beverage.
421 (2) Except as provided in Subsection (3):
422 (a) spirituous liquor sold by the department within the state shall be marked up in an
423 amount not less than 88% above the landed case cost to the department;
424 (b) wine sold by the department within the state shall be marked up in an amount not
425 less than 88% above the landed case cost to the department;
426 (c) heavy beer sold by the department within the state shall be marked up in an amount
427 not less than 66.5% above the landed case cost to the department; and
428 (d) a flavored malt beverage sold by the department within the state shall be marked up
429 in an amount not less than 88% above the landed case cost to the department.
430 (3) (a) Liquor sold by the department to a military installation in Utah shall be marked
431 up in an amount not less than 17% above the landed case cost to the department.
432 (b) Except for spirituous liquor sold by the department to a military installation in
433 Utah, spirituous liquor that is sold by the department within the state shall be marked up 49%
434 above the landed case cost to the department if:
435 (i) the spirituous liquor is manufactured by a manufacturer producing less than 30,000
436 proof gallons of spirituous liquor in a calendar year; and
437 (ii) the manufacturer applies to the department for a reduced markup.
438 (c) Except for wine sold by the department to a military installation in Utah, wine that
439 is sold by the department within the state shall be marked up 49% above the landed case cost to
440 the department if:
441 (i) (A) except as provided in Subsection (3)(c)(i)(B), the wine is manufactured by a
442 manufacturer producing less than 20,000 gallons of wine in a calendar year; or
443 (B) for hard cider, the hard cider is manufactured by a manufacturer producing less
444 than 620,000 gallons of hard cider in a calendar year; and
445 (ii) the manufacturer applies to the department for a reduced markup.
446 (d) Except for heavy beer sold by the department to a military installation in Utah,
447 heavy beer that is sold by the department within the state shall be marked up 32% above the
448 landed case cost to the department if:
449 (i) a small brewer manufactures the heavy beer; and
450 (ii) the small brewer applies to the department for a reduced markup.
451 (e) The department shall verify an amount described in Subsection (3)(b), (c), or (d)
452 pursuant to a federal or other verifiable production report.
453 (f) For purposes of determining whether an alcoholic product qualifies for a markup
454 under this Subsection (3), the department shall evaluate whether the manufacturer satisfies the
455 applicable production requirement without considering the manufacturer's production of any
456 other type of alcoholic product.
457 [
458
459
460 [
461 at a discount.
462 Section 5. Section 32B-2-305 is amended to read:
463 32B-2-305. Alcoholic Beverage Control Act Enforcement Fund.
464 (1) As used in this section:
465 (a) "Alcohol-related law enforcement officer" is as defined in Section 32B-1-201.
466 (b) "Enforcement ratio" is as defined in Section 32B-1-201.
467 (c) "Fund" means the Alcoholic Beverage Control Act Enforcement Fund created in
468 this section.
469 (2) There is created an expendable special revenue fund known as the "Alcoholic
470 Beverage Control Act Enforcement Fund."
471 (3) (a) The fund consists of:
472 (i) deposits made under Subsection (4); and
473 (ii) interest earned on the fund.
474 (b) The fund shall earn interest. Interest on the fund shall be deposited into the fund.
475 (4) [
476
477 state treasurer to be credited to the fund to be used by the Department of Public Safety as
478 provided in Subsection (5).
479 (5) (a) The Department of Public Safety shall expend money from the fund to
480 supplement appropriations by the Legislature so that the Department of Public Safety maintains
481 a sufficient number of alcohol-related law enforcement officers such that beginning on July 1,
482 2012, each year the enforcement ratio as of July 1 is equal to or less than the number specified
483 in Section 32B-1-201.
484 (b) Beginning July 1, 2012, four alcohol-related law enforcement officers shall have as
485 a primary focus the enforcement of this title in relationship to restaurants.
486 Section 6. Section 35A-8-308 is amended to read:
487 35A-8-308. Throughput Infrastructure Fund.
488 (1) There is created an enterprise fund known as the Throughput Infrastructure Fund.
489 (2) The fund consists of money generated from the following revenue sources:
490 (a) all amounts transferred to the fund [
491 (b) any voluntary contributions received;
492 (c) appropriations made to the fund by the Legislature; and
493 (d) all amounts received from the repayment of loans made by the impact board under
494 Section 35A-8-309.
495 (3) The state treasurer shall:
496 (a) invest the money in the fund by following the procedures and requirements of Title
497 51, Chapter 7, State Money Management Act; and
498 (b) deposit all interest or other earnings derived from those investments into the fund.
499 Section 7. Section 35A-8-309 is amended to read:
500 35A-8-309. Throughput Infrastructure Fund administered by impact board --
501 Uses -- Review by board -- Annual report -- First project.
502 (1) The impact board shall:
503 (a) make grants and loans from the Throughput Infrastructure Fund created in Section
504 35A-8-308 for a throughput infrastructure project;
505 (b) use money transferred to the Throughput Infrastructure Fund [
506
507 acquisition or construction of a throughput infrastructure project to one or more local political
508 subdivisions, including a Utah interlocal agency created under Title 11, Chapter 13, Interlocal
509 Cooperation Act;
510 (c) administer the Throughput Infrastructure Fund in a manner that will keep a portion
511 of the fund revolving;
512 (d) determine provisions for repayment of loans;
513 (e) establish criteria for awarding loans and grants; and
514 (f) establish criteria for determining eligibility for assistance under this section.
515 (2) The cost of acquisition or construction of a throughput infrastructure project
516 includes amounts for working capital, reserves, transaction costs, and other amounts
517 determined by the impact board to be allocable to a throughput infrastructure project.
518 (3) The impact board may restructure or forgive all or part of a local political
519 subdivision's or interlocal agency's obligation to repay loans for extenuating circumstances.
520 (4) To receive assistance under this section, a local political subdivision or an
521 interlocal agency shall submit a formal application containing the information that the impact
522 board requires.
523 (5) (a) The impact board shall:
524 (i) review the proposed uses of the Throughput Infrastructure Fund for a loan or grant
525 before approving the loan or grant and may condition its approval on whatever assurances the
526 impact board considers necessary to ensure that proceeds of the loan or grant will be used in
527 accordance with this section;
528 (ii) ensure that each loan specifies terms for interest deferments, accruals, and
529 scheduled principal repayment; and
530 (iii) ensure that repayment terms are evidenced by bonds, notes, or other obligations of
531 the appropriate local political subdivision or interlocal agency issued to the impact board and
532 payable from the net revenues of a throughput infrastructure project.
533 (b) An instrument described in Subsection (5)(a)(iii) may be:
534 (i) non-recourse to the local political subdivision or interlocal agency; and
535 (ii) limited to a pledge of the net revenues from a throughput infrastructure project.
536 (6) (a) Subject to the restriction in Subsection (6)(b), the impact board shall allocate
537 from the Throughput Infrastructure Fund to the board those amounts that are appropriated by
538 the Legislature for the administration of the Throughput Infrastructure Fund.
539 (b) The amount described in Subsection (6)(a) may not exceed 2% of the annual
540 receipts to the fund.
541 (7) The board shall include in the annual written report described in Section
542 35A-1-109:
543 (a) the number and type of loans and grants made under this section; and
544 (b) a list of local political subdivisions or interlocal agencies that received assistance
545 under this section.
546 (8) (a) The first throughput infrastructure project considered by the impact board shall
547 be a bulk commodities ocean terminal project.
548 (b) Upon receipt of an application from an interlocal agency created for the sole
549 purpose of undertaking a throughput infrastructure project that is a bulk commodities ocean
550 terminal project, the impact board shall:
551 (i) grant up to 2% of the money in the Throughput Infrastructure Fund to the interlocal
552 agency to pay or reimburse costs incurred by the interlocal agency preliminary to its acquisition
553 of the throughput infrastructure project; and
554 (ii) fund the interlocal agency's application if the application meets all criteria
555 established by the impact board.
556 Section 8. Section 35A-9-214 is enacted to read:
557 35A-9-214. Intergenerational poverty report to State Tax Commission.
558 (1) As used in this section, "commission" means the State Tax Commission.
559 (2) On or before January 31 of each year, the department shall provide a notice to each
560 individual the department identifies as experiencing intergenerational poverty that:
561 (a) informs the individual of the tax credit available under Section 59-10-1114; and
562 (b) explains the eligibility requirements and process for claiming a tax credit under
563 Section 59-10-1114.
564 (3) For purposes of Subsection (2), an individual is experiencing intergenerational
565 poverty if:
566 (a) the individual received public assistance during the previous calendar year;
567 (b) the individual received public assistance for 12 months or more since the individual
568 reached 18 years of age; and
569 (c) the individual or the individual's family received public assistance for 12 months or
570 more before the individual reached 18 years of age.
571 (4) (a) On or before March 1 of each year, the department shall provide the
572 commission an electronic report that states, for each individual to whom the department
573 provided notice in accordance with this section during the preceding year:
574 (i) the individual's name; and
575 (ii) the individual's social security number.
576 (b) The department and the commission shall ensure that the information contained in
577 each electronic report is secure and confidential.
578 Section 9. Section 41-6a-409 is amended to read:
579 41-6a-409. Prohibition of flat response fee for motor vehicle accident.
580 (1) As used in this section, "government entity" means the Department of
581 Transportation, the Utah Highway Patrol Division, or a local government entity or agency.
582 (2) A government entity:
583 (a) may not impose a flat fee, or collect a flat fee, from an individual involved in a
584 motor vehicle accident; and
585 (b) may only charge the individual for the actual cost or a reasonable estimate of the
586 cost of services provided in responding to the motor vehicle accident, limited to:
587 (i) medical costs for transporting an individual from the scene of a motor vehicle
588 accident or treating a person injured in a motor vehicle accident;
589 (ii) the cost for repair to damaged public property, if the individual is legally liable for
590 the damage;
591 (iii) the cost of materials used in cleaning up the motor vehicle accident, if the
592 individual is legally liable for the motor vehicle accident; [
593 (iv) towing costs[
594 (v) applicable sales and use taxes.
595 (3) If a government entity imposes a charge on more than one individual for the actual
596 cost or a reasonable estimate of the cost of responding to a motor vehicle accident, the
597 government entity shall apportion the charges so that the government entity does not receive
598 more for responding to the motor vehicle accident than the actual response cost or a reasonable
599 estimate of the cost.
600 (4) Nothing in this section prohibits a government entity from contracting with an
601 independent contractor to recover costs related to damage to public property.
602 (5) If a government entity enters into a contract with an independent contractor to
603 recover costs related to damage to public property, the government entity may only pay the
604 independent contractor out of any recovery received from the person who caused the damage or
605 the responsible party.
606 Section 10. Section 41-6a-505 is amended to read:
607 41-6a-505. Sentencing requirements for driving under the influence of alcohol,
608 drugs, or a combination of both violations.
609 (1) As part of any sentence for a first conviction of Section 41-6a-502:
610 (a) the court shall:
611 (i) (A) impose a jail sentence of not less than 48 consecutive hours; or
612 (B) require the individual to work in a compensatory-service work program for not less
613 than 48 hours;
614 (ii) order the individual to participate in a screening;
615 (iii) order the individual to participate in an assessment, if it is found appropriate by a
616 screening under Subsection (1)(a)(ii);
617 (iv) order the individual to participate in an educational series if the court does not
618 order substance abuse treatment as described under Subsection (1)(b);
619 (v) impose a fine of not less than $700;
620 (vi) order probation for the individual in accordance with Section 41-6a-507, if there is
621 admissible evidence that the individual had a blood alcohol level of .16 or higher;
622 (vii) (A) order the individual to pay the administrative impound fee described in
623 Section 41-6a-1406; or
624 (B) if the administrative impound fee was paid by a party described in Subsection
625 41-6a-1406(5)(a), other than the individual sentenced, order the individual sentenced to
626 reimburse the party; or
627 (viii) (A) order the individual to pay the towing and storage fees described in Section
628 72-9-603 and the applicable sales and use tax; or
629 (B) if the [
630 were paid by a party described in Subsection 41-6a-1406(5)(a), other than the individual
631 sentenced, order the individual sentenced to reimburse the party; and
632 (b) the court may:
633 (i) order the individual to obtain substance abuse treatment if the substance abuse
634 treatment program determines that substance abuse treatment is appropriate;
635 (ii) order probation for the individual in accordance with Section 41-6a-507;
636 (iii) order the individual to participate in a 24-7 sobriety program as defined in Section
637 41-6a-515.5 if the individual is 21 years of age or older; or
638 (iv) order a combination of Subsections (1)(b)(i) through (iii).
639 (2) If an individual has a prior conviction as defined in Subsection 41-6a-501(2) that is
640 within 10 years of the current conviction under Section 41-6a-502 or the commission of the
641 offense upon which the current conviction is based:
642 (a) the court shall:
643 (i) (A) impose a jail sentence of not less than 240 hours; or
644 (B) impose a jail sentence of not less than 120 hours in addition to home confinement
645 of not fewer than 720 consecutive hours through the use of electronic monitoring that includes
646 a substance abuse testing instrument in accordance with Section 41-6a-506;
647 (ii) order the individual to participate in a screening;
648 (iii) order the individual to participate in an assessment, if it is found appropriate by a
649 screening under Subsection (2)(a)(ii);
650 (iv) order the individual to participate in an educational series if the court does not
651 order substance abuse treatment as described under Subsection (2)(b);
652 (v) impose a fine of not less than $800;
653 (vi) order probation for the individual in accordance with Section 41-6a-507;
654 (vii) (A) order the individual to pay the administrative impound fee described in
655 Section 41-6a-1406; or
656 (B) if the administrative impound fee was paid by a party described in Subsection
657 41-6a-1406(5)(a), other than the individual sentenced, order the individual sentenced to
658 reimburse the party; or
659 (viii) (A) order the individual to pay the towing and storage fees described in Section
660 72-9-603; or
661 (B) if the [
662 were paid by a party described in Subsection 41-6a-1406(5)(a), other than the individual
663 sentenced, order the individual sentenced to reimburse the party; and
664 (b) the court may:
665 (i) order the individual to obtain substance abuse treatment if the substance abuse
666 treatment program determines that substance abuse treatment is appropriate;
667 (ii) order the individual to participate in a 24-7 sobriety program as defined in Section
668 41-6a-515.5 if the individual is 21 years of age or older; or
669 (iii) order a combination of Subsections (2)(b)(i) and (ii).
670 (3) Under Subsection 41-6a-503(2), if the court suspends the execution of a prison
671 sentence and places the defendant on probation, the court shall impose:
672 (a) a fine of not less than $1,500;
673 (b) a jail sentence of not less than 1,500 hours; and
674 (c) supervised probation.
675 (4) For Subsection (3) or Subsection 41-6a-503(2)(b), the court:
676 (a) shall impose an order requiring the individual to obtain a screening and assessment
677 for alcohol and substance abuse, and treatment as appropriate; and
678 (b) may impose an order requiring the individual to participate in a 24-7 sobriety
679 program as defined in Section 41-6a-515.5 if the individual is 21 years of age or older.
680 (5) The requirements of Subsections (1)(a), (2)(a), (3), and (4) may not be suspended.
681 (6) If an individual is convicted of a violation of Section 41-6a-502 and there is
682 admissible evidence that the individual had a blood alcohol level of .16 or higher, the court
683 shall order the following, or describe on record why the order or orders are not appropriate:
684 (a) treatment as described under Subsection (1)(b), (2)(b), or (4); and
685 (b) one or more of the following:
686 (i) the installation of an ignition interlock system as a condition of probation for the
687 individual in accordance with Section 41-6a-518;
688 (ii) the imposition of an ankle attached continuous transdermal alcohol monitoring
689 device as a condition of probation for the individual; or
690 (iii) the imposition of home confinement through the use of electronic monitoring in
691 accordance with Section 41-6a-506.
692 Section 11. Section 41-6a-1406 is amended to read:
693 41-6a-1406. Removal and impoundment of vehicles -- Reporting and notification
694 requirements -- Administrative impound fee -- Refunds -- Possessory lien -- Rulemaking.
695 (1) If a vehicle, vessel, or outboard motor is removed or impounded as provided under
696 Section 41-1a-1101, 41-6a-527, 41-6a-1405, 41-6a-1408, or 73-18-20.1 by an order of a peace
697 officer or by an order of a person acting on behalf of a law enforcement agency or highway
698 authority, the removal or impoundment of the vehicle, vessel, or outboard motor shall be at the
699 expense of the owner.
700 (2) The vehicle, vessel, or outboard motor under Subsection (1) shall be removed or
701 impounded to a state impound yard.
702 (3) The peace officer may move a vehicle, vessel, or outboard motor or cause it to be
703 removed by a tow truck motor carrier that meets standards established:
704 (a) under Title 72, Chapter 9, Motor Carrier Safety Act; and
705 (b) by the department under Subsection (10).
706 (4) (a) Immediately after the removal of the vehicle, vessel, or outboard motor, a report
707 of the removal shall be sent to the Motor Vehicle Division by:
708 (i) the peace officer or agency by whom the peace officer is employed; and
709 (ii) the tow truck operator or the tow truck motor carrier by whom the tow truck
710 operator is employed.
711 (b) The report shall be in a form specified by the Motor Vehicle Division and shall
712 include:
713 (i) the operator's name, if known;
714 (ii) a description of the vehicle, vessel, or outboard motor;
715 (iii) the vehicle identification number or vessel or outboard motor identification
716 number;
717 (iv) the license number, temporary permit number, or other identification number
718 issued by a state agency;
719 (v) the date, time, and place of impoundment;
720 (vi) the reason for removal or impoundment;
721 (vii) the name of the tow truck motor carrier who removed the vehicle, vessel, or
722 outboard motor; and
723 (viii) the place where the vehicle, vessel, or outboard motor is stored.
724 (c) Until the tow truck operator or tow truck motor carrier reports the removal as
725 required under this Subsection (4), a tow truck motor carrier or impound yard may not:
726 (i) collect any fee associated with the removal; and
727 (ii) begin charging storage fees.
728 (5) (a) Except as provided in Subsection (5)(e) and upon receipt of the report, the
729 Motor Vehicle Division shall give notice, in the manner described in Section 41-1a-114, to the
730 following parties with an interest in the vehicle, vessel, or outboard motor, as applicable:
731 (i) the registered owner;
732 (ii) any lien holder; or
733 (iii) a dealer, as defined in Section 41-1a-102, if the vehicle, vessel, or outboard motor
734 is currently operating under a temporary permit issued by the dealer, as described in Section
735 41-3-302.
736 (b) The notice shall:
737 (i) state the date, time, and place of removal, the name, if applicable, of the person
738 operating the vehicle, vessel, or outboard motor at the time of removal, the reason for removal,
739 and the place where the vehicle, vessel, or outboard motor is stored;
740 (ii) state that the registered owner is responsible for payment of:
741 (A) towing, impound, and storage fees charged against the vehicle, vessel, or outboard
742 motor; and
743 (B) the applicable sales and use tax;
744 (iii) state the conditions that must be satisfied before the vehicle, vessel, or outboard
745 motor is released; and
746 (iv) inform the parties described in Subsection (5)(a) of the division's intent to sell the
747 vehicle, vessel, or outboard motor, if, within 30 days after the day of the removal or
748 impoundment under this section, one of the parties fails to make a claim for release of the
749 vehicle, vessel, or outboard motor.
750 (c) Except as provided in Subsection (5)(e) and if the vehicle, vessel, or outboard
751 motor is not registered in this state, the Motor Vehicle Division shall make a reasonable effort
752 to notify the parties described in Subsection (5)(a) of the removal and the place where the
753 vehicle, vessel, or outboard motor is stored.
754 (d) The Motor Vehicle Division shall forward a copy of the notice to the place where
755 the vehicle, vessel, or outboard motor is stored.
756 (e) The Motor Vehicle Division is not required to give notice under this Subsection (5)
757 if a report was received by a tow truck operator or tow truck motor carrier reporting a tow truck
758 service in accordance with Subsection 72-9-603(1)(a)(i).
759 (6) (a) The vehicle, vessel, or outboard motor shall be released after a party described
760 in Subsection (5)(a):
761 (i) makes a claim for release of the vehicle, vessel, or outboard motor at any office of
762 the State Tax Commission;
763 (ii) presents identification sufficient to prove ownership of the impounded vehicle,
764 vessel, or outboard motor;
765 (iii) completes the registration, if needed, and pays the appropriate fees;
766 (iv) if the impoundment was made under Section 41-6a-527, pays an administrative
767 impound fee of $400; and
768 (v) pays all towing and storage fees and applicable sales and use tax to the place where
769 the vehicle, vessel, or outboard motor is stored.
770 (b) (i) Twenty-nine dollars of the administrative impound fee assessed under
771 Subsection (6)(a)(iv) shall be dedicated credits to the Motor Vehicle Division;
772 (ii) $147 of the administrative impound fee assessed under Subsection (6)(a)(iv) shall
773 be deposited in the Department of Public Safety Restricted Account created in Section
774 53-3-106;
775 (iii) $20 of the administrative impound fee assessed under Subsection (6)(a)(iv) shall
776 be deposited in the Spinal Cord and Brain Injury Rehabilitation Fund; and
777 (iv) the remainder of the administrative impound fee assessed under Subsection
778 (6)(a)(iv) shall be deposited in the General Fund.
779 (c) The administrative impound fee assessed under Subsection (6)(a)(iv) shall be
780 waived or refunded by the State Tax Commission if the registered owner, lien holder, or
781 owner's agent presents written evidence to the State Tax Commission that:
782 (i) the Driver License Division determined that the arrested person's driver license
783 should not be suspended or revoked under Section 53-3-223 or 41-6a-521 as shown by a letter
784 or other report from the Driver License Division presented within 180 days after the day on
785 which the Driver License Division mailed the final notification; or
786 (ii) the vehicle was stolen at the time of the impoundment as shown by a copy of the
787 stolen vehicle report presented within 180 days after the day of the impoundment.
788 (d) A tow truck operator, a tow truck motor carrier, and an impound yard shall accept
789 payment by cash and debit or credit card for a removal or impoundment under Subsection (1)
790 or any service rendered, performed, or supplied in connection with a removal or impoundment
791 under Subsection (1).
792 (e) The owner of an impounded vehicle may not be charged a fee for the storage of the
793 impounded vehicle, vessel, or outboard motor if:
794 (i) the vehicle, vessel, or outboard motor is being held as evidence; and
795 (ii) the vehicle, vessel, or outboard motor is not being released to a party described in
796 Subsection [
797 or outboard motor under this Subsection (6).
798 (7) (a) An impounded vehicle, vessel, or outboard motor not claimed by a party
799 described in Subsection (5)(a) within the time prescribed by Section 41-1a-1103 shall be sold
800 in accordance with that section and the proceeds, if any, shall be disposed of as provided under
801 Section 41-1a-1104.
802 (b) The date of impoundment is considered the date of seizure for computing the time
803 period provided under Section 41-1a-1103.
804 (8) A party described in Subsection (5)(a) that pays all fees [
805 incurred in the impoundment of the owner's vehicle, vessel, or outboard motor has a cause of
806 action for all the fees and charges, together with damages, court costs, and attorney fees,
807 against the operator of the vehicle, vessel, or outboard motor whose actions caused the removal
808 or impoundment.
809 (9) Towing, impound fees, and storage fees are a possessory lien on the vehicle, vessel,
810 or outboard motor.
811 (10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
812 the department shall make rules setting the performance standards for towing companies to be
813 used by the department.
814 (11) (a) The Motor Vehicle Division may specify that a report required under
815 Subsection (4) be submitted in electronic form utilizing a database for submission, storage, and
816 retrieval of the information.
817 (b) (i) Unless otherwise provided by statute, the Motor Vehicle Division or the
818 administrator of the database may adopt a schedule of fees assessed for utilizing the database.
819 (ii) The fees under this Subsection (11)(b) shall:
820 (A) be reasonable and fair; and
821 (B) reflect the cost of administering the database.
822 Section 12. Section 41-12a-806 is amended to read:
823 41-12a-806. Restricted account -- Creation -- Funding -- Interest -- Purposes.
824 (1) There is created within the Transportation Fund a restricted account known as the
825 "Uninsured Motorist Identification Restricted Account."
826 (2) The account consists of money generated from the following revenue sources:
827 (a) money received by the state under Section 41-1a-1218, the uninsured motorist
828 identification fee;
829 (b) money received by the state under Section 41-1a-1220, the registration
830 reinstatement fee; and
831 (c) appropriations made to the account by the Legislature.
832 (3) (a) The account shall earn interest.
833 (b) All interest earned on account money shall be deposited into the account.
834 (4) The Legislature shall appropriate money from the account to:
835 (a) the department to fund the contract with the designated agent;
836 (b) the department to offset the costs to state and local law enforcement agencies of
837 using the information for the purposes authorized under this part;
838 (c) the Tax Commission to offset the costs to the Motor Vehicle Division for revoking
839 and reinstating vehicle registrations under Subsection 41-1a-110(2)(a)(ii); and
840 (d) the department to reimburse a person for the costs, including any applicable sales
841 and use tax, of towing and storing the person's vehicle if:
842 (i) the person's vehicle was impounded in accordance with Subsection 41-1a-1101(2);
843 (ii) the impounded vehicle had owner's or operator's security in effect for the vehicle at
844 the time of the impoundment;
845 (iii) the database indicated that owner's or operator's security was not in effect for the
846 impounded vehicle; and
847 (iv) the department determines that the person's vehicle was wrongfully impounded.
848 (5) The Legislature may appropriate not more than $1,000,000 annually from the
849 account to the Peace Officer Standards and Training Division, created under Section 53-6-103,
850 for use in law enforcement training, including training on the use of the Uninsured Motorist
851 Identification Database Program created under Title 41, Chapter 12a, Part 8, Uninsured
852 Motorist Identification Database Program.
853 (6) (a) By following the procedures in Title 63G, Chapter 4, Administrative Procedures
854 Act, the department shall hold a hearing to determine whether a person's vehicle was
855 wrongfully impounded under Subsection 41-1a-1101(2).
856 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
857 division shall make rules establishing procedures for a person to apply for a reimbursement
858 under Subsection (4)(d).
859 (c) A person is not eligible for a reimbursement under Subsection (4)(d) unless the
860 person applies for the reimbursement within six months from the date that the motor vehicle
861 was impounded.
862 Section 13. Section 53G-10-406 is amended to read:
863 53G-10-406. Underage Drinking Prevention Program -- State board rules.
864 (1) As used in this section:
865 (a) "Advisory council" means the Underage Drinking Prevention Program Advisory
866 Council created in this section.
867 (b) "Program" means the Underage Drinking Prevention Program created in this
868 section.
869 (c) "School-based prevention program" means an evidence-based program intended for
870 students aged 13 and older that:
871 (i) is aimed at preventing underage consumption of alcohol;
872 (ii) is delivered by methods that engage students in storytelling and visualization;
873 (iii) addresses the behavioral risk factors associated with underage drinking; and
874 (iv) provides practical tools to address the dangers of underage drinking.
875 (2) There is created the Underage Drinking Prevention Program that consists of:
876 (a) a school-based prevention program for students in grade 7 or 8; and
877 (b) a school-based prevention program for students in grade 9 or 10 that increases
878 awareness of the dangers of driving under the influence of alcohol.
879 (3) (a) Beginning with the 2018-19 school year, an LEA shall offer the program each
880 school year to each student in grade 7 or 8 and grade 9 or 10.
881 (b) An LEA shall select from the providers qualified by the state board under
882 Subsection (6) to offer the program.
883 (4) The state board shall administer the program with input from the advisory council.
884 (5) There is created the Underage Drinking Prevention Program Advisory Council
885 comprised of the following members:
886 (a) the executive director of the Department of Alcoholic Beverage Control or the
887 executive director's designee;
888 (b) the executive director of the Department of Health or the executive director's
889 designee;
890 (c) the director of the Division of Substance Abuse and Mental Health or the director's
891 designee;
892 (d) the director of the Division of Child and Family Services or the director's designee;
893 (e) the director of the Division of Juvenile Justice Services or the director's designee;
894 (f) the state superintendent or the state superintendent's designee; and
895 (g) two members of the state board, appointed by the chair of the state board.
896 (6) (a) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the state
897 board shall qualify one or more providers to provide the program to an LEA.
898 (b) In selecting a provider described in Subsection (6)(a), the state board shall consider:
899 (i) whether the provider's program complies with the requirements described in this
900 section;
901 (ii) the extent to which the provider's underage drinking prevention program aligns
902 with core standards for Utah public schools; and
903 (iii) the provider's experience in providing a program that is effective at reducing
904 underage drinking.
905 [
906
907 [
908
909
910 [
911 (a) beginning with the 2018-19 school year, require an LEA to offer the Underage
912 Drinking Prevention Program each school year to each student in grade 7 or 8 and grade 9 or
913 10; and
914 (b) establish criteria for the state board to use in selecting a provider described in
915 Subsection (6).
916 Section 14. Section 59-1-1503 is amended to read:
917 59-1-1503. Nonrefundable credit -- Sales and use tax exemption -- Sales and use
918 tax remittance.
919 (1) A nonrefundable individual income tax credit is allowed as provided in Section
920 59-10-1028 related to a capital gain on a transaction involving the exchange of one form of
921 legal tender for another form of legal tender.
922 (2) Sales of currency or coin are exempt from sales and use taxes as provided in
923 Subsection 59-12-104[
924 (3) The remittance of a sales and use tax on a transaction involving specie legal tender
925 is as provided in Section 59-12-107.
926 Section 15. Section 59-7-104 is amended to read:
927 59-7-104. Tax -- Minimum tax.
928 (1) Each domestic and foreign corporation, except a corporation that is exempt under
929 Section 59-7-102, shall pay an annual tax to the state based on the corporation's Utah taxable
930 income for the taxable year for the privilege of exercising the corporation's corporate franchise,
931 as defined in Section 59-7-101, or for the privilege of doing business, as defined in Section
932 59-7-101, in the state.
933 (2) The tax shall be [
934 (3) The minimum tax a corporation shall pay under this chapter is $100.
935 Section 16. Section 59-7-201 is amended to read:
936 59-7-201. Tax -- Minimum tax.
937 (1) There is imposed upon each corporation, except a corporation that is exempt under
938 Section 59-7-102, a tax upon the corporation's Utah taxable income for the taxable year that is
939 derived from sources within this state other than income for any period that the corporation is
940 required to include in the corporation's tax base under Section 59-7-104.
941 (2) The tax imposed by Subsection (1) shall be [
942 taxable income.
943 (3) In no case shall the tax be less than $100.
944 Section 17. Section 59-7-610 is amended to read:
945 59-7-610. Recycling market development zones tax credits.
946 (1) Subject to other provisions of this section, a taxpayer that is a business operating in
947 a recycling market development zone as defined in Section 63N-2-402 may claim the following
948 nonrefundable tax credits:
949 (a) a tax credit [
950 59-7-104(2) and the purchase price paid for machinery and equipment used directly in:
951 (i) commercial composting; or
952 (ii) manufacturing facilities or plant units that:
953 (A) manufacture, process, compound, or produce recycled items of tangible personal
954 property for sale; or
955 (B) reduce or reuse postconsumer waste material; and
956 (b) a tax credit equal to the lesser of:
957 (i) 20% of net expenditures to third parties for rent, wages, supplies, tools, test
958 inventory, and utilities made by the taxpayer for establishing and operating recycling or
959 composting technology in Utah; and
960 (ii) $2,000.
961 (2) (a) To claim a tax credit described in Subsection (1), the taxpayer shall receive
962 from the Governor's Office of Economic Development a written certification, on a form
963 approved by the commission, that includes:
964 (i) a statement that the taxpayer is operating a business within the boundaries of a
965 recycling market development zone;
966 (ii) for claims of the tax credit described in Subsection (1)(a):
967 (A) the type of the machinery and equipment that the taxpayer purchased;
968 (B) the date that the taxpayer purchased the machinery and equipment;
969 (C) the purchase price for the machinery and equipment;
970 (D) the total purchase price for all machinery and equipment for which the taxpayer is
971 claiming a tax credit;
972 (E) a statement that the machinery and equipment are integral to the composting or
973 recycling process; and
974 (F) the amount of the taxpayer's tax credit; and
975 (iii) for claims of the tax credit described in Subsection (1)(b):
976 (A) the type of net expenditure that the taxpayer made to a third party;
977 (B) the date that the taxpayer made the payment to a third party;
978 (C) the amount that the taxpayer paid to each third party;
979 (D) the total amount that the taxpayer paid to all third parties;
980 (E) a statement that the net expenditures support the establishment and operation of
981 recycling or composting technology in Utah; and
982 (F) the amount of the taxpayer's tax credit.
983 (b) (i) The Governor's Office of Economic Development shall provide a taxpayer
984 seeking to claim a tax credit under Subsection (1) with a copy of the written certification.
985 (ii) The taxpayer shall retain a copy of the written certification for the same period of
986 time that a person is required to keep books and records under Section 59-1-1406.
987 (c) The Governor's Office of Economic Development shall submit to the commission
988 an electronic list that includes:
989 (i) the name and identifying information of each taxpayer to which the office issues a
990 written certification; and
991 (ii) for each taxpayer, the amount of each tax credit listed on the written certification.
992 (3) A taxpayer may not claim a tax credit under Subsection (1)(a), Subsection (1)(b), or
993 both that exceeds 40% of the taxpayer's state income tax liability as the tax liability is
994 calculated:
995 (a) for the taxable year in which the taxpayer made the purchases or payments;
996 (b) before any other tax credits the taxpayer may claim for the taxable year; and
997 (c) before the taxpayer claiming a tax credit authorized by this section.
998 (4) The commission shall make rules governing what information a taxpayer shall file
999 with the commission to verify the entitlement to and amount of a tax credit.
1000 (5) Except as provided in Subsections (6) through (8), a taxpayer may carry forward, to
1001 the next three taxable years, the amount of the tax credit that exceeds the taxpayer's income tax
1002 liability for the taxable year.
1003 (6) A taxpayer may not claim or carry forward a tax credit described in Subsection
1004 (1)(a) in a taxable year during which the taxpayer claims or carries forward a tax credit under
1005 Section 63N-2-213.
1006 (7) A taxpayer may not claim or carry forward a tax credit described in Subsection
1007 (1)(b) in a taxable year during which the taxpayer claims or carries forward a tax credit under
1008 Section 63N-2-213.
1009 (8) A taxpayer may not claim or carry forward a tax credit under this section for a
1010 taxable year during which the taxpayer claims the targeted business income tax credit under
1011 Section 59-7-624.
1012 Section 18. Section 59-7-614.1 is amended to read:
1013 59-7-614.1. Refundable tax credit for hand tools used in farming operations --
1014 Procedures for refund -- Transfers from General Fund to Education Fund -- Rulemaking
1015 authority.
