Senator Kirk A. Cullimore proposes the following substitute bill:


1     
TAX RESTRUCTURING REVISIONS

2     
2019 SECOND SPECIAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Lyle W. Hillyard

5     
House Sponsor: Francis D. Gibson

6     

7     LONG TITLE
8     General Description:
9          This bill amends and enacts provisions related to state and local taxes and revenue.
10     Highlighted Provisions:
11          This bill:
12          ▸     decreases the corporate franchise and income tax rate and the individual income tax
13     rate;
14          ▸     amends the calculation of certain tax credits to match the applicable income tax
15     rate;
16          ▸     repeals certain transfers from the General Fund into the Education Fund;
17          ▸     modifies the calculation of the Utah personal exemption for purposes of the
18     taxpayer tax credit;
19          ▸     enacts a nonrefundable tax credit for social security benefits that are included in the
20     claimant's federal adjusted gross income;
21          ▸     provides that an individual who claims the tax credit for social security benefits may
22     not also claim the retirement tax credit on the same return;
23          ▸     enacts a refundable grocery tax credit;
24          ▸     enacts a refundable state earned income tax credit for certain individuals who are
25     experiencing intergenerational poverty;

26          ▸     provides for apportionment of the state earned income tax credit and the grocery tax
27     credit;
28          ▸     provides a taxpayer tax credit rebate;
29          ▸     creates an additional grocery tax credit;
30          ▸     increases the state sales and use tax rate on food and food ingredients;
31          ▸     imposes state and local sales and use tax on amounts paid or charged for certain
32     services;
33          ▸     modifies the sales and use tax dedications for the Transportation Investment Fund
34     of 2005;
35          ▸     directs a portion of growth in the amount of revenue collected from the sales and
36     use tax on the sale of food and food ingredients be deposited into the Transit
37     Transportation Investment Fund;
38          ▸     repeals certain sales and use tax exemptions;
39          ▸     provides a sales and use tax exemption for certain transactions paid for through a
40     machine that only accepts cash;
41          ▸     enacts a sales and use tax exemption for tangible personal property consumed in the
42     performance of certain taxable services;
43          ▸     establishes a repeal date for the sales and use tax exemption for construction
44     materials used in the construction of a new or expanding life science research and
45     development facility;
46          ▸     creates a sales and use tax exemption for menstrual products;
47          ▸     enacts a sales tax on motor fuel and special fuel other than diesel and an additional
48     excise tax on diesel fuel;
49          ▸     increases the state motor vehicle rental tax;
50          ▸     provides a repeal date for the program that allows certain clean fuel vehicles to
51     travel in a high occupancy vehicle lane regardless of the number of occupants;
52          ▸     directs the Utah Department of Transportation to implement one or more strategies
53     to manage congestion on state highways and to generate highway user fees;
54          ▸     modifies the requirements of a certificate of emissions inspection;
55          ▸     requires the Division of Motor Vehicles to share certain information from a
56     certificate of emissions inspection with the Utah Department of Transportation;

57          ▸     requires certain legislative committees to consider annually a report from the Utah
58     Department of Transportation regarding the road usage charge program;
59          ▸     requires the Utah Department of Transportation to notify certain legislative
60     committees when revenue from the road usage charge program equals or exceeds
61     specified amounts of revenue generated from the sales tax on motor fuel and special
62     fuel other than diesel;
63          ▸     addresses the requirements for using a high occupancy toll lane;
64          ▸     modifies the permissible uses for funds in the Tollway Special Revenue Fund;
65          ▸     provides funding from the Transportation Investment Fund of 2005 for
66     improvement of class B roads located in certain counties of the fourth, fifth, and
67     sixth class; and
68          ▸     makes technical and conforming changes.
69     Money Appropriated in this Bill:
70          This bill appropriates in fiscal year 2020:
71          ▸     To Department of Workforce Services -- Administration, as a one-time
72     appropriation:
73               •     From General Fund, $500,000.
74          ▸     To the General Fund, as a one-time appropriation:
75               •     From the Education Fund Restricted -- Underage Drinking Prevention Program
76     Restricted Account, One-time, $1,750,000.
77          This bill appropriates in fiscal year 2021:
78          ▸     To State Board of Education -- Child Nutrition, as an ongoing appropriation:
79               •     From Education Fund, $55,500,000.
80               •     From Dedicated Credits -- Liquor Tax, ($39,275,700).
81          ▸     To State Board of Education -- State Administrative Office, as an ongoing
82     appropriation:
83               •     From Education Fund, $2,850,000.
84               •     From Education Fund Restricted -- Underage Drinking Prevention Program
85     Restricted Account, ($1,751,000).
86          ▸     To University of Utah -- Education and General, as an ongoing appropriation:
87               •     From General Fund, $101,608,900.

88               •     From Education Fund, ($101,608,900).
89          ▸     To University of Utah -- School of Medicine, as an ongoing appropriation:
90               •     From General Fund, $35,899,500.
91               •     From Education Fund, ($35,899,500).
92          ▸     To University of Utah -- University Hospital, as an ongoing appropriation:
93               •     From General Fund, $1,533,000.
94               •     From Education Fund, ($1,533,000).
95          ▸     To University of Utah -- School of Dentistry, as an ongoing appropriation:
96               •     From General Fund, $2,324,700.
97               •     From Education Fund, ($2,324,700).
98          ▸     To Utah State University -- Education and General, as an ongoing appropriation:
99               •     From General Fund, $73,521,400.
100               •     From Education Fund, ($73,521,400).
101          ▸     To Utah State University -- USU-Eastern Education and General, as an ongoing
102     appropriation:
103               •     From General Fund, $12,503,400.
104               •     From Education Fund, ($12,503,400).
105          ▸     To Weber State University -- Education and General, as an ongoing appropriation:
106               •     From General Fund, $94,098,000.
107               •     From Education Fund, ($94,098,000).
108          ▸     To Southern Utah University -- Education and General, as an ongoing
109     appropriation:
110               •     From General Fund, $47,444,900.
111               •     From Education Fund, ($47,444,900).
112          ▸     To Utah Valley University -- Education and General, as an ongoing appropriation:
113               •     From General Fund, $22,092,900.
114               •     From Education Fund, ($22,092,900).
115     Other Special Clauses:
116          This bill provides a special effective date.
117          This bill provides contingent retrospective operation.
118     Utah Code Sections Affected:

119     AMENDS:
120          15A-1-204, as last amended by Laws of Utah 2017, Chapter 18
121          26-36b-208, as last amended by Laws of Utah 2019, Chapters 1 and 393
122          32B-2-301, as last amended by Laws of Utah 2018, Chapter 329
123          32B-2-304, as last amended by Laws of Utah 2019, Chapter 403
124          32B-2-305, as last amended by Laws of Utah 2013, Chapter 400
125          35A-8-308, as last amended by Laws of Utah 2017, Chapters 181 and 421
126          35A-8-309, as last amended by Laws of Utah 2019, Chapter 493
127          41-6a-409, as last amended by Laws of Utah 2017, Chapter 142
128          41-6a-505, as last amended by Laws of Utah 2019, Chapter 136
129          41-6a-1406, as last amended by Laws of Utah 2019, Chapter 373
130          41-6a-1642, as last amended by Laws of Utah 2019, Chapter 140
131          41-12a-806, as last amended by Laws of Utah 2019, Chapter 55
132          53B-8a-106, as last amended by Laws of Utah 2015, Chapter 94
133          53G-10-406, as last amended by Laws of Utah 2019, Chapter 293
134          59-1-1503, as last amended by Laws of Utah 2012, Chapter 399
135          59-7-104, as last amended by Laws of Utah 2019, Chapter 418
136          59-7-201, as last amended by Laws of Utah 2018, Chapter 456
137          59-7-610, as last amended by Laws of Utah 2019, Chapter 247
138          59-7-614.1, as last amended by Laws of Utah 2016, Chapter 375
139          59-7-618, as last amended by Laws of Utah 2017, Chapter 265
140          59-7-620, as last amended by Laws of Utah 2017, Chapter 222
141          59-10-104, as last amended by Laws of Utah 2018, Chapter 456
142          59-10-529.1, as enacted by Laws of Utah 2015, Chapter 369
143          59-10-1005, as last amended by Laws of Utah 2017, Chapter 148
144          59-10-1007, as last amended by Laws of Utah 2019, Chapter 247
145          59-10-1017, as last amended by Laws of Utah 2017, Chapter 389
146          59-10-1017.1, as enacted by Laws of Utah 2017, Chapter 389
147          59-10-1018, as last amended by Laws of Utah 2018, Second Special Session, Chapter 3
148          59-10-1019, as renumbered and amended by Laws of Utah 2008, Chapter 389
149          59-10-1022, as enacted by Laws of Utah 2008, Chapter 389

150          59-10-1023, as enacted by Laws of Utah 2008, Chapter 389
151          59-10-1028, as last amended by Laws of Utah 2012, Chapter 399
152          59-10-1033, as last amended by Laws of Utah 2017, Chapter 265
153          59-10-1035, as last amended by Laws of Utah 2017, Chapter 222
154          59-10-1036, as enacted by Laws of Utah 2016, Chapter 55
155          59-10-1105, as last amended by Laws of Utah 2016, Chapter 375
156          59-10-1403.3, as enacted by Laws of Utah 2017, Chapter 270
157          59-12-102, as last amended by Laws of Utah 2019, Chapters 325, 481, and 486
158          59-12-103, as last amended by Laws of Utah 2019, Chapters 1, 136, and 479
159          59-12-104, as last amended by Laws of Utah 2019, Chapters 136 and 486
160          59-12-104.5, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
161          59-12-1201, as last amended by Laws of Utah 2016, Chapters 184 and 291
162          59-13-202, as last amended by Laws of Utah 2016, Third Special Session, Chapter 1
163          63I-2-253, as last amended by Laws of Utah 2019, Chapters 41, 129, 136, 223, 324,
164     325, and 444
165          63I-2-259, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
166          63I-2-272, as last amended by Laws of Utah 2019, Chapters 136 and 246
167          63M-4-702, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
168          72-1-201, as last amended by Laws of Utah 2019, Chapter 431
169          72-1-213.1, as enacted by Laws of Utah 2019, Chapter 479
170          72-2-120, as last amended by Laws of Utah 2018, Chapter 269
171          72-2-124, as last amended by Laws of Utah 2019, Chapters 327 and 479
172          72-6-118, as last amended by Laws of Utah 2018, Chapter 269
173          72-9-603, as last amended by Laws of Utah 2019, Chapter 373
174     ENACTS:
175          35A-9-214, Utah Code Annotated 1953
176          59-10-1018.1, Utah Code Annotated 1953
177          59-10-1041, Utah Code Annotated 1953
178          59-10-1113, Utah Code Annotated 1953
179          59-10-1113.1, Utah Code Annotated 1953
180          59-10-1114, Utah Code Annotated 1953

181          59-13-323, Utah Code Annotated 1953
182          59-13-601, Utah Code Annotated 1953
183          63I-2-241, Utah Code Annotated 1953
184          72-1-213.2, Utah Code Annotated 1953
185     

186     Be it enacted by the Legislature of the state of Utah:
187          Section 1. Section 15A-1-204 is amended to read:
188          15A-1-204. Adoption of State Construction Code -- Amendments by commission
189     -- Approved codes -- Exemptions.
190          (1) (a) The State Construction Code is the construction codes adopted with any
191     modifications in accordance with this section that the state and each political subdivision of the
192     state shall follow.
193          (b) A person shall comply with the applicable provisions of the State Construction
194     Code when:
195          (i) new construction is involved; and
196          (ii) the owner of an existing building, or the owner's agent, is voluntarily engaged in:
197          (A) the repair, renovation, remodeling, alteration, enlargement, rehabilitation,
198     conservation, or reconstruction of the building; or
199          (B) changing the character or use of the building in a manner that increases the
200     occupancy loads, other demands, or safety risks of the building.
201          (c) On and after July 1, 2010, the State Construction Code is the State Construction
202     Code in effect on July 1, 2010, until in accordance with this section:
203          (i) a new State Construction Code is adopted; or
204          (ii) one or more provisions of the State Construction Code are amended or repealed in
205     accordance with this section.
206          (d) A provision of the State Construction Code may be applicable:
207          (i) to the entire state; or
208          (ii) within a county, city, or town.
209          (2) (a) The Legislature shall adopt a State Construction Code by enacting legislation
210     that adopts a nationally recognized construction code with any modifications.
211          (b) Legislation described in Subsection (2)(a) shall state that the legislation takes effect

212     on the July 1 after the day on which the legislation is enacted, unless otherwise stated in the
213     legislation.
214          (c) Subject to Subsection (6), a State Construction Code adopted by the Legislature is
215     the State Construction Code until, in accordance with this section, the Legislature adopts a new
216     State Construction Code by:
217          (i) adopting a new State Construction Code in its entirety; or
218          (ii) amending or repealing one or more provisions of the State Construction Code.
219          (3) (a) Except as provided in Subsection (3)(b), for each update of a nationally
220     recognized construction code, the commission shall prepare a report described in Subsection
221     (4).
222          (b) For the provisions of a nationally recognized construction code that apply only to
223     detached one- and two-family dwellings and townhouses not more than three stories above
224     grade plane in height with separate means of egress and their accessory structures, the
225     commission shall:
226          (i) prepare a report described in Subsection (4) in 2021 and, thereafter, for every
227     second update of the nationally recognized construction code; and
228          (ii) not prepare a report described in Subsection (4) in 2018.
229          (4) (a) In accordance with Subsection (3), on or before September 1 of the same year as
230     the year designated in the title of a nationally recognized construction code, the commission
231     shall prepare and submit, in accordance with Section 68-3-14, a written report to the Business
232     and Labor Interim Committee that:
233          (i) states whether the commission recommends the Legislature adopt the update with
234     any modifications; and
235          (ii) describes the costs and benefits of each recommended change in the update or in
236     any modification.
237          (b) After the Business and Labor Interim Committee receives the report described in
238     Subsection (4)(a), the Business and Labor Interim Committee shall:
239          (i) study the recommendations; and
240          (ii) if the Business and Labor Interim Committee decides to recommend legislative
241     action to the Legislature, prepare legislation for consideration by the Legislature in the next
242     general session.

243          (5) (a) (i) The commission shall, by no later than September 1 of each year in which
244     the commission is not required to submit a report described in Subsection (4), submit, in
245     accordance with Section 68-3-14, a written report to the Business and Labor Interim
246     Committee recommending whether the Legislature should amend or repeal one or more
247     provisions of the State Construction Code.
248          (ii) As part of a recommendation described in Subsection (5)(a)(i), the commission
249     shall describe the costs and benefits of each proposed amendment or repeal.
250          (b) The commission may recommend legislative action related to the State
251     Construction Code:
252          (i) on its own initiative;
253          (ii) upon the recommendation of the division; or
254          (iii) upon the receipt of a request by one of the following that the commission
255     recommend legislative action related to the State Construction Code:
256          (A) a local regulator;
257          (B) a state regulator;
258          (C) a state agency involved with the construction and design of a building;
259          (D) the Construction Services Commission;
260          (E) the Electrician Licensing Board;
261          (F) the Plumbers Licensing Board; or
262          (G) a recognized construction-related association.
263          (c) If the Business and Labor Interim Committee decides to recommend legislative
264     action to the Legislature, the Business and Labor Interim Committee shall prepare legislation
265     for consideration by the Legislature in the next general session.
266          (6) (a) Notwithstanding the provisions of this section, the commission may, in
267     accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, amend the State
268     Construction Code if the commission determines that waiting for legislative action in the next
269     general legislative session would:
270          (i) cause an imminent peril to the public health, safety, or welfare; or
271          (ii) place a person in violation of federal or other state law.
272          (b) If the commission amends the State Construction Code in accordance with this
273     Subsection (6), the commission shall file with the division:

274          (i) the text of the amendment to the State Construction Code; and
275          (ii) an analysis that includes the specific reasons and justifications for the commission's
276     findings.
277          (c) If the State Construction Code is amended under this Subsection (6), the division
278     shall:
279          (i) publish the amendment to the State Construction Code in accordance with Section
280     15A-1-205; and
281          (ii) prepare and submit, in accordance with Section 68-3-14, a written notice to the
282     Business and Labor Interim Committee containing the amendment to the State Construction
283     Code, including a copy of the commission's analysis described in Subsection (6)(b)(ii).
284          (d) If not formally adopted by the Legislature at the next annual general session, an
285     amendment to the State Construction Code under this Subsection (6) is repealed on the July 1
286     immediately following the next annual general session that follows the adoption of the
287     amendment.
288          (7) (a) The division, in consultation with the commission, may approve, without
289     adopting, one or more approved codes, including a specific edition of a construction code, for
290     use by a compliance agency.
291          (b) If the code adopted by a compliance agency is an approved code described in
292     Subsection (7)(a), the compliance agency may:
293          (i) adopt an ordinance requiring removal, demolition, or repair of a building;
294          (ii) adopt, by ordinance or rule, a dangerous building code; or
295          (iii) adopt, by ordinance or rule, a building rehabilitation code.
296          (8) Except as provided in Subsections (6), (7), (9), and (10), or as expressly provided in
297     state law, a state executive branch entity or political subdivision of the state may not, after
298     December 1, 2016, adopt or enforce a rule, ordinance, or requirement that applies to a subject
299     specifically addressed by, and that is more restrictive than, the State Construction Code.
300          (9) A state executive branch entity or political subdivision of the state may:
301          (a) enforce a federal law or regulation;
302          (b) adopt or enforce a rule, ordinance, or requirement if the rule, ordinance, or
303     requirement applies only to a facility or construction owned or used by a state entity or a
304     political subdivision of the state; or

305          (c) enforce a rule, ordinance, or requirement:
306          (i) that the state executive branch entity or political subdivision adopted or made
307     effective before July 1, 2015; and
308          (ii) for which the state executive branch entity or political subdivision can demonstrate,
309     with substantial evidence, that the rule, ordinance, or requirement is necessary to protect an
310     individual from a condition likely to cause imminent injury or death.
311          (10) The Department of Health or the Department of Environmental Quality may
312     enforce a rule or requirement adopted before January 1, 2015.
313          (11) (a) Except as provided in Subsection (11)(b), a structure used solely in
314     conjunction with agriculture use, and not for human occupancy, or a structure that is no more
315     than 1,500 square feet and used solely for the type of sales described in Subsection
316     59-12-104[(20)](17), is exempt from the permit requirements of the State Construction Code.
317          (b) (i) Unless exempted by a provision other than Subsection (11)(a), a plumbing,
318     electrical, and mechanical permit may be required when that work is included in a structure
319     described in Subsection (11)(a).
320          (ii) Unless located in whole or in part in an agricultural protection area created under
321     Title 17, Chapter 41, Agriculture, Industrial, or Critical Infrastructure Materials Protection
322     Areas, a structure described in Subsection (11)(a) is not exempt from a permit requirement if
323     the structure is located on land that is:
324          (A) within the boundaries of a city or town, and less than five contiguous acres; or
325          (B) within a subdivision for which the county has approved a subdivision plat under
326     Title 17, Chapter 27a, Part 6, Subdivisions, and less than two contiguous acres.
327          Section 2. Section 26-36b-208 is amended to read:
328          26-36b-208. Medicaid Expansion Fund.
329          (1) There is created an expendable special revenue fund known as the Medicaid
330     Expansion Fund.
331          (2) The fund consists of:
332          (a) assessments collected under this chapter;
333          (b) intergovernmental transfers under Section 26-36b-206;
334          (c) savings attributable to the health coverage improvement program as determined by
335     the department;

336          (d) savings attributable to the enhancement waiver program as determined by the
337     department;
338          (e) savings attributable to the Medicaid waiver expansion as determined by the
339     department;
340          (f) savings attributable to the inclusion of psychotropic drugs on the preferred drug list
341     under Subsection 26-18-2.4(3) as determined by the department;
342          (g) [revenues] revenue collected from the sales tax described in Subsection
343     59-12-103[(13)](12);
344          (h) gifts, grants, donations, or any other conveyance of money that may be made to the
345     fund from private sources;
346          (i) interest earned on money in the fund; and
347          (j) additional amounts as appropriated by the Legislature.
348          (3) (a) The fund shall earn interest.
349          (b) All interest earned on fund money shall be deposited into the fund.
350          (4) (a) A state agency administering the provisions of this chapter may use money from
351     the fund to pay the costs, not otherwise paid for with federal funds or other revenue sources, of:
352          (i) the health coverage improvement program;
353          (ii) the enhancement waiver program;
354          (iii) a Medicaid waiver expansion; and
355          (iv) the outpatient upper payment limit supplemental payments under Section
356     26-36b-210.
357          (b) A state agency administering the provisions of this chapter may not use:
358          (i) funds described in Subsection (2)(b) to pay the cost of private outpatient upper
359     payment limit supplemental payments; or
360          (ii) money in the fund for any purpose not described in Subsection (4)(a).
361          Section 3. Section 32B-2-301 is amended to read:
362          32B-2-301. State property -- Liquor Control Fund -- Money to be retained by
363     department -- Department building process.
364          (1) The following are property of the state:
365          (a) the money received in the administration of this title, except as otherwise provided;
366     and

367          (b) property acquired, administered, possessed, or received by the department.
368          (2) (a) There is created an enterprise fund known as the "Liquor Control Fund."
369          (b) [Except as provided in Section 32B-2-304, the] The department shall deposit the
370     following into the Liquor Control Fund:
371          (i) money received in the administration of this title; and
372          (ii) money received from the markup described in Section 32B-2-304.
373          (c) The department may draw from the Liquor Control Fund only to the extent
374     appropriated by the Legislature or provided by statute.
375          (d) The net position of the Liquor Control Fund may not fall below zero.
376          (3) (a) Notwithstanding Subsection (2)(c), the department may draw by warrant from
377     the Liquor Control Fund without an appropriation for an expenditure that is directly incurred by
378     the department:
379          (i) to purchase an alcoholic product;
380          (ii) to transport an alcoholic product from the supplier to a warehouse of the
381     department; or
382          (iii) for variances related to an alcoholic product, including breakage or theft.
383          (b) If the balance of the Liquor Control Fund is not adequate to cover a warrant that the
384     department draws against the Liquor Control Fund, to the extent necessary to cover the
385     warrant, the cash resources of the General Fund may be used.
386          (4) (a) As used in this Subsection (4), "base budget" means the same as that term is
387     defined in legislative rule.
388          (b) The department's base budget shall include as an appropriation from the Liquor
389     Control Fund:
390          (i) credit card related fees paid by the department;
391          (ii) package agency compensation; and
392          (iii) the department's costs of shipping and warehousing alcoholic products.
393          (5) (a) The Division of Finance shall transfer annually from the Liquor Control Fund to
394     the General Fund a sum equal to the amount of net profit earned from the sale of liquor since
395     the preceding transfer of money under this Subsection (5).
396          (b) After each fiscal year, the Division of Finance shall calculate the amount for the
397     transfer on or before September 1 and the Division of Finance shall make the transfer on or

398     before September 30.
399          (c) The Division of Finance may make year-end closing entries in the Liquor Control
400     Fund to comply with Subsection 51-5-6(2).
401          (6) (a) By the end of each day, the department shall:
402          (i) make a deposit to a qualified depository, as defined in Section 51-7-3; and
403          (ii) report the deposit to the state treasurer.
404          (b) A commissioner or department employee is not personally liable for a loss caused
405     by the default or failure of a qualified depository.
406          (c) Money deposited in a qualified depository is entitled to the same priority of
407     payment as other public funds of the state.
408          (7) Before the Division of Finance makes the transfer described in Subsection (5), the
409     department may retain each fiscal year from the Liquor Control Fund $1,000,000 that the
410     department may use for:
411          (a) capital equipment purchases;
412          (b) salary increases for department employees;
413          (c) performance awards for department employees; or
414          (d) information technology enhancements because of changes or trends in technology.
415          Section 4. Section 32B-2-304 is amended to read:
416          32B-2-304. Liquor price -- School lunch program -- Remittance of markup.
417          (1) For purposes of this section:
418          (a) (i) "Landed case cost" means:
419          (A) the cost of the product; and
420          (B) inbound shipping costs incurred by the department.
421          (ii) "Landed case cost" does not include the outbound shipping cost from a warehouse
422     of the department to a state store.
423          (b) "Proof gallon" means the same as that term is defined in 26 U.S.C. Sec. 5002.
424          (c) Notwithstanding Section 32B-1-102, "small brewer" means a brewer who
425     manufactures in a calendar year less than 40,000 barrels of beer, heavy beer, and flavored malt
426     beverage.
427          (2) Except as provided in Subsection (3):
428          (a) spirituous liquor sold by the department within the state shall be marked up in an

429     amount not less than 88% above the landed case cost to the department;
430          (b) wine sold by the department within the state shall be marked up in an amount not
431     less than 88% above the landed case cost to the department;
432          (c) heavy beer sold by the department within the state shall be marked up in an amount
433     not less than 66.5% above the landed case cost to the department; and
434          (d) a flavored malt beverage sold by the department within the state shall be marked up
435     in an amount not less than 88% above the landed case cost to the department.
436          (3) (a) Liquor sold by the department to a military installation in Utah shall be marked
437     up in an amount not less than 17% above the landed case cost to the department.
438          (b) Except for spirituous liquor sold by the department to a military installation in
439     Utah, spirituous liquor that is sold by the department within the state shall be marked up 49%
440     above the landed case cost to the department if:
441          (i) the spirituous liquor is manufactured by a manufacturer producing less than 30,000
442     proof gallons of spirituous liquor in a calendar year; and
443          (ii) the manufacturer applies to the department for a reduced markup.
444          (c) Except for wine sold by the department to a military installation in Utah, wine that
445     is sold by the department within the state shall be marked up 49% above the landed case cost to
446     the department if:
447          (i) (A) except as provided in Subsection (3)(c)(i)(B), the wine is manufactured by a
448     manufacturer producing less than 20,000 gallons of wine in a calendar year; or
449          (B) for hard cider, the hard cider is manufactured by a manufacturer producing less
450     than 620,000 gallons of hard cider in a calendar year; and
451          (ii) the manufacturer applies to the department for a reduced markup.
452          (d) Except for heavy beer sold by the department to a military installation in Utah,
453     heavy beer that is sold by the department within the state shall be marked up 32% above the
454     landed case cost to the department if:
455          (i) a small brewer manufactures the heavy beer; and
456          (ii) the small brewer applies to the department for a reduced markup.
457          (e) The department shall verify an amount described in Subsection (3)(b), (c), or (d)
458     pursuant to a federal or other verifiable production report.
459          (f) For purposes of determining whether an alcoholic product qualifies for a markup

460     under this Subsection (3), the department shall evaluate whether the manufacturer satisfies the
461     applicable production requirement without considering the manufacturer's production of any
462     other type of alcoholic product.
463          [(4) The department shall deposit 10% of the total gross revenue from sales of liquor
464     with the state treasurer to be credited to the Uniform School Fund and used to support the
465     school lunch program administered by the State Board of Education under Section 53E-3-510.]
466          [(5)] (4) This section does not prohibit the department from selling discontinued items
467     at a discount.
468          Section 5. Section 32B-2-305 is amended to read:
469          32B-2-305. Alcoholic Beverage Control Act Enforcement Fund.
470          (1) As used in this section:
471          (a) "Alcohol-related law enforcement officer" is as defined in Section 32B-1-201.
472          (b) "Enforcement ratio" is as defined in Section 32B-1-201.
473          (c) "Fund" means the Alcoholic Beverage Control Act Enforcement Fund created in
474     this section.
475          (2) There is created an expendable special revenue fund known as the "Alcoholic
476     Beverage Control Act Enforcement Fund."
477          (3) (a) The fund consists of:
478          (i) deposits made under Subsection (4); and
479          (ii) interest earned on the fund.
480          (b) The fund shall earn interest. Interest on the fund shall be deposited into the fund.
481          (4) [After the deposit made under Section 32B-2-304 for the school lunch program,
482     the] The department shall deposit 1% of the total gross revenue from the sale of liquor with the
483     state treasurer to be credited to the fund to be used by the Department of Public Safety as
484     provided in Subsection (5).
485          (5) (a) The Department of Public Safety shall expend money from the fund to
486     supplement appropriations by the Legislature so that the Department of Public Safety maintains
487     a sufficient number of alcohol-related law enforcement officers such that beginning on July 1,
488     2012, each year the enforcement ratio as of July 1 is equal to or less than the number specified
489     in Section 32B-1-201.
490          (b) Beginning July 1, 2012, four alcohol-related law enforcement officers shall have as

491     a primary focus the enforcement of this title in relationship to restaurants.
492          Section 6. Section 35A-8-308 is amended to read:
493          35A-8-308. Throughput Infrastructure Fund.
494          (1) There is created an enterprise fund known as the Throughput Infrastructure Fund.
495          (2) The fund consists of money generated from the following revenue sources:
496          (a) all amounts transferred to the fund [under Subsection 59-12-103(12)] by statute;
497          (b) any voluntary contributions received;
498          (c) appropriations made to the fund by the Legislature; and
499          (d) all amounts received from the repayment of loans made by the impact board under
500     Section 35A-8-309.
501          (3) The state treasurer shall:
502          (a) invest the money in the fund by following the procedures and requirements of Title
503     51, Chapter 7, State Money Management Act; and
504          (b) deposit all interest or other earnings derived from those investments into the fund.
505          Section 7. Section 35A-8-309 is amended to read:
506          35A-8-309. Throughput Infrastructure Fund administered by impact board --
507     Uses -- Review by board -- Annual report -- First project.
508          (1) The impact board shall:
509          (a) make grants and loans from the Throughput Infrastructure Fund created in Section
510     35A-8-308 for a throughput infrastructure project;
511          (b) use money transferred to the Throughput Infrastructure Fund [in accordance with
512     Subsection 59-12-103(12)] by statute to provide a loan or grant to finance the cost of
513     acquisition or construction of a throughput infrastructure project to one or more local political
514     subdivisions, including a Utah interlocal agency created under Title 11, Chapter 13, Interlocal
515     Cooperation Act;
516          (c) administer the Throughput Infrastructure Fund in a manner that will keep a portion
517     of the fund revolving;
518          (d) determine provisions for repayment of loans;
519          (e) establish criteria for awarding loans and grants; and
520          (f) establish criteria for determining eligibility for assistance under this section.
521          (2) The cost of acquisition or construction of a throughput infrastructure project

522     includes amounts for working capital, reserves, transaction costs, and other amounts
523     determined by the impact board to be allocable to a throughput infrastructure project.
524          (3) The impact board may restructure or forgive all or part of a local political
525     subdivision's or interlocal agency's obligation to repay loans for extenuating circumstances.
526          (4) To receive assistance under this section, a local political subdivision or an
527     interlocal agency shall submit a formal application containing the information that the impact
528     board requires.
529          (5) (a) The impact board shall:
530          (i) review the proposed uses of the Throughput Infrastructure Fund for a loan or grant
531     before approving the loan or grant and may condition its approval on whatever assurances the
532     impact board considers necessary to ensure that proceeds of the loan or grant will be used in
533     accordance with this section;
534          (ii) ensure that each loan specifies terms for interest deferments, accruals, and
535     scheduled principal repayment; and
536          (iii) ensure that repayment terms are evidenced by bonds, notes, or other obligations of
537     the appropriate local political subdivision or interlocal agency issued to the impact board and
538     payable from the net revenues of a throughput infrastructure project.
539          (b) An instrument described in Subsection (5)(a)(iii) may be:
540          (i) non-recourse to the local political subdivision or interlocal agency; and
541          (ii) limited to a pledge of the net revenues from a throughput infrastructure project.
542          (6) (a) Subject to the restriction in Subsection (6)(b), the impact board shall allocate
543     from the Throughput Infrastructure Fund to the board those amounts that are appropriated by
544     the Legislature for the administration of the Throughput Infrastructure Fund.
545          (b) The amount described in Subsection (6)(a) may not exceed 2% of the annual
546     receipts to the fund.
547          (7) The board shall include in the annual written report described in Section
548     35A-1-109:
549          (a) the number and type of loans and grants made under this section; and
550          (b) a list of local political subdivisions or interlocal agencies that received assistance
551     under this section.
552          (8) (a) The first throughput infrastructure project considered by the impact board shall

553     be a bulk commodities ocean terminal project.
554          (b) Upon receipt of an application from an interlocal agency created for the sole
555     purpose of undertaking a throughput infrastructure project that is a bulk commodities ocean
556     terminal project, the impact board shall:
557          (i) grant up to 2% of the money in the Throughput Infrastructure Fund to the interlocal
558     agency to pay or reimburse costs incurred by the interlocal agency preliminary to its acquisition
559     of the throughput infrastructure project; and
560          (ii) fund the interlocal agency's application if the application meets all criteria
561     established by the impact board.
562          Section 8. Section 35A-9-214 is enacted to read:
563          35A-9-214. Intergenerational poverty report to State Tax Commission.
564          (1) As used in this section, "commission"means the State Tax Commission.
565          (2) On or before January 31 of each year, the department shall provide a notice to each
566     individual the department identifies as experiencing intergenerational poverty that:
567          (a) informs the individual of the tax credit available under Section 59-10-1114; and
568          (b) explains the eligibility requirements and process for claiming a tax credit under
569     Section 59-10-1114.
570          (3) For purposes of Subsection (2), an individual is experiencing intergenerational
571     poverty if:
572          (a) the individual received public assistance during the previous calendar year;
573          (b) the individual received public assistance for 12 months or more since the individual
574     reached 18 years of age; and
575          (c) the individual or the individual's family received public assistance for 12 months or
576     more before the individual reached 18 years of age.
577          (4) (a) On or before March 1 of each year, the department shall, in accordance with
578     applicable federal law, provide the commission an electronic report that states, for each
579     individual to whom the department provided notice in accordance with this section during the
580     preceding year:
581          (i) the individual's name; and
582          (ii) the individual's social security number.
583          (b) The department and the commission shall ensure that the information contained in

584     each electronic report is secure and confidential.
585          Section 9. Section 41-6a-409 is amended to read:
586          41-6a-409. Prohibition of flat response fee for motor vehicle accident.
587          (1) As used in this section, "government entity" means the Department of
588     Transportation, the Utah Highway Patrol Division, or a local government entity or agency.
589          (2) A government entity:
590          (a) may not impose a flat fee, or collect a flat fee, from an individual involved in a
591     motor vehicle accident; and
592          (b) may only charge the individual for the actual cost or a reasonable estimate of the
593     cost of services provided in responding to the motor vehicle accident, limited to:
594          (i) medical costs for transporting an individual from the scene of a motor vehicle
595     accident or treating a person injured in a motor vehicle accident;
596          (ii) the cost for repair to damaged public property, if the individual is legally liable for
597     the damage;
598          (iii) the cost of materials used in cleaning up the motor vehicle accident, if the
599     individual is legally liable for the motor vehicle accident; [and]
600          (iv) towing costs[.]; and
601          (v) applicable sales and use taxes.
602          (3) If a government entity imposes a charge on more than one individual for the actual
603     cost or a reasonable estimate of the cost of responding to a motor vehicle accident, the
604     government entity shall apportion the charges so that the government entity does not receive
605     more for responding to the motor vehicle accident than the actual response cost or a reasonable
606     estimate of the cost.
607          (4) Nothing in this section prohibits a government entity from contracting with an
608     independent contractor to recover costs related to damage to public property.
609          (5) If a government entity enters into a contract with an independent contractor to
610     recover costs related to damage to public property, the government entity may only pay the
611     independent contractor out of any recovery received from the person who caused the damage or
612     the responsible party.
613          Section 10. Section 41-6a-505 is amended to read:
614          41-6a-505. Sentencing requirements for driving under the influence of alcohol,

615     drugs, or a combination of both violations.
616          (1) As part of any sentence for a first conviction of Section 41-6a-502:
617          (a) the court shall:
618          (i) (A) impose a jail sentence of not less than 48 consecutive hours; or
619          (B) require the individual to work in a compensatory-service work program for not less
620     than 48 hours;
621          (ii) order the individual to participate in a screening;
622          (iii) order the individual to participate in an assessment, if it is found appropriate by a
623     screening under Subsection (1)(a)(ii);
624          (iv) order the individual to participate in an educational series if the court does not
625     order substance abuse treatment as described under Subsection (1)(b);
626          (v) impose a fine of not less than $700;
627          (vi) order probation for the individual in accordance with Section 41-6a-507, if there is
628     admissible evidence that the individual had a blood alcohol level of .16 or higher;
629          (vii) (A) order the individual to pay the administrative impound fee described in
630     Section 41-6a-1406; or
631          (B) if the administrative impound fee was paid by a party described in Subsection
632     41-6a-1406(5)(a), other than the individual sentenced, order the individual sentenced to
633     reimburse the party; or
634          (viii) (A) order the individual to pay the towing and storage fees described in Section
635     72-9-603 and the applicable sales and use tax; or
636          (B) if the [towing and storage fees] amounts described in Subsection (1)(a)(viii)(A)
637     were paid by a party described in Subsection 41-6a-1406(5)(a), other than the individual
638     sentenced, order the individual sentenced to reimburse the party; and
639          (b) the court may:
640          (i) order the individual to obtain substance abuse treatment if the substance abuse
641     treatment program determines that substance abuse treatment is appropriate;
642          (ii) order probation for the individual in accordance with Section 41-6a-507;
643          (iii) order the individual to participate in a 24-7 sobriety program as defined in Section
644     41-6a-515.5 if the individual is 21 years of age or older; or
645          (iv) order a combination of Subsections (1)(b)(i) through (iii).

646          (2) If an individual has a prior conviction as defined in Subsection 41-6a-501(2) that is
647     within 10 years of the current conviction under Section 41-6a-502 or the commission of the
648     offense upon which the current conviction is based:
649          (a) the court shall:
650          (i) (A) impose a jail sentence of not less than 240 hours; or
651          (B) impose a jail sentence of not less than 120 hours in addition to home confinement
652     of not fewer than 720 consecutive hours through the use of electronic monitoring that includes
653     a substance abuse testing instrument in accordance with Section 41-6a-506;
654          (ii) order the individual to participate in a screening;
655          (iii) order the individual to participate in an assessment, if it is found appropriate by a
656     screening under Subsection (2)(a)(ii);
657          (iv) order the individual to participate in an educational series if the court does not
658     order substance abuse treatment as described under Subsection (2)(b);
659          (v) impose a fine of not less than $800;
660          (vi) order probation for the individual in accordance with Section 41-6a-507;
661          (vii) (A) order the individual to pay the administrative impound fee described in
662     Section 41-6a-1406; or
663          (B) if the administrative impound fee was paid by a party described in Subsection
664     41-6a-1406(5)(a), other than the individual sentenced, order the individual sentenced to
665     reimburse the party; or
666          (viii) (A) order the individual to pay the towing and storage fees described in Section
667     72-9-603; or
668          (B) if the [towing and storage fees] amounts described in Subsection (2)(a)(viii)(A)
669     were paid by a party described in Subsection 41-6a-1406(5)(a), other than the individual
670     sentenced, order the individual sentenced to reimburse the party; and
671          (b) the court may:
672          (i) order the individual to obtain substance abuse treatment if the substance abuse
673     treatment program determines that substance abuse treatment is appropriate;
674          (ii) order the individual to participate in a 24-7 sobriety program as defined in Section
675     41-6a-515.5 if the individual is 21 years of age or older; or
676          (iii) order a combination of Subsections (2)(b)(i) and (ii).

677          (3) Under Subsection 41-6a-503(2), if the court suspends the execution of a prison
678     sentence and places the defendant on probation, the court shall impose:
679          (a) a fine of not less than $1,500;
680          (b) a jail sentence of not less than 1,500 hours; and
681          (c) supervised probation.
682          (4) For Subsection (3) or Subsection 41-6a-503(2)(b), the court:
683          (a) shall impose an order requiring the individual to obtain a screening and assessment
684     for alcohol and substance abuse, and treatment as appropriate; and
685          (b) may impose an order requiring the individual to participate in a 24-7 sobriety
686     program as defined in Section 41-6a-515.5 if the individual is 21 years of age or older.
687          (5) The requirements of Subsections (1)(a), (2)(a), (3), and (4) may not be suspended.
688          (6) If an individual is convicted of a violation of Section 41-6a-502 and there is
689     admissible evidence that the individual had a blood alcohol level of .16 or higher, the court
690     shall order the following, or describe on record why the order or orders are not appropriate:
691          (a) treatment as described under Subsection (1)(b), (2)(b), or (4); and
692          (b) one or more of the following:
693          (i) the installation of an ignition interlock system as a condition of probation for the
694     individual in accordance with Section 41-6a-518;
695          (ii) the imposition of an ankle attached continuous transdermal alcohol monitoring
696     device as a condition of probation for the individual; or
697          (iii) the imposition of home confinement through the use of electronic monitoring in
698     accordance with Section 41-6a-506.
699          Section 11. Section 41-6a-1406 is amended to read:
700          41-6a-1406. Removal and impoundment of vehicles -- Reporting and notification
701     requirements -- Administrative impound fee -- Refunds -- Possessory lien -- Rulemaking.
702          (1) If a vehicle, vessel, or outboard motor is removed or impounded as provided under
703     Section 41-1a-1101, 41-6a-527, 41-6a-1405, 41-6a-1408, or 73-18-20.1 by an order of a peace
704     officer or by an order of a person acting on behalf of a law enforcement agency or highway
705     authority, the removal or impoundment of the vehicle, vessel, or outboard motor shall be at the
706     expense of the owner.
707          (2) The vehicle, vessel, or outboard motor under Subsection (1) shall be removed or

708     impounded to a state impound yard.
709          (3) The peace officer may move a vehicle, vessel, or outboard motor or cause it to be
710     removed by a tow truck motor carrier that meets standards established:
711          (a) under Title 72, Chapter 9, Motor Carrier Safety Act; and
712          (b) by the department under Subsection (10).
713          (4) (a) Immediately after the removal of the vehicle, vessel, or outboard motor, a report
714     of the removal shall be sent to the Motor Vehicle Division by:
715          (i) the peace officer or agency by whom the peace officer is employed; and
716          (ii) the tow truck operator or the tow truck motor carrier by whom the tow truck
717     operator is employed.
718          (b) The report shall be in a form specified by the Motor Vehicle Division and shall
719     include:
720          (i) the operator's name, if known;
721          (ii) a description of the vehicle, vessel, or outboard motor;
722          (iii) the vehicle identification number or vessel or outboard motor identification
723     number;
724          (iv) the license number, temporary permit number, or other identification number
725     issued by a state agency;
726          (v) the date, time, and place of impoundment;
727          (vi) the reason for removal or impoundment;
728          (vii) the name of the tow truck motor carrier who removed the vehicle, vessel, or
729     outboard motor; and
730          (viii) the place where the vehicle, vessel, or outboard motor is stored.
731          (c) Until the tow truck operator or tow truck motor carrier reports the removal as
732     required under this Subsection (4), a tow truck motor carrier or impound yard may not:
733          (i) collect any fee associated with the removal; and
734          (ii) begin charging storage fees.
735          (5) (a) Except as provided in Subsection (5)(e) and upon receipt of the report, the
736     Motor Vehicle Division shall give notice, in the manner described in Section 41-1a-114, to the
737     following parties with an interest in the vehicle, vessel, or outboard motor, as applicable:
738          (i) the registered owner;

739          (ii) any lien holder; or
740          (iii) a dealer, as defined in Section 41-1a-102, if the vehicle, vessel, or outboard motor
741     is currently operating under a temporary permit issued by the dealer, as described in Section
742     41-3-302.
743          (b) The notice shall:
744          (i) state the date, time, and place of removal, the name, if applicable, of the person
745     operating the vehicle, vessel, or outboard motor at the time of removal, the reason for removal,
746     and the place where the vehicle, vessel, or outboard motor is stored;
747          (ii) state that the registered owner is responsible for payment of:
748          (A) towing, impound, and storage fees charged against the vehicle, vessel, or outboard
749     motor; and
750          (B) the applicable sales and use tax;
751          (iii) state the conditions that must be satisfied before the vehicle, vessel, or outboard
752     motor is released; and
753          (iv) inform the parties described in Subsection (5)(a) of the division's intent to sell the
754     vehicle, vessel, or outboard motor, if, within 30 days after the day of the removal or
755     impoundment under this section, one of the parties fails to make a claim for release of the
756     vehicle, vessel, or outboard motor.
757          (c) Except as provided in Subsection (5)(e) and if the vehicle, vessel, or outboard
758     motor is not registered in this state, the Motor Vehicle Division shall make a reasonable effort
759     to notify the parties described in Subsection (5)(a) of the removal and the place where the
760     vehicle, vessel, or outboard motor is stored.
761          (d) The Motor Vehicle Division shall forward a copy of the notice to the place where
762     the vehicle, vessel, or outboard motor is stored.
763          (e) The Motor Vehicle Division is not required to give notice under this Subsection (5)
764     if a report was received by a tow truck operator or tow truck motor carrier reporting a tow truck
765     service in accordance with Subsection 72-9-603(1)(a)(i).
766          (6) (a) The vehicle, vessel, or outboard motor shall be released after a party described
767     in Subsection (5)(a):
768          (i) makes a claim for release of the vehicle, vessel, or outboard motor at any office of
769     the State Tax Commission;

770          (ii) presents identification sufficient to prove ownership of the impounded vehicle,
771     vessel, or outboard motor;
772          (iii) completes the registration, if needed, and pays the appropriate fees;
773          (iv) if the impoundment was made under Section 41-6a-527, pays an administrative
774     impound fee of $400; and
775          (v) pays all towing and storage fees and applicable sales and use tax to the place where
776     the vehicle, vessel, or outboard motor is stored.
777          (b) (i) Twenty-nine dollars of the administrative impound fee assessed under
778     Subsection (6)(a)(iv) shall be dedicated credits to the Motor Vehicle Division;
779          (ii) $147 of the administrative impound fee assessed under Subsection (6)(a)(iv) shall
780     be deposited in the Department of Public Safety Restricted Account created in Section
781     53-3-106;
782          (iii) $20 of the administrative impound fee assessed under Subsection (6)(a)(iv) shall
783     be deposited in the Spinal Cord and Brain Injury Rehabilitation Fund; and
784          (iv) the remainder of the administrative impound fee assessed under Subsection
785     (6)(a)(iv) shall be deposited in the General Fund.
786          (c) The administrative impound fee assessed under Subsection (6)(a)(iv) shall be
787     waived or refunded by the State Tax Commission if the registered owner, lien holder, or
788     owner's agent presents written evidence to the State Tax Commission that:
789          (i) the Driver License Division determined that the arrested person's driver license
790     should not be suspended or revoked under Section 53-3-223 or 41-6a-521 as shown by a letter
791     or other report from the Driver License Division presented within 180 days after the day on
792     which the Driver License Division mailed the final notification; or
793          (ii) the vehicle was stolen at the time of the impoundment as shown by a copy of the
794     stolen vehicle report presented within 180 days after the day of the impoundment.
795          (d) A tow truck operator, a tow truck motor carrier, and an impound yard shall accept
796     payment by cash and debit or credit card for a removal or impoundment under Subsection (1)
797     or any service rendered, performed, or supplied in connection with a removal or impoundment
798     under Subsection (1).
799          (e) The owner of an impounded vehicle may not be charged a fee for the storage of the
800     impounded vehicle, vessel, or outboard motor if:

