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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 ▸ creates a local option tax on peer-to-peer car sharing;
22 ▸ amends the state tax on peer-to-peer car sharing;
23 ▸ defines terms; and
24 ▸ makes technical and conforming changes.
25 Money Appropriated in this Bill:
26 None
27 Other Special Clauses:
28 This bill provides retrospective operation.
29 Utah Code Sections Affected:
30 AMENDS:
31 59-12-102, as last amended by Laws of Utah 2021, Chapters 64, 367 and 414 and last
32 amended by Coordination Clause, Laws of Utah 2021, Chapter 367
33 59-12-103, as last amended by Laws of Utah 2022, Chapters 77, 106 and 433
34 59-12-602, as last amended by Laws of Utah 2020, Chapter 407
35 59-12-603, as last amended by Laws of Utah 2020, Chapter 407
36 59-12-1201, as last amended by Laws of Utah 2016, Chapters 184, 291
37 ENACTS:
38 13-48a-101, Utah Code Annotated 1953
39 13-48a-102, Utah Code Annotated 1953
40 13-48a-201, Utah Code Annotated 1953
41 13-48a-202, Utah Code Annotated 1953
42 13-48a-203, Utah Code Annotated 1953
43 13-48a-204, Utah Code Annotated 1953
44 13-48a-205, Utah Code Annotated 1953
45 13-48a-301, Utah Code Annotated 1953
46 13-48a-302, Utah Code Annotated 1953
47 13-48a-303, Utah Code Annotated 1953
48 13-48a-304, Utah Code Annotated 1953
49 13-48a-305, Utah Code Annotated 1953
50 13-48a-306, Utah Code Annotated 1953
51 13-48a-307, Utah Code Annotated 1953
52
53 Be it enacted by the Legislature of the state of Utah:
54 Section 1. Section 13-48a-101 is enacted to read:
55
56
57 13-48a-101. Definitions.
58 As used in this chapter:
59 (1) (a) "Car sharing" means the authorized use of a motor vehicle:
60 (i) by an individual other than the owner of the motor vehicle; and
61 (ii) through a car-sharing program.
62 (b) "Car sharing" does not mean the business of providing private passenger motor
63 vehicles to the public as used in Section 31A-22-311.
64 (2) (a) "Car-sharing agreement" means an agreement:
65 (i) applicable to a shared vehicle owner and a shared vehicle driver; and
66 (ii) that governs a shared vehicle driver's use of a shared vehicle through a car-sharing
67 program.
68 (b) "Car-sharing agreement" does not mean:
69 (i) a rental agreement, as defined in Section 31A-22-311; or
70 (ii) a short-term rental as that term is defined in Section 59-12-602.
71 (3) "Car-sharing delivery period" means the period of time during which a shared
72 vehicle is being delivered to the location of the car-sharing start time, if applicable, as
73 documented by the governing car-sharing agreement.
74 (4) "Car-sharing period" means the period of time that:
75 (a) (i) begins at the car-sharing delivery period; or
76 (ii) if there is no car-sharing delivery period, begins at the car-sharing start time; and
77 (b) ends at the car-sharing termination time.
78 (5) (a) "Car-sharing program" means a business platform that connects motor vehicle
79 owners with drivers to enable the sharing of motor vehicles for consideration.
80 (b) "Car-sharing program" does not mean:
81 (i) a motor vehicle rental company, as defined in Section 13-48-102; or
82 (ii) a rental company, as defined in Section 31A-22-311.
83 (6) "Car-sharing start time" means the time when a shared vehicle becomes subject to
84 the control of the shared vehicle driver at or after the time the reservation of the shared vehicle
85 is scheduled to begin, as documented in the records of the car-sharing program.
86 (7) "Car-sharing termination time" means the earliest of the following events:
87 (a) the expiration of the agreed upon period of time established for the use of a shared
88 vehicle according to the terms of the car-sharing agreement, if the shared vehicle is delivered to
89 the location agreed upon in the car-sharing agreement;
90 (b) when the shared vehicle is returned to a location as alternatively agreed upon by the
91 shared vehicle owner and shared vehicle driver as communicated through a car-sharing
92 program, which alternatively agreed upon location shall be incorporated into the car-sharing
93 agreement; and
94 (c) when the shared vehicle owner or shared vehicle owner's authorized designee takes
95 possession and control of the shared vehicle.
96 (8) "Individual-owned shared vehicle" means:
97 (a) for a motor vehicle purchased in the state, a shared vehicle for which applicable
98 sales tax and use tax was paid on the purchase; or
99 (b) for a motor vehicle not purchased in the state, a shared vehicle for which:
100 (i) an applicable use tax was paid to this state on the purchase; or
101 (ii) sales tax or use tax was paid on the purchase in the jurisdiction in which the motor
102 vehicle was purchased if that jurisdiction levies a sales or use tax on the purchase of motor
103 vehicles.
104 (9) "Motor vehicle" means the same as that term is defined in Section 41-1a-102.
105 (10) "Shared vehicle" means a motor vehicle that is available for use by an individual
106 other than the shared vehicle owner through a car-sharing program.
107 (11) (a) "Shared vehicle driver" means an individual who has been authorized to drive
108 a shared vehicle by the shared vehicle owner under a car-sharing program.
109 (b) "Shared vehicle driver" does not mean a renter, as defined in Section 31A-22-311.
110 (12) (a) "Shared vehicle owner" means:
111 (i) the registered owner of a motor vehicle made available for car sharing; or
112 (ii) a person designated by the registered owner of a motor vehicle made available for
113 car sharing.
114 (b) "Shared vehicle owner" does not mean a rental company, as defined in Section
115 31A-22-311.
116 Section 2. Section 13-48a-102 is enacted to read:
117 13-48a-102. Limits on reach of chapter.
118 Nothing in this chapter:
119 (1) limits the liability of a car-sharing program for an act or omission of the car-sharing
120 program that results in injury to a person as a result of the use of a shared vehicle through a
121 car-sharing program; or
122 (2) limits the ability of the car-sharing program, by contract, to seek indemnification
123 from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the
124 car-sharing program resulting from a breach of the terms and conditions of the car-sharing
125 agreement.
126 Section 3. Section 13-48a-201 is enacted to read:
127
128 13-48a-201. Notification about possible violation of lienholder agreement.
129 (1) As used in this section, "lienholder agreement" means an agreement between the
130 owner of a motor vehicle and another person under which the other person has a lien against
131 the motor vehicle.
132 (2) At the time that the owner of a motor vehicle registers to make the owner's motor
133 vehicle available for sharing through a car-sharing program, the car-sharing program shall
134 notify the owner that the use of the owner's motor vehicle through the car-sharing program,
135 including without physical damage coverage, may violate the terms of a lienholder agreement
136 that the motor vehicle may be subject to.
137 Section 4. Section 13-48a-202 is enacted to read:
138 13-48a-202. Safety recalls.
139 (1) At the time that the owner of a motor vehicle registers to make the owner's motor
140 vehicle available for sharing through a car-sharing program, the car-sharing program shall:
141 (a) verify that the shared vehicle does not have any safety recalls for which the repairs
142 have not been made; and
143 (b) notify the motor vehicle owner of the requirements under Subsections (2), (3), and
144 (4).
145 (2) An owner of a motor vehicle may not register to make the owner's motor vehicle
146 available for sharing through a car-sharing program if:
147 (a) the owner has received an actual notice of a safety recall applicable to the motor
148 vehicle; and
149 (b) the safety recall repair has not been made.
150 (3) A shared vehicle owner who receives an actual notice of a safety recall applicable
151 to the shared vehicle during the time that the shared vehicle is made available for sharing
152 through a car-sharing program shall, as soon as practicably possible after receiving the notice,
153 remove the shared vehicle from availability for sharing through the car-sharing program until
154 the safety recall repair is made.
155 (4) A shared vehicle owner who receives an actual notice of a safety recall applicable
156 to the shared vehicle during the time that the shared vehicle is in the possession of a shared
157 vehicle driver under a car-sharing agreement shall, as soon as practicably possible after
158 receiving the notice, notify the car-sharing program about the safety recall so that the shared
159 vehicle owner may address the safety recall repair.
160 Section 5. Section 13-48a-203 is enacted to read:
161 13-48a-203. Required disclosures for a car-sharing agreement.
162 A car-sharing agreement shall disclose to the shared vehicle owner and the shared
163 vehicle driver:
164 (1) a right of the car-sharing company to seek indemnification from the shared vehicle
165 owner or shared vehicle driver for economic loss resulting from a breach of the car-sharing
166 agreement;
167 (2) that a motor vehicle liability insurance policy issued to the shared vehicle owner or
168 shared vehicle driver does not provide a defense or indemnification for any claim asserted by
169 the car-sharing company;
170 (3) that the car-sharing program's insurance policy covering the shared vehicle owner
171 and the shared vehicle driver is in effect only during the car-sharing period and that, for any use
172 of the shared vehicle by the shared vehicle driver after the car-sharing termination time, the
173 shared vehicle driver and the shared vehicle owner may not have insurance coverage;
174 (4) of the daily rate, fees, and, if applicable, insurance or protection package costs that
175 are charged to the shared vehicle owner or shared vehicle driver;
176 (5) that the shared vehicle owner's motor vehicle liability insurance policy may not
177 provide coverage for the shared vehicle;
178 (6) of an emergency telephone number to contact personnel capable of fielding
179 roadside assistance or other customer service inquiries; and
180 (7) whether there are conditions under which a shared vehicle driver must maintain a
181 personal automobile insurance policy with certain applicable coverage limits on a primary basis
182 in order to book a shared vehicle.
183 Section 6. Section 13-48a-204 is enacted to read:
184 13-48a-204. Records relating to the use of shared vehicles.
185 (1) A car-sharing program shall collect and verify records pertaining to the use of a
186 shared vehicle, including times used, car-sharing period pick up and drop off locations, fees
187 paid by the shared vehicle driver, and revenues received by the shared vehicle owner, and
188 provide that information upon request to the shared vehicle owner, the shared vehicle owner's
189 insurer, or the shared vehicle driver's insurer to facilitate a claim coverage investigation,
190 settlement, negotiation, or litigation.
191 (2) The car-sharing program shall retain the records for a time period not less than two
192 years.
193 Section 7. Section 13-48a-205 is enacted to read:
194 13-48a-205. GPS or other special equipment.
195 (1) A car-sharing program:
196 (a) has sole responsibility for any GPS or other special equipment that the car-sharing
197 company places on or in a shared vehicle to monitor the shared vehicle or facilitate the
198 car-sharing agreement; and
199 (b) shall agree to indemnify and hold harmless the shared vehicle owner for any
200 damage to the shared vehicle that:
201 (i) is a result of damage to or theft of equipment described in Subsection (1)(a);
202 (ii) occurs during the car-sharing period; and
203 (iii) is not caused by the shared vehicle owner.
204 (2) A car-sharing program may seek indemnity from a shared vehicle driver for any
205 loss of or damage to equipment described in Subsection (1)(a) that occurs during the
206 car-sharing period.
207 Section 8. Section 13-48a-301 is enacted to read:
208
209 13-48a-301. Car-sharing company assumption of liability for a covered loss --
210 Exception.
211 (1) Except as provided in Subsection (2), a car-sharing program shall assume liability
212 of a shared vehicle owner for bodily injury or property damage to third parties or personal
213 injury protection losses during the car-sharing period in an amount stated in the car-sharing
214 agreement, which amount may not be less than those set forth in Section 31A-22-304.
215 (2) Notwithstanding the definition of car-sharing termination time, the assumption of
216 liability under Subsection (1) does not apply to a shared vehicle owner when:
217 (a) a shared vehicle owner makes an intentional or fraudulent material
218 misrepresentation or omission to the car-sharing program before the car-sharing period in
219 which the loss occurred; or
220 (b) acting in concert with a shared vehicle driver who fails to return the shared vehicle
221 pursuant to the terms of the car-sharing agreement.
222 (3) Notwithstanding the definition of car-sharing termination time, the assumption of
223 liability under Subsection (1) would apply to bodily injury, property damage, or personal injury
224 protection losses by damaged third parties required by Section 31A-22-304.
225 Section 9. Section 13-48a-302 is enacted to read:
226 13-48a-302. Motor vehicle liability insurance.
227 (1) A car-sharing program shall ensure that, during each car-sharing period, the shared
228 vehicle owner and the shared vehicle driver are insured under a motor vehicle liability
229 insurance policy that provides coverage in amounts no less than the minimum amounts set
230 forth in Section 31A-22-304, and:
231 (a) recognizes that the shared vehicle insured under the policy is made available and
232 used through a car-sharing program; or
233 (b) does not exclude use of a shared vehicle by a shared vehicle driver.
234 (2) The insurance described in Subsection (1) may be satisfied by motor vehicle
235 liability insurance maintained by:
236 (a) a shared vehicle owner;
237 (b) a shared vehicle driver;
238 (c) a car-sharing program; or
239 (d) a shared vehicle owner, a shared vehicle driver, and a car-sharing program.
240 (3) The insurance described in Subsection (1) that is satisfying the insurance
241 requirement of Subsection (1) shall be primary during each car-sharing period and in the event
242 that a claim occurs in another state with minimum financial responsibility limits higher than
243 those in Section 31A-22-304, during the car-sharing period, the coverage maintained under
244 Subsection (2) shall satisfy the difference in minimum coverage amounts, up to the applicable
245 policy limits.
246 (4) The insurer, insurers, or car-sharing program providing coverage under Subsection
247 (1) or (2) shall assume primary liability for a claim when:
248 (a) a dispute exists as to who was in control of the shared motor vehicle at the time of
249 the loss and the car-sharing program does not have available, did not retain, or fails to provide
250 the information required by Section 13-48a-203; or
251 (b) a dispute exists as to whether the shared vehicle was returned to the alternatively
252 agreed upon location as required under Section 13-48a-101.
253 (5) If insurance maintained by a shared vehicle owner or shared vehicle driver in
254 accordance with Subsection (2) has lapsed or does not provide the required coverage, insurance
255 maintained by the car-sharing program shall provide the coverage required by Subsection (1)
256 beginning with the first dollar of a claim and have the duty to defend the claim except under
257 circumstances set forth in Subsection 13-48a-301(2).
258 (6) Coverage under an automobile insurance policy maintained by the car-sharing
259 program is not dependent on another automobile insurer first denying a claim, nor shall another
260 automobile insurance policy be required to first deny a claim.
261 Section 10. Section 13-48a-303 is enacted to read:
262 13-48a-303. Certain abilities of insurance companies preserved.
263 (1) (a) A motor vehicle liability insurance policy may exclude coverage and a duty to
264 defend or indemnify with respect to a claim arising during a motor vehicle's use as a shared
265 vehicle, based on the motor vehicle's use as a shared vehicle.
266 (b) Coverage that may be excluded as provided in Subsection (1) includes coverage
267 for:
268 (i) bodily injury or property damage suffered by a third party;
269 (ii) a claim covered by uninsured motorist coverage described in Section 31A-22-305;
270 (iii) a claim covered by underinsured motorist coverage described in Section
271 31A-22-305.5;
272 (iv) a claim covered by personal injury protection coverage and benefits described in
273 Section 31A-22-307;
274 (v) a claim for medical payments;
275 (vi) a claim for comprehensive physical damage; and
276 (vii) a claim for collision physical damage.
277 (2) Nothing in this chapter invalidates, limits, or restricts the ability of an insurance
278 company under other applicable law to:
279 (a) underwrite an insurance policy; or
280 (b) cancel or fail to renew an insurance policy.
281 (3) Nothing in this chapter invalidates or limits a provision in a motor vehicle liability
282 insurance policy, including any insurance policy in use or approved for use, that excludes
283 coverage for a motor vehicle made available for rent, sharing, hire, or any business use.