1016 (1) [
1017 a refundable tax credit:
1018 (a) as provided in this section;
1019 (b) against taxes otherwise due under this chapter; and
1020 (c) in an amount equal to the amount of tax the taxpayer pays:
1021 (i) on a purchase of a hand tool:
1022 (A) if the purchase is made on or after July 1, 2004;
1023 (B) if the hand tool is used or consumed primarily and directly in a farming operation
1024 in the state; and
1025 (C) if the unit purchase price of the hand tool is more than $250; and
1026 (ii) under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
1027 (1)(c)(i).
1028 (2) A taxpayer:
1029 (a) shall retain the following to establish the amount of tax the resident or nonresident
1030 individual paid under Chapter 12, Sales and Use Tax Act, on the purchase described in
1031 Subsection (1)(c)(i):
1032 (i) a receipt;
1033 (ii) an invoice; or
1034 (iii) a document similar to a document described in Subsection (2)(a)(i) or (ii); and
1035 (b) may not carry forward or carry back a tax credit under this section.
1036 (3) (a) In accordance with any rules prescribed by the commission under Subsection
1037 (3)(b)[
1038 section if the amount of the tax credit exceeds the taxpayer's tax liability under this chapter[
1039
1040 [
1041
1042 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1043 commission may make rules providing procedures for making[
1044 required by Subsection (3)(a)[
1045 [
1046
1047 Section 19. Section 59-7-618 is amended to read:
1048 59-7-618. Tax credit related to alternative fuel heavy duty vehicles.
1049 (1) As used in this section:
1050 (a) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air
1051 Conservation Act.
1052 (b) "Director" means the director of the Division of Air Quality appointed under
1053 Section 19-2-107.
1054 (c) "Heavy duty vehicle" means a commercial category 7 or 8 vehicle, according to
1055 vehicle classifications established by the Federal Highway Administration.
1056 (d) "Natural gas" includes compressed natural gas and liquified natural gas.
1057 (e) "Qualified heavy duty vehicle" means a heavy duty vehicle that:
1058 (i) has never been titled or registered and has been driven less than 7,500 miles; and
1059 (ii) is fueled by natural gas , has a 100% electric drivetrain, or has a hydrogen-electric
1060 drivetrain .
1061 (f) "Qualified purchase" means the purchase of a qualified heavy duty vehicle.
1062 (g) "Qualified taxpayer" means a taxpayer that:
1063 (i) purchases a qualified heavy duty vehicle; and
1064 (ii) receives a tax credit certificate from the director.
1065 (h) "Small fleet" means 40 or fewer heavy duty vehicles registered in the state and
1066 owned by a single taxpayer.
1067 (i) "Tax credit certificate" means a certificate issued by the director certifying that a
1068 taxpayer is entitled to a tax credit as provided in this section and stating the amount of the tax
1069 credit.
1070 (2) A qualified taxpayer may claim a nonrefundable tax credit against tax otherwise
1071 due under this chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required
1072 to Pay Corporate Franchise or Income Tax Act:
1073 (a) in an amount equal to:
1074 (i) $25,000, if the qualified purchase of a natural gas heavy duty vehicle occurs during
1075 calendar year 2015 or calendar year 2016;
1076 (ii) $25,000, if the qualified purchase occurs during calendar year 2017;
1077 (iii) $20,000, if the qualified purchase occurs during calendar year 2018;
1078 (iv) $18,000, if the qualified purchase occurs during calendar year 2019; and
1079 (v) $15,000, if the qualified purchase occurs during calendar year 2020; and
1080 (b) if the qualified taxpayer certifies under oath that over 50% of the miles that the
1081 heavy duty vehicle that is the subject of the qualified purchase will travel annually will be
1082 within the state.
1083 (3) (a) Except as provided in Subsection (3)(b), a taxpayer may not submit an
1084 application for, and the director may not issue to the taxpayer, a tax credit certificate under this
1085 section in any taxable year for a qualified purchase if the director has already issued tax credit
1086 certificates to the taxpayer for 10 qualified purchases in the same taxable year.
1087 (b) If, by May 1 of any year, more than 30% of the aggregate annual total amount of
1088 tax credits under Subsection (5) has not been claimed, a taxpayer may submit an application
1089 for, and the director may issue to the taxpayer, one or more tax credit certificates for up to eight
1090 additional qualified purchases, even if the director has already issued to that taxpayer tax credit
1091 certificates for the maximum number of qualified purchases allowed under Subsection (3)(a).
1092 (4) (a) Subject to Subsection (4)(b), the director shall reserve 25% of all tax credits
1093 available under this section for qualified taxpayers with a small fleet.
1094 (b) Subsection (4)(a) does not prevent a taxpayer from submitting an application for, or
1095 the director from issuing, a tax credit certificate if, before October 1, qualified taxpayers with a
1096 small fleet have not reserved under Subsection (5)(b) tax credits for the full amount reserved
1097 under Subsection (4)(a).
1098 (5) (a) The aggregate annual total amount of tax credits represented by tax credit
1099 certificates that the director issues under this section and Section 59-10-1033 may not exceed
1100 $500,000.
1101 (b) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative
1102 Rulemaking Act, make rules to establish a process under which a taxpayer may reserve a
1103 potential tax credit under this section for a limited time to allow the taxpayer to make a
1104 qualified purchase with the assurance that the aggregate limit under Subsection (5)(a) will not
1105 be met before the taxpayer is able to submit an application for a tax credit certificate.
1106 (6) (a) (i) A taxpayer wishing to claim a tax credit under this section shall, using forms
1107 the board requires by rule:
1108 (A) submit to the director an application for a tax credit;
1109 (B) provide the director proof of a qualified purchase; and
1110 (C) submit to the director the certification under oath required under Subsection (2)(b).
1111 (ii) Upon receiving the application, proof, and certification required under Subsection
1112 (6)(a)(i), the director shall provide the taxpayer a written statement from the director
1113 acknowledging receipt of the proof.
1114 (b) If the director determines that a taxpayer qualifies for a tax credit under this section,
1115 the director shall:
1116 (i) determine the amount of tax credit the taxpayer is allowed under this section; and
1117 (ii) provide the taxpayer with a written tax credit certificate:
1118 (A) stating that the taxpayer has qualified for a tax credit; and
1119 (B) showing the amount of tax credit for which the taxpayer has qualified under this
1120 section.
1121 (c) A qualified taxpayer shall retain the tax credit certificate.
1122 (d) The director shall at least annually submit to the commission a list of all qualified
1123 taxpayers to which the director has issued a tax credit certificate and the amount of each tax
1124 credit represented by the tax credit certificates.
1125 (7) The tax credit under this section is allowed only:
1126 (a) against a tax owed under this chapter or Chapter 8, Gross Receipts Tax on Certain
1127 Corporations Not Required to Pay Corporate Franchise or Income Tax Act, in the taxable year
1128 by the qualified taxpayer;
1129 (b) for the taxable year in which the qualified purchase occurs; and
1130 (c) once per vehicle.
1131 (8) A qualified taxpayer may not assign a tax credit or a tax credit certificate under this
1132 section to another person.
1133 (9) If the qualified taxpayer receives a tax credit certificate under this section that
1134 allows a tax credit in an amount that exceeds the qualified taxpayer's tax liability under this
1135 chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay
1136 Corporate Franchise or Income Tax Act, for a taxable year, the qualified taxpayer may carry
1137 forward the amount of the tax credit that exceeds the tax liability for a period that does not
1138 exceed the next five taxable years.
1139 [
1140
1141
1142 [
1143
1144
1145 Section 20. Section 59-7-620 is amended to read:
1146 59-7-620. Nonrefundable tax credit for contribution to state Achieving a Better
1147 Life Experience Program account.
1148 (1) As used in this section:
1149 (a) "Account" means an account in a qualified ABLE program where the designated
1150 beneficiary of the account is a resident of this state.
1151 (b) "Contributor" means a corporation that:
1152 (i) makes a contribution to an account; and
1153 (ii) receives a statement from the qualified ABLE program itemizing the contribution.
1154 (c) "Designated beneficiary" means the same as that term is defined in 26 U.S.C. Sec.
1155 529A.
1156 (d) "Qualified ABLE program" means the same as that term is defined in Section
1157 35A-12-102.
1158 (2) A contributor to an account may claim a nonrefundable tax credit as provided in
1159 this section.
1160 (3) Subject to the other provisions of this section, the tax credit is equal to the product
1161 of:
1162 (a) [
1163 (b) the total amount of contributions:
1164 (i) the contributor makes for the taxable year; and
1165 (ii) for which the contributor receives a statement from the qualified ABLE program
1166 itemizing the contributions.
1167 (4) A contributor may not claim a tax credit under this section:
1168 (a) for an amount of excess contribution to an account that is returned to the
1169 contributor; or
1170 (b) with respect to an amount the contributor deducts on a federal income tax return.
1171 (5) A tax credit under this section may not be carried forward or carried back.
1172 Section 21. Section 59-10-104 is amended to read:
1173 59-10-104. Tax basis -- Tax rate -- Exemption.
1174 (1) A tax is imposed on the state taxable income of a resident individual as provided in
1175 this section.
1176 (2) For purposes of Subsection (1), for a taxable year, the tax is an amount equal to the
1177 product of:
1178 (a) the resident individual's state taxable income for that taxable year; and
1179 (b) [
1180 (3) This section does not apply to a resident individual exempt from taxation under
1181 Section 59-10-104.1.
1182 Section 22. Section 59-10-529.1 is amended to read:
1183 59-10-529.1. Time period for commission to issue a refund.
1184 (1) Except as provided in Subsection (2), the commission may not issue a refund
1185 before March 1.
1186 (2) The commission may issue a refund before March 1 if, before March 1, the
1187 commission determines that:
1188 (a) (i) an employer has filed the one or more forms in accordance with Subsection
1189 59-10-406(8) the employer is required to file with respect to an individual; and
1190 (ii) for a refund of a tax credit described in Section 59-10-1114, the Department of
1191 Workforce Services has submitted the electronic report required by Section 35A-9-214; and
1192 (b) the individual has filed a return in accordance with this chapter.
1193 Section 23. Section 59-10-1005 is amended to read:
1194 59-10-1005. Tax credit for at-home parent.
1195 (1) As used in this section:
1196 (a) "At-home parent" means a parent:
1197 (i) who provides full-time care at the parent's residence for one or more of the parent's
1198 own qualifying children;
1199 (ii) who claims [
1200
1201 the qualifying child under Section 24, Internal Revenue Code, on the parent's federal individual
1202 income tax return for the taxable year; and
1203 (iii) if the sum of the following amounts are $3,000 or less for the taxable year for
1204 which the parent claims the credit:
1205 (A) the total wages, tips, and other compensation listed on all of the parent's federal
1206 Forms W-2; and
1207 (B) the gross income listed on the parent's federal Form 1040 Schedule C, Profit or
1208 Loss From Business.
1209 (b) "Parent" means an individual who:
1210 (i) is the biological mother or father of a qualifying child;
1211 (ii) is the stepfather or stepmother of a qualifying child;
1212 (iii) (A) legally adopts a qualifying child; or
1213 (B) has a qualifying child placed in the individual's home:
1214 (I) by a child-placing agency, as defined in Section 62A-2-101; and
1215 (II) for the purpose of legally adopting the child;
1216 (iv) is a foster parent of a qualifying child; or
1217 (v) is a legal guardian of a qualifying child.
1218 (c) "Qualifying child" means a child who is no more than 12 months of age on the last
1219 day of the taxable year for which the tax credit is claimed.
1220 (2) [
1221 on the claimant's individual income tax return a nonrefundable tax credit of $100 for each
1222 qualifying child if:
1223 (a) the claimant or another claimant filing a joint individual income tax return with the
1224 claimant is an at-home parent; and
1225 (b) the adjusted gross income of all of the claimants filing the individual income tax
1226 return is less than or equal to $50,000.
1227 (3) A claimant may not carry forward or carry back a tax credit authorized by this
1228 section.
1229 [
1230
1231
1232 [
1233
1234
1235 Section 24. Section 59-10-1007 is amended to read:
1236 59-10-1007. Recycling market development zones tax credits.
1237 (1) Subject to other provisions of this section, a claimant, estate, or trust in a recycling
1238 market development zone as defined in Section 63N-2-402 may claim the following
1239 nonrefundable tax credits:
1240 (a) a tax credit [
1241 59-10-104(2) and the purchase price paid for machinery and equipment used directly in:
1242 (i) commercial composting; or
1243 (ii) manufacturing facilities or plant units that:
1244 (A) manufacture, process, compound, or produce recycled items of tangible personal
1245 property for sale; or
1246 (B) reduce or reuse postconsumer waste material; and
1247 (b) a tax credit equal to the lesser of:
1248 (i) 20% of net expenditures to third parties for rent, wages, supplies, tools, test
1249 inventory, and utilities made by the claimant, estate, or trust for establishing and operating
1250 recycling or composting technology in Utah; and
1251 (ii) $2,000.
1252 (2) (a) To claim a tax credit described in Subsection (1), the claimant, estate, or trust
1253 shall receive from the Governor's Office of Economic Development a written certification, on a
1254 form approved by the commission, that includes:
1255 (i) a statement that the claimant, estate, or trust is operating within the boundaries of a
1256 recycling market development zone;
1257 (ii) for claims of the tax credit described in Subsection (1)(a):
1258 (A) the type of the machinery and equipment that the claimant, estate, or trust
1259 purchased;
1260 (B) the date that the claimant, estate, or trust purchased the machinery and equipment;
1261 (C) the purchase price for the machinery and equipment;
1262 (D) the total purchase price for all machinery and equipment for which the claimant,
1263 estate, or trust is claiming a tax credit;
1264 (E) the amount of the claimant's, estate's, or trust's tax credit; and
1265 (F) a statement that the machinery and equipment are integral to the composting or
1266 recycling process; and
1267 (iii) for claims of the tax credit described in Subsection (1)(b):
1268 (A) the type of net expenditure that the claimant, estate, or trust made to a third party;
1269 (B) the date that the claimant, estate, or trust made the payment to a third party;
1270 (C) the amount that the claimant, estate, or trust paid to each third party;
1271 (D) the total amount that the claimant, estate, or trust paid to all third parties;
1272 (E) a statement that the net expenditures support the establishment and operation of
1273 recycling or composting technology in Utah; and
1274 (F) the amount of the claimant's, estate's, or trust's tax credit.
1275 (b) (i) The Governor's Office of Economic Development shall provide a claimant,
1276 estate, or trust seeking to claim a tax credit under Subsection (1) with a copy of the written
1277 certification.
1278 (ii) The claimant, estate, or trust shall retain a copy of the written certification for the
1279 same period of time that a person is required to keep books and records under Section
1280 59-1-1406.
1281 (c) The Governor's Office of Economic Development shall submit to the commission
1282 an electronic list that includes:
1283 (i) the name and identifying information of each claimant, estate, or trust to which the
1284 office issues a written certification; and
1285 (ii) for each claimant, estate, or trust, the amount of each tax credit listed on the written
1286 certification.
1287 (3) A claimant, estate, or trust may not claim a tax credit under Subsection (1)(a),
1288 Subsection (1)(b), or both that exceeds 40% of the claimant's, estate's, or trust's state income
1289 tax liability as the tax liability is calculated:
1290 (a) for the taxable year in which the claimant, estate, or trust made the purchases or
1291 payments;
1292 (b) before any other tax credits the claimant, estate, or trust may claim for the taxable
1293 year; and
1294 (c) before the claimant, estate, or trust claiming a tax credit authorized by this section.
1295 (4) The commission shall make rules governing what information a claimant, estate, or
1296 trust shall file with the commission to verify the entitlement to and amount of a tax credit.
1297 (5) Except as provided in Subsections (6) through (8), a claimant, estate, or trust may
1298 carry forward, to the next three taxable years, the amount of the tax credit that exceeds the
1299 taxpayer's income tax liability for the taxable year.
1300 (6) A claimant, estate, or trust may not claim or carry forward a tax credit described in
1301 Subsection (1)(a) in a taxable year during which the claimant, estate, or trust claims or carries
1302 forward a tax credit under Section 63N-2-213.
1303 (7) A claimant, estate, or trust may not claim a tax credit described in Subsection (1)(b)
1304 in a taxable year during which the claimant, estate, or trust claims or carries forward a tax
1305 credit under Section 63N-2-213.
1306 (8) A claimant, estate, or trust may not claim or carry forward a tax credit available
1307 under this section for a taxable year during which the claimant, estate, or trust claims the
1308 targeted business income tax credit under Section 59-10-1112.
1309 Section 25. Section 59-10-1017 is amended to read:
1310 59-10-1017. Utah Educational Savings Plan tax credit.
1311 (1) As used in this section:
1312 (a) "Account owner" means the same as that term is defined in Section 53B-8a-102.
1313 (b) "Grantor trust" means the same as that term is defined in Section 53B-8a-102.5.
1314 (c) "Higher education costs" means the same as that term is defined in Section
1315 53B-8a-102.5.
1316 (d) "Joint filing status" means:
1317 (i) spouses who file a single return jointly under this chapter for a taxable year; or
1318 (ii) a surviving spouse, as defined in Section (2)(a), Internal Revenue Code, who files a
1319 single federal individual income tax return for the taxable year.
1320 [
1321 a taxable year, the product of [
1322 (i) subject to Subsection (1)[
1323 owner, if that claimant, estate, or trust is other than [
1324 who file a single return jointly, the maximum amount of a qualified investment:
1325 (A) listed in Subsection 53B-8a-106(1)(e)(ii); and
1326 (B) increased or kept for that taxable year in accordance with Subsections
1327 53B-8a-106(1)(f) and (g);
1328 (ii) subject to Subsection (1)[
1329 spouse account owners who file a single return jointly, the maximum amount of a qualified
1330 investment:
1331 (A) listed in Subsection 53B-8a-106(1)(e)(iii); and
1332 (B) increased or kept for that taxable year in accordance with Subsections
1333 53B-8a-106(1)(f) and (g); or
1334 (iii) for a grantor trust:
1335 (A) if the owner of the grantor trust has a single filing status or head of household
1336 filing status as defined in Section 59-10-1018, the amount described in Subsection
1337 (1)[
1338 (B) if the owner of the grantor trust has a joint filing status as defined in Section
1339 59-10-1018, the amount described in Subsection (1)[
1340 [
1341 53B-8a-102.5.
1342 [
1343 53B-8a-102.5.
1344 (2) Except as provided in Section 59-10-1002.2 and subject to the other provisions of
1345 this section, a claimant, estate, or trust that is an account owner may claim a nonrefundable tax
1346 credit equal to the product of:
1347 (a) the amount of a qualified investment made:
1348 (i) during the taxable year; and
1349 (ii) into an account owned by the claimant, estate, or trust; and
1350 (b) [
1351 (3) A claimant, estate, or trust, or a person other than the claimant, estate, or trust, may
1352 make a qualified investment described in Subsection (2).
1353 (4) A claimant, estate, or trust that is an account owner may not claim a tax credit
1354 under this section with respect to any portion of a qualified investment described in Subsection
1355 (2) that a claimant, estate, trust, or person described in Subsection (3) deducts on a federal
1356 income tax return.
1357 (5) A tax credit under this section may not exceed the maximum amount of a qualified
1358 investment for the taxable year.
1359 (6) A claimant, estate, or trust that is an account owner may not carry forward or carry
1360 back the tax credit under this section.
1361 (7) A claimant, estate, or trust may claim a tax credit under this section in addition to
1362 the tax credit described in Section 59-10-1017.1.
1363 Section 26. Section 59-10-1017.1 is amended to read:
1364 59-10-1017.1. Student Prosperity Savings Program tax credit.
1365 (1) As used in this section, "qualified donation" means an amount donated, in
1366 accordance with Section 53B-8a-203, to the Student Prosperity Savings Program created in
1367 Section 53B-8a-202.
1368 (2) A claimant, estate, or trust may claim a nonrefundable tax credit for a qualified
1369 donation.
1370 (3) The tax credit equals the product of:
1371 (a) the qualified donation; and
1372 (b) [
1373 (4) A claimant, estate, or trust may not claim a tax credit under this section with
1374 respect to any portion of a qualified donation that a claimant, estate, or trust deducts on a
1375 federal income tax return.
1376 (5) A claimant, estate, or trust may not carry forward or carry back the portion of the
1377 tax credit allowed by this section that exceeds the claimant's, estate's, or trust's tax liability for
1378 the taxable year in which the claimant, estate, or trust claims the tax credit.
1379 (6) A claimant, estate, or trust may claim a tax credit under this section in addition to
1380 the tax credit described in Section 59-10-1017.
1381 Section 27. Section 59-10-1018 is amended to read:
1382 59-10-1018. Definitions -- Nonrefundable taxpayer tax credits.
1383 (1) As used in this section:
1384 (a) "Head of household filing status" means a head of household, as defined in Section
1385 2(b), Internal Revenue Code, who files a single federal individual income tax return for the
1386 taxable year.
1387 (b) "Joint filing status" means[
1388 chapter for a taxable year[
1389 [
1390
1391 (c) "Qualifying dependent" means an individual with respect to whom the claimant is
1392 allowed to claim a tax credit under Section 24, Internal Revenue Code, on the claimant's
1393 federal individual income tax return for the taxable year.
1394 (d) "Qualifying widower filing status" means a surviving spouse, as defined in Section
1395 (2)(a), Internal Revenue Code, who files a single federal individual income tax return for the
1396 taxable year.
1397 [
1398 (i) a single individual who files a single federal individual income tax return for the
1399 taxable year; or
1400 (ii) a married individual who:
1401 (A) does not file a single federal individual income tax return jointly with that married
1402 individual's spouse for the taxable year; and
1403 (B) files a single federal individual income tax return for the taxable year.
1404 [
1405 (i) the amount of state or local income tax that the claimant:
1406 (A) pays for the taxable year; and
1407 (B) reports on the claimant's federal individual income tax return for the taxable year,
1408 regardless of whether the claimant is allowed an itemized deduction on the claimant's federal
1409 individual income tax return for the taxable year for the full amount of state or local income tax
1410 paid; and
1411 (ii) $10,000.
1412 [
1413 allowed as an itemized deduction on the claimant's federal individual income tax return for that
1414 taxable year minus any amount of state or local income tax for the taxable year.
1415 (ii) "Utah itemized deduction" does not include any amount of qualified business
1416 income that the claimant subtracts as allowed by Section 199A, Internal Revenue Code, on the
1417 claimant's federal income tax return for that taxable year.
1418 [
1419 multiplied by [
1420 (i) for a claimant who has a joint filing status and no qualifying dependents, one; or
1421 (ii) for a claimant who has qualifying dependents, the number of the claimant's
1422 qualifying dependents.
1423 (2) Except as provided in Section 59-10-1002.2, and subject to Subsections (3) through
1424 (5), a claimant may claim a nonrefundable tax credit against taxes otherwise due under this part
1425 equal to the sum of:
1426 (a) (i) for a claimant that deducts the standard deduction on the claimant's federal
1427 individual income tax return for the taxable year, 6% of the amount the claimant deducts as
1428 allowed as the standard deduction on the claimant's federal individual income tax return for
1429 that taxable year; or
1430 (ii) for a claimant that itemizes deductions on the claimant's federal individual income
1431 tax return for the taxable year, 6% of the amount of the claimant's Utah itemized deduction;
1432 and
1433 (b) 6% of the claimant's Utah personal exemption.
1434 (3) A claimant may not carry forward or carry back a tax credit under this section.
1435 (4) The tax credit allowed by Subsection (2) shall be reduced by $.013 for each dollar
1436 by which a claimant's state taxable income exceeds:
1437 (a) for a claimant who has a single filing status, [
1438 (b) for a claimant who has a head of household filing status, [
1439 (c) for a claimant who has a joint filing status[
1440 status, $29,758.
1441 (5) (a) For a taxable year beginning on or after January 1, [
1442 shall increase or decrease annually the following dollar amounts by a percentage equal to the
1443 percentage difference between the consumer price index for the preceding calendar year and
1444 the consumer price index for calendar year [
1445 (i) the dollar amount listed in Subsection (4)(a); and
1446 (ii) the dollar amount listed in Subsection (4)(b).
1447 (b) After the commission increases or decreases the dollar amounts listed in Subsection
1448 (5)(a), the commission shall round those dollar amounts listed in Subsection (5)(a) to the
1449 nearest whole dollar.
1450 (c) After the commission rounds the dollar amounts as required by Subsection (5)(b),
1451 the commission shall increase or decrease the dollar amount listed in Subsection (4)(c) so that
1452 the dollar amount listed in Subsection (4)(c) is equal to the product of:
1453 (i) the dollar amount listed in Subsection (4)(a); and
1454 (ii) two.
1455 (d) For purposes of Subsection (5)(a), the commission shall calculate the consumer
1456 price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
1457 (6) (a) For a taxable year beginning on or after January 1, [
1458 shall increase annually the Utah personal exemption amount listed in Subsection (1)[
1459 a percentage equal to the percentage by which the consumer price index for the preceding
1460 calendar year exceeds the consumer price index for calendar year [
1461 (b) After the commission increases the Utah personal exemption amount as described
1462 in Subsection (6)(a), the commission shall round the Utah personal exemption amount to the
1463 nearest whole dollar.
1464 (c) For purposes of Subsection (6)(a), the commission shall calculate the consumer
1465 price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
1466 Section 28. Section 59-10-1019 is amended to read:
1467 59-10-1019. Definitions -- Nonrefundable retirement tax credit.
1468 (1) As used in this section:
1469 (a) "Eligible over age 65 [
1470 that claimant is retired, who[
1471 December 31, 1952.
1472 [
1473
1474 [
1475
1476 [
1477
1478 [
1479
1480 [
1481 [
1482 [
1483 [
1484 [
1485
1486
1487 [
1488
1489 [
1490 [
1491 [
1492
1493 [
1494 defined in Section 59-10-1018.
1495 [
1496 (c) "Joint filing status" means:
1497 (i) spouses who file a single return jointly under this chapter for a taxable year; or
1498 (ii) a surviving spouse, as defined in Section (2)(a), Internal Revenue Code, who files a
1499 single federal individual income tax return for the taxable year.
1500 [
1501 (i) does not file a single federal individual income tax return jointly with that married
1502 individual's spouse for the taxable year; and
1503 (ii) files a single federal individual income tax return for the taxable year.
1504 [
1505 [
1506 (i) adjusted gross income for the taxable year for which a tax credit is claimed under
1507 this section;
1508 (ii) any interest income that is not included in adjusted gross income for the taxable
1509 year described in Subsection (1)[
1510 (iii) any addition to adjusted gross income required by Section 59-10-114 for the
1511 taxable year described in Subsection (1)[
1512 [
1513 individual income tax return for the taxable year.
1514 (2) Except as provided in Section 59-10-1002.2 [
1515
1516 nonrefundable tax credit of $450 against taxes otherwise due under this part[
1517 [
1518
1519 [
1520 [
1521 [
1522
1523 [
1524 [
1525 (3) An eligible over age 65 retiree may not:
1526 (a) carry forward or carry back a tax credit under this section; or
1527 (b) claim a tax credit under this section if a tax credit is claimed under Section
1528 59-10-1041 on the same return.
1529 (4) The [
1530 return filed under this part shall be reduced by $.025 for each dollar by which modified
1531 adjusted gross income for purposes of the return exceeds:
1532 (a) for a federal individual income tax return that is allowed a married filing separately
1533 status, $16,000;
1534 (b) for a federal individual income tax return that is allowed a single filing status,
1535 $25,000;
1536 (c) for a federal individual income tax return that is allowed a head of household filing
1537 status, $32,000; or
1538 (d) for a return under this chapter that is allowed a joint filing status, $32,000.
1539 [
1540
1541
1542
1543 Section 29. Section 59-10-1022 is amended to read:
1544 59-10-1022. Nonrefundable tax credit for capital gain transactions.
1545 (1) As used in this section:
1546 (a) (i) "Capital gain transaction" means a transaction that results in a:
1547 (A) short-term capital gain; or
1548 (B) long-term capital gain.
1549 (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1550 commission may by rule define the term "transaction."
1551 (b) "Commercial domicile" means the principal place from which the trade or business
1552 of a Utah small business corporation is directed or managed.
1553 (c) "Long-term capital gain" is as defined in Section 1222, Internal Revenue Code.
1554 (d) "Qualifying stock" means stock that is:
1555 (i) (A) common; or
1556 (B) preferred;
1557 (ii) as defined by the commission by rule made in accordance with Title 63G, Chapter
1558 3, Utah Administrative Rulemaking Act, originally issued to:
1559 (A) a claimant, estate, or trust; or
1560 (B) a partnership if the claimant, estate, or trust that claims a tax credit under this
1561 section:
1562 (I) was a partner on the day on which the stock was issued; and
1563 (II) remains a partner until the last day of the taxable year for which the claimant,
1564 estate, or trust claims a tax credit under this section; and
1565 (iii) issued:
1566 (A) by a Utah small business corporation;
1567 (B) on or after January 1, 2008; and
1568 (C) for:
1569 (I) money; or
1570 (II) other property, except for stock or securities.
1571 (e) "Short-term capital gain" is as defined in Section 1222, Internal Revenue Code.
1572 (f) (i) "Utah small business corporation" means a corporation that:
1573 (A) except as provided in Subsection (1)(f)(ii), is a small business corporation as
1574 defined in Section 1244(c)(3), Internal Revenue Code;
1575 (B) except as provided in Subsection (1)(f)(iii), meets the requirements of Section
1576 1244(c)(1)(C), Internal Revenue Code; and
1577 (C) has its commercial domicile in this state.
1578 (ii) The dollar amount listed in Section 1244(c)(3)(A) is considered to be $2,500,000.
1579 (iii) The phrase "the date the loss on such stock was sustained" in Sections
1580 1244(c)(1)(C) and 1244(c)(2), Internal Revenue Code, is considered to be "the last day of the
1581 taxable year for which the claimant, estate, or trust claims a tax credit under this section."
1582 (2) For taxable years beginning on or after January 1, 2008, a claimant, estate, or trust
1583 that meets the requirements of Subsection (3) may claim a nonrefundable tax credit equal to the
1584 product of:
1585 (a) the total amount of the claimant's, estate's, or trust's short-term capital gain or
1586 long-term capital gain on a capital gain transaction that occurs on or after January 1, 2008; and
1587 (b) [
1588 (3) For purposes of Subsection (2), a claimant, estate, or trust may claim the
1589 nonrefundable tax credit allowed by Subsection (2) if:
1590 (a) 70% or more of the gross proceeds of the capital gain transaction are expended:
1591 (i) to purchase qualifying stock in a Utah small business corporation; and
1592 (ii) within a 12-month period after the day on which the capital gain transaction occurs;
1593 and
1594 (b) prior to the purchase of the qualifying stock described in Subsection (3)(a)(i), the
1595 claimant, estate, or trust did not have an ownership interest in the Utah small business
1596 corporation that issued the qualifying stock.
1597 (4) A claimant, estate, or trust may not carry forward or carry back a tax credit under
1598 this section.
1599 (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1600 commission may make rules:
1601 (a) defining the term "gross proceeds"; and
1602 (b) prescribing the circumstances under which a claimant, estate, or trust has an
1603 ownership interest in a Utah small business corporation.
1604 Section 30. Section 59-10-1023 is amended to read:
1605 59-10-1023. Nonrefundable tax credit for amounts paid under a health benefit
1606 plan.
1607 (1) As used in this section:
1608 (a) "Claimant with dependents" means a claimant:
1609 (i) regardless of the claimant's filing status for purposes of filing a federal individual
1610 income tax return for the taxable year; and
1611 (ii) who claims [
1612 24, Internal Revenue Code, [
1613 for the taxable year.
1614 (b) "Eligible insured individual" means:
1615 (i) the claimant who is insured under a health benefit plan;
1616 (ii) the spouse of the claimant described in Subsection (1)(b)(i) if:
1617 (A) the claimant files a single return jointly under this chapter with the claimant's
1618 spouse for the taxable year; and
1619 (B) the spouse is insured under the health benefit plan described in Subsection
1620 (1)(b)(i); or
1621 (iii) a dependent of the claimant described in Subsection (1)(b)(i) if:
1622 (A) the claimant claims the dependent under Section 151, Internal Revenue Code, as
1623 allowed on the claimant's federal individual income tax return for the taxable year; and
1624 (B) the dependent is insured under the health benefit plan described in Subsection
1625 (1)(b)(i).
1626 (c) "Excluded expenses" means an amount a claimant pays for insurance offered under
1627 a health benefit plan for a taxable year if:
1628 (i) the claimant claims a tax credit for that amount under Section 35, Internal Revenue
1629 Code:
1630 (A) on the claimant's federal individual income tax return for the taxable year; and
1631 (B) with respect to an eligible insured individual;
1632 (ii) the claimant deducts that amount under Section 162 or 213, Internal Revenue
1633 Code:
1634 (A) on the claimant's federal individual income tax return for the taxable year; and
1635 (B) with respect to an eligible insured individual; or
1636 (iii) the claimant excludes that amount from gross income under Section 106 or 125,
1637 Internal Revenue Code, with respect to an eligible insured individual.
1638 (d) (i) "Health benefit plan" is as defined in Section 31A-1-301.
1639 (ii) "Health benefit plan" does not include equivalent self-insurance as defined by the
1640 Insurance Department by rule made in accordance with Title 63G, Chapter 3, Utah
1641 Administrative Rulemaking Act.
1642 (e) "Joint claimant with no dependents" means [
1643 (i) file a single return jointly under this chapter for the taxable year; and
1644 (ii) do not claim a dependent under Section 151, Internal Revenue Code, on the
1645 [
1646 (f) "Single claimant with no dependents" means:
1647 (i) a single individual who:
1648 (A) files a single federal individual income tax return for the taxable year; and
1649 (B) does not claim a dependent under Section 151, Internal Revenue Code, on the
1650 single individual's federal individual income tax return for the taxable year;
1651 (ii) a head of household:
1652 (A) as defined in Section 2(b), Internal Revenue Code, who files a single federal
1653 individual income tax return for the taxable year; and
1654 (B) who does not claim a dependent under Section 151, Internal Revenue Code, on the
1655 head of household's federal individual income tax return for the taxable year; or
1656 (iii) a married individual who:
1657 (A) does not file a single federal individual income tax return jointly with that married
1658 individual's spouse for the taxable year; and
1659 (B) does not claim a dependent under Section 151, Internal Revenue Code, on that
1660 married individual's federal individual income tax return for the taxable year.
