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8 LONG TITLE
9 General Description:
10 This bill modifies provisions relating to the Military Installation Development
11 Authority.
12 Highlighted Provisions:
13 This bill:
14 ▸ modifies the authority of the State Tax Commission to administer, operate, and
15 enforce sales tax code provisions to include representing the interest of the Military
16 Installation Development Authority in administrative proceedings;
17 ▸ includes the Military Installation Development Authority with counties, cities, and
18 towns in provisions relating to the administration of local sales taxes and to sales
19 tax information provided by the State Tax Commission;
20 ▸ requires the State Tax Commission to provide certain tax revenue information to the
21 authority;
22 ▸ modifies a definition relating to public infrastructure and improvements in the
23 context of code provisions relating to the Military Installation Development
24 Authority;
25 ▸ modifies the powers of the Military Installation Development Authority, including
26 relating to facilitating public-private partnerships;
27 ▸ makes an exception to a conflict-of-interest provision applicable to a contract
28 involving the authority or a subsidiary as a facilitator of public-private partnerships;
29 ▸ provides exceptions to open meetings provisions and government records
30 provisions;
31 ▸ authorizes a subsidiary of the Military Installation Development Authority that is
32 created as a public infrastructure district to levy a property tax for the operations
33 and maintenance of the public infrastructure district's financed infrastructure and
34 related improvements;
35 ▸ modifies a provision relating to the MIDA accommodations tax;
36 ▸ enacts a provision for a former rail line to become part of a project area under
37 specified circumstances;
38 ▸ modifies a provision relating to the board's delegation of powers to authority staff;
39 ▸ modifies a provision relating to the notice of the board's adoption of a project area
40 plan;
41 ▸ modifies a provision requiring the authority to make an adopted project area plan
42 available to the public;
43 ▸ modifies a provision relating to the authority's annual report; and
44 ▸ makes technical changes.
45 Money Appropriated in this Bill:
46 None
47 Other Special Clauses:
48 This bill provides a special effective date.
49 Utah Code Sections Affected:
50 AMENDS:
51 10-1-304, as last amended by Laws of Utah 2012, Chapter 410
52 10-1-403, as last amended by Laws of Utah 2009, Chapter 92
53 17B-2a-1206, as last amended by Laws of Utah 2020, Chapter 282
54 59-12-102, as last amended by Laws of Utah 2020, Chapters 354, 365, and 438
55 59-12-118, as last amended by Laws of Utah 2020, Chapter 315
56 59-12-209, as last amended by Laws of Utah 2009, Chapters 212 and 240
57 59-12-210, as last amended by Laws of Utah 2009, Chapter 240
58 59-12-401, as last amended by Laws of Utah 2017, Chapter 422
59 63H-1-102, as last amended by Laws of Utah 2020, Chapter 282
60 63H-1-201, as last amended by Laws of Utah 2020, Chapters 282 and 354
61 63H-1-202, as last amended by Laws of Utah 2020, Chapter 282
62 63H-1-205, as last amended by Laws of Utah 2019, Chapter 136
63 63H-1-301, as last amended by Laws of Utah 2009, Chapter 92
64 63H-1-403, as last amended by Laws of Utah 2020, Chapter 282
65 63H-1-502, as last amended by Laws of Utah 2020, Chapter 282
66 63H-1-703, as last amended by Laws of Utah 2015, Chapter 377
67 63N-13-303, as enacted by Laws of Utah 2020, Chapter 446
68 ENACTS:
69 63H-1-208, Utah Code Annotated 1953
70
71 Be it enacted by the Legislature of the state of Utah:
72 Section 1. Section 10-1-304 is amended to read:
73 10-1-304. Municipality and military installation development authority may levy
74 tax -- Rate -- Imposition or repeal of tax -- Tax rate change -- Effective date -- Notice
75 requirements -- Exemptions.
76 (1) (a) Except as provided in Subsections (4) and (5), a municipality may levy a
77 municipal energy sales and use tax on the sale or use of taxable energy within the municipality:
78 (i) by ordinance as provided in Section 10-1-305; and
79 (ii) of up to 6% of the delivered value of the taxable energy.
80 (b) Subject to Section 63H-1-203, the military installation development authority
81 created in Section 63H-1-201 may levy a municipal energy sales and use tax under this part
82 within a project area described in a project area plan adopted by the authority under Title 63H,
83 Chapter 1, Military Installation Development Authority Act, as though the authority were a
84 municipality.
85 (2) A municipal energy sales and use tax imposed under this part may be in addition to
86 any sales and use tax imposed by the municipality under Title 59, Chapter 12, Sales and Use
87 Tax Act.
88 (3) (a) For purposes of this Subsection (3):
89 (i) "Annexation" means an annexation to a municipality under Chapter 2, Part 4,
90 Annexation.
91 (ii) "Annexing area" means an area that is annexed into a municipality.
92 (b) (i) If, on or after May 1, 2000, a city or town enacts or repeals a tax or changes the
93 rate of a tax under this part, the enactment, repeal, or change shall take effect:
94 (A) on the first day of a calendar quarter; and
95 (B) after a 90-day period beginning on the date the commission receives notice meeting
96 the requirements of Subsection (3)(b)(ii) from the municipality.
97 (ii) The notice described in Subsection (3)(b)(i)(B) shall state:
98 (A) that the city or town will enact or repeal a tax or change the rate of a tax under this
99 part;
100 (B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
101 (C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
102 (D) if the city or town enacts the tax or changes the rate of the tax described in
103 Subsection (3)(b)(ii)(A), the new rate of the tax.
104 (c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will
105 result in a change in the rate of a tax under this part for an annexing area, the change shall take
106 effect:
107 (A) on the first day of a calendar quarter; and
108 (B) after a 90-day period beginning on the date the commission receives notice meeting
109 the requirements of Subsection (3)(c)(ii) from the municipality that annexes the annexing area.
110 (ii) The notice described in Subsection (3)(c)(i)(B) shall state:
111 (A) that the annexation described in Subsection (3)(c)(i) will result in a change in the
112 rate of a tax under this part for the annexing area;
113 (B) the statutory authority for the tax described in Subsection (3)(c)(ii)(A);
114 (C) the effective date of the tax described in Subsection (3)(c)(ii)(A); and
115 (D) the new rate of the tax described in Subsection (3)(c)(ii)(A).
116 (4) (a) Subject to Subsection (4)(b), a sale or use of electricity within a municipality is
117 exempt from the tax authorized by this section if the sale or use is made under a tariff adopted
118 by the Public Service Commission of Utah only for purchase of electricity produced from a
119 new source of alternative energy, as defined in Section 59-12-102, as designated in the tariff by
120 the Public Service Commission of Utah.
121 (b) The exemption under Subsection (4)(a) applies to the portion of the tariff rate a
122 customer pays under the tariff described in Subsection (4)(a) that exceeds the tariff rate under
123 the tariff described in Subsection (4)(a) that the customer would have paid absent the tariff.
124 (5) (a) A municipality may not levy a municipal energy sales and use tax within any
125 portion of the municipality that is within a project area described in a project area plan adopted
126 by the military installation development authority under Title 63H, Chapter 1, Military
127 Installation Development Authority Act.
128 (b) Subsection (5)(a) does not apply to the military installation development authority's
129 levy of a municipal energy sales and use tax.
130 (6) (a) The State Tax Commission shall provide to the military installation
131 development authority the collection data necessary to verify that revenue collected by the State
132 Tax Commission is distributed to the military installation development authority in accordance
133 with this part.
134 (b) The data described in Subsection (6)(a) shall include the State Tax Commission's
135 breakdown of military installation development authority revenue, including reports of
136 collections and distributions.
137 Section 2. Section 10-1-403 is amended to read:
138 10-1-403. Municipality and military installation development authority may levy
139 municipal telecommunications license tax -- Recovery from customers -- Enactment,
140 repeal, or change in rate of tax -- Annexation.
141 (1) (a) (i) Subject to the provisions of this section, beginning July 1, 2004, a
142 municipality may levy on and provide that there is collected from a telecommunications
143 provider a municipal telecommunications license tax on the telecommunications provider's
144 gross receipts from telecommunications service that are attributed to the municipality in
145 accordance with Section 10-1-407.
146 (ii) Subject to Section 63H-1-203, the military installation development authority
147 created in Section 63H-1-201 may levy and collect a municipal telecommunications license tax
148 under this part for telecommunications service provided within a project area described in a
149 project area plan adopted by the authority under Title 63H, Chapter 1, Military Installation
150 Development Authority Act, as though the authority were a municipality.
151 (b) To levy and provide for the collection of a municipal telecommunications license
152 tax under this part, the municipality shall adopt an ordinance that complies with the
153 requirements of Section 10-1-404.
154 (c) Beginning on July 1, 2007, a municipal telecommunications license tax imposed
155 under this part shall be at a rate of up to 3.5% of the telecommunications provider's gross
156 receipts from telecommunications service that are attributed to the municipality in accordance
157 with Section 10-1-407.
158 (2) A telecommunications provider may recover the amounts paid in municipal
159 telecommunications license taxes from the customers of the telecommunications provider
160 within the municipality imposing the municipal telecommunications license tax through a
161 charge that is separately identified in the statement of the transaction with the customer as the
162 recovery of a tax.
163 (3) (a) For purposes of this Subsection (3):
164 (i) "Annexation" means an annexation to a municipality under Title 10, Chapter 2, Part
165 4, Annexation.
166 (ii) "Annexing area" means an area that is annexed into a municipality.
167 (b) (i) If, on or after July 1, 2004, a municipality enacts or repeals a tax or changes the
168 rate of the tax under this part, the enactment, repeal, or change shall take effect:
169 (A) on the first day of a calendar quarter; and
170 (B) after a 90-day period beginning on the date the commission receives notice meeting
171 the requirements of Subsection (3)(b)(ii) from the municipality.
172 (ii) The notice described in Subsection (3)(b)(i)(B) shall state:
173 (A) that the municipality will enact or repeal a tax under this part or change the rate of
174 the tax;
175 (B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
176 (C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
177 (D) if the municipality enacts the municipal telecommunications license tax or changes
178 the rate of the tax, the new rate of the tax.
179 (c) (i) If, for an annexation that occurs on or after July 1, 2004, the annexation will
180 result in a change in the rate of the tax under this part for an annexing area, the change shall
181 take effect:
182 (A) on the first day of a calendar quarter; and
183 (B) after a 90-day period beginning on the date the commission receives notice meeting
184 the requirements of Subsection (3)(c)(ii) from the municipality that annexes the annexing area.
185 (ii) The notice described in Subsection (3)(c)(i)(B) shall state:
186 (A) that the annexation described in Subsection (3)(c)(i) will result in a change in the
187 rate of a tax under this part for the annexing area;
188 (B) the statutory authority for the tax described in Subsection (3)(c)(ii)(A);
189 (C) the effective date of the tax described in Subsection (3)(c)(ii)(A); and
190 (D) the new rate of the tax described in Subsection (3)(c)(ii)(A).
191 (4) Notwithstanding Subsection (3)(b), for purposes of a change in a municipal
192 telecommunications license tax rate that takes effect on July 1, 2007, a municipality is not
193 subject to the notice requirements of Subsection (3)(b) if:
194 (a) on June 30, 2007, the municipality has in effect an ordinance that levies a municipal
195 telecommunications license tax at a rate that exceeds 3.5%; and
196 (b) on July 1, 2007, the municipality has in effect an ordinance that levies a municipal
197 telecommunications license tax at a rate of 3.5%.
198 (5) Notwithstanding Subsection (3)(b), for purposes of a change in a municipal
199 telecommunications license tax rate that takes effect on July 1, 2007, the 90-day period
200 described in Subsection (3)(b)(i)(B) is considered to be a 30-day period if:
201 (a) on June 30, 2007, the municipality has in effect an ordinance that levies a municipal
202 telecommunications license tax at a rate that exceeds 3.5%; and
203 (b) on July 1, 2007, the municipality has in effect an ordinance that levies a municipal
204 telecommunications license tax at a rate that is less than 3.5%.
205 (6) (a) A municipality may not levy or collect a municipal telecommunications license
206 tax for telecommunications service provided within any portion of the municipality that is
207 within a project area described in a project area plan adopted by the military installation
208 development authority under Title 63H, Chapter 1, Military Installation Development
209 Authority Act.
210 (b) Subsection (6)(a) does not apply to the military installation development authority's
211 levy of a municipal telecommunications license tax.
212 (7) (a) The State Tax Commission shall provide to the military installation
213 development authority the collection data necessary to verify that revenue collected by the State
214 Tax Commission is distributed to the military installation development authority in accordance
215 with this part.
216 (b) The data described in Subsection (7)(a) shall include the State Tax Commission's
217 breakdown of military installation development authority revenue, including reports of
218 collections and distributions.
219 Section 3. Section 17B-2a-1206 is amended to read:
220 17B-2a-1206. Additional public infrastructure district powers.
221 In addition to the powers conferred on a public infrastructure district under Section
222 17B-1-103, a public infrastructure district may:
223 (1) issue negotiable bonds to pay:
224 (a) all or part of the costs of acquiring, acquiring an interest in, improving, or extending
225 any of the improvements, facilities, or property allowed under Section 11-14-103;
226 (b) capital costs of improvements in an energy assessment area, as defined in Section
227 11-42a-102, and other related costs, against the funds that the public infrastructure district will
228 receive because of an assessment in an energy assessment area, as defined in Section
229 11-42a-102;
230 (c) public improvements related to the provision of housing;
231 (d) capital costs related to public transportation; and
232 (e) for a public infrastructure district created by the development authority, the cost of
233 acquiring or financing [
234 Section 63H-1-102;
235 (2) enter into an interlocal agreement in accordance with Title 11, Chapter 13,
236 Interlocal Cooperation Act, provided that the interlocal agreement may not expand the powers
237 of the public infrastructure district, within the limitations of Title 11, Chapter 13, Interlocal
238 Cooperation Act, without the consent of the creating entity;
239 (3) acquire completed or partially completed improvements for fair market value as
240 reasonably determined by:
241 (a) the board;
242 (b) the creating entity, if required in the governing document; or
243 (c) a surveyor or engineer that a public infrastructure district employs or engages to
244 perform the necessary engineering services for and to supervise the construction or installation
245 of the improvements;
246 (4) contract with the creating entity for the creating entity to provide administrative
247 services on behalf of the public infrastructure district, when agreed to by both parties, in order
248 to achieve cost savings and economic efficiencies, at the discretion of the creating entity; and
249 (5) for a public infrastructure district created by a development authority:
250 (a) (i) operate and maintain publicly owned infrastructure and improvements the
251 district acquires or finances; and
252 (ii) use fees, assessments, or taxes to pay for the operation and maintenance of those
253 publicly owned infrastructure and improvements; and
254 (b) issue bonds under Title 11, Chapter 42, Assessment Area Act.
255 Section 4. Section 59-12-102 is amended to read:
256 59-12-102. Definitions.
