Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 233 First Substitute (2018GS)

Sponsor

Sen. Stephenson, H.

Final action

Governor Signed 3/27/2018

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• amends sales and use tax definitions;
• repeals the economic life provision of the sales and use tax exemption for the purchase or lease of machinery, equipment, or normal operating repair or replacement parts by a manufacturing facility, certain mining establishments, or a web search portal for use in certain business activities;
• creates a sales and use tax exemption for the purchase or lease of materials, except office equipment and office supplies, by a manufacturing facility, certain mining establishments, or a web search portal that are used or consumed in certain business activities;
• creates a sales and use tax exemption for the purchase or lease of machinery, equipment, normal operating repair or replacement parts, or materials, except office equipment or office supplies, by a medical laboratory;
• makes the expansion of the exemption for a manufacturing facility, certain mining operations, or a web search portal and the new exemption for a medical laboratory effective upon the state collecting a certain amount of revenue from remote sales;
• modifies the use of revenue in the Remote Sales Restricted Account; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

SALES AND USE TAX AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Howard A. Stephenson
House Sponsor: 
Daniel McCay
Cosponsor:
Curtis S. Bramble
LONG TITLE
General Description:
This bill creates sales and use tax exemptions relating to a purchase or lease of
machinery, equipment, normal operating repair or replacement parts, and materials.
Highlighted Provisions:
This bill:
▸ amends sales and use tax definitions;
▸ repeals the economic life provision of the sales and use tax exemption for the
purchase or lease of machinery, equipment, or normal operating repair or
replacement parts by a manufacturing facility, certain mining establishments, or a
web search portal for use in certain business activities;
▸ creates a sales and use tax exemption for the purchase or lease of materials, except
office equipment and office supplies, by a manufacturing facility, certain mining
establishments, or a web search portal that are used or consumed in certain business
activities;
▸ creates a sales and use tax exemption for the purchase or lease of machinery,
equipment, normal operating repair or replacement parts, or materials, except office
equipment or office supplies, by a medical laboratory;
▸ makes the expansion of the exemption for a manufacturing facility, certain mining
operations, or a web search portal and the new exemption for a medical laboratory
effective upon the state collecting a certain amount of revenue from remote sales;
▸ modifies the use of revenue in the Remote Sales Restricted Account; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
10-1-405
, as last amended by Laws of Utah 2012, Chapter 424
19-6-714
, as last amended by Laws of Utah 2011, Chapter 297
19-6-808
, as last amended by Laws of Utah 2011, Chapter 309
59-12-102
, as last amended by Laws of Utah 2017, Chapters 181, 382, and 422
59-12-103.1
, as last amended by Laws of Utah 2016, Chapter 135
59-12-103.2
, as last amended by Laws of Utah 2013, Chapter 150
59-12-104.5
, as last amended by Laws of Utah 2017, Chapter 268
59-12-106
, as last amended by Laws of Utah 2011, Chapter 285
59-12-107
, as last amended by Laws of Utah 2017, Chapter 430
59-12-204
, as last amended by Laws of Utah 2014, Chapter 258
59-12-401
, as last amended by Laws of Utah 2017, Chapter 422
59-12-402
, as last amended by Laws of Utah 2017, Chapter 422
59-12-402.1
, as last amended by Laws of Utah 2017, Chapter 422
59-12-703
, as last amended by Laws of Utah 2017, Chapters 181 and 422
59-12-802
, as last amended by Laws of Utah 2017, Chapter 422
59-12-804
, as last amended by Laws of Utah 2017, Chapter 422
59-12-1102
, as last amended by Laws of Utah 2016, Chapter 364
59-12-1302
, as last amended by Laws of Utah 2017, Chapter 422
59-12-1402
, as last amended by Laws of Utah 2017, Chapter 422
59-12-1802
, as last amended by Laws of Utah 2008, Chapter 384
59-12-2003
, as last amended by Laws of Utah 2017, Chapter 422
59-12-2103
, as last amended by Laws of Utah 2017, Chapter 422
59-12-2204
, as last amended by Laws of Utah 2017, Chapter 422
63I-2-210
, as last amended by Laws of Utah 2017, Chapters 181 and further amended
by Revisor Instructions, Laws of Utah 2017, Chapters 448, 448, 452 and last
amended by Coordination Clause, Laws of Utah 2017, Chapter 448
63I-2-259
, as last amended by Laws of Utah 2017, Chapter 181
ENACTS:
59-12-104.8
, Utah Code Annotated 1953
REPEALS:
59-12-104.7
, as enacted by Laws of Utah 2017, Chapter 268
63N-1-302
, as enacted by Laws of Utah 2017, Chapter 268
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
10-1-405
 is amended to read:
10-1-405.
Collection of taxes by commission -- Uniform interlocal agreement --
Administrative charge -- Rulemaking authority.
(1) Subject to the other provisions of this section, the commission shall collect,
enforce, and administer any municipal telecommunications license tax imposed under this part
pursuant to:
(a) the same procedures used in the administration, collection, and enforcement of the
state sales and use tax under:
(i) Title 59, Chapter 1, General Taxation Policies; and
(ii) Title 59, Chapter 12, Part 1, Tax Collection:
(A) except for:
(I) Subsection 
59-12-103
(2)(i);
(II) Section 
59-12-104
;
(III) Section 
59-12-104.1
;
(IV) Section 
59-12-104.2
;
(V) Section 
59-12-104.3
;
(VI) Section 
59-12-104.8
;
[
(VI)
] 
(VII)
 Section 
59-12-107.1
; and
[
(VII)
] 
(VIII)
 Section 
59-12-123
; and
(B) except that for purposes of Section 
59-1-1410
, the term "person" may include a
customer from whom a municipal telecommunications license tax is recovered in accordance
with Subsection 
10-1-403
(2); and
(b) a uniform interlocal agreement between the municipality that imposes the
municipal telecommunications license tax and the commission:
(i) that is executed under Title 11, Chapter 13, Interlocal Cooperation Act;
(ii) that complies with Subsection (2)(a); and
(iii) that is developed by rule in accordance with Subsection (2)(b).
(2) (a) The uniform interlocal agreement described in Subsection (1) shall provide that
the commission shall:
(i) transmit money collected under this part monthly by electronic funds transfer by the
commission to the municipality;
(ii) conduct audits of the municipal telecommunications license tax;
(iii) retain and deposit an administrative charge in accordance with Section 
59-1-306
from revenues the commission collects from a tax under this part; and
(iv) collect, enforce, and administer the municipal telecommunications license tax
authorized under this part pursuant to the same procedures used in the administration,
collection, and enforcement of the state sales and use tax as provided in Subsection (1)(a).
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall develop a uniform interlocal agreement that meets the requirements of this
section.
(3) If a telecommunications provider pays a municipal telecommunications license tax
to the commission, the telecommunications provider shall pay the municipal
telecommunications license tax to the commission:
(a) monthly on or before the last day of the month immediately following the last day
of the previous month if:
(i) the telecommunications provider is required to file a sales and use tax return with
the commission monthly under Section 
59-12-108
; or
(ii) the telecommunications provider is not required to file a sales and use tax return
under Title 59, Chapter 12, Sales and Use Tax Act; or
(b) quarterly on or before the last day of the month immediately following the last day
of the previous quarter if the telecommunications provider is required to file a sales and use tax
return with the commission quarterly under Section 
59-12-108
.
(4) If, on July 1, 2007, a municipality has in effect an ordinance that levies a municipal
telecommunications license tax under this part at a rate that exceeds 3.5%:
(a) except as provided in Subsection (4)(b), beginning on July 1, 2007, the commission
shall collect the municipal telecommunications license tax:
(i) within the municipality;
(ii) at a rate of 3.5%; and
(iii) from a telecommunications provider required to pay the municipal
telecommunications license tax on or after July 1, 2007; and
(b) the commission shall collect a municipal telecommunications license tax within the
municipality at the rate imposed by the municipality if:
(i) after July 1, 2007, the municipality has in effect an ordinance that levies a municipal
telecommunications license tax under this part at a rate of up to 3.5%;
(ii) the municipality meets the requirements of Subsection 
10-1-403
(3)(b) in changing
the rate of the municipal telecommunications license tax; and
(iii) a telecommunications provider is required to pay the municipal
telecommunications license tax on or after the day on which the ordinance described in
Subsection (4)(b)(ii) takes effect.
Section 2. Section 
19-6-714
 is amended to read:
19-6-714.
Recycling fee on sale of oil.
(1) On and after October 1, 1993, a recycling fee of $.04 per quart or $.16 per gallon is
imposed upon the first sale in Utah by a lubricating oil vendor of lubricating oil. The
lubricating oil vendor shall collect the fee at the time the lubricating oil is sold.
(2) A fee under this section may not be collected on sales of lubricating oil:
(a) shipped outside the state;
(b) purchased in five-gallon or smaller containers and used solely in underground
mining operations; or
(c) in bulk containers of 55 gallons or more.
(3) This fee is in addition to all other state, county, or municipal fees and taxes
imposed on the sale of lubricating oil.
(4) 
(a)
 The exemptions from sales and use tax provided in Section 
59-12-104
 do not
apply to this part.
(b) The exemptions from sales and use tax provided in Section 
59-12-104.8
 do not
apply to this part.
(5) The commission may make rules to implement and enforce the provisions of this
section.
Section 3. Section 
19-6-808
 is amended to read:
19-6-808.
Payment of recycling fee -- Administrative charge.
(1) A tire retailer shall pay the recycling fee to the commission:
(a) monthly on or before the last day of the month immediately following the last day
of the previous month if:
(i) the tire retailer is required to file a sales and use tax return with the commission
monthly under Section 
59-12-108
; or
(ii) the tire retailer is not required to file a sales and use tax return under Title 59,
Chapter 12, Sales and Use Tax Act; or
(b) quarterly on or before the last day of the month immediately following the last day
of the previous quarter if the tire retailer is required to file a sales and use tax return with the
commission quarterly under Section 
59-12-108
.
(2) The payment shall be accompanied by a form prescribed by the commission.
(3) (a) The proceeds of the fee shall be transferred by the commission to the fund for
payment of partial reimbursement.
(b) The commission shall retain and deposit an administrative charge in accordance
with Section 
59-1-306
 from the revenues the commission collects from a fee under Section
19-6-805
.
(4) (a) The commission shall administer, collect, and enforce the fee authorized under
this part in accordance with the same procedures used in the administration, collection, and
enforcement of the state sales and use tax under Title 59, Chapter 12, Sales and Use Tax Act,
and Title 59, Chapter 1, General Taxation Policies.
(b) A tire retailer may retain 2-1/2% of the recycling fee collected under this part for
the cost of collecting the fee.
(c) 
(i)
 The exemptions provided in Section 
59-12-104
 do not apply to this part.
(ii) The exemptions from sales and use tax provided in Section 
59-12-104.8
 do not
apply to this part.
(5) The fee imposed by this part is in addition to all other state, county, or municipal
fees and taxes imposed on the sale of new tires.
Section 4. Section 
59-12-102
 is amended to read:
59-12-102.
Definitions.
As used in this chapter:
(1) "800 service" means a telecommunications service that:
(a) allows a caller to dial a toll-free number without incurring a charge for the call; and
(b) is typically marketed:
(i) under the name 800 toll-free calling;
(ii) under the name 855 toll-free calling;
(iii) under the name 866 toll-free calling;
(iv) under the name 877 toll-free calling;
(v) under the name 888 toll-free calling; or
(vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
Federal Communications Commission.
(2) (a) "900 service" means an inbound toll telecommunications service that:
(i) a subscriber purchases;
(ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
the subscriber's:
(A) prerecorded announcement; or
(B) live service; and
(iii) is typically marketed:
(A) under the name 900 service; or
(B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
Communications Commission.
(b) "900 service" does not include a charge for:
(i) a collection service a seller of a telecommunications service provides to a
subscriber; or
(ii) the following a subscriber sells to the subscriber's customer:
(A) a product; or
(B) a service.
(3) (a) "Admission or user fees" includes season passes.
(b) "Admission or user fees" does not include annual membership dues to private
organizations.
(4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
Agreement after November 12, 2002.
(5) "Agreement combined tax rate" means the sum of the tax rates:
(a) listed under Subsection (6); and
(b) that are imposed within a local taxing jurisdiction.
(6) "Agreement sales and use tax" means a tax imposed under:
(a) Subsection 
59-12-103
(2)(a)(i)(A);
(b) Subsection 
59-12-103
(2)(b)(i);
(c) Subsection 
59-12-103
(2)(c)(i);
(d) Subsection 
59-12-103
(2)(d)(i)(A)(I);
(e) Section 
59-12-204
;
(f) Section 
59-12-401
;
(g) Section 
59-12-402
;
(h) Section 
59-12-402.1
;
(i) Section 
59-12-703
;
(j) Section 
59-12-802
;
(k) Section 
59-12-804
;
(l) Section 
59-12-1102
;
(m) Section 
59-12-1302
;
(n) Section 
59-12-1402
;
(o) Section 
59-12-1802
;
(p) Section 
59-12-2003
;
(q) Section 
59-12-2103
;
(r) Section 
59-12-2213
;
(s) Section 
59-12-2214
;
(t) Section 
59-12-2215
;
(u) Section 
59-12-2216
;
(v) Section 
59-12-2217
;
(w) Section 
59-12-2218
; or
(x) Section 
59-12-2219
.
(7) "Aircraft" means the same as that term is defined in Section 
72-10-102
.
(8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
(a) except for:
(i) an airline as defined in Section 
59-2-102
; or
(ii) an affiliated group, as defined in Section 
59-7-101
, except that "affiliated group"
includes a corporation that is qualified to do business but is not otherwise doing business in the
state, of an airline; and
(b) that has the workers, expertise, and facilities to perform the following, regardless of
whether the business entity performs the following in this state:
(i) check, diagnose, overhaul, and repair:
(A) an onboard system of a fixed wing turbine powered aircraft; and
(B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
(ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
engine;
(iii) perform at least the following maintenance on a fixed wing turbine powered
aircraft:
(A) an inspection;
(B) a repair, including a structural repair or modification;
(C) changing landing gear; and
(D) addressing issues related to an aging fixed wing turbine powered aircraft;
(iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
completely apply new paint to the fixed wing turbine powered aircraft; and
(v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
results in a change in the fixed wing turbine powered aircraft's certification requirements by the
authority that certifies the fixed wing turbine powered aircraft.
(9) "Alcoholic beverage" means a beverage that:
(a) is suitable for human consumption; and
(b) contains .5% or more alcohol by volume.
(10) "Alternative energy" means:
(a) biomass energy;
(b) geothermal energy;
(c) hydroelectric energy;
(d) solar energy;
(e) wind energy; or
(f) energy that is derived from:
(i) coal-to-liquids;
(ii) nuclear fuel;
(iii) oil-impregnated diatomaceous earth;
(iv) oil sands;
(v) oil shale;
(vi) petroleum coke; or
(vii) waste heat from:
(A) an industrial facility; or
(B) a power station in which an electric generator is driven through a process in which
water is heated, turns into steam, and spins a steam turbine.
(11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
facility" means a facility that:
(i) uses alternative energy to produce electricity; and
(ii) has a production capacity of two megawatts or greater.
(b) A facility is an alternative energy electricity production facility regardless of
whether the facility is:
(i) connected to an electric grid; or
(ii) located on the premises of an electricity consumer.
(12) (a) "Ancillary service" means a service associated with, or incidental to, the
provision of telecommunications service.
(b) "Ancillary service" includes:
(i) a conference bridging service;
(ii) a detailed communications billing service;
(iii) directory assistance;
(iv) a vertical service; or
(v) a voice mail service.
(13) "Area agency on aging" means the same as that term is defined in Section
62A-3-101
.
(14) "Assisted amusement device" means an amusement device, skill device, or ride
device that is started and stopped by an individual:
(a) who is not the purchaser or renter of the right to use or operate the amusement
device, skill device, or ride device; and
(b) at the direction of the seller of the right to use the amusement device, skill device,
or ride device.
(15) "Assisted cleaning or washing of tangible personal property" means cleaning or
washing of tangible personal property if the cleaning or washing labor is primarily performed
by an individual:
(a) who is not the purchaser of the cleaning or washing of the tangible personal
property; and
(b) at the direction of the seller of the cleaning or washing of the tangible personal
property.
(16) "Authorized carrier" means:
(a) in the case of vehicles operated over public highways, the holder of credentials
indicating that the vehicle is or will be operated pursuant to both the International Registration
Plan and the International Fuel Tax Agreement;
(b) in the case of aircraft, the holder of a Federal Aviation Administration operating
certificate or air carrier's operating certificate; or
(c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
stock in more than one state.
(17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
following that is used as the primary source of energy to produce fuel or electricity:
(i) material from a plant or tree; or
(ii) other organic matter that is available on a renewable basis, including:
(A) slash and brush from forests and woodlands;
(B) animal waste;
(C) waste vegetable oil;
(D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
wastewater residuals, or through the conversion of a waste material through a nonincineration,
thermal conversion process;
(E) aquatic plants; and
(F) agricultural products.
(b) "Biomass energy" does not include:
(i) black liquor; or
(ii) treated woods.
(18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
property, products, or services if the tangible personal property, products, or services are:
(i) distinct and identifiable; and
(ii) sold for one nonitemized price.
(b) "Bundled transaction" does not include:
(i) the sale of tangible personal property if the sales price varies, or is negotiable, on
the basis of the selection by the purchaser of the items of tangible personal property included in
the transaction;
(ii) the sale of real property;
(iii) the sale of services to real property;
(iv) the retail sale of tangible personal property and a service if:
(A) the tangible personal property:
(I) is essential to the use of the service; and
(II) is provided exclusively in connection with the service; and
(B) the service is the true object of the transaction;
(v) the retail sale of two services if:
(A) one service is provided that is essential to the use or receipt of a second service;
(B) the first service is provided exclusively in connection with the second service; and
(C) the second service is the true object of the transaction;
(vi) a transaction that includes tangible personal property or a product subject to
taxation under this chapter and tangible personal property or a product that is not subject to
taxation under this chapter if the:
(A) seller's purchase price of the tangible personal property or product subject to
taxation under this chapter is de minimis; or
(B) seller's sales price of the tangible personal property or product subject to taxation
under this chapter is de minimis; and
(vii) the retail sale of tangible personal property that is not subject to taxation under
this chapter and tangible personal property that is subject to taxation under this chapter if:
(A) that retail sale includes:
(I) food and food ingredients;
(II) a drug;
(III) durable medical equipment;
(IV) mobility enhancing equipment;
(V) an over-the-counter drug;
(VI) a prosthetic device; or
(VII) a medical supply; and
(B) subject to Subsection (18)(f):
(I) the seller's purchase price of the tangible personal property subject to taxation under
this chapter is 50% or less of the seller's total purchase price of that retail sale; or
(II) the seller's sales price of the tangible personal property subject to taxation under
this chapter is 50% or less of the seller's total sales price of that retail sale.
(c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
service that is distinct and identifiable does not include:
(A) packaging that:
(I) accompanies the sale of the tangible personal property, product, or service; and
(II) is incidental or immaterial to the sale of the tangible personal property, product, or
service;
(B) tangible personal property, a product, or a service provided free of charge with the
purchase of another item of tangible personal property, a product, or a service; or
(C) an item of tangible personal property, a product, or a service included in the
definition of "purchase price."
(ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
product, or a service is provided free of charge with the purchase of another item of tangible
personal property, a product, or a service if the sales price of the purchased item of tangible
personal property, product, or service does not vary depending on the inclusion of the tangible
personal property, product, or service provided free of charge.
(d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
does not include a price that is separately identified by tangible personal property, product, or
service on the following, regardless of whether the following is in paper format or electronic
format:
(A) a binding sales document; or
(B) another supporting sales-related document that is available to a purchaser.
(ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
supporting sales-related document that is available to a purchaser includes:
(A) a bill of sale;
(B) a contract;
(C) an invoice;
(D) a lease agreement;
(E) a periodic notice of rates and services;
(F) a price list;
(G) a rate card;
(H) a receipt; or
(I) a service agreement.
(e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
property or a product subject to taxation under this chapter is de minimis if:
(A) the seller's purchase price of the tangible personal property or product is 10% or
less of the seller's total purchase price of the bundled transaction; or
(B) the seller's sales price of the tangible personal property or product is 10% or less of
the seller's total sales price of the bundled transaction.
(ii) For purposes of Subsection (18)(b)(vi), a seller:
(A) shall use the seller's purchase price or the seller's sales price to determine if the
purchase price or sales price of the tangible personal property or product subject to taxation
under this chapter is de minimis; and
(B) may not use a combination of the seller's purchase price and the seller's sales price
to determine if the purchase price or sales price of the tangible personal property or product
subject to taxation under this chapter is de minimis.
(iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
contract to determine if the sales price of tangible personal property or a product is de minimis.
(f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
the seller's purchase price and the seller's sales price to determine if tangible personal property
subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
price of that retail sale.
(19) "Certified automated system" means software certified by the governing board of
the agreement that:
(a) calculates the agreement sales and use tax imposed within a local taxing
jurisdiction:
(i) on a transaction; and
(ii) in the states that are members of the agreement;
(b) determines the amount of agreement sales and use tax to remit to a state that is a
member of the agreement; and
(c) maintains a record of the transaction described in Subsection (19)(a)(i).
(20) "Certified service provider" means an agent certified:
(a) by the governing board of the agreement; and
(b) to perform all of a seller's sales and use tax functions for an agreement sales and
use tax other than the seller's obligation under Section 
59-12-124
 to remit a tax on the seller's
own purchases.
(21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
suitable for general use.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall make rules:
(i) listing the items that constitute "clothing"; and
(ii) that are consistent with the list of items that constitute "clothing" under the
agreement.
(22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
(23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
fuels that does not constitute industrial use under Subsection (56) or residential use under
Subsection (106).
(24) (a) "Common carrier" means a person engaged in or transacting the business of
transporting passengers, freight, merchandise, or other property for hire within this state.
