Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 2001 (2019S2)

Sponsor

Sen. Hillyard, L.

Final action

Governor Signed 12/18/2019

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• decreases the corporate franchise and income tax rate and the individual income tax rate;
• amends the calculation of certain tax credits to match the applicable income tax rate;
• repeals certain transfers from the General Fund into the Education Fund;
• modifies the calculation of the Utah personal exemption for purposes of the taxpayer tax credit;
• enacts a nonrefundable tax credit for social security benefits that are included in the claimant's federal adjusted gross income;
• provides that an individual who claims the tax credit for social security benefits may not also claim the retirement tax credit on the same return;
• enacts a refundable grocery tax credit;
• enacts a refundable state earned income tax credit for certain individuals who are experiencing intergenerational poverty;
• provides for apportionment of the state earned income tax credit and the grocery tax credit;
• provides a taxpayer tax credit rebate;
• creates an additional grocery tax credit;
• increases the state sales and use tax rate on food and food ingredients;
• imposes state and local sales and use tax on amounts paid or charged for certain services;

Every vote on this bill

Bill text

Corrected Version
TAX RESTRUCTURING REVISIONS
SECOND SPECIAL SESSION
STATE OF UTAH
Chief Sponsor: Lyle W. Hillyard
House Sponsor: 
Francis D. Gibson
LONG TITLE
General Description:
This bill amends and enacts provisions related to state and local taxes and revenue.
Highlighted Provisions:
This bill:
▸ decreases the corporate franchise and income tax rate and the individual income tax
rate;
▸ amends the calculation of certain tax credits to match the applicable income tax
rate;
▸ repeals certain transfers from the General Fund into the Education Fund;
▸ modifies the calculation of the Utah personal exemption for purposes of the
taxpayer tax credit;
▸ enacts a nonrefundable tax credit for social security benefits that are included in the
claimant's federal adjusted gross income;
▸ provides that an individual who claims the tax credit for social security benefits may
not also claim the retirement tax credit on the same return;
▸ enacts a refundable grocery tax credit;
▸ enacts a refundable state earned income tax credit for certain individuals who are
experiencing intergenerational poverty;
▸ provides for apportionment of the state earned income tax credit and the grocery tax
credit;
▸ provides a taxpayer tax credit rebate;
▸ creates an additional grocery tax credit;
▸ increases the state sales and use tax rate on food and food ingredients;
▸ imposes state and local sales and use tax on amounts paid or charged for certain
services;
▸ modifies the sales and use tax dedications for the Transportation Investment Fund
of 2005;
▸ directs a portion of growth in the amount of revenue collected from the sales and
use tax on the sale of food and food ingredients be deposited into the Transit
Transportation Investment Fund;
▸ repeals certain sales and use tax exemptions;
▸ provides a sales and use tax exemption for certain transactions paid for through a
machine that only accepts cash;
▸ enacts a sales and use tax exemption for tangible personal property consumed in the
performance of certain taxable services;
▸ establishes a repeal date for the sales and use tax exemption for construction
materials used in the construction of a new or expanding life science research and
development facility;
▸ creates a sales and use tax exemption for menstrual products;
▸ enacts a sales tax on motor fuel and special fuel other than diesel and an additional
excise tax on diesel fuel;
▸ increases the state motor vehicle rental tax;
▸ provides a repeal date for the program that allows certain clean fuel vehicles to
travel in a high occupancy vehicle lane regardless of the number of occupants;
▸ directs the Utah Department of Transportation to implement one or more strategies
to manage congestion on state highways and to generate highway user fees;
▸ modifies the requirements of a certificate of emissions inspection;
▸ requires the Division of Motor Vehicles to share certain information from a
certificate of emissions inspection with the Utah Department of Transportation;
▸ requires certain legislative committees to consider annually a report from the Utah
Department of Transportation regarding the road usage charge program;
▸ requires the Utah Department of Transportation to notify certain legislative
committees when revenue from the road usage charge program equals or exceeds
specified amounts of revenue generated from the sales tax on motor fuel and special
fuel other than diesel;
▸ addresses the requirements for using a high occupancy toll lane;
▸ modifies the permissible uses for funds in the Tollway Special Revenue Fund;
▸ provides funding from the Transportation Investment Fund of 2005 for
improvement of class B roads located in certain counties of the fourth, fifth, and
sixth class; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
This bill appropriates in fiscal year 2020:
▸ To Department of Workforce Services -- Administration, as a one-time
appropriation:
• From General Fund, $500,000.
▸ To the General Fund, as a one-time appropriation:
• From the Education Fund Restricted -- Underage Drinking Prevention Program
Restricted Account, One-time, $1,750,000.
This bill appropriates in fiscal year 2021:
▸ To State Board of Education -- Child Nutrition, as an ongoing appropriation:
• From Education Fund, $55,500,000.
• From Dedicated Credits -- Liquor Tax, ($39,275,700).
▸ To State Board of Education -- State Administrative Office, as an ongoing
appropriation:
• From Education Fund, $2,850,000.
• From Education Fund Restricted -- Underage Drinking Prevention Program
Restricted Account, ($1,751,000).
▸ To University of Utah -- Education and General, as an ongoing appropriation:
• From General Fund, $101,608,900.
• From Education Fund, ($101,608,900).
▸ To University of Utah -- School of Medicine, as an ongoing appropriation:
• From General Fund, $35,899,500.
• From Education Fund, ($35,899,500).
▸ To University of Utah -- University Hospital, as an ongoing appropriation:
• From General Fund, $1,533,000.
• From Education Fund, ($1,533,000).
▸ To University of Utah -- School of Dentistry, as an ongoing appropriation:
• From General Fund, $2,324,700.
• From Education Fund, ($2,324,700).
▸ To Utah State University -- Education and General, as an ongoing appropriation:
• From General Fund, $73,521,400.
• From Education Fund, ($73,521,400).
▸ To Utah State University -- USU-Eastern Education and General, as an ongoing
appropriation:
• From General Fund, $12,503,400.
• From Education Fund, ($12,503,400).
▸ To Weber State University -- Education and General, as an ongoing appropriation:
• From General Fund, $94,098,000.
• From Education Fund, ($94,098,000).
▸ To Southern Utah University -- Education and General, as an ongoing
appropriation:
• From General Fund, $47,444,900.
• From Education Fund, ($47,444,900).
▸ To Utah Valley University -- Education and General, as an ongoing appropriation:
• From General Fund, $22,092,900.
• From Education Fund, ($22,092,900).
Other Special Clauses:
This bill provides a special effective date.
This bill provides contingent retrospective operation.
Utah Code Sections Affected:
AMENDS:
15A-1-204
, as last amended by Laws of Utah 2017, Chapter 18
26-36b-208
, as last amended by Laws of Utah 2019, Chapters 1 and 393
32B-2-301
, as last amended by Laws of Utah 2018, Chapter 329
32B-2-304
, as last amended by Laws of Utah 2019, Chapter 403
32B-2-305
, as last amended by Laws of Utah 2013, Chapter 400
35A-8-308
, as last amended by Laws of Utah 2017, Chapters 181 and 421
35A-8-309
, as last amended by Laws of Utah 2019, Chapter 493
41-6a-409
, as last amended by Laws of Utah 2017, Chapter 142
41-6a-505
, as last amended by Laws of Utah 2019, Chapter 136
41-6a-1406
, as last amended by Laws of Utah 2019, Chapter 373
41-6a-1642
, as last amended by Laws of Utah 2019, Chapter 140
41-12a-806
, as last amended by Laws of Utah 2019, Chapter 55
53B-8a-106
, as last amended by Laws of Utah 2015, Chapter 94
53G-10-406
, as last amended by Laws of Utah 2019, Chapter 293
59-1-1503
, as last amended by Laws of Utah 2012, Chapter 399
59-7-104
, as last amended by Laws of Utah 2019, Chapter 418
59-7-201
, as last amended by Laws of Utah 2018, Chapter 456
59-7-610
, as last amended by Laws of Utah 2019, Chapter 247
59-7-614.1
, as last amended by Laws of Utah 2016, Chapter 375
59-7-618
, as last amended by Laws of Utah 2017, Chapter 265
59-7-620
, as last amended by Laws of Utah 2017, Chapter 222
59-10-104
, as last amended by Laws of Utah 2018, Chapter 456
59-10-529.1
, as enacted by Laws of Utah 2015, Chapter 369
59-10-1005
, as last amended by Laws of Utah 2017, Chapter 148
59-10-1007
, as last amended by Laws of Utah 2019, Chapter 247
59-10-1017
, as last amended by Laws of Utah 2017, Chapter 389
59-10-1017.1
, as enacted by Laws of Utah 2017, Chapter 389
59-10-1018
, as last amended by Laws of Utah 2018, Second Special Session, Chapter 3
59-10-1019
, as renumbered and amended by Laws of Utah 2008, Chapter 389
59-10-1022
, as enacted by Laws of Utah 2008, Chapter 389
59-10-1023
, as enacted by Laws of Utah 2008, Chapter 389
59-10-1028
, as last amended by Laws of Utah 2012, Chapter 399
59-10-1033
, as last amended by Laws of Utah 2017, Chapter 265
59-10-1035
, as last amended by Laws of Utah 2017, Chapter 222
59-10-1036
, as enacted by Laws of Utah 2016, Chapter 55
59-10-1105
, as last amended by Laws of Utah 2016, Chapter 375
59-10-1403.3
, as enacted by Laws of Utah 2017, Chapter 270
59-12-102
, as last amended by Laws of Utah 2019, Chapters 325, 481, and 486
59-12-103
, as last amended by Laws of Utah 2019, Chapters 1, 136, and 479
59-12-104
, as last amended by Laws of Utah 2019, Chapters 136 and 486
59-12-104.5
, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
59-12-1201
, as last amended by Laws of Utah 2016, Chapters 184 and 291
59-13-202
, as last amended by Laws of Utah 2016, Third Special Session, Chapter 1
63I-2-253
, as last amended by Laws of Utah 2019, Chapters 41, 129, 136, 223, 324,
325, and 444
63I-2-259
, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
63I-2-272
, as last amended by Laws of Utah 2019, Chapters 136 and 246
63M-4-702
, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
72-1-201
, as last amended by Laws of Utah 2019, Chapter 431
72-1-213.1
, as enacted by Laws of Utah 2019, Chapter 479
72-2-120
, as last amended by Laws of Utah 2018, Chapter 269
72-2-124
, as last amended by Laws of Utah 2019, Chapters 327 and 479
72-6-118
, as last amended by Laws of Utah 2018, Chapter 269
72-9-603
, as last amended by Laws of Utah 2019, Chapter 373
ENACTS:
35A-9-214
, Utah Code Annotated 1953
59-10-1018.1
, Utah Code Annotated 1953
59-10-1041
, Utah Code Annotated 1953
59-10-1102.1
, Utah Code Annotated 1953
59-10-1113
, Utah Code Annotated 1953
59-10-1113.1
, Utah Code Annotated 1953
59-10-1114
, Utah Code Annotated 1953
59-13-323
, Utah Code Annotated 1953
59-13-601
, Utah Code Annotated 1953
63I-2-241
, Utah Code Annotated 1953
72-1-213.2
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
15A-1-204
 is amended to read:
15A-1-204.
Adoption of State Construction Code -- Amendments by commission
-- Approved codes -- Exemptions.
(1) (a) The State Construction Code is the construction codes adopted with any
modifications in accordance with this section that the state and each political subdivision of the
state shall follow.
(b) A person shall comply with the applicable provisions of the State Construction
Code when:
(i) new construction is involved; and
(ii) the owner of an existing building, or the owner's agent, is voluntarily engaged in:
(A) the repair, renovation, remodeling, alteration, enlargement, rehabilitation,
conservation, or reconstruction of the building; or
(B) changing the character or use of the building in a manner that increases the
occupancy loads, other demands, or safety risks of the building.
(c) On and after July 1, 2010, the State Construction Code is the State Construction
Code in effect on July 1, 2010, until in accordance with this section:
(i) a new State Construction Code is adopted; or
(ii) one or more provisions of the State Construction Code are amended or repealed in
accordance with this section.
(d) A provision of the State Construction Code may be applicable:
(i) to the entire state; or
(ii) within a county, city, or town.
(2) (a) The Legislature shall adopt a State Construction Code by enacting legislation
that adopts a nationally recognized construction code with any modifications.
(b) Legislation described in Subsection (2)(a) shall state that the legislation takes effect
on the July 1 after the day on which the legislation is enacted, unless otherwise stated in the
legislation.
