1     
ENERGY STORAGE AMENDMENTS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Stephen G. Handy

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill amends tax provisions and creates a pilot grant program related to the purchase
10     of energy storage equipment.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     creates a sales and use tax exemption for the purchase of energy storage equipment;
15          ▸     extends the deadline for sales and use tax exemptions for certain electricity
16     facilities;
17          ▸     creates a pilot grant program for the purchase of energy storage assets; and
18          ▸     makes technical and conforming changes.
19     Money Appropriated in this Bill:
20          This bill appropriates to the Office of Energy Development - Energy Storage Asset Pilot
21     Grant Program, as a one-time appropriation:
22          ▸     from the General Fund, one-time, $500,000.
23     Other Special Clauses:
24          This bill provides a special effective date.
25     Utah Code Sections Affected:
26     AMENDS:
27          59-12-102, as last amended by Laws of Utah 2021, Chapters 64, 367, 414 and last

28     amended by Coordination Clause, Laws of Utah 2021, Chapter 367
29          59-12-104, as last amended by Laws of Utah 2021, Chapters 280 and 367
30          63I-1-279, as last amended by Laws of Utah 2021, Chapter 280
31          79-6-401, as renumbered and amended by Laws of Utah 2021, Chapter 280
32     ENACTS:
33          79-6-403, Utah Code Annotated 1953
34     

35     Be it enacted by the Legislature of the state of Utah:
36          Section 1. Section 59-12-102 is amended to read:
37          59-12-102. Definitions.
38          As used in this chapter:
39          (1) "800 service" means a telecommunications service that:
40          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
41          (b) is typically marketed:
42          (i) under the name 800 toll-free calling;
43          (ii) under the name 855 toll-free calling;
44          (iii) under the name 866 toll-free calling;
45          (iv) under the name 877 toll-free calling;
46          (v) under the name 888 toll-free calling; or
47          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
48     Federal Communications Commission.
49          (2) (a) "900 service" means an inbound toll telecommunications service that:
50          (i) a subscriber purchases;
51          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
52     the subscriber's:
53          (A) prerecorded announcement; or
54          (B) live service; and
55          (iii) is typically marketed:
56          (A) under the name 900 service; or
57          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
58     Communications Commission.

59          (b) "900 service" does not include a charge for:
60          (i) a collection service a seller of a telecommunications service provides to a
61     subscriber; or
62          (ii) the following a subscriber sells to the subscriber's customer:
63          (A) a product; or
64          (B) a service.
65          (3) (a) "Admission or user fees" includes season passes.
66          (b) "Admission or user fees" does not include:
67          (i) annual membership dues to private organizations; or
68          (ii) a lesson, including a lesson that involves as part of the lesson equipment or a
69     facility listed in Subsection 59-12-103(1)(f).
70          (4) "Affiliate" or "affiliated person" means a person that, with respect to another
71     person:
72          (a) has an ownership interest of more than 5%, whether direct or indirect, in that other
73     person; or
74          (b) is related to the other person because a third person, or a group of third persons who
75     are affiliated persons with respect to each other, holds an ownership interest of more than 5%,
76     whether direct or indirect, in the related persons.
77          (5) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
78     November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
79     Agreement after November 12, 2002.
80          (6) "Agreement combined tax rate" means the sum of the tax rates:
81          (a) listed under Subsection (7); and
82          (b) that are imposed within a local taxing jurisdiction.
83          (7) "Agreement sales and use tax" means a tax imposed under:
84          (a) Subsection 59-12-103(2)(a)(i)(A);
85          (b) Subsection 59-12-103(2)(b)(i);
86          (c) Subsection 59-12-103(2)(c)(i);
87          (d) Subsection 59-12-103(2)(d);
88          (e) Subsection 59-12-103(2)(e)(i)(A)(I);
89          (f) Section 59-12-204;

90          (g) Section 59-12-401;
91          (h) Section 59-12-402;
92          (i) Section 59-12-402.1;
93          (j) Section 59-12-703;
94          (k) Section 59-12-802;
95          (l) Section 59-12-804;
96          (m) Section 59-12-1102;
97          (n) Section 59-12-1302;
98          (o) Section 59-12-1402;
99          (p) Section 59-12-1802;
100          (q) Section 59-12-2003;
101          (r) Section 59-12-2103;
102          (s) Section 59-12-2213;
103          (t) Section 59-12-2214;
104          (u) Section 59-12-2215;
105          (v) Section 59-12-2216;
106          (w) Section 59-12-2217;
107          (x) Section 59-12-2218;
108          (y) Section 59-12-2219; or
109          (z) Section 59-12-2220.
110          (8) "Aircraft" means the same as that term is defined in Section 72-10-102.
111          (9) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
112          (a) except for:
113          (i) an airline as defined in Section 59-2-102; or
114          (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
115     includes a corporation that is qualified to do business but is not otherwise doing business in the
116     state, of an airline; and
117          (b) that has the workers, expertise, and facilities to perform the following, regardless of
118     whether the business entity performs the following in this state:
119          (i) check, diagnose, overhaul, and repair:
120          (A) an onboard system of a fixed wing turbine powered aircraft; and

121          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
122          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
123     engine;
124          (iii) perform at least the following maintenance on a fixed wing turbine powered
125     aircraft:
126          (A) an inspection;
127          (B) a repair, including a structural repair or modification;
128          (C) changing landing gear; and
129          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
130          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
131     completely apply new paint to the fixed wing turbine powered aircraft; and
132          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
133     results in a change in the fixed wing turbine powered aircraft's certification requirements by the
134     authority that certifies the fixed wing turbine powered aircraft.
135          (10) "Alcoholic beverage" means a beverage that:
136          (a) is suitable for human consumption; and
137          (b) contains .5% or more alcohol by volume.
138          (11) "Alternative energy" means:
139          (a) biomass energy;
140          (b) geothermal energy;
141          (c) hydroelectric energy;
142          (d) solar energy;
143          (e) wind energy; or
144          (f) energy that is derived from:
145          (i) coal-to-liquids;
146          (ii) nuclear fuel;
147          (iii) oil-impregnated diatomaceous earth;
148          (iv) oil sands;
149          (v) oil shale;
150          (vi) petroleum coke; or
151          (vii) waste heat from:

152          (A) an industrial facility; or
153          (B) a power station in which an electric generator is driven through a process in which
154     water is heated, turns into steam, and spins a steam turbine.
155          (12) (a) [Subject to Subsection (12)(b), "alternative] "Alternative energy electricity
156     production facility" means a facility that:
157          (i) uses alternative energy to produce electricity; and
158          (ii) has a production capacity of two megawatts or greater.
159          (b) A facility is an alternative energy electricity production facility regardless of
160     whether the facility is:
161          (i) connected to an electric grid; or
162          (ii) located on the premises of an electricity consumer.
163          (13) (a) "Ancillary service" means a service associated with, or incidental to, the
164     provision of telecommunications service.
165          (b) "Ancillary service" includes:
166          (i) a conference bridging service;
167          (ii) a detailed communications billing service;
168          (iii) directory assistance;
169          (iv) a vertical service; or
170          (v) a voice mail service.
171          (14) "Area agency on aging" means the same as that term is defined in Section
172     62A-3-101.
173          (15) "Assisted amusement device" means an amusement device, skill device, or ride
174     device that is started and stopped by an individual:
175          (a) who is not the purchaser or renter of the right to use or operate the amusement
176     device, skill device, or ride device; and
177          (b) at the direction of the seller of the right to use the amusement device, skill device,
178     or ride device.
179          (16) "Assisted cleaning or washing of tangible personal property" means cleaning or
180     washing of tangible personal property if the cleaning or washing labor is primarily performed
181     by an individual:
182          (a) who is not the purchaser of the cleaning or washing of the tangible personal

183     property; and
184          (b) at the direction of the seller of the cleaning or washing of the tangible personal
185     property.
186          (17) "Authorized carrier" means:
187          (a) in the case of vehicles operated over public highways, the holder of credentials
188     indicating that the vehicle is or will be operated pursuant to both the International Registration
189     Plan and the International Fuel Tax Agreement;
190          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
191     certificate or air carrier's operating certificate; or
192          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
193     stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
194     stock in more than one state.
195          (18) (a) [Except as provided in Subsection (18)(b), "biomass] "Biomass energy" means
196     any of the following that is used as the primary source of energy to produce fuel or electricity:
197          (i) material from a plant or tree; or
198          (ii) other organic matter that is available on a renewable basis, including:
199          (A) slash and brush from forests and woodlands;
200          (B) animal waste;
201          (C) waste vegetable oil;
202          (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
203     wastewater residuals, or through the conversion of a waste material through a nonincineration,
204     thermal conversion process;
205          (E) aquatic plants; and
206          (F) agricultural products.
207          (b) "Biomass energy" does not include:
208          (i) black liquor; or
209          (ii) treated woods.
210          (19) (a) "Bundled transaction" means the sale of two or more items of tangible personal
211     property, products, or services if the tangible personal property, products, or services are:
212          (i) distinct and identifiable; and
213          (ii) sold for one nonitemized price.

214          (b) "Bundled transaction" does not include:
215          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
216     the basis of the selection by the purchaser of the items of tangible personal property included in
217     the transaction;
218          (ii) the sale of real property;
219          (iii) the sale of services to real property;
220          (iv) the retail sale of tangible personal property and a service if:
221          (A) the tangible personal property:
222          (I) is essential to the use of the service; and
223          (II) is provided exclusively in connection with the service; and
224          (B) the service is the true object of the transaction;
225          (v) the retail sale of two services if:
226          (A) one service is provided that is essential to the use or receipt of a second service;
227          (B) the first service is provided exclusively in connection with the second service; and
228          (C) the second service is the true object of the transaction;
229          (vi) a transaction that includes tangible personal property or a product subject to
230     taxation under this chapter and tangible personal property or a product that is not subject to
231     taxation under this chapter if the:
232          (A) seller's purchase price of the tangible personal property or product subject to
233     taxation under this chapter is de minimis; or
234          (B) seller's sales price of the tangible personal property or product subject to taxation
235     under this chapter is de minimis; and
236          (vii) the retail sale of tangible personal property that is not subject to taxation under
237     this chapter and tangible personal property that is subject to taxation under this chapter if:
238          (A) that retail sale includes:
239          (I) food and food ingredients;
240          (II) a drug;
241          (III) durable medical equipment;
242          (IV) mobility enhancing equipment;
243          (V) an over-the-counter drug;
244          (VI) a prosthetic device; or

245          (VII) a medical supply; and
246          (B) subject to Subsection (19)(f):
247          (I) the seller's purchase price of the tangible personal property subject to taxation under
248     this chapter is 50% or less of the seller's total purchase price of that retail sale; or
249          (II) the seller's sales price of the tangible personal property subject to taxation under
250     this chapter is 50% or less of the seller's total sales price of that retail sale.
251          (c) (i) For purposes of Subsection (19)(a)(i), tangible personal property, a product, or a
252     service that is distinct and identifiable does not include:
253          (A) packaging that:
254          (I) accompanies the sale of the tangible personal property, product, or service; and
255          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
256     service;
257          (B) tangible personal property, a product, or a service provided free of charge with the
258     purchase of another item of tangible personal property, a product, or a service; or
259          (C) an item of tangible personal property, a product, or a service included in the
260     definition of "purchase price."
261          (ii) For purposes of Subsection (19)(c)(i)(B), an item of tangible personal property, a
262     product, or a service is provided free of charge with the purchase of another item of tangible
263     personal property, a product, or a service if the sales price of the purchased item of tangible
264     personal property, product, or service does not vary depending on the inclusion of the tangible
265     personal property, product, or service provided free of charge.
266          (d) (i) For purposes of Subsection (19)(a)(ii), property sold for one nonitemized price
267     does not include a price that is separately identified by tangible personal property, product, or
268     service on the following, regardless of whether the following is in paper format or electronic
269     format:
270          (A) a binding sales document; or
271          (B) another supporting sales-related document that is available to a purchaser.
272          (ii) For purposes of Subsection (19)(d)(i), a binding sales document or another
273     supporting sales-related document that is available to a purchaser includes:
274          (A) a bill of sale;
275          (B) a contract;

276          (C) an invoice;
277          (D) a lease agreement;
278          (E) a periodic notice of rates and services;
279          (F) a price list;
280          (G) a rate card;
281          (H) a receipt; or
282          (I) a service agreement.
283          (e) (i) For purposes of Subsection (19)(b)(vi), the sales price of tangible personal
284     property or a product subject to taxation under this chapter is de minimis if:
285          (A) the seller's purchase price of the tangible personal property or product is 10% or
286     less of the seller's total purchase price of the bundled transaction; or
287          (B) the seller's sales price of the tangible personal property or product is 10% or less of
288     the seller's total sales price of the bundled transaction.
289          (ii) For purposes of Subsection (19)(b)(vi), a seller:
290          (A) shall use the seller's purchase price or the seller's sales price to determine if the
291     purchase price or sales price of the tangible personal property or product subject to taxation
292     under this chapter is de minimis; and
293          (B) may not use a combination of the seller's purchase price and the seller's sales price
294     to determine if the purchase price or sales price of the tangible personal property or product
295     subject to taxation under this chapter is de minimis.
296          (iii) For purposes of Subsection (19)(b)(vi), a seller shall use the full term of a service
297     contract to determine if the sales price of tangible personal property or a product is de minimis.
298          (f) For purposes of Subsection (19)(b)(vii)(B), a seller may not use a combination of
299     the seller's purchase price and the seller's sales price to determine if tangible personal property
300     subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
301     price of that retail sale.
302          (20) "Certified automated system" means software certified by the governing board of
303     the agreement that:
304          (a) calculates the agreement sales and use tax imposed within a local taxing
305     jurisdiction:
306          (i) on a transaction; and

307          (ii) in the states that are members of the agreement;
308          (b) determines the amount of agreement sales and use tax to remit to a state that is a
309     member of the agreement; and
310          (c) maintains a record of the transaction described in Subsection (20)(a)(i).
311          (21) "Certified service provider" means an agent certified:
312          (a) by the governing board of the agreement; and
313          (b) to perform a seller's sales and use tax functions for an agreement sales and use tax,
314     as outlined in the contract between the governing board of the agreement and the certified
315     service provider, other than the seller's obligation under Section 59-12-124 to remit a tax on the
316     seller's own purchases.
317          (22) (a) [Subject to Subsection (22)(b), "clothing"] "Clothing" means all human
318     wearing apparel suitable for general use.
319          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
320     commission shall make rules:
321          (i) listing the items that constitute "clothing"; and
322          (ii) that are consistent with the list of items that constitute "clothing" under the
323     agreement.
324          (23) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
325          (24) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
326     fuels that does not constitute industrial use under Subsection [(57)] (58) or residential use
327     under Subsection [(112)] (113).
328          (25) (a) "Common carrier" means a person engaged in or transacting the business of
329     transporting passengers, freight, merchandise, or other property for hire within this state.
330          (b) (i) "Common carrier" does not include a person that, at the time the person is
331     traveling to or from that person's place of employment, transports a passenger to or from the
332     passenger's place of employment.
333          (ii) For purposes of Subsection (25)(b)(i), in accordance with Title 63G, Chapter 3,
334     Utah Administrative Rulemaking Act, the commission may make rules defining what
335     constitutes a person's place of employment.
336          (c) "Common carrier" does not include a person that provides transportation network
337     services, as defined in Section 13-51-102.