(b) (i) "Common carrier" does not include a person who, at the time the person is
traveling to or from that person's place of employment, transports a passenger to or from the
passenger's place of employment.
(ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, the commission may make rules defining what
constitutes a person's place of employment.
(c) "Common carrier" does not include a person that provides transportation network
services, as defined in Section 
13-51-102
.
(25) "Component part" includes:
(a) poultry, dairy, and other livestock feed, and their components;
(b) baling ties and twine used in the baling of hay and straw;
(c) fuel used for providing temperature control of orchards and commercial
greenhouses doing a majority of their business in wholesale sales, and for providing power for
off-highway type farm machinery; and
(d) feed, seeds, and seedlings.
(26) "Computer" means an electronic device that accepts information:
(a) (i) in digital form; or
(ii) in a form similar to digital form; and
(b) manipulates that information for a result based on a sequence of instructions.
(27) "Computer software" means a set of coded instructions designed to cause:
(a) a computer to perform a task; or
(b) automatic data processing equipment to perform a task.
(28) "Computer software maintenance contract" means a contract that obligates a seller
of computer software to provide a customer with:
(a) future updates or upgrades to computer software;
(b) support services with respect to computer software; or
(c) a combination of Subsections (28)(a) and (b).
(29) (a) "Conference bridging service" means an ancillary service that links two or
more participants of an audio conference call or video conference call.
(b) "Conference bridging service" may include providing a telephone number as part of
the ancillary service described in Subsection (29)(a).
(c) "Conference bridging service" does not include a telecommunications service used
to reach the ancillary service described in Subsection (29)(a).
(30) "Construction materials" means any tangible personal property that will be
converted into real property.
(31) "Delivered electronically" means delivered to a purchaser by means other than
tangible storage media.
(32) (a) "Delivery charge" means a charge:
(i) by a seller of:
(A) tangible personal property;
(B) a product transferred electronically; or
(C) services; and
(ii) for preparation and delivery of the tangible personal property, product transferred
electronically, or services described in Subsection (32)(a)(i) to a location designated by the
purchaser.
(b) "Delivery charge" includes a charge for the following:
(i) transportation;
(ii) shipping;
(iii) postage;
(iv) handling;
(v) crating; or
(vi) packing.
(33) "Detailed telecommunications billing service" means an ancillary service of
separately stating information pertaining to individual calls on a customer's billing statement.
(34) "Dietary supplement" means a product, other than tobacco, that:
(a) is intended to supplement the diet;
(b) contains one or more of the following dietary ingredients:
(i) a vitamin;
(ii) a mineral;
(iii) an herb or other botanical;
(iv) an amino acid;
(v) a dietary substance for use by humans to supplement the diet by increasing the total
dietary intake; or
(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
described in Subsections (34)(b)(i) through (v);
(c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
(A) tablet form;
(B) capsule form;
(C) powder form;
(D) softgel form;
(E) gelcap form; or
(F) liquid form; or
(ii) if the product is not intended for ingestion in a form described in Subsections
(34)(c)(i)(A) through (F), is not represented:
(A) as conventional food; and
(B) for use as a sole item of:
(I) a meal; or
(II) the diet; and
(d) is required to be labeled as a dietary supplement:
(i) identifiable by the "Supplemental Facts" box found on the label; and
(ii) as required by 21 C.F.R. Sec. 101.36.
(35) "Digital audio-visual work" means a series of related images which, when shown
in succession, imparts an impression of motion, together with accompanying sounds, if any.
(36) (a) "Digital audio work" means a work that results from the fixation of a series of
musical, spoken, or other sounds.
(b) "Digital audio work" includes a ringtone.
(37) "Digital book" means a work that is generally recognized in the ordinary and usual
sense as a book.
(38) (a) "Direct mail" means printed material delivered or distributed by United States
mail or other delivery service:
(i) to:
(A) a mass audience; or
(B) addressees on a mailing list provided:
(I) by a purchaser of the mailing list; or
(II) at the discretion of the purchaser of the mailing list; and
(ii) if the cost of the printed material is not billed directly to the recipients.
(b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
purchaser to a seller of direct mail for inclusion in a package containing the printed material.
(c) "Direct mail" does not include multiple items of printed material delivered to a
single address.
(39) "Directory assistance" means an ancillary service of providing:
(a) address information; or
(b) telephone number information.
(40) (a) "Disposable home medical equipment or supplies" means medical equipment
or supplies that:
(i) cannot withstand repeated use; and
(ii) are purchased by, for, or on behalf of a person other than:
(A) a health care facility as defined in Section 
26-21-2
;
(B) a health care provider as defined in Section 
78B-3-403
;
(C) an office of a health care provider described in Subsection (40)(a)(ii)(B); or
(D) a person similar to a person described in Subsections (40)(a)(ii)(A) through (C).
(b) "Disposable home medical equipment or supplies" does not include:
(i) a drug;
(ii) durable medical equipment;
(iii) a hearing aid;
(iv) a hearing aid accessory;
(v) mobility enhancing equipment; or
(vi) tangible personal property used to correct impaired vision, including:
(A) eyeglasses; or
(B) contact lenses.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes medical equipment or supplies.
(41) "Drilling equipment manufacturer" means a facility:
(a) located in the state;
(b) with respect to which 51% or more of the manufacturing activities of the facility
consist of manufacturing component parts of drilling equipment;
(c) that uses pressure of 800,000 or more pounds per square inch as part of the
manufacturing process; and
(d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
manufacturing process.
(42) (a) "Drug" means a compound, substance, or preparation, or a component of a
compound, substance, or preparation that is:
(i) recognized in:
(A) the official United States Pharmacopoeia;
(B) the official Homeopathic Pharmacopoeia of the United States;
(C) the official National Formulary; or
(D) a supplement to a publication listed in Subsections (42)(a)(i)(A) through (C);
(ii) intended for use in the:
(A) diagnosis of disease;
(B) cure of disease;
(C) mitigation of disease;
(D) treatment of disease; or
(E) prevention of disease; or
(iii) intended to affect:
(A) the structure of the body; or
(B) any function of the body.
(b) "Drug" does not include:
(i) food and food ingredients;
(ii) a dietary supplement;
(iii) an alcoholic beverage; or
(iv) a prosthetic device.
(43) (a) Except as provided in Subsection (43)(c), "durable medical equipment" means
equipment that:
(i) can withstand repeated use;
(ii) is primarily and customarily used to serve a medical purpose;
(iii) generally is not useful to a person in the absence of illness or injury; and
(iv) is not worn in or on the body.
(b) "Durable medical equipment" includes parts used in the repair or replacement of the
equipment described in Subsection (43)(a).
(c) "Durable medical equipment" does not include mobility enhancing equipment.
(44) "Electronic" means:
(a) relating to technology; and
(b) having:
(i) electrical capabilities;
(ii) digital capabilities;
(iii) magnetic capabilities;
(iv) wireless capabilities;
(v) optical capabilities;
(vi) electromagnetic capabilities; or
(vii) capabilities similar to Subsections (44)(b)(i) through (vi).
(45) "Electronic financial payment service" means an establishment:
(a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
Clearinghouse Activities, of the 2012 North American Industry Classification System of the
federal Executive Office of the President, Office of Management and Budget; and
(b) that performs electronic financial payment services.
(46) "Employee" means the same as that term is defined in Section 
59-10-401
.
(47) "Fixed guideway" means a public transit facility that uses and occupies:
(a) rail for the use of public transit; or
(b) a separate right-of-way for the use of public transit.
(48) "Fixed wing turbine powered aircraft" means an aircraft that:
(a) is powered by turbine engines;
(b) operates on jet fuel; and
(c) has wings that are permanently attached to the fuselage of the aircraft.
(49) "Fixed wireless service" means a telecommunications service that provides radio
communication between fixed points.
(50) (a) "Food and food ingredients" means substances:
(i) regardless of whether the substances are in:
(A) liquid form;
(B) concentrated form;
(C) solid form;
(D) frozen form;
(E) dried form; or
(F) dehydrated form; and
(ii) that are:
(A) sold for:
(I) ingestion by humans; or
(II) chewing by humans; and
(B) consumed for the substance's:
(I) taste; or
(II) nutritional value.
(b) "Food and food ingredients" includes an item described in Subsection (91)(b)(iii).
(c) "Food and food ingredients" does not include:
(i) an alcoholic beverage;
(ii) tobacco; or
(iii) prepared food.
(51) (a) "Fundraising sales" means sales:
(i) (A) made by a school; or
(B) made by a school student;
(ii) that are for the purpose of raising funds for the school to purchase equipment,
materials, or provide transportation; and
(iii) that are part of an officially sanctioned school activity.
(b) For purposes of Subsection (51)(a)(iii), "officially sanctioned school activity"
means a school activity:
(i) that is conducted in accordance with a formal policy adopted by the school or school
district governing the authorization and supervision of fundraising activities;
(ii) that does not directly or indirectly compensate an individual teacher or other
educational personnel by direct payment, commissions, or payment in kind; and
(iii) the net or gross revenues from which are deposited in a dedicated account
controlled by the school or school district.
(52) "Geothermal energy" means energy contained in heat that continuously flows
outward from the earth that is used as the sole source of energy to produce electricity.
(53) "Governing board of the agreement" means the governing board of the agreement
that is:
(a) authorized to administer the agreement; and
(b) established in accordance with the agreement.
(54) (a) For purposes of Subsection 
59-12-104
(41), "governmental entity" means:
(i) the executive branch of the state, including all departments, institutions, boards,
divisions, bureaus, offices, commissions, and committees;
(ii) the judicial branch of the state, including the courts, the Judicial Council, the
Office of the Court Administrator, and similar administrative units in the judicial branch;
(iii) the legislative branch of the state, including the House of Representatives, the
Senate, the Legislative Printing Office, the Office of Legislative Research and General
Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
Analyst;
(iv) the National Guard;
(v) an independent entity as defined in Section 
63E-1-102
; or
(vi) a political subdivision as defined in Section 
17B-1-102
.
(b) "Governmental entity" does not include the state systems of public and higher
education, including:
(i) a school;
(ii) the State Board of Education;
(iii) the State Board of Regents; or
(iv) an institution of higher education described in Section 
53B-1-102
.
(55) "Hydroelectric energy" means water used as the sole source of energy to produce
electricity.
(56) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
other fuels:
(a) in mining or extraction of minerals;
(b) in agricultural operations to produce an agricultural product up to the time of
harvest or placing the agricultural product into a storage facility, including:
(i) commercial greenhouses;
(ii) irrigation pumps;
(iii) farm machinery;
(iv) implements of husbandry as defined in Section 
41-1a-102
 that are not registered
under Title 41, Chapter 1a, Part 2, Registration; and
(v) other farming activities;
(c) in manufacturing tangible personal property at an establishment described in
:
(i)
 SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
the federal Executive Office of the President, Office of Management and Budget; 
or
(ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
American Industry Classification System of the federal Executive Office of the President,
Office of Management and Budget;
(d) by a scrap recycler if:
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
one or more of the following items into prepared grades of processed materials for use in new
products:
(A) iron;
(B) steel;
(C) nonferrous metal;
(D) paper;
(E) glass;
(F) plastic;
(G) textile; or
(H) rubber; and
(ii) the new products under Subsection (56)(d)(i) would otherwise be made with
nonrecycled materials; or
(e) in producing a form of energy or steam described in Subsection 
54-2-1
(3)(a) by a
cogeneration facility as defined in Section 
54-2-1
.
(57) (a) Except as provided in Subsection (57)(b), "installation charge" means a charge
for installing:
(i) tangible personal property; or
(ii) a product transferred electronically.
(b) "Installation charge" does not include a charge for:
(i) repairs or renovations of:
(A) tangible personal property; or
(B) a product transferred electronically; or
(ii) attaching tangible personal property or a product transferred electronically:
(A) to other tangible personal property; and
(B) as part of a manufacturing or fabrication process.
(58) "Institution of higher education" means an institution of higher education listed in
Section 
53B-2-101
.
(59) (a) "Lease" or "rental" means a transfer of possession or control of tangible
personal property or a product transferred electronically for:
(i) (A) a fixed term; or
(B) an indeterminate term; and
(ii) consideration.
(b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
amount of consideration may be increased or decreased by reference to the amount realized
upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
Code.
(c) "Lease" or "rental" does not include:
(i) a transfer of possession or control of property under a security agreement or
deferred payment plan that requires the transfer of title upon completion of the required
payments;
(ii) a transfer of possession or control of property under an agreement that requires the
transfer of title:
(A) upon completion of required payments; and
(B) if the payment of an option price does not exceed the greater of:
(I) $100; or
(II) 1% of the total required payments; or
(iii) providing tangible personal property along with an operator for a fixed period of
time or an indeterminate period of time if the operator is necessary for equipment to perform as
designed.
(d) For purposes of Subsection (59)(c)(iii), an operator is necessary for equipment to
perform as designed if the operator's duties exceed the:
(i) set-up of tangible personal property;
(ii) maintenance of tangible personal property; or
(iii) inspection of tangible personal property.
(60) "Life science establishment" means an establishment in this state that is classified
under the following NAICS codes of the 2007 North American Industry Classification System
of the federal Executive Office of the President, Office of Management and Budget:
(a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
(b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
Manufacturing; or
(c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
(61) "Life science research and development facility" means a facility owned, leased,
or rented by a life science establishment if research and development is performed in 51% or
more of the total area of the facility.
(62) "Load and leave" means delivery to a purchaser by use of a tangible storage media
if the tangible storage media is not physically transferred to the purchaser.
(63) "Local taxing jurisdiction" means a:
(a) county that is authorized to impose an agreement sales and use tax;
(b) city that is authorized to impose an agreement sales and use tax; or
(c) town that is authorized to impose an agreement sales and use tax.
(64) "Manufactured home" means the same as that term is defined in Section
15A-1-302
.
(65) "Manufacturing facility" means:
(a) an establishment described in
:
(i)
 SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
the federal Executive Office of the President, Office of Management and Budget; 
or
(ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
American Industry Classification System of the federal Executive Office of the President,
Office of Management and Budget;
(b) a scrap recycler if:
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
one or more of the following items into prepared grades of processed materials for use in new
products:
(A) iron;
(B) steel;
(C) nonferrous metal;
(D) paper;
(E) glass;
(F) plastic;
(G) textile; or
(H) rubber; and
(ii) the new products under Subsection (65)(b)(i) would otherwise be made with
nonrecycled materials; or
(c) a cogeneration facility as defined in Section 
54-2-1
 if the cogeneration facility is
placed in service on or after May 1, 2006.
(66) "Member of the immediate family of the producer" means a person who is related
to a producer described in Subsection 
59-12-104
(20)(a) as a:
(a) child or stepchild, regardless of whether the child or stepchild is:
(i) an adopted child or adopted stepchild; or
(ii) a foster child or foster stepchild;
(b) grandchild or stepgrandchild;
(c) grandparent or stepgrandparent;
(d) nephew or stepnephew;
(e) niece or stepniece;
(f) parent or stepparent;
(g) sibling or stepsibling;
(h) spouse;
(i) person who is the spouse of a person described in Subsections (66)(a) through (g);
or
(j) person similar to a person described in Subsections (66)(a) through (i) as
determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act.
(67) "Mobile home" means the same as that term is defined in Section 
15A-1-302
.
(68) "Mobile telecommunications service" is as defined in the Mobile
Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(69) (a) "Mobile wireless service" means a telecommunications service, regardless of
the technology used, if:
(i) the origination point of the conveyance, routing, or transmission is not fixed;
(ii) the termination point of the conveyance, routing, or transmission is not fixed; or
(iii) the origination point described in Subsection (69)(a)(i) and the termination point
described in Subsection (69)(a)(ii) are not fixed.
(b) "Mobile wireless service" includes a telecommunications service that is provided
by a commercial mobile radio service provider.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define "commercial mobile radio service provider."
(70) (a) Except as provided in Subsection (70)(c), "mobility enhancing equipment"
means equipment that is:
(i) primarily and customarily used to provide or increase the ability to move from one
place to another;
(ii) appropriate for use in a:
(A) home; or
(B) motor vehicle; and
(iii) not generally used by persons with normal mobility.
(b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
the equipment described in Subsection (70)(a).
(c) "Mobility enhancing equipment" does not include:
(i) a motor vehicle;
(ii) equipment on a motor vehicle if that equipment is normally provided by the motor
vehicle manufacturer;
(iii) durable medical equipment; or
(iv) a prosthetic device.
(71) "Model 1 seller" means a seller registered under the agreement that has selected a
certified service provider as the seller's agent to perform all of the seller's sales and use tax
functions for agreement sales and use taxes other than the seller's obligation under Section
59-12-124
 to remit a tax on the seller's own purchases.
(72) "Model 2 seller" means a seller registered under the agreement that:
(a) except as provided in Subsection (72)(b), has selected a certified automated system
to perform the seller's sales tax functions for agreement sales and use taxes; and
(b) retains responsibility for remitting all of the sales tax:
(i) collected by the seller; and
(ii) to the appropriate local taxing jurisdiction.
(73) (a) Subject to Subsection (73)(b), "model 3 seller" means a seller registered under
the agreement that has:
(i) sales in at least five states that are members of the agreement;
(ii) total annual sales revenues of at least $500,000,000;
(iii) a proprietary system that calculates the amount of tax:
(A) for an agreement sales and use tax; and
(B) due to each local taxing jurisdiction; and
(iv) entered into a performance agreement with the governing board of the agreement.
(b) For purposes of Subsection (73)(a), "model 3 seller" includes an affiliated group of
sellers using the same proprietary system.
(74) "Model 4 seller" means a seller that is registered under the agreement and is not a
model 1 seller, model 2 seller, or model 3 seller.
(75) "Modular home" means a modular unit as defined in Section 
15A-1-302
.
(76) "Motor vehicle" means the same as that term is defined in Section 
41-1a-102
.
(77) "Oil sands" means impregnated bituminous sands that:
(a) contain a heavy, thick form of petroleum that is released when heated, mixed with
other hydrocarbons, or otherwise treated;
(b) yield mixtures of liquid hydrocarbon; and
(c) require further processing other than mechanical blending before becoming finished
petroleum products.
(78) "Oil shale" means a group of fine black to dark brown shales containing kerogen
material that yields petroleum upon heating and distillation.
(79) "Optional computer software maintenance contract" means a computer software
maintenance contract that a customer is not obligated to purchase as a condition to the retail
sale of computer software.
(80) (a) "Other fuels" means products that burn independently to produce heat or
energy.
(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
personal property.
(81) (a) "Paging service" means a telecommunications service that provides
transmission of a coded radio signal for the purpose of activating a specific pager.
(b) For purposes of Subsection (81)(a), the transmission of a coded radio signal
includes a transmission by message or sound.
(82) "Pawnbroker" means the same as that term is defined in Section 
13-32a-102
.
(83) "Pawn transaction" means the same as that term is defined in Section 
13-32a-102
.
(84) (a) "Permanently attached to real property" means that for tangible personal
property attached to real property:
(i) the attachment of the tangible personal property to the real property:
(A) is essential to the use of the tangible personal property; and
(B) suggests that the tangible personal property will remain attached to the real
property in the same place over the useful life of the tangible personal property; or
(ii) if the tangible personal property is detached from the real property, the detachment
would:
(A) cause substantial damage to the tangible personal property; or
(B) require substantial alteration or repair of the real property to which the tangible
personal property is attached.
(b) "Permanently attached to real property" includes:
(i) the attachment of an accessory to the tangible personal property if the accessory is:
(A) essential to the operation of the tangible personal property; and
(B) attached only to facilitate the operation of the tangible personal property;
(ii) a temporary detachment of tangible personal property from real property for a
repair or renovation if the repair or renovation is performed where the tangible personal
property and real property are located; or
(iii) property attached to oil, gas, or water pipelines, except for the property listed in
Subsection (84)(c)(iii) or (iv).
(c) "Permanently attached to real property" does not include:
(i) the attachment of portable or movable tangible personal property to real property if
that portable or movable tangible personal property is attached to real property only for:
(A) convenience;
(B) stability; or
(C) for an obvious temporary purpose;
(ii) the detachment of tangible personal property from real property except for the
detachment described in Subsection (84)(b)(ii);
(iii) an attachment of the following tangible personal property to real property if the
attachment to real property is only through a line that supplies water, electricity, gas,
telecommunications, cable, or supplies a similar item as determined by the commission by rule
made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
(A) a computer;
(B) a telephone;
(C) a television; or
(D) tangible personal property similar to Subsections (84)(c)(iii)(A) through (C) as
determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act; or
(iv) an item listed in Subsection (125)(c).
(85) "Person" includes any individual, firm, partnership, joint venture, association,
corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
municipality, district, or other local governmental entity of the state, or any group or
combination acting as a unit.
(86) "Place of primary use":
(a) for telecommunications service other than mobile telecommunications service,
means the street address representative of where the customer's use of the telecommunications
service primarily occurs, which shall be:
(i) the residential street address of the customer; or
(ii) the primary business street address of the customer; or
(b) for mobile telecommunications service, is as defined in the Mobile
Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(87) (a) "Postpaid calling service" means a telecommunications service a person
obtains by making a payment on a call-by-call basis:
(i) through the use of a:
(A) bank card;
(B) credit card;
(C) debit card; or
(D) travel card; or
(ii) by a charge made to a telephone number that is not associated with the origination
or termination of the telecommunications service.
(b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
service, that would be a prepaid wireless calling service if the service were exclusively a
telecommunications service.
(88) "Postproduction" means an activity related to the finishing or duplication of a
medium described in Subsection 
59-12-104
(54)(a).
(89) "Prepaid calling service" means a telecommunications service:
(a) that allows a purchaser access to telecommunications service that is exclusively
telecommunications service;
(b) that:
(i) is paid for in advance; and
(ii) enables the origination of a call using an:
(A) access number; or
(B) authorization code;
(c) that is dialed:
(i) manually; or
(ii) electronically; and
(d) sold in predetermined units or dollars that decline:
(i) by a known amount; and
(ii) with use.