(c) Subject to Subsection (6), a State Construction Code adopted by the Legislature is
the State Construction Code until, in accordance with this section, the Legislature adopts a new
State Construction Code by:
(i) adopting a new State Construction Code in its entirety; or
(ii) amending or repealing one or more provisions of the State Construction Code.
(3) (a) Except as provided in Subsection (3)(b), for each update of a nationally
recognized construction code, the commission shall prepare a report described in Subsection
(4).
(b) For the provisions of a nationally recognized construction code that apply only to
detached one- and two-family dwellings and townhouses not more than three stories above
grade plane in height with separate means of egress and their accessory structures, the
commission shall:
(i) prepare a report described in Subsection (4) in 2021 and, thereafter, for every
second update of the nationally recognized construction code; and
(ii) not prepare a report described in Subsection (4) in 2018.
(4) (a) In accordance with Subsection (3), on or before September 1 of the same year as
the year designated in the title of a nationally recognized construction code, the commission
shall prepare and submit, in accordance with Section 
68-3-14
, a written report to the Business
and Labor Interim Committee that:
(i) states whether the commission recommends the Legislature adopt the update with
any modifications; and
(ii) describes the costs and benefits of each recommended change in the update or in
any modification.
(b) After the Business and Labor Interim Committee receives the report described in
Subsection (4)(a), the Business and Labor Interim Committee shall:
(i) study the recommendations; and
(ii) if the Business and Labor Interim Committee decides to recommend legislative
action to the Legislature, prepare legislation for consideration by the Legislature in the next
general session.
(5) (a) (i) The commission shall, by no later than September 1 of each year in which
the commission is not required to submit a report described in Subsection (4), submit, in
accordance with Section 
68-3-14
, a written report to the Business and Labor Interim
Committee recommending whether the Legislature should amend or repeal one or more
provisions of the State Construction Code.
(ii) As part of a recommendation described in Subsection (5)(a)(i), the commission
shall describe the costs and benefits of each proposed amendment or repeal.
(b) The commission may recommend legislative action related to the State
Construction Code:
(i) on its own initiative;
(ii) upon the recommendation of the division; or
(iii) upon the receipt of a request by one of the following that the commission
recommend legislative action related to the State Construction Code:
(A) a local regulator;
(B) a state regulator;
(C) a state agency involved with the construction and design of a building;
(D) the Construction Services Commission;
(E) the Electrician Licensing Board;
(F) the Plumbers Licensing Board; or
(G) a recognized construction-related association.
(c) If the Business and Labor Interim Committee decides to recommend legislative
action to the Legislature, the Business and Labor Interim Committee shall prepare legislation
for consideration by the Legislature in the next general session.
(6) (a) Notwithstanding the provisions of this section, the commission may, in
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, amend the State
Construction Code if the commission determines that waiting for legislative action in the next
general legislative session would:
(i) cause an imminent peril to the public health, safety, or welfare; or
(ii) place a person in violation of federal or other state law.
(b) If the commission amends the State Construction Code in accordance with this
Subsection (6), the commission shall file with the division:
(i) the text of the amendment to the State Construction Code; and
(ii) an analysis that includes the specific reasons and justifications for the commission's
findings.
(c) If the State Construction Code is amended under this Subsection (6), the division
shall:
(i) publish the amendment to the State Construction Code in accordance with Section
15A-1-205
; and
(ii) prepare and submit, in accordance with Section 
68-3-14
, a written notice to the
Business and Labor Interim Committee containing the amendment to the State Construction
Code, including a copy of the commission's analysis described in Subsection (6)(b)(ii).
(d) If not formally adopted by the Legislature at the next annual general session, an
amendment to the State Construction Code under this Subsection (6) is repealed on the July 1
immediately following the next annual general session that follows the adoption of the
amendment.
(7) (a) The division, in consultation with the commission, may approve, without
adopting, one or more approved codes, including a specific edition of a construction code, for
use by a compliance agency.
(b) If the code adopted by a compliance agency is an approved code described in
Subsection (7)(a), the compliance agency may:
(i) adopt an ordinance requiring removal, demolition, or repair of a building;
(ii) adopt, by ordinance or rule, a dangerous building code; or
(iii) adopt, by ordinance or rule, a building rehabilitation code.
(8) Except as provided in Subsections (6), (7), (9), and (10), or as expressly provided in
state law, a state executive branch entity or political subdivision of the state may not, after
December 1, 2016, adopt or enforce a rule, ordinance, or requirement that applies to a subject
specifically addressed by, and that is more restrictive than, the State Construction Code.
(9) A state executive branch entity or political subdivision of the state may:
(a) enforce a federal law or regulation;
(b) adopt or enforce a rule, ordinance, or requirement if the rule, ordinance, or
requirement applies only to a facility or construction owned or used by a state entity or a
political subdivision of the state; or
(c) enforce a rule, ordinance, or requirement:
(i) that the state executive branch entity or political subdivision adopted or made
effective before July 1, 2015; and
(ii) for which the state executive branch entity or political subdivision can demonstrate,
with substantial evidence, that the rule, ordinance, or requirement is necessary to protect an
individual from a condition likely to cause imminent injury or death.
(10) The Department of Health or the Department of Environmental Quality may
enforce a rule or requirement adopted before January 1, 2015.
(11) (a) Except as provided in Subsection (11)(b), a structure used solely in
conjunction with agriculture use, and not for human occupancy, or a structure that is no more
than 1,500 square feet and used solely for the type of sales described in Subsection
59-12-104
[
(20)
]
(17)
, is exempt from the permit requirements of the State Construction Code.
(b) (i) Unless exempted by a provision other than Subsection (11)(a), a plumbing,
electrical, and mechanical permit may be required when that work is included in a structure
described in Subsection (11)(a).
(ii) Unless located in whole or in part in an agricultural protection area created under
Title 17, Chapter 41, Agriculture, Industrial, or Critical Infrastructure Materials Protection
Areas, a structure described in Subsection (11)(a) is not exempt from a permit requirement if
the structure is located on land that is:
(A) within the boundaries of a city or town, and less than five contiguous acres; or
(B) within a subdivision for which the county has approved a subdivision plat under
Title 17, Chapter 27a, Part 6, Subdivisions, and less than two contiguous acres.
Section 2. Section 
26-36b-208
 is amended to read:
26-36b-208.
Medicaid Expansion Fund.
(1) There is created an expendable special revenue fund known as the Medicaid
Expansion Fund.
(2) The fund consists of:
(a) assessments collected under this chapter;
(b) intergovernmental transfers under Section 
26-36b-206
;
(c) savings attributable to the health coverage improvement program as determined by
the department;
(d) savings attributable to the enhancement waiver program as determined by the
department;
(e) savings attributable to the Medicaid waiver expansion as determined by the
department;
(f) savings attributable to the inclusion of psychotropic drugs on the preferred drug list
under Subsection 
26-18-2.4
(3) as determined by the department;
(g) [
revenues
] 
revenue
 collected from the sales tax described in Subsection
59-12-103
[
(13)
]
(12)
;
(h) gifts, grants, donations, or any other conveyance of money that may be made to the
fund from private sources;
(i) interest earned on money in the fund; and
(j) additional amounts as appropriated by the Legislature.
(3) (a) The fund shall earn interest.
(b) All interest earned on fund money shall be deposited into the fund.
(4) (a) A state agency administering the provisions of this chapter may use money from
the fund to pay the costs, not otherwise paid for with federal funds or other revenue sources, of:
(i) the health coverage improvement program;
(ii) the enhancement waiver program;
(iii) a Medicaid waiver expansion; and
(iv) the outpatient upper payment limit supplemental payments under Section
26-36b-210
.
(b) A state agency administering the provisions of this chapter may not use:
(i) funds described in Subsection (2)(b) to pay the cost of private outpatient upper
payment limit supplemental payments; or
(ii) money in the fund for any purpose not described in Subsection (4)(a).
Section 3. Section 
32B-2-301
 is amended to read:
32B-2-301.
State property -- Liquor Control Fund -- Money to be retained by
department -- Department building process.
(1) The following are property of the state:
(a) the money received in the administration of this title, except as otherwise provided;
and
(b) property acquired, administered, possessed, or received by the department.
(2) (a) There is created an enterprise fund known as the "Liquor Control Fund."
(b) [
Except as provided in Section 
32B-2-304
, the
] 
The
 department shall deposit the
following into the Liquor Control Fund:
(i) money received in the administration of this title; and
(ii) money received from the markup described in Section 
32B-2-304
.
(c) The department may draw from the Liquor Control Fund only to the extent
appropriated by the Legislature or provided by statute.
(d) The net position of the Liquor Control Fund may not fall below zero.
(3) (a) Notwithstanding Subsection (2)(c), the department may draw by warrant from
the Liquor Control Fund without an appropriation for an expenditure that is directly incurred by
the department:
(i) to purchase an alcoholic product;
(ii) to transport an alcoholic product from the supplier to a warehouse of the
department; or
(iii) for variances related to an alcoholic product, including breakage or theft.
(b) If the balance of the Liquor Control Fund is not adequate to cover a warrant that the
department draws against the Liquor Control Fund, to the extent necessary to cover the
warrant, the cash resources of the General Fund may be used.
(4) (a) As used in this Subsection (4), "base budget" means the same as that term is
defined in legislative rule.
(b) The department's base budget shall include as an appropriation from the Liquor
Control Fund:
(i) credit card related fees paid by the department;
(ii) package agency compensation; and
(iii) the department's costs of shipping and warehousing alcoholic products.
(5) (a) The Division of Finance shall transfer annually from the Liquor Control Fund to
the General Fund a sum equal to the amount of net profit earned from the sale of liquor since
the preceding transfer of money under this Subsection (5).
(b) After each fiscal year, the Division of Finance shall calculate the amount for the
transfer on or before September 1 and the Division of Finance shall make the transfer on or
before September 30.
(c) The Division of Finance may make year-end closing entries in the Liquor Control
Fund to comply with Subsection 
51-5-6
(2).
(6) (a) By the end of each day, the department shall:
(i) make a deposit to a qualified depository, as defined in Section 
51-7-3
; and
(ii) report the deposit to the state treasurer.
(b) A commissioner or department employee is not personally liable for a loss caused
by the default or failure of a qualified depository.
(c) Money deposited in a qualified depository is entitled to the same priority of
payment as other public funds of the state.
(7) Before the Division of Finance makes the transfer described in Subsection (5), the
department may retain each fiscal year from the Liquor Control Fund $1,000,000 that the
department may use for:
(a) capital equipment purchases;
(b) salary increases for department employees;
(c) performance awards for department employees; or
(d) information technology enhancements because of changes or trends in technology.
Section 4. Section 
32B-2-304
 is amended to read:
32B-2-304.
Liquor price -- School lunch program -- Remittance of markup.
(1) For purposes of this section:
(a) (i) "Landed case cost" means:
(A) the cost of the product; and
(B) inbound shipping costs incurred by the department.
(ii) "Landed case cost" does not include the outbound shipping cost from a warehouse
of the department to a state store.
(b) "Proof gallon" means the same as that term is defined in 26 U.S.C. Sec. 5002.
(c) Notwithstanding Section 
32B-1-102
, "small brewer" means a brewer who
manufactures in a calendar year less than 40,000 barrels of beer, heavy beer, and flavored malt
beverage.
(2) Except as provided in Subsection (3):
(a) spirituous liquor sold by the department within the state shall be marked up in an
amount not less than 88% above the landed case cost to the department;
(b) wine sold by the department within the state shall be marked up in an amount not
less than 88% above the landed case cost to the department;
(c) heavy beer sold by the department within the state shall be marked up in an amount
not less than 66.5% above the landed case cost to the department; and
(d) a flavored malt beverage sold by the department within the state shall be marked up
in an amount not less than 88% above the landed case cost to the department.
(3) (a) Liquor sold by the department to a military installation in Utah shall be marked
up in an amount not less than 17% above the landed case cost to the department.
(b) Except for spirituous liquor sold by the department to a military installation in
Utah, spirituous liquor that is sold by the department within the state shall be marked up 49%
above the landed case cost to the department if:
(i) the spirituous liquor is manufactured by a manufacturer producing less than 30,000
proof gallons of spirituous liquor in a calendar year; and
(ii) the manufacturer applies to the department for a reduced markup.
(c) Except for wine sold by the department to a military installation in Utah, wine that
is sold by the department within the state shall be marked up 49% above the landed case cost to
the department if:
(i) (A) except as provided in Subsection (3)(c)(i)(B), the wine is manufactured by a
manufacturer producing less than 20,000 gallons of wine in a calendar year; or
(B) for hard cider, the hard cider is manufactured by a manufacturer producing less
than 620,000 gallons of hard cider in a calendar year; and
(ii) the manufacturer applies to the department for a reduced markup.