284 Section 11. Section 13-48a-304 is enacted to read:
285 13-48a-304. Insurable interest -- Insurance to cover various liabilities -- No
286 liability to maintain certain insurance.
287 (1) Notwithstanding any other provision of law, a car-sharing program has an insurable
288 interest in a shared vehicle during the car-sharing period.
289 (2) A car-sharing program may own and maintain as the named insured one or more
290 policies of motor vehicle insurance that provide coverage for:
291 (a) a liability assumed by the car-sharing program under a car-sharing agreement;
292 (b) a liability of the shared vehicle owner;
293 (c) a liability of the shared vehicle driver; or
294 (d) damage or loss to a shared vehicle.
295 (3) Nothing in this section requires a car-sharing program to maintain insurance
296 coverage for the car-sharing program's liability under this chapter.
297 Section 12. Section 13-48a-305 is enacted to read:
298 13-48a-305. Recovery for claim excluded from insurance policy.
299 An insurance company that defends or indemnifies a claim against a shared vehicle that
300 is excluded under the terms of the insurance company's policy shall have the right to seek
301 recovery against the motor vehicle insurer of the car-sharing program if the claim is:
302 (1) made against the shared vehicle owner or shared vehicle driver for a loss or injury
303 that occurs during the car-sharing period; and
304 (2) excluded under the terms of the policy of the insurance company that defends or
305 indemnifies the claim.
306 Section 13. Section 13-48a-306 is enacted to read:
307 13-48a-306. Exemption from liability based on operation of a car-sharing
308 program or on vehicle ownership.
309 Consistent with 49 U.S.C. Sec. 30106, a car-sharing program and a shared vehicle
310 owner are exempt from vicarious liability under any state or local law that imposes liability
311 solely based on vehicle ownership.
312 Section 14. Section 13-48a-307 is enacted to read:
313 13-48a-307. Driver license requirement and records.
314 (1) A car-sharing program may not enter into a car-sharing agreement with a driver
315 unless the driver who will operate the shared vehicle:
316 (a) holds a driver license issued under the applicable law of this state that authorizes
317 the driver to operate vehicles of the class of the shared vehicle;
318 (b) is a nonresident who:
319 (i) has a driver license issued by the state or country of the driver's residence that
320 authorizes the driver in that state or country to drive vehicles of the class of the shared vehicle;
321 and
322 (ii) is at least the same age as that required of a resident to drive; or
323 (c) otherwise is specifically authorized to drive vehicles of the class of the shared
324 vehicle.
325 (2) A car-sharing program shall keep a record of:
326 (a) the name and address of the shared vehicle driver;
327 (b) the number of the driver license of the shared vehicle driver and each other person,
328 if any, who will operate the shared vehicle; and
329 (c) the place of issuance of the driver license.
330 Section 15. Section 59-12-102 is amended to read:
331 59-12-102. Definitions.
332 As used in this chapter:
333 (1) "800 service" means a telecommunications service that:
334 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
335 (b) is typically marketed:
336 (i) under the name 800 toll-free calling;
337 (ii) under the name 855 toll-free calling;
338 (iii) under the name 866 toll-free calling;
339 (iv) under the name 877 toll-free calling;
340 (v) under the name 888 toll-free calling; or
341 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
342 Federal Communications Commission.
343 (2) (a) "900 service" means an inbound toll telecommunications service that:
344 (i) a subscriber purchases;
345 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
346 the subscriber's:
347 (A) prerecorded announcement; or
348 (B) live service; and
349 (iii) is typically marketed:
350 (A) under the name 900 service; or
351 (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
352 Communications Commission.
353 (b) "900 service" does not include a charge for:
354 (i) a collection service a seller of a telecommunications service provides to a
355 subscriber; or
356 (ii) the following a subscriber sells to the subscriber's customer:
357 (A) a product; or
358 (B) a service.
359 (3) (a) "Admission or user fees" includes season passes.
360 (b) "Admission or user fees" does not include:
361 (i) annual membership dues to private organizations; or
362 (ii) a lesson, including a lesson that involves as part of the lesson equipment or a
363 facility listed in Subsection 59-12-103(1)(f).
364 (4) "Affiliate" or "affiliated person" means a person that, with respect to another
365 person:
366 (a) has an ownership interest of more than 5%, whether direct or indirect, in that other
367 person; or
368 (b) is related to the other person because a third person, or a group of third persons who
369 are affiliated persons with respect to each other, holds an ownership interest of more than 5%,
370 whether direct or indirect, in the related persons.
371 (5) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
372 November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
373 Agreement after November 12, 2002.
374 (6) "Agreement combined tax rate" means the sum of the tax rates:
375 (a) listed under Subsection (7); and
376 (b) that are imposed within a local taxing jurisdiction.
377 (7) "Agreement sales and use tax" means a tax imposed under:
378 (a) Subsection 59-12-103(2)(a)(i)(A);
379 (b) Subsection 59-12-103(2)(b)(i);
380 (c) Subsection 59-12-103(2)(c)(i);
381 (d) Subsection 59-12-103(2)(d);
382 (e) Subsection 59-12-103(2)(e)(i)(A)(I);
383 (f) Section 59-12-204;
384 (g) Section 59-12-401;
385 (h) Section 59-12-402;
386 (i) Section 59-12-402.1;
387 (j) Section 59-12-703;
388 (k) Section 59-12-802;
389 (l) Section 59-12-804;
390 (m) Section 59-12-1102;
391 (n) Section 59-12-1302;
392 (o) Section 59-12-1402;
393 (p) Section 59-12-1802;
394 (q) Section 59-12-2003;
395 (r) Section 59-12-2103;
396 (s) Section 59-12-2213;
397 (t) Section 59-12-2214;
398 (u) Section 59-12-2215;
399 (v) Section 59-12-2216;
400 (w) Section 59-12-2217;
401 (x) Section 59-12-2218;
402 (y) Section 59-12-2219; or
403 (z) Section 59-12-2220.
404 (8) "Aircraft" means the same as that term is defined in Section 72-10-102.
405 (9) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
406 (a) except for:
407 (i) an airline as defined in Section 59-2-102; or
408 (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
409 includes a corporation that is qualified to do business but is not otherwise doing business in the
410 state, of an airline; and
411 (b) that has the workers, expertise, and facilities to perform the following, regardless of
412 whether the business entity performs the following in this state:
413 (i) check, diagnose, overhaul, and repair:
414 (A) an onboard system of a fixed wing turbine powered aircraft; and
415 (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
416 (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
417 engine;
418 (iii) perform at least the following maintenance on a fixed wing turbine powered
419 aircraft:
420 (A) an inspection;
421 (B) a repair, including a structural repair or modification;
422 (C) changing landing gear; and
423 (D) addressing issues related to an aging fixed wing turbine powered aircraft;
424 (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
425 completely apply new paint to the fixed wing turbine powered aircraft; and
426 (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
427 results in a change in the fixed wing turbine powered aircraft's certification requirements by the
428 authority that certifies the fixed wing turbine powered aircraft.
429 (10) "Alcoholic beverage" means a beverage that:
430 (a) is suitable for human consumption; and
431 (b) contains .5% or more alcohol by volume.
432 (11) "Alternative energy" means:
433 (a) biomass energy;
434 (b) geothermal energy;
435 (c) hydroelectric energy;
436 (d) solar energy;
437 (e) wind energy; or
438 (f) energy that is derived from:
439 (i) coal-to-liquids;
440 (ii) nuclear fuel;
441 (iii) oil-impregnated diatomaceous earth;
442 (iv) oil sands;
443 (v) oil shale;
444 (vi) petroleum coke; or
445 (vii) waste heat from:
446 (A) an industrial facility; or
447 (B) a power station in which an electric generator is driven through a process in which
448 water is heated, turns into steam, and spins a steam turbine.
449 (12) (a) Subject to Subsection (12)(b), "alternative energy electricity production
450 facility" means a facility that:
451 (i) uses alternative energy to produce electricity; and
452 (ii) has a production capacity of two megawatts or greater.
453 (b) A facility is an alternative energy electricity production facility regardless of
454 whether the facility is:
455 (i) connected to an electric grid; or
456 (ii) located on the premises of an electricity consumer.
457 (13) (a) "Ancillary service" means a service associated with, or incidental to, the
458 provision of telecommunications service.
459 (b) "Ancillary service" includes:
460 (i) a conference bridging service;
461 (ii) a detailed communications billing service;
462 (iii) directory assistance;
463 (iv) a vertical service; or
464 (v) a voice mail service.
465 (14) "Area agency on aging" means the same as that term is defined in Section
466 62A-3-101.
467 (15) "Assisted amusement device" means an amusement device, skill device, or ride
468 device that is started and stopped by an individual:
469 (a) who is not the purchaser or renter of the right to use or operate the amusement
470 device, skill device, or ride device; and
471 (b) at the direction of the seller of the right to use the amusement device, skill device,
472 or ride device.
473 (16) "Assisted cleaning or washing of tangible personal property" means cleaning or
474 washing of tangible personal property if the cleaning or washing labor is primarily performed
475 by an individual:
476 (a) who is not the purchaser of the cleaning or washing of the tangible personal
477 property; and
478 (b) at the direction of the seller of the cleaning or washing of the tangible personal
479 property.
480 (17) "Authorized carrier" means:
481 (a) in the case of vehicles operated over public highways, the holder of credentials
482 indicating that the vehicle is or will be operated pursuant to both the International Registration
483 Plan and the International Fuel Tax Agreement;
484 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
485 certificate or air carrier's operating certificate; or
486 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
487 stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
488 stock in more than one state.
489 (18) (a) Except as provided in Subsection (18)(b), "biomass energy" means any of the
490 following that is used as the primary source of energy to produce fuel or electricity:
491 (i) material from a plant or tree; or
492 (ii) other organic matter that is available on a renewable basis, including:
493 (A) slash and brush from forests and woodlands;
494 (B) animal waste;
495 (C) waste vegetable oil;
496 (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
497 wastewater residuals, or through the conversion of a waste material through a nonincineration,
498 thermal conversion process;
499 (E) aquatic plants; and
500 (F) agricultural products.
501 (b) "Biomass energy" does not include:
502 (i) black liquor; or
503 (ii) treated woods.
504 (19) (a) "Bundled transaction" means the sale of two or more items of tangible personal
505 property, products, or services if the tangible personal property, products, or services are:
506 (i) distinct and identifiable; and
507 (ii) sold for one nonitemized price.
508 (b) "Bundled transaction" does not include:
509 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
510 the basis of the selection by the purchaser of the items of tangible personal property included in
511 the transaction;
512 (ii) the sale of real property;
513 (iii) the sale of services to real property;
514 (iv) the retail sale of tangible personal property and a service if:
515 (A) the tangible personal property:
516 (I) is essential to the use of the service; and
517 (II) is provided exclusively in connection with the service; and
518 (B) the service is the true object of the transaction;
519 (v) the retail sale of two services if:
520 (A) one service is provided that is essential to the use or receipt of a second service;
521 (B) the first service is provided exclusively in connection with the second service; and
522 (C) the second service is the true object of the transaction;
523 (vi) a transaction that includes tangible personal property or a product subject to
524 taxation under this chapter and tangible personal property or a product that is not subject to
525 taxation under this chapter if the:
526 (A) seller's purchase price of the tangible personal property or product subject to
527 taxation under this chapter is de minimis; or
528 (B) seller's sales price of the tangible personal property or product subject to taxation
529 under this chapter is de minimis; and
530 (vii) the retail sale of tangible personal property that is not subject to taxation under
531 this chapter and tangible personal property that is subject to taxation under this chapter if:
532 (A) that retail sale includes:
533 (I) food and food ingredients;
534 (II) a drug;
535 (III) durable medical equipment;
536 (IV) mobility enhancing equipment;
537 (V) an over-the-counter drug;
538 (VI) a prosthetic device; or
539 (VII) a medical supply; and
540 (B) subject to Subsection (19)(f):
541 (I) the seller's purchase price of the tangible personal property subject to taxation under
542 this chapter is 50% or less of the seller's total purchase price of that retail sale; or
543 (II) the seller's sales price of the tangible personal property subject to taxation under
544 this chapter is 50% or less of the seller's total sales price of that retail sale.
545 (c) (i) For purposes of Subsection (19)(a)(i), tangible personal property, a product, or a
546 service that is distinct and identifiable does not include:
547 (A) packaging that:
548 (I) accompanies the sale of the tangible personal property, product, or service; and
549 (II) is incidental or immaterial to the sale of the tangible personal property, product, or
550 service;
551 (B) tangible personal property, a product, or a service provided free of charge with the
552 purchase of another item of tangible personal property, a product, or a service; or
553 (C) an item of tangible personal property, a product, or a service included in the
554 definition of "purchase price."
555 (ii) For purposes of Subsection (19)(c)(i)(B), an item of tangible personal property, a
556 product, or a service is provided free of charge with the purchase of another item of tangible
557 personal property, a product, or a service if the sales price of the purchased item of tangible
558 personal property, product, or service does not vary depending on the inclusion of the tangible
559 personal property, product, or service provided free of charge.
560 (d) (i) For purposes of Subsection (19)(a)(ii), property sold for one nonitemized price
561 does not include a price that is separately identified by tangible personal property, product, or
562 service on the following, regardless of whether the following is in paper format or electronic
563 format:
564 (A) a binding sales document; or
565 (B) another supporting sales-related document that is available to a purchaser.
566 (ii) For purposes of Subsection (19)(d)(i), a binding sales document or another
567 supporting sales-related document that is available to a purchaser includes:
568 (A) a bill of sale;
569 (B) a contract;
570 (C) an invoice;
571 (D) a lease agreement;
572 (E) a periodic notice of rates and services;
573 (F) a price list;
574 (G) a rate card;
575 (H) a receipt; or
576 (I) a service agreement.
577 (e) (i) For purposes of Subsection (19)(b)(vi), the sales price of tangible personal
578 property or a product subject to taxation under this chapter is de minimis if:
579 (A) the seller's purchase price of the tangible personal property or product is 10% or
580 less of the seller's total purchase price of the bundled transaction; or
581 (B) the seller's sales price of the tangible personal property or product is 10% or less of
582 the seller's total sales price of the bundled transaction.
583 (ii) For purposes of Subsection (19)(b)(vi), a seller:
584 (A) shall use the seller's purchase price or the seller's sales price to determine if the
585 purchase price or sales price of the tangible personal property or product subject to taxation
586 under this chapter is de minimis; and
587 (B) may not use a combination of the seller's purchase price and the seller's sales price
588 to determine if the purchase price or sales price of the tangible personal property or product
589 subject to taxation under this chapter is de minimis.
590 (iii) For purposes of Subsection (19)(b)(vi), a seller shall use the full term of a service
591 contract to determine if the sales price of tangible personal property or a product is de minimis.
592 (f) For purposes of Subsection (19)(b)(vii)(B), a seller may not use a combination of
593 the seller's purchase price and the seller's sales price to determine if tangible personal property
594 subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
595 price of that retail sale.
596 (20) "Car sharing" means the same as that term is defined in Section 13-48a-101.
597 (21) "Car-sharing program" means the same as that term is defined in Section
598 13-48a-101.
599 [
600 board of the agreement that:
601 (a) calculates the agreement sales and use tax imposed within a local taxing
602 jurisdiction:
603 (i) on a transaction; and
604 (ii) in the states that are members of the agreement;
605 (b) determines the amount of agreement sales and use tax to remit to a state that is a
606 member of the agreement; and
607 (c) maintains a record of the transaction described in Subsection [
608 [
609 (a) by the governing board of the agreement; and
610 (b) to perform a seller's sales and use tax functions for an agreement sales and use tax,
611 as outlined in the contract between the governing board of the agreement and the certified
612 service provider, other than the seller's obligation under Section 59-12-124 to remit a tax on the
613 seller's own purchases.