(90) "Prepaid wireless calling service" means a telecommunications service:
(a) that provides the right to utilize:
(i) mobile wireless service; and
(ii) other service that is not a telecommunications service, including:
(A) the download of a product transferred electronically;
(B) a content service; or
(C) an ancillary service;
(b) that:
(i) is paid for in advance; and
(ii) enables the origination of a call using an:
(A) access number; or
(B) authorization code;
(c) that is dialed:
(i) manually; or
(ii) electronically; and
(d) sold in predetermined units or dollars that decline:
(i) by a known amount; and
(ii) with use.
(91) (a) "Prepared food" means:
(i) food:
(A) sold in a heated state; or
(B) heated by a seller;
(ii) two or more food ingredients mixed or combined by the seller for sale as a single
item; or
(iii) except as provided in Subsection (91)(c), food sold with an eating utensil provided
by the seller, including a:
(A) plate;
(B) knife;
(C) fork;
(D) spoon;
(E) glass;
(F) cup;
(G) napkin; or
(H) straw.
(b) "Prepared food" does not include:
(i) food that a seller only:
(A) cuts;
(B) repackages; or
(C) pasteurizes; or
(ii) (A) the following:
(I) raw egg;
(II) raw fish;
(III) raw meat;
(IV) raw poultry; or
(V) a food containing an item described in Subsections (91)(b)(ii)(A)(I) through (IV);
and
(B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
Food and Drug Administration's Food Code that a consumer cook the items described in
Subsection (91)(b)(ii)(A) to prevent food borne illness; or
(iii) the following if sold without eating utensils provided by the seller:
(A) food and food ingredients sold by a seller if the seller's proper primary
classification under the 2002 North American Industry Classification System of the federal
Executive Office of the President, Office of Management and Budget, is manufacturing in
Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
Manufacturing;
(B) food and food ingredients sold in an unheated state:
(I) by weight or volume; and
(II) as a single item; or
(C) a bakery item, including:
(I) a bagel;
(II) a bar;
(III) a biscuit;
(IV) bread;
(V) a bun;
(VI) a cake;
(VII) a cookie;
(VIII) a croissant;
(IX) a danish;
(X) a donut;
(XI) a muffin;
(XII) a pastry;
(XIII) a pie;
(XIV) a roll;
(XV) a tart;
(XVI) a torte; or
(XVII) a tortilla.
(c) An eating utensil provided by the seller does not include the following used to
transport the food:
(i) a container; or
(ii) packaging.
(92) "Prescription" means an order, formula, or recipe that is issued:
(a) (i) orally;
(ii) in writing;
(iii) electronically; or
(iv) by any other manner of transmission; and
(b) by a licensed practitioner authorized by the laws of a state.
(93) (a) Except as provided in Subsection (93)(b)(ii) or (iii), "prewritten computer
software" means computer software that is not designed and developed:
(i) by the author or other creator of the computer software; and
(ii) to the specifications of a specific purchaser.
(b) "Prewritten computer software" includes:
(i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
software is not designed and developed:
(A) by the author or other creator of the computer software; and
(B) to the specifications of a specific purchaser;
(ii) computer software designed and developed by the author or other creator of the
computer software to the specifications of a specific purchaser if the computer software is sold
to a person other than the purchaser; or
(iii) except as provided in Subsection (93)(c), prewritten computer software or a
prewritten portion of prewritten computer software:
(A) that is modified or enhanced to any degree; and
(B) if the modification or enhancement described in Subsection (93)(b)(iii)(A) is
designed and developed to the specifications of a specific purchaser.
(c) "Prewritten computer software" does not include a modification or enhancement
described in Subsection (93)(b)(iii) if the charges for the modification or enhancement are:
(i) reasonable; and
(ii) subject to Subsections 
59-12-103
(2)(e)(ii) and (2)(f)(i), separately stated on the
invoice or other statement of price provided to the purchaser at the time of sale or later, as
demonstrated by:
(A) the books and records the seller keeps at the time of the transaction in the regular
course of business, including books and records the seller keeps at the time of the transaction in
the regular course of business for nontax purposes;
(B) a preponderance of the facts and circumstances at the time of the transaction; and
(C) the understanding of all of the parties to the transaction.
(94) (a) "Private communications service" means a telecommunications service:
(i) that entitles a customer to exclusive or priority use of one or more communications
channels between or among termination points; and
(ii) regardless of the manner in which the one or more communications channels are
connected.
(b) "Private communications service" includes the following provided in connection
with the use of one or more communications channels:
(i) an extension line;
(ii) a station;
(iii) switching capacity; or
(iv) another associated service that is provided in connection with the use of one or
more communications channels as defined in Section 
59-12-215
.
(95) (a) Except as provided in Subsection (95)(b), "product transferred electronically"
means a product transferred electronically that would be subject to a tax under this chapter if
that product was transferred in a manner other than electronically.
(b) "Product transferred electronically" does not include:
(i) an ancillary service;
(ii) computer software; or
(iii) a telecommunications service.
(96) (a) "Prosthetic device" means a device that is worn on or in the body to:
(i) artificially replace a missing portion of the body;
(ii) prevent or correct a physical deformity or physical malfunction; or
(iii) support a weak or deformed portion of the body.
(b) "Prosthetic device" includes:
(i) parts used in the repairs or renovation of a prosthetic device;
(ii) replacement parts for a prosthetic device;
(iii) a dental prosthesis; or
(iv) a hearing aid.
(c) "Prosthetic device" does not include:
(i) corrective eyeglasses; or
(ii) contact lenses.
(97) (a) "Protective equipment" means an item:
(i) for human wear; and
(ii) that is:
(A) designed as protection:
(I) to the wearer against injury or disease; or
(II) against damage or injury of other persons or property; and
(B) not suitable for general use.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall make rules:
(i) listing the items that constitute "protective equipment"; and
(ii) that are consistent with the list of items that constitute "protective equipment"
under the agreement.
(98) (a) For purposes of Subsection 
59-12-104
(41), "publication" means any written or
printed matter, other than a photocopy:
(i) regardless of:
(A) characteristics;
(B) copyright;
(C) form;
(D) format;
(E) method of reproduction; or
(F) source; and
(ii) made available in printed or electronic format.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "photocopy."
(99) (a) "Purchase price" and "sales price" mean the total amount of consideration:
(i) valued in money; and
(ii) for which tangible personal property, a product transferred electronically, or
services are:
(A) sold;
(B) leased; or
(C) rented.
(b) "Purchase price" and "sales price" include:
(i) the seller's cost of the tangible personal property, a product transferred
electronically, or services sold;
(ii) expenses of the seller, including:
(A) the cost of materials used;
(B) a labor cost;
(C) a service cost;
(D) interest;
(E) a loss;
(F) the cost of transportation to the seller; or
(G) a tax imposed on the seller;
(iii) a charge by the seller for any service necessary to complete the sale; or
(iv) consideration a seller receives from a person other than the purchaser if:
(A) (I) the seller actually receives consideration from a person other than the purchaser;
and
(II) the consideration described in Subsection (99)(b)(iv)(A)(I) is directly related to a
price reduction or discount on the sale;
(B) the seller has an obligation to pass the price reduction or discount through to the
purchaser;
(C) the amount of the consideration attributable to the sale is fixed and determinable by
the seller at the time of the sale to the purchaser; and
(D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
seller to claim a price reduction or discount; and
(Bb) a person other than the seller authorizes, distributes, or grants the certificate,
coupon, or other documentation with the understanding that the person other than the seller
will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
(II) the purchaser identifies that purchaser to the seller as a member of a group or
organization allowed a price reduction or discount, except that a preferred customer card that is
available to any patron of a seller does not constitute membership in a group or organization
allowed a price reduction or discount; or
(III) the price reduction or discount is identified as a third party price reduction or
discount on the:
(Aa) invoice the purchaser receives; or
(Bb) certificate, coupon, or other documentation the purchaser presents.
(c) "Purchase price" and "sales price" do not include:
(i) a discount:
(A) in a form including:
(I) cash;
(II) term; or
(III) coupon;
(B) that is allowed by a seller;
(C) taken by a purchaser on a sale; and
(D) that is not reimbursed by a third party; or
(ii) subject to Subsections 
59-12-103
(2)(e)(ii) and (2)(f)(i), the following if separately
stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
sale or later, as demonstrated by the books and records the seller keeps at the time of the
transaction in the regular course of business, including books and records the seller keeps at the
time of the transaction in the regular course of business for nontax purposes, by a
preponderance of the facts and circumstances at the time of the transaction, and by the
understanding of all of the parties to the transaction:
(A) the following from credit extended on the sale of tangible personal property or
services:
(I) a carrying charge;
(II) a financing charge; or
(III) an interest charge;
(B) a delivery charge;
(C) an installation charge;
(D) a manufacturer rebate on a motor vehicle; or
(E) a tax or fee legally imposed directly on the consumer.
(100) "Purchaser" means a person to whom:
(a) a sale of tangible personal property is made;
(b) a product is transferred electronically; or
(c) a service is furnished.
(101) "Qualifying enterprise data center" means an establishment that will:
(a) own and operate a data center facility that will house a group of networked server
computers in one physical location in order to centralize the dissemination, management, and
storage of data and information;
(b) be located in the state;
(c) be a new operation constructed on or after July 1, 2016;
(d) consist of one or more buildings that total 150,000 or more square feet;
(e) be owned or leased by:
(i) the establishment; or
(ii) a person under common ownership, as defined in Section 
59-7-101
, of the
establishment; and
(f) be located on one or more parcels of land that are owned or leased by:
(i) the establishment; or
(ii) a person under common ownership, as defined in Section 
59-7-101
, of the
establishment.
(102) "Regularly rented" means:
(a) rented to a guest for value three or more times during a calendar year; or
(b) advertised or held out to the public as a place that is regularly rented to guests for
value.
(103) "Rental" means the same as that term is defined in Subsection (59).
(104) (a) Except as provided in Subsection (104)(b), "repairs or renovations of tangible
personal property" means:
(i) a repair or renovation of tangible personal property that is not permanently attached
to real property; or
(ii) attaching tangible personal property or a product transferred electronically to other
tangible personal property or detaching tangible personal property or a product transferred
electronically from other tangible personal property if:
(A) the other tangible personal property to which the tangible personal property or
product transferred electronically is attached or from which the tangible personal property or
product transferred electronically is detached is not permanently attached to real property; and
(B) the attachment of tangible personal property or a product transferred electronically
to other tangible personal property or detachment of tangible personal property or a product
transferred electronically from other tangible personal property is made in conjunction with a
repair or replacement of tangible personal property or a product transferred electronically.
(b) "Repairs or renovations of tangible personal property" does not include:
(i) attaching prewritten computer software to other tangible personal property if the
other tangible personal property to which the prewritten computer software is attached is not
permanently attached to real property; or
(ii) detaching prewritten computer software from other tangible personal property if the
other tangible personal property from which the prewritten computer software is detached is
not permanently attached to real property.
(105) "Research and development" means the process of inquiry or experimentation
aimed at the discovery of facts, devices, technologies, or applications and the process of
preparing those devices, technologies, or applications for marketing.
(106) (a) "Residential telecommunications services" means a telecommunications
service or an ancillary service that is provided to an individual for personal use:
(i) at a residential address; or
(ii) at an institution, including a nursing home or a school, if the telecommunications
service or ancillary service is provided to and paid for by the individual residing at the
institution rather than the institution.
(b) For purposes of Subsection (106)(a)(i), a residential address includes an:
(i) apartment; or
(ii) other individual dwelling unit.
(107) "Residential use" means the use in or around a home, apartment building,
sleeping quarters, and similar facilities or accommodations.
(108) (a) "Retailer" means any person engaged in a regularly organized business in
tangible personal property or any other taxable transaction under Subsection 
59-12-103
(1), and
who is selling to the user or consumer and not for resale.
(b) "Retailer" includes commission merchants, auctioneers, and any person regularly
engaged in the business of selling to users or consumers within the state.
(109) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
than:
(a) resale;
(b) sublease; or
(c) subrent.
(110) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
otherwise, in any manner, of tangible personal property or any other taxable transaction under
Subsection 
59-12-103
(1), for consideration.
(b) "Sale" includes:
(i) installment and credit sales;
(ii) any closed transaction constituting a sale;
(iii) any sale of electrical energy, gas, services, or entertainment taxable under this
chapter;
(iv) any transaction if the possession of property is transferred but the seller retains the
title as security for the payment of the price; and
(v) any transaction under which right to possession, operation, or use of any article of
tangible personal property is granted under a lease or contract and the transfer of possession
would be taxable if an outright sale were made.
(111) "Sale at retail" means the same as that term is defined in Subsection (109).
(112) "Sale-leaseback transaction" means a transaction by which title to tangible
personal property or a product transferred electronically that is subject to a tax under this
chapter is transferred:
(a) by a purchaser-lessee;
(b) to a lessor;
(c) for consideration; and
(d) if:
(i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
of the tangible personal property or product transferred electronically;
(ii) the sale of the tangible personal property or product transferred electronically to the
lessor is intended as a form of financing:
(A) for the tangible personal property or product transferred electronically; and
(B) to the purchaser-lessee; and
(iii) in accordance with generally accepted accounting principles, the purchaser-lessee
is required to:
(A) capitalize the tangible personal property or product transferred electronically for
financial reporting purposes; and
(B) account for the lease payments as payments made under a financing arrangement.
(113) "Sales price" means the same as that term is defined in Subsection (99).
(114) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
amounts charged by a school:
(i) sales that are directly related to the school's educational functions or activities
including:
(A) the sale of:
(I) textbooks;
(II) textbook fees;
(III) laboratory fees;
(IV) laboratory supplies; or
(V) safety equipment;
(B) the sale of a uniform, protective equipment, or sports or recreational equipment
that:
(I) a student is specifically required to wear as a condition of participation in a
school-related event or school-related activity; and
(II) is not readily adaptable to general or continued usage to the extent that it takes the
place of ordinary clothing;
(C) sales of the following if the net or gross revenues generated by the sales are
deposited into a school district fund or school fund dedicated to school meals:
(I) food and food ingredients; or
(II) prepared food; or
(D) transportation charges for official school activities; or
(ii) amounts paid to or amounts charged by a school for admission to a school-related
event or school-related activity.
(b) "Sales relating to schools" does not include:
(i) bookstore sales of items that are not educational materials or supplies;
(ii) except as provided in Subsection (114)(a)(i)(B):
(A) clothing;
(B) clothing accessories or equipment;
(C) protective equipment; or
(D) sports or recreational equipment; or
(iii) amounts paid to or amounts charged by a school for admission to a school-related
event or school-related activity if the amounts paid or charged are passed through to a person:
(A) other than a:
(I) school;
(II) nonprofit organization authorized by a school board or a governing body of a
private school to organize and direct a competitive secondary school activity; or
(III) nonprofit association authorized by a school board or a governing body of a
private school to organize and direct a competitive secondary school activity; and
(B) that is required to collect sales and use taxes under this chapter.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules defining the term "passed through."
(115) For purposes of this section and Section 
59-12-104
, "school":
(a) means:
(i) an elementary school or a secondary school that:
(A) is a:
(I) public school; or
(II) private school; and
(B) provides instruction for one or more grades kindergarten through 12; or
(ii) a public school district; and
(b) includes the Electronic High School as defined in Section 
53A-15-1002
.
(116) "Seller" means a person that makes a sale, lease, or rental of:
(a) tangible personal property;
(b) a product transferred electronically; or
(c) a service.
(117) (a) "Semiconductor fabricating, processing, research, or development materials"
means tangible personal property or a product transferred electronically if the tangible personal
property or product transferred electronically is:
(i) used primarily in the process of:
(A) (I) manufacturing a semiconductor;
(II) fabricating a semiconductor; or
(III) research or development of a:
(Aa) semiconductor; or
(Bb) semiconductor manufacturing process; or
(B) maintaining an environment suitable for a semiconductor; or
(ii) consumed primarily in the process of:
(A) (I) manufacturing a semiconductor;
(II) fabricating a semiconductor; or
(III) research or development of a:
(Aa) semiconductor; or
(Bb) semiconductor manufacturing process; or
(B) maintaining an environment suitable for a semiconductor.
(b) "Semiconductor fabricating, processing, research, or development materials"
includes:
(i) parts used in the repairs or renovations of tangible personal property or a product
transferred electronically described in Subsection (117)(a); or
(ii) a chemical, catalyst, or other material used to:
(A) produce or induce in a semiconductor a:
(I) chemical change; or
(II) physical change;
(B) remove impurities from a semiconductor; or
(C) improve the marketable condition of a semiconductor.
(118) "Senior citizen center" means a facility having the primary purpose of providing
services to the aged as defined in Section 
62A-3-101
.
(119) (a) Subject to Subsections (119)(b) and (c), "short-term lodging consumable"
means tangible personal property that:
(i) a business that provides accommodations and services described in Subsection
59-12-103
(1)(i) purchases as part of a transaction to provide the accommodations and services
to a purchaser;
(ii) is intended to be consumed by the purchaser; and
(iii) is:
(A) included in the purchase price of the accommodations and services; and
(B) not separately stated on an invoice, bill of sale, or other similar document provided
to the purchaser.
(b) "Short-term lodging consumable" includes:
(i) a beverage;
(ii) a brush or comb;
(iii) a cosmetic;
(iv) a hair care product;
(v) lotion;
(vi) a magazine;
(vii) makeup;
(viii) a meal;
(ix) mouthwash;
(x) nail polish remover;
(xi) a newspaper;
(xii) a notepad;
(xiii) a pen;
(xiv) a pencil;
(xv) a razor;
(xvi) saline solution;
(xvii) a sewing kit;
(xviii) shaving cream;
(xix) a shoe shine kit;
(xx) a shower cap;
(xxi) a snack item;
(xxii) soap;
(xxiii) toilet paper;
(xxiv) a toothbrush;
(xxv) toothpaste; or
(xxvi) an item similar to Subsections (119)(b)(i) through (xxv) as the commission may
provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act.
(c) "Short-term lodging consumable" does not include:
(i) tangible personal property that is cleaned or washed to allow the tangible personal
property to be reused; or
(ii) a product transferred electronically.
(120) "Simplified electronic return" means the electronic return:
(a) described in Section 318(C) of the agreement; and
(b) approved by the governing board of the agreement.
(121) "Solar energy" means the sun used as the sole source of energy for producing
electricity.
(122) (a) "Sports or recreational equipment" means an item:
(i) designed for human use; and
(ii) that is:
(A) worn in conjunction with:
(I) an athletic activity; or
(II) a recreational activity; and
(B) not suitable for general use.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall make rules:
(i) listing the items that constitute "sports or recreational equipment"; and
(ii) that are consistent with the list of items that constitute "sports or recreational
equipment" under the agreement.
(123) "State" means the state of Utah, its departments, and agencies.
(124) "Storage" means any keeping or retention of tangible personal property or any
other taxable transaction under Subsection 
59-12-103
(1), in this state for any purpose except
sale in the regular course of business.
(125) (a) Except as provided in Subsection (125)(d) or (e), "tangible personal property"
means personal property that:
(i) may be:
(A) seen;
(B) weighed;
(C) measured;
(D) felt; or
(E) touched; or
(ii) is in any manner perceptible to the senses.
(b) "Tangible personal property" includes:
(i) electricity;
(ii) water;
(iii) gas;
(iv) steam; or
(v) prewritten computer software, regardless of the manner in which the prewritten
computer software is transferred.
(c) "Tangible personal property" includes the following regardless of whether the item
is attached to real property:
(i) a dishwasher;
(ii) a dryer;
(iii) a freezer;
(iv) a microwave;
(v) a refrigerator;
(vi) a stove;
(vii) a washer; or
(viii) an item similar to Subsections (125)(c)(i) through (vii) as determined by the
commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act.
(d) "Tangible personal property" does not include a product that is transferred
electronically.
(e) "Tangible personal property" does not include the following if attached to real
property, regardless of whether the attachment to real property is only through a line that
supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act:
(i) a hot water heater;
(ii) a water filtration system; or
(iii) a water softener system.
(126) (a) "Telecommunications enabling or facilitating equipment, machinery, or
software" means an item listed in Subsection (126)(b) if that item is purchased or leased
primarily to enable or facilitate one or more of the following to function:
(i) telecommunications switching or routing equipment, machinery, or software; or
(ii) telecommunications transmission equipment, machinery, or software.
(b) The following apply to Subsection (126)(a):
(i) a pole;
(ii) software;
(iii) a supplementary power supply;
(iv) temperature or environmental equipment or machinery;
(v) test equipment;
(vi) a tower; or
(vii) equipment, machinery, or software that functions similarly to an item listed in
Subsections (126)(b)(i) through (vi) as determined by the commission by rule made in
accordance with Subsection (126)(c).
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes equipment, machinery, or software that
functions similarly to an item listed in Subsections (126)(b)(i) through (vi).
(127) "Telecommunications equipment, machinery, or software required for 911
service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
Sec. 20.18.
(128) "Telecommunications maintenance or repair equipment, machinery, or software"
means equipment, machinery, or software purchased or leased primarily to maintain or repair
one or more of the following, regardless of whether the equipment, machinery, or software is
purchased or leased as a spare part or as an upgrade or modification to one or more of the
following:
(a) telecommunications enabling or facilitating equipment, machinery, or software;
(b) telecommunications switching or routing equipment, machinery, or software; or
(c) telecommunications transmission equipment, machinery, or software.
(129) (a) "Telecommunications service" means the electronic conveyance, routing, or
transmission of audio, data, video, voice, or any other information or signal to a point, or
among or between points.
(b) "Telecommunications service" includes:
(i) an electronic conveyance, routing, or transmission with respect to which a computer
processing application is used to act:
(A) on the code, form, or protocol of the content;
(B) for the purpose of electronic conveyance, routing, or transmission; and
(C) regardless of whether the service:
(I) is referred to as voice over Internet protocol service; or
(II) is classified by the Federal Communications Commission as enhanced or value
added;
(ii) an 800 service;
(iii) a 900 service;
(iv) a fixed wireless service;
(v) a mobile wireless service;
(vi) a postpaid calling service;
(vii) a prepaid calling service;
(viii) a prepaid wireless calling service; or
(ix) a private communications service.