(d) Except for heavy beer sold by the department to a military installation in Utah,
heavy beer that is sold by the department within the state shall be marked up 32% above the
landed case cost to the department if:
(i) a small brewer manufactures the heavy beer; and
(ii) the small brewer applies to the department for a reduced markup.
(e) The department shall verify an amount described in Subsection (3)(b), (c), or (d)
pursuant to a federal or other verifiable production report.
(f) For purposes of determining whether an alcoholic product qualifies for a markup
under this Subsection (3), the department shall evaluate whether the manufacturer satisfies the
applicable production requirement without considering the manufacturer's production of any
other type of alcoholic product.
[
(4) The department shall deposit 10% of the total gross revenue from sales of liquor
with the state treasurer to be credited to the Uniform School Fund and used to support the
school lunch program administered by the State Board of Education under Section 
53E-3-510
.
]
[
(5)
] 
(4)
 This section does not prohibit the department from selling discontinued items
at a discount.
Section 5. Section 
32B-2-305
 is amended to read:
32B-2-305.
Alcoholic Beverage Control Act Enforcement Fund.
(1) As used in this section:
(a) "Alcohol-related law enforcement officer" is as defined in Section 
32B-1-201
.
(b) "Enforcement ratio" is as defined in Section 
32B-1-201
.
(c) "Fund" means the Alcoholic Beverage Control Act Enforcement Fund created in
this section.
(2) There is created an expendable special revenue fund known as the "Alcoholic
Beverage Control Act Enforcement Fund."
(3) (a) The fund consists of:
(i) deposits made under Subsection (4); and
(ii) interest earned on the fund.
(b) The fund shall earn interest. Interest on the fund shall be deposited into the fund.
(4) [
After the deposit made under Section 
32B-2-304
 for the school lunch program,
the
] 
The
 department shall deposit 1% of the total gross revenue from the sale of liquor with the
state treasurer to be credited to the fund to be used by the Department of Public Safety as
provided in Subsection (5).
(5) (a) The Department of Public Safety shall expend money from the fund to
supplement appropriations by the Legislature so that the Department of Public Safety maintains
a sufficient number of alcohol-related law enforcement officers such that beginning on July 1,
2012, each year the enforcement ratio as of July 1 is equal to or less than the number specified
in Section 
32B-1-201
.
(b) Beginning July 1, 2012, four alcohol-related law enforcement officers shall have as
a primary focus the enforcement of this title in relationship to restaurants.
Section 6. Section 
35A-8-308
 is amended to read:
35A-8-308.
Throughput Infrastructure Fund.
(1) There is created an enterprise fund known as the Throughput Infrastructure Fund.
(2) The fund consists of money generated from the following revenue sources:
(a) all amounts transferred to the fund [
under Subsection 
59-12-103
(12)
] 
by statute
;
(b) any voluntary contributions received;
(c) appropriations made to the fund by the Legislature; and
(d) all amounts received from the repayment of loans made by the impact board under
Section 
35A-8-309
.
(3) The state treasurer shall:
(a) invest the money in the fund by following the procedures and requirements of Title
51, Chapter 7, State Money Management Act; and
(b) deposit all interest or other earnings derived from those investments into the fund.
Section 7. Section 
35A-8-309
 is amended to read:
35A-8-309.
Throughput Infrastructure Fund administered by impact board --
Uses -- Review by board -- Annual report -- First project.
(1) The impact board shall:
(a) make grants and loans from the Throughput Infrastructure Fund created in Section
35A-8-308
 for a throughput infrastructure project;
(b) use money transferred to the Throughput Infrastructure Fund [
in accordance with
Subsection 
59-12-103
(12)
] 
by statute
 to provide a loan or grant to finance the cost of
acquisition or construction of a throughput infrastructure project to one or more local political
subdivisions, including a Utah interlocal agency created under Title 11, Chapter 13, Interlocal
Cooperation Act;
(c) administer the Throughput Infrastructure Fund in a manner that will keep a portion
of the fund revolving;
(d) determine provisions for repayment of loans;
(e) establish criteria for awarding loans and grants; and
(f) establish criteria for determining eligibility for assistance under this section.
(2) The cost of acquisition or construction of a throughput infrastructure project
includes amounts for working capital, reserves, transaction costs, and other amounts
determined by the impact board to be allocable to a throughput infrastructure project.
(3) The impact board may restructure or forgive all or part of a local political
subdivision's or interlocal agency's obligation to repay loans for extenuating circumstances.
(4) To receive assistance under this section, a local political subdivision or an
interlocal agency shall submit a formal application containing the information that the impact
board requires.
(5) (a) The impact board shall:
(i) review the proposed uses of the Throughput Infrastructure Fund for a loan or grant
before approving the loan or grant and may condition its approval on whatever assurances the
impact board considers necessary to ensure that proceeds of the loan or grant will be used in
accordance with this section;
(ii) ensure that each loan specifies terms for interest deferments, accruals, and
scheduled principal repayment; and
(iii) ensure that repayment terms are evidenced by bonds, notes, or other obligations of
the appropriate local political subdivision or interlocal agency issued to the impact board and
payable from the net revenues of a throughput infrastructure project.
(b) An instrument described in Subsection (5)(a)(iii) may be:
(i) non-recourse to the local political subdivision or interlocal agency; and
(ii) limited to a pledge of the net revenues from a throughput infrastructure project.
(6) (a) Subject to the restriction in Subsection (6)(b), the impact board shall allocate
from the Throughput Infrastructure Fund to the board those amounts that are appropriated by
the Legislature for the administration of the Throughput Infrastructure Fund.
(b) The amount described in Subsection (6)(a) may not exceed 2% of the annual
receipts to the fund.
(7) The board shall include in the annual written report described in Section
35A-1-109
:
(a) the number and type of loans and grants made under this section; and
(b) a list of local political subdivisions or interlocal agencies that received assistance
under this section.
(8) (a) The first throughput infrastructure project considered by the impact board shall
be a bulk commodities ocean terminal project.
(b) Upon receipt of an application from an interlocal agency created for the sole
purpose of undertaking a throughput infrastructure project that is a bulk commodities ocean
terminal project, the impact board shall:
(i) grant up to 2% of the money in the Throughput Infrastructure Fund to the interlocal
agency to pay or reimburse costs incurred by the interlocal agency preliminary to its acquisition
of the throughput infrastructure project; and
(ii) fund the interlocal agency's application if the application meets all criteria
established by the impact board.
Section 8. Section 
35A-9-214
 is enacted to read:
 35A-9-214.
Intergenerational poverty report to State Tax Commission.
(1) As used in this section, "commission" means the State Tax Commission.
(2) On or before January 31 of each year, the department shall provide a notice to each
individual the department identifies as experiencing intergenerational poverty that:
(a) informs the individual of the tax credit available under Section 
59-10-1114
; and
(b) explains the eligibility requirements and process for claiming a tax credit under
Section 
59-10-1114
.
(3) For purposes of Subsection (2), an individual is experiencing intergenerational
poverty if:
(a) the individual received public assistance during the previous calendar year;
(b) the individual received public assistance for 12 months or more since the individual
reached 18 years of age; and
(c) the individual or the individual's family received public assistance for 12 months or
more before the individual reached 18 years of age.
(4) (a) On or before March 1 of each year, the department shall, in accordance with
applicable federal law, provide the commission an electronic report that states, for each
individual to whom the department provided notice in accordance with this section during the
preceding year:
(i) the individual's name; and
(ii) the individual's social security number.
(b) The department and the commission shall ensure that the information contained in
each electronic report is secure and confidential.
Section 9. Section 
41-6a-409
 is amended to read:
41-6a-409.
Prohibition of flat response fee for motor vehicle accident.
(1) As used in this section, "government entity" means the Department of
Transportation, the Utah Highway Patrol Division, or a local government entity or agency.
(2) A government entity:
(a) may not impose a flat fee, or collect a flat fee, from an individual involved in a
motor vehicle accident; and
(b) may only charge the individual for the actual cost or a reasonable estimate of the
cost of services provided in responding to the motor vehicle accident, limited to:
(i) medical costs for transporting an individual from the scene of a motor vehicle
accident or treating a person injured in a motor vehicle accident;
(ii) the cost for repair to damaged public property, if the individual is legally liable for
the damage;
(iii) the cost of materials used in cleaning up the motor vehicle accident, if the
individual is legally liable for the motor vehicle accident; [
and
]
(iv) towing costs[
.
]
; and
(v) applicable sales and use taxes.
(3) If a government entity imposes a charge on more than one individual for the actual
cost or a reasonable estimate of the cost of responding to a motor vehicle accident, the
government entity shall apportion the charges so that the government entity does not receive
more for responding to the motor vehicle accident than the actual response cost or a reasonable
estimate of the cost.
(4) Nothing in this section prohibits a government entity from contracting with an
independent contractor to recover costs related to damage to public property.
(5) If a government entity enters into a contract with an independent contractor to
recover costs related to damage to public property, the government entity may only pay the
independent contractor out of any recovery received from the person who caused the damage or
the responsible party.
Section 10. Section 
41-6a-505
 is amended to read:
41-6a-505.
Sentencing requirements for driving under the influence of alcohol,
drugs, or a combination of both violations.
(1) As part of any sentence for a first conviction of Section 
41-6a-502
:
(a) the court shall:
(i) (A) impose a jail sentence of not less than 48 consecutive hours; or
(B) require the individual to work in a compensatory-service work program for not less
than 48 hours;
(ii) order the individual to participate in a screening;
(iii) order the individual to participate in an assessment, if it is found appropriate by a
screening under Subsection (1)(a)(ii);
(iv) order the individual to participate in an educational series if the court does not
order substance abuse treatment as described under Subsection (1)(b);
(v) impose a fine of not less than $700;
(vi) order probation for the individual in accordance with Section 
41-6a-507
, if there is
admissible evidence that the individual had a blood alcohol level of .16 or higher;
(vii) (A) order the individual to pay the administrative impound fee described in
Section 
41-6a-1406
; or
(B) if the administrative impound fee was paid by a party described in Subsection
41-6a-1406
(5)(a), other than the individual sentenced, order the individual sentenced to
reimburse the party; or
(viii) (A) order the individual to pay the towing and storage fees described in Section
72-9-603
and the applicable sales and use tax
; or
(B) if the [
towing and storage fees
] 
amounts described in Subsection (1)(a)(viii)(A)
were paid by a party described in Subsection 
41-6a-1406
(5)(a), other than the individual
sentenced, order the individual sentenced to reimburse the party; and
(b) the court may:
(i) order the individual to obtain substance abuse treatment if the substance abuse
treatment program determines that substance abuse treatment is appropriate;
(ii) order probation for the individual in accordance with Section 
41-6a-507
;
(iii) order the individual to participate in a 24-7 sobriety program as defined in Section
41-6a-515.5
 if the individual is 21 years of age or older; or
(iv) order a combination of Subsections (1)(b)(i) through (iii).
(2) If an individual has a prior conviction as defined in Subsection 
41-6a-501
(2) that is
within 10 years of the current conviction under Section 
41-6a-502
 or the commission of the
offense upon which the current conviction is based:
(a) the court shall:
(i) (A) impose a jail sentence of not less than 240 hours; or
(B) impose a jail sentence of not less than 120 hours in addition to home confinement
of not fewer than 720 consecutive hours through the use of electronic monitoring that includes
a substance abuse testing instrument in accordance with Section 
41-6a-506
;
(ii) order the individual to participate in a screening;
(iii) order the individual to participate in an assessment, if it is found appropriate by a
screening under Subsection (2)(a)(ii);
(iv) order the individual to participate in an educational series if the court does not
order substance abuse treatment as described under Subsection (2)(b);
(v) impose a fine of not less than $800;
(vi) order probation for the individual in accordance with Section 
41-6a-507
;
(vii) (A) order the individual to pay the administrative impound fee described in
Section 
41-6a-1406
; or
(B) if the administrative impound fee was paid by a party described in Subsection
41-6a-1406
(5)(a), other than the individual sentenced, order the individual sentenced to
reimburse the party; or
(viii) (A) order the individual to pay the towing and storage fees described in Section
72-9-603
; or
(B) if the [
towing and storage fees
] 
amounts described in Subsection (2)(a)(viii)(A)
were paid by a party described in Subsection 
41-6a-1406
(5)(a), other than the individual
sentenced, order the individual sentenced to reimburse the party; and
(b) the court may:
(i) order the individual to obtain substance abuse treatment if the substance abuse
treatment program determines that substance abuse treatment is appropriate;
(ii) order the individual to participate in a 24-7 sobriety program as defined in Section
41-6a-515.5
 if the individual is 21 years of age or older; or
(iii) order a combination of Subsections (2)(b)(i) and (ii).