257 As used in this chapter:
258 (1) "800 service" means a telecommunications service that:
259 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
260 (b) is typically marketed:
261 (i) under the name 800 toll-free calling;
262 (ii) under the name 855 toll-free calling;
263 (iii) under the name 866 toll-free calling;
264 (iv) under the name 877 toll-free calling;
265 (v) under the name 888 toll-free calling; or
266 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
267 Federal Communications Commission.
268 (2) (a) "900 service" means an inbound toll telecommunications service that:
269 (i) a subscriber purchases;
270 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
271 the subscriber's:
272 (A) prerecorded announcement; or
273 (B) live service; and
274 (iii) is typically marketed:
275 (A) under the name 900 service; or
276 (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
277 Communications Commission.
278 (b) "900 service" does not include a charge for:
279 (i) a collection service a seller of a telecommunications service provides to a
280 subscriber; or
281 (ii) the following a subscriber sells to the subscriber's customer:
282 (A) a product; or
283 (B) a service.
284 (3) (a) "Admission or user fees" includes season passes.
285 (b) "Admission or user fees" does not include:
286 (i) annual membership dues to private organizations; or
287 (ii) a lesson, including a lesson that involves as part of the lesson equipment or a
288 facility listed in Subsection 59-12-103(1)(f).
289 (4) "Affiliate" or "affiliated person" means a person that, with respect to another
290 person:
291 (a) has an ownership interest of more than 5%, whether direct or indirect, in that other
292 person; or
293 (b) is related to the other person because a third person, or a group of third persons who
294 are affiliated persons with respect to each other, holds an ownership interest of more than 5%,
295 whether direct or indirect, in the related persons.
296 (5) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
297 November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
298 Agreement after November 12, 2002.
299 (6) "Agreement combined tax rate" means the sum of the tax rates:
300 (a) listed under Subsection (7); and
301 (b) that are imposed within a local taxing jurisdiction.
302 (7) "Agreement sales and use tax" means a tax imposed under:
303 (a) Subsection 59-12-103(2)(a)(i)(A);
304 (b) Subsection 59-12-103(2)(b)(i);
305 (c) Subsection 59-12-103(2)(c)(i);
306 (d) Subsection 59-12-103(2)(d)(i)(A)(I);
307 (e) Section 59-12-204;
308 (f) Section 59-12-401;
309 (g) Section 59-12-402;
310 (h) Section 59-12-402.1;
311 (i) Section 59-12-703;
312 (j) Section 59-12-802;
313 (k) Section 59-12-804;
314 (l) Section 59-12-1102;
315 (m) Section 59-12-1302;
316 (n) Section 59-12-1402;
317 (o) Section 59-12-1802;
318 (p) Section 59-12-2003;
319 (q) Section 59-12-2103;
320 (r) Section 59-12-2213;
321 (s) Section 59-12-2214;
322 (t) Section 59-12-2215;
323 (u) Section 59-12-2216;
324 (v) Section 59-12-2217;
325 (w) Section 59-12-2218;
326 (x) Section 59-12-2219; or
327 (y) Section 59-12-2220.
328 (8) "Aircraft" means the same as that term is defined in Section 72-10-102.
329 (9) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
330 (a) except for:
331 (i) an airline as defined in Section 59-2-102; or
332 (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
333 includes a corporation that is qualified to do business but is not otherwise doing business in the
334 state, of an airline; and
335 (b) that has the workers, expertise, and facilities to perform the following, regardless of
336 whether the business entity performs the following in this state:
337 (i) check, diagnose, overhaul, and repair:
338 (A) an onboard system of a fixed wing turbine powered aircraft; and
339 (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
340 (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
341 engine;
342 (iii) perform at least the following maintenance on a fixed wing turbine powered
343 aircraft:
344 (A) an inspection;
345 (B) a repair, including a structural repair or modification;
346 (C) changing landing gear; and
347 (D) addressing issues related to an aging fixed wing turbine powered aircraft;
348 (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
349 completely apply new paint to the fixed wing turbine powered aircraft; and
350 (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
351 results in a change in the fixed wing turbine powered aircraft's certification requirements by the
352 authority that certifies the fixed wing turbine powered aircraft.
353 (10) "Alcoholic beverage" means a beverage that:
354 (a) is suitable for human consumption; and
355 (b) contains .5% or more alcohol by volume.
356 (11) "Alternative energy" means:
357 (a) biomass energy;
358 (b) geothermal energy;
359 (c) hydroelectric energy;
360 (d) solar energy;
361 (e) wind energy; or
362 (f) energy that is derived from:
363 (i) coal-to-liquids;
364 (ii) nuclear fuel;
365 (iii) oil-impregnated diatomaceous earth;
366 (iv) oil sands;
367 (v) oil shale;
368 (vi) petroleum coke; or
369 (vii) waste heat from:
370 (A) an industrial facility; or
371 (B) a power station in which an electric generator is driven through a process in which
372 water is heated, turns into steam, and spins a steam turbine.
373 (12) (a) Subject to Subsection (12)(b), "alternative energy electricity production
374 facility" means a facility that:
375 (i) uses alternative energy to produce electricity; and
376 (ii) has a production capacity of two megawatts or greater.
377 (b) A facility is an alternative energy electricity production facility regardless of
378 whether the facility is:
379 (i) connected to an electric grid; or
380 (ii) located on the premises of an electricity consumer.
381 (13) (a) "Ancillary service" means a service associated with, or incidental to, the
382 provision of telecommunications service.
383 (b) "Ancillary service" includes:
384 (i) a conference bridging service;
385 (ii) a detailed communications billing service;
386 (iii) directory assistance;
387 (iv) a vertical service; or
388 (v) a voice mail service.
389 (14) "Area agency on aging" means the same as that term is defined in Section
390 62A-3-101.
391 (15) "Assisted amusement device" means an amusement device, skill device, or ride
392 device that is started and stopped by an individual:
393 (a) who is not the purchaser or renter of the right to use or operate the amusement
394 device, skill device, or ride device; and
395 (b) at the direction of the seller of the right to use the amusement device, skill device,
396 or ride device.
397 (16) "Assisted cleaning or washing of tangible personal property" means cleaning or
398 washing of tangible personal property if the cleaning or washing labor is primarily performed
399 by an individual:
400 (a) who is not the purchaser of the cleaning or washing of the tangible personal
401 property; and
402 (b) at the direction of the seller of the cleaning or washing of the tangible personal
403 property.
404 (17) "Authorized carrier" means:
405 (a) in the case of vehicles operated over public highways, the holder of credentials
406 indicating that the vehicle is or will be operated pursuant to both the International Registration
407 Plan and the International Fuel Tax Agreement;
408 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
409 certificate or air carrier's operating certificate; or
410 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
411 stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
412 stock in more than one state.
413 (18) (a) Except as provided in Subsection (18)(b), "biomass energy" means any of the
414 following that is used as the primary source of energy to produce fuel or electricity:
415 (i) material from a plant or tree; or
416 (ii) other organic matter that is available on a renewable basis, including:
417 (A) slash and brush from forests and woodlands;
418 (B) animal waste;
419 (C) waste vegetable oil;
420 (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
421 wastewater residuals, or through the conversion of a waste material through a nonincineration,
422 thermal conversion process;
423 (E) aquatic plants; and
424 (F) agricultural products.
425 (b) "Biomass energy" does not include:
426 (i) black liquor; or
427 (ii) treated woods.
428 (19) (a) "Bundled transaction" means the sale of two or more items of tangible personal
429 property, products, or services if the tangible personal property, products, or services are:
430 (i) distinct and identifiable; and
431 (ii) sold for one nonitemized price.
432 (b) "Bundled transaction" does not include:
433 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
434 the basis of the selection by the purchaser of the items of tangible personal property included in
435 the transaction;
436 (ii) the sale of real property;
437 (iii) the sale of services to real property;
438 (iv) the retail sale of tangible personal property and a service if:
439 (A) the tangible personal property:
440 (I) is essential to the use of the service; and
441 (II) is provided exclusively in connection with the service; and
442 (B) the service is the true object of the transaction;
443 (v) the retail sale of two services if:
444 (A) one service is provided that is essential to the use or receipt of a second service;
445 (B) the first service is provided exclusively in connection with the second service; and
446 (C) the second service is the true object of the transaction;
447 (vi) a transaction that includes tangible personal property or a product subject to
448 taxation under this chapter and tangible personal property or a product that is not subject to
449 taxation under this chapter if the:
450 (A) seller's purchase price of the tangible personal property or product subject to
451 taxation under this chapter is de minimis; or
452 (B) seller's sales price of the tangible personal property or product subject to taxation
453 under this chapter is de minimis; and
454 (vii) the retail sale of tangible personal property that is not subject to taxation under
455 this chapter and tangible personal property that is subject to taxation under this chapter if:
456 (A) that retail sale includes:
457 (I) food and food ingredients;
458 (II) a drug;
459 (III) durable medical equipment;
460 (IV) mobility enhancing equipment;
461 (V) an over-the-counter drug;
462 (VI) a prosthetic device; or
463 (VII) a medical supply; and
464 (B) subject to Subsection (19)(f):
465 (I) the seller's purchase price of the tangible personal property subject to taxation under
466 this chapter is 50% or less of the seller's total purchase price of that retail sale; or
467 (II) the seller's sales price of the tangible personal property subject to taxation under
468 this chapter is 50% or less of the seller's total sales price of that retail sale.
469 (c) (i) For purposes of Subsection (19)(a)(i), tangible personal property, a product, or a
470 service that is distinct and identifiable does not include:
471 (A) packaging that:
472 (I) accompanies the sale of the tangible personal property, product, or service; and
473 (II) is incidental or immaterial to the sale of the tangible personal property, product, or
474 service;
475 (B) tangible personal property, a product, or a service provided free of charge with the
476 purchase of another item of tangible personal property, a product, or a service; or
477 (C) an item of tangible personal property, a product, or a service included in the
478 definition of "purchase price."
479 (ii) For purposes of Subsection (19)(c)(i)(B), an item of tangible personal property, a
480 product, or a service is provided free of charge with the purchase of another item of tangible
481 personal property, a product, or a service if the sales price of the purchased item of tangible
482 personal property, product, or service does not vary depending on the inclusion of the tangible
483 personal property, product, or service provided free of charge.
484 (d) (i) For purposes of Subsection (19)(a)(ii), property sold for one nonitemized price
485 does not include a price that is separately identified by tangible personal property, product, or
486 service on the following, regardless of whether the following is in paper format or electronic
487 format:
488 (A) a binding sales document; or
489 (B) another supporting sales-related document that is available to a purchaser.
490 (ii) For purposes of Subsection (19)(d)(i), a binding sales document or another
491 supporting sales-related document that is available to a purchaser includes:
492 (A) a bill of sale;
493 (B) a contract;
494 (C) an invoice;
495 (D) a lease agreement;
496 (E) a periodic notice of rates and services;
497 (F) a price list;
498 (G) a rate card;
499 (H) a receipt; or
500 (I) a service agreement.
501 (e) (i) For purposes of Subsection (19)(b)(vi), the sales price of tangible personal
502 property or a product subject to taxation under this chapter is de minimis if:
503 (A) the seller's purchase price of the tangible personal property or product is 10% or
504 less of the seller's total purchase price of the bundled transaction; or
505 (B) the seller's sales price of the tangible personal property or product is 10% or less of
506 the seller's total sales price of the bundled transaction.
507 (ii) For purposes of Subsection (19)(b)(vi), a seller:
508 (A) shall use the seller's purchase price or the seller's sales price to determine if the
509 purchase price or sales price of the tangible personal property or product subject to taxation
510 under this chapter is de minimis; and
511 (B) may not use a combination of the seller's purchase price and the seller's sales price
512 to determine if the purchase price or sales price of the tangible personal property or product
513 subject to taxation under this chapter is de minimis.
514 (iii) For purposes of Subsection (19)(b)(vi), a seller shall use the full term of a service
515 contract to determine if the sales price of tangible personal property or a product is de minimis.
516 (f) For purposes of Subsection (19)(b)(vii)(B), a seller may not use a combination of
517 the seller's purchase price and the seller's sales price to determine if tangible personal property
518 subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
519 price of that retail sale.
520 (20) "Certified automated system" means software certified by the governing board of
521 the agreement that:
522 (a) calculates the agreement sales and use tax imposed within a local taxing
523 jurisdiction:
524 (i) on a transaction; and
525 (ii) in the states that are members of the agreement;
526 (b) determines the amount of agreement sales and use tax to remit to a state that is a
527 member of the agreement; and
528 (c) maintains a record of the transaction described in Subsection (20)(a)(i).
529 (21) "Certified service provider" means an agent certified:
530 (a) by the governing board of the agreement; and
531 (b) to perform a seller's sales and use tax functions for an agreement sales and use tax,
532 as outlined in the contract between the governing board of the agreement and the certified
533 service provider, other than the seller's obligation under Section 59-12-124 to remit a tax on the
534 seller's own purchases.
535 (22) (a) Subject to Subsection (22)(b), "clothing" means all human wearing apparel
536 suitable for general use.
537 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
538 commission shall make rules:
539 (i) listing the items that constitute "clothing"; and
540 (ii) that are consistent with the list of items that constitute "clothing" under the
541 agreement.
542 (23) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
543 (24) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
544 fuels that does not constitute industrial use under Subsection (57) or residential use under
545 Subsection (112).
546 (25) (a) "Common carrier" means a person engaged in or transacting the business of
547 transporting passengers, freight, merchandise, or other property for hire within this state.
548 (b) (i) "Common carrier" does not include a person that, at the time the person is
549 traveling to or from that person's place of employment, transports a passenger to or from the
550 passenger's place of employment.
551 (ii) For purposes of Subsection (25)(b)(i), in accordance with Title 63G, Chapter 3,
552 Utah Administrative Rulemaking Act, the commission may make rules defining what
553 constitutes a person's place of employment.
554 (c) "Common carrier" does not include a person that provides transportation network
555 services, as defined in Section 13-51-102.
556 (26) "Component part" includes:
557 (a) poultry, dairy, and other livestock feed, and their components;
558 (b) baling ties and twine used in the baling of hay and straw;
559 (c) fuel used for providing temperature control of orchards and commercial
560 greenhouses doing a majority of their business in wholesale sales, and for providing power for
561 off-highway type farm machinery; and
562 (d) feed, seeds, and seedlings.
563 (27) "Computer" means an electronic device that accepts information:
564 (a) (i) in digital form; or
565 (ii) in a form similar to digital form; and
566 (b) manipulates that information for a result based on a sequence of instructions.
567 (28) "Computer software" means a set of coded instructions designed to cause:
568 (a) a computer to perform a task; or
569 (b) automatic data processing equipment to perform a task.
570 (29) "Computer software maintenance contract" means a contract that obligates a seller
571 of computer software to provide a customer with:
572 (a) future updates or upgrades to computer software;
573 (b) support services with respect to computer software; or
574 (c) a combination of Subsections (29)(a) and (b).
575 (30) (a) "Conference bridging service" means an ancillary service that links two or
576 more participants of an audio conference call or video conference call.
577 (b) "Conference bridging service" may include providing a telephone number as part of
578 the ancillary service described in Subsection (30)(a).