(c) "Telecommunications service" does not include:
(i) advertising, including directory advertising;
(ii) an ancillary service;
(iii) a billing and collection service provided to a third party;
(iv) a data processing and information service if:
(A) the data processing and information service allows data to be:
(I) (Aa) acquired;
(Bb) generated;
(Cc) processed;
(Dd) retrieved; or
(Ee) stored; and
(II) delivered by an electronic transmission to a purchaser; and
(B) the purchaser's primary purpose for the underlying transaction is the processed data
or information;
(v) installation or maintenance of the following on a customer's premises:
(A) equipment; or
(B) wiring;
(vi) Internet access service;
(vii) a paging service;
(viii) a product transferred electronically, including:
(A) music;
(B) reading material;
(C) a ring tone;
(D) software; or
(E) video;
(ix) a radio and television audio and video programming service:
(A) regardless of the medium; and
(B) including:
(I) furnishing conveyance, routing, or transmission of a television audio and video
programming service by a programming service provider;
(II) cable service as defined in 47 U.S.C. Sec. 522(6); or
(III) audio and video programming services delivered by a commercial mobile radio
service provider as defined in 47 C.F.R. Sec. 20.3;
(x) a value-added nonvoice data service; or
(xi) tangible personal property.
(130) (a) "Telecommunications service provider" means a person that:
(i) owns, controls, operates, or manages a telecommunications service; and
(ii) engages in an activity described in Subsection (130)(a)(i) for the shared use with or
resale to any person of the telecommunications service.
(b) A person described in Subsection (130)(a) is a telecommunications service provider
whether or not the Public Service Commission of Utah regulates:
(i) that person; or
(ii) the telecommunications service that the person owns, controls, operates, or
manages.
(131) (a) "Telecommunications switching or routing equipment, machinery, or
software" means an item listed in Subsection (131)(b) if that item is purchased or leased
primarily for switching or routing:
(i) an ancillary service;
(ii) data communications;
(iii) voice communications; or
(iv) telecommunications service.
(b) The following apply to Subsection (131)(a):
(i) a bridge;
(ii) a computer;
(iii) a cross connect;
(iv) a modem;
(v) a multiplexer;
(vi) plug in circuitry;
(vii) a router;
(viii) software;
(ix) a switch; or
(x) equipment, machinery, or software that functions similarly to an item listed in
Subsections (131)(b)(i) through (ix) as determined by the commission by rule made in
accordance with Subsection (131)(c).
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes equipment, machinery, or software that
functions similarly to an item listed in Subsections (131)(b)(i) through (ix).
(132) (a) "Telecommunications transmission equipment, machinery, or software"
means an item listed in Subsection (132)(b) if that item is purchased or leased primarily for
sending, receiving, or transporting:
(i) an ancillary service;
(ii) data communications;
(iii) voice communications; or
(iv) telecommunications service.
(b) The following apply to Subsection (132)(a):
(i) an amplifier;
(ii) a cable;
(iii) a closure;
(iv) a conduit;
(v) a controller;
(vi) a duplexer;
(vii) a filter;
(viii) an input device;
(ix) an input/output device;
(x) an insulator;
(xi) microwave machinery or equipment;
(xii) an oscillator;
(xiii) an output device;
(xiv) a pedestal;
(xv) a power converter;
(xvi) a power supply;
(xvii) a radio channel;
(xviii) a radio receiver;
(xix) a radio transmitter;
(xx) a repeater;
(xxi) software;
(xxii) a terminal;
(xxiii) a timing unit;
(xxiv) a transformer;
(xxv) a wire; or
(xxvi) equipment, machinery, or software that functions similarly to an item listed in
Subsections (132)(b)(i) through (xxv) as determined by the commission by rule made in
accordance with Subsection (132)(c).
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes equipment, machinery, or software that
functions similarly to an item listed in Subsections (132)(b)(i) through (xxv).
(133) (a) "Textbook for a higher education course" means a textbook or other printed
material that is required for a course:
(i) offered by an institution of higher education; and
(ii) that the purchaser of the textbook or other printed material attends or will attend.
(b) "Textbook for a higher education course" includes a textbook in electronic format.
(134) "Tobacco" means:
(a) a cigarette;
(b) a cigar;
(c) chewing tobacco;
(d) pipe tobacco; or
(e) any other item that contains tobacco.
(135) "Unassisted amusement device" means an amusement device, skill device, or
ride device that is started and stopped by the purchaser or renter of the right to use or operate
the amusement device, skill device, or ride device.
(136) (a) "Use" means the exercise of any right or power over tangible personal
property, a product transferred electronically, or a service under Subsection 
59-12-103
(1),
incident to the ownership or the leasing of that tangible personal property, product transferred
electronically, or service.
(b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
property, a product transferred electronically, or a service in the regular course of business and
held for resale.
(137) "Value-added nonvoice data service" means a service:
(a) that otherwise meets the definition of a telecommunications service except that a
computer processing application is used to act primarily for a purpose other than conveyance,
routing, or transmission; and
(b) with respect to which a computer processing application is used to act on data or
information:
(i) code;
(ii) content;
(iii) form; or
(iv) protocol.
(138) (a) Subject to Subsection (138)(b), "vehicle" means the following that are
required to be titled, registered, or titled and registered:
(i) an aircraft as defined in Section 
72-10-102
;
(ii) a vehicle as defined in Section 
41-1a-102
;
(iii) an off-highway vehicle as defined in Section 
41-22-2
; or
(iv) a vessel as defined in Section 
41-1a-102
.
(b) For purposes of Subsection 
59-12-104
(33) only, "vehicle" includes:
(i) a vehicle described in Subsection (138)(a); or
(ii) (A) a locomotive;
(B) a freight car;
(C) railroad work equipment; or
(D) other railroad rolling stock.
(139) "Vehicle dealer" means a person engaged in the business of buying, selling, or
exchanging a vehicle as defined in Subsection (138).
(140) (a) "Vertical service" means an ancillary service that:
(i) is offered in connection with one or more telecommunications services; and
(ii) offers an advanced calling feature that allows a customer to:
(A) identify a caller; and
(B) manage multiple calls and call connections.
(b) "Vertical service" includes an ancillary service that allows a customer to manage a
conference bridging service.
(141) (a) "Voice mail service" means an ancillary service that enables a customer to
receive, send, or store a recorded message.
(b) "Voice mail service" does not include a vertical service that a customer is required
to have in order to utilize a voice mail service.
(142) (a) Except as provided in Subsection (142)(b), "waste energy facility" means a
facility that generates electricity:
(i) using as the primary source of energy waste materials that would be placed in a
landfill or refuse pit if it were not used to generate electricity, including:
(A) tires;
(B) waste coal;
(C) oil shale; or
(D) municipal solid waste; and
(ii) in amounts greater than actually required for the operation of the facility.
(b) "Waste energy facility" does not include a facility that incinerates:
(i) hospital waste as defined in 40 C.F.R. 60.51c; or
(ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
(143) "Watercraft" means a vessel as defined in Section 
73-18-2
.
(144) "Wind energy" means wind used as the sole source of energy to produce
electricity.
(145) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
location by the United States Postal Service.
Section 5. Section 
59-12-103.1
 is amended to read:
59-12-103.1.
Action by Supreme Court of the United States authorizing or action
by Congress permitting a state to require certain sellers to collect a sales or use tax --
Collection of tax by commission -- Commission report to Revenue and Taxation Interim
Committee -- Revenue and Taxation Interim Committee study -- Division of Finance
requirements to make certain deposits and to provide notice.
(1) Except as provided in Section 
59-12-107.1
, a seller shall remit a tax to the
commission as provided in Section 
59-12-107
 if:
(a) the Supreme Court of the United States issues a decision authorizing a state to
require the following sellers to collect a sales or use tax:
(i) a seller that does not meet one or more of the criteria described in Subsection
59-12-107
(2)(a); or
(ii) a seller that is not a seller required to pay or collect and remit sales and use taxes
under Subsection 
59-12-107
(2)(b); or
(b) Congress permits the state to require the following sellers to collect a sales or use
tax:
(i) a seller that does not meet one or more of the criteria described in Subsection
59-12-107
(2)(a); or
(ii) a seller that is not a seller required to pay or collect and remit sales and use taxes
under Subsection 
59-12-107
(2)(b).
(2) The commission shall:
(a) collect the tax described in Subsection (1) from the seller:
(i) to the extent:
(A) authorized by the Supreme Court of the United States; or
(B) permitted by Congress; and
(ii) beginning on the first day of a calendar quarter as prescribed by the Revenue and
Taxation Interim Committee; and
(b) make a report to the Revenue and Taxation Interim Committee by electronic
means:
(i) regarding the actions taken by:
(A) the Supreme Court of the United States; or
(B) Congress; and
(ii) (A) stating the amount of state revenue collected at the time of the report, if any;
and
(B) estimating the state sales and use tax rate reduction that would offset the amount of
state revenue estimated to be collected for the current fiscal year and the next fiscal year; and
(c) report to the Revenue and Taxation Interim Committee at:
(i) the Revenue and Taxation Interim Committee meeting immediately following the
day on which the actions of the Supreme Court of the United States or Congress become
effective; and
(ii) any other meeting of the Revenue and Taxation Interim Committee as requested by
the chairs of the committee.
(3) The Revenue and Taxation Interim Committee shall after receiving the
commission's reports under Subsections (2)(b) and (c):
(a) review the actions taken by:
(i) the Supreme Court of the United States; or
(ii) Congress;
(b) direct the commission regarding the day on which the commission is required to
collect the tax described in Subsection (1); and
(c) make recommendations to the Legislative Management Committee:
(i) regarding whether as a result of the actions of the Supreme Court of the United
States or Congress any provisions of this chapter should be amended or repealed; and
(ii) within a one-year period after the day on which the commission makes a report
under Subsection (2)(c).
(4) The Division of Finance shall deposit a portion of the revenue collected under this
section into the Remote Sales Restricted Account as required by Section 
59-12-103.2
.
(5) (a) The Division of Finance shall notify the legislative general counsel and the
commission once the balance of the qualified state revenue collected from remote sellers, as
that term is defined in Section 
59-12-103.2
, in the Remote Sales Restricted Account created in
Section 
59-12-103.2
 has a balance of $55,000,000.
(b) The Division of Finance shall review the balance in the Remote Sales Restricted
Account at least bi-annually for purposes of providing the notice described in Subsection
(5)(a).
Section 6. Section 
59-12-103.2
 is amended to read:
59-12-103.2.
Definitions -- Remote Sales Restricted Account -- Creation --
Funding for account -- Interest -- Division of Finance accounting.
(1) As used in this section:
(a) "Qualified local revenue collected from remote sellers" means the local revenue the
commission collects under Section 
59-12-103.1
 for a fiscal year from sellers who obtain a
license under Section 
59-12-106
 for the first time on or after the earlier of:
(i) the date a decision described in Subsection 
59-12-103.1
(1)(a) becomes a final,
unappealable decision; or
(ii) the effective date of the action by Congress described in Subsection
59-12-103.1
(1)(b).
(b) "Qualified state revenue collected from remote sellers" means the state revenue the
commission collects under Section 
59-12-103.1
 for a fiscal year from sellers who obtain a
license under Section 
59-12-106
 for the first time on or after the earlier of:
(i) the date a decision described in Subsection 
59-12-103.1
(1)(a) becomes a final,
unappealable decision; or
(ii) the effective date of the action by Congress described in Subsection
59-12-103.1
(1)(b).
(2) There is created within the General Fund a restricted account known as the
"Remote Sales Restricted Account."
(3) The account shall be funded by:
(a) the qualified local revenue collected from remote sellers; and
(b) the qualified state revenue collected from remote sellers.
(4) (a) The account shall earn interest.
(b) The interest described in Subsection (4)(a) shall be deposited into the account.
(5) The Division of Finance shall deposit the revenue described in Subsection (3) into
the account.
(6) The Division of Finance shall separately account for:
(a) (i) the qualified local revenue collected from remote sellers; and
(ii) interest earned on the amount described in Subsection (6)(a)(i); and
(b) (i) the qualified state revenue collected from remote sellers; and
(ii) interest earned on the amount described in Subsection (6)(b)(i).
(7) (a) The revenue and interest described in Subsection (6)(a) may be used to
:
(i)
 lower local sales and use tax rates as the Legislature may provide by statute[
.
]
; and
(ii) fund the sales and use tax exemptions described in Section 
59-12-104.8
.
(b) The revenue and interest described in Subsection (6)(b) may be used to
:
(i)
 lower state sales and use tax rates as the Legislature may provide by statute[
.
]
; and
(ii) fund the sales and use tax exemptions described in Section 
59-12-104.8
.
Section 7. Section 
59-12-104.5
 is amended to read:
59-12-104.5.
Revenue and Taxation Interim Committee review of sales and use
taxes.
(1)
 The Revenue and Taxation Interim Committee shall:
[
(1)
] 
(a)
 review Subsection 
59-12-104
(28) before October 1 of the year after the year in
which Congress permits a state to participate in the special supplemental nutrition program
under 42 U.S.C. Sec. 1786 even if state or local sales taxes are collected within the state on
purchases of food under that program;
[
(2)
] 
(b)
 review Subsection 
59-12-104
(21) before October 1 of the year after the year in
which Congress permits a state to participate in the SNAP as defined in Section 
35A-1-102
,
even if state or local sales taxes are collected within the state on purchases of food under that
program; and
[
(3)
] 
(c)
 on or before November 30:
[
(a)
] 
(i)
 require the Governor's Office of Economic Development to provide the report
described in Section 
63N-1-302
(2);
[
(b)
] 
(ii)
 review for each exemption described in Subsection 
59-12-104
(86) and (87):
[
(i)
] 
(A)
 the cost of the exemption;
[
(ii)
] 
(B)
 the purpose and effectiveness of the exemption; and
[
(iii)
] 
(C)
 the extent to which the state benefits from the exemption; and
[
(c)
] 
(iii)
 make recommendations concerning whether the exemptions described in
Subsections 
59-12-104
(86) and (87) should be continued, modified, or repealed. 
(2) Once the commission implements the sales and use tax exemption described in
Subsection 
59-12-104.8
(1), the provisions described in Subsection (1)(c) no longer have effect.
Section 8. Section 
59-12-104.8
 is enacted to read:
 59-12-104.8.
Machinery, equipment, replacement parts, and materials
exemptions.
(1) There is an exemption from the taxes imposed by this chapter for amounts paid or
charged for a purchase or lease of machinery, equipment, normal operating repair or
replacement parts, or materials, except for office equipment or office supplies, by:
(a) a manufacturing facility that:
(i) is located in the state; and
(ii) uses or consumes the machinery, equipment, normal operating repair or
replacement parts, or materials:
(A) in the manufacturing process to manufacture an item sold as tangible personal
property, as the commission may define that phrase in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act; or
(B) for a scrap recycler, to process an item sold as tangible personal property, as the
commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act;
(b) an establishment, as the commission defines that term in accordance with Title
63G, Chapter 3, Utah Administrative Rulemaking Act, that:
(i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
Code 213113, Support Activities for Coal Mining, 213114, Support Activities for Metal
Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining, of the
North American Industry Classification System of the federal Executive Office of the
President, Office of Management and Budget;
(ii) is located in the state; and
(iii) uses or consumes the machinery, equipment, normal operating repair or
replacement parts, or materials in:
(A) the production process to produce an item sold as tangible personal property, as the
commission may define that phrase in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act;
(B) research and development, as the commission may define that phrase in accordance
with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(C) transporting, storing, or managing tailings, overburden, or similar waste materials
produced from mining;
(D) developing or maintaining a road, tunnel, excavation, or similar feature used in
mining; or
(E) preventing, controlling, or reducing dust or other pollutants from mining; or
(c) an establishment, as the commission defines that term in accordance with Title
63G, Chapter 3, Utah Administrative Rulemaking Act, that:
(i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North
American Industry Classification System of the federal Executive Office of the President,
Office of Management and Budget;
(ii) is located in the state; and
(iii) uses or consumes the machinery, equipment, normal operating repair or
replacement parts, or materials in the operation of the web search portal.
(2) There is an exemption from the taxes imposed by this chapter for amounts paid or
charged for a purchase or lease of machinery, equipment, normal operating repair or
replacement parts, or materials, except for office equipment or office supplies, by an
establishment, as the commission defines that term in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, that:
(a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
American Industry Classification System of the federal Executive Office of the President,
Office of Management and Budget;
(b) is located in this state; and
(c) uses the machinery, equipment, normal operating repair or replacement parts, or
materials in the operation of the establishment.
(3) The sales and use tax exemption in Subsection (1) supersedes the sales and use tax
exemptions described in Subsections 
59-12-104
(14), (84), (86), and (87).
Section 9. Section 
59-12-106
 is amended to read:
59-12-106.
Definitions -- Sales and use tax license requirements -- Penalty --
Application process and requirements -- No fee -- Bonds -- Presumption of taxability --
Exemption certificates -- Exemption certificate license number to accompany contract
bids.
(1) As used in this section:
(a) "applicant" means a person that:
(i) is required by this section to obtain a license; and
(ii) submits an application:
(A) to the commission; and
(B) for a license under this section;
(b) "application" means an application for a license under this section;
(c) "fiduciary of the applicant" means a person that:
(i) is required to collect, truthfully account for, and pay over a tax under this chapter
for an applicant; and
(ii) (A) is a corporate officer of the applicant described in Subsection (1)(c)(i);
(B) is a director of the applicant described in Subsection (1)(c)(i);
(C) is an employee of the applicant described in Subsection (1)(c)(i);
(D) is a partner of the applicant described in Subsection (1)(c)(i);
(E) is a trustee of the applicant described in Subsection (1)(c)(i); or
(F) has a relationship to the applicant described in Subsection (1)(c)(i) that is similar to
a relationship described in Subsections (1)(c)(ii)(A) through (E) as determined by the
commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act;
(d) "fiduciary of the licensee" means a person that:
(i) is required to collect, truthfully account for, and pay over a tax under this chapter
for a licensee; and
(ii) (A) is a corporate officer of the licensee described in Subsection (1)(d)(i);
(B) is a director of the licensee described in Subsection (1)(d)(i);
(C) is an employee of the licensee described in Subsection (1)(d)(i);
(D) is a partner of the licensee described in Subsection (1)(d)(i);
(E) is a trustee of the licensee described in Subsection (1)(d)(i); or
(F) has a relationship to the licensee described in Subsection (1)(d)(i) that is similar to
a relationship described in Subsections (1)(d)(ii)(A) through (E) as determined by the
commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act;
(e) "license" means a license under this section; and
(f) "licensee" means a person that is licensed under this section by the commission.
(2) (a) It is unlawful for any person required to collect a tax under this chapter to
engage in business within the state without first having obtained a license to do so.
(b) The license described in Subsection (2)(a):
(i) shall be granted and issued by the commission;
(ii) is not assignable;
(iii) is valid only for the person in whose name the license is issued;
(iv) is valid until:
(A) the person described in Subsection (2)(b)(iii):
(I) ceases to do business; or
(II) changes that person's business address; or
(B) the license is revoked by the commission; and
(v) subject to Subsection (2)(d), shall be granted by the commission only upon an
application that:
(A) states the name and address of the applicant; and
(B) provides other information the commission may require.
(c) At the time an applicant makes an application under Subsection (2)(b)(v), the
commission shall notify the applicant of the responsibilities and liability of a business owner
successor under Section 
59-12-112
.
(d) The commission shall review an application and determine whether the applicant:
(i) meets the requirements of this section to be issued a license; and
(ii) is required to post a bond with the commission in accordance with Subsections
(2)(e) and (f) before the applicant may be issued a license.
(e) (i) An applicant shall post a bond with the commission before the commission may
issue the applicant a license if:
(A) a license under this section was revoked for a delinquency under this chapter for:
(I) the applicant;
(II) a fiduciary of the applicant; or
(III) a person for which the applicant or the fiduciary of the applicant is required to
collect, truthfully account for, and pay over a tax under this chapter; or
(B) there is a delinquency in paying a tax under this chapter for:
(I) the applicant;
(II) a fiduciary of the applicant; or
(III) a person for which the applicant or the fiduciary of the applicant is required to
collect, truthfully account for, and pay over a tax under this chapter.
(ii) If the commission determines it is necessary to ensure compliance with this
chapter, the commission may require a licensee to:
(A) for a licensee that has not posted a bond under this section with the commission,
post a bond with the commission in accordance with Subsection (2)(f); or
(B) for a licensee that has posted a bond under this section with the commission,
increase the amount of the bond posted with the commission.
(f) (i) A bond required by Subsection (2)(e) shall be:
(A) executed by:
(I) for an applicant, the applicant as principal, with a corporate surety; or
(II) for a licensee, the licensee as principal, with a corporate surety; and
(B) payable to the commission conditioned upon the faithful performance of all of the
requirements of this chapter including:
(I) the payment of any tax under this chapter;
(II) the payment of any:
(Aa) penalty as provided in Section 
59-1-401
; or
(Bb) interest as provided in Section 
59-1-402
; or
(III) any other obligation of the:
(Aa) applicant under this chapter; or
(Bb) licensee under this chapter.
(ii) Except as provided in Subsection (2)(f)(iv), the commission shall calculate the
amount of a bond required by Subsection (2)(e) on the basis of:
(A) commission estimates of:
(I) an applicant's tax liability under this chapter; or
(II) a licensee's tax liability under this chapter; and
(B) any amount of a delinquency described in Subsection (2)(f)(iii).