801          (i) the vehicle, vessel, or outboard motor is being held as evidence; and
802          (ii) the vehicle, vessel, or outboard motor is not being released to a party described in
803     Subsection [5] (5)(a), even if the party satisfies the requirements to release the vehicle, vessel,
804     or outboard motor under this Subsection (6).
805          (7) (a) An impounded vehicle, vessel, or outboard motor not claimed by a party
806     described in Subsection (5)(a) within the time prescribed by Section 41-1a-1103 shall be sold
807     in accordance with that section and the proceeds, if any, shall be disposed of as provided under
808     Section 41-1a-1104.
809          (b) The date of impoundment is considered the date of seizure for computing the time
810     period provided under Section 41-1a-1103.
811          (8) A party described in Subsection (5)(a) that pays all fees [and], charges, and taxes
812     incurred in the impoundment of the owner's vehicle, vessel, or outboard motor has a cause of
813     action for all the fees and charges, together with damages, court costs, and attorney fees,
814     against the operator of the vehicle, vessel, or outboard motor whose actions caused the removal
815     or impoundment.
816          (9) Towing, impound fees, and storage fees are a possessory lien on the vehicle, vessel,
817     or outboard motor.
818          (10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
819     the department shall make rules setting the performance standards for towing companies to be
820     used by the department.
821          (11) (a) The Motor Vehicle Division may specify that a report required under
822     Subsection (4) be submitted in electronic form utilizing a database for submission, storage, and
823     retrieval of the information.
824          (b) (i) Unless otherwise provided by statute, the Motor Vehicle Division or the
825     administrator of the database may adopt a schedule of fees assessed for utilizing the database.
826          (ii) The fees under this Subsection (11)(b) shall:
827          (A) be reasonable and fair; and
828          (B) reflect the cost of administering the database.
829          Section 12. Section 41-6a-1642 is amended to read:
830          41-6a-1642. Emissions inspection -- County program.
831          (1) The legislative body of each county required under federal law to utilize a motor

832     vehicle emissions inspection and maintenance program or in which an emissions inspection
833     and maintenance program is necessary to attain or maintain any national ambient air quality
834     standard shall require:
835          (a) a certificate of emissions inspection, a waiver, or other evidence the motor vehicle
836     is exempt from emissions inspection and maintenance program requirements be presented:
837          (i) as a condition of registration or renewal of registration; and
838          (ii) at other times as the county legislative body may require to enforce inspection
839     requirements for individual motor vehicles, except that the county legislative body may not
840     routinely require a certificate of emissions inspection, or waiver of the certificate, more often
841     than required under Subsection (9); and
842          (b) compliance with this section for a motor vehicle registered or principally operated
843     in the county and owned by or being used by a department, division, instrumentality, agency, or
844     employee of:
845          (i) the federal government;
846          (ii) the state and any of its agencies; or
847          (iii) a political subdivision of the state, including school districts.
848          (2) A vehicle owner subject to Subsection (1) shall obtain a motor vehicle emissions
849     inspection and maintenance program certificate of emissions inspection as described in
850     Subsection (1), but the program may not deny vehicle registration based solely on the presence
851     of a defeat device covered in the Volkswagen partial consent decrees or a United States
852     Environmental Protection Agency-approved vehicle modification in the following vehicles:
853          (a) a 2.0-liter diesel engine motor vehicle in which its lifetime nitrogen oxide
854     emissions are mitigated in the state pursuant to a partial consent decree, including:
855          (i) Volkswagen Jetta, model years 2009, 2010, 2011, 2012, 2013, 2014, and 2015;
856          (ii) Volkswagen Jetta Sportwagen, model years 2009, 2010, 2011, 2012, 2013, and
857     2014;
858          (iii) Volkswagen Golf, model years 2010, 2011, 2012, 2013, 2014, and 2015;
859          (iv) Volkswagen Golf Sportwagen, model year 2015;
860          (v) Volkswagen Passat, model years 2012, 2013, 2014, and 2015;
861          (vi) Volkswagen Beetle, model years 2013, 2014, and 2015;
862          (vii) Volkswagen Beetle Convertible, model years 2013, 2014, and 2015; and

863          (viii) Audi A3, model years 2010, 2011, 2012, 2013, and 2015; and
864          (b) a 3.0-liter diesel engine motor vehicle in which its lifetime nitrogen oxide
865     emissions are mitigated in the state to a settlement, including:
866          (i) Volkswagen Touareg, model years 2009, 2010, 2011, 2012, 2013, 2014, 2015, and
867     2016;
868          (ii) Audi Q7, model years 2009, 2010, 2011, 2012, 2013, 2014, 2015, and 2016;
869          (iii) Audi A6 Quattro, model years 2014, 2015, and 2016;
870          (iv) Audi A7 Quattro, model years 2014, 2015, and 2016;
871          (v) Audi A8, model years 2014, 2015, and 2016;
872          (vi) Audi A8L, model years 2014, 2015, and 2016;
873          (vii) Audi Q5, model years 2014, 2015, and 2016; and
874          (viii) Porsche Cayenne Diesel, model years 2013, 2014, 2015, and 2016.
875          (3) (a) The legislative body of a county identified in Subsection (1), in consultation
876     with the Air Quality Board created under Section 19-1-106, shall make regulations or
877     ordinances regarding:
878          (i) emissions standards;
879          (ii) test procedures;
880          (iii) inspections stations;
881          (iv) repair requirements and dollar limits for correction of deficiencies; and
882          (v) subject to Subsection (3)(e), certificates of emissions inspections.
883          (b) In accordance with Subsection (3)(a), a county legislative body:
884          (i) shall make regulations or ordinances to attain or maintain ambient air quality
885     standards in the county, consistent with the state implementation plan and federal
886     requirements;
887          (ii) may allow for a phase-in of the program by geographical area; and
888          (iii) shall comply with the analyzer design and certification requirements contained in
889     the state implementation plan prepared under Title 19, Chapter 2, Air Conservation Act.
890          (c) The county legislative body and the Air Quality Board shall give preference to an
891     inspection and maintenance program that:
892          (i) is decentralized, to the extent the decentralized program will attain and maintain
893     ambient air quality standards and meet federal requirements;

894          (ii) is the most cost effective means to achieve and maintain the maximum benefit with
895     regard to ambient air quality standards and to meet federal air quality requirements as related to
896     vehicle emissions; and
897          (iii) provides a reasonable phase-out period for replacement of air pollution emission
898     testing equipment made obsolete by the program.
899          (d) The provisions of Subsection (3)(c)(iii) apply only to the extent the phase-out:
900          (i) may be accomplished in accordance with applicable federal requirements; and
901          (ii) does not otherwise interfere with the attainment and maintenance of ambient air
902     quality standards.
903          (e) A certificate of emissions inspection shall contain an odometer reading.
904          (4) The following vehicles are exempt from an emissions inspection program and the
905     provisions of this section:
906          (a) an implement of husbandry as defined in Section 41-1a-102;
907          (b) a motor vehicle that:
908          (i) meets the definition of a farm truck under Section 41-1a-102; and
909          (ii) has a gross vehicle weight rating of 12,001 pounds or more;
910          (c) a vintage vehicle as defined in Section 41-21-1;
911          (d) a custom vehicle as defined in Section 41-6a-1507;
912          (e) to the extent allowed under the current federally approved state implementation
913     plan, in accordance with the federal Clean Air Act, 42 U.S.C. Sec. 7401, et seq., a motor
914     vehicle that is less than two years old on January 1 based on the age of the vehicle as
915     determined by the model year identified by the manufacturer;
916          (f) a pickup truck, as defined in Section 41-1a-102, with a gross vehicle weight rating
917     of 12,000 pounds or less, if the registered owner of the pickup truck provides a signed
918     statement to the legislative body stating the truck is used:
919          (i) by the owner or operator of a farm located on property that qualifies as land in
920     agricultural use under Sections 59-2-502 and 59-2-503; and
921          (ii) exclusively for the following purposes in operating the farm:
922          (A) for the transportation of farm products, including livestock and its products,
923     poultry and its products, floricultural and horticultural products; and
924          (B) in the transportation of farm supplies, including tile, fence, and every other thing or

925     commodity used in agricultural, floricultural, horticultural, livestock, and poultry production
926     and maintenance;
927          (g) a motorcycle as defined in Section 41-1a-102;
928          (h) a motor vehicle powered solely by electric power; and
929          (i) a motor vehicle with a model year of 1967 or older.
930          (5) The county shall issue to the registered owner who signs and submits a signed
931     statement under Subsection (4)(f) a certificate of exemption from emissions inspection
932     requirements for purposes of registering the exempt vehicle.
933          (6) A legislative body of a county described in Subsection (1) may exempt from an
934     emissions inspection program a diesel-powered motor vehicle with a:
935          (a) gross vehicle weight rating of more than 14,000 pounds; or
936          (b) model year of 1997 or older.
937          (7) (a) The legislative body of a county described in Subsection (1) that does not
938     require an emissions inspection for diesel-powered motor vehicles as of December 31, 2017,
939     shall implement a three-year pilot program as described in Subsection (7)(b).
940          (b) Beginning on January 1, 2019, and ending on December 31, 2021, the legislative
941     body of a county described in Subsection (7)(a) shall require:
942          (i) a computerized emissions inspection for a diesel-powered motor vehicle that has:
943          (A) a model year of 2007 or newer;
944          (B) a gross vehicle weight rating of 14,000 pounds or less; and
945          (C) a model year that is five years old or older; and
946          (ii) a visual inspection of emissions equipment for a diesel-powered motor vehicle:
947          (A) with a gross vehicle weight rating of 14,000 pounds or less;
948          (B) that has a model year of 1998 or newer; and
949          (C) that has a model year that is five years old or older.
950          (c) (i) The legislative body of a county that participates in the pilot program described
951     in this Subsection (7) shall prepare a report including:
952          (A) the total number of diesel-powered vehicles inspected as part of the pilot program
953     using computerized technology;
954          (B) the passage and failure rates of the diesel-powered motor vehicles inspected as part
955     of the pilot program using computerized technology, shown by model year;

956          (C) the total number of diesel-powered vehicles visually inspected as part of the pilot
957     program;
958          (D) the passage and failure rates of the diesel-powered motor vehicles visually
959     inspected as part of the pilot program, shown by model year;
960          (E) the total number of diesel-powered vehicles visually inspected as part of the pilot
961     program where tampering with emissions equipment was found, shown by model year; and
962          (F) any other information the executive body or individual considers relevant.
963          (ii) The legislative body of a county that participates in the pilot program described in
964     this Subsection (7) shall present the report described in Subsection (7)(c)(i) to the Natural
965     Resources, Agriculture, and Environment Interim Committee:
966          (A) one time after January 1, 2020, but before August 31, 2020; and
967          (B) one time after January 1, 2021, but before August 31, 2021.
968          (d) After each report described in Subsection (7)(c), the Division of Air Quality created
969     in Section 19-1-105 shall provide to the Natural Resources, Agriculture, and Environment
970     Interim Committee and the legislative body of a county participating in the pilot program an
971     estimate of the tons of pollution emitted due to the failure rate of the diesel-powered motor
972     vehicles in the pilot program.
973          (8) (a) Subject to Subsection (8)(c), the legislative body of each county required under
974     federal law to utilize a motor vehicle emissions inspection and maintenance program or in
975     which an emissions inspection and maintenance program is necessary to attain or maintain any
976     national ambient air quality standard may require each college or university located in a county
977     subject to this section to require its students and employees who park a motor vehicle not
978     registered in a county subject to this section to provide proof of compliance with an emissions
979     inspection accepted by the county legislative body if the motor vehicle is parked on the college
980     or university campus or property.
981          (b) College or university parking areas that are metered or for which payment is
982     required per use are not subject to the requirements of this Subsection (8).
983          (c) The legislative body of a county shall make the reasons for implementing the
984     provisions of this Subsection (8) part of the record at the time that the county legislative body
985     takes its official action to implement the provisions of this Subsection (8).
986          (9) (a) An emissions inspection station shall issue a certificate of emissions inspection

987     for each motor vehicle that meets the inspection and maintenance program requirements
988     established in rules made under Subsection (3).
989          (b) The frequency of the emissions inspection shall be determined based on the age of
990     the vehicle as determined by model year and shall be required annually subject to the
991     provisions of Subsection (9)(c).
992          (c) (i) To the extent allowed under the current federally approved state implementation
993     plan, in accordance with the federal Clean Air Act, 42 U.S.C. Sec. 7401 et seq., the legislative
994     body of a county identified in Subsection (1) shall only require the emissions inspection every
995     two years for each vehicle.
996          (ii) The provisions of Subsection (9)(c)(i) apply only to a vehicle that is less than six
997     years old on January 1.
998          (iii) For a county required to implement a new vehicle emissions inspection and
999     maintenance program on or after December 1, 2012, under Subsection (1), but for which no
1000     current federally approved state implementation plan exists, a vehicle shall be tested at a
1001     frequency determined by the county legislative body, in consultation with the Air Quality
1002     Board created under Section 19-1-106, that is necessary to comply with federal law or attain or
1003     maintain any national ambient air quality standard.
1004          (iv) If a county legislative body establishes or changes the frequency of a vehicle
1005     emissions inspection and maintenance program under Subsection (9)(c)(iii), the establishment
1006     or change shall take effect on January 1 if the State Tax Commission receives notice meeting
1007     the requirements of Subsection (9)(c)(v) from the county before October 1.
1008          (v) The notice described in Subsection (9)(c)(iv) shall:
1009          (A) state that the county will establish or change the frequency of the vehicle emissions
1010     inspection and maintenance program under this section;
1011          (B) include a copy of the ordinance establishing or changing the frequency; and
1012          (C) if the county establishes or changes the frequency under this section, state how
1013     frequently the emissions testing will be required.
1014          (d) If an emissions inspection is only required every two years for a vehicle under
1015     Subsection(9)(c), the inspection shall be required for the vehicle in:
1016          (i) odd-numbered years for vehicles with odd-numbered model years; or
1017          (ii) in even-numbered years for vehicles with even-numbered model years.

1018          (10) (a) Except as provided in Subsections (9)(b), (c), and (d), the emissions inspection
1019     required under this section may be made no more than two months before the renewal of
1020     registration.
1021          (b) (i) If the title of a used motor vehicle is being transferred, the owner may use an
1022     emissions inspection certificate issued for the motor vehicle during the previous 11 months to
1023     satisfy the requirement under this section.
1024          (ii) If the transferor is a licensed and bonded used motor vehicle dealer, the owner may
1025     use an emissions inspection certificate issued for the motor vehicle in a licensed and bonded
1026     motor vehicle dealer's name during the previous 11 months to satisfy the requirement under
1027     this section.
1028          (c) If the title of a leased vehicle is being transferred to the lessee of the vehicle, the
1029     lessee may use an emissions inspection certificate issued during the previous 11 months to
1030     satisfy the requirement under this section.
1031          (d) If the motor vehicle is part of a fleet of 101 or more vehicles, the owner may not
1032     use an emissions inspection made more than 11 months before the renewal of registration to
1033     satisfy the requirement under this section.
1034          (e) If the application for renewal of registration is for a six-month registration period
1035     under Section 41-1a-215.5, the owner may use an emissions inspection certificate issued during
1036     the previous eight months to satisfy the requirement under this section.
1037          (11) (a) A county identified in Subsection (1) shall collect information about and
1038     monitor the program.
1039          (b) A county identified in Subsection (1) shall supply this information to an appropriate
1040     legislative committee, as designated by the Legislative Management Committee, at times
1041     determined by the designated committee to identify program needs, including funding needs.
1042          (12) If approved by the county legislative body, a county that had an established
1043     emissions inspection fee as of January 1, 2002, may increase the established fee that an
1044     emissions inspection station may charge by $2.50 for each year that is exempted from
1045     emissions inspections under Subsection (9)(c) up to a $7.50 increase.
1046          (13) (a) A county identified in Subsection (1) may impose a local emissions
1047     compliance fee on each motor vehicle registration within the county in accordance with the
1048     procedures and requirements of Section 41-1a-1223.

1049          (b) A county that imposes a local emissions compliance fee may use revenues
1050     generated from the fee for the establishment and enforcement of an emissions inspection and
1051     maintenance program in accordance with the requirements of this section.
1052          (c) A county that imposes a local emissions compliance fee may use revenues
1053     generated from the fee to promote programs to maintain a local, state, or national ambient air
1054     quality standard.
1055          Section 13. Section 41-12a-806 is amended to read:
1056          41-12a-806. Restricted account -- Creation -- Funding -- Interest -- Purposes.
1057          (1) There is created within the Transportation Fund a restricted account known as the
1058     "Uninsured Motorist Identification Restricted Account."
1059          (2) The account consists of money generated from the following revenue sources:
1060          (a) money received by the state under Section 41-1a-1218, the uninsured motorist
1061     identification fee;
1062          (b) money received by the state under Section 41-1a-1220, the registration
1063     reinstatement fee; and
1064          (c) appropriations made to the account by the Legislature.
1065          (3) (a) The account shall earn interest.
1066          (b) All interest earned on account money shall be deposited into the account.
1067          (4) The Legislature shall appropriate money from the account to:
1068          (a) the department to fund the contract with the designated agent;
1069          (b) the department to offset the costs to state and local law enforcement agencies of
1070     using the information for the purposes authorized under this part;
1071          (c) the Tax Commission to offset the costs to the Motor Vehicle Division for revoking
1072     and reinstating vehicle registrations under Subsection 41-1a-110(2)(a)(ii); and
1073          (d) the department to reimburse a person for the costs, including any applicable sales
1074     and use tax, of towing and storing the person's vehicle if:
1075          (i) the person's vehicle was impounded in accordance with Subsection 41-1a-1101(2);
1076          (ii) the impounded vehicle had owner's or operator's security in effect for the vehicle at
1077     the time of the impoundment;
1078          (iii) the database indicated that owner's or operator's security was not in effect for the
1079     impounded vehicle; and

1080          (iv) the department determines that the person's vehicle was wrongfully impounded.
1081          (5) The Legislature may appropriate not more than $1,000,000 annually from the
1082     account to the Peace Officer Standards and Training Division, created under Section 53-6-103,
1083     for use in law enforcement training, including training on the use of the Uninsured Motorist
1084     Identification Database Program created under Title 41, Chapter 12a, Part 8, Uninsured
1085     Motorist Identification Database Program.
1086          (6) (a) By following the procedures in Title 63G, Chapter 4, Administrative Procedures
1087     Act, the department shall hold a hearing to determine whether a person's vehicle was
1088     wrongfully impounded under Subsection 41-1a-1101(2).
1089          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1090     division shall make rules establishing procedures for a person to apply for a reimbursement
1091     under Subsection (4)(d).
1092          (c) A person is not eligible for a reimbursement under Subsection (4)(d) unless the
1093     person applies for the reimbursement within six months from the date that the motor vehicle
1094     was impounded.
1095          Section 14. Section 53B-8a-106 is amended to read:
1096          53B-8a-106. Account agreements.
1097          The plan may enter into account agreements with account owners on behalf of
1098     beneficiaries under the following terms and agreements:
1099          (1) (a) An account agreement may require an account owner to agree to invest a
1100     specific amount of money in the plan for a specific period of time for the benefit of a specific
1101     beneficiary, not to exceed an amount determined by the executive director.
1102          (b) Account agreements may be amended to provide for adjusted levels of payments
1103     based upon changed circumstances or changes in educational plans.
1104          (c) An account owner may make additional optional payments as long as the total
1105     payments for a specific beneficiary do not exceed the total estimated higher education costs as
1106     determined by the executive director.
1107          (d) Subject to Subsections (1)(f) and (g), the maximum amount of a qualified
1108     investment that a corporation that is an account owner may subtract from unadjusted income
1109     for a taxable year in accordance with Title 59, Chapter 7, Corporate Franchise and Income
1110     Taxes, is $1,710 for each individual beneficiary for the taxable year beginning on or after

1111     January 1, 2010, but beginning on or before December 31, 2010.
1112          (e) Subject to Subsections (1)(f) and (g), the maximum amount of a qualified
1113     investment that may be used as the basis for claiming a tax credit in accordance with Section
1114     59-10-1017, is:
1115          (i) subject to Subsection (1)(e)(iv), for a resident or nonresident estate or trust that is an
1116     account owner, $1,710 for each individual beneficiary for the taxable year beginning on or after
1117     January 1, 2010, but beginning on or before December 31, 2010;
1118          (ii) subject to Subsection (1)(e)(iv), for a resident or nonresident individual that is an
1119     account owner, other than a husband and wife who are account owners and file a single return
1120     jointly under Title 59, Chapter 10, Individual Income Tax Act, $1,710 for each individual
1121     beneficiary for the taxable year beginning on or after January 1, 2010, but beginning on or
1122     before December 31, 2010;
1123          (iii) subject to Subsection (1)(e)(iv), for a husband and wife who are account owners
1124     and file a single return jointly under Title 59, Chapter 10, Individual Income Tax Act, $3,420
1125     for each individual beneficiary:
1126          (A) for the taxable year beginning on or after January 1, 2010, but beginning on or
1127     before December 31, 2010; and
1128          (B) regardless of whether the plan has entered into:
1129          (I) a separate account agreement with each spouse; or
1130          (II) a single account agreement with both spouses jointly; or
1131          (iv) for a grantor trust:
1132          (A) if the owner of the grantor trust has a single filing status or head of household
1133     filing status as defined in Section [59-10-1018] 59-10-1017, the amount described in
1134     Subsection (1)(e)(ii); or
1135          (B) if the owner of the grantor trust has a joint filing status as defined in Section
1136     [59-10-1018] 59-10-1017, the amount described in Subsection (1)(e)(iii).
1137          (f) (i) For taxable years beginning on or after January 1, 2011, the executive director
1138     shall annually increase the maximum amount of a qualified investment described in
1139     Subsections (1)(d) and (1)(e)(i) and (ii), by a percentage equal to the increase in the consumer
1140     price index for the preceding calendar year.
1141          (ii) After making an increase required by Subsection (1)(f)(i), the executive director

1142     shall:
1143          (A) round the maximum amount of the qualified investments described in Subsections
1144     (1)(d) and (1)(e)(i) and (ii) increased under Subsection (1)(f)(i) to the nearest 10 dollar
1145     increment; and
1146          (B) increase the maximum amount of the qualified investment described in Subsection
1147     (1)(e)(iii) so that the maximum amount of the qualified investment described in Subsection
1148     (1)(e)(iii) is equal to the product of:
1149          (I) the maximum amount of the qualified investment described in Subsection (1)(e)(ii)
1150     as rounded under Subsection (1)(f)(ii)(A); and
1151          (II) two.
1152          (iii) For purposes of Subsections (1)(f)(i) and (ii), the executive director shall calculate
1153     the consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
1154          (g) For taxable years beginning on or after January 1, 2011, the executive director shall
1155     keep the previous year's maximum amount of a qualified investment described in Subsections
1156     (1)(d) and (1)(e)(i) and (ii) if the consumer price index for the preceding calendar year
1157     decreases.
1158          (2) (a) Beneficiaries designated in account agreements must be designated after birth
1159     and before age 19 for an account owner to:
1160          (i) subtract a qualified investment from income under Title 59, Chapter 7, Corporate
1161     Franchise and Income Taxes; or
1162          (ii) use a qualified investment as the basis for claiming a tax credit in accordance with
1163     Section 59-10-1017.
1164          (b) Account owners may designate a beneficiary age 19 or older, but investments for
1165     that beneficiary are not eligible to be:
1166          (i) subtracted from income under Title 59, Chapter 7, Corporate Franchise and Income
1167     Taxes; or
1168          (ii) used as the basis for claiming a tax credit in accordance with Section 59-10-1017.
1169          (3) Each account agreement shall state clearly that there are no guarantees regarding
1170     money in the plan as to the return of principal and that losses could occur.
1171          (4) Each account agreement shall provide that:
1172          (a) a contributor to, or designated beneficiary under, an account agreement may not

1173     direct the investment of any contributions or earnings on contributions;
1174          (b) any part of the money in any account may not be used as security for a loan; and
1175          (c) an account owner may not borrow from the plan.
1176          (5) The execution of an account agreement by the plan may not guarantee in any way
1177     that higher education costs will be equal to projections and estimates provided by the plan or
1178     that the beneficiary named in any account agreement will:
1179          (a) be admitted to an institution of higher education;
1180          (b) if admitted, be determined a resident for tuition purposes by the institution of
1181     higher education;
1182          (c) be allowed to continue attendance at the institution of higher education following
1183     admission; or
1184          (d) graduate from the institution of higher education.
1185          (6) A beneficiary may be changed as permitted by the rules and regulations of the
1186     board upon written request of the account owner prior to the date of admission of any
1187     beneficiary under an account agreement by an institution of higher education so long as the
1188     substitute beneficiary is eligible for participation.
1189          (7) An account agreement may be freely amended throughout the term of the account
1190     agreement in order to enable an account owner to increase or decrease the level of
1191     participation, change the designation of beneficiaries, and carry out similar matters as
1192     authorized by rule.
1193          (8) Each account agreement shall provide that:
1194          (a) the account agreement may be canceled upon the terms and conditions, and upon
1195     payment of the fees and costs set forth and contained in the board's rules and regulations; and
1196          (b) the executive director may amend the agreement unilaterally and retroactively, if
1197     necessary, to maintain the plan as a qualified tuition program under Section 529, Internal
1198     Revenue Code.
1199          Section 15. Section 53G-10-406 is amended to read:
1200          53G-10-406. Underage Drinking Prevention Program -- State board rules.
1201          (1) As used in this section:
1202          (a) "Advisory council" means the Underage Drinking Prevention Program Advisory
1203     Council created in this section.

1204          (b) "Program" means the Underage Drinking Prevention Program created in this
1205     section.
1206          (c) "School-based prevention program" means an evidence-based program intended for
1207     students aged 13 and older that:
1208          (i) is aimed at preventing underage consumption of alcohol;
1209          (ii) is delivered by methods that engage students in storytelling and visualization;
1210          (iii) addresses the behavioral risk factors associated with underage drinking; and
1211          (iv) provides practical tools to address the dangers of underage drinking.
1212          (2) There is created the Underage Drinking Prevention Program that consists of:
1213          (a) a school-based prevention program for students in grade 7 or 8; and
1214          (b) a school-based prevention program for students in grade 9 or 10 that increases
1215     awareness of the dangers of driving under the influence of alcohol.
1216          (3) (a) Beginning with the 2018-19 school year, an LEA shall offer the program each
1217     school year to each student in grade 7 or 8 and grade 9 or 10.
1218          (b) An LEA shall select from the providers qualified by the state board under
1219     Subsection (6) to offer the program.
1220          (4) The state board shall administer the program with input from the advisory council.
1221          (5) There is created the Underage Drinking Prevention Program Advisory Council
1222     comprised of the following members:
1223          (a) the executive director of the Department of Alcoholic Beverage Control or the
1224     executive director's designee;
1225          (b) the executive director of the Department of Health or the executive director's
1226     designee;
1227          (c) the director of the Division of Substance Abuse and Mental Health or the director's
1228     designee;
1229          (d) the director of the Division of Child and Family Services or the director's designee;
1230          (e) the director of the Division of Juvenile Justice Services or the director's designee;
1231          (f) the state superintendent or the state superintendent's designee; and
1232          (g) two members of the state board, appointed by the chair of the state board.
1233          (6) (a) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the state
1234     board shall qualify one or more providers to provide the program to an LEA.

1235          (b) In selecting a provider described in Subsection (6)(a), the state board shall consider:
1236          (i) whether the provider's program complies with the requirements described in this
1237     section;
1238          (ii) the extent to which the provider's underage drinking prevention program aligns
1239     with core standards for Utah public schools; and
1240          (iii) the provider's experience in providing a program that is effective at reducing
1241     underage drinking.
1242          [(7) (a) The state board shall use money from the Underage Drinking Prevention
1243     Program Restricted Account described in Section 53F-9-304 for the program.]
1244          [(b) The state board may use money from the Underage Drinking Prevention Program
1245     Restricted Account to fund up to .5 of a full-time equivalent position to administer the
1246     program.]
1247          [(8)] (7) The state board shall make rules that:
1248          (a) beginning with the 2018-19 school year, require an LEA to offer the Underage
1249     Drinking Prevention Program each school year to each student in grade 7 or 8 and grade 9 or
1250     10; and
1251          (b) establish criteria for the state board to use in selecting a provider described in
1252     Subsection (6).
1253          Section 16. Section 59-1-1503 is amended to read:
1254          59-1-1503. Nonrefundable credit -- Sales and use tax exemption -- Sales and use
1255     tax remittance.
1256          (1) A nonrefundable individual income tax credit is allowed as provided in Section
1257     59-10-1028 related to a capital gain on a transaction involving the exchange of one form of
1258     legal tender for another form of legal tender.
1259          (2) Sales of currency or coin are exempt from sales and use taxes as provided in
1260     Subsection 59-12-104[(50)](43).
1261          (3) The remittance of a sales and use tax on a transaction involving specie legal tender
1262     is as provided in Section 59-12-107.
1263          Section 17. Section 59-7-104 is amended to read:
1264          59-7-104. Tax -- Minimum tax.
1265          (1) Each domestic and foreign corporation, except a corporation that is exempt under

1266     Section 59-7-102, shall pay an annual tax to the state based on the corporation's Utah taxable
1267     income for the taxable year for the privilege of exercising the corporation's corporate franchise,
1268     as defined in Section 59-7-101, or for the privilege of doing business, as defined in Section
1269     59-7-101, in the state.
1270          (2) The tax shall be [4.95%] 4.66% of a corporation's Utah taxable income.
1271          (3) The minimum tax a corporation shall pay under this chapter is $100.
1272          Section 18. Section 59-7-201 is amended to read:
1273          59-7-201. Tax -- Minimum tax.
1274          (1) There is imposed upon each corporation, except a corporation that is exempt under
1275     Section 59-7-102, a tax upon the corporation's Utah taxable income for the taxable year that is
1276     derived from sources within this state other than income for any period that the corporation is
1277     required to include in the corporation's tax base under Section 59-7-104.
1278          (2) The tax imposed by Subsection (1) shall be [4.95%] 4.66% of a corporation's Utah
1279     taxable income.
1280          (3) In no case shall the tax be less than $100.
1281          Section 19. Section 59-7-610 is amended to read:
1282          59-7-610. Recycling market development zones tax credits.
1283          (1) Subject to other provisions of this section, a taxpayer that is a business operating in
1284     a recycling market development zone as defined in Section 63N-2-402 may claim the following
1285     nonrefundable tax credits:
1286          (a) a tax credit [of 5% of] equal to the product of the percentage listed in Subsection
1287     59-7-104(2) and the purchase price paid for machinery and equipment used directly in:
1288          (i) commercial composting; or
1289          (ii) manufacturing facilities or plant units that:
1290          (A) manufacture, process, compound, or produce recycled items of tangible personal
1291     property for sale; or
1292          (B) reduce or reuse postconsumer waste material; and
1293          (b) a tax credit equal to the lesser of:
1294          (i) 20% of net expenditures to third parties for rent, wages, supplies, tools, test
1295     inventory, and utilities made by the taxpayer for establishing and operating recycling or
1296     composting technology in Utah; and

1297          (ii) $2,000.
1298          (2) (a) To claim a tax credit described in Subsection (1), the taxpayer shall receive
1299     from the Governor's Office of Economic Development a written certification, on a form
1300     approved by the commission, that includes:
1301          (i) a statement that the taxpayer is operating a business within the boundaries of a
1302     recycling market development zone;
1303          (ii) for claims of the tax credit described in Subsection (1)(a):
1304          (A) the type of the machinery and equipment that the taxpayer purchased;
1305          (B) the date that the taxpayer purchased the machinery and equipment;
1306          (C) the purchase price for the machinery and equipment;
1307          (D) the total purchase price for all machinery and equipment for which the taxpayer is
1308     claiming a tax credit;
1309          (E) a statement that the machinery and equipment are integral to the composting or
1310     recycling process; and
1311          (F) the amount of the taxpayer's tax credit; and
1312          (iii) for claims of the tax credit described in Subsection (1)(b):
1313          (A) the type of net expenditure that the taxpayer made to a third party;
1314          (B) the date that the taxpayer made the payment to a third party;
1315          (C) the amount that the taxpayer paid to each third party;
1316          (D) the total amount that the taxpayer paid to all third parties;
1317          (E) a statement that the net expenditures support the establishment and operation of
1318     recycling or composting technology in Utah; and
1319          (F) the amount of the taxpayer's tax credit.
1320          (b) (i) The Governor's Office of Economic Development shall provide a taxpayer
1321     seeking to claim a tax credit under Subsection (1) with a copy of the written certification.
1322          (ii) The taxpayer shall retain a copy of the written certification for the same period of
1323     time that a person is required to keep books and records under Section 59-1-1406.
1324          (c) The Governor's Office of Economic Development shall submit to the commission
1325     an electronic list that includes:
1326          (i) the name and identifying information of each taxpayer to which the office issues a
1327     written certification; and

1328          (ii) for each taxpayer, the amount of each tax credit listed on the written certification.
1329          (3) A taxpayer may not claim a tax credit under Subsection (1)(a), Subsection (1)(b), or
1330     both that exceeds 40% of the taxpayer's state income tax liability as the tax liability is
1331     calculated:
1332          (a) for the taxable year in which the taxpayer made the purchases or payments;
1333          (b) before any other tax credits the taxpayer may claim for the taxable year; and
1334          (c) before the taxpayer claiming a tax credit authorized by this section.
1335          (4) The commission shall make rules governing what information a taxpayer shall file
1336     with the commission to verify the entitlement to and amount of a tax credit.
1337          (5) Except as provided in Subsections (6) through (8), a taxpayer may carry forward, to
1338     the next three taxable years, the amount of the tax credit that exceeds the taxpayer's income tax
1339     liability for the taxable year.
1340          (6) A taxpayer may not claim or carry forward a tax credit described in Subsection
1341     (1)(a) in a taxable year during which the taxpayer claims or carries forward a tax credit under
1342     Section 63N-2-213.
1343          (7) A taxpayer may not claim or carry forward a tax credit described in Subsection
1344     (1)(b) in a taxable year during which the taxpayer claims or carries forward a tax credit under
1345     Section 63N-2-213.
1346          (8) A taxpayer may not claim or carry forward a tax credit under this section for a
1347     taxable year during which the taxpayer claims the targeted business income tax credit under
1348     Section 59-7-624.
1349          Section 20. Section 59-7-614.1 is amended to read:
1350          59-7-614.1. Refundable tax credit for hand tools used in farming operations --
1351     Procedures for refund -- Transfers from General Fund to Education Fund -- Rulemaking
1352     authority.
1353          (1) [For a taxable year beginning on or after January 1, 2004, a] A taxpayer may claim
1354     a refundable tax credit:
1355          (a) as provided in this section;
1356          (b) against taxes otherwise due under this chapter; and
1357          (c) in an amount equal to the amount of tax the taxpayer pays:
1358          (i) on a purchase of a hand tool:

1359          (A) if the purchase is made on or after July 1, 2004;
1360          (B) if the hand tool is used or consumed primarily and directly in a farming operation
1361     in the state; and
1362          (C) if the unit purchase price of the hand tool is more than $250; and
1363          (ii) under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
1364     (1)(c)(i).
1365          (2) A taxpayer:
1366          (a) shall retain the following to establish the amount of tax the resident or nonresident
1367     individual paid under Chapter 12, Sales and Use Tax Act, on the purchase described in
1368     Subsection (1)(c)(i):
1369          (i) a receipt;
1370          (ii) an invoice; or
1371          (iii) a document similar to a document described in Subsection (2)(a)(i) or (ii); and
1372          (b) may not carry forward or carry back a tax credit under this section.
1373          (3) (a) In accordance with any rules prescribed by the commission under Subsection
1374     (3)(b)[: (i)] the commission shall make a refund to a taxpayer that claims a tax credit under this
1375     section if the amount of the tax credit exceeds the taxpayer's tax liability under this chapter[;
1376     and].
1377          [(ii) the Division of Finance shall transfer at least annually from the General Fund into
1378     the Education Fund an amount equal to the amount of tax credit claimed under this section.]
1379          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1380     commission may make rules providing procedures for making[: (i)] a refund to a taxpayer as
1381     required by Subsection (3)(a)[(i); or].
1382          [(ii) transfers from the General Fund into the Education Fund as required by
1383     Subsection (3)(a)(ii).]
1384          Section 21. Section 59-7-618 is amended to read:
1385          59-7-618. Tax credit related to alternative fuel heavy duty vehicles.
1386          (1) As used in this section:
1387          (a) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air
1388     Conservation Act.
1389          (b) "Director" means the director of the Division of Air Quality appointed under

1390     Section 19-2-107.
1391          (c) "Heavy duty vehicle" means a commercial category 7 or 8 vehicle, according to
1392     vehicle classifications established by the Federal Highway Administration.
1393          (d) "Natural gas" includes compressed natural gas and liquified natural gas.
1394          (e) "Qualified heavy duty vehicle" means a heavy duty vehicle that:
1395          (i) has never been titled or registered and has been driven less than 7,500 miles; and
1396          (ii) is fueled by natural gas , has a 100% electric drivetrain, or has a hydrogen-electric
1397     drivetrain .
1398          (f) "Qualified purchase" means the purchase of a qualified heavy duty vehicle.
1399          (g) "Qualified taxpayer" means a taxpayer that:
1400          (i) purchases a qualified heavy duty vehicle; and
1401          (ii) receives a tax credit certificate from the director.
1402          (h) "Small fleet" means 40 or fewer heavy duty vehicles registered in the state and
1403     owned by a single taxpayer.
1404          (i) "Tax credit certificate" means a certificate issued by the director certifying that a
1405     taxpayer is entitled to a tax credit as provided in this section and stating the amount of the tax
1406     credit.
1407          (2) A qualified taxpayer may claim a nonrefundable tax credit against tax otherwise
1408     due under this chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required
1409     to Pay Corporate Franchise or Income Tax Act:
1410          (a) in an amount equal to:
1411          (i) $25,000, if the qualified purchase of a natural gas heavy duty vehicle occurs during
1412     calendar year 2015 or calendar year 2016;
1413          (ii) $25,000, if the qualified purchase occurs during calendar year 2017;
1414          (iii) $20,000, if the qualified purchase occurs during calendar year 2018;
1415          (iv) $18,000, if the qualified purchase occurs during calendar year 2019; and
1416          (v) $15,000, if the qualified purchase occurs during calendar year 2020; and
1417          (b) if the qualified taxpayer certifies under oath that over 50% of the miles that the
1418     heavy duty vehicle that is the subject of the qualified purchase will travel annually will be
1419     within the state.
1420          (3) (a) Except as provided in Subsection (3)(b), a taxpayer may not submit an

1421     application for, and the director may not issue to the taxpayer, a tax credit certificate under this
1422     section in any taxable year for a qualified purchase if the director has already issued tax credit
1423     certificates to the taxpayer for 10 qualified purchases in the same taxable year.
1424          (b) If, by May 1 of any year, more than 30% of the aggregate annual total amount of
1425     tax credits under Subsection (5) has not been claimed, a taxpayer may submit an application
1426     for, and the director may issue to the taxpayer, one or more tax credit certificates for up to eight
1427     additional qualified purchases, even if the director has already issued to that taxpayer tax credit
1428     certificates for the maximum number of qualified purchases allowed under Subsection (3)(a).
1429          (4) (a) Subject to Subsection (4)(b), the director shall reserve 25% of all tax credits
1430     available under this section for qualified taxpayers with a small fleet.
1431          (b) Subsection (4)(a) does not prevent a taxpayer from submitting an application for, or
1432     the director from issuing, a tax credit certificate if, before October 1, qualified taxpayers with a
1433     small fleet have not reserved under Subsection (5)(b) tax credits for the full amount reserved
1434     under Subsection (4)(a).
1435          (5) (a) The aggregate annual total amount of tax credits represented by tax credit
1436     certificates that the director issues under this section and Section 59-10-1033 may not exceed
1437     $500,000.
1438          (b) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative
1439     Rulemaking Act, make rules to establish a process under which a taxpayer may reserve a
1440     potential tax credit under this section for a limited time to allow the taxpayer to make a
1441     qualified purchase with the assurance that the aggregate limit under Subsection (5)(a) will not
1442     be met before the taxpayer is able to submit an application for a tax credit certificate.
1443          (6) (a) (i) A taxpayer wishing to claim a tax credit under this section shall, using forms
1444     the board requires by rule:
1445          (A) submit to the director an application for a tax credit;
1446          (B) provide the director proof of a qualified purchase; and
1447          (C) submit to the director the certification under oath required under Subsection (2)(b).
1448          (ii) Upon receiving the application, proof, and certification required under Subsection
1449     (6)(a)(i), the director shall provide the taxpayer a written statement from the director
1450     acknowledging receipt of the proof.
1451          (b) If the director determines that a taxpayer qualifies for a tax credit under this section,

1452     the director shall:
1453          (i) determine the amount of tax credit the taxpayer is allowed under this section; and
1454          (ii) provide the taxpayer with a written tax credit certificate:
1455          (A) stating that the taxpayer has qualified for a tax credit; and
1456          (B) showing the amount of tax credit for which the taxpayer has qualified under this
1457     section.
1458          (c) A qualified taxpayer shall retain the tax credit certificate.
1459          (d) The director shall at least annually submit to the commission a list of all qualified
1460     taxpayers to which the director has issued a tax credit certificate and the amount of each tax
1461     credit represented by the tax credit certificates.
1462          (7) The tax credit under this section is allowed only:
1463          (a) against a tax owed under this chapter or Chapter 8, Gross Receipts Tax on Certain
1464     Corporations Not Required to Pay Corporate Franchise or Income Tax Act, in the taxable year
1465     by the qualified taxpayer;
1466          (b) for the taxable year in which the qualified purchase occurs; and
1467          (c) once per vehicle.
1468          (8) A qualified taxpayer may not assign a tax credit or a tax credit certificate under this
1469     section to another person.
1470          (9) If the qualified taxpayer receives a tax credit certificate under this section that
1471     allows a tax credit in an amount that exceeds the qualified taxpayer's tax liability under this
1472     chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay
1473     Corporate Franchise or Income Tax Act, for a taxable year, the qualified taxpayer may carry
1474     forward the amount of the tax credit that exceeds the tax liability for a period that does not
1475     exceed the next five taxable years.
1476          [(10) (a) In accordance with any rules prescribed by the commission under Subsection
1477     (10)(b), the Division of Finance shall transfer at least annually from the General Fund into the
1478     Education Fund the aggregate amount of all tax credits claimed under this section.]
1479          [(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1480     the commission may make rules for making a transfer from the General Fund into the
1481     Education Fund as required by Subsection (10)(a).]
1482          Section 22. Section 59-7-620 is amended to read:

1483          59-7-620. Nonrefundable tax credit for contribution to state Achieving a Better
1484     Life Experience Program account.
1485          (1) As used in this section:
1486          (a) "Account" means an account in a qualified ABLE program where the designated
1487     beneficiary of the account is a resident of this state.
1488          (b) "Contributor" means a corporation that:
1489          (i) makes a contribution to an account; and
1490          (ii) receives a statement from the qualified ABLE program itemizing the contribution.
1491          (c) "Designated beneficiary" means the same as that term is defined in 26 U.S.C. Sec.
1492     529A.
1493          (d) "Qualified ABLE program" means the same as that term is defined in Section
1494     35A-12-102.
1495          (2) A contributor to an account may claim a nonrefundable tax credit as provided in
1496     this section.
1497          (3) Subject to the other provisions of this section, the tax credit is equal to the product
1498     of:
1499          (a) [5%] the percentage listed in Subsection 59-7-104(2); and
1500          (b) the total amount of contributions:
1501          (i) the contributor makes for the taxable year; and
1502          (ii) for which the contributor receives a statement from the qualified ABLE program
1503     itemizing the contributions.
1504          (4) A contributor may not claim a tax credit under this section:
1505          (a) for an amount of excess contribution to an account that is returned to the
1506     contributor; or
1507          (b) with respect to an amount the contributor deducts on a federal income tax return.
1508          (5) A tax credit under this section may not be carried forward or carried back.
1509          Section 23. Section 59-10-104 is amended to read:
1510          59-10-104. Tax basis -- Tax rate -- Exemption.
1511          (1) A tax is imposed on the state taxable income of a resident individual as provided in
1512     this section.
1513          (2) For purposes of Subsection (1), for a taxable year, the tax is an amount equal to the

1514     product of:
1515          (a) the resident individual's state taxable income for that taxable year; and
1516          (b) [4.95%] 4.66%.
1517          (3) This section does not apply to a resident individual exempt from taxation under
1518     Section 59-10-104.1.
1519          Section 24. Section 59-10-529.1 is amended to read:
1520          59-10-529.1. Time period for commission to issue a refund.
1521          (1) Except as provided in Subsection (2), the commission may not issue a refund
1522     before March 1.
1523          (2) The commission may issue a refund before March 1 if, before March 1, the
1524     commission determines that:
1525          (a) (i) an employer has filed the one or more forms in accordance with Subsection
1526     59-10-406(8) the employer is required to file with respect to an individual; and
1527          (ii) for a refund of a tax credit described in Section 59-10-1114, the Department of
1528     Workforce Services has submitted the electronic report required by Section 35A-9-214; and
1529          (b) the individual has filed a return in accordance with this chapter.
1530          Section 25. Section 59-10-1005 is amended to read:
1531          59-10-1005. Tax credit for at-home parent.
1532          (1) As used in this section:
1533          (a) "At-home parent" means a parent:
1534          (i) who provides full-time care at the parent's residence for one or more of the parent's
1535     own qualifying children;
1536          (ii) who claims [the qualifying child as a dependent on the parent's individual income
1537     tax return for the taxable year for which the parent claims the credit] a tax credit with respect to
1538     the qualifying child under Section 24, Internal Revenue Code, on the parent's federal individual
1539     income tax return for the taxable year; and
1540          (iii) if the sum of the following amounts are $3,000 or less for the taxable year for
1541     which the parent claims the credit:
1542          (A) the total wages, tips, and other compensation listed on all of the parent's federal
1543     Forms W-2; and
1544          (B) the gross income listed on the parent's federal Form 1040 Schedule C, Profit or

