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8 LONG TITLE
9 General Description:
10 This bill modifies provisions related to leased tangible personal property.
11 Highlighted Provisions:
12 This bill:
13 ▸ addresses the requirements for obtaining a temporary permit for a leased vehicle;
14 ▸ provides that the sale of leased tangible personal property from the lessor to the
15 lessee is subject to sales and use tax; and
16 ▸ makes technical and conforming changes.
17 Money Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 This bill provides a special effective date.
21 Utah Code Sections Affected:
22 AMENDS:
23 41-1a-211, as last amended by Laws of Utah 1998, Chapter 125
24 59-12-103, as last amended by Laws of Utah 2022, Chapters 77, 106 and 433
25 59-12-104, as last amended by Laws of Utah 2022, Chapters 228, 275, 280, and 373
26
27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 41-1a-211 is amended to read:
29 41-1a-211. Temporary permits -- Other laws applied.
30 (1) (a) The division may grant a temporary permit to operate a vehicle for which:
31 (i) application for registration has been made, or, in the case of a newly purchased
32 vehicle, will be made;
33 (ii) evidence of ownership is provided; and
34 (iii) the proper fees have been paid.
35 (b) The temporary permit allows the vehicle to be operated pending complete
36 registration by displaying:
37 (i) the temporary permit; or
38 (ii) other evidence of the application under rules made by the commission.
39 (2) If a vehicle is operated on a temporary permit issued under this section or Section
40 41-3-302, that vehicle is subject to all other statutes, rules, and regulations intended to control
41 the use and operation of vehicles on the highways.
42 (3) For purposes of Subsection (1), evidence of ownership includes a document
43 demonstrating that:
44 (a) in exchange for consideration, the vehicle's lessee agreed to transfer the vehicle to
45 the applicant upon receipt of the vehicle's certificate of title from the vehicle's lessor; and
46 (b) the lessee is the current registered owner of the vehicle.
47 Section 2. Section 59-12-103 is amended to read:
48 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
49 tax revenues.
50 (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
51 sales price for amounts paid or charged for the following transactions:
52 (a) retail sales of tangible personal property made within the state;
53 (b) amounts paid for:
54 (i) telecommunications service, other than mobile telecommunications service, that
55 originates and terminates within the boundaries of this state;
56 (ii) mobile telecommunications service that originates and terminates within the
57 boundaries of one state only to the extent permitted by the Mobile Telecommunications
58 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
59 (iii) an ancillary service associated with a:
60 (A) telecommunications service described in Subsection (1)(b)(i); or
61 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
62 (c) sales of the following for commercial use:
63 (i) gas;
64 (ii) electricity;
65 (iii) heat;
66 (iv) coal;
67 (v) fuel oil; or
68 (vi) other fuels;
69 (d) sales of the following for residential use:
70 (i) gas;
71 (ii) electricity;
72 (iii) heat;
73 (iv) coal;
74 (v) fuel oil; or
75 (vi) other fuels;
76 (e) sales of prepared food;
77 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
78 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
79 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
80 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
81 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
82 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
83 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
84 horseback rides, sports activities, or any other amusement, entertainment, recreation,
85 exhibition, cultural, or athletic activity;
86 (g) amounts paid or charged for services for repairs or renovations of tangible personal
87 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
88 (i) the tangible personal property; and
89 (ii) parts used in the repairs or renovations of the tangible personal property described
90 in Subsection (1)(g)(i), regardless of whether:
91 (A) any parts are actually used in the repairs or renovations of that tangible personal
92 property; or
93 (B) the particular parts used in the repairs or renovations of that tangible personal
94 property are exempt from a tax under this chapter;
95 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
96 assisted cleaning or washing of tangible personal property;
97 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
98 accommodations and services that are regularly rented for less than 30 consecutive days;
99 (j) amounts paid or charged for laundry or dry cleaning services;
100 (k) amounts paid or charged for leases or rentals of tangible personal property if within
101 this state the tangible personal property is:
102 (i) stored;
103 (ii) used; or
104 (iii) otherwise consumed;
105 (l) amounts paid or charged for tangible personal property if within this state the
106 tangible personal property is:
107 (i) stored;
108 (ii) used; or
109 (iii) consumed; [
110 (m) amounts paid or charged for a sale:
111 (i) (A) of a product transferred electronically; or
112 (B) of a repair or renovation of a product transferred electronically; and
113 (ii) regardless of whether the sale provides:
114 (A) a right of permanent use of the product; or
115 (B) a right to use the product that is less than a permanent use, including a right:
116 (I) for a definite or specified length of time; and
117 (II) that terminates upon the occurrence of a condition[
118 (n) sales of leased tangible personal property from the lessor to the lessee made in the
119 state.
120 (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
121 are imposed on a transaction described in Subsection (1) equal to the sum of:
122 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
123 (A) 4.70% plus the rate specified in Subsection (12)(a); and
124 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
125 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
126 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
127 State Sales and Use Tax Act; and
128 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
129 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
130 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
131 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
132 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
133 transaction under this chapter other than this part.
134 (b) Except as provided in Subsection (2)(e) or (f) and subject to Subsection (2)(k), a
135 state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
136 the sum of:
137 (i) a state tax imposed on the transaction at a tax rate of 2%; and
138 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
139 transaction under this chapter other than this part.
140 (c) Except as provided in Subsection (2)(e) or (f), a state tax and a local tax are
141 imposed on amounts paid or charged for food and food ingredients equal to the sum of:
142 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
143 a tax rate of 1.75%; and
144 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
145 amounts paid or charged for food and food ingredients under this chapter other than this part.
146 (d) Except as provided in Subsection (2)(e) or (f), a state tax is imposed on amounts
147 paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
148 a rate of 4.85%.
149 (e) (i) For a bundled transaction that is attributable to food and food ingredients and
150 tangible personal property other than food and food ingredients, a state tax and a local tax is
151 imposed on the entire bundled transaction equal to the sum of:
152 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
153 (I) the tax rate described in Subsection (2)(a)(i)(A); and
154 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
155 Sales and Use Tax Act, if the location of the transaction as determined under Sections
156 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
157 Additional State Sales and Use Tax Act; and
158 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
159 Sales and Use Tax Act, if the location of the transaction as determined under Sections
160 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
161 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
162 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
163 described in Subsection (2)(a)(ii).
164 (ii) If an optional computer software maintenance contract is a bundled transaction that
165 consists of taxable and nontaxable products that are not separately itemized on an invoice or
166 similar billing document, the purchase of the optional computer software maintenance contract
167 is 40% taxable under this chapter and 60% nontaxable under this chapter.
168 (iii) Subject to Subsection (2)(e)(iv), for a bundled transaction other than a bundled
169 transaction described in Subsection (2)(e)(i) or (ii):
170 (A) if the sales price of the bundled transaction is attributable to tangible personal
171 property, a product, or a service that is subject to taxation under this chapter and tangible
172 personal property, a product, or service that is not subject to taxation under this chapter, the
173 entire bundled transaction is subject to taxation under this chapter unless:
174 (I) the seller is able to identify by reasonable and verifiable standards the tangible
175 personal property, product, or service that is not subject to taxation under this chapter from the
176 books and records the seller keeps in the seller's regular course of business; or
177 (II) state or federal law provides otherwise; or
178 (B) if the sales price of a bundled transaction is attributable to two or more items of
179 tangible personal property, products, or services that are subject to taxation under this chapter
180 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
181 higher tax rate unless:
182 (I) the seller is able to identify by reasonable and verifiable standards the tangible
183 personal property, product, or service that is subject to taxation under this chapter at the lower
184 tax rate from the books and records the seller keeps in the seller's regular course of business; or
185 (II) state or federal law provides otherwise.