(iii) Except as provided in Subsection (2)(f)(iv), for purposes of Subsection
(2)(f)(ii)(B):
(A) for an applicant, the amount of the delinquency is the sum of:
(I) the amount of any delinquency that served as a basis for revoking the license under
this section of:
(Aa) the applicant;
(Bb) a fiduciary of the applicant; or
(Cc) a person for which the applicant or the fiduciary of the applicant is required to
collect, truthfully account for, and pay over a tax under this chapter; or
(II) the amount of tax that any of the following owe under this chapter:
(Aa) the applicant;
(Bb) a fiduciary of the applicant; and
(Cc) a person for which the applicant or the fiduciary of the applicant is required to
collect, truthfully account for, and pay over a tax under this chapter; or
(B) for a licensee, the amount of the delinquency is the sum of:
(I) the amount of any delinquency that served as a basis for revoking the license under
this section of:
(Aa) the licensee;
(Bb) a fiduciary of the licensee; or
(Cc) a person for which the licensee or the fiduciary of the licensee is required to
collect, truthfully account for, and pay over a tax under this chapter; or
(II) the amount of tax that any of the following owe under this chapter:
(Aa) the licensee;
(Bb) a fiduciary of the licensee; and
(Cc) a person for which the licensee or the fiduciary of the licensee is required to
collect, truthfully account for, and pay over a tax under this chapter.
(iv) Notwithstanding Subsection (2)(f)(ii) or (2)(f)(iii), a bond required by Subsection
(2)(e) may not:
(A) be less than $25,000; or
(B) exceed $500,000.
(g) If business is transacted at two or more separate places by one person, a separate
license for each place of business is required.
(h) (i) The commission shall, on a reasonable notice and after a hearing, revoke the
license of any licensee violating any provisions of this chapter.
(ii) A license may not be issued to a licensee described in Subsection (2)(h)(i) until the
licensee has complied with the requirements of this chapter, including:
(A) paying any:
(I) tax due under this chapter;
(II) penalty as provided in Section 
59-1-401
; or
(III) interest as provided in Section 
59-1-402
; and
(B) posting a bond in accordance with Subsections (2)(e) and (f).
(i) Any person required to collect a tax under this chapter within this state without
having secured a license to do so is guilty of a criminal violation as provided in Section
59-1-401
.
(j) A license:
(i) is not required for any person engaged exclusively in the business of selling
commodities that are exempt from taxation under this chapter; and
(ii) shall be issued to the person by the commission without a license fee.
(3) (a) For the purpose of the proper administration of this chapter and to prevent
evasion of the tax and the duty to collect the tax, it shall be presumed that tangible personal
property or any other taxable transaction under Subsection 
59-12-103
(1) sold by any person for
delivery in this state is sold for storage, use, or other consumption in this state unless the
person selling the property, item, or service has taken from the purchaser an exemption
certificate:
(i) bearing the name and address of the purchaser; and
(ii) providing that the property, item, or service was exempted under
:
(A)
 Section 
59-12-104
[
.
]
; or
(B) Section 
59-12-104.8
.
(b) An exemption certificate described in Subsection (3)(a):
(i) shall contain information as prescribed by the commission; and
(ii) if a paper exemption certificate is used, shall be signed by the purchaser.
(c) (i) Subject to Subsection (3)(c)(ii), a seller or certified service provider is not liable
to collect a tax under this chapter if the seller or certified service provider obtains within 90
days after a transaction is complete:
(A) an exemption certificate containing the information required by Subsections (3)(a)
and (b); or
(B) the information required by Subsections (3)(a) and (b).
(ii) A seller or certified service provider that does not obtain the exemption certificate
or information described in Subsection (3)(c)(i) with respect to a transaction is allowed 120
days after the commission requests the seller or certified service provider to substantiate the
exemption to:
(A) establish that the transaction is not subject to taxation under this chapter by a
means other than providing an exemption certificate containing the information required by
Subsections (3)(a) and (b); or
(B) subject to Subsection (3)(c)(iii), obtain an exemption certificate containing the
information required by Subsections (3)(a) and (b), taken in good faith.
(iii) For purposes of Subsection (3)(c)(ii)(B), an exemption certificate is taken in good
faith if the exemption certificate claims an exemption that:
(A) was allowed by statute on the date of the transaction in the jurisdiction of the
location of the transaction;
(B) could be applicable to that transaction; and
(C) is reasonable for the purchaser's type of business.
(d) Except as provided in Subsection (3)(e), a seller or certified service provider that
takes an exemption certificate from a purchaser in accordance with this Subsection (3) with
respect to a transaction is not liable to collect a tax under this chapter on that transaction.
(e) Subsection (3)(d) does not apply to a seller or certified service provider if the
commission establishes through an audit that the seller or certified service provider:
(i) knew or had reason to know at the time the purchaser provided the seller or certified
service provider the information described in Subsection (3)(a) or (b) that the information
related to the exemption claimed was materially false; or
(ii) otherwise knowingly participated in activity intended to purposefully evade the tax
due on the transaction.
(f) (i) Subject to Subsection (3)(f)(ii) and except as provided in Subsection (3)(f)(iii), if
there is a recurring business relationship between a seller or certified service provider and a
purchaser, the commission may not require the seller or certified service provider to:
(A) renew an exemption certificate;
(B) update an exemption certificate; or
(C) update a data element of an exemption certificate.
(ii) For purposes of Subsection (3)(f)(i), a recurring business relationship exists if no
more than a 12-month period elapses between transactions between a seller or certified service
provider and a purchaser.
(iii) If there is a recurring business relationship between a seller or certified service
provider and a purchaser, the commission shall require an exemption certificate the seller or
certified service provider takes from the purchaser to meet the requirements of Subsections
(3)(a) and (b).
(4) A person filing a contract bid with the state or a political subdivision of the state for
the sale of tangible personal property or any other taxable transaction under Subsection
59-12-103
(1) shall include with the bid the number of the license issued to that person under
Subsection (2).
Section 10. Section 
59-12-107
 is amended to read:
59-12-107.
Definitions -- Collection, remittance, and payment of tax by sellers or
other persons -- Returns -- Reports -- Direct payment by purchaser of vehicle -- Other
liability for collection -- Rulemaking authority -- Credits -- Treatment of bad debt --
Penalties and interest.
(1) As used in this section:
(a) "Ownership" means direct ownership or indirect ownership through a parent,
subsidiary, or affiliate.
(b) "Related seller" means a seller that:
(i) meets one or more of the criteria described in Subsection (2)(a)(i); and
(ii) delivers tangible personal property, a service, or a product transferred electronically
that is sold:
(A) by a seller that does not meet one or more of the criteria described in Subsection
(2)(a)(i); and
(B) to a purchaser in the state.
(c) "Substantial ownership interest" means an ownership interest in a business entity if
that ownership interest is greater than the degree of ownership of equity interest specified in 15
U.S.C. Sec. 78p, with respect to a person other than a director or an officer.
(2) (a) Except as provided in Subsection (2)(e), Section 
59-12-107.1
, or Section
59-12-123
, and subject to Subsection (2)(f), each seller shall pay or collect and remit the sales
and use taxes imposed by this chapter if within this state the seller:
(i) has or utilizes:
(A) an office;
(B) a distribution house;
(C) a sales house;
(D) a warehouse;
(E) a service enterprise; or
(F) a place of business similar to Subsections (2)(a)(i)(A) through (E);
(ii) maintains a stock of goods;
(iii) regularly solicits orders, regardless of whether or not the orders are accepted in the
state, unless the seller's only activity in the state is:
(A) advertising; or
(B) solicitation by:
(I) direct mail;
(II) electronic mail;
(III) the Internet;
(IV) telecommunications service; or
(V) a means similar to Subsection (2)(a)(iii)(A) or (B);
(iv) regularly engages in the delivery of property in the state other than by:
(A) common carrier; or
(B) United States mail; or
(v) regularly engages in an activity directly related to the leasing or servicing of
property located within the state.
(b) A seller is considered to be engaged in the business of selling tangible personal
property, a service, or a product transferred electronically for use in the state, and shall pay or
collect and remit the sales and use taxes imposed by this chapter if:
(i) the seller holds a substantial ownership interest in, or is owned in whole or in
substantial part by, a related seller; and
(ii) (A) the seller sells the same or a substantially similar line of products as the related
seller and does so under the same or a substantially similar business name; or
(B) the place of business described in Subsection (2)(a)(i) of the related seller or an in
state employee of the related seller is used to advertise, promote, or facilitate sales by the seller
to a purchaser.
(c) A seller that does not meet one or more of the criteria provided for in Subsection
(2)(a) or is not a seller required to pay or collect and remit sales and use taxes under Subsection
(2)(b):
(i) except as provided in Subsection (2)(c)(ii), may voluntarily:
(A) collect a tax on a transaction described in Subsection 
59-12-103
(1); and
(B) remit the tax to the commission as provided in this part; or
(ii) notwithstanding Subsection (2)(c)(i), shall collect a tax on a transaction described
in Subsection 
59-12-103
(1) if Section 
59-12-103.1
 requires the seller to collect the tax.
(d) The collection and remittance of a tax under this chapter by a seller that is
registered under the agreement may not be used as a factor in determining whether that seller is
required by Subsection (2) to:
(i) pay a tax, fee, or charge under:
(A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(C) Section 
19-6-714
;
(D) Section 
19-6-805
;
(E) Title 69, Chapter 2, Part 4, 911 Emergency Service Charges; or
(F) this title; or
(ii) collect and remit a tax, fee, or charge under:
(A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(B) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(C) Section 
19-6-714
;
(D) Section 
19-6-805
;
(E) Title 69, Chapter 2, Part 4, 911 Emergency Service Charges; or
(F) this title.
(e) A person shall pay a use tax imposed by this chapter on a transaction described in
Subsection 
59-12-103
(1) if:
(i) the seller did not collect a tax imposed by this chapter on the transaction; and
(ii) the person:
(A) stores the tangible personal property or product transferred electronically in the
state;
(B) uses the tangible personal property or product transferred electronically in the state;
or
(C) consumes the tangible personal property or product transferred electronically in the
state.
(f) The ownership of property that is located at the premises of a printer's facility with
which the retailer has contracted for printing and that consists of the final printed product,
property that becomes a part of the final printed product, or copy from which the printed
product is produced, shall not result in the retailer being considered to have or maintain an
office, distribution house, sales house, warehouse, service enterprise, or other place of
business, or to maintain a stock of goods, within this state.
(3) (a) Except as provided in Section 
59-12-107.1
, a tax under this chapter shall be
collected from a purchaser.
(b) A seller may not collect as tax an amount, without regard to fractional parts of one
cent, in excess of the tax computed at the rates prescribed by this chapter.
(c) (i) Each seller shall:
(A) give the purchaser a receipt for the tax collected; or
(B) bill the tax as a separate item and declare the name of this state and the seller's
sales and use tax license number on the invoice for the sale.
(ii) The receipt or invoice is prima facie evidence that the seller has collected the tax
and relieves the purchaser of the liability for reporting the tax to the commission as a
consumer.
(d) A seller is not required to maintain a separate account for the tax collected, but is
considered to be a person charged with receipt, safekeeping, and transfer of public money.
(e) Taxes collected by a seller pursuant to this chapter shall be held in trust for the
benefit of the state and for payment to the commission in the manner and at the time provided
for in this chapter.
(f) If any seller, during any reporting period, collects as a tax an amount in excess of
the lawful state and local percentage of total taxable sales allowed under this chapter, the seller
shall remit to the commission the full amount of the tax imposed under this chapter, plus any
excess.
(g) If the accounting methods regularly employed by the seller in the transaction of the
seller's business are such that reports of sales made during a calendar month or quarterly period
will impose unnecessary hardships, the commission may accept reports at intervals that will, in
the commission's opinion, better suit the convenience of the taxpayer or seller and will not
jeopardize collection of the tax.
(h) (i) For a purchase paid with specie legal tender as defined in Section 
59-1-1501.1
,
and until such time as the commission accepts specie legal tender for the payment of a tax
under this chapter, if the commission requires a seller to remit a tax under this chapter in legal
tender other than specie legal tender, the seller shall state on the seller's books and records and
on an invoice, bill of sale, or similar document provided to the purchaser:
(A) the purchase price in specie legal tender and in the legal tender the seller is
required to remit to the commission;
(B) subject to Subsection (3)(h)(ii), the amount of tax due under this chapter in specie
legal tender and in the legal tender the seller is required to remit to the commission;
(C) the tax rate under this chapter applicable to the purchase; and
(D) the date of the purchase.
(ii) (A) Subject to Subsection (3)(h)(ii)(B), for purposes of determining the amount of
tax due under Subsection (3)(h)(i), a seller shall use the most recent London fixing price for the
specie legal tender the purchaser paid.
(B) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules for determining the amount of tax due under Subsection (3)(h)(i)
if the London fixing price is not available for a particular day.
(4) (a) Except as provided in Subsections (5) through (7) and Section 
59-12-108
, the
sales or use tax imposed by this chapter is due and payable to the commission quarterly on or
before the last day of the month next succeeding each calendar quarterly period.
(b) (i) Each seller shall, on or before the last day of the month next succeeding each
calendar quarterly period, file with the commission a return for the preceding quarterly period.
(ii) The seller shall remit with the return under Subsection (4)(b)(i) the amount of the
tax required under this chapter to be collected or paid for the period covered by the return.
(c) Except as provided in Subsection (5)(c), a return shall contain information and be in
a form the commission prescribes by rule.
(d) (i) Subject to Subsection (4)(d)(ii), the sales tax as computed in the return shall be
based on the total nonexempt sales made during the period for which the return is filed,
including both cash and charge sales.
(ii) For a sale that includes the delivery or installation of tangible personal property at a
location other than a seller's place of business described in Subsection (2)(a)(i), if the delivery
or installation is separately stated on an invoice or receipt, a seller may compute the tax due on
the sale for purposes of Subsection (4)(d)(i) based on the amount the seller receives for that
sale during each period for which the seller receives payment for the sale.
(e) (i) The use tax as computed in the return shall be based on the total amount of
purchases for storage, use, or other consumption in this state made during the period for which
the return is filed, including both cash and charge purchases.
(ii) (A) As used in this Subsection (4)(e)(ii), "qualifying purchaser" means a purchaser
who is required to remit taxes under this chapter, but is not required to remit taxes monthly in
accordance with Section 
59-12-108
, and who converts tangible personal property into real
property.
(B) Subject to Subsections (4)(e)(ii)(C) and (D), a qualifying purchaser may remit the
taxes due under this chapter on tangible personal property for which the qualifying purchaser
claims an exemption as allowed under Subsection 
59-12-104
(23) or (25) based on the period in
which the qualifying purchaser receives payment, in accordance with Subsection (4)(e)(ii)(C),
for the conversion of the tangible personal property into real property.
(C) A qualifying purchaser remitting taxes due under this chapter in accordance with
Subsection (4)(e)(ii)(B) shall remit an amount equal to the total amount of tax due on the
qualifying purchaser's purchase of the tangible personal property that was converted into real
property multiplied by a fraction, the numerator of which is the payment received in the period
for the qualifying purchaser's sale of the tangible personal property that was converted into real
property and the denominator of which is the entire sales price for the qualifying purchaser's
sale of the tangible personal property that was converted into real property.
(D) A qualifying purchaser may remit taxes due under this chapter in accordance with
this Subsection (4)(e)(ii) only if the books and records that the qualifying purchaser keeps in
the qualifying purchaser's regular course of business identify by reasonable and verifiable
standards that the tangible personal property was converted into real property.
(f) (i) Subject to Subsection (4)(f)(ii) and in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, the commission may by rule extend the time for making
returns and paying the taxes.
(ii) An extension under Subsection (4)(f)(i) may not be for more than 90 days.
(g) The commission may require returns and payment of the tax to be made for other
than quarterly periods if the commission considers it necessary in order to ensure the payment
of the tax imposed by this chapter.
(h) (i) The commission may require a seller that files a simplified electronic return with
the commission to file an additional electronic report with the commission.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules providing:
(A) the information required to be included in the additional electronic report described
in Subsection (4)(h)(i); and
(B) one or more due dates for filing the additional electronic report described in
Subsection (4)(h)(i).
(5) (a) As used in this Subsection (5) and Subsection (6)(b), "remote seller" means a
seller that is:
(i) registered under the agreement;
(ii) described in Subsection (2)(c); and
(iii) not a:
(A) model 1 seller;
(B) model 2 seller; or
(C) model 3 seller.
(b) (i) Except as provided in Subsection (5)(b)(ii), a tax a remote seller collects in
accordance with Subsection (2)(c) is due and payable:
(A) to the commission;
(B) annually; and
(C) on or before the last day of the month immediately following the last day of each
calendar year.
(ii) The commission may require that a tax a remote seller collects in accordance with
Subsection (2)(c) be due and payable:
(A) to the commission; and
(B) on the last day of the month immediately following any month in which the seller
accumulates a total of at least $1,000 in agreement sales and use tax.
(c) (i) If a remote seller remits a tax to the commission in accordance with Subsection
(5)(b), the remote seller shall file a return:
(A) with the commission;
(B) with respect to the tax;
(C) containing information prescribed by the commission; and
(D) on a form prescribed by the commission.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall make rules prescribing:
(A) the information required to be contained in a return described in Subsection
(5)(c)(i); and
(B) the form described in Subsection (5)(c)(i)(D).
(d) A tax a remote seller collects in accordance with this Subsection (5) shall be
calculated on the basis of the total amount of taxable transactions under Subsection
59-12-103
(1) the remote seller completes, including:
(i) a cash transaction; and
(ii) a charge transaction.
(6) (a) Except as provided in Subsection (6)(b), a tax a seller that files a simplified
electronic return collects in accordance with this chapter is due and payable:
(i) monthly on or before the last day of the month immediately following the month for
which the seller collects a tax under this chapter; and
(ii) for the month for which the seller collects a tax under this chapter.
(b) A tax a remote seller that files a simplified electronic return collects in accordance
with this chapter is due and payable as provided in Subsection (5).
(7) (a) On each vehicle sale made by other than a regular licensed vehicle dealer, the
purchaser shall pay the sales or use tax directly to the commission if the vehicle is subject to
titling or registration under the laws of this state.
(b) The commission shall collect the tax described in Subsection (7)(a) when the
vehicle is titled or registered.
(8) If any sale of tangible personal property or any other taxable transaction under
Subsection 
59-12-103
(1), is made by a wholesaler to a retailer, the wholesaler is not
responsible for the collection or payment of the tax imposed on the sale and the retailer is
responsible for the collection or payment of the tax imposed on the sale if:
(a) the retailer represents that the personal property is purchased by the retailer for
resale; and
(b) the personal property is not subsequently resold.
(9) If any sale of property or service subject to the tax is made to a person prepaying
sales or use tax in accordance with Title 63M, Chapter 5, Resource Development Act, or to a
contractor or subcontractor of that person, the person to whom such payment or consideration
is payable is not responsible for the collection or payment of the sales or use tax and the person
prepaying the sales or use tax is responsible for the collection or payment of the sales or use tax
if the person prepaying the sales or use tax represents that the amount prepaid as sales or use
tax has not been fully credited against sales or use tax due and payable under the rules
promulgated by the commission.
(10) (a) For purposes of this Subsection (10):
(i) Except as provided in Subsection (10)(a)(ii), "bad debt" is as defined in Section
166, Internal Revenue Code.
(ii) Notwithstanding Subsection (10)(a)(i), "bad debt" does not include:
(A) an amount included in the purchase price of tangible personal property, a product
transferred electronically, or a service that is:
(I) not a transaction described in Subsection 
59-12-103
(1); [
or
]
(II) exempt under Section 
59-12-104
; 
or
(III) exempt under Section 
59-12-104.8
;
(B) a financing charge;
(C) interest;
(D) a tax imposed under this chapter on the purchase price of tangible personal
property, a product transferred electronically, or a service;
(E) an uncollectible amount on tangible personal property or a product transferred
electronically that:
(I) is subject to a tax under this chapter; and
(II) remains in the possession of a seller until the full purchase price is paid;
(F) an expense incurred in attempting to collect any debt; or
(G) an amount that a seller does not collect on repossessed property.
(b) (i) To the extent an amount remitted in accordance with Subsection (4)(d) later
becomes bad debt, a seller may deduct the bad debt from the total amount from which a tax
under this chapter is calculated on a return.
(ii) A qualifying purchaser, as defined in Subsection (4)(e)(ii)(A), may deduct from the
total amount of taxes due under this chapter the amount of tax the qualifying purchaser paid on
the qualifying purchaser's purchase of tangible personal property converted into real property to
the extent that:
(A) tax was remitted in accordance with Subsection (4)(e) on that tangible personal
property converted into real property;
(B) the qualifying purchaser's sale of that tangible personal property converted into real
property later becomes bad debt; and
(C) the books and records that the qualifying purchaser keeps in the qualifying
purchaser's regular course of business identify by reasonable and verifiable standards that the
tangible personal property was converted into real property.
(c) A seller may file a refund claim with the commission if:
(i) the amount of bad debt for the time period described in Subsection (10)(e) exceeds
the amount of the seller's sales that are subject to a tax under this chapter for that same time
period; and
(ii) as provided in Section 
59-1-1410
.
(d) A bad debt deduction under this section may not include interest.
(e) A bad debt may be deducted under this Subsection (10) on a return for the time
period during which the bad debt:
(i) is written off as uncollectible in the seller's books and records; and
(ii) would be eligible for a bad debt deduction:
(A) for federal income tax purposes; and
(B) if the seller were required to file a federal income tax return.
(f) If a seller recovers any portion of bad debt for which the seller makes a deduction or
claims a refund under this Subsection (10), the seller shall report and remit a tax under this
chapter:
(i) on the portion of the bad debt the seller recovers; and
(ii) on a return filed for the time period for which the portion of the bad debt is
recovered.
(g) For purposes of reporting a recovery of a portion of bad debt under Subsection
(10)(f), a seller shall apply amounts received on the bad debt in the following order:
(i) in a proportional amount:
(A) to the purchase price of the tangible personal property, product transferred
electronically, or service; and
(B) to the tax due under this chapter on the tangible personal property, product
transferred electronically, or service; and
(ii) to:
(A) interest charges;
(B) service charges; and
(C) other charges.
(h) A seller's certified service provider may make a deduction or claim a refund for bad
debt on behalf of the seller:
(i) in accordance with this Subsection (10); and
(ii) if the certified service provider credits or refunds the entire amount of the bad debt
deduction or refund to the seller.
