1     
CAR-SHARING AMENDMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Michael K. McKell

5     
House Sponsor: Robert M. Spendlove

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions relating to motor vehicles shared though a car-sharing
10     business platform.
11     Highlighted Provisions:
12          This bill:
13          ▸     enacts provisions relating to business platforms that connect motor vehicle owners
14     with drivers to enable the sharing of motor vehicles for consideration;
15          ▸     enacts consumer protection provisions relating to a car-sharing program, including:
16               •      required disclosures on a car-sharing agreement;
17               •     driver requirements; and
18               •     records of a car-sharing program;
19          ▸     enacts provisions relating to liability and insurance for claims arising during the
20     period a shared vehicle is used under a car-sharing program;
21          ▸     prohibits certain local taxes, fees, and charges on peer-to-peer car sharing;
22          ▸     amends provisions related to taxes on peer-to-peer car sharing;
23          ▸     clarifies the taxes a marketplace facilitator is required to collect and remit;
24          ▸     defines terms; and
25          ▸     makes technical and conforming changes.
26     Money Appropriated in this Bill:
27          None
28     Other Special Clauses:
29          This bill provides a special effective date.

30          This bill provides retrospective operation.
31     Utah Code Sections Affected:
32     AMENDS:
33          59-12-102, as last amended by Laws of Utah 2021, Chapters 64, 367 and 414 and last
34     amended by Coordination Clause, Laws of Utah 2021, Chapter 367
35          59-12-103, as last amended by Laws of Utah 2022, Chapters 77, 106 and 433
36          59-12-107.6, as enacted by Laws of Utah 2019, Chapter 486
37          59-12-602, as last amended by Laws of Utah 2020, Chapter 407
38          59-12-603, as last amended by Laws of Utah 2020, Chapter 407
39          59-12-1201, as last amended by Laws of Utah 2016, Chapters 184, 291
40     ENACTS:
41          11-26-401, Utah Code Annotated 1953
42          13-48a-101, Utah Code Annotated 1953
43          13-48a-102, Utah Code Annotated 1953
44          13-48a-201, Utah Code Annotated 1953
45          13-48a-202, Utah Code Annotated 1953
46          13-48a-203, Utah Code Annotated 1953
47          13-48a-204, Utah Code Annotated 1953
48          13-48a-205, Utah Code Annotated 1953
49          13-48a-301, Utah Code Annotated 1953
50          13-48a-302, Utah Code Annotated 1953
51          13-48a-303, Utah Code Annotated 1953
52          13-48a-304, Utah Code Annotated 1953
53          13-48a-305, Utah Code Annotated 1953
54          13-48a-306, Utah Code Annotated 1953
55          13-48a-307, Utah Code Annotated 1953
56     

57     Be it enacted by the Legislature of the state of Utah:

58          Section 1. Section 11-26-401 is enacted to read:
59     
CHAPTER 26. LIMITATIONS ON LOCAL TAXES AND FEES

60     
Part 4. Car Sharing Taxes, Fees, and Charges

61          11-26-401. Definitions -- Prohibition on car sharing program taxes, fees, and
62     other charges.
63          (1) As used in this part:
64          (a) "Car sharing" means the same as that term is defined in Section 13-48a-101.
65          (b) "County" means the same as that term is defined in Section 17-50-101.
66          (c) "Municipality" means a city or a town.
67          (d) "Political subdivision" means the same as that term is defined in Section
68     11-14-102.
69          (e) "Rental" means the same as the terms "lease" or "rental" are defined in Section
70     59-12-102.
71          (2) A county, municipality, or other political subdivision may not impose a tax, fee, or
72     charge on the gross proceeds or gross income of a car sharing transaction that the jurisdiction
73     does not impose on other transactions involving the rental of a motor vehicle without a driver.
74          Section 2. Section 13-48a-101 is enacted to read:
75     
CHAPTER 48a. CAR-SHARING PROGRAMS

76     
Part 1. General Provisions

77          13-48a-101. Definitions.
78          As used in this chapter:
79          (1) (a) "Car sharing" means the authorized use of a motor vehicle:
80          (i) by an individual other than the owner of the motor vehicle; and
81          (ii) through a peer-to-peer car-sharing program.
82          (b) "Car sharing" does not mean the business of providing private passenger motor
83     vehicles to the public as used in Section 31A-22-311.
84          (2) (a) "Car-sharing agreement" means an agreement:
85          (i) applicable to a shared vehicle owner and a shared vehicle driver; and

86          (ii) that governs a shared vehicle driver's use of a shared vehicle through a car-sharing
87     program.
88          (b) "Car-sharing agreement" does not mean:
89          (i) a rental agreement, as defined in Section 31A-22-311; or
90          (ii) a short-term rental as that term is defined in Section 59-12-602.
91          (3) "Car-sharing delivery period" means the period of time during which a shared
92     vehicle is being delivered to the location of the car-sharing start time, if applicable, as
93     documented by the governing car-sharing agreement.
94          (4) "Car-sharing period" means the period of time that:
95          (a) (i) begins at the car-sharing delivery period; or
96          (ii) if there is no car-sharing delivery period, begins at the car-sharing start time; and
97          (b) ends at the car-sharing termination time.
98          (5) (a) "Car-sharing program" or "peer-to-peer car-sharing program" means a business
99     platform that connects motor vehicle owners with drivers to enable the sharing of motor
100     vehicles for consideration.
101          (b) "Car-sharing program" does not mean:
102          (i) a motor vehicle rental company, as defined in Section 13-48-102; or
103          (ii) a rental company, as defined in Section 31A-22-311.
104          (6) "Car-sharing start time" means the time when a shared vehicle becomes subject to
105     the control of the shared vehicle driver at or after the time the reservation of the shared vehicle
106     is scheduled to begin, as documented in the records of the car-sharing program.
107          (7) "Car-sharing termination time" means the earliest of the following events:
108          (a) the expiration of the agreed upon period of time established for the use of a shared
109     vehicle according to the terms of the car-sharing agreement, if the shared vehicle is delivered to
110     the location agreed upon in the car-sharing agreement;
111          (b) when the shared vehicle is returned to a location as alternatively agreed upon by the
112     shared vehicle owner and shared vehicle driver as communicated through a car-sharing
113     program, which alternatively agreed upon location shall be incorporated into the car-sharing

114     agreement; and
115          (c) when the shared vehicle owner or shared vehicle owner's authorized designee takes
116     possession and control of the shared vehicle.
117          (8) "Individual-owned shared vehicle" means:
118          (a) for a motor vehicle purchased in the state, a shared vehicle for which applicable
119     sales tax and use tax was paid on the purchase; or
120          (b) for a motor vehicle not purchased in the state, a shared vehicle for which:
121          (i) an applicable use tax was paid to this state on the purchase; or
122          (ii) sales tax or use tax was paid on the purchase in the jurisdiction in which the motor
123     vehicle was purchased.
124          (9) "Motor vehicle" means the same as that term is defined in Section 41-1a-102.
125          (10) "Shared vehicle" means a motor vehicle that is available for use by an individual
126     other than the shared vehicle owner through a car-sharing program.
127          (11) (a) "Shared vehicle driver" means an individual who has been authorized to drive
128     a shared vehicle by the shared vehicle owner under a car-sharing program.
129          (b) "Shared vehicle driver" does not mean a renter, as defined in Section 31A-22-311.
130          (12) (a) "Shared vehicle owner" means:
131          (i) the registered owner of a motor vehicle made available for car sharing; or
132          (ii) a person designated by the registered owner of a motor vehicle made available for
133     car sharing.
134          (b) "Shared vehicle owner" does not mean a rental company, as defined in Section
135     31A-22-311.
136          Section 3. Section 13-48a-102 is enacted to read:
137          13-48a-102. Limits on reach of chapter.
138          Nothing in this chapter:
139          (1) limits the liability of a car-sharing program for an act or omission of the car-sharing
140     program that results in injury to a person as a result of the use of a shared vehicle through a
141     car-sharing program; or

142          (2) limits the ability of the car-sharing program, by contract, to seek indemnification
143     from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the
144     car-sharing program resulting from a breach of the terms and conditions of the car-sharing
145     agreement.
146          Section 4. Section 13-48a-201 is enacted to read:
147     
Part 2. Consumer Protection Provisions

148          13-48a-201. Notification about possible violation of lienholder agreement.
149          (1) As used in this section, "lienholder agreement" means an agreement between the
150     owner of a motor vehicle and another person under which the other person has a lien against
151     the motor vehicle.
152          (2) At the time that the owner of a motor vehicle registers to make the owner's motor
153     vehicle available for sharing through a car-sharing program, the car-sharing program shall
154     notify the owner that the use of the owner's motor vehicle through the car-sharing program,
155     including without physical damage coverage, may violate the terms of a lienholder agreement
156     that the motor vehicle may be subject to.
157          Section 5. Section 13-48a-202 is enacted to read:
158          13-48a-202. Safety recalls.
159          (1) At the time that the owner of a motor vehicle registers to make the owner's motor
160     vehicle available for sharing through a car-sharing program, the car-sharing program shall:
161          (a) verify that the shared vehicle does not have any safety recalls for which the repairs
162     have not been made; and
163          (b) notify the motor vehicle owner of the requirements under Subsections (2), (3), and
164     (4).
165          (2) An owner of a motor vehicle may not register to make the owner's motor vehicle
166     available for sharing through a car-sharing program if:
167          (a) the owner has received an actual notice of a safety recall applicable to the motor
168     vehicle; and
169          (b) the safety recall repair has not been made.

170          (3) A shared vehicle owner who receives an actual notice of a safety recall applicable
171     to the shared vehicle during the time that the shared vehicle is made available for sharing
172     through a car-sharing program shall, as soon as practicably possible after receiving the notice,
173     remove the shared vehicle from availability for sharing through the car-sharing program until
174     the safety recall repair is made.
175          (4) A shared vehicle owner who receives an actual notice of a safety recall applicable
176     to the shared vehicle during the time that the shared vehicle is in the possession of a shared
177     vehicle driver under a car-sharing agreement shall, as soon as practicably possible after
178     receiving the notice, notify the car-sharing program about the safety recall so that the shared
179     vehicle owner may address the safety recall repair.
180          Section 6. Section 13-48a-203 is enacted to read:
181          13-48a-203. Required disclosures for a car-sharing agreement.
182          A car-sharing agreement shall disclose to the shared vehicle owner and the shared
183     vehicle driver:
184          (1) a right of the car-sharing company to seek indemnification from the shared vehicle
185     owner or shared vehicle driver for economic loss resulting from a breach of the car-sharing
186     agreement;
187          (2) that a motor vehicle liability insurance policy issued to the shared vehicle owner or
188     shared vehicle driver does not provide a defense or indemnification for any claim asserted by
189     the car-sharing company;
190          (3) that the car-sharing program's insurance policy covering the shared vehicle owner
191     and the shared vehicle driver is in effect only during the car-sharing period and that, for any use
192     of the shared vehicle by the shared vehicle driver after the car-sharing termination time, the
193     shared vehicle driver and the shared vehicle owner may not have insurance coverage;
194          (4) of the daily rate, fees, and, if applicable, insurance or protection package costs that
195     are charged to the shared vehicle owner or shared vehicle driver;
196          (5) that the shared vehicle owner's motor vehicle liability insurance policy may not
197     provide coverage for the shared vehicle;

198          (6) of an emergency telephone number to contact personnel capable of fielding
199     roadside assistance or other customer service inquiries; and
200          (7) whether there are conditions under which a shared vehicle driver must maintain a
201     personal automobile insurance policy with certain applicable coverage limits on a primary basis
202     in order to book a shared vehicle.
203          Section 7. Section 13-48a-204 is enacted to read:
204          13-48a-204. Records relating to the use of shared vehicles.
205          (1) A car-sharing program shall collect and verify records pertaining to the use of a
206     shared vehicle, including times used, car-sharing period pick up and drop off locations, fees
207     paid by the shared vehicle driver, and revenues received by the shared vehicle owner, and
208     provide that information upon request to the shared vehicle owner, the shared vehicle owner's
209     insurer, or the shared vehicle driver's insurer to facilitate a claim coverage investigation,
210     settlement, negotiation, or litigation.
211          (2) The car-sharing program shall retain the records for a time period not less than two
212     years.
213          Section 8. Section 13-48a-205 is enacted to read:
214          13-48a-205. GPS or other special equipment.
215          (1) A car-sharing program:
216          (a) has sole responsibility for any GPS or other special equipment that the car-sharing
217     company places on or in a shared vehicle to monitor the shared vehicle or facilitate the
218     car-sharing agreement; and
219          (b) shall agree to indemnify and hold harmless the shared vehicle owner for any
220     damage to the shared vehicle that:
221          (i) is a result of damage to or theft of equipment described in Subsection (1)(a);
222          (ii) occurs during the car-sharing period; and
223          (iii) is not caused by the shared vehicle owner.
224          (2) A car-sharing program may seek indemnity from a shared vehicle driver for any
225     loss of or damage to equipment described in Subsection (1)(a) that occurs during the

226     car-sharing period.
227          Section 9. Section 13-48a-301 is enacted to read:
228     
Part 3. Liability and Insurance for Covered Loss from Operation of Shared Vehicle

229          13-48a-301. Car-sharing company assumption of liability for a covered loss --
230     Exception.
231          (1) Except as provided in Subsection (2), a car-sharing program shall assume liability
232     of a shared vehicle owner for bodily injury or property damage to third parties or personal
233     injury protection losses during the car-sharing period in an amount stated in the car-sharing
234     agreement, which amount may not be less than those set forth in Section 31A-22-304.
235          (2) Notwithstanding the definition of car-sharing termination time, the assumption of
236     liability under Subsection (1) does not apply to a shared vehicle owner when:
237          (a) a shared vehicle owner makes an intentional or fraudulent material
238     misrepresentation or omission to the car-sharing program before the car-sharing period in
239     which the loss occurred; or
240          (b) acting in concert with a shared vehicle driver who fails to return the shared vehicle
241     pursuant to the terms of the car-sharing agreement.
242          (3) Notwithstanding the definition of car-sharing termination time, the assumption of
243     liability under Subsection (1) would apply to bodily injury, property damage, or personal injury
244     protection losses by damaged third parties required by Section 31A-22-304.
245          Section 10. Section 13-48a-302 is enacted to read:
246          13-48a-302. Motor vehicle liability insurance.
247          (1) A car-sharing program shall ensure that, during each car-sharing period, the shared
248     vehicle owner and the shared vehicle driver are insured under a motor vehicle liability
249     insurance policy that provides coverage in amounts no less than the minimum amounts set
250     forth in Section 31A-22-304, and:
251          (a) recognizes that the shared vehicle insured under the policy is made available and
252     used through a car-sharing program; or
253          (b) does not exclude use of a shared vehicle by a shared vehicle driver.

254          (2) The insurance described in Subsection (1) may be satisfied by motor vehicle
255     liability insurance maintained by:
256          (a) a shared vehicle owner;
257          (b) a shared vehicle driver;
258          (c) a car-sharing program; or
259          (d) a shared vehicle owner, a shared vehicle driver, and a car-sharing program.
260          (3) The insurance described in Subsection (1) that is satisfying the insurance
261     requirement of Subsection (1) shall be primary during each car-sharing period and in the event
262     that a claim occurs in another state with minimum financial responsibility limits higher than
263     those in Section 31A-22-304, during the car-sharing period, the coverage maintained under
264     Subsection (2) shall satisfy the difference in minimum coverage amounts, up to the applicable
265     policy limits.
266          (4) The insurer, insurers, or car-sharing program providing coverage under Subsection
267     (1) or (2) shall assume primary liability for a claim when:
268          (a) a dispute exists as to who was in control of the shared motor vehicle at the time of
269     the loss and the car-sharing program does not have available, did not retain, or fails to provide
270     the information required by Section 13-48a-203; or
271          (b) a dispute exists as to whether the shared vehicle was returned to the alternatively
272     agreed upon location as required under Section 13-48a-101.
273          (5) If insurance maintained by a shared vehicle owner or shared vehicle driver in
274     accordance with Subsection (2) has lapsed or does not provide the required coverage, insurance
275     maintained by the car-sharing program shall provide the coverage required by Subsection (1)
276     beginning with the first dollar of a claim and have the duty to defend the claim except under
277     circumstances set forth in Subsection 13-48a-301(2).
278          (6) Coverage under an automobile insurance policy maintained by the car-sharing
279     program is not dependent on another automobile insurer first denying a claim, nor shall another
280     automobile insurance policy be required to first deny a claim.
281          Section 11. Section 13-48a-303 is enacted to read:

282          13-48a-303. Certain abilities of insurance companies preserved.
283          (1) (a) A motor vehicle liability insurance policy may exclude coverage and a duty to
284     defend or indemnify with respect to a claim arising during a motor vehicle's use as a shared
285     vehicle, based on the motor vehicle's use as a shared vehicle.
286          (b) Coverage that may be excluded as provided in Subsection (1) includes coverage
287     for:
288          (i) bodily injury or property damage suffered by a third party;
289          (ii) a claim covered by uninsured motorist coverage described in Section 31A-22-305;
290          (iii) a claim covered by underinsured motorist coverage described in Section
291     31A-22-305.5;
292          (iv) a claim covered by personal injury protection coverage and benefits described in
293     Section 31A-22-307;
294          (v) a claim for medical payments;
295          (vi) a claim for comprehensive physical damage; and
296          (vii) a claim for collision physical damage.
297          (2) Nothing in this chapter invalidates, limits, or restricts the ability of an insurance
298     company under other applicable law to:
299          (a) underwrite an insurance policy; or
300          (b) cancel or fail to renew an insurance policy.
301          (3) Nothing in this chapter invalidates or limits a provision in a motor vehicle liability
302     insurance policy, including any insurance policy in use or approved for use, that excludes
303     coverage for a motor vehicle made available for rent, sharing, hire, or any business use.
304          Section 12. Section 13-48a-304 is enacted to read:
305          13-48a-304. Insurable interest -- Insurance to cover various liabilities -- No
306     liability to maintain certain insurance.
307          (1) Notwithstanding any other provision of law, a car-sharing program has an insurable
308     interest in a shared vehicle during the car-sharing period.
309          (2) A car-sharing program may own and maintain as the named insured one or more

