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7 LONG TITLE
8 General Description:
9 This bill reduces the sales and use tax imposed on amounts paid or charged for food and
10 food ingredients.
11 Highlighted Provisions:
12 This bill:
13 ▸ removes the state sales and use tax imposed on amounts paid or charged for food
14 and food ingredients;
15 ▸ excludes candy from the definition of food and food ingredients; and
16 ▸ makes technical and conforming changes.
17 Money Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 This bill provides a special effective date.
21 Utah Code Sections Affected:
22 AMENDS:
23 11-41-102, as last amended by Laws of Utah 2021, Chapter 367
24 59-12-102, as last amended by Laws of Utah 2021, Chapters 64, 367, 414 and last
25 amended by Coordination Clause, Laws of Utah 2021, Chapter 367
26 59-12-103, as last amended by Laws of Utah 2021, Chapters 367, 387, and 411
27 59-12-108, as last amended by Laws of Utah 2020, Chapters 294 and 407
28 63N-7-301, as last amended by Laws of Utah 2020, Chapter 154
29
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 11-41-102 is amended to read:
32 11-41-102. Definitions.
33 As used in this chapter:
34 (1) "Agreement" means an oral or written agreement between a:
35 (a) (i) county; or
36 (ii) municipality; and
37 (b) person.
38 (2) "Municipality" means a:
39 (a) city;
40 (b) town; or
41 (c) metro township.
42 (3) "Payment" includes:
43 (a) a payment;
44 (b) a rebate;
45 (c) a refund; or
46 (d) an amount similar to Subsections (3)(a) through (c).
47 (4) "Regional retail business" means a:
48 (a) retail business that occupies a floor area of more than 80,000 square feet;
49 (b) dealer as defined in Section 41-1a-102;
50 (c) retail shopping facility that has at least two anchor tenants if the total number of
51 anchor tenants in the shopping facility occupy a total floor area of more than 150,000 square
52 feet; or
53 (d) grocery store that occupies a floor area of more than 30,000 square feet.
54 (5) (a) "Sales and use tax" means a tax:
55 (i) imposed on transactions within a:
56 (A) county; or
57 (B) municipality; and
58 (ii) except as provided in Subsection (5)(b), authorized under Title 59, Chapter 12,
59 Sales and Use Tax Act.
60 (b) "Sales and use tax" does not include a tax authorized under:
61 (i) Subsection 59-12-103(2)(a)(i);
62 (ii) Subsection 59-12-103(2)(b)(i);
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71 (6) (a) "Sales and use tax incentive payment" means a payment of revenues:
72 (i) to a person;
73 (ii) by a:
74 (A) county; or
75 (B) municipality;
76 (iii) to induce the person to locate or relocate a regional retail business within the:
77 (A) county; or
78 (B) municipality; and
79 (iv) that are derived from a sales and use tax.
80 (b) "Sales and use tax incentive payment" does not include funding for public
81 infrastructure.
82 Section 2. Section 59-12-102 is amended to read:
83 59-12-102. Definitions.
84 As used in this chapter:
85 (1) "800 service" means a telecommunications service that:
86 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
87 (b) is typically marketed:
88 (i) under the name 800 toll-free calling;
89 (ii) under the name 855 toll-free calling;
90 (iii) under the name 866 toll-free calling;
91 (iv) under the name 877 toll-free calling;
92 (v) under the name 888 toll-free calling; or
93 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
94 Federal Communications Commission.
95 (2) (a) "900 service" means an inbound toll telecommunications service that:
96 (i) a subscriber purchases;
97 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
98 the subscriber's:
99 (A) prerecorded announcement; or
100 (B) live service; and
101 (iii) is typically marketed:
102 (A) under the name 900 service; or
103 (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
104 Communications Commission.
105 (b) "900 service" does not include a charge for:
106 (i) a collection service a seller of a telecommunications service provides to a
107 subscriber; or
108 (ii) the following a subscriber sells to the subscriber's customer:
109 (A) a product; or
110 (B) a service.
111 (3) (a) "Admission or user fees" includes season passes.
112 (b) "Admission or user fees" does not include:
113 (i) annual membership dues to private organizations; or
114 (ii) a lesson, including a lesson that involves as part of the lesson equipment or a
115 facility listed in Subsection 59-12-103(1)(f).
116 (4) "Affiliate" or "affiliated person" means a person that, with respect to another
117 person:
118 (a) has an ownership interest of more than 5%, whether direct or indirect, in that other
119 person; or
120 (b) is related to the other person because a third person, or a group of third persons who
121 are affiliated persons with respect to each other, holds an ownership interest of more than 5%,
122 whether direct or indirect, in the related persons.
123 (5) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
124 November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
125 Agreement after November 12, 2002.
126 (6) "Agreement combined tax rate" means the sum of the tax rates:
127 (a) listed under Subsection (7); and
128 (b) that are imposed within a local taxing jurisdiction.
129 (7) "Agreement sales and use tax" means a tax imposed under:
130 (a) Subsection 59-12-103(2)(a)(i)(A);
131 (b) Subsection 59-12-103(2)(b)(i);
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156 (8) "Aircraft" means the same as that term is defined in Section 72-10-102.
157 (9) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
158 (a) except for:
159 (i) an airline as defined in Section 59-2-102; or
160 (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
161 includes a corporation that is qualified to do business but is not otherwise doing business in the
162 state, of an airline; and
163 (b) that has the workers, expertise, and facilities to perform the following, regardless of
164 whether the business entity performs the following in this state:
165 (i) check, diagnose, overhaul, and repair:
166 (A) an onboard system of a fixed wing turbine powered aircraft; and
167 (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
168 (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
169 engine;
170 (iii) perform at least the following maintenance on a fixed wing turbine powered
171 aircraft:
172 (A) an inspection;
173 (B) a repair, including a structural repair or modification;
174 (C) changing landing gear; and
175 (D) addressing issues related to an aging fixed wing turbine powered aircraft;
176 (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
177 completely apply new paint to the fixed wing turbine powered aircraft; and
178 (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
179 results in a change in the fixed wing turbine powered aircraft's certification requirements by the
180 authority that certifies the fixed wing turbine powered aircraft.
181 (10) "Alcoholic beverage" means a beverage that:
182 (a) is suitable for human consumption; and
183 (b) contains .5% or more alcohol by volume.
184 (11) "Alternative energy" means:
185 (a) biomass energy;
186 (b) geothermal energy;
187 (c) hydroelectric energy;
188 (d) solar energy;
189 (e) wind energy; or
190 (f) energy that is derived from:
191 (i) coal-to-liquids;
192 (ii) nuclear fuel;
193 (iii) oil-impregnated diatomaceous earth;
194 (iv) oil sands;
195 (v) oil shale;
196 (vi) petroleum coke; or
197 (vii) waste heat from:
198 (A) an industrial facility; or
199 (B) a power station in which an electric generator is driven through a process in which
200 water is heated, turns into steam, and spins a steam turbine.
201 (12) (a) Subject to Subsection (12)(b), "alternative energy electricity production
202 facility" means a facility that:
203 (i) uses alternative energy to produce electricity; and
204 (ii) has a production capacity of two megawatts or greater.
205 (b) A facility is an alternative energy electricity production facility regardless of
206 whether the facility is:
207 (i) connected to an electric grid; or
208 (ii) located on the premises of an electricity consumer.
209 (13) (a) "Ancillary service" means a service associated with, or incidental to, the
210 provision of telecommunications service.
211 (b) "Ancillary service" includes:
212 (i) a conference bridging service;
213 (ii) a detailed communications billing service;
214 (iii) directory assistance;
215 (iv) a vertical service; or
216 (v) a voice mail service.
217 (14) "Area agency on aging" means the same as that term is defined in Section
218 62A-3-101.
219 (15) "Assisted amusement device" means an amusement device, skill device, or ride
220 device that is started and stopped by an individual:
221 (a) who is not the purchaser or renter of the right to use or operate the amusement
222 device, skill device, or ride device; and
223 (b) at the direction of the seller of the right to use the amusement device, skill device,
224 or ride device.
225 (16) "Assisted cleaning or washing of tangible personal property" means cleaning or
226 washing of tangible personal property if the cleaning or washing labor is primarily performed
227 by an individual:
228 (a) who is not the purchaser of the cleaning or washing of the tangible personal
229 property; and
230 (b) at the direction of the seller of the cleaning or washing of the tangible personal
231 property.
232 (17) "Authorized carrier" means:
233 (a) in the case of vehicles operated over public highways, the holder of credentials
234 indicating that the vehicle is or will be operated pursuant to both the International Registration
235 Plan and the International Fuel Tax Agreement;
236 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
237 certificate or air carrier's operating certificate; or
238 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
239 stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
240 stock in more than one state.
241 (18) (a) [
242 any of the following that is used as the primary source of energy to produce fuel or electricity:
243 (i) material from a plant or tree; or
244 (ii) other organic matter that is available on a renewable basis, including:
245 (A) slash and brush from forests and woodlands;
246 (B) animal waste;
247 (C) waste vegetable oil;
248 (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
249 wastewater residuals, or through the conversion of a waste material through a nonincineration,
250 thermal conversion process;
251 (E) aquatic plants; and
252 (F) agricultural products.
253 (b) "Biomass energy" does not include:
254 (i) black liquor; or
255 (ii) treated woods.
256 (19) (a) "Bundled transaction" means the sale of two or more items of tangible personal
257 property, products, or services if the tangible personal property, products, or services are:
258 (i) distinct and identifiable; and
259 (ii) sold for one nonitemized price.
260 (b) "Bundled transaction" does not include:
261 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
262 the basis of the selection by the purchaser of the items of tangible personal property included in
263 the transaction;
264 (ii) the sale of real property;
265 (iii) the sale of services to real property;
266 (iv) the retail sale of tangible personal property and a service if:
267 (A) the tangible personal property:
268 (I) is essential to the use of the service; and
269 (II) is provided exclusively in connection with the service; and
270 (B) the service is the true object of the transaction;
271 (v) the retail sale of two services if:
272 (A) one service is provided that is essential to the use or receipt of a second service;
273 (B) the first service is provided exclusively in connection with the second service; and
274 (C) the second service is the true object of the transaction;
275 (vi) a transaction that includes tangible personal property or a product subject to
276 taxation under this chapter and tangible personal property or a product that is not subject to
277 taxation under this chapter if the:
278 (A) seller's purchase price of the tangible personal property or product subject to
279 taxation under this chapter is de minimis; or
280 (B) seller's sales price of the tangible personal property or product subject to taxation
281 under this chapter is de minimis; and
282 (vii) the retail sale of tangible personal property that is not subject to taxation under
283 this chapter and tangible personal property that is subject to taxation under this chapter if:
284 (A) that retail sale includes:
285 (I) food and food ingredients;
286 (II) a drug;
287 (III) durable medical equipment;
288 (IV) mobility enhancing equipment;
289 (V) an over-the-counter drug;
290 (VI) a prosthetic device; or
291 (VII) a medical supply; and
292 (B) subject to Subsection (19)(f):
293 (I) the seller's purchase price of the tangible personal property subject to taxation under
294 this chapter is 50% or less of the seller's total purchase price of that retail sale; or
295 (II) the seller's sales price of the tangible personal property subject to taxation under
296 this chapter is 50% or less of the seller's total sales price of that retail sale.
297 (c) (i) For purposes of Subsection (19)(a)(i), tangible personal property, a product, or a
298 service that is distinct and identifiable does not include:
299 (A) packaging that:
300 (I) accompanies the sale of the tangible personal property, product, or service; and
301 (II) is incidental or immaterial to the sale of the tangible personal property, product, or
302 service;
303 (B) tangible personal property, a product, or a service provided free of charge with the
304 purchase of another item of tangible personal property, a product, or a service; or
305 (C) an item of tangible personal property, a product, or a service included in the
306 definition of "purchase price."
307 (ii) For purposes of Subsection (19)(c)(i)(B), an item of tangible personal property, a
308 product, or a service is provided free of charge with the purchase of another item of tangible
309 personal property, a product, or a service if the sales price of the purchased item of tangible
310 personal property, product, or service does not vary depending on the inclusion of the tangible
311 personal property, product, or service provided free of charge.
312 (d) (i) For purposes of Subsection (19)(a)(ii), property sold for one nonitemized price
313 does not include a price that is separately identified by tangible personal property, product, or
314 service on the following, regardless of whether the following is in paper format or electronic
315 format:
316 (A) a binding sales document; or
317 (B) another supporting sales-related document that is available to a purchaser.