1545     Loss From Business.
1546          (b) "Parent" means an individual who:
1547          (i) is the biological mother or father of a qualifying child;
1548          (ii) is the stepfather or stepmother of a qualifying child;
1549          (iii) (A) legally adopts a qualifying child; or
1550          (B) has a qualifying child placed in the individual's home:
1551          (I) by a child-placing agency, as defined in Section 62A-2-101; and
1552          (II) for the purpose of legally adopting the child;
1553          (iv) is a foster parent of a qualifying child; or
1554          (v) is a legal guardian of a qualifying child.
1555          (c) "Qualifying child" means a child who is no more than 12 months of age on the last
1556     day of the taxable year for which the tax credit is claimed.
1557          (2) [For a taxable year beginning on or after January 1, 2000, a] A claimant may claim
1558     on the claimant's individual income tax return a nonrefundable tax credit of $100 for each
1559     qualifying child if:
1560          (a) the claimant or another claimant filing a joint individual income tax return with the
1561     claimant is an at-home parent; and
1562          (b) the adjusted gross income of all of the claimants filing the individual income tax
1563     return is less than or equal to $50,000.
1564          (3) A claimant may not carry forward or carry back a tax credit authorized by this
1565     section.
1566          [(4) (a) In accordance with any rules prescribed by the commission under Subsection
1567     (4)(b), the Division of Finance shall transfer at least annually from the General Fund into the
1568     Education Fund the aggregate amount of all tax credits claimed under this section.]
1569          [(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1570     the commission may make rules for making a transfer from the General Fund into the
1571     Education Fund as required by Subsection (4)(a).]
1572          Section 26. Section 59-10-1007 is amended to read:
1573          59-10-1007. Recycling market development zones tax credits.
1574          (1) Subject to other provisions of this section, a claimant, estate, or trust in a recycling
1575     market development zone as defined in Section 63N-2-402 may claim the following

1576     nonrefundable tax credits:
1577          (a) a tax credit [of 5% of] equal to the product of the percentage listed in Subsection
1578     59-10-104(2) and the purchase price paid for machinery and equipment used directly in:
1579          (i) commercial composting; or
1580          (ii) manufacturing facilities or plant units that:
1581          (A) manufacture, process, compound, or produce recycled items of tangible personal
1582     property for sale; or
1583          (B) reduce or reuse postconsumer waste material; and
1584          (b) a tax credit equal to the lesser of:
1585          (i) 20% of net expenditures to third parties for rent, wages, supplies, tools, test
1586     inventory, and utilities made by the claimant, estate, or trust for establishing and operating
1587     recycling or composting technology in Utah; and
1588          (ii) $2,000.
1589          (2) (a) To claim a tax credit described in Subsection (1), the claimant, estate, or trust
1590     shall receive from the Governor's Office of Economic Development a written certification, on a
1591     form approved by the commission, that includes:
1592          (i) a statement that the claimant, estate, or trust is operating within the boundaries of a
1593     recycling market development zone;
1594          (ii) for claims of the tax credit described in Subsection (1)(a):
1595          (A) the type of the machinery and equipment that the claimant, estate, or trust
1596     purchased;
1597          (B) the date that the claimant, estate, or trust purchased the machinery and equipment;
1598          (C) the purchase price for the machinery and equipment;
1599          (D) the total purchase price for all machinery and equipment for which the claimant,
1600     estate, or trust is claiming a tax credit;
1601          (E) the amount of the claimant's, estate's, or trust's tax credit; and
1602          (F) a statement that the machinery and equipment are integral to the composting or
1603     recycling process; and
1604          (iii) for claims of the tax credit described in Subsection (1)(b):
1605          (A) the type of net expenditure that the claimant, estate, or trust made to a third party;
1606          (B) the date that the claimant, estate, or trust made the payment to a third party;

1607          (C) the amount that the claimant, estate, or trust paid to each third party;
1608          (D) the total amount that the claimant, estate, or trust paid to all third parties;
1609          (E) a statement that the net expenditures support the establishment and operation of
1610     recycling or composting technology in Utah; and
1611          (F) the amount of the claimant's, estate's, or trust's tax credit.
1612          (b) (i) The Governor's Office of Economic Development shall provide a claimant,
1613     estate, or trust seeking to claim a tax credit under Subsection (1) with a copy of the written
1614     certification.
1615          (ii) The claimant, estate, or trust shall retain a copy of the written certification for the
1616     same period of time that a person is required to keep books and records under Section
1617     59-1-1406.
1618          (c) The Governor's Office of Economic Development shall submit to the commission
1619     an electronic list that includes:
1620          (i) the name and identifying information of each claimant, estate, or trust to which the
1621     office issues a written certification; and
1622          (ii) for each claimant, estate, or trust, the amount of each tax credit listed on the written
1623     certification.
1624          (3) A claimant, estate, or trust may not claim a tax credit under Subsection (1)(a),
1625     Subsection (1)(b), or both that exceeds 40% of the claimant's, estate's, or trust's state income
1626     tax liability as the tax liability is calculated:
1627          (a) for the taxable year in which the claimant, estate, or trust made the purchases or
1628     payments;
1629          (b) before any other tax credits the claimant, estate, or trust may claim for the taxable
1630     year; and
1631          (c) before the claimant, estate, or trust claiming a tax credit authorized by this section.
1632          (4) The commission shall make rules governing what information a claimant, estate, or
1633     trust shall file with the commission to verify the entitlement to and amount of a tax credit.
1634          (5) Except as provided in Subsections (6) through (8), a claimant, estate, or trust may
1635     carry forward, to the next three taxable years, the amount of the tax credit that exceeds the
1636     taxpayer's income tax liability for the taxable year.
1637          (6) A claimant, estate, or trust may not claim or carry forward a tax credit described in

1638     Subsection (1)(a) in a taxable year during which the claimant, estate, or trust claims or carries
1639     forward a tax credit under Section 63N-2-213.
1640          (7) A claimant, estate, or trust may not claim a tax credit described in Subsection (1)(b)
1641     in a taxable year during which the claimant, estate, or trust claims or carries forward a tax
1642     credit under Section 63N-2-213.
1643          (8) A claimant, estate, or trust may not claim or carry forward a tax credit available
1644     under this section for a taxable year during which the claimant, estate, or trust claims the
1645     targeted business income tax credit under Section 59-10-1112.
1646          Section 27. Section 59-10-1017 is amended to read:
1647          59-10-1017. Utah Educational Savings Plan tax credit.
1648          (1) As used in this section:
1649          (a) "Account owner" means the same as that term is defined in Section 53B-8a-102.
1650          (b) "Grantor trust" means the same as that term is defined in Section 53B-8a-102.5.
1651          (c) "Higher education costs" means the same as that term is defined in Section
1652     53B-8a-102.5.
1653          (d) "Joint filing status" means:
1654          (i) spouses who file one return jointly under this chapter for a taxable year; or
1655          (ii) a surviving spouse, as defined in Section (2)(a), Internal Revenue Code, who files a
1656     single federal individual income tax return for the taxable year.
1657          [(d)] (e) "Maximum amount of a qualified investment for the taxable year" means, for
1658     a taxable year, the product of [5%] the percentage listed in Subsection 59-10-104(2) and:
1659          (i) subject to Subsection (1)[(d)](e)(iii), for a claimant, estate, or trust that is an account
1660     owner, if that claimant, estate, or trust is other than [husband and wife] spouse account owners
1661     who file [a single] one return jointly, the maximum amount of a qualified investment:
1662          (A) listed in Subsection 53B-8a-106(1)(e)(ii); and
1663          (B) increased or kept for that taxable year in accordance with Subsections
1664     53B-8a-106(1)(f) and (g);
1665          (ii) subject to Subsection (1)[(d)](e)(iii), for claimants who are [husband and wife]
1666     spouse account owners who file [a single] one return jointly, the maximum amount of a
1667     qualified investment:
1668          (A) listed in Subsection 53B-8a-106(1)(e)(iii); and

1669          (B) increased or kept for that taxable year in accordance with Subsections
1670     53B-8a-106(1)(f) and (g); or
1671          (iii) for a grantor trust:
1672          (A) if the owner of the grantor trust has a single filing status or head of household
1673     filing status as defined in Section 59-10-1018, the amount described in Subsection
1674     (1)[(d)](e)(i); or
1675          (B) if the owner of the grantor trust has a joint filing status as defined in Section
1676     59-10-1018, the amount described in Subsection (1)[(d)](e)(ii).
1677          [(e)] (f) "Owner of the grantor trust" means the same as that term is defined in Section
1678     53B-8a-102.5.
1679          [(f)] (g) "Qualified investment" means the same as that term is defined in Section
1680     53B-8a-102.5.
1681          (2) Except as provided in Section 59-10-1002.2 and subject to the other provisions of
1682     this section, a claimant, estate, or trust that is an account owner may claim a nonrefundable tax
1683     credit equal to the product of:
1684          (a) the amount of a qualified investment made:
1685          (i) during the taxable year; and
1686          (ii) into an account owned by the claimant, estate, or trust; and
1687          (b) [5%] the percentage listed in Subsection 59-10-104(2).
1688          (3) A claimant, estate, or trust, or a person other than the claimant, estate, or trust, may
1689     make a qualified investment described in Subsection (2).
1690          (4) A claimant, estate, or trust that is an account owner may not claim a tax credit
1691     under this section with respect to any portion of a qualified investment described in Subsection
1692     (2) that a claimant, estate, trust, or person described in Subsection (3) deducts on a federal
1693     income tax return.
1694          (5) A tax credit under this section may not exceed the maximum amount of a qualified
1695     investment for the taxable year.
1696          (6) A claimant, estate, or trust that is an account owner may not carry forward or carry
1697     back the tax credit under this section.
1698          (7) A claimant, estate, or trust may claim a tax credit under this section in addition to
1699     the tax credit described in Section 59-10-1017.1.

1700          Section 28. Section 59-10-1017.1 is amended to read:
1701          59-10-1017.1. Student Prosperity Savings Program tax credit.
1702          (1) As used in this section, "qualified donation" means an amount donated, in
1703     accordance with Section 53B-8a-203, to the Student Prosperity Savings Program created in
1704     Section 53B-8a-202.
1705          (2) A claimant, estate, or trust may claim a nonrefundable tax credit for a qualified
1706     donation.
1707          (3) The tax credit equals the product of:
1708          (a) the qualified donation; and
1709          (b) [5%] the percentage listed in Subsection 59-10-104(2).
1710          (4) A claimant, estate, or trust may not claim a tax credit under this section with
1711     respect to any portion of a qualified donation that a claimant, estate, or trust deducts on a
1712     federal income tax return.
1713          (5) A claimant, estate, or trust may not carry forward or carry back the portion of the
1714     tax credit allowed by this section that exceeds the claimant's, estate's, or trust's tax liability for
1715     the taxable year in which the claimant, estate, or trust claims the tax credit.
1716          (6) A claimant, estate, or trust may claim a tax credit under this section in addition to
1717     the tax credit described in Section 59-10-1017.
1718          Section 29. Section 59-10-1018 is amended to read:
1719          59-10-1018. Definitions -- Nonrefundable taxpayer tax credits.
1720          (1) As used in this section:
1721          (a) "Head of household filing status" means a head of household, as defined in Section
1722     2(b), Internal Revenue Code, who files [a single] one federal individual income tax return for
1723     the taxable year.
1724          (b) "Joint filing status" means[: (i)] spouses who file [a single] one return jointly under
1725     this chapter for a taxable year[; or].
1726          [(ii) a surviving spouse, as defined in Section 2(a), Internal Revenue Code, who files a
1727     single federal individual income tax return for the taxable year.]
1728          (c) "Qualifying dependent" means an individual with respect to whom the claimant is
1729     allowed to claim a tax credit under Section 24, Internal Revenue Code, on the claimant's
1730     federal individual income tax return for the taxable year.

1731          (d) "Qualifying widower filing status" means a surviving spouse, as defined in Section
1732     (2)(a), Internal Revenue Code, who files a single federal individual income tax return for the
1733     taxable year.
1734          [(d)] (e) "Single filing status" means:
1735          (i) a single individual who files a single federal individual income tax return for the
1736     taxable year; or
1737          (ii) a married individual who:
1738          (A) does not file a single federal individual income tax return jointly with that married
1739     individual's spouse for the taxable year; and
1740          (B) files a single federal individual income tax return for the taxable year.
1741          [(e)] (f) "State or local income tax" means the lesser of:
1742          (i) the amount of state or local income tax that the claimant:
1743          (A) pays for the taxable year; and
1744          (B) reports on the claimant's federal individual income tax return for the taxable year,
1745     regardless of whether the claimant is allowed an itemized deduction on the claimant's federal
1746     individual income tax return for the taxable year for the full amount of state or local income tax
1747     paid; and
1748          (ii) $10,000.
1749          [(f)] (g) (i) "Utah itemized deduction" means the amount the claimant deducts as
1750     allowed as an itemized deduction on the claimant's federal individual income tax return for that
1751     taxable year minus any amount of state or local income tax for the taxable year.
1752          (ii) "Utah itemized deduction" does not include any amount of qualified business
1753     income that the claimant subtracts as allowed by Section 199A, Internal Revenue Code, on the
1754     claimant's federal income tax return for that taxable year.
1755          [(g)] (h) "Utah personal exemption" means, subject to Subsection (6), [$565] $2,500
1756     multiplied by [the number of the claimant's qualifying dependents.]:
1757          (i) for a claimant who has a joint filing status and no qualifying dependents, one; or
1758          (ii) for a claimant who has qualifying dependents, the number of the claimant's
1759     qualifying dependents.
1760          (2) Except as provided in Section 59-10-1002.2, and subject to Subsections (3) through
1761     (5), a claimant may claim a nonrefundable tax credit against taxes otherwise due under this part

1762     equal to the sum of:
1763          (a) (i) for a claimant that deducts the standard deduction on the claimant's federal
1764     individual income tax return for the taxable year, 6% of the amount the claimant deducts as
1765     allowed as the standard deduction on the claimant's federal individual income tax return for
1766     that taxable year; or
1767          (ii) for a claimant that itemizes deductions on the claimant's federal individual income
1768     tax return for the taxable year, 6% of the amount of the claimant's Utah itemized deduction;
1769     and
1770          (b) 6% of the claimant's Utah personal exemption.
1771          (3) A claimant may not carry forward or carry back a tax credit under this section.
1772          (4) The tax credit allowed by Subsection (2) shall be reduced by $.013 for each dollar
1773     by which a claimant's state taxable income exceeds:
1774          (a) for a claimant who has a single filing status, [$12,000] $14,879;
1775          (b) for a claimant who has a head of household filing status, [$18,000] $22,318; or
1776          (c) for a claimant who has a joint filing status[, $24,000] or a qualifying widower filing
1777     status, $29,758.
1778          (5) (a) For a taxable year beginning on or after January 1, [2009] 2021, the commission
1779     shall increase or decrease annually the following dollar amounts by a percentage equal to the
1780     percentage difference between the consumer price index for the preceding calendar year and
1781     the consumer price index for calendar year [2007] 2019:
1782          (i) the dollar amount listed in Subsection (4)(a); and
1783          (ii) the dollar amount listed in Subsection (4)(b).
1784          (b) After the commission increases or decreases the dollar amounts listed in Subsection
1785     (5)(a), the commission shall round those dollar amounts listed in Subsection (5)(a) to the
1786     nearest whole dollar.
1787          (c) After the commission rounds the dollar amounts as required by Subsection (5)(b),
1788     the commission shall increase or decrease the dollar amount listed in Subsection (4)(c) so that
1789     the dollar amount listed in Subsection (4)(c) is equal to the product of:
1790          (i) the dollar amount listed in Subsection (4)(a); and
1791          (ii) two.
1792          (d) For purposes of Subsection (5)(a), the commission shall calculate the consumer

1793     price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
1794          (6) (a) For a taxable year beginning on or after January 1, [2019] 2021, the commission
1795     shall increase annually the Utah personal exemption amount listed in Subsection (1)[(g)](h) by
1796     a percentage equal to the percentage by which the consumer price index for the preceding
1797     calendar year exceeds the consumer price index for calendar year [2017] 2019.
1798          (b) After the commission increases the Utah personal exemption amount as described
1799     in Subsection (6)(a), the commission shall round the Utah personal exemption amount to the
1800     nearest whole dollar.
1801          (c) For purposes of Subsection (6)(a), the commission shall calculate the consumer
1802     price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
1803          Section 30. Section 59-10-1018.1 is enacted to read:
1804          59-10-1018.1. Taxpayer tax credit rebate.
1805          (1) As used in this section:
1806          (a) "Head of household filing status" means the same as that term is defined in Section
1807     59-10-1018.
1808          (b) "Joint filing status" means the same as that term is defined in Section 59-10-1018.
1809          (c) "Qualifying dependent" means the same as that term is defined in Section
1810     59-10-1018.
1811          (d) "Qualifying filer" means a person who files a return under this chapter:
1812          (i) (A) for a taxable year beginning on or after January 1, 2018, and on or before
1813     December 31, 2018; and
1814          (B) on or before the deadline described in Section 59-10-516; or
1815          (ii) (A) for a taxable year beginning on or after January 1, 2019, and on or before
1816     December 31, 2019; and
1817          (B) on or before the deadline described in Section 59-10-514.
1818          (e) "Qualifying widower filing status" means the same as that term is defined in
1819     Section 59-10-1018.
1820          (f) "Single filing status" means the same as that term is defined in Section 59-10-1018.
1821          (g) "Utah personal exemption rebate" means $1,285 multiplied by the number of the
1822     claimant's qualifying dependents.
1823          (2) Subject to the other provisions of this section, the commission shall provide a

1824     rebate to each qualifying filer equal to the lesser of:
1825          (a) the qualifying filer's tax liability for:
1826          (i) the taxable year beginning on or after January 1, 2018, and on or before December
1827     31, 2018; or
1828          (ii) if the claimant did not file a return under this chapter for the taxable year described
1829     in Subsection (2)(a), the taxable year beginning on or after January 1, 2019, and on or before
1830     December 31, 2019; and
1831          (b) 6% of the claimant's Utah personal exemption rebate.
1832          (3) The rebate described in Subsection (2) is reduced by $.013 for each dollar by which
1833     the claimant's state taxable income exceeds:
1834          (a) for a claimant who has a single filing status, $14,879;
1835          (b) for a claimant who has a head of household filing status, $22,318; or
1836          (c) for a claimant who has a joint filing status or a qualifying widower filing status,
1837     $29,758.
1838          (4) For each return filed under this chapter, no more than one qualifying filer may
1839     receive a rebate under this section.
1840          (5) The commission shall provide a qualifying filer who is a nonresident individual or
1841     a part-year resident individual an apportioned amount of the rebate described in this section
1842     equal to:
1843          (a) for a nonresident individual, the product of:
1844          (i) the state income tax percentage for the nonresident individual; and
1845          (ii) the amount of the rebate that the commission would have provided the nonresident
1846     individual but for the apportionment requirements described in this subsection; or
1847          (b) for a part-year resident individual, the product of:
1848          (i) the state income tax percentage for the part-year resident individual; and
1849          (ii) the amount of the rebate that the commission would have provided the part-year
1850     resident individual but for the apportionment requirements described in this subsection.
1851          (6) If the value of a qualifying filer's rebate under this section is less than $25, the
1852     qualifying filer is not eligible to receive the rebate.
1853          (7) The commission shall comply with Subsection (2) on or before:
1854          (a) April 1, 2020; or

1855          (b) if the claimant did not file a return under this chapter for the taxable year beginning
1856     on or after January 1, 2018, and on or before December 31, 2018, July 1, 2020.
1857          Section 31. Section 59-10-1019 is amended to read:
1858          59-10-1019. Definitions -- Nonrefundable retirement tax credit.
1859          (1) As used in this section:
1860          (a) "Eligible over age 65 [or older] retiree" means a claimant, regardless of whether
1861     that claimant is retired, who[: (i) is 65 years of age or older; and (ii)] was born on or before
1862     December 31, 1952.
1863          [(b) (i) "Eligible retirement income" means income received by an eligible under age
1864     65 retiree as a pension or annuity if that pension or annuity is:]
1865          [(A) paid to the eligible under age 65 retiree or the surviving spouse of an eligible
1866     under age 65 retiree; and]
1867          [(B) (I) paid from an annuity contract purchased by an employer under a plan that
1868     meets the requirements of Section 404(a)(2), Internal Revenue Code;]
1869          [(II) purchased by an employee under a plan that meets the requirements of Section
1870     408, Internal Revenue Code; or]
1871          [(III) paid by:]
1872          [(Aa) the United States;]
1873          [(Bb) a state or a political subdivision of a state; or]
1874          [(Cc) the District of Columbia.]
1875          [(ii) "Eligible retirement income" does not include amounts received by the spouse of a
1876     living eligible under age 65 retiree because of the eligible under age 65 retiree's having been
1877     employed in a community property state.]
1878          [(c) "Eligible under age 65 retiree" means a claimant, regardless of whether that
1879     claimant is retired, who:]
1880          [(i) is younger than 65 years of age;]
1881          [(ii) was born on or before December 31, 1952; and]
1882          [(iii) has eligible retirement income for the taxable year for which a tax credit is
1883     claimed under this section.]
1884          [(d)] (b) "Head of household filing status" [is as] means the same as that term is
1885     defined in Section 59-10-1018.

1886          [(e) "Joint filing status" is as defined in Section 59-10-1018.]
1887          (c) "Joint filing status" means:
1888          (i) spouses who file one return jointly under this chapter for a taxable year; or
1889          (ii) a surviving spouse, as defined in Section (2)(a), Internal Revenue Code, who files a
1890     single federal individual income tax return for the taxable year.
1891          [(f)] (d) "Married filing separately status" means a married individual who:
1892          (i) does not file a single federal individual income tax return jointly with that married
1893     individual's spouse for the taxable year; and
1894          (ii) files a single federal individual income tax return for the taxable year.
1895          [(g)] (e) "Modified adjusted gross income" means the sum of an eligible over age 65
1896     [or older retiree's or eligible under age 65 retiree's] retiree's:
1897          (i) adjusted gross income for the taxable year for which a tax credit is claimed under
1898     this section;
1899          (ii) any interest income that is not included in adjusted gross income for the taxable
1900     year described in Subsection (1)[(g)](e)(i); and
1901          (iii) any addition to adjusted gross income required by Section 59-10-114 for the
1902     taxable year described in Subsection (1)[(g)](e)(i).
1903          [(h)] (f) "Single filing status" means a single individual who files a single federal
1904     individual income tax return for the taxable year.
1905          (2) Except as provided in Section 59-10-1002.2 [and subject to Subsections (3) through
1906     (5): (a)] and Subsections (3) and (4), each eligible over age 65 [or older] retiree may claim a
1907     nonrefundable tax credit of $450 against taxes otherwise due under this part[; or].
1908          [(b) each eligible under age 65 retiree may claim a nonrefundable tax credit against
1909     taxes otherwise due under this part in an amount equal to the lesser of:]
1910          [(i) $288; or]
1911          [(ii) the product of:]
1912          [(A) the eligible under age 65 retiree's eligible retirement income for the taxable year
1913     for which the eligible under age 65 retiree claims a tax credit under this section; and]
1914          [(B) 6%.]
1915          [(3) A tax credit under this section may not be carried forward or carried back.]
1916          (3) An eligible over age 65 retiree may not:

1917          (a) carry forward or carry back a tax credit under this section; or
1918          (b) claim a tax credit under this section if a tax credit is claimed under Section
1919     59-10-1041 on the same return.
1920          (4) The [sum of the tax credits] tax credit allowed by Subsection (2) claimed on [one] a
1921     return filed under this part shall be reduced by $.025 for each dollar by which modified
1922     adjusted gross income for purposes of the return exceeds:
1923          (a) for a federal individual income tax return that is allowed a married filing separately
1924     status, $16,000;
1925          (b) for a federal individual income tax return that is allowed a single filing status,
1926     $25,000;
1927          (c) for a federal individual income tax return that is allowed a head of household filing
1928     status, $32,000; or
1929          (d) for a return under this chapter that is allowed a joint filing status, $32,000.
1930          [(5) For purposes of determining the ownership of items of retirement income under
1931     this section, common law doctrine shall be applied in all cases even though some items of
1932     retirement income may have originated from service or investments in a community property
1933     state.]
1934          Section 32. Section 59-10-1022 is amended to read:
1935          59-10-1022. Nonrefundable tax credit for capital gain transactions.
1936          (1) As used in this section:
1937          (a) (i) "Capital gain transaction" means a transaction that results in a:
1938          (A) short-term capital gain; or
1939          (B) long-term capital gain.
1940          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1941     commission may by rule define the term "transaction."
1942          (b) "Commercial domicile" means the principal place from which the trade or business
1943     of a Utah small business corporation is directed or managed.
1944          (c) "Long-term capital gain" is as defined in Section 1222, Internal Revenue Code.
1945          (d) "Qualifying stock" means stock that is:
1946          (i) (A) common; or
1947          (B) preferred;

1948          (ii) as defined by the commission by rule made in accordance with Title 63G, Chapter
1949     3, Utah Administrative Rulemaking Act, originally issued to:
1950          (A) a claimant, estate, or trust; or
1951          (B) a partnership if the claimant, estate, or trust that claims a tax credit under this
1952     section:
1953          (I) was a partner on the day on which the stock was issued; and
1954          (II) remains a partner until the last day of the taxable year for which the claimant,
1955     estate, or trust claims a tax credit under this section; and
1956          (iii) issued:
1957          (A) by a Utah small business corporation;
1958          (B) on or after January 1, 2008; and
1959          (C) for:
1960          (I) money; or
1961          (II) other property, except for stock or securities.
1962          (e) "Short-term capital gain" is as defined in Section 1222, Internal Revenue Code.
1963          (f) (i) "Utah small business corporation" means a corporation that:
1964          (A) except as provided in Subsection (1)(f)(ii), is a small business corporation as
1965     defined in Section 1244(c)(3), Internal Revenue Code;
1966          (B) except as provided in Subsection (1)(f)(iii), meets the requirements of Section
1967     1244(c)(1)(C), Internal Revenue Code; and
1968          (C) has its commercial domicile in this state.
1969          (ii) The dollar amount listed in Section 1244(c)(3)(A) is considered to be $2,500,000.
1970          (iii) The phrase "the date the loss on such stock was sustained" in Sections
1971     1244(c)(1)(C) and 1244(c)(2), Internal Revenue Code, is considered to be "the last day of the
1972     taxable year for which the claimant, estate, or trust claims a tax credit under this section."
1973          (2) For taxable years beginning on or after January 1, 2008, a claimant, estate, or trust
1974     that meets the requirements of Subsection (3) may claim a nonrefundable tax credit equal to the
1975     product of:
1976          (a) the total amount of the claimant's, estate's, or trust's short-term capital gain or
1977     long-term capital gain on a capital gain transaction that occurs on or after January 1, 2008; and
1978          (b) [5%] the percentage listed in Subsection 59-10-104(2).

1979          (3) For purposes of Subsection (2), a claimant, estate, or trust may claim the
1980     nonrefundable tax credit allowed by Subsection (2) if:
1981          (a) 70% or more of the gross proceeds of the capital gain transaction are expended:
1982          (i) to purchase qualifying stock in a Utah small business corporation; and
1983          (ii) within a 12-month period after the day on which the capital gain transaction occurs;
1984     and
1985          (b) prior to the purchase of the qualifying stock described in Subsection (3)(a)(i), the
1986     claimant, estate, or trust did not have an ownership interest in the Utah small business
1987     corporation that issued the qualifying stock.
1988          (4) A claimant, estate, or trust may not carry forward or carry back a tax credit under
1989     this section.
1990          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1991     commission may make rules:
1992          (a) defining the term "gross proceeds"; and
1993          (b) prescribing the circumstances under which a claimant, estate, or trust has an
1994     ownership interest in a Utah small business corporation.
1995          Section 33. Section 59-10-1023 is amended to read:
1996          59-10-1023. Nonrefundable tax credit for amounts paid under a health benefit
1997     plan.
1998          (1) As used in this section:
1999          (a) "Claimant with dependents" means a claimant:
2000          (i) regardless of the claimant's filing status for purposes of filing a federal individual
2001     income tax return for the taxable year; and
2002          (ii) who claims [one or more dependents under Section 151] a tax credit under Section
2003     24, Internal Revenue Code, [as allowed] on the claimant's federal individual income tax return
2004     for the taxable year.
2005          (b) "Eligible insured individual" means:
2006          (i) the claimant who is insured under a health benefit plan;
2007          (ii) the spouse of the claimant described in Subsection (1)(b)(i) if:
2008          (A) the claimant files [a single] one return jointly under this chapter with the claimant's
2009     spouse for the taxable year; and

2010          (B) the spouse is insured under the health benefit plan described in Subsection
2011     (1)(b)(i); or
2012          (iii) a dependent of the claimant described in Subsection (1)(b)(i) if:
2013          (A) the claimant claims the dependent under Section 151, Internal Revenue Code, as
2014     allowed on the claimant's federal individual income tax return for the taxable year; and
2015          (B) the dependent is insured under the health benefit plan described in Subsection
2016     (1)(b)(i).
2017          (c) "Excluded expenses" means an amount a claimant pays for insurance offered under
2018     a health benefit plan for a taxable year if:
2019          (i) the claimant claims a tax credit for that amount under Section 35, Internal Revenue
2020     Code:
2021          (A) on the claimant's federal individual income tax return for the taxable year; and
2022          (B) with respect to an eligible insured individual;
2023          (ii) the claimant deducts that amount under Section 162 or 213, Internal Revenue
2024     Code:
2025          (A) on the claimant's federal individual income tax return for the taxable year; and
2026          (B) with respect to an eligible insured individual; or
2027          (iii) the claimant excludes that amount from gross income under Section 106 or 125,
2028     Internal Revenue Code, with respect to an eligible insured individual.
2029          (d) (i) "Health benefit plan" is as defined in Section 31A-1-301.
2030          (ii) "Health benefit plan" does not include equivalent self-insurance as defined by the
2031     Insurance Department by rule made in accordance with Title 63G, Chapter 3, Utah
2032     Administrative Rulemaking Act.
2033          (e) "Joint claimant with no dependents" means [a husband and wife] spouses who:
2034          (i) file [a single] one return jointly under this chapter for the taxable year; and
2035          (ii) do not claim a dependent under Section 151, Internal Revenue Code, on the
2036     [husband's and wife's] spouses' federal individual income tax return for the taxable year.
2037          (f) "Single claimant with no dependents" means:
2038          (i) a single individual who:
2039          (A) files a single federal individual income tax return for the taxable year; and
2040          (B) does not claim a dependent under Section 151, Internal Revenue Code, on the

2041     single individual's federal individual income tax return for the taxable year;
2042          (ii) a head of household:
2043          (A) as defined in Section 2(b), Internal Revenue Code, who files a single federal
2044     individual income tax return for the taxable year; and
2045          (B) who does not claim a dependent under Section 151, Internal Revenue Code, on the
2046     head of household's federal individual income tax return for the taxable year; or
2047          (iii) a married individual who:
2048          (A) does not file a single federal individual income tax return jointly with that married
2049     individual's spouse for the taxable year; and
2050          (B) does not claim a dependent under Section 151, Internal Revenue Code, on that
2051     married individual's federal individual income tax return for the taxable year.
2052          (2) Subject to Subsection (3), and except as provided in Subsection (4), [for taxable
2053     years beginning on or after January 1, 2009,] a claimant may claim a nonrefundable tax credit
2054     equal to the product of:
2055          (a) the difference between:
2056          (i) the total amount the claimant pays during the taxable year for:
2057          (A) insurance offered under a health benefit plan; and
2058          (B) an eligible insured individual; and
2059          (ii) excluded expenses; and
2060          (b) [5%] the percentage listed in Subsection 59-10-104(2).
2061          (3) The maximum amount of a tax credit described in Subsection (2) a claimant may
2062     claim on a return for a taxable year is:
2063          (a) for a single claimant with no dependents, $300;
2064          (b) for a joint claimant with no dependents, $600; or
2065          (c) for a claimant with dependents, $900.
2066          (4) A claimant may not claim a tax credit under this section if the claimant is eligible to
2067     participate in insurance offered under a health benefit plan maintained and funded in whole or
2068     in part by:
2069          (a) the claimant's employer; or
2070          (b) another person's employer.
2071          (5) A claimant may not carry forward or carry back a tax credit under this section.

2072          Section 34. Section 59-10-1028 is amended to read:
2073          59-10-1028. Nonrefundable tax credit for capital gain transactions on the
2074     exchange of one form of legal tender for another form of legal tender.
2075          (1) As used in this section:
2076          (a) "Capital gain transaction" means a transaction that results in a:
2077          (i) short-term capital gain; or
2078          (ii) long-term capital gain.
2079          (b) "Long-term capital gain" [is as defined] means the same as that term is defined in
2080     Section 1222, Internal Revenue Code.
2081          (c) "Long-term capital loss" [is as defined] means the same as that term is defined in
2082     Section 1222, Internal Revenue Code.
2083          (d) "Net capital gain" means the amount by which the sum of long-term capital gains
2084     and short-term capital gains on a claimant's, estate's, or trust's transactions from exchanges
2085     made for a taxable year of one form of legal tender for another form of legal tender exceeds the
2086     sum of long-term capital losses and short-term capital losses on those transactions for that
2087     taxable year.
2088          (e) "Short-term capital loss" [is as defined] means the same as that term is defined in
2089     Section 1222, Internal Revenue Code.
2090          (f) "Short-term capital gain" [is as defined] means the same as that term is defined in
2091     Section 1222, Internal Revenue Code.
2092          (2) Except as provided in Section 59-10-1002.2, [for taxable years beginning on or
2093     after January 1, 2012,] a claimant, estate, or trust may claim a nonrefundable tax credit equal to
2094     the product of:
2095          (a) to the extent a net capital gain is included in taxable income, the amount of the
2096     claimant's, estate's, or trust's net capital gain on capital gain transactions from exchanges made
2097     on or after January 1, 2012, for a taxable year, of one form of legal tender for another form of
2098     legal tender; and
2099          (b) [5%] the percentage listed in Subsection 59-10-104(2).
2100          (3) A claimant, estate, or trust may not carry forward or carry back a tax credit under
2101     this section.
2102          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the

2103     commission may make rules to implement this section.
2104          Section 35. Section 59-10-1033 is amended to read:
2105          59-10-1033. Tax credit related to alternative fuel heavy duty vehicles.
2106          (1) As used in this section:
2107          (a) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air
2108     Conservation Act.
2109          (b) "Director" means the director of the Division of Air Quality appointed under
2110     Section 19-2-107.
2111          (c) "Heavy duty vehicle" means a commercial category 7 or 8 vehicle, according to
2112     vehicle classifications established by the Federal Highway Administration.
2113          (d) "Natural gas" includes compressed natural gas and liquified natural gas.
2114          (e) "Qualified heavy duty vehicle" means a heavy duty vehicle that:
2115          (i) has never been titled or registered and has been driven less than 7,500 miles; and
2116          (ii) is fueled by natural gas , has a 100% electric drivetrain, or has a hydrogen-electric
2117     drivetrain.
2118          (f) "Qualified purchase" means the purchase of a qualified heavy duty vehicle.
2119          (g) "Qualified taxpayer" means a claimant, estate, or trust that:
2120          (i) purchases a qualified heavy duty vehicle; and
2121          (ii) receives a tax credit certificate from the director.
2122          (h) "Small fleet" means 40 or fewer heavy duty vehicles registered in the state and
2123     owned by a single claimant, estate, or trust.
2124          (i) "Tax credit certificate" means a certificate issued by the director certifying that a
2125     claimant, estate, or trust is entitled to a tax credit as provided in this section and stating the
2126     amount of the tax credit.
2127          (2) A qualified taxpayer may claim a nonrefundable tax credit against tax otherwise
2128     due under this chapter:
2129          (a) in an amount equal to:
2130          (i) $25,000, if the qualified purchase of a natural gas heavy duty vehicle occurs during
2131     calendar year 2015 or calendar year 2016;
2132          (ii) $25,000, if the qualified purchase occurs during calendar year 2017;
2133          (iii) $20,000, if the qualified purchase occurs during calendar year 2018;

2134          (iv) $18,000, if the qualified purchase occurs during calendar year 2019; and
2135          (v) $15,000, if the qualified purchase occurs during calendar year 2020; and
2136          (b) if the qualified taxpayer certifies under oath that over 50% of the miles that the
2137     heavy duty vehicle that is the subject of the qualified purchase will travel annually will be
2138     within the state.
2139          (3) (a) Except as provided in Subsection (3)(b), a claimant, estate, or trust may not
2140     submit an application for, and the director may not issue to the claimant, estate, or trust, a tax
2141     credit certificate under this section in any taxable year for a qualified purchase if the director
2142     has already issued tax credit certificates to the claimant, estate, or trust for 10 qualified
2143     purchases in the same taxable year.
2144          (b) If, by May 1 of any year, more than 30% of the aggregate annual total amount of
2145     tax credits under Subsection (5) has not been claimed, a claimant, estate, or trust may submit
2146     an application for, and the director may issue to the claimant, estate, or trust, one or more tax
2147     credit certificates for up to eight additional qualified purchases, even if the director has already
2148     issued to that claimant, estate, or trust tax credit certificates for the maximum number of
2149     qualified purchases allowed under Subsection (3)(a).
2150          (4) (a) Subject to Subsection (4)(b), the director shall reserve 25% of all tax credits
2151     available under this section for qualified taxpayers with a small fleet.
2152          (b) Subsection (4)(a) does not prevent a claimant, estate, or trust from submitting an
2153     application for, or the director from issuing, a tax credit certificate if, before October 1,
2154     qualified taxpayers with a small fleet have not reserved under Subsection (5)(b) tax credits for
2155     the full amount reserved under Subsection (4)(a).
2156          (5) (a) The aggregate annual total amount of tax credits represented by tax credit
2157     certificates that the director issues under this section and Section 59-7-618 may not exceed
2158     $500,000.
2159          (b) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative
2160     Rulemaking Act, make rules to establish a process under which a claimant, estate, or trust may
2161     reserve a potential tax credit under this section for a limited time to allow the claimant, estate,
2162     or trust to make a qualified purchase with the assurance that the aggregate limit under
2163     Subsection (5)(a) will not be met before the claimant, estate, or trust is able to submit an
2164     application for a tax credit certificate.

2165          (6) (a) (i) A claimant, estate, or trust wishing to claim a tax credit under this section
2166     shall, using forms the board requires by rule:
2167          (A) submit to the director an application for a tax credit;
2168          (B) provide the director proof of a qualified purchase; and
2169          (C) submit to the director the certification under oath required under Subsection (2)(b).
2170          (ii) Upon receiving the application, proof, and certification required under Subsection
2171     (6)(a)(i), the director shall provide the claimant, estate, or trust a written statement from the
2172     director acknowledging receipt of the proof.
2173          (b) If the director determines that a claimant, estate, or trust qualifies for a tax credit
2174     under this section, the director shall:
2175          (i) determine the amount of tax credit the claimant, estate, or trust is allowed under this
2176     section; and
2177          (ii) provide the claimant, estate, or trust with a written tax credit certificate:
2178          (A) stating that the claimant, estate, or trust has qualified for a tax credit; and
2179          (B) showing the amount of tax credit for which the claimant, estate, or trust has
2180     qualified under this section.
2181          (c) A qualified taxpayer shall retain the tax credit certificate.
2182          (d) The director shall at least annually submit to the commission a list of all qualified
2183     taxpayers to which the director has issued a tax credit certificate and the amount of each tax
2184     credit represented by the tax credit certificates.
2185          (7) The tax credit under this section is allowed only:
2186          (a) against a tax owed under this chapter in the taxable year by the qualified taxpayer;
2187          (b) for the taxable year in which the qualified purchase occurs; and
2188          (c) once per vehicle.
2189          (8) A qualified taxpayer may not assign a tax credit or a tax credit certificate under this
2190     section to another person.
2191          (9) If the qualified taxpayer receives a tax credit certificate under this section that
2192     allows a tax credit in an amount that exceeds the qualified taxpayer's tax liability under this
2193     chapter for a taxable year, the qualified taxpayer may carry forward the amount of the tax credit
2194     that exceeds the tax liability for a period that does not exceed the next five taxable years.
2195          [(10) (a) In accordance with any rules prescribed by the commission under Subsection

2196     (10)(b), the Division of Finance shall transfer at least annually from the General Fund into the
2197     Education Fund the aggregate amount of all tax credits claimed under this section.]
2198          [(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2199     the commission may make rules for making a transfer from the General Fund into the
2200     Education Fund as required by Subsection (10)(a).]
2201          Section 36. Section 59-10-1035 is amended to read:
2202          59-10-1035. Nonrefundable tax credit for contribution to state Achieving a Better
2203     Life Experience Program account.
2204          (1) As used in this section:
2205          (a) "Account" means an account in a qualified ABLE program where the designated
2206     beneficiary of the account is a resident of this state.
2207          (b) "Contributor" means a claimant, estate, or trust that:
2208          (i) makes a contribution to an account; and
2209          (ii) receives a statement from the qualified ABLE program itemizing the contribution.
2210          (c) "Designated beneficiary" means the same as that term is defined in 26 U.S.C. Sec.
2211     529A.
2212          (d) "Qualified ABLE program" means the same as that term is defined in Section
2213     35A-12-102.
2214          (2) A contributor to an account may claim a nonrefundable tax credit as provided in
2215     this section.
2216          (3) Subject to the other provisions of this section, the tax credit is equal to the product
2217     of:
2218          (a) [5%] the percentage listed in Subsection 59-10-104(2); and
2219          (b) the total amount of contributions:
2220          (i) the contributor makes for the taxable year; and
2221          (ii) for which the contributor receives a statement from the qualified ABLE program
2222     itemizing the contributions.
2223          (4) A contributor may not claim a tax credit under this section:
2224          (a) for an amount of excess contribution to an account that is returned to the
2225     contributor; or
2226          (b) with respect to an amount the contributor deducts on a federal income tax return.

