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7 LONG TITLE
8 General Description:
9 This bill amends sales and use tax provisions.
10 Highlighted Provisions:
11 This bill:
12 ▸ modifies definitions;
13 ▸ increases the general state sales and use tax rate;
14 ▸ creates a sales and use tax exemption for certain incontinence care items, feminine
15 hygiene products, and diapers; and
16 ▸ makes technical and conforming changes.
17 Money Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 This bill provides a special effective date.
21 Utah Code Sections Affected:
22 AMENDS:
23 26-36b-208, as last amended by Laws of Utah 2019, Chapters 1 and 393
24 35A-8-308, as last amended by Laws of Utah 2017, Chapters 181 and 421
25 35A-8-309, as last amended by Laws of Utah 2019, Chapter 493
26 59-12-102, as last amended by Laws of Utah 2019, Chapters 325, 481, and 486
27 59-12-103, as last amended by Laws of Utah 2019, Chapters 1, 136, and 479
28 59-12-104, as last amended by Laws of Utah 2019, Chapters 136 and 486
29
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 26-36b-208 is amended to read:
32 26-36b-208. Medicaid Expansion Fund.
33 (1) There is created an expendable special revenue fund known as the Medicaid
34 Expansion Fund.
35 (2) The fund consists of:
36 (a) assessments collected under this chapter;
37 (b) intergovernmental transfers under Section 26-36b-206;
38 (c) savings attributable to the health coverage improvement program as determined by
39 the department;
40 (d) savings attributable to the enhancement waiver program as determined by the
41 department;
42 (e) savings attributable to the Medicaid waiver expansion as determined by the
43 department;
44 (f) savings attributable to the inclusion of psychotropic drugs on the preferred drug list
45 under Subsection 26-18-2.4(3) as determined by the department;
46 (g) revenues collected from the sales tax described in Subsection 59-12-103[
47 (h) gifts, grants, donations, or any other conveyance of money that may be made to the
48 fund from private sources;
49 (i) interest earned on money in the fund; and
50 (j) additional amounts as appropriated by the Legislature.
51 (3) (a) The fund shall earn interest.
52 (b) All interest earned on fund money shall be deposited into the fund.
53 (4) (a) A state agency administering the provisions of this chapter may use money from
54 the fund to pay the costs, not otherwise paid for with federal funds or other revenue sources, of:
55 (i) the health coverage improvement program;
56 (ii) the enhancement waiver program;
57 (iii) a Medicaid waiver expansion; and
58 (iv) the outpatient upper payment limit supplemental payments under Section
59 26-36b-210.
60 (b) A state agency administering the provisions of this chapter may not use:
61 (i) funds described in Subsection (2)(b) to pay the cost of private outpatient upper
62 payment limit supplemental payments; or
63 (ii) money in the fund for any purpose not described in Subsection (4)(a).
64 Section 2. Section 35A-8-308 is amended to read:
65 35A-8-308. Throughput Infrastructure Fund.
66 (1) There is created an enterprise fund known as the Throughput Infrastructure Fund.
67 (2) The fund consists of money generated from the following revenue sources:
68 (a) all amounts transferred to the fund [
69 (b) any voluntary contributions received;
70 (c) appropriations made to the fund by the Legislature; and
71 (d) all amounts received from the repayment of loans made by the impact board under
72 Section 35A-8-309.
73 (3) The state treasurer shall:
74 (a) invest the money in the fund by following the procedures and requirements of Title
75 51, Chapter 7, State Money Management Act; and
76 (b) deposit all interest or other earnings derived from those investments into the fund.
77 Section 3. Section 35A-8-309 is amended to read:
78 35A-8-309. Throughput Infrastructure Fund administered by impact board --
79 Uses -- Review by board -- Annual report -- First project.
80 (1) The impact board shall:
81 (a) make grants and loans from the Throughput Infrastructure Fund created in Section
82 35A-8-308 for a throughput infrastructure project;
83 (b) use money transferred to the Throughput Infrastructure Fund [
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85 acquisition or construction of a throughput infrastructure project to one or more local political
86 subdivisions, including a Utah interlocal agency created under Title 11, Chapter 13, Interlocal
87 Cooperation Act;
88 (c) administer the Throughput Infrastructure Fund in a manner that will keep a portion
89 of the fund revolving;
90 (d) determine provisions for repayment of loans;
91 (e) establish criteria for awarding loans and grants; and
92 (f) establish criteria for determining eligibility for assistance under this section.
93 (2) The cost of acquisition or construction of a throughput infrastructure project
94 includes amounts for working capital, reserves, transaction costs, and other amounts
95 determined by the impact board to be allocable to a throughput infrastructure project.
96 (3) The impact board may restructure or forgive all or part of a local political
97 subdivision's or interlocal agency's obligation to repay loans for extenuating circumstances.
98 (4) To receive assistance under this section, a local political subdivision or an
99 interlocal agency shall submit a formal application containing the information that the impact
100 board requires.
101 (5) (a) The impact board shall:
102 (i) review the proposed uses of the Throughput Infrastructure Fund for a loan or grant
103 before approving the loan or grant and may condition its approval on whatever assurances the
104 impact board considers necessary to ensure that proceeds of the loan or grant will be used in
105 accordance with this section;
106 (ii) ensure that each loan specifies terms for interest deferments, accruals, and
107 scheduled principal repayment; and
108 (iii) ensure that repayment terms are evidenced by bonds, notes, or other obligations of
109 the appropriate local political subdivision or interlocal agency issued to the impact board and
110 payable from the net revenues of a throughput infrastructure project.
111 (b) An instrument described in Subsection (5)(a)(iii) may be:
112 (i) non-recourse to the local political subdivision or interlocal agency; and
113 (ii) limited to a pledge of the net revenues from a throughput infrastructure project.
114 (6) (a) Subject to the restriction in Subsection (6)(b), the impact board shall allocate
115 from the Throughput Infrastructure Fund to the board those amounts that are appropriated by
116 the Legislature for the administration of the Throughput Infrastructure Fund.
117 (b) The amount described in Subsection (6)(a) may not exceed 2% of the annual
118 receipts to the fund.
119 (7) The board shall include in the annual written report described in Section
120 35A-1-109:
121 (a) the number and type of loans and grants made under this section; and
122 (b) a list of local political subdivisions or interlocal agencies that received assistance
123 under this section.
124 (8) (a) The first throughput infrastructure project considered by the impact board shall
125 be a bulk commodities ocean terminal project.
126 (b) Upon receipt of an application from an interlocal agency created for the sole
127 purpose of undertaking a throughput infrastructure project that is a bulk commodities ocean
128 terminal project, the impact board shall:
129 (i) grant up to 2% of the money in the Throughput Infrastructure Fund to the interlocal
130 agency to pay or reimburse costs incurred by the interlocal agency preliminary to its acquisition
131 of the throughput infrastructure project; and
132 (ii) fund the interlocal agency's application if the application meets all criteria
133 established by the impact board.
134 Section 4. Section 59-12-102 is amended to read:
135 59-12-102. Definitions.
136 As used in this chapter:
137 (1) "800 service" means a telecommunications service that:
138 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
139 (b) is typically marketed:
140 (i) under the name 800 toll-free calling;
141 (ii) under the name 855 toll-free calling;
142 (iii) under the name 866 toll-free calling;
143 (iv) under the name 877 toll-free calling;
144 (v) under the name 888 toll-free calling; or
145 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
146 Federal Communications Commission.
147 (2) (a) "900 service" means an inbound toll telecommunications service that:
148 (i) a subscriber purchases;
149 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
150 the subscriber's:
151 (A) prerecorded announcement; or
152 (B) live service; and
153 (iii) is typically marketed:
154 (A) under the name 900 service; or
155 (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
156 Communications Commission.
157 (b) "900 service" does not include a charge for:
158 (i) a collection service a seller of a telecommunications service provides to a
159 subscriber; or
160 (ii) the following a subscriber sells to the subscriber's customer:
161 (A) a product; or
162 (B) a service.
163 (3) (a) "Admission or user fees" includes season passes.
164 (b) "Admission or user fees" does not include annual membership dues to private
165 organizations.
166 (4) "Affiliate" or "affiliated person" means a person that, with respect to another
167 person:
168 (a) has an ownership interest of more than 5%, whether direct or indirect, in that other
169 person; or
170 (b) is related to the other person because a third person, or a group of third persons who
171 are affiliated persons with respect to each other, holds an ownership interest of more than 5%,
172 whether direct or indirect, in the related persons.
173 (5) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
174 November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
175 Agreement after November 12, 2002.
176 (6) "Agreement combined tax rate" means the sum of the tax rates:
177 (a) listed under Subsection (7); and
178 (b) that are imposed within a local taxing jurisdiction.
179 (7) "Agreement sales and use tax" means a tax imposed under:
180 (a) Subsection 59-12-103(2)(a)(i)(A);
181 (b) Subsection 59-12-103(2)(b)(i);
182 (c) Subsection 59-12-103(2)(c)(i);
183 (d) Subsection 59-12-103(2)(d)(i)(A)(I);
184 (e) Section 59-12-204;
185 (f) Section 59-12-401;
186 (g) Section 59-12-402;
187 (h) Section 59-12-402.1;
188 (i) Section 59-12-703;
189 (j) Section 59-12-802;
190 (k) Section 59-12-804;
191 (l) Section 59-12-1102;
192 (m) Section 59-12-1302;
193 (n) Section 59-12-1402;
194 (o) Section 59-12-1802;
195 (p) Section 59-12-2003;
196 (q) Section 59-12-2103;
197 (r) Section 59-12-2213;
198 (s) Section 59-12-2214;
199 (t) Section 59-12-2215;
200 (u) Section 59-12-2216;
201 (v) Section 59-12-2217;
202 (w) Section 59-12-2218;
203 (x) Section 59-12-2219; or
204 (y) Section 59-12-2220.
205 (8) "Aircraft" means the same as that term is defined in Section 72-10-102.
206 (9) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
207 (a) except for:
208 (i) an airline as defined in Section 59-2-102; or
209 (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
210 includes a corporation that is qualified to do business but is not otherwise doing business in the
211 state, of an airline; and
212 (b) that has the workers, expertise, and facilities to perform the following, regardless of
213 whether the business entity performs the following in this state:
214 (i) check, diagnose, overhaul, and repair:
215 (A) an onboard system of a fixed wing turbine powered aircraft; and
216 (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
217 (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
218 engine;
219 (iii) perform at least the following maintenance on a fixed wing turbine powered
220 aircraft:
221 (A) an inspection;
222 (B) a repair, including a structural repair or modification;
223 (C) changing landing gear; and
224 (D) addressing issues related to an aging fixed wing turbine powered aircraft;
225 (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
226 completely apply new paint to the fixed wing turbine powered aircraft; and
227 (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
228 results in a change in the fixed wing turbine powered aircraft's certification requirements by the
229 authority that certifies the fixed wing turbine powered aircraft.
230 (10) "Alcoholic beverage" means a beverage that:
231 (a) is suitable for human consumption; and
232 (b) contains .5% or more alcohol by volume.
233 (11) "Alternative energy" means:
234 (a) biomass energy;
235 (b) geothermal energy;
236 (c) hydroelectric energy;
237 (d) solar energy;
238 (e) wind energy; or
239 (f) energy that is derived from:
240 (i) coal-to-liquids;
241 (ii) nuclear fuel;
242 (iii) oil-impregnated diatomaceous earth;
243 (iv) oil sands;
244 (v) oil shale;
245 (vi) petroleum coke; or
246 (vii) waste heat from:
247 (A) an industrial facility; or
248 (B) a power station in which an electric generator is driven through a process in which
249 water is heated, turns into steam, and spins a steam turbine.
250 (12) (a) Subject to Subsection (12)(b), "alternative energy electricity production
251 facility" means a facility that:
252 (i) uses alternative energy to produce electricity; and
253 (ii) has a production capacity of two megawatts or greater.
254 (b) A facility is an alternative energy electricity production facility regardless of
255 whether the facility is:
256 (i) connected to an electric grid; or
257 (ii) located on the premises of an electricity consumer.
258 (13) (a) "Ancillary service" means a service associated with, or incidental to, the
259 provision of telecommunications service.
260 (b) "Ancillary service" includes:
261 (i) a conference bridging service;
262 (ii) a detailed communications billing service;
263 (iii) directory assistance;
264 (iv) a vertical service; or
265 (v) a voice mail service.
266 (14) "Area agency on aging" means the same as that term is defined in Section
267 62A-3-101.
268 (15) "Assisted amusement device" means an amusement device, skill device, or ride
269 device that is started and stopped by an individual:
270 (a) who is not the purchaser or renter of the right to use or operate the amusement
271 device, skill device, or ride device; and
272 (b) at the direction of the seller of the right to use the amusement device, skill device,
273 or ride device.
274 (16) "Assisted cleaning or washing of tangible personal property" means cleaning or
275 washing of tangible personal property if the cleaning or washing labor is primarily performed
276 by an individual:
277 (a) who is not the purchaser of the cleaning or washing of the tangible personal
278 property; and
279 (b) at the direction of the seller of the cleaning or washing of the tangible personal
280 property.
281 (17) "Authorized carrier" means:
282 (a) in the case of vehicles operated over public highways, the holder of credentials
283 indicating that the vehicle is or will be operated pursuant to both the International Registration
284 Plan and the International Fuel Tax Agreement;
285 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
286 certificate or air carrier's operating certificate; or
287 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
288 stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
289 stock in more than one state.
290 (18) (a) Except as provided in Subsection (18)(b), "biomass energy" means any of the
291 following that is used as the primary source of energy to produce fuel or electricity:
292 (i) material from a plant or tree; or
293 (ii) other organic matter that is available on a renewable basis, including:
294 (A) slash and brush from forests and woodlands;
295 (B) animal waste;
296 (C) waste vegetable oil;
297 (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
298 wastewater residuals, or through the conversion of a waste material through a nonincineration,
299 thermal conversion process;
300 (E) aquatic plants; and
301 (F) agricultural products.
302 (b) "Biomass energy" does not include:
303 (i) black liquor; or
304 (ii) treated woods.
305 (19) (a) "Bundled transaction" means the sale of two or more items of tangible personal
306 property, products, or services if the tangible personal property, products, or services are:
307 (i) distinct and identifiable; and
308 (ii) sold for one nonitemized price.
309 (b) "Bundled transaction" does not include:
310 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
311 the basis of the selection by the purchaser of the items of tangible personal property included in
312 the transaction;
313 (ii) the sale of real property;
314 (iii) the sale of services to real property;
315 (iv) the retail sale of tangible personal property and a service if:
316 (A) the tangible personal property:
317 (I) is essential to the use of the service; and
318 (II) is provided exclusively in connection with the service; and
319 (B) the service is the true object of the transaction;
320 (v) the retail sale of two services if:
321 (A) one service is provided that is essential to the use or receipt of a second service;
322 (B) the first service is provided exclusively in connection with the second service; and
323 (C) the second service is the true object of the transaction;
324 (vi) a transaction that includes tangible personal property or a product subject to
325 taxation under this chapter and tangible personal property or a product that is not subject to
326 taxation under this chapter if the:
327 (A) seller's purchase price of the tangible personal property or product subject to
328 taxation under this chapter is de minimis; or
329 (B) seller's sales price of the tangible personal property or product subject to taxation
330 under this chapter is de minimis; and
331 (vii) the retail sale of tangible personal property that is not subject to taxation under
332 this chapter and tangible personal property that is subject to taxation under this chapter if:
333 (A) that retail sale includes:
334 (I) food and food ingredients;
335 (II) a drug;
336 (III) durable medical equipment;
337 (IV) mobility enhancing equipment;
338 (V) an over-the-counter drug;
339 (VI) a prosthetic device; or
340 (VII) a medical supply; and
341 (B) subject to Subsection (19)(f):
342 (I) the seller's purchase price of the tangible personal property subject to taxation under
343 this chapter is 50% or less of the seller's total purchase price of that retail sale; or
344 (II) the seller's sales price of the tangible personal property subject to taxation under
345 this chapter is 50% or less of the seller's total sales price of that retail sale.
346 (c) (i) For purposes of Subsection (19)(a)(i), tangible personal property, a product, or a
347 service that is distinct and identifiable does not include:
348 (A) packaging that:
349 (I) accompanies the sale of the tangible personal property, product, or service; and
350 (II) is incidental or immaterial to the sale of the tangible personal property, product, or
351 service;
352 (B) tangible personal property, a product, or a service provided free of charge with the
353 purchase of another item of tangible personal property, a product, or a service; or
354 (C) an item of tangible personal property, a product, or a service included in the
355 definition of "purchase price."