338          (26) "Component part" includes:
339          (a) poultry, dairy, and other livestock feed, and their components;
340          (b) baling ties and twine used in the baling of hay and straw;
341          (c) fuel used for providing temperature control of orchards and commercial
342     greenhouses doing a majority of their business in wholesale sales, and for providing power for
343     off-highway type farm machinery; and
344          (d) feed, seeds, and seedlings.
345          (27) "Computer" means an electronic device that accepts information:
346          (a) (i) in digital form; or
347          (ii) in a form similar to digital form; and
348          (b) manipulates that information for a result based on a sequence of instructions.
349          (28) "Computer software" means a set of coded instructions designed to cause:
350          (a) a computer to perform a task; or
351          (b) automatic data processing equipment to perform a task.
352          (29) "Computer software maintenance contract" means a contract that obligates a seller
353     of computer software to provide a customer with:
354          (a) future updates or upgrades to computer software;
355          (b) support services with respect to computer software; or
356          (c) a combination of Subsections (29)(a) and (b).
357          (30) (a) "Conference bridging service" means an ancillary service that links two or
358     more participants of an audio conference call or video conference call.
359          (b) "Conference bridging service" may include providing a telephone number as part of
360     the ancillary service described in Subsection (30)(a).
361          (c) "Conference bridging service" does not include a telecommunications service used
362     to reach the ancillary service described in Subsection (30)(a).
363          (31) "Construction materials" means any tangible personal property that will be
364     converted into real property.
365          (32) "Delivered electronically" means delivered to a purchaser by means other than
366     tangible storage media.
367          (33) (a) "Delivery charge" means a charge:
368          (i) by a seller of:

369          (A) tangible personal property;
370          (B) a product transferred electronically; or
371          (C) a service; and
372          (ii) for preparation and delivery of the tangible personal property, product transferred
373     electronically, or services described in Subsection (33)(a)(i) to a location designated by the
374     purchaser.
375          (b) "Delivery charge" includes a charge for the following:
376          (i) transportation;
377          (ii) shipping;
378          (iii) postage;
379          (iv) handling;
380          (v) crating; or
381          (vi) packing.
382          (34) "Detailed telecommunications billing service" means an ancillary service of
383     separately stating information pertaining to individual calls on a customer's billing statement.
384          (35) "Dietary supplement" means a product, other than tobacco, that:
385          (a) is intended to supplement the diet;
386          (b) contains one or more of the following dietary ingredients:
387          (i) a vitamin;
388          (ii) a mineral;
389          (iii) an herb or other botanical;
390          (iv) an amino acid;
391          (v) a dietary substance for use by humans to supplement the diet by increasing the total
392     dietary intake; or
393          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
394     described in Subsections (35)(b)(i) through (v);
395          (c) (i) except as provided in Subsection (35)(c)(ii), is intended for ingestion in:
396          (A) tablet form;
397          (B) capsule form;
398          (C) powder form;
399          (D) softgel form;

400          (E) gelcap form; or
401          (F) liquid form; or
402          (ii) if the product is not intended for ingestion in a form described in Subsections
403     (35)(c)(i)(A) through (F), is not represented:
404          (A) as conventional food; and
405          (B) for use as a sole item of:
406          (I) a meal; or
407          (II) the diet; and
408          (d) is required to be labeled as a dietary supplement:
409          (i) identifiable by the "Supplemental Facts" box found on the label; and
410          (ii) as required by 21 C.F.R. Sec. 101.36.
411          (36) (a) "Digital audio work" means a work that results from the fixation of a series of
412     musical, spoken, or other sounds.
413          (b) "Digital audio work" includes a ringtone.
414          (37) "Digital audio-visual work" means a series of related images which, when shown
415     in succession, imparts an impression of motion, together with accompanying sounds, if any.
416          (38) "Digital book" means a work that is generally recognized in the ordinary and usual
417     sense as a book.
418          (39) (a) "Direct mail" means printed material delivered or distributed by United States
419     mail or other delivery service:
420          (i) to:
421          (A) a mass audience; or
422          (B) addressees on a mailing list provided:
423          (I) by a purchaser of the mailing list; or
424          (II) at the discretion of the purchaser of the mailing list; and
425          (ii) if the cost of the printed material is not billed directly to the recipients.
426          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
427     purchaser to a seller of direct mail for inclusion in a package containing the printed material.
428          (c) "Direct mail" does not include multiple items of printed material delivered to a
429     single address.
430          (40) "Directory assistance" means an ancillary service of providing:

431          (a) address information; or
432          (b) telephone number information.
433          (41) (a) "Disposable home medical equipment or supplies" means medical equipment
434     or supplies that:
435          (i) cannot withstand repeated use; and
436          (ii) are purchased by, for, or on behalf of a person other than:
437          (A) a health care facility as defined in Section 26-21-2;
438          (B) a health care provider as defined in Section 78B-3-403;
439          (C) an office of a health care provider described in Subsection (41)(a)(ii)(B); or
440          (D) a person similar to a person described in Subsections (41)(a)(ii)(A) through (C).
441          (b) "Disposable home medical equipment or supplies" does not include:
442          (i) a drug;
443          (ii) durable medical equipment;
444          (iii) a hearing aid;
445          (iv) a hearing aid accessory;
446          (v) mobility enhancing equipment; or
447          (vi) tangible personal property used to correct impaired vision, including:
448          (A) eyeglasses; or
449          (B) contact lenses.
450          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
451     commission may by rule define what constitutes medical equipment or supplies.
452          (42) "Drilling equipment manufacturer" means a facility:
453          (a) located in the state;
454          (b) with respect to which 51% or more of the manufacturing activities of the facility
455     consist of manufacturing component parts of drilling equipment;
456          (c) that uses pressure of 800,000 or more pounds per square inch as part of the
457     manufacturing process; and
458          (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
459     manufacturing process.
460          (43) (a) "Drug" means a compound, substance, or preparation, or a component of a
461     compound, substance, or preparation that is:

462          (i) recognized in:
463          (A) the official United States Pharmacopoeia;
464          (B) the official Homeopathic Pharmacopoeia of the United States;
465          (C) the official National Formulary; or
466          (D) a supplement to a publication listed in Subsections (43)(a)(i)(A) through (C);
467          (ii) intended for use in the:
468          (A) diagnosis of disease;
469          (B) cure of disease;
470          (C) mitigation of disease;
471          (D) treatment of disease; or
472          (E) prevention of disease; or
473          (iii) intended to affect:
474          (A) the structure of the body; or
475          (B) any function of the body.
476          (b) "Drug" does not include:
477          (i) food and food ingredients;
478          (ii) a dietary supplement;
479          (iii) an alcoholic beverage; or
480          (iv) a prosthetic device.
481          (44) (a) [Except as provided in Subsection (44)(c), "durable] "Durable medical
482     equipment" means equipment that:
483          (i) can withstand repeated use;
484          (ii) is primarily and customarily used to serve a medical purpose;
485          (iii) generally is not useful to a person in the absence of illness or injury; and
486          (iv) is not worn in or on the body.
487          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
488     equipment described in Subsection (44)(a).
489          (c) "Durable medical equipment" does not include mobility enhancing equipment.
490          (45) (a) "Electricity storage facility" means a facility that:
491          (i) stores electricity; and
492          (ii) has a storage capacity of two megawatts or greater.

493          (b) A facility is an electricity storage facility regardless of whether the facility is:
494          (i) connected to an electric grid;
495          (ii) part of an alternative energy electricity production facility or other electricity
496     production facility; or
497          (iii) located on the premises of an electricity consumer.
498          [(45)] (46) "Electronic" means:
499          (a) relating to technology; and
500          (b) having:
501          (i) electrical capabilities;
502          (ii) digital capabilities;
503          (iii) magnetic capabilities;
504          (iv) wireless capabilities;
505          (v) optical capabilities;
506          (vi) electromagnetic capabilities; or
507          (vii) capabilities similar to Subsections [(45)] (46)(b)(i) through (vi).
508          [(46)] (47) "Electronic financial payment service" means an establishment:
509          (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
510     Clearinghouse Activities, of the 2012 North American Industry Classification System of the
511     federal Executive Office of the President, Office of Management and Budget; and
512          (b) that performs electronic financial payment services.
513          [(47)] (48) "Employee" means the same as that term is defined in Section 59-10-401.
514          [(48)] (49) "Fixed guideway" means a public transit facility that uses and occupies:
515          (a) rail for the use of public transit; or
516          (b) a separate right-of-way for the use of public transit.
517          [(49)] (50) "Fixed wing turbine powered aircraft" means an aircraft that:
518          (a) is powered by turbine engines;
519          (b) operates on jet fuel; and
520          (c) has wings that are permanently attached to the fuselage of the aircraft.
521          [(50)] (51) "Fixed wireless service" means a telecommunications service that provides
522     radio communication between fixed points.
523          [(51)] (52) (a) "Food and food ingredients" means substances:

524          (i) regardless of whether the substances are in:
525          (A) liquid form;
526          (B) concentrated form;
527          (C) solid form;
528          (D) frozen form;
529          (E) dried form; or
530          (F) dehydrated form; and
531          (ii) that are:
532          (A) sold for:
533          (I) ingestion by humans; or
534          (II) chewing by humans; and
535          (B) consumed for the substance's:
536          (I) taste; or
537          (II) nutritional value.
538          (b) "Food and food ingredients" includes an item described in Subsection [(96)]
539     (97)(b)(iii).
540          (c) "Food and food ingredients" does not include:
541          (i) an alcoholic beverage;
542          (ii) tobacco; or
543          (iii) prepared food.
544          [(52)] (53) (a) "Fundraising sales" means sales:
545          (i) (A) made by a school; or
546          (B) made by a school student;
547          (ii) that are for the purpose of raising funds for the school to purchase equipment,
548     materials, or provide transportation; and
549          (iii) that are part of an officially sanctioned school activity.
550          (b) For purposes of Subsection [(52)] (53)(a)(iii), "officially sanctioned school activity"
551     means a school activity:
552          (i) that is conducted in accordance with a formal policy adopted by the school or school
553     district governing the authorization and supervision of fundraising activities;
554          (ii) that does not directly or indirectly compensate an individual teacher or other

555     educational personnel by direct payment, commissions, or payment in kind; and
556          (iii) the net or gross revenues from which are deposited in a dedicated account
557     controlled by the school or school district.
558          [(53)] (54) "Geothermal energy" means energy contained in heat that continuously
559     flows outward from the earth that is used as the sole source of energy to produce electricity.
560          [(54)] (55) "Governing board of the agreement" means the governing board of the
561     agreement that is:
562          (a) authorized to administer the agreement; and
563          (b) established in accordance with the agreement.
564          [(55)] (56) (a) For purposes of Subsection 59-12-104(41), "governmental entity"
565     means:
566          (i) the executive branch of the state, including all departments, institutions, boards,
567     divisions, bureaus, offices, commissions, and committees;
568          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
569     Administrative Office of the Courts, and similar administrative units in the judicial branch;
570          (iii) the legislative branch of the state, including the House of Representatives, the
571     Senate, the Legislative Printing Office, the Office of Legislative Research and General
572     Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
573     Analyst;
574          (iv) the National Guard;
575          (v) an independent entity as defined in Section 63E-1-102; or
576          (vi) a political subdivision as defined in Section 17B-1-102.
577          (b) "Governmental entity" does not include the state systems of public and higher
578     education, including:
579          (i) a school;
580          (ii) the State Board of Education;
581          (iii) the Utah Board of Higher Education; or
582          (iv) an institution of higher education described in Section 53B-1-102.
583          [(56)] (57) "Hydroelectric energy" means water used as the sole source of energy to
584     produce electricity.
585          [(57)] (58) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil,

586     or other fuels:
587          (a) in mining or extraction of minerals;
588          (b) in agricultural operations to produce an agricultural product up to the time of
589     harvest or placing the agricultural product into a storage facility, including:
590          (i) commercial greenhouses;
591          (ii) irrigation pumps;
592          (iii) farm machinery;
593          (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
594     under Title 41, Chapter 1a, Part 2, Registration; and
595          (v) other farming activities;
596          (c) in manufacturing tangible personal property at an establishment described in:
597          (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
598     the federal Executive Office of the President, Office of Management and Budget; or
599          (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
600     American Industry Classification System of the federal Executive Office of the President,
601     Office of Management and Budget;
602          (d) by a scrap recycler if:
603          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
604     one or more of the following items into prepared grades of processed materials for use in new
605     products:
606          (A) iron;
607          (B) steel;
608          (C) nonferrous metal;
609          (D) paper;
610          (E) glass;
611          (F) plastic;
612          (G) textile; or
613          (H) rubber; and
614          (ii) the new products under Subsection [(57)] (58)(d)(i) would otherwise be made with
615     nonrecycled materials; or
616          (e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a

617     cogeneration facility as defined in Section 54-2-1.
618          [(58)] (59) (a) [Except as provided in Subsection (58)(b), "installation] "Installation
619     charge" means a charge for installing:
620          (i) tangible personal property; or
621          (ii) a product transferred electronically.
622          (b) "Installation charge" does not include a charge for:
623          (i) repairs or renovations of:
624          (A) tangible personal property; or
625          (B) a product transferred electronically; or
626          (ii) attaching tangible personal property or a product transferred electronically:
627          (A) to other tangible personal property; and
628          (B) as part of a manufacturing or fabrication process.
629          [(59)] (60) "Institution of higher education" means an institution of higher education
630     listed in Section 53B-2-101.
631          [(60)] (61) (a) "Lease" or "rental" means a transfer of possession or control of tangible
632     personal property or a product transferred electronically for:
633          (i) (A) a fixed term; or
634          (B) an indeterminate term; and
635          (ii) consideration.
636          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
637     amount of consideration may be increased or decreased by reference to the amount realized
638     upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
639     Code.
640          (c) "Lease" or "rental" does not include:
641          (i) a transfer of possession or control of property under a security agreement or
642     deferred payment plan that requires the transfer of title upon completion of the required
643     payments;
644          (ii) a transfer of possession or control of property under an agreement that requires the
645     transfer of title:
646          (A) upon completion of required payments; and
647          (B) if the payment of an option price does not exceed the greater of:

648          (I) $100; or
649          (II) 1% of the total required payments; or
650          (iii) providing tangible personal property along with an operator for a fixed period of
651     time or an indeterminate period of time if the operator is necessary for equipment to perform as
652     designed.
653          (d) For purposes of Subsection [(60)] (61)(c)(iii), an operator is necessary for
654     equipment to perform as designed if the operator's duties exceed the:
655          (i) set-up of tangible personal property;
656          (ii) maintenance of tangible personal property; or
657          (iii) inspection of tangible personal property.
658          [(61)] (62) "Lesson" means a fixed period of time for the duration of which a trained
659     instructor:
660          (a) is present with a student in person or by video; and
661          (b) actively instructs the student, including by providing observation or feedback.
662          [(62)] (63) "Life science establishment" means an establishment in this state that is
663     classified under the following NAICS codes of the 2007 North American Industry
664     Classification System of the federal Executive Office of the President, Office of Management
665     and Budget:
666          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
667          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
668     Manufacturing; or
669          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
670          [(63)] (64) "Life science research and development facility" means a facility owned,
671     leased, or rented by a life science establishment if research and development is performed in
672     51% or more of the total area of the facility.
673          [(64)] (65) "Load and leave" means delivery to a purchaser by use of a tangible storage
674     media if the tangible storage media is not physically transferred to the purchaser.
675          [(65)] (66) "Local taxing jurisdiction" means a:
676          (a) county that is authorized to impose an agreement sales and use tax;
677          (b) city that is authorized to impose an agreement sales and use tax; or
678          (c) town that is authorized to impose an agreement sales and use tax.