2227          (5) A tax credit under this section may not be carried forward or carried back.
2228          Section 37. Section 59-10-1036 is amended to read:
2229          59-10-1036. Nonrefundable tax credit for military survivor benefits.
2230          (1) As used in this section:
2231          (a) "Dependent child" means the same as that term is defined in 10 U.S.C. Sec. 1447.
2232          (b) "Reserve components" means the same as that term is described in 10 U.S.C. Sec.
2233     10101.
2234          (c) "Surviving spouse" means the same as that term is defined in 10 U.S.C. Sec. 1447.
2235          (d) "Survivor benefits" means the amount paid by the federal government in
2236     accordance with 10 U.S.C. Secs. 1447 through 1455.
2237          (2) A surviving spouse or dependent child may claim a nonrefundable tax credit for
2238     survivor benefits if the benefits are paid due to:
2239          (a) the death of a member of the armed forces or reserve components while on active
2240     duty; or
2241          (b) the death of a member of the reserve components that results from a
2242     service-connected cause while performing inactive duty training.
2243          (3) The tax credit described in Subsection (2) is equal to the product of:
2244          (a) the amount of survivor benefits that the surviving spouse or dependent child
2245     received during the taxable year; and
2246          (b) [5%] the percentage listed in Subsection 59-10-104(2).
2247          (4) The tax credit described in Subsection (2):
2248          (a) may not be carried forward or carried back; and
2249          (b) applies to a taxable year beginning on or after January 1, 2017.
2250          Section 38. Section 59-10-1041 is enacted to read:
2251          59-10-1041. Nonrefundable tax credit for social security benefits.
2252          (1) As used in this section:
2253          (a) "Head of household filing status" means the same as that term is defined in Section
2254     59-10-1018.
2255          (b) "Joint filing status" means:
2256          (i) spouses who file one return jointly under this chapter for a taxable year; or
2257          (ii) a surviving spouse, as defined in Section (2)(a), Internal Revenue Code, who files a

2258     single federal individual income tax return for the taxable year.
2259          (c) "Married filing separately status" means a married individual who:
2260          (i) does not file a single federal individual income tax return jointly with that married
2261     individual's spouse for the taxable year; and
2262          (ii) files a single federal individual income tax return for the taxable year.
2263          (d) "Modified adjusted gross income" means the sum of a claimant's:
2264          (i) adjusted gross income for the taxable year for which a tax credit is claimed under
2265     this section;
2266          (ii) any interest income that is not included in adjusted gross income for the taxable
2267     year described in Subsection (1)(d)(i); and
2268          (iii) any addition to adjusted gross income required by Section 59-10-114 for the
2269     taxable year described in Subsection (1)(d)(i).
2270          (e) "Single filing status" means a single individual who files a single federal individual
2271     income tax return for the taxable year.
2272          (f) "Social security benefit" means an amount received by a claimant as a monthly
2273     benefit in accordance with the Social Security Act, 42 U.S.C. Sec. 401 et seq.
2274          (2) Except as provided in Section 59-10-1002.2 and Subsections (3) and (4), a claimant
2275     may claim a nonrefundable tax credit against taxes otherwise due under this part equal to the
2276     product of:
2277          (a) the percentage listed in Subsection 59-10-104(2); and
2278          (b) the claimant's social security benefit that is included in adjusted gross income on
2279     the claimant's federal income tax return for the taxable year.
2280          (3) A claimant may not:
2281          (a) carry forward or carry back a tax credit under this section; or
2282          (b) claim a tax credit under this section if a tax credit is claimed under Section
2283     59-10-1019 on the same return.
2284          (4) The tax credit allowed by Subsection (2) claimed on a return filed under this part
2285     shall be reduced by $.025 for each dollar by which modified adjusted gross income for
2286     purposes of the return exceeds:
2287          (a) for a return that has a married filing separately status, $24,000;
2288          (b) for a return that has a single filing status, $30,000;

2289          (c) for a return that has a head of household filing status, $48,000; or
2290          (d) for a return that has a joint filing status, $48,000.
2291          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2292     commission may make rules governing the calculation and method for claiming a tax credit
2293     described in this section.
2294          Section 39. Section 59-10-1102.1 is enacted to read:
2295          59-10-1102.1. Apportionment of tax credit.
2296          (1) A part-year resident individual who claims the tax credit described in Section
2297     59-10-1113 may only claim an apportioned amount of the tax credit equal to the product of:
2298          (a) the state income tax percentage for the part-year resident individual; and
2299          (b) the amount of the tax credit that the part-year resident individual would have been
2300     allowed to claim but for the apportionment requirement of this section.
2301          (2) A nonresident individual or a part-year resident individual who claims the tax credit
2302     described in Section 59-10-1114 may only claim an apportioned amount of the tax credit equal
2303     to the product of:
2304          (a) the state income tax percentage for the nonresident individual or the state income
2305     tax percentage for the part-year resident individual; and
2306          (b) the amount of the tax credit that the nonresident individual or the part-year resident
2307     individual would have been allowed to claim but for the apportionment requirement of this
2308     section.
2309          Section 40. Section 59-10-1105 is amended to read:
2310          59-10-1105. Tax credit for hand tools used in farming operations -- Procedures
2311     for refund -- Transfers from General Fund to Education Fund -- Rulemaking authority.
2312          (1) [For a taxable year beginning on or after January 1, 2004, a] A claimant, estate, or
2313     trust may claim a refundable tax credit:
2314          (a) as provided in this section;
2315          (b) against taxes otherwise due under this chapter; and
2316          (c) in an amount equal to the amount of tax the claimant, estate, or trust pays:
2317          (i) on a purchase of a hand tool:
2318          (A) if the purchase is made on or after July 1, 2004;
2319          (B) if the hand tool is used or consumed primarily and directly in a farming operation

2320     in the state; and
2321          (C) if the unit purchase price of the hand tool is more than $250; and
2322          (ii) under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
2323     (1)(c)(i).
2324          (2) A claimant, estate, or trust:
2325          (a) shall retain the following to establish the amount of tax the claimant, estate, or trust
2326     paid under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
2327     (1)(c)(i):
2328          (i) a receipt;
2329          (ii) an invoice; or
2330          (iii) a document similar to a document described in Subsection (2)(a)(i) or (ii); and
2331          (b) may not carry forward or carry back a tax credit under this section.
2332          (3) (a) In accordance with any rules prescribed by the commission under Subsection
2333     (3)(b)[: (i)], the commission shall make a refund to a claimant, estate, or trust that claims a tax
2334     credit under this section if the amount of the tax credit exceeds the claimant's, estate's, or trust's
2335     tax liability under this chapter[; and].
2336          [(ii) the Division of Finance shall transfer at least annually from the General Fund into
2337     the Education Fund an amount equal to the aggregate amount of all tax credits claimed under
2338     this section.]
2339          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2340     commission may make rules providing procedures for making[: (i)] a refund to a claimant,
2341     estate, or trust as required by Subsection (3)(a)[(i); or].
2342          [(ii) transfers from the General Fund into the Education Fund as required by
2343     Subsection (3)(a)(ii).]
2344          Section 41. Section 59-10-1113 is enacted to read:
2345          59-10-1113. Refundable grocery tax credit.
2346          (1) As used in this section:
2347          (a) "Federal poverty level" means the poverty guidelines established by the Secretary of
2348     the United States Department of Health and Human Services under 42 U.S.C. Sec. 9909(2).
2349          (b) "Modified adjusted gross income" means the sum of a claimant's:
2350          (i) adjusted gross income for the taxable year for which a tax credit is claimed under

2351     this section;
2352          (ii) any interest income that is not included in adjusted gross income for the taxable
2353     year described in Subsection (1)(b)(i); and
2354          (iii) any addition to adjusted gross income required by Section 59-10-114 for the
2355     taxable year described in Subsection (1)(b)(i).
2356          (c) "Phaseout amount" means an amount equal to 0.0035% of the amount calculated
2357     under Subsection (2).
2358          (d) "Qualifying dependent" means the same as that term is defined in Section
2359     59-10-1018.
2360          (e) "Qualifying household member" means:
2361          (i) the qualifying individual;
2362          (ii) the qualifying individual's spouse, if the qualifying individual:
2363          (A) files one return jointly under this chapter with the qualifying individual's spouse
2364     for a taxable year; or
2365          (B) is a surviving spouse, as defined in Section 2(a), Internal Revenue Code, who files
2366     a single federal individual income tax return for a taxable year; and
2367          (iii) a qualifying dependent.
2368          (f) "Qualifying individual" means a resident individual who is not a qualifying
2369     dependent.
2370          (2) Subject to Section 59-10-1102.1 and the provisions of this section, a qualifying
2371     individual may claim a refundable grocery tax credit equal to the sum of:
2372          (a) $125 multiplied by the number of qualifying household members, up to four; and
2373          (b) $50 multiplied by the number of qualifying household members that exceeds four.
2374          (3) (a) If a qualifying household member was incarcerated for any part of the taxable
2375     year for which the qualifying individual claims the grocery tax credit, the qualifying
2376     individual's credit for the qualifying household member is reduced by an amount proportionate
2377     to the time the qualifying household member was incarcerated during the taxable year.
2378          (b) For purposes of calculating the proportionate amount under Subsection (3)(a), the
2379     qualifying household member who was incarcerated is considered:
2380          (i) one of the qualifying household members described in Subsection (2)(a); or
2381          (ii) if four other qualifying household members were incarcerated for part of the

2382     taxable year and each considered one of the four qualifying household members described in
2383     Subsection (2)(a), one of the qualifying household members described in Subsection (2)(b).
2384          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2385     commission may make rules for calculating the proportionate amount described in this
2386     subsection.
2387          (4) The tax credit described in this section is reduced by the phaseout amount for each
2388     dollar by which the claimant's modified adjusted gross income exceeds the lesser of:
2389          (a) 175% of the federal poverty level for the claimant's household size; or
2390          (b) 175% of the federal poverty level for a household with five individuals.
2391          (5) (a) Except as provided in Subsection (5)(b), to claim the tax credit described in this
2392     section, a qualifying individual shall file a return under this chapter.
2393          (b) A qualifying individual who is not required to file a return under this chapter for the
2394     taxable year in which the qualifying individual claims a credit under this section, may claim the
2395     tax credit described in this section by filing a form prescribed by the commission.
2396          (6) For each return filed under this chapter, no more than one qualifying individual
2397     may receive a credit under this section.
2398          Section 42. Section 59-10-1113.1 is enacted to read:
2399          59-10-1113.1. Additional grocery tax credit.
2400          (1) As used in this section:
2401          (a) "2019 credit amount" means the amount of a grocery tax credit an individual could
2402     have claimed for a taxable year beginning on or after January 1, 2019, and on or before
2403     December 31, 2019, if the grocery tax credit had been in effect, without applying the provisions
2404     of Subsection 59-10-1113(3).
2405          (b) "2019 qualifying individual" means a qualifying individual as defined in Section
2406     59-10-1113 who files a 2019 return on or before the deadline described in Section 59-10-514.
2407          (c) "2019 return" means a return filed under this chapter for a taxable year beginning
2408     on or after January 1, 2019, and on or before December 31, 2019.
2409          (d) "Grocery tax credit" means the refundable grocery tax credit described in Section
2410     59-10-1113.
2411          (2) Subject to the other provisions of this section, the commission shall provide each
2412     2019 qualifying individual an additional grocery tax credit equal to 25% of the 2019 qualifying

2413     individual's 2019 credit amount.
2414          (3) For each return filed under this chapter, no more than one 2019 qualifying
2415     individual may receive a credit under this section.
2416          (4) The commission shall provide a 2019 qualifying individual who is a part-year
2417     resident individual an apportioned amount of the additional grocery tax credit equal to the
2418     product of:
2419          (a) the state income tax percentage for the part-year resident individual; and
2420          (b) the amount of the additional grocery tax credit that the commission would have
2421     provided the part-year resident individual but for the apportionment requirements of this
2422     subsection.
2423          (5) If the value of a 2019 qualifying individual's additional grocery tax credit under this
2424     section is less than $20, the 2019 qualifying individual is not eligible to receive the credit.
2425          (6) The commission shall comply with Subsection (2) on or before July 1, 2020.
2426          (7) The provisions of Sections 59-10-529 and 63A-3-302 do not apply to a credit
2427     described in this section.
2428          Section 43. Section 59-10-1114 is enacted to read:
2429          59-10-1114. Refundable state earned income tax credit.
2430          (1) As used in this section:
2431          (a) "Department" means the Department of Workforce Services created in Section
2432     35A-1-103.
2433          (b) "Federal earned income tax credit"means the federal earned income tax credit
2434     described in Section 32, Internal Revenue Code.
2435          (c) "Qualifying claimant" means a resident individual or nonresident individual who:
2436          (i) is identified by the department as experiencing intergenerational poverty in
2437     accordance with Section 35A-9-214; and
2438          (ii) claimed the federal earned income tax credit for the previous taxable year.
2439          (2) Except as provided in Section 59-10-1102.1, a qualifying claimant may claim a
2440     refundable earned income tax credit equal to 10% of the amount of the federal earned income
2441     tax credit that the qualifying claimant was entitled to claim on a federal income tax return in
2442     the previous taxable year.
2443          (3) (a) The commission shall use the electronic report described in Section 35A-9-214

2444     to verify that a qualifying claimant is identified as experiencing intergenerational poverty.
2445          (b) The commission may not use the electronic report described in Section 35A-9-214
2446     for any other purpose.
2447          Section 44. Section 59-10-1403.3 is amended to read:
2448          59-10-1403.3. Refund of amounts paid or withheld for a pass-through entity.
2449          (1) As used in this section:
2450          (a) "Committee" means the Revenue and Taxation Interim Committee.
2451          (b) "Qualifying excess withholding" means an amount that:
2452          (i) is paid or withheld:
2453          (A) by a pass-through entity that has a different taxable year than the pass-through
2454     entity that requests a refund under this section; and
2455          (B) on behalf of the pass-through entity that requests the refund, if the pass-through
2456     entity that requests the refund also is a pass-through entity taxpayer; and
2457          (ii) is equal to the difference between:
2458          (A) the amount paid or withheld for the taxable year on behalf of the pass-through
2459     entity that requests the refund; and
2460          (B) the product of [5%] the percentage listed in Subsection 59-10-104(2) and the
2461     income, described in Subsection 59-10-1403.2(1)(a)(i), of the pass-through entity that requests
2462     the refund.
2463          (2) [For a taxable year ending on or after July 1, 2017, a] A pass-through entity may
2464     claim a refund of qualifying excess withholding, if the amount of the qualifying excess
2465     withholding is equal to or greater than $250,000.
2466          (3) A pass-through entity that requests a refund of qualifying excess withholding under
2467     this section shall:
2468          (a) apply to the commission for a refund on or, subject to Subsection (4), after the day
2469     on which the pass-through entity files the pass-through entity's income tax return; and
2470          (b) provide any information that the commission may require to determine that the
2471     pass-through entity is eligible to receive the refund.
2472          (4) A pass-through entity shall claim a refund of qualifying excess withholding under
2473     this section within 30 days after the earlier of the day on which:
2474          (a) the pass-through entity files an income tax return; or

2475          (b) the pass-through entity's income tax return is due, including any extension of due
2476     date authorized in statute.
2477          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2478     commission may make rules establishing the information that a pass-through entity shall
2479     provide to the commission to obtain a refund of qualifying excess withholding under this
2480     section.
2481          [(6) (a) On or before November 30, 2018, the committee shall review the $250,000
2482     threshold described in Subsection (2) for the purpose of assessing whether the threshold
2483     amount should be maintained, increased, or decreased.]
2484          [(b) To assist the committee in conducting the review described in Subsection (6)(a),
2485     the commission shall provide the committee with:]
2486          [(i) the total number of refund requests made under this section;]
2487          [(ii) the total costs of any refunds issued under this section;]
2488          [(iii) the costs of any audits conducted on refund requests made under this section; and]
2489          [(iv) an estimation of:]
2490          [(A) the number of refund requests the commission expects to receive if the Legislature
2491     increases the threshold;]
2492          [(B) the number of refund requests the commission expects to receive if the Legislature
2493     decreases the threshold; and]
2494          [(C) the costs of any audits the commission would conduct if the Legislature increases
2495     or decreases the threshold.]
2496          Section 45. Section 59-12-102 is amended to read:
2497          59-12-102. Definitions.
2498          As used in this chapter:
2499          (1) "800 service" means a telecommunications service that:
2500          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
2501          (b) is typically marketed:
2502          (i) under the name 800 toll-free calling;
2503          (ii) under the name 855 toll-free calling;
2504          (iii) under the name 866 toll-free calling;
2505          (iv) under the name 877 toll-free calling;

2506          (v) under the name 888 toll-free calling; or
2507          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
2508     Federal Communications Commission.
2509          (2) (a) "900 service" means an inbound toll telecommunications service that:
2510          (i) a subscriber purchases;
2511          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
2512     the subscriber's:
2513          (A) prerecorded announcement; or
2514          (B) live service; and
2515          (iii) is typically marketed:
2516          (A) under the name 900 service; or
2517          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
2518     Communications Commission.
2519          (b) "900 service" does not include a charge for:
2520          (i) a collection service a seller of a telecommunications service provides to a
2521     subscriber; or
2522          (ii) the following a subscriber sells to the subscriber's customer:
2523          (A) a product; or
2524          (B) a service.
2525          (3) (a) "Admission or user fees" includes season passes.
2526          (b) "Admission or user fees" does not include annual membership dues to private
2527     organizations.
2528          (4) "Affiliate" or "affiliated person" means a person that, with respect to another
2529     person:
2530          (a) has an ownership interest of more than 5%, whether direct or indirect, in that other
2531     person; or
2532          (b) is related to the other person because a third person, or a group of third persons who
2533     are affiliated persons with respect to each other, holds an ownership interest of more than 5%,
2534     whether direct or indirect, in the related persons.
2535          (5) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
2536     November 12, 2002, including amendments made to the Streamlined Sales and Use Tax

2537     Agreement after November 12, 2002.
2538          (6) "Agreement combined tax rate" means the sum of the tax rates:
2539          (a) listed under Subsection (7); and
2540          (b) that are imposed within a local taxing jurisdiction.
2541          (7) "Agreement sales and use tax" means a tax imposed under:
2542          (a) Subsection 59-12-103(2)(a)(i)(A);
2543          (b) Subsection 59-12-103(2)(b)(i);
2544          (c) Subsection 59-12-103(2)(c)(i);
2545          (d) Subsection 59-12-103(2)(d)(i)(A)(I);
2546          (e) Section 59-12-204;
2547          (f) Section 59-12-401;
2548          (g) Section 59-12-402;
2549          (h) Section 59-12-402.1;
2550          (i) Section 59-12-703;
2551          (j) Section 59-12-802;
2552          (k) Section 59-12-804;
2553          (l) Section 59-12-1102;
2554          (m) Section 59-12-1302;
2555          (n) Section 59-12-1402;
2556          (o) Section 59-12-1802;
2557          (p) Section 59-12-2003;
2558          (q) Section 59-12-2103;
2559          (r) Section 59-12-2213;
2560          (s) Section 59-12-2214;
2561          (t) Section 59-12-2215;
2562          (u) Section 59-12-2216;
2563          (v) Section 59-12-2217;
2564          (w) Section 59-12-2218;
2565          (x) Section 59-12-2219; or
2566          (y) Section 59-12-2220.
2567          (8) "Aircraft" means the same as that term is defined in Section 72-10-102.

2568          (9) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
2569          (a) except for:
2570          (i) an airline as defined in Section 59-2-102; or
2571          (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
2572     includes a corporation that is qualified to do business but is not otherwise doing business in the
2573     state, of an airline; and
2574          (b) that has the workers, expertise, and facilities to perform the following, regardless of
2575     whether the business entity performs the following in this state:
2576          (i) check, diagnose, overhaul, and repair:
2577          (A) an onboard system of a fixed wing turbine powered aircraft; and
2578          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
2579          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
2580     engine;
2581          (iii) perform at least the following maintenance on a fixed wing turbine powered
2582     aircraft:
2583          (A) an inspection;
2584          (B) a repair, including a structural repair or modification;
2585          (C) changing landing gear; and
2586          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
2587          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
2588     completely apply new paint to the fixed wing turbine powered aircraft; and
2589          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
2590     results in a change in the fixed wing turbine powered aircraft's certification requirements by the
2591     authority that certifies the fixed wing turbine powered aircraft.
2592          (10) "Alcoholic beverage" means a beverage that:
2593          (a) is suitable for human consumption; and
2594          (b) contains .5% or more alcohol by volume.
2595          (11) "Alternative energy" means:
2596          (a) biomass energy;
2597          (b) geothermal energy;
2598          (c) hydroelectric energy;

2599          (d) solar energy;
2600          (e) wind energy; or
2601          (f) energy that is derived from:
2602          (i) coal-to-liquids;
2603          (ii) nuclear fuel;
2604          (iii) oil-impregnated diatomaceous earth;
2605          (iv) oil sands;
2606          (v) oil shale;
2607          (vi) petroleum coke; or
2608          (vii) waste heat from:
2609          (A) an industrial facility; or
2610          (B) a power station in which an electric generator is driven through a process in which
2611     water is heated, turns into steam, and spins a steam turbine.
2612          (12) (a) Subject to Subsection (12)(b), "alternative energy electricity production
2613     facility" means a facility that:
2614          (i) uses alternative energy to produce electricity; and
2615          (ii) has a production capacity of two megawatts or greater.
2616          (b) A facility is an alternative energy electricity production facility regardless of
2617     whether the facility is:
2618          (i) connected to an electric grid; or
2619          (ii) located on the premises of an electricity consumer.
2620          (13) (a) "Ancillary service" means a service associated with, or incidental to, the
2621     provision of telecommunications service.
2622          (b) "Ancillary service" includes:
2623          (i) a conference bridging service;
2624          (ii) a detailed communications billing service;
2625          (iii) directory assistance;
2626          (iv) a vertical service; or
2627          (v) a voice mail service.
2628          (14) "Area agency on aging" means the same as that term is defined in Section
2629     62A-3-101.

2630          [(15) "Assisted amusement device" means an amusement device, skill device, or ride
2631     device that is started and stopped by an individual:]
2632          [(a) who is not the purchaser or renter of the right to use or operate the amusement
2633     device, skill device, or ride device; and]
2634          [(b) at the direction of the seller of the right to use the amusement device, skill device,
2635     or ride device.]
2636          [(16)] (15) "Assisted cleaning or washing of tangible personal property" means
2637     cleaning or washing of tangible personal property if the cleaning or washing labor is primarily
2638     performed by an individual:
2639          (a) who is not the purchaser of the cleaning or washing of the tangible personal
2640     property; and
2641          (b) at the direction of the seller of the cleaning or washing of the tangible personal
2642     property.
2643          [(17)] (16) "Authorized carrier" means:
2644          (a) in the case of vehicles operated over public highways, the holder of credentials
2645     indicating that the vehicle is or will be operated pursuant to both the International Registration
2646     Plan and the International Fuel Tax Agreement;
2647          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
2648     certificate or air carrier's operating certificate; or
2649          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
2650     stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
2651     stock in more than one state.
2652          [(18)] (17) (a) Except as provided in Subsection [(18)] (17)(b), "biomass energy"
2653     means any of the following that is used as the primary source of energy to produce fuel or
2654     electricity:
2655          (i) material from a plant or tree; or
2656          (ii) other organic matter that is available on a renewable basis, including:
2657          (A) slash and brush from forests and woodlands;
2658          (B) animal waste;
2659          (C) waste vegetable oil;
2660          (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of

2661     wastewater residuals, or through the conversion of a waste material through a nonincineration,
2662     thermal conversion process;
2663          (E) aquatic plants; and
2664          (F) agricultural products.
2665          (b) "Biomass energy" does not include:
2666          (i) black liquor; or
2667          (ii) treated woods.
2668          [(19)] (18) (a) "Bundled transaction" means the sale of two or more items of tangible
2669     personal property, products, or services if the tangible personal property, products, or services
2670     are:
2671          (i) distinct and identifiable; and
2672          (ii) sold for one nonitemized price.
2673          (b) "Bundled transaction" does not include:
2674          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
2675     the basis of the selection by the purchaser of the items of tangible personal property included in
2676     the transaction;
2677          (ii) the sale of real property;
2678          (iii) the sale of services to real property;
2679          (iv) the retail sale of tangible personal property and a service if:
2680          (A) the tangible personal property:
2681          (I) is essential to the use of the service; and
2682          (II) is provided exclusively in connection with the service; and
2683          (B) the service is the true object of the transaction;
2684          (v) the retail sale of two services if:
2685          (A) one service is provided that is essential to the use or receipt of a second service;
2686          (B) the first service is provided exclusively in connection with the second service; and
2687          (C) the second service is the true object of the transaction;
2688          (vi) a transaction that includes tangible personal property or a product subject to
2689     taxation under this chapter and tangible personal property or a product that is not subject to
2690     taxation under this chapter if the:
2691          (A) seller's purchase price of the tangible personal property or product subject to

2692     taxation under this chapter is de minimis; or
2693          (B) seller's sales price of the tangible personal property or product subject to taxation
2694     under this chapter is de minimis; and
2695          (vii) the retail sale of tangible personal property that is not subject to taxation under
2696     this chapter and tangible personal property that is subject to taxation under this chapter if:
2697          (A) that retail sale includes:
2698          (I) food and food ingredients;
2699          (II) a drug;
2700          (III) durable medical equipment;
2701          (IV) mobility enhancing equipment;
2702          (V) an over-the-counter drug;
2703          (VI) a prosthetic device; or
2704          (VII) a medical supply; and
2705          (B) subject to Subsection [(19)] (18)(f):
2706          (I) the seller's purchase price of the tangible personal property subject to taxation under
2707     this chapter is 50% or less of the seller's total purchase price of that retail sale; or
2708          (II) the seller's sales price of the tangible personal property subject to taxation under
2709     this chapter is 50% or less of the seller's total sales price of that retail sale.
2710          (c) (i) For purposes of Subsection [(19)] (18)(a)(i), tangible personal property, a
2711     product, or a service that is distinct and identifiable does not include:
2712          (A) packaging that:
2713          (I) accompanies the sale of the tangible personal property, product, or service; and
2714          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
2715     service;
2716          (B) tangible personal property, a product, or a service provided free of charge with the
2717     purchase of another item of tangible personal property, a product, or a service; or
2718          (C) an item of tangible personal property, a product, or a service included in the
2719     definition of "purchase price."
2720          (ii) For purposes of Subsection [(19)] (18)(c)(i)(B), an item of tangible personal
2721     property, a product, or a service is provided free of charge with the purchase of another item of
2722     tangible personal property, a product, or a service if the sales price of the purchased item of

2723     tangible personal property, product, or service does not vary depending on the inclusion of the
2724     tangible personal property, product, or service provided free of charge.
2725          (d) (i) For purposes of Subsection [(19)] (18)(a)(ii), property sold for one nonitemized
2726     price does not include a price that is separately identified by tangible personal property,
2727     product, or service on the following, regardless of whether the following is in paper format or
2728     electronic format:
2729          (A) a binding sales document; or
2730          (B) another supporting sales-related document that is available to a purchaser.
2731          (ii) For purposes of Subsection [(19)] (18)(d)(i), a binding sales document or another
2732     supporting sales-related document that is available to a purchaser includes:
2733          (A) a bill of sale;
2734          (B) a contract;
2735          (C) an invoice;
2736          (D) a lease agreement;
2737          (E) a periodic notice of rates and services;
2738          (F) a price list;
2739          (G) a rate card;
2740          (H) a receipt; or
2741          (I) a service agreement.
2742          (e) (i) For purposes of Subsection [(19)] (18)(b)(vi), the sales price of tangible personal
2743     property or a product subject to taxation under this chapter is de minimis if:
2744          (A) the seller's purchase price of the tangible personal property or product is 10% or
2745     less of the seller's total purchase price of the bundled transaction; or
2746          (B) the seller's sales price of the tangible personal property or product is 10% or less of
2747     the seller's total sales price of the bundled transaction.
2748          (ii) For purposes of Subsection [(19)] (18)(b)(vi), a seller:
2749          (A) shall use the seller's purchase price or the seller's sales price to determine if the
2750     purchase price or sales price of the tangible personal property or product subject to taxation
2751     under this chapter is de minimis; and
2752          (B) may not use a combination of the seller's purchase price and the seller's sales price
2753     to determine if the purchase price or sales price of the tangible personal property or product

2754     subject to taxation under this chapter is de minimis.
2755          (iii) For purposes of Subsection [(19)] (18)(b)(vi), a seller shall use the full term of a
2756     service contract to determine if the sales price of tangible personal property or a product is de
2757     minimis.
2758          (f) For purposes of Subsection [(19)] (18)(b)(vii)(B), a seller may not use a
2759     combination of the seller's purchase price and the seller's sales price to determine if tangible
2760     personal property subject to taxation under this chapter is 50% or less of the seller's total
2761     purchase price or sales price of that retail sale.
2762          [(20)] (19) "Certified automated system" means software certified by the governing
2763     board of the agreement that:
2764          (a) calculates the agreement sales and use tax imposed within a local taxing
2765     jurisdiction:
2766          (i) on a transaction; and
2767          (ii) in the states that are members of the agreement;
2768          (b) determines the amount of agreement sales and use tax to remit to a state that is a
2769     member of the agreement; and
2770          (c) maintains a record of the transaction described in Subsection [(20)] (19)(a)(i).
2771          [(21)] (20) "Certified service provider" means an agent certified:
2772          (a) by the governing board of the agreement; and
2773          (b) to perform a seller's sales and use tax functions for an agreement sales and use tax,
2774     as outlined in the contract between the governing board of the agreement and the certified
2775     service provider, other than the seller's obligation under Section 59-12-124 to remit a tax on the
2776     seller's own purchases.
2777          [(22)] (21) (a) Subject to Subsection [(22)] (21)(b), "clothing" means all human
2778     wearing apparel suitable for general use.
2779          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2780     commission shall make rules:
2781          (i) listing the items that constitute "clothing"; and
2782          (ii) that are consistent with the list of items that constitute "clothing" under the
2783     agreement.
2784          [(23)] (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic

2785     fuel.
2786          [(24)] (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or
2787     other fuels that does not constitute industrial use under Subsection (57) or residential use under
2788     Subsection [(111)] (115).
2789          [(25)] (24) (a) "Common carrier" means a person engaged in or transacting the
2790     business of transporting passengers, freight, merchandise, or other property for hire within this
2791     state.
2792          (b) (i) "Common carrier" does not include a person that, at the time the person is
2793     traveling to or from that person's place of employment, transports a passenger to or from the
2794     passenger's place of employment.
2795          (ii) For purposes of Subsection [(25)] (24)(b)(i), in accordance with Title 63G, Chapter
2796     3, Utah Administrative Rulemaking Act, the commission may make rules defining what
2797     constitutes a person's place of employment.
2798          (c) "Common carrier" does not include a person that provides transportation network
2799     services, as defined in Section 13-51-102.
2800          [(26)] (25) "Component part" includes:
2801          (a) poultry, dairy, and other livestock feed, and their components;
2802          (b) baling ties and twine used in the baling of hay and straw;
2803          (c) fuel used for providing temperature control of orchards and commercial
2804     greenhouses doing a majority of their business in wholesale sales, and for providing power for
2805     off-highway type farm machinery; and
2806          (d) feed, seeds, and seedlings.
2807          [(27)] (26) "Computer" means an electronic device that accepts information:
2808          (a) (i) in digital form; or
2809          (ii) in a form similar to digital form; and
2810          (b) manipulates that information for a result based on a sequence of instructions.
2811          [(28)] (27) "Computer software" means a set of coded instructions designed to cause:
2812          (a) a computer to perform a task; or
2813          (b) automatic data processing equipment to perform a task.
2814          [(29)] (28) "Computer software maintenance contract" means a contract that obligates a
2815     seller of computer software to provide a customer with:

2816          (a) future updates or upgrades to computer software;
2817          (b) support services with respect to computer software; or
2818          (c) a combination of Subsections [(29)] (28)(a) and (b).
2819          [(30)] (29) (a) "Conference bridging service" means an ancillary service that links two
2820     or more participants of an audio conference call or video conference call.
2821          (b) "Conference bridging service" may include providing a telephone number as part of
2822     the ancillary service described in Subsection [(30)] (29)(a).
2823          (c) "Conference bridging service" does not include a telecommunications service used
2824     to reach the ancillary service described in Subsection [(30)] (29)(a).
2825          [(31)] (30) "Construction materials" means any tangible personal property that will be
2826     converted into real property.
2827          [(32)] (31) "Delivered electronically" means delivered to a purchaser by means other
2828     than tangible storage media.
2829          (32) "Dating referral services" means services that are primarily intended to introduce
2830     or match adults for social or romantic activities, including computer dating or video dating
2831     services.
2832          (33) (a) "Delivery charge" means a charge:
2833          (i) by a seller of:
2834          (A) tangible personal property;
2835          (B) a product transferred electronically; or
2836          (C) a service; and
2837          (ii) for preparation and delivery of the tangible personal property, product transferred
2838     electronically, or services described in Subsection (33)(a)(i) to a location designated by the
2839     purchaser.
2840          (b) "Delivery charge" includes a charge for the following:
2841          (i) transportation;
2842          (ii) shipping;
2843          (iii) postage;
2844          (iv) handling;
2845          (v) crating; or
2846          (vi) packing.

2847          (34) "Detailed telecommunications billing service" means an ancillary service of
2848     separately stating information pertaining to individual calls on a customer's billing statement.
2849          (35) "Dietary supplement" means a product, other than tobacco, that:
2850          (a) is intended to supplement the diet;
2851          (b) contains one or more of the following dietary ingredients:
2852          (i) a vitamin;
2853          (ii) a mineral;
2854          (iii) an herb or other botanical;
2855          (iv) an amino acid;
2856          (v) a dietary substance for use by humans to supplement the diet by increasing the total
2857     dietary intake; or
2858          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
2859     described in Subsections (35)(b)(i) through (v);
2860          (c) (i) except as provided in Subsection (35)(c)(ii), is intended for ingestion in:
2861          (A) tablet form;
2862          (B) capsule form;
2863          (C) powder form;
2864          (D) softgel form;
2865          (E) gelcap form; or
2866          (F) liquid form; or
2867          (ii) if the product is not intended for ingestion in a form described in Subsections
2868     (35)(c)(i)(A) through (F), is not represented:
2869          (A) as conventional food; and
2870          (B) for use as a sole item of:
2871          (I) a meal; or
2872          (II) the diet; and
2873          (d) is required to be labeled as a dietary supplement:
2874          (i) identifiable by the "Supplemental Facts" box found on the label; and
2875          (ii) as required by 21 C.F.R. Sec. 101.36.
2876          (36) (a) "Digital audio work" means a work that results from the fixation of a series of
2877     musical, spoken, or other sounds.

2878          (b) "Digital audio work" includes a ringtone.
2879          (37) "Digital audio-visual work" means a series of related images which, when shown
2880     in succession, imparts an impression of motion, together with accompanying sounds, if any.
2881          (38) "Digital book" means a work that is generally recognized in the ordinary and usual
2882     sense as a book.
2883          (39) (a) "Direct mail" means printed material delivered or distributed by United States
2884     mail or other delivery service:
2885          (i) to:
2886          (A) a mass audience; or
2887          (B) addressees on a mailing list provided:
2888          (I) by a purchaser of the mailing list; or
2889          (II) at the discretion of the purchaser of the mailing list; and
2890          (ii) if the cost of the printed material is not billed directly to the recipients.
2891          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
2892     purchaser to a seller of direct mail for inclusion in a package containing the printed material.
2893          (c) "Direct mail" does not include multiple items of printed material delivered to a
2894     single address.
2895          (40) "Directory assistance" means an ancillary service of providing:
2896          (a) address information; or
2897          (b) telephone number information.
2898          (41) (a) "Disposable home medical equipment or supplies" means medical equipment
2899     or supplies that:
2900          (i) cannot withstand repeated use; and
2901          (ii) are purchased by, for, or on behalf of a person other than:
2902          (A) a health care facility as defined in Section 26-21-2;
2903          (B) a health care provider as defined in Section 78B-3-403;
2904          (C) an office of a health care provider described in Subsection (41)(a)(ii)(B); or
2905          (D) a person similar to a person described in Subsections (41)(a)(ii)(A) through (C).
2906          (b) "Disposable home medical equipment or supplies" does not include:
2907          (i) a drug;
2908          (ii) durable medical equipment;

2909          (iii) a hearing aid;
2910          (iv) a hearing aid accessory;
2911          (v) mobility enhancing equipment; or
2912          (vi) tangible personal property used to correct impaired vision, including:
2913          (A) eyeglasses; or
2914          (B) contact lenses.
2915          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2916     commission may by rule define what constitutes medical equipment or supplies.
2917          (42) "Drilling equipment manufacturer" means a facility:
2918          (a) located in the state;
2919          (b) with respect to which 51% or more of the manufacturing activities of the facility
2920     consist of manufacturing component parts of drilling equipment;
2921          (c) that uses pressure of 800,000 or more pounds per square inch as part of the
2922     manufacturing process; and
2923          (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
2924     manufacturing process.
2925          (43) (a) "Drug" means a compound, substance, or preparation, or a component of a
2926     compound, substance, or preparation that is:
2927          (i) recognized in:
2928          (A) the official United States Pharmacopoeia;
2929          (B) the official Homeopathic Pharmacopoeia of the United States;
2930          (C) the official National Formulary; or
2931          (D) a supplement to a publication listed in Subsections (43)(a)(i)(A) through (C);
2932          (ii) intended for use in the:
2933          (A) diagnosis of disease;
2934          (B) cure of disease;
2935          (C) mitigation of disease;
2936          (D) treatment of disease; or
2937          (E) prevention of disease; or
2938          (iii) intended to affect:
2939          (A) the structure of the body; or

2940          (B) any function of the body.
2941          (b) "Drug" does not include:
2942          (i) food and food ingredients;
2943          (ii) a dietary supplement;
2944          (iii) an alcoholic beverage; or
2945          (iv) a prosthetic device.
2946          (44) (a) Except as provided in Subsection (44)(c), "durable medical equipment" means
2947     equipment that:
2948          (i) can withstand repeated use;
2949          (ii) is primarily and customarily used to serve a medical purpose;
2950          (iii) generally is not useful to a person in the absence of illness or injury; and
2951          (iv) is not worn in or on the body.
2952          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
2953     equipment described in Subsection (44)(a).
2954          (c) "Durable medical equipment" does not include mobility enhancing equipment.
2955          (45) "Electronic" means:
2956          (a) relating to technology; and
2957          (b) having:
2958          (i) electrical capabilities;
2959          (ii) digital capabilities;
2960          (iii) magnetic capabilities;
2961          (iv) wireless capabilities;
2962          (v) optical capabilities;
2963          (vi) electromagnetic capabilities; or
2964          (vii) capabilities similar to Subsections (45)(b)(i) through (vi).
2965          (46) "Electronic financial payment service" means an establishment:
2966          (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
2967     Clearinghouse Activities, of the 2012 North American Industry Classification System of the
2968     federal Executive Office of the President, Office of Management and Budget; and
2969          (b) that performs electronic financial payment services.
2970          (47) "Employee" means the same as that term is defined in Section 59-10-401.

2971          (48) "Fixed guideway" means a public transit facility that uses and occupies:
2972          (a) rail for the use of public transit; or
2973          (b) a separate right-of-way for the use of public transit.
2974          (49) "Fixed wing turbine powered aircraft" means an aircraft that:
2975          (a) is powered by turbine engines;
2976          (b) operates on jet fuel; and
2977          (c) has wings that are permanently attached to the fuselage of the aircraft.
2978          (50) "Fixed wireless service" means a telecommunications service that provides radio
2979     communication between fixed points.
2980          (51) (a) "Food and food ingredients" means substances:
2981          (i) regardless of whether the substances are in:
2982          (A) liquid form;
2983          (B) concentrated form;
2984          (C) solid form;
2985          (D) frozen form;
2986          (E) dried form; or
2987          (F) dehydrated form; and
2988          (ii) that are:
2989          (A) sold for:
2990          (I) ingestion by humans; or
2991          (II) chewing by humans; and
2992          (B) consumed for the substance's:
2993          (I) taste; or
2994          (II) nutritional value.
2995          (b) "Food and food ingredients" includes an item described in Subsection [(95)]
2996     (99)(b)(iii).
2997          (c) "Food and food ingredients" does not include:
2998          (i) an alcoholic beverage;
2999          (ii) tobacco; or
3000          (iii) prepared food.
3001          (52) (a) "Fundraising sales" means sales:

3002          (i) (A) made by a school; or
3003          (B) made by a school student;
3004          (ii) that are for the purpose of raising funds for the school to purchase equipment,
3005     materials, or provide transportation; and
3006          (iii) that are part of an officially sanctioned school activity.
3007          (b) For purposes of Subsection (52)(a)(iii), "officially sanctioned school activity"
3008     means a school activity:
3009          (i) that is conducted in accordance with a formal policy adopted by the school or school
3010     district governing the authorization and supervision of fundraising activities;
3011          (ii) that does not directly or indirectly compensate an individual teacher or other
3012     educational personnel by direct payment, commissions, or payment in kind; and
3013          (iii) the net or gross revenues from which are deposited in a dedicated account
3014     controlled by the school or school district.
3015          (53) "Geothermal energy" means energy contained in heat that continuously flows
3016     outward from the earth that is used as the sole source of energy to produce electricity.
3017          (54) "Governing board of the agreement" means the governing board of the agreement
3018     that is:
3019          (a) authorized to administer the agreement; and
3020          (b) established in accordance with the agreement.
3021          (55) (a) [For purposes of Subsection 59-12-104(41), "governmental] "Governmental
3022     entity" means:
3023          (i) the executive branch of the state, including all departments, institutions, boards,
3024     divisions, bureaus, offices, commissions, and committees;
3025          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
3026     Administrative Office of the Courts, and similar administrative units in the judicial branch;
3027          (iii) the legislative branch of the state, including the House of Representatives, the
3028     Senate, the Legislative Printing Office, the Office of Legislative Research and General
3029     Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
3030     Analyst;
3031          (iv) the National Guard;
3032          (v) an independent entity as defined in Section 63E-1-102; or

3033          (vi) a political subdivision as defined in Section 17B-1-102.
3034          (b) "Governmental entity" does not include the state systems of public and higher
3035     education, including:
3036          (i) a school;
3037          (ii) the State Board of Education;
3038          (iii) the State Board of Regents; or
3039          (iv) an institution of higher education described in Section 53B-1-102.
3040          (56) "Hydroelectric energy" means water used as the sole source of energy to produce
3041     electricity.
3042          (57) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
3043     other fuels:
3044          (a) in mining or extraction of minerals;
3045          (b) in agricultural operations to produce an agricultural product up to the time of
3046     harvest or placing the agricultural product into a storage facility, including:
3047          (i) commercial greenhouses;
3048          (ii) irrigation pumps;
3049          (iii) farm machinery;
3050          (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
3051     under Title 41, Chapter 1a, Part 2, Registration; and
3052          (v) other farming activities;
3053          (c) in manufacturing tangible personal property at an establishment described in:
3054          (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
3055     the federal Executive Office of the President, Office of Management and Budget; or
3056          (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
3057     American Industry Classification System of the federal Executive Office of the President,
3058     Office of Management and Budget;
3059          (d) by a scrap recycler if:
3060          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
3061     one or more of the following items into prepared grades of processed materials for use in new
3062     products:
3063          (A) iron;

3064          (B) steel;
3065          (C) nonferrous metal;
3066          (D) paper;
3067          (E) glass;
3068          (F) plastic;
3069          (G) textile; or
3070          (H) rubber; and
3071          (ii) the new products under Subsection (57)(d)(i) would otherwise be made with
3072     nonrecycled materials; or
3073          (e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
3074     cogeneration facility as defined in Section 54-2-1.
3075          [(58) (a) Except as provided in Subsection (58)(b), "installation charge" means a
3076     charge for installing:]
3077          [(i) tangible personal property; or]
3078          [(ii) a product transferred electronically.]
3079          [(b) "Installation charge" does not include a charge for:]
3080          [(i) repairs or renovations of:]
3081          [(A) tangible personal property; or]
3082          [(B) a product transferred electronically; or]
3083          [(ii) attaching tangible personal property or a product transferred electronically:]
3084          [(A) to other tangible personal property; and]
3085          [(B) as part of a manufacturing or fabrication process.]
3086          (58) (a) "Installation charge" means a charge:
3087          (i) by a seller of:
3088          (A) tangible personal property; or
3089          (B) a product transferred electronically; and
3090          (ii) for installing the tangible personal property or the product transferred electronically
3091     described in Subsection (58)(a)(i).
3092          (b) "Installation charge" does not include a charge for:
3093          (i) installing tangible personal property if the tangible personal property is permanently
3094     attached to real property;

3095          (ii) converting tangible personal property to real property.
3096          (59) "Institution of higher education" means an institution of higher education listed in
3097     Section 53B-2-101.
3098          (60) (a) "Lease" or "rental" means a transfer of possession or control of tangible
3099     personal property or a product transferred electronically for:
3100          (i) (A) a fixed term; or
3101          (B) an indeterminate term; and
3102          (ii) consideration.
3103          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
3104     amount of consideration may be increased or decreased by reference to the amount realized
3105     upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
3106     Code.
3107          (c) "Lease" or "rental" does not include:
3108          (i) a transfer of possession or control of property under a security agreement or
3109     deferred payment plan that requires the transfer of title upon completion of the required
3110     payments;
3111          (ii) a transfer of possession or control of property under an agreement that requires the
3112     transfer of title:
3113          (A) upon completion of required payments; and
3114          (B) if the payment of an option price does not exceed the greater of:
3115          (I) $100; or
3116          (II) 1% of the total required payments; or
3117          (iii) providing tangible personal property along with an operator for a fixed period of
3118     time or an indeterminate period of time if the operator is necessary for equipment to perform as
3119     designed.
3120          (d) For purposes of Subsection (60)(c)(iii), an operator is necessary for equipment to
3121     perform as designed if the operator's duties exceed the:
3122          (i) set-up of tangible personal property;
3123          (ii) maintenance of tangible personal property; or
3124          (iii) inspection of tangible personal property.
3125          (61) "Life science establishment" means an establishment in this state that is classified

3126     under the following NAICS codes of the 2007 North American Industry Classification System
3127     of the federal Executive Office of the President, Office of Management and Budget:
3128          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
3129          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
3130     Manufacturing; or
3131          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
3132          (62) "Life science research and development facility" means a facility owned, leased,
3133     or rented by a life science establishment if research and development is performed in 51% or
3134     more of the total area of the facility.
3135          (63) "Load and leave" means delivery to a purchaser by use of a tangible storage media
3136     if the tangible storage media is not physically transferred to the purchaser.
3137          (64) "Local taxing jurisdiction" means a:
3138          (a) county that is authorized to impose an agreement sales and use tax;
3139          (b) city that is authorized to impose an agreement sales and use tax; or
3140          (c) town that is authorized to impose an agreement sales and use tax.
3141          (65) "Manufactured home" means the same as that term is defined in Section
3142     15A-1-302.
3143          (66) "Manufacturing facility" means:
3144          (a) an establishment described in:
3145          (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
3146     the federal Executive Office of the President, Office of Management and Budget; or
3147          (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
3148     American Industry Classification System of the federal Executive Office of the President,
3149     Office of Management and Budget;
3150          (b) a scrap recycler if:
3151          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
3152     one or more of the following items into prepared grades of processed materials for use in new
3153     products:
3154          (A) iron;
3155          (B) steel;
3156          (C) nonferrous metal;

3157          (D) paper;
3158          (E) glass;
3159          (F) plastic;
3160          (G) textile; or
3161          (H) rubber; and
3162          (ii) the new products under Subsection (66)(b)(i) would otherwise be made with
3163     nonrecycled materials; or
3164          (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
3165     placed in service on or after May 1, 2006.
3166          (67) (a) "Marketplace" means a physical or electronic place, platform, or forum where
3167     tangible personal property, a product transferred electronically, or a service is offered for sale.
3168          (b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a
3169     dedicated sales software application.
3170          (68) (a) "Marketplace facilitator" means a person, including an affiliate of the person,
3171     that enters into a contract, an agreement, or otherwise with sellers, for consideration, to
3172     facilitate the sale of a seller's product through a marketplace that the person owns, operates, or
3173     controls and that directly or indirectly:
3174          (i) does any of the following:
3175          (A) lists, makes available, or advertises tangible personal property, a product
3176     transferred electronically, or a service for sale by a marketplace seller on a marketplace that the
3177     person owns, operates, or controls;
3178          (B) facilitates the sale of a marketplace seller's tangible personal property, product
3179     transferred electronically, or service by transmitting or otherwise communicating an offer or
3180     acceptance of a retail sale between the marketplace seller and a purchaser using the
3181     marketplace;
3182          (C) owns, rents, licenses, makes available, or operates any electronic or physical
3183     infrastructure or any property, process, method, copyright, trademark, or patent that connects a
3184     marketplace seller to a purchaser for the purpose of making a retail sale of tangible personal
3185     property, a product transferred electronically, or a service;
3186          (D) provides a marketplace for making, or otherwise facilitates, a retail sale of tangible
3187     personal property, a product transferred electronically, or a service, regardless of ownership or

3188     control of the tangible personal property, the product transferred electronically, or the service
3189     that is the subject of the retail sale;
3190          (E) provides software development or research and development activities related to
3191     any activity described in this Subsection (68)(a)(i), if the software development or research and
3192     development activity is directly related to the person's marketplace;
3193          (F) provides or offers fulfillment or storage services for a marketplace seller;
3194          (G) sets prices for the sale of tangible personal property, a product transferred
3195     electronically, or a service by a marketplace seller;
3196          (H) provides or offers customer service to a marketplace seller or a marketplace seller's
3197     purchaser or accepts or assists with taking orders, returns, or exchanges of tangible personal
3198     property, a product transferred electronically, or a service sold by a marketplace seller on the
3199     person's marketplace; or
3200          (I) brands or otherwise identifies sales as those of the person; and
3201          (ii) does any of the following:
3202          (A) collects the sales price or purchase price of a retail sale of tangible personal
3203     property, a product transferred electronically, or a service;
3204          (B) provides payment processing services for a retail sale of tangible personal property,
3205     a product transferred electronically, or a service;
3206          (C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee, closing
3207     fee, a fee for inserting or making available tangible personal property, a product transferred
3208     electronically, or a service on the person's marketplace, or other consideration for the
3209     facilitation of a retail sale of tangible personal property, a product transferred electronically, or
3210     a service, regardless of ownership or control of the tangible personal property, the product
3211     transferred electronically, or the service that is the subject of the retail sale;
3212          (D) through terms and conditions, an agreement, or another arrangement with a third
3213     person, collects payment from a purchase for a retail sale of tangible personal property, a
3214     product transferred electronically, or a service and transmits that payment to the marketplace
3215     seller, regardless of whether the third person receives compensation or other consideration in
3216     exchange for the service; or
3217          (E) provides a virtual currency for a purchaser to use to purchase tangible personal
3218     property, a product transferred electronically, or service offered for sale.