(i) A seller may allocate bad debt among the states that are members of the agreement
if the seller's books and records support that allocation.
(11) (a) A seller may not, with intent to evade any tax, fail to timely remit the full
amount of tax required by this chapter.
(b) A violation of this section is punishable as provided in Section 
59-1-401
.
(c) Each person who fails to pay any tax to the state or any amount of tax required to be
paid to the state, except amounts determined to be due by the commission under Chapter 1,
Part 14, Assessment, Collections, and Refunds Act, or Section 
59-12-111
, within the time
required by this chapter, or who fails to file any return as required by this chapter, shall pay, in
addition to the tax, penalties and interest as provided in Sections 
59-1-401
 and 
59-1-402
.
(d) For purposes of prosecution under this section, each quarterly tax period in which a
seller, with intent to evade any tax, collects a tax and fails to timely remit the full amount of the
tax required to be remitted, constitutes a separate offense.
Section 11. Section 
59-12-204
 is amended to read:
59-12-204.
Sales and use tax ordinance provisions -- Tax rate -- Distribution of
tax revenue -- Commission requirement to retain an amount to be deposited into the
Qualified Emergency Food Agencies Fund.
(1) The tax ordinance adopted pursuant to this part shall impose a tax upon those
transactions listed in Subsection 
59-12-103
(1).
(2) (a) The tax ordinance under Subsection (1) shall include a provision imposing a tax
upon every transaction listed in Subsection 
59-12-103
(1) made within a county, including areas
contained within the cities and towns located in the county:
(i) at the rate of 1% of the purchase price paid or charged; and
(ii) if the location of the transaction is within the county as determined under Sections
59-12-211
 through 
59-12-215
.
(b) Notwithstanding Subsection (2)(a), a tax ordinance under this Subsection (2) shall
include a provision prohibiting a county, city, or town from imposing a tax under this section
on the sales and uses described in
:
(i)
 Section 
59-12-104
 to the extent the sales and uses are exempt from taxation under
Section 
59-12-104
[
.
]
; or
(ii) Section 
59-12-104.8
 to the extent the sales and uses are exempt from taxation
under Section 
59-12-104.8
.
(3) Such tax ordinance shall include provisions substantially the same as those
contained in Part 1, Tax Collection, insofar as they relate to sales or use tax, except that the
name of the county as the taxing agency shall be substituted for that of the state where
necessary for the purpose of this part and that an additional license is not required if one has
been or is issued under Section 
59-12-106
.
(4) Such tax ordinance shall include a provision that the county shall contract, prior to
the effective date of the ordinance, with the commission to perform all functions incident to the
administration or operation of the ordinance.
(5) Such tax ordinance shall include a provision that the sale, storage, use, or other
consumption of tangible personal property, the purchase price or the cost of which has been
subject to sales or use tax under a sales and use tax ordinance enacted in accordance with this
part by any county, city, or town in any other county in this state, shall be exempt from the tax
due under this ordinance.
(6) Such tax ordinance shall include a provision that any person subject to the
provisions of a city or town sales and use tax shall be exempt from the county sales and use tax
if the city or town sales and use tax is levied under an ordinance including provisions in
substance as follows:
(a) a provision imposing a tax upon every transaction listed in Subsection 
59-12-103
(1)
made within the city or town at the rate imposed by the county in which it is situated pursuant
to Subsection (2);
(b) notwithstanding Subsection (2)(a), a provision prohibiting the city or town from
imposing a tax under this section on the sales and uses described in
:
(i)
 Section 
59-12-104
 to the extent the sales and uses are exempt from taxation under
Section 
59-12-104
; 
or
(ii) Section 
59-12-104.8
 to the extent the sales and uses are exempt from taxation
under Section 
59-12-104.8
;
(c) provisions substantially the same as those contained in Part 1, Tax Collection,
insofar as they relate to sales and use taxes, except that the name of the city or town as the
taxing agency shall be substituted for that of the state where necessary for the purposes of this
part;
(d) a provision that the city or town shall contract prior to the effective date of the city
or town sales and use tax ordinance with the commission to perform all functions incident to
the administration or operation of the sales and use tax ordinance of the city or town;
(e) a provision that the sale, storage, use, or other consumption of tangible personal
property, the gross receipts from the sale of or the cost of which has been subject to sales or use
tax under a sales and use tax ordinance enacted in accordance with this part by any county
other than the county in which the city or town is located, or city or town in this state, shall be
exempt from the tax; and
(f) a provision that the amount of any tax paid under Part 1, Tax Collection, shall not
be included as a part of the purchase price paid or charged for a taxable item.
(7) (a) Notwithstanding any other provision of this section, beginning on July 1, 2009,
the commission shall calculate and retain a portion of the sales and use tax collected under this
part as provided in this Subsection (7).
(b) For a city, town, or unincorporated area of a county that imposes a tax under this
part, the commission shall calculate a percentage each month by dividing the sales and use tax
collected under this part for that month within the boundaries of that city, town, or
unincorporated area of a county by the total sales and use tax collected under this part for that
month within the boundaries of all of the cities, towns, and unincorporated areas of the
counties that impose a tax under this part.
(c) For a city, town, or unincorporated area of a county that imposes a tax under this
part, the commission shall retain each month an amount equal to the product of:
(i) the percentage the commission determines for the month under Subsection (7)(b)
for the city, town, or unincorporated area of a county; and
(ii) $25,417.
(d) The commission shall deposit an amount the commission retains in accordance
with this Subsection (7) into the Qualified Emergency Food Agencies Fund created by Section
35A-8-1009
.
(e) An amount the commission deposits into the Qualified Emergency Food Agencies
Fund shall be expended as provided in Section 
35A-8-1009
.
Section 12. Section 
59-12-401
 is amended to read:
59-12-401.
Resort communities tax authority for cities, towns, and military
installation development authority -- Base -- Rate -- Collection fees.
(1) (a) In addition to other sales and use taxes, a city or town in which the transient
room capacity as defined in Section 
59-12-405
 is greater than or equal to 66% of the
municipality's permanent census population may impose a sales and use tax of up to 1.1% on
the transactions described in Subsection 
59-12-103
(1) located within the city or town.
(b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
section on:
(i) the sale of:
(A) a motor vehicle;
(B) an aircraft;
(C) a watercraft;
(D) a modular home;
(E) a manufactured home; or
(F) a mobile home;
(ii) the sales and uses described in
:
(A)
 Section 
59-12-104
 to the extent the sales and uses are exempt from taxation under
Section 
59-12-104
; 
or
(B) Section 
59-12-104.8
 to the extent the sales and uses are exempt from taxation
under Section 
59-12-104.8
;
 and
(iii) except as provided in Subsection (1)(d), amounts paid or charged for food and
food ingredients.
(c) For purposes of this Subsection (1), the location of a transaction shall be
determined in accordance with Sections 
59-12-211
 through 
59-12-215
.
(d) A city or town imposing a tax under this section shall impose the tax on the
purchase price or the sales price for amounts paid or charged for food and food ingredients if
the food and food ingredients are sold as part of a bundled transaction attributable to food and
food ingredients and tangible personal property other than food and food ingredients.
(2) (a) An amount equal to the total of any costs incurred by the state in connection
with the implementation of Subsection (1) which exceed, in any year, the revenues received by
the state from its collection fees received in connection with the implementation of Subsection
(1) shall be paid over to the state General Fund by the cities and towns which impose the tax
provided for in Subsection (1).
(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among
those cities and towns according to the amount of revenue the respective cities and towns
generate in that year through imposition of that tax.
(3) (a) Subject to Section 
63H-1-203
, the military installation development authority
created in Section 
63H-1-201
 may impose a tax under this section on the transactions described
in Subsection 
59-12-103
(1) located within a project area described in a project area plan
adopted by the authority under Title 63H, Chapter 1, Military Installation Development
Authority Act, as though the authority were a city or a town.
(b) For purposes of calculating the permanent census population within a project area,
the board as defined in Section 
63H-1-102
 shall:
(i) use the actual number of permanent residents within the project area as determined
by the board;
(ii) adopt a resolution verifying the population number; and
(iii) provide the commission any information required in Section 
59-12-405
.
(c) Notwithstanding Subsection (1)(a), a board as defined in Section 
63H-1-102
 may
impose the sales and use tax under this section if there are no permanent residents.
Section 13. Section 
59-12-402
 is amended to read:
59-12-402.
Additional resort communities sales and use tax -- Base -- Rate --
Collection fees -- Resolution and voter approval requirements -- Election requirements --
Notice requirements -- Ordinance requirements -- Prohibition of military installation
development authority imposition of tax.
(1) (a) Subject to Subsections (2) through (6), the governing body of a municipality in
which the transient room capacity as defined in Section 
59-12-405
 is greater than or equal to
66% of the municipality's permanent census population may, in addition to the sales tax
authorized under Section 
59-12-401
, impose an additional resort communities sales tax in an
amount that is less than or equal to .5% on the transactions described in Subsection
59-12-103
(1) located within the municipality.
(b) Notwithstanding Subsection (1)(a), the governing body of a municipality may not
impose a tax under this section on:
(i) the sale of:
(A) a motor vehicle;
(B) an aircraft;
(C) a watercraft;
(D) a modular home;
(E) a manufactured home; or
(F) a mobile home;
(ii) the sales and uses described in
:
(A)
 Section 
59-12-104
 to the extent the sales and uses are exempt from taxation under
Section 
59-12-104
; 
or
(B) Section 
59-12-104.8
 to the extent the sales and uses are exempt from taxation
under Section 
59-12-104.8
;
 and
(iii) except as provided in Subsection (1)(d), amounts paid or charged for food and
food ingredients.
(c) For purposes of this Subsection (1), the location of a transaction shall be
determined in accordance with Sections 
59-12-211
 through 
59-12-215
.
(d) A municipality imposing a tax under this section shall impose the tax on the
purchase price or sales price for amounts paid or charged for food and food ingredients if the
food and food ingredients are sold as part of a bundled transaction attributable to food and food
ingredients and tangible personal property other than food and food ingredients.
(2) (a) An amount equal to the total of any costs incurred by the state in connection
with the implementation of Subsection (1) which exceed, in any year, the revenues received by
the state from its collection fees received in connection with the implementation of Subsection
(1) shall be paid over to the state General Fund by the cities and towns which impose the tax
provided for in Subsection (1).
(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among
those cities and towns according to the amount of revenue the respective cities and towns
generate in that year through imposition of that tax.
(3) To impose an additional resort communities sales tax under this section, the
governing body of the municipality shall:
(a) pass a resolution approving the tax; and
(b) except as provided in Subsection (6), obtain voter approval for the tax as provided
in Subsection (4).
(4) To obtain voter approval for an additional resort communities sales tax under
Subsection (3)(b), a municipality shall:
(a) hold the additional resort communities sales tax election during:
(i) a regular general election; or
(ii) a municipal general election; and
(b) publish notice of the election:
(i) 15 days or more before the day on which the election is held; and
(ii) (A) in a newspaper of general circulation in the municipality; and
(B) as required in Section 
45-1-101
.
(5) An ordinance approving an additional resort communities sales tax under this
section shall provide an effective date for the tax as provided in Section 
59-12-403
.
(6) (a) Except as provided in Subsection (6)(b), a municipality is not subject to the
voter approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the
municipality imposed a license fee or tax on businesses based on gross receipts pursuant to
Section 
10-1-203
.
(b) The exception from the voter approval requirements in Subsection (6)(a) does not
apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only
one class of businesses based on gross receipts pursuant to Section 
10-1-203
.
(7) A military installation development authority authorized to impose a resort
communities tax under Section 
59-12-401
 may not impose an additional resort communities
sales tax under this section.
Section 14. Section 
59-12-402.1
 is amended to read:
59-12-402.1.
State correctional facility sales and use tax -- Base -- Rate --
Collection fees -- Imposition -- Prohibition of military installation development authority
imposition of tax.
(1) As used in this section, "new state correctional facility" means a new prison in the
state:
(a) that is operated by the Department of Corrections;
(b) the construction of which begins on or after May 12, 2015; and
(c) that provides a capacity of 2,500 or more inmate beds.
(2) Subject to the other provisions of this part, a city or town legislative body may
impose a tax under this section if the construction of a new state correctional facility has begun
within the boundaries of the city or town.
(3) For purposes of this section, the tax rate may not exceed .5%.
(4) Except as provided in Subsection (5), a tax under this section shall be imposed on
the transactions described in Subsection 
59-12-103
(1) within the city or town.
(5) A city or town may not impose a tax under this section on:
(a) the sale of:
(i) a motor vehicle;
(ii) an aircraft;
(iii) a watercraft;
(iv) a modular home;
(v) a manufactured home; or
(vi) a mobile home;
(b) the sales and uses described in
:
(i)
 Section 
59-12-104
 to the extent the sales and uses are exempt under Section
59-12-104
; 
or
(ii) Section 
59-12-104.8
 to the extent the sales and uses are exempt from taxation
under Section 
59-12-104.8
;
 and
(c) except as provided in Subsection (7), amounts paid or charged for food and food
ingredients.
(6) For purposes of this section, the location of a transaction shall be determined in
accordance with Sections 
59-12-211
 through 
59-12-215
.
(7) A city or town that imposes a tax under this section shall impose the tax on the
purchase price or sales price for amounts paid or charged for food and food ingredients if the
food and food ingredients are sold as part of a bundled transaction attributable to food and food
ingredients and tangible personal property other than food and food ingredients.
(8) A city or town may impose a tax under this section by majority vote of the
members of the city or town legislative body.
(9) A city or town that imposes a tax under this section is not subject to Section
59-12-405
.
(10) A military installation development authority may not impose a tax under this
section.
Section 15. Section 
59-12-703
 is amended to read:
59-12-703.
Opinion question election -- Base -- Rate -- Imposition of tax --
Expenditure of revenues -- Administration -- Enactment or repeal of tax -- Effective date
-- Notice requirements.
(1) (a) Subject to the other provisions of this section, a county legislative body may
submit an opinion question to the residents of that county, by majority vote of all members of
the legislative body, so that each resident of the county, except residents in municipalities that
have already imposed a sales and use tax under Part 14, City or Town Option Funding for
Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, has an
opportunity to express the resident's opinion on the imposition of a local sales and use tax of
.1% on the transactions described in Subsection 
59-12-103
(1) located within the county, to:
(i) fund cultural facilities, recreational facilities, and zoological facilities, botanical
organizations, cultural organizations, and zoological organizations, and rural radio stations, in
that county; or
(ii) provide funding for a botanical organization, cultural organization, or zoological
organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in
furtherance of the botanical organization's, cultural organization's, or zoological organization's
primary purpose.
(b) The opinion question required by this section shall state:
"Shall (insert the name of the county), Utah, be authorized to impose a .1% sales and
use tax for (list the purposes for which the revenue collected from the sales and use tax shall be
expended)?"
(c) A county legislative body may not impose a tax under this section on:
(i) the sales and uses described in
:
(A)
 Section 
59-12-104
 to the extent the sales and uses are exempt from taxation under
Section 
59-12-104
; 
or
(B) Section 
59-12-104.8
 to the extent the sales and uses are exempt from taxation
under Section 
59-12-104.8
;
(ii) sales and uses within a municipality that has already imposed a sales and use tax
under Part 14, City or Town Option Funding for Botanical, Cultural, Recreational, and
Zoological Organizations or Facilities; and
(iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
food ingredients.
(d) For purposes of this Subsection (1), the location of a transaction shall be
determined in accordance with Sections 
59-12-211
 through 
59-12-215
.
(e) A county legislative body imposing a tax under this section shall impose the tax on
the purchase price or sales price for amounts paid or charged for food and food ingredients if
the food and food ingredients are sold as part of a bundled transaction attributable to food and
food ingredients and tangible personal property other than food and food ingredients.
(f) The election shall follow the procedures outlined in Title 11, Chapter 14, Local
Government Bonding Act.
(2) (a) If the county legislative body determines that a majority of the county's
registered voters voting on the imposition of the tax have voted in favor of the imposition of
the tax as prescribed in Subsection (1), the county legislative body may impose the tax by a
majority vote of all members of the legislative body on the transactions:
(i) described in Subsection (1); and
(ii) within the county, including the cities and towns located in the county, except those
cities and towns that have already imposed a sales and use tax under Part 14, City or Town
Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
Facilities.
(b) A county legislative body may revise county ordinances to reflect statutory changes
to the distribution formula or eligible recipients of revenue generated from a tax imposed under
Subsection (2)(a) without submitting an opinion question to residents of the county.
(3) Subject to Section 
59-12-704
, revenue collected from a tax imposed under
Subsection (2) shall be expended:
(a) to fund cultural facilities, recreational facilities, and zoological facilities located
within the county or a city or town located in the county, except a city or town that has already
imposed a sales and use tax under Part 14, City or Town Option Funding for Botanical,
Cultural, Recreational, and Zoological Organizations or Facilities;
(b) to fund ongoing operating expenses of:
(i) recreational facilities described in Subsection (3)(a);
(ii) botanical organizations, cultural organizations, and zoological organizations within
the county; and
(iii) rural radio stations within the county; and
(c) as stated in the opinion question described in Subsection (1).
(4) (a) A tax authorized under this part shall be:
(i) except as provided in Subsection (4)(b), administered, collected, and enforced in
accordance with:
(A) the same procedures used to administer, collect, and enforce the tax under:
(I) Part 1, Tax Collection; or
(II) Part 2, Local Sales and Use Tax Act; and
(B) Chapter 1, General Taxation Policies; and
(ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
period in accordance with this section.
(b) A tax under this part is not subject to Subsections 
59-12-205
(2) through (7).
(5) (a) For purposes of this Subsection (5):
(i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Part 2,
County Annexation.
(ii) "Annexing area" means an area that is annexed into a county.
(b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
county enacts or repeals a tax under this part, the enactment or repeal shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (5)(b)(ii) from the county.
(ii) The notice described in Subsection (5)(b)(i)(B) shall state:
(A) that the county will enact or repeal a tax under this part;
(B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
(D) if the county enacts the tax described in Subsection (5)(b)(ii)(A), the rate of the
tax.
(c) (i) If the billing period for a transaction begins before the effective date of the
enactment of the tax under this section, the enactment of the tax takes effect on the first day of
the first billing period that begins on or after the effective date of the enactment of the tax.
(ii) The repeal of a tax applies to a billing period if the billing statement for the billing
period is produced on or after the effective date of the repeal of the tax imposed under this
section.
(d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
Subsection (5)(b)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment or repeal under
Subsection (5)(b)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "catalogue sale."
(e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
part for an annexing area, the enactment or repeal shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (5)(e)(ii) from the county that annexes the annexing area.
(ii) The notice described in Subsection (5)(e)(i)(B) shall state:
(A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
repeal of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
(C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
(D) the rate of the tax described in Subsection (5)(e)(ii)(A).
(f) (i) If the billing period for a transaction begins before the effective date of the
enactment of the tax under this section, the enactment of the tax takes effect on the first day of
the first billing period that begins on or after the effective date of the enactment of the tax.
(ii) The repeal of a tax applies to a billing period if the billing statement for the billing
period is produced on or after the effective date of the repeal of the tax imposed under this
section.
(g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
Subsection (5)(e)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment or repeal under
Subsection (5)(e)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "catalogue sale."
Section 16. Section 
59-12-802
 is amended to read:
59-12-802.
Imposition of rural county health care facilities tax -- Expenditure of
tax revenue -- Base -- Rate -- Administration, collection, and enforcement of tax --
Administrative charge.
(1) (a) A county legislative body of a county of the third, fourth, fifth, or sixth class
may impose a sales and use tax of up to 1% on the transactions described in Subsection
59-12-103
(1) located within the county.
(b) Subject to Subsection (3), the money collected from a tax under this section may be
used to fund:
(i) for a county of the third or fourth class, rural county health care facilities in that
county; or
(ii) for a county of the fifth or sixth class:
(A) rural emergency medical services in that county;
(B) federally qualified health centers in that county;
(C) freestanding urgent care centers in that county;
(D) rural county health care facilities in that county;
(E) rural health clinics in that county; or
(F) a combination of Subsections (1)(b)(ii)(A) through (E).
(c) Notwithstanding Subsection (1)(a), a county legislative body may not impose a tax
under this section on:
(i) 
(A)
 the sales and uses described in Section 
59-12-104
 to the extent the sales and
uses are exempt from taxation under Section 
59-12-104
; 
or
(B) Section 
59-12-104.8
 to the extent the sales and uses are exempt from taxation
under Section 
59-12-104.8
;
(ii) a transaction to the extent a rural city hospital tax is imposed on that transaction in
a city that imposes a tax under Section 
59-12-804
; and
(iii) except as provided in Subsection (1)(e), amounts paid or charged for food and
food ingredients.
(d) For purposes of this Subsection (1), the location of a transaction shall be
determined in accordance with Sections 
59-12-211
 through 
59-12-215
.
(e) A county legislative body imposing a tax under this section shall impose the tax on
the purchase price or sales price for amounts paid or charged for food and food ingredients if
the food and food ingredients are sold as part of a bundled transaction attributable to food and
food ingredients and tangible personal property other than food and food ingredients.
(2) (a) Before imposing a tax under Subsection (1), a county legislative body shall
obtain approval to impose the tax from a majority of the:
(i) members of the county's legislative body; and
(ii) county's registered voters voting on the imposition of the tax.
(b) The county legislative body shall conduct the election according to the procedures
and requirements of Title 11, Chapter 14, Local Government Bonding Act.
(3) (a) The money collected from a tax imposed under Subsection (1) by a county
legislative body of a county of the third or fourth class may only be used for the financing of:
(i) ongoing operating expenses of a rural county health care facility within that county;
(ii) the acquisition of land for a rural county health care facility within that county; or
(iii) the design, construction, equipping, or furnishing of a rural county health care
facility within that county.