186 (iv) For purposes of Subsection (2)(e)(iii), books and records that a seller keeps in the
187 seller's regular course of business includes books and records the seller keeps in the regular
188 course of business for nontax purposes.
189 (f) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(f)(ii)
190 and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
191 product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
192 of tangible personal property, other property, a product, or a service that is not subject to
193 taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
194 the seller, at the time of the transaction:
195 (A) separately states the portion of the transaction that is not subject to taxation under
196 this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
197 (B) is able to identify by reasonable and verifiable standards, from the books and
198 records the seller keeps in the seller's regular course of business, the portion of the transaction
199 that is not subject to taxation under this chapter.
200 (ii) A purchaser and a seller may correct the taxability of a transaction if:
201 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
202 the transaction that is not subject to taxation under this chapter was not separately stated on an
203 invoice, bill of sale, or similar document provided to the purchaser because of an error or
204 ignorance of the law; and
205 (B) the seller is able to identify by reasonable and verifiable standards, from the books
206 and records the seller keeps in the seller's regular course of business, the portion of the
207 transaction that is not subject to taxation under this chapter.
208 (iii) For purposes of Subsections (2)(f)(i) and (ii), books and records that a seller keeps
209 in the seller's regular course of business includes books and records the seller keeps in the
210 regular course of business for nontax purposes.
211 (g) (i) If the sales price of a transaction is attributable to two or more items of tangible
212 personal property, products, or services that are subject to taxation under this chapter at
213 different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
214 unless the seller, at the time of the transaction:
215 (A) separately states the items subject to taxation under this chapter at each of the
216 different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
217 (B) is able to identify by reasonable and verifiable standards the tangible personal
218 property, product, or service that is subject to taxation under this chapter at the lower tax rate
219 from the books and records the seller keeps in the seller's regular course of business.
220 (ii) For purposes of Subsection (2)(g)(i), books and records that a seller keeps in the
221 seller's regular course of business includes books and records the seller keeps in the regular
222 course of business for nontax purposes.
223 (h) Subject to Subsections (2)(i) and (j), a tax rate repeal or tax rate change for a tax
224 rate imposed under the following shall take effect on the first day of a calendar quarter:
225 (i) Subsection (2)(a)(i)(A);
226 (ii) Subsection (2)(b)(i);
227 (iii) Subsection (2)(c)(i); or
228 (iv) Subsection (2)(e)(i)(A)(I).
229 (i) (i) A tax rate increase takes effect on the first day of the first billing period that
230 begins on or after the effective date of the tax rate increase if the billing period for the
231 transaction begins before the effective date of a tax rate increase imposed under:
232 (A) Subsection (2)(a)(i)(A);
233 (B) Subsection (2)(b)(i);
234 (C) Subsection (2)(c)(i); or
235 (D) Subsection (2)(e)(i)(A)(I).
236 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
237 statement for the billing period is rendered on or after the effective date of the repeal of the tax
238 or the tax rate decrease imposed under:
239 (A) Subsection (2)(a)(i)(A);
240 (B) Subsection (2)(b)(i);
241 (C) Subsection (2)(c)(i); or
242 (D) Subsection (2)(e)(i)(A)(I).
243 (j) (i) For a tax rate described in Subsection (2)(j)(ii), if a tax due on a catalogue sale is
244 computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
245 change in a tax rate takes effect:
246 (A) on the first day of a calendar quarter; and
247 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
248 (ii) Subsection (2)(j)(i) applies to the tax rates described in the following:
249 (A) Subsection (2)(a)(i)(A);
250 (B) Subsection (2)(b)(i);
251 (C) Subsection (2)(c)(i); or
252 (D) Subsection (2)(e)(i)(A)(I).
253 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
254 the commission may by rule define the term "catalogue sale."
255 (k) (i) For a location described in Subsection (2)(k)(ii), the commission shall determine
256 the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
257 predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
258 (ii) Subsection (2)(k)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
259 or other fuel is furnished through a single meter for two or more of the following uses:
260 (A) a commercial use;
261 (B) an industrial use; or
262 (C) a residential use.
263 (3) (a) The following state taxes shall be deposited into the General Fund:
264 (i) the tax imposed by Subsection (2)(a)(i)(A);
265 (ii) the tax imposed by Subsection (2)(b)(i);
266 (iii) the tax imposed by Subsection (2)(c)(i); and
267 (iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
268 (b) The following local taxes shall be distributed to a county, city, or town as provided
269 in this chapter:
270 (i) the tax imposed by Subsection (2)(a)(ii);
271 (ii) the tax imposed by Subsection (2)(b)(ii);
272 (iii) the tax imposed by Subsection (2)(c)(ii); and
273 (iv) the tax imposed by Subsection (2)(e)(i)(B).
274 (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
275 Fund.
276 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
277 2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
278 through (g):
279 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
280 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
281 (B) for the fiscal year; or
282 (ii) $17,500,000.
283 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
284 described in Subsection (4)(a) shall be transferred each year as designated sales and use tax
285 revenue to the Department of Natural Resources to:
286 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
287 protect sensitive plant and animal species; or
288 (B) award grants, up to the amount authorized by the Legislature in an appropriations
289 act, to political subdivisions of the state to implement the measures described in Subsections
290 79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
291 (ii) Money transferred to the Department of Natural Resources under Subsection
292 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
293 person to list or attempt to have listed a species as threatened or endangered under the
294 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
295 (iii) At the end of each fiscal year:
296 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
297 Water Resources Conservation and Development Fund created in Section 73-10-24;
298 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
299 Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
300 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
301 Drinking Water Loan Program Subaccount created in Section 73-10c-5.
302 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
303 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
304 created in Section 4-18-106.
305 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
306 in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to
307 the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for
308 the adjudication of water rights.
309 (ii) At the end of each fiscal year:
310 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
311 Water Resources Conservation and Development Fund created in Section 73-10-24;
312 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
313 Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
314 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
315 Drinking Water Loan Program Subaccount created in Section 73-10c-5.
316 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
317 in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
318 Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
319 (ii) In addition to the uses allowed of the Water Resources Conservation and
320 Development Fund under Section 73-10-24, the Water Resources Conservation and
321 Development Fund may also be used to:
322 (A) conduct hydrologic and geotechnical investigations by the Division of Water
323 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
324 quantifying surface and ground water resources and describing the hydrologic systems of an
325 area in sufficient detail so as to enable local and state resource managers to plan for and
326 accommodate growth in water use without jeopardizing the resource;
327 (B) fund state required dam safety improvements; and
328 (C) protect the state's interest in interstate water compact allocations, including the
329 hiring of technical and legal staff.
330 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
331 in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
332 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
333 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
334 in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
335 created in Section 73-10c-5 for use by the Division of Drinking Water to:
336 (i) provide for the installation and repair of collection, treatment, storage, and
337 distribution facilities for any public water system, as defined in Section 19-4-102;
338 (ii) develop underground sources of water, including springs and wells; and
339 (iii) develop surface water sources.
340 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
341 2006, the difference between the following amounts shall be expended as provided in this
342 Subsection (5), if that difference is greater than $1:
343 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
344 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
345 (ii) $17,500,000.
346 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
347 (A) transferred each fiscal year to the Department of Natural Resources as designated
348 sales and use tax revenue; and
349 (B) expended by the Department of Natural Resources for watershed rehabilitation or
350 restoration.
351 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
352 tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation
353 and Development Fund created in Section 73-10-24.
354 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
355 remaining difference described in Subsection (5)(a) shall be:
356 (A) transferred each fiscal year to the Division of Water Resources as designated sales
357 and use tax revenue; and
358 (B) expended by the Division of Water Resources for cloud-seeding projects
359 authorized by Title 73, Chapter 15, Modification of Weather.