318 (ii) For purposes of Subsection (19)(d)(i), a binding sales document or another
319 supporting sales-related document that is available to a purchaser includes:
320 (A) a bill of sale;
321 (B) a contract;
322 (C) an invoice;
323 (D) a lease agreement;
324 (E) a periodic notice of rates and services;
325 (F) a price list;
326 (G) a rate card;
327 (H) a receipt; or
328 (I) a service agreement.
329 (e) (i) For purposes of Subsection (19)(b)(vi), the sales price of tangible personal
330 property or a product subject to taxation under this chapter is de minimis if:
331 (A) the seller's purchase price of the tangible personal property or product is 10% or
332 less of the seller's total purchase price of the bundled transaction; or
333 (B) the seller's sales price of the tangible personal property or product is 10% or less of
334 the seller's total sales price of the bundled transaction.
335 (ii) For purposes of Subsection (19)(b)(vi), a seller:
336 (A) shall use the seller's purchase price or the seller's sales price to determine if the
337 purchase price or sales price of the tangible personal property or product subject to taxation
338 under this chapter is de minimis; and
339 (B) may not use a combination of the seller's purchase price and the seller's sales price
340 to determine if the purchase price or sales price of the tangible personal property or product
341 subject to taxation under this chapter is de minimis.
342 (iii) For purposes of Subsection (19)(b)(vi), a seller shall use the full term of a service
343 contract to determine if the sales price of tangible personal property or a product is de minimis.
344 (f) For purposes of Subsection (19)(b)(vii)(B), a seller may not use a combination of
345 the seller's purchase price and the seller's sales price to determine if tangible personal property
346 subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
347 price of that retail sale.
348 (20) (a) "Candy" means a preparation of sugar, honey, or other natural or artificial
349 sweetener in combination with chocolate, fruit, nuts, or other ingredients or flavorings in the
350 form of bars, drops, or pieces.
351 (b) "Candy" does not include a preparation that:
352 (i) contains flour; or
353 (ii) requires refrigeration.
354 [
355 board of the agreement that:
356 (a) calculates the agreement sales and use tax imposed within a local taxing
357 jurisdiction:
358 (i) on a transaction; and
359 (ii) in the states that are members of the agreement;
360 (b) determines the amount of agreement sales and use tax to remit to a state that is a
361 member of the agreement; and
362 (c) maintains a record of the transaction described in Subsection [
363 [
364 (a) by the governing board of the agreement; and
365 (b) to perform a seller's sales and use tax functions for an agreement sales and use tax,
366 as outlined in the contract between the governing board of the agreement and the certified
367 service provider, other than the seller's obligation under Section 59-12-124 to remit a tax on the
368 seller's own purchases.
369 [
370 wearing apparel suitable for general use.
371 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
372 commission shall make rules:
373 (i) listing the items that constitute "clothing"; and
374 (ii) that are consistent with the list of items that constitute "clothing" under the
375 agreement.
376 [
377 fuel.
378 [
379 other fuels that does not constitute industrial use under Subsection [
380 under Subsection [
381 [
382 business of transporting passengers, freight, merchandise, or other property for hire within this
383 state.
384 (b) (i) "Common carrier" does not include a person that, at the time the person is
385 traveling to or from that person's place of employment, transports a passenger to or from the
386 passenger's place of employment.
387 (ii) For purposes of Subsection [
388 3, Utah Administrative Rulemaking Act, the commission may make rules defining what
389 constitutes a person's place of employment.
390 (c) "Common carrier" does not include a person that provides transportation network
391 services, as defined in Section 13-51-102.
392 [
393 (a) poultry, dairy, and other livestock feed, and their components;
394 (b) baling ties and twine used in the baling of hay and straw;
395 (c) fuel used for providing temperature control of orchards and commercial
396 greenhouses doing a majority of their business in wholesale sales, and for providing power for
397 off-highway type farm machinery; and
398 (d) feed, seeds, and seedlings.
399 [
400 (a) (i) in digital form; or
401 (ii) in a form similar to digital form; and
402 (b) manipulates that information for a result based on a sequence of instructions.
403 [
404 (a) a computer to perform a task; or
405 (b) automatic data processing equipment to perform a task.
406 [
407 seller of computer software to provide a customer with:
408 (a) future updates or upgrades to computer software;
409 (b) support services with respect to computer software; or
410 (c) a combination of Subsections [
411 [
412 or more participants of an audio conference call or video conference call.
413 (b) "Conference bridging service" may include providing a telephone number as part of
414 the ancillary service described in Subsection [
415 (c) "Conference bridging service" does not include a telecommunications service used
416 to reach the ancillary service described in Subsection [
417 [
418 converted into real property.
419 [
420 than tangible storage media.
421 [
422 (i) by a seller of:
423 (A) tangible personal property;
424 (B) a product transferred electronically; or
425 (C) a service; and
426 (ii) for preparation and delivery of the tangible personal property, product transferred
427 electronically, or services described in Subsection [
428 the purchaser.
429 (b) "Delivery charge" includes a charge for the following:
430 (i) transportation;
431 (ii) shipping;
432 (iii) postage;
433 (iv) handling;
434 (v) crating; or
435 (vi) packing.
436 [
437 separately stating information pertaining to individual calls on a customer's billing statement.
438 [
439 (a) is intended to supplement the diet;
440 (b) contains one or more of the following dietary ingredients:
441 (i) a vitamin;
442 (ii) a mineral;
443 (iii) an herb or other botanical;
444 (iv) an amino acid;
445 (v) a dietary substance for use by humans to supplement the diet by increasing the total
446 dietary intake; or
447 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
448 described in Subsections [
449 (c) (i) [
450 (A) tablet form;
451 (B) capsule form;
452 (C) powder form;
453 (D) softgel form;
454 (E) gelcap form; or
455 (F) liquid form; or
456 (ii) if the product is not intended for ingestion in a form described in Subsections [
457 (36)(c)(i)(A) through (F), is not represented:
458 (A) as conventional food; and
459 (B) for use as a sole item of:
460 (I) a meal; or
461 (II) the diet; and
462 (d) is required to be labeled as a dietary supplement:
463 (i) identifiable by the "Supplemental Facts" box found on the label; and
464 (ii) as required by 21 C.F.R. Sec. 101.36.
465 [
466 series of musical, spoken, or other sounds.
467 (b) "Digital audio work" includes a ringtone.
468 [
469 shown in succession, imparts an impression of motion, together with accompanying sounds, if
470 any.
471 [
472 and usual sense as a book.
473 [
474 States mail or other delivery service:
475 (i) to:
476 (A) a mass audience; or
477 (B) addressees on a mailing list provided:
478 (I) by a purchaser of the mailing list; or
479 (II) at the discretion of the purchaser of the mailing list; and
480 (ii) if the cost of the printed material is not billed directly to the recipients.
481 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
482 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
483 (c) "Direct mail" does not include multiple items of printed material delivered to a
484 single address.
485 [
486 (a) address information; or
487 (b) telephone number information.
488 [
489 equipment or supplies that:
490 (i) cannot withstand repeated use; and
491 (ii) are purchased by, for, or on behalf of a person other than:
492 (A) a health care facility as defined in Section 26-21-2;
493 (B) a health care provider as defined in Section 78B-3-403;
494 (C) an office of a health care provider described in Subsection [
495 (D) a person similar to a person described in Subsections [
496 (C).
497 (b) "Disposable home medical equipment or supplies" does not include:
498 (i) a drug;
499 (ii) durable medical equipment;
500 (iii) a hearing aid;
501 (iv) a hearing aid accessory;
502 (v) mobility enhancing equipment; or
503 (vi) tangible personal property used to correct impaired vision, including:
504 (A) eyeglasses; or
505 (B) contact lenses.
506 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
507 commission may by rule define what constitutes medical equipment or supplies.
508 [
509 (a) located in the state;
510 (b) with respect to which 51% or more of the manufacturing activities of the facility
511 consist of manufacturing component parts of drilling equipment;
512 (c) that uses pressure of 800,000 or more pounds per square inch as part of the
513 manufacturing process; and
514 (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
515 manufacturing process.
516 [
517 a compound, substance, or preparation that is:
518 (i) recognized in:
519 (A) the official United States Pharmacopoeia;
520 (B) the official Homeopathic Pharmacopoeia of the United States;
521 (C) the official National Formulary; or
522 (D) a supplement to a publication listed in Subsections [
523 (C);
524 (ii) intended for use in the:
525 (A) diagnosis of disease;
526 (B) cure of disease;
527 (C) mitigation of disease;
528 (D) treatment of disease; or
529 (E) prevention of disease; or
530 (iii) intended to affect:
531 (A) the structure of the body; or
532 (B) any function of the body.
533 (b) "Drug" does not include:
534 (i) food and food ingredients;
535 (ii) a dietary supplement;
536 (iii) an alcoholic beverage; or
537 (iv) a prosthetic device.
538 [
539 equipment" means equipment that:
540 (i) can withstand repeated use;
541 (ii) is primarily and customarily used to serve a medical purpose;
542 (iii) generally is not useful to a person in the absence of illness or injury; and
543 (iv) is not worn in or on the body.
544 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
545 equipment described in Subsection [
546 (c) "Durable medical equipment" does not include mobility enhancing equipment.
547 [
548 (a) relating to technology; and
549 (b) having:
550 (i) electrical capabilities;
551 (ii) digital capabilities;
552 (iii) magnetic capabilities;
553 (iv) wireless capabilities;
554 (v) optical capabilities;
555 (vi) electromagnetic capabilities; or
556 (vii) capabilities similar to Subsections [
557 [
558 (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
559 Clearinghouse Activities, of the 2012 North American Industry Classification System of the
560 federal Executive Office of the President, Office of Management and Budget; and
561 (b) that performs electronic financial payment services.
562 [
563 [
564 (a) rail for the use of public transit; or
565 (b) a separate right-of-way for the use of public transit.
566 [
567 (a) is powered by turbine engines;
568 (b) operates on jet fuel; and
569 (c) has wings that are permanently attached to the fuselage of the aircraft.
570 [
571 radio communication between fixed points.
572 [
573 (i) regardless of whether the substances are in:
574 (A) liquid form;
575 (B) concentrated form;
576 (C) solid form;
577 (D) frozen form;
578 (E) dried form; or
579 (F) dehydrated form; and
580 (ii) that are:
581 (A) sold for:
582 (I) ingestion by humans; or
583 (II) chewing by humans; and
584 (B) consumed for the substance's:
585 (I) taste; or
586 (II) nutritional value.
587 (b) "Food and food ingredients" includes an item described in Subsection [
588 (97)(b)(iii).
589 (c) "Food and food ingredients" does not include:
590 (i) an alcoholic beverage;
591 (ii) tobacco; [
592 (iii) prepared food[
593 (iv) candy.
594 [
595 (i) (A) made by a school; or
596 (B) made by a school student;
597 (ii) that are for the purpose of raising funds for the school to purchase equipment,
598 materials, or provide transportation; and
599 (iii) that are part of an officially sanctioned school activity.
600 (b) For purposes of Subsection [
601 means a school activity:
602 (i) that is conducted in accordance with a formal policy adopted by the school or school
603 district governing the authorization and supervision of fundraising activities;
604 (ii) that does not directly or indirectly compensate an individual teacher or other
605 educational personnel by direct payment, commissions, or payment in kind; and
606 (iii) the net or gross revenues from which are deposited in a dedicated account
607 controlled by the school or school district.
608 [
609 flows outward from the earth that is used as the sole source of energy to produce electricity.
610 [
611 agreement that is:
612 (a) authorized to administer the agreement; and
613 (b) established in accordance with the agreement.
614 [
615 means:
616 (i) the executive branch of the state, including all departments, institutions, boards,
617 divisions, bureaus, offices, commissions, and committees;
618 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
619 Administrative Office of the Courts, and similar administrative units in the judicial branch;
620 (iii) the legislative branch of the state, including the House of Representatives, the
621 Senate, the Legislative Printing Office, the Office of Legislative Research and General
622 Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
623 Analyst;
624 (iv) the National Guard;
625 (v) an independent entity as defined in Section 63E-1-102; or
626 (vi) a political subdivision as defined in Section 17B-1-102.
627 (b) "Governmental entity" does not include the state systems of public and higher
628 education, including:
629 (i) a school;
630 (ii) the State Board of Education;
631 (iii) the Utah Board of Higher Education; or
632 (iv) an institution of higher education described in Section 53B-1-102.
633 [
634 produce electricity.