356 (ii) For purposes of Subsection (19)(c)(i)(B), an item of tangible personal property, a
357 product, or a service is provided free of charge with the purchase of another item of tangible
358 personal property, a product, or a service if the sales price of the purchased item of tangible
359 personal property, product, or service does not vary depending on the inclusion of the tangible
360 personal property, product, or service provided free of charge.
361 (d) (i) For purposes of Subsection (19)(a)(ii), property sold for one nonitemized price
362 does not include a price that is separately identified by tangible personal property, product, or
363 service on the following, regardless of whether the following is in paper format or electronic
364 format:
365 (A) a binding sales document; or
366 (B) another supporting sales-related document that is available to a purchaser.
367 (ii) For purposes of Subsection (19)(d)(i), a binding sales document or another
368 supporting sales-related document that is available to a purchaser includes:
369 (A) a bill of sale;
370 (B) a contract;
371 (C) an invoice;
372 (D) a lease agreement;
373 (E) a periodic notice of rates and services;
374 (F) a price list;
375 (G) a rate card;
376 (H) a receipt; or
377 (I) a service agreement.
378 (e) (i) For purposes of Subsection (19)(b)(vi), the sales price of tangible personal
379 property or a product subject to taxation under this chapter is de minimis if:
380 (A) the seller's purchase price of the tangible personal property or product is 10% or
381 less of the seller's total purchase price of the bundled transaction; or
382 (B) the seller's sales price of the tangible personal property or product is 10% or less of
383 the seller's total sales price of the bundled transaction.
384 (ii) For purposes of Subsection (19)(b)(vi), a seller:
385 (A) shall use the seller's purchase price or the seller's sales price to determine if the
386 purchase price or sales price of the tangible personal property or product subject to taxation
387 under this chapter is de minimis; and
388 (B) may not use a combination of the seller's purchase price and the seller's sales price
389 to determine if the purchase price or sales price of the tangible personal property or product
390 subject to taxation under this chapter is de minimis.
391 (iii) For purposes of Subsection (19)(b)(vi), a seller shall use the full term of a service
392 contract to determine if the sales price of tangible personal property or a product is de minimis.
393 (f) For purposes of Subsection (19)(b)(vii)(B), a seller may not use a combination of
394 the seller's purchase price and the seller's sales price to determine if tangible personal property
395 subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
396 price of that retail sale.
397 (20) "Certified automated system" means software certified by the governing board of
398 the agreement that:
399 (a) calculates the agreement sales and use tax imposed within a local taxing
400 jurisdiction:
401 (i) on a transaction; and
402 (ii) in the states that are members of the agreement;
403 (b) determines the amount of agreement sales and use tax to remit to a state that is a
404 member of the agreement; and
405 (c) maintains a record of the transaction described in Subsection (20)(a)(i).
406 (21) "Certified service provider" means an agent certified:
407 (a) by the governing board of the agreement; and
408 (b) to perform a seller's sales and use tax functions for an agreement sales and use tax,
409 as outlined in the contract between the governing board of the agreement and the certified
410 service provider, other than the seller's obligation under Section 59-12-124 to remit a tax on the
411 seller's own purchases.
412 (22) (a) [
413 subject to Subsection (22)(c), "clothing" means all human wearing apparel suitable for general
414 use.
415 (b) "Clothing" does not include diapers.
416 [
417 Act, the commission shall make rules:
418 (i) listing the items that constitute "clothing"; and
419 (ii) that are consistent with the list of items that constitute "clothing" under the
420 agreement and this Subsection (22).
421 (23) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
422 (24) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
423 fuels that does not constitute industrial use under Subsection [
424 under Subsection [
425 (25) (a) "Common carrier" means a person engaged in or transacting the business of
426 transporting passengers, freight, merchandise, or other property for hire within this state.
427 (b) (i) "Common carrier" does not include a person that, at the time the person is
428 traveling to or from that person's place of employment, transports a passenger to or from the
429 passenger's place of employment.
430 (ii) For purposes of Subsection (25)(b)(i), in accordance with Title 63G, Chapter 3,
431 Utah Administrative Rulemaking Act, the commission may make rules defining what
432 constitutes a person's place of employment.
433 (c) "Common carrier" does not include a person that provides transportation network
434 services, as defined in Section 13-51-102.
435 (26) "Component part" includes:
436 (a) poultry, dairy, and other livestock feed, and their components;
437 (b) baling ties and twine used in the baling of hay and straw;
438 (c) fuel used for providing temperature control of orchards and commercial
439 greenhouses doing a majority of their business in wholesale sales, and for providing power for
440 off-highway type farm machinery; and
441 (d) feed, seeds, and seedlings.
442 (27) "Computer" means an electronic device that accepts information:
443 (a) (i) in digital form; or
444 (ii) in a form similar to digital form; and
445 (b) manipulates that information for a result based on a sequence of instructions.
446 (28) "Computer software" means a set of coded instructions designed to cause:
447 (a) a computer to perform a task; or
448 (b) automatic data processing equipment to perform a task.
449 (29) "Computer software maintenance contract" means a contract that obligates a seller
450 of computer software to provide a customer with:
451 (a) future updates or upgrades to computer software;
452 (b) support services with respect to computer software; or
453 (c) a combination of Subsections (29)(a) and (b).
454 (30) (a) "Conference bridging service" means an ancillary service that links two or
455 more participants of an audio conference call or video conference call.
456 (b) "Conference bridging service" may include providing a telephone number as part of
457 the ancillary service described in Subsection (30)(a).
458 (c) "Conference bridging service" does not include a telecommunications service used
459 to reach the ancillary service described in Subsection (30)(a).
460 (31) "Construction materials" means any tangible personal property that will be
461 converted into real property.
462 (32) "Delivered electronically" means delivered to a purchaser by means other than
463 tangible storage media.
464 (33) (a) "Delivery charge" means a charge:
465 (i) by a seller of:
466 (A) tangible personal property;
467 (B) a product transferred electronically; or
468 (C) a service; and
469 (ii) for preparation and delivery of the tangible personal property, product transferred
470 electronically, or services described in Subsection (33)(a)(i) to a location designated by the
471 purchaser.
472 (b) "Delivery charge" includes a charge for the following:
473 (i) transportation;
474 (ii) shipping;
475 (iii) postage;
476 (iv) handling;
477 (v) crating; or
478 (vi) packing.
479 (34) "Detailed telecommunications billing service" means an ancillary service of
480 separately stating information pertaining to individual calls on a customer's billing statement.
481 (35) "Diaper" means an absorbent garment worn by a human who is incapable of, or
482 has difficulty, controlling bladder or bowel movements.
483 [
484 (a) is intended to supplement the diet;
485 (b) contains one or more of the following dietary ingredients:
486 (i) a vitamin;
487 (ii) a mineral;
488 (iii) an herb or other botanical;
489 (iv) an amino acid;
490 (v) a dietary substance for use by humans to supplement the diet by increasing the total
491 dietary intake; or
492 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
493 described in Subsections [
494 (c) (i) except as provided in Subsection [
495 (A) tablet form;
496 (B) capsule form;
497 (C) powder form;
498 (D) softgel form;
499 (E) gelcap form; or
500 (F) liquid form; or
501 (ii) if the product is not intended for ingestion in a form described in Subsections [
502 (36)(c)(i)(A) through (F), is not represented:
503 (A) as conventional food; and
504 (B) for use as a sole item of:
505 (I) a meal; or
506 (II) the diet; and
507 (d) is required to be labeled as a dietary supplement:
508 (i) identifiable by the "Supplemental Facts" box found on the label; and
509 (ii) as required by 21 C.F.R. Sec. 101.36.
510 [
511 series of musical, spoken, or other sounds.
512 (b) "Digital audio work" includes a ringtone.
513 [
514 shown in succession, imparts an impression of motion, together with accompanying sounds, if
515 any.
516 [
517 and usual sense as a book.
518 [
519 States mail or other delivery service:
520 (i) to:
521 (A) a mass audience; or
522 (B) addressees on a mailing list provided:
523 (I) by a purchaser of the mailing list; or
524 (II) at the discretion of the purchaser of the mailing list; and
525 (ii) if the cost of the printed material is not billed directly to the recipients.
526 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
527 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
528 (c) "Direct mail" does not include multiple items of printed material delivered to a
529 single address.
530 [
531 (a) address information; or
532 (b) telephone number information.
533 [
534 equipment or supplies that:
535 (i) cannot withstand repeated use; and
536 (ii) are purchased by, for, or on behalf of a person other than:
537 (A) a health care facility as defined in Section 26-21-2;
538 (B) a health care provider as defined in Section 78B-3-403;
539 (C) an office of a health care provider described in Subsection [
540 (D) a person similar to a person described in Subsections [
541 (C).
542 (b) "Disposable home medical equipment or supplies" does not include:
543 (i) a drug;
544 (ii) durable medical equipment;
545 (iii) a hearing aid;
546 (iv) a hearing aid accessory;
547 (v) mobility enhancing equipment; or
548 (vi) tangible personal property used to correct impaired vision, including:
549 (A) eyeglasses; or
550 (B) contact lenses.
551 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
552 commission may by rule define what constitutes medical equipment or supplies.
553 [
554 (a) located in the state;
555 (b) with respect to which 51% or more of the manufacturing activities of the facility
556 consist of manufacturing component parts of drilling equipment;
557 (c) that uses pressure of 800,000 or more pounds per square inch as part of the
558 manufacturing process; and
559 (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
560 manufacturing process.
561 [
562 a compound, substance, or preparation that is:
563 (i) recognized in:
564 (A) the official United States Pharmacopoeia;
565 (B) the official Homeopathic Pharmacopoeia of the United States;
566 (C) the official National Formulary; or
567 (D) a supplement to a publication listed in Subsections [
568 (C);
569 (ii) intended for use in the:
570 (A) diagnosis of disease;
571 (B) cure of disease;
572 (C) mitigation of disease;
573 (D) treatment of disease; or
574 (E) prevention of disease; or
575 (iii) intended to affect:
576 (A) the structure of the body; or
577 (B) any function of the body.
578 (b) "Drug" does not include:
579 (i) food and food ingredients;
580 (ii) a dietary supplement;
581 (iii) an alcoholic beverage; or
582 (iv) a prosthetic device.
583 [
584 equipment" means equipment that:
585 (i) can withstand repeated use;
586 (ii) is primarily and customarily used to serve a medical purpose;
587 (iii) generally is not useful to a person in the absence of illness or injury; and
588 (iv) is not worn in or on the body.
589 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
590 equipment described in Subsection [
591 (c) "Durable medical equipment" does not include mobility enhancing equipment.
592 [
593 (a) relating to technology; and
594 (b) having:
595 (i) electrical capabilities;
596 (ii) digital capabilities;
597 (iii) magnetic capabilities;
598 (iv) wireless capabilities;
599 (v) optical capabilities;
600 (vi) electromagnetic capabilities; or
601 (vii) capabilities similar to Subsections [
602 [
603 (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
604 Clearinghouse Activities, of the 2012 North American Industry Classification System of the
605 federal Executive Office of the President, Office of Management and Budget; and
606 (b) that performs electronic financial payment services.
607 [
608 (49) (a) "Feminine hygiene products" means:
609 (i) tampons;
610 (ii) panty liners;
611 (iii) menstrual cups;
612 (iv) sanitary napkins; or
613 (v) other similar tangible personal property designed for feminine hygiene in
614 connection with the human menstrual cycle.
615 (b) "Feminine hygiene products" does not include:
616 (i) soaps or cleaning solutions;
617 (ii) shampoo;
618 (iii) toothpaste;
619 (iv) mouthwash;
620 (v) antiperspirants; or
621 (vi) sun tan lotions or screens.
622 [
623 (a) rail for the use of public transit; or
624 (b) a separate right-of-way for the use of public transit.
625 [
626 (a) is powered by turbine engines;
627 (b) operates on jet fuel; and
628 (c) has wings that are permanently attached to the fuselage of the aircraft.
629 [
630 radio communication between fixed points.
631 [
632 (i) regardless of whether the substances are in:
633 (A) liquid form;
634 (B) concentrated form;
635 (C) solid form;
636 (D) frozen form;
637 (E) dried form; or
638 (F) dehydrated form; and
639 (ii) that are:
640 (A) sold for:
641 (I) ingestion by humans; or
642 (II) chewing by humans; and
643 (B) consumed for the substance's:
644 (I) taste; or
645 (II) nutritional value.
646 (b) "Food and food ingredients" includes an item described in Subsection [
647 (97)(b)(iii).
648 (c) "Food and food ingredients" does not include:
649 (i) an alcoholic beverage;
650 (ii) tobacco; or
651 (iii) prepared food.
652 [
653 (i) (A) made by a school; or
654 (B) made by a school student;
655 (ii) that are for the purpose of raising funds for the school to purchase equipment,
656 materials, or provide transportation; and
657 (iii) that are part of an officially sanctioned school activity.
658 (b) For purposes of Subsection [
659 means a school activity:
660 (i) that is conducted in accordance with a formal policy adopted by the school or school
661 district governing the authorization and supervision of fundraising activities;
662 (ii) that does not directly or indirectly compensate an individual teacher or other
663 educational personnel by direct payment, commissions, or payment in kind; and
664 (iii) the net or gross revenues from which are deposited in a dedicated account
665 controlled by the school or school district.
666 [
667 flows outward from the earth that is used as the sole source of energy to produce electricity.
668 [
669 agreement that is:
670 (a) authorized to administer the agreement; and
671 (b) established in accordance with the agreement.
672 [
673 means:
674 (i) the executive branch of the state, including all departments, institutions, boards,
675 divisions, bureaus, offices, commissions, and committees;
676 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
677 Administrative Office of the Courts, and similar administrative units in the judicial branch;
678 (iii) the legislative branch of the state, including the House of Representatives, the
679 Senate, the Legislative Printing Office, the Office of Legislative Research and General
680 Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
681 Analyst;
682 (iv) the National Guard;
683 (v) an independent entity as defined in Section 63E-1-102; or
684 (vi) a political subdivision as defined in Section 17B-1-102.
685 (b) "Governmental entity" does not include the state systems of public and higher
686 education, including:
687 (i) a school;
688 (ii) the State Board of Education;
689 (iii) the State Board of Regents; or
690 (iv) an institution of higher education described in Section 53B-1-102.
691 [
692 produce electricity.
693 [
694 or other fuels:
695 (a) in mining or extraction of minerals;
696 (b) in agricultural operations to produce an agricultural product up to the time of
697 harvest or placing the agricultural product into a storage facility, including:
698 (i) commercial greenhouses;
699 (ii) irrigation pumps;
700 (iii) farm machinery;
701 (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
702 under Title 41, Chapter 1a, Part 2, Registration; and
703 (v) other farming activities;
704 (c) in manufacturing tangible personal property at an establishment described in:
705 (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
706 the federal Executive Office of the President, Office of Management and Budget; or
707 (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
708 American Industry Classification System of the federal Executive Office of the President,
709 Office of Management and Budget;
710 (d) by a scrap recycler if:
711 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
712 one or more of the following items into prepared grades of processed materials for use in new
713 products:
714 (A) iron;
715 (B) steel;
716 (C) nonferrous metal;
717 (D) paper;
718 (E) glass;
719 (F) plastic;
720 (G) textile; or
721 (H) rubber; and
722 (ii) the new products under Subsection [
723 nonrecycled materials; or
724 (e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
725 cogeneration facility as defined in Section 54-2-1.
726 [
727 means a charge for installing:
728 (i) tangible personal property; or
729 (ii) a product transferred electronically.
730 (b) "Installation charge" does not include a charge for:
731 (i) repairs or renovations of:
732 (A) tangible personal property; or
733 (B) a product transferred electronically; or
734 (ii) attaching tangible personal property or a product transferred electronically:
735 (A) to other tangible personal property; and
736 (B) as part of a manufacturing or fabrication process.
737 [
738 listed in Section 53B-2-101.
739 [
740 personal property or a product transferred electronically for:
741 (i) (A) a fixed term; or
742 (B) an indeterminate term; and
743 (ii) consideration.