579 (c) "Conference bridging service" does not include a telecommunications service used
580 to reach the ancillary service described in Subsection (30)(a).
581 (31) "Construction materials" means any tangible personal property that will be
582 converted into real property.
583 (32) "Delivered electronically" means delivered to a purchaser by means other than
584 tangible storage media.
585 (33) (a) "Delivery charge" means a charge:
586 (i) by a seller of:
587 (A) tangible personal property;
588 (B) a product transferred electronically; or
589 (C) a service; and
590 (ii) for preparation and delivery of the tangible personal property, product transferred
591 electronically, or services described in Subsection (33)(a)(i) to a location designated by the
592 purchaser.
593 (b) "Delivery charge" includes a charge for the following:
594 (i) transportation;
595 (ii) shipping;
596 (iii) postage;
597 (iv) handling;
598 (v) crating; or
599 (vi) packing.
600 (34) "Designated political subdivision" means:
601 (a) a county, city, or town; or
602 (b) the military installation development authority created in Section 63H-1-201.
603 [
604 separately stating information pertaining to individual calls on a customer's billing statement.
605 [
606 (a) is intended to supplement the diet;
607 (b) contains one or more of the following dietary ingredients:
608 (i) a vitamin;
609 (ii) a mineral;
610 (iii) an herb or other botanical;
611 (iv) an amino acid;
612 (v) a dietary substance for use by humans to supplement the diet by increasing the total
613 dietary intake; or
614 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
615 described in Subsections [
616 (c) (i) except as provided in Subsection [
617 (A) tablet form;
618 (B) capsule form;
619 (C) powder form;
620 (D) softgel form;
621 (E) gelcap form; or
622 (F) liquid form; or
623 (ii) if the product is not intended for ingestion in a form described in Subsections [
624 (36)(c)(i)(A) through (F), is not represented:
625 (A) as conventional food; and
626 (B) for use as a sole item of:
627 (I) a meal; or
628 (II) the diet; and
629 (d) is required to be labeled as a dietary supplement:
630 (i) identifiable by the "Supplemental Facts" box found on the label; and
631 (ii) as required by 21 C.F.R. Sec. 101.36.
632 [
633 series of musical, spoken, or other sounds.
634 (b) "Digital audio work" includes a ringtone.
635 [
636 shown in succession, imparts an impression of motion, together with accompanying sounds, if
637 any.
638 [
639 and usual sense as a book.
640 [
641 States mail or other delivery service:
642 (i) to:
643 (A) a mass audience; or
644 (B) addressees on a mailing list provided:
645 (I) by a purchaser of the mailing list; or
646 (II) at the discretion of the purchaser of the mailing list; and
647 (ii) if the cost of the printed material is not billed directly to the recipients.
648 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
649 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
650 (c) "Direct mail" does not include multiple items of printed material delivered to a
651 single address.
652 [
653 (a) address information; or
654 (b) telephone number information.
655 [
656 equipment or supplies that:
657 (i) cannot withstand repeated use; and
658 (ii) are purchased by, for, or on behalf of a person other than:
659 (A) a health care facility as defined in Section 26-21-2;
660 (B) a health care provider as defined in Section 78B-3-403;
661 (C) an office of a health care provider described in Subsection [
662 (D) a person similar to a person described in Subsections [
663 (C).
664 (b) "Disposable home medical equipment or supplies" does not include:
665 (i) a drug;
666 (ii) durable medical equipment;
667 (iii) a hearing aid;
668 (iv) a hearing aid accessory;
669 (v) mobility enhancing equipment; or
670 (vi) tangible personal property used to correct impaired vision, including:
671 (A) eyeglasses; or
672 (B) contact lenses.
673 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
674 commission may by rule define what constitutes medical equipment or supplies.
675 [
676 (a) located in the state;
677 (b) with respect to which 51% or more of the manufacturing activities of the facility
678 consist of manufacturing component parts of drilling equipment;
679 (c) that uses pressure of 800,000 or more pounds per square inch as part of the
680 manufacturing process; and
681 (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
682 manufacturing process.
683 [
684 a compound, substance, or preparation that is:
685 (i) recognized in:
686 (A) the official United States Pharmacopoeia;
687 (B) the official Homeopathic Pharmacopoeia of the United States;
688 (C) the official National Formulary; or
689 (D) a supplement to a publication listed in Subsections [
690 (C);
691 (ii) intended for use in the:
692 (A) diagnosis of disease;
693 (B) cure of disease;
694 (C) mitigation of disease;
695 (D) treatment of disease; or
696 (E) prevention of disease; or
697 (iii) intended to affect:
698 (A) the structure of the body; or
699 (B) any function of the body.
700 (b) "Drug" does not include:
701 (i) food and food ingredients;
702 (ii) a dietary supplement;
703 (iii) an alcoholic beverage; or
704 (iv) a prosthetic device.
705 [
706 equipment" means equipment that:
707 (i) can withstand repeated use;
708 (ii) is primarily and customarily used to serve a medical purpose;
709 (iii) generally is not useful to a person in the absence of illness or injury; and
710 (iv) is not worn in or on the body.
711 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
712 equipment described in Subsection [
713 (c) "Durable medical equipment" does not include mobility enhancing equipment.
714 [
715 (a) relating to technology; and
716 (b) having:
717 (i) electrical capabilities;
718 (ii) digital capabilities;
719 (iii) magnetic capabilities;
720 (iv) wireless capabilities;
721 (v) optical capabilities;
722 (vi) electromagnetic capabilities; or
723 (vii) capabilities similar to Subsections [
724 [
725 (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
726 Clearinghouse Activities, of the 2012 North American Industry Classification System of the
727 federal Executive Office of the President, Office of Management and Budget; and
728 (b) that performs electronic financial payment services.
729 [
730 [
731 (a) rail for the use of public transit; or
732 (b) a separate right-of-way for the use of public transit.
733 [
734 (a) is powered by turbine engines;
735 (b) operates on jet fuel; and
736 (c) has wings that are permanently attached to the fuselage of the aircraft.
737 [
738 radio communication between fixed points.
739 [
740 (i) regardless of whether the substances are in:
741 (A) liquid form;
742 (B) concentrated form;
743 (C) solid form;
744 (D) frozen form;
745 (E) dried form; or
746 (F) dehydrated form; and
747 (ii) that are:
748 (A) sold for:
749 (I) ingestion by humans; or
750 (II) chewing by humans; and
751 (B) consumed for the substance's:
752 (I) taste; or
753 (II) nutritional value.
754 (b) "Food and food ingredients" includes an item described in Subsection [
755 (97)(b)(iii).
756 (c) "Food and food ingredients" does not include:
757 (i) an alcoholic beverage;
758 (ii) tobacco; or
759 (iii) prepared food.
760 [
761 (i) (A) made by a school; or
762 (B) made by a school student;
763 (ii) that are for the purpose of raising funds for the school to purchase equipment,
764 materials, or provide transportation; and
765 (iii) that are part of an officially sanctioned school activity.
766 (b) For purposes of Subsection [
767 means a school activity:
768 (i) that is conducted in accordance with a formal policy adopted by the school or school
769 district governing the authorization and supervision of fundraising activities;
770 (ii) that does not directly or indirectly compensate an individual teacher or other
771 educational personnel by direct payment, commissions, or payment in kind; and
772 (iii) the net or gross revenues from which are deposited in a dedicated account
773 controlled by the school or school district.
774 [
775 flows outward from the earth that is used as the sole source of energy to produce electricity.
776 [
777 agreement that is:
778 (a) authorized to administer the agreement; and
779 (b) established in accordance with the agreement.
780 [
781 means:
782 (i) the executive branch of the state, including all departments, institutions, boards,
783 divisions, bureaus, offices, commissions, and committees;
784 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
785 Administrative Office of the Courts, and similar administrative units in the judicial branch;
786 (iii) the legislative branch of the state, including the House of Representatives, the
787 Senate, the Legislative Printing Office, the Office of Legislative Research and General
788 Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
789 Analyst;
790 (iv) the National Guard;
791 (v) an independent entity as defined in Section 63E-1-102; or
792 (vi) a political subdivision as defined in Section 17B-1-102.
793 (b) "Governmental entity" does not include the state systems of public and higher
794 education, including:
795 (i) a school;
796 (ii) the State Board of Education;
797 (iii) the Utah Board of Higher Education; or
798 (iv) an institution of higher education described in Section 53B-1-102.
799 [
800 produce electricity.
801 [
802 or other fuels:
803 (a) in mining or extraction of minerals;
804 (b) in agricultural operations to produce an agricultural product up to the time of
805 harvest or placing the agricultural product into a storage facility, including:
806 (i) commercial greenhouses;
807 (ii) irrigation pumps;
808 (iii) farm machinery;
809 (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
810 under Title 41, Chapter 1a, Part 2, Registration; and
811 (v) other farming activities;
812 (c) in manufacturing tangible personal property at an establishment described in:
813 (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
814 the federal Executive Office of the President, Office of Management and Budget; or
815 (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
816 American Industry Classification System of the federal Executive Office of the President,
817 Office of Management and Budget;
818 (d) by a scrap recycler if:
819 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
820 one or more of the following items into prepared grades of processed materials for use in new
821 products:
822 (A) iron;
823 (B) steel;
824 (C) nonferrous metal;
825 (D) paper;
826 (E) glass;
827 (F) plastic;
828 (G) textile; or
829 (H) rubber; and
830 (ii) the new products under Subsection [
831 nonrecycled materials; or
832 (e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
833 cogeneration facility as defined in Section 54-2-1.
834 [
835 means a charge for installing:
836 (i) tangible personal property; or
837 (ii) a product transferred electronically.
838 (b) "Installation charge" does not include a charge for:
839 (i) repairs or renovations of:
840 (A) tangible personal property; or
841 (B) a product transferred electronically; or
842 (ii) attaching tangible personal property or a product transferred electronically:
843 (A) to other tangible personal property; and
844 (B) as part of a manufacturing or fabrication process.
845 [
846 listed in Section 53B-2-101.
847 [
848 personal property or a product transferred electronically for:
849 (i) (A) a fixed term; or
850 (B) an indeterminate term; and
851 (ii) consideration.
852 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
853 amount of consideration may be increased or decreased by reference to the amount realized
854 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
855 Code.
856 (c) "Lease" or "rental" does not include:
857 (i) a transfer of possession or control of property under a security agreement or
858 deferred payment plan that requires the transfer of title upon completion of the required
859 payments;
860 (ii) a transfer of possession or control of property under an agreement that requires the
861 transfer of title:
862 (A) upon completion of required payments; and
863 (B) if the payment of an option price does not exceed the greater of:
864 (I) $100; or
865 (II) 1% of the total required payments; or
866 (iii) providing tangible personal property along with an operator for a fixed period of
867 time or an indeterminate period of time if the operator is necessary for equipment to perform as
868 designed.
869 (d) For purposes of Subsection [
870 equipment to perform as designed if the operator's duties exceed the:
871 (i) set-up of tangible personal property;
872 (ii) maintenance of tangible personal property; or
873 (iii) inspection of tangible personal property.
874 [
875 instructor:
876 (a) is present with a student in person or by video; and
877 (b) actively instructs the student, including by providing observation or feedback.
878 [
879 classified under the following NAICS codes of the 2007 North American Industry
880 Classification System of the federal Executive Office of the President, Office of Management
881 and Budget:
882 (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
883 (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
884 Manufacturing; or
885 (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
886 [
887 leased, or rented by a life science establishment if research and development is performed in
888 51% or more of the total area of the facility.
889 [
890 media if the tangible storage media is not physically transferred to the purchaser.
891 [
892 (a) county that is authorized to impose an agreement sales and use tax;
893 (b) city that is authorized to impose an agreement sales and use tax; or
894 (c) town that is authorized to impose an agreement sales and use tax.
895 [
896 15A-1-302.
897 [
898 (a) an establishment described in:
899 (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
900 the federal Executive Office of the President, Office of Management and Budget; or
901 (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
902 American Industry Classification System of the federal Executive Office of the President,
903 Office of Management and Budget;
904 (b) a scrap recycler if:
905 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
906 one or more of the following items into prepared grades of processed materials for use in new
907 products:
908 (A) iron;
909 (B) steel;
910 (C) nonferrous metal;
911 (D) paper;
912 (E) glass;
913 (F) plastic;
914 (G) textile; or
915 (H) rubber; and
916 (ii) the new products under Subsection [
917 nonrecycled materials; or
918 (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
919 placed in service on or after May 1, 2006.
920 [
921 where tangible personal property, a product transferred electronically, or a service is offered for
922 sale.
923 (b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a
924 dedicated sales software application.
925 [
926 person, that enters into a contract, an agreement, or otherwise with sellers, for consideration, to
927 facilitate the sale of a seller's product through a marketplace that the person owns, operates, or
928 controls and that directly or indirectly:
929 (i) does any of the following:
930 (A) lists, makes available, or advertises tangible personal property, a product
931 transferred electronically, or a service for sale by a marketplace seller on a marketplace that the
932 person owns, operates, or controls;
933 (B) facilitates the sale of a marketplace seller's tangible personal property, product
934 transferred electronically, or service by transmitting or otherwise communicating an offer or
935 acceptance of a retail sale between the marketplace seller and a purchaser using the
936 marketplace;
937 (C) owns, rents, licenses, makes available, or operates any electronic or physical
938 infrastructure or any property, process, method, copyright, trademark, or patent that connects a
939 marketplace seller to a purchaser for the purpose of making a retail sale of tangible personal
940 property, a product transferred electronically, or a service;
941 (D) provides a marketplace for making, or otherwise facilitates, a retail sale of tangible
942 personal property, a product transferred electronically, or a service, regardless of ownership or
943 control of the tangible personal property, the product transferred electronically, or the service
944 that is the subject of the retail sale;
945 (E) provides software development or research and development activities related to
946 any activity described in this Subsection (69)(a)(i), if the software development or research and
947 development activity is directly related to the person's marketplace;
948 (F) provides or offers fulfillment or storage services for a marketplace seller;
949 (G) sets prices for the sale of tangible personal property, a product transferred
950 electronically, or a service by a marketplace seller;
951 (H) provides or offers customer service to a marketplace seller or a marketplace seller's
952 purchaser or accepts or assists with taking orders, returns, or exchanges of tangible personal
953 property, a product transferred electronically, or a service sold by a marketplace seller on the
954 person's marketplace; or
955 (I) brands or otherwise identifies sales as those of the person; and
956 (ii) does any of the following:
957 (A) collects the sales price or purchase price of a retail sale of tangible personal
958 property, a product transferred electronically, or a service;
959 (B) provides payment processing services for a retail sale of tangible personal property,
960 a product transferred electronically, or a service;
961 (C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee, closing
962 fee, a fee for inserting or making available tangible personal property, a product transferred
963 electronically, or a service on the person's marketplace, or other consideration for the
964 facilitation of a retail sale of tangible personal property, a product transferred electronically, or
965 a service, regardless of ownership or control of the tangible personal property, the product
966 transferred electronically, or the service that is the subject of the retail sale;
967 (D) through terms and conditions, an agreement, or another arrangement with a third
968 person, collects payment from a purchase for a retail sale of tangible personal property, a
969 product transferred electronically, or a service and transmits that payment to the marketplace
970 seller, regardless of whether the third person receives compensation or other consideration in
971 exchange for the service; or
972 (E) provides a virtual currency for a purchaser to use to purchase tangible personal
973 property, a product transferred electronically, or service offered for sale.