(b) The money collected from a tax imposed under Subsection (1) by a county of the
fifth or sixth class may only be used to fund:
(i) ongoing operating expenses of a center, clinic, or facility described in Subsection
(1)(b)(ii) within that county;
(ii) the acquisition of land for a center, clinic, or facility described in Subsection
(1)(b)(ii) within that county;
(iii) the design, construction, equipping, or furnishing of a center, clinic, or facility
described in Subsection (1)(b)(ii) within that county; or
(iv) rural emergency medical services within that county.
(4) (a) A tax under this section shall be:
(i) except as provided in Subsection (4)(b), administered, collected, and enforced in
accordance with:
(A) the same procedures used to administer, collect, and enforce the tax under:
(I) Part 1, Tax Collection; or
(II) Part 2, Local Sales and Use Tax Act; and
(B) Chapter 1, General Taxation Policies; and
(ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
period by the county legislative body as provided in Subsection (1).
(b) A tax under this section is not subject to Subsections 
59-12-205
(2) through (7).
(c) A county legislative body shall distribute money collected from a tax under this
section quarterly.
(5) The commission shall retain and deposit an administrative charge in accordance
with Section 
59-1-306
 from the revenue the commission collects from a tax under this section.
Section 17. Section 
59-12-804
 is amended to read:
59-12-804.
Imposition of rural city hospital tax -- Base -- Rate -- Administration,
collection, and enforcement of tax -- Administrative charge.
(1) (a) A city legislative body may impose a sales and use tax of up to 1%:
(i) on the transactions described in Subsection 
59-12-103
(1) located within the city;
and
(ii) to fund rural city hospitals in that city.
(b) Notwithstanding Subsection (1)(a)(i), a city legislative body may not impose a tax
under this section on:
(i) the sales and uses described in
:
(A)
 Section 
59-12-104
 to the extent the sales and uses are exempt from taxation under
Section 
59-12-104
; 
or
(B) Section 
59-12-104.8
 to the extent the sales and uses are exempt from taxation
under Section 
59-12-104.8
;
 and
(ii) except as provided in Subsection (1)(d), amounts paid or charged for food and food
ingredients.
(c) For purposes of this Subsection (1), the location of a transaction shall be
determined in accordance with Sections 
59-12-211
 through 
59-12-215
.
(d) A city legislative body imposing a tax under this section shall impose the tax on the
purchase price or sales price for amounts paid or charged for food and food ingredients if the
food and food ingredients are sold as part of a bundled transaction attributable to food and food
ingredients and tangible personal property other than food and food ingredients.
(2) (a) Before imposing a tax under Subsection (1)(a), a city legislative body shall
obtain approval to impose the tax from a majority of the:
(i) members of the city legislative body; and
(ii) city's registered voters voting on the imposition of the tax.
(b) The city legislative body shall conduct the election according to the procedures and
requirements of Title 11, Chapter 14, Local Government Bonding Act.
(3) The money collected from a tax imposed under Subsection (1) may only be used to
fund:
(a) ongoing operating expenses of a rural city hospital;
(b) the acquisition of land for a rural city hospital; or
(c) the design, construction, equipping, or furnishing of a rural city hospital.
(4) (a) A tax under this section shall be:
(i) except as provided in Subsection (4)(b), administered, collected, and enforced in
accordance with:
(A) the same procedures used to administer, collect, and enforce the tax under:
(I) Part 1, Tax Collection; or
(II) Part 2, Local Sales and Use Tax Act; and
(B) Chapter 1, General Taxation Policies; and
(ii) levied for a period of 10 years and may be reauthorized at the end of the ten-year
period by the city legislative body as provided in Subsection (1).
(b) A tax under this section is not subject to Subsections 
59-12-205
(2) through (7).
(5) The commission shall retain and deposit an administrative charge in accordance
with Section 
59-1-306
 from the revenue the commission collects from a tax under this section.
Section 18. Section 
59-12-1102
 is amended to read:
59-12-1102.
Base -- Rate -- Imposition of tax -- Distribution of revenue --
Administration -- Administrative charge -- Commission requirement to retain an amount
to be deposited into the Qualified Emergency Food Agencies Fund -- Enactment or repeal
of tax -- Effective date -- Notice requirements.
(1) (a) (i) Subject to Subsections (2) through (6), and in addition to any other tax
authorized by this chapter, a county may impose by ordinance a county option sales and use tax
of .25% upon the transactions described in Subsection 
59-12-103
(1).
(ii) Notwithstanding Subsection (1)(a)(i), a county may not impose a tax under this
section on the sales and uses described in
:
(A)
 Section 
59-12-104
 to the extent the sales and uses are exempt from taxation under
Section 
59-12-104
[
.
]
; or
(B) Section 
59-12-104.8
 to the extent the sales and uses are exempt from taxation
under Section 
59-12-104.8
.
(b) For purposes of this Subsection (1), the location of a transaction shall be
determined in accordance with Sections 
59-12-211
 through 
59-12-215
.
(c) The county option sales and use tax under this section shall be imposed:
(i) upon transactions that are located within the county, including transactions that are
located within municipalities in the county; and
(ii) except as provided in Subsection (1)(d) or (5), beginning on the first day of
January:
(A) of the next calendar year after adoption of the ordinance imposing the tax if the
ordinance is adopted on or before May 25; or
(B) of the second calendar year after adoption of the ordinance imposing the tax if the
ordinance is adopted after May 25.
(d) The county option sales and use tax under this section shall be imposed:
(i) beginning January 1, 1998, if an ordinance adopting the tax imposed on or before
September 4, 1997; or
(ii) beginning January 1, 1999, if an ordinance adopting the tax is imposed during 1997
but after September 4, 1997.
(2) (a) Before imposing a county option sales and use tax under Subsection (1), a
county shall hold two public hearings on separate days in geographically diverse locations in
the county.
(b) (i) At least one of the hearings required by Subsection (2)(a) shall have a starting
time of no earlier than 6 p.m.
(ii) The earlier of the hearings required by Subsection (2)(a) shall be no less than seven
days after the day the first advertisement required by Subsection (2)(c) is published.
(c) (i) Before holding the public hearings required by Subsection (2)(a), the county
shall advertise:
(A) its intent to adopt a county option sales and use tax;
(B) the date, time, and location of each public hearing; and
(C) a statement that the purpose of each public hearing is to obtain public comments
regarding the proposed tax.
(ii) The advertisement shall be published:
(A) in a newspaper of general circulation in the county once each week for the two
weeks preceding the earlier of the two public hearings; and
(B) on the Utah Public Notice Website created in Section 
63F-1-701
, for two weeks
preceding the earlier of the two public hearings.
(iii) The advertisement described in Subsection (2)(c)(ii)(A) shall be no less than 1/8
page in size, and the type used shall be no smaller than 18 point and surrounded by a 1/4-inch
border.
(iv) The advertisement described in Subsection (2)(c)(ii)(A) may not be placed in that
portion of the newspaper where legal notices and classified advertisements appear.
(v) In accordance with Subsection (2)(c)(ii)(A), whenever possible:
(A) the advertisement shall appear in a newspaper that is published at least five days a
week, unless the only newspaper in the county is published less than five days a week; and
(B) the newspaper selected shall be one of general interest and readership in the
community, and not one of limited subject matter.
(d) The adoption of an ordinance imposing a county option sales and use tax is subject
to a local referendum election and shall be conducted as provided in Title 20A, Chapter 7, Part
6, Local Referenda - Procedures.
(3) (a) Subject to Subsection (5), if the aggregate population of the counties imposing a
county option sales and use tax under Subsection (1) is less than 75% of the state population,
the tax levied under Subsection (1) shall be distributed to the county in which the tax was
collected.
(b) Subject to Subsection (5), if the aggregate population of the counties imposing a
county option sales and use tax under Subsection (1) is greater than or equal to 75% of the state
population:
(i) 50% of the tax collected under Subsection (1) in each county shall be distributed to
the county in which the tax was collected; and
(ii) except as provided in Subsection (3)(c), 50% of the tax collected under Subsection
(1) in each county shall be distributed proportionately among all counties imposing the tax,
based on the total population of each county.
(c) Except as provided in Subsection (5), the amount to be distributed annually to a
county under Subsection (3)(b)(ii), when combined with the amount distributed to the county
under Subsection (3)(b)(i), does not equal at least $75,000, then:
(i) the amount to be distributed annually to that county under Subsection (3)(b)(ii) shall
be increased so that, when combined with the amount distributed to the county under
Subsection (3)(b)(i), the amount distributed annually to the county is $75,000; and
(ii) the amount to be distributed annually to all other counties under Subsection
(3)(b)(ii) shall be reduced proportionately to offset the additional amount distributed under
Subsection (3)(c)(i).
(d) The commission shall establish rules to implement the distribution of the tax under
Subsections (3)(a), (b), and (c).
(4) (a) Except as provided in Subsection (4)(b) or (c), a tax authorized under this part
shall be administered, collected, and enforced in accordance with:
(i) the same procedures used to administer, collect, and enforce the tax under:
(A) Part 1, Tax Collection; or
(B) Part 2, Local Sales and Use Tax Act; and
(ii) Chapter 1, General Taxation Policies.
(b) A tax under this part is not subject to Subsections 
59-12-205
(2) through (7).
(c) (i) Subject to Subsection (4)(c)(ii), the commission shall retain and deposit an
administrative charge in accordance with Section 
59-1-306
 from the revenue the commission
collects from a tax under this part.
(ii) Notwithstanding Section 
59-1-306
, the administrative charge described in
Subsection (4)(c)(i) shall be calculated by taking a percentage described in Section 
59-1-306
 of
the distribution amounts resulting after:
(A) the applicable distribution calculations under Subsection (3) have been made; and
(B) the commission retains the amount required by Subsection (5).
(5) (a) Beginning on July 1, 2009, the commission shall calculate and retain a portion
of the sales and use tax collected under this part as provided in this Subsection (5).
(b) For a county that imposes a tax under this part, the commission shall calculate a
percentage each month by dividing the sales and use tax collected under this part for that
month within the boundaries of that county by the total sales and use tax collected under this
part for that month within the boundaries of all of the counties that impose a tax under this part.
(c) For a county that imposes a tax under this part, the commission shall retain each
month an amount equal to the product of:
(i) the percentage the commission determines for the month under Subsection (5)(b)
for the county; and
(ii) $6,354.
(d) The commission shall deposit an amount the commission retains in accordance
with this Subsection (5) into the Qualified Emergency Food Agencies Fund created by Section
35A-8-1009
.
(e) An amount the commission deposits into the Qualified Emergency Food Agencies
Fund shall be expended as provided in Section 
35A-8-1009
.
(6) (a) For purposes of this Subsection (6):
(i) "Annexation" means an annexation to a county under Title 17, Chapter 2, County
Consolidations and Annexations.
(ii) "Annexing area" means an area that is annexed into a county.
(b) (i) Except as provided in Subsection (6)(c) or (d), if, on or after July 1, 2004, a
county enacts or repeals a tax under this part:
(A) (I) the enactment shall take effect as provided in Subsection (1)(c); or
(II) the repeal shall take effect on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (6)(b)(ii) from the county.
(ii) The notice described in Subsection (6)(b)(i)(B) shall state:
(A) that the county will enact or repeal a tax under this part;
(B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and
(D) if the county enacts the tax described in Subsection (6)(b)(ii)(A), the rate of the
tax.
(c) (i) If the billing period for a transaction begins before the effective date of the
enactment of the tax under Subsection (1), the enactment of the tax takes effect on the first day
of the first billing period that begins on or after the effective date of the enactment of the tax.
(ii) The repeal of a tax applies to a billing period if the billing statement for the billing
period is produced on or after the effective date of the repeal of the tax imposed under
Subsection (1).
(d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
Subsection (6)(b)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment or repeal under
Subsection (6)(b)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "catalogue sale."
(e) (i) Except as provided in Subsection (6)(f) or (g), if, for an annexation that occurs
on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
part for an annexing area, the enactment or repeal shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (6)(e)(ii) from the county that annexes the annexing area.
(ii) The notice described in Subsection (6)(e)(i)(B) shall state:
(A) that the annexation described in Subsection (6)(e)(i) will result in an enactment or
repeal of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (6)(e)(ii)(A);
(C) the effective date of the tax described in Subsection (6)(e)(ii)(A); and
(D) the rate of the tax described in Subsection (6)(e)(ii)(A).
(f) (i) If the billing period for a transaction begins before the effective date of the
enactment of the tax under Subsection (1), the enactment of the tax takes effect on the first day
of the first billing period that begins on or after the effective date of the enactment of the tax.
(ii) The repeal of a tax applies to a billing period if the billing statement for the billing
period is produced on or after the effective date of the repeal of the tax imposed under
Subsection (1).
(g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
Subsection (6)(e)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment or repeal under
Subsection (6)(e)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "catalogue sale."
Section 19. Section 
59-12-1302
 is amended to read:
59-12-1302.
Imposition of tax -- Base -- Rate -- Enactment or repeal of tax -- Tax
rate change -- Effective date -- Notice requirements -- Administration, collection, and
enforcement of tax -- Administrative charge.
(1) Beginning on or after January 1, 1998, the governing body of a town may impose a
tax as provided in this part in an amount that does not exceed 1%.
(2) A town may impose a tax as provided in this part if the town imposed a license fee
or tax on businesses based on gross receipts under Section 
10-1-203
 on or before January 1,
1996.
(3) A town imposing a tax under this section shall:
(a) except as provided in Subsection (4), impose the tax on the transactions described
in Subsection 
59-12-103
(1) located within the town; and
(b) provide an effective date for the tax as provided in Subsection (5).
(4) (a) A town may not impose a tax under this section on:
(i) the sales and uses described in
:
(A)
 Section 
59-12-104
 to the extent the sales and uses are exempt from taxation under
Section 
59-12-104
; 
or
(B) Section 
59-12-104.8
 to the extent the sales and uses are exempt from taxation
under Section 
59-12-104.8
;
 and
(ii) except as provided in Subsection (4)(c), amounts paid or charged for food and food
ingredients.
(b) For purposes of this Subsection (4), the location of a transaction shall be
determined in accordance with Sections 
59-12-211
 through 
59-12-215
.
(c) A town imposing a tax under this section shall impose the tax on the purchase price
or sales price for amounts paid or charged for food and food ingredients if the food and food
ingredients are sold as part of a bundled transaction attributable to food and food ingredients
and tangible personal property other than food and food ingredients.
(5) (a) For purposes of this Subsection (5):
(i) "Annexation" means an annexation to a town under Title 10, Chapter 2, Part 4,
Annexation.
(ii) "Annexing area" means an area that is annexed into a town.
(b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a
town enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
or change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (5)(b)(ii) from the town.
(ii) The notice described in Subsection (5)(b)(i)(B) shall state:
(A) that the town will enact or repeal a tax or change the rate of a tax under this part;
(B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
(D) if the town enacts the tax or changes the rate of the tax described in Subsection
(5)(b)(ii)(A), the rate of the tax.
(c) (i) If the billing period for the transaction begins before the effective date of the
enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
the tax or the tax rate increase takes effect on the first day of the first billing period that begins
on or after the effective date of the enactment of the tax or the tax rate increase.
(ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
statement for the billing period is produced on or after the effective date of the repeal of the tax
or the tax rate decrease imposed under Subsection (1).
(d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
a tax described in Subsection (5)(b)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment, repeal, or change in the
rate of the tax under Subsection (5)(b)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "catalogue sale."
(e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (5)(e)(ii) from the town that annexes the annexing area.
(ii) The notice described in Subsection (5)(e)(i)(B) shall state:
(A) that the annexation described in Subsection (5)(e)(i) will result in an enactment,
repeal, or change in the rate of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
(C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
(D) if the town enacts the tax or changes the rate of the tax described in Subsection
(5)(e)(ii)(A), the rate of the tax.
(f) (i) If the billing period for a transaction begins before the effective date of the
enactment of the tax or the tax rate increase imposed under Subsection (1), the enactment of
the tax or the tax rate increase takes effect on the first day of the first billing period that begins
on or after the effective date of the enactment of the tax or the tax rate increase.
(ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
statement for the billing period is produced on or after the effective date of the repeal of the tax
or the tax rate decrease imposed under Subsection (1).
(g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
a tax described in Subsection (5)(e)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment, repeal, or change in the
rate of the tax under Subsection (5)(e)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "catalogue sale."
(6) The commission shall:
(a) distribute the revenue generated by the tax under this section to the town imposing
the tax; and
(b) except as provided in Subsection (8), administer, collect, and enforce the tax
authorized under this section in accordance with:
(i) the same procedures used to administer, collect, and enforce the tax under:
(A) Part 1, Tax Collection; or
(B) Part 2, Local Sales and Use Tax Act; and
(ii) Chapter 1, General Taxation Policies.
(7) The commission shall retain and deposit an administrative charge in accordance
with Section 
59-1-306
 from the revenue the commission collects from a tax under this part.
(8) A tax under this section is not subject to Subsections 
59-12-205
(2) through (7).
Section 20. Section 
59-12-1402
 is amended to read:
59-12-1402.
Opinion question election -- Base -- Rate -- Imposition of tax --
Expenditure of revenue -- Enactment or repeal of tax -- Effective date -- Notice
requirements.
(1) (a) Subject to the other provisions of this section, a city or town legislative body
subject to this part may submit an opinion question to the residents of that city or town, by
majority vote of all members of the legislative body, so that each resident of the city or town
has an opportunity to express the resident's opinion on the imposition of a local sales and use
tax of .1% on the transactions described in Subsection 
59-12-103
(1) located within the city or
town, to:
(i) fund cultural facilities, recreational facilities, and zoological facilities and botanical
organizations, cultural organizations, and zoological organizations in that city or town; or
(ii) provide funding for a botanical organization, cultural organization, or zoological
organization to pay for use of a bus or facility rental if that use of the bus or facility rental is in
furtherance of the botanical organization's, cultural organization's, or zoological organization's
primary purpose.
(b) The opinion question required by this section shall state:
"Shall (insert the name of the city or town), Utah, be authorized to impose a .1% sales
and use tax for (list the purposes for which the revenue collected from the sales and use tax
shall be expended)?"
(c) A city or town legislative body may not impose a tax under this section:
(i) if the county in which the city or town is located imposes a tax under Part 7, County
Option Funding for Botanical, Cultural, Recreational, and Zoological Organizations or
Facilities;
(ii) on the sales and uses described in
:
(A)
 Section 
59-12-104
 to the extent the sales and uses are exempt from taxation under
Section 
59-12-104
; 
or
(B) Section 
59-12-104.8
 to the extent the sales and uses are exempt from taxation
under Section 
59-12-104.8
;
 and
(iii) except as provided in Subsection (1)(e), on amounts paid or charged for food and
food ingredients.
(d) For purposes of this Subsection (1), the location of a transaction shall be
determined in accordance with Sections 
59-12-211
 through 
59-12-215
.
(e) A city or town legislative body imposing a tax under this section shall impose the
tax on the purchase price or sales price for amounts paid or charged for food and food
ingredients if the food and food ingredients are sold as part of a bundled transaction attributable
to food and food ingredients and tangible personal property other than food and food
ingredients.
(f) Except as provided in Subsection (6), the election shall be held at a regular general
election or a municipal general election, as those terms are defined in Section 
20A-1-102
, and
shall follow the procedures outlined in Title 11, Chapter 14, Local Government Bonding Act.
(2) If the city or town legislative body determines that a majority of the city's or town's
registered voters voting on the imposition of the tax have voted in favor of the imposition of
the tax as prescribed in Subsection (1), the city or town legislative body may impose the tax by
a majority vote of all members of the legislative body.
(3) Subject to Section 
59-12-1403
, revenue collected from a tax imposed under
Subsection (2) shall be expended:
(a) to finance cultural facilities, recreational facilities, and zoological facilities within
the city or town or within the geographic area of entities that are parties to an interlocal
agreement, to which the city or town is a party, providing for cultural facilities, recreational
facilities, or zoological facilities;
(b) to finance ongoing operating expenses of:
(i) recreational facilities described in Subsection (3)(a) within the city or town or
within the geographic area of entities that are parties to an interlocal agreement, to which the
city or town is a party, providing for recreational facilities; or
(ii) botanical organizations, cultural organizations, and zoological organizations within
the city or town or within the geographic area of entities that are parties to an interlocal
agreement, to which the city or town is a party, providing for the support of botanical
organizations, cultural organizations, or zoological organizations; and
(c) as stated in the opinion question described in Subsection (1).
(4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall
be:
(i) administered, collected, and enforced in accordance with:
(A) the same procedures used to administer, collect, and enforce the tax under:
(I) Part 1, Tax Collection; or
(II) Part 2, Local Sales and Use Tax Act; and
(B) Chapter 1, General Taxation Policies; and
(ii) (A) levied for a period of eight years; and
(B) may be reauthorized at the end of the eight-year period in accordance with this
section.
(b) (i) If a tax under this part is imposed for the first time on or after July 1, 2011, the
tax shall be levied for a period of 10 years.
(ii) If a tax under this part is reauthorized in accordance with Subsection (4)(a) on or
after July 1, 2011, the tax shall be reauthorized for a ten-year period.
(c) A tax under this section is not subject to Subsections 
59-12-205
(2) through (7).
(5) (a) For purposes of this Subsection (5):
(i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
4, Annexation.
(ii) "Annexing area" means an area that is annexed into a city or town.
(b) (i) Except as provided in Subsection (5)(c) or (d), if, on or after July 1, 2004, a city
or town enacts or repeals a tax under this part, the enactment or repeal shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (5)(b)(ii) from the city or town.
(ii) The notice described in Subsection (5)(b)(i)(B) shall state:
(A) that the city or town will enact or repeal a tax under this part;
(B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
(D) if the city or town enacts the tax described in Subsection (5)(b)(ii)(A), the rate of
the tax.
(c) (i) If the billing period for a transaction begins before the effective date of the
enactment of the tax under this section, the enactment of the tax takes effect on the first day of
the first billing period that begins on or after the effective date of the enactment of the tax.
(ii) The repeal of a tax applies to a billing period if the billing statement for the billing
period is produced on or after the effective date of the repeal of the tax imposed under this
section.
(d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
Subsection (5)(b)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment or repeal under
Subsection (5)(b)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "catalogue sale."