614 [
615 wearing apparel suitable for general use.
616 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
617 commission shall make rules:
618 (i) listing the items that constitute "clothing"; and
619 (ii) that are consistent with the list of items that constitute "clothing" under the
620 agreement.
621 [
622 fuel.
623 [
624 other fuels that does not constitute industrial use under Subsection [
625 under Subsection [
626 [
627 business of transporting passengers, freight, merchandise, or other property for hire within this
628 state.
629 (b) (i) "Common carrier" does not include a person that, at the time the person is
630 traveling to or from that person's place of employment, transports a passenger to or from the
631 passenger's place of employment.
632 (ii) For purposes of Subsection [
633 Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules defining
634 what constitutes a person's place of employment.
635 (c) "Common carrier" does not include a person that provides transportation network
636 services, as defined in Section 13-51-102.
637 [
638 (a) poultry, dairy, and other livestock feed, and their components;
639 (b) baling ties and twine used in the baling of hay and straw;
640 (c) fuel used for providing temperature control of orchards and commercial
641 greenhouses doing a majority of their business in wholesale sales, and for providing power for
642 off-highway type farm machinery; and
643 (d) feed, seeds, and seedlings.
644 [
645 (a) (i) in digital form; or
646 (ii) in a form similar to digital form; and
647 (b) manipulates that information for a result based on a sequence of instructions.
648 [
649 (a) a computer to perform a task; or
650 (b) automatic data processing equipment to perform a task.
651 [
652 seller of computer software to provide a customer with:
653 (a) future updates or upgrades to computer software;
654 (b) support services with respect to computer software; or
655 (c) a combination of Subsections [
656 [
657 or more participants of an audio conference call or video conference call.
658 (b) "Conference bridging service" may include providing a telephone number as part of
659 the ancillary service described in Subsection [
660 (c) "Conference bridging service" does not include a telecommunications service used
661 to reach the ancillary service described in Subsection [
662 [
663 converted into real property.
664 [
665 than tangible storage media.
666 [
667 (i) by a seller of:
668 (A) tangible personal property;
669 (B) a product transferred electronically; or
670 (C) a service; and
671 (ii) for preparation and delivery of the tangible personal property, product transferred
672 electronically, or services described in Subsection [
673 by the purchaser.
674 (b) "Delivery charge" includes a charge for the following:
675 (i) transportation;
676 (ii) shipping;
677 (iii) postage;
678 (iv) handling;
679 (v) crating; or
680 (vi) packing.
681 [
682 separately stating information pertaining to individual calls on a customer's billing statement.
683 [
684 (a) is intended to supplement the diet;
685 (b) contains one or more of the following dietary ingredients:
686 (i) a vitamin;
687 (ii) a mineral;
688 (iii) an herb or other botanical;
689 (iv) an amino acid;
690 (v) a dietary substance for use by humans to supplement the diet by increasing the total
691 dietary intake; or
692 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
693 described in Subsections [
694 (c) (i) except as provided in Subsection [
695 ingestion in:
696 (A) tablet form;
697 (B) capsule form;
698 (C) powder form;
699 (D) softgel form;
700 (E) gelcap form; or
701 (F) liquid form; or
702 (ii) if the product is not intended for ingestion in a form described in Subsections
703 [
704 (A) as conventional food; and
705 (B) for use as a sole item of:
706 (I) a meal; or
707 (II) the diet; and
708 (d) is required to be labeled as a dietary supplement:
709 (i) identifiable by the "Supplemental Facts" box found on the label; and
710 (ii) as required by 21 C.F.R. Sec. 101.36.
711 [
712 series of musical, spoken, or other sounds.
713 (b) "Digital audio work" includes a ringtone.
714 [
715 shown in succession, imparts an impression of motion, together with accompanying sounds, if
716 any.
717 [
718 and usual sense as a book.
719 [
720 States mail or other delivery service:
721 (i) to:
722 (A) a mass audience; or
723 (B) addressees on a mailing list provided:
724 (I) by a purchaser of the mailing list; or
725 (II) at the discretion of the purchaser of the mailing list; and
726 (ii) if the cost of the printed material is not billed directly to the recipients.
727 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
728 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
729 (c) "Direct mail" does not include multiple items of printed material delivered to a
730 single address.
731 [
732 (a) address information; or
733 (b) telephone number information.
734 [
735 equipment or supplies that:
736 (i) cannot withstand repeated use; and
737 (ii) are purchased by, for, or on behalf of a person other than:
738 (A) a health care facility as defined in Section 26-21-2;
739 (B) a health care provider as defined in Section 78B-3-403;
740 (C) an office of a health care provider described in Subsection [
741 (43)(a)(ii)(B); or
742 (D) a person similar to a person described in Subsections [
743 through (C).
744 (b) "Disposable home medical equipment or supplies" does not include:
745 (i) a drug;
746 (ii) durable medical equipment;
747 (iii) a hearing aid;
748 (iv) a hearing aid accessory;
749 (v) mobility enhancing equipment; or
750 (vi) tangible personal property used to correct impaired vision, including:
751 (A) eyeglasses; or
752 (B) contact lenses.
753 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
754 commission may by rule define what constitutes medical equipment or supplies.
755 [
756 (a) located in the state;
757 (b) with respect to which 51% or more of the manufacturing activities of the facility
758 consist of manufacturing component parts of drilling equipment;
759 (c) that uses pressure of 800,000 or more pounds per square inch as part of the
760 manufacturing process; and
761 (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
762 manufacturing process.
763 [
764 a compound, substance, or preparation that is:
765 (i) recognized in:
766 (A) the official United States Pharmacopoeia;
767 (B) the official Homeopathic Pharmacopoeia of the United States;
768 (C) the official National Formulary; or
769 (D) a supplement to a publication listed in Subsections [
770 through (C);
771 (ii) intended for use in the:
772 (A) diagnosis of disease;
773 (B) cure of disease;
774 (C) mitigation of disease;
775 (D) treatment of disease; or
776 (E) prevention of disease; or
777 (iii) intended to affect:
778 (A) the structure of the body; or
779 (B) any function of the body.
780 (b) "Drug" does not include:
781 (i) food and food ingredients;
782 (ii) a dietary supplement;
783 (iii) an alcoholic beverage; or
784 (iv) a prosthetic device.
785 [
786 equipment" means equipment that:
787 (i) can withstand repeated use;
788 (ii) is primarily and customarily used to serve a medical purpose;
789 (iii) generally is not useful to a person in the absence of illness or injury; and
790 (iv) is not worn in or on the body.
791 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
792 equipment described in Subsection [
793 (c) "Durable medical equipment" does not include mobility enhancing equipment.
794 [
795 (a) relating to technology; and
796 (b) having:
797 (i) electrical capabilities;
798 (ii) digital capabilities;
799 (iii) magnetic capabilities;
800 (iv) wireless capabilities;
801 (v) optical capabilities;
802 (vi) electromagnetic capabilities; or
803 (vii) capabilities similar to Subsections [
804 [
805 (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
806 Clearinghouse Activities, of the 2012 North American Industry Classification System of the
807 federal Executive Office of the President, Office of Management and Budget; and
808 (b) that performs electronic financial payment services.
809 [
810 [
811 (a) rail for the use of public transit; or
812 (b) a separate right-of-way for the use of public transit.
813 [
814 (a) is powered by turbine engines;
815 (b) operates on jet fuel; and
816 (c) has wings that are permanently attached to the fuselage of the aircraft.
817 [
818 radio communication between fixed points.
819 [
820 (i) regardless of whether the substances are in:
821 (A) liquid form;
822 (B) concentrated form;
823 (C) solid form;
824 (D) frozen form;
825 (E) dried form; or
826 (F) dehydrated form; and
827 (ii) that are:
828 (A) sold for:
829 (I) ingestion by humans; or
830 (II) chewing by humans; and
831 (B) consumed for the substance's:
832 (I) taste; or
833 (II) nutritional value.
834 (b) "Food and food ingredients" includes an item described in Subsection [
835 (99)(b)(iii).
836 (c) "Food and food ingredients" does not include:
837 (i) an alcoholic beverage;
838 (ii) tobacco; or
839 (iii) prepared food.
840 [
841 (i) (A) made by a school; or
842 (B) made by a school student;
843 (ii) that are for the purpose of raising funds for the school to purchase equipment,
844 materials, or provide transportation; and
845 (iii) that are part of an officially sanctioned school activity.
846 (b) For purposes of Subsection [
847 activity" means a school activity:
848 (i) that is conducted in accordance with a formal policy adopted by the school or school
849 district governing the authorization and supervision of fundraising activities;
850 (ii) that does not directly or indirectly compensate an individual teacher or other
851 educational personnel by direct payment, commissions, or payment in kind; and
852 (iii) the net or gross revenues from which are deposited in a dedicated account
853 controlled by the school or school district.
854 [
855 flows outward from the earth that is used as the sole source of energy to produce electricity.
856 [
857 agreement that is:
858 (a) authorized to administer the agreement; and
859 (b) established in accordance with the agreement.
860 [
861 means:
862 (i) the executive branch of the state, including all departments, institutions, boards,
863 divisions, bureaus, offices, commissions, and committees;
864 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
865 Administrative Office of the Courts, and similar administrative units in the judicial branch;
866 (iii) the legislative branch of the state, including the House of Representatives, the
867 Senate, the Legislative Printing Office, the Office of Legislative Research and General
868 Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
869 Analyst;
870 (iv) the National Guard;
871 (v) an independent entity as defined in Section 63E-1-102; or
872 (vi) a political subdivision as defined in Section 17B-1-102.
873 (b) "Governmental entity" does not include the state systems of public and higher
874 education, including:
875 (i) a school;
876 (ii) the State Board of Education;
877 (iii) the Utah Board of Higher Education; or
878 (iv) an institution of higher education described in Section 53B-1-102.
879 [
880 produce electricity.
881 (59) "Individual-owned shared vehicle" means the same as that term is defined in
882 Section 13-48a-101.
883 [
884 or other fuels:
885 (a) in mining or extraction of minerals;
886 (b) in agricultural operations to produce an agricultural product up to the time of
887 harvest or placing the agricultural product into a storage facility, including:
888 (i) commercial greenhouses;
889 (ii) irrigation pumps;
890 (iii) farm machinery;
891 (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
892 under Title 41, Chapter 1a, Part 2, Registration; and
893 (v) other farming activities;
894 (c) in manufacturing tangible personal property at an establishment described in:
895 (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
896 the federal Executive Office of the President, Office of Management and Budget; or
897 (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
898 American Industry Classification System of the federal Executive Office of the President,
899 Office of Management and Budget;
900 (d) by a scrap recycler if:
901 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
902 one or more of the following items into prepared grades of processed materials for use in new
903 products:
904 (A) iron;
905 (B) steel;
906 (C) nonferrous metal;
907 (D) paper;
908 (E) glass;
909 (F) plastic;
910 (G) textile; or
911 (H) rubber; and
912 (ii) the new products under Subsection [
913 with nonrecycled materials; or
914 (e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
915 cogeneration facility as defined in Section 54-2-1.
916 [
917 means a charge for installing:
918 (i) tangible personal property; or
919 (ii) a product transferred electronically.
920 (b) "Installation charge" does not include a charge for:
921 (i) repairs or renovations of:
922 (A) tangible personal property; or
923 (B) a product transferred electronically; or
924 (ii) attaching tangible personal property or a product transferred electronically:
925 (A) to other tangible personal property; and
926 (B) as part of a manufacturing or fabrication process.
927 [
928 listed in Section 53B-2-101.
929 [
930 personal property or a product transferred electronically for:
931 (i) (A) a fixed term; or
932 (B) an indeterminate term; and
933 (ii) consideration.
934 (b) "Lease" or "rental" includes:
935 (i) an agreement covering a motor vehicle and trailer if the amount of consideration
936 may be increased or decreased by reference to the amount realized upon sale or disposition of
937 the property as defined in Section 7701(h)(1), Internal Revenue Code[
938 (ii) car sharing.
939 (c) "Lease" or "rental" does not include:
940 (i) a transfer of possession or control of property under a security agreement or
941 deferred payment plan that requires the transfer of title upon completion of the required
942 payments;
943 (ii) a transfer of possession or control of property under an agreement that requires the
944 transfer of title:
945 (A) upon completion of required payments; and
946 (B) if the payment of an option price does not exceed the greater of:
947 (I) $100; or
948 (II) 1% of the total required payments; or
949 (iii) providing tangible personal property along with an operator for a fixed period of
950 time or an indeterminate period of time if the operator is necessary for equipment to perform as
951 designed.
952 (d) For purposes of Subsection [
953 equipment to perform as designed if the operator's duties exceed the:
954 (i) set-up of tangible personal property;
955 (ii) maintenance of tangible personal property; or
956 (iii) inspection of tangible personal property.
957 [
958 instructor:
959 (a) is present with a student in person or by video; and
960 (b) actively instructs the student, including by providing observation or feedback.
961 [
962 classified under the following NAICS codes of the 2007 North American Industry
963 Classification System of the federal Executive Office of the President, Office of Management
964 and Budget:
965 (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
966 (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
967 Manufacturing; or
968 (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
969 [
970 leased, or rented by a life science establishment if research and development is performed in
971 51% or more of the total area of the facility.
972 [
973 media if the tangible storage media is not physically transferred to the purchaser.
974 [
975 (a) county that is authorized to impose an agreement sales and use tax;
976 (b) city that is authorized to impose an agreement sales and use tax; or
977 (c) town that is authorized to impose an agreement sales and use tax.
978 [
979 15A-1-302.
980 [
981 (a) an establishment described in:
982 (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
983 the federal Executive Office of the President, Office of Management and Budget; or
984 (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
985 American Industry Classification System of the federal Executive Office of the President,
986 Office of Management and Budget;
987 (b) a scrap recycler if:
988 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
989 one or more of the following items into prepared grades of processed materials for use in new
990 products:
991 (A) iron;
992 (B) steel;
993 (C) nonferrous metal;
994 (D) paper;
995 (E) glass;
996 (F) plastic;
997 (G) textile; or
998 (H) rubber; and
999 (ii) the new products under Subsection [
1000 with nonrecycled materials; or
1001 (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
1002 placed in service on or after May 1, 2006.
1003 [
1004 where tangible personal property, a product transferred electronically, or a service is offered for
1005 sale.
1006 (b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a
1007 dedicated sales software application.