(3) Under Subsection 
41-6a-503
(2), if the court suspends the execution of a prison
sentence and places the defendant on probation, the court shall impose:
(a) a fine of not less than $1,500;
(b) a jail sentence of not less than 1,500 hours; and
(c) supervised probation.
(4) For Subsection (3) or Subsection 
41-6a-503
(2)(b), the court:
(a) shall impose an order requiring the individual to obtain a screening and assessment
for alcohol and substance abuse, and treatment as appropriate; and
(b) may impose an order requiring the individual to participate in a 24-7 sobriety
program as defined in Section 
41-6a-515.5
 if the individual is 21 years of age or older.
(5) The requirements of Subsections (1)(a), (2)(a), (3), and (4) may not be suspended.
(6) If an individual is convicted of a violation of Section 
41-6a-502
 and there is
admissible evidence that the individual had a blood alcohol level of .16 or higher, the court
shall order the following, or describe on record why the order or orders are not appropriate:
(a) treatment as described under Subsection (1)(b), (2)(b), or (4); and
(b) one or more of the following:
(i) the installation of an ignition interlock system as a condition of probation for the
individual in accordance with Section 
41-6a-518
;
(ii) the imposition of an ankle attached continuous transdermal alcohol monitoring
device as a condition of probation for the individual; or
(iii) the imposition of home confinement through the use of electronic monitoring in
accordance with Section 
41-6a-506
.
Section 11. Section 
41-6a-1406
 is amended to read:
41-6a-1406.
Removal and impoundment of vehicles -- Reporting and notification
requirements -- Administrative impound fee -- Refunds -- Possessory lien -- Rulemaking.
(1) If a vehicle, vessel, or outboard motor is removed or impounded as provided under
Section 
41-1a-1101
, 
41-6a-527
, 
41-6a-1405
, 
41-6a-1408
, or 
73-18-20.1
 by an order of a peace
officer or by an order of a person acting on behalf of a law enforcement agency or highway
authority, the removal or impoundment of the vehicle, vessel, or outboard motor shall be at the
expense of the owner.
(2) The vehicle, vessel, or outboard motor under Subsection (1) shall be removed or
impounded to a state impound yard.
(3) The peace officer may move a vehicle, vessel, or outboard motor or cause it to be
removed by a tow truck motor carrier that meets standards established:
(a) under Title 72, Chapter 9, Motor Carrier Safety Act; and
(b) by the department under Subsection (10).
(4) (a) Immediately after the removal of the vehicle, vessel, or outboard motor, a report
of the removal shall be sent to the Motor Vehicle Division by:
(i) the peace officer or agency by whom the peace officer is employed; and
(ii) the tow truck operator or the tow truck motor carrier by whom the tow truck
operator is employed.
(b) The report shall be in a form specified by the Motor Vehicle Division and shall
include:
(i) the operator's name, if known;
(ii) a description of the vehicle, vessel, or outboard motor;
(iii) the vehicle identification number or vessel or outboard motor identification
number;
(iv) the license number, temporary permit number, or other identification number
issued by a state agency;
(v) the date, time, and place of impoundment;
(vi) the reason for removal or impoundment;
(vii) the name of the tow truck motor carrier who removed the vehicle, vessel, or
outboard motor; and
(viii) the place where the vehicle, vessel, or outboard motor is stored.
(c) Until the tow truck operator or tow truck motor carrier reports the removal as
required under this Subsection (4), a tow truck motor carrier or impound yard may not:
(i) collect any fee associated with the removal; and
(ii) begin charging storage fees.
(5) (a) Except as provided in Subsection (5)(e) and upon receipt of the report, the
Motor Vehicle Division shall give notice, in the manner described in Section 
41-1a-114
, to the
following parties with an interest in the vehicle, vessel, or outboard motor, as applicable:
(i) the registered owner;
(ii) any lien holder; or
(iii) a dealer, as defined in Section 
41-1a-102
, if the vehicle, vessel, or outboard motor
is currently operating under a temporary permit issued by the dealer, as described in Section
41-3-302
.
(b) The notice shall:
(i) state the date, time, and place of removal, the name, if applicable, of the person
operating the vehicle, vessel, or outboard motor at the time of removal, the reason for removal,
and the place where the vehicle, vessel, or outboard motor is stored;
(ii) state that the registered owner is responsible for payment of
:
(A)
 towing, impound, and storage fees charged against the vehicle, vessel, or outboard
motor; 
and
(B) the applicable sales and use tax;
(iii) state the conditions that must be satisfied before the vehicle, vessel, or outboard
motor is released; and
(iv) inform the parties described in Subsection (5)(a) of the division's intent to sell the
vehicle, vessel, or outboard motor, if, within 30 days after the day of the removal or
impoundment under this section, one of the parties fails to make a claim for release of the
vehicle, vessel, or outboard motor.
(c) Except as provided in Subsection (5)(e) and if the vehicle, vessel, or outboard
motor is not registered in this state, the Motor Vehicle Division shall make a reasonable effort
to notify the parties described in Subsection (5)(a) of the removal and the place where the
vehicle, vessel, or outboard motor is stored.
(d) The Motor Vehicle Division shall forward a copy of the notice to the place where
the vehicle, vessel, or outboard motor is stored.
(e) The Motor Vehicle Division is not required to give notice under this Subsection (5)
if a report was received by a tow truck operator or tow truck motor carrier reporting a tow truck
service in accordance with Subsection 
72-9-603
(1)(a)(i).
(6) (a) The vehicle, vessel, or outboard motor shall be released after a party described
in Subsection (5)(a):
(i) makes a claim for release of the vehicle, vessel, or outboard motor at any office of
the State Tax Commission;
(ii) presents identification sufficient to prove ownership of the impounded vehicle,
vessel, or outboard motor;
(iii) completes the registration, if needed, and pays the appropriate fees;
(iv) if the impoundment was made under Section 
41-6a-527
, pays an administrative
impound fee of $400; and
(v) pays all towing and storage fees 
and applicable sales and use tax
 to the place where
the vehicle, vessel, or outboard motor is stored.
(b) (i) Twenty-nine dollars of the administrative impound fee assessed under
Subsection (6)(a)(iv) shall be dedicated credits to the Motor Vehicle Division;
(ii) $147 of the administrative impound fee assessed under Subsection (6)(a)(iv) shall
be deposited in the Department of Public Safety Restricted Account created in Section
53-3-106
;
(iii) $20 of the administrative impound fee assessed under Subsection (6)(a)(iv) shall
be deposited in the Spinal Cord and Brain Injury Rehabilitation Fund; and
(iv) the remainder of the administrative impound fee assessed under Subsection
(6)(a)(iv) shall be deposited in the General Fund.
(c) The administrative impound fee assessed under Subsection (6)(a)(iv) shall be
waived or refunded by the State Tax Commission if the registered owner, lien holder, or
owner's agent presents written evidence to the State Tax Commission that:
(i) the Driver License Division determined that the arrested person's driver license
should not be suspended or revoked under Section 
53-3-223
 or 
41-6a-521
 as shown by a letter
or other report from the Driver License Division presented within 180 days after the day on
which the Driver License Division mailed the final notification; or
(ii) the vehicle was stolen at the time of the impoundment as shown by a copy of the
stolen vehicle report presented within 180 days after the day of the impoundment.
(d) A tow truck operator, a tow truck motor carrier, and an impound yard shall accept
payment by cash and debit or credit card for a removal or impoundment under Subsection (1)
or any service rendered, performed, or supplied in connection with a removal or impoundment
under Subsection (1).
(e) The owner of an impounded vehicle may not be charged a fee for the storage of the
impounded vehicle, vessel, or outboard motor if:
(i) the vehicle, vessel, or outboard motor is being held as evidence; and
(ii) the vehicle, vessel, or outboard motor is not being released to a party described in
Subsection [
] 
(5)
(a), even if the party satisfies the requirements to release the vehicle, vessel,
or outboard motor under this Subsection (6).
(7) (a) An impounded vehicle, vessel, or outboard motor not claimed by a party
described in Subsection (5)(a) within the time prescribed by Section 
41-1a-1103
 shall be sold
in accordance with that section and the proceeds, if any, shall be disposed of as provided under
Section 
41-1a-1104
.
(b) The date of impoundment is considered the date of seizure for computing the time
period provided under Section 
41-1a-1103
.
(8) A party described in Subsection (5)(a) that pays all fees [
and
]
,
 charges
, and taxes
incurred in the impoundment of the owner's vehicle, vessel, or outboard motor has a cause of
action for all the fees and charges, together with damages, court costs, and attorney fees,
against the operator of the vehicle, vessel, or outboard motor whose actions caused the removal
or impoundment.
(9) Towing, impound fees, and storage fees are a possessory lien on the vehicle, vessel,
or outboard motor.
(10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the department shall make rules setting the performance standards for towing companies to be
used by the department.
(11) (a) The Motor Vehicle Division may specify that a report required under
Subsection (4) be submitted in electronic form utilizing a database for submission, storage, and
retrieval of the information.
(b) (i) Unless otherwise provided by statute, the Motor Vehicle Division or the
administrator of the database may adopt a schedule of fees assessed for utilizing the database.
(ii) The fees under this Subsection (11)(b) shall:
(A) be reasonable and fair; and
(B) reflect the cost of administering the database.
Section 12. Section 
41-6a-1642
 is amended to read:
41-6a-1642.
Emissions inspection -- County program.
(1) The legislative body of each county required under federal law to utilize a motor
vehicle emissions inspection and maintenance program or in which an emissions inspection
and maintenance program is necessary to attain or maintain any national ambient air quality
standard shall require:
(a) a certificate of emissions inspection, a waiver, or other evidence the motor vehicle
is exempt from emissions inspection and maintenance program requirements be presented:
(i) as a condition of registration or renewal of registration; and
(ii) at other times as the county legislative body may require to enforce inspection
requirements for individual motor vehicles, except that the county legislative body may not
routinely require a certificate of emissions inspection, or waiver of the certificate, more often
than required under Subsection (9); and
(b) compliance with this section for a motor vehicle registered or principally operated
in the county and owned by or being used by a department, division, instrumentality, agency, or
employee of:
(i) the federal government;
(ii) the state and any of its agencies; or
(iii) a political subdivision of the state, including school districts.
(2) A vehicle owner subject to Subsection (1) shall obtain a motor vehicle emissions
inspection and maintenance program certificate of emissions inspection as described in
Subsection (1), but the program may not deny vehicle registration based solely on the presence
of a defeat device covered in the Volkswagen partial consent decrees or a United States
Environmental Protection Agency-approved vehicle modification in the following vehicles:
(a) a 2.0-liter diesel engine motor vehicle in which its lifetime nitrogen oxide
emissions are mitigated in the state pursuant to a partial consent decree, including:
(i) Volkswagen Jetta, model years 2009, 2010, 2011, 2012, 2013, 2014, and 2015;
(ii) Volkswagen Jetta Sportwagen, model years 2009, 2010, 2011, 2012, 2013, and
2014;
(iii) Volkswagen Golf, model years 2010, 2011, 2012, 2013, 2014, and 2015;
(iv) Volkswagen Golf Sportwagen, model year 2015;
(v) Volkswagen Passat, model years 2012, 2013, 2014, and 2015;
(vi) Volkswagen Beetle, model years 2013, 2014, and 2015;
(vii) Volkswagen Beetle Convertible, model years 2013, 2014, and 2015; and
(viii) Audi A3, model years 2010, 2011, 2012, 2013, and 2015; and
(b) a 3.0-liter diesel engine motor vehicle in which its lifetime nitrogen oxide
emissions are mitigated in the state to a settlement, including:
(i) Volkswagen Touareg, model years 2009, 2010, 2011, 2012, 2013, 2014, 2015, and 
2016;
(ii) Audi Q7, model years 2009, 2010, 2011, 2012, 2013, 2014, 2015, and 2016;
(iii) Audi A6 Quattro, model years 2014, 2015, and 2016;
(iv) Audi A7 Quattro, model years 2014, 2015, and 2016;
(v) Audi A8, model years 2014, 2015, and 2016;
(vi) Audi A8L, model years 2014, 2015, and 2016;
(vii) Audi Q5, model years 2014, 2015, and 2016; and
(viii) Porsche Cayenne Diesel, model years 2013, 2014, 2015, and 2016. 