679          [(66)] (67) "Manufactured home" means the same as that term is defined in Section
680     15A-1-302.
681          [(67)] (68) "Manufacturing facility" means:
682          (a) an establishment described in:
683          (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
684     the federal Executive Office of the President, Office of Management and Budget; or
685          (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
686     American Industry Classification System of the federal Executive Office of the President,
687     Office of Management and Budget;
688          (b) a scrap recycler if:
689          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
690     one or more of the following items into prepared grades of processed materials for use in new
691     products:
692          (A) iron;
693          (B) steel;
694          (C) nonferrous metal;
695          (D) paper;
696          (E) glass;
697          (F) plastic;
698          (G) textile; or
699          (H) rubber; and
700          (ii) the new products under Subsection [(67)] (68)(b)(i) would otherwise be made with
701     nonrecycled materials; or
702          (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
703     placed in service on or after May 1, 2006.
704          [(68)] (69) (a) "Marketplace" means a physical or electronic place, platform, or forum
705     where tangible personal property, a product transferred electronically, or a service is offered for
706     sale.
707          (b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a
708     dedicated sales software application.
709          [(69)] (70) (a) "Marketplace facilitator" means a person, including an affiliate of the

710     person, that enters into a contract, an agreement, or otherwise with sellers, for consideration, to
711     facilitate the sale of a seller's product through a marketplace that the person owns, operates, or
712     controls and that directly or indirectly:
713          (i) does any of the following:
714          (A) lists, makes available, or advertises tangible personal property, a product
715     transferred electronically, or a service for sale by a marketplace seller on a marketplace that the
716     person owns, operates, or controls;
717          (B) facilitates the sale of a marketplace seller's tangible personal property, product
718     transferred electronically, or service by transmitting or otherwise communicating an offer or
719     acceptance of a retail sale between the marketplace seller and a purchaser using the
720     marketplace;
721          (C) owns, rents, licenses, makes available, or operates any electronic or physical
722     infrastructure or any property, process, method, copyright, trademark, or patent that connects a
723     marketplace seller to a purchaser for the purpose of making a retail sale of tangible personal
724     property, a product transferred electronically, or a service;
725          (D) provides a marketplace for making, or otherwise facilitates, a retail sale of tangible
726     personal property, a product transferred electronically, or a service, regardless of ownership or
727     control of the tangible personal property, the product transferred electronically, or the service
728     that is the subject of the retail sale;
729          (E) provides software development or research and development activities related to
730     any activity described in this Subsection [(69)] (70)(a)(i), if the software development or
731     research and development activity is directly related to the person's marketplace;
732          (F) provides or offers fulfillment or storage services for a marketplace seller;
733          (G) sets prices for the sale of tangible personal property, a product transferred
734     electronically, or a service by a marketplace seller;
735          (H) provides or offers customer service to a marketplace seller or a marketplace seller's
736     purchaser or accepts or assists with taking orders, returns, or exchanges of tangible personal
737     property, a product transferred electronically, or a service sold by a marketplace seller on the
738     person's marketplace; or
739          (I) brands or otherwise identifies sales as those of the person; and
740          (ii) does any of the following:

741          (A) collects the sales price or purchase price of a retail sale of tangible personal
742     property, a product transferred electronically, or a service;
743          (B) provides payment processing services for a retail sale of tangible personal property,
744     a product transferred electronically, or a service;
745          (C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee, closing
746     fee, a fee for inserting or making available tangible personal property, a product transferred
747     electronically, or a service on the person's marketplace, or other consideration for the
748     facilitation of a retail sale of tangible personal property, a product transferred electronically, or
749     a service, regardless of ownership or control of the tangible personal property, the product
750     transferred electronically, or the service that is the subject of the retail sale;
751          (D) through terms and conditions, an agreement, or another arrangement with a third
752     person, collects payment from a purchase for a retail sale of tangible personal property, a
753     product transferred electronically, or a service and transmits that payment to the marketplace
754     seller, regardless of whether the third person receives compensation or other consideration in
755     exchange for the service; or
756          (E) provides a virtual currency for a purchaser to use to purchase tangible personal
757     property, a product transferred electronically, or service offered for sale.
758          (b) "Marketplace facilitator" does not include:
759          (i) a person that only provides payment processing services; or
760          (ii) a person described in Subsection [(69)] (70)(a) to the extent the person is
761     facilitating a sale for a seller that is a restaurant as defined in Section 59-12-602.
762          [(70)] (71) "Marketplace seller" means a seller that makes one or more retail sales
763     through a marketplace that a marketplace facilitator owns, operates, or controls, regardless of
764     whether the seller is required to be registered to collect and remit the tax under this part.
765          [(71)] (72) "Member of the immediate family of the producer" means a person who is
766     related to a producer described in Subsection 59-12-104(20)(a) as a:
767          (a) child or stepchild, regardless of whether the child or stepchild is:
768          (i) an adopted child or adopted stepchild; or
769          (ii) a foster child or foster stepchild;
770          (b) grandchild or stepgrandchild;
771          (c) grandparent or stepgrandparent;

772          (d) nephew or stepnephew;
773          (e) niece or stepniece;
774          (f) parent or stepparent;
775          (g) sibling or stepsibling;
776          (h) spouse;
777          (i) person who is the spouse of a person described in Subsections [(71)] (72)(a) through
778     (g); or
779          (j) person similar to a person described in Subsections [(71)] (72)(a) through (i) as
780     determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
781     Administrative Rulemaking Act.
782          [(72)] (73) "Mobile home" means the same as that term is defined in Section
783     15A-1-302.
784          [(73)] (74) "Mobile telecommunications service" means the same as that term is
785     defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
786          [(74)] (75) (a) "Mobile wireless service" means a telecommunications service,
787     regardless of the technology used, if:
788          (i) the origination point of the conveyance, routing, or transmission is not fixed;
789          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
790          (iii) the origination point described in Subsection [(74)] (75)(a)(i) and the termination
791     point described in Subsection [(74)] (75)(a)(ii) are not fixed.
792          (b) "Mobile wireless service" includes a telecommunications service that is provided
793     by a commercial mobile radio service provider.
794          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
795     commission may by rule define "commercial mobile radio service provider."
796          [(75)] (76) (a) [Except as provided in Subsection (75)(c), "mobility] "Mobility
797     enhancing equipment" means equipment that is:
798          (i) primarily and customarily used to provide or increase the ability to move from one
799     place to another;
800          (ii) appropriate for use in a:
801          (A) home; or
802          (B) motor vehicle; and

803          (iii) not generally used by persons with normal mobility.
804          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
805     the equipment described in Subsection [(75)] (76)(a).
806          (c) "Mobility enhancing equipment" does not include:
807          (i) a motor vehicle;
808          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
809     vehicle manufacturer;
810          (iii) durable medical equipment; or
811          (iv) a prosthetic device.
812          [(76)] (77) "Model 1 seller" means a seller registered under the agreement that has
813     selected a certified service provider as the seller's agent to perform the seller's sales and use tax
814     functions for agreement sales and use taxes, as outlined in the contract between the governing
815     board of the agreement and the certified service provider, other than the seller's obligation
816     under Section 59-12-124 to remit a tax on the seller's own purchases.
817          [(77)] (78) "Model 2 seller" means a seller registered under the agreement that:
818          (a) except as provided in Subsection [(77)] (78)(b), has selected a certified automated
819     system to perform the seller's sales tax functions for agreement sales and use taxes; and
820          (b) retains responsibility for remitting all of the sales tax:
821          (i) collected by the seller; and
822          (ii) to the appropriate local taxing jurisdiction.
823          [(78)] (79) (a) [Subject to Subsection (78)(b), "model] "Model 3 seller" means a seller
824     registered under the agreement that has:
825          (i) sales in at least five states that are members of the agreement;
826          (ii) total annual sales revenues of at least $500,000,000;
827          (iii) a proprietary system that calculates the amount of tax:
828          (A) for an agreement sales and use tax; and
829          (B) due to each local taxing jurisdiction; and
830          (iv) entered into a performance agreement with the governing board of the agreement.
831          (b) For purposes of Subsection [(78)] (79)(a), "model 3 seller" includes an affiliated
832     group of sellers using the same proprietary system.
833          [(79)] (80) "Model 4 seller" means a seller that is registered under the agreement and is

834     not a model 1 seller, model 2 seller, or model 3 seller.
835          [(80)] (81) "Modular home" means a modular unit as defined in Section 15A-1-302.
836          [(81)] (82) "Motor vehicle" means the same as that term is defined in Section
837     41-1a-102.
838          [(82)] (83) "Oil sands" means impregnated bituminous sands that:
839          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
840     other hydrocarbons, or otherwise treated;
841          (b) yield mixtures of liquid hydrocarbon; and
842          (c) require further processing other than mechanical blending before becoming finished
843     petroleum products.
844          [(83)] (84) "Oil shale" means a group of fine black to dark brown shales containing
845     kerogen material that yields petroleum upon heating and distillation.
846          [(84)] (85) "Optional computer software maintenance contract" means a computer
847     software maintenance contract that a customer is not obligated to purchase as a condition to the
848     retail sale of computer software.
849          [(85)] (86) (a) "Other fuels" means products that burn independently to produce heat or
850     energy.
851          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
852     personal property.
853          [(86)] (87) (a) "Paging service" means a telecommunications service that provides
854     transmission of a coded radio signal for the purpose of activating a specific pager.
855          (b) For purposes of Subsection [(86)] (87)(a), the transmission of a coded radio signal
856     includes a transmission by message or sound.
857          [(87)] (88) "Pawn transaction" means the same as that term is defined in Section
858     13-32a-102.
859          [(88)] (89) "Pawnbroker" means the same as that term is defined in Section
860     13-32a-102.
861          [(89)] (90) (a) "Permanently attached to real property" means that for tangible personal
862     property attached to real property:
863          (i) the attachment of the tangible personal property to the real property:
864          (A) is essential to the use of the tangible personal property; and

865          (B) suggests that the tangible personal property will remain attached to the real
866     property in the same place over the useful life of the tangible personal property; or
867          (ii) if the tangible personal property is detached from the real property, the detachment
868     would:
869          (A) cause substantial damage to the tangible personal property; or
870          (B) require substantial alteration or repair of the real property to which the tangible
871     personal property is attached.
872          (b) "Permanently attached to real property" includes:
873          (i) the attachment of an accessory to the tangible personal property if the accessory is:
874          (A) essential to the operation of the tangible personal property; and
875          (B) attached only to facilitate the operation of the tangible personal property;
876          (ii) a temporary detachment of tangible personal property from real property for a
877     repair or renovation if the repair or renovation is performed where the tangible personal
878     property and real property are located; or
879          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
880     Subsection [(89)] (90)(c)(iii) or (iv).
881          (c) "Permanently attached to real property" does not include:
882          (i) the attachment of portable or movable tangible personal property to real property if
883     that portable or movable tangible personal property is attached to real property only for:
884          (A) convenience;
885          (B) stability; or
886          (C) for an obvious temporary purpose;
887          (ii) the detachment of tangible personal property from real property except for the
888     detachment described in Subsection [(89)] (90)(b)(ii);
889          (iii) an attachment of the following tangible personal property to real property if the
890     attachment to real property is only through a line that supplies water, electricity, gas,
891     telecommunications, cable, or supplies a similar item as determined by the commission by rule
892     made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
893          (A) a computer;
894          (B) a telephone;
895          (C) a television; or

896          (D) tangible personal property similar to Subsections [(89)] (90)(c)(iii)(A) through (C)
897     as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
898     Administrative Rulemaking Act; or
899          (iv) an item listed in Subsection [(130)] (131)(c).
900          [(90)] (91) "Person" includes any individual, firm, partnership, joint venture,
901     association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
902     city, municipality, district, or other local governmental entity of the state, or any group or
903     combination acting as a unit.
904          [(91)] (92) "Place of primary use":
905          (a) for telecommunications service other than mobile telecommunications service,
906     means the street address representative of where the customer's use of the telecommunications
907     service primarily occurs, which shall be:
908          (i) the residential street address of the customer; or
909          (ii) the primary business street address of the customer; or
910          (b) for mobile telecommunications service, means the same as that term is defined in
911     the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
912          [(92)] (93) (a) "Postpaid calling service" means a telecommunications service a person
913     obtains by making a payment on a call-by-call basis:
914          (i) through the use of a:
915          (A) bank card;
916          (B) credit card;
917          (C) debit card; or
918          (D) travel card; or
919          (ii) by a charge made to a telephone number that is not associated with the origination
920     or termination of the telecommunications service.
921          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
922     service, that would be a prepaid wireless calling service if the service were exclusively a
923     telecommunications service.
924          [(93)] (94) "Postproduction" means an activity related to the finishing or duplication of
925     a medium described in Subsection 59-12-104(54)(a).
926          [(94)] (95) "Prepaid calling service" means a telecommunications service:

927          (a) that allows a purchaser access to telecommunications service that is exclusively
928     telecommunications service;
929          (b) that:
930          (i) is paid for in advance; and
931          (ii) enables the origination of a call using an:
932          (A) access number; or
933          (B) authorization code;
934          (c) that is dialed:
935          (i) manually; or
936          (ii) electronically; and
937          (d) sold in predetermined units or dollars that decline:
938          (i) by a known amount; and
939          (ii) with use.
940          [(95)] (96) "Prepaid wireless calling service" means a telecommunications service:
941          (a) that provides the right to utilize:
942          (i) mobile wireless service; and
943          (ii) other service that is not a telecommunications service, including:
944          (A) the download of a product transferred electronically;
945          (B) a content service; or
946          (C) an ancillary service;
947          (b) that:
948          (i) is paid for in advance; and
949          (ii) enables the origination of a call using an:
950          (A) access number; or
951          (B) authorization code;
952          (c) that is dialed:
953          (i) manually; or
954          (ii) electronically; and
955          (d) sold in predetermined units or dollars that decline:
956          (i) by a known amount; and
957          (ii) with use.