744 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
745 amount of consideration may be increased or decreased by reference to the amount realized
746 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
747 Code.
748 (c) "Lease" or "rental" does not include:
749 (i) a transfer of possession or control of property under a security agreement or
750 deferred payment plan that requires the transfer of title upon completion of the required
751 payments;
752 (ii) a transfer of possession or control of property under an agreement that requires the
753 transfer of title:
754 (A) upon completion of required payments; and
755 (B) if the payment of an option price does not exceed the greater of:
756 (I) $100; or
757 (II) 1% of the total required payments; or
758 (iii) providing tangible personal property along with an operator for a fixed period of
759 time or an indeterminate period of time if the operator is necessary for equipment to perform as
760 designed.
761 (d) For purposes of Subsection [
762 equipment to perform as designed if the operator's duties exceed the:
763 (i) set-up of tangible personal property;
764 (ii) maintenance of tangible personal property; or
765 (iii) inspection of tangible personal property.
766 [
767 classified under the following NAICS codes of the 2007 North American Industry
768 Classification System of the federal Executive Office of the President, Office of Management
769 and Budget:
770 (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
771 (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
772 Manufacturing; or
773 (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
774 [
775 leased, or rented by a life science establishment if research and development is performed in
776 51% or more of the total area of the facility.
777 [
778 media if the tangible storage media is not physically transferred to the purchaser.
779 [
780 (a) county that is authorized to impose an agreement sales and use tax;
781 (b) city that is authorized to impose an agreement sales and use tax; or
782 (c) town that is authorized to impose an agreement sales and use tax.
783 [
784 15A-1-302.
785 [
786 (a) an establishment described in:
787 (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
788 the federal Executive Office of the President, Office of Management and Budget; or
789 (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
790 American Industry Classification System of the federal Executive Office of the President,
791 Office of Management and Budget;
792 (b) a scrap recycler if:
793 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
794 one or more of the following items into prepared grades of processed materials for use in new
795 products:
796 (A) iron;
797 (B) steel;
798 (C) nonferrous metal;
799 (D) paper;
800 (E) glass;
801 (F) plastic;
802 (G) textile; or
803 (H) rubber; and
804 (ii) the new products under Subsection [
805 nonrecycled materials; or
806 (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
807 placed in service on or after May 1, 2006.
808 [
809 where tangible personal property, a product transferred electronically, or a service is offered for
810 sale.
811 (b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a
812 dedicated sales software application.
813 [
814 person, that enters into a contract, an agreement, or otherwise with sellers, for consideration, to
815 facilitate the sale of a seller's product through a marketplace that the person owns, operates, or
816 controls and that directly or indirectly:
817 (i) does any of the following:
818 (A) lists, makes available, or advertises tangible personal property, a product
819 transferred electronically, or a service for sale by a marketplace seller on a marketplace that the
820 person owns, operates, or controls;
821 (B) facilitates the sale of a marketplace seller's tangible personal property, product
822 transferred electronically, or service by transmitting or otherwise communicating an offer or
823 acceptance of a retail sale between the marketplace seller and a purchaser using the
824 marketplace;
825 (C) owns, rents, licenses, makes available, or operates any electronic or physical
826 infrastructure or any property, process, method, copyright, trademark, or patent that connects a
827 marketplace seller to a purchaser for the purpose of making a retail sale of tangible personal
828 property, a product transferred electronically, or a service;
829 (D) provides a marketplace for making, or otherwise facilitates, a retail sale of tangible
830 personal property, a product transferred electronically, or a service, regardless of ownership or
831 control of the tangible personal property, the product transferred electronically, or the service
832 that is the subject of the retail sale;
833 (E) provides software development or research and development activities related to
834 any activity described in this Subsection [
835 research and development activity is directly related to the person's marketplace;
836 (F) provides or offers fulfillment or storage services for a marketplace seller;
837 (G) sets prices for the sale of tangible personal property, a product transferred
838 electronically, or a service by a marketplace seller;
839 (H) provides or offers customer service to a marketplace seller or a marketplace seller's
840 purchaser or accepts or assists with taking orders, returns, or exchanges of tangible personal
841 property, a product transferred electronically, or a service sold by a marketplace seller on the
842 person's marketplace; or
843 (I) brands or otherwise identifies sales as those of the person; and
844 (ii) does any of the following:
845 (A) collects the sales price or purchase price of a retail sale of tangible personal
846 property, a product transferred electronically, or a service;
847 (B) provides payment processing services for a retail sale of tangible personal property,
848 a product transferred electronically, or a service;
849 (C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee, closing
850 fee, a fee for inserting or making available tangible personal property, a product transferred
851 electronically, or a service on the person's marketplace, or other consideration for the
852 facilitation of a retail sale of tangible personal property, a product transferred electronically, or
853 a service, regardless of ownership or control of the tangible personal property, the product
854 transferred electronically, or the service that is the subject of the retail sale;
855 (D) through terms and conditions, an agreement, or another arrangement with a third
856 person, collects payment from a purchase for a retail sale of tangible personal property, a
857 product transferred electronically, or a service and transmits that payment to the marketplace
858 seller, regardless of whether the third person receives compensation or other consideration in
859 exchange for the service; or
860 (E) provides a virtual currency for a purchaser to use to purchase tangible personal
861 property, a product transferred electronically, or service offered for sale.
862 (b) "Marketplace facilitator" does not include a person that only provides payment
863 processing services.
864 [
865 through a marketplace that a marketplace facilitator owns, operates, or controls, regardless of
866 whether the seller is required to be registered to collect and remit the tax under this part.
867 [
868 related to a producer described in Subsection 59-12-104(20)(a) as a:
869 (a) child or stepchild, regardless of whether the child or stepchild is:
870 (i) an adopted child or adopted stepchild; or
871 (ii) a foster child or foster stepchild;
872 (b) grandchild or stepgrandchild;
873 (c) grandparent or stepgrandparent;
874 (d) nephew or stepnephew;
875 (e) niece or stepniece;
876 (f) parent or stepparent;
877 (g) sibling or stepsibling;
878 (h) spouse;
879 (i) person who is the spouse of a person described in Subsections [
880 (g); or
881 (j) person similar to a person described in Subsections [
882 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
883 Administrative Rulemaking Act.
884 [
885 15A-1-302.
886 [
887 defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
888 [
889 regardless of the technology used, if:
890 (i) the origination point of the conveyance, routing, or transmission is not fixed;
891 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
892 (iii) the origination point described in Subsection [
893 point described in Subsection [
894 (b) "Mobile wireless service" includes a telecommunications service that is provided
895 by a commercial mobile radio service provider.
896 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
897 commission may by rule define "commercial mobile radio service provider."
898 [
899 equipment" means equipment that is:
900 (i) primarily and customarily used to provide or increase the ability to move from one
901 place to another;
902 (ii) appropriate for use in a:
903 (A) home; or
904 (B) motor vehicle; and
905 (iii) not generally used by persons with normal mobility.
906 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
907 the equipment described in Subsection [
908 (c) "Mobility enhancing equipment" does not include:
909 (i) a motor vehicle;
910 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
911 vehicle manufacturer;
912 (iii) durable medical equipment; or
913 (iv) a prosthetic device.
914 [
915 selected a certified service provider as the seller's agent to perform the seller's sales and use tax
916 functions for agreement sales and use taxes, as outlined in the contract between the governing
917 board of the agreement and the certified service provider, other than the seller's obligation
918 under Section 59-12-124 to remit a tax on the seller's own purchases.
919 [
920 (a) except as provided in Subsection [
921 system to perform the seller's sales tax functions for agreement sales and use taxes; and
922 (b) retains responsibility for remitting all of the sales tax:
923 (i) collected by the seller; and
924 (ii) to the appropriate local taxing jurisdiction.
925 [
926 registered under the agreement that has:
927 (i) sales in at least five states that are members of the agreement;
928 (ii) total annual sales revenues of at least $500,000,000;
929 (iii) a proprietary system that calculates the amount of tax:
930 (A) for an agreement sales and use tax; and
931 (B) due to each local taxing jurisdiction; and
932 (iv) entered into a performance agreement with the governing board of the agreement.
933 (b) For purposes of Subsection [
934 group of sellers using the same proprietary system.
935 [
936 not a model 1 seller, model 2 seller, or model 3 seller.
937 [
938 [
939 41-1a-102.
940 [
941 (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
942 other hydrocarbons, or otherwise treated;
943 (b) yield mixtures of liquid hydrocarbon; and
944 (c) require further processing other than mechanical blending before becoming finished
945 petroleum products.
946 [
947 kerogen material that yields petroleum upon heating and distillation.
948 [
949 software maintenance contract that a customer is not obligated to purchase as a condition to the
950 retail sale of computer software.
951 [
952 energy.
953 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
954 personal property.
955 [
956 transmission of a coded radio signal for the purpose of activating a specific pager.
957 (b) For purposes of Subsection [
958 includes a transmission by message or sound.
959 [
960 13-32a-102.
961 [
962 13-32a-102.
963 [
964 property attached to real property:
965 (i) the attachment of the tangible personal property to the real property:
966 (A) is essential to the use of the tangible personal property; and
967 (B) suggests that the tangible personal property will remain attached to the real
968 property in the same place over the useful life of the tangible personal property; or
969 (ii) if the tangible personal property is detached from the real property, the detachment
970 would:
971 (A) cause substantial damage to the tangible personal property; or
972 (B) require substantial alteration or repair of the real property to which the tangible
973 personal property is attached.
974 (b) "Permanently attached to real property" includes:
975 (i) the attachment of an accessory to the tangible personal property if the accessory is:
976 (A) essential to the operation of the tangible personal property; and
977 (B) attached only to facilitate the operation of the tangible personal property;
978 (ii) a temporary detachment of tangible personal property from real property for a
979 repair or renovation if the repair or renovation is performed where the tangible personal
980 property and real property are located; or
981 (iii) property attached to oil, gas, or water pipelines, except for the property listed in
982 Subsection [
983 (c) "Permanently attached to real property" does not include:
984 (i) the attachment of portable or movable tangible personal property to real property if
985 that portable or movable tangible personal property is attached to real property only for:
986 (A) convenience;
987 (B) stability; or
988 (C) for an obvious temporary purpose;
989 (ii) the detachment of tangible personal property from real property except for the
990 detachment described in Subsection [
991 (iii) an attachment of the following tangible personal property to real property if the
992 attachment to real property is only through a line that supplies water, electricity, gas,
993 telecommunications, cable, or supplies a similar item as determined by the commission by rule
994 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
995 (A) a computer;
996 (B) a telephone;
997 (C) a television; or
998 (D) tangible personal property similar to Subsections [
999 as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1000 Administrative Rulemaking Act; or
1001 (iv) an item listed in Subsection [
1002 [
1003 association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
1004 city, municipality, district, or other local governmental entity of the state, or any group or
1005 combination acting as a unit.
1006 [
1007 (a) for telecommunications service other than mobile telecommunications service,
1008 means the street address representative of where the customer's use of the telecommunications
1009 service primarily occurs, which shall be:
1010 (i) the residential street address of the customer; or
1011 (ii) the primary business street address of the customer; or
1012 (b) for mobile telecommunications service, means the same as that term is defined in
1013 the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1014 [
1015 obtains by making a payment on a call-by-call basis:
1016 (i) through the use of a:
1017 (A) bank card;
1018 (B) credit card;
1019 (C) debit card; or
1020 (D) travel card; or
1021 (ii) by a charge made to a telephone number that is not associated with the origination
1022 or termination of the telecommunications service.
1023 (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
1024 service, that would be a prepaid wireless calling service if the service were exclusively a
1025 telecommunications service.
1026 [
1027 a medium described in Subsection 59-12-104(54)(a).
1028 [
1029 (a) that allows a purchaser access to telecommunications service that is exclusively
1030 telecommunications service;
1031 (b) that:
1032 (i) is paid for in advance; and
1033 (ii) enables the origination of a call using an:
1034 (A) access number; or
1035 (B) authorization code;
1036 (c) that is dialed:
1037 (i) manually; or
1038 (ii) electronically; and
1039 (d) sold in predetermined units or dollars that decline:
1040 (i) by a known amount; and
1041 (ii) with use.
1042 [
1043 (a) that provides the right to utilize:
1044 (i) mobile wireless service; and
1045 (ii) other service that is not a telecommunications service, including:
1046 (A) the download of a product transferred electronically;
1047 (B) a content service; or
1048 (C) an ancillary service;
1049 (b) that:
1050 (i) is paid for in advance; and
1051 (ii) enables the origination of a call using an:
1052 (A) access number; or
1053 (B) authorization code;
1054 (c) that is dialed:
1055 (i) manually; or
1056 (ii) electronically; and
1057 (d) sold in predetermined units or dollars that decline:
1058 (i) by a known amount; and
1059 (ii) with use.
1060 [
1061 (i) food:
1062 (A) sold in a heated state; or
1063 (B) heated by a seller;
1064 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
1065 item; or
1066 (iii) except as provided in Subsection [
1067 provided by the seller, including a:
1068 (A) plate;
1069 (B) knife;
1070 (C) fork;
1071 (D) spoon;
1072 (E) glass;
1073 (F) cup;
1074 (G) napkin; or
1075 (H) straw.
1076 (b) "Prepared food" does not include:
1077 (i) food that a seller only:
1078 (A) cuts;
1079 (B) repackages; or
1080 (C) pasteurizes; or
1081 (ii) (A) the following:
1082 (I) raw egg;
1083 (II) raw fish;
1084 (III) raw meat;
1085 (IV) raw poultry; or
1086 (V) a food containing an item described in Subsections (95)(b)(ii)(A)(I) through (IV);
1087 and
1088 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
1089 Food and Drug Administration's Food Code that a consumer cook the items described in
1090 Subsection [
1091 (iii) the following if sold without eating utensils provided by the seller:
1092 (A) food and food ingredients sold by a seller if the seller's proper primary
1093 classification under the 2002 North American Industry Classification System of the federal
1094 Executive Office of the President, Office of Management and Budget, is manufacturing in
1095 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
1096 Manufacturing;
1097 (B) food and food ingredients sold in an unheated state:
1098 (I) by weight or volume; and
1099 (II) as a single item; or
1100 (C) a bakery item, including:
1101 (I) a bagel;
1102 (II) a bar;
1103 (III) a biscuit;
1104 (IV) bread;
1105 (V) a bun;
1106 (VI) a cake;
1107 (VII) a cookie;
1108 (VIII) a croissant;
1109 (IX) a danish;
1110 (X) a donut;
1111 (XI) a muffin;
1112 (XII) a pastry;
1113 (XIII) a pie;
1114 (XIV) a roll;
1115 (XV) a tart;
1116 (XVI) a torte; or
1117 (XVII) a tortilla.
1118 (c) An eating utensil provided by the seller does not include the following used to
1119 transport the food:
1120 (i) a container; or
1121 (ii) packaging.
1122 [
1123 (a) (i) orally;
1124 (ii) in writing;
1125 (iii) electronically; or
1126 (iv) by any other manner of transmission; and
1127 (b) by a licensed practitioner authorized by the laws of a state.
1128 [
1129 computer software" means computer software that is not designed and developed:
1130 (i) by the author or other creator of the computer software; and
1131 (ii) to the specifications of a specific purchaser.
1132 (b) "Prewritten computer software" includes:
1133 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
1134 software is not designed and developed:
1135 (A) by the author or other creator of the computer software; and
1136 (B) to the specifications of a specific purchaser;
1137 (ii) computer software designed and developed by the author or other creator of the
1138 computer software to the specifications of a specific purchaser if the computer software is sold
1139 to a person other than the purchaser; or
1140 (iii) except as provided in Subsection [
1141 prewritten portion of prewritten computer software:
1142 (A) that is modified or enhanced to any degree; and
1143 (B) if the modification or enhancement described in Subsection [
1144 designed and developed to the specifications of a specific purchaser.
1145 (c) "Prewritten computer software" does not include a modification or enhancement
1146 described in Subsection [
1147 are:
1148 (i) reasonable; and
1149 (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), separately stated on the
1150 invoice or other statement of price provided to the purchaser at the time of sale or later, as
1151 demonstrated by:
1152 (A) the books and records the seller keeps at the time of the transaction in the regular
1153 course of business, including books and records the seller keeps at the time of the transaction in
1154 the regular course of business for nontax purposes;
1155 (B) a preponderance of the facts and circumstances at the time of the transaction; and
1156 (C) the understanding of all of the parties to the transaction.
1157 [
1158 service:
1159 (i) that entitles a customer to exclusive or priority use of one or more communications
1160 channels between or among termination points; and
1161 (ii) regardless of the manner in which the one or more communications channels are
1162 connected.