360 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
361 tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation
362 and Development Fund created in Section 73-10-24.
363 (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
364 remaining difference described in Subsection (5)(a) shall be deposited into the Water
365 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
366 Division of Water Resources for:
367 (i) preconstruction costs:
368 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
369 26, Bear River Development Act; and
370 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
371 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
372 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
373 Chapter 26, Bear River Development Act;
374 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
375 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
376 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
377 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
378 (e) After making the transfers required by Subsections (5)(b) and (c), 15% of the
379 remaining difference described in Subsection (5)(a) shall be deposited each year into the Water
380 Rights Restricted Account created by Section 73-2-1.6.
381 (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
382 amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
383 (1) for the fiscal year shall be deposited as follows:
384 (a) for fiscal year 2020-21 only:
385 (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
386 Transportation Investment Fund of 2005 created by Section 72-2-124; and
387 (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
388 Water Infrastructure Restricted Account created by Section 73-10g-103; and
389 (b) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
390 in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
391 created by Section 73-10g-103.
392 (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
393 Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
394 2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
395 created by Section 72-2-124:
396 (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
397 the revenues collected from the following taxes, which represents a portion of the
398 approximately 17% of sales and use tax revenues generated annually by the sales and use tax
399 on vehicles and vehicle-related products:
400 (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
401 (B) the tax imposed by Subsection (2)(b)(i);
402 (C) the tax imposed by Subsection (2)(c)(i); and
403 (D) the tax imposed by Subsection (2)(e)(i)(A)(I); plus
404 (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
405 current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
406 (D) that exceeds the amount collected from the sales and use taxes described in Subsections
407 (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
408 (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
409 the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
410 lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
411 generated in the current fiscal year than the total percentage of sales and use taxes deposited in
412 the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
413 (7)(a) equal to the product of:
414 (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
415 previous fiscal year; and
416 (B) the total sales and use tax revenue generated by the taxes described in Subsections
417 (7)(a)(i)(A) through (D) in the current fiscal year.
418 (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
419 Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
420 described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
421 Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
422 Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
423 (iii) Subject to Subsection (7)(b)(iv)(E), in all subsequent fiscal years after a year in
424 which 17% of the revenues collected from the sales and use taxes described in Subsections
425 (7)(a)(i)(A) through (D) was deposited under Subsection (7)(a), the Division of Finance shall
426 annually deposit 17% of the revenues collected from the sales and use taxes described in
427 Subsections (7)(a)(i)(A) through (D) in the current fiscal year under Subsection (7)(a).
428 (iv) (A) As used in this Subsection (7)(b)(iv), "additional growth revenue" means the
429 amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
430 the relevant revenue collected in the previous fiscal year.
431 (B) As used in this Subsection (7)(b)(iv), "combined amount" means the combined
432 total amount of money deposited into the Cottonwood Canyons fund under Subsections
433 (7)(b)(iv)(F) and (8)(d)(vi) in any single fiscal year.
434 (C) As used in this Subsection (7)(b)(iv), "Cottonwood Canyons fund" means the
435 Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
436 (D) As used in this Subsection (7)(b)(iv), "relevant revenue" means the portion of taxes
437 listed under Subsection (3)(a) that equals 17% of the revenue collected from taxes described in
438 Subsections (7)(a)(i)(A) through (D).
439 (E) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
440 reduce the deposit under Subsection (7)(b)(iii) into the Transportation Investment Fund of 2005
441 by an amount equal to the amount of the deposit under this Subsection (7)(b)(iv) to the
442 Cottonwood Canyons fund in the previous fiscal year plus 25% of additional growth revenue,
443 subject to the limit in Subsection (7)(b)(iv)(F).
444 (F) The commission shall annually deposit the amount described in Subsection
445 (7)(b)(iv)(E) into the Cottonwood Canyons fund, subject to an annual maximum combined
446 amount for any single fiscal year of $20,000,000.
447 (G) If the amount of relevant revenue declines in a fiscal year compared to the previous
448 fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
449 Canyons fund under this Subsection (7)(b)(iv) in the same proportion as the decline in relevant
450 revenue.
451 (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
452 Subsections (6) and (7), and subject to Subsections (8)(b) and (d)(v), for a fiscal year beginning
453 on or after July 1, 2018, the commission shall annually deposit into the Transportation
454 Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under
455 Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the following
456 taxes:
457 (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
458 (ii) the tax imposed by Subsection (2)(b)(i);
459 (iii) the tax imposed by Subsection (2)(c)(i); and
460 (iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
461 (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
462 reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
463 an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
464 the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
465 or use in this state that exceeds 29.4 cents per gallon.
466 (c) The commission shall annually deposit the amount described in Subsection (8)(b)
467 into the Transit Transportation Investment Fund created in Section 72-2-124.
468 (d) (i) As used in this Subsection (8)(d), "additional growth revenue" means the
469 amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
470 the relevant revenue collected in the previous fiscal year.
471 (ii) As used in this Subsection (8)(d), "combined amount" means the combined total
472 amount of money deposited into the Cottonwood Canyons fund under Subsections (7)(b)(iv)(F)
473 and (8)(d)(vi) in any single fiscal year.
474 (iii) As used in this Subsection (8)(d), "Cottonwood Canyons fund" means the
475 Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
476 (iv) As used in this Subsection (8)(d), "relevant revenue" means the portion of taxes
477 listed under Subsection (3)(a) that equals 3.68% of the revenue collected from taxes described
478 in Subsections (8)(a)(i) through (iv).
479 (v) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
480 reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
481 an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
482 Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
483 limit in Subsection (8)(d)(vi).
484 (vi) The commission shall annually deposit the amount described in Subsection
485 (8)(d)(v) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
486 for any single fiscal year of $20,000,000.
487 (vii) If the amount of relevant revenue declines in a fiscal year compared to the
488 previous fiscal year, the commission shall decrease the amount of the contribution to the
489 Cottonwood Canyons fund under this Subsection (8)(d) in the same proportion as the decline in
490 relevant revenue.
491 (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
492 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
493 created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
494 (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(b),
495 and in addition to any amounts deposited under Subsections (6), (7), and (8), the Division of
496 Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
497 72-2-124 the amount of revenue described as follows:
498 (i) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a .05%
499 tax rate on the transactions described in Subsection (1); and
500 (ii) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
501 tax rate on the transactions described in Subsection (1).
502 (b) For purposes of Subsection (10)(a), the Division of Finance may not deposit into
503 the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
504 charged for food and food ingredients, except for tax revenue generated by a bundled
505 transaction attributable to food and food ingredients and tangible personal property other than
506 food and food ingredients described in Subsection (2)(e).
507 (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
508 fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
509 construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
510 Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
511 generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
512 created in Section 63N-2-512.
513 (12) (a) The rate specified in this subsection is 0.15%.
514 (b) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
515 beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
516 rate described in Subsection (12)(a) on the transactions that are subject to the sales and use tax
517 under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section
518 26-36b-208.
519 (13) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
520 2020-21, the Division of Finance shall deposit $200,000 into the General Fund as a dedicated
521 credit solely for use of the Search and Rescue Financial Assistance Program created in, and
522 expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
523 (14) (a) For each fiscal year beginning with fiscal year 2020-21, the Division of
524 Finance shall annually transfer $1,813,400 of the revenue deposited into the Transportation
525 Investment Fund of 2005 under Subsections (6) through (8) to the General Fund.
526 (b) If the total revenue deposited into the Transportation Investment Fund of 2005
527 under Subsections (6) through (8) is less than $1,813,400 for a fiscal year, the Division of
528 Finance shall transfer the total revenue deposited into the Transportation Investment Fund of
529 2005 under Subsections (6) through (8) during the fiscal year to the General Fund.