310     policies of motor vehicle insurance that provide coverage for:
311          (a) a liability assumed by the car-sharing program under a car-sharing agreement;
312          (b) a liability of the shared vehicle owner;
313          (c) a liability of the shared vehicle driver; or
314          (d) damage or loss to a shared vehicle.
315          (3) Nothing in this section requires a car-sharing program to maintain insurance
316     coverage for the car-sharing program's liability under this chapter.
317          Section 13. Section 13-48a-305 is enacted to read:
318          13-48a-305. Recovery for claim excluded from insurance policy.
319          An insurance company that defends or indemnifies a claim against a shared vehicle that
320     is excluded under the terms of the insurance company's policy shall have the right to seek
321     recovery against the motor vehicle insurer of the car-sharing program if the claim is:
322          (1) made against the shared vehicle owner or shared vehicle driver for a loss or injury
323     that occurs during the car-sharing period; and
324          (2) excluded under the terms of the policy of the insurance company that defends or
325     indemnifies the claim.
326          Section 14. Section 13-48a-306 is enacted to read:
327          13-48a-306. Exemption from liability based on operation of a car-sharing
328     program or on vehicle ownership.
329          Consistent with 49 U.S.C. Sec. 30106, a car-sharing program and a shared vehicle
330     owner are exempt from vicarious liability under any state or local law that imposes liability
331     solely based on vehicle ownership.
332          Section 15. Section 13-48a-307 is enacted to read:
333          13-48a-307. Driver license requirement and records.
334          (1) A car-sharing program may not enter into a car-sharing agreement with a driver
335     unless the driver who will operate the shared vehicle:
336          (a) holds a driver license issued under the applicable law of this state that authorizes
337     the driver to operate vehicles of the class of the shared vehicle;

338          (b) is a nonresident who:
339          (i) has a driver license issued by the state or country of the driver's residence that
340     authorizes the driver in that state or country to drive vehicles of the class of the shared vehicle;
341     and
342          (ii) is at least the same age as that required of a resident to drive; or
343          (c) otherwise is specifically authorized to drive vehicles of the class of the shared
344     vehicle.
345          (2) A car-sharing program shall keep a record of:
346          (a) the name and address of the shared vehicle driver;
347          (b) the number of the driver license of the shared vehicle driver and each other person,
348     if any, who will operate the shared vehicle; and
349          (c) the place of issuance of the driver license.
350          Section 16. Section 59-12-102 is amended to read:
351          59-12-102. Definitions.
352          As used in this chapter:
353          (1) "800 service" means a telecommunications service that:
354          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
355          (b) is typically marketed:
356          (i) under the name 800 toll-free calling;
357          (ii) under the name 855 toll-free calling;
358          (iii) under the name 866 toll-free calling;
359          (iv) under the name 877 toll-free calling;
360          (v) under the name 888 toll-free calling; or
361          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
362     Federal Communications Commission.
363          (2) (a) "900 service" means an inbound toll telecommunications service that:
364          (i) a subscriber purchases;
365          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to

366     the subscriber's:
367          (A) prerecorded announcement; or
368          (B) live service; and
369          (iii) is typically marketed:
370          (A) under the name 900 service; or
371          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
372     Communications Commission.
373          (b) "900 service" does not include a charge for:
374          (i) a collection service a seller of a telecommunications service provides to a
375     subscriber; or
376          (ii) the following a subscriber sells to the subscriber's customer:
377          (A) a product; or
378          (B) a service.
379          (3) (a) "Admission or user fees" includes season passes.
380          (b) "Admission or user fees" does not include:
381          (i) annual membership dues to private organizations; or
382          (ii) a lesson, including a lesson that involves as part of the lesson equipment or a
383     facility listed in Subsection 59-12-103(1)(f).
384          (4) "Affiliate" or "affiliated person" means a person that, with respect to another
385     person:
386          (a) has an ownership interest of more than 5%, whether direct or indirect, in that other
387     person; or
388          (b) is related to the other person because a third person, or a group of third persons who
389     are affiliated persons with respect to each other, holds an ownership interest of more than 5%,
390     whether direct or indirect, in the related persons.
391          (5) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
392     November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
393     Agreement after November 12, 2002.

394          (6) "Agreement combined tax rate" means the sum of the tax rates:
395          (a) listed under Subsection (7); and
396          (b) that are imposed within a local taxing jurisdiction.
397          (7) "Agreement sales and use tax" means a tax imposed under:
398          (a) Subsection 59-12-103(2)(a)(i)(A);
399          (b) Subsection 59-12-103(2)(b)(i);
400          (c) Subsection 59-12-103(2)(c)(i);
401          (d) Subsection 59-12-103(2)(d);
402          (e) Subsection 59-12-103(2)(e)(i)(A)(I);
403          (f) Section 59-12-204;
404          (g) Section 59-12-401;
405          (h) Section 59-12-402;
406          (i) Section 59-12-402.1;
407          (j) Section 59-12-703;
408          (k) Section 59-12-802;
409          (l) Section 59-12-804;
410          (m) Section 59-12-1102;
411          (n) Section 59-12-1302;
412          (o) Section 59-12-1402;
413          (p) Section 59-12-1802;
414          (q) Section 59-12-2003;
415          (r) Section 59-12-2103;
416          (s) Section 59-12-2213;
417          (t) Section 59-12-2214;
418          (u) Section 59-12-2215;
419          (v) Section 59-12-2216;
420          (w) Section 59-12-2217;
421          (x) Section 59-12-2218;

422          (y) Section 59-12-2219; or
423          (z) Section 59-12-2220.
424          (8) "Aircraft" means the same as that term is defined in Section 72-10-102.
425          (9) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
426          (a) except for:
427          (i) an airline as defined in Section 59-2-102; or
428          (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
429     includes a corporation that is qualified to do business but is not otherwise doing business in the
430     state, of an airline; and
431          (b) that has the workers, expertise, and facilities to perform the following, regardless of
432     whether the business entity performs the following in this state:
433          (i) check, diagnose, overhaul, and repair:
434          (A) an onboard system of a fixed wing turbine powered aircraft; and
435          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
436          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
437     engine;
438          (iii) perform at least the following maintenance on a fixed wing turbine powered
439     aircraft:
440          (A) an inspection;
441          (B) a repair, including a structural repair or modification;
442          (C) changing landing gear; and
443          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
444          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
445     completely apply new paint to the fixed wing turbine powered aircraft; and
446          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
447     results in a change in the fixed wing turbine powered aircraft's certification requirements by the
448     authority that certifies the fixed wing turbine powered aircraft.
449          (10) "Alcoholic beverage" means a beverage that:

450          (a) is suitable for human consumption; and
451          (b) contains .5% or more alcohol by volume.
452          (11) "Alternative energy" means:
453          (a) biomass energy;
454          (b) geothermal energy;
455          (c) hydroelectric energy;
456          (d) solar energy;
457          (e) wind energy; or
458          (f) energy that is derived from:
459          (i) coal-to-liquids;
460          (ii) nuclear fuel;
461          (iii) oil-impregnated diatomaceous earth;
462          (iv) oil sands;
463          (v) oil shale;
464          (vi) petroleum coke; or
465          (vii) waste heat from:
466          (A) an industrial facility; or
467          (B) a power station in which an electric generator is driven through a process in which
468     water is heated, turns into steam, and spins a steam turbine.
469          (12) (a) Subject to Subsection (12)(b), "alternative energy electricity production
470     facility" means a facility that:
471          (i) uses alternative energy to produce electricity; and
472          (ii) has a production capacity of two megawatts or greater.
473          (b) A facility is an alternative energy electricity production facility regardless of
474     whether the facility is:
475          (i) connected to an electric grid; or
476          (ii) located on the premises of an electricity consumer.
477          (13) (a) "Ancillary service" means a service associated with, or incidental to, the

478     provision of telecommunications service.
479          (b) "Ancillary service" includes:
480          (i) a conference bridging service;
481          (ii) a detailed communications billing service;
482          (iii) directory assistance;
483          (iv) a vertical service; or
484          (v) a voice mail service.
485          (14) "Area agency on aging" means the same as that term is defined in Section
486     62A-3-101.
487          (15) "Assisted amusement device" means an amusement device, skill device, or ride
488     device that is started and stopped by an individual:
489          (a) who is not the purchaser or renter of the right to use or operate the amusement
490     device, skill device, or ride device; and
491          (b) at the direction of the seller of the right to use the amusement device, skill device,
492     or ride device.
493          (16) "Assisted cleaning or washing of tangible personal property" means cleaning or
494     washing of tangible personal property if the cleaning or washing labor is primarily performed
495     by an individual:
496          (a) who is not the purchaser of the cleaning or washing of the tangible personal
497     property; and
498          (b) at the direction of the seller of the cleaning or washing of the tangible personal
499     property.
500          (17) "Authorized carrier" means:
501          (a) in the case of vehicles operated over public highways, the holder of credentials
502     indicating that the vehicle is or will be operated pursuant to both the International Registration
503     Plan and the International Fuel Tax Agreement;
504          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
505     certificate or air carrier's operating certificate; or

506          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
507     stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
508     stock in more than one state.
509          (18) (a) Except as provided in Subsection (18)(b), "biomass energy" means any of the
510     following that is used as the primary source of energy to produce fuel or electricity:
511          (i) material from a plant or tree; or
512          (ii) other organic matter that is available on a renewable basis, including:
513          (A) slash and brush from forests and woodlands;
514          (B) animal waste;
515          (C) waste vegetable oil;
516          (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
517     wastewater residuals, or through the conversion of a waste material through a nonincineration,
518     thermal conversion process;
519          (E) aquatic plants; and
520          (F) agricultural products.
521          (b) "Biomass energy" does not include:
522          (i) black liquor; or
523          (ii) treated woods.
524          (19) (a) "Bundled transaction" means the sale of two or more items of tangible personal
525     property, products, or services if the tangible personal property, products, or services are:
526          (i) distinct and identifiable; and
527          (ii) sold for one nonitemized price.
528          (b) "Bundled transaction" does not include:
529          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
530     the basis of the selection by the purchaser of the items of tangible personal property included in
531     the transaction;
532          (ii) the sale of real property;
533          (iii) the sale of services to real property;

534          (iv) the retail sale of tangible personal property and a service if:
535          (A) the tangible personal property:
536          (I) is essential to the use of the service; and
537          (II) is provided exclusively in connection with the service; and
538          (B) the service is the true object of the transaction;
539          (v) the retail sale of two services if:
540          (A) one service is provided that is essential to the use or receipt of a second service;
541          (B) the first service is provided exclusively in connection with the second service; and
542          (C) the second service is the true object of the transaction;
543          (vi) a transaction that includes tangible personal property or a product subject to
544     taxation under this chapter and tangible personal property or a product that is not subject to
545     taxation under this chapter if the:
546          (A) seller's purchase price of the tangible personal property or product subject to
547     taxation under this chapter is de minimis; or
548          (B) seller's sales price of the tangible personal property or product subject to taxation
549     under this chapter is de minimis; and
550          (vii) the retail sale of tangible personal property that is not subject to taxation under
551     this chapter and tangible personal property that is subject to taxation under this chapter if:
552          (A) that retail sale includes:
553          (I) food and food ingredients;
554          (II) a drug;
555          (III) durable medical equipment;
556          (IV) mobility enhancing equipment;
557          (V) an over-the-counter drug;
558          (VI) a prosthetic device; or
559          (VII) a medical supply; and
560          (B) subject to Subsection (19)(f):
561          (I) the seller's purchase price of the tangible personal property subject to taxation under

562     this chapter is 50% or less of the seller's total purchase price of that retail sale; or
563          (II) the seller's sales price of the tangible personal property subject to taxation under
564     this chapter is 50% or less of the seller's total sales price of that retail sale.
565          (c) (i) For purposes of Subsection (19)(a)(i), tangible personal property, a product, or a
566     service that is distinct and identifiable does not include:
567          (A) packaging that:
568          (I) accompanies the sale of the tangible personal property, product, or service; and
569          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
570     service;
571          (B) tangible personal property, a product, or a service provided free of charge with the
572     purchase of another item of tangible personal property, a product, or a service; or
573          (C) an item of tangible personal property, a product, or a service included in the
574     definition of "purchase price."
575          (ii) For purposes of Subsection (19)(c)(i)(B), an item of tangible personal property, a
576     product, or a service is provided free of charge with the purchase of another item of tangible
577     personal property, a product, or a service if the sales price of the purchased item of tangible
578     personal property, product, or service does not vary depending on the inclusion of the tangible
579     personal property, product, or service provided free of charge.
580          (d) (i) For purposes of Subsection (19)(a)(ii), property sold for one nonitemized price
581     does not include a price that is separately identified by tangible personal property, product, or
582     service on the following, regardless of whether the following is in paper format or electronic
583     format:
584          (A) a binding sales document; or
585          (B) another supporting sales-related document that is available to a purchaser.
586          (ii) For purposes of Subsection (19)(d)(i), a binding sales document or another
587     supporting sales-related document that is available to a purchaser includes:
588          (A) a bill of sale;
589          (B) a contract;

590          (C) an invoice;
591          (D) a lease agreement;
592          (E) a periodic notice of rates and services;
593          (F) a price list;
594          (G) a rate card;
595          (H) a receipt; or
596          (I) a service agreement.
597          (e) (i) For purposes of Subsection (19)(b)(vi), the sales price of tangible personal
598     property or a product subject to taxation under this chapter is de minimis if:
599          (A) the seller's purchase price of the tangible personal property or product is 10% or
600     less of the seller's total purchase price of the bundled transaction; or
601          (B) the seller's sales price of the tangible personal property or product is 10% or less of
602     the seller's total sales price of the bundled transaction.
603          (ii) For purposes of Subsection (19)(b)(vi), a seller:
604          (A) shall use the seller's purchase price or the seller's sales price to determine if the
605     purchase price or sales price of the tangible personal property or product subject to taxation
606     under this chapter is de minimis; and
607          (B) may not use a combination of the seller's purchase price and the seller's sales price
608     to determine if the purchase price or sales price of the tangible personal property or product
609     subject to taxation under this chapter is de minimis.
610          (iii) For purposes of Subsection (19)(b)(vi), a seller shall use the full term of a service
611     contract to determine if the sales price of tangible personal property or a product is de minimis.
612          (f) For purposes of Subsection (19)(b)(vii)(B), a seller may not use a combination of
613     the seller's purchase price and the seller's sales price to determine if tangible personal property
614     subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
615     price of that retail sale.
616          (20) "Car sharing" means the same as that term is defined in Section 13-48a-101.
617          (21) "Car-sharing program" means the same as that term is defined in Section

618     13-48a-101.
619          [(20)] (22) "Certified automated system" means software certified by the governing
620     board of the agreement that:
621          (a) calculates the agreement sales and use tax imposed within a local taxing
622     jurisdiction:
623          (i) on a transaction; and
624          (ii) in the states that are members of the agreement;
625          (b) determines the amount of agreement sales and use tax to remit to a state that is a
626     member of the agreement; and
627          (c) maintains a record of the transaction described in Subsection [(20)(a)(i)] (22)(a)(i).
628          [(21)] (23) "Certified service provider" means an agent certified:
629          (a) by the governing board of the agreement; and
630          (b) to perform a seller's sales and use tax functions for an agreement sales and use tax,
631     as outlined in the contract between the governing board of the agreement and the certified
632     service provider, other than the seller's obligation under Section 59-12-124 to remit a tax on the
633     seller's own purchases.
634          [(22)] (24) (a) Subject to Subsection [(22)(b)] (24)(b), "clothing" means all human
635     wearing apparel suitable for general use.
636          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
637     commission shall make rules:
638          (i) listing the items that constitute "clothing"; and
639          (ii) that are consistent with the list of items that constitute "clothing" under the
640     agreement.
641          [(23)] (25) "Coal-to-liquid" means the process of converting coal into a liquid synthetic
642     fuel.
643          [(24)] (26) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or
644     other fuels that does not constitute industrial use under Subsection [(57)] (60) or residential use
645     under Subsection [(112)] (115).

646          [(25)] (27) (a) "Common carrier" means a person engaged in or transacting the
647     business of transporting passengers, freight, merchandise, or other property for hire within this
648     state.
649          (b) (i) "Common carrier" does not include a person that, at the time the person is
650     traveling to or from that person's place of employment, transports a passenger to or from the
651     passenger's place of employment.
652          (ii) For purposes of Subsection [(25)(b)(i)] (27)(b)(i), in accordance with Title 63G,
653     Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules defining
654     what constitutes a person's place of employment.
655          (c) "Common carrier" does not include a person that provides transportation network
656     services, as defined in Section 13-51-102.
657          [(26)] (28) "Component part" includes:
658          (a) poultry, dairy, and other livestock feed, and their components;
659          (b) baling ties and twine used in the baling of hay and straw;
660          (c) fuel used for providing temperature control of orchards and commercial
661     greenhouses doing a majority of their business in wholesale sales, and for providing power for
662     off-highway type farm machinery; and
663          (d) feed, seeds, and seedlings.
664          [(27)] (29) "Computer" means an electronic device that accepts information:
665          (a) (i) in digital form; or
666          (ii) in a form similar to digital form; and
667          (b) manipulates that information for a result based on a sequence of instructions.
668          [(28)] (30) "Computer software" means a set of coded instructions designed to cause:
669          (a) a computer to perform a task; or
670          (b) automatic data processing equipment to perform a task.
671          [(29)] (31) "Computer software maintenance contract" means a contract that obligates a
672     seller of computer software to provide a customer with:
673          (a) future updates or upgrades to computer software;

674          (b) support services with respect to computer software; or
675          (c) a combination of Subsections [(29)(a)] (31)(a) and (b).
676          [(30)] (32) (a) "Conference bridging service" means an ancillary service that links two
677     or more participants of an audio conference call or video conference call.
678          (b) "Conference bridging service" may include providing a telephone number as part of
679     the ancillary service described in Subsection [(30)(a)] (32)(a).
680          (c) "Conference bridging service" does not include a telecommunications service used
681     to reach the ancillary service described in Subsection [(30)(a)] (32)(a).
682          [(31)] (33) "Construction materials" means any tangible personal property that will be
683     converted into real property.
684          [(32)] (34) "Delivered electronically" means delivered to a purchaser by means other
685     than tangible storage media.
686          [(33)] (35) (a) "Delivery charge" means a charge:
687          (i) by a seller of:
688          (A) tangible personal property;
689          (B) a product transferred electronically; or
690          (C) a service; and
691          (ii) for preparation and delivery of the tangible personal property, product transferred
692     electronically, or services described in Subsection [(33)(a)(i)] (35)(a)(i) to a location designated
693     by the purchaser.
694          (b) "Delivery charge" includes a charge for the following:
695          (i) transportation;
696          (ii) shipping;
697          (iii) postage;
698          (iv) handling;
699          (v) crating; or
700          (vi) packing.
701          [(34)] (36) "Detailed telecommunications billing service" means an ancillary service of

702     separately stating information pertaining to individual calls on a customer's billing statement.
703          [(35)] (37) "Dietary supplement" means a product, other than tobacco, that:
704          (a) is intended to supplement the diet;
705          (b) contains one or more of the following dietary ingredients:
706          (i) a vitamin;
707          (ii) a mineral;
708          (iii) an herb or other botanical;
709          (iv) an amino acid;
710          (v) a dietary substance for use by humans to supplement the diet by increasing the total
711     dietary intake; or
712          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
713     described in Subsections [(35)(b)(i)] (37)(b)(i) through (v);
714          (c) (i) except as provided in Subsection [(35)(c)(ii)] (37)(c)(ii), is intended for
715     ingestion in:
716          (A) tablet form;
717          (B) capsule form;
718          (C) powder form;
719          (D) softgel form;
720          (E) gelcap form; or
721          (F) liquid form; or
722          (ii) if the product is not intended for ingestion in a form described in Subsections
723     [(35)(c)(i)(A)] (37)(c)(i)(A) through (F), is not represented:
724          (A) as conventional food; and
725          (B) for use as a sole item of:
726          (I) a meal; or
727          (II) the diet; and
728          (d) is required to be labeled as a dietary supplement:
729          (i) identifiable by the "Supplemental Facts" box found on the label; and