635 [
636 or other fuels:
637 (a) in mining or extraction of minerals;
638 (b) in agricultural operations to produce an agricultural product up to the time of
639 harvest or placing the agricultural product into a storage facility, including:
640 (i) commercial greenhouses;
641 (ii) irrigation pumps;
642 (iii) farm machinery;
643 (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
644 under Title 41, Chapter 1a, Part 2, Registration; and
645 (v) other farming activities;
646 (c) in manufacturing tangible personal property at an establishment described in:
647 (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
648 the federal Executive Office of the President, Office of Management and Budget; or
649 (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
650 American Industry Classification System of the federal Executive Office of the President,
651 Office of Management and Budget;
652 (d) by a scrap recycler if:
653 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
654 one or more of the following items into prepared grades of processed materials for use in new
655 products:
656 (A) iron;
657 (B) steel;
658 (C) nonferrous metal;
659 (D) paper;
660 (E) glass;
661 (F) plastic;
662 (G) textile; or
663 (H) rubber; and
664 (ii) the new products under Subsection [
665 nonrecycled materials; or
666 (e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
667 cogeneration facility as defined in Section 54-2-1.
668 [
669 charge" means a charge for installing:
670 (i) tangible personal property; or
671 (ii) a product transferred electronically.
672 (b) "Installation charge" does not include a charge for:
673 (i) repairs or renovations of:
674 (A) tangible personal property; or
675 (B) a product transferred electronically; or
676 (ii) attaching tangible personal property or a product transferred electronically:
677 (A) to other tangible personal property; and
678 (B) as part of a manufacturing or fabrication process.
679 [
680 listed in Section 53B-2-101.
681 [
682 personal property or a product transferred electronically for:
683 (i) (A) a fixed term; or
684 (B) an indeterminate term; and
685 (ii) consideration.
686 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
687 amount of consideration may be increased or decreased by reference to the amount realized
688 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
689 Code.
690 (c) "Lease" or "rental" does not include:
691 (i) a transfer of possession or control of property under a security agreement or
692 deferred payment plan that requires the transfer of title upon completion of the required
693 payments;
694 (ii) a transfer of possession or control of property under an agreement that requires the
695 transfer of title:
696 (A) upon completion of required payments; and
697 (B) if the payment of an option price does not exceed the greater of:
698 (I) $100; or
699 (II) 1% of the total required payments; or
700 (iii) providing tangible personal property along with an operator for a fixed period of
701 time or an indeterminate period of time if the operator is necessary for equipment to perform as
702 designed.
703 (d) For purposes of Subsection [
704 equipment to perform as designed if the operator's duties exceed the:
705 (i) set-up of tangible personal property;
706 (ii) maintenance of tangible personal property; or
707 (iii) inspection of tangible personal property.
708 [
709 instructor:
710 (a) is present with a student in person or by video; and
711 (b) actively instructs the student, including by providing observation or feedback.
712 [
713 classified under the following NAICS codes of the 2007 North American Industry
714 Classification System of the federal Executive Office of the President, Office of Management
715 and Budget:
716 (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
717 (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
718 Manufacturing; or
719 (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
720 [
721 leased, or rented by a life science establishment if research and development is performed in
722 51% or more of the total area of the facility.
723 [
724 media if the tangible storage media is not physically transferred to the purchaser.
725 [
726 (a) county that is authorized to impose an agreement sales and use tax;
727 (b) city that is authorized to impose an agreement sales and use tax; or
728 (c) town that is authorized to impose an agreement sales and use tax.
729 [
730 15A-1-302.
731 [
732 (a) an establishment described in:
733 (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
734 the federal Executive Office of the President, Office of Management and Budget; or
735 (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
736 American Industry Classification System of the federal Executive Office of the President,
737 Office of Management and Budget;
738 (b) a scrap recycler if:
739 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
740 one or more of the following items into prepared grades of processed materials for use in new
741 products:
742 (A) iron;
743 (B) steel;
744 (C) nonferrous metal;
745 (D) paper;
746 (E) glass;
747 (F) plastic;
748 (G) textile; or
749 (H) rubber; and
750 (ii) the new products under Subsection [
751 nonrecycled materials; or
752 (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
753 placed in service on or after May 1, 2006.
754 [
755 where tangible personal property, a product transferred electronically, or a service is offered for
756 sale.
757 (b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a
758 dedicated sales software application.
759 [
760 person, that enters into a contract, an agreement, or otherwise with sellers, for consideration, to
761 facilitate the sale of a seller's product through a marketplace that the person owns, operates, or
762 controls and that directly or indirectly:
763 (i) does any of the following:
764 (A) lists, makes available, or advertises tangible personal property, a product
765 transferred electronically, or a service for sale by a marketplace seller on a marketplace that the
766 person owns, operates, or controls;
767 (B) facilitates the sale of a marketplace seller's tangible personal property, product
768 transferred electronically, or service by transmitting or otherwise communicating an offer or
769 acceptance of a retail sale between the marketplace seller and a purchaser using the
770 marketplace;
771 (C) owns, rents, licenses, makes available, or operates any electronic or physical
772 infrastructure or any property, process, method, copyright, trademark, or patent that connects a
773 marketplace seller to a purchaser for the purpose of making a retail sale of tangible personal
774 property, a product transferred electronically, or a service;
775 (D) provides a marketplace for making, or otherwise facilitates, a retail sale of tangible
776 personal property, a product transferred electronically, or a service, regardless of ownership or
777 control of the tangible personal property, the product transferred electronically, or the service
778 that is the subject of the retail sale;
779 (E) provides software development or research and development activities related to
780 any activity described in this Subsection [
781 research and development activity is directly related to the person's marketplace;
782 (F) provides or offers fulfillment or storage services for a marketplace seller;
783 (G) sets prices for the sale of tangible personal property, a product transferred
784 electronically, or a service by a marketplace seller;
785 (H) provides or offers customer service to a marketplace seller or a marketplace seller's
786 purchaser or accepts or assists with taking orders, returns, or exchanges of tangible personal
787 property, a product transferred electronically, or a service sold by a marketplace seller on the
788 person's marketplace; or
789 (I) brands or otherwise identifies sales as those of the person; and
790 (ii) does any of the following:
791 (A) collects the sales price or purchase price of a retail sale of tangible personal
792 property, a product transferred electronically, or a service;
793 (B) provides payment processing services for a retail sale of tangible personal property,
794 a product transferred electronically, or a service;
795 (C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee, closing
796 fee, a fee for inserting or making available tangible personal property, a product transferred
797 electronically, or a service on the person's marketplace, or other consideration for the
798 facilitation of a retail sale of tangible personal property, a product transferred electronically, or
799 a service, regardless of ownership or control of the tangible personal property, the product
800 transferred electronically, or the service that is the subject of the retail sale;
801 (D) through terms and conditions, an agreement, or another arrangement with a third
802 person, collects payment from a purchase for a retail sale of tangible personal property, a
803 product transferred electronically, or a service and transmits that payment to the marketplace
804 seller, regardless of whether the third person receives compensation or other consideration in
805 exchange for the service; or
806 (E) provides a virtual currency for a purchaser to use to purchase tangible personal
807 property, a product transferred electronically, or service offered for sale.
808 (b) "Marketplace facilitator" does not include:
809 (i) a person that only provides payment processing services; or
810 (ii) a person described in Subsection [
811 facilitating a sale for a seller that is a restaurant as defined in Section 59-12-602.
812 [
813 through a marketplace that a marketplace facilitator owns, operates, or controls, regardless of
814 whether the seller is required to be registered to collect and remit the tax under this part.
815 [
816 related to a producer described in Subsection 59-12-104(20)(a) as a:
817 (a) child or stepchild, regardless of whether the child or stepchild is:
818 (i) an adopted child or adopted stepchild; or
819 (ii) a foster child or foster stepchild;
820 (b) grandchild or stepgrandchild;
821 (c) grandparent or stepgrandparent;
822 (d) nephew or stepnephew;
823 (e) niece or stepniece;
824 (f) parent or stepparent;
825 (g) sibling or stepsibling;
826 (h) spouse;
827 (i) person who is the spouse of a person described in Subsections [
828 (g); or
829 (j) person similar to a person described in Subsections [
830 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
831 Administrative Rulemaking Act.
832 [
833 15A-1-302.
834 [
835 defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
836 [
837 regardless of the technology used, if:
838 (i) the origination point of the conveyance, routing, or transmission is not fixed;
839 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
840 (iii) the origination point described in Subsection [
841 point described in Subsection [
842 (b) "Mobile wireless service" includes a telecommunications service that is provided
843 by a commercial mobile radio service provider.
844 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
845 commission may by rule define "commercial mobile radio service provider."
846 [
847 enhancing equipment" means equipment that is:
848 (i) primarily and customarily used to provide or increase the ability to move from one
849 place to another;
850 (ii) appropriate for use in a:
851 (A) home; or
852 (B) motor vehicle; and
853 (iii) not generally used by persons with normal mobility.
854 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
855 the equipment described in Subsection [
856 (c) "Mobility enhancing equipment" does not include:
857 (i) a motor vehicle;
858 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
859 vehicle manufacturer;
860 (iii) durable medical equipment; or
861 (iv) a prosthetic device.
862 [
863 selected a certified service provider as the seller's agent to perform the seller's sales and use tax
864 functions for agreement sales and use taxes, as outlined in the contract between the governing
865 board of the agreement and the certified service provider, other than the seller's obligation
866 under Section 59-12-124 to remit a tax on the seller's own purchases.
867 [
868 (a) except as provided in Subsection [
869 system to perform the seller's sales tax functions for agreement sales and use taxes; and
870 (b) retains responsibility for remitting all of the sales tax:
871 (i) collected by the seller; and
872 (ii) to the appropriate local taxing jurisdiction.
873 [
874 registered under the agreement that has:
875 (i) sales in at least five states that are members of the agreement;
876 (ii) total annual sales revenues of at least $500,000,000;
877 (iii) a proprietary system that calculates the amount of tax:
878 (A) for an agreement sales and use tax; and
879 (B) due to each local taxing jurisdiction; and
880 (iv) entered into a performance agreement with the governing board of the agreement.
881 (b) For purposes of Subsection [
882 group of sellers using the same proprietary system.
883 [
884 not a model 1 seller, model 2 seller, or model 3 seller.
885 [
886 [
887 41-1a-102.
888 [
889 (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
890 other hydrocarbons, or otherwise treated;
891 (b) yield mixtures of liquid hydrocarbon; and
892 (c) require further processing other than mechanical blending before becoming finished
893 petroleum products.
894 [
895 kerogen material that yields petroleum upon heating and distillation.
896 [
897 software maintenance contract that a customer is not obligated to purchase as a condition to the
898 retail sale of computer software.
899 [
900 energy.
901 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
902 personal property.
903 [
904 transmission of a coded radio signal for the purpose of activating a specific pager.
905 (b) For purposes of Subsection [
906 includes a transmission by message or sound.
907 [
908 13-32a-102.
909 [
910 13-32a-102.
911 [
912 property attached to real property:
913 (i) the attachment of the tangible personal property to the real property:
914 (A) is essential to the use of the tangible personal property; and
915 (B) suggests that the tangible personal property will remain attached to the real
916 property in the same place over the useful life of the tangible personal property; or
917 (ii) if the tangible personal property is detached from the real property, the detachment
918 would:
919 (A) cause substantial damage to the tangible personal property; or
920 (B) require substantial alteration or repair of the real property to which the tangible
921 personal property is attached.
922 (b) "Permanently attached to real property" includes:
923 (i) the attachment of an accessory to the tangible personal property if the accessory is:
924 (A) essential to the operation of the tangible personal property; and
925 (B) attached only to facilitate the operation of the tangible personal property;
926 (ii) a temporary detachment of tangible personal property from real property for a
927 repair or renovation if the repair or renovation is performed where the tangible personal
928 property and real property are located; or
929 (iii) property attached to oil, gas, or water pipelines, except for the property listed in
930 Subsection [
931 (c) "Permanently attached to real property" does not include:
932 (i) the attachment of portable or movable tangible personal property to real property if
933 that portable or movable tangible personal property is attached to real property only for:
934 (A) convenience;
935 (B) stability; or
936 (C) for an obvious temporary purpose;
937 (ii) the detachment of tangible personal property from real property except for the
938 detachment described in Subsection [
939 (iii) an attachment of the following tangible personal property to real property if the
940 attachment to real property is only through a line that supplies water, electricity, gas,
941 telecommunications, cable, or supplies a similar item as determined by the commission by rule
942 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
943 (A) a computer;
944 (B) a telephone;
945 (C) a television; or
946 (D) tangible personal property similar to Subsections [
947 as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
948 Administrative Rulemaking Act; or
949 (iv) an item listed in Subsection [
950 [
951 association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
952 city, municipality, district, or other local governmental entity of the state, or any group or
953 combination acting as a unit.