1661 (2) Subject to Subsection (3), and except as provided in Subsection (4), [
1662
1663 equal to the product of:
1664 (a) the difference between:
1665 (i) the total amount the claimant pays during the taxable year for:
1666 (A) insurance offered under a health benefit plan; and
1667 (B) an eligible insured individual; and
1668 (ii) excluded expenses; and
1669 (b) [
1670 (3) The maximum amount of a tax credit described in Subsection (2) a claimant may
1671 claim on a return for a taxable year is:
1672 (a) for a single claimant with no dependents, $300;
1673 (b) for a joint claimant with no dependents, $600; or
1674 (c) for a claimant with dependents, $900.
1675 (4) A claimant may not claim a tax credit under this section if the claimant is eligible to
1676 participate in insurance offered under a health benefit plan maintained and funded in whole or
1677 in part by:
1678 (a) the claimant's employer; or
1679 (b) another person's employer.
1680 (5) A claimant may not carry forward or carry back a tax credit under this section.
1681 Section 31. Section 59-10-1028 is amended to read:
1682 59-10-1028. Nonrefundable tax credit for capital gain transactions on the
1683 exchange of one form of legal tender for another form of legal tender.
1684 (1) As used in this section:
1685 (a) "Capital gain transaction" means a transaction that results in a:
1686 (i) short-term capital gain; or
1687 (ii) long-term capital gain.
1688 (b) "Long-term capital gain" [
1689 Section 1222, Internal Revenue Code.
1690 (c) "Long-term capital loss" [
1691 Section 1222, Internal Revenue Code.
1692 (d) "Net capital gain" means the amount by which the sum of long-term capital gains
1693 and short-term capital gains on a claimant's, estate's, or trust's transactions from exchanges
1694 made for a taxable year of one form of legal tender for another form of legal tender exceeds the
1695 sum of long-term capital losses and short-term capital losses on those transactions for that
1696 taxable year.
1697 (e) "Short-term capital loss" [
1698 Section 1222, Internal Revenue Code.
1699 (f) "Short-term capital gain" [
1700 Section 1222, Internal Revenue Code.
1701 (2) Except as provided in Section 59-10-1002.2, [
1702
1703 the product of:
1704 (a) to the extent a net capital gain is included in taxable income, the amount of the
1705 claimant's, estate's, or trust's net capital gain on capital gain transactions from exchanges made
1706 on or after January 1, 2012, for a taxable year, of one form of legal tender for another form of
1707 legal tender; and
1708 (b) [
1709 (3) A claimant, estate, or trust may not carry forward or carry back a tax credit under
1710 this section.
1711 (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1712 commission may make rules to implement this section.
1713 Section 32. Section 59-10-1033 is amended to read:
1714 59-10-1033. Tax credit related to alternative fuel heavy duty vehicles.
1715 (1) As used in this section:
1716 (a) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air
1717 Conservation Act.
1718 (b) "Director" means the director of the Division of Air Quality appointed under
1719 Section 19-2-107.
1720 (c) "Heavy duty vehicle" means a commercial category 7 or 8 vehicle, according to
1721 vehicle classifications established by the Federal Highway Administration.
1722 (d) "Natural gas" includes compressed natural gas and liquified natural gas.
1723 (e) "Qualified heavy duty vehicle" means a heavy duty vehicle that:
1724 (i) has never been titled or registered and has been driven less than 7,500 miles; and
1725 (ii) is fueled by natural gas , has a 100% electric drivetrain, or has a hydrogen-electric
1726 drivetrain.
1727 (f) "Qualified purchase" means the purchase of a qualified heavy duty vehicle.
1728 (g) "Qualified taxpayer" means a claimant, estate, or trust that:
1729 (i) purchases a qualified heavy duty vehicle; and
1730 (ii) receives a tax credit certificate from the director.
1731 (h) "Small fleet" means 40 or fewer heavy duty vehicles registered in the state and
1732 owned by a single claimant, estate, or trust.
1733 (i) "Tax credit certificate" means a certificate issued by the director certifying that a
1734 claimant, estate, or trust is entitled to a tax credit as provided in this section and stating the
1735 amount of the tax credit.
1736 (2) A qualified taxpayer may claim a nonrefundable tax credit against tax otherwise
1737 due under this chapter:
1738 (a) in an amount equal to:
1739 (i) $25,000, if the qualified purchase of a natural gas heavy duty vehicle occurs during
1740 calendar year 2015 or calendar year 2016;
1741 (ii) $25,000, if the qualified purchase occurs during calendar year 2017;
1742 (iii) $20,000, if the qualified purchase occurs during calendar year 2018;
1743 (iv) $18,000, if the qualified purchase occurs during calendar year 2019; and
1744 (v) $15,000, if the qualified purchase occurs during calendar year 2020; and
1745 (b) if the qualified taxpayer certifies under oath that over 50% of the miles that the
1746 heavy duty vehicle that is the subject of the qualified purchase will travel annually will be
1747 within the state.
1748 (3) (a) Except as provided in Subsection (3)(b), a claimant, estate, or trust may not
1749 submit an application for, and the director may not issue to the claimant, estate, or trust, a tax
1750 credit certificate under this section in any taxable year for a qualified purchase if the director
1751 has already issued tax credit certificates to the claimant, estate, or trust for 10 qualified
1752 purchases in the same taxable year.
1753 (b) If, by May 1 of any year, more than 30% of the aggregate annual total amount of
1754 tax credits under Subsection (5) has not been claimed, a claimant, estate, or trust may submit
1755 an application for, and the director may issue to the claimant, estate, or trust, one or more tax
1756 credit certificates for up to eight additional qualified purchases, even if the director has already
1757 issued to that claimant, estate, or trust tax credit certificates for the maximum number of
1758 qualified purchases allowed under Subsection (3)(a).
1759 (4) (a) Subject to Subsection (4)(b), the director shall reserve 25% of all tax credits
1760 available under this section for qualified taxpayers with a small fleet.
1761 (b) Subsection (4)(a) does not prevent a claimant, estate, or trust from submitting an
1762 application for, or the director from issuing, a tax credit certificate if, before October 1,
1763 qualified taxpayers with a small fleet have not reserved under Subsection (5)(b) tax credits for
1764 the full amount reserved under Subsection (4)(a).
1765 (5) (a) The aggregate annual total amount of tax credits represented by tax credit
1766 certificates that the director issues under this section and Section 59-7-618 may not exceed
1767 $500,000.
1768 (b) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative
1769 Rulemaking Act, make rules to establish a process under which a claimant, estate, or trust may
1770 reserve a potential tax credit under this section for a limited time to allow the claimant, estate,
1771 or trust to make a qualified purchase with the assurance that the aggregate limit under
1772 Subsection (5)(a) will not be met before the claimant, estate, or trust is able to submit an
1773 application for a tax credit certificate.
1774 (6) (a) (i) A claimant, estate, or trust wishing to claim a tax credit under this section
1775 shall, using forms the board requires by rule:
1776 (A) submit to the director an application for a tax credit;
1777 (B) provide the director proof of a qualified purchase; and
1778 (C) submit to the director the certification under oath required under Subsection (2)(b).
1779 (ii) Upon receiving the application, proof, and certification required under Subsection
1780 (6)(a)(i), the director shall provide the claimant, estate, or trust a written statement from the
1781 director acknowledging receipt of the proof.
1782 (b) If the director determines that a claimant, estate, or trust qualifies for a tax credit
1783 under this section, the director shall:
1784 (i) determine the amount of tax credit the claimant, estate, or trust is allowed under this
1785 section; and
1786 (ii) provide the claimant, estate, or trust with a written tax credit certificate:
1787 (A) stating that the claimant, estate, or trust has qualified for a tax credit; and
1788 (B) showing the amount of tax credit for which the claimant, estate, or trust has
1789 qualified under this section.
1790 (c) A qualified taxpayer shall retain the tax credit certificate.
1791 (d) The director shall at least annually submit to the commission a list of all qualified
1792 taxpayers to which the director has issued a tax credit certificate and the amount of each tax
1793 credit represented by the tax credit certificates.
1794 (7) The tax credit under this section is allowed only:
1795 (a) against a tax owed under this chapter in the taxable year by the qualified taxpayer;
1796 (b) for the taxable year in which the qualified purchase occurs; and
1797 (c) once per vehicle.
1798 (8) A qualified taxpayer may not assign a tax credit or a tax credit certificate under this
1799 section to another person.
1800 (9) If the qualified taxpayer receives a tax credit certificate under this section that
1801 allows a tax credit in an amount that exceeds the qualified taxpayer's tax liability under this
1802 chapter for a taxable year, the qualified taxpayer may carry forward the amount of the tax credit
1803 that exceeds the tax liability for a period that does not exceed the next five taxable years.
1804 [
1805
1806
1807 [
1808
1809
1810 Section 33. Section 59-10-1035 is amended to read:
1811 59-10-1035. Nonrefundable tax credit for contribution to state Achieving a Better
1812 Life Experience Program account.
1813 (1) As used in this section:
1814 (a) "Account" means an account in a qualified ABLE program where the designated
1815 beneficiary of the account is a resident of this state.
1816 (b) "Contributor" means a claimant, estate, or trust that:
1817 (i) makes a contribution to an account; and
1818 (ii) receives a statement from the qualified ABLE program itemizing the contribution.
1819 (c) "Designated beneficiary" means the same as that term is defined in 26 U.S.C. Sec.
1820 529A.
1821 (d) "Qualified ABLE program" means the same as that term is defined in Section
1822 35A-12-102.
1823 (2) A contributor to an account may claim a nonrefundable tax credit as provided in
1824 this section.
1825 (3) Subject to the other provisions of this section, the tax credit is equal to the product
1826 of:
1827 (a) [
1828 (b) the total amount of contributions:
1829 (i) the contributor makes for the taxable year; and
1830 (ii) for which the contributor receives a statement from the qualified ABLE program
1831 itemizing the contributions.
1832 (4) A contributor may not claim a tax credit under this section:
1833 (a) for an amount of excess contribution to an account that is returned to the
1834 contributor; or
1835 (b) with respect to an amount the contributor deducts on a federal income tax return.
1836 (5) A tax credit under this section may not be carried forward or carried back.
1837 Section 34. Section 59-10-1041 is enacted to read:
1838 59-10-1041. Nonrefundable tax credit for social security benefits.
1839 (1) As used in this section:
1840 (a) "Head of household filing status" means the same as that term is defined in Section
1841 59-10-1018.
1842 (b) "Joint filing status" means:
1843 (i) spouses who file a single return jointly under this chapter for a taxable year; or
1844 (ii) a surviving spouse, as defined in Section (2)(a), Internal Revenue Code, who files a
1845 single federal individual income tax return for the taxable year.
1846 (c) "Married filing separately status" means a married individual who:
1847 (i) does not file a single federal individual income tax return jointly with that married
1848 individual's spouse for the taxable year; and
1849 (ii) files a single federal individual income tax return for the taxable year.
1850 (d) "Modified adjusted gross income" means the sum of a claimant's:
1851 (i) adjusted gross income for the taxable year for which a tax credit is claimed under
1852 this section;
1853 (ii) any interest income that is not included in adjusted gross income for the taxable
1854 year described in Subsection (1)(d)(i); and
1855 (iii) any addition to adjusted gross income required by Section 59-10-114 for the
1856 taxable year described in Subsection (1)(d)(i).
1857 (e) "Single filing status" means a single individual who files a single federal individual
1858 income tax return for the taxable year.
1859 (f) "Social security benefit" means an amount received by a claimant as a monthly
1860 benefit in accordance with the Social Security Act, 42 U.S.C. Sec. 401 et seq.
1861 (2) Except as provided in Section 59-10-1002.2 and Subsections (3) and (4), a claimant
1862 may claim a nonrefundable tax credit against taxes otherwise due under this part equal to the
1863 product of:
1864 (a) the percentage listed in Subsection 59-10-104(2); and
1865 (b) the claimant's social security benefit that is included in adjusted gross income on
1866 the claimant's federal income tax return for the taxable year.
1867 (3) A claimant may not:
1868 (a) carry forward or carry back a tax credit under this section; or
1869 (b) claim a tax credit under this section if a tax credit is claimed under Section
1870 59-10-1019 on the same return.
1871 (4) The tax credit allowed by Subsection (2) claimed on a return filed under this part
1872 shall be reduced by $.025 for each dollar by which modified adjusted gross income for
1873 purposes of the return exceeds:
1874 (a) for a return that has a married filing separately status, $24,000;
1875 (b) for a return that has a single filing status, $30,000;
1876 (c) for a return that has a head of household filing status, $48,000; or
1877 (d) for a return that has a joint filing status, $48,000.
1878 (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1879 commission may make rules governing the calculation and method for claiming a tax credit
1880 described in this section.
1881 Section 35. Section 59-10-1102.1 is enacted to read:
1882 59-10-1102.1. Apportionment of tax credit.
1883 (1) A part-year resident individual who claims the tax credit described in Section
1884 59-10-1113 may only claim an apportioned amount of the tax credit equal to the product of:
1885 (a) the state income tax percentage for the part-year resident individual; and
1886 (b) the amount of the tax credit that the part-year resident individual would have been
1887 allowed to claim but for the apportionment requirement of this section.
1888 (2) A nonresident individual or a part-year resident individual who claims the tax credit
1889 described in Section 59-10-1114 may only claim an apportioned amount of the tax credit equal
1890 to the product of:
1891 (a) the state income tax percentage for the nonresident individual or the state income
1892 tax percentage for the part-year resident individual; and
1893 (b) the amount of the tax credit that the nonresident individual or the part-year resident
1894 individual would have been allowed to claim but for the apportionment requirement of this
1895 section.
1896 Section 36. Section 59-10-1105 is amended to read:
1897 59-10-1105. Tax credit for hand tools used in farming operations -- Procedures
1898 for refund -- Transfers from General Fund to Education Fund -- Rulemaking authority.
1899 (1) [
1900 trust may claim a refundable tax credit:
1901 (a) as provided in this section;
1902 (b) against taxes otherwise due under this chapter; and
1903 (c) in an amount equal to the amount of tax the claimant, estate, or trust pays:
1904 (i) on a purchase of a hand tool:
1905 (A) if the purchase is made on or after July 1, 2004;
1906 (B) if the hand tool is used or consumed primarily and directly in a farming operation
1907 in the state; and
1908 (C) if the unit purchase price of the hand tool is more than $250; and
1909 (ii) under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
1910 (1)(c)(i).
1911 (2) A claimant, estate, or trust:
1912 (a) shall retain the following to establish the amount of tax the claimant, estate, or trust
1913 paid under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
1914 (1)(c)(i):
1915 (i) a receipt;
1916 (ii) an invoice; or
1917 (iii) a document similar to a document described in Subsection (2)(a)(i) or (ii); and
1918 (b) may not carry forward or carry back a tax credit under this section.
1919 (3) (a) In accordance with any rules prescribed by the commission under Subsection
1920 (3)(b)[
1921 credit under this section if the amount of the tax credit exceeds the claimant's, estate's, or trust's
1922 tax liability under this chapter[
1923 [
1924
1925
1926 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1927 commission may make rules providing procedures for making[
1928 estate, or trust as required by Subsection (3)(a)[
1929 [
1930
1931 Section 37. Section 59-10-1113 is enacted to read:
1932 59-10-1113. Refundable grocery tax credit.
1933 (1) As used in this section:
1934 (a) "Federal poverty level" means the poverty guidelines established by the Secretary of
1935 the United States Department of Health and Human Services under 42 U.S.C. Sec. 9909(2).
1936 (b) "Modified adjusted gross income" means the sum of a claimant's:
1937 (i) adjusted gross income for the taxable year for which a tax credit is claimed under
1938 this section;
1939 (ii) any interest income that is not included in adjusted gross income for the taxable
1940 year described in Subsection (1)(b)(i); and
1941 (iii) any addition to adjusted gross income required by Section 59-10-114 for the
1942 taxable year described in Subsection (1)(b)(i).
1943 (c) "Phaseout amount" means an amount equal to 0.0035% of the amount calculated
1944 under Subsection (2).
1945 (d) "Qualifying dependent" means the same as that term is defined in Section
1946 59-10-1018.
1947 (e) "Qualifying household member" means:
1948 (i) the qualifying individual;
1949 (ii) the qualifying individual's spouse, if the qualifying individual:
1950 (A) files a single return jointly under this chapter with the qualifying individual's
1951 spouse for a taxable year; or
1952 (B) is a surviving spouse, as defined in Section 2(a), Internal Revenue Code, who files
1953 a single federal individual income tax return for a taxable year; and
1954 (iii) a qualifying dependent.
1955 (f) "Qualifying individual" means a resident individual who is not a qualifying
1956 dependent.
1957 (2) Subject to Section 59-10-1102.1 and the provisions of this section, a qualifying
1958 individual may claim a refundable grocery tax credit equal to the sum of:
1959 (a) $125 multiplied by the number of qualifying household members, up to four; and
1960 (b) $50 multiplied by the number of qualifying household members that exceeds four.
1961 (3) (a) If a qualifying household member was incarcerated for any part of the taxable
1962 year for which the qualifying individual claims the grocery tax credit, the qualifying
1963 individual's credit for the qualifying household member is reduced by an amount proportionate
1964 to the time the qualifying household member was incarcerated during the taxable year.
1965 (b) For purposes of calculating the proportionate amount under Subsection (3)(a), the
1966 qualifying household member who was incarcerated is considered:
1967 (i) one of the qualifying household members described in Subsection (2)(a); or
1968 (ii) if four other qualifying household members were incarcerated for part of the
1969 taxable year and each considered one of the four qualifying household members described in
1970 Subsection (2)(a), one of the qualifying household members described in Subsection (2)(b).
1971 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1972 commission may make rules for calculating the proportionate amount described in this
1973 subsection.
1974 (4) The tax credit described in this section is reduced by the phaseout amount for each
1975 dollar by which the claimant's modified adjusted gross income exceeds the lesser of:
1976 (a) 175% of the federal poverty level for the claimant's household size; or
1977 (b) 175% of the federal poverty level for a household with five individuals.
1978 (5) (a) Except as provided in Subsection (5)(b), to claim the tax credit described in this
1979 section, a qualifying individual shall file a return under this chapter.
1980 (b) A qualifying individual who is not required to file a return under this chapter for the
1981 taxable year in which the qualifying individual claims a credit under this section, may claim the
1982 tax credit described in this section by filing a form prescribed by the commission.
1983 Section 38. Section 59-10-1114 is enacted to read:
1984 59-10-1114. Refundable state earned income tax credit.
1985 (1) As used in this section:
1986 (a) "Department" means the Department of Workforce Services created in Section
1987 35A-1-103.
1988 (b) "Federal earned income tax credit" means the federal earned income tax credit
1989 described in Section 32, Internal Revenue Code.
1990 (c) "Qualifying claimant" means a resident individual or nonresident individual who:
1991 (i) is identified by the department as experiencing intergenerational poverty in
1992 accordance with Section 35A-9-214; and
1993 (ii) claimed the federal earned income tax credit for the previous taxable year.
1994 (2) Except as provided in Section 59-10-1102.1, a qualifying claimant may claim a
1995 refundable earned income tax credit equal to 10% of the amount of the federal earned income
1996 tax credit that the qualifying claimant was entitled to claim on a federal income tax return in
1997 the previous taxable year.
1998 (3) (a) The commission shall use the electronic report described in Section 35A-9-214
1999 to verify that a qualifying claimant is identified as experiencing intergenerational poverty.
2000 (b) The commission may not use the electronic report described in Section 35A-9-214
2001 for any other purpose.
2002 Section 39. Section 59-10-1403.3 is amended to read:
2003 59-10-1403.3. Refund of amounts paid or withheld for a pass-through entity.
2004 (1) As used in this section:
2005 (a) "Committee" means the Revenue and Taxation Interim Committee.
2006 (b) "Qualifying excess withholding" means an amount that:
2007 (i) is paid or withheld:
2008 (A) by a pass-through entity that has a different taxable year than the pass-through
2009 entity that requests a refund under this section; and
2010 (B) on behalf of the pass-through entity that requests the refund, if the pass-through
2011 entity that requests the refund also is a pass-through entity taxpayer; and
2012 (ii) is equal to the difference between:
2013 (A) the amount paid or withheld for the taxable year on behalf of the pass-through
2014 entity that requests the refund; and
2015 (B) the product of [
2016 income, described in Subsection 59-10-1403.2(1)(a)(i), of the pass-through entity that requests
2017 the refund.
2018 (2) [
2019 claim a refund of qualifying excess withholding, if the amount of the qualifying excess
2020 withholding is equal to or greater than $250,000.
2021 (3) A pass-through entity that requests a refund of qualifying excess withholding under
2022 this section shall:
2023 (a) apply to the commission for a refund on or, subject to Subsection (4), after the day
2024 on which the pass-through entity files the pass-through entity's income tax return; and
2025 (b) provide any information that the commission may require to determine that the
2026 pass-through entity is eligible to receive the refund.
2027 (4) A pass-through entity shall claim a refund of qualifying excess withholding under
2028 this section within 30 days after the earlier of the day on which:
2029 (a) the pass-through entity files an income tax return; or
2030 (b) the pass-through entity's income tax return is due, including any extension of due
2031 date authorized in statute.
2032 (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2033 commission may make rules establishing the information that a pass-through entity shall
2034 provide to the commission to obtain a refund of qualifying excess withholding under this
2035 section.
2036 [
2037
2038
2039 [
2040
2041 [
2042 [
2043 [
2044 [
2045 [
2046
2047 [
2048
2049 [
2050
2051 Section 40. Section 59-12-102 is amended to read:
2052 59-12-102. Definitions.
2053 As used in this chapter:
2054 (1) "800 service" means a telecommunications service that:
2055 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
2056 (b) is typically marketed:
2057 (i) under the name 800 toll-free calling;
2058 (ii) under the name 855 toll-free calling;
2059 (iii) under the name 866 toll-free calling;
2060 (iv) under the name 877 toll-free calling;
2061 (v) under the name 888 toll-free calling; or
2062 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
2063 Federal Communications Commission.
2064 (2) (a) "900 service" means an inbound toll telecommunications service that:
2065 (i) a subscriber purchases;
2066 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
2067 the subscriber's:
2068 (A) prerecorded announcement; or
2069 (B) live service; and
2070 (iii) is typically marketed:
2071 (A) under the name 900 service; or
2072 (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
2073 Communications Commission.
2074 (b) "900 service" does not include a charge for:
2075 (i) a collection service a seller of a telecommunications service provides to a
2076 subscriber; or
2077 (ii) the following a subscriber sells to the subscriber's customer:
2078 (A) a product; or
2079 (B) a service.
2080 (3) (a) "Admission or user fees" includes season passes.
2081 (b) "Admission or user fees" does not include annual membership dues to private
2082 organizations.
2083 (4) "Affiliate" or "affiliated person" means a person that, with respect to another
2084 person:
2085 (a) has an ownership interest of more than 5%, whether direct or indirect, in that other
2086 person; or
2087 (b) is related to the other person because a third person, or a group of third persons who
2088 are affiliated persons with respect to each other, holds an ownership interest of more than 5%,
2089 whether direct or indirect, in the related persons.
2090 (5) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
2091 November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
2092 Agreement after November 12, 2002.
2093 (6) "Agreement combined tax rate" means the sum of the tax rates:
2094 (a) listed under Subsection (7); and
2095 (b) that are imposed within a local taxing jurisdiction.
2096 (7) "Agreement sales and use tax" means a tax imposed under:
2097 (a) Subsection 59-12-103(2)(a)(i)(A);
2098 (b) Subsection 59-12-103(2)(b)(i);
2099 (c) Subsection 59-12-103(2)(c)(i);
2100 (d) Subsection 59-12-103(2)(d)(i)(A)(I);
2101 (e) Section 59-12-204;
2102 (f) Section 59-12-401;
2103 (g) Section 59-12-402;
2104 (h) Section 59-12-402.1;
2105 (i) Section 59-12-703;
2106 (j) Section 59-12-802;
2107 (k) Section 59-12-804;
2108 (l) Section 59-12-1102;
2109 (m) Section 59-12-1302;
2110 (n) Section 59-12-1402;
2111 (o) Section 59-12-1802;
2112 (p) Section 59-12-2003;
2113 (q) Section 59-12-2103;
2114 (r) Section 59-12-2213;
2115 (s) Section 59-12-2214;
2116 (t) Section 59-12-2215;
2117 (u) Section 59-12-2216;
2118 (v) Section 59-12-2217;
2119 (w) Section 59-12-2218;
2120 (x) Section 59-12-2219; or
2121 (y) Section 59-12-2220.
2122 (8) "Aircraft" means the same as that term is defined in Section 72-10-102.
2123 (9) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
2124 (a) except for:
2125 (i) an airline as defined in Section 59-2-102; or
2126 (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
2127 includes a corporation that is qualified to do business but is not otherwise doing business in the
2128 state, of an airline; and
2129 (b) that has the workers, expertise, and facilities to perform the following, regardless of
2130 whether the business entity performs the following in this state:
2131 (i) check, diagnose, overhaul, and repair:
2132 (A) an onboard system of a fixed wing turbine powered aircraft; and
2133 (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
2134 (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
2135 engine;
2136 (iii) perform at least the following maintenance on a fixed wing turbine powered
2137 aircraft:
2138 (A) an inspection;
2139 (B) a repair, including a structural repair or modification;
2140 (C) changing landing gear; and
2141 (D) addressing issues related to an aging fixed wing turbine powered aircraft;
2142 (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
2143 completely apply new paint to the fixed wing turbine powered aircraft; and
2144 (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
2145 results in a change in the fixed wing turbine powered aircraft's certification requirements by the
2146 authority that certifies the fixed wing turbine powered aircraft.
2147 (10) "Alcoholic beverage" means a beverage that:
2148 (a) is suitable for human consumption; and
2149 (b) contains .5% or more alcohol by volume.
2150 (11) "Alternative energy" means:
2151 (a) biomass energy;
2152 (b) geothermal energy;
2153 (c) hydroelectric energy;
2154 (d) solar energy;
2155 (e) wind energy; or
2156 (f) energy that is derived from:
2157 (i) coal-to-liquids;
2158 (ii) nuclear fuel;
2159 (iii) oil-impregnated diatomaceous earth;
2160 (iv) oil sands;
2161 (v) oil shale;
2162 (vi) petroleum coke; or
2163 (vii) waste heat from:
2164 (A) an industrial facility; or
2165 (B) a power station in which an electric generator is driven through a process in which
2166 water is heated, turns into steam, and spins a steam turbine.
2167 (12) (a) Subject to Subsection (12)(b), "alternative energy electricity production
2168 facility" means a facility that:
2169 (i) uses alternative energy to produce electricity; and
2170 (ii) has a production capacity of two megawatts or greater.
2171 (b) A facility is an alternative energy electricity production facility regardless of
2172 whether the facility is:
2173 (i) connected to an electric grid; or
2174 (ii) located on the premises of an electricity consumer.
2175 (13) (a) "Ancillary service" means a service associated with, or incidental to, the
2176 provision of telecommunications service.
2177 (b) "Ancillary service" includes:
2178 (i) a conference bridging service;
2179 (ii) a detailed communications billing service;
2180 (iii) directory assistance;
2181 (iv) a vertical service; or
2182 (v) a voice mail service.
2183 (14) "Area agency on aging" means the same as that term is defined in Section
2184 62A-3-101.
2185 [
2186
2187 [
2188
2189 [
2190
2191 [
2192 cleaning or washing of tangible personal property if the cleaning or washing labor is primarily
2193 performed by an individual:
2194 (a) who is not the purchaser of the cleaning or washing of the tangible personal
2195 property; and
2196 (b) at the direction of the seller of the cleaning or washing of the tangible personal
2197 property.
2198 [
2199 (a) in the case of vehicles operated over public highways, the holder of credentials
2200 indicating that the vehicle is or will be operated pursuant to both the International Registration
2201 Plan and the International Fuel Tax Agreement;
2202 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
2203 certificate or air carrier's operating certificate; or
2204 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
2205 stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
2206 stock in more than one state.
2207 [
2208 means any of the following that is used as the primary source of energy to produce fuel or
2209 electricity:
2210 (i) material from a plant or tree; or
2211 (ii) other organic matter that is available on a renewable basis, including:
2212 (A) slash and brush from forests and woodlands;
2213 (B) animal waste;
2214 (C) waste vegetable oil;
2215 (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
2216 wastewater residuals, or through the conversion of a waste material through a nonincineration,
2217 thermal conversion process;
2218 (E) aquatic plants; and
2219 (F) agricultural products.
2220 (b) "Biomass energy" does not include:
2221 (i) black liquor; or
2222 (ii) treated woods.
2223 [
2224 personal property, products, or services if the tangible personal property, products, or services
2225 are:
2226 (i) distinct and identifiable; and
2227 (ii) sold for one nonitemized price.
2228 (b) "Bundled transaction" does not include:
2229 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
2230 the basis of the selection by the purchaser of the items of tangible personal property included in
2231 the transaction;
2232 (ii) the sale of real property;
2233 (iii) the sale of services to real property;
2234 (iv) the retail sale of tangible personal property and a service if:
2235 (A) the tangible personal property:
2236 (I) is essential to the use of the service; and
2237 (II) is provided exclusively in connection with the service; and
2238 (B) the service is the true object of the transaction;
2239 (v) the retail sale of two services if:
2240 (A) one service is provided that is essential to the use or receipt of a second service;
2241 (B) the first service is provided exclusively in connection with the second service; and
2242 (C) the second service is the true object of the transaction;
2243 (vi) a transaction that includes tangible personal property or a product subject to
2244 taxation under this chapter and tangible personal property or a product that is not subject to
2245 taxation under this chapter if the:
2246 (A) seller's purchase price of the tangible personal property or product subject to
2247 taxation under this chapter is de minimis; or
2248 (B) seller's sales price of the tangible personal property or product subject to taxation
2249 under this chapter is de minimis; and
2250 (vii) the retail sale of tangible personal property that is not subject to taxation under
2251 this chapter and tangible personal property that is subject to taxation under this chapter if:
2252 (A) that retail sale includes:
2253 (I) food and food ingredients;
2254 (II) a drug;
2255 (III) durable medical equipment;
2256 (IV) mobility enhancing equipment;
2257 (V) an over-the-counter drug;
2258 (VI) a prosthetic device; or
2259 (VII) a medical supply; and
2260 (B) subject to Subsection [
2261 (I) the seller's purchase price of the tangible personal property subject to taxation under
2262 this chapter is 50% or less of the seller's total purchase price of that retail sale; or
2263 (II) the seller's sales price of the tangible personal property subject to taxation under
2264 this chapter is 50% or less of the seller's total sales price of that retail sale.
2265 (c) (i) For purposes of Subsection [
2266 product, or a service that is distinct and identifiable does not include:
2267 (A) packaging that:
2268 (I) accompanies the sale of the tangible personal property, product, or service; and
2269 (II) is incidental or immaterial to the sale of the tangible personal property, product, or
2270 service;
2271 (B) tangible personal property, a product, or a service provided free of charge with the
2272 purchase of another item of tangible personal property, a product, or a service; or
2273 (C) an item of tangible personal property, a product, or a service included in the
2274 definition of "purchase price."
2275 (ii) For purposes of Subsection [
2276 property, a product, or a service is provided free of charge with the purchase of another item of
2277 tangible personal property, a product, or a service if the sales price of the purchased item of
2278 tangible personal property, product, or service does not vary depending on the inclusion of the
2279 tangible personal property, product, or service provided free of charge.
2280 (d) (i) For purposes of Subsection [
2281 price does not include a price that is separately identified by tangible personal property,
2282 product, or service on the following, regardless of whether the following is in paper format or
2283 electronic format:
2284 (A) a binding sales document; or
2285 (B) another supporting sales-related document that is available to a purchaser.
2286 (ii) For purposes of Subsection [
2287 supporting sales-related document that is available to a purchaser includes:
2288 (A) a bill of sale;
2289 (B) a contract;
2290 (C) an invoice;
2291 (D) a lease agreement;
2292 (E) a periodic notice of rates and services;
2293 (F) a price list;
2294 (G) a rate card;
2295 (H) a receipt; or
2296 (I) a service agreement.
2297 (e) (i) For purposes of Subsection [
2298 property or a product subject to taxation under this chapter is de minimis if:
2299 (A) the seller's purchase price of the tangible personal property or product is 10% or
2300 less of the seller's total purchase price of the bundled transaction; or
2301 (B) the seller's sales price of the tangible personal property or product is 10% or less of
2302 the seller's total sales price of the bundled transaction.
2303 (ii) For purposes of Subsection [
2304 (A) shall use the seller's purchase price or the seller's sales price to determine if the
2305 purchase price or sales price of the tangible personal property or product subject to taxation
2306 under this chapter is de minimis; and
2307 (B) may not use a combination of the seller's purchase price and the seller's sales price
2308 to determine if the purchase price or sales price of the tangible personal property or product
2309 subject to taxation under this chapter is de minimis.
2310 (iii) For purposes of Subsection [
2311 service contract to determine if the sales price of tangible personal property or a product is de
2312 minimis.
2313 (f) For purposes of Subsection [
2314 combination of the seller's purchase price and the seller's sales price to determine if tangible
2315 personal property subject to taxation under this chapter is 50% or less of the seller's total
2316 purchase price or sales price of that retail sale.
2317 [
2318 board of the agreement that:
2319 (a) calculates the agreement sales and use tax imposed within a local taxing
2320 jurisdiction:
2321 (i) on a transaction; and
2322 (ii) in the states that are members of the agreement;
2323 (b) determines the amount of agreement sales and use tax to remit to a state that is a
2324 member of the agreement; and
2325 (c) maintains a record of the transaction described in Subsection [
2326 [
2327 (a) by the governing board of the agreement; and
2328 (b) to perform a seller's sales and use tax functions for an agreement sales and use tax,
2329 as outlined in the contract between the governing board of the agreement and the certified
2330 service provider, other than the seller's obligation under Section 59-12-124 to remit a tax on the
2331 seller's own purchases.
2332 [
2333 wearing apparel suitable for general use.
2334 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2335 commission shall make rules:
2336 (i) listing the items that constitute "clothing"; and
2337 (ii) that are consistent with the list of items that constitute "clothing" under the
2338 agreement.
2339 [
2340 fuel.
2341 [
2342 other fuels that does not constitute industrial use under Subsection (57) or residential use under
2343 Subsection [
2344 [
2345 business of transporting passengers, freight, merchandise, or other property for hire within this
2346 state.