530 (15) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610,
531 beginning the first day of the calendar quarter one year after the sales and use tax boundary for
532 a housing and transit reinvestment zone is established, the commission, at least annually, shall
533 transfer an amount equal to 15% of the sales and use tax increment within an established sales
534 and use tax boundary, as defined in Section 63N-3-602, into the Transit Transportation
535 Investment Fund created in Section 72-2-124.
536 (16) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
537 beginning on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure
538 Restricted Account, created in Section 51-9-902, a portion of the taxes listed under Subsection
539 (3)(a) equal to 1% of the revenues collected from the following sales and use taxes:
540 (a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
541 (b) the tax imposed by Subsection (2)(b)(i);
542 (c) the tax imposed by Subsection (2)(c)(i); and
543 (d) the tax imposed by Subsection (2)(e)(i)(A)(I).
544 Section 3. Section 59-12-104 is amended to read:
545 59-12-104. Exemptions.
546 Exemptions from the taxes imposed by this chapter are as follows:
547 (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
548 under Chapter 13, Motor and Special Fuel Tax Act;
549 (2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
550 subdivisions; however, this exemption does not apply to sales of:
551 (a) construction materials except:
552 (i) construction materials purchased by or on behalf of institutions of the public
553 education system as defined in Utah Constitution, Article X, Section 2, provided the
554 construction materials are clearly identified and segregated and installed or converted to real
555 property which is owned by institutions of the public education system; and
556 (ii) construction materials purchased by the state, its institutions, or its political
557 subdivisions which are installed or converted to real property by employees of the state, its
558 institutions, or its political subdivisions; or
559 (b) tangible personal property in connection with the construction, operation,
560 maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or facilities
561 providing additional project capacity, as defined in Section 11-13-103;
562 (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
563 (i) the proceeds of each sale do not exceed $1; and
564 (ii) the seller or operator of the vending machine reports an amount equal to 150% of
565 the cost of the item described in Subsection (3)(b) as goods consumed; and
566 (b) Subsection (3)(a) applies to:
567 (i) food and food ingredients; or
568 (ii) prepared food;
569 (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
570 (i) alcoholic beverages;
571 (ii) food and food ingredients; or
572 (iii) prepared food;
573 (b) sales of tangible personal property or a product transferred electronically:
574 (i) to a passenger;
575 (ii) by a commercial airline carrier; and
576 (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
577 (c) services related to Subsection (4)(a) or (b);
578 (5) sales of parts and equipment for installation in an aircraft operated by a common
579 carrier in interstate or foreign commerce;
580 (6) sales of commercials, motion picture films, prerecorded audio program tapes or
581 records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
582 exhibitor, distributor, or commercial television or radio broadcaster;
583 (7) (a) except as provided in Subsection (85) and subject to Subsection (7)(b), sales of
584 cleaning or washing of tangible personal property if the cleaning or washing of the tangible
585 personal property is not assisted cleaning or washing of tangible personal property;
586 (b) if a seller that sells at the same business location assisted cleaning or washing of
587 tangible personal property and cleaning or washing of tangible personal property that is not
588 assisted cleaning or washing of tangible personal property, the exemption described in
589 Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
590 or washing of the tangible personal property; and
591 (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
592 Utah Administrative Rulemaking Act, the commission may make rules:
593 (i) governing the circumstances under which sales are at the same business location;
594 and
595 (ii) establishing the procedures and requirements for a seller to separately account for
596 sales of assisted cleaning or washing of tangible personal property;
597 (8) sales made to or by religious or charitable institutions in the conduct of their regular
598 religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
599 fulfilled;
600 (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
601 this state if [
602 (a) the sale is not from the vehicle's lessor to the vehicle's lessee;
603 (b) the vehicle is not registered in this state; and
604 [
605 (ii) the vehicle is used in this state:
606 (A) if the vehicle is not used to conduct business, for a time period that does not
607 exceed the longer of:
608 (I) 30 days in any calendar year; or
609 (II) the time period necessary to transport the vehicle to the borders of this state; or
610 (B) if the vehicle is used to conduct business, for the time period necessary to transport
611 the vehicle to the borders of this state;
612 (10) (a) amounts paid for an item described in Subsection (10)(b) if:
613 (i) the item is intended for human use; and
614 (ii) (A) a prescription was issued for the item; or
615 (B) the item was purchased by a hospital or other medical facility; and
616 (b) (i) Subsection (10)(a) applies to:
617 (A) a drug;
618 (B) a syringe; or
619 (C) a stoma supply; and
620 (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
621 commission may by rule define the terms:
622 (A) "syringe"; or
623 (B) "stoma supply";
624 (11) purchases or leases exempt under Section 19-12-201;
625 (12) (a) sales of an item described in Subsection (12)(c) served by:
626 (i) the following if the item described in Subsection (12)(c) is not available to the
627 general public:
628 (A) a church; or
629 (B) a charitable institution; or
630 (ii) an institution of higher education if:
631 (A) the item described in Subsection (12)(c) is not available to the general public; or
632 (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
633 offered by the institution of higher education; or
634 (b) sales of an item described in Subsection (12)(c) provided for a patient by:
635 (i) a medical facility; or
636 (ii) a nursing facility; and
637 (c) Subsections (12)(a) and (b) apply to:
638 (i) food and food ingredients;
639 (ii) prepared food; or
640 (iii) alcoholic beverages;
641 (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
642 or a product transferred electronically by a person:
643 (i) regardless of the number of transactions involving the sale of that tangible personal
644 property or product transferred electronically by that person; and
645 (ii) not regularly engaged in the business of selling that type of tangible personal
646 property or product transferred electronically;
647 (b) this Subsection (13) does not apply if:
648 (i) the sale is one of a series of sales of a character to indicate that the person is
649 regularly engaged in the business of selling that type of tangible personal property or product
650 transferred electronically;
651 (ii) the person holds that person out as regularly engaged in the business of selling that
652 type of tangible personal property or product transferred electronically;
653 (iii) the person sells an item of tangible personal property or product transferred
654 electronically that the person purchased as a sale that is exempt under Subsection (25); or
655 (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
656 this state in which case the tax is based upon:
657 (A) the bill of sale, lease agreement, or other written evidence of value of the vehicle or
658 vessel being sold; or
659 (B) in the absence of a bill of sale, lease agreement, or other written evidence of value,
660 the fair market value of the vehicle or vessel being sold at the time of the sale as determined by
661 the commission; and
662 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
663 commission shall make rules establishing the circumstances under which:
664 (i) a person is regularly engaged in the business of selling a type of tangible personal
665 property or product transferred electronically;
666 (ii) a sale of tangible personal property or a product transferred electronically is one of
667 a series of sales of a character to indicate that a person is regularly engaged in the business of
668 selling that type of tangible personal property or product transferred electronically; or
669 (iii) a person holds that person out as regularly engaged in the business of selling a type
670 of tangible personal property or product transferred electronically;
671 (14) amounts paid or charged for a purchase or lease of machinery, equipment, normal
672 operating repair or replacement parts, or materials, except for office equipment or office
673 supplies, by:
674 (a) a manufacturing facility that:
675 (i) is located in the state; and
676 (ii) uses or consumes the machinery, equipment, normal operating repair or
677 replacement parts, or materials:
678 (A) in the manufacturing process to manufacture an item sold as tangible personal
679 property, as the commission may define that phrase in accordance with Title 63G, Chapter 3,
680 Utah Administrative Rulemaking Act; or
681 (B) for a scrap recycler, to process an item sold as tangible personal property, as the
682 commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
683 Administrative Rulemaking Act;