954 [
955 (a) for telecommunications service other than mobile telecommunications service,
956 means the street address representative of where the customer's use of the telecommunications
957 service primarily occurs, which shall be:
958 (i) the residential street address of the customer; or
959 (ii) the primary business street address of the customer; or
960 (b) for mobile telecommunications service, means the same as that term is defined in
961 the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
962 [
963 obtains by making a payment on a call-by-call basis:
964 (i) through the use of a:
965 (A) bank card;
966 (B) credit card;
967 (C) debit card; or
968 (D) travel card; or
969 (ii) by a charge made to a telephone number that is not associated with the origination
970 or termination of the telecommunications service.
971 (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
972 service, that would be a prepaid wireless calling service if the service were exclusively a
973 telecommunications service.
974 [
975 a medium described in Subsection 59-12-104(54)(a).
976 [
977 (a) that allows a purchaser access to telecommunications service that is exclusively
978 telecommunications service;
979 (b) that:
980 (i) is paid for in advance; and
981 (ii) enables the origination of a call using an:
982 (A) access number; or
983 (B) authorization code;
984 (c) that is dialed:
985 (i) manually; or
986 (ii) electronically; and
987 (d) sold in predetermined units or dollars that decline:
988 (i) by a known amount; and
989 (ii) with use.
990 [
991 (a) that provides the right to utilize:
992 (i) mobile wireless service; and
993 (ii) other service that is not a telecommunications service, including:
994 (A) the download of a product transferred electronically;
995 (B) a content service; or
996 (C) an ancillary service;
997 (b) that:
998 (i) is paid for in advance; and
999 (ii) enables the origination of a call using an:
1000 (A) access number; or
1001 (B) authorization code;
1002 (c) that is dialed:
1003 (i) manually; or
1004 (ii) electronically; and
1005 (d) sold in predetermined units or dollars that decline:
1006 (i) by a known amount; and
1007 (ii) with use.
1008 [
1009 (i) food:
1010 (A) sold in a heated state; or
1011 (B) heated by a seller;
1012 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
1013 item; or
1014 (iii) except as provided in Subsection [
1015 provided by the seller, including a:
1016 (A) plate;
1017 (B) knife;
1018 (C) fork;
1019 (D) spoon;
1020 (E) glass;
1021 (F) cup;
1022 (G) napkin; or
1023 (H) straw.
1024 (b) "Prepared food" does not include:
1025 (i) food that a seller only:
1026 (A) cuts;
1027 (B) repackages; or
1028 (C) pasteurizes; or
1029 (ii) (A) the following:
1030 (I) raw egg;
1031 (II) raw fish;
1032 (III) raw meat;
1033 (IV) raw poultry; or
1034 (V) a food containing an item described in Subsections [
1035 (IV); and
1036 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
1037 Food and Drug Administration's Food Code that a consumer cook the items described in
1038 Subsection [
1039 (iii) the following if sold without eating utensils provided by the seller:
1040 (A) food and food ingredients sold by a seller if the seller's proper primary
1041 classification under the 2002 North American Industry Classification System of the federal
1042 Executive Office of the President, Office of Management and Budget, is manufacturing in
1043 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
1044 Manufacturing;
1045 (B) food and food ingredients sold in an unheated state:
1046 (I) by weight or volume; and
1047 (II) as a single item; or
1048 (C) a bakery item, including:
1049 (I) a bagel;
1050 (II) a bar;
1051 (III) a biscuit;
1052 (IV) bread;
1053 (V) a bun;
1054 (VI) a cake;
1055 (VII) a cookie;
1056 (VIII) a croissant;
1057 (IX) a danish;
1058 (X) a donut;
1059 (XI) a muffin;
1060 (XII) a pastry;
1061 (XIII) a pie;
1062 (XIV) a roll;
1063 (XV) a tart;
1064 (XVI) a torte; or
1065 (XVII) a tortilla.
1066 (c) An eating utensil provided by the seller does not include the following used to
1067 transport the food:
1068 (i) a container; or
1069 (ii) packaging.
1070 [
1071 (a) (i) orally;
1072 (ii) in writing;
1073 (iii) electronically; or
1074 (iv) by any other manner of transmission; and
1075 (b) by a licensed practitioner authorized by the laws of a state.
1076 [
1077 computer software" means computer software that is not designed and developed:
1078 (i) by the author or other creator of the computer software; and
1079 (ii) to the specifications of a specific purchaser.
1080 (b) "Prewritten computer software" includes:
1081 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
1082 software is not designed and developed:
1083 (A) by the author or other creator of the computer software; and
1084 (B) to the specifications of a specific purchaser;
1085 (ii) computer software designed and developed by the author or other creator of the
1086 computer software to the specifications of a specific purchaser if the computer software is sold
1087 to a person other than the purchaser; or
1088 (iii) except as provided in Subsection [
1089 prewritten portion of prewritten computer software:
1090 (A) that is modified or enhanced to any degree; and
1091 (B) if the modification or enhancement described in Subsection [
1092 designed and developed to the specifications of a specific purchaser.
1093 (c) "Prewritten computer software" does not include a modification or enhancement
1094 described in Subsection [
1095 are:
1096 (i) reasonable; and
1097 (ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), separately stated on the
1098 invoice or other statement of price provided to the purchaser at the time of sale or later, as
1099 demonstrated by:
1100 (A) the books and records the seller keeps at the time of the transaction in the regular
1101 course of business, including books and records the seller keeps at the time of the transaction in
1102 the regular course of business for nontax purposes;
1103 (B) a preponderance of the facts and circumstances at the time of the transaction; and
1104 (C) the understanding of all of the parties to the transaction.
1105 [
1106 service:
1107 (i) that entitles a customer to exclusive or priority use of one or more communications
1108 channels between or among termination points; and
1109 (ii) regardless of the manner in which the one or more communications channels are
1110 connected.
1111 (b) "Private communications service" includes the following provided in connection
1112 with the use of one or more communications channels:
1113 (i) an extension line;
1114 (ii) a station;
1115 (iii) switching capacity; or
1116 (iv) another associated service that is provided in connection with the use of one or
1117 more communications channels as defined in Section 59-12-215.
1118 [
1119 transferred electronically" means a product transferred electronically that would be subject to a
1120 tax under this chapter if that product was transferred in a manner other than electronically.
1121 (b) "Product transferred electronically" does not include:
1122 (i) an ancillary service;
1123 (ii) computer software; or
1124 (iii) a telecommunications service.
1125 [
1126 (i) artificially replace a missing portion of the body;
1127 (ii) prevent or correct a physical deformity or physical malfunction; or
1128 (iii) support a weak or deformed portion of the body.
1129 (b) "Prosthetic device" includes:
1130 (i) parts used in the repairs or renovation of a prosthetic device;
1131 (ii) replacement parts for a prosthetic device;
1132 (iii) a dental prosthesis; or
1133 (iv) a hearing aid.
1134 (c) "Prosthetic device" does not include:
1135 (i) corrective eyeglasses; or
1136 (ii) contact lenses.
1137 [
1138 (i) for human wear; and
1139 (ii) that is:
1140 (A) designed as protection:
1141 (I) to the wearer against injury or disease; or
1142 (II) against damage or injury of other persons or property; and
1143 (B) not suitable for general use.
1144 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1145 commission shall make rules:
1146 (i) listing the items that constitute "protective equipment"; and
1147 (ii) that are consistent with the list of items that constitute "protective equipment"
1148 under the agreement.
1149 [
1150 written or printed matter, other than a photocopy:
1151 (i) regardless of:
1152 (A) characteristics;
1153 (B) copyright;
1154 (C) form;
1155 (D) format;
1156 (E) method of reproduction; or
1157 (F) source; and
1158 (ii) made available in printed or electronic format.
1159 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1160 commission may by rule define the term "photocopy."
1161 [
1162 consideration:
1163 (i) valued in money; and
1164 (ii) for which tangible personal property, a product transferred electronically, or
1165 services are:
1166 (A) sold;
1167 (B) leased; or
1168 (C) rented.
1169 (b) "Purchase price" and "sales price" include:
1170 (i) the seller's cost of the tangible personal property, a product transferred
1171 electronically, or services sold;
1172 (ii) expenses of the seller, including:
1173 (A) the cost of materials used;
1174 (B) a labor cost;
1175 (C) a service cost;
1176 (D) interest;
1177 (E) a loss;
1178 (F) the cost of transportation to the seller; or
1179 (G) a tax imposed on the seller;
1180 (iii) a charge by the seller for any service necessary to complete the sale; or
1181 (iv) consideration a seller receives from a person other than the purchaser if:
1182 (A) (I) the seller actually receives consideration from a person other than the purchaser;
1183 and
1184 (II) the consideration described in Subsection [
1185 related to a price reduction or discount on the sale;
1186 (B) the seller has an obligation to pass the price reduction or discount through to the
1187 purchaser;
1188 (C) the amount of the consideration attributable to the sale is fixed and determinable by
1189 the seller at the time of the sale to the purchaser; and
1190 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1191 seller to claim a price reduction or discount; and
1192 (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1193 coupon, or other documentation with the understanding that the person other than the seller
1194 will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1195 (II) the purchaser identifies that purchaser to the seller as a member of a group or
1196 organization allowed a price reduction or discount, except that a preferred customer card that is
1197 available to any patron of a seller does not constitute membership in a group or organization
1198 allowed a price reduction or discount; or
1199 (III) the price reduction or discount is identified as a third party price reduction or
1200 discount on the:
1201 (Aa) invoice the purchaser receives; or
1202 (Bb) certificate, coupon, or other documentation the purchaser presents.
1203 (c) "Purchase price" and "sales price" do not include:
1204 (i) a discount:
1205 (A) in a form including:
1206 (I) cash;
1207 (II) term; or
1208 (III) coupon;
1209 (B) that is allowed by a seller;
1210 (C) taken by a purchaser on a sale; and
1211 (D) that is not reimbursed by a third party; or
1212 (ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), the following if separately
1213 stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
1214 sale or later, as demonstrated by the books and records the seller keeps at the time of the
1215 transaction in the regular course of business, including books and records the seller keeps at the
1216 time of the transaction in the regular course of business for nontax purposes, by a
1217 preponderance of the facts and circumstances at the time of the transaction, and by the
1218 understanding of all of the parties to the transaction:
1219 (A) the following from credit extended on the sale of tangible personal property or
1220 services:
1221 (I) a carrying charge;
1222 (II) a financing charge; or
1223 (III) an interest charge;
1224 (B) a delivery charge;
1225 (C) an installation charge;
1226 (D) a manufacturer rebate on a motor vehicle; or
1227 (E) a tax or fee legally imposed directly on the consumer.
1228 [
1229 (a) a sale of tangible personal property is made;
1230 (b) a product is transferred electronically; or
1231 (c) a service is furnished.
1232 [
1233 (a) houses a group of networked server computers in one physical location in order to
1234 disseminate, manage, and store data and information;
1235 (b) is located in the state;
1236 (c) is a new operation constructed on or after July 1, 2016;
1237 (d) consists of one or more buildings that total 150,000 or more square feet;
1238 (e) is owned or leased by:
1239 (i) the operator of the data center facility; or
1240 (ii) a person under common ownership, as defined in Section 59-7-101, of the operator
1241 of the data center facility; and
1242 (f) is located on one or more parcels of land that are owned or leased by:
1243 (i) the operator of the data center facility; or
1244 (ii) a person under common ownership, as defined in Section 59-7-101, of the operator
1245 of the data center facility.
1246 [
1247 (a) rented to a guest for value three or more times during a calendar year; or
1248 (b) advertised or held out to the public as a place that is regularly rented to guests for
1249 value.
1250 [
1251 [
1252 renovations of tangible personal property" means:
1253 (i) a repair or renovation of tangible personal property that is not permanently attached
1254 to real property; or
1255 (ii) attaching tangible personal property or a product transferred electronically to other
1256 tangible personal property or detaching tangible personal property or a product transferred
1257 electronically from other tangible personal property if:
1258 (A) the other tangible personal property to which the tangible personal property or
1259 product transferred electronically is attached or from which the tangible personal property or
1260 product transferred electronically is detached is not permanently attached to real property; and
1261 (B) the attachment of tangible personal property or a product transferred electronically
1262 to other tangible personal property or detachment of tangible personal property or a product
1263 transferred electronically from other tangible personal property is made in conjunction with a
1264 repair or replacement of tangible personal property or a product transferred electronically.