3219          (b) "Marketplace facilitator" does not include a person that only provides payment
3220     processing services.
3221          (69) "Marketplace seller" means a seller that makes one or more retail sales through a
3222     marketplace that a marketplace facilitator owns, operates, or controls, regardless of whether the
3223     seller is required to be registered to collect and remit the tax under this part.
3224          (70) "Member of the immediate family of the producer" means a person who is related
3225     to a producer described in Subsection 59-12-104[(20)](17)(a) as a:
3226          (a) child or stepchild, regardless of whether the child or stepchild is:
3227          (i) an adopted child or adopted stepchild; or
3228          (ii) a foster child or foster stepchild;
3229          (b) grandchild or stepgrandchild;
3230          (c) grandparent or stepgrandparent;
3231          (d) nephew or stepnephew;
3232          (e) niece or stepniece;
3233          (f) parent or stepparent;
3234          (g) sibling or stepsibling;
3235          (h) spouse;
3236          (i) person who is the spouse of a person described in Subsections (70)(a) through (g);
3237     or
3238          (j) person similar to a person described in Subsections (70)(a) through (i) as
3239     determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
3240     Administrative Rulemaking Act.
3241          (71) (a) "Menstrual products" means:
3242          (i) tampons;
3243          (ii) panty liners;
3244          (iii) menstrual cups;
3245          (iv) sanitary napkins; or
3246          (v) other similar tangible personal property designed for hygiene in connection with the
3247     human menstrual cycle.
3248          (b) "Menstrual products" does not include:
3249          (i) soaps or cleaning solutions;

3250          (ii) shampoo;
3251          (iii) toothpaste;
3252          (iv) mouthwash;
3253          (v) antiperspirants; or
3254          (vi) suntan lotions or screens.
3255          [(71)] (72) "Mobile home" means the same as that term is defined in Section
3256     15A-1-302.
3257          [(72)] (73) "Mobile telecommunications service" means the same as that term is
3258     defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
3259          [(73)] (74) (a) "Mobile wireless service" means a telecommunications service,
3260     regardless of the technology used, if:
3261          (i) the origination point of the conveyance, routing, or transmission is not fixed;
3262          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
3263          (iii) the origination point described in Subsection [(73)] (74)(a)(i) and the termination
3264     point described in Subsection [(73)] (74)(a)(ii) are not fixed.
3265          (b) "Mobile wireless service" includes a telecommunications service that is provided
3266     by a commercial mobile radio service provider.
3267          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3268     commission may by rule define "commercial mobile radio service provider."
3269          [(74)] (75) (a) [Except as provided in Subsection (74)(c), "mobility] "Mobility
3270     enhancing equipment" means equipment that is:
3271          (i) primarily and customarily used to provide or increase the ability to move from one
3272     place to another;
3273          (ii) appropriate for use in a:
3274          (A) home; or
3275          (B) motor vehicle; and
3276          (iii) not generally used by persons with normal mobility.
3277          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
3278     the equipment described in Subsection [(74)] (75)(a).
3279          (c) "Mobility enhancing equipment" does not include:
3280          (i) a motor vehicle;

3281          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
3282     vehicle manufacturer;
3283          (iii) durable medical equipment; or
3284          (iv) a prosthetic device.
3285          [(75)] (76) "Model 1 seller" means a seller registered under the agreement that has
3286     selected a certified service provider as the seller's agent to perform the seller's sales and use tax
3287     functions for agreement sales and use taxes, as outlined in the contract between the governing
3288     board of the agreement and the certified service provider, other than the seller's obligation
3289     under Section 59-12-124 to remit a tax on the seller's own purchases.
3290          [(76)] (77) "Model 2 seller" means a seller registered under the agreement that:
3291          (a) except as provided in Subsection [(76)] (77)(b), has selected a certified automated
3292     system to perform the seller's sales tax functions for agreement sales and use taxes; and
3293          (b) retains responsibility for remitting all of the sales tax:
3294          (i) collected by the seller; and
3295          (ii) to the appropriate local taxing jurisdiction.
3296          [(77)] (78) (a) Subject to Subsection [(77)] (78)(b), "model 3 seller" means a seller
3297     registered under the agreement that has:
3298          (i) sales in at least five states that are members of the agreement;
3299          (ii) total annual sales [revenues] revenue of at least $500,000,000;
3300          (iii) a proprietary system that calculates the amount of tax:
3301          (A) for an agreement sales and use tax; and
3302          (B) due to each local taxing jurisdiction; and
3303          (iv) entered into a performance agreement with the governing board of the agreement.
3304          (b) [For purposes of Subsection (77)(a), "model] "Model 3 seller" includes an affiliated
3305     group of sellers using the same proprietary system.
3306          [(78)] (79) "Model 4 seller" means a seller that is registered under the agreement and is
3307     not a model 1 seller, model 2 seller, or model 3 seller.
3308          [(79)] (80) "Modular home" means a modular unit as defined in Section 15A-1-302.
3309          [(80)] (81) "Motor vehicle" means the same as that term is defined in Section
3310     41-1a-102.
3311          [(81)] (82) "Oil sands" means impregnated bituminous sands that:

3312          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
3313     other hydrocarbons, or otherwise treated;
3314          (b) yield mixtures of liquid hydrocarbon; and
3315          (c) require further processing other than mechanical blending before becoming finished
3316     petroleum products.
3317          [(82)] (83) "Oil shale" means a group of fine black to dark brown shales containing
3318     kerogen material that yields petroleum upon heating and distillation.
3319          [(83)] (84) "Optional computer software maintenance contract" means a computer
3320     software maintenance contract that a customer is not obligated to purchase as a condition to the
3321     retail sale of computer software.
3322          [(84)] (85) (a) "Other fuels" means products that burn independently to produce heat or
3323     energy.
3324          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
3325     personal property.
3326          [(85)] (86) (a) "Paging service" means a telecommunications service that provides
3327     transmission of a coded radio signal for the purpose of activating a specific pager.
3328          (b) For purposes of Subsection [(85)] (86)(a), the transmission of a coded radio signal
3329     includes a transmission by message or sound.
3330          (87) "Pawn transaction" means the same as that term is defined in Section 13-32a-102.
3331          [(86)] (88) "Pawnbroker" means the same as that term is defined in Section
3332     13-32a-102.
3333          [(87) "Pawn transaction" means the same as that term is defined in Section
3334     13-32a-102.]
3335          [(88)] (89) (a) "Permanently attached to real property" means that for tangible personal
3336     property attached to real property:
3337          (i) the attachment of the tangible personal property to the real property:
3338          (A) is essential to the use of the tangible personal property; and
3339          (B) suggests that the tangible personal property will remain attached to the real
3340     property in the same place over the useful life of the tangible personal property; or
3341          (ii) if the tangible personal property is detached from the real property, the detachment
3342     would:

3343          (A) cause substantial damage to the tangible personal property; or
3344          (B) require substantial alteration or repair of the real property to which the tangible
3345     personal property is attached.
3346          (b) "Permanently attached to real property" includes:
3347          (i) the attachment of an accessory to the tangible personal property if the accessory is:
3348          (A) essential to the operation of the tangible personal property; and
3349          (B) attached only to facilitate the operation of the tangible personal property;
3350          (ii) a temporary detachment of tangible personal property from real property for a
3351     repair or renovation if the repair or renovation is performed where the tangible personal
3352     property and real property are located; or
3353          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
3354     Subsection [(88)] (89)(c)(iii) or (iv).
3355          (c) "Permanently attached to real property" does not include:
3356          (i) the attachment of portable or movable tangible personal property to real property if
3357     that portable or movable tangible personal property is attached to real property only for:
3358          (A) convenience;
3359          (B) stability; or
3360          (C) for an obvious temporary purpose;
3361          (ii) the detachment of tangible personal property from real property except for the
3362     detachment described in Subsection [(88)] (89)(b)(ii);
3363          (iii) an attachment of the following tangible personal property to real property if the
3364     attachment to real property is only through a line that supplies water, electricity, gas,
3365     telecommunications, cable, or supplies a similar item as determined by the commission by rule
3366     made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
3367          (A) a computer;
3368          (B) a telephone;
3369          (C) a television; or
3370          (D) tangible personal property similar to Subsections [(88)] (89)(c)(iii)(A) through (C)
3371     as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
3372     Administrative Rulemaking Act; or
3373          (iv) an item listed in Subsection [(129)] (135)(c).

3374          [(89)] (90) "Person" includes any individual, firm, partnership, joint venture,
3375     association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
3376     city, municipality, district, or other local governmental entity of the state, or any group or
3377     combination acting as a unit.
3378          (91) (a) "Personal transportation service" means the transportation of one or more
3379     individuals by motor vehicle.
3380          (b) "Personal transportation" includes taxicab service, limousine service, driver service,
3381     shuttle service, scenic or sightseeing transportation, and a prearranged ride as defined in
3382     Section 13-51-102.
3383          (c) "Personal transportation service" does not include:
3384          (i) services provided by or through a governmental entity;
3385          (ii) transportation by ambulance as defined in Section 26-8a-102;
3386          (iii) transportation provided in connection with a funeral; or
3387          (iv) transportation by a low-speed vehicle, as defined in Section 41-6a-102, within a
3388     county of the first class, as classified in Section 17-50-501.
3389          (92) (a) "Pet boarding or care" means the furnishing of:
3390          (i) boarding for a pet; or
3391          (ii) daytime care for a pet at a location other than the pet owner's residence where the
3392     pet is dropped off and picked up.
3393          (b) "Pet boarding or care" does not include a service described in Subsection (92)(a):
3394          (i) by a veterinarian licensed under Title 58, Chapter 28, Veterinary Practice Act, in
3395     conjunction with a veterinary medical service; or
3396          (ii) for a working animal, livestock, or a laboratory animal.
3397          (93) (a) "Pet grooming" means:
3398          (i) cleaning, maintaining, or enhancing the physical appearance of a pet; or
3399          (ii) furnishing other hygienic care for a pet.
3400          (b) "Pet grooming" does not include a service described in Subsection (93)(a):
3401          (i) by a veterinarian licensed under Title 58, Chapter 28, Veterinary Practice Act, in
3402     conjunction with a veterinary medical service; or
3403          (ii) for a working animal, livestock, or a laboratory animal.
3404          [(90)] (94) "Place of primary use":

3405          (a) for telecommunications service other than mobile telecommunications service,
3406     means the street address representative of where the customer's use of the telecommunications
3407     service primarily occurs, which shall be:
3408          (i) the residential street address of the customer; or
3409          (ii) the primary business street address of the customer; or
3410          (b) for mobile telecommunications service, means the same as that term is defined in
3411     the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
3412          [(91)] (95) (a) "Postpaid calling service" means a telecommunications service a person
3413     obtains by making a payment on a call-by-call basis:
3414          (i) through the use of a:
3415          (A) bank card;
3416          (B) credit card;
3417          (C) debit card; or
3418          (D) travel card; or
3419          (ii) by a charge made to a telephone number that is not associated with the origination
3420     or termination of the telecommunications service.
3421          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
3422     service, that would be a prepaid wireless calling service if the service were exclusively a
3423     telecommunications service.
3424          [(92)] (96) "Postproduction" means an activity related to the finishing or duplication of
3425     a medium described in Subsection 59-12-104[(54)](47)(a).
3426          [(93)] (97) "Prepaid calling service" means a telecommunications service:
3427          (a) that allows a purchaser access to telecommunications service that is exclusively
3428     telecommunications service;
3429          (b) that:
3430          (i) is paid for in advance; and
3431          (ii) enables the origination of a call using an:
3432          (A) access number; or
3433          (B) authorization code;
3434          (c) that is dialed:
3435          (i) manually; or

3436          (ii) electronically; and
3437          (d) sold in predetermined units or dollars that decline:
3438          (i) by a known amount; and
3439          (ii) with use.
3440          [(94)] (98) "Prepaid wireless calling service" means a telecommunications service:
3441          (a) that provides the right to utilize:
3442          (i) mobile wireless service; and
3443          (ii) other service that is not a telecommunications service, including:
3444          (A) the download of a product transferred electronically;
3445          (B) a content service; or
3446          (C) an ancillary service;
3447          (b) that:
3448          (i) is paid for in advance; and
3449          (ii) enables the origination of a call using an:
3450          (A) access number; or
3451          (B) authorization code;
3452          (c) that is dialed:
3453          (i) manually; or
3454          (ii) electronically; and
3455          (d) sold in predetermined units or dollars that decline:
3456          (i) by a known amount; and
3457          (ii) with use.
3458          [(95)] (99) (a) "Prepared food" means:
3459          (i) food:
3460          (A) sold in a heated state; or
3461          (B) heated by a seller;
3462          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
3463     item; or
3464          (iii) except as provided in Subsection [(95)] (99)(c), food sold with an eating utensil
3465     provided by the seller, including a:
3466          (A) plate;

3467          (B) knife;
3468          (C) fork;
3469          (D) spoon;
3470          (E) glass;
3471          (F) cup;
3472          (G) napkin; or
3473          (H) straw.
3474          (b) "Prepared food" does not include:
3475          (i) food that a seller only:
3476          (A) cuts;
3477          (B) repackages; or
3478          (C) pasteurizes; or
3479          (ii) (A) the following:
3480          (I) raw egg;
3481          (II) raw fish;
3482          (III) raw meat;
3483          (IV) raw poultry; or
3484          (V) a food containing an item described in Subsections [(95)] (99)(b)(ii)(A)(I) through
3485     (IV); and
3486          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
3487     Food and Drug Administration's Food Code that a consumer cook the items described in
3488     Subsection [(95)] (99)(b)(ii)(A) to prevent food borne illness; or
3489          (iii) the following if sold without eating utensils provided by the seller:
3490          (A) food and food ingredients sold by a seller if the seller's proper primary
3491     classification under the 2002 North American Industry Classification System of the federal
3492     Executive Office of the President, Office of Management and Budget, is manufacturing in
3493     Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
3494     Manufacturing;
3495          (B) food and food ingredients sold in an unheated state:
3496          (I) by weight or volume; and
3497          (II) as a single item; or

3498          (C) a bakery item, including:
3499          (I) a bagel;
3500          (II) a bar;
3501          (III) a biscuit;
3502          (IV) bread;
3503          (V) a bun;
3504          (VI) a cake;
3505          (VII) a cookie;
3506          (VIII) a croissant;
3507          (IX) a danish;
3508          (X) a donut;
3509          (XI) a muffin;
3510          (XII) a pastry;
3511          (XIII) a pie;
3512          (XIV) a roll;
3513          (XV) a tart;
3514          (XVI) a torte; or
3515          (XVII) a tortilla.
3516          (c) An eating utensil provided by the seller does not include the following used to
3517     transport the food:
3518          (i) a container; or
3519          (ii) packaging.
3520          [(96)] (100) "Prescription" means an order, formula, or recipe that is issued:
3521          (a) (i) orally;
3522          (ii) in writing;
3523          (iii) electronically; or
3524          (iv) by any other manner of transmission; and
3525          (b) by a licensed practitioner authorized by the laws of a state.
3526          [(97)] (101) (a) [Except as provided in Subsection (97)(b)(ii) or (iii), "prewritten]
3527     "Prewritten computer software" means computer software that is not designed and developed:
3528          (i) by the author or other creator of the computer software; and

3529          (ii) to the specifications of a specific purchaser.
3530          (b) "Prewritten computer software" includes:
3531          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
3532     software is not designed and developed:
3533          (A) by the author or other creator of the computer software; and
3534          (B) to the specifications of a specific purchaser;
3535          (ii) computer software designed and developed by the author or other creator of the
3536     computer software to the specifications of a specific purchaser if the computer software is sold
3537     to a person other than the purchaser; or
3538          (iii) except as provided in Subsection [(97)] (101)(c), prewritten computer software or
3539     a prewritten portion of prewritten computer software:
3540          (A) that is modified or enhanced to any degree; and
3541          (B) if the modification or enhancement described in Subsection [(97)] (101)(b)(iii)(A)
3542     is designed and developed to the specifications of a specific purchaser.
3543          (c) "Prewritten computer software" does not include a modification or enhancement
3544     described in Subsection [(97)] (101)(b)(iii) if the charges for the modification or enhancement
3545     are:
3546          (i) reasonable; and
3547          (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), separately stated on the
3548     invoice or other statement of price provided to the purchaser at the time of sale or later, as
3549     demonstrated by:
3550          (A) the books and records the seller keeps at the time of the transaction in the regular
3551     course of business, including books and records the seller keeps at the time of the transaction in
3552     the regular course of business for nontax purposes;
3553          (B) a preponderance of the facts and circumstances at the time of the transaction; and
3554          (C) the understanding of all of the parties to the transaction.
3555          [(98)] (102) (a) "Private communications service" means a telecommunications
3556     service:
3557          (i) that entitles a customer to exclusive or priority use of one or more communications
3558     channels between or among termination points; and
3559          (ii) regardless of the manner in which the one or more communications channels are

3560     connected.
3561          (b) "Private communications service" includes the following provided in connection
3562     with the use of one or more communications channels:
3563          (i) an extension line;
3564          (ii) a station;
3565          (iii) switching capacity; or
3566          (iv) another associated service that is provided in connection with the use of one or
3567     more communications channels as defined in Section 59-12-215.
3568          [(99)] (103) (a) [Except as provided in Subsection (99)(b), "product] "Product
3569     transferred electronically" means a product transferred electronically that would be subject to a
3570     tax under this chapter if that product was transferred in a manner other than electronically.
3571          (b) "Product transferred electronically" does not include:
3572          (i) an ancillary service;
3573          (ii) computer software; or
3574          (iii) a telecommunications service.
3575          [(100)] (104) (a) "Prosthetic device" means a device that is worn on or in the body to:
3576          (i) artificially replace a missing portion of the body;
3577          (ii) prevent or correct a physical deformity or physical malfunction; or
3578          (iii) support a weak or deformed portion of the body.
3579          (b) "Prosthetic device" includes:
3580          (i) parts used in the repairs or renovation of a prosthetic device;
3581          (ii) replacement parts for a prosthetic device;
3582          (iii) a dental prosthesis; or
3583          (iv) a hearing aid.
3584          (c) "Prosthetic device" does not include:
3585          (i) corrective eyeglasses; or
3586          (ii) contact lenses.
3587          [(101)] (105) (a) "Protective equipment" means an item:
3588          (i) for human wear; and
3589          (ii) that is:
3590          (A) designed as protection:

3591          (I) to the wearer against injury or disease; or
3592          (II) against damage or injury of other persons or property; and
3593          (B) not suitable for general use.
3594          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3595     commission shall make rules:
3596          (i) listing the items that constitute "protective equipment"; and
3597          (ii) that are consistent with the list of items that constitute "protective equipment"
3598     under the agreement.
3599          [(102)] (106) (a) For purposes of Subsection 59-12-104[(41)](36), "publication" means
3600     any written or printed matter, other than a photocopy:
3601          (i) regardless of:
3602          (A) characteristics;
3603          (B) copyright;
3604          (C) form;
3605          (D) format;
3606          (E) method of reproduction; or
3607          (F) source; and
3608          (ii) made available in printed or electronic format.
3609          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3610     commission may by rule define the term "photocopy."
3611          [(103)] (107) (a) "Purchase price" and "sales price" mean the total amount of
3612     consideration:
3613          (i) valued in money; and
3614          (ii) for which tangible personal property, a product transferred electronically, or
3615     services are:
3616          (A) sold;
3617          (B) leased; or
3618          (C) rented.
3619          (b) "Purchase price" and "sales price" include:
3620          (i) the seller's cost of the tangible personal property, a product transferred
3621     electronically, or services sold;

3622          (ii) expenses of the seller, including:
3623          (A) the cost of materials used;
3624          (B) a labor cost;
3625          (C) a service cost;
3626          (D) interest;
3627          (E) a loss;
3628          (F) the cost of transportation to the seller; or
3629          (G) a tax imposed on the seller;
3630          (iii) a delivery charge; or
3631          (iv) an installation charge;
3632          [(iii)] (v) a charge by the seller for any service necessary to complete the sale; or
3633          [(iv)] (vi) consideration a seller receives from a person other than the purchaser if:
3634          (A) (I) the seller actually receives consideration from a person other than the purchaser;
3635     and
3636          (II) the consideration described in Subsection [(103)] (107)(b)[(iv)](vi)(A)(I) is directly
3637     related to a price reduction or discount on the sale;
3638          (B) the seller has an obligation to pass the price reduction or discount through to the
3639     purchaser;
3640          (C) the amount of the consideration attributable to the sale is fixed and determinable by
3641     the seller at the time of the sale to the purchaser; and
3642          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
3643     seller to claim a price reduction or discount; and
3644          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
3645     coupon, or other documentation with the understanding that the person other than the seller
3646     will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
3647          (II) the purchaser identifies that purchaser to the seller as a member of a group or
3648     organization allowed a price reduction or discount, except that a preferred customer card that is
3649     available to any patron of a seller does not constitute membership in a group or organization
3650     allowed a price reduction or discount; or
3651          (III) the price reduction or discount is identified as a third party price reduction or
3652     discount on the:

3653          (Aa) invoice the purchaser receives; or
3654          (Bb) certificate, coupon, or other documentation the purchaser presents.
3655          (c) "Purchase price" and "sales price" do not include:
3656          (i) a discount:
3657          (A) in a form including:
3658          (I) cash;
3659          (II) term; or
3660          (III) coupon;
3661          (B) that is allowed by a seller;
3662          (C) taken by a purchaser on a sale; and
3663          (D) that is not reimbursed by a third party; or
3664          (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), the following if separately
3665     stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
3666     sale or later, as demonstrated by the books and records the seller keeps at the time of the
3667     transaction in the regular course of business, including books and records the seller keeps at the
3668     time of the transaction in the regular course of business for nontax purposes, by a
3669     preponderance of the facts and circumstances at the time of the transaction, and by the
3670     understanding of all of the parties to the transaction:
3671          (A) the following from credit extended on the sale of tangible personal property or
3672     services:
3673          (I) a carrying charge;
3674          (II) a financing charge; or
3675          (III) an interest charge;
3676          [(B) a delivery charge;]
3677          [(C) an installation charge;]
3678          [(D)] (B) a manufacturer rebate on a motor vehicle; or
3679          [(E)] (C) a tax or fee legally imposed directly on the consumer.
3680          [(104)] (108) "Purchaser" means a person to whom:
3681          (a) a sale of tangible personal property is made;
3682          (b) a product is transferred electronically; or
3683          (c) a service is furnished.

3684          [(105)] (109) "Qualifying [enterprise] data center" means [an establishment that will:
3685     (a) own and operate] a data center facility that [will house]:
3686          (a) houses a group of networked server computers in one physical location in order to
3687     [centralize the dissemination, management, and storage of] disseminate, manage, and store data
3688     and information;
3689          (b) [be] is located in the state;
3690          (c) [be] is a new operation constructed on or after July 1, 2016;
3691          (d) [consist] consists of one or more buildings that total 150,000 or more square feet;
3692          (e) [be] is owned or leased by:
3693          (i) the [establishment] operator of the data center facility; or
3694          (ii) a person under common ownership, as defined in Section 59-7-101, of the
3695     [establishment] operator of the data center facility; and
3696          (f) [be] is located on one or more parcels of land that are owned or leased by:
3697          (i) the [establishment] operator of the data center facility; or
3698          (ii) a person under common ownership, as defined in Section 59-7-101, of the
3699     [establishment] operator of the data center facility.
3700          [(106)] (110) "Regularly rented" means:
3701          (a) rented to a guest for value three or more times during a calendar year; or
3702          (b) advertised or held out to the public as a place that is regularly rented to guests for
3703     value.
3704          [(107)] (111) "Rental" means the same as that term is defined in Subsection (60).
3705          [(108)] (112) (a) [Except as provided in Subsection (108)(b), "repairs] "Repairs or
3706     renovations of tangible personal property" means:
3707          (i) a repair or renovation of tangible personal property that is not permanently attached
3708     to real property; or
3709          (ii) attaching tangible personal property or a product transferred electronically to other
3710     tangible personal property or detaching tangible personal property or a product transferred
3711     electronically from other tangible personal property if:
3712          (A) the other tangible personal property to which the tangible personal property or
3713     product transferred electronically is attached or from which the tangible personal property or
3714     product transferred electronically is detached is not permanently attached to real property; and

3715          (B) the attachment of tangible personal property or a product transferred electronically
3716     to other tangible personal property or detachment of tangible personal property or a product
3717     transferred electronically from other tangible personal property is made in conjunction with a
3718     repair or replacement of tangible personal property or a product transferred electronically.
3719          (b) "Repairs or renovations of tangible personal property" does not include:
3720          (i) attaching prewritten computer software to other tangible personal property if the
3721     other tangible personal property to which the prewritten computer software is attached is not
3722     permanently attached to real property; or
3723          (ii) detaching prewritten computer software from other tangible personal property if the
3724     other tangible personal property from which the prewritten computer software is detached is
3725     not permanently attached to real property.
3726          [(109)] (113) "Research and development" means the process of inquiry or
3727     experimentation aimed at the discovery of facts, devices, technologies, or applications and the
3728     process of preparing those devices, technologies, or applications for marketing.
3729          [(110)] (114) (a) "Residential telecommunications services" means a
3730     telecommunications service or an ancillary service that is provided to an individual for personal
3731     use:
3732          (i) at a residential address; or
3733          (ii) at an institution, including a nursing home or a school, if the telecommunications
3734     service or ancillary service is provided to and paid for by the individual residing at the
3735     institution rather than the institution.
3736          (b) For purposes of Subsection [(110)] (114)(a)(i), a residential address includes an:
3737          (i) apartment; or
3738          (ii) other individual dwelling unit.
3739          [(111)] (115) "Residential use" means the use in or around a home, apartment building,
3740     sleeping quarters, and similar facilities or accommodations.
3741          [(112)] (116) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
3742     other than:
3743          (a) resale;
3744          (b) sublease; or
3745          (c) subrent.

3746          [(113)] (117) (a) "Retailer" means any person, unless prohibited by the Constitution of
3747     the United States or federal law, that is engaged in a regularly organized business in tangible
3748     personal property or any other taxable transaction under Subsection 59-12-103(1), and who is
3749     selling to the user or consumer and not for resale.
3750          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
3751     engaged in the business of selling to users or consumers within the state.
3752          [(114)] (118) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
3753     otherwise, in any manner, of tangible personal property or any other taxable transaction under
3754     Subsection 59-12-103(1), for consideration.
3755          (b) "Sale" includes:
3756          (i) installment and credit sales;
3757          (ii) any closed transaction constituting a sale;
3758          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
3759     chapter;
3760          (iv) any transaction if the possession of property is transferred but the seller retains the
3761     title as security for the payment of the price; and
3762          (v) any transaction under which right to possession, operation, or use of any article of
3763     tangible personal property is granted under a lease or contract and the transfer of possession
3764     would be taxable if an outright sale were made.
3765          [(115)] (119) "Sale at retail" means the same as that term is defined in Subsection
3766     [(112)] (116).
3767          [(116)] (120) "Sale-leaseback transaction" means a transaction by which title to
3768     tangible personal property or a product transferred electronically that is subject to a tax under
3769     this chapter is transferred:
3770          (a) by a purchaser-lessee;
3771          (b) to a lessor;
3772          (c) for consideration; and
3773          (d) if:
3774          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
3775     of the tangible personal property or product transferred electronically;
3776          (ii) the sale of the tangible personal property or product transferred electronically to the

3777     lessor is intended as a form of financing:
3778          (A) for the tangible personal property or product transferred electronically; and
3779          (B) to the purchaser-lessee; and
3780          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
3781     is required to:
3782          (A) capitalize the tangible personal property or product transferred electronically for
3783     financial reporting purposes; and
3784          (B) account for the lease payments as payments made under a financing arrangement.
3785          [(117)] (121) "Sales price" means the same as that term is defined in Subsection
3786     [(103)] (107).
3787          [(118)] (122) (a) "Sales relating to schools" means the following sales by, amounts
3788     paid to, or amounts charged by a school:
3789          (i) sales that are directly related to the school's educational functions or activities
3790     including:
3791          (A) the sale of:
3792          (I) textbooks;
3793          (II) textbook fees;
3794          (III) laboratory fees;
3795          (IV) laboratory supplies; or
3796          (V) safety equipment;
3797          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
3798     that:
3799          (I) a student is specifically required to wear as a condition of participation in a
3800     school-related event or school-related activity; and
3801          (II) is not readily adaptable to general or continued usage to the extent that it takes the
3802     place of ordinary clothing;
3803          (C) sales of the following if the net or gross revenues generated by the sales are
3804     deposited into a school district fund or school fund dedicated to school meals:
3805          (I) food and food ingredients; or
3806          (II) prepared food; or
3807          (D) transportation charges for official school activities; or

3808          (ii) amounts paid to or amounts charged by a school for admission to a school-related
3809     event or school-related activity.
3810          (b) "Sales relating to schools" does not include:
3811          (i) bookstore sales of items that are not educational materials or supplies;
3812          (ii) except as provided in Subsection [(118)] (122)(a)(i)(B):
3813          (A) clothing;
3814          (B) clothing accessories or equipment;
3815          (C) protective equipment; or
3816          (D) sports or recreational equipment; or
3817          (iii) amounts paid to or amounts charged by a school for admission to a school-related
3818     event or school-related activity if the amounts paid or charged are passed through to a person:
3819          (A) other than a:
3820          (I) school;
3821          (II) nonprofit organization authorized by a school board or a governing body of a
3822     private school to organize and direct a competitive secondary school activity; or
3823          (III) nonprofit association authorized by a school board or a governing body of a
3824     private school to organize and direct a competitive secondary school activity; and
3825          (B) that is required to collect sales and use taxes under this chapter.
3826          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3827     commission may make rules defining the term "passed through."
3828          [(119)] (123) For purposes of this section and Section 59-12-104, "school" means:
3829          (a) an elementary school or a secondary school that:
3830          (i) is a:
3831          (A) public school; or
3832          (B) private school; and
3833          (ii) provides instruction for one or more grades kindergarten through 12; or
3834          (b) a public school district.
3835          (124) "Security system monitoring" means the service of monitoring signals from an
3836     alarm system, as defined in Section 58-55-102, regardless of whether the monitoring is
3837     performed electronically or by an individual.
3838          [(120)] (125) (a) "Seller" means a person that makes a sale, lease, or rental of:

3839          (i) tangible personal property;
3840          (ii) a product transferred electronically; or
3841          (iii) a service.
3842          (b) "Seller" includes a marketplace facilitator.
3843          (126) "Seller-hosted prewritten computer software" means prewritten computer
3844     software that is accessed through the Internet or a seller-hosted server, regardless of whether:
3845          (a) the access is permanent; or
3846          (b) any downloading occurs.
3847          [(121)] (127) (a) "Semiconductor fabricating, processing, research, or development
3848     materials" means tangible personal property or a product transferred electronically if the
3849     tangible personal property or product transferred electronically is:
3850          (i) used primarily in the process of:
3851          (A) (I) manufacturing a semiconductor;
3852          (II) fabricating a semiconductor; or
3853          (III) research or development of a:
3854          (Aa) semiconductor; or
3855          (Bb) semiconductor manufacturing process; or
3856          (B) maintaining an environment suitable for a semiconductor; or
3857          (ii) consumed primarily in the process of:
3858          (A) (I) manufacturing a semiconductor;
3859          (II) fabricating a semiconductor; or
3860          (III) research or development of a:
3861          (Aa) semiconductor; or
3862          (Bb) semiconductor manufacturing process; or
3863          (B) maintaining an environment suitable for a semiconductor.
3864          (b) "Semiconductor fabricating, processing, research, or development materials"
3865     includes:
3866          (i) parts used in the repairs or renovations of tangible personal property or a product
3867     transferred electronically described in Subsection [(121)] (127)(a); or
3868          (ii) a chemical, catalyst, or other material used to:
3869          (A) produce or induce in a semiconductor a:

3870          (I) chemical change; or
3871          (II) physical change;
3872          (B) remove impurities from a semiconductor; or
3873          (C) improve the marketable condition of a semiconductor.
3874          [(122)] (128) "Senior citizen center" means a facility having the primary purpose of
3875     providing services to the aged as defined in Section 62A-3-101.
3876          [(123)] (129) (a) [Subject to Subsections (123)(b) and (c), "short-term] "Short-term
3877     lodging consumable" means tangible personal property that:
3878          (i) a business that provides accommodations and services described in Subsection
3879     59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
3880     to a purchaser;
3881          (ii) is intended to be consumed by the purchaser; and
3882          (iii) is:
3883          (A) included in the purchase price of the accommodations and services; and
3884          (B) not separately stated on an invoice, bill of sale, or other similar document provided
3885     to the purchaser.
3886          (b) "Short-term lodging consumable" includes:
3887          (i) a beverage;
3888          (ii) a brush or comb;
3889          (iii) a cosmetic;
3890          (iv) a hair care product;
3891          (v) lotion;
3892          (vi) a magazine;
3893          (vii) makeup;
3894          (viii) a meal;
3895          (ix) mouthwash;
3896          (x) nail polish remover;
3897          (xi) a newspaper;
3898          (xii) a notepad;
3899          (xiii) a pen;
3900          (xiv) a pencil;

3901          (xv) a razor;
3902          (xvi) saline solution;
3903          (xvii) a sewing kit;
3904          (xviii) shaving cream;
3905          (xix) a shoe shine kit;
3906          (xx) a shower cap;
3907          (xxi) a snack item;
3908          (xxii) soap;
3909          (xxiii) toilet paper;
3910          (xxiv) a toothbrush;
3911          (xxv) toothpaste; or
3912          (xxvi) an item similar to Subsections [(123)] (129)(b)(i) through (xxv) as the
3913     commission may provide by rule made in accordance with Title 63G, Chapter 3, Utah
3914     Administrative Rulemaking Act.
3915          (c) "Short-term lodging consumable" does not include:
3916          (i) tangible personal property that is cleaned or washed to allow the tangible personal
3917     property to be reused; or
3918          (ii) a product transferred electronically.
3919          [(124)] (130) "Simplified electronic return" means the electronic return:
3920          (a) described in Section 318(C) of the agreement; and
3921          (b) approved by the governing board of the agreement.
3922          [(125)] (131) "Solar energy" means the sun used as the sole source of energy for
3923     producing electricity.
3924          [(126)] (132) (a) "Sports or recreational equipment" means an item:
3925          (i) designed for human use; and
3926          (ii) that is:
3927          (A) worn in conjunction with:
3928          (I) an athletic activity; or
3929          (II) a recreational activity; and
3930          (B) not suitable for general use.
3931          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the

3932     commission shall make rules:
3933          (i) listing the items that constitute "sports or recreational equipment"; and
3934          (ii) that are consistent with the list of items that constitute "sports or recreational
3935     equipment" under the agreement.
3936          [(127)] (133) "State" means the state of Utah, its departments, and agencies.
3937          [(128)] (134) "Storage" means any keeping or retention of tangible personal property or
3938     any other taxable transaction under Subsection 59-12-103(1), in this state for any purpose
3939     except sale in the regular course of business.
3940          [(129)] (135) (a) [Except as provided in Subsection (129)(d) or (e), "tangible]
3941     "Tangible personal property" means personal property that:
3942          (i) may be:
3943          (A) seen;
3944          (B) weighed;
3945          (C) measured;
3946          (D) felt; or
3947          (E) touched; or
3948          (ii) is in any manner perceptible to the senses.
3949          (b) "Tangible personal property" includes:
3950          (i) electricity;
3951          (ii) water;
3952          (iii) gas;
3953          (iv) steam; or
3954          (v) prewritten computer software, regardless of the manner in which the prewritten
3955     computer software is transferred.
3956          (c) "Tangible personal property" includes the following regardless of whether the item
3957     is attached to real property:
3958          (i) a dishwasher;
3959          (ii) a dryer;
3960          (iii) a freezer;
3961          (iv) a microwave;
3962          (v) a refrigerator;

3963          (vi) a stove;
3964          (vii) a washer; or
3965          (viii) an item similar to Subsections [(129)] (135)(c)(i) through (vii) as determined by
3966     the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
3967     Rulemaking Act.
3968          (d) "Tangible personal property" does not include a product that is transferred
3969     electronically.
3970          (e) "Tangible personal property" does not include the following if attached to real
3971     property, regardless of whether the attachment to real property is only through a line that
3972     supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
3973     commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
3974     Rulemaking Act:
3975          (i) a hot water heater;
3976          (ii) a water filtration system; or
3977          (iii) a water softener system.
3978          [(130)] (136) (a) "Telecommunications enabling or facilitating equipment, machinery,
3979     or software" means an item listed in Subsection [(130)] (136)(b) if that item is purchased or
3980     leased primarily to enable or facilitate one or more of the following to function:
3981          (i) telecommunications switching or routing equipment, machinery, or software; or
3982          (ii) telecommunications transmission equipment, machinery, or software.
3983          (b) The following apply to Subsection [(130)] (136)(a):
3984          (i) a pole;
3985          (ii) software;
3986          (iii) a supplementary power supply;
3987          (iv) temperature or environmental equipment or machinery;
3988          (v) test equipment;
3989          (vi) a tower; or
3990          (vii) equipment, machinery, or software that functions similarly to an item listed in
3991     Subsections [(130)] (136)(b)(i) through (vi) as determined by the commission by rule made in
3992     accordance with Subsection [(130)] (136)(c).
3993          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the

3994     commission may by rule define what constitutes equipment, machinery, or software that
3995     functions similarly to an item listed in Subsections [(130)] (136)(b)(i) through (vi).
3996          [(131)] (137) "Telecommunications equipment, machinery, or software required for
3997     911 service" means equipment, machinery, or software that is required to comply with 47
3998     C.F.R. Sec. 20.18.
3999          [(132)] (138) "Telecommunications maintenance or repair equipment, machinery, or
4000     software" means equipment, machinery, or software purchased or leased primarily to maintain
4001     or repair one or more of the following, regardless of whether the equipment, machinery, or
4002     software is purchased or leased as a spare part or as an upgrade or modification to one or more
4003     of the following:
4004          (a) telecommunications enabling or facilitating equipment, machinery, or software;
4005          (b) telecommunications switching or routing equipment, machinery, or software; or
4006          (c) telecommunications transmission equipment, machinery, or software.
4007          [(133)] (139) (a) "Telecommunications service" means the electronic conveyance,
4008     routing, or transmission of audio, data, video, voice, or any other information or signal to a
4009     point, or among or between points.
4010          (b) "Telecommunications service" includes:
4011          (i) an electronic conveyance, routing, or transmission with respect to which a computer
4012     processing application is used to act:
4013          (A) on the code, form, or protocol of the content;
4014          (B) for the purpose of electronic conveyance, routing, or transmission; and
4015          (C) regardless of whether the service:
4016          (I) is referred to as voice over Internet protocol service; or
4017          (II) is classified by the Federal Communications Commission as enhanced or value
4018     added;
4019          (ii) an 800 service;
4020          (iii) a 900 service;
4021          (iv) a fixed wireless service;
4022          (v) a mobile wireless service;
4023          (vi) a postpaid calling service;
4024          (vii) a prepaid calling service;

4025          (viii) a prepaid wireless calling service; or
4026          (ix) a private communications service.
4027          (c) "Telecommunications service" does not include:
4028          (i) advertising, including directory advertising;
4029          (ii) an ancillary service;
4030          (iii) a billing and collection service provided to a third party;
4031          (iv) a data processing and information service if:
4032          (A) the data processing and information service allows data to be:
4033          (I) (Aa) acquired;
4034          (Bb) generated;
4035          (Cc) processed;
4036          (Dd) retrieved; or
4037          (Ee) stored; and
4038          (II) delivered by an electronic transmission to a purchaser; and
4039          (B) the purchaser's primary purpose for the underlying transaction is the processed data
4040     or information;
4041          (v) installation or maintenance of the following on a customer's premises:
4042          (A) equipment; or
4043          (B) wiring;
4044          (vi) Internet access service;
4045          (vii) a paging service;
4046          (viii) a product transferred electronically, including:
4047          (A) music;
4048          (B) reading material;
4049          (C) a ring tone;
4050          (D) software; or
4051          (E) video;
4052          (ix) a radio and television audio and video programming service:
4053          (A) regardless of the medium; and
4054          (B) including:
4055          (I) furnishing conveyance, routing, or transmission of a television audio and video

4056     programming service by a programming service provider;
4057          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
4058          (III) audio and video programming services delivered by a commercial mobile radio
4059     service provider as defined in 47 C.F.R. Sec. 20.3;
4060          (x) a value-added nonvoice data service; or
4061          (xi) tangible personal property.
4062          [(134)] (140) (a) "Telecommunications service provider" means a person that:
4063          (i) owns, controls, operates, or manages a telecommunications service; and
4064          (ii) engages in an activity described in Subsection [(134)] (140)(a)(i) for the shared use
4065     with or resale to any person of the telecommunications service.
4066          (b) A person described in Subsection [(134)] (140)(a) is a telecommunications service
4067     provider whether or not the Public Service Commission of Utah regulates:
4068          (i) that person; or
4069          (ii) the telecommunications service that the person owns, controls, operates, or
4070     manages.
4071          [(135)] (141) (a) "Telecommunications switching or routing equipment, machinery, or
4072     software" means an item listed in Subsection [(135)] (141)(b) if that item is purchased or
4073     leased primarily for switching or routing:
4074          (i) an ancillary service;
4075          (ii) data communications;
4076          (iii) voice communications; or
4077          (iv) telecommunications service.
4078          (b) The following apply to Subsection [(135)] (141)(a):
4079          (i) a bridge;
4080          (ii) a computer;
4081          (iii) a cross connect;
4082          (iv) a modem;
4083          (v) a multiplexer;
4084          (vi) plug in circuitry;
4085          (vii) a router;
4086          (viii) software;

4087          (ix) a switch; or
4088          (x) equipment, machinery, or software that functions similarly to an item listed in
4089     Subsections [(135)] (141)(b)(i) through (ix) as determined by the commission by rule made in
4090     accordance with Subsection [(135)] (141)(c).
4091          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4092     commission may by rule define what constitutes equipment, machinery, or software that
4093     functions similarly to an item listed in Subsections [(135)] (141)(b)(i) through (ix).
4094          [(136)] (142) (a) "Telecommunications transmission equipment, machinery, or
4095     software" means an item listed in Subsection [(136)] (142)(b) if that item is purchased or
4096     leased primarily for sending, receiving, or transporting:
4097          (i) an ancillary service;
4098          (ii) data communications;
4099          (iii) voice communications; or
4100          (iv) telecommunications service.
4101          (b) The following apply to Subsection [(136)] (142)(a):
4102          (i) an amplifier;
4103          (ii) a cable;
4104          (iii) a closure;
4105          (iv) a conduit;
4106          (v) a controller;
4107          (vi) a duplexer;
4108          (vii) a filter;
4109          (viii) an input device;
4110          (ix) an input/output device;
4111          (x) an insulator;
4112          (xi) microwave machinery or equipment;
4113          (xii) an oscillator;
4114          (xiii) an output device;
4115          (xiv) a pedestal;
4116          (xv) a power converter;
4117          (xvi) a power supply;

4118          (xvii) a radio channel;
4119          (xviii) a radio receiver;
4120          (xix) a radio transmitter;
4121          (xx) a repeater;
4122          (xxi) software;
4123          (xxii) a terminal;
4124          (xxiii) a timing unit;
4125          (xxiv) a transformer;
4126          (xxv) a wire; or
4127          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
4128     Subsections [(136)] (142)(b)(i) through (xxv) as determined by the commission by rule made in
4129     accordance with Subsection [(136)] (142)(c).
4130          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4131     commission may by rule define what constitutes equipment, machinery, or software that
4132     functions similarly to an item listed in Subsections [(136)] (142)(b)(i) through (xxv).
4133          [(137) (a) "Textbook for a higher education course" means a textbook or other printed
4134     material that is required for a course:]
4135          [(i) offered by an institution of higher education; and]
4136          [(ii) that the purchaser of the textbook or other printed material attends or will attend.]
4137          [(b) "Textbook for a higher education course" includes a textbook in electronic
4138     format.]
4139          [(138)] (143) "Tobacco" means:
4140          (a) a cigarette;
4141          (b) a cigar;
4142          (c) chewing tobacco;
4143          (d) pipe tobacco; or
4144          (e) any other item that contains tobacco.
4145          [(139)] (144) "Unassisted amusement device" means an amusement device, skill
4146     device, or ride device that is started [and] or stopped by the purchaser or renter of the right to
4147     use or operate the amusement device, skill device, or ride device.
4148          [(140)] (145) (a) "Use" means the exercise of any right or power over tangible personal

4149     property, a product transferred electronically, or a service under Subsection 59-12-103(1),
4150     incident to the ownership or the leasing of that tangible personal property, product transferred
4151     electronically, or service.
4152          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
4153     property, a product transferred electronically, or a service in the regular course of business and
4154     held for resale.
4155          [(141)] (146) "Value-added nonvoice data service" means a service:
4156          (a) that otherwise meets the definition of a telecommunications service except that a
4157     computer processing application is used to act primarily for a purpose other than conveyance,
4158     routing, or transmission; and
4159          (b) with respect to which a computer processing application is used to act on data or
4160     information:
4161          (i) code;
4162          (ii) content;
4163          (iii) form; or
4164          (iv) protocol.
4165          [(142)] (147) (a) Subject to Subsection [(142)] (147)(b), "vehicle" means the following
4166     that are required to be titled, registered, or titled and registered:
4167          (i) an aircraft as defined in Section 72-10-102;
4168          (ii) a vehicle as defined in Section 41-1a-102;
4169          (iii) an off-highway vehicle as defined in Section 41-22-2; or
4170          (iv) a vessel as defined in Section 41-1a-102.
4171          (b) For purposes of Subsection 59-12-104[(33)](30) only, "vehicle" includes:
4172          (i) a vehicle described in Subsection [(142)] (147)(a); or
4173          (ii) (A) a locomotive;
4174          (B) a freight car;
4175          (C) railroad work equipment; or
4176          (D) other railroad rolling stock.
4177          [(143)] (148) "Vehicle dealer" means a person engaged in the business of buying,
4178     selling, or exchanging a vehicle [as defined in Subsection (142)].
4179          [(144)] (149) (a) "Vertical service" means an ancillary service that:

4180          (i) is offered in connection with one or more telecommunications services; and
4181          (ii) offers an advanced calling feature that allows a customer to:
4182          (A) identify a caller; and
4183          (B) manage multiple calls and call connections.
4184          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
4185     conference bridging service.
4186          [(145)] (150) (a) "Voice mail service" means an ancillary service that enables a
4187     customer to receive, send, or store a recorded message.
4188          (b) "Voice mail service" does not include a vertical service that a customer is required
4189     to have in order to utilize a voice mail service.
4190          [(146)] (151) (a) [Except as provided in Subsection (146)(b), "waste] "Waste energy
4191     facility" means a facility that generates electricity:
4192          (i) using as the primary source of energy waste materials that would be placed in a
4193     landfill or refuse pit if it were not used to generate electricity, including:
4194          (A) tires;
4195          (B) waste coal;
4196          (C) oil shale; or
4197          (D) municipal solid waste; and
4198          (ii) in amounts greater than actually required for the operation of the facility.
4199          (b) "Waste energy facility" does not include a facility that incinerates:
4200          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
4201          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
4202          [(147)] (152) "Watercraft" means a vessel as defined in Section 73-18-2.
4203          [(148)] (153) "Wind energy" means wind used as the sole source of energy to produce
4204     electricity.
4205          [(149)] (154) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
4206     geographic location by the United States Postal Service.
4207          Section 46. Section 59-12-103 is amended to read:
4208          59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
4209     tax revenue.
4210          (1) A tax is imposed on the purchaser as provided in this part on the purchase price or

4211     sales price for amounts paid or charged for the following transactions:
4212          (a) retail sales of tangible personal property made within the state;
4213          (b) amounts paid for:
4214          (i) telecommunications service, other than mobile telecommunications service or a 900
4215     service, that originates and terminates within the boundaries of this state;
4216          (ii) mobile telecommunications service that originates and terminates within the
4217     boundaries of one state only to the extent permitted by the Mobile Telecommunications
4218     Sourcing Act, 4 U.S.C. Sec. 116 et seq.; [or]
4219          (iii) a 900 service; or
4220          [(iii)] (iv) an ancillary service associated with a:
4221          (A) telecommunications service described in Subsection (1)(b)(i); [or]
4222          (B) mobile telecommunications service described in Subsection (1)(b)(ii); or
4223          (C) 900 service;
4224          (c) sales of the following for commercial use:
4225          (i) gas;
4226          (ii) electricity;
4227          (iii) heat;
4228          (iv) coal;
4229          (v) fuel oil; or
4230          (vi) other fuels;
4231          (d) sales of the following for residential use:
4232          (i) gas;
4233          (ii) electricity;
4234          (iii) heat;
4235          (iv) coal;
4236          (v) fuel oil; or
4237          (vi) other fuels;
4238          (e) sales of prepared food;
4239          (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
4240     user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
4241     exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,

4242     fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
4243     television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
4244     driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
4245     tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
4246     horseback rides, sports activities, or any other amusement, entertainment, recreation,
4247     exhibition, cultural, or athletic activity;
4248          (g) amounts paid or charged for services for repairs or renovations of tangible personal
4249     property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
4250          (i) the tangible personal property; and
4251          (ii) parts used in the repairs or renovations of the tangible personal property described
4252     in Subsection (1)(g)(i), regardless of whether:
4253          (A) any parts are actually used in the repairs or renovations of that tangible personal
4254     property; or
4255          (B) the particular parts used in the repairs or renovations of that tangible personal
4256     property are exempt from a tax under this chapter;
4257          (h) [except as provided in Subsection 59-12-104(7),] amounts paid or charged for
4258     [assisted] cleaning or washing of tangible personal property;
4259          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
4260     accommodations and services that are regularly rented for less than 30 consecutive days;
4261          (j) amounts paid or charged for laundry or dry cleaning services;
4262          (k) amounts paid or charged for leases or rentals of tangible personal property if within
4263     this state the tangible personal property is:
4264          (i) stored;
4265          (ii) used; or
4266          (iii) otherwise consumed;
4267          (l) amounts paid or charged for tangible personal property if within this state the
4268     tangible personal property is:
4269          (i) stored;
4270          (ii) used; or
4271          (iii) consumed; [and]
4272          (m) amounts paid or charged for a sale:

4273          (i) (A) of a product transferred electronically; or
4274          (B) of a repair or renovation of a product transferred electronically; and
4275          (ii) regardless of whether the sale provides:
4276          (A) a right of permanent use of the product; or
4277          (B) a right to use the product that is less than a permanent use, including a right:
4278          (I) for a definite or specified length of time; and
4279          (II) that terminates upon the occurrence of a condition[.];
4280          (n) amounts paid or charged for access to digital audio-visual works, digital audio
4281     works, digital books, or gaming services, including the streaming of or subscription for access
4282     to digital audio-visual works, digital audio works, digital books, or gaming services regardless
4283     of:
4284          (i) the delivery method; or
4285          (ii) whether the amount paid or charged for access provides a right to:
4286          (A) single-use access to the digital audio-visual works, digital audio works, digital
4287     books, or gaming services; or
4288          (B) access the digital audio-visual works, digital audio works, digital books, or gaming
4289     services through a subscription, including a right that terminates upon the occurrence of a
4290     condition;
4291          (o) amounts paid or charged for the storage, use, or other consumption of:
4292          (i) prewritten computer software delivered electronically or by load and leave; or
4293          (ii) seller-hosted prewritten computer software; and
4294          (p) amounts paid or charged for the following services:
4295          (i) security system monitoring;
4296          (ii) personal transportation that originates in the state and terminates in the state;
4297          (iii) parking or garaging a motor vehicle at a location that:
4298          (A) is designed and used for parking or garaging one or more motor vehicles,
4299     regardless of whether the location is sometimes used for other purposes; and
4300          (B) is not residential property;
4301          (iv) tow truck service as defined in Section 72-9-102, including any related fees;
4302          (v) pet boarding or care;
4303          (vi) pet grooming;

4304          (vii) dating referral services; and
4305          (viii) identity theft protection.
4306          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
4307     are imposed on a transaction described in Subsection (1) equal to the sum of:
4308          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
4309          [(A) (I) through March 31, 2019, 4.70%; and]
4310           [(II)] (A) [beginning on April 1, 2019,] 4.70% plus the rate specified in Subsection
4311     [(13)] (12)(a); and
4312          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
4313     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
4314     through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
4315     State Sales and Use Tax Act; and
4316          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
4317     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
4318     through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
4319     imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
4320          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
4321     transaction under this chapter other than this part.
4322          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax are
4323     imposed on a transaction described in Subsection (1)(d) equal to the sum of:
4324          (i) a state tax imposed on the transaction at a tax rate of 2%; and
4325          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
4326     transaction under this chapter other than this part.
4327          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax are
4328     imposed on amounts paid or charged for food and food ingredients equal to the sum of:
4329          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
4330     a tax rate of [1.75%] 4.85%; and
4331          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
4332     amounts paid or charged for food and food ingredients under this chapter other than this part.
4333          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
4334     tangible personal property other than food and food ingredients, a state tax and a local tax is

4335     imposed on the entire bundled transaction equal to the sum of:
4336          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
4337          (I) the tax rate described in Subsection (2)(a)(i)(A); and
4338          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
4339     Sales and Use Tax Act, if the location of the transaction as determined under Sections
4340     59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
4341     Additional State Sales and Use Tax Act; and
4342          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
4343     Sales and Use Tax Act, if the location of the transaction as determined under Sections
4344     59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
4345     the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
4346          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
4347     described in Subsection (2)(a)(ii).
4348          (ii) If an optional computer software maintenance contract is a bundled transaction that
4349     consists of taxable and nontaxable products that are not separately itemized on an invoice or
4350     similar billing document, the purchase of the optional computer software maintenance contract
4351     is 40% taxable under this chapter and 60% nontaxable under this chapter.
4352          (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
4353     transaction described in Subsection (2)(d)(i) or (ii):
4354          (A) if the sales price of the bundled transaction is attributable to tangible personal
4355     property, a product, or a service that is subject to taxation under this chapter and tangible
4356     personal property, a product, or service that is not subject to taxation under this chapter, the
4357     entire bundled transaction is subject to taxation under this chapter unless:
4358          (I) the seller is able to identify by reasonable and verifiable standards the tangible
4359     personal property, product, or service that is not subject to taxation under this chapter from the
4360     books and records the seller keeps in the seller's regular course of business; or
4361          (II) state or federal law provides otherwise; or
4362          (B) if the sales price of a bundled transaction is attributable to two or more items of
4363     tangible personal property, products, or services that are subject to taxation under this chapter
4364     at different rates, the entire bundled transaction is subject to taxation under this chapter at the
4365     higher tax rate unless:

4366          (I) the seller is able to identify by reasonable and verifiable standards the tangible
4367     personal property, product, or service that is subject to taxation under this chapter at the lower
4368     tax rate from the books and records the seller keeps in the seller's regular course of business; or
4369          (II) state or federal law provides otherwise.
4370          (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
4371     seller's regular course of business includes books and records the seller keeps in the regular
4372     course of business for nontax purposes.
4373          (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
4374     and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
4375     product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
4376     of tangible personal property, other property, a product, or a service that is not subject to
4377     taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
4378     the seller, at the time of the transaction:
4379          (A) separately states the portion of the transaction that is not subject to taxation under
4380     this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
4381          (B) is able to identify by reasonable and verifiable standards, from the books and
4382     records the seller keeps in the seller's regular course of business, the portion of the transaction
4383     that is not subject to taxation under this chapter.
4384          (ii) A purchaser and a seller may correct the taxability of a transaction if:
4385          (A) after the transaction occurs, the purchaser and the seller discover that the portion of
4386     the transaction that is not subject to taxation under this chapter was not separately stated on an
4387     invoice, bill of sale, or similar document provided to the purchaser because of an error or
4388     ignorance of the law; and
4389          (B) the seller is able to identify by reasonable and verifiable standards, from the books
4390     and records the seller keeps in the seller's regular course of business, the portion of the
4391     transaction that is not subject to taxation under this chapter.
4392          (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
4393     in the seller's regular course of business includes books and records the seller keeps in the
4394     regular course of business for nontax purposes.
4395          (f) (i) If the sales price of a transaction is attributable to two or more items of tangible
4396     personal property, products, or services that are subject to taxation under this chapter at

4397     different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
4398     unless the seller, at the time of the transaction:
4399          (A) separately states the items subject to taxation under this chapter at each of the
4400     different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
4401          (B) is able to identify by reasonable and verifiable standards the tangible personal
4402     property, product, or service that is subject to taxation under this chapter at the lower tax rate
4403     from the books and records the seller keeps in the seller's regular course of business.
4404          (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
4405     seller's regular course of business includes books and records the seller keeps in the regular
4406     course of business for nontax purposes.
4407          (g) Subject to Subsections (2)(h) and (i), a tax rate repeal or tax rate change for a tax
4408     rate imposed under the following shall take effect on the first day of a calendar quarter:
4409          (i) Subsection (2)(a)(i)(A);
4410          (ii) Subsection (2)(b)(i);
4411          (iii) Subsection (2)(c)(i); or
4412          (iv) Subsection (2)(d)(i)(A)(I).
4413          (h) (i) A tax rate increase takes effect on the first day of the first billing period that
4414     begins on or after the effective date of the tax rate increase if the billing period for the
4415     transaction begins before the effective date of a tax rate increase imposed under:
4416          (A) Subsection (2)(a)(i)(A);
4417          (B) Subsection (2)(b)(i);
4418          (C) Subsection (2)(c)(i); or
4419          (D) Subsection (2)(d)(i)(A)(I).
4420          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
4421     statement for the billing period is rendered on or after the effective date of the repeal of the tax
4422     or the tax rate decrease imposed under:
4423          (A) Subsection (2)(a)(i)(A);
4424          (B) Subsection (2)(b)(i);
4425          (C) Subsection (2)(c)(i); or
4426          (D) Subsection (2)(d)(i)(A)(I).
4427          (i) (i) For a tax rate described in Subsection (2)(i)(ii), if a tax due on a catalogue sale is

4428     computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
4429     change in a tax rate takes effect:
4430          (A) on the first day of a calendar quarter; and
4431          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
4432          (ii) Subsection (2)(i)(i) applies to the tax rates described in the following:
4433          (A) Subsection (2)(a)(i)(A);
4434          (B) Subsection (2)(b)(i);
4435          (C) Subsection (2)(c)(i); or
4436          (D) Subsection (2)(d)(i)(A)(I).
4437          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
4438     the commission may by rule define the term "catalogue sale."
4439          (3) (a) The following state taxes shall be deposited into the General Fund:
4440          (i) the tax imposed by Subsection (2)(a)(i)(A);
4441          (ii) the tax imposed by Subsection (2)(b)(i);
4442          (iii) the tax imposed by Subsection (2)(c)(i); or
4443          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
4444          (b) The following local taxes shall be distributed to a county, city, or town as provided
4445     in this chapter:
4446          (i) the tax imposed by Subsection (2)(a)(ii);
4447          (ii) the tax imposed by Subsection (2)(b)(ii);
4448          (iii) the tax imposed by Subsection (2)(c)(ii); and
4449          (iv) the tax imposed by Subsection (2)(d)(i)(B).
4450          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
4451     2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
4452     through (g):
4453          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
4454          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
4455          (B) for the fiscal year; or
4456          (ii) $17,500,000.
4457          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
4458     described in Subsection (4)(a) shall be transferred each year as dedicated credits to the

4459     Department of Natural Resources to:
4460          (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
4461     protect sensitive plant and animal species; or
4462          (B) award grants, up to the amount authorized by the Legislature in an appropriations
4463     act, to political subdivisions of the state to implement the measures described in Subsections
4464     79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
4465          (ii) Money transferred to the Department of Natural Resources under Subsection
4466     (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
4467     person to list or attempt to have listed a species as threatened or endangered under the
4468     Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
4469          (iii) At the end of each fiscal year:
4470          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
4471     Conservation and Development Fund created in Section 73-10-24;
4472          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
4473     Program Subaccount created in Section 73-10c-5; and
4474          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
4475     Program Subaccount created in Section 73-10c-5.
4476          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
4477     Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
4478     created in Section 4-18-106.
4479          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
4480     in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
4481     Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
4482     water rights.
4483          (ii) At the end of each fiscal year:
4484          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
4485     Conservation and Development Fund created in Section 73-10-24;
4486          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
4487     Program Subaccount created in Section 73-10c-5; and
4488          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
4489     Program Subaccount created in Section 73-10c-5.

4490          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
4491     in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
4492     Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
4493          (ii) In addition to the uses allowed of the Water Resources Conservation and
4494     Development Fund under Section 73-10-24, the Water Resources Conservation and
4495     Development Fund may also be used to:
4496          (A) conduct hydrologic and geotechnical investigations by the Division of Water
4497     Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
4498     quantifying surface and ground water resources and describing the hydrologic systems of an
4499     area in sufficient detail so as to enable local and state resource managers to plan for and
4500     accommodate growth in water use without jeopardizing the resource;
4501          (B) fund state required dam safety improvements; and
4502          (C) protect the state's interest in interstate water compact allocations, including the
4503     hiring of technical and legal staff.
4504          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
4505     in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
4506     created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
4507          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
4508     in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
4509     created in Section 73-10c-5 for use by the Division of Drinking Water to:
4510          (i) provide for the installation and repair of collection, treatment, storage, and
4511     distribution facilities for any public water system, as defined in Section 19-4-102;
4512          (ii) develop underground sources of water, including springs and wells; and
4513          (iii) develop surface water sources.
4514          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
4515     2006, the difference between the following amounts shall be expended as provided in this
4516     Subsection (5), if that difference is greater than $1:
4517          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
4518     fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
4519          (ii) $17,500,000.
4520          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:

4521          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
4522     credits; and
4523          (B) expended by the Department of Natural Resources for watershed rehabilitation or
4524     restoration.
4525          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
4526     in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
4527     created in Section 73-10-24.
4528          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
4529     remaining difference described in Subsection (5)(a) shall be:
4530          (A) transferred each fiscal year to the Division of Water Resources as dedicated
4531     credits; and
4532          (B) expended by the Division of Water Resources for cloud-seeding projects
4533     authorized by Title 73, Chapter 15, Modification of Weather.
4534          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
4535     in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
4536     created in Section 73-10-24.
4537          (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
4538     remaining difference described in Subsection (5)(a) shall be deposited into the Water
4539     Resources Conservation and Development Fund created in Section 73-10-24 for use by the
4540     Division of Water Resources for:
4541          (i) preconstruction costs:
4542          (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
4543     26, Bear River Development Act; and
4544          (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
4545     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
4546          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
4547     Chapter 26, Bear River Development Act;
4548          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
4549     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
4550          (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
4551     Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).

4552          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
4553     Subsection (5)(f), 15% of the remaining difference described in Subsection (5)(a) shall be
4554     transferred each year as dedicated credits to the Division of Water Rights to cover the costs
4555     incurred for employing additional technical staff for the administration of water rights.
4556          (f) At the end of each fiscal year, any unexpended dedicated credits described in
4557     Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
4558     Fund created in Section 73-10-24.
4559          (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
4560     amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
4561     (1) for the fiscal year shall be deposited as follows:
4562          (a) for fiscal year 2016-17 only, 100% of the revenue described in this Subsection (6)
4563     shall be deposited into the Transportation Investment Fund of 2005 created by Section
4564     72-2-124;
4565          (b) for fiscal year 2017-18 only:
4566          (i) 80% of the revenue described in this Subsection (6) shall be deposited into the
4567     Transportation Investment Fund of 2005 created by Section 72-2-124; and
4568          (ii) 20% of the revenue described in this Subsection (6) shall be deposited into the
4569     Water Infrastructure Restricted Account created by Section 73-10g-103;
4570          (c) for fiscal year 2018-19 only:
4571          (i) 60% of the revenue described in this Subsection (6) shall be deposited into the
4572     Transportation Investment Fund of 2005 created by Section 72-2-124; and
4573          (ii) 40% of the revenue described in this Subsection (6) shall be deposited into the
4574     Water Infrastructure Restricted Account created by Section 73-10g-103;
4575          (d) for fiscal year 2019-20 only:
4576          (i) 40% of the revenue described in this Subsection (6) shall be deposited into the
4577     Transportation Investment Fund of 2005 created by Section 72-2-124; and
4578          (ii) 60% of the revenue described in this Subsection (6) shall be deposited into the
4579     Water Infrastructure Restricted Account created by Section 73-10g-103;
4580          (e) for fiscal year 2020-21 only:
4581          (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
4582     Transportation Investment Fund of 2005 created by Section 72-2-124; and

4583          (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
4584     Water Infrastructure Restricted Account created by Section 73-10g-103; and
4585          (f) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
4586     in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
4587     created by Section 73-10g-103.
4588          (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
4589     Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
4590     [2012] 2020, the Division of Finance shall deposit into the Transportation Investment Fund of
4591     2005 created by Section 72-2-124:
4592          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
4593     the [revenues] revenue collected from the following taxes, which represents a portion of the
4594     approximately 17% of sales and use tax [revenues] revenue generated annually by the sales and
4595     use tax on vehicles and vehicle-related products:
4596          (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
4597          (B) the tax imposed by Subsection (2)(b)(i);
4598          (C) the tax imposed by Subsection (2)(c)(i); and
4599          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
4600          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
4601     current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
4602     (D) that exceeds the amount collected from the sales and use taxes described in Subsections
4603     (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
4604          (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
4605     the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
4606     lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
4607     generated in the current fiscal year than the total percentage of sales and use taxes deposited in
4608     the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
4609     (7)(a) equal to the product of:
4610          (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
4611     previous fiscal year; and
4612          (B) the total sales and use tax revenue generated by the taxes described in Subsections
4613     (7)(a)(i)(A) through (D) in the current fiscal year.

4614          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
4615     Subsection (7)(a) would exceed [17%] 14.31% of the [revenues] revenue collected from the
4616     sales and use taxes described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year,
4617     the Division of Finance shall deposit [17%] 14.31% of the [revenues] revenue collected from
4618     the sales and use taxes described in Subsections (7)(a)(i)(A) through (D) for the current fiscal
4619     year under Subsection (7)(a).
4620          (iii) In all subsequent fiscal years after a year in which [17%] 14.31% of the [revenues]
4621     revenue collected from the sales and use taxes described in Subsections (7)(a)(i)(A) through
4622     (D) was deposited under Subsection (7)(a), the Division of Finance shall annually deposit
4623     [17%] 14.31% of the [revenues] revenue collected from the sales and use taxes described in
4624     Subsections (7)(a)(i)(A) through (D) in the current fiscal year under Subsection (7)(a).
4625          [(8) (a) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited
4626     under Subsections (6) and (7), for the 2016-17 fiscal year only, the Division of Finance shall
4627     deposit $64,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into
4628     the Transportation Investment Fund of 2005 created by Section 72-2-124.]
4629          [(b) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
4630     Subsections (6) and (7), for the 2017-18 fiscal year only, the Division of Finance shall deposit
4631     $63,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
4632     Transportation Investment Fund of 2005 created by Section 72-2-124.]
4633          [(c) (i) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
4634     Subsections (6) and (7), and subject to Subsection (8)(c)(ii), for a fiscal year beginning on or
4635     after July 1, 2018, the commission shall annually deposit into the Transportation Investment
4636     Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under Subsection (3)(a)
4637     in an amount equal to 3.68% of the revenues collected from the following taxes:]
4638          [(A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;]
4639          [(B) the tax imposed by Subsection (2)(b)(i);]
4640          [(C) the tax imposed by Subsection (2)(c)(i); and]
4641          [(D) the tax imposed by Subsection (2)(d)(i)(A)(I).]
4642          [(ii) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
4643     reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(c)(i)
4644     by an amount that is equal to 35% of the amount of revenue generated in the current fiscal year

4645     by the portion of the tax imposed on motor and special fuel that is sold, used, or received for
4646     sale or use in this state that exceeds 29.4 cents per gallon.]
4647          [(iii)] (8) The commission shall deposit annually [deposit the amount described in
4648     Subsection (8)(c)(ii)] an amount equal to 50% of the growth in the amount of revenue collected
4649     in the current fiscal year from the tax imposed under Subsection (2)(c)(i) that exceeds the
4650     amount collected from the tax imposed under Subsection (2)(c)(i) in the 2020-2021 fiscal year
4651     into the Transit [and] Transportation Investment Fund created in Section 72-2-124.
4652          (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
4653     2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
4654     created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
4655          (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c),
4656     in addition to any amounts deposited under Subsections (6), (7), and (8), and for the 2016-17
4657     fiscal year only, the Division of Finance shall deposit into the Transportation Investment Fund
4658     of 2005 created by Section 72-2-124 the amount of tax revenue generated by a .05% tax rate on
4659     the transactions described in Subsection (1).
4660          (b) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c), and in
4661     addition to any amounts deposited under Subsections (6), (7), and (8), the Division of Finance
4662     shall deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
4663     amount of revenue described as follows:
4664          (i) for fiscal year 2017-18 only, 83.33% of the amount of revenue generated by a .05%
4665     tax rate on the transactions described in Subsection (1);
4666          (ii) for fiscal year 2018-19 only, 66.67% of the amount of revenue generated by a .05%
4667     tax rate on the transactions described in Subsection (1);
4668          (iii) for fiscal year 2019-20 only, 50% of the amount of revenue generated by a .05%
4669     tax rate on the transactions described in Subsection (1);
4670          (iv) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a
4671     .05% tax rate on the transactions described in Subsection (1); and
4672          (v) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
4673     tax rate on the transactions described in Subsection (1).
4674          (c) For purposes of Subsections (10)(a) and (b), the Division of Finance may not
4675     deposit into the Transportation Investment Fund of 2005 any tax revenue generated by amounts

4676     paid or charged for food and food ingredients, except for tax revenue generated by a bundled
4677     transaction attributable to food and food ingredients and tangible personal property other than
4678     food and food ingredients described in Subsection (2)(d).
4679          (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
4680     fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
4681     construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
4682     Finance shall, for two consecutive fiscal years, [annually] deposit annually $1,900,000 of the
4683     revenue generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation
4684     Fund, created in Section 63N-2-512.
4685          [(12) (a) Notwithstanding Subsection (3)(a), for the 2016-17 fiscal year only, the
4686     Division of Finance shall deposit $26,000,000 of the revenues generated by the taxes listed
4687     under Subsection (3)(a) into the Throughput Infrastructure Fund created by Section
4688     35A-8-308.]
4689          [(b) Notwithstanding Subsection (3)(a), for the 2017-18 fiscal year only, the Division
4690     of Finance shall deposit $27,000,000 of the revenues generated by the taxes listed under
4691     Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 35A-8-308.]
4692          [(13)] (12) (a) The rate specified in this subsection is 0.15%.
4693          (b) Notwithstanding Subsection (3)(a), the Division of Finance shall[: (i) on or before
4694     September 30, 2019, transfer the amount of revenue collected from the rate described in
4695     Subsection (13)(a) beginning on April 1, 2019, and ending on June 30, 2019, on the
4696     transactions that are subject to the sales and use tax under Subsection (2)(a)(i)(A) into the
4697     Medicaid Expansion Fund created in Section 26-36b-208; and (ii)] for a fiscal year beginning
4698     on or after July 1, 2019, [annually] transfer annually the amount of revenue collected from the
4699     rate described in Subsection [(13)] (12)(a) on the transactions that are subject to the sales and
4700     use tax under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section
4701     26-36b-208.
4702          Section 47. Section 59-12-104 is amended to read:
4703          59-12-104. Exemptions.
4704          [Exemptions from the taxes imposed by this chapter are as follows] Except as provided
4705     in Subsection 59-12-103(2)(d), the purchase price of the following are exempt from the taxes
4706     imposed by this chapter:

4707          (1) (a) sales of aviation fuel[, motor fuel, and special] or diesel fuel subject to a [Utah]
4708     state excise tax under Chapter 13, Motor and Special Fuel Tax Act; or
4709          (b) sales of motor fuel or nondiesel special fuel, as defined in Section 59-13-601, that
4710     are subject to a sales tax under Chapter 13, Part 6, Sales Tax on Motor Fuel and Special Fuel,
4711     Other than Diesel Fuel;
4712          (2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
4713     subdivisions; however, this exemption does not apply to sales of:
4714          (a) construction materials except:
4715          (i) construction materials purchased by or on behalf of institutions of the public
4716     education system as defined in Utah Constitution, Article X, Section 2, provided the
4717     construction materials are clearly identified and segregated and installed or converted to real
4718     property which is owned by institutions of the public education system; and
4719          (ii) construction materials purchased by the state, its institutions, or its political
4720     subdivisions which are installed or converted to real property by employees of the state, its
4721     institutions, or its political subdivisions; or
4722          (b) tangible personal property in connection with the construction, operation,
4723     maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or facilities
4724     providing additional project capacity, as defined in Section 11-13-103;
4725          [(3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:]
4726          [(i) the proceeds of each sale do not exceed $1; and]
4727          [(ii) the seller or operator of the vending machine reports an amount equal to 150% of
4728     the cost of the item described in Subsection (3)(b) as goods consumed; and]
4729          [(b) Subsection (3)(a) applies to:]
4730          [(i) food and food ingredients; or]
4731          [(ii) prepared food;]
4732          [(4)] (3) (a) sales of the following to a commercial airline carrier for in-flight
4733     consumption:
4734          (i) alcoholic beverages;
4735          (ii) food and food ingredients; or
4736          (iii) prepared food;
4737          (b) sales of tangible personal property or a product transferred electronically:

4738          (i) to a passenger;
4739          (ii) by a commercial airline carrier; and
4740          (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
4741          (c) services related to Subsection [(4)] (3)(a) or (b);
4742          [(5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
4743     and equipment:]
4744          [(A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
4745     North American Industry Classification System of the federal Executive Office of the
4746     President, Office of Management and Budget; and]
4747          [(II) for:]
4748          [(Aa) installation in an aircraft, including services relating to the installation of parts or
4749     equipment in the aircraft;]
4750          [(Bb) renovation of an aircraft; or]
4751          [(Cc) repair of an aircraft; or]
4752          [(B) for installation in an aircraft operated by a common carrier in interstate or foreign
4753     commerce; or]
4754          [(ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
4755     aircraft operated by a common carrier in interstate or foreign commerce; and]
4756          [(b) notwithstanding the time period of Subsection 59-1-1410(8) for filing for a refund,
4757     a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
4758     refund:]
4759          [(i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;]
4760          [(ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;]
4761          [(iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
4762     the sale prior to filing for the refund;]
4763          [(iv) for sales and use taxes paid under this chapter on the sale;]
4764          [(v) in accordance with Section 59-1-1410; and]
4765          [(vi) subject to any extension allowed for filing for a refund under Section 59-1-1410,
4766     if the person files for the refund on or before September 30, 2011;]
4767          (4) sales of parts and equipment for installation in an aircraft operated by a common
4768     carrier in interstate or foreign commerce;

4769          [(6)] (5) sales of commercials, motion picture films, prerecorded audio program tapes
4770     or records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
4771     exhibitor, distributor, or commercial television or radio broadcaster;
4772          [(7) (a) except as provided in Subsection (85) and subject to Subsection (7)(b), sales of
4773     cleaning or washing of tangible personal property if the cleaning or washing of the tangible
4774     personal property is not assisted cleaning or washing of tangible personal property;]
4775          [(b) if a seller that sells at the same business location assisted cleaning or washing of
4776     tangible personal property and cleaning or washing of tangible personal property that is not
4777     assisted cleaning or washing of tangible personal property, the exemption described in
4778     Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
4779     or washing of the tangible personal property; and]
4780          [(c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
4781     Utah Administrative Rulemaking Act, the commission may make rules:]
4782          [(i) governing the circumstances under which sales are at the same business location;
4783     and]
4784          [(ii) establishing the procedures and requirements for a seller to separately account for
4785     sales of assisted cleaning or washing of tangible personal property;]
4786          [(8)] (6) sales made to or by religious or charitable institutions in the conduct of their
4787     regular religious or charitable functions and activities, if the requirements of Section
4788     59-12-104.1 are fulfilled;
4789          [(9)] (7) sales of a vehicle of a type required to be registered under the motor vehicle
4790     laws of this state if the vehicle is:
4791          (a) not registered in this state; and
4792          (b) (i) not used in this state; or
4793          (ii) used in this state:
4794          (A) if the vehicle is not used to conduct business, for a time period that does not
4795     exceed the longer of:
4796          (I) 30 days in any calendar year; or
4797          (II) the time period necessary to transport the vehicle to the borders of this state; or
4798          (B) if the vehicle is used to conduct business, for the time period necessary to transport
4799     the vehicle to the borders of this state;

4800          [(10) (a)] (8) amounts paid for [an item described in Subsection (10)(b) if]:
4801          (a) menstrual products; or
4802          (b) a drug, syringe, or stoma supply if:
4803          (i) the item is intended for human use; and
4804          (ii) (A) a prescription was issued for the item; or
4805          (B) the item was purchased by a hospital or other medical facility; [and]
4806          [(b) (i) Subsection (10)(a) applies to:]
4807          [(A) a drug;]
4808          [(B) a syringe; or]
4809          [(C) a stoma supply; and]
4810          [(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
4811     the commission may by rule define the terms:]
4812          [(A) "syringe"; or]
4813          [(B) "stoma supply";]
4814          [(11)] (9) purchases or leases exempt under Section 19-12-201;
4815          [(12)] (10) (a) sales of an item described in Subsection [(12)] (10)(c) served by:
4816          (i) the following if the item described in Subsection [(12)] (10)(c) is not available to
4817     the general public:
4818          (A) a church; or
4819          (B) a charitable institution; or
4820          (ii) an institution of higher education if:
4821          (A) the item described in Subsection [(12)] (10)(c) is not available to the general
4822     public; or
4823          (B) the item described in Subsection [(12)] (10)(c) is prepaid as part of a student meal
4824     plan offered by the institution of higher education; or
4825          (b) sales of an item described in Subsection [(12)] (10)(c) provided for a patient by:
4826          (i) a medical facility; or
4827          (ii) a nursing facility; and
4828          (c) Subsections [(12)] (10)(a) and (b) apply to:
4829          (i) food and food ingredients;
4830          (ii) prepared food; or

4831          (iii) alcoholic beverages;
4832          [(13)] (11) (a) except as provided in Subsection [(13)] (11)(b), the sale of tangible
4833     personal property or a product transferred electronically by a person:
4834          (i) regardless of the number of transactions involving the sale of that tangible personal
4835     property or product transferred electronically by that person; and
4836          (ii) not regularly engaged in the business of selling that type of tangible personal
4837     property or product transferred electronically;
4838          (b) this Subsection [(13)] (11) does not apply if:
4839          (i) the sale is one of a series of sales of a character to indicate that the person is
4840     regularly engaged in the business of selling that type of tangible personal property or product
4841     transferred electronically;
4842          (ii) the person holds that person out as regularly engaged in the business of selling that
4843     type of tangible personal property or product transferred electronically;
4844          (iii) the person sells an item of tangible personal property or product transferred
4845     electronically that the person purchased as a sale that is exempt under Subsection [(25)] (22);
4846     or
4847           (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
4848     this state in which case the tax is based upon:
4849          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
4850     sold; or
4851          (B) in the absence of a bill of sale or other written evidence of value, the fair market
4852     value of the vehicle or vessel being sold at the time of the sale as determined by the
4853     commission; and
4854          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4855     commission shall make rules establishing the circumstances under which:
4856          (i) a person is regularly engaged in the business of selling a type of tangible personal
4857     property or product transferred electronically;
4858          (ii) a sale of tangible personal property or a product transferred electronically is one of
4859     a series of sales of a character to indicate that a person is regularly engaged in the business of
4860     selling that type of tangible personal property or product transferred electronically; or
4861          (iii) a person holds that person out as regularly engaged in the business of selling a type

4862     of tangible personal property or product transferred electronically;
4863          [(14)] (12) amounts paid or charged for a purchase or lease of machinery, equipment,
4864     normal operating repair or replacement parts, or materials, except for office equipment or
4865     office supplies, by:
4866          (a) a manufacturing facility that:
4867          (i) is located in the state; and
4868          (ii) uses or consumes the machinery, equipment, normal operating repair or
4869     replacement parts, or materials:
4870          (A) in the manufacturing process to manufacture an item sold as tangible personal
4871     property, as the commission may define that phrase in accordance with Title 63G, Chapter 3,
4872     Utah Administrative Rulemaking Act; or
4873          (B) for a scrap recycler, to process an item sold as tangible personal property, as the
4874     commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
4875     Administrative Rulemaking Act;
4876          (b) an establishment, as the commission defines that term in accordance with Title
4877     63G, Chapter 3, Utah Administrative Rulemaking Act, that:
4878          (i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
4879     Code 213113, Support Activities for Coal Mining, 213114, Support Activities for Metal
4880     Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining, of the
4881     2002 North American Industry Classification System of the federal Executive Office of the
4882     President, Office of Management and Budget;
4883          (ii) is located in the state; and
4884          (iii) uses or consumes the machinery, equipment, normal operating repair or
4885     replacement parts, or materials in:
4886          (A) the production process to produce an item sold as tangible personal property, as the
4887     commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
4888     Administrative Rulemaking Act;
4889          (B) research and development, as the commission may define that phrase in accordance
4890     with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
4891          (C) transporting, storing, or managing tailings, overburden, or similar waste materials
4892     produced from mining;

4893          (D) developing or maintaining a road, tunnel, excavation, or similar feature used in
4894     mining; or
4895          (E) preventing, controlling, or reducing dust or other pollutants from mining; or
4896          (c) an establishment, as the commission defines that term in accordance with Title 63G,
4897     Chapter 3, Utah Administrative Rulemaking Act, that:
4898          (i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North
4899     American Industry Classification System of the federal Executive Office of the President,
4900     Office of Management and Budget;
4901          (ii) is located in the state; and
4902          (iii) uses or consumes the machinery, equipment, normal operating repair or
4903     replacement parts, or materials in the operation of the web search portal;
4904          [(15)] (13) (a) sales of the following if the requirements of Subsection [(15)] (13)(b)
4905     are met:
4906          (i) tooling;
4907          (ii) special tooling;
4908          (iii) support equipment;
4909          (iv) special test equipment; or
4910          (v) parts used in the repairs or renovations of tooling or equipment described in
4911     Subsections [(15)] (13)(a)(i) through (iv); and
4912          (b) sales of tooling, equipment, or parts described in Subsection [(15)] (13)(a) are
4913     exempt if:
4914          (i) the tooling, equipment, or parts are used or consumed exclusively in the
4915     performance of any aerospace or electronics industry contract with the United States
4916     government or any subcontract under that contract; and
4917          (ii) under the terms of the contract or subcontract described in Subsection [(15)]
4918     (13)(b)(i), title to the tooling, equipment, or parts is vested in the United States government as
4919     evidenced by:
4920          (A) a government identification tag placed on the tooling, equipment, or parts; or
4921          (B) listing on a government-approved property record if placing a government
4922     identification tag on the tooling, equipment, or parts is impractical;
4923          [(16) sales of newspapers or newspaper subscriptions;]

4924          [(17)] (14) (a) except as provided in Subsection [(17)] (14)(b), tangible personal
4925     property or a product transferred electronically traded in as full or part payment of the purchase
4926     price, except that for purposes of calculating sales or use tax upon vehicles not sold by a
4927     vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
4928          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
4929     vehicle being traded in; or
4930          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
4931     fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
4932     commission; and
4933          (b) Subsection [(17)] (14)(a) does not apply to the following items of tangible personal
4934     property or products transferred electronically traded in as full or part payment of the purchase
4935     price:
4936          (i) money;
4937          (ii) electricity;
4938          (iii) water;
4939          (iv) gas; or
4940          (v) steam;
4941          [(18)] (15) (a) (i) except as provided in Subsection [(18)] (15)(b), sales of tangible
4942     personal property or a product transferred electronically used or consumed primarily and
4943     directly in farming operations, regardless of whether the tangible personal property or product
4944     transferred electronically:
4945          (A) becomes part of real estate; or
4946          (B) is installed by a[:] farmer, contractor, or subcontractor; or
4947          [(I) farmer;]
4948          [(II) contractor; or]
4949          [(III) subcontractor; or]
4950          (ii) sales of parts used in the repairs or renovations of tangible personal property or a
4951     product transferred electronically if the tangible personal property or product transferred
4952     electronically is exempt under Subsection [(18)] (15)(a)(i); and
4953          (b) amounts paid or charged for the following are subject to the taxes imposed by this
4954     chapter:

4955          (i) (A) subject to Subsection [(18)] (15)(b)(i)(B), machinery, equipment, materials, or
4956     supplies if used in a manner that is incidental to farming; and
4957          (B) tangible personal property that is considered to be used in a manner that is
4958     incidental to farming includes:
4959          (I) hand tools; or
4960          (II) maintenance and janitorial equipment and supplies;
4961          (ii) (A) subject to Subsection [(18)] (15)(b)(ii)(B), tangible personal property or a
4962     product transferred electronically if the tangible personal property or product transferred
4963     electronically is used in an activity other than farming; and
4964          (B) tangible personal property or a product transferred electronically that is considered
4965     to be used in an activity other than farming includes:
4966          (I) office equipment and supplies; or
4967          (II) equipment and supplies used in:
4968          (Aa) the sale or distribution of farm products;
4969          (Bb) research; or
4970          (Cc) transportation; or
4971          (iii) a vehicle required to be registered by the laws of this state during the period
4972     ending two years after the date of the vehicle's purchase;
4973          [(19)] (16) sales of hay;
4974          [(20)] (17) exclusive sale during the harvest season of seasonal crops, seedling plants,
4975     or garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
4976     garden, farm, or other agricultural produce is sold by:
4977          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
4978     agricultural produce;
4979          (b) an employee of the producer described in Subsection [(20)] (17)(a); or
4980          (c) a member of the immediate family of the producer described in Subsection [(20)]
4981     (17)(a);
4982          [(21)] (18) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is
4983     issued under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
4984          [(22)] (19) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
4985     nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,

4986     wholesaler, or retailer for use in packaging tangible personal property to be sold by that
4987     manufacturer, processor, wholesaler, or retailer;
4988          [(23)] (20) a product stored in the state for resale;
4989          [(24)] (21) (a) purchases of a product if:
4990          (i) the product is:
4991          (A) purchased outside of this state;
4992          (B) brought into this state:
4993          (I) at any time after the purchase described in Subsection [(24)] (21)(a)(i)(A); and
4994          (II) by a nonresident person who is not living or working in this state at the time of the
4995     purchase;
4996          (C) used for the personal use or enjoyment of the nonresident person described in
4997     Subsection [(24)] (21)(a)(i)(B)(II) while that nonresident person is within the state; and
4998          (D) not used in conducting business in this state; and
4999          (ii) for:
5000          (A) a product other than a boat described in Subsection [(24)] (21)(a)(ii)(B), the first
5001     use of the product for a purpose for which the product is designed occurs outside of this state;
5002          (B) a boat, the boat is registered outside of this state; or
5003          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
5004     outside of this state;
5005          (b) the exemption provided for in Subsection [(24)] (21)(a) does not apply to:
5006          (i) a lease or rental of a product; or
5007          (ii) a sale of a vehicle exempt under Subsection [(33)] (30); and
5008          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
5009     purposes of Subsection [(24)] (21)(a), the commission may by rule define what constitutes the
5010     following:
5011          (i) conducting business in this state if that phrase has the same meaning in this
5012     Subsection [(24)] (21) as in Subsection [(63)] (55);
5013          (ii) the first use of a product if that phrase has the same meaning in this Subsection
5014     [(24)] (21) as in Subsection [(63)] (55); or
5015          (iii) a purpose for which a product is designed if that phrase has the same meaning in
5016     this Subsection [(24)] (21) as in Subsection [(63)] (55);

5017          [(25)] (22) a product purchased for resale in the regular course of business, either in its
5018     original form or as an ingredient or component part of a manufactured or compounded product;
5019          [(26)] (23) a product upon which a sales or use tax was paid to some other state, or one
5020     of its subdivisions, except that the state shall be paid any difference between the tax paid and
5021     the tax imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is
5022     allowed if the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and
5023     Use Tax Act;
5024          [(27)] (24) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d)
5025     to a person for use in compounding a service taxable under the subsections;
5026          [(28)] (25) purchases made in accordance with the special supplemental nutrition
5027     program for women, infants, and children established in 42 U.S.C. Sec. 1786;
5028          [(29)] (26) sales or leases of rolls, rollers, refractory brick, electric motors, or other
5029     replacement parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code
5030     3312 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of
5031     the President, Office of Management and Budget;
5032          [(30)] (27) sales of a boat of a type required to be registered under Title 73, Chapter 18,
5033     State Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard
5034     motor is:
5035          (a) not registered in this state; and
5036          (b) (i) not used in this state; or
5037          (ii) used in this state:
5038          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
5039     time period that does not exceed the longer of:
5040          (I) 30 days in any calendar year; or
5041          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
5042     the borders of this state; or
5043          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
5044     period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
5045     state;
5046          [(31)] (28) sales of aircraft manufactured in Utah;
5047          [(32)] (29) amounts paid for the purchase of telecommunications service for purposes

5048     of providing telecommunications service;
5049          [(33)] (30) sales, leases, or uses of the following:
5050          (a) a vehicle by an authorized carrier; or
5051          (b) tangible personal property that is installed on a vehicle:
5052          (i) sold or leased to or used by an authorized carrier; and
5053          (ii) before the vehicle is placed in service for the first time;
5054          [(34)] (31) (a) 45% of the sales price of any new manufactured home; and
5055          (b) 100% of the sales price of any used manufactured home;
5056          [(35)] (32) sales relating to schools and fundraising sales;
5057          [(36)] (33) sales or rentals of durable medical equipment if:
5058          (a) a person presents a prescription for the durable medical equipment; and
5059          (b) the durable medical equipment is used for home use only;
5060          [(37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
5061     Section 72-11-102; and]
5062          [(b) the commission shall by rule determine the method for calculating sales exempt
5063     under Subsection (37)(a) that are not separately metered and accounted for in utility billings;]
5064          [(38)] (34) sales to a ski resort of:
5065          (a) snowmaking equipment;
5066          (b) ski slope grooming equipment;
5067          (c) passenger ropeways as defined in Section 72-11-102; or
5068          (d) parts used in the repairs or renovations of equipment or passenger ropeways
5069     described in Subsections [(38)] (34)(a) through (c);
5070          [(39)] (35) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for
5071     industrial use;
5072          [(40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
5073     amusement, entertainment, or recreation an unassisted amusement device as defined in Section
5074     59-12-102;]
5075          [(b) if a seller that sells or rents at the same business location the right to use or operate
5076     for amusement, entertainment, or recreation one or more unassisted amusement devices and
5077     one or more assisted amusement devices, the exemption described in Subsection (40)(a)
5078     applies if the seller separately accounts for the sales or rentals of the right to use or operate for

5079     amusement, entertainment, or recreation for the assisted amusement devices; and]
5080          [(c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
5081     Utah Administrative Rulemaking Act, the commission may make rules:]
5082          [(i) governing the circumstances under which sales are at the same business location;
5083     and]
5084          [(ii) establishing the procedures and requirements for a seller to separately account for
5085     the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
5086     assisted amusement devices;]
5087          [(41)] (36) (a) sales of photocopies by:
5088          (i) a governmental entity; or
5089          (ii) an entity within the state system of public education, including:
5090          (A) a school; or
5091          (B) the State Board of Education; or
5092          (b) sales of publications by a governmental entity;
5093          [(42) amounts paid for admission to an athletic event at an institution of higher
5094     education that is subject to the provisions of Title IX of the Education Amendments of 1972,
5095     20 U.S.C. Sec. 1681 et seq.;]
5096          [(43)] (37) (a) sales made to or by:
5097          (i) an area agency on aging; or
5098          (ii) a senior citizen center owned by a county, city, or town; or
5099          (b) sales made by a senior citizen center that contracts with an area agency on aging;
5100          [(44)] (38) sales or leases of semiconductor fabricating, processing, research, or
5101     development materials regardless of whether the semiconductor fabricating, processing,
5102     research, or development materials:
5103          (a) actually come into contact with a semiconductor; or
5104          (b) ultimately become incorporated into real property;
5105          [(45)] (39) an amount paid by or charged to a purchaser for accommodations and
5106     services described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under
5107     Section 59-12-104.2;
5108          [(46) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
5109     sports event registration certificate in accordance with Section 41-3-306 for the event period