684 (b) an establishment, as the commission defines that term in accordance with Title
685 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
686 (i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
687 Code 213113, Support Activities for Coal Mining, 213114, Support Activities for Metal
688 Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining, of the
689 2002 North American Industry Classification System of the federal Executive Office of the
690 President, Office of Management and Budget;
691 (ii) is located in the state; and
692 (iii) uses or consumes the machinery, equipment, normal operating repair or
693 replacement parts, or materials in:
694 (A) the production process to produce an item sold as tangible personal property, as the
695 commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
696 Administrative Rulemaking Act;
697 (B) research and development, as the commission may define that phrase in accordance
698 with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
699 (C) transporting, storing, or managing tailings, overburden, or similar waste materials
700 produced from mining;
701 (D) developing or maintaining a road, tunnel, excavation, or similar feature used in
702 mining; or
703 (E) preventing, controlling, or reducing dust or other pollutants from mining; or
704 (c) an establishment, as the commission defines that term in accordance with Title
705 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
706 (i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North
707 American Industry Classification System of the federal Executive Office of the President,
708 Office of Management and Budget;
709 (ii) is located in the state; and
710 (iii) uses or consumes the machinery, equipment, normal operating repair or
711 replacement parts, or materials in the operation of the web search portal;
712 (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
713 (i) tooling;
714 (ii) special tooling;
715 (iii) support equipment;
716 (iv) special test equipment; or
717 (v) parts used in the repairs or renovations of tooling or equipment described in
718 Subsections (15)(a)(i) through (iv); and
719 (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
720 (i) the tooling, equipment, or parts are used or consumed exclusively in the
721 performance of any aerospace or electronics industry contract with the United States
722 government or any subcontract under that contract; and
723 (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
724 title to the tooling, equipment, or parts is vested in the United States government as evidenced
725 by:
726 (A) a government identification tag placed on the tooling, equipment, or parts; or
727 (B) listing on a government-approved property record if placing a government
728 identification tag on the tooling, equipment, or parts is impractical;
729 (16) sales of newspapers or newspaper subscriptions;
730 (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
731 product transferred electronically traded in as full or part payment of the purchase price, except
732 that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
733 trade-ins are limited to other vehicles only, and the tax is based upon:
734 (i) the bill of sale or other written evidence of value of the vehicle being sold and the
735 vehicle being traded in; or
736 (ii) in the absence of a bill of sale or other written evidence of value, the then existing
737 fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
738 commission; and
739 (b) Subsection (17)(a) does not apply to the following items of tangible personal
740 property or products transferred electronically traded in as full or part payment of the purchase
741 price:
742 (i) money;
743 (ii) electricity;
744 (iii) water;
745 (iv) gas; or
746 (v) steam;
747 (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
748 or a product transferred electronically used or consumed primarily and directly in farming
749 operations, regardless of whether the tangible personal property or product transferred
750 electronically:
751 (A) becomes part of real estate; or
752 (B) is installed by a farmer, contractor, or subcontractor; or
753 (ii) sales of parts used in the repairs or renovations of tangible personal property or a
754 product transferred electronically if the tangible personal property or product transferred
755 electronically is exempt under Subsection (18)(a)(i); and
756 (b) amounts paid or charged for the following are subject to the taxes imposed by this
757 chapter:
758 (i) (A) subject to Subsection (18)(b)(i)(B), machinery, equipment, materials, or
759 supplies if used in a manner that is incidental to farming; and
760 (B) tangible personal property that is considered to be used in a manner that is
761 incidental to farming includes:
762 (I) hand tools; or
763 (II) maintenance and janitorial equipment and supplies;
764 (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
765 transferred electronically if the tangible personal property or product transferred electronically
766 is used in an activity other than farming; and
767 (B) tangible personal property or a product transferred electronically that is considered
768 to be used in an activity other than farming includes:
769 (I) office equipment and supplies; or
770 (II) equipment and supplies used in:
771 (Aa) the sale or distribution of farm products;
772 (Bb) research; or
773 (Cc) transportation; or
774 (iii) a vehicle required to be registered by the laws of this state during the period
775 ending two years after the date of the vehicle's purchase;
776 (19) sales of hay;
777 (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
778 garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
779 garden, farm, or other agricultural produce is sold by:
780 (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
781 agricultural produce;
782 (b) an employee of the producer described in Subsection (20)(a); or
783 (c) a member of the immediate family of the producer described in Subsection (20)(a);
784 (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
785 under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
786 (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
787 nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
788 wholesaler, or retailer for use in packaging tangible personal property to be sold by that
789 manufacturer, processor, wholesaler, or retailer;
790 (23) a product stored in the state for resale;
791 (24) (a) purchases of a product if:
792 (i) the product is:
793 (A) purchased outside of this state;
794 (B) brought into this state:
795 (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
796 (II) by a nonresident person who is not living or working in this state at the time of the
797 purchase;
798 (C) used for the personal use or enjoyment of the nonresident person described in
799 Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
800 (D) not used in conducting business in this state; and
801 (ii) for:
802 (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
803 the product for a purpose for which the product is designed occurs outside of this state;
804 (B) a boat, the boat is registered outside of this state; or
805 (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
806 outside of this state;
807 (b) the exemption provided for in Subsection (24)(a) does not apply to:
808 (i) a lease or rental of a product; or
809 (ii) a sale of a vehicle exempt under Subsection (33); and
810 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
811 purposes of Subsection (24)(a), the commission may by rule define what constitutes the
812 following:
813 (i) conducting business in this state if that phrase has the same meaning in this
814 Subsection (24) as in Subsection (63);
815 (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
816 as in Subsection (63); or
817 (iii) a purpose for which a product is designed if that phrase has the same meaning in
818 this Subsection (24) as in Subsection (63);
819 (25) a product purchased for resale in the regular course of business, either in its
820 original form or as an ingredient or component part of a manufactured or compounded product;
821 (26) a product upon which a sales or use tax was paid to some other state, or one of its
822 subdivisions, except that the state shall be paid any difference between the tax paid and the tax
823 imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
824 the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
825 Act;
826 (27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a
827 person for use in compounding a service taxable under the subsections;
828 (28) purchases made in accordance with the special supplemental nutrition program for
829 women, infants, and children established in 42 U.S.C. Sec. 1786;
830 (29) sales or leases of rolls, rollers, refractory brick, electric motors, or other
831 replacement parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code
832 3312 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of
833 the President, Office of Management and Budget;
834 (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
835 Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
836 (a) not registered in this state; and
837 (b) (i) not used in this state; or
838 (ii) used in this state:
839 (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
840 time period that does not exceed the longer of:
841 (I) 30 days in any calendar year; or
842 (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
843 the borders of this state; or
844 (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
845 period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
846 state;
847 (31) sales of aircraft manufactured in Utah;
848 (32) amounts paid for the purchase of telecommunications service for purposes of