1265 (b) "Repairs or renovations of tangible personal property" does not include:
1266 (i) attaching prewritten computer software to other tangible personal property if the
1267 other tangible personal property to which the prewritten computer software is attached is not
1268 permanently attached to real property; or
1269 (ii) detaching prewritten computer software from other tangible personal property if the
1270 other tangible personal property from which the prewritten computer software is detached is
1271 not permanently attached to real property.
1272 [
1273 experimentation aimed at the discovery of facts, devices, technologies, or applications and the
1274 process of preparing those devices, technologies, or applications for marketing.
1275 [
1276 telecommunications service or an ancillary service that is provided to an individual for personal
1277 use:
1278 (i) at a residential address; or
1279 (ii) at an institution, including a nursing home or a school, if the telecommunications
1280 service or ancillary service is provided to and paid for by the individual residing at the
1281 institution rather than the institution.
1282 (b) For purposes of Subsection [
1283 (i) apartment; or
1284 (ii) other individual dwelling unit.
1285 [
1286 sleeping quarters, and similar facilities or accommodations.
1287 [
1288 other than:
1289 (a) resale;
1290 (b) sublease; or
1291 (c) subrent.
1292 [
1293 the United States or federal law, that is engaged in a regularly organized business in tangible
1294 personal property or any other taxable transaction under Subsection 59-12-103(1), and who is
1295 selling to the user or consumer and not for resale.
1296 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1297 engaged in the business of selling to users or consumers within the state.
1298 [
1299 otherwise, in any manner, of tangible personal property or any other taxable transaction under
1300 Subsection 59-12-103(1), for consideration.
1301 (b) "Sale" includes:
1302 (i) installment and credit sales;
1303 (ii) any closed transaction constituting a sale;
1304 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1305 chapter;
1306 (iv) any transaction if the possession of property is transferred but the seller retains the
1307 title as security for the payment of the price; and
1308 (v) any transaction under which right to possession, operation, or use of any article of
1309 tangible personal property is granted under a lease or contract and the transfer of possession
1310 would be taxable if an outright sale were made.
1311 [
1312 [
1313 [
1314 tangible personal property or a product transferred electronically that is subject to a tax under
1315 this chapter is transferred:
1316 (a) by a purchaser-lessee;
1317 (b) to a lessor;
1318 (c) for consideration; and
1319 (d) if:
1320 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1321 of the tangible personal property or product transferred electronically;
1322 (ii) the sale of the tangible personal property or product transferred electronically to the
1323 lessor is intended as a form of financing:
1324 (A) for the tangible personal property or product transferred electronically; and
1325 (B) to the purchaser-lessee; and
1326 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1327 is required to:
1328 (A) capitalize the tangible personal property or product transferred electronically for
1329 financial reporting purposes; and
1330 (B) account for the lease payments as payments made under a financing arrangement.
1331 [
1332 [
1333 [
1334 paid to, or amounts charged by a school:
1335 (i) sales that are directly related to the school's educational functions or activities
1336 including:
1337 (A) the sale of:
1338 (I) textbooks;
1339 (II) textbook fees;
1340 (III) laboratory fees;
1341 (IV) laboratory supplies; or
1342 (V) safety equipment;
1343 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1344 that:
1345 (I) a student is specifically required to wear as a condition of participation in a
1346 school-related event or school-related activity; and
1347 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1348 place of ordinary clothing;
1349 (C) sales of the following if the net or gross revenues generated by the sales are
1350 deposited into a school district fund or school fund dedicated to school meals:
1351 (I) food and food ingredients; or
1352 (II) prepared food; or
1353 (D) transportation charges for official school activities; or
1354 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1355 event or school-related activity.
1356 (b) "Sales relating to schools" does not include:
1357 (i) bookstore sales of items that are not educational materials or supplies;
1358 (ii) except as provided in Subsection [
1359 (A) clothing;
1360 (B) clothing accessories or equipment;
1361 (C) protective equipment; or
1362 (D) sports or recreational equipment; or
1363 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1364 event or school-related activity if the amounts paid or charged are passed through to a person:
1365 (A) other than a:
1366 (I) school;
1367 (II) nonprofit organization authorized by a school board or a governing body of a
1368 private school to organize and direct a competitive secondary school activity; or
1369 (III) nonprofit association authorized by a school board or a governing body of a
1370 private school to organize and direct a competitive secondary school activity; and
1371 (B) that is required to collect sales and use taxes under this chapter.
1372 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1373 commission may make rules defining the term "passed through."
1374 [
1375 (a) an elementary school or a secondary school that:
1376 (i) is a:
1377 (A) public school; or
1378 (B) private school; and
1379 (ii) provides instruction for one or more grades kindergarten through 12; or
1380 (b) a public school district.
1381 [
1382 (i) tangible personal property;
1383 (ii) a product transferred electronically; or
1384 (iii) a service.
1385 (b) "Seller" includes a marketplace facilitator.
1386 [
1387 materials" means tangible personal property or a product transferred electronically if the
1388 tangible personal property or product transferred electronically is:
1389 (i) used primarily in the process of:
1390 (A) (I) manufacturing a semiconductor;
1391 (II) fabricating a semiconductor; or
1392 (III) research or development of a:
1393 (Aa) semiconductor; or
1394 (Bb) semiconductor manufacturing process; or
1395 (B) maintaining an environment suitable for a semiconductor; or
1396 (ii) consumed primarily in the process of:
1397 (A) (I) manufacturing a semiconductor;
1398 (II) fabricating a semiconductor; or
1399 (III) research or development of a:
1400 (Aa) semiconductor; or
1401 (Bb) semiconductor manufacturing process; or
1402 (B) maintaining an environment suitable for a semiconductor.
1403 (b) "Semiconductor fabricating, processing, research, or development materials"
1404 includes:
1405 (i) parts used in the repairs or renovations of tangible personal property or a product
1406 transferred electronically described in Subsection [
1407 (ii) a chemical, catalyst, or other material used to:
1408 (A) produce or induce in a semiconductor a:
1409 (I) chemical change; or
1410 (II) physical change;
1411 (B) remove impurities from a semiconductor; or
1412 (C) improve the marketable condition of a semiconductor.
1413 [
1414 providing services to the aged as defined in Section 62A-3-101.
1415 [
1416 lodging consumable" means tangible personal property that:
1417 (i) a business that provides accommodations and services described in Subsection
1418 59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
1419 to a purchaser;
1420 (ii) is intended to be consumed by the purchaser; and
1421 (iii) is:
1422 (A) included in the purchase price of the accommodations and services; and
1423 (B) not separately stated on an invoice, bill of sale, or other similar document provided
1424 to the purchaser.
1425 (b) "Short-term lodging consumable" includes:
1426 (i) a beverage;
1427 (ii) a brush or comb;
1428 (iii) a cosmetic;
1429 (iv) a hair care product;
1430 (v) lotion;
1431 (vi) a magazine;
1432 (vii) makeup;
1433 (viii) a meal;
1434 (ix) mouthwash;
1435 (x) nail polish remover;
1436 (xi) a newspaper;
1437 (xii) a notepad;
1438 (xiii) a pen;
1439 (xiv) a pencil;
1440 (xv) a razor;
1441 (xvi) saline solution;
1442 (xvii) a sewing kit;
1443 (xviii) shaving cream;
1444 (xix) a shoe shine kit;
1445 (xx) a shower cap;
1446 (xxi) a snack item;
1447 (xxii) soap;
1448 (xxiii) toilet paper;
1449 (xxiv) a toothbrush;
1450 (xxv) toothpaste; or
1451 (xxvi) an item similar to Subsections [
1452 commission may provide by rule made in accordance with Title 63G, Chapter 3, Utah
1453 Administrative Rulemaking Act.
1454 (c) "Short-term lodging consumable" does not include:
1455 (i) tangible personal property that is cleaned or washed to allow the tangible personal
1456 property to be reused; or
1457 (ii) a product transferred electronically.
1458 [
1459 (a) described in Section 318(C) of the agreement; and
1460 (b) approved by the governing board of the agreement.
1461 [
1462 producing electricity.
1463 [
1464 (i) designed for human use; and
1465 (ii) that is:
1466 (A) worn in conjunction with:
1467 (I) an athletic activity; or
1468 (II) a recreational activity; and
1469 (B) not suitable for general use.
1470 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1471 commission shall make rules:
1472 (i) listing the items that constitute "sports or recreational equipment"; and
1473 (ii) that are consistent with the list of items that constitute "sports or recreational
1474 equipment" under the agreement.
1475 [
1476 [
1477 any other taxable transaction under Subsection 59-12-103(1), in this state for any purpose
1478 except sale in the regular course of business.
1479 [
1480 "Tangible personal property" means personal property that:
1481 (i) may be:
1482 (A) seen;
1483 (B) weighed;
1484 (C) measured;
1485 (D) felt; or
1486 (E) touched; or
1487 (ii) is in any manner perceptible to the senses.
1488 (b) "Tangible personal property" includes:
1489 (i) electricity;
1490 (ii) water;
1491 (iii) gas;
1492 (iv) steam; or
1493 (v) prewritten computer software, regardless of the manner in which the prewritten
1494 computer software is transferred.
1495 (c) "Tangible personal property" includes the following regardless of whether the item
1496 is attached to real property:
1497 (i) a dishwasher;
1498 (ii) a dryer;
1499 (iii) a freezer;
1500 (iv) a microwave;
1501 (v) a refrigerator;
1502 (vi) a stove;
1503 (vii) a washer; or
1504 (viii) an item similar to Subsections [
1505 the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1506 Rulemaking Act.
1507 (d) "Tangible personal property" does not include a product that is transferred
1508 electronically.
1509 (e) "Tangible personal property" does not include the following if attached to real
1510 property, regardless of whether the attachment to real property is only through a line that
1511 supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1512 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1513 Rulemaking Act:
1514 (i) a hot water heater;
1515 (ii) a water filtration system; or
1516 (iii) a water softener system.
1517 [
1518 or software" means an item listed in Subsection [
1519 leased primarily to enable or facilitate one or more of the following to function:
1520 (i) telecommunications switching or routing equipment, machinery, or software; or
1521 (ii) telecommunications transmission equipment, machinery, or software.
1522 (b) The following apply to Subsection [
1523 (i) a pole;
1524 (ii) software;
1525 (iii) a supplementary power supply;
1526 (iv) temperature or environmental equipment or machinery;
1527 (v) test equipment;
1528 (vi) a tower; or
1529 (vii) equipment, machinery, or software that functions similarly to an item listed in
1530 Subsections [
1531 accordance with Subsection [
1532 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1533 commission may by rule define what constitutes equipment, machinery, or software that
1534 functions similarly to an item listed in Subsections [
1535 [
1536 911 service" means equipment, machinery, or software that is required to comply with 47
1537 C.F.R. Sec. 20.18.
1538 [
1539 software" means equipment, machinery, or software purchased or leased primarily to maintain
1540 or repair one or more of the following, regardless of whether the equipment, machinery, or
1541 software is purchased or leased as a spare part or as an upgrade or modification to one or more
1542 of the following:
1543 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1544 (b) telecommunications switching or routing equipment, machinery, or software; or
1545 (c) telecommunications transmission equipment, machinery, or software.
1546 [
1547 routing, or transmission of audio, data, video, voice, or any other information or signal to a
1548 point, or among or between points.
1549 (b) "Telecommunications service" includes:
1550 (i) an electronic conveyance, routing, or transmission with respect to which a computer
1551 processing application is used to act:
1552 (A) on the code, form, or protocol of the content;
1553 (B) for the purpose of electronic conveyance, routing, or transmission; and
1554 (C) regardless of whether the service:
1555 (I) is referred to as voice over Internet protocol service; or
1556 (II) is classified by the Federal Communications Commission as enhanced or value
1557 added;
1558 (ii) an 800 service;
1559 (iii) a 900 service;
1560 (iv) a fixed wireless service;
1561 (v) a mobile wireless service;
1562 (vi) a postpaid calling service;
1563 (vii) a prepaid calling service;
1564 (viii) a prepaid wireless calling service; or
1565 (ix) a private communications service.