(3) (a) The legislative body of a county identified in Subsection (1), in consultation
with the Air Quality Board created under Section 
19-1-106
, shall make regulations or
ordinances regarding:
(i) emissions standards;
(ii) test procedures;
(iii) inspections stations;
(iv) repair requirements and dollar limits for correction of deficiencies; and
(v) 
subject to Subsection (3)(e),
 certificates of emissions inspections.
(b) In accordance with Subsection (3)(a), a county legislative body:
(i) shall make regulations or ordinances to attain or maintain ambient air quality
standards in the county, consistent with the state implementation plan and federal
requirements;
(ii) may allow for a phase-in of the program by geographical area; and
(iii) shall comply with the analyzer design and certification requirements contained in
the state implementation plan prepared under Title 19, Chapter 2, Air Conservation Act.
(c) The county legislative body and the Air Quality Board shall give preference to an
inspection and maintenance program that:
(i) is decentralized, to the extent the decentralized program will attain and maintain
ambient air quality standards and meet federal requirements;
(ii) is the most cost effective means to achieve and maintain the maximum benefit with
regard to ambient air quality standards and to meet federal air quality requirements as related to
vehicle emissions; and
(iii) provides a reasonable phase-out period for replacement of air pollution emission
testing equipment made obsolete by the program.
(d) The provisions of Subsection (3)(c)(iii) apply only to the extent the phase-out:
(i) may be accomplished in accordance with applicable federal requirements; and
(ii) does not otherwise interfere with the attainment and maintenance of ambient air
quality standards.
(e) A certificate of emissions inspection shall contain an odometer reading.
(4) The following vehicles are exempt from an emissions inspection program and the
provisions of this section:
(a) an implement of husbandry as defined in Section 
41-1a-102
;
(b) a motor vehicle that:
(i) meets the definition of a farm truck under Section 
41-1a-102
; and
(ii) has a gross vehicle weight rating of 12,001 pounds or more;
(c) a vintage vehicle as defined in Section 
41-21-1
;
(d) a custom vehicle as defined in Section 
41-6a-1507
;
(e) to the extent allowed under the current federally approved state implementation
plan, in accordance with the federal Clean Air Act, 42 U.S.C. Sec. 7401, et seq., a motor
vehicle that is less than two years old on January 1 based on the age of the vehicle as
determined by the model year identified by the manufacturer;
(f) a pickup truck, as defined in Section 
41-1a-102
, with a gross vehicle weight rating
of 12,000 pounds or less, if the registered owner of the pickup truck provides a signed
statement to the legislative body stating the truck is used:
(i) by the owner or operator of a farm located on property that qualifies as land in
agricultural use under Sections 
59-2-502
 and 
59-2-503
; and
(ii) exclusively for the following purposes in operating the farm:
(A) for the transportation of farm products, including livestock and its products,
poultry and its products, floricultural and horticultural products; and
(B) in the transportation of farm supplies, including tile, fence, and every other thing or
commodity used in agricultural, floricultural, horticultural, livestock, and poultry production
and maintenance;
(g) a motorcycle as defined in Section 
41-1a-102
;
(h) a motor vehicle powered solely by electric power; and
(i) a motor vehicle with a model year of 1967 or older.
(5) The county shall issue to the registered owner who signs and submits a signed
statement under Subsection (4)(f) a certificate of exemption from emissions inspection
requirements for purposes of registering the exempt vehicle.
(6) A legislative body of a county described in Subsection (1) may exempt from an
emissions inspection program a diesel-powered motor vehicle with a:
(a) gross vehicle weight rating of more than 14,000 pounds; or
(b) model year of 1997 or older.
(7) (a) The legislative body of a county described in Subsection (1) that does not
require an emissions inspection for diesel-powered motor vehicles as of December 31, 2017,
shall implement a three-year pilot program as described in Subsection (7)(b).
(b) Beginning on January 1, 2019, and ending on December 31, 2021, the legislative
body of a county described in Subsection (7)(a) shall require:
(i) a computerized emissions inspection for a diesel-powered motor vehicle that has:
(A) a model year of 2007 or newer;
(B) a gross vehicle weight rating of 14,000 pounds or less; and
(C) a model year that is five years old or older; and
(ii) a visual inspection of emissions equipment for a diesel-powered motor vehicle:
(A) with a gross vehicle weight rating of 14,000 pounds or less;
(B) that has a model year of 1998 or newer; and
(C) that has a model year that is five years old or older.
(c) (i) The legislative body of a county that participates in the pilot program described
in this Subsection (7) shall prepare a report including:
(A) the total number of diesel-powered vehicles inspected as part of the pilot program
using computerized technology;
(B) the passage and failure rates of the diesel-powered motor vehicles inspected as part
of the pilot program using computerized technology, shown by model year;
(C) the total number of diesel-powered vehicles visually inspected as part of the pilot
program;
(D) the passage and failure rates of the diesel-powered motor vehicles visually
inspected as part of the pilot program, shown by model year;
(E) the total number of diesel-powered vehicles visually inspected as part of the pilot
program where tampering with emissions equipment was found, shown by model year; and
(F) any other information the executive body or individual considers relevant.
(ii) The legislative body of a county that participates in the pilot program described in
this Subsection (7) shall present the report described in Subsection (7)(c)(i) to the Natural
Resources, Agriculture, and Environment Interim Committee:
(A) one time after January 1, 2020, but before August 31, 2020; and
(B) one time after January 1, 2021, but before August 31, 2021.
(d) After each report described in Subsection (7)(c), the Division of Air Quality created
in Section 
19-1-105
 shall provide to the Natural Resources, Agriculture, and Environment
Interim Committee and the legislative body of a county participating in the pilot program an
estimate of the tons of pollution emitted due to the failure rate of the diesel-powered motor
vehicles in the pilot program.
(8) (a) Subject to Subsection (8)(c), the legislative body of each county required under
federal law to utilize a motor vehicle emissions inspection and maintenance program or in
which an emissions inspection and maintenance program is necessary to attain or maintain any
national ambient air quality standard may require each college or university located in a county
subject to this section to require its students and employees who park a motor vehicle not
registered in a county subject to this section to provide proof of compliance with an emissions
inspection accepted by the county legislative body if the motor vehicle is parked on the college
or university campus or property.
(b) College or university parking areas that are metered or for which payment is
required per use are not subject to the requirements of this Subsection (8).
(c) The legislative body of a county shall make the reasons for implementing the
provisions of this Subsection (8) part of the record at the time that the county legislative body
takes its official action to implement the provisions of this Subsection (8).
(9) (a) An emissions inspection station shall issue a certificate of emissions inspection
for each motor vehicle that meets the inspection and maintenance program requirements
established in rules made under Subsection (3).
(b) The frequency of the emissions inspection shall be determined based on the age of
the vehicle as determined by model year and shall be required annually subject to the
provisions of Subsection (9)(c).
(c) (i) To the extent allowed under the current federally approved state implementation
plan, in accordance with the federal Clean Air Act, 42 U.S.C. Sec. 7401 et seq., the legislative
body of a county identified in Subsection (1) shall only require the emissions inspection every
two years for each vehicle.
(ii) The provisions of Subsection (9)(c)(i) apply only to a vehicle that is less than six
years old on January 1.
(iii) For a county required to implement a new vehicle emissions inspection and
maintenance program on or after December 1, 2012, under Subsection (1), but for which no
current federally approved state implementation plan exists, a vehicle shall be tested at a
frequency determined by the county legislative body, in consultation with the Air Quality
Board created under Section 
19-1-106
, that is necessary to comply with federal law or attain or
maintain any national ambient air quality standard.
(iv) If a county legislative body establishes or changes the frequency of a vehicle
emissions inspection and maintenance program under Subsection (9)(c)(iii), the establishment
or change shall take effect on January 1 if the State Tax Commission receives notice meeting
the requirements of Subsection (9)(c)(v) from the county before October 1.
(v) The notice described in Subsection (9)(c)(iv) shall:
(A) state that the county will establish or change the frequency of the vehicle emissions
inspection and maintenance program under this section;
(B) include a copy of the ordinance establishing or changing the frequency; and
(C) if the county establishes or changes the frequency under this section, state how
frequently the emissions testing will be required.
(d) If an emissions inspection is only required every two years for a vehicle under
Subsection(9)(c), the inspection shall be required for the vehicle in:
(i) odd-numbered years for vehicles with odd-numbered model years; or
(ii) in even-numbered years for vehicles with even-numbered model years.
(10) (a) Except as provided in Subsections (9)(b), (c), and (d), the emissions inspection
required under this section may be made no more than two months before the renewal of
registration.
(b) (i) If the title of a used motor vehicle is being transferred, the owner may use an
emissions inspection certificate issued for the motor vehicle during the previous 11 months to
satisfy the requirement under this section.
(ii) If the transferor is a licensed and bonded used motor vehicle dealer, the owner may
use an emissions inspection certificate issued for the motor vehicle in a licensed and bonded
motor vehicle dealer's name during the previous 11 months to satisfy the requirement under
this section.
(c) If the title of a leased vehicle is being transferred to the lessee of the vehicle, the
lessee may use an emissions inspection certificate issued during the previous 11 months to
satisfy the requirement under this section.
(d) If the motor vehicle is part of a fleet of 101 or more vehicles, the owner may not
use an emissions inspection made more than 11 months before the renewal of registration to
satisfy the requirement under this section.
(e) If the application for renewal of registration is for a six-month registration period
under Section 
41-1a-215.5
, the owner may use an emissions inspection certificate issued during
the previous eight months to satisfy the requirement under this section.
(11) (a) A county identified in Subsection (1) shall collect information about and
monitor the program.
(b) A county identified in Subsection (1) shall supply this information to an appropriate
legislative committee, as designated by the Legislative Management Committee, at times
determined by the designated committee to identify program needs, including funding needs.
(12) If approved by the county legislative body, a county that had an established
emissions inspection fee as of January 1, 2002, may increase the established fee that an
emissions inspection station may charge by $2.50 for each year that is exempted from
emissions inspections under Subsection (9)(c) up to a $7.50 increase.
(13) (a) A county identified in Subsection (1) may impose a local emissions
compliance fee on each motor vehicle registration within the county in accordance with the
procedures and requirements of Section 
41-1a-1223
.
(b) A county that imposes a local emissions compliance fee may use revenues
generated from the fee for the establishment and enforcement of an emissions inspection and
maintenance program in accordance with the requirements of this section.
(c) A county that imposes a local emissions compliance fee may use revenues
generated from the fee to promote programs to maintain a local, state, or national ambient air
quality standard.
Section 13. Section 
41-12a-806
 is amended to read:
41-12a-806.
Restricted account -- Creation -- Funding -- Interest -- Purposes.
(1) There is created within the Transportation Fund a restricted account known as the
"Uninsured Motorist Identification Restricted Account."
(2) The account consists of money generated from the following revenue sources:
(a) money received by the state under Section 
41-1a-1218
, the uninsured motorist
identification fee;
(b) money received by the state under Section 
41-1a-1220
, the registration
reinstatement fee; and
(c) appropriations made to the account by the Legislature.
(3) (a) The account shall earn interest.
(b) All interest earned on account money shall be deposited into the account.
(4) The Legislature shall appropriate money from the account to:
(a) the department to fund the contract with the designated agent;
(b) the department to offset the costs to state and local law enforcement agencies of
using the information for the purposes authorized under this part;
(c) the Tax Commission to offset the costs to the Motor Vehicle Division for revoking
and reinstating vehicle registrations under Subsection 
41-1a-110
(2)(a)(ii); and
(d) the department to reimburse a person for the costs
, including any applicable sales
and use tax,
 of towing and storing the person's vehicle if:
(i) the person's vehicle was impounded in accordance with Subsection 
41-1a-1101
(2);
(ii) the impounded vehicle had owner's or operator's security in effect for the vehicle at
the time of the impoundment;
(iii) the database indicated that owner's or operator's security was not in effect for the
impounded vehicle; and
(iv) the department determines that the person's vehicle was wrongfully impounded.
(5) The Legislature may appropriate not more than $1,000,000 annually from the
account to the Peace Officer Standards and Training Division, created under Section 
53-6-103
,
for use in law enforcement training, including training on the use of the Uninsured Motorist
Identification Database Program created under Title 41, Chapter 12a, Part 8, Uninsured
Motorist Identification Database Program.
(6) (a) By following the procedures in Title 63G, Chapter 4, Administrative Procedures
Act, the department shall hold a hearing to determine whether a person's vehicle was
wrongfully impounded under Subsection 
41-1a-1101
(2).
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
division shall make rules establishing procedures for a person to apply for a reimbursement
under Subsection (4)(d).