974 (b) "Marketplace facilitator" does not include:
975 (i) a person that only provides payment processing services; or
976 (ii) a person described in Subsection [
977 facilitating a sale for a seller that is a restaurant as defined in Section 59-12-602.
978 [
979 through a marketplace that a marketplace facilitator owns, operates, or controls, regardless of
980 whether the seller is required to be registered to collect and remit the tax under this part.
981 [
982 related to a producer described in Subsection 59-12-104(20)(a) as a:
983 (a) child or stepchild, regardless of whether the child or stepchild is:
984 (i) an adopted child or adopted stepchild; or
985 (ii) a foster child or foster stepchild;
986 (b) grandchild or stepgrandchild;
987 (c) grandparent or stepgrandparent;
988 (d) nephew or stepnephew;
989 (e) niece or stepniece;
990 (f) parent or stepparent;
991 (g) sibling or stepsibling;
992 (h) spouse;
993 (i) person who is the spouse of a person described in Subsections [
994 (g); or
995 (j) person similar to a person described in Subsections [
996 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
997 Administrative Rulemaking Act.
998 [
999 15A-1-302.
1000 [
1001 defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1002 [
1003 regardless of the technology used, if:
1004 (i) the origination point of the conveyance, routing, or transmission is not fixed;
1005 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
1006 (iii) the origination point described in Subsection [
1007 point described in Subsection [
1008 (b) "Mobile wireless service" includes a telecommunications service that is provided
1009 by a commercial mobile radio service provider.
1010 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1011 commission may by rule define "commercial mobile radio service provider."
1012 [
1013 equipment" means equipment that is:
1014 (i) primarily and customarily used to provide or increase the ability to move from one
1015 place to another;
1016 (ii) appropriate for use in a:
1017 (A) home; or
1018 (B) motor vehicle; and
1019 (iii) not generally used by persons with normal mobility.
1020 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
1021 the equipment described in Subsection [
1022 (c) "Mobility enhancing equipment" does not include:
1023 (i) a motor vehicle;
1024 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
1025 vehicle manufacturer;
1026 (iii) durable medical equipment; or
1027 (iv) a prosthetic device.
1028 [
1029 selected a certified service provider as the seller's agent to perform the seller's sales and use tax
1030 functions for agreement sales and use taxes, as outlined in the contract between the governing
1031 board of the agreement and the certified service provider, other than the seller's obligation
1032 under Section 59-12-124 to remit a tax on the seller's own purchases.
1033 [
1034 (a) except as provided in Subsection [
1035 system to perform the seller's sales tax functions for agreement sales and use taxes; and
1036 (b) retains responsibility for remitting all of the sales tax:
1037 (i) collected by the seller; and
1038 (ii) to the appropriate local taxing jurisdiction.
1039 [
1040 registered under the agreement that has:
1041 (i) sales in at least five states that are members of the agreement;
1042 (ii) total annual sales revenues of at least $500,000,000;
1043 (iii) a proprietary system that calculates the amount of tax:
1044 (A) for an agreement sales and use tax; and
1045 (B) due to each local taxing jurisdiction; and
1046 (iv) entered into a performance agreement with the governing board of the agreement.
1047 (b) For purposes of Subsection [
1048 group of sellers using the same proprietary system.
1049 [
1050 not a model 1 seller, model 2 seller, or model 3 seller.
1051 [
1052 [
1053 41-1a-102.
1054 [
1055 (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
1056 other hydrocarbons, or otherwise treated;
1057 (b) yield mixtures of liquid hydrocarbon; and
1058 (c) require further processing other than mechanical blending before becoming finished
1059 petroleum products.
1060 [
1061 kerogen material that yields petroleum upon heating and distillation.
1062 [
1063 software maintenance contract that a customer is not obligated to purchase as a condition to the
1064 retail sale of computer software.
1065 [
1066 energy.
1067 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
1068 personal property.
1069 [
1070 transmission of a coded radio signal for the purpose of activating a specific pager.
1071 (b) For purposes of Subsection [
1072 includes a transmission by message or sound.
1073 [
1074 13-32a-102.
1075 [
1076 13-32a-102.
1077 [
1078 property attached to real property:
1079 (i) the attachment of the tangible personal property to the real property:
1080 (A) is essential to the use of the tangible personal property; and
1081 (B) suggests that the tangible personal property will remain attached to the real
1082 property in the same place over the useful life of the tangible personal property; or
1083 (ii) if the tangible personal property is detached from the real property, the detachment
1084 would:
1085 (A) cause substantial damage to the tangible personal property; or
1086 (B) require substantial alteration or repair of the real property to which the tangible
1087 personal property is attached.
1088 (b) "Permanently attached to real property" includes:
1089 (i) the attachment of an accessory to the tangible personal property if the accessory is:
1090 (A) essential to the operation of the tangible personal property; and
1091 (B) attached only to facilitate the operation of the tangible personal property;
1092 (ii) a temporary detachment of tangible personal property from real property for a
1093 repair or renovation if the repair or renovation is performed where the tangible personal
1094 property and real property are located; or
1095 (iii) property attached to oil, gas, or water pipelines, except for the property listed in
1096 Subsection [
1097 (c) "Permanently attached to real property" does not include:
1098 (i) the attachment of portable or movable tangible personal property to real property if
1099 that portable or movable tangible personal property is attached to real property only for:
1100 (A) convenience;
1101 (B) stability; or
1102 (C) for an obvious temporary purpose;
1103 (ii) the detachment of tangible personal property from real property except for the
1104 detachment described in Subsection [
1105 (iii) an attachment of the following tangible personal property to real property if the
1106 attachment to real property is only through a line that supplies water, electricity, gas,
1107 telecommunications, cable, or supplies a similar item as determined by the commission by rule
1108 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
1109 (A) a computer;
1110 (B) a telephone;
1111 (C) a television; or
1112 (D) tangible personal property similar to Subsections [
1113 as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1114 Administrative Rulemaking Act; or
1115 (iv) an item listed in Subsection [
1116 [
1117 association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
1118 city, municipality, district, or other local governmental entity of the state, or any group or
1119 combination acting as a unit.
1120 [
1121 (a) for telecommunications service other than mobile telecommunications service,
1122 means the street address representative of where the customer's use of the telecommunications
1123 service primarily occurs, which shall be:
1124 (i) the residential street address of the customer; or
1125 (ii) the primary business street address of the customer; or
1126 (b) for mobile telecommunications service, means the same as that term is defined in
1127 the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1128 [
1129 obtains by making a payment on a call-by-call basis:
1130 (i) through the use of a:
1131 (A) bank card;
1132 (B) credit card;
1133 (C) debit card; or
1134 (D) travel card; or
1135 (ii) by a charge made to a telephone number that is not associated with the origination
1136 or termination of the telecommunications service.
1137 (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
1138 service, that would be a prepaid wireless calling service if the service were exclusively a
1139 telecommunications service.
1140 [
1141 a medium described in Subsection 59-12-104(54)(a).
1142 [
1143 (a) that allows a purchaser access to telecommunications service that is exclusively
1144 telecommunications service;
1145 (b) that:
1146 (i) is paid for in advance; and
1147 (ii) enables the origination of a call using an:
1148 (A) access number; or
1149 (B) authorization code;
1150 (c) that is dialed:
1151 (i) manually; or
1152 (ii) electronically; and
1153 (d) sold in predetermined units or dollars that decline:
1154 (i) by a known amount; and
1155 (ii) with use.
1156 [
1157 (a) that provides the right to utilize:
1158 (i) mobile wireless service; and
1159 (ii) other service that is not a telecommunications service, including:
1160 (A) the download of a product transferred electronically;
1161 (B) a content service; or
1162 (C) an ancillary service;
1163 (b) that:
1164 (i) is paid for in advance; and
1165 (ii) enables the origination of a call using an:
1166 (A) access number; or
1167 (B) authorization code;
1168 (c) that is dialed:
1169 (i) manually; or
1170 (ii) electronically; and
1171 (d) sold in predetermined units or dollars that decline:
1172 (i) by a known amount; and
1173 (ii) with use.
1174 [
1175 (i) food:
1176 (A) sold in a heated state; or
1177 (B) heated by a seller;
1178 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
1179 item; or
1180 (iii) except as provided in Subsection [
1181 provided by the seller, including a:
1182 (A) plate;
1183 (B) knife;
1184 (C) fork;
1185 (D) spoon;
1186 (E) glass;
1187 (F) cup;
1188 (G) napkin; or
1189 (H) straw.
1190 (b) "Prepared food" does not include:
1191 (i) food that a seller only:
1192 (A) cuts;
1193 (B) repackages; or
1194 (C) pasteurizes; or
1195 (ii) (A) the following:
1196 (I) raw egg;
1197 (II) raw fish;
1198 (III) raw meat;
1199 (IV) raw poultry; or
1200 (V) a food containing an item described in Subsections [
1201 (IV); and
1202 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
1203 Food and Drug Administration's Food Code that a consumer cook the items described in
1204 Subsection [
1205 (iii) the following if sold without eating utensils provided by the seller:
1206 (A) food and food ingredients sold by a seller if the seller's proper primary
1207 classification under the 2002 North American Industry Classification System of the federal
1208 Executive Office of the President, Office of Management and Budget, is manufacturing in
1209 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
1210 Manufacturing;
1211 (B) food and food ingredients sold in an unheated state:
1212 (I) by weight or volume; and
1213 (II) as a single item; or
1214 (C) a bakery item, including:
1215 (I) a bagel;
1216 (II) a bar;
1217 (III) a biscuit;
1218 (IV) bread;
1219 (V) a bun;
1220 (VI) a cake;
1221 (VII) a cookie;
1222 (VIII) a croissant;
1223 (IX) a danish;
1224 (X) a donut;
1225 (XI) a muffin;
1226 (XII) a pastry;
1227 (XIII) a pie;
1228 (XIV) a roll;
1229 (XV) a tart;
1230 (XVI) a torte; or
1231 (XVII) a tortilla.
1232 (c) An eating utensil provided by the seller does not include the following used to
1233 transport the food:
1234 (i) a container; or
1235 (ii) packaging.
1236 [
1237 (a) (i) orally;
1238 (ii) in writing;
1239 (iii) electronically; or
1240 (iv) by any other manner of transmission; and
1241 (b) by a licensed practitioner authorized by the laws of a state.
1242 [
1243 computer software" means computer software that is not designed and developed:
1244 (i) by the author or other creator of the computer software; and
1245 (ii) to the specifications of a specific purchaser.
1246 (b) "Prewritten computer software" includes:
1247 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
1248 software is not designed and developed:
1249 (A) by the author or other creator of the computer software; and
1250 (B) to the specifications of a specific purchaser;
1251 (ii) computer software designed and developed by the author or other creator of the
1252 computer software to the specifications of a specific purchaser if the computer software is sold
1253 to a person other than the purchaser; or
1254 (iii) except as provided in Subsection [
1255 prewritten portion of prewritten computer software:
1256 (A) that is modified or enhanced to any degree; and
1257 (B) if the modification or enhancement described in Subsection [
1258 designed and developed to the specifications of a specific purchaser.
1259 (c) "Prewritten computer software" does not include a modification or enhancement
1260 described in Subsection [
1261 are:
1262 (i) reasonable; and
1263 (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), separately stated on the
1264 invoice or other statement of price provided to the purchaser at the time of sale or later, as
1265 demonstrated by:
1266 (A) the books and records the seller keeps at the time of the transaction in the regular
1267 course of business, including books and records the seller keeps at the time of the transaction in
1268 the regular course of business for nontax purposes;
1269 (B) a preponderance of the facts and circumstances at the time of the transaction; and
1270 (C) the understanding of all of the parties to the transaction.
1271 [
1272 service:
1273 (i) that entitles a customer to exclusive or priority use of one or more communications
1274 channels between or among termination points; and
1275 (ii) regardless of the manner in which the one or more communications channels are
1276 connected.
1277 (b) "Private communications service" includes the following provided in connection
1278 with the use of one or more communications channels:
1279 (i) an extension line;
1280 (ii) a station;
1281 (iii) switching capacity; or
1282 (iv) another associated service that is provided in connection with the use of one or
1283 more communications channels as defined in Section 59-12-215.
1284 [
1285 transferred electronically" means a product transferred electronically that would be subject to a
1286 tax under this chapter if that product was transferred in a manner other than electronically.
1287 (b) "Product transferred electronically" does not include:
1288 (i) an ancillary service;
1289 (ii) computer software; or
1290 (iii) a telecommunications service.
1291 [
1292 (i) artificially replace a missing portion of the body;
1293 (ii) prevent or correct a physical deformity or physical malfunction; or
1294 (iii) support a weak or deformed portion of the body.
1295 (b) "Prosthetic device" includes:
1296 (i) parts used in the repairs or renovation of a prosthetic device;
1297 (ii) replacement parts for a prosthetic device;
1298 (iii) a dental prosthesis; or
1299 (iv) a hearing aid.
1300 (c) "Prosthetic device" does not include:
1301 (i) corrective eyeglasses; or
1302 (ii) contact lenses.
1303 [
1304 (i) for human wear; and
1305 (ii) that is:
1306 (A) designed as protection:
1307 (I) to the wearer against injury or disease; or
1308 (II) against damage or injury of other persons or property; and
1309 (B) not suitable for general use.
1310 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1311 commission shall make rules:
1312 (i) listing the items that constitute "protective equipment"; and
1313 (ii) that are consistent with the list of items that constitute "protective equipment"
1314 under the agreement.
1315 [
1316 written or printed matter, other than a photocopy:
1317 (i) regardless of:
1318 (A) characteristics;
1319 (B) copyright;
1320 (C) form;
1321 (D) format;
1322 (E) method of reproduction; or
1323 (F) source; and
1324 (ii) made available in printed or electronic format.
1325 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1326 commission may by rule define the term "photocopy."
1327 [
1328 consideration:
1329 (i) valued in money; and
1330 (ii) for which tangible personal property, a product transferred electronically, or
1331 services are:
1332 (A) sold;
1333 (B) leased; or
1334 (C) rented.