1566 (c) "Telecommunications service" does not include:
1567 (i) advertising, including directory advertising;
1568 (ii) an ancillary service;
1569 (iii) a billing and collection service provided to a third party;
1570 (iv) a data processing and information service if:
1571 (A) the data processing and information service allows data to be:
1572 (I) (Aa) acquired;
1573 (Bb) generated;
1574 (Cc) processed;
1575 (Dd) retrieved; or
1576 (Ee) stored; and
1577 (II) delivered by an electronic transmission to a purchaser; and
1578 (B) the purchaser's primary purpose for the underlying transaction is the processed data
1579 or information;
1580 (v) installation or maintenance of the following on a customer's premises:
1581 (A) equipment; or
1582 (B) wiring;
1583 (vi) Internet access service;
1584 (vii) a paging service;
1585 (viii) a product transferred electronically, including:
1586 (A) music;
1587 (B) reading material;
1588 (C) a ring tone;
1589 (D) software; or
1590 (E) video;
1591 (ix) a radio and television audio and video programming service:
1592 (A) regardless of the medium; and
1593 (B) including:
1594 (I) furnishing conveyance, routing, or transmission of a television audio and video
1595 programming service by a programming service provider;
1596 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1597 (III) audio and video programming services delivered by a commercial mobile radio
1598 service provider as defined in 47 C.F.R. Sec. 20.3;
1599 (x) a value-added nonvoice data service; or
1600 (xi) tangible personal property.
1601 [
1602 (i) owns, controls, operates, or manages a telecommunications service; and
1603 (ii) engages in an activity described in Subsection [
1604 with or resale to any person of the telecommunications service.
1605 (b) A person described in Subsection [
1606 provider whether or not the Public Service Commission of Utah regulates:
1607 (i) that person; or
1608 (ii) the telecommunications service that the person owns, controls, operates, or
1609 manages.
1610 [
1611 software" means an item listed in Subsection [
1612 leased primarily for switching or routing:
1613 (i) an ancillary service;
1614 (ii) data communications;
1615 (iii) voice communications; or
1616 (iv) telecommunications service.
1617 (b) The following apply to Subsection [
1618 (i) a bridge;
1619 (ii) a computer;
1620 (iii) a cross connect;
1621 (iv) a modem;
1622 (v) a multiplexer;
1623 (vi) plug in circuitry;
1624 (vii) a router;
1625 (viii) software;
1626 (ix) a switch; or
1627 (x) equipment, machinery, or software that functions similarly to an item listed in
1628 Subsections [
1629 accordance with Subsection [
1630 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1631 commission may by rule define what constitutes equipment, machinery, or software that
1632 functions similarly to an item listed in Subsections [
1633 [
1634 software" means an item listed in Subsection [
1635 leased primarily for sending, receiving, or transporting:
1636 (i) an ancillary service;
1637 (ii) data communications;
1638 (iii) voice communications; or
1639 (iv) telecommunications service.
1640 (b) The following apply to Subsection [
1641 (i) an amplifier;
1642 (ii) a cable;
1643 (iii) a closure;
1644 (iv) a conduit;
1645 (v) a controller;
1646 (vi) a duplexer;
1647 (vii) a filter;
1648 (viii) an input device;
1649 (ix) an input/output device;
1650 (x) an insulator;
1651 (xi) microwave machinery or equipment;
1652 (xii) an oscillator;
1653 (xiii) an output device;
1654 (xiv) a pedestal;
1655 (xv) a power converter;
1656 (xvi) a power supply;
1657 (xvii) a radio channel;
1658 (xviii) a radio receiver;
1659 (xix) a radio transmitter;
1660 (xx) a repeater;
1661 (xxi) software;
1662 (xxii) a terminal;
1663 (xxiii) a timing unit;
1664 (xxiv) a transformer;
1665 (xxv) a wire; or
1666 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1667 Subsections [
1668 accordance with Subsection [
1669 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1670 commission may by rule define what constitutes equipment, machinery, or software that
1671 functions similarly to an item listed in Subsections [
1672 [
1673 printed material that is required for a course:
1674 (i) offered by an institution of higher education; and
1675 (ii) that the purchaser of the textbook or other printed material attends or will attend.
1676 (b) "Textbook for a higher education course" includes a textbook in electronic format.
1677 [
1678 (a) a cigarette;
1679 (b) a cigar;
1680 (c) chewing tobacco;
1681 (d) pipe tobacco; or
1682 (e) any other item that contains tobacco.
1683 [
1684 device, or ride device that is started and stopped by the purchaser or renter of the right to use or
1685 operate the amusement device, skill device, or ride device.
1686 [
1687 property, a product transferred electronically, or a service under Subsection 59-12-103(1),
1688 incident to the ownership or the leasing of that tangible personal property, product transferred
1689 electronically, or service.
1690 (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1691 property, a product transferred electronically, or a service in the regular course of business and
1692 held for resale.
1693 [
1694 (a) that otherwise meets the definition of a telecommunications service except that a
1695 computer processing application is used to act primarily for a purpose other than conveyance,
1696 routing, or transmission; and
1697 (b) with respect to which a computer processing application is used to act on data or
1698 information:
1699 (i) code;
1700 (ii) content;
1701 (iii) form; or
1702 (iv) protocol.
1703 [
1704 that are required to be titled, registered, or titled and registered:
1705 (i) an aircraft as defined in Section 72-10-102;
1706 (ii) a vehicle as defined in Section 41-1a-102;
1707 (iii) an off-highway vehicle as defined in Section 41-22-2; or
1708 (iv) a vessel as defined in Section 41-1a-102.
1709 (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
1710 (i) a vehicle described in Subsection [
1711 (ii) (A) a locomotive;
1712 (B) a freight car;
1713 (C) railroad work equipment; or
1714 (D) other railroad rolling stock.
1715 [
1716 selling, or exchanging a vehicle as defined in Subsection [
1717 [
1718 (i) is offered in connection with one or more telecommunications services; and
1719 (ii) offers an advanced calling feature that allows a customer to:
1720 (A) identify a caller; and
1721 (B) manage multiple calls and call connections.
1722 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1723 conference bridging service.
1724 [
1725 customer to receive, send, or store a recorded message.
1726 (b) "Voice mail service" does not include a vertical service that a customer is required
1727 to have in order to utilize a voice mail service.
1728 [
1729 facility" means a facility that generates electricity:
1730 (i) using as the primary source of energy waste materials that would be placed in a
1731 landfill or refuse pit if it were not used to generate electricity, including:
1732 (A) tires;
1733 (B) waste coal;
1734 (C) oil shale; or
1735 (D) municipal solid waste; and
1736 (ii) in amounts greater than actually required for the operation of the facility.
1737 (b) "Waste energy facility" does not include a facility that incinerates:
1738 (i) hospital waste as defined in 40 C.F.R. 60.51c; or
1739 (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1740 [
1741 [
1742 electricity.
1743 [
1744 geographic location by the United States Postal Service.
1745 Section 3. Section 59-12-103 is amended to read:
1746 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
1747 tax revenues.
1748 (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
1749 sales price for amounts paid or charged for the following transactions:
1750 (a) retail sales of tangible personal property made within the state;
1751 (b) amounts paid for:
1752 (i) telecommunications service, other than mobile telecommunications service, that
1753 originates and terminates within the boundaries of this state;
1754 (ii) mobile telecommunications service that originates and terminates within the
1755 boundaries of one state only to the extent permitted by the Mobile Telecommunications
1756 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
1757 (iii) an ancillary service associated with a:
1758 (A) telecommunications service described in Subsection (1)(b)(i); or
1759 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
1760 (c) sales of the following for commercial use:
1761 (i) gas;
1762 (ii) electricity;
1763 (iii) heat;
1764 (iv) coal;
1765 (v) fuel oil; or
1766 (vi) other fuels;
1767 (d) sales of the following for residential use:
1768 (i) gas;
1769 (ii) electricity;
1770 (iii) heat;
1771 (iv) coal;
1772 (v) fuel oil; or
1773 (vi) other fuels;
1774 (e) sales of prepared food;
1775 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
1776 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
1777 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
1778 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
1779 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
1780 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
1781 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
1782 horseback rides, sports activities, or any other amusement, entertainment, recreation,
1783 exhibition, cultural, or athletic activity;
1784 (g) amounts paid or charged for services for repairs or renovations of tangible personal
1785 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
1786 (i) the tangible personal property; and
1787 (ii) parts used in the repairs or renovations of the tangible personal property described
1788 in Subsection (1)(g)(i), regardless of whether:
1789 (A) any parts are actually used in the repairs or renovations of that tangible personal
1790 property; or
1791 (B) the particular parts used in the repairs or renovations of that tangible personal
1792 property are exempt from a tax under this chapter;
1793 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
1794 assisted cleaning or washing of tangible personal property;
1795 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
1796 accommodations and services that are regularly rented for less than 30 consecutive days;
1797 (j) amounts paid or charged for laundry or dry cleaning services;
1798 (k) amounts paid or charged for leases or rentals of tangible personal property if within
1799 this state the tangible personal property is:
1800 (i) stored;
1801 (ii) used; or
1802 (iii) otherwise consumed;
1803 (l) amounts paid or charged for tangible personal property if within this state the
1804 tangible personal property is:
1805 (i) stored;
1806 (ii) used; or
1807 (iii) consumed; and
1808 (m) amounts paid or charged for a sale:
1809 (i) (A) of a product transferred electronically; or
1810 (B) of a repair or renovation of a product transferred electronically; and
1811 (ii) regardless of whether the sale provides:
1812 (A) a right of permanent use of the product; or
1813 (B) a right to use the product that is less than a permanent use, including a right:
1814 (I) for a definite or specified length of time; and
1815 (II) that terminates upon the occurrence of a condition.
1816 (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
1817 are imposed on a transaction described in Subsection (1) equal to the sum of:
1818 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
1819 (A) 4.70% plus the rate specified in Subsection (12)(a); and
1820 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
1821 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
1822 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
1823 State Sales and Use Tax Act; and
1824 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
1825 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
1826 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
1827 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
1828 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1829 transaction under this chapter other than this part.
1830 (b) Except as provided in Subsection (2)(e) or (f) and subject to Subsection (2)(k), a
1831 state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
1832 the sum of:
1833 (i) a state tax imposed on the transaction at a tax rate of 2%; and
1834 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1835 transaction under this chapter other than this part.
1836 [
1837
1838 [
1839
1840 [
1841
1842 (c) (i) Except as provided in Subsection (2)(e) or (f), a local tax is imposed on amounts
1843 paid or charged for food and food ingredients equal to the sum of the tax rates a county, city, or
1844 town imposes under this chapter on the amounts paid or charged for food and food ingredients.
1845 (ii) There is no state tax imposed on amounts paid or charged for food and food
1846 ingredients.
1847 (d) Except as provided in Subsection (2)(e) or (f), a state tax is imposed on amounts
1848 paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
1849 a rate of 4.85%.
1850 (e) (i) For a bundled transaction that is attributable to food and food ingredients and
1851 tangible personal property other than food and food ingredients, a state tax and a local tax is
1852 imposed on the entire bundled transaction equal to the sum of:
1853 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
1854 (I) the tax rate described in Subsection (2)(a)(i)(A); and
1855 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
1856 Sales and Use Tax Act, if the location of the transaction as determined under Sections
1857 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
1858 Additional State Sales and Use Tax Act; and
1859 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
1860 Sales and Use Tax Act, if the location of the transaction as determined under Sections
1861 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
1862 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
1863 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
1864 described in Subsection (2)(a)(ii).
1865 (ii) If an optional computer software maintenance contract is a bundled transaction that
1866 consists of taxable and nontaxable products that are not separately itemized on an invoice or
1867 similar billing document, the purchase of the optional computer software maintenance contract
1868 is 40% taxable under this chapter and 60% nontaxable under this chapter.
1869 (iii) Subject to Subsection (2)(e)(iv), for a bundled transaction other than a bundled
1870 transaction described in Subsection (2)(e)(i) or (ii):
1871 (A) if the sales price of the bundled transaction is attributable to tangible personal
1872 property, a product, or a service that is subject to taxation under this chapter and tangible
1873 personal property, a product, or service that is not subject to taxation under this chapter, the
1874 entire bundled transaction is subject to taxation under this chapter unless:
1875 (I) the seller is able to identify by reasonable and verifiable standards the tangible
1876 personal property, product, or service that is not subject to taxation under this chapter from the
1877 books and records the seller keeps in the seller's regular course of business; or
1878 (II) state or federal law provides otherwise; or
1879 (B) if the sales price of a bundled transaction is attributable to two or more items of
1880 tangible personal property, products, or services that are subject to taxation under this chapter
1881 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
1882 higher tax rate unless:
1883 (I) the seller is able to identify by reasonable and verifiable standards the tangible
1884 personal property, product, or service that is subject to taxation under this chapter at the lower
1885 tax rate from the books and records the seller keeps in the seller's regular course of business; or
1886 (II) state or federal law provides otherwise.