1163 (b) "Private communications service" includes the following provided in connection
1164 with the use of one or more communications channels:
1165 (i) an extension line;
1166 (ii) a station;
1167 (iii) switching capacity; or
1168 (iv) another associated service that is provided in connection with the use of one or
1169 more communications channels as defined in Section 59-12-215.
1170 [
1171 electronically" means a product transferred electronically that would be subject to a tax under
1172 this chapter if that product was transferred in a manner other than electronically.
1173 (b) "Product transferred electronically" does not include:
1174 (i) an ancillary service;
1175 (ii) computer software; or
1176 (iii) a telecommunications service.
1177 [
1178 (i) artificially replace a missing portion of the body;
1179 (ii) prevent or correct a physical deformity or physical malfunction; or
1180 (iii) support a weak or deformed portion of the body.
1181 (b) "Prosthetic device" includes:
1182 (i) parts used in the repairs or renovation of a prosthetic device;
1183 (ii) replacement parts for a prosthetic device;
1184 (iii) a dental prosthesis; or
1185 (iv) a hearing aid.
1186 (c) "Prosthetic device" does not include:
1187 (i) corrective eyeglasses; or
1188 (ii) contact lenses.
1189 [
1190 (i) for human wear; and
1191 (ii) that is:
1192 (A) designed as protection:
1193 (I) to the wearer against injury or disease; or
1194 (II) against damage or injury of other persons or property; and
1195 (B) not suitable for general use.
1196 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1197 commission shall make rules:
1198 (i) listing the items that constitute "protective equipment"; and
1199 (ii) that are consistent with the list of items that constitute "protective equipment"
1200 under the agreement.
1201 [
1202 written or printed matter, other than a photocopy:
1203 (i) regardless of:
1204 (A) characteristics;
1205 (B) copyright;
1206 (C) form;
1207 (D) format;
1208 (E) method of reproduction; or
1209 (F) source; and
1210 (ii) made available in printed or electronic format.
1211 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1212 commission may by rule define the term "photocopy."
1213 [
1214 consideration:
1215 (i) valued in money; and
1216 (ii) for which tangible personal property, a product transferred electronically, or
1217 services are:
1218 (A) sold;
1219 (B) leased; or
1220 (C) rented.
1221 (b) "Purchase price" and "sales price" include:
1222 (i) the seller's cost of the tangible personal property, a product transferred
1223 electronically, or services sold;
1224 (ii) expenses of the seller, including:
1225 (A) the cost of materials used;
1226 (B) a labor cost;
1227 (C) a service cost;
1228 (D) interest;
1229 (E) a loss;
1230 (F) the cost of transportation to the seller; or
1231 (G) a tax imposed on the seller;
1232 (iii) a charge by the seller for any service necessary to complete the sale; or
1233 (iv) consideration a seller receives from a person other than the purchaser if:
1234 (A) (I) the seller actually receives consideration from a person other than the purchaser;
1235 and
1236 (II) the consideration described in Subsection [
1237 related to a price reduction or discount on the sale;
1238 (B) the seller has an obligation to pass the price reduction or discount through to the
1239 purchaser;
1240 (C) the amount of the consideration attributable to the sale is fixed and determinable by
1241 the seller at the time of the sale to the purchaser; and
1242 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1243 seller to claim a price reduction or discount; and
1244 (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1245 coupon, or other documentation with the understanding that the person other than the seller
1246 will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1247 (II) the purchaser identifies that purchaser to the seller as a member of a group or
1248 organization allowed a price reduction or discount, except that a preferred customer card that is
1249 available to any patron of a seller does not constitute membership in a group or organization
1250 allowed a price reduction or discount; or
1251 (III) the price reduction or discount is identified as a third party price reduction or
1252 discount on the:
1253 (Aa) invoice the purchaser receives; or
1254 (Bb) certificate, coupon, or other documentation the purchaser presents.
1255 (c) "Purchase price" and "sales price" do not include:
1256 (i) a discount:
1257 (A) in a form including:
1258 (I) cash;
1259 (II) term; or
1260 (III) coupon;
1261 (B) that is allowed by a seller;
1262 (C) taken by a purchaser on a sale; and
1263 (D) that is not reimbursed by a third party; or
1264 (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), the following if separately
1265 stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
1266 sale or later, as demonstrated by the books and records the seller keeps at the time of the
1267 transaction in the regular course of business, including books and records the seller keeps at the
1268 time of the transaction in the regular course of business for nontax purposes, by a
1269 preponderance of the facts and circumstances at the time of the transaction, and by the
1270 understanding of all of the parties to the transaction:
1271 (A) the following from credit extended on the sale of tangible personal property or
1272 services:
1273 (I) a carrying charge;
1274 (II) a financing charge; or
1275 (III) an interest charge;
1276 (B) a delivery charge;
1277 (C) an installation charge;
1278 (D) a manufacturer rebate on a motor vehicle; or
1279 (E) a tax or fee legally imposed directly on the consumer.
1280 [
1281 (a) a sale of tangible personal property is made;
1282 (b) a product is transferred electronically; or
1283 (c) a service is furnished.
1284 [
1285 (a) own and operate a data center facility that will house a group of networked server
1286 computers in one physical location in order to centralize the dissemination, management, and
1287 storage of data and information;
1288 (b) be located in the state;
1289 (c) be a new operation constructed on or after July 1, 2016;
1290 (d) consist of one or more buildings that total 150,000 or more square feet;
1291 (e) be owned or leased by:
1292 (i) the establishment; or
1293 (ii) a person under common ownership, as defined in Section 59-7-101, of the
1294 establishment; and
1295 (f) be located on one or more parcels of land that are owned or leased by:
1296 (i) the establishment; or
1297 (ii) a person under common ownership, as defined in Section 59-7-101, of the
1298 establishment.
1299 [
1300 (a) rented to a guest for value three or more times during a calendar year; or
1301 (b) advertised or held out to the public as a place that is regularly rented to guests for
1302 value.
1303 [
1304 [
1305 renovations of tangible personal property" means:
1306 (i) a repair or renovation of tangible personal property that is not permanently attached
1307 to real property; or
1308 (ii) attaching tangible personal property or a product transferred electronically to other
1309 tangible personal property or detaching tangible personal property or a product transferred
1310 electronically from other tangible personal property if:
1311 (A) the other tangible personal property to which the tangible personal property or
1312 product transferred electronically is attached or from which the tangible personal property or
1313 product transferred electronically is detached is not permanently attached to real property; and
1314 (B) the attachment of tangible personal property or a product transferred electronically
1315 to other tangible personal property or detachment of tangible personal property or a product
1316 transferred electronically from other tangible personal property is made in conjunction with a
1317 repair or replacement of tangible personal property or a product transferred electronically.
1318 (b) "Repairs or renovations of tangible personal property" does not include:
1319 (i) attaching prewritten computer software to other tangible personal property if the
1320 other tangible personal property to which the prewritten computer software is attached is not
1321 permanently attached to real property; or
1322 (ii) detaching prewritten computer software from other tangible personal property if the
1323 other tangible personal property from which the prewritten computer software is detached is
1324 not permanently attached to real property.
1325 [
1326 experimentation aimed at the discovery of facts, devices, technologies, or applications and the
1327 process of preparing those devices, technologies, or applications for marketing.
1328 [
1329 telecommunications service or an ancillary service that is provided to an individual for personal
1330 use:
1331 (i) at a residential address; or
1332 (ii) at an institution, including a nursing home or a school, if the telecommunications
1333 service or ancillary service is provided to and paid for by the individual residing at the
1334 institution rather than the institution.
1335 (b) For purposes of Subsection [
1336 (i) apartment; or
1337 (ii) other individual dwelling unit.
1338 [
1339 sleeping quarters, and similar facilities or accommodations.
1340 [
1341 other than:
1342 (a) resale;
1343 (b) sublease; or
1344 (c) subrent.
1345 [
1346 the United States or federal law, that is engaged in a regularly organized business in tangible
1347 personal property or any other taxable transaction under Subsection 59-12-103(1), and who is
1348 selling to the user or consumer and not for resale.
1349 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1350 engaged in the business of selling to users or consumers within the state.
1351 [
1352 otherwise, in any manner, of tangible personal property or any other taxable transaction under
1353 Subsection 59-12-103(1), for consideration.
1354 (b) "Sale" includes:
1355 (i) installment and credit sales;
1356 (ii) any closed transaction constituting a sale;
1357 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1358 chapter;
1359 (iv) any transaction if the possession of property is transferred but the seller retains the
1360 title as security for the payment of the price; and
1361 (v) any transaction under which right to possession, operation, or use of any article of
1362 tangible personal property is granted under a lease or contract and the transfer of possession
1363 would be taxable if an outright sale were made.
1364 [
1365 [
1366 [
1367 tangible personal property or a product transferred electronically that is subject to a tax under
1368 this chapter is transferred:
1369 (a) by a purchaser-lessee;
1370 (b) to a lessor;
1371 (c) for consideration; and
1372 (d) if:
1373 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1374 of the tangible personal property or product transferred electronically;
1375 (ii) the sale of the tangible personal property or product transferred electronically to the
1376 lessor is intended as a form of financing:
1377 (A) for the tangible personal property or product transferred electronically; and
1378 (B) to the purchaser-lessee; and
1379 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1380 is required to:
1381 (A) capitalize the tangible personal property or product transferred electronically for
1382 financial reporting purposes; and
1383 (B) account for the lease payments as payments made under a financing arrangement.
1384 [
1385 [
1386 [
1387 paid to, or amounts charged by a school:
1388 (i) sales that are directly related to the school's educational functions or activities
1389 including:
1390 (A) the sale of:
1391 (I) textbooks;
1392 (II) textbook fees;
1393 (III) laboratory fees;
1394 (IV) laboratory supplies; or
1395 (V) safety equipment;
1396 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1397 that:
1398 (I) a student is specifically required to wear as a condition of participation in a
1399 school-related event or school-related activity; and
1400 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1401 place of ordinary clothing;
1402 (C) sales of the following if the net or gross revenues generated by the sales are
1403 deposited into a school district fund or school fund dedicated to school meals:
1404 (I) food and food ingredients; or
1405 (II) prepared food; or
1406 (D) transportation charges for official school activities; or
1407 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1408 event or school-related activity.
1409 (b) "Sales relating to schools" does not include:
1410 (i) bookstore sales of items that are not educational materials or supplies;
1411 (ii) except as provided in Subsection [
1412 (A) clothing;
1413 (B) clothing accessories or equipment;
1414 (C) protective equipment; or
1415 (D) sports or recreational equipment; or
1416 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1417 event or school-related activity if the amounts paid or charged are passed through to a person:
1418 (A) other than a:
1419 (I) school;
1420 (II) nonprofit organization authorized by a school board or a governing body of a
1421 private school to organize and direct a competitive secondary school activity; or
1422 (III) nonprofit association authorized by a school board or a governing body of a
1423 private school to organize and direct a competitive secondary school activity; and
1424 (B) that is required to collect sales and use taxes under this chapter.
1425 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1426 commission may make rules defining the term "passed through."
1427 [
1428 (a) an elementary school or a secondary school that:
1429 (i) is a:
1430 (A) public school; or
1431 (B) private school; and
1432 (ii) provides instruction for one or more grades kindergarten through 12; or
1433 (b) a public school district.
1434 [
1435 (i) tangible personal property;
1436 (ii) a product transferred electronically; or
1437 (iii) a service.
1438 (b) "Seller" includes a marketplace facilitator.
1439 [
1440 materials" means tangible personal property or a product transferred electronically if the
1441 tangible personal property or product transferred electronically is:
1442 (i) used primarily in the process of:
1443 (A) (I) manufacturing a semiconductor;
1444 (II) fabricating a semiconductor; or
1445 (III) research or development of a:
1446 (Aa) semiconductor; or
1447 (Bb) semiconductor manufacturing process; or
1448 (B) maintaining an environment suitable for a semiconductor; or
1449 (ii) consumed primarily in the process of:
1450 (A) (I) manufacturing a semiconductor;
1451 (II) fabricating a semiconductor; or
1452 (III) research or development of a:
1453 (Aa) semiconductor; or
1454 (Bb) semiconductor manufacturing process; or
1455 (B) maintaining an environment suitable for a semiconductor.
1456 (b) "Semiconductor fabricating, processing, research, or development materials"
1457 includes:
1458 (i) parts used in the repairs or renovations of tangible personal property or a product
1459 transferred electronically described in Subsection [
1460 (ii) a chemical, catalyst, or other material used to:
1461 (A) produce or induce in a semiconductor a:
1462 (I) chemical change; or
1463 (II) physical change;
1464 (B) remove impurities from a semiconductor; or
1465 (C) improve the marketable condition of a semiconductor.
1466 [
1467 providing services to the aged as defined in Section 62A-3-101.
1468 [
1469 consumable" means tangible personal property that:
1470 (i) a business that provides accommodations and services described in Subsection
1471 59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
1472 to a purchaser;
1473 (ii) is intended to be consumed by the purchaser; and
1474 (iii) is:
1475 (A) included in the purchase price of the accommodations and services; and
1476 (B) not separately stated on an invoice, bill of sale, or other similar document provided
1477 to the purchaser.
1478 (b) "Short-term lodging consumable" includes:
1479 (i) a beverage;
1480 (ii) a brush or comb;
1481 (iii) a cosmetic;
1482 (iv) a hair care product;
1483 (v) lotion;
1484 (vi) a magazine;
1485 (vii) makeup;
1486 (viii) a meal;
1487 (ix) mouthwash;
1488 (x) nail polish remover;
1489 (xi) a newspaper;
1490 (xii) a notepad;
1491 (xiii) a pen;
1492 (xiv) a pencil;
1493 (xv) a razor;
1494 (xvi) saline solution;
1495 (xvii) a sewing kit;
1496 (xviii) shaving cream;
1497 (xix) a shoe shine kit;
1498 (xx) a shower cap;
1499 (xxi) a snack item;
1500 (xxii) soap;
1501 (xxiii) toilet paper;
1502 (xxiv) a toothbrush;
1503 (xxv) toothpaste; or
1504 (xxvi) an item similar to Subsections [
1505 commission may provide by rule made in accordance with Title 63G, Chapter 3, Utah
1506 Administrative Rulemaking Act.
1507 (c) "Short-term lodging consumable" does not include:
1508 (i) tangible personal property that is cleaned or washed to allow the tangible personal
1509 property to be reused; or
1510 (ii) a product transferred electronically.
1511 [
1512 (a) described in Section 318(C) of the agreement; and
1513 (b) approved by the governing board of the agreement.
1514 [
1515 producing electricity.
1516 [
1517 (i) designed for human use; and
1518 (ii) that is:
1519 (A) worn in conjunction with:
1520 (I) an athletic activity; or
1521 (II) a recreational activity; and
1522 (B) not suitable for general use.
1523 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1524 commission shall make rules:
1525 (i) listing the items that constitute "sports or recreational equipment"; and
1526 (ii) that are consistent with the list of items that constitute "sports or recreational
1527 equipment" under the agreement.
1528 [
1529 [
1530 any other taxable transaction under Subsection 59-12-103(1), in this state for any purpose
1531 except sale in the regular course of business.
1532 [
1533 personal property" means personal property that:
1534 (i) may be:
1535 (A) seen;
1536 (B) weighed;
1537 (C) measured;
1538 (D) felt; or
1539 (E) touched; or
1540 (ii) is in any manner perceptible to the senses.
1541 (b) "Tangible personal property" includes:
1542 (i) electricity;
1543 (ii) water;
1544 (iii) gas;
1545 (iv) steam; or
1546 (v) prewritten computer software, regardless of the manner in which the prewritten
1547 computer software is transferred.
1548 (c) "Tangible personal property" includes the following regardless of whether the item
1549 is attached to real property:
1550 (i) a dishwasher;
1551 (ii) a dryer;
1552 (iii) a freezer;
1553 (iv) a microwave;
1554 (v) a refrigerator;
1555 (vi) a stove;
1556 (vii) a washer; or
1557 (viii) an item similar to Subsections [
1558 the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1559 Rulemaking Act.
1560 (d) "Tangible personal property" does not include a product that is transferred
1561 electronically.
1562 (e) "Tangible personal property" does not include the following if attached to real
1563 property, regardless of whether the attachment to real property is only through a line that
1564 supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1565 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1566 Rulemaking Act:
1567 (i) a hot water heater;
1568 (ii) a water filtration system; or
1569 (iii) a water softener system.