958          [(96)] (97) (a) "Prepared food" means:
959          (i) food:
960          (A) sold in a heated state; or
961          (B) heated by a seller;
962          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
963     item; or
964          (iii) except as provided in Subsection [(96)] (97)(c), food sold with an eating utensil
965     provided by the seller, including a:
966          (A) plate;
967          (B) knife;
968          (C) fork;
969          (D) spoon;
970          (E) glass;
971          (F) cup;
972          (G) napkin; or
973          (H) straw.
974          (b) "Prepared food" does not include:
975          (i) food that a seller only:
976          (A) cuts;
977          (B) repackages; or
978          (C) pasteurizes; or
979          (ii) (A) the following:
980          (I) raw egg;
981          (II) raw fish;
982          (III) raw meat;
983          (IV) raw poultry; or
984          (V) a food containing an item described in Subsections [(96)] (97)(b)(ii)(A)(I) through
985     (IV); and
986          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
987     Food and Drug Administration's Food Code that a consumer cook the items described in
988     Subsection [(96)] (97)(b)(ii)(A) to prevent food borne illness; or

989          (iii) the following if sold without eating utensils provided by the seller:
990          (A) food and food ingredients sold by a seller if the seller's proper primary
991     classification under the 2002 North American Industry Classification System of the federal
992     Executive Office of the President, Office of Management and Budget, is manufacturing in
993     Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
994     Manufacturing;
995          (B) food and food ingredients sold in an unheated state:
996          (I) by weight or volume; and
997          (II) as a single item; or
998          (C) a bakery item, including:
999          (I) a bagel;
1000          (II) a bar;
1001          (III) a biscuit;
1002          (IV) bread;
1003          (V) a bun;
1004          (VI) a cake;
1005          (VII) a cookie;
1006          (VIII) a croissant;
1007          (IX) a danish;
1008          (X) a donut;
1009          (XI) a muffin;
1010          (XII) a pastry;
1011          (XIII) a pie;
1012          (XIV) a roll;
1013          (XV) a tart;
1014          (XVI) a torte; or
1015          (XVII) a tortilla.
1016          (c) An eating utensil provided by the seller does not include the following used to
1017     transport the food:
1018          (i) a container; or
1019          (ii) packaging.

1020          [(97)] (98) "Prescription" means an order, formula, or recipe that is issued:
1021          (a) (i) orally;
1022          (ii) in writing;
1023          (iii) electronically; or
1024          (iv) by any other manner of transmission; and
1025          (b) by a licensed practitioner authorized by the laws of a state.
1026          [(98)] (99) (a) [Except as provided in Subsection (98)(b)(ii) or (iii), "prewritten]
1027     "Prewritten computer software" means computer software that is not designed and developed:
1028          (i) by the author or other creator of the computer software; and
1029          (ii) to the specifications of a specific purchaser.
1030          (b) "Prewritten computer software" includes:
1031          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
1032     software is not designed and developed:
1033          (A) by the author or other creator of the computer software; and
1034          (B) to the specifications of a specific purchaser;
1035          (ii) computer software designed and developed by the author or other creator of the
1036     computer software to the specifications of a specific purchaser if the computer software is sold
1037     to a person other than the purchaser; or
1038          (iii) except as provided in Subsection [(98)] (99)(c), prewritten computer software or a
1039     prewritten portion of prewritten computer software:
1040          (A) that is modified or enhanced to any degree; and
1041          (B) if the modification or enhancement described in Subsection [(98)] (99)(b)(iii)(A) is
1042     designed and developed to the specifications of a specific purchaser.
1043          (c) "Prewritten computer software" does not include a modification or enhancement
1044     described in Subsection [(98)] (99)(b)(iii) if the charges for the modification or enhancement
1045     are:
1046          (i) reasonable; and
1047          (ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), separately stated on the
1048     invoice or other statement of price provided to the purchaser at the time of sale or later, as
1049     demonstrated by:
1050          (A) the books and records the seller keeps at the time of the transaction in the regular

1051     course of business, including books and records the seller keeps at the time of the transaction in
1052     the regular course of business for nontax purposes;
1053          (B) a preponderance of the facts and circumstances at the time of the transaction; and
1054          (C) the understanding of all of the parties to the transaction.
1055          [(99)] (100) (a) "Private communications service" means a telecommunications
1056     service:
1057          (i) that entitles a customer to exclusive or priority use of one or more communications
1058     channels between or among termination points; and
1059          (ii) regardless of the manner in which the one or more communications channels are
1060     connected.
1061          (b) "Private communications service" includes the following provided in connection
1062     with the use of one or more communications channels:
1063          (i) an extension line;
1064          (ii) a station;
1065          (iii) switching capacity; or
1066          (iv) another associated service that is provided in connection with the use of one or
1067     more communications channels as defined in Section 59-12-215.
1068          [(100)] (101) (a) [Except as provided in Subsection (100)(b), "product] "Product
1069     transferred electronically" means a product transferred electronically that would be subject to a
1070     tax under this chapter if that product was transferred in a manner other than electronically.
1071          (b) "Product transferred electronically" does not include:
1072          (i) an ancillary service;
1073          (ii) computer software; or
1074          (iii) a telecommunications service.
1075          [(101)] (102) (a) "Prosthetic device" means a device that is worn on or in the body to:
1076          (i) artificially replace a missing portion of the body;
1077          (ii) prevent or correct a physical deformity or physical malfunction; or
1078          (iii) support a weak or deformed portion of the body.
1079          (b) "Prosthetic device" includes:
1080          (i) parts used in the repairs or renovation of a prosthetic device;
1081          (ii) replacement parts for a prosthetic device;

1082          (iii) a dental prosthesis; or
1083          (iv) a hearing aid.
1084          (c) "Prosthetic device" does not include:
1085          (i) corrective eyeglasses; or
1086          (ii) contact lenses.
1087          [(102)] (103) (a) "Protective equipment" means an item:
1088          (i) for human wear; and
1089          (ii) that is:
1090          (A) designed as protection:
1091          (I) to the wearer against injury or disease; or
1092          (II) against damage or injury of other persons or property; and
1093          (B) not suitable for general use.
1094          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1095     commission shall make rules:
1096          (i) listing the items that constitute "protective equipment"; and
1097          (ii) that are consistent with the list of items that constitute "protective equipment"
1098     under the agreement.
1099          [(103)] (104) (a) For purposes of Subsection 59-12-104(41), "publication" means any
1100     written or printed matter, other than a photocopy:
1101          (i) regardless of:
1102          (A) characteristics;
1103          (B) copyright;
1104          (C) form;
1105          (D) format;
1106          (E) method of reproduction; or
1107          (F) source; and
1108          (ii) made available in printed or electronic format.
1109          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1110     commission may by rule define the term "photocopy."
1111          [(104)] (105) (a) "Purchase price" and "sales price" mean the total amount of
1112     consideration:

1113          (i) valued in money; and
1114          (ii) for which tangible personal property, a product transferred electronically, or
1115     services are:
1116          (A) sold;
1117          (B) leased; or
1118          (C) rented.
1119          (b) "Purchase price" and "sales price" include:
1120          (i) the seller's cost of the tangible personal property, a product transferred
1121     electronically, or services sold;
1122          (ii) expenses of the seller, including:
1123          (A) the cost of materials used;
1124          (B) a labor cost;
1125          (C) a service cost;
1126          (D) interest;
1127          (E) a loss;
1128          (F) the cost of transportation to the seller; or
1129          (G) a tax imposed on the seller;
1130          (iii) a charge by the seller for any service necessary to complete the sale; or
1131          (iv) consideration a seller receives from a person other than the purchaser if:
1132          (A) (I) the seller actually receives consideration from a person other than the purchaser;
1133     and
1134          (II) the consideration described in Subsection [(104)] (105)(b)(iv)(A)(I) is directly
1135     related to a price reduction or discount on the sale;
1136          (B) the seller has an obligation to pass the price reduction or discount through to the
1137     purchaser;
1138          (C) the amount of the consideration attributable to the sale is fixed and determinable by
1139     the seller at the time of the sale to the purchaser; and
1140          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1141     seller to claim a price reduction or discount; and
1142          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1143     coupon, or other documentation with the understanding that the person other than the seller

1144     will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1145          (II) the purchaser identifies that purchaser to the seller as a member of a group or
1146     organization allowed a price reduction or discount, except that a preferred customer card that is
1147     available to any patron of a seller does not constitute membership in a group or organization
1148     allowed a price reduction or discount; or
1149          (III) the price reduction or discount is identified as a third party price reduction or
1150     discount on the:
1151          (Aa) invoice the purchaser receives; or
1152          (Bb) certificate, coupon, or other documentation the purchaser presents.
1153          (c) "Purchase price" and "sales price" do not include:
1154          (i) a discount:
1155          (A) in a form including:
1156          (I) cash;
1157          (II) term; or
1158          (III) coupon;
1159          (B) that is allowed by a seller;
1160          (C) taken by a purchaser on a sale; and
1161          (D) that is not reimbursed by a third party; or
1162          (ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), the following if separately
1163     stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
1164     sale or later, as demonstrated by the books and records the seller keeps at the time of the
1165     transaction in the regular course of business, including books and records the seller keeps at the
1166     time of the transaction in the regular course of business for nontax purposes, by a
1167     preponderance of the facts and circumstances at the time of the transaction, and by the
1168     understanding of all of the parties to the transaction:
1169          (A) the following from credit extended on the sale of tangible personal property or
1170     services:
1171          (I) a carrying charge;
1172          (II) a financing charge; or
1173          (III) an interest charge;
1174          (B) a delivery charge;

1175          (C) an installation charge;
1176          (D) a manufacturer rebate on a motor vehicle; or
1177          (E) a tax or fee legally imposed directly on the consumer.
1178          [(105)] (106) "Purchaser" means a person to whom:
1179          (a) a sale of tangible personal property is made;
1180          (b) a product is transferred electronically; or
1181          (c) a service is furnished.
1182          [(106)] (107) "Qualifying data center" means a data center facility that:
1183          (a) houses a group of networked server computers in one physical location in order to
1184     disseminate, manage, and store data and information;
1185          (b) is located in the state;
1186          (c) is a new operation constructed on or after July 1, 2016;
1187          (d) consists of one or more buildings that total 150,000 or more square feet;
1188          (e) is owned or leased by:
1189          (i) the operator of the data center facility; or
1190          (ii) a person under common ownership, as defined in Section 59-7-101, of the operator
1191     of the data center facility; and
1192          (f) is located on one or more parcels of land that are owned or leased by:
1193          (i) the operator of the data center facility; or
1194          (ii) a person under common ownership, as defined in Section 59-7-101, of the operator
1195     of the data center facility.
1196          [(107)] (108) "Regularly rented" means:
1197          (a) rented to a guest for value three or more times during a calendar year; or
1198          (b) advertised or held out to the public as a place that is regularly rented to guests for
1199     value.
1200          [(108)] (109) "Rental" means the same as that term is defined in Subsection [(60)] (61).
1201          [(109)] (110) (a) [Except as provided in Subsection (109)(b), "repairs] "Repairs or
1202     renovations of tangible personal property" means:
1203          (i) a repair or renovation of tangible personal property that is not permanently attached
1204     to real property; or
1205          (ii) attaching tangible personal property or a product transferred electronically to other

1206     tangible personal property or detaching tangible personal property or a product transferred
1207     electronically from other tangible personal property if:
1208          (A) the other tangible personal property to which the tangible personal property or
1209     product transferred electronically is attached or from which the tangible personal property or
1210     product transferred electronically is detached is not permanently attached to real property; and
1211          (B) the attachment of tangible personal property or a product transferred electronically
1212     to other tangible personal property or detachment of tangible personal property or a product
1213     transferred electronically from other tangible personal property is made in conjunction with a
1214     repair or replacement of tangible personal property or a product transferred electronically.
1215          (b) "Repairs or renovations of tangible personal property" does not include:
1216          (i) attaching prewritten computer software to other tangible personal property if the
1217     other tangible personal property to which the prewritten computer software is attached is not
1218     permanently attached to real property; or
1219          (ii) detaching prewritten computer software from other tangible personal property if the
1220     other tangible personal property from which the prewritten computer software is detached is
1221     not permanently attached to real property.
1222          [(110)] (111) "Research and development" means the process of inquiry or
1223     experimentation aimed at the discovery of facts, devices, technologies, or applications and the
1224     process of preparing those devices, technologies, or applications for marketing.
1225          [(111)] (112) (a) "Residential telecommunications services" means a
1226     telecommunications service or an ancillary service that is provided to an individual for personal
1227     use:
1228          (i) at a residential address; or
1229          (ii) at an institution, including a nursing home or a school, if the telecommunications
1230     service or ancillary service is provided to and paid for by the individual residing at the
1231     institution rather than the institution.
1232          (b) For purposes of Subsection [(111)] (112)(a)(i), a residential address includes an:
1233          (i) apartment; or
1234          (ii) other individual dwelling unit.
1235          [(112)] (113) "Residential use" means the use in or around a home, apartment building,
1236     sleeping quarters, and similar facilities or accommodations.

1237          [(113)] (114) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
1238     other than:
1239          (a) resale;
1240          (b) sublease; or
1241          (c) subrent.
1242          [(114)] (115) (a) "Retailer" means any person, unless prohibited by the Constitution of
1243     the United States or federal law, that is engaged in a regularly organized business in tangible
1244     personal property or any other taxable transaction under Subsection 59-12-103(1), and who is
1245     selling to the user or consumer and not for resale.
1246          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1247     engaged in the business of selling to users or consumers within the state.
1248          [(115)] (116) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
1249     otherwise, in any manner, of tangible personal property or any other taxable transaction under
1250     Subsection 59-12-103(1), for consideration.
1251          (b) "Sale" includes:
1252          (i) installment and credit sales;
1253          (ii) any closed transaction constituting a sale;
1254          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1255     chapter;
1256          (iv) any transaction if the possession of property is transferred but the seller retains the
1257     title as security for the payment of the price; and
1258          (v) any transaction under which right to possession, operation, or use of any article of
1259     tangible personal property is granted under a lease or contract and the transfer of possession
1260     would be taxable if an outright sale were made.
1261          [(116)] (117) "Sale at retail" means the same as that term is defined in Subsection
1262     [(113)] (114).
1263          [(117)] (118) "Sale-leaseback transaction" means a transaction by which title to
1264     tangible personal property or a product transferred electronically that is subject to a tax under
1265     this chapter is transferred:
1266          (a) by a purchaser-lessee;
1267          (b) to a lessor;

1268          (c) for consideration; and
1269          (d) if:
1270          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1271     of the tangible personal property or product transferred electronically;
1272          (ii) the sale of the tangible personal property or product transferred electronically to the
1273     lessor is intended as a form of financing:
1274          (A) for the tangible personal property or product transferred electronically; and
1275          (B) to the purchaser-lessee; and
1276          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1277     is required to:
1278          (A) capitalize the tangible personal property or product transferred electronically for
1279     financial reporting purposes; and
1280          (B) account for the lease payments as payments made under a financing arrangement.
1281          [(118)] (119) "Sales price" means the same as that term is defined in Subsection
1282     [(104)] (105).
1283          [(119)] (120) (a) "Sales relating to schools" means the following sales by, amounts
1284     paid to, or amounts charged by a school:
1285          (i) sales that are directly related to the school's educational functions or activities
1286     including:
1287          (A) the sale of:
1288          (I) textbooks;
1289          (II) textbook fees;
1290          (III) laboratory fees;
1291          (IV) laboratory supplies; or
1292          (V) safety equipment;
1293          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1294     that:
1295          (I) a student is specifically required to wear as a condition of participation in a
1296     school-related event or school-related activity; and
1297          (II) is not readily adaptable to general or continued usage to the extent that it takes the
1298     place of ordinary clothing;