1887 (iv) For purposes of Subsection (2)(e)(iii), books and records that a seller keeps in the
1888 seller's regular course of business includes books and records the seller keeps in the regular
1889 course of business for nontax purposes.
1890 (f) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(f)(ii)
1891 and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
1892 product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
1893 of tangible personal property, other property, a product, or a service that is not subject to
1894 taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
1895 the seller, at the time of the transaction:
1896 (A) separately states the portion of the transaction that is not subject to taxation under
1897 this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
1898 (B) is able to identify by reasonable and verifiable standards, from the books and
1899 records the seller keeps in the seller's regular course of business, the portion of the transaction
1900 that is not subject to taxation under this chapter.
1901 (ii) A purchaser and a seller may correct the taxability of a transaction if:
1902 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
1903 the transaction that is not subject to taxation under this chapter was not separately stated on an
1904 invoice, bill of sale, or similar document provided to the purchaser because of an error or
1905 ignorance of the law; and
1906 (B) the seller is able to identify by reasonable and verifiable standards, from the books
1907 and records the seller keeps in the seller's regular course of business, the portion of the
1908 transaction that is not subject to taxation under this chapter.
1909 (iii) For purposes of Subsections (2)(f)(i) and (ii), books and records that a seller keeps
1910 in the seller's regular course of business includes books and records the seller keeps in the
1911 regular course of business for nontax purposes.
1912 (g) (i) If the sales price of a transaction is attributable to two or more items of tangible
1913 personal property, products, or services that are subject to taxation under this chapter at
1914 different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
1915 unless the seller, at the time of the transaction:
1916 (A) separately states the items subject to taxation under this chapter at each of the
1917 different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
1918 (B) is able to identify by reasonable and verifiable standards the tangible personal
1919 property, product, or service that is subject to taxation under this chapter at the lower tax rate
1920 from the books and records the seller keeps in the seller's regular course of business.
1921 (ii) For purposes of Subsection (2)(g)(i), books and records that a seller keeps in the
1922 seller's regular course of business includes books and records the seller keeps in the regular
1923 course of business for nontax purposes.
1924 (h) Subject to Subsections (2)(i) and (j), a tax rate repeal or tax rate change for a tax
1925 rate imposed under the following shall take effect on the first day of a calendar quarter:
1926 (i) Subsection (2)(a)(i)(A);
1927 (ii) Subsection (2)(b)(i); or
1928 [
1929 [
1930 (i) (i) A tax rate increase takes effect on the first day of the first billing period that
1931 begins on or after the effective date of the tax rate increase if the billing period for the
1932 transaction begins before the effective date of a tax rate increase imposed under:
1933 (A) Subsection (2)(a)(i)(A);
1934 (B) Subsection (2)(b)(i); or
1935 [
1936 [
1937 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
1938 statement for the billing period is rendered on or after the effective date of the repeal of the tax
1939 or the tax rate decrease imposed under:
1940 (A) Subsection (2)(a)(i)(A);
1941 (B) Subsection (2)(b)(i); or
1942 [
1943 [
1944 (j) (i) For a tax rate described in Subsection (2)(j)(ii), if a tax due on a catalogue sale is
1945 computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
1946 change in a tax rate takes effect:
1947 (A) on the first day of a calendar quarter; and
1948 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
1949 (ii) Subsection (2)(j)(i) applies to the tax rates described in the following:
1950 (A) Subsection (2)(a)(i)(A);
1951 (B) Subsection (2)(b)(i); or
1952 [
1953 [
1954 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1955 the commission may by rule define the term "catalogue sale."
1956 (k) (i) For a location described in Subsection (2)(k)(ii), the commission shall determine
1957 the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
1958 predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
1959 (ii) Subsection (2)(k)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
1960 or other fuel is furnished through a single meter for two or more of the following uses:
1961 (A) a commercial use;
1962 (B) an industrial use; or
1963 (C) a residential use.
1964 (3) (a) The following state taxes shall be deposited into the General Fund:
1965 (i) the tax imposed by Subsection (2)(a)(i)(A);
1966 (ii) the tax imposed by Subsection (2)(b)(i); and
1967 [
1968 [
1969 (b) The following local taxes shall be distributed to a county, city, or town as provided
1970 in this chapter:
1971 (i) the tax imposed by Subsection (2)(a)(ii);
1972 (ii) the tax imposed by Subsection (2)(b)(ii);
1973 (iii) the tax imposed by Subsection (2)(c)[
1974 (iv) the tax imposed by Subsection (2)(e)(i)(B).
1975 (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
1976 Fund.
1977 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1978 2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
1979 through (g):
1980 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1981 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
1982 (B) for the fiscal year; or
1983 (ii) $17,500,000.
1984 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
1985 described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
1986 Department of Natural Resources to:
1987 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
1988 protect sensitive plant and animal species; or
1989 (B) award grants, up to the amount authorized by the Legislature in an appropriations
1990 act, to political subdivisions of the state to implement the measures described in Subsections
1991 79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
1992 (ii) Money transferred to the Department of Natural Resources under Subsection
1993 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
1994 person to list or attempt to have listed a species as threatened or endangered under the
1995 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
1996 (iii) At the end of each fiscal year:
1997 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1998 Conservation and Development Fund created in Section 73-10-24;
1999 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
2000 Program Subaccount created in Section 73-10c-5; and
2001 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
2002 Program Subaccount created in Section 73-10c-5.
2003 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
2004 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
2005 created in Section 4-18-106.
2006 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
2007 in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
2008 Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
2009 water rights.
2010 (ii) At the end of each fiscal year:
2011 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
2012 Conservation and Development Fund created in Section 73-10-24;
2013 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
2014 Program Subaccount created in Section 73-10c-5; and
2015 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
2016 Program Subaccount created in Section 73-10c-5.
2017 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
2018 in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
2019 Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
2020 (ii) In addition to the uses allowed of the Water Resources Conservation and
2021 Development Fund under Section 73-10-24, the Water Resources Conservation and
2022 Development Fund may also be used to:
2023 (A) conduct hydrologic and geotechnical investigations by the Division of Water
2024 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
2025 quantifying surface and ground water resources and describing the hydrologic systems of an
2026 area in sufficient detail so as to enable local and state resource managers to plan for and
2027 accommodate growth in water use without jeopardizing the resource;
2028 (B) fund state required dam safety improvements; and
2029 (C) protect the state's interest in interstate water compact allocations, including the
2030 hiring of technical and legal staff.
2031 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2032 in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
2033 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
2034 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2035 in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
2036 created in Section 73-10c-5 for use by the Division of Drinking Water to:
2037 (i) provide for the installation and repair of collection, treatment, storage, and
2038 distribution facilities for any public water system, as defined in Section 19-4-102;
2039 (ii) develop underground sources of water, including springs and wells; and
2040 (iii) develop surface water sources.
2041 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2042 2006, the difference between the following amounts shall be expended as provided in this
2043 Subsection (5), if that difference is greater than $1:
2044 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
2045 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
2046 (ii) $17,500,000.
2047 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
2048 (A) transferred each fiscal year to the Department of Natural Resources as dedicated
2049 credits; and
2050 (B) expended by the Department of Natural Resources for watershed rehabilitation or
2051 restoration.
2052 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
2053 in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
2054 created in Section 73-10-24.
2055 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
2056 remaining difference described in Subsection (5)(a) shall be:
2057 (A) transferred each fiscal year to the Division of Water Resources as dedicated
2058 credits; and
2059 (B) expended by the Division of Water Resources for cloud-seeding projects
2060 authorized by Title 73, Chapter 15, Modification of Weather.
2061 (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
2062 in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
2063 created in Section 73-10-24.
2064 (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
2065 remaining difference described in Subsection (5)(a) shall be deposited into the Water
2066 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
2067 Division of Water Resources for:
2068 (i) preconstruction costs:
2069 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
2070 26, Bear River Development Act; and
2071 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
2072 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
2073 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
2074 Chapter 26, Bear River Development Act;
2075 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
2076 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
2077 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
2078 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
2079 (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
2080 Subsection (5)(f), 15% of the remaining difference described in Subsection (5)(a) shall be
2081 transferred each year as dedicated credits to the Division of Water Rights to cover the costs
2082 incurred for employing additional technical staff for the administration of water rights.
2083 (f) At the end of each fiscal year, any unexpended dedicated credits described in
2084 Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
2085 Fund created in Section 73-10-24.
2086 (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
2087 amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
2088 (1) for the fiscal year shall be deposited as follows:
2089 (a) for fiscal year 2020-21 only:
2090 (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
2091 Transportation Investment Fund of 2005 created by Section 72-2-124; and
2092 (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
2093 Water Infrastructure Restricted Account created by Section 73-10g-103; and
2094 (b) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
2095 in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
2096 created by Section 73-10g-103.
2097 (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
2098 Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
2099 2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
2100 created by Section 72-2-124:
2101 (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
2102 the revenues collected from the following taxes, which represents a portion of the
2103 approximately 17% of sales and use tax revenues generated annually by the sales and use tax
2104 on vehicles and vehicle-related products:
2105 (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
2106 (B) the tax imposed by Subsection (2)(b)(i); and
2107 [
2108 [
2109 (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
2110 current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
2111 (D) that exceeds the amount collected from the sales and use taxes described in Subsections
2112 (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
2113 (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
2114 the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
2115 lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
2116 generated in the current fiscal year than the total percentage of sales and use taxes deposited in
2117 the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
2118 (7)(a) equal to the product of:
2119 (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
2120 previous fiscal year; and
2121 (B) the total sales and use tax revenue generated by the taxes described in Subsections
2122 (7)(a)(i)(A) through (D) in the current fiscal year.
2123 (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
2124 Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
2125 described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
2126 Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
2127 Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
2128 (iii) Subject to Subsection (7)(b)(iv)(E), in all subsequent fiscal years after a year in
2129 which 17% of the revenues collected from the sales and use taxes described in Subsections
2130 (7)(a)(i)(A) through (D) was deposited under Subsection (7)(a), the Division of Finance shall
2131 annually deposit 17% of the revenues collected from the sales and use taxes described in
2132 Subsections (7)(a)(i)(A) through (D) in the current fiscal year under Subsection (7)(a).
2133 (iv) (A) As used in this Subsection (7)(b)(iv), "additional growth revenue" means the
2134 amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
2135 the relevant revenue collected in the previous fiscal year.
2136 (B) As used in this Subsection (7)(b)(iv), "combined amount" means the combined
2137 total amount of money deposited into the Cottonwood Canyons fund under Subsections
2138 (7)(b)(iv)(F) and (8)(c)(iv)(F) in any single fiscal year.
2139 (C) As used in this Subsection (7)(b)(iv), "Cottonwood Canyons fund" means the
2140 Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
2141 (D) As used in this Subsection (7)(b)(iv), "relevant revenue" means the portion of taxes
2142 listed under Subsection (3)(a) that equals 17% of the revenue collected from taxes described in
2143 Subsections (7)(a)(i)(A) through (D).
2144 (E) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
2145 reduce the deposit under Subsection (7)(c)(iii) into the Transportation Investment Fund of 2005
2146 by an amount equal to the amount of the deposit under this Subsection (7)(b)(iv) to the
2147 Cottonwood Canyons fund in the previous fiscal year plus 25% of additional growth revenue,
2148 subject to the limit in Subsection (7)(b)(iv)(F).
2149 (F) The commission shall annually deposit the amount described in Subsection
2150 (7)(b)(iv)(E) into the Cottonwood Canyons fund, subject to an annual maximum combined
2151 amount for any single fiscal year of $20,000,000.
2152 (G) If the amount of relevant revenue declines in a fiscal year compared to the previous
2153 fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
2154 Canyons fund under this Subsection (7)(b)(iv) in the same proportion as the decline in relevant
2155 revenue.
2156 (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
2157 Subsections (6) and (7), and subject to Subsections (8)(b) and (d)(v), for a fiscal year beginning
2158 on or after July 1, 2018, the commission shall annually deposit into the Transportation
2159 Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under
2160 Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the following
2161 taxes:
2162 (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
2163 (ii) the tax imposed by Subsection (2)(b)(i); and
2164 [
2165 [
2166 (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
2167 reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
2168 an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
2169 the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
2170 or use in this state that exceeds 29.4 cents per gallon.
2171 (c) The commission shall annually deposit the amount described in Subsection (8)(b)
2172 into the Transit Transportation Investment Fund created in Section 72-2-124.
2173 (d) (i) As used in this Subsection (8)(d), "additional growth revenue" means the
2174 amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
2175 the relevant revenue collected in the previous fiscal year.