2347 (b) (i) "Common carrier" does not include a person that, at the time the person is
2348 traveling to or from that person's place of employment, transports a passenger to or from the
2349 passenger's place of employment.
2350 (ii) For purposes of Subsection [
2351 3, Utah Administrative Rulemaking Act, the commission may make rules defining what
2352 constitutes a person's place of employment.
2353 (c) "Common carrier" does not include a person that provides transportation network
2354 services, as defined in Section 13-51-102.
2355 [
2356 (a) poultry, dairy, and other livestock feed, and their components;
2357 (b) baling ties and twine used in the baling of hay and straw;
2358 (c) fuel used for providing temperature control of orchards and commercial
2359 greenhouses doing a majority of their business in wholesale sales, and for providing power for
2360 off-highway type farm machinery; and
2361 (d) feed, seeds, and seedlings.
2362 [
2363 (a) (i) in digital form; or
2364 (ii) in a form similar to digital form; and
2365 (b) manipulates that information for a result based on a sequence of instructions.
2366 [
2367 (a) a computer to perform a task; or
2368 (b) automatic data processing equipment to perform a task.
2369 [
2370 seller of computer software to provide a customer with:
2371 (a) future updates or upgrades to computer software;
2372 (b) support services with respect to computer software; or
2373 (c) a combination of Subsections [
2374 [
2375 or more participants of an audio conference call or video conference call.
2376 (b) "Conference bridging service" may include providing a telephone number as part of
2377 the ancillary service described in Subsection [
2378 (c) "Conference bridging service" does not include a telecommunications service used
2379 to reach the ancillary service described in Subsection [
2380 [
2381 converted into real property.
2382 [
2383 than tangible storage media.
2384 (32) "Dating referral services" means services that are primarily intended to introduce
2385 or match adults for social or romantic activities, including computer dating or video dating
2386 services.
2387 (33) (a) "Delivery charge" means a charge:
2388 (i) by a seller of:
2389 (A) tangible personal property;
2390 (B) a product transferred electronically; or
2391 (C) a service; and
2392 (ii) for preparation and delivery of the tangible personal property, product transferred
2393 electronically, or services described in Subsection (33)(a)(i) to a location designated by the
2394 purchaser.
2395 (b) "Delivery charge" includes a charge for the following:
2396 (i) transportation;
2397 (ii) shipping;
2398 (iii) postage;
2399 (iv) handling;
2400 (v) crating; or
2401 (vi) packing.
2402 (34) "Detailed telecommunications billing service" means an ancillary service of
2403 separately stating information pertaining to individual calls on a customer's billing statement.
2404 (35) "Dietary supplement" means a product, other than tobacco, that:
2405 (a) is intended to supplement the diet;
2406 (b) contains one or more of the following dietary ingredients:
2407 (i) a vitamin;
2408 (ii) a mineral;
2409 (iii) an herb or other botanical;
2410 (iv) an amino acid;
2411 (v) a dietary substance for use by humans to supplement the diet by increasing the total
2412 dietary intake; or
2413 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
2414 described in Subsections (35)(b)(i) through (v);
2415 (c) (i) except as provided in Subsection (35)(c)(ii), is intended for ingestion in:
2416 (A) tablet form;
2417 (B) capsule form;
2418 (C) powder form;
2419 (D) softgel form;
2420 (E) gelcap form; or
2421 (F) liquid form; or
2422 (ii) if the product is not intended for ingestion in a form described in Subsections
2423 (35)(c)(i)(A) through (F), is not represented:
2424 (A) as conventional food; and
2425 (B) for use as a sole item of:
2426 (I) a meal; or
2427 (II) the diet; and
2428 (d) is required to be labeled as a dietary supplement:
2429 (i) identifiable by the "Supplemental Facts" box found on the label; and
2430 (ii) as required by 21 C.F.R. Sec. 101.36.
2431 (36) (a) "Digital audio work" means a work that results from the fixation of a series of
2432 musical, spoken, or other sounds.
2433 (b) "Digital audio work" includes a ringtone.
2434 (37) "Digital audio-visual work" means a series of related images which, when shown
2435 in succession, imparts an impression of motion, together with accompanying sounds, if any.
2436 (38) "Digital book" means a work that is generally recognized in the ordinary and usual
2437 sense as a book.
2438 (39) (a) "Direct mail" means printed material delivered or distributed by United States
2439 mail or other delivery service:
2440 (i) to:
2441 (A) a mass audience; or
2442 (B) addressees on a mailing list provided:
2443 (I) by a purchaser of the mailing list; or
2444 (II) at the discretion of the purchaser of the mailing list; and
2445 (ii) if the cost of the printed material is not billed directly to the recipients.
2446 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
2447 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
2448 (c) "Direct mail" does not include multiple items of printed material delivered to a
2449 single address.
2450 (40) "Directory assistance" means an ancillary service of providing:
2451 (a) address information; or
2452 (b) telephone number information.
2453 (41) (a) "Disposable home medical equipment or supplies" means medical equipment
2454 or supplies that:
2455 (i) cannot withstand repeated use; and
2456 (ii) are purchased by, for, or on behalf of a person other than:
2457 (A) a health care facility as defined in Section 26-21-2;
2458 (B) a health care provider as defined in Section 78B-3-403;
2459 (C) an office of a health care provider described in Subsection (41)(a)(ii)(B); or
2460 (D) a person similar to a person described in Subsections (41)(a)(ii)(A) through (C).
2461 (b) "Disposable home medical equipment or supplies" does not include:
2462 (i) a drug;
2463 (ii) durable medical equipment;
2464 (iii) a hearing aid;
2465 (iv) a hearing aid accessory;
2466 (v) mobility enhancing equipment; or
2467 (vi) tangible personal property used to correct impaired vision, including:
2468 (A) eyeglasses; or
2469 (B) contact lenses.
2470 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2471 commission may by rule define what constitutes medical equipment or supplies.
2472 (42) "Drilling equipment manufacturer" means a facility:
2473 (a) located in the state;
2474 (b) with respect to which 51% or more of the manufacturing activities of the facility
2475 consist of manufacturing component parts of drilling equipment;
2476 (c) that uses pressure of 800,000 or more pounds per square inch as part of the
2477 manufacturing process; and
2478 (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
2479 manufacturing process.
2480 (43) (a) "Drug" means a compound, substance, or preparation, or a component of a
2481 compound, substance, or preparation that is:
2482 (i) recognized in:
2483 (A) the official United States Pharmacopoeia;
2484 (B) the official Homeopathic Pharmacopoeia of the United States;
2485 (C) the official National Formulary; or
2486 (D) a supplement to a publication listed in Subsections (43)(a)(i)(A) through (C);
2487 (ii) intended for use in the:
2488 (A) diagnosis of disease;
2489 (B) cure of disease;
2490 (C) mitigation of disease;
2491 (D) treatment of disease; or
2492 (E) prevention of disease; or
2493 (iii) intended to affect:
2494 (A) the structure of the body; or
2495 (B) any function of the body.
2496 (b) "Drug" does not include:
2497 (i) food and food ingredients;
2498 (ii) a dietary supplement;
2499 (iii) an alcoholic beverage; or
2500 (iv) a prosthetic device.
2501 (44) (a) Except as provided in Subsection (44)(c), "durable medical equipment" means
2502 equipment that:
2503 (i) can withstand repeated use;
2504 (ii) is primarily and customarily used to serve a medical purpose;
2505 (iii) generally is not useful to a person in the absence of illness or injury; and
2506 (iv) is not worn in or on the body.
2507 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
2508 equipment described in Subsection (44)(a).
2509 (c) "Durable medical equipment" does not include mobility enhancing equipment.
2510 (45) "Electronic" means:
2511 (a) relating to technology; and
2512 (b) having:
2513 (i) electrical capabilities;
2514 (ii) digital capabilities;
2515 (iii) magnetic capabilities;
2516 (iv) wireless capabilities;
2517 (v) optical capabilities;
2518 (vi) electromagnetic capabilities; or
2519 (vii) capabilities similar to Subsections (45)(b)(i) through (vi).
2520 (46) "Electronic financial payment service" means an establishment:
2521 (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
2522 Clearinghouse Activities, of the 2012 North American Industry Classification System of the
2523 federal Executive Office of the President, Office of Management and Budget; and
2524 (b) that performs electronic financial payment services.
2525 (47) "Employee" means the same as that term is defined in Section 59-10-401.
2526 (48) "Fixed guideway" means a public transit facility that uses and occupies:
2527 (a) rail for the use of public transit; or
2528 (b) a separate right-of-way for the use of public transit.
2529 (49) "Fixed wing turbine powered aircraft" means an aircraft that:
2530 (a) is powered by turbine engines;
2531 (b) operates on jet fuel; and
2532 (c) has wings that are permanently attached to the fuselage of the aircraft.
2533 (50) "Fixed wireless service" means a telecommunications service that provides radio
2534 communication between fixed points.
2535 (51) (a) "Food and food ingredients" means substances:
2536 (i) regardless of whether the substances are in:
2537 (A) liquid form;
2538 (B) concentrated form;
2539 (C) solid form;
2540 (D) frozen form;
2541 (E) dried form; or
2542 (F) dehydrated form; and
2543 (ii) that are:
2544 (A) sold for:
2545 (I) ingestion by humans; or
2546 (II) chewing by humans; and
2547 (B) consumed for the substance's:
2548 (I) taste; or
2549 (II) nutritional value.
2550 (b) "Food and food ingredients" includes an item described in Subsection [
2551 (99)(b)(iii).
2552 (c) "Food and food ingredients" does not include:
2553 (i) an alcoholic beverage;
2554 (ii) tobacco; or
2555 (iii) prepared food.
2556 (52) (a) "Fundraising sales" means sales:
2557 (i) (A) made by a school; or
2558 (B) made by a school student;
2559 (ii) that are for the purpose of raising funds for the school to purchase equipment,
2560 materials, or provide transportation; and
2561 (iii) that are part of an officially sanctioned school activity.
2562 (b) For purposes of Subsection (52)(a)(iii), "officially sanctioned school activity"
2563 means a school activity:
2564 (i) that is conducted in accordance with a formal policy adopted by the school or school
2565 district governing the authorization and supervision of fundraising activities;
2566 (ii) that does not directly or indirectly compensate an individual teacher or other
2567 educational personnel by direct payment, commissions, or payment in kind; and
2568 (iii) the net or gross revenues from which are deposited in a dedicated account
2569 controlled by the school or school district.
2570 (53) "Geothermal energy" means energy contained in heat that continuously flows
2571 outward from the earth that is used as the sole source of energy to produce electricity.
2572 (54) "Governing board of the agreement" means the governing board of the agreement
2573 that is:
2574 (a) authorized to administer the agreement; and
2575 (b) established in accordance with the agreement.
2576 (55) (a) [
2577 entity" means:
2578 (i) the executive branch of the state, including all departments, institutions, boards,
2579 divisions, bureaus, offices, commissions, and committees;
2580 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
2581 Administrative Office of the Courts, and similar administrative units in the judicial branch;
2582 (iii) the legislative branch of the state, including the House of Representatives, the
2583 Senate, the Legislative Printing Office, the Office of Legislative Research and General
2584 Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
2585 Analyst;
2586 (iv) the National Guard;
2587 (v) an independent entity as defined in Section 63E-1-102; or
2588 (vi) a political subdivision as defined in Section 17B-1-102.
2589 (b) "Governmental entity" does not include the state systems of public and higher
2590 education, including:
2591 (i) a school;
2592 (ii) the State Board of Education;
2593 (iii) the State Board of Regents; or
2594 (iv) an institution of higher education described in Section 53B-1-102.
2595 (56) "Hydroelectric energy" means water used as the sole source of energy to produce
2596 electricity.
2597 (57) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
2598 other fuels:
2599 (a) in mining or extraction of minerals;
2600 (b) in agricultural operations to produce an agricultural product up to the time of
2601 harvest or placing the agricultural product into a storage facility, including:
2602 (i) commercial greenhouses;
2603 (ii) irrigation pumps;
2604 (iii) farm machinery;
2605 (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
2606 under Title 41, Chapter 1a, Part 2, Registration; and
2607 (v) other farming activities;
2608 (c) in manufacturing tangible personal property at an establishment described in:
2609 (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
2610 the federal Executive Office of the President, Office of Management and Budget; or
2611 (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
2612 American Industry Classification System of the federal Executive Office of the President,
2613 Office of Management and Budget;
2614 (d) by a scrap recycler if:
2615 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
2616 one or more of the following items into prepared grades of processed materials for use in new
2617 products:
2618 (A) iron;
2619 (B) steel;
2620 (C) nonferrous metal;
2621 (D) paper;
2622 (E) glass;
2623 (F) plastic;
2624 (G) textile; or
2625 (H) rubber; and
2626 (ii) the new products under Subsection (57)(d)(i) would otherwise be made with
2627 nonrecycled materials; or
2628 (e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
2629 cogeneration facility as defined in Section 54-2-1.
2630 [
2631
2632 [
2633 [
2634 [
2635 [
2636 [
2637 [
2638 [
2639 [
2640 [
2641 (58) (a) "Installation charge" means a charge:
2642 (i) by a seller of:
2643 (A) tangible personal property; or
2644 (B) a product transferred electronically; and
2645 (ii) for installing the tangible personal property or the product transferred electronically
2646 described in Subsection (58)(a)(i).
2647 (b) "Installation charge" does not include a charge for:
2648 (i) permanently attaching tangible personal property to real property; or
2649 (ii) converting tangible personal property to real property.
2650 (59) "Institution of higher education" means an institution of higher education listed in
2651 Section 53B-2-101.
2652 (60) (a) "Lease" or "rental" means a transfer of possession or control of tangible
2653 personal property or a product transferred electronically for:
2654 (i) (A) a fixed term; or
2655 (B) an indeterminate term; and
2656 (ii) consideration.
2657 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
2658 amount of consideration may be increased or decreased by reference to the amount realized
2659 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
2660 Code.
2661 (c) "Lease" or "rental" does not include:
2662 (i) a transfer of possession or control of property under a security agreement or
2663 deferred payment plan that requires the transfer of title upon completion of the required
2664 payments;
2665 (ii) a transfer of possession or control of property under an agreement that requires the
2666 transfer of title:
2667 (A) upon completion of required payments; and
2668 (B) if the payment of an option price does not exceed the greater of:
2669 (I) $100; or
2670 (II) 1% of the total required payments; or
2671 (iii) providing tangible personal property along with an operator for a fixed period of
2672 time or an indeterminate period of time if the operator is necessary for equipment to perform as
2673 designed.
2674 (d) For purposes of Subsection (60)(c)(iii), an operator is necessary for equipment to
2675 perform as designed if the operator's duties exceed the:
2676 (i) set-up of tangible personal property;
2677 (ii) maintenance of tangible personal property; or
2678 (iii) inspection of tangible personal property.
2679 (61) "Life science establishment" means an establishment in this state that is classified
2680 under the following NAICS codes of the 2007 North American Industry Classification System
2681 of the federal Executive Office of the President, Office of Management and Budget:
2682 (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
2683 (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
2684 Manufacturing; or
2685 (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
2686 (62) "Life science research and development facility" means a facility owned, leased,
2687 or rented by a life science establishment if research and development is performed in 51% or
2688 more of the total area of the facility.
2689 (63) "Load and leave" means delivery to a purchaser by use of a tangible storage media
2690 if the tangible storage media is not physically transferred to the purchaser.
2691 (64) "Local taxing jurisdiction" means a:
2692 (a) county that is authorized to impose an agreement sales and use tax;
2693 (b) city that is authorized to impose an agreement sales and use tax; or
2694 (c) town that is authorized to impose an agreement sales and use tax.
2695 (65) "Manufactured home" means the same as that term is defined in Section
2696 15A-1-302.
2697 (66) "Manufacturing facility" means:
2698 (a) an establishment described in:
2699 (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
2700 the federal Executive Office of the President, Office of Management and Budget; or
2701 (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
2702 American Industry Classification System of the federal Executive Office of the President,
2703 Office of Management and Budget;
2704 (b) a scrap recycler if:
2705 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
2706 one or more of the following items into prepared grades of processed materials for use in new
2707 products:
2708 (A) iron;
2709 (B) steel;
2710 (C) nonferrous metal;
2711 (D) paper;
2712 (E) glass;
2713 (F) plastic;
2714 (G) textile; or
2715 (H) rubber; and
2716 (ii) the new products under Subsection (66)(b)(i) would otherwise be made with
2717 nonrecycled materials; or
2718 (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
2719 placed in service on or after May 1, 2006.
2720 (67) (a) "Marketplace" means a physical or electronic place, platform, or forum where
2721 tangible personal property, a product transferred electronically, or a service is offered for sale.
2722 (b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a
2723 dedicated sales software application.
2724 (68) (a) "Marketplace facilitator" means a person, including an affiliate of the person,
2725 that enters into a contract, an agreement, or otherwise with sellers, for consideration, to
2726 facilitate the sale of a seller's product through a marketplace that the person owns, operates, or
2727 controls and that directly or indirectly:
2728 (i) does any of the following:
2729 (A) lists, makes available, or advertises tangible personal property, a product
2730 transferred electronically, or a service for sale by a marketplace seller on a marketplace that the
2731 person owns, operates, or controls;
2732 (B) facilitates the sale of a marketplace seller's tangible personal property, product
2733 transferred electronically, or service by transmitting or otherwise communicating an offer or
2734 acceptance of a retail sale between the marketplace seller and a purchaser using the
2735 marketplace;
2736 (C) owns, rents, licenses, makes available, or operates any electronic or physical
2737 infrastructure or any property, process, method, copyright, trademark, or patent that connects a
2738 marketplace seller to a purchaser for the purpose of making a retail sale of tangible personal
2739 property, a product transferred electronically, or a service;
2740 (D) provides a marketplace for making, or otherwise facilitates, a retail sale of tangible
2741 personal property, a product transferred electronically, or a service, regardless of ownership or
2742 control of the tangible personal property, the product transferred electronically, or the service
2743 that is the subject of the retail sale;
2744 (E) provides software development or research and development activities related to
2745 any activity described in this Subsection (68)(a)(i), if the software development or research and
2746 development activity is directly related to the person's marketplace;
2747 (F) provides or offers fulfillment or storage services for a marketplace seller;
2748 (G) sets prices for the sale of tangible personal property, a product transferred
2749 electronically, or a service by a marketplace seller;
2750 (H) provides or offers customer service to a marketplace seller or a marketplace seller's
2751 purchaser or accepts or assists with taking orders, returns, or exchanges of tangible personal
2752 property, a product transferred electronically, or a service sold by a marketplace seller on the
2753 person's marketplace; or
2754 (I) brands or otherwise identifies sales as those of the person; and
2755 (ii) does any of the following:
2756 (A) collects the sales price or purchase price of a retail sale of tangible personal
2757 property, a product transferred electronically, or a service;
2758 (B) provides payment processing services for a retail sale of tangible personal property,
2759 a product transferred electronically, or a service;
2760 (C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee, closing
2761 fee, a fee for inserting or making available tangible personal property, a product transferred
2762 electronically, or a service on the person's marketplace, or other consideration for the
2763 facilitation of a retail sale of tangible personal property, a product transferred electronically, or
2764 a service, regardless of ownership or control of the tangible personal property, the product
2765 transferred electronically, or the service that is the subject of the retail sale;
2766 (D) through terms and conditions, an agreement, or another arrangement with a third
2767 person, collects payment from a purchase for a retail sale of tangible personal property, a
2768 product transferred electronically, or a service and transmits that payment to the marketplace
2769 seller, regardless of whether the third person receives compensation or other consideration in
2770 exchange for the service; or
2771 (E) provides a virtual currency for a purchaser to use to purchase tangible personal
2772 property, a product transferred electronically, or service offered for sale.
2773 (b) "Marketplace facilitator" does not include a person that only provides payment
2774 processing services.
2775 (69) "Marketplace seller" means a seller that makes one or more retail sales through a
2776 marketplace that a marketplace facilitator owns, operates, or controls, regardless of whether the
2777 seller is required to be registered to collect and remit the tax under this part.
2778 (70) "Member of the immediate family of the producer" means a person who is related
2779 to a producer described in Subsection 59-12-104[
2780 (a) child or stepchild, regardless of whether the child or stepchild is:
2781 (i) an adopted child or adopted stepchild; or
2782 (ii) a foster child or foster stepchild;
2783 (b) grandchild or stepgrandchild;
2784 (c) grandparent or stepgrandparent;
2785 (d) nephew or stepnephew;
2786 (e) niece or stepniece;
2787 (f) parent or stepparent;
2788 (g) sibling or stepsibling;
2789 (h) spouse;
2790 (i) person who is the spouse of a person described in Subsections (70)(a) through (g);
2791 or
2792 (j) person similar to a person described in Subsections (70)(a) through (i) as
2793 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
2794 Administrative Rulemaking Act.
2795 (71) (a) "Menstrual products" means:
2796 (i) tampons;
2797 (ii) panty liners;
2798 (iii) menstrual cups;
2799 (iv) sanitary napkins; or
2800 (v) other similar tangible personal property designed for hygiene in connection with the
2801 human menstrual cycle.
2802 (b) "Menstrual products" does not include:
2803 (i) soaps or cleaning solutions;
2804 (ii) shampoo;
2805 (iii) toothpaste;
2806 (iv) mouthwash;
2807 (v) antiperspirants; or
2808 (vi) suntan lotions or screens.
2809 [
2810 15A-1-302.
2811 [
2812 defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
2813 [
2814 regardless of the technology used, if:
2815 (i) the origination point of the conveyance, routing, or transmission is not fixed;
2816 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
2817 (iii) the origination point described in Subsection [
2818 point described in Subsection [
2819 (b) "Mobile wireless service" includes a telecommunications service that is provided
2820 by a commercial mobile radio service provider.
2821 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2822 commission may by rule define "commercial mobile radio service provider."
2823 [
2824 enhancing equipment" means equipment that is:
2825 (i) primarily and customarily used to provide or increase the ability to move from one
2826 place to another;
2827 (ii) appropriate for use in a:
2828 (A) home; or
2829 (B) motor vehicle; and
2830 (iii) not generally used by persons with normal mobility.
2831 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
2832 the equipment described in Subsection [
2833 (c) "Mobility enhancing equipment" does not include:
2834 (i) a motor vehicle;
2835 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
2836 vehicle manufacturer;
2837 (iii) durable medical equipment; or
2838 (iv) a prosthetic device.
2839 [
2840 selected a certified service provider as the seller's agent to perform the seller's sales and use tax
2841 functions for agreement sales and use taxes, as outlined in the contract between the governing
2842 board of the agreement and the certified service provider, other than the seller's obligation
2843 under Section 59-12-124 to remit a tax on the seller's own purchases.
2844 [
2845 (a) except as provided in Subsection [
2846 system to perform the seller's sales tax functions for agreement sales and use taxes; and
2847 (b) retains responsibility for remitting all of the sales tax:
2848 (i) collected by the seller; and
2849 (ii) to the appropriate local taxing jurisdiction.
2850 [
2851 registered under the agreement that has:
2852 (i) sales in at least five states that are members of the agreement;
2853 (ii) total annual sales [
2854 (iii) a proprietary system that calculates the amount of tax:
2855 (A) for an agreement sales and use tax; and
2856 (B) due to each local taxing jurisdiction; and
2857 (iv) entered into a performance agreement with the governing board of the agreement.
2858 (b) [
2859 group of sellers using the same proprietary system.
2860 [
2861 not a model 1 seller, model 2 seller, or model 3 seller.
2862 [
2863 [
2864 41-1a-102.
2865 [
2866 (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
2867 other hydrocarbons, or otherwise treated;
2868 (b) yield mixtures of liquid hydrocarbon; and
2869 (c) require further processing other than mechanical blending before becoming finished
2870 petroleum products.
2871 [
2872 kerogen material that yields petroleum upon heating and distillation.
2873 [
2874 software maintenance contract that a customer is not obligated to purchase as a condition to the
2875 retail sale of computer software.
2876 [
2877 energy.
2878 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
2879 personal property.
2880 [
2881 transmission of a coded radio signal for the purpose of activating a specific pager.
2882 (b) For purposes of Subsection [
2883 includes a transmission by message or sound.
2884 (87) "Pawn transaction" means the same as that term is defined in Section 13-32a-102.
2885 [
2886 13-32a-102.
2887 [
2888
2889 [
2890 property attached to real property:
2891 (i) the attachment of the tangible personal property to the real property:
2892 (A) is essential to the use of the tangible personal property; and
2893 (B) suggests that the tangible personal property will remain attached to the real
2894 property in the same place over the useful life of the tangible personal property; or
2895 (ii) if the tangible personal property is detached from the real property, the detachment
2896 would:
2897 (A) cause substantial damage to the tangible personal property; or
2898 (B) require substantial alteration or repair of the real property to which the tangible
2899 personal property is attached.
2900 (b) "Permanently attached to real property" includes:
2901 (i) the attachment of an accessory to the tangible personal property if the accessory is:
2902 (A) essential to the operation of the tangible personal property; and
2903 (B) attached only to facilitate the operation of the tangible personal property;
2904 (ii) a temporary detachment of tangible personal property from real property for a
2905 repair or renovation if the repair or renovation is performed where the tangible personal
2906 property and real property are located; or
2907 (iii) property attached to oil, gas, or water pipelines, except for the property listed in
2908 Subsection [
2909 (c) "Permanently attached to real property" does not include:
2910 (i) the attachment of portable or movable tangible personal property to real property if
2911 that portable or movable tangible personal property is attached to real property only for:
2912 (A) convenience;
2913 (B) stability; or
2914 (C) for an obvious temporary purpose;
2915 (ii) the detachment of tangible personal property from real property except for the
2916 detachment described in Subsection [
2917 (iii) an attachment of the following tangible personal property to real property if the
2918 attachment to real property is only through a line that supplies water, electricity, gas,
2919 telecommunications, cable, or supplies a similar item as determined by the commission by rule
2920 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
2921 (A) a computer;
2922 (B) a telephone;
2923 (C) a television; or
2924 (D) tangible personal property similar to Subsections [
2925 as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
2926 Administrative Rulemaking Act; or
2927 (iv) an item listed in Subsection [
2928 [
2929 association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
2930 city, municipality, district, or other local governmental entity of the state, or any group or
2931 combination acting as a unit.
2932 (91) (a) "Personal transportation service" means the transportation of one or more
2933 individuals by motor vehicle.
2934 (b) "Personal transportation" includes taxicab service, limousine service, driver service,
2935 shuttle service, scenic or sightseeing transportation, and a prearranged ride as defined in
2936 Section 13-51-102.
2937 (c) "Personal transportation service" does not include:
2938 (i) services provided by or through a governmental entity;
2939 (ii) transportation by ambulance as defined in Section 26-8a-102;
2940 (iii) transportation provided in connection with a funeral; or
2941 (iv) transportation by a low-speed vehicle, as defined in Section 41-6a-102, within a
2942 county of the first class, as classified in Section 17-50-501.
2943 (92) (a) "Pet boarding or care" means the furnishing of:
2944 (i) boarding for a pet; or
2945 (ii) daytime care for a pet at a location other than the pet owner's residence where the
2946 pet is dropped off and picked up.
2947 (b) "Pet boarding or care" does not include a service described in Subsection (92)(a):
2948 (i) by a veterinarian licensed under Title 58, Chapter 28, Veterinary Practice Act, in
2949 conjunction with a veterinary medical service; or
2950 (ii) for a working animal, livestock, or a laboratory animal.
2951 (93) (a) "Pet grooming" means:
2952 (i) cleaning, maintaining, or enhancing the physical appearance of a pet; or
2953 (ii) furnishing other hygienic care for a pet.
2954 (b) "Pet grooming" does not include a service described in Subsection (93)(a):
2955 (i) by a veterinarian licensed under Title 58, Chapter 28, Veterinary Practice Act, in
2956 conjunction with a veterinary medical service; or
2957 (ii) for a working animal, livestock, or a laboratory animal.
2958 [
2959 (a) for telecommunications service other than mobile telecommunications service,
2960 means the street address representative of where the customer's use of the telecommunications
2961 service primarily occurs, which shall be:
2962 (i) the residential street address of the customer; or
2963 (ii) the primary business street address of the customer; or
2964 (b) for mobile telecommunications service, means the same as that term is defined in
2965 the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
2966 [
2967 obtains by making a payment on a call-by-call basis:
2968 (i) through the use of a:
2969 (A) bank card;
2970 (B) credit card;
2971 (C) debit card; or
2972 (D) travel card; or
2973 (ii) by a charge made to a telephone number that is not associated with the origination
2974 or termination of the telecommunications service.
2975 (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
2976 service, that would be a prepaid wireless calling service if the service were exclusively a
2977 telecommunications service.
2978 [
2979 a medium described in Subsection 59-12-104[
2980 [
2981 (a) that allows a purchaser access to telecommunications service that is exclusively
2982 telecommunications service;
2983 (b) that:
2984 (i) is paid for in advance; and
2985 (ii) enables the origination of a call using an:
2986 (A) access number; or
2987 (B) authorization code;
2988 (c) that is dialed:
2989 (i) manually; or
2990 (ii) electronically; and
2991 (d) sold in predetermined units or dollars that decline:
2992 (i) by a known amount; and
2993 (ii) with use.
2994 [
2995 (a) that provides the right to utilize:
2996 (i) mobile wireless service; and
2997 (ii) other service that is not a telecommunications service, including:
2998 (A) the download of a product transferred electronically;
2999 (B) a content service; or
3000 (C) an ancillary service;
3001 (b) that:
3002 (i) is paid for in advance; and
3003 (ii) enables the origination of a call using an:
3004 (A) access number; or
3005 (B) authorization code;
3006 (c) that is dialed:
3007 (i) manually; or
3008 (ii) electronically; and
3009 (d) sold in predetermined units or dollars that decline:
3010 (i) by a known amount; and
3011 (ii) with use.
3012 [
3013 (i) food:
3014 (A) sold in a heated state; or
3015 (B) heated by a seller;
3016 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
3017 item; or
3018 (iii) except as provided in Subsection [
3019 provided by the seller, including a:
3020 (A) plate;
3021 (B) knife;
3022 (C) fork;
3023 (D) spoon;
3024 (E) glass;
3025 (F) cup;
3026 (G) napkin; or
3027 (H) straw.
3028 (b) "Prepared food" does not include:
3029 (i) food that a seller only:
3030 (A) cuts;
3031 (B) repackages; or
3032 (C) pasteurizes; or
3033 (ii) (A) the following:
3034 (I) raw egg;
3035 (II) raw fish;
3036 (III) raw meat;
3037 (IV) raw poultry; or
3038 (V) a food containing an item described in Subsections [
3039 (IV); and
3040 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
3041 Food and Drug Administration's Food Code that a consumer cook the items described in
3042 Subsection [
3043 (iii) the following if sold without eating utensils provided by the seller:
3044 (A) food and food ingredients sold by a seller if the seller's proper primary
3045 classification under the 2002 North American Industry Classification System of the federal
3046 Executive Office of the President, Office of Management and Budget, is manufacturing in
3047 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
3048 Manufacturing;
3049 (B) food and food ingredients sold in an unheated state:
3050 (I) by weight or volume; and
3051 (II) as a single item; or
3052 (C) a bakery item, including:
3053 (I) a bagel;
3054 (II) a bar;
3055 (III) a biscuit;
3056 (IV) bread;
3057 (V) a bun;
3058 (VI) a cake;
3059 (VII) a cookie;
3060 (VIII) a croissant;
3061 (IX) a danish;
3062 (X) a donut;
3063 (XI) a muffin;
3064 (XII) a pastry;
3065 (XIII) a pie;
3066 (XIV) a roll;
3067 (XV) a tart;
3068 (XVI) a torte; or
3069 (XVII) a tortilla.
3070 (c) An eating utensil provided by the seller does not include the following used to
3071 transport the food:
3072 (i) a container; or
3073 (ii) packaging.
3074 [
3075 (a) (i) orally;
3076 (ii) in writing;
3077 (iii) electronically; or
3078 (iv) by any other manner of transmission; and
3079 (b) by a licensed practitioner authorized by the laws of a state.
3080 [
3081 "Prewritten computer software" means computer software that is not designed and developed:
3082 (i) by the author or other creator of the computer software; and
3083 (ii) to the specifications of a specific purchaser.
3084 (b) "Prewritten computer software" includes:
3085 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
3086 software is not designed and developed:
3087 (A) by the author or other creator of the computer software; and
3088 (B) to the specifications of a specific purchaser;
3089 (ii) computer software designed and developed by the author or other creator of the
3090 computer software to the specifications of a specific purchaser if the computer software is sold
3091 to a person other than the purchaser; or
3092 (iii) except as provided in Subsection [
3093 a prewritten portion of prewritten computer software:
3094 (A) that is modified or enhanced to any degree; and
3095 (B) if the modification or enhancement described in Subsection [
3096 is designed and developed to the specifications of a specific purchaser.
3097 (c) "Prewritten computer software" does not include a modification or enhancement
3098 described in Subsection [
3099 are:
3100 (i) reasonable; and
3101 (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), separately stated on the
3102 invoice or other statement of price provided to the purchaser at the time of sale or later, as
3103 demonstrated by:
3104 (A) the books and records the seller keeps at the time of the transaction in the regular
3105 course of business, including books and records the seller keeps at the time of the transaction in
3106 the regular course of business for nontax purposes;
3107 (B) a preponderance of the facts and circumstances at the time of the transaction; and
3108 (C) the understanding of all of the parties to the transaction.
3109 [
3110 service:
3111 (i) that entitles a customer to exclusive or priority use of one or more communications
3112 channels between or among termination points; and
3113 (ii) regardless of the manner in which the one or more communications channels are
3114 connected.
3115 (b) "Private communications service" includes the following provided in connection
3116 with the use of one or more communications channels:
3117 (i) an extension line;
3118 (ii) a station;
3119 (iii) switching capacity; or
3120 (iv) another associated service that is provided in connection with the use of one or
3121 more communications channels as defined in Section 59-12-215.
3122 [
3123 transferred electronically" means a product transferred electronically that would be subject to a
3124 tax under this chapter if that product was transferred in a manner other than electronically.
3125 (b) "Product transferred electronically" does not include:
3126 (i) an ancillary service;
3127 (ii) computer software; or
3128 (iii) a telecommunications service.
3129 [
3130 (i) artificially replace a missing portion of the body;
3131 (ii) prevent or correct a physical deformity or physical malfunction; or
3132 (iii) support a weak or deformed portion of the body.