730          (ii) as required by 21 C.F.R. Sec. 101.36.
731          [(36)] (38) (a) "Digital audio work" means a work that results from the fixation of a
732     series of musical, spoken, or other sounds.
733          (b) "Digital audio work" includes a ringtone.
734          [(37)] (39) "Digital audio-visual work" means a series of related images which, when
735     shown in succession, imparts an impression of motion, together with accompanying sounds, if
736     any.
737          [(38)] (40) "Digital book" means a work that is generally recognized in the ordinary
738     and usual sense as a book.
739          [(39)] (41) (a) "Direct mail" means printed material delivered or distributed by United
740     States mail or other delivery service:
741          (i) to:
742          (A) a mass audience; or
743          (B) addressees on a mailing list provided:
744          (I) by a purchaser of the mailing list; or
745          (II) at the discretion of the purchaser of the mailing list; and
746          (ii) if the cost of the printed material is not billed directly to the recipients.
747          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
748     purchaser to a seller of direct mail for inclusion in a package containing the printed material.
749          (c) "Direct mail" does not include multiple items of printed material delivered to a
750     single address.
751          [(40)] (42) "Directory assistance" means an ancillary service of providing:
752          (a) address information; or
753          (b) telephone number information.
754          [(41)] (43) (a) "Disposable home medical equipment or supplies" means medical
755     equipment or supplies that:
756          (i) cannot withstand repeated use; and
757          (ii) are purchased by, for, or on behalf of a person other than:

758          (A) a health care facility as defined in Section 26-21-2;
759          (B) a health care provider as defined in Section 78B-3-403;
760          (C) an office of a health care provider described in Subsection [(41)(a)(ii)(B)]
761     (43)(a)(ii)(B); or
762          (D) a person similar to a person described in Subsections [(41)(a)(ii)(A)] (43)(a)(ii)(A)
763     through (C).
764          (b) "Disposable home medical equipment or supplies" does not include:
765          (i) a drug;
766          (ii) durable medical equipment;
767          (iii) a hearing aid;
768          (iv) a hearing aid accessory;
769          (v) mobility enhancing equipment; or
770          (vi) tangible personal property used to correct impaired vision, including:
771          (A) eyeglasses; or
772          (B) contact lenses.
773          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
774     commission may by rule define what constitutes medical equipment or supplies.
775          [(42)] (44) "Drilling equipment manufacturer" means a facility:
776          (a) located in the state;
777          (b) with respect to which 51% or more of the manufacturing activities of the facility
778     consist of manufacturing component parts of drilling equipment;
779          (c) that uses pressure of 800,000 or more pounds per square inch as part of the
780     manufacturing process; and
781          (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
782     manufacturing process.
783          [(43)] (45) (a) "Drug" means a compound, substance, or preparation, or a component of
784     a compound, substance, or preparation that is:
785          (i) recognized in:

786          (A) the official United States Pharmacopoeia;
787          (B) the official Homeopathic Pharmacopoeia of the United States;
788          (C) the official National Formulary; or
789          (D) a supplement to a publication listed in Subsections [(43)(a)(i)(A)] (45)(a)(i)(A)
790     through (C);
791          (ii) intended for use in the:
792          (A) diagnosis of disease;
793          (B) cure of disease;
794          (C) mitigation of disease;
795          (D) treatment of disease; or
796          (E) prevention of disease; or
797          (iii) intended to affect:
798          (A) the structure of the body; or
799          (B) any function of the body.
800          (b) "Drug" does not include:
801          (i) food and food ingredients;
802          (ii) a dietary supplement;
803          (iii) an alcoholic beverage; or
804          (iv) a prosthetic device.
805          [(44)] (46) (a) Except as provided in Subsection [(44)(c)] (46)(c), "durable medical
806     equipment" means equipment that:
807          (i) can withstand repeated use;
808          (ii) is primarily and customarily used to serve a medical purpose;
809          (iii) generally is not useful to a person in the absence of illness or injury; and
810          (iv) is not worn in or on the body.
811          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
812     equipment described in Subsection [(44)(a)] (46)(a).
813          (c) "Durable medical equipment" does not include mobility enhancing equipment.

814          [(45)] (47) "Electronic" means:
815          (a) relating to technology; and
816          (b) having:
817          (i) electrical capabilities;
818          (ii) digital capabilities;
819          (iii) magnetic capabilities;
820          (iv) wireless capabilities;
821          (v) optical capabilities;
822          (vi) electromagnetic capabilities; or
823          (vii) capabilities similar to Subsections [(45)(b)(i)] (47)(b)(i) through (vi).
824          [(46)] (48) "Electronic financial payment service" means an establishment:
825          (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
826     Clearinghouse Activities, of the 2012 North American Industry Classification System of the
827     federal Executive Office of the President, Office of Management and Budget; and
828          (b) that performs electronic financial payment services.
829          [(47)] (49) "Employee" means the same as that term is defined in Section 59-10-401.
830          [(48)] (50) "Fixed guideway" means a public transit facility that uses and occupies:
831          (a) rail for the use of public transit; or
832          (b) a separate right-of-way for the use of public transit.
833          [(49)] (51) "Fixed wing turbine powered aircraft" means an aircraft that:
834          (a) is powered by turbine engines;
835          (b) operates on jet fuel; and
836          (c) has wings that are permanently attached to the fuselage of the aircraft.
837          [(50)] (52) "Fixed wireless service" means a telecommunications service that provides
838     radio communication between fixed points.
839          [(51)] (53) (a) "Food and food ingredients" means substances:
840          (i) regardless of whether the substances are in:
841          (A) liquid form;

842          (B) concentrated form;
843          (C) solid form;
844          (D) frozen form;
845          (E) dried form; or
846          (F) dehydrated form; and
847          (ii) that are:
848          (A) sold for:
849          (I) ingestion by humans; or
850          (II) chewing by humans; and
851          (B) consumed for the substance's:
852          (I) taste; or
853          (II) nutritional value.
854          (b) "Food and food ingredients" includes an item described in Subsection [(96)(b)(iii)]
855     (99)(b)(iii).
856          (c) "Food and food ingredients" does not include:
857          (i) an alcoholic beverage;
858          (ii) tobacco; or
859          (iii) prepared food.
860          [(52)] (54) (a) "Fundraising sales" means sales:
861          (i) (A) made by a school; or
862          (B) made by a school student;
863          (ii) that are for the purpose of raising funds for the school to purchase equipment,
864     materials, or provide transportation; and
865          (iii) that are part of an officially sanctioned school activity.
866          (b) For purposes of Subsection [(52)(a)(iii)] (54)(a)(iii), "officially sanctioned school
867     activity" means a school activity:
868          (i) that is conducted in accordance with a formal policy adopted by the school or school
869     district governing the authorization and supervision of fundraising activities;

870          (ii) that does not directly or indirectly compensate an individual teacher or other
871     educational personnel by direct payment, commissions, or payment in kind; and
872          (iii) the net or gross revenues from which are deposited in a dedicated account
873     controlled by the school or school district.
874          [(53)] (55) "Geothermal energy" means energy contained in heat that continuously
875     flows outward from the earth that is used as the sole source of energy to produce electricity.
876          [(54)] (56) "Governing board of the agreement" means the governing board of the
877     agreement that is:
878          (a) authorized to administer the agreement; and
879          (b) established in accordance with the agreement.
880          [(55)] (57) (a) For purposes of Subsection 59-12-104(41), "governmental entity"
881     means:
882          (i) the executive branch of the state, including all departments, institutions, boards,
883     divisions, bureaus, offices, commissions, and committees;
884          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
885     Administrative Office of the Courts, and similar administrative units in the judicial branch;
886          (iii) the legislative branch of the state, including the House of Representatives, the
887     Senate, the Legislative Printing Office, the Office of Legislative Research and General
888     Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
889     Analyst;
890          (iv) the National Guard;
891          (v) an independent entity as defined in Section 63E-1-102; or
892          (vi) a political subdivision as defined in Section 17B-1-102.
893          (b) "Governmental entity" does not include the state systems of public and higher
894     education, including:
895          (i) a school;
896          (ii) the State Board of Education;
897          (iii) the Utah Board of Higher Education; or

898          (iv) an institution of higher education described in Section 53B-1-102.
899          [(56)] (58) "Hydroelectric energy" means water used as the sole source of energy to
900     produce electricity.
901          (59) "Individual-owned shared vehicle" means the same as that term is defined in
902     Section 13-48a-101.
903          [(57)] (60) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil,
904     or other fuels:
905          (a) in mining or extraction of minerals;
906          (b) in agricultural operations to produce an agricultural product up to the time of
907     harvest or placing the agricultural product into a storage facility, including:
908          (i) commercial greenhouses;
909          (ii) irrigation pumps;
910          (iii) farm machinery;
911          (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
912     under Title 41, Chapter 1a, Part 2, Registration; and
913          (v) other farming activities;
914          (c) in manufacturing tangible personal property at an establishment described in:
915          (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
916     the federal Executive Office of the President, Office of Management and Budget; or
917          (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
918     American Industry Classification System of the federal Executive Office of the President,
919     Office of Management and Budget;
920          (d) by a scrap recycler if:
921          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
922     one or more of the following items into prepared grades of processed materials for use in new
923     products:
924          (A) iron;
925          (B) steel;

926          (C) nonferrous metal;
927          (D) paper;
928          (E) glass;
929          (F) plastic;
930          (G) textile; or
931          (H) rubber; and
932          (ii) the new products under Subsection [(57)(d)(i)] (60)(d)(i) would otherwise be made
933     with nonrecycled materials; or
934          (e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
935     cogeneration facility as defined in Section 54-2-1.
936          [(58)] (61) (a) Except as provided in Subsection [(58)(b)] (61)(b), "installation charge"
937     means a charge for installing:
938          (i) tangible personal property; or
939          (ii) a product transferred electronically.
940          (b) "Installation charge" does not include a charge for:
941          (i) repairs or renovations of:
942          (A) tangible personal property; or
943          (B) a product transferred electronically; or
944          (ii) attaching tangible personal property or a product transferred electronically:
945          (A) to other tangible personal property; and
946          (B) as part of a manufacturing or fabrication process.
947          [(59)] (62) "Institution of higher education" means an institution of higher education
948     listed in Section 53B-2-101.
949          [(60)] (63) (a) "Lease" or "rental" means a transfer of possession or control of tangible
950     personal property or a product transferred electronically for:
951          (i) (A) a fixed term; or
952          (B) an indeterminate term; and
953          (ii) consideration.

954          (b) "Lease" or "rental" includes:
955          (i) an agreement covering a motor vehicle and trailer if the amount of consideration
956     may be increased or decreased by reference to the amount realized upon sale or disposition of
957     the property as defined in Section 7701(h)(1), Internal Revenue Code[.]; and
958          (ii) car sharing.
959          (c) "Lease" or "rental" does not include:
960          (i) a transfer of possession or control of property under a security agreement or
961     deferred payment plan that requires the transfer of title upon completion of the required
962     payments;
963          (ii) a transfer of possession or control of property under an agreement that requires the
964     transfer of title:
965          (A) upon completion of required payments; and
966          (B) if the payment of an option price does not exceed the greater of:
967          (I) $100; or
968          (II) 1% of the total required payments; or
969          (iii) providing tangible personal property along with an operator for a fixed period of
970     time or an indeterminate period of time if the operator is necessary for equipment to perform as
971     designed.
972          (d) For purposes of Subsection [(60)(c)(iii)] (63)(c)(iii), an operator is necessary for
973     equipment to perform as designed if the operator's duties exceed the:
974          (i) set-up of tangible personal property;
975          (ii) maintenance of tangible personal property; or
976          (iii) inspection of tangible personal property.
977          [(61)] (64) "Lesson" means a fixed period of time for the duration of which a trained
978     instructor:
979          (a) is present with a student in person or by video; and
980          (b) actively instructs the student, including by providing observation or feedback.
981          [(62)] (65) "Life science establishment" means an establishment in this state that is

982     classified under the following NAICS codes of the 2007 North American Industry
983     Classification System of the federal Executive Office of the President, Office of Management
984     and Budget:
985          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
986          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
987     Manufacturing; or
988          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
989          [(63)] (66) "Life science research and development facility" means a facility owned,
990     leased, or rented by a life science establishment if research and development is performed in
991     51% or more of the total area of the facility.
992          [(64)] (67) "Load and leave" means delivery to a purchaser by use of a tangible storage
993     media if the tangible storage media is not physically transferred to the purchaser.
994          [(65)] (68) "Local taxing jurisdiction" means a:
995          (a) county that is authorized to impose an agreement sales and use tax;
996          (b) city that is authorized to impose an agreement sales and use tax; or
997          (c) town that is authorized to impose an agreement sales and use tax.
998          [(66)] (69) "Manufactured home" means the same as that term is defined in Section
999     15A-1-302.
1000          [(67)] (70) "Manufacturing facility" means:
1001          (a) an establishment described in:
1002          (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
1003     the federal Executive Office of the President, Office of Management and Budget; or
1004          (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
1005     American Industry Classification System of the federal Executive Office of the President,
1006     Office of Management and Budget;
1007          (b) a scrap recycler if:
1008          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
1009     one or more of the following items into prepared grades of processed materials for use in new

1010     products:
1011          (A) iron;
1012          (B) steel;
1013          (C) nonferrous metal;
1014          (D) paper;
1015          (E) glass;
1016          (F) plastic;
1017          (G) textile; or
1018          (H) rubber; and
1019          (ii) the new products under Subsection [(67)(b)(i)] (70)(b)(i) would otherwise be made
1020     with nonrecycled materials; or
1021          (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
1022     placed in service on or after May 1, 2006.
1023          [(68)] (71) (a) "Marketplace" means a physical or electronic place, platform, or forum
1024     where tangible personal property, a product transferred electronically, or a service is offered for
1025     sale.
1026          (b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a
1027     dedicated sales software application.
1028          [(69)] (72) (a) "Marketplace facilitator" means a person, including an affiliate of the
1029     person, that enters into a contract, an agreement, or otherwise with sellers, for consideration, to
1030     facilitate the sale of a seller's product through a marketplace that the person owns, operates, or
1031     controls and that directly or indirectly:
1032          (i) does any of the following:
1033          (A) lists, makes available, or advertises tangible personal property, a product
1034     transferred electronically, or a service for sale by a marketplace seller on a marketplace that the
1035     person owns, operates, or controls;
1036          (B) facilitates the sale of a marketplace seller's tangible personal property, product
1037     transferred electronically, or service by transmitting or otherwise communicating an offer or

1038     acceptance of a retail sale between the marketplace seller and a purchaser using the
1039     marketplace;
1040          (C) owns, rents, licenses, makes available, or operates any electronic or physical
1041     infrastructure or any property, process, method, copyright, trademark, or patent that connects a
1042     marketplace seller to a purchaser for the purpose of making a retail sale of tangible personal
1043     property, a product transferred electronically, or a service;
1044          (D) provides a marketplace for making, or otherwise facilitates, a retail sale of tangible
1045     personal property, a product transferred electronically, or a service, regardless of ownership or
1046     control of the tangible personal property, the product transferred electronically, or the service
1047     that is the subject of the retail sale;
1048          (E) provides software development or research and development activities related to
1049     any activity described in this Subsection [(69)(a)(i)] (72)(a)(i), if the software development or
1050     research and development activity is directly related to the person's marketplace;
1051          (F) provides or offers fulfillment or storage services for a marketplace seller;
1052          (G) sets prices for the sale of tangible personal property, a product transferred
1053     electronically, or a service by a marketplace seller;
1054          (H) provides or offers customer service to a marketplace seller or a marketplace seller's
1055     purchaser or accepts or assists with taking orders, returns, or exchanges of tangible personal
1056     property, a product transferred electronically, or a service sold by a marketplace seller on the
1057     person's marketplace; or
1058          (I) brands or otherwise identifies sales as those of the person; and
1059          (ii) does any of the following:
1060          (A) collects the sales price or purchase price of a retail sale of tangible personal
1061     property, a product transferred electronically, or a service;
1062          (B) provides payment processing services for a retail sale of tangible personal property,
1063     a product transferred electronically, or a service;
1064          (C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee, closing
1065     fee, a fee for inserting or making available tangible personal property, a product transferred

1066     electronically, or a service on the person's marketplace, or other consideration for the
1067     facilitation of a retail sale of tangible personal property, a product transferred electronically, or
1068     a service, regardless of ownership or control of the tangible personal property, the product
1069     transferred electronically, or the service that is the subject of the retail sale;
1070          (D) through terms and conditions, an agreement, or another arrangement with a third
1071     person, collects payment from a purchase for a retail sale of tangible personal property, a
1072     product transferred electronically, or a service and transmits that payment to the marketplace
1073     seller, regardless of whether the third person receives compensation or other consideration in
1074     exchange for the service; or
1075          (E) provides a virtual currency for a purchaser to use to purchase tangible personal
1076     property, a product transferred electronically, or service offered for sale.
1077          (b) "Marketplace facilitator" does not include:
1078          (i) a person that only provides payment processing services; or
1079          (ii) a person described in Subsection [(69)(a)] (72)(a) to the extent the person is
1080     facilitating a sale for a seller that is a restaurant as defined in Section 59-12-602.
1081          [(70)] (73) "Marketplace seller" means a seller that makes one or more retail sales
1082     through a marketplace that a marketplace facilitator owns, operates, or controls, regardless of
1083     whether the seller is required to be registered to collect and remit the tax under this part.
1084          [(71)] (74) "Member of the immediate family of the producer" means a person who is
1085     related to a producer described in Subsection 59-12-104(20)(a) as a:
1086          (a) child or stepchild, regardless of whether the child or stepchild is:
1087          (i) an adopted child or adopted stepchild; or
1088          (ii) a foster child or foster stepchild;
1089          (b) grandchild or stepgrandchild;
1090          (c) grandparent or stepgrandparent;
1091          (d) nephew or stepnephew;
1092          (e) niece or stepniece;
1093          (f) parent or stepparent;