1299          (C) sales of the following if the net or gross revenues generated by the sales are
1300     deposited into a school district fund or school fund dedicated to school meals:
1301          (I) food and food ingredients; or
1302          (II) prepared food; or
1303          (D) transportation charges for official school activities; or
1304          (ii) amounts paid to or amounts charged by a school for admission to a school-related
1305     event or school-related activity.
1306          (b) "Sales relating to schools" does not include:
1307          (i) bookstore sales of items that are not educational materials or supplies;
1308          (ii) except as provided in Subsection [(119)] (120)(a)(i)(B):
1309          (A) clothing;
1310          (B) clothing accessories or equipment;
1311          (C) protective equipment; or
1312          (D) sports or recreational equipment; or
1313          (iii) amounts paid to or amounts charged by a school for admission to a school-related
1314     event or school-related activity if the amounts paid or charged are passed through to a person:
1315          (A) other than a:
1316          (I) school;
1317          (II) nonprofit organization authorized by a school board or a governing body of a
1318     private school to organize and direct a competitive secondary school activity; or
1319          (III) nonprofit association authorized by a school board or a governing body of a
1320     private school to organize and direct a competitive secondary school activity; and
1321          (B) that is required to collect sales and use taxes under this chapter.
1322          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1323     commission may make rules defining the term "passed through."
1324          [(120)] (121) For purposes of this section and Section 59-12-104, "school" means:
1325          (a) an elementary school or a secondary school that:
1326          (i) is a:
1327          (A) public school; or
1328          (B) private school; and
1329          (ii) provides instruction for one or more grades kindergarten through 12; or

1330          (b) a public school district.
1331          [(121)] (122) (a) "Seller" means a person that makes a sale, lease, or rental of:
1332          (i) tangible personal property;
1333          (ii) a product transferred electronically; or
1334          (iii) a service.
1335          (b) "Seller" includes a marketplace facilitator.
1336          [(122)] (123) (a) "Semiconductor fabricating, processing, research, or development
1337     materials" means tangible personal property or a product transferred electronically if the
1338     tangible personal property or product transferred electronically is:
1339          (i) used primarily in the process of:
1340          (A) (I) manufacturing a semiconductor;
1341          (II) fabricating a semiconductor; or
1342          (III) research or development of a:
1343          (Aa) semiconductor; or
1344          (Bb) semiconductor manufacturing process; or
1345          (B) maintaining an environment suitable for a semiconductor; or
1346          (ii) consumed primarily in the process of:
1347          (A) (I) manufacturing a semiconductor;
1348          (II) fabricating a semiconductor; or
1349          (III) research or development of a:
1350          (Aa) semiconductor; or
1351          (Bb) semiconductor manufacturing process; or
1352          (B) maintaining an environment suitable for a semiconductor.
1353          (b) "Semiconductor fabricating, processing, research, or development materials"
1354     includes:
1355          (i) parts used in the repairs or renovations of tangible personal property or a product
1356     transferred electronically described in Subsection [(122)] (123)(a); or
1357          (ii) a chemical, catalyst, or other material used to:
1358          (A) produce or induce in a semiconductor a:
1359          (I) chemical change; or
1360          (II) physical change;

1361          (B) remove impurities from a semiconductor; or
1362          (C) improve the marketable condition of a semiconductor.
1363          [(123)] (124) "Senior citizen center" means a facility having the primary purpose of
1364     providing services to the aged as defined in Section 62A-3-101.
1365          [(124)] (125) (a) Subject to Subsections [(124)] (125)(b) and (c), "short-term lodging
1366     consumable" means tangible personal property that:
1367          (i) a business that provides accommodations and services described in Subsection
1368     59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
1369     to a purchaser;
1370          (ii) is intended to be consumed by the purchaser; and
1371          (iii) is:
1372          (A) included in the purchase price of the accommodations and services; and
1373          (B) not separately stated on an invoice, bill of sale, or other similar document provided
1374     to the purchaser.
1375          (b) "Short-term lodging consumable" includes:
1376          (i) a beverage;
1377          (ii) a brush or comb;
1378          (iii) a cosmetic;
1379          (iv) a hair care product;
1380          (v) lotion;
1381          (vi) a magazine;
1382          (vii) makeup;
1383          (viii) a meal;
1384          (ix) mouthwash;
1385          (x) nail polish remover;
1386          (xi) a newspaper;
1387          (xii) a notepad;
1388          (xiii) a pen;
1389          (xiv) a pencil;
1390          (xv) a razor;
1391          (xvi) saline solution;

1392          (xvii) a sewing kit;
1393          (xviii) shaving cream;
1394          (xix) a shoe shine kit;
1395          (xx) a shower cap;
1396          (xxi) a snack item;
1397          (xxii) soap;
1398          (xxiii) toilet paper;
1399          (xxiv) a toothbrush;
1400          (xxv) toothpaste; or
1401          (xxvi) an item similar to Subsections [(124)] (125)(b)(i) through (xxv) as the
1402     commission may provide by rule made in accordance with Title 63G, Chapter 3, Utah
1403     Administrative Rulemaking Act.
1404          (c) "Short-term lodging consumable" does not include:
1405          (i) tangible personal property that is cleaned or washed to allow the tangible personal
1406     property to be reused; or
1407          (ii) a product transferred electronically.
1408          [(125)] (126) "Simplified electronic return" means the electronic return:
1409          (a) described in Section 318(C) of the agreement; and
1410          (b) approved by the governing board of the agreement.
1411          [(126)] (127) "Solar energy" means the sun used as the sole source of energy for
1412     producing electricity.
1413          [(127)] (128) (a) "Sports or recreational equipment" means an item:
1414          (i) designed for human use; and
1415          (ii) that is:
1416          (A) worn in conjunction with:
1417          (I) an athletic activity; or
1418          (II) a recreational activity; and
1419          (B) not suitable for general use.
1420          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1421     commission shall make rules:
1422          (i) listing the items that constitute "sports or recreational equipment"; and

1423          (ii) that are consistent with the list of items that constitute "sports or recreational
1424     equipment" under the agreement.
1425          [(128)] (129) "State" means the state of Utah, its departments, and agencies.
1426          [(129)] (130) "Storage" means any keeping or retention of tangible personal property or
1427     any other taxable transaction under Subsection 59-12-103(1), in this state for any purpose
1428     except sale in the regular course of business.
1429          [(130)] (131) (a) [Except as provided in Subsection (130)(d) or (e), "tangible]
1430     "Tangible personal property" means personal property that:
1431          (i) may be:
1432          (A) seen;
1433          (B) weighed;
1434          (C) measured;
1435          (D) felt; or
1436          (E) touched; or
1437          (ii) is in any manner perceptible to the senses.
1438          (b) "Tangible personal property" includes:
1439          (i) electricity;
1440          (ii) water;
1441          (iii) gas;
1442          (iv) steam; or
1443          (v) prewritten computer software, regardless of the manner in which the prewritten
1444     computer software is transferred.
1445          (c) "Tangible personal property" includes the following regardless of whether the item
1446     is attached to real property:
1447          (i) a dishwasher;
1448          (ii) a dryer;
1449          (iii) a freezer;
1450          (iv) a microwave;
1451          (v) a refrigerator;
1452          (vi) a stove;
1453          (vii) a washer; or

1454          (viii) an item similar to Subsections [(130)] (131)(c)(i) through (vii) as determined by
1455     the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1456     Rulemaking Act.
1457          (d) "Tangible personal property" does not include a product that is transferred
1458     electronically.
1459          (e) "Tangible personal property" does not include the following if attached to real
1460     property, regardless of whether the attachment to real property is only through a line that
1461     supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1462     commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1463     Rulemaking Act:
1464          (i) a hot water heater;
1465          (ii) a water filtration system; or
1466          (iii) a water softener system.
1467          [(131)] (132) (a) "Telecommunications enabling or facilitating equipment, machinery,
1468     or software" means an item listed in Subsection [(131)] (132)(b) if that item is purchased or
1469     leased primarily to enable or facilitate one or more of the following to function:
1470          (i) telecommunications switching or routing equipment, machinery, or software; or
1471          (ii) telecommunications transmission equipment, machinery, or software.
1472          (b) The following apply to Subsection [(131)] (132)(a):
1473          (i) a pole;
1474          (ii) software;
1475          (iii) a supplementary power supply;
1476          (iv) temperature or environmental equipment or machinery;
1477          (v) test equipment;
1478          (vi) a tower; or
1479          (vii) equipment, machinery, or software that functions similarly to an item listed in
1480     Subsections [(131)] (132)(b)(i) through (vi) as determined by the commission by rule made in
1481     accordance with Subsection [(131)] (132)(c).
1482          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1483     commission may by rule define what constitutes equipment, machinery, or software that
1484     functions similarly to an item listed in Subsections [(131)] (132)(b)(i) through (vi).

1485          [(132)] (133) "Telecommunications equipment, machinery, or software required for
1486     911 service" means equipment, machinery, or software that is required to comply with 47
1487     C.F.R. Sec. 20.18.
1488          [(133)] (134) "Telecommunications maintenance or repair equipment, machinery, or
1489     software" means equipment, machinery, or software purchased or leased primarily to maintain
1490     or repair one or more of the following, regardless of whether the equipment, machinery, or
1491     software is purchased or leased as a spare part or as an upgrade or modification to one or more
1492     of the following:
1493          (a) telecommunications enabling or facilitating equipment, machinery, or software;
1494          (b) telecommunications switching or routing equipment, machinery, or software; or
1495          (c) telecommunications transmission equipment, machinery, or software.
1496          [(134)] (135) (a) "Telecommunications service" means the electronic conveyance,
1497     routing, or transmission of audio, data, video, voice, or any other information or signal to a
1498     point, or among or between points.
1499          (b) "Telecommunications service" includes:
1500          (i) an electronic conveyance, routing, or transmission with respect to which a computer
1501     processing application is used to act:
1502          (A) on the code, form, or protocol of the content;
1503          (B) for the purpose of electronic conveyance, routing, or transmission; and
1504          (C) regardless of whether the service:
1505          (I) is referred to as voice over Internet protocol service; or
1506          (II) is classified by the Federal Communications Commission as enhanced or value
1507     added;
1508          (ii) an 800 service;
1509          (iii) a 900 service;
1510          (iv) a fixed wireless service;
1511          (v) a mobile wireless service;
1512          (vi) a postpaid calling service;
1513          (vii) a prepaid calling service;
1514          (viii) a prepaid wireless calling service; or
1515          (ix) a private communications service.

1516          (c) "Telecommunications service" does not include:
1517          (i) advertising, including directory advertising;
1518          (ii) an ancillary service;
1519          (iii) a billing and collection service provided to a third party;
1520          (iv) a data processing and information service if:
1521          (A) the data processing and information service allows data to be:
1522          (I) (Aa) acquired;
1523          (Bb) generated;
1524          (Cc) processed;
1525          (Dd) retrieved; or
1526          (Ee) stored; and
1527          (II) delivered by an electronic transmission to a purchaser; and
1528          (B) the purchaser's primary purpose for the underlying transaction is the processed data
1529     or information;
1530          (v) installation or maintenance of the following on a customer's premises:
1531          (A) equipment; or
1532          (B) wiring;
1533          (vi) Internet access service;
1534          (vii) a paging service;
1535          (viii) a product transferred electronically, including:
1536          (A) music;
1537          (B) reading material;
1538          (C) a ring tone;
1539          (D) software; or
1540          (E) video;
1541          (ix) a radio and television audio and video programming service:
1542          (A) regardless of the medium; and
1543          (B) including:
1544          (I) furnishing conveyance, routing, or transmission of a television audio and video
1545     programming service by a programming service provider;
1546          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or

1547          (III) audio and video programming services delivered by a commercial mobile radio
1548     service provider as defined in 47 C.F.R. Sec. 20.3;
1549          (x) a value-added nonvoice data service; or
1550          (xi) tangible personal property.
1551          [(135)] (136) (a) "Telecommunications service provider" means a person that:
1552          (i) owns, controls, operates, or manages a telecommunications service; and
1553          (ii) engages in an activity described in Subsection [(135)] (136)(a)(i) for the shared use
1554     with or resale to any person of the telecommunications service.
1555          (b) A person described in Subsection [(135)] (136)(a) is a telecommunications service
1556     provider whether or not the Public Service Commission of Utah regulates:
1557          (i) that person; or
1558          (ii) the telecommunications service that the person owns, controls, operates, or
1559     manages.
1560          [(136)] (137) (a) "Telecommunications switching or routing equipment, machinery, or
1561     software" means an item listed in Subsection [(136)] (137)(b) if that item is purchased or
1562     leased primarily for switching or routing:
1563          (i) an ancillary service;
1564          (ii) data communications;
1565          (iii) voice communications; or
1566          (iv) telecommunications service.
1567          (b) The following apply to Subsection [(136)] (137)(a):
1568          (i) a bridge;
1569          (ii) a computer;
1570          (iii) a cross connect;
1571          (iv) a modem;
1572          (v) a multiplexer;
1573          (vi) plug in circuitry;
1574          (vii) a router;
1575          (viii) software;
1576          (ix) a switch; or
1577          (x) equipment, machinery, or software that functions similarly to an item listed in

1578     Subsections [(136)] (137)(b)(i) through (ix) as determined by the commission by rule made in
1579     accordance with Subsection [(136)] (137)(c).
1580          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1581     commission may by rule define what constitutes equipment, machinery, or software that
1582     functions similarly to an item listed in Subsections [(136)] (137)(b)(i) through (ix).
1583          [(137)] (138) (a) "Telecommunications transmission equipment, machinery, or
1584     software" means an item listed in Subsection [(137)] (138)(b) if that item is purchased or
1585     leased primarily for sending, receiving, or transporting:
1586          (i) an ancillary service;
1587          (ii) data communications;
1588          (iii) voice communications; or
1589          (iv) telecommunications service.
1590          (b) The following apply to Subsection [(137)] (138)(a):
1591          (i) an amplifier;
1592          (ii) a cable;
1593          (iii) a closure;
1594          (iv) a conduit;
1595          (v) a controller;
1596          (vi) a duplexer;
1597          (vii) a filter;
1598          (viii) an input device;
1599          (ix) an input/output device;
1600          (x) an insulator;
1601          (xi) microwave machinery or equipment;
1602          (xii) an oscillator;
1603          (xiii) an output device;
1604          (xiv) a pedestal;
1605          (xv) a power converter;
1606          (xvi) a power supply;
1607          (xvii) a radio channel;
1608          (xviii) a radio receiver;

1609          (xix) a radio transmitter;
1610          (xx) a repeater;
1611          (xxi) software;
1612          (xxii) a terminal;
1613          (xxiii) a timing unit;
1614          (xxiv) a transformer;
1615          (xxv) a wire; or
1616          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1617     Subsections [(137)] (138)(b)(i) through (xxv) as determined by the commission by rule made in
1618     accordance with Subsection [(137)] (138)(c).
1619          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1620     commission may by rule define what constitutes equipment, machinery, or software that
1621     functions similarly to an item listed in Subsections [(137)] (138)(b)(i) through (xxv).
1622          [(138)] (139) (a) "Textbook for a higher education course" means a textbook or other
1623     printed material that is required for a course:
1624          (i) offered by an institution of higher education; and
1625          (ii) that the purchaser of the textbook or other printed material attends or will attend.
1626          (b) "Textbook for a higher education course" includes a textbook in electronic format.
1627          [(139)] (140) "Tobacco" means:
1628          (a) a cigarette;
1629          (b) a cigar;
1630          (c) chewing tobacco;
1631          (d) pipe tobacco; or
1632          (e) any other item that contains tobacco.
1633          [(140)] (141) "Unassisted amusement device" means an amusement device, skill
1634     device, or ride device that is started and stopped by the purchaser or renter of the right to use or
1635     operate the amusement device, skill device, or ride device.
1636          [(141)] (142) (a) "Use" means the exercise of any right or power over tangible personal
1637     property, a product transferred electronically, or a service under Subsection 59-12-103(1),
1638     incident to the ownership or the leasing of that tangible personal property, product transferred
1639     electronically, or service.