1008 [
1009 person, that enters into a contract, an agreement, or otherwise with sellers, for consideration, to
1010 facilitate the sale of a seller's product through a marketplace that the person owns, operates, or
1011 controls and that directly or indirectly:
1012 (i) does any of the following:
1013 (A) lists, makes available, or advertises tangible personal property, a product
1014 transferred electronically, or a service for sale by a marketplace seller on a marketplace that the
1015 person owns, operates, or controls;
1016 (B) facilitates the sale of a marketplace seller's tangible personal property, product
1017 transferred electronically, or service by transmitting or otherwise communicating an offer or
1018 acceptance of a retail sale between the marketplace seller and a purchaser using the
1019 marketplace;
1020 (C) owns, rents, licenses, makes available, or operates any electronic or physical
1021 infrastructure or any property, process, method, copyright, trademark, or patent that connects a
1022 marketplace seller to a purchaser for the purpose of making a retail sale of tangible personal
1023 property, a product transferred electronically, or a service;
1024 (D) provides a marketplace for making, or otherwise facilitates, a retail sale of tangible
1025 personal property, a product transferred electronically, or a service, regardless of ownership or
1026 control of the tangible personal property, the product transferred electronically, or the service
1027 that is the subject of the retail sale;
1028 (E) provides software development or research and development activities related to
1029 any activity described in this Subsection [
1030 research and development activity is directly related to the person's marketplace;
1031 (F) provides or offers fulfillment or storage services for a marketplace seller;
1032 (G) sets prices for the sale of tangible personal property, a product transferred
1033 electronically, or a service by a marketplace seller;
1034 (H) provides or offers customer service to a marketplace seller or a marketplace seller's
1035 purchaser or accepts or assists with taking orders, returns, or exchanges of tangible personal
1036 property, a product transferred electronically, or a service sold by a marketplace seller on the
1037 person's marketplace; or
1038 (I) brands or otherwise identifies sales as those of the person; and
1039 (ii) does any of the following:
1040 (A) collects the sales price or purchase price of a retail sale of tangible personal
1041 property, a product transferred electronically, or a service;
1042 (B) provides payment processing services for a retail sale of tangible personal property,
1043 a product transferred electronically, or a service;
1044 (C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee, closing
1045 fee, a fee for inserting or making available tangible personal property, a product transferred
1046 electronically, or a service on the person's marketplace, or other consideration for the
1047 facilitation of a retail sale of tangible personal property, a product transferred electronically, or
1048 a service, regardless of ownership or control of the tangible personal property, the product
1049 transferred electronically, or the service that is the subject of the retail sale;
1050 (D) through terms and conditions, an agreement, or another arrangement with a third
1051 person, collects payment from a purchase for a retail sale of tangible personal property, a
1052 product transferred electronically, or a service and transmits that payment to the marketplace
1053 seller, regardless of whether the third person receives compensation or other consideration in
1054 exchange for the service; or
1055 (E) provides a virtual currency for a purchaser to use to purchase tangible personal
1056 property, a product transferred electronically, or service offered for sale.
1057 (b) "Marketplace facilitator" does not include:
1058 (i) a person that only provides payment processing services; or
1059 (ii) a person described in Subsection [
1060 facilitating a sale for a seller that is a restaurant as defined in Section 59-12-602.
1061 [
1062 through a marketplace that a marketplace facilitator owns, operates, or controls, regardless of
1063 whether the seller is required to be registered to collect and remit the tax under this part.
1064 [
1065 related to a producer described in Subsection 59-12-104(20)(a) as a:
1066 (a) child or stepchild, regardless of whether the child or stepchild is:
1067 (i) an adopted child or adopted stepchild; or
1068 (ii) a foster child or foster stepchild;
1069 (b) grandchild or stepgrandchild;
1070 (c) grandparent or stepgrandparent;
1071 (d) nephew or stepnephew;
1072 (e) niece or stepniece;
1073 (f) parent or stepparent;
1074 (g) sibling or stepsibling;
1075 (h) spouse;
1076 (i) person who is the spouse of a person described in Subsections [
1077 through (g); or
1078 (j) person similar to a person described in Subsections [
1079 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1080 Administrative Rulemaking Act.
1081 [
1082 15A-1-302.
1083 [
1084 defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1085 [
1086 regardless of the technology used, if:
1087 (i) the origination point of the conveyance, routing, or transmission is not fixed;
1088 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
1089 (iii) the origination point described in Subsection [
1090 termination point described in Subsection [
1091 (b) "Mobile wireless service" includes a telecommunications service that is provided
1092 by a commercial mobile radio service provider.
1093 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1094 commission may by rule define "commercial mobile radio service provider."
1095 [
1096 equipment" means equipment that is:
1097 (i) primarily and customarily used to provide or increase the ability to move from one
1098 place to another;
1099 (ii) appropriate for use in a:
1100 (A) home; or
1101 (B) motor vehicle; and
1102 (iii) not generally used by persons with normal mobility.
1103 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
1104 the equipment described in Subsection [
1105 (c) "Mobility enhancing equipment" does not include:
1106 (i) a motor vehicle;
1107 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
1108 vehicle manufacturer;
1109 (iii) durable medical equipment; or
1110 (iv) a prosthetic device.
1111 [
1112 selected a certified service provider as the seller's agent to perform the seller's sales and use tax
1113 functions for agreement sales and use taxes, as outlined in the contract between the governing
1114 board of the agreement and the certified service provider, other than the seller's obligation
1115 under Section 59-12-124 to remit a tax on the seller's own purchases.
1116 [
1117 (a) except as provided in Subsection [
1118 automated system to perform the seller's sales tax functions for agreement sales and use taxes;
1119 and
1120 (b) retains responsibility for remitting all of the sales tax:
1121 (i) collected by the seller; and
1122 (ii) to the appropriate local taxing jurisdiction.
1123 [
1124 registered under the agreement that has:
1125 (i) sales in at least five states that are members of the agreement;
1126 (ii) total annual sales revenues of at least $500,000,000;
1127 (iii) a proprietary system that calculates the amount of tax:
1128 (A) for an agreement sales and use tax; and
1129 (B) due to each local taxing jurisdiction; and
1130 (iv) entered into a performance agreement with the governing board of the agreement.
1131 (b) For purposes of Subsection [
1132 group of sellers using the same proprietary system.
1133 [
1134 not a model 1 seller, model 2 seller, or model 3 seller.
1135 [
1136 [
1137 41-1a-102.
1138 [
1139 (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
1140 other hydrocarbons, or otherwise treated;
1141 (b) yield mixtures of liquid hydrocarbon; and
1142 (c) require further processing other than mechanical blending before becoming finished
1143 petroleum products.
1144 [
1145 kerogen material that yields petroleum upon heating and distillation.
1146 [
1147 software maintenance contract that a customer is not obligated to purchase as a condition to the
1148 retail sale of computer software.
1149 [
1150 energy.
1151 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
1152 personal property.
1153 [
1154 transmission of a coded radio signal for the purpose of activating a specific pager.
1155 (b) For purposes of Subsection [
1156 signal includes a transmission by message or sound.
1157 [
1158 13-32a-102.
1159 [
1160 13-32a-102.
1161 [
1162 property attached to real property:
1163 (i) the attachment of the tangible personal property to the real property:
1164 (A) is essential to the use of the tangible personal property; and
1165 (B) suggests that the tangible personal property will remain attached to the real
1166 property in the same place over the useful life of the tangible personal property; or
1167 (ii) if the tangible personal property is detached from the real property, the detachment
1168 would:
1169 (A) cause substantial damage to the tangible personal property; or
1170 (B) require substantial alteration or repair of the real property to which the tangible
1171 personal property is attached.
1172 (b) "Permanently attached to real property" includes:
1173 (i) the attachment of an accessory to the tangible personal property if the accessory is:
1174 (A) essential to the operation of the tangible personal property; and
1175 (B) attached only to facilitate the operation of the tangible personal property;
1176 (ii) a temporary detachment of tangible personal property from real property for a
1177 repair or renovation if the repair or renovation is performed where the tangible personal
1178 property and real property are located; or
1179 (iii) property attached to oil, gas, or water pipelines, except for the property listed in
1180 Subsection [
1181 (c) "Permanently attached to real property" does not include:
1182 (i) the attachment of portable or movable tangible personal property to real property if
1183 that portable or movable tangible personal property is attached to real property only for:
1184 (A) convenience;
1185 (B) stability; or
1186 (C) for an obvious temporary purpose;
1187 (ii) the detachment of tangible personal property from real property except for the
1188 detachment described in Subsection [
1189 (iii) an attachment of the following tangible personal property to real property if the
1190 attachment to real property is only through a line that supplies water, electricity, gas,
1191 telecommunications, cable, or supplies a similar item as determined by the commission by rule
1192 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
1193 (A) a computer;
1194 (B) a telephone;
1195 (C) a television; or
1196 (D) tangible personal property similar to Subsections [
1197 through (C) as determined by the commission by rule made in accordance with Title 63G,
1198 Chapter 3, Utah Administrative Rulemaking Act; or
1199 (iv) an item listed in Subsection [
1200 [
1201 association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
1202 city, municipality, district, or other local governmental entity of the state, or any group or
1203 combination acting as a unit.
1204 [
1205 (a) for telecommunications service other than mobile telecommunications service,
1206 means the street address representative of where the customer's use of the telecommunications
1207 service primarily occurs, which shall be:
1208 (i) the residential street address of the customer; or
1209 (ii) the primary business street address of the customer; or
1210 (b) for mobile telecommunications service, means the same as that term is defined in
1211 the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1212 [
1213 obtains by making a payment on a call-by-call basis:
1214 (i) through the use of a:
1215 (A) bank card;
1216 (B) credit card;
1217 (C) debit card; or
1218 (D) travel card; or
1219 (ii) by a charge made to a telephone number that is not associated with the origination
1220 or termination of the telecommunications service.
1221 (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
1222 service, that would be a prepaid wireless calling service if the service were exclusively a
1223 telecommunications service.
1224 [
1225 a medium described in Subsection 59-12-104(54)(a).
1226 [
1227 (a) that allows a purchaser access to telecommunications service that is exclusively
1228 telecommunications service;
1229 (b) that:
1230 (i) is paid for in advance; and
1231 (ii) enables the origination of a call using an:
1232 (A) access number; or
1233 (B) authorization code;
1234 (c) that is dialed:
1235 (i) manually; or
1236 (ii) electronically; and
1237 (d) sold in predetermined units or dollars that decline:
1238 (i) by a known amount; and
1239 (ii) with use.
1240 [
1241 (a) that provides the right to utilize:
1242 (i) mobile wireless service; and
1243 (ii) other service that is not a telecommunications service, including:
1244 (A) the download of a product transferred electronically;
1245 (B) a content service; or
1246 (C) an ancillary service;
1247 (b) that:
1248 (i) is paid for in advance; and
1249 (ii) enables the origination of a call using an:
1250 (A) access number; or
1251 (B) authorization code;
1252 (c) that is dialed:
1253 (i) manually; or
1254 (ii) electronically; and
1255 (d) sold in predetermined units or dollars that decline:
1256 (i) by a known amount; and
1257 (ii) with use.
1258 [
1259 (i) food:
1260 (A) sold in a heated state; or
1261 (B) heated by a seller;
1262 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
1263 item; or
1264 (iii) except as provided in Subsection [
1265 provided by the seller, including a:
1266 (A) plate;
1267 (B) knife;
1268 (C) fork;
1269 (D) spoon;
1270 (E) glass;
1271 (F) cup;
1272 (G) napkin; or
1273 (H) straw.
1274 (b) "Prepared food" does not include:
1275 (i) food that a seller only:
1276 (A) cuts;
1277 (B) repackages; or
1278 (C) pasteurizes; [
1279 (ii) (A) the following:
1280 (I) raw egg;
1281 (II) raw fish;
1282 (III) raw meat;
1283 (IV) raw poultry; or
1284 (V) a food containing an item described in Subsections [
1285 (99)(b)(ii)(A)(I) through (IV); and
1286 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
1287 Food and Drug Administration's Food Code that a consumer cook the items described in
1288 Subsection [
1289 (iii) the following if sold without eating utensils provided by the seller:
1290 (A) food and food ingredients sold by a seller if the seller's proper primary
1291 classification under the 2002 North American Industry Classification System of the federal
1292 Executive Office of the President, Office of Management and Budget, is manufacturing in
1293 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
1294 Manufacturing;
1295 (B) food and food ingredients sold in an unheated state:
1296 (I) by weight or volume; and
1297 (II) as a single item; or
1298 (C) a bakery item, including:
1299 (I) a bagel;
1300 (II) a bar;
1301 (III) a biscuit;
1302 (IV) bread;
1303 (V) a bun;
1304 (VI) a cake;
1305 (VII) a cookie;
1306 (VIII) a croissant;
1307 (IX) a danish;
1308 (X) a donut;
1309 (XI) a muffin;
1310 (XII) a pastry;
1311 (XIII) a pie;
1312 (XIV) a roll;
1313 (XV) a tart;
1314 (XVI) a torte; or
1315 (XVII) a tortilla.
1316 (c) An eating utensil provided by the seller does not include the following used to
1317 transport the food:
1318 (i) a container; or
1319 (ii) packaging.
1320 [
1321 (a) (i) orally;
1322 (ii) in writing;
1323 (iii) electronically; or
1324 (iv) by any other manner of transmission; and
1325 (b) by a licensed practitioner authorized by the laws of a state.
1326 [
1327 "prewritten computer software" means computer software that is not designed and developed:
1328 (i) by the author or other creator of the computer software; and
1329 (ii) to the specifications of a specific purchaser.
1330 (b) "Prewritten computer software" includes:
1331 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
1332 software is not designed and developed:
1333 (A) by the author or other creator of the computer software; and
1334 (B) to the specifications of a specific purchaser;
1335 (ii) computer software designed and developed by the author or other creator of the
1336 computer software to the specifications of a specific purchaser if the computer software is sold
1337 to a person other than the purchaser; or
1338 (iii) except as provided in Subsection [
1339 or a prewritten portion of prewritten computer software:
1340 (A) that is modified or enhanced to any degree; and
1341 (B) if the modification or enhancement described in Subsection [
1342 (101)(b)(iii)(A) is designed and developed to the specifications of a specific purchaser.
1343 (c) "Prewritten computer software" does not include a modification or enhancement
1344 described in Subsection [
1345 enhancement are:
1346 (i) reasonable; and
1347 (ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), separately stated on the
1348 invoice or other statement of price provided to the purchaser at the time of sale or later, as
1349 demonstrated by:
1350 (A) the books and records the seller keeps at the time of the transaction in the regular
1351 course of business, including books and records the seller keeps at the time of the transaction in
1352 the regular course of business for nontax purposes;
1353 (B) a preponderance of the facts and circumstances at the time of the transaction; and
1354 (C) the understanding of all of the parties to the transaction.
1355 [
1356 service:
1357 (i) that entitles a customer to exclusive or priority use of one or more communications
1358 channels between or among termination points; and
1359 (ii) regardless of the manner in which the one or more communications channels are
1360 connected.
1361 (b) "Private communications service" includes the following provided in connection
1362 with the use of one or more communications channels:
1363 (i) an extension line;
1364 (ii) a station;
1365 (iii) switching capacity; or
1366 (iv) another associated service that is provided in connection with the use of one or
1367 more communications channels as defined in Section 59-12-215.
1368 [
1369 transferred electronically" means a product transferred electronically that would be subject to a
1370 tax under this chapter if that product was transferred in a manner other than electronically.
1371 (b) "Product transferred electronically" does not include:
1372 (i) an ancillary service;
1373 (ii) computer software; or
1374 (iii) a telecommunications service.
1375 [
1376 (i) artificially replace a missing portion of the body;
1377 (ii) prevent or correct a physical deformity or physical malfunction; or
1378 (iii) support a weak or deformed portion of the body.
1379 (b) "Prosthetic device" includes:
1380 (i) parts used in the repairs or renovation of a prosthetic device;
1381 (ii) replacement parts for a prosthetic device;
1382 (iii) a dental prosthesis; or
1383 (iv) a hearing aid.
1384 (c) "Prosthetic device" does not include:
1385 (i) corrective eyeglasses; or
1386 (ii) contact lenses.
1387 [
1388 (i) for human wear; and
1389 (ii) that is:
1390 (A) designed as protection:
1391 (I) to the wearer against injury or disease; or
1392 (II) against damage or injury of other persons or property; and
1393 (B) not suitable for general use.
1394 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1395 commission shall make rules:
1396 (i) listing the items that constitute "protective equipment"; and
1397 (ii) that are consistent with the list of items that constitute "protective equipment"
1398 under the agreement.