1094          (g) sibling or stepsibling;
1095          (h) spouse;
1096          (i) person who is the spouse of a person described in Subsections [(71)(a)] (74)(a)
1097     through (g); or
1098          (j) person similar to a person described in Subsections [(71)(a)] (74)(a) through (i) as
1099     determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1100     Administrative Rulemaking Act.
1101          [(72)] (75) "Mobile home" means the same as that term is defined in Section
1102     15A-1-302.
1103          [(73)] (76) "Mobile telecommunications service" means the same as that term is
1104     defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1105          [(74)] (77) (a) "Mobile wireless service" means a telecommunications service,
1106     regardless of the technology used, if:
1107          (i) the origination point of the conveyance, routing, or transmission is not fixed;
1108          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
1109          (iii) the origination point described in Subsection [(74)(a)(i)] (77)(a)(i) and the
1110     termination point described in Subsection [(74)(a)(ii)] (77)(a)(ii) are not fixed.
1111          (b) "Mobile wireless service" includes a telecommunications service that is provided
1112     by a commercial mobile radio service provider.
1113          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1114     commission may by rule define "commercial mobile radio service provider."
1115          [(75)] (78) (a) Except as provided in Subsection [(75)(c)] (78)(c), "mobility enhancing
1116     equipment" means equipment that is:
1117          (i) primarily and customarily used to provide or increase the ability to move from one
1118     place to another;
1119          (ii) appropriate for use in a:
1120          (A) home; or
1121          (B) motor vehicle; and

1122          (iii) not generally used by persons with normal mobility.
1123          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
1124     the equipment described in Subsection [(75)(a)] (78)(a).
1125          (c) "Mobility enhancing equipment" does not include:
1126          (i) a motor vehicle;
1127          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
1128     vehicle manufacturer;
1129          (iii) durable medical equipment; or
1130          (iv) a prosthetic device.
1131          [(76)] (79) "Model 1 seller" means a seller registered under the agreement that has
1132     selected a certified service provider as the seller's agent to perform the seller's sales and use tax
1133     functions for agreement sales and use taxes, as outlined in the contract between the governing
1134     board of the agreement and the certified service provider, other than the seller's obligation
1135     under Section 59-12-124 to remit a tax on the seller's own purchases.
1136          [(77)] (80) "Model 2 seller" means a seller registered under the agreement that:
1137          (a) except as provided in Subsection [(77)(b)] (80)(b), has selected a certified
1138     automated system to perform the seller's sales tax functions for agreement sales and use taxes;
1139     and
1140          (b) retains responsibility for remitting all of the sales tax:
1141          (i) collected by the seller; and
1142          (ii) to the appropriate local taxing jurisdiction.
1143          [(78)] (81) (a) Subject to Subsection [(78)(b)] (81)(b), "model 3 seller" means a seller
1144     registered under the agreement that has:
1145          (i) sales in at least five states that are members of the agreement;
1146          (ii) total annual sales revenues of at least $500,000,000;
1147          (iii) a proprietary system that calculates the amount of tax:
1148          (A) for an agreement sales and use tax; and
1149          (B) due to each local taxing jurisdiction; and

1150          (iv) entered into a performance agreement with the governing board of the agreement.
1151          (b) For purposes of Subsection [(78)(a)] (81)(a), "model 3 seller" includes an affiliated
1152     group of sellers using the same proprietary system.
1153          [(79)] (82) "Model 4 seller" means a seller that is registered under the agreement and is
1154     not a model 1 seller, model 2 seller, or model 3 seller.
1155          [(80)] (83) "Modular home" means a modular unit as defined in Section 15A-1-302.
1156          [(81)] (84) "Motor vehicle" means the same as that term is defined in Section
1157     41-1a-102.
1158          [(82)] (85) "Oil sands" means impregnated bituminous sands that:
1159          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
1160     other hydrocarbons, or otherwise treated;
1161          (b) yield mixtures of liquid hydrocarbon; and
1162          (c) require further processing other than mechanical blending before becoming finished
1163     petroleum products.
1164          [(83)] (86) "Oil shale" means a group of fine black to dark brown shales containing
1165     kerogen material that yields petroleum upon heating and distillation.
1166          [(84)] (87) "Optional computer software maintenance contract" means a computer
1167     software maintenance contract that a customer is not obligated to purchase as a condition to the
1168     retail sale of computer software.
1169          [(85)] (88) (a) "Other fuels" means products that burn independently to produce heat or
1170     energy.
1171          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
1172     personal property.
1173          [(86)] (89) (a) "Paging service" means a telecommunications service that provides
1174     transmission of a coded radio signal for the purpose of activating a specific pager.
1175          (b) For purposes of Subsection [(86)(a)] (89)(a), the transmission of a coded radio
1176     signal includes a transmission by message or sound.
1177          [(87)] (90) "Pawn transaction" means the same as that term is defined in Section

1178     13-32a-102.
1179          [(88)] (91) "Pawnbroker" means the same as that term is defined in Section
1180     13-32a-102.
1181          [(89)] (92) (a) "Permanently attached to real property" means that for tangible personal
1182     property attached to real property:
1183          (i) the attachment of the tangible personal property to the real property:
1184          (A) is essential to the use of the tangible personal property; and
1185          (B) suggests that the tangible personal property will remain attached to the real
1186     property in the same place over the useful life of the tangible personal property; or
1187          (ii) if the tangible personal property is detached from the real property, the detachment
1188     would:
1189          (A) cause substantial damage to the tangible personal property; or
1190          (B) require substantial alteration or repair of the real property to which the tangible
1191     personal property is attached.
1192          (b) "Permanently attached to real property" includes:
1193          (i) the attachment of an accessory to the tangible personal property if the accessory is:
1194          (A) essential to the operation of the tangible personal property; and
1195          (B) attached only to facilitate the operation of the tangible personal property;
1196          (ii) a temporary detachment of tangible personal property from real property for a
1197     repair or renovation if the repair or renovation is performed where the tangible personal
1198     property and real property are located; or
1199          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
1200     Subsection [(89)(c)(iii)] (92)(c)(iii) or (iv).
1201          (c) "Permanently attached to real property" does not include:
1202          (i) the attachment of portable or movable tangible personal property to real property if
1203     that portable or movable tangible personal property is attached to real property only for:
1204          (A) convenience;
1205          (B) stability; or

1206          (C) for an obvious temporary purpose;
1207          (ii) the detachment of tangible personal property from real property except for the
1208     detachment described in Subsection [(89)(b)(ii)] (92)(b)(ii);
1209          (iii) an attachment of the following tangible personal property to real property if the
1210     attachment to real property is only through a line that supplies water, electricity, gas,
1211     telecommunications, cable, or supplies a similar item as determined by the commission by rule
1212     made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
1213          (A) a computer;
1214          (B) a telephone;
1215          (C) a television; or
1216          (D) tangible personal property similar to Subsections [(89)(c)(iii)(A)] (92)(c)(iii)(A)
1217     through (C) as determined by the commission by rule made in accordance with Title 63G,
1218     Chapter 3, Utah Administrative Rulemaking Act; or
1219          (iv) an item listed in Subsection [(130)(c)] (136)(c).
1220          [(90)] (93) "Person" includes any individual, firm, partnership, joint venture,
1221     association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
1222     city, municipality, district, or other local governmental entity of the state, or any group or
1223     combination acting as a unit.
1224          [(91)] (94) "Place of primary use":
1225          (a) for telecommunications service other than mobile telecommunications service,
1226     means the street address representative of where the customer's use of the telecommunications
1227     service primarily occurs, which shall be:
1228          (i) the residential street address of the customer; or
1229          (ii) the primary business street address of the customer; or
1230          (b) for mobile telecommunications service, means the same as that term is defined in
1231     the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1232          [(92)] (95) (a) "Postpaid calling service" means a telecommunications service a person
1233     obtains by making a payment on a call-by-call basis:

1234          (i) through the use of a:
1235          (A) bank card;
1236          (B) credit card;
1237          (C) debit card; or
1238          (D) travel card; or
1239          (ii) by a charge made to a telephone number that is not associated with the origination
1240     or termination of the telecommunications service.
1241          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
1242     service, that would be a prepaid wireless calling service if the service were exclusively a
1243     telecommunications service.
1244          [(93)] (96) "Postproduction" means an activity related to the finishing or duplication of
1245     a medium described in Subsection 59-12-104(54)(a).
1246          [(94)] (97) "Prepaid calling service" means a telecommunications service:
1247          (a) that allows a purchaser access to telecommunications service that is exclusively
1248     telecommunications service;
1249          (b) that:
1250          (i) is paid for in advance; and
1251          (ii) enables the origination of a call using an:
1252          (A) access number; or
1253          (B) authorization code;
1254          (c) that is dialed:
1255          (i) manually; or
1256          (ii) electronically; and
1257          (d) sold in predetermined units or dollars that decline:
1258          (i) by a known amount; and
1259          (ii) with use.
1260          [(95)] (98) "Prepaid wireless calling service" means a telecommunications service:
1261          (a) that provides the right to utilize:

1262          (i) mobile wireless service; and
1263          (ii) other service that is not a telecommunications service, including:
1264          (A) the download of a product transferred electronically;
1265          (B) a content service; or
1266          (C) an ancillary service;
1267          (b) that:
1268          (i) is paid for in advance; and
1269          (ii) enables the origination of a call using an:
1270          (A) access number; or
1271          (B) authorization code;
1272          (c) that is dialed:
1273          (i) manually; or
1274          (ii) electronically; and
1275          (d) sold in predetermined units or dollars that decline:
1276          (i) by a known amount; and
1277          (ii) with use.
1278          [(96)] (99) (a) "Prepared food" means:
1279          (i) food:
1280          (A) sold in a heated state; or
1281          (B) heated by a seller;
1282          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
1283     item; or
1284          (iii) except as provided in Subsection [(96)(c)] (99)(c), food sold with an eating utensil
1285     provided by the seller, including a:
1286          (A) plate;
1287          (B) knife;
1288          (C) fork;
1289          (D) spoon;

1290          (E) glass;
1291          (F) cup;
1292          (G) napkin; or
1293          (H) straw.
1294          (b) "Prepared food" does not include:
1295          (i) food that a seller only:
1296          (A) cuts;
1297          (B) repackages; or
1298          (C) pasteurizes; [or]
1299          (ii) (A) the following:
1300          (I) raw egg;
1301          (II) raw fish;
1302          (III) raw meat;
1303          (IV) raw poultry; or
1304          (V) a food containing an item described in Subsections [(96)(b)(ii)(A)(I)]
1305     (99)(b)(ii)(A)(I) through (IV); and
1306          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
1307     Food and Drug Administration's Food Code that a consumer cook the items described in
1308     Subsection [(96)(b)(ii)(A)] (99)(b)(ii)(A) to prevent food borne illness; or
1309          (iii) the following if sold without eating utensils provided by the seller:
1310          (A) food and food ingredients sold by a seller if the seller's proper primary
1311     classification under the 2002 North American Industry Classification System of the federal
1312     Executive Office of the President, Office of Management and Budget, is manufacturing in
1313     Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
1314     Manufacturing;
1315          (B) food and food ingredients sold in an unheated state:
1316          (I) by weight or volume; and
1317          (II) as a single item; or

1318          (C) a bakery item, including:
1319          (I) a bagel;
1320          (II) a bar;
1321          (III) a biscuit;
1322          (IV) bread;
1323          (V) a bun;
1324          (VI) a cake;
1325          (VII) a cookie;
1326          (VIII) a croissant;
1327          (IX) a danish;
1328          (X) a donut;
1329          (XI) a muffin;
1330          (XII) a pastry;
1331          (XIII) a pie;
1332          (XIV) a roll;
1333          (XV) a tart;
1334          (XVI) a torte; or
1335          (XVII) a tortilla.
1336          (c) An eating utensil provided by the seller does not include the following used to
1337     transport the food:
1338          (i) a container; or
1339          (ii) packaging.
1340          [(97)] (100) "Prescription" means an order, formula, or recipe that is issued:
1341          (a) (i) orally;
1342          (ii) in writing;
1343          (iii) electronically; or
1344          (iv) by any other manner of transmission; and
1345          (b) by a licensed practitioner authorized by the laws of a state.

1346          [(98)] (101) (a) Except as provided in Subsection [(98)(b)(ii)] (101)(b)(ii) or (iii),
1347     "prewritten computer software" means computer software that is not designed and developed:
1348          (i) by the author or other creator of the computer software; and
1349          (ii) to the specifications of a specific purchaser.
1350          (b) "Prewritten computer software" includes:
1351          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
1352     software is not designed and developed:
1353          (A) by the author or other creator of the computer software; and
1354          (B) to the specifications of a specific purchaser;
1355          (ii) computer software designed and developed by the author or other creator of the
1356     computer software to the specifications of a specific purchaser if the computer software is sold
1357     to a person other than the purchaser; or
1358          (iii) except as provided in Subsection [(98)(c)] (101)(c), prewritten computer software
1359     or a prewritten portion of prewritten computer software:
1360          (A) that is modified or enhanced to any degree; and
1361          (B) if the modification or enhancement described in Subsection [(98)(b)(iii)(A)]
1362     (101)(b)(iii)(A) is designed and developed to the specifications of a specific purchaser.
1363          (c) "Prewritten computer software" does not include a modification or enhancement
1364     described in Subsection [(98)(b)(iii)] (101)(b)(iii) if the charges for the modification or
1365     enhancement are:
1366          (i) reasonable; and
1367          (ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), separately stated on the
1368     invoice or other statement of price provided to the purchaser at the time of sale or later, as
1369     demonstrated by:
1370          (A) the books and records the seller keeps at the time of the transaction in the regular
1371     course of business, including books and records the seller keeps at the time of the transaction in
1372     the regular course of business for nontax purposes;
1373          (B) a preponderance of the facts and circumstances at the time of the transaction; and

1374          (C) the understanding of all of the parties to the transaction.
1375          [(99)] (102) (a) "Private communications service" means a telecommunications
1376     service:
1377          (i) that entitles a customer to exclusive or priority use of one or more communications
1378     channels between or among termination points; and
1379          (ii) regardless of the manner in which the one or more communications channels are
1380     connected.
1381          (b) "Private communications service" includes the following provided in connection
1382     with the use of one or more communications channels:
1383          (i) an extension line;
1384          (ii) a station;
1385          (iii) switching capacity; or
1386          (iv) another associated service that is provided in connection with the use of one or
1387     more communications channels as defined in Section 59-12-215.
1388          [(100)] (103) (a) Except as provided in Subsection [(100)(b)] (103)(b), "product
1389     transferred electronically" means a product transferred electronically that would be subject to a
1390     tax under this chapter if that product was transferred in a manner other than electronically.
1391          (b) "Product transferred electronically" does not include:
1392          (i) an ancillary service;
1393          (ii) computer software; or
1394          (iii) a telecommunications service.
1395          [(101)] (104) (a) "Prosthetic device" means a device that is worn on or in the body to:
1396          (i) artificially replace a missing portion of the body;
1397          (ii) prevent or correct a physical deformity or physical malfunction; or
1398          (iii) support a weak or deformed portion of the body.
1399          (b) "Prosthetic device" includes:
1400          (i) parts used in the repairs or renovation of a prosthetic device;
1401          (ii) replacement parts for a prosthetic device;

1402          (iii) a dental prosthesis; or
1403          (iv) a hearing aid.
1404          (c) "Prosthetic device" does not include:
1405          (i) corrective eyeglasses; or
1406          (ii) contact lenses.
1407          [(102)] (105) (a) "Protective equipment" means an item:
1408          (i) for human wear; and
1409          (ii) that is:
1410          (A) designed as protection:
1411          (I) to the wearer against injury or disease; or
1412          (II) against damage or injury of other persons or property; and
1413          (B) not suitable for general use.
1414          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1415     commission shall make rules:
1416          (i) listing the items that constitute "protective equipment"; and
1417          (ii) that are consistent with the list of items that constitute "protective equipment"
1418     under the agreement.
1419          [(103)] (106) (a) For purposes of Subsection 59-12-104(41), "publication" means any
1420     written or printed matter, other than a photocopy:
1421          (i) regardless of:
1422          (A) characteristics;
1423          (B) copyright;
1424          (C) form;
1425          (D) format;
1426          (E) method of reproduction; or
1427          (F) source; and
1428          (ii) made available in printed or electronic format.
1429          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the

1430     commission may by rule define the term "photocopy."
1431          [(104)] (107) (a) "Purchase price" and "sales price" mean the total amount of
1432     consideration:
1433          (i) valued in money; and
1434          (ii) for which tangible personal property, a product transferred electronically, or
1435     services are:
1436          (A) sold;
1437          (B) leased; or
1438          (C) rented.
1439          (b) "Purchase price" and "sales price" include:
1440          (i) the seller's cost of the tangible personal property, a product transferred
1441     electronically, or services sold;
1442          (ii) expenses of the seller, including:
1443          (A) the cost of materials used;
1444          (B) a labor cost;
1445          (C) a service cost;
1446          (D) interest;
1447          (E) a loss;
1448          (F) the cost of transportation to the seller; or
1449          (G) a tax imposed on the seller;
1450          (iii) a charge by the seller for any service necessary to complete the sale; or
1451          (iv) consideration a seller receives from a person other than the purchaser if:
1452          (A) (I) the seller actually receives consideration from a person other than the purchaser;
1453     and
1454          (II) the consideration described in Subsection [(104)(b)(iv)(A)(I)] (107)(b)(iv)(A)(I) is
1455     directly related to a price reduction or discount on the sale;
1456          (B) the seller has an obligation to pass the price reduction or discount through to the
1457     purchaser;

1458          (C) the amount of the consideration attributable to the sale is fixed and determinable by
1459     the seller at the time of the sale to the purchaser; and
1460          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1461     seller to claim a price reduction or discount; and
1462          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1463     coupon, or other documentation with the understanding that the person other than the seller
1464     will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1465          (II) the purchaser identifies that purchaser to the seller as a member of a group or
1466     organization allowed a price reduction or discount, except that a preferred customer card that is
1467     available to any patron of a seller does not constitute membership in a group or organization
1468     allowed a price reduction or discount; or
1469          (III) the price reduction or discount is identified as a third party price reduction or
1470     discount on the:
1471          (Aa) invoice the purchaser receives; or
1472          (Bb) certificate, coupon, or other documentation the purchaser presents.
1473          (c) "Purchase price" and "sales price" do not include:
1474          (i) a discount:
1475          (A) in a form including:
1476          (I) cash;
1477          (II) term; or
1478          (III) coupon;
1479          (B) that is allowed by a seller;
1480          (C) taken by a purchaser on a sale; and
1481          (D) that is not reimbursed by a third party; or
1482          (ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), the following if separately
1483     stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
1484     sale or later, as demonstrated by the books and records the seller keeps at the time of the
1485     transaction in the regular course of business, including books and records the seller keeps at the

1486     time of the transaction in the regular course of business for nontax purposes, by a
1487     preponderance of the facts and circumstances at the time of the transaction, and by the
1488     understanding of all of the parties to the transaction:
1489          (A) the following from credit extended on the sale of tangible personal property or
1490     services:
1491          (I) a carrying charge;
1492          (II) a financing charge; or
1493          (III) an interest charge;
1494          (B) a delivery charge;
1495          (C) an installation charge;
1496          (D) a manufacturer rebate on a motor vehicle; or
1497          (E) a tax or fee legally imposed directly on the consumer.
1498          [(105)] (108) "Purchaser" means a person to whom:
1499          (a) a sale of tangible personal property is made;
1500          (b) a product is transferred electronically; or
1501          (c) a service is furnished.
1502          [(106)] (109) "Qualifying data center" means a data center facility that:
1503          (a) houses a group of networked server computers in one physical location in order to
1504     disseminate, manage, and store data and information;
1505          (b) is located in the state;
1506          (c) is a new operation constructed on or after July 1, 2016;
1507          (d) consists of one or more buildings that total 150,000 or more square feet;
1508          (e) is owned or leased by:
1509          (i) the operator of the data center facility; or
1510          (ii) a person under common ownership, as defined in Section 59-7-101, of the operator
1511     of the data center facility; and
1512          (f) is located on one or more parcels of land that are owned or leased by:
1513          (i) the operator of the data center facility; or

1514          (ii) a person under common ownership, as defined in Section 59-7-101, of the operator
1515     of the data center facility.
1516          [(107)] (110) "Regularly rented" means:
1517          (a) rented to a guest for value three or more times during a calendar year; or
1518          (b) advertised or held out to the public as a place that is regularly rented to guests for
1519     value.
1520          [(108)] (111) "Rental" means the same as that term is defined in Subsection [(60)] (63).
1521          [(109)] (112) (a) Except as provided in Subsection [(109)(b)] (112)(b), "repairs or
1522     renovations of tangible personal property" means:
1523          (i) a repair or renovation of tangible personal property that is not permanently attached
1524     to real property; or
1525          (ii) attaching tangible personal property or a product transferred electronically to other
1526     tangible personal property or detaching tangible personal property or a product transferred
1527     electronically from other tangible personal property if:
1528          (A) the other tangible personal property to which the tangible personal property or
1529     product transferred electronically is attached or from which the tangible personal property or
1530     product transferred electronically is detached is not permanently attached to real property; and
1531          (B) the attachment of tangible personal property or a product transferred electronically
1532     to other tangible personal property or detachment of tangible personal property or a product
1533     transferred electronically from other tangible personal property is made in conjunction with a
1534     repair or replacement of tangible personal property or a product transferred electronically.
1535          (b) "Repairs or renovations of tangible personal property" does not include:
1536          (i) attaching prewritten computer software to other tangible personal property if the
1537     other tangible personal property to which the prewritten computer software is attached is not
1538     permanently attached to real property; or
1539          (ii) detaching prewritten computer software from other tangible personal property if the
1540     other tangible personal property from which the prewritten computer software is detached is
1541     not permanently attached to real property.