849 providing telecommunications service;
850 (33) sales, leases, or uses of the following:
851 (a) a vehicle by an authorized carrier; or
852 (b) tangible personal property that is installed on a vehicle:
853 (i) sold or leased to or used by an authorized carrier; and
854 (ii) before the vehicle is placed in service for the first time;
855 (34) (a) 45% of the sales price of any new manufactured home; and
856 (b) 100% of the sales price of any used manufactured home;
857 (35) sales relating to schools and fundraising sales;
858 (36) sales or rentals of durable medical equipment if:
859 (a) a person presents a prescription for the durable medical equipment; and
860 (b) the durable medical equipment is used for home use only;
861 (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
862 Section 72-11-102; and
863 (b) the commission shall by rule determine the method for calculating sales exempt
864 under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
865 (38) sales to a ski resort of:
866 (a) snowmaking equipment;
867 (b) ski slope grooming equipment;
868 (c) passenger ropeways as defined in Section 72-11-102; or
869 (d) parts used in the repairs or renovations of equipment or passenger ropeways
870 described in Subsections (38)(a) through (c);
871 (39) subject to Subsection 59-12-103(2)(j), sales of natural gas, electricity, heat, coal,
872 fuel oil, or other fuels for industrial use;
873 (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
874 amusement, entertainment, or recreation an unassisted amusement device as defined in Section
875 59-12-102;
876 (b) if a seller that sells or rents at the same business location the right to use or operate
877 for amusement, entertainment, or recreation one or more unassisted amusement devices and
878 one or more assisted amusement devices, the exemption described in Subsection (40)(a)
879 applies if the seller separately accounts for the sales or rentals of the right to use or operate for
880 amusement, entertainment, or recreation for the assisted amusement devices; and
881 (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
882 Utah Administrative Rulemaking Act, the commission may make rules:
883 (i) governing the circumstances under which sales are at the same business location;
884 and
885 (ii) establishing the procedures and requirements for a seller to separately account for
886 the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
887 assisted amusement devices;
888 (41) (a) sales of photocopies by:
889 (i) a governmental entity; or
890 (ii) an entity within the state system of public education, including:
891 (A) a school; or
892 (B) the State Board of Education; or
893 (b) sales of publications by a governmental entity;
894 (42) amounts paid for admission to an athletic event at an institution of higher
895 education that is subject to the provisions of Title IX of the Education Amendments of 1972,
896 20 U.S.C. Sec. 1681 et seq.;
897 (43) (a) sales made to or by:
898 (i) an area agency on aging; or
899 (ii) a senior citizen center owned by a county, city, or town; or
900 (b) sales made by a senior citizen center that contracts with an area agency on aging;
901 (44) sales or leases of semiconductor fabricating, processing, research, or development
902 materials regardless of whether the semiconductor fabricating, processing, research, or
903 development materials:
904 (a) actually come into contact with a semiconductor; or
905 (b) ultimately become incorporated into real property;
906 (45) an amount paid by or charged to a purchaser for accommodations and services
907 described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under Section
908 59-12-104.2;
909 (46) the lease or use of a vehicle issued a temporary sports event registration certificate
910 in accordance with Section 41-3-306 for the event period specified on the temporary sports
911 event registration certificate;
912 (47) (a) sales or uses of electricity, if the sales or uses are made under a retail tariff
913 adopted by the Public Service Commission only for purchase of electricity produced from a
914 new alternative energy source built after January 1, 2016, as designated in the tariff by the
915 Public Service Commission; and
916 (b) for a residential use customer only, the exemption under Subsection (47)(a) applies
917 only to the portion of the tariff rate a customer pays under the tariff described in Subsection
918 (47)(a) that exceeds the tariff rate under the tariff described in Subsection (47)(a) that the
919 customer would have paid absent the tariff;
920 (48) sales or rentals of mobility enhancing equipment if a person presents a
921 prescription for the mobility enhancing equipment;
922 (49) sales of water in a:
923 (a) pipe;
924 (b) conduit;
925 (c) ditch; or
926 (d) reservoir;
927 (50) sales of currency or coins that constitute legal tender of a state, the United States,
928 or a foreign nation;
929 (51) (a) sales of an item described in Subsection (51)(b) if the item:
930 (i) does not constitute legal tender of a state, the United States, or a foreign nation; and
931 (ii) has a gold, silver, or platinum content of 50% or more; and
932 (b) Subsection (51)(a) applies to a gold, silver, or platinum:
933 (i) ingot;
934 (ii) bar;
935 (iii) medallion; or
936 (iv) decorative coin;
937 (52) amounts paid on a sale-leaseback transaction;
938 (53) sales of a prosthetic device:
939 (a) for use on or in a human; and
940 (b) (i) for which a prescription is required; or
941 (ii) if the prosthetic device is purchased by a hospital or other medical facility;
942 (54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
943 machinery or equipment by an establishment described in Subsection (54)(c) if the machinery
944 or equipment is primarily used in the production or postproduction of the following media for
945 commercial distribution:
946 (i) a motion picture;
947 (ii) a television program;
948 (iii) a movie made for television;
949 (iv) a music video;
950 (v) a commercial;
951 (vi) a documentary; or
952 (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
953 commission by administrative rule made in accordance with Subsection (54)(d); or
954 (b) purchases, leases, or rentals of machinery or equipment by an establishment
955 described in Subsection (54)(c) that is used for the production or postproduction of the
956 following are subject to the taxes imposed by this chapter:
957 (i) a live musical performance;
958 (ii) a live news program; or
959 (iii) a live sporting event;
960 (c) the following establishments listed in the 1997 North American Industry
961 Classification System of the federal Executive Office of the President, Office of Management
962 and Budget, apply to Subsections (54)(a) and (b):
963 (i) NAICS Code 512110; or
964 (ii) NAICS Code 51219; and
965 (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
966 commission may by rule:
967 (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
968 or
969 (ii) define:
970 (A) "commercial distribution";
971 (B) "live musical performance";
972 (C) "live news program"; or
973 (D) "live sporting event";
974 (55) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
975 on or before June 30, 2027, of tangible personal property that:
976 (i) is leased or purchased for or by a facility that:
977 (A) is an alternative energy electricity production facility;
978 (B) is located in the state; and
979 (C) (I) becomes operational on or after July 1, 2004; or
980 (II) has its generation capacity increased by one or more megawatts on or after July 1,
981 2004, as a result of the use of the tangible personal property;
982 (ii) has an economic life of five or more years; and
983 (iii) is used to make the facility or the increase in capacity of the facility described in
984 Subsection (55)(a)(i) operational up to the point of interconnection with an existing
985 transmission grid including:
986 (A) a wind turbine;
987 (B) generating equipment;
988 (C) a control and monitoring system;
989 (D) a power line;
990 (E) substation equipment;
991 (F) lighting;
992 (G) fencing;
993 (H) pipes; or
994 (I) other equipment used for locating a power line or pole; and
995 (b) this Subsection (55) does not apply to:
996 (i) tangible personal property used in construction of:
997 (A) a new alternative energy electricity production facility; or
998 (B) the increase in the capacity of an alternative energy electricity production facility;
999 (ii) contracted services required for construction and routine maintenance activities;
1000 and
1001 (iii) unless the tangible personal property is used or acquired for an increase in capacity
1002 of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal property used or
1003 acquired after:
1004 (A) the alternative energy electricity production facility described in Subsection
1005 (55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
1006 (B) the increased capacity described in Subsection (55)(a)(i) is operational as described
1007 in Subsection (55)(a)(iii);
1008 (56) (a) leases of seven or more years or purchases made on or after July 1, 2004, but
1009 on or before June 30, 2027, of tangible personal property that:
1010 (i) is leased or purchased for or by a facility that:
1011 (A) is a waste energy production facility;
1012 (B) is located in the state; and
1013 (C) (I) becomes operational on or after July 1, 2004; or
1014 (II) has its generation capacity increased by one or more megawatts on or after July 1,
1015 2004, as a result of the use of the tangible personal property;
1016 (ii) has an economic life of five or more years; and
1017 (iii) is used to make the facility or the increase in capacity of the facility described in