(e) (i) Except as provided in Subsection (5)(f) or (g), if, for an annexation that occurs
on or after July 1, 2004, the annexation will result in the enactment or repeal of a tax under this
part for an annexing area, the enactment or repeal shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (5)(e)(ii) from the city or town that annexes the annexing area.
(ii) The notice described in Subsection (5)(e)(i)(B) shall state:
(A) that the annexation described in Subsection (5)(e)(i) will result in an enactment or
repeal a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (5)(e)(ii)(A);
(C) the effective date of the tax described in Subsection (5)(e)(ii)(A); and
(D) the rate of the tax described in Subsection (5)(e)(ii)(A).
(f) (i) If the billing period for a transaction begins before the effective date of the
enactment of the tax under this section, the enactment of the tax takes effect on the first day of
the first billing period that begins on or after the effective date of the enactment of the tax.
(ii) The repeal of a tax applies to a billing period if the billing statement for the billing
period is produced on or after the effective date of the repeal of the tax imposed under this
section.
(g) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
sales and use tax rates published in the catalogue, an enactment or repeal of a tax described in
Subsection (5)(e)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment or repeal under
Subsection (5)(e)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "catalogue sale."
(6) (a) Before a city or town legislative body submits an opinion question to the
residents of the city or town under Subsection (1), the city or town legislative body shall:
(i) submit to the county legislative body in which the city or town is located a written
notice of the intent to submit the opinion question to the residents of the city or town; and
(ii) receive from the county legislative body:
(A) a written resolution passed by the county legislative body stating that the county
legislative body is not seeking to impose a tax under Part 7, County Option Funding for
Botanical, Cultural, Recreational, and Zoological Organizations or Facilities; or
(B) a written statement that in accordance with Subsection (6)(b) the results of a county
opinion question submitted to the residents of the county under Part 7, County Option Funding
for Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, permit the city
or town legislative body to submit the opinion question to the residents of the city or town in
accordance with this part.
(b) (i) Within 60 days after the day the county legislative body receives from a city or
town legislative body described in Subsection (6)(a) the notice of the intent to submit an
opinion question to the residents of the city or town, the county legislative body shall provide
the city or town legislative body:
(A) the written resolution described in Subsection (6)(a)(ii)(A); or
(B) written notice that the county legislative body will submit an opinion question to
the residents of the county under Part 7, County Option Funding for Botanical, Cultural,
Recreational, and Zoological Organizations or Facilities, for the county to impose a tax under
that part.
(ii) If the county legislative body provides the city or town legislative body the written
notice that the county legislative body will submit an opinion question as provided in
Subsection (6)(b)(i)(B), the county legislative body shall submit the opinion question by no
later than, from the date the county legislative body sends the written notice, the later of:
(A) a 12-month period;
(B) the next regular primary election; or
(C) the next regular general election.
(iii) Within 30 days of the date of the canvass of the election at which the opinion
question under Subsection (6)(b)(ii) is voted on, the county legislative body shall provide the
city or town legislative body described in Subsection (6)(a) written results of the opinion
question submitted by the county legislative body under Part 7, County Option Funding for
Botanical, Cultural, Recreational, and Zoological Organizations or Facilities, indicating that:
(A) (I) the city or town legislative body may not impose a tax under this part because a
majority of the county's registered voters voted in favor of the county imposing the tax and the
county legislative body by a majority vote approved the imposition of the tax; or
(II) for at least 12 months from the date the written results are submitted to the city or
town legislative body, the city or town legislative body may not submit to the county legislative
body a written notice of the intent to submit an opinion question under this part because a
majority of the county's registered voters voted against the county imposing the tax and the
majority of the registered voters who are residents of the city or town described in Subsection
(6)(a) voted against the imposition of the county tax; or
(B) the city or town legislative body may submit the opinion question to the residents
of the city or town in accordance with this part because although a majority of the county's
registered voters voted against the county imposing the tax, the majority of the registered voters
who are residents of the city or town voted for the imposition of the county tax.
(c) Notwithstanding Subsection (6)(b), at any time a county legislative body may
provide a city or town legislative body described in Subsection (6)(a) a written resolution
passed by the county legislative body stating that the county legislative body is not seeking to
impose a tax under Part 7, County Option Funding for Botanical, Cultural, Recreational, and
Zoological Organizations or Facilities, which permits the city or town legislative body to
submit under Subsection (1) an opinion question to the city's or town's residents.
Section 21. Section 
59-12-1802
 is amended to read:
59-12-1802.
State sales and use tax -- Base -- Rate -- Revenues deposited into
General Fund.
(1) If a county does not impose a tax under Part 11, County Option Sales and Use Tax,
a tax shall be imposed within the county under this section by the state:
(a) on the transactions described in Subsection 
59-12-103
(1);
(b) at a rate of .25%; and
(c) beginning on January 1, 2008, and ending on the day on which the county imposes
a tax under Part 11, County Option Sales and Use Tax.
(2) Notwithstanding Subsection (1), a tax under this section may not be imposed on the
sales and uses described in
:
(a)
 Section 
59-12-104
 to the extent the sales and uses are exempt from taxation under
Section 
59-12-104
[
.
]
; or
(b) Section 
59-12-104.8
 to the extent the sales and uses are exempt from taxation under
Section 
59-12-104.8
.
(3) For purposes of Subsection (1), the location of a transaction shall be determined in
accordance with Sections 
59-12-211
 through 
59-12-215
.
(4) Revenues collected from the sales and use tax imposed by this section, after
subtracting amounts a seller retains in accordance with Section 
59-12-108
, shall be deposited
into the General Fund.
Section 22. Section 
59-12-2003
 is amended to read:
59-12-2003.
Imposition -- Base -- Rate -- Revenue distributed to certain public
transit districts.
(1) Subject to the other provisions of this section and except as provided in Subsection
(2) or (4), beginning on July 1, 2008, the state shall impose a tax under this part on the
transactions described in Subsection 
59-12-103
(1) within a city, town, or the unincorporated
area of a county of the first or second class if, on January 1, 2008, there is a public transit
district within any portion of that county of the first or second class.
(2) The state may not impose a tax under this part within a county of the first or second
class if within all of the cities, towns, and the unincorporated area of the county of the first or
second class there is imposed a sales and use tax of:
(a) .30% under Section 
59-12-2213
;
(b) .30% under Section 
59-12-2215
; or
(c) .30% under Section 
59-12-2216
.
(3) (a) Subject to Subsection (3)(b), if the state imposes a tax under this part, the tax
rate imposed within a city, town, or the unincorporated area of a county of the first or second
class is a percentage equal to the difference between:
(i) .30%; and
(ii) (A) for a city within the county of the first or second class, the highest tax rate
imposed within that city under:
(I) Section 
59-12-2213
;
(II) Section 
59-12-2215
; or
(III) Section 
59-12-2216
;
(B) for a town within the county of the first or second class, the highest tax rate
imposed within that town under:
(I) Section 
59-12-2213
;
(II) Section 
59-12-2215
; or
(III) Section 
59-12-2216
; or
(C) for the unincorporated area of the county of the first or second class, the highest tax
rate imposed within that unincorporated area under:
(I) Section 
59-12-2213
;
(II) Section 
59-12-2215
; or
(III) Section 
59-12-2216
.
(b) For purposes of Subsection (3)(a), if for a city, town, or the unincorporated area of
a county of the first or second class, the highest tax rate imposed under Section 
59-12-2213
,
59-12-2215
, or 
59-12-2216
 within that city, town, or unincorporated area of the county of the
first or second class is .30%, the state may not impose a tax under this part within that city,
town, or unincorporated area.
(4) (a) The state may not impose a tax under this part on:
(i) 
(A)
 the sales and uses described in Section 
59-12-104
 to the extent the sales and
uses are exempt from taxation under Section 
59-12-104
; or
(B) the sales and uses described in Section 
59-12-104.8
 to the extent the sales and uses
are exempt from taxation under Section 
59-12-104.8
; or
(ii) except as provided in Subsection (4)(b), amounts paid or charged for food and food
ingredients.
(b) The state shall impose a tax under this part on the purchase price or sales price for
amounts paid or charged for food and food ingredients if the food and food ingredients are sold
as part of a bundled transaction attributable to food and ingredients and tangible personal
property other than food and food ingredients.
(5) For purposes of Subsection (1), the location of a transaction shall be determined in
accordance with Sections 
59-12-211
 through 
59-12-215
.
(6) The commission shall distribute the revenues the state collects from the sales and
use tax under this part, after subtracting amounts a seller retains in accordance with Section
59-12-108
, to the public transit districts within the cities, towns, and unincorporated areas:
(a) within which the state imposes a tax under this part; and
(b) in proportion to the revenues collected from the sales and use tax under this part
within each city, town, and unincorporated area within which the state imposes a tax under this
part.
Section 23. Section 
59-12-2103
 is amended to read:
59-12-2103.
Imposition of tax -- Base -- Rate -- Expenditure of revenue collected
from the tax -- Administration, collection, and enforcement of tax by commission --
Administrative charge -- Enactment or repeal of tax -- Annexation -- Notice.
(1) (a) Subject to the other provisions of this section and except as provided in
Subsection (2) or (3), beginning on January 1, 2009 and ending on June 30, 2016, if a city or
town receives a distribution for the 12 consecutive months of fiscal year 2005-06 because the
city or town would have received a tax revenue distribution of less than .75% of the taxable
sales within the boundaries of the city or town but for Subsection 
59-12-205
(4)(a), the city or
town legislative body may impose a sales and use tax of up to .20% on the transactions:
(i) described in Subsection 
59-12-103
(1); and
(ii) within the city or town.
(b) A city or town legislative body that imposes a tax under Subsection (1)(a) shall
expend the revenue collected from the tax for the same purposes for which the city or town
may expend the city's or town's general fund revenue.
(c) For purposes of this Subsection (1), the location of a transaction shall be
determined in accordance with Sections 
59-12-211
 through 
59-12-215
.
(2) (a) A city or town legislative body may not impose a tax under this section on:
(i) the sales and uses described in
:
(A)
 Section 
59-12-104
 to the extent the sales and uses are exempt from taxation under
Section 
59-12-104
; 
or
(B) Section 
59-12-104.8
 to the extent the sales and uses are exempt from taxation
under Section 
59-12-104.8
;
 and
(ii) except as provided in Subsection (2)(b), amounts paid or charged for food and food
ingredients.
(b) A city or town legislative body imposing a tax under this section shall impose the
tax on the purchase price or sales price for amounts paid or charged for food and food
ingredients if the food and food ingredients are sold as part of a bundled transaction attributable
to food and food ingredients and tangible personal property other than food and food
ingredients.
(3) (a) Beginning on January 1, 2009, and ending on June 30, 2016, to impose a tax
under this part, a city or town legislative body shall obtain approval from a majority of the
members of the city or town legislative body.
(b) If, on June 30, 2016, a city or town is not imposing a tax under this part, the city or
town legislative body may not impose a tax under this part beginning on or after July 1, 2016.
(c) (i) If, on June 30, 2016, a city or town imposes a tax under this part, the city or
town shall repeal the tax on July 1, 2016, unless, on or after July 1, 2012, but on or before
March 31, 2016, the city or town legislative body obtains approval from a majority vote of the
members of the city or town legislative body to continue to impose the tax.
(ii) If a city or town obtains approval under Subsection (3)(c)(i) from a majority vote of
the members of the city or town legislative body to continue to impose a tax under this part on
or after July 1, 2016, the city or town may impose the tax until no later than June 30, 2030.
(4) The commission shall transmit revenue collected within a city or town from a tax
under this part:
(a) to the city or town legislative body;
(b) monthly; and
(c) by electronic funds transfer.
(5) (a) Except as provided in Subsection (5)(b), the commission shall administer,
collect, and enforce a tax under this part in accordance with:
(i) the same procedures used to administer, collect, and enforce the tax under:
(A) Part 1, Tax Collection; or
(B) Part 2, Local Sales and Use Tax Act; and
(ii) Chapter 1, General Taxation Policies.
(b) A tax under this part is not subject to Subsections 
59-12-205
(2) through (7).
(6) The commission shall retain and deposit an administrative charge in accordance
with Section 
59-1-306
 from the revenue the commission collects from a tax under this part.
(7) (a) (i) Except as provided in Subsection (7)(b) or (c), if, on or after January 1, 2009,
a city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
repeal, or change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (7)(a)(i) from the city or town.
(ii) The notice described in Subsection (7)(a)(i)(B) shall state:
(A) that the city or town will enact or repeal a tax or change the rate of the tax under
this part;
(B) the statutory authority for the tax described in Subsection (7)(a)(ii)(A);
(C) the effective date of the tax described in Subsection (7)(a)(ii)(A); and
(D) if the city or town enacts the tax or changes the rate of the tax described in
Subsection (7)(a)(ii)(A), the rate of the tax.
(b) (i) If the billing period for a transaction begins before the enactment of the tax or
the tax rate increase under Subsection (1), the enactment of the tax or the tax rate increase takes
effect on the first day of the first billing period that begins on or after the effective date of the
enactment of the tax or the tax rate increase.
(ii) If the billing period for a transaction begins before the effective date of the repeal
of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
rate decrease applies to a billing period if the billing statement for the billing period is rendered
on or after the effective date of the repeal of the tax or the tax rate decrease.
(c) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
described in Subsection (7)(a)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment, repeal, or change in the
rate of the tax under Subsection (7)(a)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "catalogue sale."
(d) (i) Except as provided in Subsection (7)(e) or (f), if, for an annexation that occurs
on or after January 1, 2009, the annexation will result in the enactment, repeal, or change in the
rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (7)(d)(ii) from the city or town that annexes the annexing area.
(ii) The notice described in Subsection (7)(d)(i)(B) shall state:
(A) that the annexation described in Subsection (7)(d)(i)(B) will result in the
enactment, repeal, or change in the rate of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (7)(d)(ii)(A);
(C) the effective date of the tax described in Subsection (7)(d)(ii)(A); and
(D) if the city or town enacts the tax or changes the rate of the tax described in
Subsection (7)(d)(ii)(A), the rate of the tax.
(e) (i) If the billing period for a transaction begins before the effective date of the
enactment of the tax or a tax rate increase under Subsection (1), the enactment of a tax or a tax
rate increase takes effect on the first day of the first billing period that begins on or after the
effective date of the enactment of the tax or the tax rate increase.
(ii) If the billing period for a transaction begins before the effective date of the repeal
of the tax or the tax rate decrease imposed under Subsection (1), the repeal of the tax or the tax
rate decrease applies to a billing period if the billing statement for the billing period is rendered
on or after the effective date of the repeal of the tax or the tax rate decrease.
(f) (i) If a tax due under this part on a catalogue sale is computed on the basis of sales
and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of a tax
described in Subsection (7)(d)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the enactment, repeal, or change under
Subsection (7)(d)(i).
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "catalogue sale."
Section 24. Section 
59-12-2204
 is amended to read:
59-12-2204.
Transactions that may not be subject to taxation under this part --
Exception for food and food ingredients sold as part of a bundled transaction.
(1) A county, city, or town may not impose a sales and use tax under this part on:
(a) the sales and uses described in
:
(i)
 Section 
59-12-104
 to the extent the sales and uses are exempt from taxation under
Section 
59-12-104
; 
or
(ii) Section 
59-12-104.8
 to the extent the sales and uses are exempt from taxation
under Section 
59-12-104.8
;
 and
(b) except as provided in Subsection (2), amounts paid or charged for food and food
ingredients.
(2) A county, city, or town imposing a sales and use tax under this part shall impose
the sales and use tax on the purchase price or sales price for amounts paid or charged for food
and food ingredients if the food and food ingredients are sold as part of a bundled transaction
attributable to food and food ingredients and tangible personal property other than food and
food ingredients.
Section 25. Section 
63I-2-210
 is amended to read:
63I-2-210.
Repeal dates -- Title 10.
(1) If Subsection 
10-1-405
(1)(a)(ii)(A)(VI) is not in effect by December 31, 2028,
Subsection 
10-1-405
(1)(a)(ii)(A)(VI) is repealed on December 31, 2028.
[
(1)
] 
(2)
 On July 1, 2018, the following are repealed:
(a) in Subsection 
10-2-403
(5), the language that states "
10-2a-302
 or";
(b) in Subsection 
10-2-403
(5)(b), the language that states "
10-2a-302
 or";
(c) in Subsection 
10-2a-106
(2), the language that states "
10-2a-302
 or";
(d) Section 
10-2a-302
;
(e) Subsection 
10-2a-302.5
(2)(a);
(f) in Subsection 
10-2a-303
(1), the language that states "
10-2a-302
 or";
(g) in Subsection 
10-2a-303
(4), the language that states "
10-2a-302
(7)(b)(v) or" and
"
10-2a-302
(7)(b)(iv) or";
(h) in Subsection 
10-2a-304
(1)(a), the language that states "
10-2a-302
 or"; and
(i) in Subsection 
10-2a-304
(1)(a)(ii), the language that states "Subsection 
10-2a-302
(5)
or".
[
(2)
] 
(3)
 Subsection 
10-9a-304
(2) is repealed June 1, 2020.
[
(3)
] 
(4)
 When repealing Subsection 
10-9a-304
(2), the Office of Legislative Research
and General Counsel shall, in addition to the office's authority under Subsection 
36-12-12
(3),
make necessary changes to subsection numbering and cross references.
Section 26. Section 
63I-2-259
 is amended to read:
63I-2-259.
Repeal dates -- Title 59.
(1)
 Subsection 
59-2-1007
(14) is repealed on December 31, 2018.
(2) If Section 
59-12-104.8
 is not in effect by December 31, 2028, Subsection
59-12-103.1
(5) is repealed on December 31, 2028.
(3) If Subsection 
59-12-104.5
(2) is not in effect by December 31, 2028, Subsection
59-12-104.5
(2) is repealed on December 31, 2028.
(4) If Section 
59-12-104.8
 is not in effect by December 31, 2028, Section 
59-12-104.8
is repealed on December 31, 2028.
(5) If Subsection 
59-12-106
(3)(a)(ii)(B) is not in effect by December 31, 2028,
Subsection 
59-12-106
(3)(a)(ii)(B) is repealed on December 31, 2028.
(6) If Subsection 
59-12-107
(10)(a)(ii)(A)(III) is not in effect by December 31, 2028,
Subsection 
59-12-107
(10)(a)(ii)(A)(III) is repealed on December 31, 2028.
(7) If Subsection 
59-12-204
(2)(b)(ii) is not in effect by December 31, 2028, Subsection
59-12-204
(2)(b)(ii) is repealed on December 31, 2028.
(8) If Subsection 
59-12-204
(6)(b)(ii) is not in effect by December 31, 2028, Subsection
59-12-204
(6)(b)(ii) is repealed on December 31, 2028.
(9) If Subsection 
59-12-401
(1)(b)(ii)(B) is not in effect by December 31, 2028,
Subsection 
59-12-401
(1)(b)(ii)(B) is repealed on December 31, 2028.
(10) If Subsection 
59-12-402
(1)(b)(ii)(B) is not in effect by December 31, 2028,
Subsection 
59-12-402
(1)(b)(ii)(B) is repealed on December 31, 2028.
(11) If Subsection 
59-12-402.1
(5)(b)(ii) is not in effect by December 31, 2028,
Subsection 
59-12-402.1
(5)(b)(ii) is repealed on December 31, 2028.
(12) If Subsection 
59-12-703
(1)(c)(i)(B) is not in effect by December 31, 2028,
Subsection 
59-12-703
(1)(c)(i)(B) is repealed on December 31, 2028.
(13) If Subsection 
59-12-802
(1)(c)(i)(B) is not in effect by December 31, 2028,
Subsection 
59-12-802
(1)(c)(i)(B) is repealed on December 31, 2028.
(14) If Subsection 
59-12-804
(1)(b)(i)(B) is not in effect by December 31, 2028,
Subsection 
59-12-804
(1)(b)(i)(B) is repealed on December 31, 2028.
(15) If Subsection 
59-12-1102
(1)(a)(ii)(B) is not in effect by December 31, 2028,
Subsection 
59-12-1102
(1)(a)(ii)(B) is repealed on December 31, 2028.
(16) If Subsection 
59-12-1302
(4)(a)(i)(B) is not in effect by December 31, 2028,
Subsection 
59-12-1302
(4)(a)(i)(B) is repealed on December 31, 2028.
(17) If Subsection 
59-12-1402
(1)(c)(ii)(B) is not in effect by December 31, 2028,
Subsection 
59-12-1402
(1)(c)(ii)(B) is repealed on December 31, 2028.
(18) If Subsection 
59-12-1802
(2)(b) is not in effect by December 31, 2028, Subsection
59-12-1802
(2)(b) is repealed on December 31, 2028.
(19) If Subsection 
59-12-2003
(4)(a)(i)(B) is not in effect by December 31, 2028,
Subsection 
59-12-2003
(4)(a)(i)(B) is repealed on December 31, 2028.
(20) If Subsection 
59-12-2103
(2)(a)(i)(B) is not in effect by December 31, 2028,
Subsection 
59-12-2103
(2)(a)(i)(B) is repealed on December 31, 2028.
(21) If Subsection 
59-12-2204
(1)(a)(ii) is not in effect by December 31, 2028,
Subsection 
59-12-2204
(1)(a)(ii) is repealed on December 31, 2028.
Section 27. 
Repealer.
This bill repeals:
Section 
59-12-104.7
,
Reporting by purchaser of certain sales and use tax exempt
purchases.
Section 
63N-1-302
,
Reporting of certain sales and use tax exempt purchases.
Section 28. 
Contingent effective date and effective date.
(1) Except as provided in Subsection (2), this bill takes effect on the first day of the
calendar quarter after a 90-day period that begins on the day the legislative general counsel
notifies the Legislative Management Committee that the Division of Finance has provided the
notice required by Subsection 
59-12-103.1
(5).
(2) The amendments to Sections 
59-12-102
, 
59-12-103.1
, 
63I-2-210
, and 
63I-2-259
take effect on July 1, 2018.