1399 [
1400 written or printed matter, other than a photocopy:
1401 (i) regardless of:
1402 (A) characteristics;
1403 (B) copyright;
1404 (C) form;
1405 (D) format;
1406 (E) method of reproduction; or
1407 (F) source; and
1408 (ii) made available in printed or electronic format.
1409 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1410 commission may by rule define the term "photocopy."
1411 [
1412 consideration:
1413 (i) valued in money; and
1414 (ii) for which tangible personal property, a product transferred electronically, or
1415 services are:
1416 (A) sold;
1417 (B) leased; or
1418 (C) rented.
1419 (b) "Purchase price" and "sales price" include:
1420 (i) the seller's cost of the tangible personal property, a product transferred
1421 electronically, or services sold;
1422 (ii) expenses of the seller, including:
1423 (A) the cost of materials used;
1424 (B) a labor cost;
1425 (C) a service cost;
1426 (D) interest;
1427 (E) a loss;
1428 (F) the cost of transportation to the seller; or
1429 (G) a tax imposed on the seller;
1430 (iii) a charge by the seller for any service necessary to complete the sale; or
1431 (iv) consideration a seller receives from a person other than the purchaser if:
1432 (A) (I) the seller actually receives consideration from a person other than the purchaser;
1433 and
1434 (II) the consideration described in Subsection [
1435 directly related to a price reduction or discount on the sale;
1436 (B) the seller has an obligation to pass the price reduction or discount through to the
1437 purchaser;
1438 (C) the amount of the consideration attributable to the sale is fixed and determinable by
1439 the seller at the time of the sale to the purchaser; and
1440 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1441 seller to claim a price reduction or discount; and
1442 (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1443 coupon, or other documentation with the understanding that the person other than the seller
1444 will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1445 (II) the purchaser identifies that purchaser to the seller as a member of a group or
1446 organization allowed a price reduction or discount, except that a preferred customer card that is
1447 available to any patron of a seller does not constitute membership in a group or organization
1448 allowed a price reduction or discount; or
1449 (III) the price reduction or discount is identified as a third party price reduction or
1450 discount on the:
1451 (Aa) invoice the purchaser receives; or
1452 (Bb) certificate, coupon, or other documentation the purchaser presents.
1453 (c) "Purchase price" and "sales price" do not include:
1454 (i) a discount:
1455 (A) in a form including:
1456 (I) cash;
1457 (II) term; or
1458 (III) coupon;
1459 (B) that is allowed by a seller;
1460 (C) taken by a purchaser on a sale; and
1461 (D) that is not reimbursed by a third party; or
1462 (ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), the following if separately
1463 stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
1464 sale or later, as demonstrated by the books and records the seller keeps at the time of the
1465 transaction in the regular course of business, including books and records the seller keeps at the
1466 time of the transaction in the regular course of business for nontax purposes, by a
1467 preponderance of the facts and circumstances at the time of the transaction, and by the
1468 understanding of all of the parties to the transaction:
1469 (A) the following from credit extended on the sale of tangible personal property or
1470 services:
1471 (I) a carrying charge;
1472 (II) a financing charge; or
1473 (III) an interest charge;
1474 (B) a delivery charge;
1475 (C) an installation charge;
1476 (D) a manufacturer rebate on a motor vehicle; or
1477 (E) a tax or fee legally imposed directly on the consumer.
1478 [
1479 (a) a sale of tangible personal property is made;
1480 (b) a product is transferred electronically; or
1481 (c) a service is furnished.
1482 [
1483 (a) houses a group of networked server computers in one physical location in order to
1484 disseminate, manage, and store data and information;
1485 (b) is located in the state;
1486 (c) is a new operation constructed on or after July 1, 2016;
1487 (d) consists of one or more buildings that total 150,000 or more square feet;
1488 (e) is owned or leased by:
1489 (i) the operator of the data center facility; or
1490 (ii) a person under common ownership, as defined in Section 59-7-101, of the operator
1491 of the data center facility; and
1492 (f) is located on one or more parcels of land that are owned or leased by:
1493 (i) the operator of the data center facility; or
1494 (ii) a person under common ownership, as defined in Section 59-7-101, of the operator
1495 of the data center facility.
1496 [
1497 (a) rented to a guest for value three or more times during a calendar year; or
1498 (b) advertised or held out to the public as a place that is regularly rented to guests for
1499 value.
1500 [
1501 [
1502 renovations of tangible personal property" means:
1503 (i) a repair or renovation of tangible personal property that is not permanently attached
1504 to real property; or
1505 (ii) attaching tangible personal property or a product transferred electronically to other
1506 tangible personal property or detaching tangible personal property or a product transferred
1507 electronically from other tangible personal property if:
1508 (A) the other tangible personal property to which the tangible personal property or
1509 product transferred electronically is attached or from which the tangible personal property or
1510 product transferred electronically is detached is not permanently attached to real property; and
1511 (B) the attachment of tangible personal property or a product transferred electronically
1512 to other tangible personal property or detachment of tangible personal property or a product
1513 transferred electronically from other tangible personal property is made in conjunction with a
1514 repair or replacement of tangible personal property or a product transferred electronically.
1515 (b) "Repairs or renovations of tangible personal property" does not include:
1516 (i) attaching prewritten computer software to other tangible personal property if the
1517 other tangible personal property to which the prewritten computer software is attached is not
1518 permanently attached to real property; or
1519 (ii) detaching prewritten computer software from other tangible personal property if the
1520 other tangible personal property from which the prewritten computer software is detached is
1521 not permanently attached to real property.
1522 [
1523 experimentation aimed at the discovery of facts, devices, technologies, or applications and the
1524 process of preparing those devices, technologies, or applications for marketing.
1525 [
1526 telecommunications service or an ancillary service that is provided to an individual for personal
1527 use:
1528 (i) at a residential address; or
1529 (ii) at an institution, including a nursing home or a school, if the telecommunications
1530 service or ancillary service is provided to and paid for by the individual residing at the
1531 institution rather than the institution.
1532 (b) For purposes of Subsection [
1533 an:
1534 (i) apartment; or
1535 (ii) other individual dwelling unit.
1536 [
1537 sleeping quarters, and similar facilities or accommodations.
1538 [
1539 other than:
1540 (a) resale;
1541 (b) sublease; or
1542 (c) subrent.
1543 [
1544 the United States or federal law, that is engaged in a regularly organized business in tangible
1545 personal property or any other taxable transaction under Subsection 59-12-103(1), and who is
1546 selling to the user or consumer and not for resale.
1547 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1548 engaged in the business of selling to users or consumers within the state.
1549 [
1550 otherwise, in any manner, of tangible personal property or any other taxable transaction under
1551 Subsection 59-12-103(1), for consideration.
1552 (b) "Sale" includes:
1553 (i) installment and credit sales;
1554 (ii) any closed transaction constituting a sale;
1555 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1556 chapter;
1557 (iv) any transaction if the possession of property is transferred but the seller retains the
1558 title as security for the payment of the price; and
1559 (v) any transaction under which right to possession, operation, or use of any article of
1560 tangible personal property is granted under a lease or contract and the transfer of possession
1561 would be taxable if an outright sale were made.
1562 [
1563 [
1564 [
1565 tangible personal property or a product transferred electronically that is subject to a tax under
1566 this chapter is transferred:
1567 (a) by a purchaser-lessee;
1568 (b) to a lessor;
1569 (c) for consideration; and
1570 (d) if:
1571 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1572 of the tangible personal property or product transferred electronically;
1573 (ii) the sale of the tangible personal property or product transferred electronically to the
1574 lessor is intended as a form of financing:
1575 (A) for the tangible personal property or product transferred electronically; and
1576 (B) to the purchaser-lessee; and
1577 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1578 is required to:
1579 (A) capitalize the tangible personal property or product transferred electronically for
1580 financial reporting purposes; and
1581 (B) account for the lease payments as payments made under a financing arrangement.
1582 (121) "Sales and use tax" means a tax imposed under this chapter.
1583 [
1584 [
1585 [
1586 paid to, or amounts charged by a school:
1587 (i) sales that are directly related to the school's educational functions or activities
1588 including:
1589 (A) the sale of:
1590 (I) textbooks;
1591 (II) textbook fees;
1592 (III) laboratory fees;
1593 (IV) laboratory supplies; or
1594 (V) safety equipment;
1595 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1596 that:
1597 (I) a student is specifically required to wear as a condition of participation in a
1598 school-related event or school-related activity; and
1599 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1600 place of ordinary clothing;
1601 (C) sales of the following if the net or gross revenues generated by the sales are
1602 deposited into a school district fund or school fund dedicated to school meals:
1603 (I) food and food ingredients; or
1604 (II) prepared food; or
1605 (D) transportation charges for official school activities; or
1606 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1607 event or school-related activity.
1608 (b) "Sales relating to schools" does not include:
1609 (i) bookstore sales of items that are not educational materials or supplies;
1610 (ii) except as provided in Subsection [
1611 (A) clothing;
1612 (B) clothing accessories or equipment;
1613 (C) protective equipment; or
1614 (D) sports or recreational equipment; or
1615 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1616 event or school-related activity if the amounts paid or charged are passed through to a person:
1617 (A) other than a:
1618 (I) school;
1619 (II) nonprofit organization authorized by a school board or a governing body of a
1620 private school to organize and direct a competitive secondary school activity; or
1621 (III) nonprofit association authorized by a school board or a governing body of a
1622 private school to organize and direct a competitive secondary school activity; and
1623 (B) that is required to collect sales and use taxes under this chapter.
1624 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1625 commission may make rules defining the term "passed through."
1626 [
1627 (a) an elementary school or a secondary school that:
1628 (i) is a:
1629 (A) public school; or
1630 (B) private school; and
1631 (ii) provides instruction for one or more grades kindergarten through 12; or
1632 (b) a public school district.
1633 [
1634 (i) tangible personal property;
1635 (ii) a product transferred electronically; or
1636 (iii) a service.
1637 (b) "Seller" includes a marketplace facilitator.
1638 [
1639 materials" means tangible personal property or a product transferred electronically if the
1640 tangible personal property or product transferred electronically is:
1641 (i) used primarily in the process of:
1642 (A) (I) manufacturing a semiconductor;
1643 (II) fabricating a semiconductor; or
1644 (III) research or development of a:
1645 (Aa) semiconductor; or
1646 (Bb) semiconductor manufacturing process; or
1647 (B) maintaining an environment suitable for a semiconductor; or
1648 (ii) consumed primarily in the process of:
1649 (A) (I) manufacturing a semiconductor;
1650 (II) fabricating a semiconductor; or
1651 (III) research or development of a:
1652 (Aa) semiconductor; or
1653 (Bb) semiconductor manufacturing process; or
1654 (B) maintaining an environment suitable for a semiconductor.
1655 (b) "Semiconductor fabricating, processing, research, or development materials"
1656 includes:
1657 (i) parts used in the repairs or renovations of tangible personal property or a product
1658 transferred electronically described in Subsection [
1659 (ii) a chemical, catalyst, or other material used to:
1660 (A) produce or induce in a semiconductor a:
1661 (I) chemical change; or
1662 (II) physical change;
1663 (B) remove impurities from a semiconductor; or
1664 (C) improve the marketable condition of a semiconductor.
1665 [
1666 providing services to the aged as defined in Section 62A-3-101.
1667 (128) "Shared vehicle" means the same as that term is defined in Section 13-48a-101.
1668 (129) "Shared vehicle driver" means the same as that term is defined in Section
1669 13-48a-101.
1670 (130) "Shared vehicle owner" means the same as that term is defined in Section
1671 13-48a-101.
1672 [
1673 lodging consumable" means tangible personal property that:
1674 (i) a business that provides accommodations and services described in Subsection
1675 59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
1676 to a purchaser;
1677 (ii) is intended to be consumed by the purchaser; and
1678 (iii) is:
1679 (A) included in the purchase price of the accommodations and services; and
1680 (B) not separately stated on an invoice, bill of sale, or other similar document provided
1681 to the purchaser.
1682 (b) "Short-term lodging consumable" includes:
1683 (i) a beverage;
1684 (ii) a brush or comb;
1685 (iii) a cosmetic;
1686 (iv) a hair care product;
1687 (v) lotion;
1688 (vi) a magazine;
1689 (vii) makeup;
1690 (viii) a meal;
1691 (ix) mouthwash;
1692 (x) nail polish remover;
1693 (xi) a newspaper;
1694 (xii) a notepad;
1695 (xiii) a pen;
1696 (xiv) a pencil;
1697 (xv) a razor;
1698 (xvi) saline solution;
1699 (xvii) a sewing kit;
1700 (xviii) shaving cream;
1701 (xix) a shoe shine kit;
1702 (xx) a shower cap;
1703 (xxi) a snack item;
1704 (xxii) soap;
1705 (xxiii) toilet paper;
1706 (xxiv) a toothbrush;
1707 (xxv) toothpaste; or
1708 (xxvi) an item similar to Subsections [
1709 commission may provide by rule made in accordance with Title 63G, Chapter 3, Utah
1710 Administrative Rulemaking Act.
1711 (c) "Short-term lodging consumable" does not include:
1712 (i) tangible personal property that is cleaned or washed to allow the tangible personal
1713 property to be reused; or
1714 (ii) a product transferred electronically.
1715 [
1716 (a) described in Section 318(C) of the agreement; and
1717 (b) approved by the governing board of the agreement.
1718 [
1719 producing electricity.
1720 [
1721 (i) designed for human use; and
1722 (ii) that is:
1723 (A) worn in conjunction with:
1724 (I) an athletic activity; or
1725 (II) a recreational activity; and
1726 (B) not suitable for general use.
1727 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1728 commission shall make rules:
1729 (i) listing the items that constitute "sports or recreational equipment"; and
1730 (ii) that are consistent with the list of items that constitute "sports or recreational
1731 equipment" under the agreement.
1732 [
1733 [
1734 any other taxable transaction under Subsection 59-12-103(1), in this state for any purpose
1735 except sale in the regular course of business.
1736 [
1737 personal property" means personal property that:
1738 (i) may be:
1739 (A) seen;
1740 (B) weighed;
1741 (C) measured;
1742 (D) felt; or
1743 (E) touched; or
1744 (ii) is in any manner perceptible to the senses.
1745 (b) "Tangible personal property" includes:
1746 (i) electricity;
1747 (ii) water;
1748 (iii) gas;
1749 (iv) steam; or
1750 (v) prewritten computer software, regardless of the manner in which the prewritten
1751 computer software is transferred.
1752 (c) "Tangible personal property" includes the following regardless of whether the item
1753 is attached to real property:
1754 (i) a dishwasher;
1755 (ii) a dryer;
1756 (iii) a freezer;
1757 (iv) a microwave;
1758 (v) a refrigerator;
1759 (vi) a stove;
1760 (vii) a washer; or
1761 (viii) an item similar to Subsections [
1762 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1763 Administrative Rulemaking Act.
1764 (d) "Tangible personal property" does not include a product that is transferred
1765 electronically.
1766 (e) "Tangible personal property" does not include the following if attached to real
1767 property, regardless of whether the attachment to real property is only through a line that
1768 supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1769 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1770 Rulemaking Act:
1771 (i) a hot water heater;
1772 (ii) a water filtration system; or
1773 (iii) a water softener system.
1774 [
1775 or software" means an item listed in Subsection [
1776 leased primarily to enable or facilitate one or more of the following to function:
1777 (i) telecommunications switching or routing equipment, machinery, or software; or
1778 (ii) telecommunications transmission equipment, machinery, or software.