(c) A person is not eligible for a reimbursement under Subsection (4)(d) unless the
person applies for the reimbursement within six months from the date that the motor vehicle
was impounded.
Section 14. Section 
53B-8a-106
 is amended to read:
53B-8a-106.
Account agreements.
The plan may enter into account agreements with account owners on behalf of
beneficiaries under the following terms and agreements:
(1) (a) An account agreement may require an account owner to agree to invest a
specific amount of money in the plan for a specific period of time for the benefit of a specific
beneficiary, not to exceed an amount determined by the executive director.
(b) Account agreements may be amended to provide for adjusted levels of payments
based upon changed circumstances or changes in educational plans.
(c) An account owner may make additional optional payments as long as the total
payments for a specific beneficiary do not exceed the total estimated higher education costs as
determined by the executive director.
(d) Subject to Subsections (1)(f) and (g), the maximum amount of a qualified
investment that a corporation that is an account owner may subtract from unadjusted income
for a taxable year in accordance with Title 59, Chapter 7, Corporate Franchise and Income
Taxes, is $1,710 for each individual beneficiary for the taxable year beginning on or after
January 1, 2010, but beginning on or before December 31, 2010.
(e) Subject to Subsections (1)(f) and (g), the maximum amount of a qualified
investment that may be used as the basis for claiming a tax credit in accordance with Section
59-10-1017
, is:
(i) subject to Subsection (1)(e)(iv), for a resident or nonresident estate or trust that is an
account owner, $1,710 for each individual beneficiary for the taxable year beginning on or after
January 1, 2010, but beginning on or before December 31, 2010;
(ii) subject to Subsection (1)(e)(iv), for a resident or nonresident individual that is an
account owner, other than a husband and wife who are account owners and file a single return
jointly under Title 59, Chapter 10, Individual Income Tax Act, $1,710 for each individual
beneficiary for the taxable year beginning on or after January 1, 2010, but beginning on or
before December 31, 2010;
(iii) subject to Subsection (1)(e)(iv), for a husband and wife who are account owners
and file a single return jointly under Title 59, Chapter 10, Individual Income Tax Act, $3,420
for each individual beneficiary:
(A) for the taxable year beginning on or after January 1, 2010, but beginning on or
before December 31, 2010; and
(B) regardless of whether the plan has entered into:
(I) a separate account agreement with each spouse; or
(II) a single account agreement with both spouses jointly; or
(iv) for a grantor trust:
(A) if the owner of the grantor trust has a single filing status or head of household
filing status as defined in Section [
59-10-1018
] 
59-10-1017
, the amount described in
Subsection (1)(e)(ii); or
(B) if the owner of the grantor trust has a joint filing status as defined in Section
[
59-10-1018
] 
59-10-1017
, the amount described in Subsection (1)(e)(iii).
(f) (i) For taxable years beginning on or after January 1, 2011, the executive director
shall annually increase the maximum amount of a qualified investment described in
Subsections (1)(d) and (1)(e)(i) and (ii), by a percentage equal to the increase in the consumer
price index for the preceding calendar year.
(ii) After making an increase required by Subsection (1)(f)(i), the executive director
shall:
(A) round the maximum amount of the qualified investments described in Subsections
(1)(d) and (1)(e)(i) and (ii) increased under Subsection (1)(f)(i) to the nearest 10 dollar
increment; and
(B) increase the maximum amount of the qualified investment described in Subsection
(1)(e)(iii) so that the maximum amount of the qualified investment described in Subsection
(1)(e)(iii) is equal to the product of:
(I) the maximum amount of the qualified investment described in Subsection (1)(e)(ii)
as rounded under Subsection (1)(f)(ii)(A); and
(II) two.
(iii) For purposes of Subsections (1)(f)(i) and (ii), the executive director shall calculate
the consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
(g) For taxable years beginning on or after January 1, 2011, the executive director shall
keep the previous year's maximum amount of a qualified investment described in Subsections
(1)(d) and (1)(e)(i) and (ii) if the consumer price index for the preceding calendar year
decreases.
(2) (a) Beneficiaries designated in account agreements must be designated after birth
and before age 19 for an account owner to:
(i) subtract a qualified investment from income under Title 59, Chapter 7, Corporate
Franchise and Income Taxes; or
(ii) use a qualified investment as the basis for claiming a tax credit in accordance with
Section 
59-10-1017
.
(b) Account owners may designate a beneficiary age 19 or older, but investments for
that beneficiary are not eligible to be:
(i) subtracted from income under Title 59, Chapter 7, Corporate Franchise and Income
Taxes; or
(ii) used as the basis for claiming a tax credit in accordance with Section 
59-10-1017
.
(3) Each account agreement shall state clearly that there are no guarantees regarding
money in the plan as to the return of principal and that losses could occur.
(4) Each account agreement shall provide that:
(a) a contributor to, or designated beneficiary under, an account agreement may not
direct the investment of any contributions or earnings on contributions;
(b) any part of the money in any account may not be used as security for a loan; and
(c) an account owner may not borrow from the plan.
(5) The execution of an account agreement by the plan may not guarantee in any way
that higher education costs will be equal to projections and estimates provided by the plan or
that the beneficiary named in any account agreement will:
(a) be admitted to an institution of higher education;
(b) if admitted, be determined a resident for tuition purposes by the institution of
higher education;
(c) be allowed to continue attendance at the institution of higher education following
admission; or
(d) graduate from the institution of higher education.
(6) A beneficiary may be changed as permitted by the rules and regulations of the
board upon written request of the account owner prior to the date of admission of any
beneficiary under an account agreement by an institution of higher education so long as the
substitute beneficiary is eligible for participation.
(7) An account agreement may be freely amended throughout the term of the account
agreement in order to enable an account owner to increase or decrease the level of
participation, change the designation of beneficiaries, and carry out similar matters as
authorized by rule.
(8) Each account agreement shall provide that:
(a) the account agreement may be canceled upon the terms and conditions, and upon
payment of the fees and costs set forth and contained in the board's rules and regulations; and
(b) the executive director may amend the agreement unilaterally and retroactively, if
necessary, to maintain the plan as a qualified tuition program under Section 529, Internal
Revenue Code.
Section 15. Section 
53G-10-406
 is amended to read:
53G-10-406.
Underage Drinking Prevention Program -- State board rules.
(1) As used in this section:
(a) "Advisory council" means the Underage Drinking Prevention Program Advisory
Council created in this section.
(b) "Program" means the Underage Drinking Prevention Program created in this
section.
(c) "School-based prevention program" means an evidence-based program intended for
students aged 13 and older that:
(i) is aimed at preventing underage consumption of alcohol;
(ii) is delivered by methods that engage students in storytelling and visualization;
(iii) addresses the behavioral risk factors associated with underage drinking; and
(iv) provides practical tools to address the dangers of underage drinking.
(2) There is created the Underage Drinking Prevention Program that consists of:
(a) a school-based prevention program for students in grade 7 or 8; and
(b) a school-based prevention program for students in grade 9 or 10 that increases
awareness of the dangers of driving under the influence of alcohol.
(3) (a) Beginning with the 2018-19 school year, an LEA shall offer the program each
school year to each student in grade 7 or 8 and grade 9 or 10.
(b) An LEA shall select from the providers qualified by the state board under
Subsection (6) to offer the program.
(4) The state board shall administer the program with input from the advisory council.
(5) There is created the Underage Drinking Prevention Program Advisory Council
comprised of the following members:
(a) the executive director of the Department of Alcoholic Beverage Control or the
executive director's designee;
(b) the executive director of the Department of Health or the executive director's
designee;
(c) the director of the Division of Substance Abuse and Mental Health or the director's
designee;
(d) the director of the Division of Child and Family Services or the director's designee;
(e) the director of the Division of Juvenile Justice Services or the director's designee;
(f) the state superintendent or the state superintendent's designee; and
(g) two members of the state board, appointed by the chair of the state board.
(6) (a) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the state
board shall qualify one or more providers to provide the program to an LEA.
(b) In selecting a provider described in Subsection (6)(a), the state board shall consider:
(i) whether the provider's program complies with the requirements described in this
section;
(ii) the extent to which the provider's underage drinking prevention program aligns
with core standards for Utah public schools; and
(iii) the provider's experience in providing a program that is effective at reducing
underage drinking.
[
(7) (a) The state board shall use money from the Underage Drinking Prevention
Program Restricted Account described in Section 
53F-9-304
 for the program.
]
[
(b) The state board may use money from the Underage Drinking Prevention Program
Restricted Account to fund up to .5 of a full-time equivalent position to administer the
program.
]
[
(8)
] 
(7)
 The state board shall make rules that:
(a) beginning with the 2018-19 school year, require an LEA to offer the Underage
Drinking Prevention Program each school year to each student in grade 7 or 8 and grade 9 or
10; and
(b) establish criteria for the state board to use in selecting a provider described in
Subsection (6).
Section 16. Section 
59-1-1503
 is amended to read:
59-1-1503.
Nonrefundable credit -- Sales and use tax exemption -- Sales and use
tax remittance.
(1) A nonrefundable individual income tax credit is allowed as provided in Section
59-10-1028
 related to a capital gain on a transaction involving the exchange of one form of
legal tender for another form of legal tender.
(2) Sales of currency or coin are exempt from sales and use taxes as provided in
Subsection 
59-12-104
[
(50)
]
(43)
.
(3) The remittance of a sales and use tax on a transaction involving specie legal tender
is as provided in Section 
59-12-107
.
Section 17. Section 
59-7-104
 is amended to read:
59-7-104.
Tax -- Minimum tax.
(1) Each domestic and foreign corporation, except a corporation that is exempt under
Section 
59-7-102
, shall pay an annual tax to the state based on the corporation's Utah taxable
income for the taxable year for the privilege of exercising the corporation's corporate franchise,
as defined in Section 
59-7-101
, or for the privilege of doing business, as defined in Section
59-7-101
, in the state.
(2) The tax shall be [
4.95%
] 
4.66%
 of a corporation's Utah taxable income.
(3) The minimum tax a corporation shall pay under this chapter is $100.
Section 18. Section 
59-7-201
 is amended to read:
59-7-201.
Tax -- Minimum tax.
(1) There is imposed upon each corporation, except a corporation that is exempt under
Section 
59-7-102
, a tax upon the corporation's Utah taxable income for the taxable year that is
derived from sources within this state other than income for any period that the corporation is
required to include in the corporation's tax base under Section 
59-7-104
.
(2) The tax imposed by Subsection (1) shall be [
4.95%
] 
4.66%
 of a corporation's Utah
taxable income.
(3) In no case shall the tax be less than $100.
Section 19. Section 
59-7-610
 is amended to read:
59-7-610.
Recycling market development zones tax credits.
(1) Subject to other provisions of this section, a taxpayer that is a business operating in
a recycling market development zone as defined in Section 
63N-2-402
 may claim the following
nonrefundable tax credits:
(a) a tax credit [
of 5% of
] 
equal to the product of the percentage listed in Subsection
59-7-104
(2) and
 the purchase price paid for machinery and equipment used directly in:
(i) commercial composting; or
(ii) manufacturing facilities or plant units that:
(A) manufacture, process, compound, or produce recycled items of tangible personal
property for sale; or
(B) reduce or reuse postconsumer waste material; and
(b) a tax credit equal to the lesser of:
(i) 20% of net expenditures to third parties for rent, wages, supplies, tools, test
inventory, and utilities made by the taxpayer for establishing and operating recycling or
composting technology in Utah; and
(ii) $2,000.
(2) (a) To claim a tax credit described in Subsection (1), the taxpayer shall receive
from the Governor's Office of Economic Development a written certification, on a form
approved by the commission, that includes:
(i) a statement that the taxpayer is operating a business within the boundaries of a
recycling market development zone;
(ii) for claims of the tax credit described in Subsection (1)(a):
(A) the type of the machinery and equipment that the taxpayer purchased;
(B) the date that the taxpayer purchased the machinery and equipment;
(C) the purchase price for the machinery and equipment;
(D) the total purchase price for all machinery and equipment for which the taxpayer is
claiming a tax credit;
(E) a statement that the machinery and equipment are integral to the composting or
recycling process; and
(F) the amount of the taxpayer's tax credit; and
(iii) for claims of the tax credit described in Subsection (1)(b):
(A) the type of net expenditure that the taxpayer made to a third party;
(B) the date that the taxpayer made the payment to a third party;
(C) the amount that the taxpayer paid to each third party;
(D) the total amount that the taxpayer paid to all third parties;
(E) a statement that the net expenditures support the establishment and operation of
recycling or composting technology in Utah; and
(F) the amount of the taxpayer's tax credit.