3133 (b) "Prosthetic device" includes:
3134 (i) parts used in the repairs or renovation of a prosthetic device;
3135 (ii) replacement parts for a prosthetic device;
3136 (iii) a dental prosthesis; or
3137 (iv) a hearing aid.
3138 (c) "Prosthetic device" does not include:
3139 (i) corrective eyeglasses; or
3140 (ii) contact lenses.
3141 [
3142 (i) for human wear; and
3143 (ii) that is:
3144 (A) designed as protection:
3145 (I) to the wearer against injury or disease; or
3146 (II) against damage or injury of other persons or property; and
3147 (B) not suitable for general use.
3148 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3149 commission shall make rules:
3150 (i) listing the items that constitute "protective equipment"; and
3151 (ii) that are consistent with the list of items that constitute "protective equipment"
3152 under the agreement.
3153 [
3154 any written or printed matter, other than a photocopy:
3155 (i) regardless of:
3156 (A) characteristics;
3157 (B) copyright;
3158 (C) form;
3159 (D) format;
3160 (E) method of reproduction; or
3161 (F) source; and
3162 (ii) made available in printed or electronic format.
3163 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3164 commission may by rule define the term "photocopy."
3165 [
3166 consideration:
3167 (i) valued in money; and
3168 (ii) for which tangible personal property, a product transferred electronically, or
3169 services are:
3170 (A) sold;
3171 (B) leased; or
3172 (C) rented.
3173 (b) "Purchase price" and "sales price" include:
3174 (i) the seller's cost of the tangible personal property, a product transferred
3175 electronically, or services sold;
3176 (ii) expenses of the seller, including:
3177 (A) the cost of materials used;
3178 (B) a labor cost;
3179 (C) a service cost;
3180 (D) interest;
3181 (E) a loss;
3182 (F) the cost of transportation to the seller; or
3183 (G) a tax imposed on the seller;
3184 (iii) a delivery charge; or
3185 (iv) an installation charge;
3186 [
3187 [
3188 (A) (I) the seller actually receives consideration from a person other than the purchaser;
3189 and
3190 (II) the consideration described in Subsection [
3191 related to a price reduction or discount on the sale;
3192 (B) the seller has an obligation to pass the price reduction or discount through to the
3193 purchaser;
3194 (C) the amount of the consideration attributable to the sale is fixed and determinable by
3195 the seller at the time of the sale to the purchaser; and
3196 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
3197 seller to claim a price reduction or discount; and
3198 (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
3199 coupon, or other documentation with the understanding that the person other than the seller
3200 will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
3201 (II) the purchaser identifies that purchaser to the seller as a member of a group or
3202 organization allowed a price reduction or discount, except that a preferred customer card that is
3203 available to any patron of a seller does not constitute membership in a group or organization
3204 allowed a price reduction or discount; or
3205 (III) the price reduction or discount is identified as a third party price reduction or
3206 discount on the:
3207 (Aa) invoice the purchaser receives; or
3208 (Bb) certificate, coupon, or other documentation the purchaser presents.
3209 (c) "Purchase price" and "sales price" do not include:
3210 (i) a discount:
3211 (A) in a form including:
3212 (I) cash;
3213 (II) term; or
3214 (III) coupon;
3215 (B) that is allowed by a seller;
3216 (C) taken by a purchaser on a sale; and
3217 (D) that is not reimbursed by a third party; or
3218 (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), the following if separately
3219 stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
3220 sale or later, as demonstrated by the books and records the seller keeps at the time of the
3221 transaction in the regular course of business, including books and records the seller keeps at the
3222 time of the transaction in the regular course of business for nontax purposes, by a
3223 preponderance of the facts and circumstances at the time of the transaction, and by the
3224 understanding of all of the parties to the transaction:
3225 (A) the following from credit extended on the sale of tangible personal property or
3226 services:
3227 (I) a carrying charge;
3228 (II) a financing charge; or
3229 (III) an interest charge;
3230 [
3231 [
3232 [
3233 [
3234 [
3235 (a) a sale of tangible personal property is made;
3236 (b) a product is transferred electronically; or
3237 (c) a service is furnished.
3238 [
3239
3240 (a) houses a group of networked server computers in one physical location in order to
3241 [
3242 and information;
3243 (b) [
3244 (c) [
3245 (d) [
3246 (e) [
3247 (i) the [
3248 (ii) a person under common ownership, as defined in Section 59-7-101, of the
3249 [
3250 (f) [
3251 (i) the [
3252 (ii) a person under common ownership, as defined in Section 59-7-101, of the
3253 [
3254 [
3255 (a) rented to a guest for value three or more times during a calendar year; or
3256 (b) advertised or held out to the public as a place that is regularly rented to guests for
3257 value.
3258 [
3259 [
3260 renovations of tangible personal property" means:
3261 (i) a repair or renovation of tangible personal property that is not permanently attached
3262 to real property; or
3263 (ii) attaching tangible personal property or a product transferred electronically to other
3264 tangible personal property or detaching tangible personal property or a product transferred
3265 electronically from other tangible personal property if:
3266 (A) the other tangible personal property to which the tangible personal property or
3267 product transferred electronically is attached or from which the tangible personal property or
3268 product transferred electronically is detached is not permanently attached to real property; and
3269 (B) the attachment of tangible personal property or a product transferred electronically
3270 to other tangible personal property or detachment of tangible personal property or a product
3271 transferred electronically from other tangible personal property is made in conjunction with a
3272 repair or replacement of tangible personal property or a product transferred electronically.
3273 (b) "Repairs or renovations of tangible personal property" does not include:
3274 (i) attaching prewritten computer software to other tangible personal property if the
3275 other tangible personal property to which the prewritten computer software is attached is not
3276 permanently attached to real property; or
3277 (ii) detaching prewritten computer software from other tangible personal property if the
3278 other tangible personal property from which the prewritten computer software is detached is
3279 not permanently attached to real property.
3280 [
3281 experimentation aimed at the discovery of facts, devices, technologies, or applications and the
3282 process of preparing those devices, technologies, or applications for marketing.
3283 [
3284 telecommunications service or an ancillary service that is provided to an individual for personal
3285 use:
3286 (i) at a residential address; or
3287 (ii) at an institution, including a nursing home or a school, if the telecommunications
3288 service or ancillary service is provided to and paid for by the individual residing at the
3289 institution rather than the institution.
3290 (b) For purposes of Subsection [
3291 (i) apartment; or
3292 (ii) other individual dwelling unit.
3293 [
3294 sleeping quarters, and similar facilities or accommodations.
3295 [
3296 other than:
3297 (a) resale;
3298 (b) sublease; or
3299 (c) subrent.
3300 [
3301 the United States or federal law, that is engaged in a regularly organized business in tangible
3302 personal property or any other taxable transaction under Subsection 59-12-103(1), and who is
3303 selling to the user or consumer and not for resale.
3304 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
3305 engaged in the business of selling to users or consumers within the state.
3306 [
3307 otherwise, in any manner, of tangible personal property or any other taxable transaction under
3308 Subsection 59-12-103(1), for consideration.
3309 (b) "Sale" includes:
3310 (i) installment and credit sales;
3311 (ii) any closed transaction constituting a sale;
3312 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
3313 chapter;
3314 (iv) any transaction if the possession of property is transferred but the seller retains the
3315 title as security for the payment of the price; and
3316 (v) any transaction under which right to possession, operation, or use of any article of
3317 tangible personal property is granted under a lease or contract and the transfer of possession
3318 would be taxable if an outright sale were made.
3319 [
3320 [
3321 [
3322 tangible personal property or a product transferred electronically that is subject to a tax under
3323 this chapter is transferred:
3324 (a) by a purchaser-lessee;
3325 (b) to a lessor;
3326 (c) for consideration; and
3327 (d) if:
3328 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
3329 of the tangible personal property or product transferred electronically;
3330 (ii) the sale of the tangible personal property or product transferred electronically to the
3331 lessor is intended as a form of financing:
3332 (A) for the tangible personal property or product transferred electronically; and
3333 (B) to the purchaser-lessee; and
3334 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
3335 is required to:
3336 (A) capitalize the tangible personal property or product transferred electronically for
3337 financial reporting purposes; and
3338 (B) account for the lease payments as payments made under a financing arrangement.
3339 [
3340 [
3341 [
3342 paid to, or amounts charged by a school:
3343 (i) sales that are directly related to the school's educational functions or activities
3344 including:
3345 (A) the sale of:
3346 (I) textbooks;
3347 (II) textbook fees;
3348 (III) laboratory fees;
3349 (IV) laboratory supplies; or
3350 (V) safety equipment;
3351 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
3352 that:
3353 (I) a student is specifically required to wear as a condition of participation in a
3354 school-related event or school-related activity; and
3355 (II) is not readily adaptable to general or continued usage to the extent that it takes the
3356 place of ordinary clothing;
3357 (C) sales of the following if the net or gross revenues generated by the sales are
3358 deposited into a school district fund or school fund dedicated to school meals:
3359 (I) food and food ingredients; or
3360 (II) prepared food; or
3361 (D) transportation charges for official school activities; or
3362 (ii) amounts paid to or amounts charged by a school for admission to a school-related
3363 event or school-related activity.
3364 (b) "Sales relating to schools" does not include:
3365 (i) bookstore sales of items that are not educational materials or supplies;
3366 (ii) except as provided in Subsection [
3367 (A) clothing;
3368 (B) clothing accessories or equipment;
3369 (C) protective equipment; or
3370 (D) sports or recreational equipment; or
3371 (iii) amounts paid to or amounts charged by a school for admission to a school-related
3372 event or school-related activity if the amounts paid or charged are passed through to a person:
3373 (A) other than a:
3374 (I) school;
3375 (II) nonprofit organization authorized by a school board or a governing body of a
3376 private school to organize and direct a competitive secondary school activity; or
3377 (III) nonprofit association authorized by a school board or a governing body of a
3378 private school to organize and direct a competitive secondary school activity; and
3379 (B) that is required to collect sales and use taxes under this chapter.
3380 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3381 commission may make rules defining the term "passed through."
3382 [
3383 (a) an elementary school or a secondary school that:
3384 (i) is a:
3385 (A) public school; or
3386 (B) private school; and
3387 (ii) provides instruction for one or more grades kindergarten through 12; or
3388 (b) a public school district.
3389 (124) "Security system monitoring" means the service of monitoring signals from an
3390 alarm system, as defined in Section 58-55-102, regardless of whether the monitoring is
3391 performed electronically or by an individual.
3392 [
3393 (i) tangible personal property;
3394 (ii) a product transferred electronically; or
3395 (iii) a service.
3396 (b) "Seller" includes a marketplace facilitator.
3397 (126) "Seller-hosted prewritten computer software" means prewritten computer
3398 software that is accessed through the Internet or a seller-hosted server, regardless of whether:
3399 (a) the access is permanent; or
3400 (b) any downloading occurs.
3401 [
3402 materials" means tangible personal property or a product transferred electronically if the
3403 tangible personal property or product transferred electronically is:
3404 (i) used primarily in the process of:
3405 (A) (I) manufacturing a semiconductor;
3406 (II) fabricating a semiconductor; or
3407 (III) research or development of a:
3408 (Aa) semiconductor; or
3409 (Bb) semiconductor manufacturing process; or
3410 (B) maintaining an environment suitable for a semiconductor; or
3411 (ii) consumed primarily in the process of:
3412 (A) (I) manufacturing a semiconductor;
3413 (II) fabricating a semiconductor; or
3414 (III) research or development of a:
3415 (Aa) semiconductor; or
3416 (Bb) semiconductor manufacturing process; or
3417 (B) maintaining an environment suitable for a semiconductor.
3418 (b) "Semiconductor fabricating, processing, research, or development materials"
3419 includes:
3420 (i) parts used in the repairs or renovations of tangible personal property or a product
3421 transferred electronically described in Subsection [
3422 (ii) a chemical, catalyst, or other material used to:
3423 (A) produce or induce in a semiconductor a:
3424 (I) chemical change; or
3425 (II) physical change;
3426 (B) remove impurities from a semiconductor; or
3427 (C) improve the marketable condition of a semiconductor.
3428 [
3429 providing services to the aged as defined in Section 62A-3-101.
3430 [
3431 lodging consumable" means tangible personal property that:
3432 (i) a business that provides accommodations and services described in Subsection
3433 59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
3434 to a purchaser;
3435 (ii) is intended to be consumed by the purchaser; and
3436 (iii) is:
3437 (A) included in the purchase price of the accommodations and services; and
3438 (B) not separately stated on an invoice, bill of sale, or other similar document provided
3439 to the purchaser.
3440 (b) "Short-term lodging consumable" includes:
3441 (i) a beverage;
3442 (ii) a brush or comb;
3443 (iii) a cosmetic;
3444 (iv) a hair care product;
3445 (v) lotion;
3446 (vi) a magazine;
3447 (vii) makeup;
3448 (viii) a meal;
3449 (ix) mouthwash;
3450 (x) nail polish remover;
3451 (xi) a newspaper;
3452 (xii) a notepad;
3453 (xiii) a pen;
3454 (xiv) a pencil;
3455 (xv) a razor;
3456 (xvi) saline solution;
3457 (xvii) a sewing kit;
3458 (xviii) shaving cream;
3459 (xix) a shoe shine kit;
3460 (xx) a shower cap;
3461 (xxi) a snack item;
3462 (xxii) soap;
3463 (xxiii) toilet paper;
3464 (xxiv) a toothbrush;
3465 (xxv) toothpaste; or
3466 (xxvi) an item similar to Subsections [
3467 commission may provide by rule made in accordance with Title 63G, Chapter 3, Utah
3468 Administrative Rulemaking Act.
3469 (c) "Short-term lodging consumable" does not include:
3470 (i) tangible personal property that is cleaned or washed to allow the tangible personal
3471 property to be reused; or
3472 (ii) a product transferred electronically.
3473 [
3474 (a) described in Section 318(C) of the agreement; and
3475 (b) approved by the governing board of the agreement.
3476 [
3477 producing electricity.
3478 [
3479 (i) designed for human use; and
3480 (ii) that is:
3481 (A) worn in conjunction with:
3482 (I) an athletic activity; or
3483 (II) a recreational activity; and
3484 (B) not suitable for general use.
3485 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3486 commission shall make rules:
3487 (i) listing the items that constitute "sports or recreational equipment"; and
3488 (ii) that are consistent with the list of items that constitute "sports or recreational
3489 equipment" under the agreement.
3490 [
3491 [
3492 any other taxable transaction under Subsection 59-12-103(1), in this state for any purpose
3493 except sale in the regular course of business.
3494 [
3495 "Tangible personal property" means personal property that:
3496 (i) may be:
3497 (A) seen;
3498 (B) weighed;
3499 (C) measured;
3500 (D) felt; or
3501 (E) touched; or
3502 (ii) is in any manner perceptible to the senses.
3503 (b) "Tangible personal property" includes:
3504 (i) electricity;
3505 (ii) water;
3506 (iii) gas;
3507 (iv) steam; or
3508 (v) prewritten computer software, regardless of the manner in which the prewritten
3509 computer software is transferred.
3510 (c) "Tangible personal property" includes the following regardless of whether the item
3511 is attached to real property:
3512 (i) a dishwasher;
3513 (ii) a dryer;
3514 (iii) a freezer;
3515 (iv) a microwave;
3516 (v) a refrigerator;
3517 (vi) a stove;
3518 (vii) a washer; or
3519 (viii) an item similar to Subsections [
3520 the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
3521 Rulemaking Act.
3522 (d) "Tangible personal property" does not include a product that is transferred
3523 electronically.
3524 (e) "Tangible personal property" does not include the following if attached to real
3525 property, regardless of whether the attachment to real property is only through a line that
3526 supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
3527 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
3528 Rulemaking Act:
3529 (i) a hot water heater;
3530 (ii) a water filtration system; or
3531 (iii) a water softener system.
3532 [
3533 or software" means an item listed in Subsection [
3534 leased primarily to enable or facilitate one or more of the following to function:
3535 (i) telecommunications switching or routing equipment, machinery, or software; or
3536 (ii) telecommunications transmission equipment, machinery, or software.
3537 (b) The following apply to Subsection [
3538 (i) a pole;
3539 (ii) software;
3540 (iii) a supplementary power supply;
3541 (iv) temperature or environmental equipment or machinery;
3542 (v) test equipment;
3543 (vi) a tower; or
3544 (vii) equipment, machinery, or software that functions similarly to an item listed in
3545 Subsections [
3546 accordance with Subsection [
3547 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3548 commission may by rule define what constitutes equipment, machinery, or software that
3549 functions similarly to an item listed in Subsections [
3550 [
3551 911 service" means equipment, machinery, or software that is required to comply with 47
3552 C.F.R. Sec. 20.18.
3553 [
3554 software" means equipment, machinery, or software purchased or leased primarily to maintain
3555 or repair one or more of the following, regardless of whether the equipment, machinery, or
3556 software is purchased or leased as a spare part or as an upgrade or modification to one or more
3557 of the following:
3558 (a) telecommunications enabling or facilitating equipment, machinery, or software;
3559 (b) telecommunications switching or routing equipment, machinery, or software; or
3560 (c) telecommunications transmission equipment, machinery, or software.
3561 [
3562 routing, or transmission of audio, data, video, voice, or any other information or signal to a
3563 point, or among or between points.
3564 (b) "Telecommunications service" includes:
3565 (i) an electronic conveyance, routing, or transmission with respect to which a computer
3566 processing application is used to act:
3567 (A) on the code, form, or protocol of the content;
3568 (B) for the purpose of electronic conveyance, routing, or transmission; and
3569 (C) regardless of whether the service:
3570 (I) is referred to as voice over Internet protocol service; or
3571 (II) is classified by the Federal Communications Commission as enhanced or value
3572 added;
3573 (ii) an 800 service;
3574 (iii) a 900 service;
3575 (iv) a fixed wireless service;
3576 (v) a mobile wireless service;
3577 (vi) a postpaid calling service;
3578 (vii) a prepaid calling service;
3579 (viii) a prepaid wireless calling service; or
3580 (ix) a private communications service.
3581 (c) "Telecommunications service" does not include:
3582 (i) advertising, including directory advertising;
3583 (ii) an ancillary service;
3584 (iii) a billing and collection service provided to a third party;
3585 (iv) a data processing and information service if:
3586 (A) the data processing and information service allows data to be:
3587 (I) (Aa) acquired;
3588 (Bb) generated;
3589 (Cc) processed;
3590 (Dd) retrieved; or
3591 (Ee) stored; and
3592 (II) delivered by an electronic transmission to a purchaser; and
3593 (B) the purchaser's primary purpose for the underlying transaction is the processed data
3594 or information;
3595 (v) installation or maintenance of the following on a customer's premises:
3596 (A) equipment; or
3597 (B) wiring;
3598 (vi) Internet access service;
3599 (vii) a paging service;
3600 (viii) a product transferred electronically, including:
3601 (A) music;
3602 (B) reading material;
3603 (C) a ring tone;
3604 (D) software; or
3605 (E) video;
3606 (ix) a radio and television audio and video programming service:
3607 (A) regardless of the medium; and
3608 (B) including:
3609 (I) furnishing conveyance, routing, or transmission of a television audio and video
3610 programming service by a programming service provider;
3611 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
3612 (III) audio and video programming services delivered by a commercial mobile radio
3613 service provider as defined in 47 C.F.R. Sec. 20.3;
3614 (x) a value-added nonvoice data service; or
3615 (xi) tangible personal property.
3616 [
3617 (i) owns, controls, operates, or manages a telecommunications service; and
3618 (ii) engages in an activity described in Subsection [
3619 with or resale to any person of the telecommunications service.
3620 (b) A person described in Subsection [
3621 provider whether or not the Public Service Commission of Utah regulates:
3622 (i) that person; or
3623 (ii) the telecommunications service that the person owns, controls, operates, or
3624 manages.
3625 [
3626 software" means an item listed in Subsection [
3627 leased primarily for switching or routing:
3628 (i) an ancillary service;
3629 (ii) data communications;
3630 (iii) voice communications; or
3631 (iv) telecommunications service.
3632 (b) The following apply to Subsection [
3633 (i) a bridge;
3634 (ii) a computer;
3635 (iii) a cross connect;
3636 (iv) a modem;
3637 (v) a multiplexer;
3638 (vi) plug in circuitry;
3639 (vii) a router;
3640 (viii) software;
3641 (ix) a switch; or
3642 (x) equipment, machinery, or software that functions similarly to an item listed in
3643 Subsections [
3644 accordance with Subsection [
3645 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3646 commission may by rule define what constitutes equipment, machinery, or software that
3647 functions similarly to an item listed in Subsections [
3648 [
3649 software" means an item listed in Subsection [
3650 leased primarily for sending, receiving, or transporting:
3651 (i) an ancillary service;
3652 (ii) data communications;
3653 (iii) voice communications; or
3654 (iv) telecommunications service.
3655 (b) The following apply to Subsection [
3656 (i) an amplifier;
3657 (ii) a cable;
3658 (iii) a closure;
3659 (iv) a conduit;
3660 (v) a controller;
3661 (vi) a duplexer;
3662 (vii) a filter;
3663 (viii) an input device;
3664 (ix) an input/output device;
3665 (x) an insulator;
3666 (xi) microwave machinery or equipment;
3667 (xii) an oscillator;
3668 (xiii) an output device;
3669 (xiv) a pedestal;
3670 (xv) a power converter;
3671 (xvi) a power supply;
3672 (xvii) a radio channel;
3673 (xviii) a radio receiver;
3674 (xix) a radio transmitter;
3675 (xx) a repeater;
3676 (xxi) software;
3677 (xxii) a terminal;
3678 (xxiii) a timing unit;
3679 (xxiv) a transformer;
3680 (xxv) a wire; or
3681 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
3682 Subsections [
3683 accordance with Subsection [
3684 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3685 commission may by rule define what constitutes equipment, machinery, or software that
3686 functions similarly to an item listed in Subsections [
3687 [
3688
3689 [
3690 [
3691 [
3692
3693 [
3694 (a) a cigarette;
3695 (b) a cigar;
3696 (c) chewing tobacco;
3697 (d) pipe tobacco; or
3698 (e) any other item that contains tobacco.
3699 [
3700 device, or ride device that is started [
3701 use or operate the amusement device, skill device, or ride device.
3702 [
3703 property, a product transferred electronically, or a service under Subsection 59-12-103(1),
3704 incident to the ownership or the leasing of that tangible personal property, product transferred
3705 electronically, or service.
3706 (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
3707 property, a product transferred electronically, or a service in the regular course of business and
3708 held for resale.
3709 [
3710 (a) that otherwise meets the definition of a telecommunications service except that a
3711 computer processing application is used to act primarily for a purpose other than conveyance,
3712 routing, or transmission; and
3713 (b) with respect to which a computer processing application is used to act on data or
3714 information:
3715 (i) code;
3716 (ii) content;
3717 (iii) form; or
3718 (iv) protocol.
3719 [
3720 that are required to be titled, registered, or titled and registered:
3721 (i) an aircraft as defined in Section 72-10-102;
3722 (ii) a vehicle as defined in Section 41-1a-102;
3723 (iii) an off-highway vehicle as defined in Section 41-22-2; or
3724 (iv) a vessel as defined in Section 41-1a-102.
3725 (b) For purposes of Subsection 59-12-104[
3726 (i) a vehicle described in Subsection [
3727 (ii) (A) a locomotive;
3728 (B) a freight car;
3729 (C) railroad work equipment; or
3730 (D) other railroad rolling stock.
3731 [
3732 selling, or exchanging a vehicle [
3733 [
3734 (i) is offered in connection with one or more telecommunications services; and
3735 (ii) offers an advanced calling feature that allows a customer to:
3736 (A) identify a caller; and
3737 (B) manage multiple calls and call connections.
3738 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
3739 conference bridging service.
3740 [
3741 customer to receive, send, or store a recorded message.
3742 (b) "Voice mail service" does not include a vertical service that a customer is required
3743 to have in order to utilize a voice mail service.
3744 [
3745 facility" means a facility that generates electricity:
3746 (i) using as the primary source of energy waste materials that would be placed in a
3747 landfill or refuse pit if it were not used to generate electricity, including:
3748 (A) tires;
3749 (B) waste coal;
3750 (C) oil shale; or
3751 (D) municipal solid waste; and
3752 (ii) in amounts greater than actually required for the operation of the facility.
3753 (b) "Waste energy facility" does not include a facility that incinerates:
3754 (i) hospital waste as defined in 40 C.F.R. 60.51c; or
3755 (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
3756 [
3757 [
3758 electricity.
3759 [
3760 geographic location by the United States Postal Service.
3761 Section 41. Section 59-12-103 is amended to read:
3762 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
3763 tax revenue.
3764 (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
3765 sales price for amounts paid or charged for the following transactions:
3766 (a) retail sales of tangible personal property made within the state;
3767 (b) amounts paid for:
3768 (i) telecommunications service, other than mobile telecommunications service or a 900
3769 service, that originates and terminates within the boundaries of this state;
3770 (ii) mobile telecommunications service that originates and terminates within the
3771 boundaries of one state only to the extent permitted by the Mobile Telecommunications
3772 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; [
3773 (iii) a 900 service; or
3774 [
3775 (A) telecommunications service described in Subsection (1)(b)(i); [
3776 (B) mobile telecommunications service described in Subsection (1)(b)(ii); or
3777 (C) 900 service;
3778 (c) sales of the following for commercial use:
3779 (i) gas;
3780 (ii) electricity;
3781 (iii) heat;
3782 (iv) coal;
3783 (v) fuel oil; or
3784 (vi) other fuels;
3785 (d) sales of the following for residential use:
3786 (i) gas;
3787 (ii) electricity;
3788 (iii) heat;
3789 (iv) coal;
3790 (v) fuel oil; or
3791 (vi) other fuels;
3792 (e) sales of prepared food;
3793 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
3794 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
3795 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
3796 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
3797 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
3798 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
3799 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
3800 horseback rides, sports activities, or any other amusement, entertainment, recreation,
3801 exhibition, cultural, or athletic activity;
3802 (g) amounts paid or charged for services for repairs or renovations of tangible personal
3803 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
3804 (i) the tangible personal property; and
3805 (ii) parts used in the repairs or renovations of the tangible personal property described
3806 in Subsection (1)(g)(i), regardless of whether:
3807 (A) any parts are actually used in the repairs or renovations of that tangible personal
3808 property; or
3809 (B) the particular parts used in the repairs or renovations of that tangible personal
3810 property are exempt from a tax under this chapter;
3811 (h) [
3812 [
3813 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
3814 accommodations and services that are regularly rented for less than 30 consecutive days;
3815 (j) amounts paid or charged for laundry or dry cleaning services;
3816 (k) amounts paid or charged for leases or rentals of tangible personal property if within
3817 this state the tangible personal property is:
3818 (i) stored;
3819 (ii) used; or
3820 (iii) otherwise consumed;
3821 (l) amounts paid or charged for tangible personal property if within this state the
3822 tangible personal property is:
3823 (i) stored;
3824 (ii) used; or
3825 (iii) consumed; [
3826 (m) amounts paid or charged for a sale:
3827 (i) (A) of a product transferred electronically; or
3828 (B) of a repair or renovation of a product transferred electronically; and
3829 (ii) regardless of whether the sale provides:
3830 (A) a right of permanent use of the product; or
3831 (B) a right to use the product that is less than a permanent use, including a right:
3832 (I) for a definite or specified length of time; and
3833 (II) that terminates upon the occurrence of a condition[
3834 (n) amounts paid or charged for access to digital audio-visual works, digital audio
3835 works, digital books, or gaming services, including the streaming of or subscription for access
3836 to digital audio-visual works, digital audio works, digital books, or gaming services regardless
3837 of:
3838 (i) the delivery method; or
3839 (ii) whether the amount paid or charged for access provides a right to:
3840 (A) single-use access to the digital audio-visual works, digital audio works, digital
3841 books, or gaming services; or
3842 (B) access the digital audio-visual works, digital audio works, digital books, or gaming
3843 services through a subscription, including a right that terminates upon the occurrence of a
3844 condition;
3845 (o) amounts paid or charged for the storage, use, or other consumption of:
3846 (i) prewritten computer software delivered electronically or by load and leave; or
3847 (ii) seller-hosted prewritten computer software; and
3848 (p) amounts paid or charged for the following services:
3849 (i) security system monitoring;
3850 (ii) personal transportation that originates in the state and terminates in the state;
3851 (iii) parking or garaging a motor vehicle if charged by a person who is engaged in the
3852 business of providing parking or garaging of one or more motor vehicles at a location that:
3853 (A) is primarily used for parking or garaging one or more motor vehicles; and
3854 (B) is not residential property;
3855 (iv) tow truck service as defined in Section 72-9-102, including any related fees;
3856 (v) pet boarding or care;
3857 (vi) pet grooming;
3858 (vii) dating referral services; and
3859 (viii) identity theft protection.
3860 (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
3861 are imposed on a transaction described in Subsection (1) equal to the sum of:
3862 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
3863 [
3864 [
3865 (13)(a); and
3866 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
3867 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
3868 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
3869 State Sales and Use Tax Act; and
3870 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
3871 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
3872 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
3873 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
3874 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
3875 transaction under this chapter other than this part.
3876 (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax are
3877 imposed on a transaction described in Subsection (1)(d) equal to the sum of:
3878 (i) a state tax imposed on the transaction at a tax rate of 2%; and
3879 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
3880 transaction under this chapter other than this part.
3881 (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax are
3882 imposed on amounts paid or charged for food and food ingredients equal to the sum of:
3883 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
3884 a tax rate of [
3885 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
3886 amounts paid or charged for food and food ingredients under this chapter other than this part.
3887 (d) (i) For a bundled transaction that is attributable to food and food ingredients and
3888 tangible personal property other than food and food ingredients, a state tax and a local tax is
3889 imposed on the entire bundled transaction equal to the sum of:
3890 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
3891 (I) the tax rate described in Subsection (2)(a)(i)(A); and
3892 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
3893 Sales and Use Tax Act, if the location of the transaction as determined under Sections
3894 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
3895 Additional State Sales and Use Tax Act; and
3896 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
3897 Sales and Use Tax Act, if the location of the transaction as determined under Sections
3898 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
3899 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
3900 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
3901 described in Subsection (2)(a)(ii).
3902 (ii) If an optional computer software maintenance contract is a bundled transaction that
3903 consists of taxable and nontaxable products that are not separately itemized on an invoice or
3904 similar billing document, the purchase of the optional computer software maintenance contract
3905 is 40% taxable under this chapter and 60% nontaxable under this chapter.
3906 (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
3907 transaction described in Subsection (2)(d)(i) or (ii):
3908 (A) if the sales price of the bundled transaction is attributable to tangible personal
3909 property, a product, or a service that is subject to taxation under this chapter and tangible
3910 personal property, a product, or service that is not subject to taxation under this chapter, the
3911 entire bundled transaction is subject to taxation under this chapter unless:
3912 (I) the seller is able to identify by reasonable and verifiable standards the tangible
3913 personal property, product, or service that is not subject to taxation under this chapter from the
3914 books and records the seller keeps in the seller's regular course of business; or
3915 (II) state or federal law provides otherwise; or
3916 (B) if the sales price of a bundled transaction is attributable to two or more items of
3917 tangible personal property, products, or services that are subject to taxation under this chapter
3918 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
3919 higher tax rate unless:
3920 (I) the seller is able to identify by reasonable and verifiable standards the tangible
3921 personal property, product, or service that is subject to taxation under this chapter at the lower
3922 tax rate from the books and records the seller keeps in the seller's regular course of business; or
3923 (II) state or federal law provides otherwise.
3924 (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
3925 seller's regular course of business includes books and records the seller keeps in the regular
3926 course of business for nontax purposes.
3927 (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
3928 and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
3929 product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
3930 of tangible personal property, other property, a product, or a service that is not subject to
3931 taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
3932 the seller, at the time of the transaction:
3933 (A) separately states the portion of the transaction that is not subject to taxation under
3934 this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
3935 (B) is able to identify by reasonable and verifiable standards, from the books and
3936 records the seller keeps in the seller's regular course of business, the portion of the transaction
3937 that is not subject to taxation under this chapter.
3938 (ii) A purchaser and a seller may correct the taxability of a transaction if:
3939 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
3940 the transaction that is not subject to taxation under this chapter was not separately stated on an
3941 invoice, bill of sale, or similar document provided to the purchaser because of an error or
3942 ignorance of the law; and
3943 (B) the seller is able to identify by reasonable and verifiable standards, from the books
3944 and records the seller keeps in the seller's regular course of business, the portion of the
3945 transaction that is not subject to taxation under this chapter.
3946 (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
3947 in the seller's regular course of business includes books and records the seller keeps in the
3948 regular course of business for nontax purposes.
3949 (f) (i) If the sales price of a transaction is attributable to two or more items of tangible
3950 personal property, products, or services that are subject to taxation under this chapter at
3951 different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
3952 unless the seller, at the time of the transaction:
3953 (A) separately states the items subject to taxation under this chapter at each of the
3954 different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
3955 (B) is able to identify by reasonable and verifiable standards the tangible personal
3956 property, product, or service that is subject to taxation under this chapter at the lower tax rate
3957 from the books and records the seller keeps in the seller's regular course of business.
3958 (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
3959 seller's regular course of business includes books and records the seller keeps in the regular
3960 course of business for nontax purposes.
3961 (g) Subject to Subsections (2)(h) and (i), a tax rate repeal or tax rate change for a tax
3962 rate imposed under the following shall take effect on the first day of a calendar quarter:
3963 (i) Subsection (2)(a)(i)(A);
3964 (ii) Subsection (2)(b)(i);
3965 (iii) Subsection (2)(c)(i); or
3966 (iv) Subsection (2)(d)(i)(A)(I).
3967 (h) (i) A tax rate increase takes effect on the first day of the first billing period that
3968 begins on or after the effective date of the tax rate increase if the billing period for the
3969 transaction begins before the effective date of a tax rate increase imposed under:
3970 (A) Subsection (2)(a)(i)(A);
3971 (B) Subsection (2)(b)(i);
3972 (C) Subsection (2)(c)(i); or
3973 (D) Subsection (2)(d)(i)(A)(I).
3974 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
3975 statement for the billing period is rendered on or after the effective date of the repeal of the tax
3976 or the tax rate decrease imposed under:
3977 (A) Subsection (2)(a)(i)(A);
3978 (B) Subsection (2)(b)(i);
3979 (C) Subsection (2)(c)(i); or
3980 (D) Subsection (2)(d)(i)(A)(I).