1640          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1641     property, a product transferred electronically, or a service in the regular course of business and
1642     held for resale.
1643          [(142)] (143) "Value-added nonvoice data service" means a service:
1644          (a) that otherwise meets the definition of a telecommunications service except that a
1645     computer processing application is used to act primarily for a purpose other than conveyance,
1646     routing, or transmission; and
1647          (b) with respect to which a computer processing application is used to act on data or
1648     information:
1649          (i) code;
1650          (ii) content;
1651          (iii) form; or
1652          (iv) protocol.
1653          [(143)] (144) (a) [Subject to Subsection (143)(b), "vehicle"] "Vehicle" means the
1654     following that are required to be titled, registered, or titled and registered:
1655          (i) an aircraft as defined in Section 72-10-102;
1656          (ii) a vehicle as defined in Section 41-1a-102;
1657          (iii) an off-highway vehicle as defined in Section 41-22-2; or
1658          (iv) a vessel as defined in Section 41-1a-102.
1659          (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
1660          (i) a vehicle described in Subsection [(143)] (144)(a); or
1661          (ii) (A) a locomotive;
1662          (B) a freight car;
1663          (C) railroad work equipment; or
1664          (D) other railroad rolling stock.
1665          [(144)] (145) "Vehicle dealer" means a person engaged in the business of buying,
1666     selling, or exchanging a vehicle as defined in Subsection [(143)] (144).
1667          [(145)] (146) (a) "Vertical service" means an ancillary service that:
1668          (i) is offered in connection with one or more telecommunications services; and
1669          (ii) offers an advanced calling feature that allows a customer to:
1670          (A) identify a caller; and

1671          (B) manage multiple calls and call connections.
1672          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1673     conference bridging service.
1674          [(146)] (147) (a) "Voice mail service" means an ancillary service that enables a
1675     customer to receive, send, or store a recorded message.
1676          (b) "Voice mail service" does not include a vertical service that a customer is required
1677     to have in order to utilize a voice mail service.
1678          [(147)] (148) (a) [Except as provided in Subsection (147)(b), "waste] "Waste energy
1679     facility" means a facility that generates electricity:
1680          (i) using as the primary source of energy waste materials that would be placed in a
1681     landfill or refuse pit if it were not used to generate electricity, including:
1682          (A) tires;
1683          (B) waste coal;
1684          (C) oil shale; or
1685          (D) municipal solid waste; and
1686          (ii) in amounts greater than actually required for the operation of the facility.
1687          (b) "Waste energy facility" does not include a facility that incinerates:
1688          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
1689          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1690          [(148)] (149) "Watercraft" means a vessel as defined in Section 73-18-2.
1691          [(149)] (150) "Wind energy" means wind used as the sole source of energy to produce
1692     electricity.
1693          [(150)] (151) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
1694     geographic location by the United States Postal Service.
1695          Section 2. Section 59-12-104 is amended to read:
1696          59-12-104. Exemptions.
1697          Exemptions from the taxes imposed by this chapter are as follows:
1698          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
1699     under Chapter 13, Motor and Special Fuel Tax Act;
1700          (2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
1701     subdivisions; however, this exemption does not apply to sales of:

1702          (a) construction materials except:
1703          (i) construction materials purchased by or on behalf of institutions of the public
1704     education system as defined in Utah Constitution, Article X, Section 2, provided the
1705     construction materials are clearly identified and segregated and installed or converted to real
1706     property which is owned by institutions of the public education system; and
1707          (ii) construction materials purchased by the state, its institutions, or its political
1708     subdivisions which are installed or converted to real property by employees of the state, its
1709     institutions, or its political subdivisions; or
1710          (b) tangible personal property in connection with the construction, operation,
1711     maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or facilities
1712     providing additional project capacity, as defined in Section 11-13-103;
1713          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
1714          (i) the proceeds of each sale do not exceed $1; and
1715          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
1716     the cost of the item described in Subsection (3)(b) as goods consumed; and
1717          (b) Subsection (3)(a) applies to:
1718          (i) food and food ingredients; or
1719          (ii) prepared food;
1720          (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
1721          (i) alcoholic beverages;
1722          (ii) food and food ingredients; or
1723          (iii) prepared food;
1724          (b) sales of tangible personal property or a product transferred electronically:
1725          (i) to a passenger;
1726          (ii) by a commercial airline carrier; and
1727          (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
1728          (c) services related to Subsection (4)(a) or (b);
1729          (5) sales of parts and equipment for installation in an aircraft operated by a common
1730     carrier in interstate or foreign commerce;
1731          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
1732     records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture

1733     exhibitor, distributor, or commercial television or radio broadcaster;
1734          (7) (a) except as provided in Subsection (85) and subject to Subsection (7)(b), sales of
1735     cleaning or washing of tangible personal property if the cleaning or washing of the tangible
1736     personal property is not assisted cleaning or washing of tangible personal property;
1737          (b) if a seller that sells at the same business location assisted cleaning or washing of
1738     tangible personal property and cleaning or washing of tangible personal property that is not
1739     assisted cleaning or washing of tangible personal property, the exemption described in
1740     Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
1741     or washing of the tangible personal property; and
1742          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
1743     Utah Administrative Rulemaking Act, the commission may make rules:
1744          (i) governing the circumstances under which sales are at the same business location;
1745     and
1746          (ii) establishing the procedures and requirements for a seller to separately account for
1747     sales of assisted cleaning or washing of tangible personal property;
1748          (8) sales made to or by religious or charitable institutions in the conduct of their regular
1749     religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
1750     fulfilled;
1751          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
1752     this state if the vehicle is:
1753          (a) not registered in this state; and
1754          (b) (i) not used in this state; or
1755          (ii) used in this state:
1756          (A) if the vehicle is not used to conduct business, for a time period that does not
1757     exceed the longer of:
1758          (I) 30 days in any calendar year; or
1759          (II) the time period necessary to transport the vehicle to the borders of this state; or
1760          (B) if the vehicle is used to conduct business, for the time period necessary to transport
1761     the vehicle to the borders of this state;
1762          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
1763          (i) the item is intended for human use; and

1764          (ii) (A) a prescription was issued for the item; or
1765          (B) the item was purchased by a hospital or other medical facility; and
1766          (b) (i) Subsection (10)(a) applies to:
1767          (A) a drug;
1768          (B) a syringe; or
1769          (C) a stoma supply; and
1770          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1771     commission may by rule define the terms:
1772          (A) "syringe"; or
1773          (B) "stoma supply";
1774          (11) purchases or leases exempt under Section 19-12-201;
1775          (12) (a) sales of an item described in Subsection (12)(c) served by:
1776          (i) the following if the item described in Subsection (12)(c) is not available to the
1777     general public:
1778          (A) a church; or
1779          (B) a charitable institution; or
1780          (ii) an institution of higher education if:
1781          (A) the item described in Subsection (12)(c) is not available to the general public; or
1782          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
1783     offered by the institution of higher education; or
1784          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
1785          (i) a medical facility; or
1786          (ii) a nursing facility; and
1787          (c) Subsections (12)(a) and (b) apply to:
1788          (i) food and food ingredients;
1789          (ii) prepared food; or
1790          (iii) alcoholic beverages;
1791          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
1792     or a product transferred electronically by a person:
1793          (i) regardless of the number of transactions involving the sale of that tangible personal
1794     property or product transferred electronically by that person; and

1795          (ii) not regularly engaged in the business of selling that type of tangible personal
1796     property or product transferred electronically;
1797          (b) this Subsection (13) does not apply if:
1798          (i) the sale is one of a series of sales of a character to indicate that the person is
1799     regularly engaged in the business of selling that type of tangible personal property or product
1800     transferred electronically;
1801          (ii) the person holds that person out as regularly engaged in the business of selling that
1802     type of tangible personal property or product transferred electronically;
1803          (iii) the person sells an item of tangible personal property or product transferred
1804     electronically that the person purchased as a sale that is exempt under Subsection (25); or
1805           (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
1806     this state in which case the tax is based upon:
1807          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
1808     sold; or
1809          (B) in the absence of a bill of sale or other written evidence of value, the fair market
1810     value of the vehicle or vessel being sold at the time of the sale as determined by the
1811     commission; and
1812          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1813     commission shall make rules establishing the circumstances under which:
1814          (i) a person is regularly engaged in the business of selling a type of tangible personal
1815     property or product transferred electronically;
1816          (ii) a sale of tangible personal property or a product transferred electronically is one of
1817     a series of sales of a character to indicate that a person is regularly engaged in the business of
1818     selling that type of tangible personal property or product transferred electronically; or
1819          (iii) a person holds that person out as regularly engaged in the business of selling a type
1820     of tangible personal property or product transferred electronically;
1821          (14) amounts paid or charged for a purchase or lease of machinery, equipment, normal
1822     operating repair or replacement parts, or materials, except for office equipment or office
1823     supplies, by:
1824          (a) a manufacturing facility that:
1825          (i) is located in the state; and

1826          (ii) uses or consumes the machinery, equipment, normal operating repair or
1827     replacement parts, or materials:
1828          (A) in the manufacturing process to manufacture an item sold as tangible personal
1829     property, as the commission may define that phrase in accordance with Title 63G, Chapter 3,
1830     Utah Administrative Rulemaking Act; or
1831          (B) for a scrap recycler, to process an item sold as tangible personal property, as the
1832     commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
1833     Administrative Rulemaking Act;
1834          (b) an establishment, as the commission defines that term in accordance with Title
1835     63G, Chapter 3, Utah Administrative Rulemaking Act, that:
1836          (i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
1837     Code 213113, Support Activities for Coal Mining, 213114, Support Activities for Metal
1838     Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining, of the
1839     2002 North American Industry Classification System of the federal Executive Office of the
1840     President, Office of Management and Budget;
1841          (ii) is located in the state; and
1842          (iii) uses or consumes the machinery, equipment, normal operating repair or
1843     replacement parts, or materials in:
1844          (A) the production process to produce an item sold as tangible personal property, as the
1845     commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
1846     Administrative Rulemaking Act;
1847          (B) research and development, as the commission may define that phrase in accordance
1848     with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1849          (C) transporting, storing, or managing tailings, overburden, or similar waste materials
1850     produced from mining;
1851          (D) developing or maintaining a road, tunnel, excavation, or similar feature used in
1852     mining; or
1853          (E) preventing, controlling, or reducing dust or other pollutants from mining; or
1854          (c) an establishment, as the commission defines that term in accordance with Title 63G,
1855     Chapter 3, Utah Administrative Rulemaking Act, that:
1856          (i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North

1857     American Industry Classification System of the federal Executive Office of the President,
1858     Office of Management and Budget;
1859          (ii) is located in the state; and
1860          (iii) uses or consumes the machinery, equipment, normal operating repair or
1861     replacement parts, or materials in the operation of the web search portal;
1862          (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
1863          (i) tooling;
1864          (ii) special tooling;
1865          (iii) support equipment;
1866          (iv) special test equipment; or
1867          (v) parts used in the repairs or renovations of tooling or equipment described in
1868     Subsections (15)(a)(i) through (iv); and
1869          (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
1870          (i) the tooling, equipment, or parts are used or consumed exclusively in the
1871     performance of any aerospace or electronics industry contract with the United States
1872     government or any subcontract under that contract; and
1873          (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
1874     title to the tooling, equipment, or parts is vested in the United States government as evidenced
1875     by:
1876          (A) a government identification tag placed on the tooling, equipment, or parts; or
1877          (B) listing on a government-approved property record if placing a government
1878     identification tag on the tooling, equipment, or parts is impractical;
1879          (16) sales of newspapers or newspaper subscriptions;
1880          (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
1881     product transferred electronically traded in as full or part payment of the purchase price, except
1882     that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
1883     trade-ins are limited to other vehicles only, and the tax is based upon:
1884          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
1885     vehicle being traded in; or
1886          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
1887     fair market value of the vehicle being sold and the vehicle being traded in, as determined by the

1888     commission; and
1889          (b) Subsection (17)(a) does not apply to the following items of tangible personal
1890     property or products transferred electronically traded in as full or part payment of the purchase
1891     price:
1892          (i) money;
1893          (ii) electricity;
1894          (iii) water;
1895          (iv) gas; or
1896          (v) steam;
1897          (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
1898     or a product transferred electronically used or consumed primarily and directly in farming
1899     operations, regardless of whether the tangible personal property or product transferred
1900     electronically:
1901          (A) becomes part of real estate; or
1902          (B) is installed by a farmer, contractor, or subcontractor; or
1903          (ii) sales of parts used in the repairs or renovations of tangible personal property or a
1904     product transferred electronically if the tangible personal property or product transferred
1905     electronically is exempt under Subsection (18)(a)(i); and
1906          (b) amounts paid or charged for the following are subject to the taxes imposed by this
1907     chapter:
1908          (i) (A) subject to Subsection (18)(b)(i)(B), machinery, equipment, materials, or
1909     supplies if used in a manner that is incidental to farming; and
1910          (B) tangible personal property that is considered to be used in a manner that is
1911     incidental to farming includes:
1912          (I) hand tools; or
1913          (II) maintenance and janitorial equipment and supplies;
1914          (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
1915     transferred electronically if the tangible personal property or product transferred electronically
1916     is used in an activity other than farming; and
1917          (B) tangible personal property or a product transferred electronically that is considered
1918     to be used in an activity other than farming includes:

1919          (I) office equipment and supplies; or
1920          (II) equipment and supplies used in:
1921          (Aa) the sale or distribution of farm products;
1922          (Bb) research; or
1923          (Cc) transportation; or
1924          (iii) a vehicle required to be registered by the laws of this state during the period
1925     ending two years after the date of the vehicle's purchase;
1926          (19) sales of hay;
1927          (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
1928     garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
1929     garden, farm, or other agricultural produce is sold by:
1930          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
1931     agricultural produce;
1932          (b) an employee of the producer described in Subsection (20)(a); or
1933          (c) a member of the immediate family of the producer described in Subsection (20)(a);
1934          (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
1935     under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
1936          (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
1937     nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
1938     wholesaler, or retailer for use in packaging tangible personal property to be sold by that
1939     manufacturer, processor, wholesaler, or retailer;
1940          (23) a product stored in the state for resale;
1941          (24) (a) purchases of a product if:
1942          (i) the product is:
1943          (A) purchased outside of this state;
1944          (B) brought into this state:
1945          (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
1946          (II) by a nonresident person who is not living or working in this state at the time of the
1947     purchase;
1948          (C) used for the personal use or enjoyment of the nonresident person described in
1949     Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and

1950          (D) not used in conducting business in this state; and
1951          (ii) for:
1952          (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
1953     the product for a purpose for which the product is designed occurs outside of this state;
1954          (B) a boat, the boat is registered outside of this state; or
1955          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
1956     outside of this state;
1957          (b) the exemption provided for in Subsection (24)(a) does not apply to:
1958          (i) a lease or rental of a product; or
1959          (ii) a sale of a vehicle exempt under Subsection (33); and
1960          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
1961     purposes of Subsection (24)(a), the commission may by rule define what constitutes the
1962     following:
1963          (i) conducting business in this state if that phrase has the same meaning in this
1964     Subsection (24) as in Subsection (63);
1965          (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
1966     as in Subsection (63); or
1967          (iii) a purpose for which a product is designed if that phrase has the same meaning in
1968     this Subsection (24) as in Subsection (63);
1969          (25) a product purchased for resale in the regular course of business, either in its
1970     original form or as an ingredient or component part of a manufactured or compounded product;
1971          (26) a product upon which a sales or use tax was paid to some other state, or one of its
1972     subdivisions, except that the state shall be paid any difference between the tax paid and the tax
1973     imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
1974     the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
1975     Act;
1976          (27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a
1977     person for use in compounding a service taxable under the subsections;
1978          (28) purchases made in accordance with the special supplemental nutrition program for
1979     women, infants, and children established in 42 U.S.C. Sec. 1786;
1980          (29) sales or leases of rolls, rollers, refractory brick, electric motors, or other