(b) (i) The Governor's Office of Economic Development shall provide a taxpayer
seeking to claim a tax credit under Subsection (1) with a copy of the written certification.
(ii) The taxpayer shall retain a copy of the written certification for the same period of
time that a person is required to keep books and records under Section 
59-1-1406
.
(c) The Governor's Office of Economic Development shall submit to the commission
an electronic list that includes:
(i) the name and identifying information of each taxpayer to which the office issues a
written certification; and
(ii) for each taxpayer, the amount of each tax credit listed on the written certification.
(3) A taxpayer may not claim a tax credit under Subsection (1)(a), Subsection (1)(b), or
both that exceeds 40% of the taxpayer's state income tax liability as the tax liability is
calculated:
(a) for the taxable year in which the taxpayer made the purchases or payments;
(b) before any other tax credits the taxpayer may claim for the taxable year; and
(c) before the taxpayer claiming a tax credit authorized by this section.
(4) The commission shall make rules governing what information a taxpayer shall file
with the commission to verify the entitlement to and amount of a tax credit.
(5) Except as provided in Subsections (6) through (8), a taxpayer may carry forward, to
the next three taxable years, the amount of the tax credit that exceeds the taxpayer's income tax
liability for the taxable year.
(6) A taxpayer may not claim or carry forward a tax credit described in Subsection
(1)(a) in a taxable year during which the taxpayer claims or carries forward a tax credit under
Section 
63N-2-213
.
(7) A taxpayer may not claim or carry forward a tax credit described in Subsection
(1)(b) in a taxable year during which the taxpayer claims or carries forward a tax credit under
Section 
63N-2-213
.
(8) A taxpayer may not claim or carry forward a tax credit under this section for a
taxable year during which the taxpayer claims the targeted business income tax credit under
Section 
59-7-624
.
Section 20. Section 
59-7-614.1
 is amended to read:
59-7-614.1.
Refundable tax credit for hand tools used in farming operations --
Procedures for refund -- Transfers from General Fund to Education Fund -- Rulemaking
authority.
(1) [
For a taxable year beginning on or after January 1, 2004, a
] 
A
 taxpayer may claim
a refundable tax credit:
(a) as provided in this section;
(b) against taxes otherwise due under this chapter; and
(c) in an amount equal to the amount of tax the taxpayer pays:
(i) on a purchase of a hand tool:
(A) if the purchase is made on or after July 1, 2004;
(B) if the hand tool is used or consumed primarily and directly in a farming operation
in the state; and
(C) if the unit purchase price of the hand tool is more than $250; and
(ii) under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
(1)(c)(i).
(2) A taxpayer:
(a) shall retain the following to establish the amount of tax the resident or nonresident
individual paid under Chapter 12, Sales and Use Tax Act, on the purchase described in
Subsection (1)(c)(i):
(i) a receipt;
(ii) an invoice; or
(iii) a document similar to a document described in Subsection (2)(a)(i) or (ii); and
(b) may not carry forward or carry back a tax credit under this section.
(3) (a) In accordance with any rules prescribed by the commission under Subsection
(3)(b)[
: (i)
] the commission shall make a refund to a taxpayer that claims a tax credit under this
section if the amount of the tax credit exceeds the taxpayer's tax liability under this chapter[
;
and
]
.
[
(ii) the Division of Finance shall transfer at least annually from the General Fund into
the Education Fund an amount equal to the amount of tax credit claimed under this section.
]
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules providing procedures for making[
: (i)
] a refund to a taxpayer as
required by Subsection (3)(a)[
(i); or
]
.
[
(ii) transfers from the General Fund into the Education Fund as required by
Subsection (3)(a)(ii).
]
Section 21. Section 
59-7-618
 is amended to read:
59-7-618.
Tax credit related to alternative fuel heavy duty vehicles.
(1) As used in this section:
(a) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air
Conservation Act.
(b) "Director" means the director of the Division of Air Quality appointed under
Section 
19-2-107
.
(c) "Heavy duty vehicle" means a commercial category 7 or 8 vehicle, according to
vehicle classifications established by the Federal Highway Administration.
(d) "Natural gas" includes compressed natural gas and liquified natural gas.
(e) "Qualified heavy duty vehicle" means a heavy duty vehicle that:
(i) has never been titled or registered and has been driven less than 7,500 miles; and
(ii) is fueled by natural gas , has a 100% electric drivetrain, or has a hydrogen-electric
drivetrain .
(f) "Qualified purchase" means the purchase of a qualified heavy duty vehicle.
(g) "Qualified taxpayer" means a taxpayer that:
(i) purchases a qualified heavy duty vehicle; and
(ii) receives a tax credit certificate from the director.
(h) "Small fleet" means 40 or fewer heavy duty vehicles registered in the state and
owned by a single taxpayer.
(i) "Tax credit certificate" means a certificate issued by the director certifying that a
taxpayer is entitled to a tax credit as provided in this section and stating the amount of the tax
credit.
(2) A qualified taxpayer may claim a nonrefundable tax credit against tax otherwise
due under this chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required
to Pay Corporate Franchise or Income Tax Act:
(a) in an amount equal to:
(i) $25,000, if the qualified purchase of a natural gas heavy duty vehicle occurs during
calendar year 2015 or calendar year 2016;
(ii) $25,000, if the qualified purchase occurs during calendar year 2017; 
(iii) $20,000, if the qualified purchase occurs during calendar year 2018;
(iv) $18,000, if the qualified purchase occurs during calendar year 2019; and
(v) $15,000, if the qualified purchase occurs during calendar year 2020; and
(b) if the qualified taxpayer certifies under oath that over 50% of the miles that the
heavy duty vehicle that is the subject of the qualified purchase will travel annually will be
within the state.
(3) (a) Except as provided in Subsection (3)(b), a taxpayer may not submit an
application for, and the director may not issue to the taxpayer, a tax credit certificate under this
section in any taxable year for a qualified purchase if the director has already issued tax credit
certificates to the taxpayer for 10 qualified purchases in the same taxable year.
(b) If, by May 1 of any year, more than 30% of the aggregate annual total amount of
tax credits under Subsection (5) has not been claimed, a taxpayer may submit an application
for, and the director may issue to the taxpayer, one or more tax credit certificates for up to eight
additional qualified purchases, even if the director has already issued to that taxpayer tax credit
certificates for the maximum number of qualified purchases allowed under Subsection (3)(a).
(4) (a) Subject to Subsection (4)(b), the director shall reserve 25% of all tax credits
available under this section for qualified taxpayers with a small fleet.
(b) Subsection (4)(a) does not prevent a taxpayer from submitting an application for, or
the director from issuing, a tax credit certificate if, before October 1, qualified taxpayers with a
small fleet have not reserved under Subsection (5)(b) tax credits for the full amount reserved
under Subsection (4)(a).
(5) (a) The aggregate annual total amount of tax credits represented by tax credit
certificates that the director issues under this section and Section 
59-10-1033
 may not exceed
$500,000.
(b) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, make rules to establish a process under which a taxpayer may reserve a
potential tax credit under this section for a limited time to allow the taxpayer to make a
qualified purchase with the assurance that the aggregate limit under Subsection (5)(a) will not
be met before the taxpayer is able to submit an application for a tax credit certificate.
(6) (a) (i) A taxpayer wishing to claim a tax credit under this section shall, using forms
the board requires by rule:
(A) submit to the director an application for a tax credit;
(B) provide the director proof of a qualified purchase; and
(C) submit to the director the certification under oath required under Subsection (2)(b).
(ii) Upon receiving the application, proof, and certification required under Subsection
(6)(a)(i), the director shall provide the taxpayer a written statement from the director
acknowledging receipt of the proof.
(b) If the director determines that a taxpayer qualifies for a tax credit under this section,
the director shall:
(i) determine the amount of tax credit the taxpayer is allowed under this section; and
(ii) provide the taxpayer with a written tax credit certificate:
(A) stating that the taxpayer has qualified for a tax credit; and
(B) showing the amount of tax credit for which the taxpayer has qualified under this
section.
(c) A qualified taxpayer shall retain the tax credit certificate.
(d) The director shall at least annually submit to the commission a list of all qualified
taxpayers to which the director has issued a tax credit certificate and the amount of each tax
credit represented by the tax credit certificates.
(7) The tax credit under this section is allowed only:
(a) against a tax owed under this chapter or Chapter 8, Gross Receipts Tax on Certain
Corporations Not Required to Pay Corporate Franchise or Income Tax Act, in the taxable year
by the qualified taxpayer;
(b) for the taxable year in which the qualified purchase occurs; and
(c) once per vehicle.
(8) A qualified taxpayer may not assign a tax credit or a tax credit certificate under this
section to another person.
(9) If the qualified taxpayer receives a tax credit certificate under this section that
allows a tax credit in an amount that exceeds the qualified taxpayer's tax liability under this
chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay
Corporate Franchise or Income Tax Act, for a taxable year, the qualified taxpayer may carry
forward the amount of the tax credit that exceeds the tax liability for a period that does not
exceed the next five taxable years.
[
(10) (a) In accordance with any rules prescribed by the commission under Subsection
(10)(b), the Division of Finance shall transfer at least annually from the General Fund into the
Education Fund the aggregate amount of all tax credits claimed under this section.
]
[
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may make rules for making a transfer from the General Fund into the
Education Fund as required by Subsection (10)(a).
]
Section 22. Section 
59-7-620
 is amended to read:
59-7-620.
Nonrefundable tax credit for contribution to state Achieving a Better
Life Experience Program account.
(1) As used in this section:
(a) "Account" means an account in a qualified ABLE program where the designated
beneficiary of the account is a resident of this state.
(b) "Contributor" means a corporation that:
(i) makes a contribution to an account; and
(ii) receives a statement from the qualified ABLE program itemizing the contribution.
(c) "Designated beneficiary" means the same as that term is defined in 26 U.S.C. Sec.
529A.
(d) "Qualified ABLE program" means the same as that term is defined in Section
35A-12-102
.
(2) A contributor to an account may claim a nonrefundable tax credit as provided in
this section.
(3) Subject to the other provisions of this section, the tax credit is equal to the product
of:
(a) [
5%
] 
the percentage listed in Subsection 
59-7-104
(2)
; and
(b) the total amount of contributions:
(i) the contributor makes for the taxable year; and
(ii) for which the contributor receives a statement from the qualified ABLE program
itemizing the contributions.
(4) A contributor may not claim a tax credit under this section:
(a) for an amount of excess contribution to an account that is returned to the
contributor; or
(b) with respect to an amount the contributor deducts on a federal income tax return.
(5) A tax credit under this section may not be carried forward or carried back.
Section 23. Section 
59-10-104
 is amended to read:
59-10-104.
Tax basis -- Tax rate -- Exemption.
(1) A tax is imposed on the state taxable income of a resident individual as provided in
this section.
(2) For purposes of Subsection (1), for a taxable year, the tax is an amount equal to the
product of:
(a) the resident individual's state taxable income for that taxable year; and
(b) [
4.95%
] 
4.66%
.
(3) This section does not apply to a resident individual exempt from taxation under
Section 
59-10-104.1
.
Section 24. Section 
59-10-529.1
 is amended to read:
59-10-529.1.
Time period for commission to issue a refund.
(1) Except as provided in Subsection (2), the commission may not issue a refund
before March 1.
(2) The commission may issue a refund before March 1 if, before March 1, the
commission determines that:
(a) 
(i)
 an employer has filed the one or more forms in accordance with Subsection
59-10-406
(8) the employer is required to file with respect to an individual; and
(ii) for a refund of a tax credit described in Section 
59-10-1114
, the Department of
Workforce Services has submitted the electronic report required by Section 
35A-9-214
; and
(b) the individual has filed a return in accordance with this chapter.
Section 25. Section 
59-10-1005
 is amended to read:
59-10-1005.
Tax credit for at-home parent.
(1) As used in this section:
(a) "At-home parent" means a parent:
(i) who provides full-time care at the parent's residence for one or more of the parent's
own qualifying children;
(ii) who claims [
the qualifying child as a dependent on the parent's individual income
tax return for the taxable year for which the parent claims the credit
] 
a tax credit with respect to
the qualifying child under Section 24, Internal Revenue Code, on the parent's federal individual
income tax return for the taxable year
; and
(iii) if the sum of the following amounts are $3,000 or less for the taxable year for
which the parent claims the credit:
(A) the total wages, tips, and other compensation listed on all of the parent's federal
Forms W-2; and
(B) the gross income listed on the parent's federal Form 1040 Schedule C, Profit or
Loss From Business.