1570 [
1571 or software" means an item listed in Subsection [
1572 leased primarily to enable or facilitate one or more of the following to function:
1573 (i) telecommunications switching or routing equipment, machinery, or software; or
1574 (ii) telecommunications transmission equipment, machinery, or software.
1575 (b) The following apply to Subsection [
1576 (i) a pole;
1577 (ii) software;
1578 (iii) a supplementary power supply;
1579 (iv) temperature or environmental equipment or machinery;
1580 (v) test equipment;
1581 (vi) a tower; or
1582 (vii) equipment, machinery, or software that functions similarly to an item listed in
1583 Subsections [
1584 accordance with Subsection [
1585 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1586 commission may by rule define what constitutes equipment, machinery, or software that
1587 functions similarly to an item listed in Subsections [
1588 [
1589 911 service" means equipment, machinery, or software that is required to comply with 47
1590 C.F.R. Sec. 20.18.
1591 [
1592 software" means equipment, machinery, or software purchased or leased primarily to maintain
1593 or repair one or more of the following, regardless of whether the equipment, machinery, or
1594 software is purchased or leased as a spare part or as an upgrade or modification to one or more
1595 of the following:
1596 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1597 (b) telecommunications switching or routing equipment, machinery, or software; or
1598 (c) telecommunications transmission equipment, machinery, or software.
1599 [
1600 routing, or transmission of audio, data, video, voice, or any other information or signal to a
1601 point, or among or between points.
1602 (b) "Telecommunications service" includes:
1603 (i) an electronic conveyance, routing, or transmission with respect to which a computer
1604 processing application is used to act:
1605 (A) on the code, form, or protocol of the content;
1606 (B) for the purpose of electronic conveyance, routing, or transmission; and
1607 (C) regardless of whether the service:
1608 (I) is referred to as voice over Internet protocol service; or
1609 (II) is classified by the Federal Communications Commission as enhanced or value
1610 added;
1611 (ii) an 800 service;
1612 (iii) a 900 service;
1613 (iv) a fixed wireless service;
1614 (v) a mobile wireless service;
1615 (vi) a postpaid calling service;
1616 (vii) a prepaid calling service;
1617 (viii) a prepaid wireless calling service; or
1618 (ix) a private communications service.
1619 (c) "Telecommunications service" does not include:
1620 (i) advertising, including directory advertising;
1621 (ii) an ancillary service;
1622 (iii) a billing and collection service provided to a third party;
1623 (iv) a data processing and information service if:
1624 (A) the data processing and information service allows data to be:
1625 (I) (Aa) acquired;
1626 (Bb) generated;
1627 (Cc) processed;
1628 (Dd) retrieved; or
1629 (Ee) stored; and
1630 (II) delivered by an electronic transmission to a purchaser; and
1631 (B) the purchaser's primary purpose for the underlying transaction is the processed data
1632 or information;
1633 (v) installation or maintenance of the following on a customer's premises:
1634 (A) equipment; or
1635 (B) wiring;
1636 (vi) Internet access service;
1637 (vii) a paging service;
1638 (viii) a product transferred electronically, including:
1639 (A) music;
1640 (B) reading material;
1641 (C) a ring tone;
1642 (D) software; or
1643 (E) video;
1644 (ix) a radio and television audio and video programming service:
1645 (A) regardless of the medium; and
1646 (B) including:
1647 (I) furnishing conveyance, routing, or transmission of a television audio and video
1648 programming service by a programming service provider;
1649 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1650 (III) audio and video programming services delivered by a commercial mobile radio
1651 service provider as defined in 47 C.F.R. Sec. 20.3;
1652 (x) a value-added nonvoice data service; or
1653 (xi) tangible personal property.
1654 [
1655 (i) owns, controls, operates, or manages a telecommunications service; and
1656 (ii) engages in an activity described in Subsection [
1657 with or resale to any person of the telecommunications service.
1658 (b) A person described in Subsection [
1659 provider whether or not the Public Service Commission of Utah regulates:
1660 (i) that person; or
1661 (ii) the telecommunications service that the person owns, controls, operates, or
1662 manages.
1663 [
1664 software" means an item listed in Subsection [
1665 leased primarily for switching or routing:
1666 (i) an ancillary service;
1667 (ii) data communications;
1668 (iii) voice communications; or
1669 (iv) telecommunications service.
1670 (b) The following apply to Subsection [
1671 (i) a bridge;
1672 (ii) a computer;
1673 (iii) a cross connect;
1674 (iv) a modem;
1675 (v) a multiplexer;
1676 (vi) plug in circuitry;
1677 (vii) a router;
1678 (viii) software;
1679 (ix) a switch; or
1680 (x) equipment, machinery, or software that functions similarly to an item listed in
1681 Subsections [
1682 accordance with Subsection [
1683 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1684 commission may by rule define what constitutes equipment, machinery, or software that
1685 functions similarly to an item listed in Subsections [
1686 [
1687 software" means an item listed in Subsection [
1688 leased primarily for sending, receiving, or transporting:
1689 (i) an ancillary service;
1690 (ii) data communications;
1691 (iii) voice communications; or
1692 (iv) telecommunications service.
1693 (b) The following apply to Subsection [
1694 (i) an amplifier;
1695 (ii) a cable;
1696 (iii) a closure;
1697 (iv) a conduit;
1698 (v) a controller;
1699 (vi) a duplexer;
1700 (vii) a filter;
1701 (viii) an input device;
1702 (ix) an input/output device;
1703 (x) an insulator;
1704 (xi) microwave machinery or equipment;
1705 (xii) an oscillator;
1706 (xiii) an output device;
1707 (xiv) a pedestal;
1708 (xv) a power converter;
1709 (xvi) a power supply;
1710 (xvii) a radio channel;
1711 (xviii) a radio receiver;
1712 (xix) a radio transmitter;
1713 (xx) a repeater;
1714 (xxi) software;
1715 (xxii) a terminal;
1716 (xxiii) a timing unit;
1717 (xxiv) a transformer;
1718 (xxv) a wire; or
1719 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1720 Subsections [
1721 accordance with Subsection [
1722 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1723 commission may by rule define what constitutes equipment, machinery, or software that
1724 functions similarly to an item listed in Subsections [
1725 [
1726 printed material that is required for a course:
1727 (i) offered by an institution of higher education; and
1728 (ii) that the purchaser of the textbook or other printed material attends or will attend.
1729 (b) "Textbook for a higher education course" includes a textbook in electronic format.
1730 [
1731 (a) a cigarette;
1732 (b) a cigar;
1733 (c) chewing tobacco;
1734 (d) pipe tobacco; or
1735 (e) any other item that contains tobacco.
1736 [
1737 device, or ride device that is started and stopped by the purchaser or renter of the right to use or
1738 operate the amusement device, skill device, or ride device.
1739 [
1740 property, a product transferred electronically, or a service under Subsection 59-12-103(1),
1741 incident to the ownership or the leasing of that tangible personal property, product transferred
1742 electronically, or service.
1743 (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1744 property, a product transferred electronically, or a service in the regular course of business and
1745 held for resale.
1746 [
1747 (a) that otherwise meets the definition of a telecommunications service except that a
1748 computer processing application is used to act primarily for a purpose other than conveyance,
1749 routing, or transmission; and
1750 (b) with respect to which a computer processing application is used to act on data or
1751 information:
1752 (i) code;
1753 (ii) content;
1754 (iii) form; or
1755 (iv) protocol.
1756 [
1757 that are required to be titled, registered, or titled and registered:
1758 (i) an aircraft as defined in Section 72-10-102;
1759 (ii) a vehicle as defined in Section 41-1a-102;
1760 (iii) an off-highway vehicle as defined in Section 41-22-2; or
1761 (iv) a vessel as defined in Section 41-1a-102.
1762 (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
1763 (i) a vehicle described in Subsection [
1764 (ii) (A) a locomotive;
1765 (B) a freight car;
1766 (C) railroad work equipment; or
1767 (D) other railroad rolling stock.
1768 [
1769 selling, or exchanging a vehicle as defined in Subsection [
1770 [
1771 (i) is offered in connection with one or more telecommunications services; and
1772 (ii) offers an advanced calling feature that allows a customer to:
1773 (A) identify a caller; and
1774 (B) manage multiple calls and call connections.
1775 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1776 conference bridging service.
1777 [
1778 customer to receive, send, or store a recorded message.
1779 (b) "Voice mail service" does not include a vertical service that a customer is required
1780 to have in order to utilize a voice mail service.
1781 [
1782 facility" means a facility that generates electricity:
1783 (i) using as the primary source of energy waste materials that would be placed in a
1784 landfill or refuse pit if it were not used to generate electricity, including:
1785 (A) tires;
1786 (B) waste coal;
1787 (C) oil shale; or
1788 (D) municipal solid waste; and
1789 (ii) in amounts greater than actually required for the operation of the facility.
1790 (b) "Waste energy facility" does not include a facility that incinerates:
1791 (i) hospital waste as defined in 40 C.F.R. 60.51c; or
1792 (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1793 [
1794 [
1795 electricity.
1796 [
1797 geographic location by the United States Postal Service.
1798 Section 5. Section 59-12-103 is amended to read:
1799 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
1800 tax revenues.
1801 (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
1802 sales price for amounts paid or charged for the following transactions:
1803 (a) retail sales of tangible personal property made within the state;
1804 (b) amounts paid for:
1805 (i) telecommunications service, other than mobile telecommunications service, that
1806 originates and terminates within the boundaries of this state;
1807 (ii) mobile telecommunications service that originates and terminates within the
1808 boundaries of one state only to the extent permitted by the Mobile Telecommunications
1809 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
1810 (iii) an ancillary service associated with a:
1811 (A) telecommunications service described in Subsection (1)(b)(i); or
1812 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
1813 (c) sales of the following for commercial use:
1814 (i) gas;
1815 (ii) electricity;
1816 (iii) heat;
1817 (iv) coal;
1818 (v) fuel oil; or
1819 (vi) other fuels;
1820 (d) sales of the following for residential use:
1821 (i) gas;
1822 (ii) electricity;
1823 (iii) heat;
1824 (iv) coal;
1825 (v) fuel oil; or
1826 (vi) other fuels;
1827 (e) sales of prepared food;
1828 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
1829 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
1830 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
1831 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
1832 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
1833 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
1834 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
1835 horseback rides, sports activities, or any other amusement, entertainment, recreation,
1836 exhibition, cultural, or athletic activity;
1837 (g) amounts paid or charged for services for repairs or renovations of tangible personal
1838 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
1839 (i) the tangible personal property; and
1840 (ii) parts used in the repairs or renovations of the tangible personal property described
1841 in Subsection (1)(g)(i), regardless of whether:
1842 (A) any parts are actually used in the repairs or renovations of that tangible personal
1843 property; or
1844 (B) the particular parts used in the repairs or renovations of that tangible personal
1845 property are exempt from a tax under this chapter;
1846 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
1847 assisted cleaning or washing of tangible personal property;
1848 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
1849 accommodations and services that are regularly rented for less than 30 consecutive days;
1850 (j) amounts paid or charged for laundry or dry cleaning services;
1851 (k) amounts paid or charged for leases or rentals of tangible personal property if within
1852 this state the tangible personal property is:
1853 (i) stored;
1854 (ii) used; or
1855 (iii) otherwise consumed;
1856 (l) amounts paid or charged for tangible personal property if within this state the
1857 tangible personal property is:
1858 (i) stored;
1859 (ii) used; or
1860 (iii) consumed; and
1861 (m) amounts paid or charged for a sale:
1862 (i) (A) of a product transferred electronically; or
1863 (B) of a repair or renovation of a product transferred electronically; and
1864 (ii) regardless of whether the sale provides:
1865 (A) a right of permanent use of the product; or
1866 (B) a right to use the product that is less than a permanent use, including a right:
1867 (I) for a definite or specified length of time; and
1868 (II) that terminates upon the occurrence of a condition.
1869 (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
1870 are imposed on a transaction described in Subsection (1) equal to the sum of:
1871 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
1872 [
1873 [
1874 (A) 4.71% plus the rate specified in Subsection [
1875 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
1876 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
1877 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
1878 State Sales and Use Tax Act; and
1879 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
1880 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
1881 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
1882 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
1883 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1884 transaction under this chapter other than this part.
1885 (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax are
1886 imposed on a transaction described in Subsection (1)(d) equal to the sum of:
1887 (i) a state tax imposed on the transaction at a tax rate of 2%; and
1888 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1889 transaction under this chapter other than this part.
1890 (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax are
1891 imposed on amounts paid or charged for food and food ingredients equal to the sum of:
1892 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
1893 a tax rate of 1.75%; and
1894 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1895 amounts paid or charged for food and food ingredients under this chapter other than this part.
1896 (d) (i) For a bundled transaction that is attributable to food and food ingredients and
1897 tangible personal property other than food and food ingredients, a state tax and a local tax is
1898 imposed on the entire bundled transaction equal to the sum of:
1899 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
1900 (I) the tax rate described in Subsection (2)(a)(i)(A); and
1901 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
1902 Sales and Use Tax Act, if the location of the transaction as determined under Sections
1903 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
1904 Additional State Sales and Use Tax Act; and
1905 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
1906 Sales and Use Tax Act, if the location of the transaction as determined under Sections
1907 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
1908 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
1909 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
1910 described in Subsection (2)(a)(ii).
1911 (ii) If an optional computer software maintenance contract is a bundled transaction that
1912 consists of taxable and nontaxable products that are not separately itemized on an invoice or
1913 similar billing document, the purchase of the optional computer software maintenance contract
1914 is 40% taxable under this chapter and 60% nontaxable under this chapter.
1915 (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
1916 transaction described in Subsection (2)(d)(i) or (ii):
1917 (A) if the sales price of the bundled transaction is attributable to tangible personal
1918 property, a product, or a service that is subject to taxation under this chapter and tangible
1919 personal property, a product, or service that is not subject to taxation under this chapter, the
1920 entire bundled transaction is subject to taxation under this chapter unless:
1921 (I) the seller is able to identify by reasonable and verifiable standards the tangible
1922 personal property, product, or service that is not subject to taxation under this chapter from the
1923 books and records the seller keeps in the seller's regular course of business; or
1924 (II) state or federal law provides otherwise; or
1925 (B) if the sales price of a bundled transaction is attributable to two or more items of
1926 tangible personal property, products, or services that are subject to taxation under this chapter
1927 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
1928 higher tax rate unless:
1929 (I) the seller is able to identify by reasonable and verifiable standards the tangible
1930 personal property, product, or service that is subject to taxation under this chapter at the lower
1931 tax rate from the books and records the seller keeps in the seller's regular course of business; or
1932 (II) state or federal law provides otherwise.
1933 (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
1934 seller's regular course of business includes books and records the seller keeps in the regular
1935 course of business for nontax purposes.
1936 (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
1937 and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
1938 product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
1939 of tangible personal property, other property, a product, or a service that is not subject to
1940 taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
1941 the seller, at the time of the transaction:
1942 (A) separately states the portion of the transaction that is not subject to taxation under
1943 this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
1944 (B) is able to identify by reasonable and verifiable standards, from the books and
1945 records the seller keeps in the seller's regular course of business, the portion of the transaction
1946 that is not subject to taxation under this chapter.
1947 (ii) A purchaser and a seller may correct the taxability of a transaction if:
1948 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
1949 the transaction that is not subject to taxation under this chapter was not separately stated on an
1950 invoice, bill of sale, or similar document provided to the purchaser because of an error or
1951 ignorance of the law; and
1952 (B) the seller is able to identify by reasonable and verifiable standards, from the books
1953 and records the seller keeps in the seller's regular course of business, the portion of the
1954 transaction that is not subject to taxation under this chapter.
1955 (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
1956 in the seller's regular course of business includes books and records the seller keeps in the
1957 regular course of business for nontax purposes.
1958 (f) (i) If the sales price of a transaction is attributable to two or more items of tangible
1959 personal property, products, or services that are subject to taxation under this chapter at
1960 different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
1961 unless the seller, at the time of the transaction:
1962 (A) separately states the items subject to taxation under this chapter at each of the
1963 different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
1964 (B) is able to identify by reasonable and verifiable standards the tangible personal
1965 property, product, or service that is subject to taxation under this chapter at the lower tax rate
1966 from the books and records the seller keeps in the seller's regular course of business.
1967 (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
1968 seller's regular course of business includes books and records the seller keeps in the regular
1969 course of business for nontax purposes.