3981 (i) (i) For a tax rate described in Subsection (2)(i)(ii), if a tax due on a catalogue sale is
3982 computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
3983 change in a tax rate takes effect:
3984 (A) on the first day of a calendar quarter; and
3985 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
3986 (ii) Subsection (2)(i)(i) applies to the tax rates described in the following:
3987 (A) Subsection (2)(a)(i)(A);
3988 (B) Subsection (2)(b)(i);
3989 (C) Subsection (2)(c)(i); or
3990 (D) Subsection (2)(d)(i)(A)(I).
3991 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
3992 the commission may by rule define the term "catalogue sale."
3993 (3) (a) The following state taxes shall be deposited into the General Fund:
3994 (i) the tax imposed by Subsection (2)(a)(i)(A);
3995 (ii) the tax imposed by Subsection (2)(b)(i);
3996 (iii) the tax imposed by Subsection (2)(c)(i); or
3997 (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
3998 (b) The following local taxes shall be distributed to a county, city, or town as provided
3999 in this chapter:
4000 (i) the tax imposed by Subsection (2)(a)(ii);
4001 (ii) the tax imposed by Subsection (2)(b)(ii);
4002 (iii) the tax imposed by Subsection (2)(c)(ii); and
4003 (iv) the tax imposed by Subsection (2)(d)(i)(B).
4004 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
4005 2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
4006 through (g):
4007 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
4008 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
4009 (B) for the fiscal year; or
4010 (ii) $17,500,000.
4011 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
4012 described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
4013 Department of Natural Resources to:
4014 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
4015 protect sensitive plant and animal species; or
4016 (B) award grants, up to the amount authorized by the Legislature in an appropriations
4017 act, to political subdivisions of the state to implement the measures described in Subsections
4018 79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
4019 (ii) Money transferred to the Department of Natural Resources under Subsection
4020 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
4021 person to list or attempt to have listed a species as threatened or endangered under the
4022 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
4023 (iii) At the end of each fiscal year:
4024 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
4025 Conservation and Development Fund created in Section 73-10-24;
4026 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
4027 Program Subaccount created in Section 73-10c-5; and
4028 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
4029 Program Subaccount created in Section 73-10c-5.
4030 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
4031 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
4032 created in Section 4-18-106.
4033 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
4034 in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
4035 Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
4036 water rights.
4037 (ii) At the end of each fiscal year:
4038 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
4039 Conservation and Development Fund created in Section 73-10-24;
4040 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
4041 Program Subaccount created in Section 73-10c-5; and
4042 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
4043 Program Subaccount created in Section 73-10c-5.
4044 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
4045 in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
4046 Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
4047 (ii) In addition to the uses allowed of the Water Resources Conservation and
4048 Development Fund under Section 73-10-24, the Water Resources Conservation and
4049 Development Fund may also be used to:
4050 (A) conduct hydrologic and geotechnical investigations by the Division of Water
4051 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
4052 quantifying surface and ground water resources and describing the hydrologic systems of an
4053 area in sufficient detail so as to enable local and state resource managers to plan for and
4054 accommodate growth in water use without jeopardizing the resource;
4055 (B) fund state required dam safety improvements; and
4056 (C) protect the state's interest in interstate water compact allocations, including the
4057 hiring of technical and legal staff.
4058 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
4059 in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
4060 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
4061 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
4062 in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
4063 created in Section 73-10c-5 for use by the Division of Drinking Water to:
4064 (i) provide for the installation and repair of collection, treatment, storage, and
4065 distribution facilities for any public water system, as defined in Section 19-4-102;
4066 (ii) develop underground sources of water, including springs and wells; and
4067 (iii) develop surface water sources.
4068 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
4069 2006, the difference between the following amounts shall be expended as provided in this
4070 Subsection (5), if that difference is greater than $1:
4071 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
4072 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
4073 (ii) $17,500,000.
4074 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
4075 (A) transferred each fiscal year to the Department of Natural Resources as dedicated
4076 credits; and
4077 (B) expended by the Department of Natural Resources for watershed rehabilitation or
4078 restoration.
4079 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
4080 in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
4081 created in Section 73-10-24.
4082 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
4083 remaining difference described in Subsection (5)(a) shall be:
4084 (A) transferred each fiscal year to the Division of Water Resources as dedicated
4085 credits; and
4086 (B) expended by the Division of Water Resources for cloud-seeding projects
4087 authorized by Title 73, Chapter 15, Modification of Weather.
4088 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
4089 in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
4090 created in Section 73-10-24.
4091 (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
4092 remaining difference described in Subsection (5)(a) shall be deposited into the Water
4093 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
4094 Division of Water Resources for:
4095 (i) preconstruction costs:
4096 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
4097 26, Bear River Development Act; and
4098 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
4099 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
4100 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
4101 Chapter 26, Bear River Development Act;
4102 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
4103 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
4104 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
4105 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
4106 (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
4107 Subsection (5)(f), 15% of the remaining difference described in Subsection (5)(a) shall be
4108 transferred each year as dedicated credits to the Division of Water Rights to cover the costs
4109 incurred for employing additional technical staff for the administration of water rights.
4110 (f) At the end of each fiscal year, any unexpended dedicated credits described in
4111 Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
4112 Fund created in Section 73-10-24.
4113 (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
4114 amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
4115 (1) for the fiscal year shall be deposited as follows:
4116 (a) for fiscal year 2016-17 only, 100% of the revenue described in this Subsection (6)
4117 shall be deposited into the Transportation Investment Fund of 2005 created by Section
4118 72-2-124;
4119 (b) for fiscal year 2017-18 only:
4120 (i) 80% of the revenue described in this Subsection (6) shall be deposited into the
4121 Transportation Investment Fund of 2005 created by Section 72-2-124; and
4122 (ii) 20% of the revenue described in this Subsection (6) shall be deposited into the
4123 Water Infrastructure Restricted Account created by Section 73-10g-103;
4124 (c) for fiscal year 2018-19 only:
4125 (i) 60% of the revenue described in this Subsection (6) shall be deposited into the
4126 Transportation Investment Fund of 2005 created by Section 72-2-124; and
4127 (ii) 40% of the revenue described in this Subsection (6) shall be deposited into the
4128 Water Infrastructure Restricted Account created by Section 73-10g-103;
4129 (d) for fiscal year 2019-20 only:
4130 (i) 40% of the revenue described in this Subsection (6) shall be deposited into the
4131 Transportation Investment Fund of 2005 created by Section 72-2-124; and
4132 (ii) 60% of the revenue described in this Subsection (6) shall be deposited into the
4133 Water Infrastructure Restricted Account created by Section 73-10g-103;
4134 (e) for fiscal year 2020-21 only:
4135 (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
4136 Transportation Investment Fund of 2005 created by Section 72-2-124; and
4137 (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
4138 Water Infrastructure Restricted Account created by Section 73-10g-103; and
4139 (f) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
4140 in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
4141 created by Section 73-10g-103.
4142 (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
4143 Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
4144 [
4145 2005 created by Section 72-2-124:
4146 (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
4147 the [
4148 approximately 17% of sales and use tax [
4149 use tax on vehicles and vehicle-related products:
4150 (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
4151 (B) the tax imposed by Subsection (2)(b)(i);
4152 (C) the tax imposed by Subsection (2)(c)(i); and
4153 (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
4154 (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
4155 current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
4156 (D) that exceeds the amount collected from the sales and use taxes described in Subsections
4157 (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
4158 (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
4159 the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
4160 lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
4161 generated in the current fiscal year than the total percentage of sales and use taxes deposited in
4162 the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
4163 (7)(a) equal to the product of:
4164 (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
4165 previous fiscal year; and
4166 (B) the total sales and use tax revenue generated by the taxes described in Subsections
4167 (7)(a)(i)(A) through (D) in the current fiscal year.
4168 (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
4169 Subsection (7)(a) would exceed [
4170 sales and use taxes described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year,
4171 the Division of Finance shall deposit [
4172 sales and use taxes described in Subsections (7)(a)(i)(A) through (D) for the current fiscal year
4173 under Subsection (7)(a).
4174 (iii) In all subsequent fiscal years after a year in which [
4175 revenue collected from the sales and use taxes described in Subsections (7)(a)(i)(A) through
4176 (D) was deposited under Subsection (7)(a), the Division of Finance shall annually deposit
4177 [
4178 Subsections (7)(a)(i)(A) through (D) in the current fiscal year under Subsection (7)(a).
4179 [
4180
4181
4182
4183 [
4184
4185
4186
4187 [
4188
4189
4190
4191
4192 [
4193 [
4194 [
4195 [
4196 [
4197
4198
4199
4200
4201 [
4202
4203 in the current fiscal year from the tax imposed under Subsection (2)(c)(i) that exceeds the
4204 amount collected from the tax imposed under Subsection (2)(c)(i) in the 2020-2021 fiscal year
4205 into the Transit and Transportation Investment Fund created in Section 72-2-124.
4206 (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
4207 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
4208 created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
4209 (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c),
4210 in addition to any amounts deposited under Subsections (6), (7), and (8), and for the 2016-17
4211 fiscal year only, the Division of Finance shall deposit into the Transportation Investment Fund
4212 of 2005 created by Section 72-2-124 the amount of tax revenue generated by a .05% tax rate on
4213 the transactions described in Subsection (1).
4214 (b) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c), and in
4215 addition to any amounts deposited under Subsections (6), (7), and (8), the Division of Finance
4216 shall deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
4217 amount of revenue described as follows:
4218 (i) for fiscal year 2017-18 only, 83.33% of the amount of revenue generated by a .05%
4219 tax rate on the transactions described in Subsection (1);
4220 (ii) for fiscal year 2018-19 only, 66.67% of the amount of revenue generated by a .05%
4221 tax rate on the transactions described in Subsection (1);
4222 (iii) for fiscal year 2019-20 only, 50% of the amount of revenue generated by a .05%
4223 tax rate on the transactions described in Subsection (1);
4224 (iv) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a
4225 .05% tax rate on the transactions described in Subsection (1); and
4226 (v) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
4227 tax rate on the transactions described in Subsection (1).
4228 (c) For purposes of Subsections (10)(a) and (b), the Division of Finance may not
4229 deposit into the Transportation Investment Fund of 2005 any tax revenue generated by amounts
4230 paid or charged for food and food ingredients, except for tax revenue generated by a bundled
4231 transaction attributable to food and food ingredients and tangible personal property other than
4232 food and food ingredients described in Subsection (2)(d).
4233 (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
4234 fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
4235 construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
4236 Finance shall, for two consecutive fiscal years, [
4237 revenue generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation
4238 Fund, created in Section 63N-2-512.
4239 [
4240
4241
4242
4243 [
4244
4245
4246 [
4247 (b) Notwithstanding Subsection (3)(a), the Division of Finance shall[
4248
4249
4250
4251
4252 on or after July 1, 2019, [
4253 rate described in Subsection [
4254 use tax under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section
4255 26-36b-208.
4256 Section 42. Section 59-12-104 is amended to read:
4257 59-12-104. Exemptions.
4258 Exemptions from the taxes imposed by this chapter, other than a tax imposed under
4259 Section 59-12-130, are as follows:
4260 (1) (a) sales of aviation fuel[
4261 state excise tax under Chapter 13, Motor and Special Fuel Tax Act; or
4262 (b) sales of motor fuel or special fuel that are subject to Section 59-12-130;
4263 (2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
4264 subdivisions; however, this exemption does not apply to sales of:
4265 (a) construction materials except:
4266 (i) construction materials purchased by or on behalf of institutions of the public
4267 education system as defined in Utah Constitution, Article X, Section 2, provided the
4268 construction materials are clearly identified and segregated and installed or converted to real
4269 property which is owned by institutions of the public education system; and
4270 (ii) construction materials purchased by the state, its institutions, or its political
4271 subdivisions which are installed or converted to real property by employees of the state, its
4272 institutions, or its political subdivisions; or
4273 (b) tangible personal property in connection with the construction, operation,
4274 maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or facilities
4275 providing additional project capacity, as defined in Section 11-13-103;
4276 [
4277 [
4278 [
4279
4280 [
4281 [
4282 [
4283 [
4284 consumption:
4285 (i) alcoholic beverages;
4286 (ii) food and food ingredients; or
4287 (iii) prepared food;
4288 (b) sales of tangible personal property or a product transferred electronically:
4289 (i) to a passenger;
4290 (ii) by a commercial airline carrier; and
4291 (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
4292 (c) services related to Subsection [
4293 [
4294
4295 [
4296
4297
4298 [
4299 [
4300
4301 [
4302 [
4303 [
4304
4305 [
4306
4307 [
4308
4309
4310 [
4311 [
4312 [
4313
4314 [
4315 [
4316 [
4317
4318 (4) sales of parts and equipment for installation in an aircraft operated by a common
4319 carrier in interstate or foreign commerce;
4320 [
4321 or records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
4322 exhibitor, distributor, or commercial television or radio broadcaster;
4323 [
4324
4325
4326 [
4327
4328
4329
4330
4331 [
4332
4333 [
4334
4335 [
4336
4337 [
4338 regular religious or charitable functions and activities, if the requirements of Section
4339 59-12-104.1 are fulfilled;
4340 [
4341 laws of this state if the vehicle is:
4342 (a) not registered in this state; and
4343 (b) (i) not used in this state; or
4344 (ii) used in this state:
4345 (A) if the vehicle is not used to conduct business, for a time period that does not
4346 exceed the longer of:
4347 (I) 30 days in any calendar year; or
4348 (II) the time period necessary to transport the vehicle to the borders of this state; or
4349 (B) if the vehicle is used to conduct business, for the time period necessary to transport
4350 the vehicle to the borders of this state;
4351 [
4352 (a) menstrual products; or
4353 (b) a drug, syringe, or stoma supply if:
4354 (i) the item is intended for human use; and
4355 (ii) (A) a prescription was issued for the item; or
4356 (B) the item was purchased by a hospital or other medical facility; [
4357 [
4358 [
4359 [
4360 [
4361 [
4362
4363 [
4364 [
4365 [
4366 [
4367 (i) the following if the item described in Subsection [
4368 the general public:
4369 (A) a church; or
4370 (B) a charitable institution; or
4371 (ii) an institution of higher education if:
4372 (A) the item described in Subsection [
4373 public; or
4374 (B) the item described in Subsection [
4375 plan offered by the institution of higher education; or
4376 (b) sales of an item described in Subsection [
4377 (i) a medical facility; or
4378 (ii) a nursing facility; and
4379 (c) Subsections [
4380 (i) food and food ingredients;
4381 (ii) prepared food; or
4382 (iii) alcoholic beverages;
4383 [
4384 personal property or a product transferred electronically by a person:
4385 (i) regardless of the number of transactions involving the sale of that tangible personal
4386 property or product transferred electronically by that person; and
4387 (ii) not regularly engaged in the business of selling that type of tangible personal
4388 property or product transferred electronically;
4389 (b) this Subsection [
4390 (i) the sale is one of a series of sales of a character to indicate that the person is
4391 regularly engaged in the business of selling that type of tangible personal property or product
4392 transferred electronically;
4393 (ii) the person holds that person out as regularly engaged in the business of selling that
4394 type of tangible personal property or product transferred electronically;
4395 (iii) the person sells an item of tangible personal property or product transferred
4396 electronically that the person purchased as a sale that is exempt under Subsection [
4397 or
4398 (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
4399 this state in which case the tax is based upon:
4400 (A) the bill of sale or other written evidence of value of the vehicle or vessel being
4401 sold; or
4402 (B) in the absence of a bill of sale or other written evidence of value, the fair market
4403 value of the vehicle or vessel being sold at the time of the sale as determined by the
4404 commission; and
4405 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4406 commission shall make rules establishing the circumstances under which:
4407 (i) a person is regularly engaged in the business of selling a type of tangible personal
4408 property or product transferred electronically;
4409 (ii) a sale of tangible personal property or a product transferred electronically is one of
4410 a series of sales of a character to indicate that a person is regularly engaged in the business of
4411 selling that type of tangible personal property or product transferred electronically; or
4412 (iii) a person holds that person out as regularly engaged in the business of selling a type
4413 of tangible personal property or product transferred electronically;
4414 [
4415 normal operating repair or replacement parts, or materials, except for office equipment or
4416 office supplies, by:
4417 (a) a manufacturing facility that:
4418 (i) is located in the state; and
4419 (ii) uses or consumes the machinery, equipment, normal operating repair or
4420 replacement parts, or materials:
4421 (A) in the manufacturing process to manufacture an item sold as tangible personal
4422 property, as the commission may define that phrase in accordance with Title 63G, Chapter 3,
4423 Utah Administrative Rulemaking Act; or
4424 (B) for a scrap recycler, to process an item sold as tangible personal property, as the
4425 commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
4426 Administrative Rulemaking Act;
4427 (b) an establishment, as the commission defines that term in accordance with Title
4428 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
4429 (i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
4430 Code 213113, Support Activities for Coal Mining, 213114, Support Activities for Metal
4431 Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining, of the
4432 2002 North American Industry Classification System of the federal Executive Office of the
4433 President, Office of Management and Budget;
4434 (ii) is located in the state; and
4435 (iii) uses or consumes the machinery, equipment, normal operating repair or
4436 replacement parts, or materials in:
4437 (A) the production process to produce an item sold as tangible personal property, as the
4438 commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
4439 Administrative Rulemaking Act;
4440 (B) research and development, as the commission may define that phrase in accordance
4441 with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
4442 (C) transporting, storing, or managing tailings, overburden, or similar waste materials
4443 produced from mining;
4444 (D) developing or maintaining a road, tunnel, excavation, or similar feature used in
4445 mining; or
4446 (E) preventing, controlling, or reducing dust or other pollutants from mining; or
4447 (c) an establishment, as the commission defines that term in accordance with Title 63G,
4448 Chapter 3, Utah Administrative Rulemaking Act, that:
4449 (i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North
4450 American Industry Classification System of the federal Executive Office of the President,
4451 Office of Management and Budget;
4452 (ii) is located in the state; and
4453 (iii) uses or consumes the machinery, equipment, normal operating repair or
4454 replacement parts, or materials in the operation of the web search portal;
4455 [
4456 are met:
4457 (i) tooling;
4458 (ii) special tooling;
4459 (iii) support equipment;
4460 (iv) special test equipment; or
4461 (v) parts used in the repairs or renovations of tooling or equipment described in
4462 Subsections [
4463 (b) sales of tooling, equipment, or parts described in Subsection [
4464 exempt if:
4465 (i) the tooling, equipment, or parts are used or consumed exclusively in the
4466 performance of any aerospace or electronics industry contract with the United States
4467 government or any subcontract under that contract; and
4468 (ii) under the terms of the contract or subcontract described in Subsection [
4469 (13)(b)(i), title to the tooling, equipment, or parts is vested in the United States government as
4470 evidenced by:
4471 (A) a government identification tag placed on the tooling, equipment, or parts; or
4472 (B) listing on a government-approved property record if placing a government
4473 identification tag on the tooling, equipment, or parts is impractical;
4474 [
4475 [
4476 property or a product transferred electronically traded in as full or part payment of the purchase
4477 price, except that for purposes of calculating sales or use tax upon vehicles not sold by a
4478 vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
4479 (i) the bill of sale or other written evidence of value of the vehicle being sold and the
4480 vehicle being traded in; or
4481 (ii) in the absence of a bill of sale or other written evidence of value, the then existing
4482 fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
4483 commission; and
4484 (b) Subsection [
4485 property or products transferred electronically traded in as full or part payment of the purchase
4486 price:
4487 (i) money;
4488 (ii) electricity;
4489 (iii) water;
4490 (iv) gas; or
4491 (v) steam;
4492 [
4493 personal property or a product transferred electronically used or consumed primarily and
4494 directly in farming operations, regardless of whether the tangible personal property or product
4495 transferred electronically:
4496 (A) becomes part of real estate; or
4497 (B) is installed by a[
4498 [
4499 [
4500 [
4501 (ii) sales of parts used in the repairs or renovations of tangible personal property or a
4502 product transferred electronically if the tangible personal property or product transferred
4503 electronically is exempt under Subsection [
4504 (b) amounts paid or charged for the following are subject to the taxes imposed by this
4505 chapter:
4506 (i) (A) subject to Subsection [
4507 supplies if used in a manner that is incidental to farming; and
4508 (B) tangible personal property that is considered to be used in a manner that is
4509 incidental to farming includes:
4510 (I) hand tools; or
4511 (II) maintenance and janitorial equipment and supplies;
4512 (ii) (A) subject to Subsection [
4513 product transferred electronically if the tangible personal property or product transferred
4514 electronically is used in an activity other than farming; and
4515 (B) tangible personal property or a product transferred electronically that is considered
4516 to be used in an activity other than farming includes:
4517 (I) office equipment and supplies; or
4518 (II) equipment and supplies used in:
4519 (Aa) the sale or distribution of farm products;
4520 (Bb) research; or
4521 (Cc) transportation; or
4522 (iii) a vehicle required to be registered by the laws of this state during the period
4523 ending two years after the date of the vehicle's purchase;
4524 [
4525 [
4526 or garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
4527 garden, farm, or other agricultural produce is sold by:
4528 (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
4529 agricultural produce;
4530 (b) an employee of the producer described in Subsection [
4531 (c) a member of the immediate family of the producer described in Subsection [
4532 (17)(a);
4533 [
4534 issued under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
4535 [
4536 nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
4537 wholesaler, or retailer for use in packaging tangible personal property to be sold by that
4538 manufacturer, processor, wholesaler, or retailer;
4539 [
4540 [
4541 (i) the product is:
4542 (A) purchased outside of this state;
4543 (B) brought into this state:
4544 (I) at any time after the purchase described in Subsection [
4545 (II) by a nonresident person who is not living or working in this state at the time of the
4546 purchase;
4547 (C) used for the personal use or enjoyment of the nonresident person described in
4548 Subsection [
4549 (D) not used in conducting business in this state; and
4550 (ii) for:
4551 (A) a product other than a boat described in Subsection [
4552 use of the product for a purpose for which the product is designed occurs outside of this state;
4553 (B) a boat, the boat is registered outside of this state; or
4554 (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
4555 outside of this state;
4556 (b) the exemption provided for in Subsection [
4557 (i) a lease or rental of a product; or
4558 (ii) a sale of a vehicle exempt under Subsection [
4559 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
4560 purposes of Subsection [
4561 following:
4562 (i) conducting business in this state if that phrase has the same meaning in this
4563 Subsection [
4564 (ii) the first use of a product if that phrase has the same meaning in this Subsection
4565 [
4566 (iii) a purpose for which a product is designed if that phrase has the same meaning in
4567 this Subsection [
4568 [
4569 original form or as an ingredient or component part of a manufactured or compounded product;
4570 [
4571 of its subdivisions, except that the state shall be paid any difference between the tax paid and
4572 the tax imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is
4573 allowed if the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and
4574 Use Tax Act;
4575 [
4576 to a person for use in compounding a service taxable under the subsections;
4577 [
4578 program for women, infants, and children established in 42 U.S.C. Sec. 1786;
4579 [
4580 replacement parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code
4581 3312 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of
4582 the President, Office of Management and Budget;
4583 [
4584 State Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard
4585 motor is:
4586 (a) not registered in this state; and
4587 (b) (i) not used in this state; or
4588 (ii) used in this state:
4589 (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
4590 time period that does not exceed the longer of:
4591 (I) 30 days in any calendar year; or
4592 (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
4593 the borders of this state; or
4594 (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
4595 period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
4596 state;
4597 [
4598 [
4599 of providing telecommunications service;
4600 [
4601 (a) a vehicle by an authorized carrier; or
4602 (b) tangible personal property that is installed on a vehicle:
4603 (i) sold or leased to or used by an authorized carrier; and
4604 (ii) before the vehicle is placed in service for the first time;
4605 [
4606 (b) 100% of the sales price of any used manufactured home;
4607 [
4608 [
4609 (a) a person presents a prescription for the durable medical equipment; and
4610 (b) the durable medical equipment is used for home use only;
4611 [
4612
4613 [
4614
4615 [
4616 (a) snowmaking equipment;
4617 (b) ski slope grooming equipment;
4618 (c) passenger ropeways as defined in Section 72-11-102; or
4619 (d) parts used in the repairs or renovations of equipment or passenger ropeways
4620 described in Subsections [
4621 [
4622 industrial use;
4623 [
4624
4625
4626 [
4627
4628
4629
4630
4631 [
4632
4633 [
4634
4635 [
4636
4637
4638 [
4639 (i) a governmental entity; or
4640 (ii) an entity within the state system of public education, including:
4641 (A) a school; or
4642 (B) the State Board of Education; or
4643 (b) sales of publications by a governmental entity;
4644 [
4645
4646
4647 [
4648 (i) an area agency on aging; or
4649 (ii) a senior citizen center owned by a county, city, or town; or
4650 (b) sales made by a senior citizen center that contracts with an area agency on aging;
4651 [
4652 development materials regardless of whether the semiconductor fabricating, processing,
4653 research, or development materials:
4654 (a) actually come into contact with a semiconductor; or
4655 (b) ultimately become incorporated into real property;
4656 [
4657 services described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under
4658 Section 59-12-104.2;
4659 [
4660
4661
4662 [
4663 tariff adopted by the Public Service Commission only for purchase of electricity produced from
4664 a new alternative energy source built after January 1, 2016, as designated in the tariff by the
4665 Public Service Commission; and
4666 (b) for a residential use customer only, the exemption under Subsection [
4667 applies only to the portion of the tariff rate a customer pays under the tariff described in
4668 Subsection [
4669 [
4670 [
4671 prescription for the mobility enhancing equipment;
4672 [
4673 (a) pipe;
4674 (b) conduit;
4675 (c) ditch; or
4676 (d) reservoir;
4677 [
4678 States, or a foreign nation;
4679 [
4680 (i) does not constitute legal tender of a state, the United States, or a foreign nation; and
4681 (ii) has a gold, silver, or platinum content of 50% or more; and
4682 (b) Subsection [
4683 (i) ingot;
4684 (ii) bar;
4685 (iii) medallion; or
4686 (iv) decorative coin;
4687 [
4688 [
4689 (a) for use on or in a human; and
4690 (b) (i) for which a prescription is required; or
4691 (ii) if the prosthetic device is purchased by a hospital or other medical facility;
4692 [
4693 rentals of machinery or equipment by an establishment described in Subsection [
4694 the machinery or equipment is primarily used in the production or postproduction of the
4695 following media for commercial distribution:
4696 (i) a motion picture;
4697 (ii) a television program;
4698 (iii) a movie made for television;
4699 (iv) a music video;
4700 (v) a commercial;
4701 (vi) a documentary; or
4702 (vii) a medium similar to Subsections [
4703 the commission by administrative rule made in accordance with Subsection [
4704 (b) purchases, leases, or rentals of machinery or equipment by an establishment
4705 described in Subsection [
4706 following are subject to the taxes imposed by this chapter:
4707 (i) a live musical performance;
4708 (ii) a live news program; or
4709 (iii) a live sporting event;
4710 (c) the following establishments listed in the 1997 North American Industry
4711 Classification System of the federal Executive Office of the President, Office of Management
4712 and Budget, apply to Subsections [
4713 (i) NAICS Code 512110; or
4714 (ii) NAICS Code 51219; and
4715 (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4716 commission may by rule:
4717 (i) prescribe what constitutes a medium similar to Subsections [
4718 (vi); or
4719 (ii) define:
4720 (A) "commercial distribution";
4721 (B) "live musical performance";
4722 (C) "live news program"; or
4723 (D) "live sporting event";
4724 [
4725 2004, but on or before June 30, 2027, of tangible personal property that:
4726 (i) is leased or purchased for or by a facility that:
4727 (A) is an alternative energy electricity production facility;
4728 (B) is located in the state; and
4729 (C) (I) becomes operational on or after July 1, 2004; or
4730 (II) has its generation capacity increased by one or more megawatts on or after July 1,
4731 2004, as a result of the use of the tangible personal property;
4732 (ii) has an economic life of five or more years; and
4733 (iii) is used to make the facility or the increase in capacity of the facility described in
4734 Subsection [
4735 transmission grid including:
4736 (A) a wind turbine;
4737 (B) generating equipment;
4738 (C) a control and monitoring system;
4739 (D) a power line;
4740 (E) substation equipment;
4741 (F) lighting;
4742 (G) fencing;
4743 (H) pipes; or
4744 (I) other equipment used for locating a power line or pole; and
4745 (b) this Subsection [
4746 (i) tangible personal property used in construction of:
4747 (A) a new alternative energy electricity production facility; or
4748 (B) the increase in the capacity of an alternative energy electricity production facility;
4749 (ii) contracted services required for construction and routine maintenance activities;
4750 and
4751 (iii) unless the tangible personal property is used or acquired for an increase in capacity
4752 of the facility described in Subsection [
4753 or acquired after:
4754 (A) the alternative energy electricity production facility described in Subsection [
4755 (48)(a)(i) is operational as described in Subsection [
4756 (B) the increased capacity described in Subsection [
4757 described in Subsection [
4758 [
4759 2004, but on or before June 30, 2027, of tangible personal property that:
4760 (i) is leased or purchased for or by a facility that:
4761 (A) is a waste energy production facility;
4762 (B) is located in the state; and
4763 (C) (I) becomes operational on or after July 1, 2004; or
4764 (II) has its generation capacity increased by one or more megawatts on or after July 1,
4765 2004, as a result of the use of the tangible personal property;
4766 (ii) has an economic life of five or more years; and
4767 (iii) is used to make the facility or the increase in capacity of the facility described in
4768 Subsection [
4769 transmission grid including:
4770 (A) generating equipment;
4771 (B) a control and monitoring system;
4772 (C) a power line;
4773 (D) substation equipment;
4774 (E) lighting;
4775 (F) fencing;
4776 (G) pipes; or
4777 (H) other equipment used for locating a power line or pole; and
4778 (b) this Subsection [
4779 (i) tangible personal property used in construction of:
4780 (A) a new waste energy facility; or
4781 (B) the increase in the capacity of a waste energy facility;
4782 (ii) contracted services required for construction and routine maintenance activities;
4783 and
4784 (iii) unless the tangible personal property is used or acquired for an increase in capacity
4785 described in Subsection [
4786 after:
4787 (A) the waste energy facility described in Subsection [
4788 described in Subsection [
4789 (B) the increased capacity described in Subsection [
4790 described in Subsection [
4791 [
4792 but on or before June 30, 2027, of tangible personal property that:
4793 (i) is leased or purchased for or by a facility that:
4794 (A) is located in the state;
4795 (B) produces fuel from alternative energy, including:
4796 (I) methanol; or
4797 (II) ethanol; and
4798 (C) (I) becomes operational on or after July 1, 2004; or
4799 (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as
4800 a result of the installation of the tangible personal property;
4801 (ii) has an economic life of five or more years; and
4802 (iii) is installed on the facility described in Subsection [
4803 (b) this Subsection [
4804 (i) tangible personal property used in construction of:
4805 (A) a new facility described in Subsection [
4806 (B) the increase in capacity of the facility described in Subsection [
4807 (ii) contracted services required for construction and routine maintenance activities;
4808 and
4809 (iii) unless the tangible personal property is used or acquired for an increase in capacity
4810 described in Subsection [
4811 after:
4812 (A) the facility described in Subsection [
4813 (B) the increased capacity described in Subsection [
4814 [
4815 property or a product transferred electronically to a person within this state if that tangible
4816 personal property or product transferred electronically is subsequently shipped outside the state
4817 and incorporated pursuant to contract into and becomes a part of real property located outside
4818 of this state; and
4819 (b) the exemption under Subsection [
4820 other state or political entity to which the tangible personal property is shipped imposes a sales,
4821 use, gross receipts, or other similar transaction excise tax on the transaction against which the
4822 other state or political entity allows a credit for sales and use taxes imposed by this chapter;
4823 [
4824 [
4825
4826
4827 [
4828 [
4829
4830 [
4831
4832 [
4833 [
4834 [
4835
4836 [
4837 [
4838 [
4839 [
4840 [
4841 [
4842 [
4843 [
4844 [
4845 [
4846 (a) delivered to a pawnbroker as part of a pawn transaction; and
4847 (b) redeemed or repurchased within the time period established in a written agreement
4848 between the person and the pawnbroker for redeeming or repurchasing the product;
4849 [
4850 the item:
4851 (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
4852 and
4853 (ii) has a useful economic life of one or more years; and
4854 (b) the following apply to Subsection [
4855 (i) telecommunications enabling or facilitating equipment, machinery, or software;
4856 (ii) telecommunications equipment, machinery, or software required for 911 service;
4857 (iii) telecommunications maintenance or repair equipment, machinery, or software;
4858 (iv) telecommunications switching or routing equipment, machinery, or software; or
4859 (v) telecommunications transmission equipment, machinery, or software;
4860 [
4861 tangible personal property or a product transferred electronically that are used in the research
4862 and development of alternative energy technology; and
4863 (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4864 commission may, for purposes of Subsection [
4865 constitutes purchases of tangible personal property or a product transferred electronically that
4866 are used in the research and development of alternative energy technology;
4867 [
4868 electronically if:
4869 (i) the tangible personal property or product transferred electronically is:
4870 (A) purchased outside of this state;
4871 (B) brought into this state at any time after the purchase described in Subsection [
4872 (55)(a)(i)(A); and
4873 (C) used in conducting business in this state; and
4874 (ii) for:
4875 (A) tangible personal property or a product transferred electronically other than the
4876 tangible personal property described in Subsection [
4877 property for a purpose for which the property is designed occurs outside of this state; or
4878 (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
4879 outside of this state;
4880 (b) the exemption provided for in Subsection [
4881 (i) a lease or rental of tangible personal property or a product transferred electronically;
4882 or
4883 (ii) a sale of a vehicle exempt under Subsection [
4884 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
4885 purposes of Subsection [
4886 following:
4887 (i) conducting business in this state if that phrase has the same meaning in this
4888 Subsection [
4889 (ii) the first use of tangible personal property or a product transferred electronically if
4890 that phrase has the same meaning in this Subsection [
4891 (iii) a purpose for which tangible personal property or a product transferred
4892 electronically is designed if that phrase has the same meaning in this Subsection [
4893 in Subsection [
4894 [
4895 (a) a person presents a prescription for the disposable home medical equipment or
4896 supplies;
4897 (b) the disposable home medical equipment or supplies are used exclusively by the
4898 person to whom the prescription described in Subsection [
4899 (c) the disposable home medical equipment and supplies are listed as eligible for
4900 payment under:
4901 (i) Title XVIII, federal Social Security Act; or
4902 (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
4903 [
4904 [
4905
4906 [
4907
4908 [
4909 [
4910 [
4911 (a) purchased on or after July 1, 2010;
4912 (b) purchased by, on behalf of, or for the benefit of an international airport:
4913 (i) located within a county of the first class; and
4914 (ii) that has a United States customs office on its premises; and
4915 (c) if the construction materials are:
4916 (i) clearly identified;
4917 (ii) segregated; and
4918 (iii) installed or converted to real property:
4919 (A) owned or operated by the international airport described in Subsection [
4920 (57)(b); and
4921 (B) located at the international airport described in Subsection [
4922 [
4923 (a) purchased on or after July 1, 2008;
4924 (b) purchased by, on behalf of, or for the benefit of a new airport:
4925 (i) located within a county of the second class; and
4926 (ii) that is owned or operated by a city in which an airline as defined in Section
4927 59-2-102 is headquartered; and
4928 (c) if the construction materials are:
4929 (i) clearly identified;
4930 (ii) segregated; and
4931 (iii) installed or converted to real property:
4932 (A) owned or operated by the new airport described in Subsection [
4933 (B) located at the new airport described in Subsection [
4934 (C) as part of the construction of the new airport described in Subsection [
4935 (58)(b);
4936 [
4937
4938 [
4939 [
4940 overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
4941 a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
4942 lists a state or country other than this state as the location of registry of the fixed wing turbine
4943 powered aircraft; or
4944 (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
4945 provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
4946 a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
4947 lists a state or country other than this state as the location of registry of the fixed wing turbine
4948 powered aircraft;
4949 [
4950
4951 [
4952 [
4953
4954
4955 [
4956 10-1-203(5) on a purchaser from a business for which the municipality provides an enhanced
4957 level of municipal services;
4958 [
4959 of a new or expanding life science research and development facility in the state, if the
4960 construction materials are:
4961 (a) clearly identified;
4962 (b) segregated; and
4963 (c) installed or converted to real property;
4964 [
4965 (a) a purchase or lease of machinery and equipment that:
4966 (i) are used in performing qualified research:
4967 (A) as defined in Section 41(d), Internal Revenue Code; and
4968 (B) in the state; and
4969 (ii) have an economic life of three or more years; and
4970 (b) normal operating repair or replacement parts:
4971 (i) for the machinery and equipment described in Subsection [
4972 (ii) that have an economic life of three or more years;
4973 [
4974 prepared food if:
4975 (a) for a sale:
4976 (i) the ownership of the seller and the ownership of the purchaser are identical; and
4977 (ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
4978 tangible personal property prior to making the sale; or
4979 (b) for a lease:
4980 (i) the ownership of the lessor and the ownership of the lessee are identical; and
4981 (ii) the lessor or the lessee paid a tax under this chapter on the purchase of that tangible
4982 personal property prior to making the lease;
4983 [
4984 (i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
4985 Gambling, and Recreation Industries, of the 2012 North American Industry Classification
4986 System of the federal Executive Office of the President, Office of Management and Budget;
4987 (ii) the machinery or equipment:
4988 (A) has an economic life of three or more years; and
4989 (B) is used by one or more persons who pay admission or user fees described in
4990 Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment; and
4991 (iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
4992 (A) amounts paid or charged as admission or user fees described in Subsection
4993 59-12-103(1)(f); and
4994 (B) subject to taxation under this chapter; and
4995 (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4996 commission may make rules for verifying that 51% of a purchaser's sales revenue for the
4997 previous calendar quarter is:
4998 (i) amounts paid or charged as admission or user fees described in Subsection
4999 59-12-103(1)(f); and
5000 (ii) subject to taxation under this chapter;
5001 [
5002 accommodations and services described in Subsection 59-12-103(1)(i);
5003 [
5004 [
5005
5006 [
5007 [
5008 [
5009 [
5010 [
5011 financial payment service, of:
5012 (a) machinery and equipment that:
5013 (i) are used in the operation of the electronic financial payment service; and
5014 (ii) have an economic life of three or more years; and
5015 (b) normal operating repair or replacement parts that:
5016 (i) are used in the operation of the electronic financial payment service; and
5017 (ii) have an economic life of three or more years;
5018 [
5019 54-15-102;
5020 [
5021 property or a product transferred electronically if the tangible personal property or product
5022 transferred electronically:
5023 (a) is stored, used, or consumed in the state; and
5024 (b) is temporarily brought into the state from another state:
5025 (i) during a disaster period as defined in Section 53-2a-1202;
5026 (ii) by an out-of-state business as defined in Section 53-2a-1202;
5027 (iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
5028 (iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
5029 [
5030 defined in Section 39-9-102, made pursuant to Title 39, Chapter 9, State Morale, Welfare, and
5031 Recreation Program;
5032 [
5033 [
5034 [
5035 normal operating repair or replacement parts, if the machinery, equipment, or normal operating
5036 repair or replacement parts:
5037 (a) are used in [
5038 (i) the operation of the qualifying data center; or
5039 (ii) the occupant's operations in the qualifying data center; and
5040 (b) have an economic life of one or more years;
5041 [
5042
5043 [
5044 normal operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or
5045 supplies used or consumed:
5046 (a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
5047 in Section 63M-4-701 located in the state;
5048 (b) if the machinery, equipment, normal operating repair or replacement parts,
5049 catalysts, chemicals, reagents, solutions, or supplies are used or consumed in:
5050 (i) the production process to produce gasoline or diesel fuel, or at which blendstock is
5051 added to gasoline or diesel fuel;
5052 (ii) research and development;
5053 (iii) transporting, storing, or managing raw materials, work in process, finished
5054 products, and waste materials produced from refining gasoline or diesel fuel, or adding
5055 blendstock to gasoline or diesel fuel;
5056 (iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
5057 refining; or
5058 (v) preventing, controlling, or reducing pollutants from refining; and
5059 (c) beginning on July 1, 2021, if the person has obtained a form certified by the Office
5060 of Energy Development under Subsection 63M-4-702(2);
5061 [
5062 services, as defined in Section 63H-1-205, if the proprietor is subject to the MIDA
5063 accommodations tax imposed under Section 63H-1-205;
5064 [
5065 normal operating repair or replacement parts, or materials, except for office equipment or
5066 office supplies, by an establishment, as the commission defines that term in accordance with
5067 Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
5068 (a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
5069 American Industry Classification System of the federal Executive Office of the President,
5070 Office of Management and Budget;
5071 (b) is located in this state; and
5072 (c) uses the machinery, equipment, normal operating repair or replacement parts, or
5073 materials in the operation of the establishment; [
5074 [
5075 and
5076 (77) if paid for through a machine that accepts only cash for payment and if the
5077 machine is the only method by which to pay:
5078 (a) sales of cleaning or washing of tangible personal property if the cleaning or
5079 washing of the tangible personal property is not assisted cleaning or washing of tangible
5080 personal property;
5081 (b) sales of food and food ingredients or prepared food from a vending machine if:
5082 (i) the proceeds of each sale do not exceed $1; and
5083 (ii) the seller or operator of the vending machine reports an amount equal to 150% of
5084 the cost of the food and food ingredients or prepared food as goods consumed;
5085 (c) sales or rentals of the right to use or operate an unassisted amusement device for
5086 amusement, entertainment, or recreation; and
5087 (78) amounts paid or charged for tangible personal property that:
5088 (a) is not electricity, machinery, equipment, vehicles, parts, office equipment, or office
5089 supplies; and
5090 (b) is consumed as part of a service described in Subsection 59-12-103(1)(g), (h), or
5091 (j).