1335 (b) "Purchase price" and "sales price" include:
1336 (i) the seller's cost of the tangible personal property, a product transferred
1337 electronically, or services sold;
1338 (ii) expenses of the seller, including:
1339 (A) the cost of materials used;
1340 (B) a labor cost;
1341 (C) a service cost;
1342 (D) interest;
1343 (E) a loss;
1344 (F) the cost of transportation to the seller; or
1345 (G) a tax imposed on the seller;
1346 (iii) a charge by the seller for any service necessary to complete the sale; or
1347 (iv) consideration a seller receives from a person other than the purchaser if:
1348 (A) (I) the seller actually receives consideration from a person other than the purchaser;
1349 and
1350 (II) the consideration described in Subsection [
1351 related to a price reduction or discount on the sale;
1352 (B) the seller has an obligation to pass the price reduction or discount through to the
1353 purchaser;
1354 (C) the amount of the consideration attributable to the sale is fixed and determinable by
1355 the seller at the time of the sale to the purchaser; and
1356 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1357 seller to claim a price reduction or discount; and
1358 (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1359 coupon, or other documentation with the understanding that the person other than the seller
1360 will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1361 (II) the purchaser identifies that purchaser to the seller as a member of a group or
1362 organization allowed a price reduction or discount, except that a preferred customer card that is
1363 available to any patron of a seller does not constitute membership in a group or organization
1364 allowed a price reduction or discount; or
1365 (III) the price reduction or discount is identified as a third party price reduction or
1366 discount on the:
1367 (Aa) invoice the purchaser receives; or
1368 (Bb) certificate, coupon, or other documentation the purchaser presents.
1369 (c) "Purchase price" and "sales price" do not include:
1370 (i) a discount:
1371 (A) in a form including:
1372 (I) cash;
1373 (II) term; or
1374 (III) coupon;
1375 (B) that is allowed by a seller;
1376 (C) taken by a purchaser on a sale; and
1377 (D) that is not reimbursed by a third party; or
1378 (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), the following if separately
1379 stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
1380 sale or later, as demonstrated by the books and records the seller keeps at the time of the
1381 transaction in the regular course of business, including books and records the seller keeps at the
1382 time of the transaction in the regular course of business for nontax purposes, by a
1383 preponderance of the facts and circumstances at the time of the transaction, and by the
1384 understanding of all of the parties to the transaction:
1385 (A) the following from credit extended on the sale of tangible personal property or
1386 services:
1387 (I) a carrying charge;
1388 (II) a financing charge; or
1389 (III) an interest charge;
1390 (B) a delivery charge;
1391 (C) an installation charge;
1392 (D) a manufacturer rebate on a motor vehicle; or
1393 (E) a tax or fee legally imposed directly on the consumer.
1394 [
1395 (a) a sale of tangible personal property is made;
1396 (b) a product is transferred electronically; or
1397 (c) a service is furnished.
1398 [
1399 (a) houses a group of networked server computers in one physical location in order to
1400 disseminate, manage, and store data and information;
1401 (b) is located in the state;
1402 (c) is a new operation constructed on or after July 1, 2016;
1403 (d) consists of one or more buildings that total 150,000 or more square feet;
1404 (e) is owned or leased by:
1405 (i) the operator of the data center facility; or
1406 (ii) a person under common ownership, as defined in Section 59-7-101, of the operator
1407 of the data center facility; and
1408 (f) is located on one or more parcels of land that are owned or leased by:
1409 (i) the operator of the data center facility; or
1410 (ii) a person under common ownership, as defined in Section 59-7-101, of the operator
1411 of the data center facility.
1412 [
1413 (a) rented to a guest for value three or more times during a calendar year; or
1414 (b) advertised or held out to the public as a place that is regularly rented to guests for
1415 value.-
1416 [
1417 [
1418 renovations of tangible personal property" means:
1419 (i) a repair or renovation of tangible personal property that is not permanently attached
1420 to real property; or
1421 (ii) attaching tangible personal property or a product transferred electronically to other
1422 tangible personal property or detaching tangible personal property or a product transferred
1423 electronically from other tangible personal property if:
1424 (A) the other tangible personal property to which the tangible personal property or
1425 product transferred electronically is attached or from which the tangible personal property or
1426 product transferred electronically is detached is not permanently attached to real property; and
1427 (B) the attachment of tangible personal property or a product transferred electronically
1428 to other tangible personal property or detachment of tangible personal property or a product
1429 transferred electronically from other tangible personal property is made in conjunction with a
1430 repair or replacement of tangible personal property or a product transferred electronically.
1431 (b) "Repairs or renovations of tangible personal property" does not include:
1432 (i) attaching prewritten computer software to other tangible personal property if the
1433 other tangible personal property to which the prewritten computer software is attached is not
1434 permanently attached to real property; or
1435 (ii) detaching prewritten computer software from other tangible personal property if the
1436 other tangible personal property from which the prewritten computer software is detached is
1437 not permanently attached to real property.
1438 [
1439 experimentation aimed at the discovery of facts, devices, technologies, or applications and the
1440 process of preparing those devices, technologies, or applications for marketing.
1441 [
1442 telecommunications service or an ancillary service that is provided to an individual for personal
1443 use:
1444 (i) at a residential address; or
1445 (ii) at an institution, including a nursing home or a school, if the telecommunications
1446 service or ancillary service is provided to and paid for by the individual residing at the
1447 institution rather than the institution.
1448 (b) For purposes of Subsection [
1449 (i) apartment; or
1450 (ii) other individual dwelling unit.
1451 [
1452 sleeping quarters, and similar facilities or accommodations.
1453 [
1454 other than:
1455 (a) resale;
1456 (b) sublease; or
1457 (c) subrent.
1458 [
1459 the United States or federal law, that is engaged in a regularly organized business in tangible
1460 personal property or any other taxable transaction under Subsection 59-12-103(1), and who is
1461 selling to the user or consumer and not for resale.
1462 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1463 engaged in the business of selling to users or consumers within the state.
1464 [
1465 otherwise, in any manner, of tangible personal property or any other taxable transaction under
1466 Subsection 59-12-103(1), for consideration.
1467 (b) "Sale" includes:
1468 (i) installment and credit sales;
1469 (ii) any closed transaction constituting a sale;
1470 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1471 chapter;
1472 (iv) any transaction if the possession of property is transferred but the seller retains the
1473 title as security for the payment of the price; and
1474 (v) any transaction under which right to possession, operation, or use of any article of
1475 tangible personal property is granted under a lease or contract and the transfer of possession
1476 would be taxable if an outright sale were made.
1477 [
1478 [
1479 [
1480 tangible personal property or a product transferred electronically that is subject to a tax under
1481 this chapter is transferred:
1482 (a) by a purchaser-lessee;
1483 (b) to a lessor;
1484 (c) for consideration; and
1485 (d) if:
1486 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1487 of the tangible personal property or product transferred electronically;
1488 (ii) the sale of the tangible personal property or product transferred electronically to the
1489 lessor is intended as a form of financing:
1490 (A) for the tangible personal property or product transferred electronically; and
1491 (B) to the purchaser-lessee; and
1492 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1493 is required to:
1494 (A) capitalize the tangible personal property or product transferred electronically for
1495 financial reporting purposes; and
1496 (B) account for the lease payments as payments made under a financing arrangement.
1497 [
1498 [
1499 [
1500 paid to, or amounts charged by a school:
1501 (i) sales that are directly related to the school's educational functions or activities
1502 including:
1503 (A) the sale of:
1504 (I) textbooks;
1505 (II) textbook fees;
1506 (III) laboratory fees;
1507 (IV) laboratory supplies; or
1508 (V) safety equipment;
1509 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1510 that:
1511 (I) a student is specifically required to wear as a condition of participation in a
1512 school-related event or school-related activity; and
1513 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1514 place of ordinary clothing;
1515 (C) sales of the following if the net or gross revenues generated by the sales are
1516 deposited into a school district fund or school fund dedicated to school meals:
1517 (I) food and food ingredients; or
1518 (II) prepared food; or
1519 (D) transportation charges for official school activities; or
1520 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1521 event or school-related activity.
1522 (b) "Sales relating to schools" does not include:
1523 (i) bookstore sales of items that are not educational materials or supplies;
1524 (ii) except as provided in Subsection [
1525 (A) clothing;
1526 (B) clothing accessories or equipment;
1527 (C) protective equipment; or
1528 (D) sports or recreational equipment; or
1529 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1530 event or school-related activity if the amounts paid or charged are passed through to a person:
1531 (A) other than a:
1532 (I) school;
1533 (II) nonprofit organization authorized by a school board or a governing body of a
1534 private school to organize and direct a competitive secondary school activity; or
1535 (III) nonprofit association authorized by a school board or a governing body of a
1536 private school to organize and direct a competitive secondary school activity; and
1537 (B) that is required to collect sales and use taxes under this chapter.
1538 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1539 commission may make rules defining the term "passed through."
1540 [
1541 (a) an elementary school or a secondary school that:
1542 (i) is a:
1543 (A) public school; or
1544 (B) private school; and
1545 (ii) provides instruction for one or more grades kindergarten through 12; or
1546 (b) a public school district.
1547 [
1548 (i) tangible personal property;
1549 (ii) a product transferred electronically; or
1550 (iii) a service.
1551 (b) "Seller" includes a marketplace facilitator.
1552 [
1553 materials" means tangible personal property or a product transferred electronically if the
1554 tangible personal property or product transferred electronically is:
1555 (i) used primarily in the process of:
1556 (A) (I) manufacturing a semiconductor;
1557 (II) fabricating a semiconductor; or
1558 (III) research or development of a:
1559 (Aa) semiconductor; or
1560 (Bb) semiconductor manufacturing process; or
1561 (B) maintaining an environment suitable for a semiconductor; or
1562 (ii) consumed primarily in the process of:
1563 (A) (I) manufacturing a semiconductor;
1564 (II) fabricating a semiconductor; or
1565 (III) research or development of a:
1566 (Aa) semiconductor; or
1567 (Bb) semiconductor manufacturing process; or
1568 (B) maintaining an environment suitable for a semiconductor.
1569 (b) "Semiconductor fabricating, processing, research, or development materials"
1570 includes:
1571 (i) parts used in the repairs or renovations of tangible personal property or a product
1572 transferred electronically described in Subsection [
1573 (ii) a chemical, catalyst, or other material used to:
1574 (A) produce or induce in a semiconductor a:
1575 (I) chemical change; or
1576 (II) physical change;
1577 (B) remove impurities from a semiconductor; or
1578 (C) improve the marketable condition of a semiconductor.
1579 [
1580 providing services to the aged as defined in Section 62A-3-101.
1581 [
1582 consumable" means tangible personal property that:
1583 (i) a business that provides accommodations and services described in Subsection
1584 59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
1585 to a purchaser;
1586 (ii) is intended to be consumed by the purchaser; and
1587 (iii) is:
1588 (A) included in the purchase price of the accommodations and services; and
1589 (B) not separately stated on an invoice, bill of sale, or other similar document provided
1590 to the purchaser.
1591 (b) "Short-term lodging consumable" includes:
1592 (i) a beverage;
1593 (ii) a brush or comb;
1594 (iii) a cosmetic;
1595 (iv) a hair care product;
1596 (v) lotion;
1597 (vi) a magazine;
1598 (vii) makeup;
1599 (viii) a meal;
1600 (ix) mouthwash;
1601 (x) nail polish remover;
1602 (xi) a newspaper;
1603 (xii) a notepad;
1604 (xiii) a pen;
1605 (xiv) a pencil;
1606 (xv) a razor;
1607 (xvi) saline solution;
1608 (xvii) a sewing kit;
1609 (xviii) shaving cream;
1610 (xix) a shoe shine kit;
1611 (xx) a shower cap;
1612 (xxi) a snack item;
1613 (xxii) soap;
1614 (xxiii) toilet paper;
1615 (xxiv) a toothbrush;
1616 (xxv) toothpaste; or
1617 (xxvi) an item similar to Subsections [
1618 commission may provide by rule made in accordance with Title 63G, Chapter 3, Utah
1619 Administrative Rulemaking Act.
1620 (c) "Short-term lodging consumable" does not include:
1621 (i) tangible personal property that is cleaned or washed to allow the tangible personal
1622 property to be reused; or
1623 (ii) a product transferred electronically.
1624 [
1625 (a) described in Section 318(C) of the agreement; and
1626 (b) approved by the governing board of the agreement.
1627 [
1628 producing electricity.
1629 [
1630 (i) designed for human use; and
1631 (ii) that is:
1632 (A) worn in conjunction with:
1633 (I) an athletic activity; or
1634 (II) a recreational activity; and
1635 (B) not suitable for general use.
1636 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1637 commission shall make rules:
1638 (i) listing the items that constitute "sports or recreational equipment"; and
1639 (ii) that are consistent with the list of items that constitute "sports or recreational
1640 equipment" under the agreement.
1641 [
1642 [
1643 any other taxable transaction under Subsection 59-12-103(1), in this state for any purpose
1644 except sale in the regular course of business.
1645 [
1646 personal property" means personal property that:
1647 (i) may be:
1648 (A) seen;
1649 (B) weighed;
1650 (C) measured;
1651 (D) felt; or
1652 (E) touched; or
1653 (ii) is in any manner perceptible to the senses.
1654 (b) "Tangible personal property" includes:
1655 (i) electricity;
1656 (ii) water;
1657 (iii) gas;
1658 (iv) steam; or
1659 (v) prewritten computer software, regardless of the manner in which the prewritten
1660 computer software is transferred.
1661 (c) "Tangible personal property" includes the following regardless of whether the item
1662 is attached to real property:
1663 (i) a dishwasher;
1664 (ii) a dryer;
1665 (iii) a freezer;
1666 (iv) a microwave;
1667 (v) a refrigerator;
1668 (vi) a stove;
1669 (vii) a washer; or
1670 (viii) an item similar to Subsections [
1671 the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1672 Rulemaking Act.
1673 (d) "Tangible personal property" does not include a product that is transferred
1674 electronically.
1675 (e) "Tangible personal property" does not include the following if attached to real
1676 property, regardless of whether the attachment to real property is only through a line that
1677 supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1678 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1679 Rulemaking Act:
1680 (i) a hot water heater;
1681 (ii) a water filtration system; or
1682 (iii) a water softener system.
1683 [
1684 or software" means an item listed in Subsection [
1685 leased primarily to enable or facilitate one or more of the following to function:
1686 (i) telecommunications switching or routing equipment, machinery, or software; or
1687 (ii) telecommunications transmission equipment, machinery, or software.
1688 (b) The following apply to Subsection [
1689 (i) a pole;
1690 (ii) software;
1691 (iii) a supplementary power supply;
1692 (iv) temperature or environmental equipment or machinery;
1693 (v) test equipment;
1694 (vi) a tower; or
1695 (vii) equipment, machinery, or software that functions similarly to an item listed in
1696 Subsections [
1697 accordance with Subsection [
1698 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1699 commission may by rule define what constitutes equipment, machinery, or software that
1700 functions similarly to an item listed in Subsections [
1701 [
1702 911 service" means equipment, machinery, or software that is required to comply with 47
1703 C.F.R. Sec. 20.18.
1704 [
1705 software" means equipment, machinery, or software purchased or leased primarily to maintain
1706 or repair one or more of the following, regardless of whether the equipment, machinery, or
1707 software is purchased or leased as a spare part or as an upgrade or modification to one or more
1708 of the following:
1709 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1710 (b) telecommunications switching or routing equipment, machinery, or software; or
1711 (c) telecommunications transmission equipment, machinery, or software.
1712 [
1713 routing, or transmission of audio, data, video, voice, or any other information or signal to a
1714 point, or among or between points.