1970 (g) Subject to Subsections (2)(h) and (i), a tax rate repeal or tax rate change for a tax
1971 rate imposed under the following shall take effect on the first day of a calendar quarter:
1972 (i) Subsection (2)(a)(i)(A);
1973 (ii) Subsection (2)(b)(i);
1974 (iii) Subsection (2)(c)(i); or
1975 (iv) Subsection (2)(d)(i)(A)(I).
1976 (h) (i) A tax rate increase takes effect on the first day of the first billing period that
1977 begins on or after the effective date of the tax rate increase if the billing period for the
1978 transaction begins before the effective date of a tax rate increase imposed under:
1979 (A) Subsection (2)(a)(i)(A);
1980 (B) Subsection (2)(b)(i);
1981 (C) Subsection (2)(c)(i); or
1982 (D) Subsection (2)(d)(i)(A)(I).
1983 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
1984 statement for the billing period is rendered on or after the effective date of the repeal of the tax
1985 or the tax rate decrease imposed under:
1986 (A) Subsection (2)(a)(i)(A);
1987 (B) Subsection (2)(b)(i);
1988 (C) Subsection (2)(c)(i); or
1989 (D) Subsection (2)(d)(i)(A)(I).
1990 (i) (i) For a tax rate described in Subsection (2)(i)(ii), if a tax due on a catalogue sale is
1991 computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
1992 change in a tax rate takes effect:
1993 (A) on the first day of a calendar quarter; and
1994 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
1995 (ii) Subsection (2)(i)(i) applies to the tax rates described in the following:
1996 (A) Subsection (2)(a)(i)(A);
1997 (B) Subsection (2)(b)(i);
1998 (C) Subsection (2)(c)(i); or
1999 (D) Subsection (2)(d)(i)(A)(I).
2000 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2001 the commission may by rule define the term "catalogue sale."
2002 (3) (a) The following state taxes shall be deposited into the General Fund:
2003 (i) the tax imposed by Subsection (2)(a)(i)(A);
2004 (ii) the tax imposed by Subsection (2)(b)(i);
2005 (iii) the tax imposed by Subsection (2)(c)(i); or
2006 (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
2007 (b) The following local taxes shall be distributed to a county, city, or town as provided
2008 in this chapter:
2009 (i) the tax imposed by Subsection (2)(a)(ii);
2010 (ii) the tax imposed by Subsection (2)(b)(ii);
2011 (iii) the tax imposed by Subsection (2)(c)(ii); and
2012 (iv) the tax imposed by Subsection (2)(d)(i)(B).
2013 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2014 2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
2015 through (g):
2016 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
2017 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
2018 (B) for the fiscal year; or
2019 (ii) $17,500,000.
2020 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
2021 described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
2022 Department of Natural Resources to:
2023 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
2024 protect sensitive plant and animal species; or
2025 (B) award grants, up to the amount authorized by the Legislature in an appropriations
2026 act, to political subdivisions of the state to implement the measures described in Subsections
2027 79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
2028 (ii) Money transferred to the Department of Natural Resources under Subsection
2029 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
2030 person to list or attempt to have listed a species as threatened or endangered under the
2031 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
2032 (iii) At the end of each fiscal year:
2033 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
2034 Conservation and Development Fund created in Section 73-10-24;
2035 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
2036 Program Subaccount created in Section 73-10c-5; and
2037 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
2038 Program Subaccount created in Section 73-10c-5.
2039 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
2040 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
2041 created in Section 4-18-106.
2042 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
2043 in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
2044 Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
2045 water rights.
2046 (ii) At the end of each fiscal year:
2047 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
2048 Conservation and Development Fund created in Section 73-10-24;
2049 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
2050 Program Subaccount created in Section 73-10c-5; and
2051 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
2052 Program Subaccount created in Section 73-10c-5.
2053 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
2054 in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
2055 Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
2056 (ii) In addition to the uses allowed of the Water Resources Conservation and
2057 Development Fund under Section 73-10-24, the Water Resources Conservation and
2058 Development Fund may also be used to:
2059 (A) conduct hydrologic and geotechnical investigations by the Division of Water
2060 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
2061 quantifying surface and ground water resources and describing the hydrologic systems of an
2062 area in sufficient detail so as to enable local and state resource managers to plan for and
2063 accommodate growth in water use without jeopardizing the resource;
2064 (B) fund state required dam safety improvements; and
2065 (C) protect the state's interest in interstate water compact allocations, including the
2066 hiring of technical and legal staff.
2067 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2068 in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
2069 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
2070 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2071 in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
2072 created in Section 73-10c-5 for use by the Division of Drinking Water to:
2073 (i) provide for the installation and repair of collection, treatment, storage, and
2074 distribution facilities for any public water system, as defined in Section 19-4-102;
2075 (ii) develop underground sources of water, including springs and wells; and
2076 (iii) develop surface water sources.
2077 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2078 2006, the difference between the following amounts shall be expended as provided in this
2079 Subsection (5), if that difference is greater than $1:
2080 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
2081 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
2082 (ii) $17,500,000.
2083 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
2084 (A) transferred each fiscal year to the Department of Natural Resources as dedicated
2085 credits; and
2086 (B) expended by the Department of Natural Resources for watershed rehabilitation or
2087 restoration.
2088 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
2089 in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
2090 created in Section 73-10-24.
2091 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
2092 remaining difference described in Subsection (5)(a) shall be:
2093 (A) transferred each fiscal year to the Division of Water Resources as dedicated
2094 credits; and
2095 (B) expended by the Division of Water Resources for cloud-seeding projects
2096 authorized by Title 73, Chapter 15, Modification of Weather.
2097 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
2098 in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
2099 created in Section 73-10-24.
2100 (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
2101 remaining difference described in Subsection (5)(a) shall be deposited into the Water
2102 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
2103 Division of Water Resources for:
2104 (i) preconstruction costs:
2105 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
2106 26, Bear River Development Act; and
2107 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
2108 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
2109 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
2110 Chapter 26, Bear River Development Act;
2111 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
2112 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
2113 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
2114 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
2115 (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
2116 Subsection (5)(f), 15% of the remaining difference described in Subsection (5)(a) shall be
2117 transferred each year as dedicated credits to the Division of Water Rights to cover the costs
2118 incurred for employing additional technical staff for the administration of water rights.
2119 (f) At the end of each fiscal year, any unexpended dedicated credits described in
2120 Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
2121 Fund created in Section 73-10-24.
2122 (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
2123 amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
2124 (1) for the fiscal year shall be deposited as follows:
2125 (a) for fiscal year 2016-17 only, 100% of the revenue described in this Subsection (6)
2126 shall be deposited into the Transportation Investment Fund of 2005 created by Section
2127 72-2-124;
2128 (b) for fiscal year 2017-18 only:
2129 (i) 80% of the revenue described in this Subsection (6) shall be deposited into the
2130 Transportation Investment Fund of 2005 created by Section 72-2-124; and
2131 (ii) 20% of the revenue described in this Subsection (6) shall be deposited into the
2132 Water Infrastructure Restricted Account created by Section 73-10g-103;
2133 (c) for fiscal year 2018-19 only:
2134 (i) 60% of the revenue described in this Subsection (6) shall be deposited into the
2135 Transportation Investment Fund of 2005 created by Section 72-2-124; and
2136 (ii) 40% of the revenue described in this Subsection (6) shall be deposited into the
2137 Water Infrastructure Restricted Account created by Section 73-10g-103;
2138 (d) for fiscal year 2019-20 only:
2139 (i) 40% of the revenue described in this Subsection (6) shall be deposited into the
2140 Transportation Investment Fund of 2005 created by Section 72-2-124; and
2141 (ii) 60% of the revenue described in this Subsection (6) shall be deposited into the
2142 Water Infrastructure Restricted Account created by Section 73-10g-103;
2143 (e) for fiscal year 2020-21 only:
2144 (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
2145 Transportation Investment Fund of 2005 created by Section 72-2-124; and
2146 (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
2147 Water Infrastructure Restricted Account created by Section 73-10g-103; and
2148 (f) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
2149 in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
2150 created by Section 73-10g-103.
2151 (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
2152 Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
2153 2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
2154 created by Section 72-2-124:
2155 (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
2156 the [
2157 approximately 17% of sales and use tax [
2158 use tax on vehicles and vehicle-related products:
2159 (A) the tax imposed by Subsection (2)(a)(i)(A) at a [
2160 (B) the tax imposed by Subsection (2)(b)(i);
2161 (C) the tax imposed by Subsection (2)(c)(i); and
2162 (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
2163 (ii) an amount equal to 30% of the growth in the amount of [
2164 collected in the current fiscal year from the sales and use taxes described in Subsections
2165 (7)(a)(i)(A) through (D) that exceeds the amount collected from the sales and use taxes
2166 described in Subsections (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
2167 (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
2168 the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
2169 lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
2170 generated in the current fiscal year than the total percentage of sales and use taxes deposited in
2171 the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
2172 (7)(a) equal to the product of:
2173 (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
2174 previous fiscal year; and
2175 (B) the total sales and use tax revenue generated by the taxes described in Subsections
2176 (7)(a)(i)(A) through (D) in the current fiscal year.
2177 (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
2178 Subsection (7)(a) would exceed 17% of the [
2179 taxes described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division
2180 of Finance shall deposit 17% of the [
2181 described in Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection
2182 (7)(a).
2183 (iii) In all subsequent fiscal years after a year in which 17% of the [
2184 collected from the sales and use taxes described in Subsections (7)(a)(i)(A) through (D) was
2185 deposited under Subsection (7)(a), the Division of Finance shall annually deposit 17% of the
2186 [
2187 through (D) in the current fiscal year under Subsection (7)(a).
2188 (8) (a) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited
2189 under Subsections (6) and (7), for the 2016-17 fiscal year only, the Division of Finance shall
2190 deposit $64,000,000 of the [
2191 (3)(a) into the Transportation Investment Fund of 2005 created by Section 72-2-124.
2192 [
2193
2194
2195
2196 [
2197 under Subsections (6) and (7), and subject to Subsection (8)(c)(ii), for a fiscal year beginning
2198 on or after July 1, 2018, the commission shall [
2199 Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes
2200 listed under Subsection (3)(a) in an amount equal to 3.68% of the [
2201 from the following taxes:
2202 (A) the tax imposed by Subsection (2)(a)(i)(A) at a [
2203 (B) the tax imposed by Subsection (2)(b)(i);
2204 (C) the tax imposed by Subsection (2)(c)(i); and
2205 (D) the tax imposed by Subsection (2)(d)(i)(A)(I).
2206 (ii) For a fiscal year beginning on or after July 1, 2019, the commission shall [
2207 reduce annually the deposit into the Transportation Investment Fund of 2005 under Subsection
2208 (8)(c)(i) by an amount that is equal to 35% of the amount of revenue generated in the current
2209 fiscal year by the portion of the tax imposed on motor and special fuel that is sold, used, or
2210 received for sale or use in this state that exceeds 29.4 cents per gallon.
2211 (iii) The commission shall [
2212 Subsection (8)(c)(ii) into the Transit and Transportation Investment Fund created in Section
2213 72-2-124.
2214 (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2215 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
2216 created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
2217 (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c),
2218 in addition to any amounts deposited under Subsections (6), (7), and (8), and for the 2016-17
2219 fiscal year only, the Division of Finance shall deposit into the Transportation Investment Fund
2220 of 2005 created by Section 72-2-124 the amount of tax revenue generated by a .05% tax rate on
2221 the transactions described in Subsection (1).
2222 (b) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c), and in
2223 addition to any amounts deposited under Subsections (6), (7), and (8), the Division of Finance
2224 shall deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
2225 amount of revenue described as follows:
2226 (i) for fiscal year 2017-18 only, 83.33% of the amount of revenue generated by a .05%
2227 tax rate on the transactions described in Subsection (1);
2228 (ii) for fiscal year 2018-19 only, 66.67% of the amount of revenue generated by a .05%
2229 tax rate on the transactions described in Subsection (1);
2230 (iii) for fiscal year 2019-20 only, 50% of the amount of revenue generated by a .05%
2231 tax rate on the transactions described in Subsection (1);
2232 (iv) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a
2233 .05% tax rate on the transactions described in Subsection (1); and
2234 (v) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
2235 tax rate on the transactions described in Subsection (1).
2236 (c) For purposes of Subsections (10)(a) and (b), the Division of Finance may not
2237 deposit into the Transportation Investment Fund of 2005 any tax revenue generated by amounts
2238 paid or charged for food and food ingredients, except for tax revenue generated by a bundled
2239 transaction attributable to food and food ingredients and tangible personal property other than
2240 food and food ingredients described in Subsection (2)(d).
2241 (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
2242 fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
2243 construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
2244 Finance shall, for two consecutive fiscal years, [
2245 revenue generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation
2246 Fund, created in Section 63N-2-512.
2247 [
2248
2249
2250
2251 [
2252
2253
2254 [
2255 (b) Notwithstanding Subsection (3)(a), the Division of Finance shall[
2256
2257
2258
2259
2260 on or after July 1, 2019, [
2261 rate described in Subsection [
2262 use tax under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section
2263 26-36b-208.
2264 Section 6. Section 59-12-104 is amended to read:
2265 59-12-104. Exemptions.