5092 Section 43. Section 59-12-104.5 is amended to read:
5093 59-12-104.5. Revenue and Taxation Interim Committee review of sales and use
5094 taxes.
5095 The Revenue and Taxation Interim Committee shall:
5096 (1) review Subsection 59-12-104[
5097 in which Congress permits a state to participate in the special supplemental nutrition program
5098 under 42 U.S.C. Sec. 1786 even if state or local sales taxes are collected within the state on
5099 purchases of food under that program; and
5100 (2) review Subsection 59-12-104[
5101 in which Congress permits a state to participate in the SNAP as defined in Section 35A-1-102,
5102 even if state or local sales taxes are collected within the state on purchases of food under that
5103 program.
5104 Section 44. Section 59-12-130 is enacted to read:
5105 59-12-130. Sales tax on motor fuel and special fuel.
5106 (1) As used in this section:
5107 (a) "Diesel fuel" means the same as that term is defined in Section 59-13-102.
5108 (b) "Distributor" means the same as that term is defined in Section 59-13-102.
5109 (c) "Motor fuel" means the same as that term is defined in Section 59-13-102.
5110 (d) "Motor fuel or special fuel tax" means the taxes imposed under Chapter 13, Motor
5111 and Special Fuel Tax Act.
5112 (e) (i) Except as provided in Subsection (1)(e)(ii), "special fuel" means the same as that
5113 term is defined in Section 59-13-102.
5114 (ii) "Special fuel" does not include diesel fuel, propane, or electricity.
5115 (f) (i) "Supplier" means a person that:
5116 (A) imports or acquires immediately upon importation into this state special fuel;
5117 (B) produces, refines, manufactures, or blends special fuel in this state;
5118 (C) otherwise acquires for distribution or sale in this state, special fuel with respect to
5119 which there has been no previous taxable sale or use; or
5120 (D) is in a two party exchange where the receiving party is deemed to be the supplier.
5121 (ii) "Supplier" includes a wholesaler that exercises the payment option described in
5122 Section 59-13-321.
5123 (g) "Two party exchange" means a transaction in which special fuel is transferred
5124 between licensed suppliers pursuant to an exchange agreement.
5125 (2) (a) Beginning on April 1, 2020, and subject to the other provisions of this
5126 Subsection (2), a sales tax is imposed on motor fuel and special fuel at an amount equal to the
5127 product of:
5128 (i) the rate described in Subsection 59-12-103(2)(a)(i)(A);
5129 (ii) the average daily rack price, calculated in accordance with Subsection (3) or (4);
5130 and
5131 (iii) (A) the number of gallons of motor fuel or special fuel other than liquified natural
5132 gas, compressed natural gas, or hydrogen;
5133 (B) the number of diesel gallon equivalent for liquified natural gas; or
5134 (C) the number of gasoline gallon equivalent for compressed natural gas or hydrogen.
5135 (b) (i) The distributor shall pay the tax on motor fuel.
5136 (ii) The supplier shall pay the tax on special fuel.
5137 (c) (i) Except as provided in Subsection (2)(c)(iii), the provisions of Chapter 13, Part 2,
5138 Motor Fuel, apply to the sales tax imposed by this section on motor fuel.
5139 (ii) Except as provided in Subsection (2)(c)(iii), the provisions of Chapter 13, Part 3,
5140 Special Fuel, apply to the sales tax imposed by this section on special fuel.
5141 (iii) (A) The sales tax rate on motor fuel and special fuel is as provided in this
5142 Subsection (2).
5143 (B) The treasurer shall deposit the revenue collected from the sales tax imposed under
5144 this section into the Transportation Investment Fund of 2005 created in Section 72-2-124.
5145 (C) The commission shall pay any refunds from the Transportation Investment Fund of
5146 2005 created in Section 72-2-124.
5147 (3) (a) The commission shall determine annually the average daily rack price for motor
5148 fuel by:
5149 (i) calculating the previous fiscal year statewide average rack price of a gallon of
5150 regular unleaded motor fuel, excluding federal and state excise taxes, for the 12 months ending
5151 on the previous June 30 as published by an oil pricing service; and
5152 (ii) rounding to the nearest one-hundredth of a cent.
5153 (b) (i) Subject to the requirement in Subsection (3)(b)(ii), the statewide average rack
5154 price of a gallon of motor fuel determined under Subsection (3)(b)(ii) may not be less than
5155 $1.78 per gallon.
5156 (ii) The commission shall, on January 1, annually adjust the minimum statewide
5157 average rack price of a gallon of motor fuel described in Subsection (3)(b)(i) by taking the
5158 minimum statewide average rack price of a gallon of motor fuel for the previous calendar year
5159 and adding an amount equal to the greater of:
5160 (A) an amount calculated by multiplying the minimum statewide average rack price of
5161 a gallon of motor fuel for the previous calendar year by the actual percent change during the
5162 previous fiscal year in the Consumer Price Index; and
5163 (B) 0.
5164 (iii) The statewide average rack price of a gallon of motor fuel may not exceed $2.43
5165 per gallon.
5166 (iv) The minimum statewide average rack price of a gallon of motor fuel described and
5167 adjusted under Subsection (3)(b) may not exceed the maximum statewide average rack price of
5168 a gallon of motor fuel under Subsection (3)(b)(iii).
5169 (c) (i) The commission shall annually:
5170 (A) determine the average daily rack price of a gallon of motor fuel in accordance with
5171 this Subsection (3);
5172 (B) publish the average daily rack price calculated in accordance with this Subsection
5173 (3); and
5174 (C) post or otherwise make public the average daily rack price no later than 60 days
5175 prior to the annual effective date under Subsection (3)(c)(ii).
5176 (ii) The average daily rack price described in Subsection (2) and calculated in
5177 accordance with this Subsection (3) shall take effect:
5178 (A) for the 2020 calendar year, on April 1; and
5179 (B) beginning with the 2021 calendar year, on January 1 of each year.
5180 (4) The average daily rack price for special fuels is the product of:
5181 (a) the average daily rack price calculated in accordance with Subsection (3); and
5182 (b) the percentage calculated by dividing the rate calculated in accordance with
5183 Subsection 59-13-301(12) by the rate calculated in accordance with Subsections
5184 59-13-201(1)(b)(ii), (c), and (d).
5185 Section 45. Section 59-12-1201 is amended to read:
5186 59-12-1201. Motor vehicle rental tax -- Rate -- Exemptions -- Administration,
5187 collection, and enforcement of tax -- Administrative charge -- Deposits.
5188 (1) (a) Except as provided in Subsection (3), there is imposed a tax of [
5189 short-term leases and rentals of motor vehicles not exceeding 30 days.
5190 (b) The tax imposed in this section is in addition to all other state, county, or municipal
5191 fees and taxes imposed on rentals of motor vehicles.
5192 (2) (a) Subject to Subsection (2)(b), a tax rate repeal or tax rate change for the tax
5193 imposed under Subsection (1) shall take effect on the first day of a calendar quarter.
5194 (b) (i) For a transaction subject to a tax under Subsection (1), a tax rate increase shall
5195 take effect on the first day of the first billing period:
5196 (A) that begins after the effective date of the tax rate increase; and
5197 (B) if the billing period for the transaction begins before the effective date of a tax rate
5198 increase imposed under Subsection (1).
5199 (ii) For a transaction subject to a tax under Subsection (1), the repeal of a tax or a tax
5200 rate decrease shall take effect on the first day of the last billing period:
5201 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
5202 and
5203 (B) if the billing period for the transaction begins before the effective date of the repeal
5204 of the tax or the tax rate decrease imposed under Subsection (1).
5205 (3) A motor vehicle is exempt from the tax imposed under Subsection (1) if:
5206 (a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;
5207 (b) the motor vehicle is rented as a personal household goods moving van; or
5208 (c) the lease or rental of the motor vehicle is made for the purpose of temporarily
5209 replacing a person's motor vehicle that is being repaired pursuant to a repair agreement or an
5210 insurance agreement.
5211 (4) (a) (i) The tax authorized under this section shall be administered, collected, and
5212 enforced in accordance with:
5213 (A) the same procedures used to administer, collect, and enforce the tax under Part 1,
5214 Tax Collection; and
5215 (B) Chapter 1, General Taxation Policies.
5216 (ii) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
5217 Subsections 59-12-103(4) through (10) or Section 59-12-107.1 or 59-12-123.
5218 (b) The commission shall retain and deposit an administrative charge in accordance
5219 with Section 59-1-306 from the [
5220 this part.
5221 (c) Except as provided under Subsection (4)(b), all revenue received by the
5222 commission under this section shall be deposited daily with the state treasurer and credited
5223 monthly to the Marda Dillree Corridor Preservation Fund under Section 72-2-117.
5224 Section 46. Section 59-13-202 is amended to read:
5225 59-13-202. Refund of tax for agricultural uses on individual income and
5226 corporate franchise and income tax returns -- Application for permit for refund --
5227 Division of Finance to pay claims -- Rules permitted to enforce part -- Penalties --
5228 Revenue and Taxation Interim Committee study.
5229 (1) As used in this section:
5230 (a) (i) Except at provided in Subsection (1)(a)(ii), "claimant" means a resident or
5231 nonresident person.
5232 (ii) "Claimant" does not include an estate or trust.
5233 (b) "Estate" means a nonresident estate or a resident estate.
5234 (c) "Refundable tax credit" or "tax credit" means a tax credit that a claimant, estate, or
5235 trust may claim:
5236 (i) as provided by statute; and
5237 (ii) regardless of whether, for the taxable year for which the claimant, estate, or trust
5238 claims the tax credit, the claimant, estate, or trust has a tax liability under:
5239 (A) Chapter 7, Corporate Franchise and Income Taxes; or
5240 (B) Chapter 10, Individual Income Tax Act.
5241 (d) "Trust" means a nonresident trust or a resident trust.
5242 (2) Any claimant, estate, or trust that purchases and uses any motor fuel within the state
5243 for the purpose of operating or propelling stationary farm engines and self-propelled farm
5244 machinery used for nonhighway agricultural uses, and that has paid the tax on the motor fuel as
5245 provided by this part, is entitled to a refund of the tax subject to the conditions and limitations
5246 provided under this part.
5247 (3) (a) A claimant, estate, or trust desiring a nonhighway agricultural use refund under
5248 this part shall claim the refund as a refundable tax credit on the tax return the claimant, estate,
5249 or trust files under:
5250 (i) Chapter 7, Corporate Franchise and Income Taxes; or
5251 (ii) Chapter 10, Individual Income Tax Act.
5252 (b) A claimant, estate, or trust not subject to filing a tax return described in Subsection
5253 (3)(a) shall obtain a permit and file claims on a calendar year basis.
5254 (c) Any claimant, estate, or trust claiming a refundable tax credit under this section is
5255 required to furnish any or all of the information outlined in this section upon request of the
5256 commission.
5257 (d) A refundable tax credit under this section is allowed only on purchases on which
5258 tax is paid during the taxable year covered by the tax return.
5259 (4) In order to obtain a permit for a refund of motor fuel tax paid, an application shall
5260 be filed containing:
5261 (a) the name of the claimant, estate, or trust;
5262 (b) the claimant's, estate's, or trust's address;
5263 (c) location and number of acres owned and operated, location and number of acres
5264 rented and operated, the latter of which shall be verified by a signed statement from the legal
5265 owner;
5266 (d) number of acres planted to each crop, type of soil, and whether irrigated or dry; and
5267 (e) make, size, and type of fuel used and power rating of each piece of equipment using
5268 fuel. If the claimant, estate, or trust is an operator of self-propelled or tractor-pulled farm
5269 machinery with which the claimant, estate, or trust works for hire doing custom jobs for other
5270 farmers, the application shall include information the commission requires and shall all be
5271 contained in, and be considered part of, the original application. The claimant, estate, or trust
5272 shall also file with the application a certificate from the county assessor showing each piece of
5273 equipment using fuel. This original application and all information contained in it constitutes a
5274 permanent file with the commission in the name of the claimant, estate, or trust.
5275 (5) A claimant, estate, or trust claiming the right to a refund of motor fuel tax paid shall
5276 file a claim with the commission by April 15 of each year for the refund for the previous
5277 calendar year. The claim shall state the name and address of the claimant, estate, or trust, the
5278 number of gallons of motor fuel purchased for nonhighway agricultural uses, and the amount
5279 paid for the motor fuel. The claimant, estate, or trust shall retain the original invoice to support
5280 the claim. No more than one claim for a tax refund may be filed annually by each user of
5281 motor fuel purchased for nonhighway agricultural uses.
5282 (6) Upon commission approval of the claim for a refund, the Division of Finance shall
5283 pay the amount found due to the claimant, estate, or trust. The total amount of claims for
5284 refunds shall be paid from motor fuel taxes.
5285 (7) The commission may refuse to accept as evidence of purchase or payment any
5286 instruments that show alteration or that fail to indicate the quantity of the purchase, the price of
5287 the motor fuel, a statement that the motor fuel is purchased for purposes other than
5288 transportation, and the date of purchase and delivery. If the commission is not satisfied with
5289 the evidence submitted in connection with the claim, the commission may reject the claim or
5290 require additional evidence.
5291 (8) A claimant, estate, or trust aggrieved by the decision of the commission with
5292 respect to a refundable tax credit or refund may file a request for agency action, requesting a
5293 hearing before the commission.
5294 (9) A claimant, estate, or trust that makes any false claim, report, or statement, as
5295 claimant, estate, trust, agent, or creditor, with intent to defraud or secure a refund to which the
5296 claimant, estate, or trust is not entitled, is subject to the criminal penalties provided under
5297 Section 59-1-401, and the commission shall initiate the filing of a complaint for alleged
5298 violations of this part. In addition to these penalties, the claimant, estate, or trust may not
5299 receive any refund as a claimant, estate, or trust or as a creditor of a claimant, estate, or trust for
5300 refund for a period of five years.
5301 [
5302
5303
5304
5305 [
5306 Act, the commission may make rules providing procedures for:
5307 (i) making a refund to a claimant, estate, or trust as required by Subsection (3)(a)(i); or
5308 [
5309
5310 [
5311 (11) (a) On or before November 30, 2017, and every three years after 2017, the
5312 Revenue and Taxation Interim Committee shall review the tax credit provided by this section
5313 and make recommendations concerning whether the tax credit should be continued, modified,
5314 or repealed.
5315 (b) In conducting the review required by Subsection (11)(a), the Revenue and Taxation
5316 Interim Committee shall:
5317 (i) schedule time on at least one committee agenda to conduct the review;
5318 (ii) invite state agencies, individuals, and organizations concerned with the credit under
5319 review to provide testimony;
5320 (iii) ensure that the recommendations described in this section include an evaluation of:
5321 (A) the cost of the tax credit to the state;
5322 (B) the purpose and effectiveness of the tax credit; and
5323 (C) the extent to which the state benefits from the tax credit; and
5324 (iv) undertake other review efforts as determined by the chairs of the Revenue and
5325 Taxation Interim Committee.
5326 Section 47. Section 59-13-323 is enacted to read:
5327 59-13-323. Additional special fuel tax on diesel fuel.
5328 (1) A supplier shall pay an additional special fuel tax on diesel fuel that is subject to
5329 the special fuel tax imposed under Section 59-13-301 in an amount equal to:
5330 (a) beginning on April 1, 2020, and ending on December 31, 2021, six cents per gallon;
5331 and
5332 (b) beginning on January 1, 2022, 10 cents per gallon.
5333 (2) (a) The commission shall deposit daily the revenue that the commission collects
5334 under this section with the state treasurer.
5335 (b) Notwithstanding Section 59-13-301, the state treasurer shall credit the revenue
5336 deposited in accordance with Subsection (2)(a) to the Transportation Investment Fund of 2005
5337 created in Section 72-2-124.
5338 (3) (a) A person entitled to a refund of a special fuel tax under this part may receive a
5339 refund of the additional special fuel tax due under this section for the same gallons that the
5340 person is entitled to a refund of a special fuel tax.
5341 (b) Notwithstanding Section 59-13-318, the total amount of claims for refunds under
5342 Subsection (3)(a) shall be paid from the Transportation Investment Fund of 2005.
5343 (4) Beginning in 2021, the commission shall submit annually on or before October 1,
5344 an electronic report to a legislative committee designated by the Legislative Management
5345 Committee that:
5346 (a) states the amount of revenue collected from the tax imposed under Section
5347 59-13-323 during the preceding fiscal year; and
5348 (b) provides an estimate of the revenue that will be collected from the tax imposed
5349 under Section 59-13-323 during the current fiscal year.
5350 Section 48. Section 63I-2-241 is enacted to read:
5351 63I-2-241. Repeal dates -- Title 41.
5352 Subsection 41-6a-702(5), which allows a vehicle with a clean fuel vehicle decal to
5353 travel in a lane designated for the use of high occupancy vehicles regardless of the number of
5354 occupants, is repealed September 30, 2025.
5355 Section 49. Section 63I-2-259 is amended to read:
5356 63I-2-259. Repeal dates -- Title 59.
5357 [
5358 [
5359 53F-2-301.5" is repealed July 1, 2023.
5360 [
5361 (2) Subsections 59-12-102(61) and (62), which define "life science establishment" and
5362 "life science research and development facility," are repealed January 1, 2027.
5363 (3) Subsection 59-12-104(62), which provides a sales and use tax exemption related to
5364 amounts paid or charged for construction materials used in the construction of a life science
5365 research and development facility, is repealed January 1, 2027.
5366 Section 50. Section 63I-2-272 is amended to read:
5367 63I-2-272. Repeal dates -- Title 72.
5368 (1) Subsections 72-1-213(2) and (3)(a)(i), related to the Road Usage Charge Advisory
5369 Committee, are repealed January 1, 2022.
5370 [
5371 [
5372
5373 [
5374
5375
5376 [
5377 (3) Section 72-6-121 is repealed September 30, 2025.
5378 Section 51. Section 63M-4-702 is amended to read:
5379 63M-4-702. Refiner gasoline standard reporting -- Office of Energy Development
5380 certification of sales and use tax exemption eligibility.
5381 (1) (a) Beginning on July 1, 2021, a refiner that seeks to be eligible for a sales and use
5382 tax exemption under Subsection 59-12-104[
5383 whether the refiner's facility that is located within the state will have an average gasoline sulfur
5384 level of 10 parts per million (ppm) or less using the formulas prescribed in 40 C.F.R. Sec.
5385 80.1603, excluding the offset for credit use and transfer as prescribed in 40 C.F.R. Sec.
5386 80.1616.
5387 (b) Fuels for which a final destination outside Utah can be demonstrated or that are not
5388 subject to the standards and requirements of 40 C.F.R. Sec. 80.1603 as specified in 40 C.F.R.
5389 Sec. 80.1601 are not subject to the reporting provisions under Subsection (1)(a).
5390 (2) (a) Beginning on July 1, 2021, the office shall annually certify that the refiner is
5391 eligible for the sales and use tax exemption under Subsection 59-12-104[
5392 (i) on a form provided by the State Tax Commission that shall be retained by the
5393 refiner claiming the sales and use tax exemption under Subsection 59-12-104[
5394 (ii) if the refiner's refinery that is located within the state had an average sulfur level of
5395 10 parts per million (ppm) or less as reported under Subsection (1) in the previous calendar
5396 year; and
5397 (iii) before a taxpayer is allowed the sales and use tax exemption under Subsection
5398 59-12-104[
5399 (b) The certification provided by the office under Subsection (2)(a) shall be renewed
5400 annually.
5401 (c) The office:
5402 (i) shall accept a copy of a report submitted by a refiner to the Environmental
5403 Protection Agency under 40 C.F.R. Sec. 80.1652 as sufficient evidence of the refiner's average
5404 gasoline sulfur level; or
5405 (ii) may establish another reporting mechanism through rules made under Subsection
5406 (3).
5407 (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
5408 office may make rules to implement this section.
5409 Section 52. Section 72-1-201 is amended to read:
5410 72-1-201. Creation of Department of Transportation -- Functions, powers, duties,
5411 rights, and responsibilities.
5412 (1) There is created the Department of Transportation which shall:
5413 (a) have the general responsibility for planning, research, design, construction,
5414 maintenance, security, and safety of state transportation systems;
5415 (b) provide administration for state transportation systems and programs;
5416 (c) implement the transportation policies of the state;
5417 (d) plan, develop, construct, and maintain state transportation systems that are safe,
5418 reliable, environmentally sensitive, and serve the needs of the traveling public, commerce, and
5419 industry;
5420 (e) establish standards and procedures regarding the technical details of administration
5421 of the state transportation systems as established by statute and administrative rule;
5422 (f) advise the governor and the Legislature about state transportation systems needs;
5423 (g) coordinate with utility companies for the reasonable, efficient, and cost-effective
5424 installation, maintenance, operation, relocation, and upgrade of utilities within state highway
5425 rights-of-way;
5426 (h) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
5427 make rules for the administration of the department, state transportation systems, and
5428 programs;
5429 (i) jointly with the commission annually report to the Transportation Interim
5430 Committee, by November 30 of each year, as to the operation, maintenance, condition,
5431 mobility, and safety needs for state transportation systems;
5432 (j) ensure that any training or certification required of a public official or public
5433 employee, as those terms are defined in Section 63G-22-102, complies with Title 63G, Chapter
5434 22, State Training and Certification Requirements, if the training or certification is required:
5435 (i) under this title;
5436 (ii) by the department; or
5437 (iii) by an agency or division within the department; [
5438 (k) study and make recommendations to the Legislature on potential managed lane use
5439 and implementation on selected transportation systems within the state[
5440 (l) implement one or more strategies to manage congestion on state highways and
5441 generate highway user fees, including the use of one or more high occupancy toll lanes as
5442 defined in Section 72-6-118 and implementation of the technology described in Subsection
5443 72-6-118(2)(e).
5444 (2) (a) The department shall exercise reasonable care in designing, constructing, and
5445 maintaining a state highway in a reasonably safe condition for travel.
5446 (b) Nothing in this section shall be construed as:
5447 (i) creating a private right of action; or
5448 (ii) expanding or changing the department's common law duty as described in
5449 Subsection (2)(a) for liability purposes.
5450 Section 53. Section 72-1-213.1 is amended to read:
5451 72-1-213.1. Road usage charge program.
5452 (1) As used in this section:
5453 (a) "Account manager" means an entity under contract with the department to
5454 administer and manage the road usage charge program.
5455 (b) "Alternative fuel vehicle" means the same as that term is defined in Section
5456 41-1a-102.
5457 (c) "Payment period" means the interval during which an owner is required to report
5458 mileage and pay the appropriate road usage charge according to the terms of the program.
5459 (d) "Program" means the road usage charge program established and described in this
5460 section.
5461 (2) There is established a road usage charge program as described in this section.
5462 (3) (a) The department shall implement and oversee the administration of the program,
5463 which shall begin on January 1, 2020.
5464 (b) To implement and administer the program, the department may contract with an
5465 account manager.
5466 (4) (a) The owner or lessee of an alternative fuel vehicle may apply for enrollment of
5467 the alternative fuel vehicle in the program.
5468 (b) If an application for enrollment into the program is approved by the department, the
5469 owner or lessee of an alternative fuel vehicle may participate in the program in lieu of paying
5470 the fee described in Subsection 41-1a-1206(1)(h) or (2)(b).
5471 (5) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
5472 and consistent with this section, the department:
5473 (i) shall make rules to establish:
5474 (A) processes and terms for enrollment into and withdrawal or removal from the
5475 program;
5476 (B) payment periods and other payment methods and procedures for the program;
5477 (C) standards for mileage reporting mechanisms for an owner or lessee of an
5478 alternative fuel vehicle to report mileage as part of participation in the program;
5479 (D) standards for program functions for mileage recording, payment processing,
5480 account management, and other similar aspects of the program;
5481 (E) contractual terms between an owner or lessee of an alternative fuel vehicle owner
5482 and an account manager for participation in the program;
5483 (F) contractual terms between the department and an account manager, including
5484 authority for an account manager to enforce the terms of the program;
5485 (G) procedures to provide security and protection of personal information and data
5486 connected to the program, and penalties for account managers for violating privacy protection
5487 rules;
5488 (H) penalty procedures for a program participant's failure to pay a road usage charge or
5489 tampering with a device necessary for the program; and
5490 (I) department oversight of an account manager, including privacy protection of
5491 personal information and access and auditing capability of financial and other records related to
5492 administration of the program; and
5493 (ii) may make rules to establish:
5494 (A) an enrollment cap for certain alternative fuel vehicle types to participate in the
5495 program;
5496 (B) a process for collection of an unpaid road usage charge or penalty; or
5497 (C) integration of the program with other similar programs, such as tolling.
5498 (b) The department shall make recommendations to and consult with the commission
5499 regarding road usage mileage rates for each type of alternative fuel vehicle.
5500 (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
5501 consistent with this section, the commission shall, after consultation with the department, make
5502 rules to establish the road usage charge mileage rate for each type of alternative fuel vehicle.
5503 (7) (a) Revenue generated by the road usage charge program and relevant penalties
5504 shall be deposited into the Transportation Fund.
5505 (b) The department may use revenue generated by the program to cover the costs of
5506 administering the program.
5507 (8) (a) The department may:
5508 (i) (A) impose a penalty for failure to timely pay a road usage charge according to the
5509 terms of the program or tampering with a device necessary for the program; and
5510 (B) request that the Division of Motor Vehicles place a hold on the registration of the
5511 owner's or lessee's alternative fuel vehicle for failure to pay a road usage charge according to
5512 the terms of the program;
5513 (ii) send correspondence to the owner of an alternative fuel vehicle to inform the owner
5514 or lessee of:
5515 (A) the road usage charge program, implementation, and procedures;
5516 (B) an unpaid road usage charge and the amount of the road usage charge to be paid to
5517 the department;
5518 (C) the penalty for failure to pay a road usage charge within the time period described
5519 in Subsection (8)(a)(iii); and
5520 (D) a hold being placed on the owner's or lessee's registration for the alternative fuel
5521 vehicle, if the road usage charge and penalty are not paid within the time period described in
5522 Subsection (8)(a)(iii), which would prevent the renewal of the alternative fuel vehicle's
5523 registration; and
5524 (iii) require that the owner or lessee of the alternative fuel vehicle pay the road usage
5525 charge to the department within 30 days of the date when the department sends written notice
5526 of the road usage charge to the owner or lessee.
5527 (b) The department shall send the correspondence and notice described in Subsection
5528 (8)(a) to the owner of the alternative fuel vehicle according to the terms of the program.
5529 (9) (a) The Division of Motor Vehicles and the department shall share and provide
5530 access to information pertaining to an alternative fuel vehicle and participation in the program
5531 including:
5532 (i) registration and ownership information pertaining to an alternative fuel vehicle;
5533 (ii) information regarding the failure of an alternative fuel vehicle owner or lessee to
5534 pay a road usage charge or penalty imposed under this section within the time period described
5535 in Subsection (8)(a)(iii); and
5536 (iii) the status of a request for a hold on the registration of an alternative fuel vehicle.
5537 (b) If the department requests a hold on the registration in accordance with this section,
5538 the Division of Motor Vehicles may not renew the registration of a motor vehicle under Title
5539 41, Chapter 1a, Part 2, Registration, until the department withdraws the hold request.