1981     replacement parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code
1982     3312 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of
1983     the President, Office of Management and Budget;
1984          (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
1985     Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
1986          (a) not registered in this state; and
1987          (b) (i) not used in this state; or
1988          (ii) used in this state:
1989          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
1990     time period that does not exceed the longer of:
1991          (I) 30 days in any calendar year; or
1992          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
1993     the borders of this state; or
1994          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
1995     period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
1996     state;
1997          (31) sales of aircraft manufactured in Utah;
1998          (32) amounts paid for the purchase of telecommunications service for purposes of
1999     providing telecommunications service;
2000          (33) sales, leases, or uses of the following:
2001          (a) a vehicle by an authorized carrier; or
2002          (b) tangible personal property that is installed on a vehicle:
2003          (i) sold or leased to or used by an authorized carrier; and
2004          (ii) before the vehicle is placed in service for the first time;
2005          (34) (a) 45% of the sales price of any new manufactured home; and
2006          (b) 100% of the sales price of any used manufactured home;
2007          (35) sales relating to schools and fundraising sales;
2008          (36) sales or rentals of durable medical equipment if:
2009          (a) a person presents a prescription for the durable medical equipment; and
2010          (b) the durable medical equipment is used for home use only;
2011          (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in

2012     Section 72-11-102; and
2013          (b) the commission shall by rule determine the method for calculating sales exempt
2014     under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
2015          (38) sales to a ski resort of:
2016          (a) snowmaking equipment;
2017          (b) ski slope grooming equipment;
2018          (c) passenger ropeways as defined in Section 72-11-102; or
2019          (d) parts used in the repairs or renovations of equipment or passenger ropeways
2020     described in Subsections (38)(a) through (c);
2021          (39) subject to Subsection 59-12-103(2)(j), sales of natural gas, electricity, heat, coal,
2022     fuel oil, or other fuels for industrial use;
2023          (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
2024     amusement, entertainment, or recreation an unassisted amusement device as defined in Section
2025     59-12-102;
2026          (b) if a seller that sells or rents at the same business location the right to use or operate
2027     for amusement, entertainment, or recreation one or more unassisted amusement devices and
2028     one or more assisted amusement devices, the exemption described in Subsection (40)(a)
2029     applies if the seller separately accounts for the sales or rentals of the right to use or operate for
2030     amusement, entertainment, or recreation for the assisted amusement devices; and
2031          (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
2032     Utah Administrative Rulemaking Act, the commission may make rules:
2033          (i) governing the circumstances under which sales are at the same business location;
2034     and
2035          (ii) establishing the procedures and requirements for a seller to separately account for
2036     the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
2037     assisted amusement devices;
2038          (41) (a) sales of photocopies by:
2039          (i) a governmental entity; or
2040          (ii) an entity within the state system of public education, including:
2041          (A) a school; or
2042          (B) the State Board of Education; or

2043          (b) sales of publications by a governmental entity;
2044          (42) amounts paid for admission to an athletic event at an institution of higher
2045     education that is subject to the provisions of Title IX of the Education Amendments of 1972,
2046     20 U.S.C. Sec. 1681 et seq.;
2047          (43) (a) sales made to or by:
2048          (i) an area agency on aging; or
2049          (ii) a senior citizen center owned by a county, city, or town; or
2050          (b) sales made by a senior citizen center that contracts with an area agency on aging;
2051          (44) sales or leases of semiconductor fabricating, processing, research, or development
2052     materials regardless of whether the semiconductor fabricating, processing, research, or
2053     development materials:
2054          (a) actually come into contact with a semiconductor; or
2055          (b) ultimately become incorporated into real property;
2056          (45) an amount paid by or charged to a purchaser for accommodations and services
2057     described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under Section
2058     59-12-104.2;
2059          (46) the lease or use of a vehicle issued a temporary sports event registration certificate
2060     in accordance with Section 41-3-306 for the event period specified on the temporary sports
2061     event registration certificate;
2062          (47) (a) sales or uses of electricity, if the sales or uses are made under a retail tariff
2063     adopted by the Public Service Commission only for purchase of electricity produced from a
2064     new alternative energy source built after January 1, 2016, as designated in the tariff by the
2065     Public Service Commission; and
2066          (b) for a residential use customer only, the exemption under Subsection (47)(a) applies
2067     only to the portion of the tariff rate a customer pays under the tariff described in Subsection
2068     (47)(a) that exceeds the tariff rate under the tariff described in Subsection (47)(a) that the
2069     customer would have paid absent the tariff;
2070          (48) sales or rentals of mobility enhancing equipment if a person presents a
2071     prescription for the mobility enhancing equipment;
2072          (49) sales of water in a:
2073          (a) pipe;

2074          (b) conduit;
2075          (c) ditch; or
2076          (d) reservoir;
2077          (50) sales of currency or coins that constitute legal tender of a state, the United States,
2078     or a foreign nation;
2079          (51) (a) sales of an item described in Subsection (51)(b) if the item:
2080          (i) does not constitute legal tender of a state, the United States, or a foreign nation; and
2081          (ii) has a gold, silver, or platinum content of 50% or more; and
2082          (b) Subsection (51)(a) applies to a gold, silver, or platinum:
2083          (i) ingot;
2084          (ii) bar;
2085          (iii) medallion; or
2086          (iv) decorative coin;
2087          (52) amounts paid on a sale-leaseback transaction;
2088          (53) sales of a prosthetic device:
2089          (a) for use on or in a human; and
2090          (b) (i) for which a prescription is required; or
2091          (ii) if the prosthetic device is purchased by a hospital or other medical facility;
2092          (54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
2093     machinery or equipment by an establishment described in Subsection (54)(c) if the machinery
2094     or equipment is primarily used in the production or postproduction of the following media for
2095     commercial distribution:
2096          (i) a motion picture;
2097          (ii) a television program;
2098          (iii) a movie made for television;
2099          (iv) a music video;
2100          (v) a commercial;
2101          (vi) a documentary; or
2102          (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
2103     commission by administrative rule made in accordance with Subsection (54)(d); or
2104          (b) purchases, leases, or rentals of machinery or equipment by an establishment

2105     described in Subsection (54)(c) that is used for the production or postproduction of the
2106     following are subject to the taxes imposed by this chapter:
2107          (i) a live musical performance;
2108          (ii) a live news program; or
2109          (iii) a live sporting event;
2110          (c) the following establishments listed in the 1997 North American Industry
2111     Classification System of the federal Executive Office of the President, Office of Management
2112     and Budget, apply to Subsections (54)(a) and (b):
2113          (i) NAICS Code 512110; or
2114          (ii) NAICS Code 51219; and
2115          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2116     commission may by rule:
2117          (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
2118     or
2119          (ii) define:
2120          (A) "commercial distribution";
2121          (B) "live musical performance";
2122          (C) "live news program"; or
2123          (D) "live sporting event";
2124          (55) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
2125     on or before June 30, [2027] 2040, of tangible personal property that:
2126          (i) is leased or purchased for or by a facility that:
2127          (A) is an alternative energy electricity production facility or an electricity storage
2128     facility;
2129          (B) is located in the state; and
2130          (C) (I) becomes operational on or after July 1, 2004; or
2131          (II) has its generation or storage capacity increased by one or more megawatts on or
2132     after July 1, 2004, as a result of the use of the tangible personal property;
2133          (ii) has an economic life of five or more years; and
2134          (iii) is used to make the facility or the increase in capacity of the facility described in
2135     Subsection (55)(a)(i) operational up to the point of interconnection with an existing

2136     transmission grid including:
2137          (A) a wind turbine;
2138          (B) generating equipment;
2139          (C) a control and monitoring system;
2140          (D) a power line;
2141          (E) substation equipment;
2142          (F) lighting;
2143          (G) fencing;
2144          (H) pipes; [or]
2145          (I) other equipment used for locating a power line or pole; or
2146          (J) electricity storage equipment; and
2147          (b) this Subsection (55) does not apply to:
2148          (i) tangible personal property used in construction of:
2149          (A) a new alternative energy electricity production facility;
2150          (B) a new electricity storage facility; or
2151          [(B)] (C) the increase in the capacity of an alternative energy electricity production
2152     facility or an electricity storage facility;
2153          (ii) contracted services required for construction and routine maintenance activities;
2154     and
2155          (iii) unless the tangible personal property is used or acquired for an increase in capacity
2156     of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal property used or
2157     acquired after:
2158          (A) the alternative energy electricity production facility or an electricity storage facility
2159     described in Subsection (55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
2160          (B) the increased capacity described in Subsection (55)(a)(i) is operational as described
2161     in Subsection (55)(a)(iii);
2162          (56) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
2163     on or before June 30, 2027, of tangible personal property that:
2164          (i) is leased or purchased for or by a facility that:
2165          (A) is a waste energy production facility;
2166          (B) is located in the state; and

2167          (C) (I) becomes operational on or after July 1, 2004; or
2168          (II) has its generation capacity increased by one or more megawatts on or after July 1,
2169     2004, as a result of the use of the tangible personal property;
2170          (ii) has an economic life of five or more years; and
2171          (iii) is used to make the facility or the increase in capacity of the facility described in
2172     Subsection (56)(a)(i) operational up to the point of interconnection with an existing
2173     transmission grid including:
2174          (A) generating equipment;
2175          (B) a control and monitoring system;
2176          (C) a power line;
2177          (D) substation equipment;
2178          (E) lighting;
2179          (F) fencing;
2180          (G) pipes; or
2181          (H) other equipment used for locating a power line or pole; and
2182          (b) this Subsection (56) does not apply to:
2183          (i) tangible personal property used in construction of:
2184          (A) a new waste energy facility; or
2185          (B) the increase in the capacity of a waste energy facility;
2186          (ii) contracted services required for construction and routine maintenance activities;
2187     and
2188          (iii) unless the tangible personal property is used or acquired for an increase in capacity
2189     described in Subsection (56)(a)(i)(C)(II), tangible personal property used or acquired after:
2190          (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
2191     described in Subsection (56)(a)(iii); or
2192          (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
2193     in Subsection (56)(a)(iii);
2194          (57) (a) leases of five or more years or purchases made on or after July 1, 2004, but on
2195     or before June 30, 2027, of tangible personal property that:
2196          (i) is leased or purchased for or by a facility that:
2197          (A) is located in the state;

2198          (B) produces fuel from alternative energy, including:
2199          (I) methanol; or
2200          (II) ethanol; and
2201          (C) (I) becomes operational on or after July 1, 2004; or
2202          (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as
2203     a result of the installation of the tangible personal property;
2204          (ii) has an economic life of five or more years; and
2205          (iii) is installed on the facility described in Subsection (57)(a)(i);
2206          (b) this Subsection (57) does not apply to:
2207          (i) tangible personal property used in construction of:
2208          (A) a new facility described in Subsection (57)(a)(i); or
2209          (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
2210          (ii) contracted services required for construction and routine maintenance activities;
2211     and
2212          (iii) unless the tangible personal property is used or acquired for an increase in capacity
2213     described in Subsection (57)(a)(i)(C)(II), tangible personal property used or acquired after:
2214          (A) the facility described in Subsection (57)(a)(i) is operational; or
2215          (B) the increased capacity described in Subsection (57)(a)(i) is operational;
2216          (58) (a) subject to Subsection (58)(b), sales of tangible personal property or a product
2217     transferred electronically to a person within this state if that tangible personal property or
2218     product transferred electronically is subsequently shipped outside the state and incorporated
2219     pursuant to contract into and becomes a part of real property located outside of this state; and
2220          (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
2221     state or political entity to which the tangible personal property is shipped imposes a sales, use,
2222     gross receipts, or other similar transaction excise tax on the transaction against which the other
2223     state or political entity allows a credit for sales and use taxes imposed by this chapter;
2224          (59) purchases:
2225          (a) of one or more of the following items in printed or electronic format:
2226          (i) a list containing information that includes one or more:
2227          (A) names; or
2228          (B) addresses; or

2229          (ii) a database containing information that includes one or more:
2230          (A) names; or
2231          (B) addresses; and
2232          (b) used to send direct mail;
2233          (60) redemptions or repurchases of a product by a person if that product was:
2234          (a) delivered to a pawnbroker as part of a pawn transaction; and
2235          (b) redeemed or repurchased within the time period established in a written agreement
2236     between the person and the pawnbroker for redeeming or repurchasing the product;
2237          (61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
2238          (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
2239     and
2240          (ii) has a useful economic life of one or more years; and
2241          (b) the following apply to Subsection (61)(a):
2242          (i) telecommunications enabling or facilitating equipment, machinery, or software;
2243          (ii) telecommunications equipment, machinery, or software required for 911 service;
2244          (iii) telecommunications maintenance or repair equipment, machinery, or software;
2245          (iv) telecommunications switching or routing equipment, machinery, or software; or
2246          (v) telecommunications transmission equipment, machinery, or software;
2247          (62) (a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
2248     personal property or a product transferred electronically that are used in the research and
2249     development of alternative energy technology; and
2250          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2251     commission may, for purposes of Subsection (62)(a), make rules defining what constitutes
2252     purchases of tangible personal property or a product transferred electronically that are used in
2253     the research and development of alternative energy technology;
2254          (63) (a) purchases of tangible personal property or a product transferred electronically
2255     if:
2256          (i) the tangible personal property or product transferred electronically is:
2257          (A) purchased outside of this state;
2258          (B) brought into this state at any time after the purchase described in Subsection
2259     (63)(a)(i)(A); and

2260          (C) used in conducting business in this state; and
2261          (ii) for:
2262          (A) tangible personal property or a product transferred electronically other than the
2263     tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property
2264     for a purpose for which the property is designed occurs outside of this state; or
2265          (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
2266     outside of this state and not required to be registered in this state under Section 41-1a-202 or
2267     73-18-9 based on residency;
2268          (b) the exemption provided for in Subsection (63)(a) does not apply to:
2269          (i) a lease or rental of tangible personal property or a product transferred electronically;
2270     or
2271          (ii) a sale of a vehicle exempt under Subsection (33); and
2272          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
2273     purposes of Subsection (63)(a), the commission may by rule define what constitutes the
2274     following:
2275          (i) conducting business in this state if that phrase has the same meaning in this
2276     Subsection (63) as in Subsection (24);
2277          (ii) the first use of tangible personal property or a product transferred electronically if
2278     that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
2279          (iii) a purpose for which tangible personal property or a product transferred
2280     electronically is designed if that phrase has the same meaning in this Subsection (63) as in
2281     Subsection (24);
2282          (64) sales of disposable home medical equipment or supplies if:
2283          (a) a person presents a prescription for the disposable home medical equipment or
2284     supplies;
2285          (b) the disposable home medical equipment or supplies are used exclusively by the
2286     person to whom the prescription described in Subsection (64)(a) is issued; and
2287          (c) the disposable home medical equipment and supplies are listed as eligible for
2288     payment under:
2289          (i) Title XVIII, federal Social Security Act; or
2290          (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;