1018 Subsection (56)(a)(i) operational up to the point of interconnection with an existing
1019 transmission grid including:
1020 (A) generating equipment;
1021 (B) a control and monitoring system;
1022 (C) a power line;
1023 (D) substation equipment;
1024 (E) lighting;
1025 (F) fencing;
1026 (G) pipes; or
1027 (H) other equipment used for locating a power line or pole; and
1028 (b) this Subsection (56) does not apply to:
1029 (i) tangible personal property used in construction of:
1030 (A) a new waste energy facility; or
1031 (B) the increase in the capacity of a waste energy facility;
1032 (ii) contracted services required for construction and routine maintenance activities;
1033 and
1034 (iii) unless the tangible personal property is used or acquired for an increase in capacity
1035 described in Subsection (56)(a)(i)(C)(II), tangible personal property used or acquired after:
1036 (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
1037 described in Subsection (56)(a)(iii); or
1038 (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
1039 in Subsection (56)(a)(iii);
1040 (57) (a) leases of five or more years or purchases made on or after July 1, 2004, but on
1041 or before June 30, 2027, of tangible personal property that:
1042 (i) is leased or purchased for or by a facility that:
1043 (A) is located in the state;
1044 (B) produces fuel from alternative energy, including:
1045 (I) methanol; or
1046 (II) ethanol; and
1047 (C) (I) becomes operational on or after July 1, 2004; or
1048 (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as
1049 a result of the installation of the tangible personal property;
1050 (ii) has an economic life of five or more years; and
1051 (iii) is installed on the facility described in Subsection (57)(a)(i);
1052 (b) this Subsection (57) does not apply to:
1053 (i) tangible personal property used in construction of:
1054 (A) a new facility described in Subsection (57)(a)(i); or
1055 (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
1056 (ii) contracted services required for construction and routine maintenance activities;
1057 and
1058 (iii) unless the tangible personal property is used or acquired for an increase in capacity
1059 described in Subsection (57)(a)(i)(C)(II), tangible personal property used or acquired after:
1060 (A) the facility described in Subsection (57)(a)(i) is operational; or
1061 (B) the increased capacity described in Subsection (57)(a)(i) is operational;
1062 (58) (a) subject to Subsection (58)(b), sales of tangible personal property or a product
1063 transferred electronically to a person within this state if that tangible personal property or
1064 product transferred electronically is subsequently shipped outside the state and incorporated
1065 pursuant to contract into and becomes a part of real property located outside of this state; and
1066 (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
1067 state or political entity to which the tangible personal property is shipped imposes a sales, use,
1068 gross receipts, or other similar transaction excise tax on the transaction against which the other
1069 state or political entity allows a credit for sales and use taxes imposed by this chapter;
1070 (59) purchases:
1071 (a) of one or more of the following items in printed or electronic format:
1072 (i) a list containing information that includes one or more:
1073 (A) names; or
1074 (B) addresses; or
1075 (ii) a database containing information that includes one or more:
1076 (A) names; or
1077 (B) addresses; and
1078 (b) used to send direct mail;
1079 (60) redemptions or repurchases of a product by a person if that product was:
1080 (a) delivered to a pawnbroker as part of a pawn transaction; and
1081 (b) redeemed or repurchased within the time period established in a written agreement
1082 between the person and the pawnbroker for redeeming or repurchasing the product;
1083 (61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
1084 (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
1085 and
1086 (ii) has a useful economic life of one or more years; and
1087 (b) the following apply to Subsection (61)(a):
1088 (i) telecommunications enabling or facilitating equipment, machinery, or software;
1089 (ii) telecommunications equipment, machinery, or software required for 911 service;
1090 (iii) telecommunications maintenance or repair equipment, machinery, or software;
1091 (iv) telecommunications switching or routing equipment, machinery, or software; or
1092 (v) telecommunications transmission equipment, machinery, or software;
1093 (62) (a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
1094 personal property or a product transferred electronically that are used in the research and
1095 development of alternative energy technology; and
1096 (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1097 commission may, for purposes of Subsection (62)(a), make rules defining what constitutes
1098 purchases of tangible personal property or a product transferred electronically that are used in
1099 the research and development of alternative energy technology;
1100 (63) (a) purchases of tangible personal property or a product transferred electronically
1101 if:
1102 (i) the tangible personal property or product transferred electronically is:
1103 (A) purchased outside of this state;
1104 (B) brought into this state at any time after the purchase described in Subsection
1105 (63)(a)(i)(A); and
1106 (C) used in conducting business in this state; and
1107 (ii) for:
1108 (A) tangible personal property or a product transferred electronically other than the
1109 tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property
1110 for a purpose for which the property is designed occurs outside of this state; or
1111 (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
1112 outside of this state and not required to be registered in this state under Section 41-1a-202 or
1113 73-18-9 based on residency;
1114 (b) the exemption provided for in Subsection (63)(a) does not apply to:
1115 (i) a lease or rental of tangible personal property or a product transferred electronically;
1116 or
1117 (ii) a sale of a vehicle exempt under Subsection (33); and
1118 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
1119 purposes of Subsection (63)(a), the commission may by rule define what constitutes the
1120 following:
1121 (i) conducting business in this state if that phrase has the same meaning in this
1122 Subsection (63) as in Subsection (24);
1123 (ii) the first use of tangible personal property or a product transferred electronically if
1124 that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
1125 (iii) a purpose for which tangible personal property or a product transferred
1126 electronically is designed if that phrase has the same meaning in this Subsection (63) as in
1127 Subsection (24);
1128 (64) sales of disposable home medical equipment or supplies if:
1129 (a) a person presents a prescription for the disposable home medical equipment or
1130 supplies;
1131 (b) the disposable home medical equipment or supplies are used exclusively by the
1132 person to whom the prescription described in Subsection (64)(a) is issued; and
1133 (c) the disposable home medical equipment and supplies are listed as eligible for
1134 payment under:
1135 (i) Title XVIII, federal Social Security Act; or
1136 (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
1137 (65) sales:
1138 (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
1139 District Act; or
1140 (b) of tangible personal property to a subcontractor of a public transit district, if the
1141 tangible personal property is:
1142 (i) clearly identified; and
1143 (ii) installed or converted to real property owned by the public transit district;
1144 (66) sales of construction materials:
1145 (a) purchased on or after July 1, 2010;
1146 (b) purchased by, on behalf of, or for the benefit of an international airport:
1147 (i) located within a county of the first class; and
1148 (ii) that has a United States customs office on its premises; and
1149 (c) if the construction materials are:
1150 (i) clearly identified;
1151 (ii) segregated; and
1152 (iii) installed or converted to real property:
1153 (A) owned or operated by the international airport described in Subsection (66)(b); and
1154 (B) located at the international airport described in Subsection (66)(b);
1155 (67) sales of construction materials:
1156 (a) purchased on or after July 1, 2008;
1157 (b) purchased by, on behalf of, or for the benefit of a new airport:
1158 (i) located within a county of the second class; and
1159 (ii) that is owned or operated by a city in which an airline as defined in Section
1160 59-2-102 is headquartered; and
1161 (c) if the construction materials are:
1162 (i) clearly identified;
1163 (ii) segregated; and
1164 (iii) installed or converted to real property:
1165 (A) owned or operated by the new airport described in Subsection (67)(b);
1166 (B) located at the new airport described in Subsection (67)(b); and
1167 (C) as part of the construction of the new airport described in Subsection (67)(b);
1168 (68) except for the tax imposed by Subsection 59-12-103(2)(d), sales of fuel to a
1169 common carrier that is a railroad for use in a locomotive engine;
1170 (69) purchases and sales described in Section 63H-4-111;
1171 (70) (a) sales of tangible personal property to an aircraft maintenance, repair, and
1172 overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
1173 a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
1174 lists a state or country other than this state as the location of registry of the fixed wing turbine
1175 powered aircraft; or
1176 (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
1177 provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