5540 (10) The owner of an alternative fuel vehicle may apply for enrollment in the program
5541 or withdraw from the program according to the terms established by the department pursuant to
5542 rules made under Subsection (5).
5543 (11) If enrolled in the program, the owner or lessee of an alternative fuel vehicle shall:
5544 (a) report mileage driven as required by the department pursuant to Subsection (5);
5545 (b) pay the road usage fee for each payment period as set by the department and the
5546 commission pursuant to Subsections (5) and (6); and
5547 (c) comply with all other provisions of this section and other requirements of the
5548 program.
5549 (12) On or before October 1 of each year, the department shall submit an electronic
5550 report to a legislative committee designated by the Legislative Management Committee that:
5551 (a) describes the amount of revenue generated by the program during the preceding
5552 fiscal year; and
5553 (b) recommends strategies for expanding enrollment in the program.
5554 Section 54. Section 72-2-120 is amended to read:
5555 72-2-120. Tollway Special Revenue Fund -- Revenue.
5556 (1) There is created a special revenue fund within the Transportation Fund known as
5557 the "Tollway Special Revenue Fund."
5558 (2) The fund shall be funded from the following sources:
5559 (a) tolls collected by the department under Section 72-6-118;
5560 (b) funds received by the department through a tollway development agreement under
5561 Section 72-6-203;
5562 (c) appropriations made to the fund by the Legislature;
5563 (d) contributions from other public and private sources for deposit into the fund;
5564 (e) interest earnings on cash balances; and
5565 (f) money collected for repayments and interest on fund money.
5566 (3) The Division of Finance may create a subaccount for each tollway as defined in
5567 Section 72-6-118.
5568 (4) The commission may authorize the money deposited into the fund to be spent by
5569 the department [
5570
5571
5572 purpose.
5573 Section 55. Section 72-2-124 is amended to read:
5574 72-2-124. Transportation Investment Fund of 2005.
5575 (1) There is created a capital projects fund entitled the Transportation Investment Fund
5576 of 2005.
5577 (2) The fund consists of money generated from the following sources:
5578 (a) any voluntary contributions received for the maintenance, construction,
5579 reconstruction, or renovation of state and federal highways;
5580 (b) appropriations made to the fund by the Legislature;
5581 (c) registration fees designated under Section 41-1a-1201;
5582 (d) the sales and use tax revenues deposited into the fund in accordance with [
5583
5584 (e) the additional special fuel tax revenues deposited into the fund in accordance with
5585 Section 59-13-323; and
5586 [
5587 (3) (a) The fund shall earn interest.
5588 (b) All interest earned on fund money shall be deposited into the fund.
5589 (4) (a) Except as provided in Subsection (4)(b), the executive director may only use
5590 fund money to pay:
5591 (i) the costs of maintenance, construction, reconstruction, or renovation to state and
5592 federal highways prioritized by the Transportation Commission through the prioritization
5593 process for new transportation capacity projects adopted under Section 72-1-304;
5594 (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
5595 projects described in Subsections 63B-18-401(2), (3), and (4);
5596 (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
5597 minus the costs paid from the County of the First Class Highway Projects Fund in accordance
5598 with Subsection 72-2-121(4)(f);
5599 (iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
5600 Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified
5601 by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the
5602 debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
5603 (v) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
5604 for projects prioritized in accordance with Section 72-2-125;
5605 (vi) all highway general obligation bonds that are intended to be paid from revenues in
5606 the Centennial Highway Fund created by Section 72-2-118;
5607 (vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
5608 Class Highway Projects Fund created in Section 72-2-121 to be used for the purposes described
5609 in Section 72-2-121; and
5610 (viii) if a political subdivision provides a contribution equal to or greater than 40% of
5611 the costs needed for construction, reconstruction, or renovation of paved pedestrian or paved
5612 nonmotorized transportation for projects that:
5613 (A) mitigate traffic congestion on the state highway system;
5614 (B) are part of an active transportation plan approved by the department; and
5615 (C) are prioritized by the commission through the prioritization process for new
5616 transportation capacity projects adopted under Section 72-1-304.
5617 (b) The executive director may use fund money to exchange for an equal or greater
5618 amount of federal transportation funds to be used as provided in Subsection (4)(a).
5619 (5) (a) Except as provided in Subsection (5)(b), the executive director may not use fund
5620 money, including fund money from the Transit Transportation Investment Fund, within the
5621 boundaries of a municipality that is required to adopt a moderate income housing plan element
5622 as part of the municipality's general plan as described in Subsection 10-9a-401(3), if the
5623 municipality has failed to adopt a moderate income housing plan element as part of the
5624 municipality's general plan or has failed to implement the requirements of the moderate income
5625 housing plan as determined by the results of the Department of Workforce Service's review of
5626 the annual moderate income housing report described in Subsection 35A-8-803(1)(a)(vii).
5627 (b) Within the boundaries of a municipality that is required under Subsection
5628 10-9a-401(3) to plan for moderate income housing growth but has failed to adopt a moderate
5629 income housing plan element as part of the municipality's general plan or has failed to
5630 implement the requirements of the moderate income housing plan as determined by the results
5631 of the Department of Workforce Service's review of the annual moderate income housing
5632 report described in Subsection 35A-8-803(1)(a)(vii), the executive director:
5633 (i) may use fund money in accordance with Subsection (4)(a) for a limited-access
5634 facility;
5635 (ii) may not use fund money for the construction, reconstruction, or renovation of an
5636 interchange on a limited-access facility;
5637 (iii) may use Transit Transportation Investment Fund money for a multi-community
5638 fixed guideway public transportation project; and
5639 (iv) may not use Transit Transportation Investment Fund money for the construction,
5640 reconstruction, or renovation of a station that is part of a fixed guideway public transportation
5641 project.
5642 (6) (a) Except as provided in Subsection (6)(b), the executive director may not use fund
5643 money, including fund money from the Transit Transportation Investment Fund, within the
5644 boundaries of the unincorporated area of a county, if the county is required to adopt a moderate
5645 income housing plan element as part of the county's general plan as described in Subsection
5646 17-27a-401(3) and if the county has failed to adopt a moderate income housing plan element as
5647 part of the county's general plan or has failed to implement the requirements of the moderate
5648 income housing plan as determined by the results of the Department of Workforce Service's
5649 review of the annual moderate income housing report described in Subsection
5650 35A-8-803(1)(a)(vii).
5651 (b) Within the boundaries of the unincorporated area of a county where the county is
5652 required under Subsection 17-27a-401(3) to plan for moderate income housing growth but has
5653 failed to adopt a moderate income housing plan element as part of the county's general plan or
5654 has failed to implement the requirements of the moderate income housing plan as determined
5655 by the results of the Department of Workforce Service's review of the annual moderate income
5656 housing report described in Subsection 35A-8-803(1)(a)(vii), the executive director:
5657 (i) may use fund money in accordance with Subsection (4)(a) for a limited-access
5658 facility;
5659 (ii) may not use fund money for the construction, reconstruction, or renovation of an
5660 interchange on a limited-access facility;
5661 (iii) may use Transit Transportation Investment Fund money for a multi-community
5662 fixed guideway public transportation project; and
5663 (iv) may not use Transit Transportation Investment Fund money for the construction,
5664 reconstruction, or renovation of a station that is part of a fixed guideway public transportation
5665 project.
5666 (7) (a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued
5667 in any fiscal year, the department and the commission shall appear before the Executive
5668 Appropriations Committee of the Legislature and present the amount of bond proceeds that the
5669 department needs to provide funding for the projects identified in Subsections 63B-18-401(2),
5670 (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year.
5671 (b) The Executive Appropriations Committee of the Legislature shall review and
5672 comment on the amount of bond proceeds needed to fund the projects.
5673 (8) The Division of Finance shall, from money deposited into the fund, transfer the
5674 amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
5675 Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt service or
5676 sinking fund.
5677 (9) (a) There is created in the Transportation Investment Fund of 2005 the Transit
5678 Transportation Investment Fund.
5679 (b) The fund shall be funded by:
5680 (i) contributions deposited into the fund in accordance with Section 59-12-103;
5681 (ii) appropriations into the account by the Legislature;
5682 (iii) private contributions; and
5683 (iv) donations or grants from public or private entities.
5684 (c) (i) The fund shall earn interest.
5685 (ii) All interest earned on fund money shall be deposited into the fund.
5686 (d) Subject to Subsection (9)(e), the Legislature may appropriate money from the fund
5687 for public transit capital development of new capacity projects to be used as prioritized by the
5688 commission.
5689 (e) (i) The Legislature may only appropriate money from the fund for a public transit
5690 capital development project or pedestrian or nonmotorized transportation project that provides
5691 connection to the public transit system if the public transit district or political subdivision
5692 provides funds of equal to or greater than 40% of the costs needed for the project.
5693 (ii) A public transit district or political subdivision may use money derived from a loan
5694 granted pursuant to Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund, to provide all or
5695 part of the 40% requirement described in Subsection (9)(e)(i) if:
5696 (A) the loan is approved by the commission as required in Title 72, Chapter 2, Part 2,
5697 State Infrastructure Bank Fund; and
5698 (B) the proposed capital project has been prioritized by the commission pursuant to
5699 Section 72-1-303.
5700 Section 56. Section 72-6-118 is amended to read:
5701 72-6-118. Definitions -- Establishment and operation of tollways -- Imposition
5702 and collection of tolls -- Amount of tolls -- Rulemaking.
5703 (1) As used in this section:
5704 (a) (i) [
5705 occupancy vehicle lane designated under Section 41-6a-702 that may be used by an operator of
5706 a vehicle carrying less than the number of persons specified for the high occupancy vehicle
5707 lane if the operator of the vehicle pays a toll or fee.
5708 (ii) On or after January 1, 2025, "high occupancy toll lane" means a high occupancy
5709 vehicle lane designated under Section 41-6a-702 that may be used by an operator of a vehicle
5710 only if:
5711 (A) the vehicle is carrying three or more occupants; or
5712 (B) the operator pays a toll or fee.
5713 (b) "Toll" means any tax, fee, or charge assessed for the specific use of a tollway.
5714 (c) "Toll lane" means a designated new highway or additional lane capacity that is
5715 constructed, operated, or maintained for which a toll is charged for its use.
5716 (d) (i) "Tollway" means a highway, highway lane, bridge, path, tunnel, or right-of-way
5717 designed and used as a transportation route that is constructed, operated, or maintained through
5718 the use of toll revenues.
5719 (ii) "Tollway" includes a high occupancy toll lane and a toll lane.
5720 (e) "Tollway development agreement" has the same meaning as defined in Section
5721 72-6-202.
5722 (2) Subject to the provisions of Subsection (3), the department may:
5723 (a) establish, expand, and operate tollways and related facilities for the purpose of
5724 funding in whole or in part the acquisition of right-of-way and the design, construction,
5725 reconstruction, operation, enforcement, and maintenance of or impacts from a transportation
5726 route for use by the public;
5727 (b) enter into contracts, agreements, licenses, franchises, tollway development
5728 agreements, or other arrangements to implement this section;
5729 (c) impose and collect tolls on any tollway established under this section, including
5730 collection of past due payment of a toll or penalty;
5731 (d) grant exclusive or nonexclusive rights to a private entity to impose and collect tolls
5732 pursuant to the terms and conditions of a tollway development agreement;
5733 (e) use technology to automatically monitor a tollway and collect payment of a toll,
5734 including:
5735 (i) license plate reading technology; and
5736 (ii) photographic or video recording technology; and
5737 (f) in accordance with Subsection (5), request that the Division of Motor Vehicles deny
5738 a request for registration of a motor vehicle if the motor vehicle owner has failed to pay a toll
5739 or penalty imposed for usage of a tollway involving the motor vehicle for which registration
5740 renewal has been requested.
5741 (3) (a) The department may establish or operate a tollway on an existing highway if
5742 approved by the commission in accordance with the terms of this section.
5743 (b) To establish a tollway on an existing highway, the department shall submit a
5744 proposal to the commission including:
5745 (i) a description of the tollway project;
5746 (ii) projected traffic on the tollway;
5747 (iii) the anticipated amount of the toll to be charged; and
5748 (iv) projected toll revenue.
5749 (4) (a) For a tollway established under this section, the department may:
5750 (i) according to the terms of each tollway, impose the toll upon the owner of a motor
5751 vehicle using the tollway according to the terms of the tollway;
5752 (ii) send correspondence to the owner of the motor vehicle to inform the owner of:
5753 (A) an unpaid toll and the amount of the toll to be paid to the department;
5754 (B) the penalty for failure to pay the toll timely; and
5755 (C) a hold being placed on the owner's registration for the motor vehicle if the toll and
5756 penalty are not paid timely, which would prevent the renewal of the motor vehicle's
5757 registration;
5758 (iii) require that the owner of the motor vehicle pay the toll to the department within 30
5759 days of the date when the department sends written notice of the toll to the owner; and
5760 (iv) impose a penalty for failure to pay a toll timely.
5761 (b) The department shall mail the correspondence and notice described in Subsection
5762 (4)(a) to the owner of the motor vehicle according to the terms of a tollway.
5763 (5) (a) The Division of Motor Vehicles and the department shall share and provide
5764 access to information pertaining to a motor vehicle and tollway enforcement including:
5765 (i) registration and ownership information pertaining to a motor vehicle;
5766 (ii) information regarding the failure of a motor vehicle owner to timely pay a toll or
5767 penalty imposed under this section; and
5768 (iii) the status of a request for a hold on the registration of a motor vehicle.
5769 (b) If the department requests a hold on the registration in accordance with this section,
5770 the Division of Motor Vehicles may not renew the registration of a motor vehicle under Title
5771 41, Chapter 1a, Part 2, Registration, if the owner of the motor vehicle has failed to pay a toll or
5772 penalty imposed under this section for usage of a tollway involving the motor vehicle for which
5773 registration renewal has been requested until the department withdraws the hold request.
5774 (6) (a) Except as provided in Subsection (6)(b), in accordance with Title 63G, Chapter
5775 3, Utah Administrative Rulemaking Act, the commission shall:
5776 (i) set the amount of any toll imposed or collected on a tollway on a state highway; and
5777 (ii) for tolls established under Subsection (6)(b), set:
5778 (A) an increase in a toll rate or user fee above an increase specified in a tollway
5779 development agreement; or
5780 (B) an increase in a toll rate or user fee above a maximum toll rate specified in a
5781 tollway development agreement.
5782 (b) A toll or user fee and an increase to a toll or user fee imposed or collected on a
5783 tollway on a state highway that is the subject of a tollway development agreement shall be set
5784 in the tollway development agreement.
5785 (7) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
5786 the department shall make rules:
5787 (i) necessary to establish and operate tollways on state highways;
5788 (ii) that establish standards and specifications for automatic tolling systems and
5789 automatic tollway monitoring technology; and
5790 (iii) to set the amount of a penalty for failure to pay a toll under this section.
5791 (b) The rules shall:
5792 (i) include minimum criteria for having a tollway; and
5793 (ii) conform to regional and national standards for automatic tolling.
5794 (8) (a) The commission may provide funds for public or private tollway pilot projects
5795 or high occupancy toll lanes from General Fund money appropriated by the Legislature to the
5796 commission for that purpose.
5797 (b) The commission may determine priorities and funding levels for tollways
5798 designated under this section.
5799 (9) (a) Except as provided in Subsection (9)(b), all revenue generated from a tollway
5800 on a state highway shall be deposited into the Tollway Special Revenue Fund created in
5801 Section 72-2-120 and used for [
5802
5803
5804
5805 transportation purpose.
5806 (b) Revenue generated from a tollway that is the subject of a tollway development
5807 agreement shall be deposited into the Tollway Special Revenue Fund and used in accordance
5808 with Subsection (9)(a) unless:
5809 (i) the revenue is to a private entity through the tollway development agreement; or
5810 (ii) the revenue is identified for a different purpose under the tollway development
5811 agreement.
5812 (10) Data described in Subsection (2)(e) obtained for the purposes of this section:
5813 (a) in accordance with Section 63G-2-305, is a protected record under Title 63G,
5814 Chapter 2, Government Records Access and Management Act, if the photographic or video
5815 data is maintained by a governmental entity;
5816 (b) may not be used or shared for any purpose other than the purposes described in this
5817 section;
5818 (c) may only be preserved:
5819 (i) so long as necessary to collect the payment of a toll or penalty imposed in
5820 accordance with this section; or
5821 (ii) pursuant to a warrant issued under the Utah Rules of Criminal Procedure or an
5822 equivalent federal warrant; and
5823 (d) may only be disclosed:
5824 (i) in accordance with the disclosure requirements for a protected record under Section
5825 63G-2-202; or
5826 (ii) pursuant to a warrant issued under the Utah Rules of Criminal Procedure or an
5827 equivalent federal warrant.
5828 (11) (a) The department may not sell for any purpose photographic or video data
5829 captured under Subsection (2)(e)(ii).
5830 (b) The department may not share captured photographic or video data for a purpose
5831 not authorized under this section.
5832 [
5833
5834
5835
5836 [
5837 [
5838 Section 57. Section 72-9-603 is amended to read:
5839 72-9-603. Towing notice requirements -- Cost responsibilities -- Abandoned
5840 vehicle title restrictions -- Rules for maximum rates and certification.
5841 (1) Except for a tow truck service that was ordered by a peace officer, or a person
5842 acting on behalf of a law enforcement agency, or a highway authority, after performing a tow
5843 truck service that is being done without the vehicle, vessel, or outboard motor owner's
5844 knowledge, the tow truck operator or the tow truck motor carrier shall:
5845 (a) immediately upon arriving at the place of storage or impound of the vehicle, vessel,
5846 or outboard motor:
5847 (i) send a report of the removal to the Motor Vehicle Division that complies with the
5848 requirements of Subsection 41-6a-1406(4)(b); and
5849 (ii) contact the law enforcement agency having jurisdiction over the area where the
5850 vehicle, vessel, or outboard motor was picked up and notify the agency of the:
5851 (A) location of the vehicle, vessel, or outboard motor;
5852 (B) date, time, and location from which the vehicle, vessel, or outboard motor was
5853 removed;
5854 (C) reasons for the removal of the vehicle, vessel, or outboard motor;
5855 (D) person who requested the removal of the vehicle, vessel, or outboard motor; and
5856 (E) description, including the identification number, license number, or other
5857 identification number issued by a state agency, of the vehicle, vessel, or outboard motor;
5858 (b) within two business days of performing the tow truck service under Subsection
5859 (1)(a), send a certified letter to the last-known address of each party described in Subsection
5860 41-6a-1406(5)(a) with an interest in the vehicle, vessel, or outboard motor obtained from the
5861 Motor Vehicle Division or, if the person has actual knowledge of the party's address, to the
5862 current address, notifying the party of the:
5863 (i) location of the vehicle, vessel, or outboard motor;
5864 (ii) date, time, and location from which the vehicle, vessel, or outboard motor was
5865 removed;
5866 (iii) reasons for the removal of the vehicle, vessel, or outboard motor;
5867 (iv) person who requested the removal of the vehicle, vessel, or outboard motor;
5868 (v) a description, including its identification number and license number or other
5869 identification number issued by a state agency; and
5870 (vi) costs and procedures to retrieve the vehicle, vessel, or outboard motor; and
5871 (c) upon initial contact with the owner whose vehicle, vessel, or outboard motor was
5872 removed, provide the owner with a copy of the Utah Consumer Bill of Rights Regarding
5873 Towing established by the department in Subsection (7)(e).
5874 (2) (a) Until the tow truck operator or tow truck motor carrier reports the removal as
5875 required under Subsection (1)(a), a tow truck operator, tow truck motor carrier, or impound
5876 yard may not:
5877 (i) collect any fee associated with the removal; or
5878 (ii) begin charging storage fees.
5879 (b) (i) Except as provided in Subsection (2)(c), a tow truck operator or tow truck motor
5880 carrier may not perform a tow truck service without the vehicle, vessel, or outboard motor
5881 owner's or a lien holder's knowledge at either of the following locations without signage that
5882 meets the requirements of Subsection (2)(b)(ii):
5883 (A) a mobile home park as defined in Section 57-16-3; or
5884 (B) a multifamily dwelling of more than eight units.
5885 (ii) Signage under Subsection (2)(b)(i) shall display:
5886 (A) where parking is subject to towing; and
5887 (B) (I) the Internet website address that provides access to towing database information
5888 in accordance with Section 41-6a-1406; or
5889 (II) one of the following:
5890 (Aa) the name and phone number of the tow truck operator or tow truck motor carrier
5891 that performs a tow truck service for the locations listed under Subsection (2)(b)(i); or
5892 (Bb) the name of the mobile home park or multifamily dwelling and the phone number
5893 of the mobile home park or multifamily dwelling manager or management office that
5894 authorized the vehicle, vessel, or outboard motor to be towed.
5895 (c) Signage is not required under Subsection (2)(b) for parking in a location:
5896 (i) that is prohibited by law; or
5897 (ii) if it is reasonably apparent that the location is not open to parking.
5898 (d) Nothing in Subsection (2)(b) restricts the ability of a mobile home park as defined
5899 in Section 57-16-3 or a multifamily dwelling from instituting and enforcing regulations on
5900 parking.
5901 (3) The party described in Subsection 41-6a-1406(5)(a) with an interest in a vehicle,
5902 vessel, or outboard motor lawfully removed is only responsible for paying:
5903 (a) the tow truck service and storage fees set in accordance with Subsection (7); [
5904 (b) the administrative impound fee set in Section 41-6a-1406, if applicable[
5905 (c) the applicable sales and use tax.
5906 (4) (a) The fees under Subsection (3) are a possessory lien on the vehicle, vessel, or
5907 outboard motor and any nonlife essential items contained in the vehicle, vessel, or outboard
5908 motor that are owned by the owner of the vehicle, vessel, or outboard motor until paid.
5909 (b) The tow truck operator or tow truck motor carrier shall securely store the vehicle,
5910 vessel, or outboard motor and items described in Subsection (4)(a) in an approved state
5911 impound yard until a party described in Subsection 41-6a-1406(5)(a) with an interest in the
5912 vehicle, vessel, or outboard motor:
5913 (i) pays the [
5914 (ii) removes the vehicle, vessel, or outboard motor from the state impound yard.
5915 (5) (a) A vehicle, vessel, or outboard motor shall be considered abandoned if a party
5916 described in Subsection 41-6a-1406(5)(a) with an interest in the vehicle, vessel, or outboard
5917 motor does not, within 30 days after notice has been sent under Subsection (1)(b):
5918 (i) pay the [
5919 (ii) remove the vehicle, vessel, or outboard motor from the secure storage facility.
5920 (b) A person may not request a transfer of title to an abandoned vehicle, vessel, or
5921 outboard motor until at least 30 days after notice has been sent under Subsection (1)(b).
5922 (6) (a) A tow truck motor carrier or impound yard shall clearly and conspicuously post
5923 and disclose all its current fees, rates, and acceptable forms of payment for tow truck service
5924 and storage of a vehicle in accordance with rules established under Subsection (7).
5925 (b) A tow truck operator, a tow truck motor carrier, and an impound yard shall accept
5926 payment by cash and debit or credit card for a tow truck service under Subsection (1) or any
5927 service rendered, performed, or supplied in connection with a tow truck service under
5928 Subsection (1).
5929 (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
5930 department shall:
5931 (a) subject to the restriction in Subsection (8), set maximum rates that:
5932 (i) a tow truck motor carrier may charge for the tow truck service of a vehicle, vessel,
5933 or outboard motor that are transported in response to:
5934 (A) a peace officer dispatch call;
5935 (B) a motor vehicle division call; and
5936 (C) any other call or request where the owner of the vehicle, vessel, or outboard motor
5937 has not consented to the removal; and
5938 (ii) an impound yard may charge for the storage of a vehicle, vessel, or outboard motor
5939 stored as a result of one of the conditions listed under Subsection (7)(a)(i);
5940 (b) establish authorized towing certification requirements, not in conflict with federal
5941 law, related to incident safety, clean-up, and hazardous material handling;
5942 (c) specify the form and content of the posting and disclosure of fees and rates charged
5943 and acceptable forms of payment by a tow truck motor carrier or impound yard;
5944 (d) set a maximum rate for an administrative fee that a tow truck motor carrier may
5945 charge for reporting the removal as required under Subsection (1)(a)(i) and providing notice of
5946 the removal to each party described in Subsection 41-6a-1406(5)(a) with an interest in the
5947 vehicle, vessel, or outboard motor as required in Subsection (1)(b); and
5948 (e) establish a Utah Consumer Bill of Rights Regarding Towing form that contains
5949 specific information regarding:
5950 (i) a vehicle owner's rights and responsibilities if the owner's vehicle is towed;
5951 (ii) identifies the maximum rates that a tow truck motor carrier may charge for the tow
5952 truck service of a vehicle, vessel, or outboard motor that is transported in response to a call or
5953 request where the owner of the vehicle, vessel, or outboard motor has not consented to the
5954 removal; and
5955 (iii) identifies the maximum rates that an impound yard may charge for the storage of
5956 vehicle, vessel, or outboard motor that is transported in response to a call or request where the
5957 owner of the vehicle, vessel, or outboard motor has not consented to the removal.
5958 (8) An impound yard may not charge a fee for the storage of an impounded vehicle,
5959 vessel, or outboard motor if:
5960 (a) the vehicle, vessel, or outboard motor is being held as evidence; and
5961 (b) the vehicle, vessel, or outboard motor is not being released to a party described in
5962 Subsection 41-6a-1406(5)(a), even if the party satisfies the requirements to release the vehicle,
5963 vessel, or outboard motor under Section 41-6a-1406.
5964 (9) (a) (i) A tow truck motor carrier may charge a rate up to the maximum rate set by
5965 the department in rules made under Subsection (7).
5966 (ii) In addition to the maximum rates established under Subsection (7) [
5967
5968 impound yard:
5969 (A) shall collect the sales and use tax due; and
5970 (B) when receiving payment by credit card, may charge a credit card processing fee of
5971 3% of the transaction total.
5972 (b) A tow truck motor carrier may not be required to maintain insurance coverage at a
5973 higher level than required in rules made pursuant to Subsection (7).
5974 (10) When a tow truck motor carrier or impound lot is in possession of a vehicle,
5975 vessel, or outboard motor as a result of a tow service that was performed without the consent of
5976 the owner, and that was not ordered by a peace officer or a person acting on behalf of a law
5977 enforcement agency, the tow truck motor carrier or impound yard shall make personnel
5978 available:
5979 (a) by phone 24 hours a day, seven days a week; and
5980 (b) to release the impounded vehicle, vessel, or outboard motor to the owner within
5981 one hour of when the owner calls the tow truck motor carrier or impound yard.
5982 Section 58. Repealer.
5983 This bill repeals:
5984 Section 53F-9-304, Underage Drinking Prevention Program Restricted Account.
5985 Section 59-12-104.4, Seller recordkeeping for purposes of higher education
5986 textbook exemption -- Rulemaking authority.
5987 Section 59. Appropriations.
5988 Subsection 59 (a). Fiscal Year 2020 Appropriation -- Transfers to Unrestricted
5989 Funds.
5990 The following sums of money are appropriated for the fiscal year beginning July 1,
5991 2019, and ending June 30, 2020. These are additions to amounts previously appropriated for
5992 fiscal year 2020.
5993 The Legislature authorizes the State Division of Finance to transfer the following
5994 amounts to the unrestricted General Fund, Education Fund, or Uniform School Fund, as
5995 indicated, from the restricted funds or accounts indicated. Expenditures and outlays from the
5996 General Fund, Education Fund, or Uniform School Fund must be authorized by an
5997 appropriation.
5998 ITEM 1
5999 To General Fund, One-time
6000 From Education Fund Restricted --
6001 Underage Drinking Prevention Program Restricted Account
$1,750,000
6002 Schedule of Programs:
6003 General Fund, One-time $1,750,000
6004 The Legislature intends that, after satisfying all prior appropriations from the Underage
6005 Drinking Prevention Program Restricted Account, the State Division of Finance transfer all
6006 remaining balances in the Underage Drinking Prevention Program Restricted Account to the
6007 General Fund at the close of fiscal year 2020 and close the account.
6008 Subsection 59 (b). Fiscal Year 2021 Appropriations -- Operating and Capital
6009 Budgets.
6010 The following sums of money are appropriated for the fiscal year beginning July 1,
6011 2020, and ending June 30, 2021. These are additions to amounts otherwise appropriated for
6012 fiscal year 2021. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
6013 Act, the Legislature appropriates the following sums of money from the funds or accounts
6014 indicated for the use and support of the government of the state of Utah.
6015 ITEM 2
6016 To State Board of Education -- Child Nutrition
6017 From Education Fund
$55,500,000
6018 From Dedicated Credits -- Liquor Tax
($55,500,000)
6019 ITEM 3
6020 To State Board of Education -- State Administrative Office
6021 From Education Fund
$2,850,000
6022 From Education Fund Restricted --
6023 Underage Drinking Prevention Program Restricted Account
($2,850,000)
6024 ITEM 4
6025 To University of Utah -- Education and General
6026 From General Fund
$101,608,900
6027 From Education Fund
($101,608,900)
6028 ITEM 5
6029 To University of Utah -- School of Medicine
6030 From General Fund
$35,899,500
6031 From Education Fund
($35,899,500)
6032 ITEM 6
6033 To University of Utah -- University Hospital
6034 From General Fund
$1,533,000
6035 From Education Fund
($1,533,000)
6036 ITEM 7
6037 To University of Utah -- School of Dentistry
6038 From General Fund
$2,324,700
6039 From Education Fund
($2,324,700)
6040 ITEM 8
6041 To Utah State University -- Education and General
6042 From General Fund
$73,521,400
6043 From Education Fund
($73,521,400)
6044 ITEM 9
6045 To Utah State University -- USU-Eastern Education and General
6046 From General Fund
$12,503,400
6047 From Education Fund
($12,503,400)
6048 ITEM 10
6049 To Weber State University -- Education and General
6050 From General Fund
$94,098,000
6051 From Education Fund
($94,098,000)
6052 ITEM 11
6053 To Southern Utah University -- Education and General
6054 From General Fund
$47,444,900
6055 From Education Fund
($47,444,900)
6056 ITEM 12
6057 To Utah Valley University -- Education and General
6058 From General Fund
$123,845,700
6059 From Education Fund
($123,845,700)
6060 ITEM 13
6061 To Snow College -- Education and General
6062 From General Fund
$25,910,100
6063 From Education Fund
($25,910,100)
6064 ITEM 14
6065 To Dixie State University -- Education and General
6066 From General Fund
$14,810,400
6067 From Education Fund
($14,810,400)
6068 ITEM 15
6069 To Utah Department of Transportation -- Joint Highway Committee
6070 From Transportation Fund
$5,000,000
6071 Schedule of Programs:
6072 Non-urban Road Improvements $5,000,000
6073 The Legislature intends that the Utah Department of Transportation allocate the
6074 appropriation under this item for improvement of class B roads in counties with populations of
6075 less than 12,000.
6076 Section 60. Effective date.
6077 (1) Except as provided in Subsections (2) through (5), if approved by two-thirds of all
6078 the members elected to each house, this bill takes effect on January 1, 2020.
6079 (2) If approved by two-thirds of all the members elected to each house, the actions
6080 affecting the following sections take effect for a taxable year beginning on or after January 1,
6081 2020:
6082 (a) Section 35A-9-214;
6083 (b) Section 59-7-104;
6084 (c) Section 59-7-201;
6085 (d) Section 59-7-610;
6086 (e) Section 59-7-614.1;
6087 (f) Section 59-7-618;
6088 (g) Section 59-7-620;
6089 (h) Section 59-10-104;
6090 (i) Section 59-10-529.1
6091 (j) Section 59-10-1005;
6092 (k) Section 59-10-1007;
6093 (l) Section 59-10-1017;
6094 (m) Section 59-10-1017.1;
6095 (n) Section 59-10-1018;
6096 (o) Section 59-10-1019;
6097 (p) Section 59-10-1022;
6098 (q) Section 59-10-1023;
6099 (r) Section 59-10-1028;
6100 (s) Section 59-10-1033;
6101 (t) Section 59-10-1035;
6102 (u) Section 59-10-1041;
6103 (v) Section 59-10-1102.1;
6104 (w) Section 59-10-1105;
6105 (x) Section 59-10-1113;
6106 (y) Section 59-10-1114;
6107 (z) Section 59-10-1403.3; and
6108 (aa) Section 59-13-202.
6109 (3) The actions affecting the following sections take effect on April 1, 2020:
6110 (a) Section 15A-1-204;
6111 (b) Section 26-36b-208;
6112 (c) Section 59-1-1503;
6113 (d) Section 59-12-102;
6114 (e) Section 59-12-103;
6115 (f) Section 59-12-104;
6116 (g) Section 59-12-104.5;
6117 (h) Section 59-12-1201;
6118 (i) Section 59-13-323;
6119 (j) Section 63M-4-702; and
6120 (k) Section 72-2-124.
6121 (4) If approved by two-thirds of all the members elected to each house, Subsection
6122 59(a) of this bill takes effect upon approval by the governor, or the day following the
6123 constitutional time limit of Utah Constitution, Article VII, Section 8, without the governor's
6124 signature, or in the case of veto, the date of veto override.
6125 (5) Subsection 59(b) of this bill takes effect on July 1, 2020.
6126 Section 61. Contingent retrospective operation.
6127 If this bill is approved by less than two-thirds of all the members elected to each house,
6128 the actions affecting the following sections have retrospective operation for a taxable year
6129 beginning on or after January 1, 2020:
6130 (1) Section 35A-9-214;
6131 (2) Section 59-7-104;
6132 (3) Section 59-7-201;
6133 (4) Section 59-7-610;
6134 (5) Section 59-7-614.1;
6135 (6) Section 59-7-618;
6136 (7) Section 59-7-620;
6137 (8) Section 59-10-104;
6138 (9) Section 59-10-529.1
6139 (10) Section 59-10-1005;
6140 (11) Section 59-10-1007;
6141 (12) Section 59-10-1017;
6142 (13) Section 59-10-1017.1;
6143 (14) Section 59-10-1018;
6144 (15) Section 59-10-1019;
6145 (16) Section 59-10-1022;
6146 (17) Section 59-10-1023;
6147 (18) Section 59-10-1028;
6148 (19) Section 59-10-1033;
6149 (20) Section 59-10-1035;
6150 (21) Section 59-10-1041;
6151 (22) Section 59-10-1102.1;
6152 (23) Section 59-10-1105;
6153 (24) Section 59-10-1113;
6154 (25) Section 59-10-1114;
6155 (26) Section 59-10-1403.3; and
6156 (27) Section 59-13-202.