2266 Exemptions from the taxes imposed by this chapter are as follows:
2267 (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
2268 under Chapter 13, Motor and Special Fuel Tax Act;
2269 (2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
2270 subdivisions; however, this exemption does not apply to sales of:
2271 (a) construction materials except:
2272 (i) construction materials purchased by or on behalf of institutions of the public
2273 education system as defined in Utah Constitution, Article X, Section 2, provided the
2274 construction materials are clearly identified and segregated and installed or converted to real
2275 property which is owned by institutions of the public education system; and
2276 (ii) construction materials purchased by the state, its institutions, or its political
2277 subdivisions which are installed or converted to real property by employees of the state, its
2278 institutions, or its political subdivisions; or
2279 (b) tangible personal property in connection with the construction, operation,
2280 maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or facilities
2281 providing additional project capacity, as defined in Section 11-13-103;
2282 (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
2283 (i) the proceeds of each sale do not exceed $1; and
2284 (ii) the seller or operator of the vending machine reports an amount equal to 150% of
2285 the cost of the item described in Subsection (3)(b) as goods consumed; and
2286 (b) Subsection (3)(a) applies to:
2287 (i) food and food ingredients; or
2288 (ii) prepared food;
2289 (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
2290 (i) alcoholic beverages;
2291 (ii) food and food ingredients; or
2292 (iii) prepared food;
2293 (b) sales of tangible personal property or a product transferred electronically:
2294 (i) to a passenger;
2295 (ii) by a commercial airline carrier; and
2296 (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
2297 (c) services related to Subsection (4)(a) or (b);
2298 [
2299
2300 [
2301
2302
2303 [
2304 [
2305
2306 [
2307 [
2308 [
2309
2310 [
2311
2312 [
2313
2314
2315 [
2316 [
2317 [
2318
2319 [
2320 [
2321 [
2322
2323 (5) sales of parts and equipment for installation in an aircraft operated by a common
2324 carrier in interstate or foreign commerce;
2325 (6) sales of commercials, motion picture films, prerecorded audio program tapes or
2326 records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
2327 exhibitor, distributor, or commercial television or radio broadcaster;
2328 (7) (a) except as provided in Subsection (85) and subject to Subsection (7)(b), sales of
2329 cleaning or washing of tangible personal property if the cleaning or washing of the tangible
2330 personal property is not assisted cleaning or washing of tangible personal property;
2331 (b) if a seller that sells at the same business location assisted cleaning or washing of
2332 tangible personal property and cleaning or washing of tangible personal property that is not
2333 assisted cleaning or washing of tangible personal property, the exemption described in
2334 Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
2335 or washing of the tangible personal property; and
2336 (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
2337 Utah Administrative Rulemaking Act, the commission may make rules:
2338 (i) governing the circumstances under which sales are at the same business location;
2339 and
2340 (ii) establishing the procedures and requirements for a seller to separately account for
2341 sales of assisted cleaning or washing of tangible personal property;
2342 (8) sales made to or by religious or charitable institutions in the conduct of their regular
2343 religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
2344 fulfilled;
2345 (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
2346 this state if the vehicle is:
2347 (a) not registered in this state; and
2348 (b) (i) not used in this state; or
2349 (ii) used in this state:
2350 (A) if the vehicle is not used to conduct business, for a time period that does not
2351 exceed the longer of:
2352 (I) 30 days in any calendar year; or
2353 (II) the time period necessary to transport the vehicle to the borders of this state; or
2354 (B) if the vehicle is used to conduct business, for the time period necessary to transport
2355 the vehicle to the borders of this state;
2356 (10) (a) amounts paid for [
2357 items:
2358 (i) a bed pad or bed liner that is marketed for human incontinence care;
2359 (ii) feminine hygiene products; or
2360 (iii) a diaper; or
2361 (b) amounts paid for a drug, syringe, or stoma supply if:
2362 (i) the item is intended for human use; and
2363 (ii) (A) a prescription was issued for the item; or
2364 (B) the item was purchased by a hospital or other medical facility; [
2365 [
2366 [
2367 [
2368 [
2369 [
2370
2371 [
2372 [
2373 (11) purchases or leases exempt under Section 19-12-201;
2374 (12) (a) sales of an item described in Subsection (12)(c) served by:
2375 (i) the following if the item described in Subsection (12)(c) is not available to the
2376 general public:
2377 (A) a church; or
2378 (B) a charitable institution; or
2379 (ii) an institution of higher education if:
2380 (A) the item described in Subsection (12)(c) is not available to the general public; or
2381 (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
2382 offered by the institution of higher education; or
2383 (b) sales of an item described in Subsection (12)(c) provided for a patient by:
2384 (i) a medical facility; or
2385 (ii) a nursing facility; and
2386 (c) Subsections (12)(a) and (b) apply to:
2387 (i) food and food ingredients;
2388 (ii) prepared food; or
2389 (iii) alcoholic beverages;
2390 (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
2391 or a product transferred electronically by a person:
2392 (i) regardless of the number of transactions involving the sale of that tangible personal
2393 property or product transferred electronically by that person; and
2394 (ii) not regularly engaged in the business of selling that type of tangible personal
2395 property or product transferred electronically;
2396 (b) this Subsection (13) does not apply if:
2397 (i) the sale is one of a series of sales of a character to indicate that the person is
2398 regularly engaged in the business of selling that type of tangible personal property or product
2399 transferred electronically;
2400 (ii) the person holds that person out as regularly engaged in the business of selling that
2401 type of tangible personal property or product transferred electronically;
2402 (iii) the person sells an item of tangible personal property or product transferred
2403 electronically that the person purchased as a sale that is exempt under Subsection (25); or
2404 (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
2405 this state in which case the tax is based upon:
2406 (A) the bill of sale or other written evidence of value of the vehicle or vessel being
2407 sold; or
2408 (B) in the absence of a bill of sale or other written evidence of value, the fair market
2409 value of the vehicle or vessel being sold at the time of the sale as determined by the
2410 commission; and
2411 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2412 commission shall make rules establishing the circumstances under which:
2413 (i) a person is regularly engaged in the business of selling a type of tangible personal
2414 property or product transferred electronically;
2415 (ii) a sale of tangible personal property or a product transferred electronically is one of
2416 a series of sales of a character to indicate that a person is regularly engaged in the business of
2417 selling that type of tangible personal property or product transferred electronically; or
2418 (iii) a person holds that person out as regularly engaged in the business of selling a type
2419 of tangible personal property or product transferred electronically;
2420 (14) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2421 operating repair or replacement parts, or materials, except for office equipment or office
2422 supplies, by:
2423 (a) a manufacturing facility that:
2424 (i) is located in the state; and
2425 (ii) uses or consumes the machinery, equipment, normal operating repair or
2426 replacement parts, or materials:
2427 (A) in the manufacturing process to manufacture an item sold as tangible personal
2428 property, as the commission may define that phrase in accordance with Title 63G, Chapter 3,
2429 Utah Administrative Rulemaking Act; or
2430 (B) for a scrap recycler, to process an item sold as tangible personal property, as the
2431 commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
2432 Administrative Rulemaking Act;
2433 (b) an establishment, as the commission defines that term in accordance with Title
2434 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
2435 (i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
2436 Code 213113, Support Activities for Coal Mining, 213114, Support Activities for Metal
2437 Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining, of the
2438 2002 North American Industry Classification System of the federal Executive Office of the
2439 President, Office of Management and Budget;
2440 (ii) is located in the state; and
2441 (iii) uses or consumes the machinery, equipment, normal operating repair or
2442 replacement parts, or materials in:
2443 (A) the production process to produce an item sold as tangible personal property, as the
2444 commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
2445 Administrative Rulemaking Act;
2446 (B) research and development, as the commission may define that phrase in accordance
2447 with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
2448 (C) transporting, storing, or managing tailings, overburden, or similar waste materials
2449 produced from mining;
2450 (D) developing or maintaining a road, tunnel, excavation, or similar feature used in
2451 mining; or
2452 (E) preventing, controlling, or reducing dust or other pollutants from mining; or
2453 (c) an establishment, as the commission defines that term in accordance with Title 63G,
2454 Chapter 3, Utah Administrative Rulemaking Act, that:
2455 (i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North
2456 American Industry Classification System of the federal Executive Office of the President,
2457 Office of Management and Budget;
2458 (ii) is located in the state; and
2459 (iii) uses or consumes the machinery, equipment, normal operating repair or
2460 replacement parts, or materials in the operation of the web search portal;
2461 (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
2462 (i) tooling;
2463 (ii) special tooling;
2464 (iii) support equipment;
2465 (iv) special test equipment; or
2466 (v) parts used in the repairs or renovations of tooling or equipment described in
2467 Subsections (15)(a)(i) through (iv); and
2468 (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
2469 (i) the tooling, equipment, or parts are used or consumed exclusively in the
2470 performance of any aerospace or electronics industry contract with the United States
2471 government or any subcontract under that contract; and
2472 (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
2473 title to the tooling, equipment, or parts is vested in the United States government as evidenced
2474 by:
2475 (A) a government identification tag placed on the tooling, equipment, or parts; or
2476 (B) listing on a government-approved property record if placing a government
2477 identification tag on the tooling, equipment, or parts is impractical;
2478 (16) sales of newspapers or newspaper subscriptions;
2479 (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
2480 product transferred electronically traded in as full or part payment of the purchase price, except
2481 that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
2482 trade-ins are limited to other vehicles only, and the tax is based upon:
2483 (i) the bill of sale or other written evidence of value of the vehicle being sold and the
2484 vehicle being traded in; or
2485 (ii) in the absence of a bill of sale or other written evidence of value, the then existing
2486 fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
2487 commission; and
2488 (b) Subsection (17)(a) does not apply to the following items of tangible personal
2489 property or products transferred electronically traded in as full or part payment of the purchase
2490 price:
2491 (i) money;
2492 (ii) electricity;
2493 (iii) water;
2494 (iv) gas; or
2495 (v) steam;
2496 (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
2497 or a product transferred electronically used or consumed primarily and directly in farming
2498 operations, regardless of whether the tangible personal property or product transferred
2499 electronically:
2500 (A) becomes part of real estate; or
2501 (B) is installed by a[
2502 [
2503 [
2504 [
2505 (ii) sales of parts used in the repairs or renovations of tangible personal property or a
2506 product transferred electronically if the tangible personal property or product transferred
2507 electronically is exempt under Subsection (18)(a)(i); and
2508 (b) amounts paid or charged for the following are subject to the taxes imposed by this
2509 chapter:
2510 (i) (A) subject to Subsection (18)(b)(i)(B), machinery, equipment, materials, or
2511 supplies if used in a manner that is incidental to farming; and
2512 (B) tangible personal property that is considered to be used in a manner that is
2513 incidental to farming includes:
2514 (I) hand tools; or
2515 (II) maintenance and janitorial equipment and supplies;
2516 (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
2517 transferred electronically if the tangible personal property or product transferred electronically
2518 is used in an activity other than farming; and
2519 (B) tangible personal property or a product transferred electronically that is considered
2520 to be used in an activity other than farming includes:
2521 (I) office equipment and supplies; or
2522 (II) equipment and supplies used in:
2523 (Aa) the sale or distribution of farm products;
2524 (Bb) research; or
2525 (Cc) transportation; or
2526 (iii) a vehicle required to be registered by the laws of this state during the period
2527 ending two years after the date of the vehicle's purchase;
2528 (19) sales of hay;
2529 (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
2530 garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
2531 garden, farm, or other agricultural produce is sold by:
2532 (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
2533 agricultural produce;
2534 (b) an employee of the producer described in Subsection (20)(a); or
2535 (c) a member of the immediate family of the producer described in Subsection (20)(a);
2536 (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
2537 under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
2538 (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
2539 nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
2540 wholesaler, or retailer for use in packaging tangible personal property to be sold by that
2541 manufacturer, processor, wholesaler, or retailer;
2542 (23) a product stored in the state for resale;
2543 (24) (a) purchases of a product if:
2544 (i) the product is:
2545 (A) purchased outside of this state;
2546 (B) brought into this state:
2547 (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
2548 (II) by a nonresident person who is not living or working in this state at the time of the
2549 purchase;
2550 (C) used for the personal use or enjoyment of the nonresident person described in
2551 Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
2552 (D) not used in conducting business in this state; and
2553 (ii) for:
2554 (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
2555 the product for a purpose for which the product is designed occurs outside of this state;
2556 (B) a boat, the boat is registered outside of this state; or
2557 (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
2558 outside of this state;
2559 (b) the exemption provided for in Subsection (24)(a) does not apply to:
2560 (i) a lease or rental of a product; or
2561 (ii) a sale of a vehicle exempt under Subsection (33); and
2562 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
2563 purposes of Subsection (24)(a), the commission may by rule define what constitutes the
2564 following:
2565 (i) conducting business in this state if that phrase has the same meaning in this
2566 Subsection (24) as in Subsection (63);
2567 (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
2568 as in Subsection (63); or
2569 (iii) a purpose for which a product is designed if that phrase has the same meaning in
2570 this Subsection (24) as in Subsection (63);
2571 (25) a product purchased for resale in the regular course of business, either in its
2572 original form or as an ingredient or component part of a manufactured or compounded product;
2573 (26) a product upon which a sales or use tax was paid to some other state, or one of its
2574 subdivisions, except that the state shall be paid any difference between the tax paid and the tax
2575 imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
2576 the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
2577 Act;
2578 (27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a
2579 person for use in compounding a service taxable under the subsections;
2580 (28) purchases made in accordance with the special supplemental nutrition program for
2581 women, infants, and children established in 42 U.S.C. Sec. 1786;
2582 (29) sales or leases of rolls, rollers, refractory brick, electric motors, or other
2583 replacement parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code
2584 3312 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of
2585 the President, Office of Management and Budget;
2586 (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
2587 Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
2588 (a) not registered in this state; and
2589 (b) (i) not used in this state; or
2590 (ii) used in this state:
2591 (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
2592 time period that does not exceed the longer of:
2593 (I) 30 days in any calendar year; or
2594 (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
2595 the borders of this state; or
2596 (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
2597 period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
2598 state;
2599 (31) sales of aircraft manufactured in Utah;
2600 (32) amounts paid for the purchase of telecommunications service for purposes of
2601 providing telecommunications service;
2602 (33) sales, leases, or uses of the following:
2603 (a) a vehicle by an authorized carrier; or
2604 (b) tangible personal property that is installed on a vehicle:
2605 (i) sold or leased to or used by an authorized carrier; and
2606 (ii) before the vehicle is placed in service for the first time;
2607 (34) (a) 45% of the sales price of any new manufactured home; and
2608 (b) 100% of the sales price of any used manufactured home;
2609 (35) sales relating to schools and fundraising sales;
2610 (36) sales or rentals of durable medical equipment if:
2611 (a) a person presents a prescription for the durable medical equipment; and
2612 (b) the durable medical equipment is used for home use only;
2613 (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
2614 Section 72-11-102; and
2615 (b) the commission shall by rule determine the method for calculating sales exempt
2616 under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
2617 (38) sales to a ski resort of:
2618 (a) snowmaking equipment;
2619 (b) ski slope grooming equipment;
2620 (c) passenger ropeways as defined in Section 72-11-102; or
2621 (d) parts used in the repairs or renovations of equipment or passenger ropeways
2622 described in Subsections (38)(a) through (c);
2623 (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
2624 (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
2625 amusement, entertainment, or recreation an unassisted amusement device as defined in Section
2626 59-12-102;
2627 (b) if a seller that sells or rents at the same business location the right to use or operate
2628 for amusement, entertainment, or recreation one or more unassisted amusement devices and
2629 one or more assisted amusement devices, the exemption described in Subsection (40)(a)
2630 applies if the seller separately accounts for the sales or rentals of the right to use or operate for
2631 amusement, entertainment, or recreation for the assisted amusement devices; and
2632 (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
2633 Utah Administrative Rulemaking Act, the commission may make rules:
2634 (i) governing the circumstances under which sales are at the same business location;
2635 and
2636 (ii) establishing the procedures and requirements for a seller to separately account for
2637 the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
2638 assisted amusement devices;
2639 (41) (a) sales of photocopies by:
2640 (i) a governmental entity; or
2641 (ii) an entity within the state system of public education, including:
2642 (A) a school; or
2643 (B) the State Board of Education; or
2644 (b) sales of publications by a governmental entity;
2645 (42) amounts paid for admission to an athletic event at an institution of higher
2646 education that is subject to the provisions of Title IX of the Education Amendments of 1972,
2647 20 U.S.C. Sec. 1681 et seq.;
2648 (43) (a) sales made to or by:
2649 (i) an area agency on aging; or
2650 (ii) a senior citizen center owned by a county, city, or town; or
2651 (b) sales made by a senior citizen center that contracts with an area agency on aging;
2652 (44) sales or leases of semiconductor fabricating, processing, research, or development
2653 materials regardless of whether the semiconductor fabricating, processing, research, or
2654 development materials:
2655 (a) actually come into contact with a semiconductor; or
2656 (b) ultimately become incorporated into real property;
2657 (45) an amount paid by or charged to a purchaser for accommodations and services
2658 described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under Section
2659 59-12-104.2;
2660 (46) [
2661 sports event registration certificate in accordance with Section 41-3-306 for the event period
2662 specified on the temporary sports event registration certificate;
2663 (47) (a) sales or uses of electricity, if the sales or uses are made under a retail tariff
2664 adopted by the Public Service Commission only for purchase of electricity produced from a
2665 new alternative energy source built after January 1, 2016, as designated in the tariff by the
2666 Public Service Commission; and
2667 (b) for a residential use customer only, the exemption under Subsection (47)(a) applies