1542          [(110)] (113) "Research and development" means the process of inquiry or
1543     experimentation aimed at the discovery of facts, devices, technologies, or applications and the
1544     process of preparing those devices, technologies, or applications for marketing.
1545          [(111)] (114) (a) "Residential telecommunications services" means a
1546     telecommunications service or an ancillary service that is provided to an individual for personal
1547     use:
1548          (i) at a residential address; or
1549          (ii) at an institution, including a nursing home or a school, if the telecommunications
1550     service or ancillary service is provided to and paid for by the individual residing at the
1551     institution rather than the institution.
1552          (b) For purposes of Subsection [(111)(a)(i)] (114)(a)(i), a residential address includes
1553     an:
1554          (i) apartment; or
1555          (ii) other individual dwelling unit.
1556          [(112)] (115) "Residential use" means the use in or around a home, apartment building,
1557     sleeping quarters, and similar facilities or accommodations.
1558          [(113)] (116) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
1559     other than:
1560          (a) resale;
1561          (b) sublease; or
1562          (c) subrent.
1563          [(114)] (117) (a) "Retailer" means any person, unless prohibited by the Constitution of
1564     the United States or federal law, that is engaged in a regularly organized business in tangible
1565     personal property or any other taxable transaction under Subsection 59-12-103(1), and who is
1566     selling to the user or consumer and not for resale.
1567          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1568     engaged in the business of selling to users or consumers within the state.
1569          [(115)] (118) (a) "Sale" means any transfer of title, exchange, or barter, conditional or

1570     otherwise, in any manner, of tangible personal property or any other taxable transaction under
1571     Subsection 59-12-103(1), for consideration.
1572          (b) "Sale" includes:
1573          (i) installment and credit sales;
1574          (ii) any closed transaction constituting a sale;
1575          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1576     chapter;
1577          (iv) any transaction if the possession of property is transferred but the seller retains the
1578     title as security for the payment of the price; and
1579          (v) any transaction under which right to possession, operation, or use of any article of
1580     tangible personal property is granted under a lease or contract and the transfer of possession
1581     would be taxable if an outright sale were made.
1582          [(116)] (119) "Sale at retail" means the same as that term is defined in Subsection
1583     [(113)] (116).
1584          [(117)] (120) "Sale-leaseback transaction" means a transaction by which title to
1585     tangible personal property or a product transferred electronically that is subject to a tax under
1586     this chapter is transferred:
1587          (a) by a purchaser-lessee;
1588          (b) to a lessor;
1589          (c) for consideration; and
1590          (d) if:
1591          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1592     of the tangible personal property or product transferred electronically;
1593          (ii) the sale of the tangible personal property or product transferred electronically to the
1594     lessor is intended as a form of financing:
1595          (A) for the tangible personal property or product transferred electronically; and
1596          (B) to the purchaser-lessee; and
1597          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee

1598     is required to:
1599          (A) capitalize the tangible personal property or product transferred electronically for
1600     financial reporting purposes; and
1601          (B) account for the lease payments as payments made under a financing arrangement.
1602          [(118)] (121) "Sales price" means the same as that term is defined in Subsection
1603     [(104)] (107).
1604          [(119)] (122) (a) "Sales relating to schools" means the following sales by, amounts
1605     paid to, or amounts charged by a school:
1606          (i) sales that are directly related to the school's educational functions or activities
1607     including:
1608          (A) the sale of:
1609          (I) textbooks;
1610          (II) textbook fees;
1611          (III) laboratory fees;
1612          (IV) laboratory supplies; or
1613          (V) safety equipment;
1614          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1615     that:
1616          (I) a student is specifically required to wear as a condition of participation in a
1617     school-related event or school-related activity; and
1618          (II) is not readily adaptable to general or continued usage to the extent that it takes the
1619     place of ordinary clothing;
1620          (C) sales of the following if the net or gross revenues generated by the sales are
1621     deposited into a school district fund or school fund dedicated to school meals:
1622          (I) food and food ingredients; or
1623          (II) prepared food; or
1624          (D) transportation charges for official school activities; or
1625          (ii) amounts paid to or amounts charged by a school for admission to a school-related

1626     event or school-related activity.
1627          (b) "Sales relating to schools" does not include:
1628          (i) bookstore sales of items that are not educational materials or supplies;
1629          (ii) except as provided in Subsection [(119)(a)(i)(B)] (122)(a)(i)(B):
1630          (A) clothing;
1631          (B) clothing accessories or equipment;
1632          (C) protective equipment; or
1633          (D) sports or recreational equipment; or
1634          (iii) amounts paid to or amounts charged by a school for admission to a school-related
1635     event or school-related activity if the amounts paid or charged are passed through to a person:
1636          (A) other than a:
1637          (I) school;
1638          (II) nonprofit organization authorized by a school board or a governing body of a
1639     private school to organize and direct a competitive secondary school activity; or
1640          (III) nonprofit association authorized by a school board or a governing body of a
1641     private school to organize and direct a competitive secondary school activity; and
1642          (B) that is required to collect sales and use taxes under this chapter.
1643          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1644     commission may make rules defining the term "passed through."
1645          [(120)] (123) For purposes of this section and Section 59-12-104, "school" means:
1646          (a) an elementary school or a secondary school that:
1647          (i) is a:
1648          (A) public school; or
1649          (B) private school; and
1650          (ii) provides instruction for one or more grades kindergarten through 12; or
1651          (b) a public school district.
1652          [(121)] (124) (a) "Seller" means a person that makes a sale, lease, or rental of:
1653          (i) tangible personal property;

1654          (ii) a product transferred electronically; or
1655          (iii) a service.
1656          (b) "Seller" includes a marketplace facilitator.
1657          [(122)] (125) (a) "Semiconductor fabricating, processing, research, or development
1658     materials" means tangible personal property or a product transferred electronically if the
1659     tangible personal property or product transferred electronically is:
1660          (i) used primarily in the process of:
1661          (A) (I) manufacturing a semiconductor;
1662          (II) fabricating a semiconductor; or
1663          (III) research or development of a:
1664          (Aa) semiconductor; or
1665          (Bb) semiconductor manufacturing process; or
1666          (B) maintaining an environment suitable for a semiconductor; or
1667          (ii) consumed primarily in the process of:
1668          (A) (I) manufacturing a semiconductor;
1669          (II) fabricating a semiconductor; or
1670          (III) research or development of a:
1671          (Aa) semiconductor; or
1672          (Bb) semiconductor manufacturing process; or
1673          (B) maintaining an environment suitable for a semiconductor.
1674          (b) "Semiconductor fabricating, processing, research, or development materials"
1675     includes:
1676          (i) parts used in the repairs or renovations of tangible personal property or a product
1677     transferred electronically described in Subsection [(122)(a)] (125)(a); or
1678          (ii) a chemical, catalyst, or other material used to:
1679          (A) produce or induce in a semiconductor a:
1680          (I) chemical change; or
1681          (II) physical change;

1682          (B) remove impurities from a semiconductor; or
1683          (C) improve the marketable condition of a semiconductor.
1684          [(123)] (126) "Senior citizen center" means a facility having the primary purpose of
1685     providing services to the aged as defined in Section 62A-3-101.
1686          (127) "Shared vehicle" means the same as that term is defined in Section 13-48a-101.
1687          (128) "Shared vehicle driver" means the same as that term is defined in Section
1688     13-48a-101.
1689          (129) "Shared vehicle owner" means the same as that term is defined in Section
1690     13-48a-101.
1691          [(124)] (130) (a) Subject to Subsections [(124)(b)] (130)(b) and (c), "short-term
1692     lodging consumable" means tangible personal property that:
1693          (i) a business that provides accommodations and services described in Subsection
1694     59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
1695     to a purchaser;
1696          (ii) is intended to be consumed by the purchaser; and
1697          (iii) is:
1698          (A) included in the purchase price of the accommodations and services; and
1699          (B) not separately stated on an invoice, bill of sale, or other similar document provided
1700     to the purchaser.
1701          (b) "Short-term lodging consumable" includes:
1702          (i) a beverage;
1703          (ii) a brush or comb;
1704          (iii) a cosmetic;
1705          (iv) a hair care product;
1706          (v) lotion;
1707          (vi) a magazine;
1708          (vii) makeup;
1709          (viii) a meal;

1710          (ix) mouthwash;
1711          (x) nail polish remover;
1712          (xi) a newspaper;
1713          (xii) a notepad;
1714          (xiii) a pen;
1715          (xiv) a pencil;
1716          (xv) a razor;
1717          (xvi) saline solution;
1718          (xvii) a sewing kit;
1719          (xviii) shaving cream;
1720          (xix) a shoe shine kit;
1721          (xx) a shower cap;
1722          (xxi) a snack item;
1723          (xxii) soap;
1724          (xxiii) toilet paper;
1725          (xxiv) a toothbrush;
1726          (xxv) toothpaste; or
1727          (xxvi) an item similar to Subsections [(124)(b)(i)] (130)(b)(i) through (xxv) as the
1728     commission may provide by rule made in accordance with Title 63G, Chapter 3, Utah
1729     Administrative Rulemaking Act.
1730          (c) "Short-term lodging consumable" does not include:
1731          (i) tangible personal property that is cleaned or washed to allow the tangible personal
1732     property to be reused; or
1733          (ii) a product transferred electronically.
1734          [(125)] (131) "Simplified electronic return" means the electronic return:
1735          (a) described in Section 318(C) of the agreement; and
1736          (b) approved by the governing board of the agreement.
1737          [(126)] (132) "Solar energy" means the sun used as the sole source of energy for

1738     producing electricity.
1739          [(127)] (133) (a) "Sports or recreational equipment" means an item:
1740          (i) designed for human use; and
1741          (ii) that is:
1742          (A) worn in conjunction with:
1743          (I) an athletic activity; or
1744          (II) a recreational activity; and
1745          (B) not suitable for general use.
1746          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1747     commission shall make rules:
1748          (i) listing the items that constitute "sports or recreational equipment"; and
1749          (ii) that are consistent with the list of items that constitute "sports or recreational
1750     equipment" under the agreement.
1751          [(128)] (134) "State" means the state of Utah, its departments, and agencies.
1752          [(129)] (135) "Storage" means any keeping or retention of tangible personal property or
1753     any other taxable transaction under Subsection 59-12-103(1), in this state for any purpose
1754     except sale in the regular course of business.
1755          [(130)] (136) (a) Except as provided in Subsection [(130)(d)] (136)(d) or (e), "tangible
1756     personal property" means personal property that:
1757          (i) may be:
1758          (A) seen;
1759          (B) weighed;
1760          (C) measured;
1761          (D) felt; or
1762          (E) touched; or
1763          (ii) is in any manner perceptible to the senses.
1764          (b) "Tangible personal property" includes:
1765          (i) electricity;

1766          (ii) water;
1767          (iii) gas;
1768          (iv) steam; or
1769          (v) prewritten computer software, regardless of the manner in which the prewritten
1770     computer software is transferred.
1771          (c) "Tangible personal property" includes the following regardless of whether the item
1772     is attached to real property:
1773          (i) a dishwasher;
1774          (ii) a dryer;
1775          (iii) a freezer;
1776          (iv) a microwave;
1777          (v) a refrigerator;
1778          (vi) a stove;
1779          (vii) a washer; or
1780          (viii) an item similar to Subsections [(130)(c)(i)] (136)(c)(i) through (vii) as
1781     determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1782     Administrative Rulemaking Act.
1783          (d) "Tangible personal property" does not include a product that is transferred
1784     electronically.
1785          (e) "Tangible personal property" does not include the following if attached to real
1786     property, regardless of whether the attachment to real property is only through a line that
1787     supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1788     commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1789     Rulemaking Act:
1790          (i) a hot water heater;
1791          (ii) a water filtration system; or
1792          (iii) a water softener system.
1793          [(131)] (137) (a) "Telecommunications enabling or facilitating equipment, machinery,

1794     or software" means an item listed in Subsection [(131)(b)] (137)(b) if that item is purchased or
1795     leased primarily to enable or facilitate one or more of the following to function:
1796          (i) telecommunications switching or routing equipment, machinery, or software; or
1797          (ii) telecommunications transmission equipment, machinery, or software.
1798          (b) The following apply to Subsection [(131)(a)] (137)(a):
1799          (i) a pole;
1800          (ii) software;
1801          (iii) a supplementary power supply;
1802          (iv) temperature or environmental equipment or machinery;
1803          (v) test equipment;
1804          (vi) a tower; or
1805          (vii) equipment, machinery, or software that functions similarly to an item listed in
1806     Subsections [(131)(b)(i)] (137)(b)(i) through (vi) as determined by the commission by rule
1807     made in accordance with Subsection [(131)(c)] (137)(c).
1808          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1809     commission may by rule define what constitutes equipment, machinery, or software that
1810     functions similarly to an item listed in Subsections [(131)(b)(i)] (137)(b)(i) through (vi).
1811          [(132)] (138) "Telecommunications equipment, machinery, or software required for
1812     911 service" means equipment, machinery, or software that is required to comply with 47
1813     C.F.R. Sec. 20.18.
1814          [(133)] (139) "Telecommunications maintenance or repair equipment, machinery, or
1815     software" means equipment, machinery, or software purchased or leased primarily to maintain
1816     or repair one or more of the following, regardless of whether the equipment, machinery, or
1817     software is purchased or leased as a spare part or as an upgrade or modification to one or more
1818     of the following:
1819          (a) telecommunications enabling or facilitating equipment, machinery, or software;
1820          (b) telecommunications switching or routing equipment, machinery, or software; or
1821          (c) telecommunications transmission equipment, machinery, or software.

1822          [(134)] (140) (a) "Telecommunications service" means the electronic conveyance,
1823     routing, or transmission of audio, data, video, voice, or any other information or signal to a
1824     point, or among or between points.
1825          (b) "Telecommunications service" includes:
1826          (i) an electronic conveyance, routing, or transmission with respect to which a computer
1827     processing application is used to act:
1828          (A) on the code, form, or protocol of the content;
1829          (B) for the purpose of electronic conveyance, routing, or transmission; and
1830          (C) regardless of whether the service:
1831          (I) is referred to as voice over Internet protocol service; or
1832          (II) is classified by the Federal Communications Commission as enhanced or value
1833     added;
1834          (ii) an 800 service;
1835          (iii) a 900 service;
1836          (iv) a fixed wireless service;
1837          (v) a mobile wireless service;
1838          (vi) a postpaid calling service;
1839          (vii) a prepaid calling service;
1840          (viii) a prepaid wireless calling service; or
1841          (ix) a private communications service.
1842          (c) "Telecommunications service" does not include:
1843          (i) advertising, including directory advertising;
1844          (ii) an ancillary service;
1845          (iii) a billing and collection service provided to a third party;
1846          (iv) a data processing and information service if:
1847          (A) the data processing and information service allows data to be:
1848          (I) (Aa) acquired;
1849          (Bb) generated;

1850          (Cc) processed;
1851          (Dd) retrieved; or
1852          (Ee) stored; and
1853          (II) delivered by an electronic transmission to a purchaser; and
1854          (B) the purchaser's primary purpose for the underlying transaction is the processed data
1855     or information;
1856          (v) installation or maintenance of the following on a customer's premises:
1857          (A) equipment; or
1858          (B) wiring;
1859          (vi) Internet access service;
1860          (vii) a paging service;
1861          (viii) a product transferred electronically, including:
1862          (A) music;
1863          (B) reading material;
1864          (C) a ring tone;
1865          (D) software; or
1866          (E) video;
1867          (ix) a radio and television audio and video programming service:
1868          (A) regardless of the medium; and
1869          (B) including:
1870          (I) furnishing conveyance, routing, or transmission of a television audio and video
1871     programming service by a programming service provider;
1872          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1873          (III) audio and video programming services delivered by a commercial mobile radio
1874     service provider as defined in 47 C.F.R. Sec. 20.3;
1875          (x) a value-added nonvoice data service; or
1876          (xi) tangible personal property.
1877          [(135)] (141) (a) "Telecommunications service provider" means a person that:

1878          (i) owns, controls, operates, or manages a telecommunications service; and
1879          (ii) engages in an activity described in Subsection [(135)(a)(i)] (141)(a)(i) for the
1880     shared use with or resale to any person of the telecommunications service.
1881          (b) A person described in Subsection [(135)(a)] (141)(a) is a telecommunications
1882     service provider whether or not the Public Service Commission of Utah regulates:
1883          (i) that person; or
1884          (ii) the telecommunications service that the person owns, controls, operates, or
1885     manages.
1886          [(136)] (142) (a) "Telecommunications switching or routing equipment, machinery, or
1887     software" means an item listed in Subsection [(136)(b)] (142)(b) if that item is purchased or
1888     leased primarily for switching or routing:
1889          (i) an ancillary service;
1890          (ii) data communications;
1891          (iii) voice communications; or
1892          (iv) telecommunications service.
1893          (b) The following apply to Subsection [(136)(a)] (142)(a):
1894          (i) a bridge;
1895          (ii) a computer;
1896          (iii) a cross connect;
1897          (iv) a modem;
1898          (v) a multiplexer;
1899          (vi) plug in circuitry;
1900          (vii) a router;
1901          (viii) software;
1902          (ix) a switch; or
1903          (x) equipment, machinery, or software that functions similarly to an item listed in
1904     Subsections [(136)(b)(i)] (142)(b)(i) through (ix) as determined by the commission by rule
1905     made in accordance with Subsection [(136)(c)] (142)(c).