1779 (b) The following apply to Subsection [
1780 (i) a pole;
1781 (ii) software;
1782 (iii) a supplementary power supply;
1783 (iv) temperature or environmental equipment or machinery;
1784 (v) test equipment;
1785 (vi) a tower; or
1786 (vii) equipment, machinery, or software that functions similarly to an item listed in
1787 Subsections [
1788 made in accordance with Subsection [
1789 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1790 commission may by rule define what constitutes equipment, machinery, or software that
1791 functions similarly to an item listed in Subsections [
1792 [
1793 911 service" means equipment, machinery, or software that is required to comply with 47
1794 C.F.R. Sec. 20.18.
1795 [
1796 software" means equipment, machinery, or software purchased or leased primarily to maintain
1797 or repair one or more of the following, regardless of whether the equipment, machinery, or
1798 software is purchased or leased as a spare part or as an upgrade or modification to one or more
1799 of the following:
1800 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1801 (b) telecommunications switching or routing equipment, machinery, or software; or
1802 (c) telecommunications transmission equipment, machinery, or software.
1803 [
1804 routing, or transmission of audio, data, video, voice, or any other information or signal to a
1805 point, or among or between points.
1806 (b) "Telecommunications service" includes:
1807 (i) an electronic conveyance, routing, or transmission with respect to which a computer
1808 processing application is used to act:
1809 (A) on the code, form, or protocol of the content;
1810 (B) for the purpose of electronic conveyance, routing, or transmission; and
1811 (C) regardless of whether the service:
1812 (I) is referred to as voice over Internet protocol service; or
1813 (II) is classified by the Federal Communications Commission as enhanced or value
1814 added;
1815 (ii) an 800 service;
1816 (iii) a 900 service;
1817 (iv) a fixed wireless service;
1818 (v) a mobile wireless service;
1819 (vi) a postpaid calling service;
1820 (vii) a prepaid calling service;
1821 (viii) a prepaid wireless calling service; or
1822 (ix) a private communications service.
1823 (c) "Telecommunications service" does not include:
1824 (i) advertising, including directory advertising;
1825 (ii) an ancillary service;
1826 (iii) a billing and collection service provided to a third party;
1827 (iv) a data processing and information service if:
1828 (A) the data processing and information service allows data to be:
1829 (I) (Aa) acquired;
1830 (Bb) generated;
1831 (Cc) processed;
1832 (Dd) retrieved; or
1833 (Ee) stored; and
1834 (II) delivered by an electronic transmission to a purchaser; and
1835 (B) the purchaser's primary purpose for the underlying transaction is the processed data
1836 or information;
1837 (v) installation or maintenance of the following on a customer's premises:
1838 (A) equipment; or
1839 (B) wiring;
1840 (vi) Internet access service;
1841 (vii) a paging service;
1842 (viii) a product transferred electronically, including:
1843 (A) music;
1844 (B) reading material;
1845 (C) a ring tone;
1846 (D) software; or
1847 (E) video;
1848 (ix) a radio and television audio and video programming service:
1849 (A) regardless of the medium; and
1850 (B) including:
1851 (I) furnishing conveyance, routing, or transmission of a television audio and video
1852 programming service by a programming service provider;
1853 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1854 (III) audio and video programming services delivered by a commercial mobile radio
1855 service provider as defined in 47 C.F.R. Sec. 20.3;
1856 (x) a value-added nonvoice data service; or
1857 (xi) tangible personal property.
1858 [
1859 (i) owns, controls, operates, or manages a telecommunications service; and
1860 (ii) engages in an activity described in Subsection [
1861 shared use with or resale to any person of the telecommunications service.
1862 (b) A person described in Subsection [
1863 service provider whether or not the Public Service Commission of Utah regulates:
1864 (i) that person; or
1865 (ii) the telecommunications service that the person owns, controls, operates, or
1866 manages.
1867 [
1868 software" means an item listed in Subsection [
1869 leased primarily for switching or routing:
1870 (i) an ancillary service;
1871 (ii) data communications;
1872 (iii) voice communications; or
1873 (iv) telecommunications service.
1874 (b) The following apply to Subsection [
1875 (i) a bridge;
1876 (ii) a computer;
1877 (iii) a cross connect;
1878 (iv) a modem;
1879 (v) a multiplexer;
1880 (vi) plug in circuitry;
1881 (vii) a router;
1882 (viii) software;
1883 (ix) a switch; or
1884 (x) equipment, machinery, or software that functions similarly to an item listed in
1885 Subsections [
1886 made in accordance with Subsection [
1887 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1888 commission may by rule define what constitutes equipment, machinery, or software that
1889 functions similarly to an item listed in Subsections [
1890 [
1891 software" means an item listed in Subsection [
1892 leased primarily for sending, receiving, or transporting:
1893 (i) an ancillary service;
1894 (ii) data communications;
1895 (iii) voice communications; or
1896 (iv) telecommunications service.
1897 (b) The following apply to Subsection [
1898 (i) an amplifier;
1899 (ii) a cable;
1900 (iii) a closure;
1901 (iv) a conduit;
1902 (v) a controller;
1903 (vi) a duplexer;
1904 (vii) a filter;
1905 (viii) an input device;
1906 (ix) an input/output device;
1907 (x) an insulator;
1908 (xi) microwave machinery or equipment;
1909 (xii) an oscillator;
1910 (xiii) an output device;
1911 (xiv) a pedestal;
1912 (xv) a power converter;
1913 (xvi) a power supply;
1914 (xvii) a radio channel;
1915 (xviii) a radio receiver;
1916 (xix) a radio transmitter;
1917 (xx) a repeater;
1918 (xxi) software;
1919 (xxii) a terminal;
1920 (xxiii) a timing unit;
1921 (xxiv) a transformer;
1922 (xxv) a wire; or
1923 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1924 Subsections [
1925 made in accordance with Subsection [
1926 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1927 commission may by rule define what constitutes equipment, machinery, or software that
1928 functions similarly to an item listed in Subsections [
1929 [
1930 printed material that is required for a course:
1931 (i) offered by an institution of higher education; and
1932 (ii) that the purchaser of the textbook or other printed material attends or will attend.
1933 (b) "Textbook for a higher education course" includes a textbook in electronic format.
1934 [
1935 (a) a cigarette;
1936 (b) a cigar;
1937 (c) chewing tobacco;
1938 (d) pipe tobacco; or
1939 (e) any other item that contains tobacco.
1940 [
1941 device, or ride device that is started and stopped by the purchaser or renter of the right to use or
1942 operate the amusement device, skill device, or ride device.
1943 [
1944 property, a product transferred electronically, or a service under Subsection 59-12-103(1),
1945 incident to the ownership or the leasing of that tangible personal property, product transferred
1946 electronically, or service.
1947 (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1948 property, a product transferred electronically, or a service in the regular course of business and
1949 held for resale.
1950 [
1951 (a) that otherwise meets the definition of a telecommunications service except that a
1952 computer processing application is used to act primarily for a purpose other than conveyance,
1953 routing, or transmission; and
1954 (b) with respect to which a computer processing application is used to act on data or
1955 information:
1956 (i) code;
1957 (ii) content;
1958 (iii) form; or
1959 (iv) protocol.
1960 [
1961 following that are required to be titled, registered, or titled and registered:
1962 (i) an aircraft as defined in Section 72-10-102;
1963 (ii) a vehicle as defined in Section 41-1a-102;
1964 (iii) an off-highway vehicle as defined in Section 41-22-2; or
1965 (iv) a vessel as defined in Section 41-1a-102.
1966 (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
1967 (i) a vehicle described in Subsection [
1968 (ii) (A) a locomotive;
1969 (B) a freight car;
1970 (C) railroad work equipment; or
1971 (D) other railroad rolling stock.
1972 [
1973 selling, or exchanging a vehicle as defined in Subsection [
1974 [
1975 (i) is offered in connection with one or more telecommunications services; and
1976 (ii) offers an advanced calling feature that allows a customer to:
1977 (A) identify a caller; and
1978 (B) manage multiple calls and call connections.
1979 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1980 conference bridging service.
1981 [
1982 customer to receive, send, or store a recorded message.
1983 (b) "Voice mail service" does not include a vertical service that a customer is required
1984 to have in order to utilize a voice mail service.
1985 [
1986 facility" means a facility that generates electricity:
1987 (i) using as the primary source of energy waste materials that would be placed in a
1988 landfill or refuse pit if it were not used to generate electricity, including:
1989 (A) tires;
1990 (B) waste coal;
1991 (C) oil shale; or
1992 (D) municipal solid waste; and
1993 (ii) in amounts greater than actually required for the operation of the facility.
1994 (b) "Waste energy facility" does not include a facility that incinerates:
1995 (i) hospital waste as defined in 40 C.F.R. 60.51c; or
1996 (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1997 [
1998 [
1999 electricity.
2000 [
2001 geographic location by the United States Postal Service.
2002 Section 16. Section 59-12-103 is amended to read:
2003 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
2004 tax revenues.
2005 (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
2006 sales price for amounts paid or charged for the following transactions:
2007 (a) retail sales of tangible personal property made within the state;
2008 (b) amounts paid for:
2009 (i) telecommunications service, other than mobile telecommunications service, that
2010 originates and terminates within the boundaries of this state;
2011 (ii) mobile telecommunications service that originates and terminates within the
2012 boundaries of one state only to the extent permitted by the Mobile Telecommunications
2013 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
2014 (iii) an ancillary service associated with a:
2015 (A) telecommunications service described in Subsection (1)(b)(i); or
2016 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
2017 (c) sales of the following for commercial use:
2018 (i) gas;
2019 (ii) electricity;
2020 (iii) heat;
2021 (iv) coal;
2022 (v) fuel oil; or
2023 (vi) other fuels;
2024 (d) sales of the following for residential use:
2025 (i) gas;
2026 (ii) electricity;
2027 (iii) heat;
2028 (iv) coal;
2029 (v) fuel oil; or
2030 (vi) other fuels;
2031 (e) sales of prepared food;
2032 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
2033 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
2034 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
2035 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
2036 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
2037 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
2038 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
2039 horseback rides, sports activities, or any other amusement, entertainment, recreation,
2040 exhibition, cultural, or athletic activity;
2041 (g) amounts paid or charged for services for repairs or renovations of tangible personal
2042 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
2043 (i) the tangible personal property; and
2044 (ii) parts used in the repairs or renovations of the tangible personal property described
2045 in Subsection (1)(g)(i), regardless of whether:
2046 (A) any parts are actually used in the repairs or renovations of that tangible personal
2047 property; or
2048 (B) the particular parts used in the repairs or renovations of that tangible personal
2049 property are exempt from a tax under this chapter;
2050 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
2051 assisted cleaning or washing of tangible personal property;
2052 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
2053 accommodations and services that are regularly rented for less than 30 consecutive days;
2054 (j) amounts paid or charged for laundry or dry cleaning services;
2055 (k) amounts paid or charged for leases or rentals of tangible personal property if within
2056 this state the tangible personal property is:
2057 (i) stored;
2058 (ii) used; or
2059 (iii) otherwise consumed;
2060 (l) amounts paid or charged for tangible personal property if within this state the
2061 tangible personal property is:
2062 (i) stored;
2063 (ii) used; or
2064 (iii) consumed; and
2065 (m) amounts paid or charged for a sale:
2066 (i) (A) of a product transferred electronically; or
2067 (B) of a repair or renovation of a product transferred electronically; and
2068 (ii) regardless of whether the sale provides:
2069 (A) a right of permanent use of the product; or
2070 (B) a right to use the product that is less than a permanent use, including a right:
2071 (I) for a definite or specified length of time; and
2072 (II) that terminates upon the occurrence of a condition.
2073 (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
2074 are imposed on a transaction described in Subsection (1) equal to the sum of:
2075 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
2076 (A) 4.70% plus the rate specified in Subsection (12)(a); and
2077 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
2078 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
2079 through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
2080 State Sales and Use Tax Act; and
2081 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
2082 and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
2083 through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
2084 imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
2085 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2086 transaction under this chapter other than this part.
2087 (b) Except as provided in Subsection [
2088 Subsection [
2089 Subsection (1)(d) equal to the sum of:
2090 (i) a state tax imposed on the transaction at a tax rate of 2%; and
2091 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2092 transaction under this chapter other than this part.
2093 (c) Except as provided in Subsection [
2094 tax are imposed on amounts paid or charged for food and food ingredients equal to the sum of:
2095 (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
2096 a tax rate of 1.75%; and
2097 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2098 amounts paid or charged for food and food ingredients under this chapter other than this part.
2099 (d) Except as provided in Subsection [
2100 on amounts paid or charged for fuel to a common carrier that is a railroad for use in a
2101 locomotive engine at a rate of 4.85%.
2102 (e) (i) If a shared vehicle is an individual-owned shared vehicle, a tax imposed under
2103 Subsection (2)(a)(i) does not apply to car sharing, a car-sharing program, a shared vehicle
2104 driver, or a shared vehicle owner.
2105 (ii) A tax imposed under Subsection (2)(a)(ii) applies to car sharing.
2106 [
2107 and tangible personal property other than food and food ingredients, a state tax and a local tax
2108 is imposed on the entire bundled transaction equal to the sum of:
2109 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
2110 (I) the tax rate described in Subsection (2)(a)(i)(A); and
2111 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
2112 Sales and Use Tax Act, if the location of the transaction as determined under Sections
2113 59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
2114 Additional State Sales and Use Tax Act; and
2115 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
2116 Sales and Use Tax Act, if the location of the transaction as determined under Sections
2117 59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
2118 the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
2119 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
2120 described in Subsection (2)(a)(ii).
2121 (ii) If an optional computer software maintenance contract is a bundled transaction that
2122 consists of taxable and nontaxable products that are not separately itemized on an invoice or
2123 similar billing document, the purchase of the optional computer software maintenance contract
2124 is 40% taxable under this chapter and 60% nontaxable under this chapter.
2125 (iii) Subject to Subsection [
2126 bundled transaction described in Subsection [
2127 (A) if the sales price of the bundled transaction is attributable to tangible personal
2128 property, a product, or a service that is subject to taxation under this chapter and tangible
2129 personal property, a product, or service that is not subject to taxation under this chapter, the
2130 entire bundled transaction is subject to taxation under this chapter unless:
2131 (I) the seller is able to identify by reasonable and verifiable standards the tangible
2132 personal property, product, or service that is not subject to taxation under this chapter from the
2133 books and records the seller keeps in the seller's regular course of business; or
2134 (II) state or federal law provides otherwise; or
2135 (B) if the sales price of a bundled transaction is attributable to two or more items of
2136 tangible personal property, products, or services that are subject to taxation under this chapter
2137 at different rates, the entire bundled transaction is subject to taxation under this chapter at the
2138 higher tax rate unless:
2139 (I) the seller is able to identify by reasonable and verifiable standards the tangible
2140 personal property, product, or service that is subject to taxation under this chapter at the lower
2141 tax rate from the books and records the seller keeps in the seller's regular course of business; or
2142 (II) state or federal law provides otherwise.
2143 (iv) For purposes of Subsection [
2144 keeps in the seller's regular course of business includes books and records the seller keeps in
2145 the regular course of business for nontax purposes.
2146 [
2147 [
2148 personal property, a product, or a service that is subject to taxation under this chapter, and the
2149 sale, lease, or rental of tangible personal property, other property, a product, or a service that is
2150 not subject to taxation under this chapter, the entire transaction is subject to taxation under this
2151 chapter unless the seller, at the time of the transaction:
2152 (A) separately states the portion of the transaction that is not subject to taxation under
2153 this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
2154 (B) is able to identify by reasonable and verifiable standards, from the books and
2155 records the seller keeps in the seller's regular course of business, the portion of the transaction
2156 that is not subject to taxation under this chapter.