2291          (65) sales:
2292          (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
2293     District Act; or
2294          (b) of tangible personal property to a subcontractor of a public transit district, if the
2295     tangible personal property is:
2296          (i) clearly identified; and
2297          (ii) installed or converted to real property owned by the public transit district;
2298          (66) sales of construction materials:
2299          (a) purchased on or after July 1, 2010;
2300          (b) purchased by, on behalf of, or for the benefit of an international airport:
2301          (i) located within a county of the first class; and
2302          (ii) that has a United States customs office on its premises; and
2303          (c) if the construction materials are:
2304          (i) clearly identified;
2305          (ii) segregated; and
2306          (iii) installed or converted to real property:
2307          (A) owned or operated by the international airport described in Subsection (66)(b); and
2308          (B) located at the international airport described in Subsection (66)(b);
2309          (67) sales of construction materials:
2310          (a) purchased on or after July 1, 2008;
2311          (b) purchased by, on behalf of, or for the benefit of a new airport:
2312          (i) located within a county of the second class; and
2313          (ii) that is owned or operated by a city in which an airline as defined in Section
2314     59-2-102 is headquartered; and
2315          (c) if the construction materials are:
2316          (i) clearly identified;
2317          (ii) segregated; and
2318          (iii) installed or converted to real property:
2319          (A) owned or operated by the new airport described in Subsection (67)(b);
2320          (B) located at the new airport described in Subsection (67)(b); and
2321          (C) as part of the construction of the new airport described in Subsection (67)(b);

2322          (68) except for the tax imposed by Subsection 59-12-103(2)(d), sales of fuel to a
2323     common carrier that is a railroad for use in a locomotive engine;
2324          (69) purchases and sales described in Section 63H-4-111;
2325          (70) (a) sales of tangible personal property to an aircraft maintenance, repair, and
2326     overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
2327     a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
2328     lists a state or country other than this state as the location of registry of the fixed wing turbine
2329     powered aircraft; or
2330          (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
2331     provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
2332     a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
2333     lists a state or country other than this state as the location of registry of the fixed wing turbine
2334     powered aircraft;
2335          (71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
2336          (a) to a person admitted to an institution of higher education; and
2337          (b) by a seller, other than a bookstore owned by an institution of higher education, if
2338     51% or more of that seller's sales revenue for the previous calendar quarter are sales of a
2339     textbook for a higher education course;
2340          (72) a license fee or tax a municipality imposes in accordance with Subsection
2341     10-1-203(5) on a purchaser from a business for which the municipality provides an enhanced
2342     level of municipal services;
2343          (73) amounts paid or charged for construction materials used in the construction of a
2344     new or expanding life science research and development facility in the state, if the construction
2345     materials are:
2346          (a) clearly identified;
2347          (b) segregated; and
2348          (c) installed or converted to real property;
2349          (74) amounts paid or charged for:
2350          (a) a purchase or lease of machinery and equipment that:
2351          (i) are used in performing qualified research:
2352          (A) as defined in Section 41(d), Internal Revenue Code; and

2353          (B) in the state; and
2354          (ii) have an economic life of three or more years; and
2355          (b) normal operating repair or replacement parts:
2356          (i) for the machinery and equipment described in Subsection (74)(a); and
2357          (ii) that have an economic life of three or more years;
2358          (75) a sale or lease of tangible personal property used in the preparation of prepared
2359     food if:
2360          (a) for a sale:
2361          (i) the ownership of the seller and the ownership of the purchaser are identical; and
2362          (ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
2363     tangible personal property prior to making the sale; or
2364          (b) for a lease:
2365          (i) the ownership of the lessor and the ownership of the lessee are identical; and
2366          (ii) the lessor or the lessee paid a tax under this chapter on the purchase of that tangible
2367     personal property prior to making the lease;
2368          (76) (a) purchases of machinery or equipment if:
2369          (i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
2370     Gambling, and Recreation Industries, of the 2012 North American Industry Classification
2371     System of the federal Executive Office of the President, Office of Management and Budget;
2372          (ii) the machinery or equipment:
2373          (A) has an economic life of three or more years; and
2374          (B) is used by one or more persons who pay admission or user fees described in
2375     Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment; and
2376          (iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
2377          (A) amounts paid or charged as admission or user fees described in Subsection
2378     59-12-103(1)(f); and
2379          (B) subject to taxation under this chapter; and
2380          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2381     commission may make rules for verifying that 51% of a purchaser's sales revenue for the
2382     previous calendar quarter is:
2383          (i) amounts paid or charged as admission or user fees described in Subsection

2384     59-12-103(1)(f); and
2385          (ii) subject to taxation under this chapter;
2386          (77) purchases of a short-term lodging consumable by a business that provides
2387     accommodations and services described in Subsection 59-12-103(1)(i);
2388          (78) amounts paid or charged to access a database:
2389          (a) if the primary purpose for accessing the database is to view or retrieve information
2390     from the database; and
2391          (b) not including amounts paid or charged for a:
2392          (i) digital audio work;
2393          (ii) digital audio-visual work; or
2394          (iii) digital book;
2395          (79) amounts paid or charged for a purchase or lease made by an electronic financial
2396     payment service, of:
2397          (a) machinery and equipment that:
2398          (i) are used in the operation of the electronic financial payment service; and
2399          (ii) have an economic life of three or more years; and
2400          (b) normal operating repair or replacement parts that:
2401          (i) are used in the operation of the electronic financial payment service; and
2402          (ii) have an economic life of three or more years;
2403          (80) sales of a fuel cell as defined in Section 54-15-102;
2404          (81) amounts paid or charged for a purchase or lease of tangible personal property or a
2405     product transferred electronically if the tangible personal property or product transferred
2406     electronically:
2407          (a) is stored, used, or consumed in the state; and
2408          (b) is temporarily brought into the state from another state:
2409          (i) during a disaster period as defined in Section 53-2a-1202;
2410          (ii) by an out-of-state business as defined in Section 53-2a-1202;
2411          (iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
2412          (iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
2413          (82) sales of goods and services at a morale, welfare, and recreation facility, as defined
2414     in Section 39-9-102, made pursuant to Title 39, Chapter 9, State Morale, Welfare, and

2415     Recreation Program;
2416          (83) amounts paid or charged for a purchase or lease of molten magnesium;
2417          (84) amounts paid or charged for a purchase or lease made by a qualifying data center
2418     or an occupant of a qualifying data center of machinery, equipment, or normal operating repair
2419     or replacement parts, if the machinery, equipment, or normal operating repair or replacement
2420     parts:
2421          (a) are used in:
2422          (i) the operation of the qualifying data center; or
2423          (ii) the occupant's operations in the qualifying data center; and
2424          (b) have an economic life of one or more years;
2425          (85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a
2426     vehicle that includes cleaning or washing of the interior of the vehicle;
2427          (86) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2428     operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or supplies used
2429     or consumed:
2430          (a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
2431     in Section 79-6-701 located in the state;
2432          (b) if the machinery, equipment, normal operating repair or replacement parts,
2433     catalysts, chemicals, reagents, solutions, or supplies are used or consumed in:
2434          (i) the production process to produce gasoline or diesel fuel, or at which blendstock is
2435     added to gasoline or diesel fuel;
2436          (ii) research and development;
2437          (iii) transporting, storing, or managing raw materials, work in process, finished
2438     products, and waste materials produced from refining gasoline or diesel fuel, or adding
2439     blendstock to gasoline or diesel fuel;
2440          (iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
2441     refining; or
2442          (v) preventing, controlling, or reducing pollutants from refining; and
2443          (c) if the person holds a valid refiner tax exemption certification as defined in Section
2444     79-6-701;
2445          (87) amounts paid to or charged by a proprietor for accommodations and services, as

2446     defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations tax
2447     imposed under Section 63H-1-205;
2448          (88) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2449     operating repair or replacement parts, or materials, except for office equipment or office
2450     supplies, by an establishment, as the commission defines that term in accordance with Title
2451     63G, Chapter 3, Utah Administrative Rulemaking Act, that:
2452          (a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
2453     American Industry Classification System of the federal Executive Office of the President,
2454     Office of Management and Budget;
2455          (b) is located in this state; and
2456          (c) uses the machinery, equipment, normal operating repair or replacement parts, or
2457     materials in the operation of the establishment; and
2458          (89) amounts paid or charged for an item exempt under Section 59-12-104.10.
2459          Section 3. Section 63I-1-279 is amended to read:
2460          63I-1-279. Repeal dates, Title 79.
2461          (1) Subsection 79-2-201(2)(r), related to the Heritage Trees Advisory Committee, is
2462     repealed July 1, 2026.
2463          (2) Subsection 79-2-201(2)(s), related to the Recreational Trails Advisory Council, is
2464     repealed July 1, 2027.
2465          (3) Subsection 79-2-201(2)(t), related to the Boating Advisory Council, is repealed July
2466     1, 2024.
2467          (4) Subsection 79-2-201(2)(u), related to the Wildlife Board Nominating Committee, is
2468     repealed July 1, 2023.
2469          (5) Subsection 79-2-201(2)(v), related to regional advisory councils for the Wildlife
2470     Board, is repealed July 1, 2023.
2471          (6) Title 79, Chapter 5, Part 2, Advisory Council, which creates the Recreational Trails
2472     Advisory Council, is repealed July 1, 2027.
2473          (7) In relation to the Energy Storage Asset Pilot Grant Program, on July 1, 2025:
2474          (a) in Subsection 79-6-401(5), the language that states "79-6-403," is repealed; and
2475          (b) Section 79-6-403 is repealed.
2476          Section 4. Section 79-6-401 is amended to read:

2477          79-6-401. Office of Energy Development -- Creation -- Director -- Purpose --
2478     Rulemaking regarding confidential information -- Fees -- Transition for employees.
2479          (1) There is created an Office of Energy Development in the Department of Natural
2480     Resources.
2481          (2) (a) The energy advisor shall serve as the director of the office or, on or before June
2482     30, 2029, appoint a director of the office.
2483          (b) The director:
2484          (i) shall, if the energy advisor appoints a director under Subsection (2)(a), report to the
2485     energy advisor; and
2486          (ii) may appoint staff as funding within existing budgets allows.
2487          (c) The office may consolidate energy staff and functions existing in the state energy
2488     program.
2489          (3) The purposes of the office are to:
2490          (a) serve as the primary resource for advancing energy and mineral development in the
2491     state;
2492          (b) implement:
2493          (i) the state energy policy under Section 79-6-301; and
2494          (ii) the governor's energy and mineral development goals and objectives;
2495          (c) advance energy education, outreach, and research, including the creation of
2496     elementary, higher education, and technical college energy education programs;
2497          (d) promote energy and mineral development workforce initiatives; and
2498          (e) support collaborative research initiatives targeted at Utah-specific energy and
2499     mineral development.
2500          (4) By following the procedures and requirements of Title 63J, Chapter 5, Federal
2501     Funds Procedures Act, the office may:
2502          (a) seek federal grants or loans;
2503          (b) seek to participate in federal programs; and
2504          (c) in accordance with applicable federal program guidelines, administer federally
2505     funded state energy programs.
2506          (5) The office shall perform the duties required by Sections 11-42a-106, 59-5-102,
2507     59-7-614.7, 59-10-1029, 79-6-403, Part 5, Alternative Energy Development Tax Credit Act,

2508     and Part 6, High Cost Infrastructure Development Tax Credit Act.
2509          (6) (a) For purposes of administering this section, the office may make rules, by
2510     following Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to maintain as
2511     confidential, and not as a public record, information that the office receives from any source.
2512          (b) The office shall maintain information the office receives from any source at the
2513     level of confidentiality assigned by the source.
2514          (7) The office may charge application, filing, and processing fees in amounts
2515     determined by the office in accordance with Section 63J-1-504 as dedicated credits for
2516     performing office duties described in this part.
2517          (8) (a) An employee of the office is an at-will employee.
2518          (b) For an employee of the office on July 1, 2021, the employee shall have the same
2519     salary and benefit options the employee had when the office was part of the office of the
2520     governor.
2521          Section 5. Section 79-6-403 is enacted to read:
2522          79-6-403. Energy storage assets -- Pilot grant program.
2523          (1) As used in this section:
2524          (a) "Energy storage asset" means property that stores energy generated by mechanical,
2525     thermal, or photovoltaic means for use at a later time.
2526          (b) "Office" means the Office of Energy Development created in Section 79-6-401.
2527          (c) "Pilot program" means the Energy Storage Asset Pilot Grant Program created in
2528     Subsection (2).
2529          (2) There is created the "Energy Storage Asset Pilot Grant Program" administered by
2530     the office.
2531          (3) Subject to legislative appropriations, the office may award a grant to an applicant to
2532     be used for the purchase of an energy storage asset.
2533          (4) The pilot program shall operate for three years, beginning on the first day of fiscal
2534     year 2023.
2535          (5) The office may not award a grant to an eligible applicant unless the applicant
2536     provides matching funds equal to the amount of the grant.
2537          (6) Consistent with this section and in accordance with Title 63G, Chapter 3, Utah
2538     Administrative Rulemaking Act, the office shall make rules establishing the eligibility and

2539     reporting criteria for an applicant to receive a grant under this part, including:
2540          (a) the form and process of submitting a grant application to the office;
2541          (b) who is eligible to apply for a grant;
2542          (c) specific categories of energy storage assets that are eligible for a grant;
2543          (d) the method and formula for determining grant amounts; and
2544          (e) reporting requirements for grant recipients.
2545          (7) Receipt of a grant through the pilot program does not preclude a grant recipient
2546     from claiming a renewable energy system tax credit.
2547          (8) The office shall provide a report on the pilot program to the Natural Resources,
2548     Agriculture, and Environment Interim Committee and the Public Utilities, Energy, and
2549     Technology Interim Committee at or before the September interim meeting in 2024.
2550          Section 6. Appropriation.
2551          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, for
2552     the fiscal year beginning July 1, 2022, and ending June 30, 2023, the following sums of money
2553     are appropriated from resources not otherwise appropriated, or reduced from amounts
2554     previously appropriated, out of the funds or accounts indicated. These sums of money are in
2555     addition to any amounts previously appropriated for fiscal year 2023.
2556     ITEM 1
2557          To Office of Energy Development - Energy Storage Asset Pilot Grant Program
2558               From General Fund, One-time
$500,000

2559               Schedule of Programs:
2560                    Energy Storage Asset Pilot Grant Program          $500,000
2561          The Legislature intends that:
2562          (1) the Office of Energy Development expend appropriations under this section for the
2563     Energy Storage Asset Pilot Grant Program described in Section 79-6-403 in fiscal years 2023,
2564     2024, and 2025;
2565          (2) under Section 63J-1-603, the appropriations provided under this section not lapse at
2566     the close of fiscal years 2023 and 2024; and
2567          (3) the use of any nonlapsing funds is limited to the Energy Storage Asset Pilot Grant
2568     Program described in Section 79-6-403.
2569          Section 7. Effective date.

2570          (1) Except as provided in Subsection (2), this bill takes effect on May 4, 2022.
2571          (2) The amendments to the following sections take effect on July 1, 2022:
2572          (a) Section 59-12-102; and
2573          (b) Section 59-12-104.