1906          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1907     commission may by rule define what constitutes equipment, machinery, or software that
1908     functions similarly to an item listed in Subsections [(136)(b)(i)] (142)(b)(i) through (ix).
1909          [(137)] (143) (a) "Telecommunications transmission equipment, machinery, or
1910     software" means an item listed in Subsection [(137)(b)] (143)(b) if that item is purchased or
1911     leased primarily for sending, receiving, or transporting:
1912          (i) an ancillary service;
1913          (ii) data communications;
1914          (iii) voice communications; or
1915          (iv) telecommunications service.
1916          (b) The following apply to Subsection [(137)(a)] (143)(a):
1917          (i) an amplifier;
1918          (ii) a cable;
1919          (iii) a closure;
1920          (iv) a conduit;
1921          (v) a controller;
1922          (vi) a duplexer;
1923          (vii) a filter;
1924          (viii) an input device;
1925          (ix) an input/output device;
1926          (x) an insulator;
1927          (xi) microwave machinery or equipment;
1928          (xii) an oscillator;
1929          (xiii) an output device;
1930          (xiv) a pedestal;
1931          (xv) a power converter;
1932          (xvi) a power supply;
1933          (xvii) a radio channel;

1934          (xviii) a radio receiver;
1935          (xix) a radio transmitter;
1936          (xx) a repeater;
1937          (xxi) software;
1938          (xxii) a terminal;
1939          (xxiii) a timing unit;
1940          (xxiv) a transformer;
1941          (xxv) a wire; or
1942          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1943     Subsections [(137)(b)(i)] (142)(b)(i) through (xxv) as determined by the commission by rule
1944     made in accordance with Subsection [(137)(c)] (142)(c).
1945          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1946     commission may by rule define what constitutes equipment, machinery, or software that
1947     functions similarly to an item listed in Subsections [(137)(b)(i)] (142)(b)(i) through (xxv).
1948          [(138)] (144) (a) "Textbook for a higher education course" means a textbook or other
1949     printed material that is required for a course:
1950          (i) offered by an institution of higher education; and
1951          (ii) that the purchaser of the textbook or other printed material attends or will attend.
1952          (b) "Textbook for a higher education course" includes a textbook in electronic format.
1953          [(139)] (145) "Tobacco" means:
1954          (a) a cigarette;
1955          (b) a cigar;
1956          (c) chewing tobacco;
1957          (d) pipe tobacco; or
1958          (e) any other item that contains tobacco.
1959          [(140)] (146) "Unassisted amusement device" means an amusement device, skill
1960     device, or ride device that is started and stopped by the purchaser or renter of the right to use or
1961     operate the amusement device, skill device, or ride device.

1962          [(141)] (147) (a) "Use" means the exercise of any right or power over tangible personal
1963     property, a product transferred electronically, or a service under Subsection 59-12-103(1),
1964     incident to the ownership or the leasing of that tangible personal property, product transferred
1965     electronically, or service.
1966          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1967     property, a product transferred electronically, or a service in the regular course of business and
1968     held for resale.
1969          [(142)] (148) "Value-added nonvoice data service" means a service:
1970          (a) that otherwise meets the definition of a telecommunications service except that a
1971     computer processing application is used to act primarily for a purpose other than conveyance,
1972     routing, or transmission; and
1973          (b) with respect to which a computer processing application is used to act on data or
1974     information:
1975          (i) code;
1976          (ii) content;
1977          (iii) form; or
1978          (iv) protocol.
1979          [(143)] (149) (a) Subject to Subsection [(143)(b)] (149)(b), "vehicle" means the
1980     following that are required to be titled, registered, or titled and registered:
1981          (i) an aircraft as defined in Section 72-10-102;
1982          (ii) a vehicle as defined in Section 41-1a-102;
1983          (iii) an off-highway vehicle as defined in Section 41-22-2; or
1984          (iv) a vessel as defined in Section 41-1a-102.
1985          (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
1986          (i) a vehicle described in Subsection [(143)(a)] (149)(a); or
1987          (ii) (A) a locomotive;
1988          (B) a freight car;
1989          (C) railroad work equipment; or

1990          (D) other railroad rolling stock.
1991          [(144)] (150) "Vehicle dealer" means a person engaged in the business of buying,
1992     selling, or exchanging a vehicle as defined in Subsection [(143)] (149).
1993          [(145)] (151) (a) "Vertical service" means an ancillary service that:
1994          (i) is offered in connection with one or more telecommunications services; and
1995          (ii) offers an advanced calling feature that allows a customer to:
1996          (A) identify a caller; and
1997          (B) manage multiple calls and call connections.
1998          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1999     conference bridging service.
2000          [(146)] (152) (a) "Voice mail service" means an ancillary service that enables a
2001     customer to receive, send, or store a recorded message.
2002          (b) "Voice mail service" does not include a vertical service that a customer is required
2003     to have in order to utilize a voice mail service.
2004          [(147)] (153) (a) Except as provided in Subsection [(147)(b)] (153)(b), "waste energy
2005     facility" means a facility that generates electricity:
2006          (i) using as the primary source of energy waste materials that would be placed in a
2007     landfill or refuse pit if it were not used to generate electricity, including:
2008          (A) tires;
2009          (B) waste coal;
2010          (C) oil shale; or
2011          (D) municipal solid waste; and
2012          (ii) in amounts greater than actually required for the operation of the facility.
2013          (b) "Waste energy facility" does not include a facility that incinerates:
2014          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
2015          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
2016          [(148)] (154) "Watercraft" means a vessel as defined in Section 73-18-2.
2017          [(149)] (155) "Wind energy" means wind used as the sole source of energy to produce

2018     electricity.
2019          [(150)] (156) "ZIP Code" means a Zoning Improvement Plan Code assigned to a
2020     geographic location by the United States Postal Service.
2021          Section 17. Section 59-12-103 is amended to read:
2022          59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
2023     tax revenues.
2024          (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
2025     sales price for amounts paid or charged for the following transactions:
2026          (a) retail sales of tangible personal property made within the state;
2027          (b) amounts paid for:
2028          (i) telecommunications service, other than mobile telecommunications service, that
2029     originates and terminates within the boundaries of this state;
2030          (ii) mobile telecommunications service that originates and terminates within the
2031     boundaries of one state only to the extent permitted by the Mobile Telecommunications
2032     Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
2033          (iii) an ancillary service associated with a:
2034          (A) telecommunications service described in Subsection (1)(b)(i); or
2035          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
2036          (c) sales of the following for commercial use:
2037          (i) gas;
2038          (ii) electricity;
2039          (iii) heat;
2040          (iv) coal;
2041          (v) fuel oil; or
2042          (vi) other fuels;
2043          (d) sales of the following for residential use:
2044          (i) gas;
2045          (ii) electricity;

2046          (iii) heat;
2047          (iv) coal;
2048          (v) fuel oil; or
2049          (vi) other fuels;
2050          (e) sales of prepared food;
2051          (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
2052     user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
2053     exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
2054     fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
2055     television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
2056     driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
2057     tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
2058     horseback rides, sports activities, or any other amusement, entertainment, recreation,
2059     exhibition, cultural, or athletic activity;
2060          (g) amounts paid or charged for services for repairs or renovations of tangible personal
2061     property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
2062          (i) the tangible personal property; and
2063          (ii) parts used in the repairs or renovations of the tangible personal property described
2064     in Subsection (1)(g)(i), regardless of whether:
2065          (A) any parts are actually used in the repairs or renovations of that tangible personal
2066     property; or
2067          (B) the particular parts used in the repairs or renovations of that tangible personal
2068     property are exempt from a tax under this chapter;
2069          (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
2070     assisted cleaning or washing of tangible personal property;
2071          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
2072     accommodations and services that are regularly rented for less than 30 consecutive days;
2073          (j) amounts paid or charged for laundry or dry cleaning services;

2074          (k) amounts paid or charged for leases or rentals of tangible personal property if within
2075     this state the tangible personal property is:
2076          (i) stored;
2077          (ii) used; or
2078          (iii) otherwise consumed;
2079          (l) amounts paid or charged for tangible personal property if within this state the
2080     tangible personal property is:
2081          (i) stored;
2082          (ii) used; or
2083          (iii) consumed; and
2084          (m) amounts paid or charged for a sale:
2085          (i) (A) of a product transferred electronically; or
2086          (B) of a repair or renovation of a product transferred electronically; and
2087          (ii) regardless of whether the sale provides:
2088          (A) a right of permanent use of the product; or
2089          (B) a right to use the product that is less than a permanent use, including a right:
2090          (I) for a definite or specified length of time; and
2091          (II) that terminates upon the occurrence of a condition.
2092          (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
2093     are imposed on a transaction described in Subsection (1) equal to the sum of:
2094          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
2095          (A) 4.70% plus the rate specified in Subsection (12)(a); and
2096          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
2097     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
2098     through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
2099     State Sales and Use Tax Act; and
2100          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
2101     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211

2102     through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
2103     imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
2104          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2105     transaction under this chapter other than this part.
2106          (b) Except as provided in Subsection [(2)(e) or (f)] (2)(f) or (g) and subject to
2107     Subsection [(2)(k)] (2)(l), a state tax and a local tax are imposed on a transaction described in
2108     Subsection (1)(d) equal to the sum of:
2109          (i) a state tax imposed on the transaction at a tax rate of 2%; and
2110          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2111     transaction under this chapter other than this part.
2112          (c) Except as provided in Subsection [(2)(e) or (f)] (2)(f) or (g), a state tax and a local
2113     tax are imposed on amounts paid or charged for food and food ingredients equal to the sum of:
2114          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
2115     a tax rate of 1.75%; and
2116          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2117     amounts paid or charged for food and food ingredients under this chapter other than this part.
2118          (d) Except as provided in Subsection [(2)(e) or (f)] (2)(f) or (g), a state tax is imposed
2119     on amounts paid or charged for fuel to a common carrier that is a railroad for use in a
2120     locomotive engine at a rate of 4.85%.
2121          (e) (i) (A) If a shared vehicle owner certifies to the commission, on a form prescribed
2122     by the commission, that the shared vehicle is an individual-owned shared vehicle, a tax
2123     imposed under Subsection (2)(a)(i)(A) does not apply to car sharing, a car-sharing program, a
2124     shared vehicle driver, or a shared vehicle owner.
2125          (B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is
2126     required once during the time that the shared vehicle owner owns the shared vehicle.
2127          (C) The commission shall verify that a shared vehicle is an individual-owned shared
2128     vehicle by verifying that the applicable Utah taxes imposed under this chapter were paid on the
2129     purchase of the shared vehicle.

2130          (D) The exception under Subsection (2)(e)(i)(A) applies to a certified
2131     individual-owned shared vehicle shared through a car-sharing program even if non-certified
2132     shared vehicles are also available to be shared through the same car-sharing program.
2133          (ii) A tax imposed under Subsection (2)(a)(i)(B) or (2)(a)(ii) applies to car sharing.
2134          (iii) (A) A car-sharing program may rely in good faith on a shared vehicle owner's
2135     representation that the shared vehicle is an individual-owned shared vehicle certified with the
2136     commission as described in Subsection (2)(e)(i).
2137          (B) If a car-sharing program relies in good faith on a shared vehicle owner's
2138     representation that the shared vehicle is an individual-owned shared vehicle certified with the
2139     commission as described in Subsection (2)(e)(i), the car-sharing program is not liable for any
2140     tax, penalty, fee, or other sanction imposed on the shared vehicle owner.
2141          (iv) If all shared vehicles shared through a car-sharing program are certified as
2142     described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has no obligation
2143     to collect and remit the tax under Subsection (2)(a)(i)(A) for that tax period.
2144          (v) (A) A car-sharing program is not required to list or otherwise identify an
2145     individual-owned shared vehicle on a return or an attachment to a return.
2146          (vi) A car-sharing program shall:
2147          (A) retain tax information for each car-sharing program transaction; and
2148          (B) provide the information described in Subsection (2)(e)(vi)(A) to the commission at
2149     the commission's request.
2150          [(e)] (f) (i) For a bundled transaction that is attributable to food and food ingredients
2151     and tangible personal property other than food and food ingredients, a state tax and a local tax
2152     is imposed on the entire bundled transaction equal to the sum of:
2153          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
2154          (I) the tax rate described in Subsection (2)(a)(i)(A); and
2155          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
2156     Sales and Use Tax Act, if the location of the transaction as determined under Sections
2157     59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,

2158     Additional State Sales and Use Tax Act; and
2159          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
2160     Sales and Use Tax Act, if the location of the transaction as determined under Sections
2161     59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
2162     the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
2163          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
2164     described in Subsection (2)(a)(ii).
2165          (ii) If an optional computer software maintenance contract is a bundled transaction that
2166     consists of taxable and nontaxable products that are not separately itemized on an invoice or
2167     similar billing document, the purchase of the optional computer software maintenance contract
2168     is 40% taxable under this chapter and 60% nontaxable under this chapter.
2169          (iii) Subject to Subsection [(2)(e)(iv)] (2)(f)(iv), for a bundled transaction other than a
2170     bundled transaction described in Subsection [(2)(e)(i)] (2)(f)(i) or (ii):
2171          (A) if the sales price of the bundled transaction is attributable to tangible personal
2172     property, a product, or a service that is subject to taxation under this chapter and tangible
2173     personal property, a product, or service that is not subject to taxation under this chapter, the
2174     entire bundled transaction is subject to taxation under this chapter unless:
2175          (I) the seller is able to identify by reasonable and verifiable standards the tangible
2176     personal property, product, or service that is not subject to taxation under this chapter from the
2177     books and records the seller keeps in the seller's regular course of business; or
2178          (II) state or federal law provides otherwise; or
2179          (B) if the sales price of a bundled transaction is attributable to two or more items of
2180     tangible personal property, products, or services that are subject to taxation under this chapter
2181     at different rates, the entire bundled transaction is subject to taxation under this chapter at the
2182     higher tax rate unless:
2183          (I) the seller is able to identify by reasonable and verifiable standards the tangible
2184     personal property, product, or service that is subject to taxation under this chapter at the lower
2185     tax rate from the books and records the seller keeps in the seller's regular course of business; or

2186          (II) state or federal law provides otherwise.
2187          (iv) For purposes of Subsection [(2)(e)(iii)] (2)(f)(iii), books and records that a seller
2188     keeps in the seller's regular course of business includes books and records the seller keeps in
2189     the regular course of business for nontax purposes.
2190          [(f)] (g) (i) Except as otherwise provided in this chapter and subject to Subsections
2191     [(2)(f)(ii)] (2)(g)(ii) and (iii), if a transaction consists of the sale, lease, or rental of tangible
2192     personal property, a product, or a service that is subject to taxation under this chapter, and the
2193     sale, lease, or rental of tangible personal property, other property, a product, or a service that is
2194     not subject to taxation under this chapter, the entire transaction is subject to taxation under this
2195     chapter unless the seller, at the time of the transaction:
2196          (A) separately states the portion of the transaction that is not subject to taxation under
2197     this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
2198          (B) is able to identify by reasonable and verifiable standards, from the books and
2199     records the seller keeps in the seller's regular course of business, the portion of the transaction
2200     that is not subject to taxation under this chapter.
2201          (ii) A purchaser and a seller may correct the taxability of a transaction if:
2202          (A) after the transaction occurs, the purchaser and the seller discover that the portion of
2203     the transaction that is not subject to taxation under this chapter was not separately stated on an
2204     invoice, bill of sale, or similar document provided to the purchaser because of an error or
2205     ignorance of the law; and
2206          (B) the seller is able to identify by reasonable and verifiable standards, from the books
2207     and records the seller keeps in the seller's regular course of business, the portion of the
2208     transaction that is not subject to taxation under this chapter.
2209          (iii) For purposes of Subsections [(2)(f)(i)] (2)(g)(i) and (ii), books and records that a
2210     seller keeps in the seller's regular course of business includes books and records the seller
2211     keeps in the regular course of business for nontax purposes.
2212          [(g)] (h) (i) If the sales price of a transaction is attributable to two or more items of
2213     tangible personal property, products, or services that are subject to taxation under this chapter

2214     at different rates, the entire purchase is subject to taxation under this chapter at the higher tax
2215     rate unless the seller, at the time of the transaction:
2216          (A) separately states the items subject to taxation under this chapter at each of the
2217     different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
2218          (B) is able to identify by reasonable and verifiable standards the tangible personal
2219     property, product, or service that is subject to taxation under this chapter at the lower tax rate
2220     from the books and records the seller keeps in the seller's regular course of business.
2221          (ii) For purposes of Subsection [(2)(g)(i)] (2)(h)(i), books and records that a seller
2222     keeps in the seller's regular course of business includes books and records the seller keeps in
2223     the regular course of business for nontax purposes.
2224          [(h)] (i) Subject to Subsections [(2)(i) and (j)] (2)(j) and (k), a tax rate repeal or tax rate
2225     change for a tax rate imposed under the following shall take effect on the first day of a calendar
2226     quarter:
2227          (i) Subsection (2)(a)(i)(A);
2228          (ii) Subsection (2)(b)(i);
2229          (iii) Subsection (2)(c)(i); or
2230          (iv) Subsection [(2)(e)(i)(A)(I)] (2)(f)(i)(A)(I).
2231          [(i)] (j) (i) A tax rate increase takes effect on the first day of the first billing period that
2232     begins on or after the effective date of the tax rate increase if the billing period for the
2233     transaction begins before the effective date of a tax rate increase imposed under:
2234          (A) Subsection (2)(a)(i)(A);
2235          (B) Subsection (2)(b)(i);
2236          (C) Subsection (2)(c)(i); or
2237          (D) Subsection [(2)(e)(i)(A)(I)] (2)(f)(i)(A)(I).
2238          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
2239     statement for the billing period is rendered on or after the effective date of the repeal of the tax
2240     or the tax rate decrease imposed under:
2241          (A) Subsection (2)(a)(i)(A);

2242          (B) Subsection (2)(b)(i);
2243          (C) Subsection (2)(c)(i); or
2244          (D) Subsection [(2)(e)(i)(A)(I)] (2)(f)(i)(A)(I).
2245          [(j)] (k) (i) For a tax rate described in Subsection [(2)(j)(ii)] (2)(k)(ii), if a tax due on a
2246     catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, a
2247     tax rate repeal or change in a tax rate takes effect:
2248          (A) on the first day of a calendar quarter; and
2249          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
2250          (ii) Subsection [(2)(j)(i)] (2)(k)(i) applies to the tax rates described in the following:
2251          (A) Subsection (2)(a)(i)(A);
2252          (B) Subsection (2)(b)(i);
2253          (C) Subsection (2)(c)(i); or
2254          (D) Subsection [(2)(e)(i)(A)(I)] (2)(f)(i)(A)(I).
2255          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2256     the commission may by rule define the term "catalogue sale."
2257          [(k)] (l) (i) For a location described in Subsection [(2)(k)(ii)] (2)(l)(ii), the commission
2258     shall determine the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel
2259     based on the predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the
2260     location.
2261          (ii) Subsection [(2)(k)(i)] (2)(l)(i) applies to a location where gas, electricity, heat, coal,
2262     fuel oil, or other fuel is furnished through a single meter for two or more of the following uses:
2263          (A) a commercial use;
2264          (B) an industrial use; or
2265          (C) a residential use.
2266          (3) (a) The following state taxes shall be deposited into the General Fund:
2267          (i) the tax imposed by Subsection (2)(a)(i)(A);
2268          (ii) the tax imposed by Subsection (2)(b)(i);
2269          (iii) the tax imposed by Subsection (2)(c)(i); and

2270          (iv) the tax imposed by Subsection [(2)(e)(i)(A)(I)] (2)(f)(i)(A)(I).
2271          (b) The following local taxes shall be distributed to a county, city, or town as provided
2272     in this chapter:
2273          (i) the tax imposed by Subsection (2)(a)(ii);
2274          (ii) the tax imposed by Subsection (2)(b)(ii);
2275          (iii) the tax imposed by Subsection (2)(c)(ii); and
2276          (iv) the tax imposed by Subsection [(2)(e)(i)(B)] (2)(f)(i)(B).
2277          (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
2278     Fund.
2279          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2280     2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
2281     through (g):
2282          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
2283          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
2284          (B) for the fiscal year; or
2285          (ii) $17,500,000.
2286          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
2287     described in Subsection (4)(a) shall be transferred each year as designated sales and use tax
2288     revenue to the Department of Natural Resources to:
2289          (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
2290     protect sensitive plant and animal species; or
2291          (B) award grants, up to the amount authorized by the Legislature in an appropriations
2292     act, to political subdivisions of the state to implement the measures described in Subsections
2293     79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
2294          (ii) Money transferred to the Department of Natural Resources under Subsection
2295     (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
2296     person to list or attempt to have listed a species as threatened or endangered under the
2297     Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.