1715 (b) "Telecommunications service" includes:
1716 (i) an electronic conveyance, routing, or transmission with respect to which a computer
1717 processing application is used to act:
1718 (A) on the code, form, or protocol of the content;
1719 (B) for the purpose of electronic conveyance, routing, or transmission; and
1720 (C) regardless of whether the service:
1721 (I) is referred to as voice over Internet protocol service; or
1722 (II) is classified by the Federal Communications Commission as enhanced or value
1723 added;
1724 (ii) an 800 service;
1725 (iii) a 900 service;
1726 (iv) a fixed wireless service;
1727 (v) a mobile wireless service;
1728 (vi) a postpaid calling service;
1729 (vii) a prepaid calling service;
1730 (viii) a prepaid wireless calling service; or
1731 (ix) a private communications service.
1732 (c) "Telecommunications service" does not include:
1733 (i) advertising, including directory advertising;
1734 (ii) an ancillary service;
1735 (iii) a billing and collection service provided to a third party;
1736 (iv) a data processing and information service if:
1737 (A) the data processing and information service allows data to be:
1738 (I) (Aa) acquired;
1739 (Bb) generated;
1740 (Cc) processed;
1741 (Dd) retrieved; or
1742 (Ee) stored; and
1743 (II) delivered by an electronic transmission to a purchaser; and
1744 (B) the purchaser's primary purpose for the underlying transaction is the processed data
1745 or information;
1746 (v) installation or maintenance of the following on a customer's premises:
1747 (A) equipment; or
1748 (B) wiring;
1749 (vi) Internet access service;
1750 (vii) a paging service;
1751 (viii) a product transferred electronically, including:
1752 (A) music;
1753 (B) reading material;
1754 (C) a ring tone;
1755 (D) software; or
1756 (E) video;
1757 (ix) a radio and television audio and video programming service:
1758 (A) regardless of the medium; and
1759 (B) including:
1760 (I) furnishing conveyance, routing, or transmission of a television audio and video
1761 programming service by a programming service provider;
1762 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1763 (III) audio and video programming services delivered by a commercial mobile radio
1764 service provider as defined in 47 C.F.R. Sec. 20.3;
1765 (x) a value-added nonvoice data service; or
1766 (xi) tangible personal property.
1767 [
1768 (i) owns, controls, operates, or manages a telecommunications service; and
1769 (ii) engages in an activity described in Subsection [
1770 with or resale to any person of the telecommunications service.
1771 (b) A person described in Subsection [
1772 provider whether or not the Public Service Commission of Utah regulates:
1773 (i) that person; or
1774 (ii) the telecommunications service that the person owns, controls, operates, or
1775 manages.
1776 [
1777 software" means an item listed in Subsection [
1778 leased primarily for switching or routing:
1779 (i) an ancillary service;
1780 (ii) data communications;
1781 (iii) voice communications; or
1782 (iv) telecommunications service.
1783 (b) The following apply to Subsection [
1784 (i) a bridge;
1785 (ii) a computer;
1786 (iii) a cross connect;
1787 (iv) a modem;
1788 (v) a multiplexer;
1789 (vi) plug in circuitry;
1790 (vii) a router;
1791 (viii) software;
1792 (ix) a switch; or
1793 (x) equipment, machinery, or software that functions similarly to an item listed in
1794 Subsections [
1795 accordance with Subsection [
1796 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1797 commission may by rule define what constitutes equipment, machinery, or software that
1798 functions similarly to an item listed in Subsections [
1799 [
1800 software" means an item listed in Subsection [
1801 leased primarily for sending, receiving, or transporting:
1802 (i) an ancillary service;
1803 (ii) data communications;
1804 (iii) voice communications; or
1805 (iv) telecommunications service.
1806 (b) The following apply to Subsection [
1807 (i) an amplifier;
1808 (ii) a cable;
1809 (iii) a closure;
1810 (iv) a conduit;
1811 (v) a controller;
1812 (vi) a duplexer;
1813 (vii) a filter;
1814 (viii) an input device;
1815 (ix) an input/output device;
1816 (x) an insulator;
1817 (xi) microwave machinery or equipment;
1818 (xii) an oscillator;
1819 (xiii) an output device;
1820 (xiv) a pedestal;
1821 (xv) a power converter;
1822 (xvi) a power supply;
1823 (xvii) a radio channel;
1824 (xviii) a radio receiver;
1825 (xix) a radio transmitter;
1826 (xx) a repeater;
1827 (xxi) software;
1828 (xxii) a terminal;
1829 (xxiii) a timing unit;
1830 (xxiv) a transformer;
1831 (xxv) a wire; or
1832 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1833 Subsections [
1834 accordance with Subsection [
1835 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1836 commission may by rule define what constitutes equipment, machinery, or software that
1837 functions similarly to an item listed in Subsections [
1838 [
1839 printed material that is required for a course:
1840 (i) offered by an institution of higher education; and
1841 (ii) that the purchaser of the textbook or other printed material attends or will attend.
1842 (b) "Textbook for a higher education course" includes a textbook in electronic format.
1843 [
1844 (a) a cigarette;
1845 (b) a cigar;
1846 (c) chewing tobacco;
1847 (d) pipe tobacco; or
1848 (e) any other item that contains tobacco.
1849 [
1850 device, or ride device that is started and stopped by the purchaser or renter of the right to use or
1851 operate the amusement device, skill device, or ride device.
1852 [
1853 property, a product transferred electronically, or a service under Subsection 59-12-103(1),
1854 incident to the ownership or the leasing of that tangible personal property, product transferred
1855 electronically, or service.
1856 (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1857 property, a product transferred electronically, or a service in the regular course of business and
1858 held for resale.
1859 [
1860 (a) that otherwise meets the definition of a telecommunications service except that a
1861 computer processing application is used to act primarily for a purpose other than conveyance,
1862 routing, or transmission; and
1863 (b) with respect to which a computer processing application is used to act on data or
1864 information:
1865 (i) code;
1866 (ii) content;
1867 (iii) form; or
1868 (iv) protocol.
1869 [
1870 that are required to be titled, registered, or titled and registered:
1871 (i) an aircraft as defined in Section 72-10-102;
1872 (ii) a vehicle as defined in Section 41-1a-102;
1873 (iii) an off-highway vehicle as defined in Section 41-22-2; or
1874 (iv) a vessel as defined in Section 41-1a-102.
1875 (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
1876 (i) a vehicle described in Subsection [
1877 (ii) (A) a locomotive;
1878 (B) a freight car;
1879 (C) railroad work equipment; or
1880 (D) other railroad rolling stock.
1881 [
1882 selling, or exchanging a vehicle as defined in Subsection [
1883 [
1884 (i) is offered in connection with one or more telecommunications services; and
1885 (ii) offers an advanced calling feature that allows a customer to:
1886 (A) identify a caller; and
1887 (B) manage multiple calls and call connections.
1888 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1889 conference bridging service.
1890 [
1891 customer to receive, send, or store a recorded message.
1892 (b) "Voice mail service" does not include a vertical service that a customer is required
1893 to have in order to utilize a voice mail service.
1894 [
1895 facility" means a facility that generates electricity:
1896 (i) using as the primary source of energy waste materials that would be placed in a
1897 landfill or refuse pit if it were not used to generate electricity, including:
1898 (A) tires;
1899 (B) waste coal;
1900 (C) oil shale; or
1901 (D) municipal solid waste; and
1902 (ii) in amounts greater than actually required for the operation of the facility.
1903 (b) "Waste energy facility" does not include a facility that incinerates:
1904 (i) hospital waste as defined in 40 C.F.R. 60.51c; or
1905 (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1906 [
1907 [
1908 electricity.
1909 [
1910 geographic location by the United States Postal Service.
1911 Section 5. Section 59-12-118 is amended to read:
1912 59-12-118. Commission's authority to administer sales and use tax.
1913 Except as provided in Sections 59-12-209 and 59-12-302, the commission shall have
1914 exclusive authority to administer, operate, and enforce the provisions of this chapter including:
1915 (1) determining, assessing, and collecting any sales and use tax imposed pursuant to
1916 this chapter;
1917 (2) representing each [
1918 interest in any administrative proceeding involving the state or local option sales and use tax;
1919 (3) adjudicating any administrative proceedings involving the state or local option sales
1920 and use tax;
1921 (4) waiving, reducing, or compromising any penalty and interest imposed in connection
1922 with any determination of state or local option sales or use tax; and
1923 (5) prescribing forms and rules to conform with this chapter for the making of returns
1924 and for the ascertainment, assessment, and collection of the taxes imposed under this chapter.
1925 Section 6. Section 59-12-209 is amended to read:
1926 59-12-209. Participation of counties, cities, and towns in administration and
1927 enforcement of certain local sales and use taxes -- Petition for reconsideration relating to
1928 the redistribution of certain sales and use tax revenues.
1929 (1) Notwithstanding Title 63G, Chapter 4, Administrative Procedures Act, a [
1930
1931 except as specifically allowed by Subsection (2) and Section 59-12-210:
1932 (a) to inspect, review, or have access to any taxpayer sales and use tax records; or
1933 (b) to be informed of, participate in, intervene in, or appeal from any adjudicative
1934 proceeding commenced pursuant to Section 63G-4-201 to determine the liability of any
1935 taxpayer for sales and use taxes imposed pursuant to this chapter.
1936 (2) (a) [
1937 access to records and information on file with the commission, and shall have the right to
1938 notice of, and rights to intervene in or to appeal from, a proposed final agency action of the
1939 commission as provided in this Subsection (2).
1940 (b) If the commission, following a formal adjudicative proceeding commenced
1941 pursuant to Title 63G, Chapter 4, Administrative Procedures Act, proposes to take final agency
1942 action that would reduce the amount of sales and use tax liability alleged in the notice of
1943 deficiency, the commission shall provide notice of a proposed agency action to each qualified
1944 [
1945 (c) For purposes of this Subsection (2), a [
1946 subdivision is a qualified [
1947 action reduces a tax under this chapter distributable to that [
1948 political subdivision by more than $10,000 below the amount of the tax that would have been
1949 distributable to that [
1950 deficiency, as described in Section 59-1-1405, not been reduced.
1951 (d) A qualified [
1952 representative who shall have the right to review the record of the formal hearing and any other
1953 commission records relating to a proposed final agency action subject to the confidentiality
1954 provisions of Section 59-1-403.
1955 (e) No later than 10 days after receiving the notice of the commission's proposed final
1956 agency action, a qualified [
1957 intervention with the commission.
1958 (f) No later than 20 days after filing a notice of intervention, if a qualified [
1959
1960 [
1961 commission and shall serve copies of the petition on the taxpayer and the appropriate division
1962 in the commission.
1963 (g) The taxpayer and appropriate division in the commission may each file a response
1964 to the petition for reconsideration within 20 days of receipt of the petition for reconsideration.
1965 (h) (i) After consideration of the petition for reconsideration and any response, and any
1966 additional proceeding the commission considers appropriate, the commission may affirm,
1967 modify, or amend its proposed final agency action.
1968 (ii) A taxpayer and any qualified [
1969 filed a petition for reconsideration may appeal the final agency action.
1970 (i) (i) Notwithstanding Subsections (2)(a) through (h) and subject to Subsection
1971 (2)(i)(ii), the following may file a petition for reconsideration with the commission:
1972 (A) an original recipient political subdivision as defined in Section 59-12-210.1 that
1973 receives a notice from the commission in accordance with Subsection 59-12-210.1(2); or
1974 (B) a secondary recipient political subdivision as defined in Section 59-12-210.1 that
1975 receives a notice from the commission in accordance with Subsection 59-12-210.1(2).
1976 (ii) An original recipient political subdivision or secondary recipient political
1977 subdivision that files a petition for reconsideration with the commission under Subsection
1978 (2)(i)(i) shall file the petition no later than 20 days after the later of:
1979 (A) the date the original recipient political subdivision or secondary recipient political
1980 subdivision receives the notice described in Subsection (2)(i)(i) from the commission; or
1981 (B) the date the commission makes the redistribution as defined in Section 59-12-210.1
1982 that is the subject of the notice described in Subsection (2)(i)(i).
1983 Section 7. Section 59-12-210 is amended to read:
1984 59-12-210. Commission to provide data to designated political subdivisions.
1985 (1) (a) The commission shall provide to each county the sales and use tax collection
1986 data necessary to verify that sales and use tax revenues collected by the commission are
1987 distributed to each [
1988 Sections 59-12-211 through 59-12-215.
1989 (b) The data described in Subsection (1)(a) shall include the commission's reports of
1990 seller sales, sales and use tax distribution reports, and a breakdown of local revenues.
1991 (2) (a) In addition to the access to information provided in Subsection (1) and Section
1992 59-12-109, the commission shall provide a [
1993 subdivision with copies of returns and other information required by this chapter relating to a
1994 tax under this chapter.
1995 (b) The information described in Subsection (2)(a) is available only in official matters
1996 and must be requested in writing by the chief executive officer or the chief executive officer's
1997 designee.
1998 (c) The request described in Subsection (2)(b) shall specifically indicate the
1999 information being sought and how the information will be used.
2000 (d) Information received pursuant to the request described in Subsection (2)(b) shall
2001 be:
2002 (i) classified as private or protected under Section 63G-2-302 or 63G-2-305; and
2003 (ii) subject to the confidentiality provisions of Section 59-1-403.
2004 Section 8. Section 59-12-401 is amended to read:
2005 59-12-401. Resort communities tax authority for cities, towns, and military
2006 installation development authority -- Base -- Rate -- Collection fees.
2007 (1) (a) In addition to other sales and use taxes, a city or town in which the transient
2008 room capacity as defined in Section 59-12-405 is greater than or equal to 66% of the
2009 municipality's permanent census population may impose a sales and use tax of up to 1.1% on
2010 the transactions described in Subsection 59-12-103(1) located within the city or town.
2011 (b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
2012 section on:
2013 (i) the sale of:
2014 (A) a motor vehicle;
2015 (B) an aircraft;
2016 (C) a watercraft;
2017 (D) a modular home;
2018 (E) a manufactured home; or
2019 (F) a mobile home;
2020 (ii) the sales and uses described in Section 59-12-104 to the extent the sales and uses
2021 are exempt from taxation under Section 59-12-104; and
2022 (iii) except as provided in Subsection (1)(d), amounts paid or charged for food and
2023 food ingredients.
2024 (c) For purposes of this Subsection (1), the location of a transaction shall be
2025 determined in accordance with Sections 59-12-211 through 59-12-215.
2026 (d) A city or town imposing a tax under this section shall impose the tax on the
2027 purchase price or the sales price for amounts paid or charged for food and food ingredients if
2028 the food and food ingredients are sold as part of a bundled transaction attributable to food and
2029 food ingredients and tangible personal property other than food and food ingredients.
2030 (2) (a) An amount equal to the total of any costs incurred by the state in connection
2031 with the implementation of Subsection (1) which exceed, in any year, the revenues received by
2032 the state from its collection fees received in connection with the implementation of Subsection
2033 (1) shall be paid over to the state General Fund by the cities and towns which impose the tax
2034 provided for in Subsection (1).