2176 (ii) As used in this Subsection (8)(d), "combined amount" means the combined total
2177 amount of money deposited into the Cottonwood Canyons fund under Subsections (7)(b)(iv)(F)
2178 and (8)(d)(vi) in any single fiscal year.
2179 (iii) As used in this Subsection (8)(d), "Cottonwood Canyons fund" means the
2180 Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
2181 (iv) As used in this Subsection (8)(d), "relevant revenue" means the portion of taxes
2182 listed under Subsection (3)(a) that equals 3.68% of the revenue collected from taxes described
2183 in Subsections (8)(a)(i) through (iv).
2184 (v) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
2185 reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
2186 an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
2187 Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
2188 limit in Subsection (8)(d)(vi).
2189 (vi) The commission shall annually deposit the amount described in Subsection
2190 (8)(d)(v) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
2191 for any single fiscal year of $20,000,000.
2192 (vii) If the amount of relevant revenue declines in a fiscal year compared to the
2193 previous fiscal year, the commission shall decrease the amount of the contribution to the
2194 Cottonwood Canyons fund under this Subsection (8)(d) in the same proportion as the decline in
2195 relevant revenue.
2196 (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2197 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
2198 created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
2199 (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(b),
2200 and in addition to any amounts deposited under Subsections (6), (7), and (8), the Division of
2201 Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
2202 72-2-124 the amount of revenue described as follows:
2203 (i) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a .05%
2204 tax rate on the transactions described in Subsection (1); and
2205 (ii) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
2206 tax rate on the transactions described in Subsection (1).
2207 (b) For purposes of Subsection (10)(a), the Division of Finance may not deposit into
2208 the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
2209 charged for food and food ingredients, except for tax revenue generated by a bundled
2210 transaction attributable to food and food ingredients and tangible personal property other than
2211 food and food ingredients described in Subsection (2)(e).
2212 (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
2213 fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
2214 construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
2215 Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
2216 generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
2217 created in Section 63N-2-512.
2218 (12) (a) The rate specified in this subsection is 0.15%.
2219 (b) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
2220 beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
2221 rate described in Subsection (12)(a) on the transactions that are subject to the sales and use tax
2222 under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section
2223 26-36b-208.
2224 (13) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2225 2020-21, the Division of Finance shall deposit $200,000 into the General Fund as a dedicated
2226 credit solely for use of the Search and Rescue Financial Assistance Program created in, and
2227 expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
2228 (14) (a) For each fiscal year beginning with fiscal year 2020-21, the Division of
2229 Finance shall annually transfer $1,813,400 of the revenue deposited into the Transportation
2230 Investment Fund of 2005 under Subsections (6) through (8) to the General Fund.
2231 (b) If the total revenue deposited into the Transportation Investment Fund of 2005
2232 under Subsections (6) through (8) is less than $1,813,400 for a fiscal year, the Division of
2233 Finance shall transfer the total revenue deposited into the Transportation Investment Fund of
2234 2005 under Subsections (6) through (8) during the fiscal year to the General Fund.
2235 (15) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610,
2236 beginning one year after the sales and use tax boundary for a housing and transit reinvestment
2237 zone is established, the commission, at least annually, shall transfer an amount equal to 15% of
2238 the sales and use tax increment within an established sales and use tax boundary, as defined in
2239 Section 63N-3-602, into the Transit Transportation Investment Fund created in Section
2240 72-2-124.
2241 Section 4. Section 59-12-108 is amended to read:
2242 59-12-108. Monthly payment -- Amount of tax a seller may retain -- Penalty --
2243 Certain amounts allocated to local taxing jurisdictions.
2244 (1) (a) Notwithstanding Section 59-12-107, a seller that has a tax liability under this
2245 chapter of $50,000 or more for the previous calendar year shall:
2246 (i) file a return with the commission:
2247 (A) monthly on or before the last day of the month immediately following the month
2248 for which the seller collects a tax under this chapter; and
2249 (B) for the month for which the seller collects a tax under this chapter; and
2250 (ii) except as provided in Subsection (1)(b), remit with the return required by
2251 Subsection (1)(a)(i) the amount the person is required to remit to the commission for each tax,
2252 fee, or charge described in Subsection (1)(c):
2253 (A) if that seller's tax liability under this chapter for the previous calendar year is less
2254 than $96,000, by any method permitted by the commission; or
2255 (B) if that seller's tax liability under this chapter for the previous calendar year is
2256 $96,000 or more, by electronic funds transfer.
2257 (b) A seller shall remit electronically with the return required by Subsection (1)(a)(i)
2258 the amount the seller is required to remit to the commission for each tax, fee, or charge
2259 described in Subsection (1)(c) if that seller:
2260 (i) is required by Section 59-12-107 to file the return electronically; or
2261 (ii) (A) is required to collect and remit a tax under Section 59-12-107; and
2262 (B) files a simplified electronic return.
2263 (c) Subsections (1)(a) and (b) apply to the following taxes, fees, or charges:
2264 (i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
2265 (ii) a fee under Section 19-6-714;
2266 (iii) a fee under Section 19-6-805;
2267 (iv) a charge under Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications
2268 Service Charges; or
2269 (v) a tax under this chapter.
2270 (d) Notwithstanding Subsection (1)(a)(ii) and in accordance with Title 63G, Chapter 3,
2271 Utah Administrative Rulemaking Act, the commission shall make rules providing for a method
2272 for making same-day payments other than by electronic funds transfer if making payments by
2273 electronic funds transfer fails.
2274 (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2275 commission shall establish by rule procedures and requirements for determining the amount a
2276 seller is required to remit to the commission under this Subsection (1).
2277 (2) (a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a
2278 seller described in Subsection (4) may retain each month the amount allowed by this
2279 Subsection (2).
2280 (b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
2281 each month 1.31% of any amounts the seller is required to remit to the commission:
2282 (i) for a transaction described in Subsection 59-12-103(1) that is subject to a state tax
2283 and a local tax imposed in accordance with the following, for the month for which the seller is
2284 filing a return in accordance with Subsection (1):
2285 (A) Subsection 59-12-103(2)(a);
2286 (B) Subsection 59-12-103(2)(b); and
2287 (C) Subsection 59-12-103(2)(d); and
2288 (ii) for an agreement sales and use tax.
2289 (c) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
2290 retain each month the amount calculated under Subsection (2)(c)(ii) for a transaction described
2291 in Subsection 59-12-103(1) that is subject to the [
2292 accordance with Subsection 59-12-103(2)(c).
2293 (ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount
2294 equal to the sum of:
2295 (A) 1.31% of any amounts the seller is required to remit to the commission for:
2296 (I) the [
2297 59-12-103(2)(c);
2298 (II) the month for which the seller is filing a return in accordance with Subsection (1);
2299 and
2300 (III) an agreement sales and use tax; and
2301 (B) 1.31% of the difference between:
2302 (I) the amounts the seller would have been required to remit to the commission:
2303 (Aa) in accordance with Subsection 59-12-103(2)(a) if the transaction had been subject
2304 to the state tax and the local tax imposed in accordance with Subsection 59-12-103(2)(a);
2305 (Bb) for the month for which the seller is filing a return in accordance with Subsection
2306 (1); and
2307 (Cc) for an agreement sales and use tax; and
2308 (II) the amounts the seller is required to remit to the commission for:
2309 (Aa) the [
2310 59-12-103(2)(c);
2311 (Bb) the month for which the seller is filing a return in accordance with Subsection (1);
2312 and
2313 (Cc) an agreement sales and use tax.
2314 (d) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
2315 each month 1% of any amounts the seller is required to remit to the commission:
2316 (i) for the month for which the seller is filing a return in accordance with Subsection
2317 (1); and
2318 (ii) under:
2319 (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
2320 (B) Subsection 59-12-603(1)(a)(i)(A);
2321 (C) Subsection 59-12-603(1)(a)(i)(B); or
2322 (D) Subsection 59-12-603(1)(a)(ii).
2323 (3) A state government entity that is required to remit taxes monthly in accordance
2324 with Subsection (1) may not retain any amount under Subsection (2).
2325 (4) A seller that has a tax liability under this chapter for the previous calendar year of
2326 less than $50,000 may:
2327 (a) voluntarily meet the requirements of Subsection (1); and
2328 (b) if the seller voluntarily meets the requirements of Subsection (1), retain the
2329 amounts allowed by Subsection (2).
2330 (5) Penalties for late payment shall be as provided in Section 59-1-401.
2331 (6) (a) Except as provided in Subsection (6)(c), for any amounts required to be remitted
2332 to the commission under this part, the commission shall each month calculate an amount equal
2333 to the difference between:
2334 (i) the total amount retained for that month by all sellers had the percentages listed
2335 under Subsections (2)(b) and (2)(c)(ii) been 1.5%; and
2336 (ii) the total amount retained for that month by all sellers at the percentages listed
2337 under Subsections (2)(b) and (2)(c)(ii).
2338 (b) The commission shall each month allocate the amount calculated under Subsection
2339 (6)(a) to each county, city, and town on the basis of the proportion of agreement sales and use
2340 tax that the commission distributes to each county, city, and town for that month compared to
2341 the total agreement sales and use tax that the commission distributes for that month to all
2342 counties, cities, and towns.
2343 (c) The amount the commission calculates under Subsection (6)(a) may not include an
2344 amount collected from a tax that:
2345 (i) the state imposes within a county, city, or town, including the unincorporated area
2346 of a county; and
2347 (ii) is not imposed within the entire state.
2348 Section 5. Section 63N-7-301 is amended to read:
2349 63N-7-301. Tourism Marketing Performance Account.
2350 (1) There is created within the General Fund a restricted account known as the Tourism
2351 Marketing Performance Account.
2352 (2) The account shall be administered by GOED for the purposes listed in Subsection
2353 (5).
2354 (3) (a) The account shall earn interest.
2355 (b) All interest earned on account money shall be deposited into the account.
2356 (4) The account shall be funded by appropriations made to the account by the
2357 Legislature in accordance with this section.
2358 (5) The executive director of GOED's Office of Tourism shall use account money
2359 appropriated to GOED to pay for the statewide advertising, marketing, and branding campaign
2360 for promotion of the state as conducted by GOED.
2361 (6) (a) For each fiscal year beginning on or after July 1, 2007, GOED shall annually
2362 allocate 10% of the account money appropriated to GOED to a sports organization for
2363 advertising, marketing, branding, and promoting Utah in attracting sporting events into the
2364 state.
2365 (b) The sports organization shall:
2366 (i) provide an annual written report to GOED that gives an accounting of the use of
2367 funds the sports organization receives under this Subsection (6); and
2368 (ii) promote the state and encourage economic growth in the state.
2369 (c) For purposes of this Subsection (6), "sports organization" means an organization
2370 that:
2371 (i) is exempt from federal income taxation in accordance with Section 501(c)(3),
2372 Internal Revenue Code;
2373 (ii) maintains its principal location in the state;
2374 (iii) has a minimum of 15 years experience in the state hosting, fostering, and attracting
2375 major summer and winter sporting events statewide; and
2376 (iv) was created to foster state, regional, national, and international sports competitions
2377 in the state, to drive the state's Olympic and sports legacy, including competitions related to
2378 Olympic sports, and to promote and encourage sports tourism throughout the state, including
2379 advertising, marketing, branding, and promoting the state for the purpose of attracting sporting
2380 events in the state.
2381 (7) Money deposited into the account shall include a legislative appropriation from the
2382 cumulative sales and use tax revenue increases described in Subsection (8), plus any additional
2383 appropriation made by the Legislature.
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2452 to the Tourism Marketing and Performance Account to the cooperative program described in
2453 this Subsection [
2454 (b) Money allocated to the cooperative program may be awarded to cities, counties,
2455 nonprofit destination marketing organizations, and similar public entities for the purpose of
2456 supplementing money committed by these entities for advertising and promoting sites and
2457 events in the state.
2458 (c) The office shall establish:
2459 (i) an application and approval process for an entity to receive a cooperative program
2460 award, including an application deadline;
2461 (ii) the criteria for awarding a cooperative program award, which shall emphasize
2462 attracting out-of-state visitors, and may include attracting in-state visitors, to sites and events in
2463 the state; and
2464 (iii) eligibility, advertising, timing, and reporting requirements of an entity that
2465 receives a cooperative program award.
2466 (d) Money allocated to the cooperative program that is not used in each fiscal year shall
2467 be returned to the Tourism Marketing Performance Account.
2468 Section 6. Effective date.
2469 This bill takes effect on July 1, 2022.