2668 only to the portion of the tariff rate a customer pays under the tariff described in Subsection
2669 (47)(a) that exceeds the tariff rate under the tariff described in Subsection (47)(a) that the
2670 customer would have paid absent the tariff;
2671 (48) sales or rentals of mobility enhancing equipment if a person presents a
2672 prescription for the mobility enhancing equipment;
2673 (49) sales of water in a:
2674 (a) pipe;
2675 (b) conduit;
2676 (c) ditch; or
2677 (d) reservoir;
2678 (50) sales of currency or coins that constitute legal tender of a state, the United States,
2679 or a foreign nation;
2680 (51) (a) sales of an item described in Subsection (51)(b) if the item:
2681 (i) does not constitute legal tender of a state, the United States, or a foreign nation; and
2682 (ii) has a gold, silver, or platinum content of 50% or more; and
2683 (b) Subsection (51)(a) applies to a gold, silver, or platinum:
2684 (i) ingot;
2685 (ii) bar;
2686 (iii) medallion; or
2687 (iv) decorative coin;
2688 (52) amounts paid on a sale-leaseback transaction;
2689 (53) sales of a prosthetic device:
2690 (a) for use on or in a human; and
2691 (b) (i) for which a prescription is required; or
2692 (ii) if the prosthetic device is purchased by a hospital or other medical facility;
2693 (54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
2694 machinery or equipment by an establishment described in Subsection (54)(c) if the machinery
2695 or equipment is primarily used in the production or postproduction of the following media for
2696 commercial distribution:
2697 (i) a motion picture;
2698 (ii) a television program;
2699 (iii) a movie made for television;
2700 (iv) a music video;
2701 (v) a commercial;
2702 (vi) a documentary; or
2703 (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
2704 commission by administrative rule made in accordance with Subsection (54)(d); or
2705 (b) purchases, leases, or rentals of machinery or equipment by an establishment
2706 described in Subsection (54)(c) that is used for the production or postproduction of the
2707 following are subject to the taxes imposed by this chapter:
2708 (i) a live musical performance;
2709 (ii) a live news program; or
2710 (iii) a live sporting event;
2711 (c) the following establishments listed in the 1997 North American Industry
2712 Classification System of the federal Executive Office of the President, Office of Management
2713 and Budget, apply to Subsections (54)(a) and (b):
2714 (i) NAICS Code 512110; or
2715 (ii) NAICS Code 51219; and
2716 (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2717 commission may by rule:
2718 (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
2719 or
2720 (ii) define:
2721 (A) "commercial distribution";
2722 (B) "live musical performance";
2723 (C) "live news program"; or
2724 (D) "live sporting event";
2725 (55) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
2726 on or before June 30, 2027, of tangible personal property that:
2727 (i) is leased or purchased for or by a facility that:
2728 (A) is an alternative energy electricity production facility;
2729 (B) is located in the state; and
2730 (C) (I) becomes operational on or after July 1, 2004; or
2731 (II) has its generation capacity increased by one or more megawatts on or after July 1,
2732 2004, as a result of the use of the tangible personal property;
2733 (ii) has an economic life of five or more years; and
2734 (iii) is used to make the facility or the increase in capacity of the facility described in
2735 Subsection (55)(a)(i) operational up to the point of interconnection with an existing
2736 transmission grid including:
2737 (A) a wind turbine;
2738 (B) generating equipment;
2739 (C) a control and monitoring system;
2740 (D) a power line;
2741 (E) substation equipment;
2742 (F) lighting;
2743 (G) fencing;
2744 (H) pipes; or
2745 (I) other equipment used for locating a power line or pole; and
2746 (b) this Subsection (55) does not apply to:
2747 (i) tangible personal property used in construction of:
2748 (A) a new alternative energy electricity production facility; or
2749 (B) the increase in the capacity of an alternative energy electricity production facility;
2750 (ii) contracted services required for construction and routine maintenance activities;
2751 and
2752 (iii) unless the tangible personal property is used or acquired for an increase in capacity
2753 of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal property used or
2754 acquired after:
2755 (A) the alternative energy electricity production facility described in Subsection
2756 (55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
2757 (B) the increased capacity described in Subsection (55)(a)(i) is operational as described
2758 in Subsection (55)(a)(iii);
2759 (56) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
2760 on or before June 30, 2027, of tangible personal property that:
2761 (i) is leased or purchased for or by a facility that:
2762 (A) is a waste energy production facility;
2763 (B) is located in the state; and
2764 (C) (I) becomes operational on or after July 1, 2004; or
2765 (II) has its generation capacity increased by one or more megawatts on or after July 1,
2766 2004, as a result of the use of the tangible personal property;
2767 (ii) has an economic life of five or more years; and
2768 (iii) is used to make the facility or the increase in capacity of the facility described in
2769 Subsection (56)(a)(i) operational up to the point of interconnection with an existing
2770 transmission grid including:
2771 (A) generating equipment;
2772 (B) a control and monitoring system;
2773 (C) a power line;
2774 (D) substation equipment;
2775 (E) lighting;
2776 (F) fencing;
2777 (G) pipes; or
2778 (H) other equipment used for locating a power line or pole; and
2779 (b) this Subsection (56) does not apply to:
2780 (i) tangible personal property used in construction of:
2781 (A) a new waste energy facility; or
2782 (B) the increase in the capacity of a waste energy facility;
2783 (ii) contracted services required for construction and routine maintenance activities;
2784 and
2785 (iii) unless the tangible personal property is used or acquired for an increase in capacity
2786 described in Subsection (56)(a)(i)(C)(II), tangible personal property used or acquired after:
2787 (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
2788 described in Subsection (56)(a)(iii); or
2789 (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
2790 in Subsection (56)(a)(iii);
2791 (57) (a) leases of five or more years or purchases made on or after July 1, 2004, but on
2792 or before June 30, 2027, of tangible personal property that:
2793 (i) is leased or purchased for or by a facility that:
2794 (A) is located in the state;
2795 (B) produces fuel from alternative energy, including:
2796 (I) methanol; or
2797 (II) ethanol; and
2798 (C) (I) becomes operational on or after July 1, 2004; or
2799 (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as
2800 a result of the installation of the tangible personal property;
2801 (ii) has an economic life of five or more years; and
2802 (iii) is installed on the facility described in Subsection (57)(a)(i);
2803 (b) this Subsection (57) does not apply to:
2804 (i) tangible personal property used in construction of:
2805 (A) a new facility described in Subsection (57)(a)(i); or
2806 (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
2807 (ii) contracted services required for construction and routine maintenance activities;
2808 and
2809 (iii) unless the tangible personal property is used or acquired for an increase in capacity
2810 described in Subsection (57)(a)(i)(C)(II), tangible personal property used or acquired after:
2811 (A) the facility described in Subsection (57)(a)(i) is operational; or
2812 (B) the increased capacity described in Subsection (57)(a)(i) is operational;
2813 (58) (a) subject to Subsection (58)(b) [
2814 product transferred electronically to a person within this state if that tangible personal property
2815 or product transferred electronically is subsequently shipped outside the state and incorporated
2816 pursuant to contract into and becomes a part of real property located outside of this state; and
2817 (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
2818 state or political entity to which the tangible personal property is shipped imposes a sales, use,
2819 gross receipts, or other similar transaction excise tax on the transaction against which the other
2820 state or political entity allows a credit for sales and use taxes imposed by this chapter; [
2821 [
2822
2823
2824 [
2825 [
2826
2827 [
2828
2829 [
2830 [
2831 [
2832
2833 (59) purchases:
2834 (a) of one or more of the following items in printed or electronic format:
2835 (i) a list containing information that includes one or more:
2836 (A) names; or
2837 (B) addresses; or
2838 (ii) a database containing information that includes one or more:
2839 (A) names; or
2840 (B) addresses; and
2841 (b) used to send direct mail;
2842 (60) redemptions or repurchases of a product by a person if that product was:
2843 (a) delivered to a pawnbroker as part of a pawn transaction; and
2844 (b) redeemed or repurchased within the time period established in a written agreement
2845 between the person and the pawnbroker for redeeming or repurchasing the product;
2846 (61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
2847 (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
2848 and
2849 (ii) has a useful economic life of one or more years; and
2850 (b) the following apply to Subsection (61)(a):
2851 (i) telecommunications enabling or facilitating equipment, machinery, or software;
2852 (ii) telecommunications equipment, machinery, or software required for 911 service;
2853 (iii) telecommunications maintenance or repair equipment, machinery, or software;
2854 (iv) telecommunications switching or routing equipment, machinery, or software; or
2855 (v) telecommunications transmission equipment, machinery, or software;
2856 (62) (a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
2857 personal property or a product transferred electronically that are used in the research and
2858 development of alternative energy technology; and
2859 (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2860 commission may, for purposes of Subsection (62)(a), make rules defining what constitutes
2861 purchases of tangible personal property or a product transferred electronically that are used in
2862 the research and development of alternative energy technology;
2863 (63) (a) purchases of tangible personal property or a product transferred electronically
2864 if:
2865 (i) the tangible personal property or product transferred electronically is:
2866 (A) purchased outside of this state;
2867 (B) brought into this state at any time after the purchase described in Subsection
2868 (63)(a)(i)(A); and
2869 (C) used in conducting business in this state; and
2870 (ii) for:
2871 (A) tangible personal property or a product transferred electronically other than the
2872 tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property
2873 for a purpose for which the property is designed occurs outside of this state; or
2874 (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
2875 outside of this state;
2876 (b) the exemption provided for in Subsection (63)(a) does not apply to:
2877 (i) a lease or rental of tangible personal property or a product transferred electronically;
2878 or
2879 (ii) a sale of a vehicle exempt under Subsection (33); and
2880 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
2881 purposes of Subsection (63)(a), the commission may by rule define what constitutes the
2882 following:
2883 (i) conducting business in this state if that phrase has the same meaning in this
2884 Subsection (63) as in Subsection (24);
2885 (ii) the first use of tangible personal property or a product transferred electronically if
2886 that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
2887 (iii) a purpose for which tangible personal property or a product transferred
2888 electronically is designed if that phrase has the same meaning in this Subsection (63) as in
2889 Subsection (24);
2890 (64) sales of disposable home medical equipment or supplies if:
2891 (a) a person presents a prescription for the disposable home medical equipment or
2892 supplies;
2893 (b) the disposable home medical equipment or supplies are used exclusively by the
2894 person to whom the prescription described in Subsection (64)(a) is issued; and
2895 (c) the disposable home medical equipment and supplies are listed as eligible for
2896 payment under:
2897 (i) Title XVIII, federal Social Security Act; or
2898 (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
2899 (65) sales:
2900 (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
2901 District Act; or
2902 (b) of tangible personal property to a subcontractor of a public transit district, if the
2903 tangible personal property is:
2904 (i) clearly identified; and
2905 (ii) installed or converted to real property owned by the public transit district;
2906 (66) sales of construction materials:
2907 (a) purchased on or after July 1, 2010;
2908 (b) purchased by, on behalf of, or for the benefit of an international airport:
2909 (i) located within a county of the first class; and
2910 (ii) that has a United States customs office on its premises; and
2911 (c) if the construction materials are:
2912 (i) clearly identified;
2913 (ii) segregated; and
2914 (iii) installed or converted to real property:
2915 (A) owned or operated by the international airport described in Subsection (66)(b); and
2916 (B) located at the international airport described in Subsection (66)(b);
2917 (67) sales of construction materials:
2918 (a) purchased on or after July 1, 2008;
2919 (b) purchased by, on behalf of, or for the benefit of a new airport:
2920 (i) located within a county of the second class; and
2921 (ii) that is owned or operated by a city in which an airline as defined in Section
2922 59-2-102 is headquartered; and
2923 (c) if the construction materials are:
2924 (i) clearly identified;
2925 (ii) segregated; and
2926 (iii) installed or converted to real property:
2927 (A) owned or operated by the new airport described in Subsection (67)(b);
2928 (B) located at the new airport described in Subsection (67)(b); and
2929 (C) as part of the construction of the new airport described in Subsection (67)(b);
2930 (68) sales of fuel to a common carrier that is a railroad for use in a locomotive engine;
2931 (69) purchases and sales described in Section 63H-4-111;
2932 (70) (a) sales of tangible personal property to an aircraft maintenance, repair, and
2933 overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
2934 a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
2935 lists a state or country other than this state as the location of registry of the fixed wing turbine
2936 powered aircraft; or
2937 (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
2938 provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
2939 a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
2940 lists a state or country other than this state as the location of registry of the fixed wing turbine
2941 powered aircraft;
2942 (71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
2943 (a) to a person admitted to an institution of higher education; and
2944 (b) by a seller, other than a bookstore owned by an institution of higher education, if
2945 51% or more of that seller's sales revenue for the previous calendar quarter are sales of a
2946 textbook for a higher education course;
2947 (72) a license fee or tax a municipality imposes in accordance with Subsection
2948 10-1-203(5) on a purchaser from a business for which the municipality provides an enhanced
2949 level of municipal services;
2950 (73) amounts paid or charged for construction materials used in the construction of a
2951 new or expanding life science research and development facility in the state, if the construction
2952 materials are:
2953 (a) clearly identified;
2954 (b) segregated; and
2955 (c) installed or converted to real property;
2956 (74) amounts paid or charged for:
2957 (a) a purchase or lease of machinery and equipment that:
2958 (i) are used in performing qualified research:
2959 (A) as defined in Section 41(d), Internal Revenue Code; and
2960 (B) in the state; and
2961 (ii) have an economic life of three or more years; and
2962 (b) normal operating repair or replacement parts:
2963 (i) for the machinery and equipment described in Subsection (74)(a); and
2964 (ii) that have an economic life of three or more years;
2965 (75) a sale or lease of tangible personal property used in the preparation of prepared
2966 food if:
2967 (a) for a sale:
2968 (i) the ownership of the seller and the ownership of the purchaser are identical; and
2969 (ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
2970 tangible personal property prior to making the sale; or
2971 (b) for a lease:
2972 (i) the ownership of the lessor and the ownership of the lessee are identical; and
2973 (ii) the lessor or the lessee paid a tax under this chapter on the purchase of that tangible
2974 personal property prior to making the lease;
2975 (76) (a) purchases of machinery or equipment if:
2976 (i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
2977 Gambling, and Recreation Industries, of the 2012 North American Industry Classification
2978 System of the federal Executive Office of the President, Office of Management and Budget;
2979 (ii) the machinery or equipment:
2980 (A) has an economic life of three or more years; and
2981 (B) is used by one or more persons who pay admission or user fees described in
2982 Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment; and
2983 (iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
2984 (A) amounts paid or charged as admission or user fees described in Subsection
2985 59-12-103(1)(f); and
2986 (B) subject to taxation under this chapter; and
2987 (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2988 commission may make rules for verifying that 51% of a purchaser's sales revenue for the
2989 previous calendar quarter is:
2990 (i) amounts paid or charged as admission or user fees described in Subsection
2991 59-12-103(1)(f); and
2992 (ii) subject to taxation under this chapter;
2993 (77) purchases of a short-term lodging consumable by a business that provides
2994 accommodations and services described in Subsection 59-12-103(1)(i);
2995 (78) amounts paid or charged to access a database:
2996 (a) if the primary purpose for accessing the database is to view or retrieve information
2997 from the database; and
2998 (b) not including amounts paid or charged for a:
2999 (i) digital [
3000 (ii) digital audio-visual work; or
3001 (iii) digital book;
3002 (79) amounts paid or charged for a purchase or lease made by an electronic financial
3003 payment service, of:
3004 (a) machinery and equipment that:
3005 (i) are used in the operation of the electronic financial payment service; and
3006 (ii) have an economic life of three or more years; and
3007 (b) normal operating repair or replacement parts that:
3008 (i) are used in the operation of the electronic financial payment service; and
3009 (ii) have an economic life of three or more years;
3010 (80) [
3011 (81) amounts paid or charged for a purchase or lease of tangible personal property or a
3012 product transferred electronically if the tangible personal property or product transferred
3013 electronically:
3014 (a) is stored, used, or consumed in the state; and
3015 (b) is temporarily brought into the state from another state:
3016 (i) during a disaster period as defined in Section 53-2a-1202;
3017 (ii) by an out-of-state business as defined in Section 53-2a-1202;
3018 (iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
3019 (iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
3020 (82) sales of goods and services at a morale, welfare, and recreation facility, as defined
3021 in Section 39-9-102, made pursuant to Title 39, Chapter 9, State Morale, Welfare, and
3022 Recreation Program;
3023 (83) amounts paid or charged for a purchase or lease of molten magnesium;
3024 (84) amounts paid or charged for a purchase or lease made by a qualifying enterprise
3025 data center of machinery, equipment, or normal operating repair or replacement parts, if the
3026 machinery, equipment, or normal operating repair or replacement parts:
3027 (a) are used in the operation of the establishment; and
3028 (b) have an economic life of one or more years;
3029 (85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a
3030 vehicle that includes cleaning or washing of the interior of the vehicle;
3031 (86) amounts paid or charged for a purchase or lease of machinery, equipment, normal
3032 operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or supplies used
3033 or consumed:
3034 (a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
3035 in Section 63M-4-701 located in the state;
3036 (b) if the machinery, equipment, normal operating repair or replacement parts,
3037 catalysts, chemicals, reagents, solutions, or supplies are used or consumed in:
3038 (i) the production process to produce gasoline or diesel fuel, or at which blendstock is
3039 added to gasoline or diesel fuel;
3040 (ii) research and development;
3041 (iii) transporting, storing, or managing raw materials, work in process, finished
3042 products, and waste materials produced from refining gasoline or diesel fuel, or adding
3043 blendstock to gasoline or diesel fuel;
3044 (iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
3045 refining; or
3046 (v) preventing, controlling, or reducing pollutants from refining; and
3047 (c) beginning on July 1, 2021, if the person has obtained a form certified by the Office
3048 of Energy Development under Subsection 63M-4-702(2);
3049 (87) amounts paid to or charged by a proprietor for accommodations and services, as
3050 defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations tax
3051 imposed under Section 63H-1-205;
3052 (88) amounts paid or charged for a purchase or lease of machinery, equipment, normal
3053 operating repair or replacement parts, or materials, except for office equipment or office
3054 supplies, by an establishment, as the commission defines that term in accordance with Title
3055 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
3056 (a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
3057 American Industry Classification System of the federal Executive Office of the President,
3058 Office of Management and Budget;
3059 (b) is located in this state; and
3060 (c) uses the machinery, equipment, normal operating repair or replacement parts, or
3061 materials in the operation of the establishment; and
3062 (89) amounts paid or charged for an item exempt under Section 59-12-104.10.
3063 Section 7. Effective date.
3064 This bill takes effect on July 1, 2020.