2035 (b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among
2036 those cities and towns according to the amount of revenue the respective cities and towns
2037 generate in that year through imposition of that tax.
2038 (3) (a) Subject to Section 63H-1-203, the military installation development authority
2039 created in Section 63H-1-201 may impose a tax under this section on the transactions described
2040 in Subsection 59-12-103(1) located within a project area described in a project area plan
2041 adopted by the authority under Title 63H, Chapter 1, Military Installation Development
2042 Authority Act, as though the authority were a city or a town.
2043 (b) For purposes of calculating the permanent census population within a project area,
2044 the board, as defined in Section 63H-1-102, shall:
2045 (i) use the actual number of permanent residents within the project area as determined
2046 by the board;
2047 (ii) include in the calculation of transient room capacity the number, as determined by
2048 the board, of approved high-occupancy lodging units, recreational lodging units, special
2049 lodging units, and standard lodging units, even if the units are not constructed;
2050 [
2051 [
2052 (c) Notwithstanding Subsection (1)(a), a board as defined in Section 63H-1-102 may
2053 impose the sales and use tax under this section if there are no permanent residents.
2054 Section 9. Section 63H-1-102 is amended to read:
2055 63H-1-102. Definitions.
2056 As used in this chapter:
2057 (1) "Authority" means the Military Installation Development Authority, created under
2058 Section 63H-1-201.
2059 (2) "Base taxable value" means:
2060 (a) for military land or other land that was exempt from a property tax at the time that a
2061 project area was created that included the military land or other land, a taxable value of zero; or
2062 (b) for private property that is included in a project area, the taxable value of the
2063 property within any portion of the project area, as designated by board resolution, from which
2064 the property tax allocation will be collected, as shown upon the assessment roll last equalized:
2065 (i) before the year in which the authority creates the project area; or
2066 (ii) before the year in which the project area plan is amended, for property added to a
2067 project area by an amendment to a project area plan.
2068 (3) "Board" means the governing body of the authority created under Section
2069 63H-1-301.
2070 (4) (a) "Dedicated tax collections" means the property tax that remains after the
2071 authority is paid the property tax allocation the authority is entitled to receive under Subsection
2072 63H-1-501(1), for a property tax levied by:
2073 (i) a county, including a district the county has established under Subsection 17-34-3(2)
2074 to levy a property tax under Title 17, Chapter 34, Municipal-Type Services to Unincorporated
2075 Areas; or
2076 (ii) an included municipality.
2077 (b) "Dedicated tax collections" does not include a county additional property tax or
2078 multicounty assessing and collecting levy imposed in accordance with Section 59-2-1602.
2079 (5) "Develop" means to engage in development.
2080 [
2081 (i) on land within a project area that is owned or operated by the military, the authority,
2082 another public entity, or a private entity; or
2083 (ii) on military land associated with a project area.
2084 (b) "Development" includes the demolition, construction, reconstruction, modification,
2085 expansion, maintenance, operation, or improvement of a building, facility, utility, landscape,
2086 parking lot, park, trail, or recreational amenity.
2087 [
2088 [
2089 (a) is a mayor or member of a legislative body appointed under Subsection
2090 63H-1-302(2)(b); or
2091 (b) (i) is appointed to the authority board under Subsection 63H-1-302(2)(a) or (3); and
2092 (ii) concurrently serves in an elected state, county, or municipal office.
2093 [
2094 included within a project area.
2095 [
2096 including the Utah National Guard.
2097 (b) "Military" includes, in relation to property, property that is occupied by the military
2098 and is owned by the government of the United States or the state.
2099 [
2100 "MIDA accommodations tax" means the tax imposed under Section 63H-1-205.
2101 [
2102 tax" means the tax levied under Section 63H-1-204.
2103 [
2104 facility, that is part of or affiliated with a base, camp, post, station, yard, center, or installation
2105 under the jurisdiction of the United States Department of Defense, the United States
2106 Department of Veterans Affairs, or the Utah National Guard.
2107 [
2108 Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act.
2109 [
2110 (a) collects from the authority's:
2111 (i) levy of a municipal energy tax;
2112 (ii) levy of a MIDA energy tax;
2113 (iii) levy of a telecommunications tax;
2114 (iv) imposition of a transient room tax; and
2115 (v) imposition of a resort communities tax;
2116 (b) receives under Subsection 59-12-205(2)(b)(ii); and
2117 (c) receives as dedicated tax collections.
2118 [
2119 accommodations tax, telecommunications tax, transient room tax, or resort communities tax.
2120 [
2121 of a single contiguous area or multiple noncontiguous areas, described in a project area plan or
2122 draft project area plan, where the development project set forth in the project area plan or draft
2123 project area plan takes place or is proposed to take place.
2124 [
2125 revenues and expenses and other fiscal matters pertaining to a project area that includes:
2126 (a) the base taxable value of property in the project area;
2127 (b) the projected property tax allocation expected to be generated within the project
2128 area;
2129 (c) the amount of the property tax allocation expected to be shared with other taxing
2130 entities;
2131 (d) the amount of the property tax allocation expected to be used to implement the
2132 project area plan, including the estimated amount of the property tax allocation to be used for
2133 land acquisition, public improvements, infrastructure improvements, and loans, grants, or other
2134 incentives to private and public entities;
2135 (e) the property tax allocation expected to be used to cover the cost of administering
2136 the project area plan;
2137 (f) if the property tax allocation is to be collected at different times or from different
2138 portions of the project area, or both:
2139 (i) (A) the tax identification numbers of the parcels from which the property tax
2140 allocation will be collected; or
2141 (B) a legal description of the portion of the project area from which the property tax
2142 allocation will be collected; and
2143 (ii) an estimate of when other portions of the project area will become subject to
2144 collection of the property tax allocation; and
2145 (g) for property that the authority owns or leases and expects to sell or sublease, the
2146 expected total cost of the property to the authority and the expected selling price or lease
2147 payments.
2148 [
2149 guides and controls the development within a project area.
2150 [
2151 4, Privilege Tax, except as described in Subsection [
2152 valorem basis on tangible or intangible personal or real property.
2153 (b) "Property tax" does not include a privilege tax on the taxable value:
2154 (i) attributable to a portion of a facility leased to the military for a calendar year when:
2155 (A) a lessee of military land has constructed a facility on the military land that is part of
2156 a project area;
2157 (B) the lessee leases space in the facility to the military for the entire calendar year; and
2158 (C) the lease rate paid by the military for the space is $1 or less for the entire calendar
2159 year, not including any common charges that are reimbursements for actual expenses; or
2160 (ii) of the following property owned by the authority, regardless of whether the
2161 authority enters into a long-term operating agreement with a privately owned entity under
2162 which the privately owned entity agrees to operate the property:
2163 (A) a hotel;
2164 (B) a hotel condominium unit in a condominium project, as defined in Section 57-8-3;
2165 and
2166 (C) a commercial condominium unit in a condominium project, as defined in Section
2167 57-8-3.
2168 [
2169 (a) the amount of property tax revenues generated each tax year by all taxing entities
2170 from the area within a project area designated in the project area plan as the area from which
2171 the property tax allocation is to be collected, using the current assessed value of the property;
2172 and
2173 (b) the amount of property tax revenues that would be generated from that same area
2174 using the base taxable value of the property.
2175 [
2176 (a) the state, including each department or agency of the state; or
2177 (b) a political subdivision of the state, including a county, city, town, school district,
2178 local district, special service district, or interlocal cooperation entity.
2179 [
2180 infrastructure, improvements, facilities, or buildings that:
2181 (i) benefit the public, the authority, the military, or military-related entities; and [
2182 [
2183 district under Title 17B, Chapter 2a, Part 12, Public Infrastructure District Act, or another
2184 public entity;
2185 [
2186 [
2187 public entity.
2188 (b) "Public infrastructure and improvements" also means infrastructure, improvements,
2189 facilities, or buildings that:
2190 (i) are privately owned; and
2191 (ii) provide a substantial benefit, as determined by the board, to the development and
2192 operation of a project area.
2193 [
2194 (i) facilities, lines, or systems that harness geothermal energy or provide water, chilled
2195 water, steam, sewer, storm drainage, natural gas, electricity, or telecommunications;
2196 (ii) streets, roads, curb, gutter, sidewalk, walkways, tunnels, solid waste facilities,
2197 parking facilities, public transportation facilities, and parks, trails, and other recreational
2198 facilities;
2199 (iii) snowmaking equipment and related improvements that can also be used for water
2200 storage or fire suppression purposes; and
2201 (iv) a building and related improvements for occupancy by the public, the authority, the
2202 military, or military-related entities.
2203 [
2204 that the authority has not:
2205 (a) spent during the authority's fiscal year for municipal services as provided in
2206 Subsection 63H-1-503(1); or
2207 (b) redirected to use in accordance with Subsection 63H-1-502(3).
2208 [
2209 59-12-401.
2210 [
2211 assessment roll.
2212 [
2213 (a) means a public entity that levies a tax on property within a project area; and
2214 (b) does not include a public infrastructure district that the authority creates under Title
2215 17B, Chapter 2a, Part 12, Public Infrastructure District Act.
2216 [
2217 Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
2218 [
2219 Section 10. Section 63H-1-201 is amended to read:
2220 63H-1-201. Creation of military installation development authority -- Status and
2221 powers of authority -- Limitation.
2222 (1) There is created a military installation development authority.
2223 (2) The authority is:
2224 (a) an independent, nonprofit, separate body corporate and politic, with perpetual
2225 succession and statewide jurisdiction, whose purpose is to facilitate the development of land
2226 within a project area or on military land associated with a project area;
2227 (b) a political subdivision of the state; and
2228 (c) a public corporation, as defined in Section 63E-1-102.
2229 (3) The authority may:
2230 (a) [
2231 project areas, including the ongoing operation of facilities within a project area, or
2232 development of military land associated with a project area;
2233 (b) sue and be sued;
2234 (c) enter into contracts generally;
2235 (d) by itself or through a subsidiary, buy, obtain an option upon, or otherwise acquire
2236 any interest in real or personal property:
2237 (i) in a project area; or
2238 (ii) outside a project area for [
2239 if the board considers the purchase, option, or other interest acquisition to be necessary for
2240 fulfilling the authority's development objectives;
2241 (e) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
2242 personal property;
2243 (f) enter into a lease agreement on real or personal property, either as lessee or lessor:
2244 (i) in a project area; or
2245 (ii) outside a project area, if the board considers the lease to be necessary for fulfilling
2246 the authority's development objectives;
2247 (g) provide for the development of land within a project area or military land
2248 associated with the project area under one or more contracts;
2249 (h) exercise powers and perform functions under a contract, as authorized in the
2250 contract;
2251 (i) exercise exclusive police power within a project area to the same extent as though
2252 the authority were a municipality, including the collection of regulatory fees;
2253 (j) receive the property tax allocation and other taxes and fees as provided in this
2254 chapter;
2255 (k) accept financial or other assistance from any public or private source for the
2256 authority's activities, powers, and duties, and expend any funds so received for any of the
2257 purposes of this chapter;
2258 (l) borrow money, contract with, or accept financial or other assistance from the federal
2259 government, a public entity, or any other source for any of the purposes of this chapter and
2260 comply with any conditions of the loan, contract, or assistance;
2261 (m) issue bonds to finance the undertaking of any development objectives of the
2262 authority, including bonds under Title 11, Chapter 17, Utah Industrial Facilities and
2263 Development Act, and bonds under Title 11, Chapter 42, Assessment Area Act;
2264 (n) hire employees, including contract employees;
2265 (o) transact other business and exercise all other powers provided for in this chapter;
2266 (p) enter into a development agreement with a developer of land within a project area;
2267 (q) enter into an agreement with a political subdivision of the state under which the
2268 political subdivision provides one or more municipal services within a project area;
2269 (r) enter into an agreement with a private contractor to provide one or more municipal
2270 services within a project area;
2271 (s) provide for or finance an energy efficiency upgrade, a renewable energy system, or
2272 electric vehicle charging infrastructure as defined in Section 11-42a-102, in accordance with
2273 Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act;
2274 (t) exercise powers and perform functions that the authority is authorized by statute to
2275 exercise or perform;
2276 (u) enter into an agreement with the federal government or an agency of the federal
2277 government under which the federal government or agency:
2278 (i) provides law enforcement services only to military land within a project area; and
2279 (ii) may enter into a mutual aid or other cooperative agreement with a law enforcement
2280 agency of the state or a political subdivision of the state; [
2281 (v) by itself or through a subsidiary, act as a facilitator under Title 63N, Chapter 13,
2282 Part 3, Facilitating Public-private Partnerships Act, to provide expertise and knowledge to
2283 another governmental entity interested in public-private partnerships[
2284 (w) enter into an intergovernmental support agreement under Title 10, U.S.C. Sec.
2285 2679 with the military to provide support services to the military in accordance with the
2286 agreement;
2287 (x) act as a developer, or assist a developer chosen by the military, to develop military
2288 land as part of an enhanced use lease under Title 10, U.S.C. Sec. 2667; and
2289 (y) develop public infrastructure and improvements.
2290 (4) The authority may not itself provide law enforcement service or fire protection
2291 service within a project area but may enter into an agreement for one or both of those services,
2292 as provided in Subsection (3)(q).
2293 (5) The authority shall provide support to a subsidiary that enters into an agreement
2294 under Subsection (3)(v) that the authority determines necessary for the subsidiary to fulfill the
2295 requirements of the agreement.
2296 [
2297 use by a military installation, including providing [
2298 improvements for use or occupancy by the military, are core functions of the authority and are
2299 typically provided by a local government for the local government's own needs or use, these
2300 services provided by the authority for the military under this chapter are considered to be for
2301 the authority's own needs and use.
2302 (7) A public infrastructure district created by the authority under Title 17B, Chapter 2a,
2303 Part 12, Public Infrastructure District Act, is a subsidiary of the authority.
2304 Section 11. Section 63H-1-202 is amended to read:
2305 63H-1-202. Applicability of other law.
2306 (1) As used in this section:
2307 (a) "Subsidiary" means an authority subsidiary that is a public body as defined in
2308 Section 52-4-103.
2309 (b) "Subsidiary board" means the governing body of a subsidiary.
2310 [
2311 (a) Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act;
2312 (b) Title 17, Chapter 27a, County Land Use, Development, and Management Act;
2313 (c) ordinances or regulations of a county or municipality, including those relating to
2314 land use, health, business license, or franchise; or
2315 (d) the jurisdiction of a local district under Title 17B, Limited Purpose Local
2316 Government Entities - Local Districts, or a special service district under Title 17D, Chapter 1,
2317 Special Service District Act.
2318 [
2319 63E-2-108, 63E-2-109, 63E-2-110, and 63E-2-111, but is not otherwise subject to or governed
2320 by Title 63E, Independent Entities Code.