2298          (iii) At the end of each fiscal year:
2299          (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
2300     Water Resources Conservation and Development Fund created in Section 73-10-24;
2301          (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2302     Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
2303          (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2304     Drinking Water Loan Program Subaccount created in Section 73-10c-5.
2305          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
2306     Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
2307     created in Section 4-18-106.
2308          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
2309     in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to
2310     the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for
2311     the adjudication of water rights.
2312          (ii) At the end of each fiscal year:
2313          (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
2314     Water Resources Conservation and Development Fund created in Section 73-10-24;
2315          (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2316     Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
2317          (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2318     Drinking Water Loan Program Subaccount created in Section 73-10c-5.
2319          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
2320     in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
2321     Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
2322          (ii) In addition to the uses allowed of the Water Resources Conservation and
2323     Development Fund under Section 73-10-24, the Water Resources Conservation and
2324     Development Fund may also be used to:
2325          (A) conduct hydrologic and geotechnical investigations by the Division of Water

2326     Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
2327     quantifying surface and ground water resources and describing the hydrologic systems of an
2328     area in sufficient detail so as to enable local and state resource managers to plan for and
2329     accommodate growth in water use without jeopardizing the resource;
2330          (B) fund state required dam safety improvements; and
2331          (C) protect the state's interest in interstate water compact allocations, including the
2332     hiring of technical and legal staff.
2333          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2334     in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
2335     created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
2336          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2337     in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
2338     created in Section 73-10c-5 for use by the Division of Drinking Water to:
2339          (i) provide for the installation and repair of collection, treatment, storage, and
2340     distribution facilities for any public water system, as defined in Section 19-4-102;
2341          (ii) develop underground sources of water, including springs and wells; and
2342          (iii) develop surface water sources.
2343          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2344     2006, the difference between the following amounts shall be expended as provided in this
2345     Subsection (5), if that difference is greater than $1:
2346          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
2347     fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
2348          (ii) $17,500,000.
2349          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
2350          (A) transferred each fiscal year to the Department of Natural Resources as designated
2351     sales and use tax revenue; and
2352          (B) expended by the Department of Natural Resources for watershed rehabilitation or
2353     restoration.

2354          (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
2355     tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation
2356     and Development Fund created in Section 73-10-24.
2357          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
2358     remaining difference described in Subsection (5)(a) shall be:
2359          (A) transferred each fiscal year to the Division of Water Resources as designated sales
2360     and use tax revenue; and
2361          (B) expended by the Division of Water Resources for cloud-seeding projects
2362     authorized by Title 73, Chapter 15, Modification of Weather.
2363          (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
2364     tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation
2365     and Development Fund created in Section 73-10-24.
2366          (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
2367     remaining difference described in Subsection (5)(a) shall be deposited into the Water
2368     Resources Conservation and Development Fund created in Section 73-10-24 for use by the
2369     Division of Water Resources for:
2370          (i) preconstruction costs:
2371          (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
2372     26, Bear River Development Act; and
2373          (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
2374     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
2375          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
2376     Chapter 26, Bear River Development Act;
2377          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
2378     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
2379          (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
2380     Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
2381          (e) After making the transfers required by Subsections (5)(b) and (c), 15% of the

2382     remaining difference described in Subsection (5)(a) shall be deposited each year into the Water
2383     Rights Restricted Account created by Section 73-2-1.6.
2384          (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
2385     amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
2386     (1) for the fiscal year shall be deposited as follows:
2387          (a) for fiscal year 2020-21 only:
2388          (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
2389     Transportation Investment Fund of 2005 created by Section 72-2-124; and
2390          (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
2391     Water Infrastructure Restricted Account created by Section 73-10g-103; and
2392          (b) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
2393     in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
2394     created by Section 73-10g-103.
2395          (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
2396     Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
2397     2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
2398     created by Section 72-2-124:
2399          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
2400     the revenues collected from the following taxes, which represents a portion of the
2401     approximately 17% of sales and use tax revenues generated annually by the sales and use tax
2402     on vehicles and vehicle-related products:
2403          (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
2404          (B) the tax imposed by Subsection (2)(b)(i);
2405          (C) the tax imposed by Subsection (2)(c)(i); and
2406          (D) the tax imposed by Subsection [(2)(e)(i)(A)(I)] (2)(f)(i)(A)(I); plus
2407          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
2408     current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
2409     (D) that exceeds the amount collected from the sales and use taxes described in Subsections

2410     (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
2411          (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
2412     the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
2413     lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
2414     generated in the current fiscal year than the total percentage of sales and use taxes deposited in
2415     the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
2416     (7)(a) equal to the product of:
2417          (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
2418     previous fiscal year; and
2419          (B) the total sales and use tax revenue generated by the taxes described in Subsections
2420     (7)(a)(i)(A) through (D) in the current fiscal year.
2421          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
2422     Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
2423     described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
2424     Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
2425     Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
2426          (iii) Subject to Subsection (7)(b)(iv)(E), in all subsequent fiscal years after a year in
2427     which 17% of the revenues collected from the sales and use taxes described in Subsections
2428     (7)(a)(i)(A) through (D) was deposited under Subsection (7)(a), the Division of Finance shall
2429     annually deposit 17% of the revenues collected from the sales and use taxes described in
2430     Subsections (7)(a)(i)(A) through (D) in the current fiscal year under Subsection (7)(a).
2431          (iv) (A) As used in this Subsection (7)(b)(iv), "additional growth revenue" means the
2432     amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
2433     the relevant revenue collected in the previous fiscal year.
2434          (B) As used in this Subsection (7)(b)(iv), "combined amount" means the combined
2435     total amount of money deposited into the Cottonwood Canyons fund under Subsections
2436     (7)(b)(iv)(F) and (8)(d)(vi) in any single fiscal year.
2437          (C) As used in this Subsection (7)(b)(iv), "Cottonwood Canyons fund" means the

2438     Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
2439          (D) As used in this Subsection (7)(b)(iv), "relevant revenue" means the portion of taxes
2440     listed under Subsection (3)(a) that equals 17% of the revenue collected from taxes described in
2441     Subsections (7)(a)(i)(A) through (D).
2442          (E) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
2443     reduce the deposit under Subsection (7)(b)(iii) into the Transportation Investment Fund of 2005
2444     by an amount equal to the amount of the deposit under this Subsection (7)(b)(iv) to the
2445     Cottonwood Canyons fund in the previous fiscal year plus 25% of additional growth revenue,
2446     subject to the limit in Subsection (7)(b)(iv)(F).
2447          (F) The commission shall annually deposit the amount described in Subsection
2448     (7)(b)(iv)(E) into the Cottonwood Canyons fund, subject to an annual maximum combined
2449     amount for any single fiscal year of $20,000,000.
2450          (G) If the amount of relevant revenue declines in a fiscal year compared to the previous
2451     fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
2452     Canyons fund under this Subsection (7)(b)(iv) in the same proportion as the decline in relevant
2453     revenue.
2454          (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
2455     Subsections (6) and (7), and subject to Subsections (8)(b) and (d)(v), for a fiscal year beginning
2456     on or after July 1, 2018, the commission shall annually deposit into the Transportation
2457     Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under
2458     Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the following
2459     taxes:
2460          (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
2461          (ii) the tax imposed by Subsection (2)(b)(i);
2462          (iii) the tax imposed by Subsection (2)(c)(i); and
2463          (iv) the tax imposed by Subsection [(2)(e)(i)(A)(I)] (2)(f)(i)(A)(I).
2464          (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
2465     reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by

2466     an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
2467     the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
2468     or use in this state that exceeds 29.4 cents per gallon.
2469          (c) The commission shall annually deposit the amount described in Subsection (8)(b)
2470     into the Transit Transportation Investment Fund created in Section 72-2-124.
2471          (d) (i) As used in this Subsection (8)(d), "additional growth revenue" means the
2472     amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
2473     the relevant revenue collected in the previous fiscal year.
2474          (ii) As used in this Subsection (8)(d), "combined amount" means the combined total
2475     amount of money deposited into the Cottonwood Canyons fund under Subsections (7)(b)(iv)(F)
2476     and (8)(d)(vi) in any single fiscal year.
2477          (iii) As used in this Subsection (8)(d), "Cottonwood Canyons fund" means the
2478     Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
2479          (iv) As used in this Subsection (8)(d), "relevant revenue" means the portion of taxes
2480     listed under Subsection (3)(a) that equals 3.68% of the revenue collected from taxes described
2481     in Subsections (8)(a)(i) through (iv).
2482          (v) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
2483     reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
2484     an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
2485     Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
2486     limit in Subsection (8)(d)(vi).
2487          (vi) The commission shall annually deposit the amount described in Subsection
2488     (8)(d)(v) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
2489     for any single fiscal year of $20,000,000.
2490          (vii) If the amount of relevant revenue declines in a fiscal year compared to the
2491     previous fiscal year, the commission shall decrease the amount of the contribution to the
2492     Cottonwood Canyons fund under this Subsection (8)(d) in the same proportion as the decline in
2493     relevant revenue.

2494          (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2495     2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
2496     created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
2497          (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(b),
2498     and in addition to any amounts deposited under Subsections (6), (7), and (8), the Division of
2499     Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
2500     72-2-124 the amount of revenue described as follows:
2501          (i) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a .05%
2502     tax rate on the transactions described in Subsection (1); and
2503          (ii) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
2504     tax rate on the transactions described in Subsection (1).
2505          (b) For purposes of Subsection (10)(a), the Division of Finance may not deposit into
2506     the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
2507     charged for food and food ingredients, except for tax revenue generated by a bundled
2508     transaction attributable to food and food ingredients and tangible personal property other than
2509     food and food ingredients described in Subsection [(2)(e)] (2)(f).
2510          (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
2511     fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
2512     construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
2513     Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
2514     generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
2515     created in Section 63N-2-512.
2516          (12) (a) The rate specified in this subsection is 0.15%.
2517          (b) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
2518     beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
2519     rate described in Subsection (12)(a) on the transactions that are subject to the sales and use tax
2520     under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section
2521     26-36b-208.

2522          (13) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2523     2020-21, the Division of Finance shall deposit $200,000 into the General Fund as a dedicated
2524     credit solely for use of the Search and Rescue Financial Assistance Program created in, and
2525     expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
2526          (14) (a) For each fiscal year beginning with fiscal year 2020-21, the Division of
2527     Finance shall annually transfer $1,813,400 of the revenue deposited into the Transportation
2528     Investment Fund of 2005 under Subsections (6) through (8) to the General Fund.
2529          (b) If the total revenue deposited into the Transportation Investment Fund of 2005
2530     under Subsections (6) through (8) is less than $1,813,400 for a fiscal year, the Division of
2531     Finance shall transfer the total revenue deposited into the Transportation Investment Fund of
2532     2005 under Subsections (6) through (8) during the fiscal year to the General Fund.
2533          (15) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610,
2534     beginning the first day of the calendar quarter one year after the sales and use tax boundary for
2535     a housing and transit reinvestment zone is established, the commission, at least annually, shall
2536     transfer an amount equal to 15% of the sales and use tax increment within an established sales
2537     and use tax boundary, as defined in Section 63N-3-602, into the Transit Transportation
2538     Investment Fund created in Section 72-2-124.
2539          (16) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
2540     beginning on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure
2541     Restricted Account, created in Section 51-9-902, a portion of the taxes listed under Subsection
2542     (3)(a) equal to 1% of the revenues collected from the following sales and use taxes:
2543          (a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
2544          (b) the tax imposed by Subsection (2)(b)(i);
2545          (c) the tax imposed by Subsection (2)(c)(i); and
2546          (d) the tax imposed by Subsection [(2)(e)(i)(A)(I)] (2)(f)(i)(A)(I).
2547          Section 18. Section 59-12-107.6 is amended to read:
2548          59-12-107.6. Marketplace facilitator collection, remittance, and payment of sales
2549     tax obligation -- Marketplace seller collection, remittance, and payment of sales tax

2550     obligation -- Liability for collection.
2551          (1) A marketplace facilitator shall pay or collect and remit [sales and use] taxes
2552     imposed by this chapter in accordance with Section 59-12-107:
2553          (a) if the marketplace facilitator meets one or more of the criteria provided for in
2554     Subsection 59-12-107(2)(a) or (b); and
2555          (b) on the sales the marketplace facilitator made on the marketplace facilitator's own
2556     behalf.
2557          (2) (a) A marketplace facilitator shall pay or collect and remit [sales and use] taxes
2558     imposed by this chapter in accordance with Subsection (3) if the marketplace facilitator, in the
2559     previous calendar year or the current calendar year, makes sales of tangible personal property,
2560     products transferred electronically, or services on the marketplace facilitator's own behalf or
2561     facilitates sales on behalf of one or more marketplace sellers:
2562          (i) that exceed $100,000; or
2563          (ii) in 200 or more separate transactions.
2564          (b) For purposes of determining if a marketplace facilitator meets or exceeds one or
2565     both thresholds described in this Subsection (2), a marketplace facilitator shall separately total:
2566          (i) the marketplace facilitator's sales; and
2567          (ii) any sales the marketplace facilitator makes or facilitates for a marketplace seller.
2568          (c) A marketplace facilitator without a physical presence in this state shall begin
2569     collecting and remitting the [sales and use] taxes imposed by this chapter no later than the first
2570     day of the calendar quarter that is at least 60 days after the day on which the marketplace
2571     facilitator meets or exceeds either threshold described in Subsection (2)(a).
2572          (3) A marketplace facilitator described in Subsection (2) shall pay or collect and remit
2573     [sales and use] taxes imposed by this chapter for each sale that the marketplace facilitator:
2574          (a) makes on the marketplace facilitator's own behalf; or
2575          (b) makes or facilitates on behalf of a marketplace seller, regardless of:
2576          (i) whether the marketplace seller has an obligation to pay or collect and remit [sales
2577     and use] taxes under Section 59-12-107;

2578          (ii) whether the marketplace seller would have been required to pay or collect and
2579     remit [sales and use] taxes under Section 59-12-107 if the marketplace facilitator had not
2580     facilitated the sale; or
2581          (iii) the amount of the sales price or the purchase price that accrues to or benefits the
2582     marketplace facilitator, the marketplace seller, or any other person.
2583          (4) A marketplace facilitator shall comply with the procedures and requirements in this
2584     chapter and Chapter 1, General Taxation Policies, for sellers required to pay or collect and
2585     remit [sales and use] taxes except that the marketplace facilitator shall segregate, in the
2586     marketplace facilitator's books and records:
2587          (a) the sales that the marketplace facilitator makes on the marketplace facilitator's own
2588     behalf; and
2589          (b) the sales that the marketplace facilitator makes or facilitates on behalf of one or
2590     more marketplace sellers.
2591          (5) (a) The commission may audit the marketplace facilitator for sales made or
2592     facilitated through the marketplace facilitator's marketplace on behalf of one or more
2593     marketplace sellers.
2594          (b) The commission may not audit the marketplace seller for sales made or facilitated
2595     through the marketplace facilitator's marketplace on the marketplace seller's behalf.
2596          (6) Nothing in this section prohibits a marketplace facilitator from providing in a
2597     marketplace facilitator's agreement with a marketplace seller for the recovery of [sales and use]
2598     taxes, and any related interest or penalties to the extent that a tax, interest, or penalty is
2599     assessed by the state in an audit of the marketplace facilitator on a retail sale:
2600          (a) that a marketplace facilitator makes or facilitates on behalf of a marketplace seller;
2601     and
2602          (b) for which the marketplace facilitator relied on incorrect or incomplete information
2603     provided by the marketplace seller.
2604          (7) (a) Subject to Subsections (7)(b) and (c), a marketplace facilitator is not liable for
2605     failing to collect the taxes under this chapter for a sale on which the marketplace facilitator