5110     specified on the temporary sports event registration certificate;]
5111          [(47)] (40) (a) sales or uses of electricity, if the sales or uses are made under a retail
5112     tariff adopted by the Public Service Commission only for purchase of electricity produced from
5113     a new alternative energy source built after January 1, 2016, as designated in the tariff by the
5114     Public Service Commission; and
5115          (b) for a residential use customer only, the exemption under Subsection [(47)] (40)(a)
5116     applies only to the portion of the tariff rate a customer pays under the tariff described in
5117     Subsection [(47)] (40)(a) that exceeds the tariff rate under the tariff described in Subsection
5118     [(47)] (40)(a) that the customer would have paid absent the tariff;
5119          [(48)] (41) sales or rentals of mobility enhancing equipment if a person presents a
5120     prescription for the mobility enhancing equipment;
5121          [(49)] (42) sales of water in a:
5122          (a) pipe;
5123          (b) conduit;
5124          (c) ditch; or
5125          (d) reservoir;
5126          [(50)] (43) sales of currency or coins that constitute legal tender of a state, the United
5127     States, or a foreign nation;
5128          [(51)] (44) (a) sales of an item described in Subsection [(51)] (44)(b) if the item:
5129          (i) does not constitute legal tender of a state, the United States, or a foreign nation; and
5130          (ii) has a gold, silver, or platinum content of 50% or more; and
5131          (b) Subsection [(51)] (44)(a) applies to a gold, silver, or platinum:
5132          (i) ingot;
5133          (ii) bar;
5134          (iii) medallion; or
5135          (iv) decorative coin;
5136          [(52)] (45) amounts paid on a sale-leaseback transaction;
5137          [(53)] (46) sales of a prosthetic device:
5138          (a) for use on or in a human; and
5139          (b) (i) for which a prescription is required; or
5140          (ii) if the prosthetic device is purchased by a hospital or other medical facility;

5141          [(54)] (47) (a) except as provided in Subsection [(54)] (47)(b), purchases, leases, or
5142     rentals of machinery or equipment by an establishment described in Subsection [(54)] (47)(c) if
5143     the machinery or equipment is primarily used in the production or postproduction of the
5144     following media for commercial distribution:
5145          (i) a motion picture;
5146          (ii) a television program;
5147          (iii) a movie made for television;
5148          (iv) a music video;
5149          (v) a commercial;
5150          (vi) a documentary; or
5151          (vii) a medium similar to Subsections [(54)] (47)(a)(i) through (vi) as determined by
5152     the commission by administrative rule made in accordance with Subsection [(54)] (47)(d); or
5153          (b) purchases, leases, or rentals of machinery or equipment by an establishment
5154     described in Subsection [(54)] (47)(c) that is used for the production or postproduction of the
5155     following are subject to the taxes imposed by this chapter:
5156          (i) a live musical performance;
5157          (ii) a live news program; or
5158          (iii) a live sporting event;
5159          (c) the following establishments listed in the 1997 North American Industry
5160     Classification System of the federal Executive Office of the President, Office of Management
5161     and Budget, apply to Subsections [(54)] (47)(a) and (b):
5162          (i) NAICS Code 512110; or
5163          (ii) NAICS Code 51219; and
5164          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
5165     commission may by rule:
5166          (i) prescribe what constitutes a medium similar to Subsections [(54)] (47)(a)(i) through
5167     (vi); or
5168          (ii) define:
5169          (A) "commercial distribution";
5170          (B) "live musical performance";
5171          (C) "live news program"; or

5172          (D) "live sporting event";
5173          [(55)] (48) (a) leases of seven or more years or purchases made on or after July 1,
5174     2004, but on or before June 30, 2027, of tangible personal property that:
5175          (i) is leased or purchased for or by a facility that:
5176          (A) is an alternative energy electricity production facility;
5177          (B) is located in the state; and
5178          (C) (I) becomes operational on or after July 1, 2004; or
5179          (II) has its generation capacity increased by one or more megawatts on or after July 1,
5180     2004, as a result of the use of the tangible personal property;
5181          (ii) has an economic life of five or more years; and
5182          (iii) is used to make the facility or the increase in capacity of the facility described in
5183     Subsection [(55)] (48)(a)(i) operational up to the point of interconnection with an existing
5184     transmission grid including:
5185          (A) a wind turbine;
5186          (B) generating equipment;
5187          (C) a control and monitoring system;
5188          (D) a power line;
5189          (E) substation equipment;
5190          (F) lighting;
5191          (G) fencing;
5192          (H) pipes; or
5193          (I) other equipment used for locating a power line or pole; and
5194          (b) this Subsection [(55)] (48) does not apply to:
5195          (i) tangible personal property used in construction of:
5196          (A) a new alternative energy electricity production facility; or
5197          (B) the increase in the capacity of an alternative energy electricity production facility;
5198          (ii) contracted services required for construction and routine maintenance activities;
5199     and
5200          (iii) unless the tangible personal property is used or acquired for an increase in capacity
5201     of the facility described in Subsection [(55)] (48)(a)(i)(C)(II), tangible personal property used
5202     or acquired after:

5203          (A) the alternative energy electricity production facility described in Subsection [(55)]
5204     (48)(a)(i) is operational as described in Subsection [(55)] (48)(a)(iii); or
5205          (B) the increased capacity described in Subsection [(55)] (48)(a)(i) is operational as
5206     described in Subsection [(55)] (48)(a)(iii);
5207          [(56)] (49) (a) leases of seven or more years or purchases made on or after July 1,
5208     2004, but on or before June 30, 2027, of tangible personal property that:
5209          (i) is leased or purchased for or by a facility that:
5210          (A) is a waste energy production facility;
5211          (B) is located in the state; and
5212          (C) (I) becomes operational on or after July 1, 2004; or
5213          (II) has its generation capacity increased by one or more megawatts on or after July 1,
5214     2004, as a result of the use of the tangible personal property;
5215          (ii) has an economic life of five or more years; and
5216          (iii) is used to make the facility or the increase in capacity of the facility described in
5217     Subsection [(56)] (49)(a)(i) operational up to the point of interconnection with an existing
5218     transmission grid including:
5219          (A) generating equipment;
5220          (B) a control and monitoring system;
5221          (C) a power line;
5222          (D) substation equipment;
5223          (E) lighting;
5224          (F) fencing;
5225          (G) pipes; or
5226          (H) other equipment used for locating a power line or pole; and
5227          (b) this Subsection [(56)] (49) does not apply to:
5228          (i) tangible personal property used in construction of:
5229          (A) a new waste energy facility; or
5230          (B) the increase in the capacity of a waste energy facility;
5231          (ii) contracted services required for construction and routine maintenance activities;
5232     and
5233          (iii) unless the tangible personal property is used or acquired for an increase in capacity

5234     described in Subsection [(56)] (49)(a)(i)(C)(II), tangible personal property used or acquired
5235     after:
5236          (A) the waste energy facility described in Subsection [(56)] (49)(a)(i) is operational as
5237     described in Subsection [(56)] (49)(a)(iii); or
5238          (B) the increased capacity described in Subsection [(56)] (49)(a)(i) is operational as
5239     described in Subsection [(56)] (49)(a)(iii);
5240          [(57)] (50) (a) leases of five or more years or purchases made on or after July 1, 2004,
5241     but on or before June 30, 2027, of tangible personal property that:
5242          (i) is leased or purchased for or by a facility that:
5243          (A) is located in the state;
5244          (B) produces fuel from alternative energy, including:
5245          (I) methanol; or
5246          (II) ethanol; and
5247          (C) (I) becomes operational on or after July 1, 2004; or
5248          (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as
5249     a result of the installation of the tangible personal property;
5250          (ii) has an economic life of five or more years; and
5251          (iii) is installed on the facility described in Subsection [(57)] (50)(a)(i);
5252          (b) this Subsection [(57)] (50) does not apply to:
5253          (i) tangible personal property used in construction of:
5254          (A) a new facility described in Subsection [(57)] (50)(a)(i); or
5255          (B) the increase in capacity of the facility described in Subsection [(57)] (50)(a)(i); or
5256          (ii) contracted services required for construction and routine maintenance activities;
5257     and
5258          (iii) unless the tangible personal property is used or acquired for an increase in capacity
5259     described in Subsection [(57)] (50)(a)(i)(C)(II), tangible personal property used or acquired
5260     after:
5261          (A) the facility described in Subsection [(57)] (50)(a)(i) is operational; or
5262          (B) the increased capacity described in Subsection [(57)] (50)(a)(i) is operational;
5263          [(58)] (51) (a) subject to Subsection [(58)(b) or (c)] (51)(b), sales of tangible personal
5264     property or a product transferred electronically to a person within this state if that tangible

5265     personal property or product transferred electronically is subsequently shipped outside the state
5266     and incorporated pursuant to contract into and becomes a part of real property located outside
5267     of this state; and
5268          (b) the exemption under Subsection [(58)] (51)(a) is not allowed to the extent that the
5269     other state or political entity to which the tangible personal property is shipped imposes a sales,
5270     use, gross receipts, or other similar transaction excise tax on the transaction against which the
5271     other state or political entity allows a credit for sales and use taxes imposed by this chapter;
5272     [and]
5273          [(c) notwithstanding the time period of Subsection 59-1-1410(8) for filing for a refund,
5274     a person may claim the exemption allowed by this Subsection (58) for a sale by filing for a
5275     refund:]
5276          [(i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;]
5277          [(ii) as if this Subsection (58) as in effect on July 1, 2008, were in effect on the day on
5278     which the sale is made;]
5279          [(iii) if the person did not claim the exemption allowed by this Subsection (58) for the
5280     sale prior to filing for the refund;]
5281          [(iv) for sales and use taxes paid under this chapter on the sale;]
5282          [(v) in accordance with Section 59-1-1410; and]
5283          [(vi) subject to any extension allowed for filing for a refund under Section 59-1-1410,
5284     if the person files for the refund on or before June 30, 2011;]
5285          [(59) purchases:]
5286          [(a) of one or more of the following items in printed or electronic format:]
5287          [(i) a list containing information that includes one or more:]
5288          [(A) names; or]
5289          [(B) addresses; or]
5290          [(ii) a database containing information that includes one or more:]
5291          [(A) names; or]
5292          [(B) addresses; and]
5293          [(b) used to send direct mail;]
5294          [(60)] (52) redemptions or repurchases of a product by a person if that product was:
5295          (a) delivered to a pawnbroker as part of a pawn transaction; and

5296          (b) redeemed or repurchased within the time period established in a written agreement
5297     between the person and the pawnbroker for redeeming or repurchasing the product;
5298          [(61)] (53) (a) purchases or leases of an item described in Subsection [(61)] (53)(b) if
5299     the item:
5300          (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
5301     and
5302          (ii) has a useful economic life of one or more years; and
5303          (b) the following apply to Subsection [(61)] (53)(a):
5304          (i) telecommunications enabling or facilitating equipment, machinery, or software;
5305          (ii) telecommunications equipment, machinery, or software required for 911 service;
5306          (iii) telecommunications maintenance or repair equipment, machinery, or software;
5307          (iv) telecommunications switching or routing equipment, machinery, or software; or
5308          (v) telecommunications transmission equipment, machinery, or software;
5309          [(62)] (54) (a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of
5310     tangible personal property or a product transferred electronically that are used in the research
5311     and development of alternative energy technology; and
5312          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
5313     commission may, for purposes of Subsection [(62)] (54)(a), make rules defining what
5314     constitutes purchases of tangible personal property or a product transferred electronically that
5315     are used in the research and development of alternative energy technology;
5316          [(63)] (55) (a) purchases of tangible personal property or a product transferred
5317     electronically if:
5318          (i) the tangible personal property or product transferred electronically is:
5319          (A) purchased outside of this state;
5320          (B) brought into this state at any time after the purchase described in Subsection [(63)]
5321     (55)(a)(i)(A); and
5322          (C) used in conducting business in this state; and
5323          (ii) for:
5324          (A) tangible personal property or a product transferred electronically other than the
5325     tangible personal property described in Subsection [(63)] (55)(a)(ii)(B), the first use of the
5326     property for a purpose for which the property is designed occurs outside of this state; or

5327          (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
5328     outside of this state;
5329          (b) the exemption provided for in Subsection [(63)] (55)(a) does not apply to:
5330          (i) a lease or rental of tangible personal property or a product transferred electronically;
5331     or
5332          (ii) a sale of a vehicle exempt under Subsection [(33)] (30); and
5333          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
5334     purposes of Subsection [(63)] (55)(a), the commission may by rule define what constitutes the
5335     following:
5336          (i) conducting business in this state if that phrase has the same meaning in this
5337     Subsection [(63)] (55) as in Subsection [(24)] (21);
5338          (ii) the first use of tangible personal property or a product transferred electronically if
5339     that phrase has the same meaning in this Subsection [(63)] (55) as in Subsection [(24)] (21); or
5340          (iii) a purpose for which tangible personal property or a product transferred
5341     electronically is designed if that phrase has the same meaning in this Subsection [(63)] (55) as
5342     in Subsection [(24)] (21);
5343          [(64)] (56) sales of disposable home medical equipment or supplies if:
5344          (a) a person presents a prescription for the disposable home medical equipment or
5345     supplies;
5346          (b) the disposable home medical equipment or supplies are used exclusively by the
5347     person to whom the prescription described in Subsection [(64)] (56)(a) is issued; and
5348          (c) the disposable home medical equipment and supplies are listed as eligible for
5349     payment under:
5350          (i) Title XVIII, federal Social Security Act; or
5351          (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
5352          [(65) sales:]
5353          [(a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
5354     District Act; or]
5355          [(b) of tangible personal property to a subcontractor of a public transit district, if the
5356     tangible personal property is:]
5357          [(i) clearly identified; and]

5358          [(ii) installed or converted to real property owned by the public transit district;]
5359          [(66)] (57) sales of construction materials:
5360          (a) purchased on or after July 1, 2010;
5361          (b) purchased by, on behalf of, or for the benefit of an international airport:
5362          (i) located within a county of the first class; and
5363          (ii) that has a United States customs office on its premises; and
5364          (c) if the construction materials are:
5365          (i) clearly identified;
5366          (ii) segregated; and
5367          (iii) installed or converted to real property:
5368          (A) owned or operated by the international airport described in Subsection [(66)]
5369     (57)(b); and
5370          (B) located at the international airport described in Subsection [(66)] (57)(b);
5371          [(67)] (58) sales of construction materials:
5372          (a) purchased on or after July 1, 2008;
5373          (b) purchased by, on behalf of, or for the benefit of a new airport:
5374          (i) located within a county of the second class; and
5375          (ii) that is owned or operated by a city in which an airline as defined in Section
5376     59-2-102 is headquartered; and
5377          (c) if the construction materials are:
5378          (i) clearly identified;
5379          (ii) segregated; and
5380          (iii) installed or converted to real property:
5381          (A) owned or operated by the new airport described in Subsection [(67)] (58)(b);
5382          (B) located at the new airport described in Subsection [(67)] (58)(b); and
5383          (C) as part of the construction of the new airport described in Subsection [(67)]
5384     (58)(b);
5385          [(68) sales of fuel to a common carrier that is a railroad for use in a locomotive
5386     engine;]
5387          [(69)] (59) purchases and sales described in Section 63H-4-111;
5388          [(70)] (60) (a) sales of tangible personal property to an aircraft maintenance, repair, and

5389     overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
5390     a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
5391     lists a state or country other than this state as the location of registry of the fixed wing turbine
5392     powered aircraft; or
5393          (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
5394     provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
5395     a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
5396     lists a state or country other than this state as the location of registry of the fixed wing turbine
5397     powered aircraft;
5398          [(71) subject to Section 59-12-104.4, sales of a textbook for a higher education
5399     course:]
5400          [(a) to a person admitted to an institution of higher education; and]
5401          [(b) by a seller, other than a bookstore owned by an institution of higher education, if
5402     51% or more of that seller's sales revenue for the previous calendar quarter are sales of a
5403     textbook for a higher education course;]
5404          [(72)] (61) a license fee or tax a municipality imposes in accordance with Subsection
5405     10-1-203(5) on a purchaser from a business for which the municipality provides an enhanced
5406     level of municipal services;
5407          [(73)] (62) amounts paid or charged for construction materials used in the construction
5408     of a new or expanding life science research and development facility in the state, if the
5409     construction materials are:
5410          (a) clearly identified;
5411          (b) segregated; and
5412          (c) installed or converted to real property;
5413          [(74)] (63) amounts paid or charged for:
5414          (a) a purchase or lease of machinery and equipment that:
5415          (i) are used in performing qualified research:
5416          (A) as defined in Section 41(d), Internal Revenue Code; and
5417          (B) in the state; and
5418          (ii) have an economic life of three or more years; and
5419          (b) normal operating repair or replacement parts:

5420          (i) for the machinery and equipment described in Subsection [(74)] (63)(a); and
5421          (ii) that have an economic life of three or more years;
5422          [(75)] (64) a sale or lease of tangible personal property used in the preparation of
5423     prepared food if:
5424          (a) for a sale:
5425          (i) the ownership of the seller and the ownership of the purchaser are identical; and
5426          (ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
5427     tangible personal property prior to making the sale; or
5428          (b) for a lease:
5429          (i) the ownership of the lessor and the ownership of the lessee are identical; and
5430          (ii) the lessor or the lessee paid a tax under this chapter on the purchase of that tangible
5431     personal property prior to making the lease;
5432          [(76)] (65) (a) purchases of machinery or equipment if:
5433          (i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
5434     Gambling, and Recreation Industries, of the 2012 North American Industry Classification
5435     System of the federal Executive Office of the President, Office of Management and Budget;
5436          (ii) the machinery or equipment:
5437          (A) has an economic life of three or more years; and
5438          (B) is used by one or more persons who pay admission or user fees described in
5439     Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment; and
5440          (iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
5441          (A) amounts paid or charged as admission or user fees described in Subsection
5442     59-12-103(1)(f); and
5443          (B) subject to taxation under this chapter; and
5444          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
5445     commission may make rules for verifying that 51% of a purchaser's sales revenue for the
5446     previous calendar quarter is:
5447          (i) amounts paid or charged as admission or user fees described in Subsection
5448     59-12-103(1)(f); and
5449          (ii) subject to taxation under this chapter;
5450          [(77)] (66) purchases of a short-term lodging consumable by a business that provides

5451     accommodations and services described in Subsection 59-12-103(1)(i);
5452          [(78) amounts paid or charged to access a database:]
5453          [(a) if the primary purpose for accessing the database is to view or retrieve information
5454     from the database; and]
5455          [(b) not including amounts paid or charged for a:]
5456          [(i) digital audiowork;]
5457          [(ii) digital audio-visual work; or]
5458          [(iii) digital book;]
5459          [(79)] (67) amounts paid or charged for a purchase or lease made by an electronic
5460     financial payment service, of:
5461          (a) machinery and equipment that:
5462          (i) are used in the operation of the electronic financial payment service; and
5463          (ii) have an economic life of three or more years; and
5464          (b) normal operating repair or replacement parts that:
5465          (i) are used in the operation of the electronic financial payment service; and
5466          (ii) have an economic life of three or more years;
5467          [(80)] (68) [beginning on April 1, 2013,] sales of a fuel cell as defined in Section
5468     54-15-102;
5469          [(81)] (69) amounts paid or charged for a purchase or lease of tangible personal
5470     property or a product transferred electronically if the tangible personal property or product
5471     transferred electronically:
5472          (a) is stored, used, or consumed in the state; and
5473          (b) is temporarily brought into the state from another state:
5474          (i) during a disaster period as defined in Section 53-2a-1202;
5475          (ii) by an out-of-state business as defined in Section 53-2a-1202;
5476          (iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
5477          (iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
5478          [(82)] (70) sales of goods and services at a morale, welfare, and recreation facility, as
5479     defined in Section 39-9-102, made pursuant to Title 39, Chapter 9, State Morale, Welfare, and
5480     Recreation Program;
5481          [(83)] (71) amounts paid or charged for a purchase or lease of molten magnesium;

5482          [(84)] (72) amounts paid or charged for a purchase or lease made by a qualifying
5483     [enterprise] data center or an occupant of a qualifying data center of machinery, equipment, or
5484     normal operating repair or replacement parts, if the machinery, equipment, or normal operating
5485     repair or replacement parts:
5486          (a) are used in [the operation of the establishment; and]:
5487          (i) the operation of the qualifying data center; or
5488          (ii) the occupant's operations in the qualifying data center; and
5489          (b) have an economic life of one or more years;
5490          [(85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a
5491     vehicle that includes cleaning or washing of the interior of the vehicle;]
5492          [(86)] (73) amounts paid or charged for a purchase or lease of machinery, equipment,
5493     normal operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or
5494     supplies used or consumed:
5495          (a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
5496     in Section 63M-4-701 located in the state;
5497          (b) if the machinery, equipment, normal operating repair or replacement parts,
5498     catalysts, chemicals, reagents, solutions, or supplies are used or consumed in:
5499          (i) the production process to produce gasoline or diesel fuel, or at which blendstock is
5500     added to gasoline or diesel fuel;
5501          (ii) research and development;
5502          (iii) transporting, storing, or managing raw materials, work in process, finished
5503     products, and waste materials produced from refining gasoline or diesel fuel, or adding
5504     blendstock to gasoline or diesel fuel;
5505          (iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
5506     refining; or
5507          (v) preventing, controlling, or reducing pollutants from refining; and
5508          (c) beginning on July 1, 2021, if the person has obtained a form certified by the Office
5509     of Energy Development under Subsection 63M-4-702(2);
5510          [(87)] (74) amounts paid to or charged by a proprietor for accommodations and
5511     services, as defined in Section 63H-1-205, if the proprietor is subject to the MIDA
5512     accommodations tax imposed under Section 63H-1-205;

5513          [(88)] (75) amounts paid or charged for a purchase or lease of machinery, equipment,
5514     normal operating repair or replacement parts, or materials, except for office equipment or
5515     office supplies, by an establishment, as the commission defines that term in accordance with
5516     Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
5517          (a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
5518     American Industry Classification System of the federal Executive Office of the President,
5519     Office of Management and Budget;
5520          (b) is located in this state; and
5521          (c) uses the machinery, equipment, normal operating repair or replacement parts, or
5522     materials in the operation of the establishment; [and]
5523          [(89)] (76) amounts paid or charged for an item exempt under Section 59-12-104.10[.];
5524     and
5525          (77) if paid for through a machine that accepts only cash for payment and if the
5526     machine is the only method by which to pay:
5527          (a) sales of cleaning or washing of tangible personal property if the cleaning or
5528     washing of the tangible personal property is not assisted cleaning or washing of tangible
5529     personal property;
5530          (b) sales of food and food ingredients or prepared food from a vending machine if:
5531          (i) the proceeds of each sale do not exceed $1; and
5532          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
5533     the cost of the food and food ingredients or prepared food as goods consumed;
5534          (c) sales or rentals of the right to use or operate an unassisted amusement device for
5535     amusement, entertainment, or recreation; and
5536          (78) amounts paid or charged for tangible personal property that:
5537          (a) is not electricity, gas, machinery, equipment, vehicles, parts, office equipment, or
5538     office supplies; and
5539          (b) is consumed as part of a service described in Subsection 59-12-103(1)(g), (h), or
5540     (j).
5541          Section 48. Section 59-12-104.5 is amended to read:
5542          59-12-104.5. Revenue and Taxation Interim Committee review of sales and use
5543     taxes.

5544          The Revenue and Taxation Interim Committee shall:
5545          (1) review Subsection 59-12-104[(28)](25) before October 1 of the year after the year
5546     in which Congress permits a state to participate in the special supplemental nutrition program
5547     under 42 U.S.C. Sec. 1786 even if state or local sales taxes are collected within the state on
5548     purchases of food under that program; and
5549          (2) review Subsection 59-12-104[(21)](18) before October 1 of the year after the year
5550     in which Congress permits a state to participate in the SNAP as defined in Section 35A-1-102,
5551     even if state or local sales taxes are collected within the state on purchases of food under that
5552     program.
5553          Section 49. Section 59-12-1201 is amended to read:
5554          59-12-1201. Motor vehicle rental tax -- Rate -- Exemptions -- Administration,
5555     collection, and enforcement of tax -- Administrative charge -- Deposits.
5556          (1) (a) Except as provided in Subsection (3), there is imposed a tax of [2.5%] 4% on all
5557     short-term leases and rentals of motor vehicles not exceeding 30 days.
5558          (b) The tax imposed in this section is in addition to all other state, county, or municipal
5559     fees and taxes imposed on rentals of motor vehicles.
5560          (2) (a) Subject to Subsection (2)(b), a tax rate repeal or tax rate change for the tax
5561     imposed under Subsection (1) shall take effect on the first day of a calendar quarter.
5562          (b) (i) For a transaction subject to a tax under Subsection (1), a tax rate increase shall
5563     take effect on the first day of the first billing period:
5564          (A) that begins after the effective date of the tax rate increase; and
5565          (B) if the billing period for the transaction begins before the effective date of a tax rate
5566     increase imposed under Subsection (1).
5567          (ii) For a transaction subject to a tax under Subsection (1), the repeal of a tax or a tax
5568     rate decrease shall take effect on the first day of the last billing period:
5569          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
5570     and
5571          (B) if the billing period for the transaction begins before the effective date of the repeal
5572     of the tax or the tax rate decrease imposed under Subsection (1).
5573          (3) A motor vehicle is exempt from the tax imposed under Subsection (1) if:
5574          (a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;

5575          (b) the motor vehicle is rented as a personal household goods moving van; or
5576          (c) the lease or rental of the motor vehicle is made for the purpose of temporarily
5577     replacing a person's motor vehicle that is being repaired pursuant to a repair agreement or an
5578     insurance agreement.
5579          (4) (a) (i) The tax authorized under this section shall be administered, collected, and
5580     enforced in accordance with:
5581          (A) the same procedures used to administer, collect, and enforce the tax under Part 1,
5582     Tax Collection; and
5583          (B) Chapter 1, General Taxation Policies.
5584          (ii) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
5585     Subsections 59-12-103(4) through (10) or Section 59-12-107.1 or 59-12-123.
5586          (b) The commission shall retain and deposit an administrative charge in accordance
5587     with Section 59-1-306 from the [revenues] revenue the commission collects from a tax under
5588     this part.
5589          (c) Except as provided under Subsection (4)(b), all revenue received by the
5590     commission under this section shall be deposited daily with the state treasurer and credited
5591     monthly to the Marda Dillree Corridor Preservation Fund under Section 72-2-117.
5592          Section 50. Section 59-13-202 is amended to read:
5593          59-13-202. Refund of tax for agricultural uses on individual income and
5594     corporate franchise and income tax returns -- Application for permit for refund --
5595     Division of Finance to pay claims -- Rules permitted to enforce part -- Penalties --
5596     Revenue and Taxation Interim Committee study.
5597          (1) As used in this section:
5598          (a) (i) Except at provided in Subsection (1)(a)(ii), "claimant" means a resident or
5599     nonresident person.
5600          (ii) "Claimant" does not include an estate or trust.
5601          (b) "Estate" means a nonresident estate or a resident estate.
5602          (c) "Refundable tax credit" or "tax credit" means a tax credit that a claimant, estate, or
5603     trust may claim:
5604          (i) as provided by statute; and
5605          (ii) regardless of whether, for the taxable year for which the claimant, estate, or trust

5606     claims the tax credit, the claimant, estate, or trust has a tax liability under:
5607          (A) Chapter 7, Corporate Franchise and Income Taxes; or
5608          (B) Chapter 10, Individual Income Tax Act.
5609          (d) "Trust" means a nonresident trust or a resident trust.
5610          (2) Any claimant, estate, or trust that purchases and uses any motor fuel within the state
5611     for the purpose of operating or propelling stationary farm engines and self-propelled farm
5612     machinery used for nonhighway agricultural uses, and that has paid the tax on the motor fuel as
5613     provided by this part, is entitled to a refund of the tax subject to the conditions and limitations
5614     provided under this part.
5615          (3) (a) A claimant, estate, or trust desiring a nonhighway agricultural use refund under
5616     this part shall claim the refund as a refundable tax credit on the tax return the claimant, estate,
5617     or trust files under:
5618          (i) Chapter 7, Corporate Franchise and Income Taxes; or
5619          (ii) Chapter 10, Individual Income Tax Act.
5620          (b) A claimant, estate, or trust not subject to filing a tax return described in Subsection
5621     (3)(a) shall obtain a permit and file claims on a calendar year basis.
5622          (c) Any claimant, estate, or trust claiming a refundable tax credit under this section is
5623     required to furnish any or all of the information outlined in this section upon request of the
5624     commission.
5625          (d) A refundable tax credit under this section is allowed only on purchases on which
5626     tax is paid during the taxable year covered by the tax return.
5627          (4) In order to obtain a permit for a refund of motor fuel tax paid, an application shall
5628     be filed containing:
5629          (a) the name of the claimant, estate, or trust;
5630          (b) the claimant's, estate's, or trust's address;
5631          (c) location and number of acres owned and operated, location and number of acres
5632     rented and operated, the latter of which shall be verified by a signed statement from the legal
5633     owner;
5634          (d) number of acres planted to each crop, type of soil, and whether irrigated or dry; and
5635          (e) make, size, and type of fuel used and power rating of each piece of equipment using
5636     fuel. If the claimant, estate, or trust is an operator of self-propelled or tractor-pulled farm

5637     machinery with which the claimant, estate, or trust works for hire doing custom jobs for other
5638     farmers, the application shall include information the commission requires and shall all be
5639     contained in, and be considered part of, the original application. The claimant, estate, or trust
5640     shall also file with the application a certificate from the county assessor showing each piece of
5641     equipment using fuel. This original application and all information contained in it constitutes a
5642     permanent file with the commission in the name of the claimant, estate, or trust.
5643          (5) A claimant, estate, or trust claiming the right to a refund of motor fuel tax paid shall
5644     file a claim with the commission by April 15 of each year for the refund for the previous
5645     calendar year. The claim shall state the name and address of the claimant, estate, or trust, the
5646     number of gallons of motor fuel purchased for nonhighway agricultural uses, and the amount
5647     paid for the motor fuel. The claimant, estate, or trust shall retain the original invoice to support
5648     the claim. No more than one claim for a tax refund may be filed annually by each user of
5649     motor fuel purchased for nonhighway agricultural uses.
5650          (6) Upon commission approval of the claim for a refund, the Division of Finance shall
5651     pay the amount found due to the claimant, estate, or trust. The total amount of claims for
5652     refunds shall be paid from motor fuel taxes.
5653          (7) The commission may refuse to accept as evidence of purchase or payment any
5654     instruments that show alteration or that fail to indicate the quantity of the purchase, the price of
5655     the motor fuel, a statement that the motor fuel is purchased for purposes other than
5656     transportation, and the date of purchase and delivery. If the commission is not satisfied with
5657     the evidence submitted in connection with the claim, the commission may reject the claim or
5658     require additional evidence.
5659          (8) A claimant, estate, or trust aggrieved by the decision of the commission with
5660     respect to a refundable tax credit or refund may file a request for agency action, requesting a
5661     hearing before the commission.
5662          (9) A claimant, estate, or trust that makes any false claim, report, or statement, as
5663     claimant, estate, trust, agent, or creditor, with intent to defraud or secure a refund to which the
5664     claimant, estate, or trust is not entitled, is subject to the criminal penalties provided under
5665     Section 59-1-401, and the commission shall initiate the filing of a complaint for alleged
5666     violations of this part. In addition to these penalties, the claimant, estate, or trust may not
5667     receive any refund as a claimant, estate, or trust or as a creditor of a claimant, estate, or trust for

5668     refund for a period of five years.
5669          [(10) (a) In accordance with any rules prescribed by the commission under Subsection
5670     (10)(b), the Division of Finance shall transfer at least annually from the Transportation Fund
5671     into the Education Fund an amount equal to the amount of the refund claimed under this
5672     section.]
5673          [(b)] (10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
5674     Act, the commission may make rules providing procedures for:
5675          (i) making a refund to a claimant, estate, or trust as required by Subsection (3)(a)(i); or
5676          [(ii) making a transfer from the Transportation Fund into the Education Fund as
5677     required by Subsection (10)(a); or]
5678          [(iii)] (ii) enforcing this part.
5679          (11) (a) On or before November 30, 2017, and every three years after 2017, the
5680     Revenue and Taxation Interim Committee shall review the tax credit provided by this section
5681     and make recommendations concerning whether the tax credit should be continued, modified,
5682     or repealed.
5683          (b) In conducting the review required by Subsection (11)(a), the Revenue and Taxation
5684     Interim Committee shall:
5685          (i) schedule time on at least one committee agenda to conduct the review;
5686          (ii) invite state agencies, individuals, and organizations concerned with the credit under
5687     review to provide testimony;
5688          (iii) ensure that the recommendations described in this section include an evaluation of:
5689          (A) the cost of the tax credit to the state;
5690          (B) the purpose and effectiveness of the tax credit; and
5691          (C) the extent to which the state benefits from the tax credit; and
5692          (iv) undertake other review efforts as determined by the chairs of the Revenue and
5693     Taxation Interim Committee.
5694          Section 51. Section 59-13-323 is enacted to read:
5695          59-13-323. Additional special fuel tax on diesel fuel.
5696          (1) A supplier shall pay an additional special fuel tax on diesel fuel that is subject to
5697     the special fuel tax imposed under Section 59-13-301 in an amount equal to:
5698          (a) beginning on April 1, 2020, and ending on December 31, 2021, six cents per gallon;

5699     and
5700          (b) beginning on January 1, 2022, 10 cents per gallon.
5701          (2) (a) The commission shall deposit daily the revenue that the commission collects
5702     under this section with the state treasurer.
5703          (b) Notwithstanding Section 59-13-301, the state treasurer shall credit the revenue
5704     deposited in accordance with Subsection (2)(a) to the Transportation Investment Fund of 2005
5705     created in Section 72-2-124.
5706          (3) (a) A person entitled to a refund of a special fuel tax under this part may receive a
5707     refund of the additional special fuel tax due under this section for the same gallons that the
5708     person is entitled to a refund of a special fuel tax.
5709          (b) Notwithstanding Section 59-13-318, the total amount of claims for refunds under
5710     Subsection (3)(a) shall be paid from the Transportation Investment Fund of 2005.
5711          (4) Beginning in 2021, the commission shall submit annually on or before October 1,
5712     an electronic report to a legislative committee designated by the Legislative Management
5713     Committee that:
5714          (a) states the amount of revenue collected from the tax imposed under Section
5715     59-13-323 during the preceding fiscal year; and
5716          (b) provides an estimate of the revenue that will be collected from the tax imposed
5717     under Section 59-13-323 during the current fiscal year.
5718          Section 52. Section 59-13-601 is enacted to read:
5719     
Part 6. Sales Tax on Motor Fuel and Special Fuel, Other than Diesel Fuel

5720          59-13-601. Sales tax on motor fuel and special fuel, other than diesel fuel.
5721          (1) (a) As used in this part, "nondiesel special fuel" means special fuel, other than
5722     diesel fuel.
5723          (b) For purposes of this part, the definitions in Section 59-13-102 that contain the
5724     words special fuel in the definition shall be read as though the words special fuel were replaced
5725     with nondiesel special fuel.
5726          (2) (a) Beginning on April 1, 2020, and subject to the other provisions of this
5727          Subsection (2), a sales tax is imposed on motor fuel and nondiesel special fuel at an
5728     amount equal to the product of:
5729          (i) the rate described in Subsection 59-12-103(2)(a)(i)(A);

5730          (ii) the average daily rack price, calculated in accordance with Subsection (3) or (4);
5731     and
5732          (iii) (A) the number of gallons of motor fuel;
5733          (B) the number of diesel gallon equivalent for liquified natural gas;
5734          (C) the number of gasoline gallon equivalent for compressed natural gas or hydrogen;
5735     or
5736          (D) the number of units sold of nondiesel special fuel that is not liquified natural gas,
5737     compressed natural gas, or hydrogen.
5738          (b) (i) The distributor shall pay the tax on motor fuel.
5739          (ii) The supplier shall pay the tax on nondiesel special fuel.
5740          (c) (i) Except as provided in Subsection (2)(c)(iii), the provisions of Part 2, Motor
5741     Fuel, apply to the sales tax imposed by this section on motor fuel.
5742          (ii) Except as provided in Subsection (2)(c)(iii), the provisions of Part 3, Special Fuel,
5743     apply to the sales tax imposed by this section on nondiesel special fuel.
5744          (iii) (A) The sales tax rate on motor fuel and nondiesel special fuel is as provided in
5745     this
5746          Subsection (2).
5747          (B) The treasurer shall deposit the revenue collected from the sales tax imposed under
5748          this section into the Transportation Investment Fund of 2005 created in Section
5749     72-2-124.
5750          (C) The commission shall pay any refunds from the Transportation Investment Fund of
5751     2005created in Section 72-2-124.     
5752          (3) (a) The commission shall determine annually the average daily rack price for motor
5753     fuel.
5754          (b) For the 2020 calendar year, the commission shall make the determination required
5755     by Subsection (3)(a) by:
5756          (i) calculating the previous fiscal year statewide average rack price of a gallon of
5757     regular unleaded motor fuel, excluding federal and state excise taxes, for the 12 months ending
5758     on the previous June 30 as published by an oil pricing service; and
5759          (ii) rounding to the nearest one-hundredth of a cent.
5760          (c) For the 2021 calendar year, the commission shall make the determination required

5761     by Subsection (3)(a) by:
5762          (i) calculating the previous two fiscal years statewide average rack price of a gallon of
5763     regular unleaded motor fuel, excluding federal and state excise taxes, for the 24 months ending
5764     on the previous June 30 as published by an oil pricing service.
5765          (d) Beginning on January 1, 2022, the commission shall make the determination
5766     required by Subsection (3)(a) by:
5767          (i) calculating the previous three fiscal years statewide average rack price of a gallon of
5768     regular unleaded motor fuel, excluding federal and state excise taxes, for the 36 months ending
5769     on the previous June 30 as published by an oil pricing service; and
5770          (ii) rounding to the nearest one-hundredth of a cent.
5771          (e) If the average daily rack price of a gallon of motor fuel determined under
5772     Subsection (3)(c) or (d) is less than the average daily rack price of a gallon of motor fuel
5773     calculated in accordance with Subsection (3)(b), the average daily rack price shall be the
5774     average daily rack price calculated in accordance with Subsection (3)(b).
5775          (4) The average daily rack price for nondiesel special fuel is the product of:
5776          (a) the average daily rack price calculated in accordance with Subsection (3); and
5777          (b) the percentage calculated by dividing the rate calculated in accordance with
5778     Subsection 59-13-301(12) by the rate calculated in accordance with Subsection 59-13-201(1).
5779          (5) (a) The commission shall annually:
5780          (i) publish the average daily rack prices calculated in accordance with Subsections (3)
5781     and (4); and
5782          (ii) post or otherwise make public the average daily rack prices no later than 60 days
5783     prior to the annual effective date under Subsection (5)(b).
5784          (b) The average daily rack price described in Subsection (2) and calculated in
5785     accordance with Subsections (3) and (4) shall take effect:
5786          (i) for the 2020 calendar year, on April 1; and
5787          (ii) beginning with the 2021 calendar year, on January 1 of each year.
5788          Section 53. Section 63I-2-241 is enacted to read:
5789          63I-2-241. Repeal dates -- Title 41.
5790          Subsection 41-6a-702(5), which allows a vehicle with a clean fuel vehicle decal to
5791     travel in a lane designated for the use of high occupancy vehicles regardless of the number of

5792     occupants, is repealed September 30, 2025.
5793          Section 54. Section 63I-2-253 is amended to read:
5794          63I-2-253. Repeal dates -- Titles 53 through 53G.
5795          (1) (a) Subsections 53B-2a-103(2) and (4), regarding the composition of the UTech
5796     Board of Trustees and the transition to that composition, are repealed July 1, 2019.
5797          (b) When repealing Subsections 53B-2a-103(2) and (4), the Office of Legislative
5798     Research and General Counsel shall, in addition to its authority under Subsection 36-12-12(3),
5799     make necessary changes to subsection numbering and cross references.
5800          (2) (a) Subsection 53B-2a-108(5), regarding exceptions to the composition of a
5801     technical college board of directors, is repealed July 1, 2022.
5802          (b) When repealing Subsection 53B-2a-108(5), the Office of Legislative Research and
5803     General Counsel shall, in addition to its authority under Subsection 36-12-12(3), make
5804     necessary changes to subsection numbering and cross references.
5805          (3) Section 53B-6-105.7 is repealed July 1, 2024.
5806          (4) (a) Subsection 53B-7-705(6)(b)(ii)(A), the language that states "Except as provided
5807     in Subsection (6)(b)(ii)(B)," is repealed July 1, 2021.
5808          (b) Subsection 53B-7-705(6)(b)(ii)(B), regarding comparing a technical college's
5809     change in performance with the technical college's average performance, is repealed July 1,
5810     2021.
5811          (5) (a) Subsection 53B-7-707(3)(a)(ii), the language that states "Except as provided in
5812     Subsection (3)(b)," is repealed July 1, 2021.
5813          (b) Subsection 53B-7-707(3)(b), regarding performance data of a technical college
5814     during a fiscal year before fiscal year 2020, is repealed July 1, 2021.
5815          (6) Section 53B-8-112 is repealed July 1, 2024.
5816          (7) Section 53B-8-114 is repealed July 1, 2024.
5817          (8) (a) The following sections, regarding the Regents' scholarship program, are
5818     repealed on July 1, 2023:
5819          (i) Section 53B-8-202;
5820          (ii) Section 53B-8-203;
5821          (iii) Section 53B-8-204; and
5822          (iv) Section 53B-8-205.

5823          (b) (i) Subsection 53B-8-201(2), regarding the Regents' scholarship program for
5824     students who graduate from high school before fiscal year 2019, is repealed on July 1, 2023.
5825          (ii) When repealing Subsection 53B-8-201(2), the Office of Legislative Research and
5826     General Counsel shall, in addition to its authority under Subsection 36-12-12(3), make
5827     necessary changes to subsection numbering and cross references.
5828          (9) Section 53B-10-101 is repealed on July 1, 2027.
5829          (10) Title 53B, Chapter 18, Part 14, Uintah Basin Air Quality Research Project, is
5830     repealed July 1, 2023.
5831          (11) Section 53E-3-519 regarding school counselor services is repealed July 1, 2020.
5832          (12) Section 53E-3-520 is repealed July 1, 2021.
5833          (13) Subsection 53E-5-306(3)(b)(ii)(B), related to improving school performance and
5834     continued funding relating to the School Recognition and Reward Program, is repealed July 1,
5835     2020.
5836          (14) Section 53E-5-307 is repealed July 1, 2020.
5837          (15) In Subsections 53F-2-205(4) and (5), regarding the State Board of Education's
5838     duties if contributions from the minimum basic tax rate are overestimated or underestimated,
5839     the language that states "or 53F-2-301.5, as applicable" is repealed July 1, 2023.
5840          (16) Subsection 53F-2-301(1), relating to the years the section is not in effect, is
5841     repealed July 1, 2023.
5842          (17) In Subsection 53F-2-515(1), the language that states "or 53F-2-301.5, as
5843     applicable" is repealed July 1, 2023.
5844          (18) Section 53F-4-204 is repealed July 1, 2019.
5845          (19) In Subsection 53F-9-302(3), the language that states "or 53F-2-301.5, as
5846     applicable" is repealed July 1, 2023.
5847          (20) Section 53F-9-304 is repealed July 1, 2020.
5848          [(20)] (21) In Subsection 53F-9-305(3)(a), the language that states "or 53F-2-301.5, as
5849     applicable" is repealed July 1, 2023.
5850          [(21)] (22) In Subsection 53F-9-306(3)(a), the language that states "or 53F-2-301.5, as
5851     applicable" is repealed July 1, 2023.
5852          [(22)] (23) In Subsection 53G-3-304(1)(c)(i), the language that states "or 53F-2-301.5,
5853     as applicable" is repealed July 1, 2023.

5854          [(23)] (24) On July 1, 2023, when making changes in this section, the Office of
5855     Legislative Research and General Counsel shall, in addition to the office's authority under
5856     Subsection 36-12-12(3), make corrections necessary to ensure that sections and subsections
5857     identified in this section are complete sentences and accurately reflect the office's perception of
5858     the Legislature's intent.
5859          Section 55. Section 63I-2-259 is amended to read:
5860          63I-2-259. Repeal dates -- Title 59.
5861          [(1) Section 59-1-102 is repealed on May 14, 2019.]
5862          [(2)] (1) In Section 59-2-926, the language that states "applicable" and "or
5863     53F-2-301.5" is repealed July 1, 2023.
5864          [(3) Subsection 59-2-1007(15) is repealed on December 31, 2018.]
5865           (2) Section 59-10-1018.1 is repealed January 1, 2021.
5866          (3) Section 59-10-1113.1 is repealed January 1, 2021.
5867          (4) Subsections 59-12-102(61) and (62), which define "life science establishment" and
5868     "life science research and development facility," are repealed January 1, 2027.
5869          (5) Subsection 59-12-104(62), which provides a sales and use tax exemption related to
5870     amounts paid or charged for construction materials used in the construction of a life science
5871     research and development facility, is repealed January 1, 2027.
5872          (6) Section 59-12-104.4 is repealed April 1, 2020.
5873          Section 56. Section 63I-2-272 is amended to read:
5874          63I-2-272. Repeal dates -- Title 72.
5875          (1) Subsections 72-1-213(2) and (3)(a)(i), related to the Road Usage Charge Advisory
5876     Committee, are repealed January 1, 2022.
5877          [(2) On July 1, 2018:]
5878          [(a) in Subsection 72-2-108(2), the language that states "and except as provided in
5879     Subsection (10)" is repealed; and]
5880          [(b) in Subsection 72-2-108(4)(c)(ii)(A), the language that states ", excluding any
5881     amounts appropriated as additional support for class B and class C roads under Subsection
5882     (10)," is repealed.]
5883          [(3)] (2) Section 72-3-113 is repealed January 1, 2020.
5884          (3) Section 72-6-121 is repealed September 30, 2025.