2321 [
2322 (b) Notwithstanding the provisions of Title 57, Chapter 8, Condominium Ownership
2323 Act, or any other provision of law:
2324 (i) if the military is the owner of land in a project area on which a condominium project
2325 is constructed, the military is not required to sign, execute, or record a declaration of a
2326 condominium project; and
2327 (ii) if a condominium unit in a project area is owned by the military or owned by the
2328 authority and leased to the military for $1 or less per calendar year, not including any common
2329 charges that are reimbursements for actual expenses:
2330 (A) the condominium unit is not subject to any liens under Title 57, Chapter 8,
2331 Condominium Ownership Act;
2332 (B) condominium unit owners within the same building or commercial condominium
2333 project may agree on any method of allocation and payment of common area expenses,
2334 regardless of the size or par value of each unit; and
2335 (C) the condominium project may not be dissolved without the consent of all the
2336 condominium unit owners.
2337 [
2338 local government, the authority is the consenting entity for a project area.
2339 [
2340 subdivision of the state shall cooperate with the authority to the fullest extent possible to
2341 provide whatever support, information, or other assistance the authority requests that is
2342 reasonably necessary to help the authority fulfill the authority's duties and responsibilities
2343 under this chapter.
2344 (b) Subsection [
2345 any of a project area located within the boundary of the political subdivision.
2346 (7) The authority and a subsidiary are subject to Title 52, Chapter 4, Open and Public
2347 Meetings Act, except that:
2348 (a) notwithstanding Section 54-2-104, the timing and nature of training to authority
2349 board members or subsidiary board members on the requirements of Title 52, Chapter 4, Open
2350 and Public Meetings Act, may be determined by:
2351 (i) the board chair, for the authority board; or
2352 (ii) the subsidiary board chair, for a subsidiary board;
2353 (b) authority staff may adopt a rule governing the use of electronic meetings under
2354 Section 52-4-207, if, under Subsection 63H-1-301(3), the board delegates to authority staff the
2355 power to adopt the rule; and
2356 (c) for an electronic meeting of the authority board or subsidiary board that otherwise
2357 complies with Section 52-4-207, the authority board or subsidiary board, respectively:
2358 (i) is not required to establish an anchor location; and
2359 (ii) may convene and conduct the meeting without the written determination otherwise
2360 required under Subsection 52-4-207(4).
2361 (8) The authority and a subsidiary are subject to Title 63G, Chapter 2, Government
2362 Records Access and Management Act, except that:
2363 (a) notwithstanding Section 63G-2-701:
2364 (i) the authority may establish an appeals board consisting of at least three members;
2365 (ii) an appeals board established under Subsection (8)(a)(i) shall include:
2366 (A) one of the authority board members appointed by the governor;
2367 (B) the authority board member appointed by the president of the Senate; and
2368 (C) the authority board member appointed by the speaker of the House of
2369 Representatives; and
2370 (iii) an appeal of a decision of an appeals board is to district court, as provided in
2371 Section 63G-2-404, except that the State Records Committee is not a party; and
2372 (b) a record created or retained by the authority or a subsidiary acting in the role of a
2373 facilitator under Subsection 63H-1-201(3)(v) is a protected record under Title 63G, Chapter 2,
2374 Government Records Access and Management Act.
2375 (9) The authority or a subsidiary acting in the role of a facilitator under Subsection
2376 63H-1-201(3)(v) is not prohibited from receiving a benefit from a public-private partnership
2377 that results from the facilitator's work as a facilitator.
2378 (10) (a) (i) A subsidiary created as a public infrastructure district under Title 17B,
2379 Chapter 2a, Part 12, Public Infrastructure District Act, may, subject to limitations of Title 17B,
2380 Chapter 2a, Part 12, Public Infrastructure District Act, levy a property tax for the operations
2381 and maintenance of the public infrastructure district's financed infrastructure and related
2382 improvements, subject to a maximum rate of .015.
2383 (ii) A levy under Subsection (10)(a)(i) may be separate from a public infrastructure
2384 district property tax levy for a bond.
2385 (b) If a subsidiary created as a public infrastructure district issues a bond:
2386 (i) the subsidiary may:
2387 (A) delay the effective date of the property tax levy for the bond until after the period
2388 of capitalized interest payments; and
2389 (B) covenant with bondholders not to reduce or impair the property tax levy; and
2390 (ii) notwithstanding a provision to the contrary in Title 17B, Chapter 2a, Part 12,
2391 Public Infrastructure District Act, the tax rate for the property tax levy for the bond may not
2392 exceed a rate that generates more revenue than required to pay the annual debt service of the
2393 bond plus administrative costs, subject to a maximum of .02.
2394 Section 12. Section 63H-1-205 is amended to read:
2395 63H-1-205. MIDA accommodations tax.
2396 (1) As used in this section:
2397 (a) "Accommodations and services" means an accommodation or service described in
2398 Subsection 59-12-103(1)(i).
2399 (b) "Accommodations and services" does not include amounts paid or charged that are
2400 not part of a rental room rate.
2401 (2) By ordinance, the authority board may impose a MIDA accommodations tax on a
2402 provider for amounts paid or charged for accommodations and services, if the place of
2403 accommodation is located on:
2404 (a) authority-owned or other government-owned property within the project area; or
2405 (b) privately owned property on which the authority owns a condominium unit that is
2406 part of the place of accommodation.
2407 (3) The maximum rate of the MIDA accommodations tax is 15% of the amounts paid
2408 to or charged by the provider for accommodations and services.
2409 (4) A provider may recover an amount equal to the MIDA accommodations tax from
2410 customers, if the provider includes the amount as a separate billing line item.
2411 (5) If the authority imposes the tax described in this section, neither the authority nor a
2412 public entity may impose, on the amounts paid or charged for accommodations and services,
2413 any other tax described in:
2414 (a) Title 59, Chapter 12, Sales and Use Tax Act; or
2415 (b) Title 59, Chapter 28, State Transient Room Tax Act.
2416 (6) Except as provided in Subsection (7) or (8), the tax imposed under this section shall
2417 be administered, collected, and enforced in accordance with:
2418 (a) the same procedures used to administer, collect, and enforce the tax under:
2419 (i) Title 59, Chapter 12, Part 1, Tax Collection; or
2420 (ii) Title 59, Chapter 12, Part 2, Local Sales and Use Tax Act; and
2421 (b) Title 59, Chapter 1, General Taxation Policies.
2422 (7) The location of a transaction shall be determined in accordance with Sections
2423 59-12-211 through 59-12-215.
2424 (8) (a) A tax under this section is not subject to Section 59-12-107.1 or 59-12-123 or
2425 Subsections 59-12-205(2) through (5).
2426 (b) The exemptions described in Sections 59-12-104, 59-12-104.1, and 59-12-104.6 do
2427 not apply to a tax imposed under this section.
2428 (9) The State Tax Commission shall:
2429 (a) except as provided in Subsection (9)(b), distribute the revenue collected from the
2430 tax to the authority; and
2431 (b) retain and deposit an administrative charge in accordance with Section 59-1-306
2432 from revenue the commission collects from a tax under this section.
2433 (10) (a) If the authority imposes, repeals, or changes the rate of tax under this section,
2434 the implementation, repeal, or change shall take effect:
2435 (i) on the first day of a calendar quarter; and
2436 (ii) after a 90-day period beginning on the date the State Tax Commission receives the
2437 notice described in Subsection (10)(b) from the authority.
2438 (b) The notice required in Subsection (10)(a)(ii) shall state:
2439 (i) that the authority will impose, repeal, or change the rate of a tax under this section;
2440 (ii) the effective date of the implementation, repeal, or change of the tax; and
2441 (iii) the rate of the tax.
2442 (11) In addition to the uses permitted under Section 63H-1-502, the authority may
2443 allocate revenue from the MIDA accommodations tax to a county in which a place of
2444 accommodation that is subject to the MIDA accommodations tax is located, if:
2445 (a) the county had a transient room tax described in Section 59-12-301 in effect at the
2446 time the authority board imposed a MIDA accommodations tax by ordinance; and
2447 (b) the revenue replaces revenue that the county received from a county transient room
2448 tax described in Section 59-12-301 for the county's general operations and administrative
2449 expenses.
2450 Section 13. Section 63H-1-208 is enacted to read:
2451 63H-1-208. Former rail line.
2452 (1) A former rail line automatically becomes included within a project area located at
2453 an air force base if:
2454 (a) the authority acquires title to the former rail line; and
2455 (b) a portion of the former rail line is adjacent to the project area.
2456 (2) The authority may:
2457 (a) develop the former rail line; or
2458 (b) transfer title of all or part of the former rail line to another governmental entity or
2459 nonprofit entity.
2460 Section 14. Section 63H-1-301 is amended to read:
2461 63H-1-301. Authority board -- Delegation of power.
2462 (1) The authority shall be governed by a board which shall manage and conduct the
2463 business and affairs of the authority and shall determine all questions of authority policy.
2464 (2) All powers of the authority are exercised through the board.
2465 (3) The board may by resolution delegate powers to authority staff, including the power
2466 to adopt a rule governing the use of electronic meetings under Section 54-2-207.
2467 Section 15. Section 63H-1-403 is amended to read:
2468 63H-1-403. Notice of project area plan adoption -- Effective date of plan --
2469 Contesting the formation of the plan.
2470 (1) Upon the [
2471 provide notice as provided in Subsection (1)(b) by publishing or causing to be published legal
2472 notice:
2473 (a) in a newspaper of general circulation within or near the project area; and
2474 (b) as required by Section 45-1-101.
2475 (2) (a) Each notice under Subsection (1) shall include:
2476 (i) the board resolution adopting the project area plan or a summary of the resolution;
2477 [
2478 (ii) a statement that the project area plan is available for general public inspection [
2479
2480 (iii) an email address to which a person may send an email requesting an electronic
2481 copy of the project area plan.
2482 (b) The statement required under Subsection (2)(a)(ii) may be included in the board
2483 resolution or summary described in Subsection (2)(a)(i).
2484 (3) The project area plan becomes effective on the date designated in the board
2485 resolution adopting the project area plan.
2486 (4) The authority shall make the adopted project area plan available to the general
2487 public [
2488 (a) providing an electronic link to the project area plan on the authority's website, if the
2489 authority has a website; and
2490 (b) sending an email free of charge with an electronic copy of the project area plan to
2491 any person who submits an email to the authority at an email address identified in the notice
2492 under Subsection (2).
2493 (5) Within 10 days after the [
2494
2495 under which the boundary of a project area is modified, the authority shall send notice of the
2496 establishment or modification of the project area and an accurate map or plat of the project area
2497 to:
2498 (a) the State Tax Commission;
2499 (b) the Automated Geographic Reference Center created in Section 63F-1-506; and
2500 (c) the assessor and recorder of each county where the project area is located.
2501 (6) (a) A legal action or other challenge to a project area plan or a project area
2502 described in a project area plan is barred unless brought within 30 days after the effective date
2503 of the project area plan.
2504 (b) For a project area created before December 1, 2018, a legal action or other
2505 challenge is barred.
2506 (c) For a project area created after December 1, 2018, and before May 14, 2019, a legal
2507 action or other challenge is barred after July 1, 2019.
2508 Section 16. Section 63H-1-502 is amended to read:
2509 63H-1-502. Allowable uses of property tax allocation and other funds.
2510 (1) Other than municipal services revenue, the authority may use the property tax
2511 allocation and other funds available to the authority:
2512 (a) for any purpose authorized under this chapter;
2513 (b) for administrative, overhead, legal, and other operating expenses of the authority;
2514 (c) to pay for, including financing or refinancing, all or part of the development of land
2515 within the project area from which the property tax allocation or other funds were collected,
2516 including assisting the ongoing operation of a development or facility within the project area;
2517 (d) to pay the cost of the installation and construction of [
2518 infrastructure and improvements within the project area from which the property tax allocation
2519 funds were collected;
2520 (e) to pay the cost of the installation [
2521 infrastructure and improvements, including a passenger ropeway, as defined in Section
2522 72-11-102, outside the project area if:
2523 (i) the authority board determines by resolution that the infrastructure and
2524 improvements are of benefit to the project area; and
2525 (ii) for a passenger ropeway, at least one end of the ropeway is located within the
2526 project area;
2527 (f) to pay the principal and interest on bonds issued by the authority;
2528 (g) to pay for a morale, welfare, and recreation program of a United States Air Force
2529 base in Utah, affiliated with the project area from which the funds were collected; or
2530 (h) to pay for the promotion of:
2531 (i) a development within the project area; or
2532 (ii) amenities outside of the project area that are associated with a development within
2533 the project area.
2534 (2) The authority may use revenue generated from the authority's operation of [
2535
2536
2537 (a) operate and maintain the public infrastructure [
2538 (b) pay for authority operating expenses, including administrative, overhead, and legal
2539 expenses.
2540 (3) For purposes of Subsection (1), the authority may use:
2541 (a) tax revenue received under Subsection 59-12-205(2)(b)(ii);
2542 (b) resort communities tax revenue;
2543 (c) MIDA energy tax revenue, received under Section 63H-1-204, which does not have
2544 to be used in the project area where the revenue was generated;
2545 (d) MIDA accommodations tax revenue, received under Section 63H-1-205;
2546 (e) transient room tax revenue generated from hotels located on authority-owned or
2547 other public-entity-owned property;
2548 (f) municipal energy tax revenue generated from hotels located on authority-owned or
2549 other public-entity-owned property; or
2550 (g) payments received under Subsection 63H-1-501(4).
2551 (4) The determination of the authority board under Subsection (1)(e) regarding benefit
2552 to the project area is final.
2553 Section 17. Section 63H-1-703 is amended to read:
2554 63H-1-703. Authority report.
2555 (1) (a) On or before November 1 of each year, the authority shall prepare and file a
2556 report with the county auditor of each county in which a project area of the authority is located,
2557 the State Tax Commission, the State Board of Education, and each taxing entity that levies a
2558 tax on property from which the authority collects property tax allocation.
2559 (b) The requirement of Subsection (1)(a) to file a copy of the report with the state as a
2560 taxing entity is met if the authority files a copy with the State Tax Commission [
2561
2562 (2) Each report under Subsection (1) shall contain:
2563 (a) an estimate of the property tax allocation to be paid to the authority for the calendar
2564 year ending December 31; and
2565 (b) an estimate of the property tax allocation to be paid to the authority for the calendar
2566 year beginning the next January 1.
2567 Section 18. Section 63N-13-303 is amended to read:
2568 63N-13-303. Contract with facilitator.
2569 (1) Within legislative appropriations, the office shall enter into a contract with a
2570 nonprofit entity or government entity to act as a facilitator.
2571 (2) The office shall use a request for proposals process under Title 63G, Chapter 6a,
2572 Utah Procurement Code, to select a qualified person to act as facilitator.
2573 (3) The term of a contract under Subsection (1) may not exceed three years.
2574 (4) [
2575 the contract with the facilitator includes a conflict-of-interest provision prohibiting the
2576 facilitator, or a principal, officer, or employee of the facilitator, from receiving a direct or
2577 indirect financial benefit from any public-private partnership that results from the facilitator's
2578 work under the contract.
2579 Section 19. Effective date.
2580 If approved by two-thirds of all the members elected to each house, this bill takes effect
2581 upon approval by the governor, or the day following the constitutional time limit of Utah
2582 Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
2583 the date of veto override.