2157 (ii) A purchaser and a seller may correct the taxability of a transaction if:
2158 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
2159 the transaction that is not subject to taxation under this chapter was not separately stated on an
2160 invoice, bill of sale, or similar document provided to the purchaser because of an error or
2161 ignorance of the law; and
2162 (B) the seller is able to identify by reasonable and verifiable standards, from the books
2163 and records the seller keeps in the seller's regular course of business, the portion of the
2164 transaction that is not subject to taxation under this chapter.
2165 (iii) For purposes of Subsections [
2166 seller keeps in the seller's regular course of business includes books and records the seller
2167 keeps in the regular course of business for nontax purposes.
2168 [
2169 tangible personal property, products, or services that are subject to taxation under this chapter
2170 at different rates, the entire purchase is subject to taxation under this chapter at the higher tax
2171 rate unless the seller, at the time of the transaction:
2172 (A) separately states the items subject to taxation under this chapter at each of the
2173 different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
2174 (B) is able to identify by reasonable and verifiable standards the tangible personal
2175 property, product, or service that is subject to taxation under this chapter at the lower tax rate
2176 from the books and records the seller keeps in the seller's regular course of business.
2177 (ii) For purposes of Subsection [
2178 keeps in the seller's regular course of business includes books and records the seller keeps in
2179 the regular course of business for nontax purposes.
2180 [
2181 change for a tax rate imposed under the following shall take effect on the first day of a calendar
2182 quarter:
2183 (i) Subsection (2)(a)(i)(A);
2184 (ii) Subsection (2)(b)(i);
2185 (iii) Subsection (2)(c)(i); or
2186 (iv) Subsection [
2187 [
2188 begins on or after the effective date of the tax rate increase if the billing period for the
2189 transaction begins before the effective date of a tax rate increase imposed under:
2190 (A) Subsection (2)(a)(i)(A);
2191 (B) Subsection (2)(b)(i);
2192 (C) Subsection (2)(c)(i); or
2193 (D) Subsection [
2194 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
2195 statement for the billing period is rendered on or after the effective date of the repeal of the tax
2196 or the tax rate decrease imposed under:
2197 (A) Subsection (2)(a)(i)(A);
2198 (B) Subsection (2)(b)(i);
2199 (C) Subsection (2)(c)(i); or
2200 (D) Subsection [
2201 [
2202 catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, a
2203 tax rate repeal or change in a tax rate takes effect:
2204 (A) on the first day of a calendar quarter; and
2205 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
2206 (ii) Subsection [
2207 (A) Subsection (2)(a)(i)(A);
2208 (B) Subsection (2)(b)(i);
2209 (C) Subsection (2)(c)(i); or
2210 (D) Subsection [
2211 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2212 the commission may by rule define the term "catalogue sale."
2213 [
2214 shall determine the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel
2215 based on the predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the
2216 location.
2217 (ii) Subsection [
2218 fuel oil, or other fuel is furnished through a single meter for two or more of the following uses:
2219 (A) a commercial use;
2220 (B) an industrial use; or
2221 (C) a residential use.
2222 (3) (a) The following state taxes shall be deposited into the General Fund:
2223 (i) the tax imposed by Subsection (2)(a)(i)(A);
2224 (ii) the tax imposed by Subsection (2)(b)(i);
2225 (iii) the tax imposed by Subsection (2)(c)(i); and
2226 (iv) the tax imposed by Subsection [
2227 (b) The following local taxes shall be distributed to a county, city, or town as provided
2228 in this chapter:
2229 (i) the tax imposed by Subsection (2)(a)(ii);
2230 (ii) the tax imposed by Subsection (2)(b)(ii);
2231 (iii) the tax imposed by Subsection (2)(c)(ii); and
2232 (iv) the tax imposed by Subsection [
2233 (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
2234 Fund.
2235 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2236 2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
2237 through (g):
2238 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
2239 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
2240 (B) for the fiscal year; or
2241 (ii) $17,500,000.
2242 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
2243 described in Subsection (4)(a) shall be transferred each year as designated sales and use tax
2244 revenue to the Department of Natural Resources to:
2245 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
2246 protect sensitive plant and animal species; or
2247 (B) award grants, up to the amount authorized by the Legislature in an appropriations
2248 act, to political subdivisions of the state to implement the measures described in Subsections
2249 79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
2250 (ii) Money transferred to the Department of Natural Resources under Subsection
2251 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
2252 person to list or attempt to have listed a species as threatened or endangered under the
2253 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
2254 (iii) At the end of each fiscal year:
2255 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
2256 Water Resources Conservation and Development Fund created in Section 73-10-24;
2257 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2258 Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
2259 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2260 Drinking Water Loan Program Subaccount created in Section 73-10c-5.
2261 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
2262 Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
2263 created in Section 4-18-106.
2264 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
2265 in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to
2266 the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for
2267 the adjudication of water rights.
2268 (ii) At the end of each fiscal year:
2269 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
2270 Water Resources Conservation and Development Fund created in Section 73-10-24;
2271 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2272 Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
2273 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2274 Drinking Water Loan Program Subaccount created in Section 73-10c-5.
2275 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
2276 in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
2277 Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
2278 (ii) In addition to the uses allowed of the Water Resources Conservation and
2279 Development Fund under Section 73-10-24, the Water Resources Conservation and
2280 Development Fund may also be used to:
2281 (A) conduct hydrologic and geotechnical investigations by the Division of Water
2282 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
2283 quantifying surface and ground water resources and describing the hydrologic systems of an
2284 area in sufficient detail so as to enable local and state resource managers to plan for and
2285 accommodate growth in water use without jeopardizing the resource;
2286 (B) fund state required dam safety improvements; and
2287 (C) protect the state's interest in interstate water compact allocations, including the
2288 hiring of technical and legal staff.
2289 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2290 in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
2291 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
2292 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2293 in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
2294 created in Section 73-10c-5 for use by the Division of Drinking Water to:
2295 (i) provide for the installation and repair of collection, treatment, storage, and
2296 distribution facilities for any public water system, as defined in Section 19-4-102;
2297 (ii) develop underground sources of water, including springs and wells; and
2298 (iii) develop surface water sources.
2299 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2300 2006, the difference between the following amounts shall be expended as provided in this
2301 Subsection (5), if that difference is greater than $1:
2302 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
2303 fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
2304 (ii) $17,500,000.
2305 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
2306 (A) transferred each fiscal year to the Department of Natural Resources as designated
2307 sales and use tax revenue; and
2308 (B) expended by the Department of Natural Resources for watershed rehabilitation or
2309 restoration.
2310 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
2311 tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation
2312 and Development Fund created in Section 73-10-24.
2313 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
2314 remaining difference described in Subsection (5)(a) shall be:
2315 (A) transferred each fiscal year to the Division of Water Resources as designated sales
2316 and use tax revenue; and
2317 (B) expended by the Division of Water Resources for cloud-seeding projects
2318 authorized by Title 73, Chapter 15, Modification of Weather.
2319 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
2320 tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation
2321 and Development Fund created in Section 73-10-24.
2322 (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
2323 remaining difference described in Subsection (5)(a) shall be deposited into the Water
2324 Resources Conservation and Development Fund created in Section 73-10-24 for use by the
2325 Division of Water Resources for:
2326 (i) preconstruction costs:
2327 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
2328 26, Bear River Development Act; and
2329 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
2330 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
2331 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
2332 Chapter 26, Bear River Development Act;
2333 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
2334 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
2335 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
2336 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
2337 (e) After making the transfers required by Subsections (5)(b) and (c), 15% of the
2338 remaining difference described in Subsection (5)(a) shall be deposited each year into the Water
2339 Rights Restricted Account created by Section 73-2-1.6.
2340 (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
2341 amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
2342 (1) for the fiscal year shall be deposited as follows:
2343 (a) for fiscal year 2020-21 only:
2344 (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
2345 Transportation Investment Fund of 2005 created by Section 72-2-124; and
2346 (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
2347 Water Infrastructure Restricted Account created by Section 73-10g-103; and
2348 (b) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
2349 in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
2350 created by Section 73-10g-103.
2351 (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
2352 Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
2353 2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
2354 created by Section 72-2-124:
2355 (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
2356 the revenues collected from the following taxes, which represents a portion of the
2357 approximately 17% of sales and use tax revenues generated annually by the sales and use tax
2358 on vehicles and vehicle-related products:
2359 (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
2360 (B) the tax imposed by Subsection (2)(b)(i);
2361 (C) the tax imposed by Subsection (2)(c)(i); and
2362 (D) the tax imposed by Subsection [
2363 (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
2364 current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
2365 (D) that exceeds the amount collected from the sales and use taxes described in Subsections
2366 (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
2367 (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
2368 the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
2369 lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
2370 generated in the current fiscal year than the total percentage of sales and use taxes deposited in
2371 the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
2372 (7)(a) equal to the product of:
2373 (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
2374 previous fiscal year; and
2375 (B) the total sales and use tax revenue generated by the taxes described in Subsections
2376 (7)(a)(i)(A) through (D) in the current fiscal year.
2377 (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
2378 Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
2379 described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
2380 Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
2381 Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
2382 (iii) Subject to Subsection (7)(b)(iv)(E), in all subsequent fiscal years after a year in
2383 which 17% of the revenues collected from the sales and use taxes described in Subsections
2384 (7)(a)(i)(A) through (D) was deposited under Subsection (7)(a), the Division of Finance shall
2385 annually deposit 17% of the revenues collected from the sales and use taxes described in
2386 Subsections (7)(a)(i)(A) through (D) in the current fiscal year under Subsection (7)(a).
2387 (iv) (A) As used in this Subsection (7)(b)(iv), "additional growth revenue" means the
2388 amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
2389 the relevant revenue collected in the previous fiscal year.
2390 (B) As used in this Subsection (7)(b)(iv), "combined amount" means the combined
2391 total amount of money deposited into the Cottonwood Canyons fund under Subsections
2392 (7)(b)(iv)(F) and (8)(d)(vi) in any single fiscal year.
2393 (C) As used in this Subsection (7)(b)(iv), "Cottonwood Canyons fund" means the
2394 Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
2395 (D) As used in this Subsection (7)(b)(iv), "relevant revenue" means the portion of taxes
2396 listed under Subsection (3)(a) that equals 17% of the revenue collected from taxes described in
2397 Subsections (7)(a)(i)(A) through (D).
2398 (E) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
2399 reduce the deposit under Subsection (7)(b)(iii) into the Transportation Investment Fund of 2005
2400 by an amount equal to the amount of the deposit under this Subsection (7)(b)(iv) to the
2401 Cottonwood Canyons fund in the previous fiscal year plus 25% of additional growth revenue,
2402 subject to the limit in Subsection (7)(b)(iv)(F).
2403 (F) The commission shall annually deposit the amount described in Subsection
2404 (7)(b)(iv)(E) into the Cottonwood Canyons fund, subject to an annual maximum combined
2405 amount for any single fiscal year of $20,000,000.
2406 (G) If the amount of relevant revenue declines in a fiscal year compared to the previous
2407 fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
2408 Canyons fund under this Subsection (7)(b)(iv) in the same proportion as the decline in relevant
2409 revenue.
2410 (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
2411 Subsections (6) and (7), and subject to Subsections (8)(b) and (d)(v), for a fiscal year beginning
2412 on or after July 1, 2018, the commission shall annually deposit into the Transportation
2413 Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under
2414 Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the following
2415 taxes:
2416 (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
2417 (ii) the tax imposed by Subsection (2)(b)(i);
2418 (iii) the tax imposed by Subsection (2)(c)(i); and
2419 (iv) the tax imposed by Subsection [
2420 (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
2421 reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
2422 an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
2423 the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
2424 or use in this state that exceeds 29.4 cents per gallon.
2425 (c) The commission shall annually deposit the amount described in Subsection (8)(b)
2426 into the Transit Transportation Investment Fund created in Section 72-2-124.
2427 (d) (i) As used in this Subsection (8)(d), "additional growth revenue" means the
2428 amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
2429 the relevant revenue collected in the previous fiscal year.
2430 (ii) As used in this Subsection (8)(d), "combined amount" means the combined total
2431 amount of money deposited into the Cottonwood Canyons fund under Subsections (7)(b)(iv)(F)
2432 and (8)(d)(vi) in any single fiscal year.
2433 (iii) As used in this Subsection (8)(d), "Cottonwood Canyons fund" means the
2434 Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
2435 (iv) As used in this Subsection (8)(d), "relevant revenue" means the portion of taxes
2436 listed under Subsection (3)(a) that equals 3.68% of the revenue collected from taxes described
2437 in Subsections (8)(a)(i) through (iv).
2438 (v) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
2439 reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
2440 an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
2441 Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
2442 limit in Subsection (8)(d)(vi).
2443 (vi) The commission shall annually deposit the amount described in Subsection
2444 (8)(d)(v) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
2445 for any single fiscal year of $20,000,000.
2446 (vii) If the amount of relevant revenue declines in a fiscal year compared to the
2447 previous fiscal year, the commission shall decrease the amount of the contribution to the
2448 Cottonwood Canyons fund under this Subsection (8)(d) in the same proportion as the decline in
2449 relevant revenue.
2450 (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2451 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
2452 created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
2453 (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(b),
2454 and in addition to any amounts deposited under Subsections (6), (7), and (8), the Division of
2455 Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
2456 72-2-124 the amount of revenue described as follows:
2457 (i) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a .05%
2458 tax rate on the transactions described in Subsection (1); and
2459 (ii) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
2460 tax rate on the transactions described in Subsection (1).
2461 (b) For purposes of Subsection (10)(a), the Division of Finance may not deposit into
2462 the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
2463 charged for food and food ingredients, except for tax revenue generated by a bundled
2464 transaction attributable to food and food ingredients and tangible personal property other than
2465 food and food ingredients described in Subsection [
2466 (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
2467 fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
2468 construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
2469 Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
2470 generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
2471 created in Section 63N-2-512.
2472 (12) (a) The rate specified in this subsection is 0.15%.
2473 (b) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
2474 beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
2475 rate described in Subsection (12)(a) on the transactions that are subject to the sales and use tax
2476 under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section
2477 26-36b-208.
2478 (13) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2479 2020-21, the Division of Finance shall deposit $200,000 into the General Fund as a dedicated
2480 credit solely for use of the Search and Rescue Financial Assistance Program created in, and
2481 expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
2482 (14) (a) For each fiscal year beginning with fiscal year 2020-21, the Division of
2483 Finance shall annually transfer $1,813,400 of the revenue deposited into the Transportation
2484 Investment Fund of 2005 under Subsections (6) through (8) to the General Fund.
2485 (b) If the total revenue deposited into the Transportation Investment Fund of 2005
2486 under Subsections (6) through (8) is less than $1,813,400 for a fiscal year, the Division of
2487 Finance shall transfer the total revenue deposited into the Transportation Investment Fund of
2488 2005 under Subsections (6) through (8) during the fiscal year to the General Fund.
2489 (15) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610,
2490 beginning the first day of the calendar quarter one year after the sales and use tax boundary for
2491 a housing and transit reinvestment zone is established, the commission, at least annually, shall
2492 transfer an amount equal to 15% of the sales and use tax increment within an established sales
2493 and use tax boundary, as defined in Section 63N-3-602, into the Transit Transportation
2494 Investment Fund created in Section 72-2-124.
2495 (16) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
2496 beginning on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure
2497 Restricted Account, created in Section 51-9-902, a portion of the taxes listed under Subsection
2498 (3)(a) equal to 1% of the revenues collected from the following sales and use taxes:
2499 (a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
2500 (b) the tax imposed by Subsection (2)(b)(i);
2501 (c) the tax imposed by Subsection (2)(c)(i); and
2502 (d) the tax imposed by Subsection [
2503 Section 17. Section 59-12-602 is amended to read:
2504 59-12-602. Definitions.