2606     failed to collect [sales and use] taxes if the marketplace facilitator demonstrates, to the
2607     satisfaction of the commission, that:
2608          (i) the marketplace facilitator made or facilitated the sale through the marketplace
2609     facilitator's marketplace on or before December 31, 2022;
2610          (ii) the marketplace facilitator made or facilitated the sale on behalf of a marketplace
2611     seller and not on behalf of the marketplace facilitator;
2612          (iii) the marketplace facilitator and the marketplace seller are not affiliates; and
2613          (iv) the failure to collect [sales and use] taxes was due to a good faith error other than
2614     an error in sourcing.
2615          (b) For purposes of Subsection (7)(a):
2616          (i) for sales made or facilitated during the 2019 or 2020 calendar year, the marketplace
2617     facilitator is not liable for the amount the marketplace facilitator fails to collect due to error that
2618     is equal to the error rate, but not to exceed a 7% error rate;
2619          (ii) for sales made or facilitated during the 2021 calendar year, the marketplace
2620     facilitator is not liable for the amount the marketplace facilitator fails to collect due to error that
2621     is equal to the error rate, but not to exceed a 5% error rate; and
2622          (iii) for sales made or facilitated during the 2022 calendar year, the marketplace
2623     facilitator is not liable for the amount the marketplace facilitator fails to collect due to error that
2624     is equal to the error rate, but not to exceed a 3% error rate.
2625          (c) The commission shall calculate the percentages described in Subsection (7)(b):
2626          (i) using the total [sales and use] taxes due on sales that:
2627          (A) a marketplace facilitator made or facilitated in this state on behalf of one or more
2628     marketplace sellers during the calendar year that the sale for which the marketplace facilitator
2629     seeks relief was made or facilitated; and
2630          (B) are sourced to the state; and
2631          (ii) not including sales that the marketplace facilitator or the marketplace facilitator's
2632     affiliates directly made during the same calendar year.
2633          (8) A marketplace seller shall pay or collect and remit [sales and use] taxes imposed by

2634     this chapter for a sale of tangible personal property, a product transferred electronically, or a
2635     service that the marketplace seller makes other than through a marketplace facilitator if:
2636          (a) the sale is sourced to this state; and
2637          (b) the marketplace seller's sales in this state, other than through a marketplace
2638     facilitator, in the previous calendar year or the current calendar year:
2639          (i) exceed $100,000; or
2640          (ii) occur in 200 or more separate transactions.
2641          (9) (a) A marketplace seller may not pay or collect and remit [sales and use] taxes
2642     imposed by this chapter for any sale for which a marketplace facilitator is required to pay or
2643     collect and remit.
2644          (b) A marketplace seller is not liable for a marketplace facilitator's failure to pay or
2645     collect and remit, or the marketplace facilitator's underpayment of, [sales and use] taxes
2646     imposed by this chapter for any sale for which a marketplace facilitator is required to pay or
2647     collect and remit the taxes imposed by this chapter.
2648          (10) (a) A purchaser of tangible personal property, a product transferred electronically,
2649     or a service may file a claim for a refund with the marketplace facilitator if the purchaser
2650     overpaid [sales and use] taxes imposed under this chapter.
2651          (b) No person may bring a class action against a marketplace facilitator in any court of
2652     the state on behalf of purchasers arising from or in any way related to an overpayment of [sales
2653     and use] taxes collected and remitted on sales made or facilitated by the marketplace facilitator
2654     on behalf of a marketplace seller, regardless of whether such claim is characterized as a tax
2655     refund claim.
2656          (11) Nothing in this section affects the obligation of a purchaser to remit the use tax
2657     described in Subsection 59-12-107(2)(f) on any sale for which a marketplace facilitator or
2658     marketplace seller failed to collect and remit a tax imposed by this chapter.
2659          Section 19. Section 59-12-602 is amended to read:
2660          59-12-602. Definitions.
2661          As used in this part:

2662          (1) (a) Subject to Subsection (1)(b), "airport facility" means an airport of regional
2663     significance, as defined by the Transportation Commission by rule made in accordance with
2664     Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
2665          (b) "Airport facility" includes:
2666          (i) an appurtenance to an airport, including a fixed guideway that provides
2667     transportation service to or from the airport;
2668          (ii) a control tower, including a radar system;
2669          (iii) a public area of an airport; or
2670          (iv) a terminal facility.
2671          (2) "All-terrain type I vehicle" means the same as that term is defined in Section
2672     41-22-2.
2673          (3) "All-terrain type II vehicle" means the same as that term is defined in Section
2674     41-22-2.
2675          (4) "All-terrain type III vehicle" means the same as that term is defined in Section
2676     41-22-2.
2677          (5) "Convention facility" means any publicly owned or operated convention center,
2678     sports arena, or other facility at which conventions, conferences, and other gatherings are held
2679     and whose primary business or function is to host such conventions, conferences, and other
2680     gatherings.
2681          (6) "Cultural facility" means any publicly owned or operated museum, theater, art
2682     center, music hall, or other cultural or arts facility.
2683          (7) (a) Except as provided in Subsection (7)(b), "off-highway vehicle" means any
2684     snowmobile, all-terrain type I vehicle, all-terrain type II vehicle, all-terrain type III vehicle, or
2685     motorcycle.
2686          (b) "Off-highway vehicle" does not include a vehicle that is a motor vehicle under
2687     Section 41-1a-102.
2688          (8) "Motorcycle" means the same as that term is defined in Section 41-22-2.
2689          (9) "Recreation facility" or "tourist facility" means any publicly owned or operated

2690     park, campground, marina, dock, golf course, water park, historic park, monument,
2691     planetarium, zoo, bicycle trails, and other recreation or tourism-related facility.
2692          (10) (a) Except as provided in Subsection (10)(c), "recreational vehicle" means a
2693     vehicular unit other than a mobile home, primarily designed as a temporary dwelling for travel,
2694     recreational, or vacation use, that is pulled by another vehicle.
2695          (b) "Recreational vehicle" includes:
2696          (i) a travel trailer;
2697          (ii) a camping trailer; and
2698          (iii) a fifth wheel trailer.
2699          (c) "Recreational vehicle" does not include a vehicle that is a motor vehicle under
2700     Section 41-1a-102.
2701          (11) (a) "Restaurant" includes any coffee shop, cafeteria, luncheonette, soda fountain,
2702     or fast-food service where food is prepared for immediate consumption.
2703          (b) "Restaurant" does not include:
2704          (i) any retail establishment whose primary business or function is the sale of fuel or
2705     food items for off-premise, but not immediate, consumption; and
2706          (ii) a theater that sells food items, but not a dinner theater.
2707          (12) (a) "Short-term rental" means a lease or rental that is 30 days or less.
2708          (b) "Short-term rental" does not include car sharing as that term is defined in Section
2709     13-48a-101.
2710          (13) "Snowmobile" means the same as that term is defined in Section 41-22-2.
2711          (14) "Travel trailer," "camping trailer," or "fifth wheel trailer" means a portable vehicle
2712     without motive power, designed as a temporary dwelling for travel, recreational, or vacation
2713     use that does not require a special highway movement permit when drawn by a self-propelled
2714     motor vehicle.
2715          Section 20. Section 59-12-603 is amended to read:
2716          59-12-603. County tax -- Bases -- Rates -- Use of revenue -- Adoption of ordinance
2717     required -- Advisory board -- Administration -- Collection -- Administrative charge --

2718     Distribution -- Enactment or repeal of tax or tax rate change -- Effective date -- Notice
2719     requirements.
2720          (1) (a) In addition to any other taxes, a county legislative body may, as provided in this
2721     part, impose a tax as follows:
2722          (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
2723     on all short-term rentals of motor vehicles, except for short-term rentals of motor vehicles
2724     made for the purpose of temporarily replacing a person's motor vehicle that is being repaired
2725     pursuant to a repair or an insurance agreement; and
2726          (B) a county legislative body of any county imposing a tax under Subsection
2727     (1)(a)(i)(A) may, in addition to imposing the tax under Subsection (1)(a)(i)(A), impose a tax of
2728     not to exceed 4% on all short-term rentals of motor vehicles, except for short-term rentals of
2729     motor vehicles made for the purpose of temporarily replacing a person's motor vehicle that is
2730     being repaired pursuant to a repair or an insurance agreement;
2731          (ii) beginning on January 1, 2021, a county legislative body of any county may impose
2732     a tax of not to exceed 7% on all short-term rentals of off-highway vehicles and recreational
2733     vehicles;
2734          (iii) a county legislative body of any county may impose a tax of not to exceed 1% of
2735     all sales of the following that are sold by a restaurant:
2736          (A) alcoholic beverages;
2737          (B) food and food ingredients; or
2738          (C) prepared food; [and]
2739          (iv) a county legislative body of a county of the first class may impose a tax of not to
2740     exceed .5% on charges for the accommodations and services described in Subsection
2741     59-12-103(1)(i)[.]; and
2742          (v) beginning on July 1, 2023, if a county legislative body of any county imposes a tax
2743     under Subsection (1)(a)(i), a tax at the same rate applies to car sharing, except for:
2744          (A) car sharing for the purpose of temporarily replacing a person's motor vehicle that is
2745     being repaired pursuant to a repair or an insurance agreement; and

2746          (B) car sharing for more than 30 days.
2747          (b) A tax imposed under Subsection (1)(a) is subject to the audit provisions of Section
2748     17-31-5.5.
2749          (2) (a) Subject to Subsection (2)(b), a county may use revenue from the imposition of a
2750     tax under Subsection (1) for:
2751          (i) financing tourism promotion; and
2752          (ii) the development, operation, and maintenance of:
2753          (A) an airport facility;
2754          (B) a convention facility;
2755          (C) a cultural facility;
2756          (D) a recreation facility; or
2757          (E) a tourist facility.
2758          (b) A county of the first class shall expend at least $450,000 each year of the revenue
2759     from the imposition of a tax authorized by Subsection (1)(a)(iv) within the county to fund a
2760     marketing and ticketing system designed to:
2761          (i) promote tourism in ski areas within the county by persons that do not reside within
2762     the state; and
2763          (ii) combine the sale of:
2764          (A) ski lift tickets; and
2765          (B) accommodations and services described in Subsection 59-12-103(1)(i).
2766          (3) A tax imposed under this part may be pledged as security for bonds, notes, or other
2767     evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local
2768     Government Bonding Act, or a community reinvestment agency under Title 17C, Chapter 1,
2769     Part 5, Agency Bonds, to finance:
2770          (a) an airport facility;
2771          (b) a convention facility;
2772          (c) a cultural facility;
2773          (d) a recreation facility; or

2774          (e) a tourist facility.
2775          (4) (a) To impose a tax under Subsection (1), the county legislative body shall adopt an
2776     ordinance imposing the tax.
2777          (b) The ordinance under Subsection (4)(a) shall include provisions substantially the
2778     same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
2779     those items and sales described in Subsection (1).
2780          (c) The name of the county as the taxing agency shall be substituted for that of the state
2781     where necessary, and an additional license is not required if one has been or is issued under
2782     Section 59-12-106.
2783          (5) To maintain in effect a tax ordinance adopted under this part, each county
2784     legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
2785     Tax Collection, adopt amendments to the county's tax ordinance to conform with the applicable
2786     amendments to Part 1, Tax Collection.
2787          (6) (a) Regardless of whether a county of the first class creates a tourism tax advisory
2788     board in accordance with Section 17-31-8, the county legislative body of the county of the first
2789     class shall create a tax advisory board in accordance with this Subsection (6).
2790          (b) The tax advisory board shall be composed of nine members appointed as follows:
2791          (i) four members shall be residents of a county of the first class appointed by the
2792     county legislative body of the county of the first class; and
2793          (ii) subject to Subsections (6)(c) and (d), five members shall be mayors of cities or
2794     towns within the county of the first class appointed by an organization representing all mayors
2795     of cities and towns within the county of the first class.
2796          (c) Five members of the tax advisory board constitute a quorum.
2797          (d) The county legislative body of the county of the first class shall determine:
2798          (i) terms of the members of the tax advisory board;
2799          (ii) procedures and requirements for removing a member of the tax advisory board;
2800          (iii) voting requirements, except that action of the tax advisory board shall be by at
2801     least a majority vote of a quorum of the tax advisory board;

2802          (iv) chairs or other officers of the tax advisory board;
2803          (v) how meetings are to be called and the frequency of meetings; and
2804          (vi) the compensation, if any, of members of the tax advisory board.
2805          (e) The tax advisory board under this Subsection (6) shall advise the county legislative
2806     body of the county of the first class on the expenditure of revenue collected within the county
2807     of the first class from the taxes described in Subsection (1)(a).
2808          (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
2809     shall be administered, collected, and enforced in accordance with:
2810          (A) the same procedures used to administer, collect, and enforce the tax under:
2811          (I) Part 1, Tax Collection; or
2812          (II) Part 2, Local Sales and Use Tax Act; and
2813          (B) Chapter 1, General Taxation Policies.
2814          (ii) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
2815     Subsections 59-12-205(2) through (6).
2816          (b) Except as provided in Subsection (7)(c):
2817          (i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
2818     commission shall distribute the revenue to the county imposing the tax; and
2819          (ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenue
2820     according to the distribution formula provided in Subsection (8).
2821          (c) The commission shall retain and deposit an administrative charge in accordance
2822     with Section 59-1-306 from the revenue the commission collects from a tax under this part.
2823          (8) The commission shall distribute the revenue generated by the tax under Subsection
2824     (1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according to the
2825     following formula:
2826          (a) the commission shall distribute 70% of the revenue based on the percentages
2827     generated by dividing the revenue collected by each county under Subsection (1)(a)(i)(B) by
2828     the total revenue collected by all counties under Subsection (1)(a)(i)(B); and
2829          (b) the commission shall distribute 30% of the revenue based on the percentages

2830     generated by dividing the population of each county collecting a tax under Subsection
2831     (1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
2832          (9) (a) For purposes of this Subsection (9):
2833          (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
2834     County Annexation.
2835          (ii) "Annexing area" means an area that is annexed into a county.
2836          (b) (i) Except as provided in Subsection (9)(c), if a county enacts or repeals a tax or
2837     changes the rate of a tax under this part, the enactment, repeal, or change shall take effect:
2838          (A) on the first day of a calendar quarter; and
2839          (B) after a 90-day period beginning on the day on which the commission receives
2840     notice meeting the requirements of Subsection (9)(b)(ii) from the county.
2841          (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
2842          (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
2843          (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
2844          (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
2845          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
2846     (9)(b)(ii)(A), the rate of the tax.
2847          (c) (i) If the billing period for a transaction begins before the effective date of the
2848     enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
2849     the tax or the tax rate increase shall take effect on the first day of the first billing period that
2850     begins after the effective date of the enactment of the tax or the tax rate increase.
2851          (ii) If the billing period for a transaction begins before the effective date of the repeal
2852     of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
2853     rate decrease shall take effect on the first day of the last billing period that began before the
2854     effective date of the repeal of the tax or the tax rate decrease.
2855          (d) (i) Except as provided in Subsection (9)(e), if the annexation will result in the
2856     enactment, repeal, or change in the rate of a tax under this part for an annexing area, the
2857     enactment, repeal, or change shall take effect:

2858          (A) on the first day of a calendar quarter; and
2859          (B) after a 90-day period beginning on the day on which the commission receives
2860     notice meeting the requirements of Subsection (9)(d)(ii) from the county that annexes the
2861     annexing area.
2862          (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
2863          (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
2864     repeal, or change in the rate of a tax under this part for the annexing area;
2865          (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
2866          (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
2867          (D) if the county enacts the tax or changes the rate of the tax described in Subsection
2868     (9)(d)(ii)(A), the rate of the tax.
2869          (e) (i) If the billing period for a transaction begins before the effective date of the
2870     enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
2871     the tax or the tax rate increase shall take effect on the first day of the first billing period that
2872     begins after the effective date of the enactment of the tax or the tax rate increase.
2873          (ii) If the billing period for a transaction begins before the effective date of the repeal
2874     of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
2875     rate decrease shall take effect on the first day of the last billing period that began before the
2876     effective date of the repeal of the tax or the tax rate decrease.
2877          Section 21. Section 59-12-1201 is amended to read:
2878          59-12-1201. Motor vehicle rental tax -- Rate -- Exemptions -- Administration,
2879     collection, and enforcement of tax -- Administrative charge -- Deposits.
2880          (1) (a) Except as provided in [Subsection (3)] Subsections (3) and (4), there is imposed
2881     a tax of 2.5% on all short-term leases and rentals of motor vehicles not exceeding 30 days.
2882          (b) The tax imposed in this section is in addition to all other state, county, or municipal
2883     fees and taxes imposed on rentals of motor vehicles.
2884          (2) (a) Subject to Subsection (2)(b), a tax rate repeal or tax rate change for the tax
2885     imposed under Subsection (1) shall take effect on the first day of a calendar quarter.

2886          (b) (i) For a transaction subject to a tax under Subsection (1), a tax rate increase shall
2887     take effect on the first day of the first billing period:
2888          (A) that begins after the effective date of the tax rate increase; and
2889          (B) if the billing period for the transaction begins before the effective date of a tax rate
2890     increase imposed under Subsection (1).
2891          (ii) For a transaction subject to a tax under Subsection (1), the repeal of a tax or a tax
2892     rate decrease shall take effect on the first day of the last billing period:
2893          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
2894     and
2895          (B) if the billing period for the transaction begins before the effective date of the repeal
2896     of the tax or the tax rate decrease imposed under Subsection (1).
2897          (3) Beginning on July 1, 2023, a tax imposed under Subsection (1) applies at the same
2898     rate to car sharing, except for:
2899          (a) car sharing for the purpose of temporarily replacing a person's motor vehicle that is
2900     being repaired pursuant to a repair or an insurance agreement; and
2901          (b) car sharing for more than 30 days.
2902          [(3)] (4) A motor vehicle is exempt from the tax imposed under Subsection (1) if:
2903          (a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;
2904          (b) the motor vehicle is rented as a personal household goods moving van; or
2905          (c) the lease or rental of the motor vehicle is made for the purpose of temporarily
2906     replacing a person's motor vehicle that is being repaired pursuant to a repair agreement or an
2907     insurance agreement.
2908          [(4)] (5) (a) (i) The tax authorized under this section shall be administered, collected,
2909     and enforced in accordance with:
2910          (A) the same procedures used to administer, collect, and enforce the tax under Part 1,
2911     Tax Collection; and
2912          (B) Chapter 1, General Taxation Policies.
2913          (ii) Notwithstanding Subsection [(4)(a)(i)] (5)(a)(i), a tax under this part is not subject

2914     to Subsections 59-12-103(4) through (10) or Section 59-12-107.1 or 59-12-123.
2915          (b) The commission shall retain and deposit an administrative charge in accordance
2916     with Section 59-1-306 from the revenues the commission collects from a tax under this part.
2917          (c) Except as provided under Subsection [(4)(b)] (5)(b), all revenue received by the
2918     commission under this section shall be deposited daily with the state treasurer and credited
2919     monthly to the Marda Dillree Corridor Preservation Fund under Section 72-2-117.
2920          Section 22. Effective date.
2921          This bill takes effect on July 1, 2023.
2922          Section 23. Retrospective operation.
2923          The changes to the following sections have retrospective operation to January 1, 2019,
2924     for a transaction that is the subject of an appeal pending on or filed after January 1, 2023:
2925          (1) Section 59-12-602;
2926          (2) Section 59-12-603; and
2927          (3) Section 59-12-1201.