5885          Section 57. Section 63M-4-702 is amended to read:
5886          63M-4-702. Refiner gasoline standard reporting -- Office of Energy Development
5887     certification of sales and use tax exemption eligibility.
5888          (1) (a) Beginning on July 1, 2021, a refiner that seeks to be eligible for a sales and use
5889     tax exemption under Subsection 59-12-104[(86)](73) shall annually report to the office
5890     whether the refiner's facility that is located within the state will have an average gasoline sulfur
5891     level of 10 parts per million (ppm) or less using the formulas prescribed in 40 C.F.R. Sec.
5892     80.1603, excluding the offset for credit use and transfer as prescribed in 40 C.F.R. Sec.
5893     80.1616.
5894          (b) Fuels for which a final destination outside Utah can be demonstrated or that are not
5895     subject to the standards and requirements of 40 C.F.R. Sec. 80.1603 as specified in 40 C.F.R.
5896     Sec. 80.1601 are not subject to the reporting provisions under Subsection (1)(a).
5897          (2) (a) Beginning on July 1, 2021, the office shall annually certify that the refiner is
5898     eligible for the sales and use tax exemption under Subsection 59-12-104[(86)](73):
5899          (i) on a form provided by the State Tax Commission that shall be retained by the
5900     refiner claiming the sales and use tax exemption under Subsection 59-12-104[(86)](73);
5901          (ii) if the refiner's refinery that is located within the state had an average sulfur level of
5902     10 parts per million (ppm) or less as reported under Subsection (1) in the previous calendar
5903     year; and
5904          (iii) before a taxpayer is allowed the sales and use tax exemption under Subsection
5905     59-12-104[(86)](73).
5906          (b) The certification provided by the office under Subsection (2)(a) shall be renewed
5907     annually.
5908          (c) The office:
5909          (i) shall accept a copy of a report submitted by a refiner to the Environmental
5910     Protection Agency under 40 C.F.R. Sec. 80.1652 as sufficient evidence of the refiner's average
5911     gasoline sulfur level; or
5912          (ii) may establish another reporting mechanism through rules made under Subsection
5913     (3).
5914          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
5915     office may make rules to implement this section.

5916          Section 58. Section 72-1-201 is amended to read:
5917          72-1-201. Creation of Department of Transportation -- Functions, powers, duties,
5918     rights, and responsibilities.
5919          (1) There is created the Department of Transportation which shall:
5920          (a) have the general responsibility for planning, research, design, construction,
5921     maintenance, security, and safety of state transportation systems;
5922          (b) provide administration for state transportation systems and programs;
5923          (c) implement the transportation policies of the state;
5924          (d) plan, develop, construct, and maintain state transportation systems that are safe,
5925     reliable, environmentally sensitive, and serve the needs of the traveling public, commerce, and
5926     industry;
5927          (e) establish standards and procedures regarding the technical details of administration
5928     of the state transportation systems as established by statute and administrative rule;
5929          (f) advise the governor and the Legislature about state transportation systems needs;
5930          (g) coordinate with utility companies for the reasonable, efficient, and cost-effective
5931     installation, maintenance, operation, relocation, and upgrade of utilities within state highway
5932     rights-of-way;
5933          (h) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
5934     make rules for the administration of the department, state transportation systems, and
5935     programs;
5936          (i) jointly with the commission annually report to the Transportation Interim
5937     Committee, by November 30 of each year, as to the operation, maintenance, condition,
5938     mobility, and safety needs for state transportation systems;
5939          (j) ensure that any training or certification required of a public official or public
5940     employee, as those terms are defined in Section 63G-22-102, complies with Title 63G, Chapter
5941     22, State Training and Certification Requirements, if the training or certification is required:
5942          (i) under this title;
5943          (ii) by the department; or
5944          (iii) by an agency or division within the department; [and]
5945          (k) study and make recommendations to the Legislature on potential managed lane use
5946     and implementation on selected transportation systems within the state[.]; and

5947          (l) implement one or more strategies to manage congestion on state highways and
5948     generate highway user fees, including the use of one or more high occupancy toll lanes as
5949     defined in Section 72-6-118 and implementation of the technology described in Subsection
5950     72-6-118(2)(e).
5951          (2) (a) The department shall exercise reasonable care in designing, constructing, and
5952     maintaining a state highway in a reasonably safe condition for travel.
5953          (b) Nothing in this section shall be construed as:
5954          (i) creating a private right of action; or
5955          (ii) expanding or changing the department's common law duty as described in
5956     Subsection (2)(a) for liability purposes.
5957          Section 59. Section 72-1-213.1 is amended to read:
5958          72-1-213.1. Road usage charge program.
5959          (1) As used in this section:
5960          (a) "Account manager" means an entity under contract with the department to
5961     administer and manage the road usage charge program.
5962          (b) "Alternative fuel vehicle" means the same as that term is defined in Section
5963     41-1a-102.
5964          (c) "Payment period" means the interval during which an owner is required to report
5965     mileage and pay the appropriate road usage charge according to the terms of the program.
5966          (d) "Program" means the road usage charge program established and described in this
5967     section.
5968          (2) There is established a road usage charge program as described in this section.
5969          (3) (a) The department shall implement and oversee the administration of the program,
5970     which shall begin on January 1, 2020.
5971          (b) To implement and administer the program, the department may contract with an
5972     account manager.
5973          (4) (a) The owner or lessee of an alternative fuel vehicle may apply for enrollment of
5974     the alternative fuel vehicle in the program.
5975          (b) If an application for enrollment into the program is approved by the department, the
5976     owner or lessee of an alternative fuel vehicle may participate in the program in lieu of paying
5977     the fee described in Subsection 41-1a-1206(1)(h) or (2)(b).

5978          (5) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
5979     and consistent with this section, the department:
5980          (i) shall make rules to establish:
5981          (A) processes and terms for enrollment into and withdrawal or removal from the
5982     program;
5983          (B) payment periods and other payment methods and procedures for the program;
5984          (C) standards for mileage reporting mechanisms for an owner or lessee of an
5985     alternative fuel vehicle to report mileage as part of participation in the program;
5986          (D) standards for program functions for mileage recording, payment processing,
5987     account management, and other similar aspects of the program;
5988          (E) contractual terms between an owner or lessee of an alternative fuel vehicle owner
5989     and an account manager for participation in the program;
5990          (F) contractual terms between the department and an account manager, including
5991     authority for an account manager to enforce the terms of the program;
5992          (G) procedures to provide security and protection of personal information and data
5993     connected to the program, and penalties for account managers for violating privacy protection
5994     rules;
5995          (H) penalty procedures for a program participant's failure to pay a road usage charge or
5996     tampering with a device necessary for the program; and
5997          (I) department oversight of an account manager, including privacy protection of
5998     personal information and access and auditing capability of financial and other records related to
5999     administration of the program; and
6000          (ii) may make rules to establish:
6001          (A) an enrollment cap for certain alternative fuel vehicle types to participate in the
6002     program;
6003          (B) a process for collection of an unpaid road usage charge or penalty; or
6004          (C) integration of the program with other similar programs, such as tolling.
6005          (b) The department shall make recommendations to and consult with the commission
6006     regarding road usage mileage rates for each type of alternative fuel vehicle.
6007          (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
6008     consistent with this section, the commission shall, after consultation with the department, make

6009     rules to establish the road usage charge mileage rate for each type of alternative fuel vehicle.
6010          (7) (a) Revenue generated by the road usage charge program and relevant penalties
6011     shall be deposited into the Transportation Fund.
6012          (b) The department may use revenue generated by the program to cover the costs of
6013     administering the program.
6014          (8) (a) The department may:
6015          (i) (A) impose a penalty for failure to timely pay a road usage charge according to the
6016     terms of the program or tampering with a device necessary for the program; and
6017          (B) request that the Division of Motor Vehicles place a hold on the registration of the
6018     owner's or lessee's alternative fuel vehicle for failure to pay a road usage charge according to
6019     the terms of the program;
6020          (ii) send correspondence to the owner of an alternative fuel vehicle to inform the owner
6021     or lessee of:
6022          (A) the road usage charge program, implementation, and procedures;
6023          (B) an unpaid road usage charge and the amount of the road usage charge to be paid to
6024     the department;
6025          (C) the penalty for failure to pay a road usage charge within the time period described
6026     in Subsection (8)(a)(iii); and
6027          (D) a hold being placed on the owner's or lessee's registration for the alternative fuel
6028     vehicle, if the road usage charge and penalty are not paid within the time period described in
6029     Subsection (8)(a)(iii), which would prevent the renewal of the alternative fuel vehicle's
6030     registration; and
6031          (iii) require that the owner or lessee of the alternative fuel vehicle pay the road usage
6032     charge to the department within 30 days of the date when the department sends written notice
6033     of the road usage charge to the owner or lessee.
6034          (b) The department shall send the correspondence and notice described in Subsection
6035     (8)(a) to the owner of the alternative fuel vehicle according to the terms of the program.
6036          (9) (a) The Division of Motor Vehicles and the department shall share and provide
6037     access to:
6038          (i) information pertaining to an alternative fuel vehicle and participation in the program
6039     including:

6040          [(i)] (A) registration and ownership information pertaining to an alternative fuel
6041     vehicle;
6042          [(ii)] (B) information regarding the failure of an alternative fuel vehicle owner or lessee
6043     to pay a road usage charge or penalty imposed under this section within the time period
6044     described in Subsection (8)(a)(iii); and
6045          [(iii)] (C) the status of a request for a hold on the registration of an alternative fuel
6046     vehicle[.]; and
6047          (ii) the following information, in a format that does not allow the department to
6048     identify the vehicle owner, from each certificate of emissions inspection provided in
6049     accordance with Section 41-6a-1642:
6050          (A) the odometer reading; and
6051          (B) the date of the odometer reading.
6052          (b) If the department requests a hold on the registration in accordance with this section,
6053     the Division of Motor Vehicles may not renew the registration of a motor vehicle under Title
6054     41, Chapter 1a, Part 2, Registration, until the department withdraws the hold request.
6055          (10) The owner of an alternative fuel vehicle may apply for enrollment in the program
6056     or withdraw from the program according to the terms established by the department pursuant to
6057     rules made under Subsection (5).
6058          (11) If enrolled in the program, the owner or lessee of an alternative fuel vehicle shall:
6059          (a) report mileage driven as required by the department pursuant to Subsection (5);
6060          (b) pay the road usage fee for each payment period as set by the department and the
6061     commission pursuant to Subsections (5) and (6); and
6062          (c) comply with all other provisions of this section and other requirements of the
6063     program.
6064          (12) On or before October 1 of each year, the department shall submit an electronic
6065     report to a legislative committee designated by the Legislative Management Committee that:
6066          (a) describes the amount of revenue generated by the program during the preceding
6067     fiscal year; and
6068          (b) recommends strategies for expanding enrollment in the program.
6069          Section 60. Section 72-1-213.2 is enacted to read:
6070          72-1-213.2. Reports on revenue from road usage charge program.

6071          (1) As used in this section:
6072          (a) "Committees" means the Transportation Interim Committee and the Infrastructure
6073     and General Government Appropriations Subcommittee.
6074          (b) "Program" means the same as that term is defined in Section 72-1-213.1.
6075          (2) On or before October 1, 2020, the department shall submit to the committees a plan
6076     to enroll all vehicles registered in the state in the program by December 31, 2020.
6077          (3) Beginning in 2021, the committees shall receive and consider annually, on or
6078     before October 1, an electronic report from the department that:
6079          (a) provides the participation rate in the program;
6080          (b) states for the preceding fiscal year:
6081          (i) the amount of revenue collected from the program; and
6082          (ii) the department's cost to administer the program;
6083          (c) provides for the current fiscal year, an estimate of:
6084          (i) the revenue that will be collected from the program; and
6085          (ii) the department's cost to administer the program; and
6086          (d) recommends strategies to expand enrollment in the program to meet the deadline
6087     provided in Subsection (2).
6088          (4) In a year in which the revenue generated under the program, minus cost to
6089     administer the program, equals or exceeds 25%, 50%, 75%, or 100% of the revenue collected
6090     under Section 59-13-601, the department shall include that information in the report required
6091     under Subsection (3).
6092          Section 61. Section 72-2-120 is amended to read:
6093          72-2-120. Tollway Special Revenue Fund -- Revenue.
6094          (1) There is created a special revenue fund within the Transportation Fund known as
6095     the "Tollway Special Revenue Fund."
6096          (2) The fund shall be funded from the following sources:
6097          (a) tolls collected by the department under Section 72-6-118;
6098          (b) funds received by the department through a tollway development agreement under
6099     Section 72-6-203;
6100          (c) appropriations made to the fund by the Legislature;
6101          (d) contributions from other public and private sources for deposit into the fund;

6102          (e) interest earnings on cash balances; and
6103          (f) money collected for repayments and interest on fund money.
6104          (3) The Division of Finance may create a subaccount for each tollway as defined in
6105     Section 72-6-118.
6106          (4) The commission may authorize the money deposited into the fund to be spent by
6107     the department [to establish and operate tollways and related facilities and state transportation
6108     systems, including design, construction, reconstruction, operation, maintenance, enforcement,
6109     impacts from tollways, and the acquisition of right-of-way] for any state transportation
6110     purpose.
6111          Section 62. Section 72-2-124 is amended to read:
6112          72-2-124. Transportation Investment Fund of 2005.
6113          (1) There is created a capital projects fund entitled the Transportation Investment Fund
6114     of 2005.
6115          (2) The fund consists of money generated from the following sources:
6116          (a) any voluntary contributions received for the maintenance, construction,
6117     reconstruction, or renovation of state and federal highways;
6118          (b) appropriations made to the fund by the Legislature;
6119          (c) registration fees designated under Section 41-1a-1201;
6120          (d) the sales and use tax revenues deposited into the fund in accordance with [Section
6121     59-12-103; and] Sections 59-12-103 and 59-13-601;
6122          (e) the additional special fuel tax revenues deposited into the fund in accordance with
6123     Section 59-13-323; and
6124          [(e)] (f) revenues transferred to the fund in accordance with Section 72-2-106.
6125          (3) (a) The fund shall earn interest.
6126          (b) All interest earned on fund money shall be deposited into the fund.
6127          (4) (a) Except as provided in Subsection (4)(b), the executive director may only use
6128     fund money to pay:
6129          (i) the costs of maintenance, construction, reconstruction, or renovation to state and
6130     federal highways prioritized by the Transportation Commission through the prioritization
6131     process for new transportation capacity projects adopted under Section 72-1-304;
6132          (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway

6133     projects described in Subsections 63B-18-401(2), (3), and (4);
6134          (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
6135     minus the costs paid from the County of the First Class Highway Projects Fund in accordance
6136     with Subsection 72-2-121(4)(f);
6137          (iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
6138     Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified
6139     by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the
6140     debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
6141          (v) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
6142     for projects prioritized in accordance with Section 72-2-125;
6143          (vi) all highway general obligation bonds that are intended to be paid from revenues in
6144     the Centennial Highway Fund created by Section 72-2-118;
6145          [(vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
6146     Class Highway Projects Fund created in Section 72-2-121 to be used for the purposes described
6147     in Section 72-2-121; and]
6148          [(viii)] (vii) if a political subdivision provides a contribution equal to or greater than
6149     40% of the costs needed for construction, reconstruction, or renovation of paved pedestrian or
6150     paved nonmotorized transportation for projects that:
6151          (A) mitigate traffic congestion on the state highway system;
6152          (B) are part of an active transportation plan approved by the department; and
6153          (C) are prioritized by the commission through the prioritization process for new
6154     transportation capacity projects adopted under Section 72-1-304[.]; and
6155          (viii) for a fiscal year beginning on or after July 1, 2020, to annually transfer an equal
6156     portion of $5,000,000 to each county with a population of less than 14,000, as determined by
6157     the lieutenant governor in accordance with Subsection 17-50-502(2), for expenses related to the
6158     improvement of class B roads located within the county.
6159          (b) The executive director may use fund money to exchange for an equal or greater
6160     amount of federal transportation funds to be used as provided in Subsection (4)(a).
6161          (5) (a) Except as provided in Subsection (5)(b), the executive director may not use fund
6162     money, including fund money from the Transit Transportation Investment Fund, within the
6163     boundaries of a municipality that is required to adopt a moderate income housing plan element

6164     as part of the municipality's general plan as described in Subsection 10-9a-401(3), if the
6165     municipality has failed to adopt a moderate income housing plan element as part of the
6166     municipality's general plan or has failed to implement the requirements of the moderate income
6167     housing plan as determined by the results of the Department of Workforce Service's review of
6168     the annual moderate income housing report described in Subsection 35A-8-803(1)(a)(vii).
6169          (b) Within the boundaries of a municipality that is required under Subsection
6170     10-9a-401(3) to plan for moderate income housing growth but has failed to adopt a moderate
6171     income housing plan element as part of the municipality's general plan or has failed to
6172     implement the requirements of the moderate income housing plan as determined by the results
6173     of the Department of Workforce Service's review of the annual moderate income housing
6174     report described in Subsection 35A-8-803(1)(a)(vii), the executive director:
6175          (i) may use fund money in accordance with Subsection (4)(a) for a limited-access
6176     facility;
6177          (ii) may not use fund money for the construction, reconstruction, or renovation of an
6178     interchange on a limited-access facility;
6179          (iii) may use Transit Transportation Investment Fund money for a multi-community
6180     fixed guideway public transportation project; and
6181          (iv) may not use Transit Transportation Investment Fund money for the construction,
6182     reconstruction, or renovation of a station that is part of a fixed guideway public transportation
6183     project.
6184          (6) (a) Except as provided in Subsection (6)(b), the executive director may not use fund
6185     money, including fund money from the Transit Transportation Investment Fund, within the
6186     boundaries of the unincorporated area of a county, if the county is required to adopt a moderate
6187     income housing plan element as part of the county's general plan as described in Subsection
6188     17-27a-401(3) and if the county has failed to adopt a moderate income housing plan element as
6189     part of the county's general plan or has failed to implement the requirements of the moderate
6190     income housing plan as determined by the results of the Department of Workforce Service's
6191     review of the annual moderate income housing report described in Subsection
6192     35A-8-803(1)(a)(vii).
6193          (b) Within the boundaries of the unincorporated area of a county where the county is
6194     required under Subsection 17-27a-401(3) to plan for moderate income housing growth but has

6195     failed to adopt a moderate income housing plan element as part of the county's general plan or
6196     has failed to implement the requirements of the moderate income housing plan as determined
6197     by the results of the Department of Workforce Service's review of the annual moderate income
6198     housing report described in Subsection 35A-8-803(1)(a)(vii), the executive director:
6199          (i) may use fund money in accordance with Subsection (4)(a) for a limited-access
6200     facility;
6201          (ii) may not use fund money for the construction, reconstruction, or renovation of an
6202     interchange on a limited-access facility;
6203          (iii) may use Transit Transportation Investment Fund money for a multi-community
6204     fixed guideway public transportation project; and
6205          (iv) may not use Transit Transportation Investment Fund money for the construction,
6206     reconstruction, or renovation of a station that is part of a fixed guideway public transportation
6207     project.
6208          (7) (a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued
6209     in any fiscal year, the department and the commission shall appear before the Executive
6210     Appropriations Committee of the Legislature and present the amount of bond proceeds that the
6211     department needs to provide funding for the projects identified in Subsections 63B-18-401(2),
6212     (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year.
6213          (b) The Executive Appropriations Committee of the Legislature shall review and
6214     comment on the amount of bond proceeds needed to fund the projects.
6215          (8) The Division of Finance shall, from money deposited into the fund, transfer the
6216     amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
6217     Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt service or
6218     sinking fund.
6219          (9) (a) There is created in the Transportation Investment Fund of 2005 the Transit
6220     Transportation Investment Fund.
6221          (b) The fund shall be funded by:
6222          (i) contributions deposited into the fund in accordance with Section 59-12-103;
6223          (ii) appropriations into the account by the Legislature;
6224          (iii) private contributions; and
6225          (iv) donations or grants from public or private entities.

6226          (c) (i) The fund shall earn interest.
6227          (ii) All interest earned on fund money shall be deposited into the fund.
6228          (d) Subject to Subsection (9)(e), the Legislature may appropriate money from the fund
6229     for public transit capital development of new capacity projects to be used as prioritized by the
6230     commission.
6231          (e) (i) The Legislature may only appropriate money from the fund for a public transit
6232     capital development project or pedestrian or nonmotorized transportation project that provides
6233     connection to the public transit system if the public transit district or political subdivision
6234     provides funds of equal to or greater than 40% of the costs needed for the project.
6235          (ii) A public transit district or political subdivision may use money derived from a loan
6236     granted pursuant to Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund, to provide all or
6237     part of the 40% requirement described in Subsection (9)(e)(i) if:
6238          (A) the loan is approved by the commission as required in Title 72, Chapter 2, Part 2,
6239     State Infrastructure Bank Fund; and
6240          (B) the proposed capital project has been prioritized by the commission pursuant to
6241     Section 72-1-303.
6242          Section 63. Section 72-6-118 is amended to read:
6243          72-6-118. Definitions -- Establishment and operation of tollways -- Imposition
6244     and collection of tolls -- Amount of tolls -- Rulemaking.
6245          (1) As used in this section:
6246          (a) (i) ["High] Before January 1, 2025, "high occupancy toll lane" means a high
6247     occupancy vehicle lane designated under Section 41-6a-702 that may be used by an operator of
6248     a vehicle carrying less than the number of persons specified for the high occupancy vehicle
6249     lane if the operator of the vehicle pays a toll or fee.
6250          (ii) On or after January 1, 2025, "high occupancy toll lane" means a high occupancy
6251     vehicle lane designated under Section 41-6a-702 that may be used by an operator of a vehicle
6252     only if:
6253          (A) the vehicle is carrying three or more occupants; or
6254          (B) the operator pays a toll or fee.
6255          (b) "Toll" means any tax, fee, or charge assessed for the specific use of a tollway.
6256          (c) "Toll lane" means a designated new highway or additional lane capacity that is

6257     constructed, operated, or maintained for which a toll is charged for its use.
6258          (d) (i) "Tollway" means a highway, highway lane, bridge, path, tunnel, or right-of-way
6259     designed and used as a transportation route that is constructed, operated, or maintained through
6260     the use of toll revenues.
6261          (ii) "Tollway" includes a high occupancy toll lane and a toll lane.
6262          (e) "Tollway development agreement" has the same meaning as defined in Section
6263     72-6-202.
6264          (2) Subject to the provisions of Subsection (3), the department may:
6265          (a) establish, expand, and operate tollways and related facilities for the purpose of
6266     funding in whole or in part the acquisition of right-of-way and the design, construction,
6267     reconstruction, operation, enforcement, and maintenance of or impacts from a transportation
6268     route for use by the public;
6269          (b) enter into contracts, agreements, licenses, franchises, tollway development
6270     agreements, or other arrangements to implement this section;
6271          (c) impose and collect tolls on any tollway established under this section, including
6272     collection of past due payment of a toll or penalty;
6273          (d) grant exclusive or nonexclusive rights to a private entity to impose and collect tolls
6274     pursuant to the terms and conditions of a tollway development agreement;
6275          (e) use technology to automatically monitor a tollway and collect payment of a toll,
6276     including:
6277          (i) license plate reading technology; and
6278          (ii) photographic or video recording technology; and
6279          (f) in accordance with Subsection (5), request that the Division of Motor Vehicles deny
6280     a request for registration of a motor vehicle if the motor vehicle owner has failed to pay a toll
6281     or penalty imposed for usage of a tollway involving the motor vehicle for which registration
6282     renewal has been requested.
6283          (3) (a) The department may establish or operate a tollway on an existing highway if
6284     approved by the commission in accordance with the terms of this section.
6285          (b) To establish a tollway on an existing highway, the department shall submit a
6286     proposal to the commission including:
6287          (i) a description of the tollway project;

6288          (ii) projected traffic on the tollway;
6289          (iii) the anticipated amount of the toll to be charged; and
6290          (iv) projected toll revenue.
6291          (4) (a) For a tollway established under this section, the department may:
6292          (i) according to the terms of each tollway, impose the toll upon the owner of a motor
6293     vehicle using the tollway according to the terms of the tollway;
6294          (ii) send correspondence to the owner of the motor vehicle to inform the owner of:
6295          (A) an unpaid toll and the amount of the toll to be paid to the department;
6296          (B) the penalty for failure to pay the toll timely; and
6297          (C) a hold being placed on the owner's registration for the motor vehicle if the toll and
6298     penalty are not paid timely, which would prevent the renewal of the motor vehicle's
6299     registration;
6300          (iii) require that the owner of the motor vehicle pay the toll to the department within 30
6301     days of the date when the department sends written notice of the toll to the owner; and
6302          (iv) impose a penalty for failure to pay a toll timely.
6303          (b) The department shall mail the correspondence and notice described in Subsection
6304     (4)(a) to the owner of the motor vehicle according to the terms of a tollway.
6305          (5) (a) The Division of Motor Vehicles and the department shall share and provide
6306     access to information pertaining to a motor vehicle and tollway enforcement including:
6307          (i) registration and ownership information pertaining to a motor vehicle;
6308          (ii) information regarding the failure of a motor vehicle owner to timely pay a toll or
6309     penalty imposed under this section; and
6310          (iii) the status of a request for a hold on the registration of a motor vehicle.
6311          (b) If the department requests a hold on the registration in accordance with this section,
6312     the Division of Motor Vehicles may not renew the registration of a motor vehicle under Title
6313     41, Chapter 1a, Part 2, Registration, if the owner of the motor vehicle has failed to pay a toll or
6314     penalty imposed under this section for usage of a tollway involving the motor vehicle for which
6315     registration renewal has been requested until the department withdraws the hold request.
6316          (6) (a) Except as provided in Subsection (6)(b), in accordance with Title 63G, Chapter
6317     3, Utah Administrative Rulemaking Act, the commission shall:
6318          (i) set the amount of any toll imposed or collected on a tollway on a state highway; and

6319          (ii) for tolls established under Subsection (6)(b), set:
6320          (A) an increase in a toll rate or user fee above an increase specified in a tollway
6321     development agreement; or
6322          (B) an increase in a toll rate or user fee above a maximum toll rate specified in a
6323     tollway development agreement.
6324          (b) A toll or user fee and an increase to a toll or user fee imposed or collected on a
6325     tollway on a state highway that is the subject of a tollway development agreement shall be set
6326     in the tollway development agreement.
6327          (7) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
6328     the department shall make rules:
6329          (i) necessary to establish and operate tollways on state highways;
6330          (ii) that establish standards and specifications for automatic tolling systems and
6331     automatic tollway monitoring technology; and
6332          (iii) to set the amount of a penalty for failure to pay a toll under this section.
6333          (b) The rules shall:
6334          (i) include minimum criteria for having a tollway; and
6335          (ii) conform to regional and national standards for automatic tolling.
6336          (8) (a) The commission may provide funds for public or private tollway pilot projects
6337     or high occupancy toll lanes from General Fund money appropriated by the Legislature to the
6338     commission for that purpose.
6339          (b) The commission may determine priorities and funding levels for tollways
6340     designated under this section.
6341          (9) (a) Except as provided in Subsection (9)(b), all revenue generated from a tollway
6342     on a state highway shall be deposited into the Tollway Special Revenue Fund created in
6343     Section 72-2-120 and used for [acquisition of right-of-way and the design, construction,
6344     reconstruction, operation, maintenance, enforcement of state transportation systems and
6345     facilities, including operating improvements to the tollway, and other facilities used exclusively
6346     for the operation of a tollway facility within the corridor served by the tollway] any state
6347     transportation purpose.
6348          (b) Revenue generated from a tollway that is the subject of a tollway development
6349     agreement shall be deposited into the Tollway Special Revenue Fund and used in accordance

6350     with Subsection (9)(a) unless:
6351          (i) the revenue is to a private entity through the tollway development agreement; or
6352          (ii) the revenue is identified for a different purpose under the tollway development
6353     agreement.
6354          (10) Data described in Subsection (2)(e) obtained for the purposes of this section:
6355          (a) in accordance with Section 63G-2-305, is a protected record under Title 63G,
6356     Chapter 2, Government Records Access and Management Act, if the photographic or video
6357     data is maintained by a governmental entity;
6358          (b) may not be used or shared for any purpose other than the purposes described in this
6359     section;
6360          (c) may only be preserved:
6361          (i) so long as necessary to collect the payment of a toll or penalty imposed in
6362     accordance with this section; or
6363          (ii) pursuant to a warrant issued under the Utah Rules of Criminal Procedure or an
6364     equivalent federal warrant; and
6365          (d) may only be disclosed:
6366          (i) in accordance with the disclosure requirements for a protected record under Section
6367     63G-2-202; or
6368          (ii) pursuant to a warrant issued under the Utah Rules of Criminal Procedure or an
6369     equivalent federal warrant.
6370          (11) (a) The department may not sell for any purpose photographic or video data
6371     captured under Subsection (2)(e)(ii).
6372          (b) The department may not share captured photographic or video data for a purpose
6373     not authorized under this section.
6374          [(12) Before November 1, 2018, the Driver License Division, the Division of Motor
6375     Vehicles, and the department shall jointly study and report findings and recommendations to
6376     the Transportation Interim Committee regarding the use of Title 53, Chapter 3, Part 6, Drivers'
6377     License Compact, and other methods to collect a toll or penalty under this section from:]
6378          [(a) an owner of a motor vehicle registered outside this state; or]
6379          [(b) a driver or lessee of a motor vehicle leased or rented for 30 days or less.]
6380          Section 64. Section 72-9-603 is amended to read:

6381          72-9-603. Towing notice requirements -- Cost responsibilities -- Abandoned
6382     vehicle title restrictions -- Rules for maximum rates and certification.
6383          (1) Except for a tow truck service that was ordered by a peace officer, or a person
6384     acting on behalf of a law enforcement agency, or a highway authority, after performing a tow
6385     truck service that is being done without the vehicle, vessel, or outboard motor owner's
6386     knowledge, the tow truck operator or the tow truck motor carrier shall:
6387          (a) immediately upon arriving at the place of storage or impound of the vehicle, vessel,
6388     or outboard motor:
6389          (i) send a report of the removal to the Motor Vehicle Division that complies with the
6390     requirements of Subsection 41-6a-1406(4)(b); and
6391          (ii) contact the law enforcement agency having jurisdiction over the area where the
6392     vehicle, vessel, or outboard motor was picked up and notify the agency of the:
6393          (A) location of the vehicle, vessel, or outboard motor;
6394          (B) date, time, and location from which the vehicle, vessel, or outboard motor was
6395     removed;
6396          (C) reasons for the removal of the vehicle, vessel, or outboard motor;
6397          (D) person who requested the removal of the vehicle, vessel, or outboard motor; and
6398          (E) description, including the identification number, license number, or other
6399     identification number issued by a state agency, of the vehicle, vessel, or outboard motor;
6400          (b) within two business days of performing the tow truck service under Subsection
6401     (1)(a), send a certified letter to the last-known address of each party described in Subsection
6402     41-6a-1406(5)(a) with an interest in the vehicle, vessel, or outboard motor obtained from the
6403     Motor Vehicle Division or, if the person has actual knowledge of the party's address, to the
6404     current address, notifying the party of the:
6405          (i) location of the vehicle, vessel, or outboard motor;
6406          (ii) date, time, and location from which the vehicle, vessel, or outboard motor was
6407     removed;
6408          (iii) reasons for the removal of the vehicle, vessel, or outboard motor;
6409          (iv) person who requested the removal of the vehicle, vessel, or outboard motor;
6410          (v) a description, including its identification number and license number or other
6411     identification number issued by a state agency; and

6412          (vi) costs and procedures to retrieve the vehicle, vessel, or outboard motor; and
6413          (c) upon initial contact with the owner whose vehicle, vessel, or outboard motor was
6414     removed, provide the owner with a copy of the Utah Consumer Bill of Rights Regarding
6415     Towing established by the department in Subsection (7)(e).
6416          (2) (a) Until the tow truck operator or tow truck motor carrier reports the removal as
6417     required under Subsection (1)(a), a tow truck operator, tow truck motor carrier, or impound
6418     yard may not:
6419          (i) collect any fee associated with the removal; or
6420          (ii) begin charging storage fees.
6421          (b) (i) Except as provided in Subsection (2)(c), a tow truck operator or tow truck motor
6422     carrier may not perform a tow truck service without the vehicle, vessel, or outboard motor
6423     owner's or a lien holder's knowledge at either of the following locations without signage that
6424     meets the requirements of Subsection (2)(b)(ii):
6425          (A) a mobile home park as defined in Section 57-16-3; or
6426          (B) a multifamily dwelling of more than eight units.
6427          (ii) Signage under Subsection (2)(b)(i) shall display:
6428          (A) where parking is subject to towing; and
6429          (B) (I) the Internet website address that provides access to towing database information
6430     in accordance with Section 41-6a-1406; or
6431          (II) one of the following:
6432          (Aa) the name and phone number of the tow truck operator or tow truck motor carrier
6433     that performs a tow truck service for the locations listed under Subsection (2)(b)(i); or
6434          (Bb) the name of the mobile home park or multifamily dwelling and the phone number
6435     of the mobile home park or multifamily dwelling manager or management office that
6436     authorized the vehicle, vessel, or outboard motor to be towed.
6437          (c) Signage is not required under Subsection (2)(b) for parking in a location:
6438          (i) that is prohibited by law; or
6439          (ii) if it is reasonably apparent that the location is not open to parking.
6440          (d) Nothing in Subsection (2)(b) restricts the ability of a mobile home park as defined
6441     in Section 57-16-3 or a multifamily dwelling from instituting and enforcing regulations on
6442     parking.

6443          (3) The party described in Subsection 41-6a-1406(5)(a) with an interest in a vehicle,
6444     vessel, or outboard motor lawfully removed is only responsible for paying:
6445          (a) the tow truck service and storage fees set in accordance with Subsection (7); [and]
6446          (b) the administrative impound fee set in Section 41-6a-1406, if applicable[.]; and
6447          (c) the applicable sales and use tax.
6448          (4) (a) The fees under Subsection (3) are a possessory lien on the vehicle, vessel, or
6449     outboard motor and any nonlife essential items contained in the vehicle, vessel, or outboard
6450     motor that are owned by the owner of the vehicle, vessel, or outboard motor until paid.
6451          (b) The tow truck operator or tow truck motor carrier shall securely store the vehicle,
6452     vessel, or outboard motor and items described in Subsection (4)(a) in an approved state
6453     impound yard until a party described in Subsection 41-6a-1406(5)(a) with an interest in the
6454     vehicle, vessel, or outboard motor:
6455          (i) pays the [fees] amounts described in Subsection (3); and
6456          (ii) removes the vehicle, vessel, or outboard motor from the state impound yard.
6457          (5) (a) A vehicle, vessel, or outboard motor shall be considered abandoned if a party
6458     described in Subsection 41-6a-1406(5)(a) with an interest in the vehicle, vessel, or outboard
6459     motor does not, within 30 days after notice has been sent under Subsection (1)(b):
6460          (i) pay the [fees] amounts described in Subsection (3); and
6461          (ii) remove the vehicle, vessel, or outboard motor from the secure storage facility.
6462          (b) A person may not request a transfer of title to an abandoned vehicle, vessel, or
6463     outboard motor until at least 30 days after notice has been sent under Subsection (1)(b).
6464          (6) (a) A tow truck motor carrier or impound yard shall clearly and conspicuously post
6465     and disclose all its current fees, rates, and acceptable forms of payment for tow truck service
6466     and storage of a vehicle in accordance with rules established under Subsection (7).
6467          (b) A tow truck operator, a tow truck motor carrier, and an impound yard shall accept
6468     payment by cash and debit or credit card for a tow truck service under Subsection (1) or any
6469     service rendered, performed, or supplied in connection with a tow truck service under
6470     Subsection (1).
6471          (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
6472     department shall:
6473          (a) subject to the restriction in Subsection (8), set maximum rates that:

6474          (i) a tow truck motor carrier may charge for the tow truck service of a vehicle, vessel,
6475     or outboard motor that are transported in response to:
6476          (A) a peace officer dispatch call;
6477          (B) a motor vehicle division call; and
6478          (C) any other call or request where the owner of the vehicle, vessel, or outboard motor
6479     has not consented to the removal; and
6480          (ii) an impound yard may charge for the storage of a vehicle, vessel, or outboard motor
6481     stored as a result of one of the conditions listed under Subsection (7)(a)(i);
6482          (b) establish authorized towing certification requirements, not in conflict with federal
6483     law, related to incident safety, clean-up, and hazardous material handling;
6484          (c) specify the form and content of the posting and disclosure of fees and rates charged
6485     and acceptable forms of payment by a tow truck motor carrier or impound yard;
6486          (d) set a maximum rate for an administrative fee that a tow truck motor carrier may
6487     charge for reporting the removal as required under Subsection (1)(a)(i) and providing notice of
6488     the removal to each party described in Subsection 41-6a-1406(5)(a) with an interest in the
6489     vehicle, vessel, or outboard motor as required in Subsection (1)(b); and
6490          (e) establish a Utah Consumer Bill of Rights Regarding Towing form that contains
6491     specific information regarding:
6492          (i) a vehicle owner's rights and responsibilities if the owner's vehicle is towed;
6493          (ii) identifies the maximum rates that a tow truck motor carrier may charge for the tow
6494     truck service of a vehicle, vessel, or outboard motor that is transported in response to a call or
6495     request where the owner of the vehicle, vessel, or outboard motor has not consented to the
6496     removal; and
6497          (iii) identifies the maximum rates that an impound yard may charge for the storage of
6498     vehicle, vessel, or outboard motor that is transported in response to a call or request where the
6499     owner of the vehicle, vessel, or outboard motor has not consented to the removal.
6500          (8) An impound yard may not charge a fee for the storage of an impounded vehicle,
6501     vessel, or outboard motor if:
6502          (a) the vehicle, vessel, or outboard motor is being held as evidence; and
6503          (b) the vehicle, vessel, or outboard motor is not being released to a party described in
6504     Subsection 41-6a-1406(5)(a), even if the party satisfies the requirements to release the vehicle,

6505     vessel, or outboard motor under Section 41-6a-1406.
6506          (9) (a) (i) A tow truck motor carrier may charge a rate up to the maximum rate set by
6507     the department in rules made under Subsection (7).
6508           (ii) In addition to the maximum rates established under Subsection (7) [and when
6509      receiving payment by credit card], a tow truck operator, a tow truck motor carrier, or an
6510      impound yard:
6511          (A) shall collect the sales and use tax due; and
6512          (B) when receiving payment by credit card, may charge a credit card processing fee of
6513     3% of the transaction total.
6514          (b) A tow truck motor carrier may not be required to maintain insurance coverage at a
6515     higher level than required in rules made pursuant to Subsection (7).
6516          (10) When a tow truck motor carrier or impound lot is in possession of a vehicle,
6517     vessel, or outboard motor as a result of a tow service that was performed without the consent of
6518     the owner, and that was not ordered by a peace officer or a person acting on behalf of a law
6519     enforcement agency, the tow truck motor carrier or impound yard shall make personnel
6520     available:
6521          (a) by phone 24 hours a day, seven days a week; and
6522          (b) to release the impounded vehicle, vessel, or outboard motor to the owner within
6523     one hour of when the owner calls the tow truck motor carrier or impound yard.
6524          Section 65. Appropriations -- Operating and Capital Budgets.
6525          Subsection 65 (a)(i). Fiscal Year 2020 Appropriation -- Operating and Capital
6526     Budgets.
6527          The following sums of money are appropriated for the fiscal year beginning July 1,
6528     2019, and ending June 30, 2020. These are additions to amounts previously appropriated for
6529     fiscal year 2020. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
6530     Act, the Legislature appropriates the following sums of money from the funds or accounts
6531     indicated for the use and support of the government of the state of Utah.
6532     ITEM 1
6533          To Department of Workforce Services -- Administration
6534               From General Fund, One-time
$500,000

6535               Schedule of Programs:

6536                    Communications                         $500,000
6537          The Legislature intends that the Department of Workforce Services use this
6538     appropriation for outreach to inform eligible individuals, particularly low income individuals,
6539     of available income tax credits, exemptions, and rebates and how to claim them.
6540          Subsection 65 (a)(ii). Fiscal Year 2020 Appropriation -- Transfers to Unrestricted
6541     Funds.
6542          The following sums of money are appropriated for the fiscal year beginning July 1,
6543     2019, and ending June 30, 2020. These are additions to amounts previously appropriated for
6544     fiscal year 2020.
6545          The Legislature authorizes the State Division of Finance to transfer the following
6546     amounts to the unrestricted General Fund, Education Fund, or Uniform School Fund, as
6547     indicated, from the restricted funds or accounts indicated. Expenditures and outlays from the
6548     General Fund, Education Fund, or Uniform School Fund must be authorized by an
6549     appropriation.
6550     ITEM 2
6551          To General Fund, One-time
6552               From Education Fund Restricted --
6553               Underage Drinking Prevention Program Restricted Account
$1,750,000

6554               Schedule of Programs:
6555                    General Fund, One-time                    $1,750,000
6556          The Legislature intends that, after satisfying all prior appropriations from the Underage
6557     Drinking Prevention Program Restricted Account, the State Division of Finance transfer all
6558     remaining balances in the Underage Drinking Prevention Program Restricted Account to the
6559     General Fund at the close of fiscal year 2020 and close the account.
6560          Subsection 65 (b). Fiscal Year 2021 Appropriations -- Operating and Capital
6561     Budgets.
6562          The following sums of money are appropriated for the fiscal year beginning July 1,
6563     2020, and ending June 30, 2021. These are additions to amounts otherwise appropriated for
6564     fiscal year 2021. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
6565     Act, the Legislature appropriates the following sums of money from the funds or accounts
6566     indicated for the use and support of the government of the state of Utah.

6567     ITEM 3
6568          To State Board of Education -- Child Nutrition
6569               From Education Fund
$55,500,000

6570               From Dedicated Credits -- Liquor Tax
($39,275,700)

6571               Schedule of Programs:
6572                    Child Nutrition                    $16,224,300
6573     ITEM 4
6574          To State Board of Education -- State Administrative Office
6575               From Education Fund
$2,850,000

6576               From Education Fund Restricted --
6577               Underage Drinking Prevention Program Restricted Account
($1,751,000)

6578               Schedule of Programs:
6579                    Student Advocacy Services               $1,099,000
6580     ITEM 5
6581          To University of Utah -- Education and General
6582               From General Fund
$101,608,900

6583               From Education Fund
($101,608,900)

6584     ITEM 6
6585          To University of Utah -- School of Medicine
6586               From General Fund
$35,899,500

6587               From Education Fund
($35,899,500)

6588     ITEM 7
6589          To University of Utah -- University Hospital
6590               From General Fund
$1,533,000

6591               From Education Fund
($1,533,000)

6592     ITEM 8
6593          To University of Utah -- School of Dentistry
6594               From General Fund
$2,324,700

6595               From Education Fund
($2,324,700)

6596     ITEM 9
6597          To Utah State University -- Education and General

6598               From General Fund
$73,521,400

6599               From Education Fund
($73,521,400)

6600     ITEM 10
6601          To Utah State University -- USU-Eastern Education and General
6602               From General Fund
$12,503,400

6603               From Education Fund
($12,503,400)

6604     ITEM 11
6605          To Weber State University -- Education and General
6606               From General Fund
$94,098,000

6607               From Education Fund
($94,098,000)

6608     ITEM 12
6609          To Southern Utah University -- Education and General
6610               From General Fund
$47,444,900

6611               From Education Fund
($47,444,900)

6612     ITEM 13
6613          To Utah Valley University -- Education and General
6614               From General Fund
$22,092,900

6615               From Education Fund
($22,092,900)

6616          Section 66. Effective date.
6617          (1) Except as provided in Subsections (2) through (6), if approved by two-thirds of all
6618     the members elected to each house, this bill takes effect on January 1, 2020.
6619          (2) If approved by two-thirds of all the members elected to each house, the following
6620     sections take effect for a taxable year beginning on or after January 1, 2020:
6621          (a) Section 35A-9-214;
6622          (b) Section 59-7-104;
6623          (c) Section 59-7-201;
6624          (d) Section 59-7-610;
6625          (e) Section 59-7-614.1;
6626          (f) Section 59-7-618;
6627          (g) Section 59-7-620;
6628          (h) Section 59-10-104;

6629          (i) Section 59-10-529.1;
6630          (j) Section 59-10-1005;
6631          (k) Section 59-10-1007;
6632          (l) Section 59-10-1017;
6633          (m) Section 59-10-1017.1;
6634          (n) Section 59-10-1018;
6635          (o) Section 59-10-1019;
6636          (p) Section 59-10-1022;
6637          (q) Section 59-10-1023;
6638          (r) Section 59-10-1028;
6639          (s) Section 59-10-1033;
6640          (t) Section 59-10-1035;
6641          (u) Section 59-10-1036;
6642          (v) Section 59-10-1041;
6643          (w) Section 59-10-1102.1;
6644          (x) Section 59-10-1105;
6645          (y) Section 59-10-1113;
6646          (z) Section 59-10-1114;
6647          (aa) Section 59-10-1403.3; and
6648          (bb) Section 59-13-202.
6649          (3) The following sections take effect on April 1, 2020:
6650          (a) Section 15A-1-204;
6651          (b) Section 26-36b-208;
6652          (c) Section 59-1-1503;
6653          (d) Section 59-12-102;
6654          (e) Section 59-12-103;
6655          (f) Section 59-12-104;
6656          (g) Section 59-12-104.5;
6657          (h) Section 59-12-1201;
6658          (i) Section 59-13-323;
6659          (j) Section 63I-2-259;

6660          (k) Section 63M-4-702; and
6661          (l) Section 72-2-124.
6662          (4) If approved by two-thirds of all the members elected to each house, Subsection
6663     62(a) of this bill takes effect upon approval by the governor, or the day following the
6664     constitutional time limit of Utah Constitution, Article VII, Section 8, without the governor's
6665     signature, or in the case of veto, the date of veto override.
6666          (5) Subsection 62(b) of this bill takes effect on July 1, 2020.
6667          (6) The following sections take effect on January 1, 2021:
6668          (a) Section 46-6a-1642; and
6669          (b) Section 72-1-213.2.
6670          Section 67. Contingent retrospective operation.
6671          If this bill is approved by less than two-thirds of all the members elected to each house,
6672     the following sections have retrospective operation for a taxable year beginning on or after
6673     January 1, 2020:
6674          (1) Section 35A-9-214;
6675          (2) Section 59-7-104;
6676          (3) Section 59-7-201;
6677          (4) Section 59-7-610;
6678          (5) Section 59-7-614.1;
6679          (6) Section 59-7-618;
6680          (7) Section 59-7-620;
6681          (8) Section 59-10-104;
6682          (9) Section 59-10-529.1;
6683          (10) Section 59-10-1005;
6684          (11) Section 59-10-1007;
6685          (12) Section 59-10-1017;
6686          (13) Section 59-10-1017.1;
6687          (14) Section 59-10-1018;
6688          (15) Section 59-10-1019;
6689          (16) Section 59-10-1022;
6690          (17) Section 59-10-1023;

6691          (18) Section 59-10-1028;
6692          (19) Section 59-10-1033;
6693          (20) Section 59-10-1035;
6694          (21) Section 59-10-1036;
6695          (22) Section 59-10-1041;
6696          (23) Section 59-10-1102.1;
6697          (24) Section 59-10-1105;
6698          (25) Section 59-10-1113;
6699          (26) Section 59-10-1114;
6700          (27) Section 59-10-1403.3; and
6701          (28) Section 59-13-202.