2505 As used in this part:
2506 (1) (a) Subject to Subsection (1)(b), "airport facility" means an airport of regional
2507 significance, as defined by the Transportation Commission by rule made in accordance with
2508 Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
2509 (b) "Airport facility" includes:
2510 (i) an appurtenance to an airport, including a fixed guideway that provides
2511 transportation service to or from the airport;
2512 (ii) a control tower, including a radar system;
2513 (iii) a public area of an airport; or
2514 (iv) a terminal facility.
2515 (2) "All-terrain type I vehicle" means the same as that term is defined in Section
2516 41-22-2.
2517 (3) "All-terrain type II vehicle" means the same as that term is defined in Section
2518 41-22-2.
2519 (4) "All-terrain type III vehicle" means the same as that term is defined in Section
2520 41-22-2.
2521 (5) "Convention facility" means any publicly owned or operated convention center,
2522 sports arena, or other facility at which conventions, conferences, and other gatherings are held
2523 and whose primary business or function is to host such conventions, conferences, and other
2524 gatherings.
2525 (6) "Cultural facility" means any publicly owned or operated museum, theater, art
2526 center, music hall, or other cultural or arts facility.
2527 (7) (a) Except as provided in Subsection (7)(b), "off-highway vehicle" means any
2528 snowmobile, all-terrain type I vehicle, all-terrain type II vehicle, all-terrain type III vehicle, or
2529 motorcycle.
2530 (b) "Off-highway vehicle" does not include a vehicle that is a motor vehicle under
2531 Section 41-1a-102.
2532 (8) "Motorcycle" means the same as that term is defined in Section 41-22-2.
2533 (9) "Recreation facility" or "tourist facility" means any publicly owned or operated
2534 park, campground, marina, dock, golf course, water park, historic park, monument,
2535 planetarium, zoo, bicycle trails, and other recreation or tourism-related facility.
2536 (10) (a) Except as provided in Subsection (10)(c), "recreational vehicle" means a
2537 vehicular unit other than a mobile home, primarily designed as a temporary dwelling for travel,
2538 recreational, or vacation use, that is pulled by another vehicle.
2539 (b) "Recreational vehicle" includes:
2540 (i) a travel trailer;
2541 (ii) a camping trailer; and
2542 (iii) a fifth wheel trailer.
2543 (c) "Recreational vehicle" does not include a vehicle that is a motor vehicle under
2544 Section 41-1a-102.
2545 (11) (a) "Restaurant" includes any coffee shop, cafeteria, luncheonette, soda fountain,
2546 or fast-food service where food is prepared for immediate consumption.
2547 (b) "Restaurant" does not include:
2548 (i) any retail establishment whose primary business or function is the sale of fuel or
2549 food items for off-premise, but not immediate, consumption; and
2550 (ii) a theater that sells food items, but not a dinner theater.
2551 (12) (a) "Short-term rental" means a lease or rental that is 30 days or less.
2552 (b) "Short-term rental" does not include car sharing as that term is defined in Section
2553 13-48a-101.
2554 (13) "Snowmobile" means the same as that term is defined in Section 41-22-2.
2555 (14) "Travel trailer," "camping trailer," or "fifth wheel trailer" means a portable vehicle
2556 without motive power, designed as a temporary dwelling for travel, recreational, or vacation
2557 use that does not require a special highway movement permit when drawn by a self-propelled
2558 motor vehicle.
2559 Section 18. Section 59-12-603 is amended to read:
2560 59-12-603. County tax -- Bases -- Rates -- Use of revenue -- Adoption of ordinance
2561 required -- Advisory board -- Administration -- Collection -- Administrative charge --
2562 Distribution -- Enactment or repeal of tax or tax rate change -- Effective date -- Notice
2563 requirements.
2564 (1) (a) In addition to any other taxes, a county legislative body may, as provided in this
2565 part, impose a tax as follows:
2566 (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
2567 on all short-term rentals of motor vehicles, except for short-term rentals of motor vehicles
2568 made for the purpose of temporarily replacing a person's motor vehicle that is being repaired
2569 pursuant to a repair or an insurance agreement; and
2570 (B) a county legislative body of any county imposing a tax under Subsection
2571 (1)(a)(i)(A) may, in addition to imposing the tax under Subsection (1)(a)(i)(A), impose a tax of
2572 not to exceed 4% on all short-term rentals of motor vehicles, except for short-term rentals of
2573 motor vehicles made for the purpose of temporarily replacing a person's motor vehicle that is
2574 being repaired pursuant to a repair or an insurance agreement;
2575 (ii) beginning on January 1, 2021, a county legislative body of any county may impose
2576 a tax of not to exceed 7% on all short-term rentals of off-highway vehicles and recreational
2577 vehicles;
2578 (iii) a county legislative body of any county may impose a tax of not to exceed 1% of
2579 all sales of the following that are sold by a restaurant:
2580 (A) alcoholic beverages;
2581 (B) food and food ingredients; or
2582 (C) prepared food; [
2583 (iv) a county legislative body of a county of the first class may impose a tax of not to
2584 exceed .5% on charges for the accommodations and services described in Subsection
2585 59-12-103(1)(i)[
2586 (v) (A) beginning on July 1, 2023, a county legislative body of any county may impose
2587 a tax of not to exceed 3% on all car sharing, except for car sharing for the purpose of
2588 temporarily replacing a person's motor vehicle that is being repaired pursuant to a repair or an
2589 insurance agreement; and
2590 (B) a county legislative body of any county imposing a tax under Subsection
2591 (1)(a)(v)(A) may, in addition to imposing the tax under Subsection (1)(a)(i)(A), impose a tax of
2592 not to exceed 4% on all car sharing, except for short-term rentals of motor vehicles made for
2593 the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant to
2594 a repair or an insurance agreement.
2595 (b) A tax imposed under Subsection (1)(a) is subject to the audit provisions of Section
2596 17-31-5.5.
2597 (2) (a) Subject to Subsection (2)(b), a county may use revenue from the imposition of a
2598 tax under Subsection (1) for:
2599 (i) financing tourism promotion; and
2600 (ii) the development, operation, and maintenance of:
2601 (A) an airport facility;
2602 (B) a convention facility;
2603 (C) a cultural facility;
2604 (D) a recreation facility; or
2605 (E) a tourist facility.
2606 (b) A county of the first class shall expend at least $450,000 each year of the revenue
2607 from the imposition of a tax authorized by Subsection (1)(a)(iv) within the county to fund a
2608 marketing and ticketing system designed to:
2609 (i) promote tourism in ski areas within the county by persons that do not reside within
2610 the state; and
2611 (ii) combine the sale of:
2612 (A) ski lift tickets; and
2613 (B) accommodations and services described in Subsection 59-12-103(1)(i).
2614 (3) A tax imposed under this part may be pledged as security for bonds, notes, or other
2615 evidences of indebtedness incurred by a county, city, or town under Title 11, Chapter 14, Local
2616 Government Bonding Act, or a community reinvestment agency under Title 17C, Chapter 1,
2617 Part 5, Agency Bonds, to finance:
2618 (a) an airport facility;
2619 (b) a convention facility;
2620 (c) a cultural facility;
2621 (d) a recreation facility; or
2622 (e) a tourist facility.
2623 (4) (a) To impose a tax under Subsection (1), the county legislative body shall adopt an
2624 ordinance imposing the tax.
2625 (b) The ordinance under Subsection (4)(a) shall include provisions substantially the
2626 same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
2627 those items and sales described in Subsection (1).
2628 (c) The name of the county as the taxing agency shall be substituted for that of the state
2629 where necessary, and an additional license is not required if one has been or is issued under
2630 Section 59-12-106.
2631 (5) To maintain in effect a tax ordinance adopted under this part, each county
2632 legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
2633 Tax Collection, adopt amendments to the county's tax ordinance to conform with the applicable
2634 amendments to Part 1, Tax Collection.
2635 (6) (a) Regardless of whether a county of the first class creates a tourism tax advisory
2636 board in accordance with Section 17-31-8, the county legislative body of the county of the first
2637 class shall create a tax advisory board in accordance with this Subsection (6).
2638 (b) The tax advisory board shall be composed of nine members appointed as follows:
2639 (i) four members shall be residents of a county of the first class appointed by the
2640 county legislative body of the county of the first class; and
2641 (ii) subject to Subsections (6)(c) and (d), five members shall be mayors of cities or
2642 towns within the county of the first class appointed by an organization representing all mayors
2643 of cities and towns within the county of the first class.
2644 (c) Five members of the tax advisory board constitute a quorum.
2645 (d) The county legislative body of the county of the first class shall determine:
2646 (i) terms of the members of the tax advisory board;
2647 (ii) procedures and requirements for removing a member of the tax advisory board;
2648 (iii) voting requirements, except that action of the tax advisory board shall be by at
2649 least a majority vote of a quorum of the tax advisory board;
2650 (iv) chairs or other officers of the tax advisory board;
2651 (v) how meetings are to be called and the frequency of meetings; and
2652 (vi) the compensation, if any, of members of the tax advisory board.
2653 (e) The tax advisory board under this Subsection (6) shall advise the county legislative
2654 body of the county of the first class on the expenditure of revenue collected within the county
2655 of the first class from the taxes described in Subsection (1)(a).
2656 (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
2657 shall be administered, collected, and enforced in accordance with:
2658 (A) the same procedures used to administer, collect, and enforce the tax under:
2659 (I) Part 1, Tax Collection; or
2660 (II) Part 2, Local Sales and Use Tax Act; and
2661 (B) Chapter 1, General Taxation Policies.
2662 (ii) A tax under this part is not subject to Section 59-12-107.1 or 59-12-123 or
2663 Subsections 59-12-205(2) through (6).
2664 (b) Except as provided in Subsection (7)(c):
2665 (i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
2666 commission shall distribute the revenue to the county imposing the tax; and
2667 (ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenue
2668 according to the distribution formula provided in Subsection (8).
2669 (c) The commission shall retain and deposit an administrative charge in accordance
2670 with Section 59-1-306 from the revenue the commission collects from a tax under this part.
2671 (8) The commission shall distribute the revenue generated by the tax under Subsection
2672 (1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according to the
2673 following formula:
2674 (a) the commission shall distribute 70% of the revenue based on the percentages
2675 generated by dividing the revenue collected by each county under Subsection (1)(a)(i)(B) by
2676 the total revenue collected by all counties under Subsection (1)(a)(i)(B); and
2677 (b) the commission shall distribute 30% of the revenue based on the percentages
2678 generated by dividing the population of each county collecting a tax under Subsection
2679 (1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
2680 (9) (a) For purposes of this Subsection (9):
2681 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
2682 County Annexation.
2683 (ii) "Annexing area" means an area that is annexed into a county.
2684 (b) (i) Except as provided in Subsection (9)(c), if a county enacts or repeals a tax or
2685 changes the rate of a tax under this part, the enactment, repeal, or change shall take effect:
2686 (A) on the first day of a calendar quarter; and
2687 (B) after a 90-day period beginning on the day on which the commission receives
2688 notice meeting the requirements of Subsection (9)(b)(ii) from the county.
2689 (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
2690 (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
2691 (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
2692 (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
2693 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
2694 (9)(b)(ii)(A), the rate of the tax.
2695 (c) (i) If the billing period for a transaction begins before the effective date of the
2696 enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
2697 the tax or the tax rate increase shall take effect on the first day of the first billing period that
2698 begins after the effective date of the enactment of the tax or the tax rate increase.
2699 (ii) If the billing period for a transaction begins before the effective date of the repeal
2700 of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
2701 rate decrease shall take effect on the first day of the last billing period that began before the
2702 effective date of the repeal of the tax or the tax rate decrease.
2703 (d) (i) Except as provided in Subsection (9)(e), if the annexation will result in the
2704 enactment, repeal, or change in the rate of a tax under this part for an annexing area, the
2705 enactment, repeal, or change shall take effect:
2706 (A) on the first day of a calendar quarter; and
2707 (B) after a 90-day period beginning on the day on which the commission receives
2708 notice meeting the requirements of Subsection (9)(d)(ii) from the county that annexes the
2709 annexing area.
2710 (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
2711 (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
2712 repeal, or change in the rate of a tax under this part for the annexing area;
2713 (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
2714 (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
2715 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
2716 (9)(d)(ii)(A), the rate of the tax.
2717 (e) (i) If the billing period for a transaction begins before the effective date of the
2718 enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
2719 the tax or the tax rate increase shall take effect on the first day of the first billing period that
2720 begins after the effective date of the enactment of the tax or the tax rate increase.
2721 (ii) If the billing period for a transaction begins before the effective date of the repeal
2722 of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
2723 rate decrease shall take effect on the first day of the last billing period that began before the
2724 effective date of the repeal of the tax or the tax rate decrease.
2725 Section 19. Section 59-12-1201 is amended to read:
2726 59-12-1201. Motor vehicle rental tax -- Rate -- Exemptions -- Administration,
2727 collection, and enforcement of tax -- Administrative charge -- Deposits.
2728 (1) (a) Except as provided in [
2729 a tax of 2.5% on all short-term leases and rentals of motor vehicles not exceeding 30 days.
2730 (b) The tax imposed in this section is in addition to all other state, county, or municipal
2731 fees and taxes imposed on rentals of motor vehicles.
2732 (2) (a) Subject to Subsection (2)(b), a tax rate repeal or tax rate change for the tax
2733 imposed under Subsection (1) shall take effect on the first day of a calendar quarter.
2734 (b) (i) For a transaction subject to a tax under Subsection (1), a tax rate increase shall
2735 take effect on the first day of the first billing period:
2736 (A) that begins after the effective date of the tax rate increase; and
2737 (B) if the billing period for the transaction begins before the effective date of a tax rate
2738 increase imposed under Subsection (1).
2739 (ii) For a transaction subject to a tax under Subsection (1), the repeal of a tax or a tax
2740 rate decrease shall take effect on the first day of the last billing period:
2741 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
2742 and
2743 (B) if the billing period for the transaction begins before the effective date of the repeal
2744 of the tax or the tax rate decrease imposed under Subsection (1).
2745 (3) Beginning on July 1, 2023, a tax imposed under Subsection (1) applies to car
2746 sharing.
2747 [
2748 (a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;
2749 (b) the motor vehicle is rented as a personal household goods moving van; or
2750 (c) the lease or rental of the motor vehicle is made for the purpose of temporarily
2751 replacing a person's motor vehicle that is being repaired pursuant to a repair agreement or an
2752 insurance agreement.
2753 [
2754 and enforced in accordance with:
2755 (A) the same procedures used to administer, collect, and enforce the tax under Part 1,
2756 Tax Collection; and
2757 (B) Chapter 1, General Taxation Policies.
2758 (ii) Notwithstanding Subsection [
2759 to Subsections 59-12-103(4) through (10) or Section 59-12-107.1 or 59-12-123.
2760 (b) The commission shall retain and deposit an administrative charge in accordance
2761 with Section 59-1-306 from the revenues the commission collects from a tax under this part.
2762 (c) Except as provided under Subsection [
2763 commission under this section shall be deposited daily with the state treasurer and credited
2764 monthly to the Marda Dillree Corridor Preservation Fund under Section 72-2-117.
2765 Section 20. Retrospective operation.
2766 (1) Except as provided in Subsection (2), this bill takes effect on May 3, 2023.
2767 (2) The changes to the following sections have retrospective operation to January 1,
2768 2019, for a transaction that is the subject of an appeal pending on or filed after January 1, 2023:
2769 (a) Section 59-12-603; and
2770 (b) Section 59-12-1201.