1178 a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
1179 lists a state or country other than this state as the location of registry of the fixed wing turbine
1180 powered aircraft;
1181 (71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
1182 (a) to a person admitted to an institution of higher education; and
1183 (b) by a seller, other than a bookstore owned by an institution of higher education, if
1184 51% or more of that seller's sales revenue for the previous calendar quarter are sales of a
1185 textbook for a higher education course;
1186 (72) a license fee or tax a municipality imposes in accordance with Subsection
1187 10-1-203(5) on a purchaser from a business for which the municipality provides an enhanced
1188 level of municipal services;
1189 (73) amounts paid or charged for construction materials used in the construction of a
1190 new or expanding life science research and development facility in the state, if the construction
1191 materials are:
1192 (a) clearly identified;
1193 (b) segregated; and
1194 (c) installed or converted to real property;
1195 (74) amounts paid or charged for:
1196 (a) a purchase or lease of machinery and equipment that:
1197 (i) are used in performing qualified research:
1198 (A) as defined in Section 41(d), Internal Revenue Code; and
1199 (B) in the state; and
1200 (ii) have an economic life of three or more years; and
1201 (b) normal operating repair or replacement parts:
1202 (i) for the machinery and equipment described in Subsection (74)(a); and
1203 (ii) that have an economic life of three or more years;
1204 (75) a sale or lease of tangible personal property used in the preparation of prepared
1205 food if:
1206 (a) for a sale:
1207 (i) the ownership of the seller and the ownership of the purchaser are identical; and
1208 (ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
1209 tangible personal property prior to making the sale; or
1210 (b) for a lease:
1211 (i) the ownership of the lessor and the ownership of the lessee are identical; and
1212 (ii) the lessor or the lessee paid a tax under this chapter on the purchase of that tangible
1213 personal property prior to making the lease;
1214 (76) (a) purchases of machinery or equipment if:
1215 (i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
1216 Gambling, and Recreation Industries, of the 2012 North American Industry Classification
1217 System of the federal Executive Office of the President, Office of Management and Budget;
1218 (ii) the machinery or equipment:
1219 (A) has an economic life of three or more years; and
1220 (B) is used by one or more persons who pay admission or user fees described in
1221 Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment; and
1222 (iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
1223 (A) amounts paid or charged as admission or user fees described in Subsection
1224 59-12-103(1)(f); and
1225 (B) subject to taxation under this chapter; and
1226 (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1227 commission may make rules for verifying that 51% of a purchaser's sales revenue for the
1228 previous calendar quarter is:
1229 (i) amounts paid or charged as admission or user fees described in Subsection
1230 59-12-103(1)(f); and
1231 (ii) subject to taxation under this chapter;
1232 (77) purchases of a short-term lodging consumable by a business that provides
1233 accommodations and services described in Subsection 59-12-103(1)(i);
1234 (78) amounts paid or charged to access a database:
1235 (a) if the primary purpose for accessing the database is to view or retrieve information
1236 from the database; and
1237 (b) not including amounts paid or charged for a:
1238 (i) digital audio work;
1239 (ii) digital audio-visual work; or
1240 (iii) digital book;
1241 (79) amounts paid or charged for a purchase or lease made by an electronic financial
1242 payment service, of:
1243 (a) machinery and equipment that:
1244 (i) are used in the operation of the electronic financial payment service; and
1245 (ii) have an economic life of three or more years; and
1246 (b) normal operating repair or replacement parts that:
1247 (i) are used in the operation of the electronic financial payment service; and
1248 (ii) have an economic life of three or more years;
1249 (80) sales of a fuel cell as defined in Section 54-15-102;
1250 (81) amounts paid or charged for a purchase or lease of tangible personal property or a
1251 product transferred electronically if the tangible personal property or product transferred
1252 electronically:
1253 (a) is stored, used, or consumed in the state; and
1254 (b) is temporarily brought into the state from another state:
1255 (i) during a disaster period as defined in Section 53-2a-1202;
1256 (ii) by an out-of-state business as defined in Section 53-2a-1202;
1257 (iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
1258 (iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
1259 (82) sales of goods and services at a morale, welfare, and recreation facility, as defined
1260 in Section 39A-7-102, made pursuant to Title 39A, Chapter 7, Morale, Welfare, and Recreation
1261 Program;
1262 (83) amounts paid or charged for a purchase or lease of molten magnesium;
1263 (84) amounts paid or charged for a purchase or lease made by a qualifying data center
1264 or an occupant of a qualifying data center of machinery, equipment, or normal operating repair
1265 or replacement parts, if the machinery, equipment, or normal operating repair or replacement
1266 parts:
1267 (a) are used in:
1268 (i) the operation of the qualifying data center; or
1269 (ii) the occupant's operations in the qualifying data center; and
1270 (b) have an economic life of one or more years;
1271 (85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a
1272 vehicle that includes cleaning or washing of the interior of the vehicle;
1273 (86) amounts paid or charged for a purchase or lease of machinery, equipment, normal
1274 operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or supplies used
1275 or consumed:
1276 (a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
1277 in Section 79-6-701 located in the state;
1278 (b) if the machinery, equipment, normal operating repair or replacement parts,
1279 catalysts, chemicals, reagents, solutions, or supplies are used or consumed in:
1280 (i) the production process to produce gasoline or diesel fuel, or at which blendstock is
1281 added to gasoline or diesel fuel;
1282 (ii) research and development;
1283 (iii) transporting, storing, or managing raw materials, work in process, finished
1284 products, and waste materials produced from refining gasoline or diesel fuel, or adding
1285 blendstock to gasoline or diesel fuel;
1286 (iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
1287 refining; or
1288 (v) preventing, controlling, or reducing pollutants from refining; and
1289 (c) if the person holds a valid refiner tax exemption certification as defined in Section
1290 79-6-701;
1291 (87) amounts paid to or charged by a proprietor for accommodations and services, as
1292 defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations tax
1293 imposed under Section 63H-1-205;
1294 (88) amounts paid or charged for a purchase or lease of machinery, equipment, normal
1295 operating repair or replacement parts, or materials, except for office equipment or office
1296 supplies, by an establishment, as the commission defines that term in accordance with Title
1297 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
1298 (a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
1299 American Industry Classification System of the federal Executive Office of the President,
1300 Office of Management and Budget;
1301 (b) is located in this state; and
1302 (c) uses the machinery, equipment, normal operating repair or replacement parts, or
1303 materials in the operation of the establishment;
1304 (89) amounts paid or charged for an item exempt under Section 59-12-104.10;
1305 (90) sales of a note, leaf, foil, or film, if the item:
1306 (a) is used as currency;
1307 (b) does not constitute legal tender of a state, the United States, or a foreign nation; and
1308 (c) has a gold, silver, or platinum metallic content of 50% or more, exclusive of any
1309 transparent polymer holder, coating, or encasement;
1310 (91) amounts paid or charged for admission to an indoor skydiving, rock climbing, or
1311 surfing facility, if a trained instructor:
1312 (a) is present with the participant, in person or by video, for the duration of the activity;
1313 and
1314 (b) actively instructs the participant, including providing observation or feedback;
1315 (92) amounts paid or charged in connection with the construction, operation,
1316 maintenance, repair, or replacement of facilities owned by or constructed for:
1317 (a) a distribution electrical cooperative, as defined in Section 54-2-1; or
1318 (b) a wholesale electrical cooperative, as defined in Section 54-2-1; and
1319 (93) amounts paid by the service provider for tangible personal property, other than
1320 machinery, equipment, parts, office supplies, electricity, gas, heat, steam, or other fuels, that:
1321 (a) is consumed in the performance of a service that is subject to tax under Subsection
1322 59-12-103(1)(b), (f), (g), (h), (i), or (j);
1323 (b) has to be consumed for the service provider to provide the service described in
1324 Subsection (93)(a); and
1325 (c) will be consumed in the performance of the service described in Subsection (93)(a),
1326 to one or more customers, to the point that the tangible personal property disappears or cannot
1327 be used for any other purpose.
1328 Section 4. Effective date.
1329 This bill takes effect on July 1, 2023.