(b) "Parent" means an individual who:
(i) is the biological mother or father of a qualifying child;
(ii) is the stepfather or stepmother of a qualifying child;
(iii) (A) legally adopts a qualifying child; or
(B) has a qualifying child placed in the individual's home:
(I) by a child-placing agency, as defined in Section 
62A-2-101
; and
(II) for the purpose of legally adopting the child;
(iv) is a foster parent of a qualifying child; or
(v) is a legal guardian of a qualifying child.
(c) "Qualifying child" means a child who is no more than 12 months of age on the last
day of the taxable year for which the tax credit is claimed.
(2) [
For a taxable year beginning on or after January 1, 2000, a
] 
A
 claimant may claim
on the claimant's individual income tax return a nonrefundable tax credit of $100 for each
qualifying child if:
(a) the claimant or another claimant filing a joint individual income tax return with the
claimant is an at-home parent; and
(b) the adjusted gross income of all of the claimants filing the individual income tax
return is less than or equal to $50,000.
(3) A claimant may not carry forward or carry back a tax credit authorized by this
section.
[
(4) (a) In accordance with any rules prescribed by the commission under Subsection
(4)(b), the Division of Finance shall transfer at least annually from the General Fund into the
Education Fund the aggregate amount of all tax credits claimed under this section.
]
[
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may make rules for making a transfer from the General Fund into the
Education Fund as required by Subsection (4)(a).
]
Section 26. Section 
59-10-1007
 is amended to read:
59-10-1007.
Recycling market development zones tax credits.
(1) Subject to other provisions of this section, a claimant, estate, or trust in a recycling
market development zone as defined in Section 
63N-2-402
 may claim the following
nonrefundable tax credits:
(a) a tax credit [
of 5% of
] 
equal to the product of the percentage listed in Subsection
59-10-104
(2) and
 the purchase price paid for machinery and equipment used directly in:
(i) commercial composting; or
(ii) manufacturing facilities or plant units that:
(A) manufacture, process, compound, or produce recycled items of tangible personal
property for sale; or
(B) reduce or reuse postconsumer waste material; and
(b) a tax credit equal to the lesser of:
(i) 20% of net expenditures to third parties for rent, wages, supplies, tools, test
inventory, and utilities made by the claimant, estate, or trust for establishing and operating
recycling or composting technology in Utah; and
(ii) $2,000.
(2) (a) To claim a tax credit described in Subsection (1), the claimant, estate, or trust
shall receive from the Governor's Office of Economic Development a written certification, on a
form approved by the commission, that includes:
(i) a statement that the claimant, estate, or trust is operating within the boundaries of a
recycling market development zone;
(ii) for claims of the tax credit described in Subsection (1)(a):
(A) the type of the machinery and equipment that the claimant, estate, or trust
purchased;
(B) the date that the claimant, estate, or trust purchased the machinery and equipment;
(C) the purchase price for the machinery and equipment;
(D) the total purchase price for all machinery and equipment for which the claimant,
estate, or trust is claiming a tax credit;
(E) the amount of the claimant's, estate's, or trust's tax credit; and
(F) a statement that the machinery and equipment are integral to the composting or
recycling process; and
(iii) for claims of the tax credit described in Subsection (1)(b):
(A) the type of net expenditure that the claimant, estate, or trust made to a third party;
(B) the date that the claimant, estate, or trust made the payment to a third party;
(C) the amount that the claimant, estate, or trust paid to each third party;
(D) the total amount that the claimant, estate, or trust paid to all third parties;
(E) a statement that the net expenditures support the establishment and operation of
recycling or composting technology in Utah; and
(F) the amount of the claimant's, estate's, or trust's tax credit.
(b) (i) The Governor's Office of Economic Development shall provide a claimant,
estate, or trust seeking to claim a tax credit under Subsection (1) with a copy of the written
certification.
(ii) The claimant, estate, or trust shall retain a copy of the written certification for the
same period of time that a person is required to keep books and records under Section
59-1-1406
.
(c) The Governor's Office of Economic Development shall submit to the commission
an electronic list that includes:
(i) the name and identifying information of each claimant, estate, or trust to which the
office issues a written certification; and
(ii) for each claimant, estate, or trust, the amount of each tax credit listed on the written
certification.
(3) A claimant, estate, or trust may not claim a tax credit under Subsection (1)(a),
Subsection (1)(b), or both that exceeds 40% of the claimant's, estate's, or trust's state income
tax liability as the tax liability is calculated:
(a) for the taxable year in which the claimant, estate, or trust made the purchases or
payments;
(b) before any other tax credits the claimant, estate, or trust may claim for the taxable
year; and
(c) before the claimant, estate, or trust claiming a tax credit authorized by this section.
(4) The commission shall make rules governing what information a claimant, estate, or
trust shall file with the commission to verify the entitlement to and amount of a tax credit.
(5) Except as provided in Subsections (6) through (8), a claimant, estate, or trust may
carry forward, to the next three taxable years, the amount of the tax credit that exceeds the
taxpayer's income tax liability for the taxable year.
(6) A claimant, estate, or trust may not claim or carry forward a tax credit described in
Subsection (1)(a) in a taxable year during which the claimant, estate, or trust claims or carries
forward a tax credit under Section 
63N-2-213
.
(7) A claimant, estate, or trust may not claim a tax credit described in Subsection (1)(b)
in a taxable year during which the claimant, estate, or trust claims or carries forward a tax
credit under Section 
63N-2-213
.
(8) A claimant, estate, or trust may not claim or carry forward a tax credit available
under this section for a taxable year during which the claimant, estate, or trust claims the
targeted business income tax credit under Section 
59-10-1112
.
Section 27. Section 
59-10-1017
 is amended to read:
59-10-1017.
Utah Educational Savings Plan tax credit.
(1) As used in this section:
(a) "Account owner" means the same as that term is defined in Section 
53B-8a-102
.
(b) "Grantor trust" means the same as that term is defined in Section 
53B-8a-102.5
.
(c) "Higher education costs" means the same as that term is defined in Section
53B-8a-102.5
.
(d) "Joint filing status" means:
(i) spouses who file one return jointly under this chapter for a taxable year; or
(ii) a surviving spouse, as defined in Section (2)(a), Internal Revenue Code, who files a
single federal individual income tax return for the taxable year.
[
(d)
] 
(e)
 "Maximum amount of a qualified investment for the taxable year" means, for
a taxable year, the product of [
5%
] 
the percentage listed in Subsection 
59-10-104
(2)
 and:
(i) subject to Subsection (1)[
(d)
]
(e)
(iii), for a claimant, estate, or trust that is an account
owner, if that claimant, estate, or trust is other than [
husband and wife
] 
spouse
 account owners
who file [
a single
] 
one
 return jointly, the maximum amount of a qualified investment:
(A) listed in Subsection 
53B-8a-106
(1)(e)(ii); and
(B) increased or kept for that taxable year in accordance with Subsections
53B-8a-106
(1)(f) and (g);
(ii) subject to Subsection (1)[
(d)
]
(e)
(iii), for claimants who are [
husband and wife
]
spouse
 account owners who file [
a single
] 
one
 return jointly, the maximum amount of a
qualified investment:
(A) listed in Subsection 
53B-8a-106
(1)(e)(iii); and
(B) increased or kept for that taxable year in accordance with Subsections
53B-8a-106
(1)(f) and (g); or
(iii) for a grantor trust:
(A) if the owner of the grantor trust has a single filing status or head of household
filing status as defined in Section 
59-10-1018
, the amount described in Subsection
(1)[
(d)
]
(e)
(i); or
(B) if the owner of the grantor trust has a joint filing status as defined in Section
59-10-1018
, the amount described in Subsection (1)[
(d)
]
(e)
(ii).
[
(e)
] 
(f)
 "Owner of the grantor trust" means the same as that term is defined in Section
53B-8a-102.5
.
[
(f)
] 
(g)
 "Qualified investment" means the same as that term is defined in Section
53B-8a-102.5
.
(2) Except as provided in Section 
59-10-1002.2
 and subject to the other provisions of
this section, a claimant, estate, or trust that is an account owner may claim a nonrefundable tax
credit equal to the product of:
(a) the amount of a qualified investment made:
(i) during the taxable year; and
(ii) into an account owned by the claimant, estate, or trust; and
(b) [
5%
] 
the percentage listed in Subsection 
59-10-104
(2)
.
(3) A claimant, estate, or trust, or a person other than the claimant, estate, or trust, may
make a qualified investment described in Subsection (2).
(4) A claimant, estate, or trust that is an account owner may not claim a tax credit
under this section with respect to any portion of a qualified investment described in Subsection
(2) that a claimant, estate, trust, or person described in Subsection (3) deducts on a federal
income tax return.
(5) A tax credit under this section may not exceed the maximum amount of a qualified
investment for the taxable year.
(6) A claimant, estate, or trust that is an account owner may not carry forward or carry
back the tax credit under this section.
(7) A claimant, estate, or trust may claim a tax credit under this section in addition to
the tax credit described in Section 
59-10-1017.1
.
Section 28. Section 
59-10-1017.1
 is amended to read:
59-10-1017.1.
Student Prosperity Savings Program tax credit.
(1) As used in this section, "qualified donation" means an amount donated, in
accordance with Section 
53B-8a-203
, to the Student Prosperity Savings Program created in
Section 
53B-8a-202
.
(2) A claimant, estate, or trust may claim a nonrefundable tax credit for a qualified
donation.
(3) The tax credit equals the product of:
(a) the qualified donation; and
(b) [
5%
] 
the percentage listed in Subsection 
59-10-104
(2)
.
(4) A claimant, estate, or trust may not claim a tax credit under this section with
respect to any portion of a qualified donation that a claimant, estate, or trust deducts on a
federal income tax return.
(5) A claimant, estate, or trust may not carry forward or carry back the portion of the
tax credit allowed by this section that exceeds the claimant's, estate's, or trust's tax liability for
the taxable year in which the claimant, estate, or trust claims the tax credit.
(6) A claimant, estate, or trust may claim a tax credit under this section in addition to
the tax credit described in Section 
59-10-1017
.
Section 29. Section 
59-10-1018
 is amended to read:
59-10-1018.
Definitions -- Nonrefundable taxpayer tax credits.
(1) As used in this section:
(a) "Head of household filing status" means a head of household, as defined in Section
2(b), Internal Revenue Code, who files [
a single
] 
one
 federal individual income tax return for
the taxable year.
(b) "Joint filing status" means[
: (i)
] spouses who file [
a single
] 
one
 return jointly under
this chapter for a taxable year[
; or
]
.
[
(ii) a surviving spouse, as defined in Section 2(a), Internal Revenue Code, who files a
single federal individual income tax return for the taxable year.
]
(c) "Qualifying dependent" means an individual with respect to whom the claimant is
allowed to claim a tax credit under Section 24, Internal Revenue Code, on the claimant's
federal individual income tax return for the taxable year.
(d) "Qualifying widower filing status" means a surviving spouse, as defined in Section
(2)(a), Internal Revenue Code, who files a single federal individual income tax return for the
taxable year.
[
(d)
] 
(e)
 "Single filing status" means:
(i) a single individual who files a single federal individual income tax return for the
taxable year; or
(ii) a married individual who:
(A) does not file a single federal individual income tax return jointly with that married
individual's spouse for the taxable year; and
(B) files a single federal individual income tax return for the taxable year.
[
(e)
] 
(f)
 "State or local income tax" means the lesser of:
(i) the amount of state or local income tax that the claimant:
(A) pays for the taxable year; and
(B) reports on the claimant's federal individual income tax return for the taxable year,
regardless of whether the claimant is allowed an itemized deduction on the claimant's federal
individual income tax return for the taxable year for the full amount of state or local income tax
paid; and
(ii) $10,000.
[
(f)
] 
(g)
 (i) "Utah itemized deduction" means the amount the claimant deducts as
allowed as an itemized deduction on the claimant's federal individual income tax return for that
taxable year minus any amount of state or local income tax for the taxable year.
(ii) "Utah itemized deduction" does not include any amount of qualified business
income that the claimant subtracts as allowed by Section 199A, Internal Revenue Code, on the
claimant's federal income tax return for that taxable year.
[
(g)
] 
(h)
 "Utah personal exemption" means, subject to Subsection (6), [
$565
] 
$2,500
multiplied by [
the number of the claimant's qualifying dependents.
]
:
(i) for a claimant who has a joint filing status and no qualifying dependents, one; or
(ii) for a claimant who has qualifying dependents, the number of the claimant's
qualifying dependents.
(2) Except as provided in Section 
59-10-1002.2
, and subject to Subsections (3) through
(5), a claimant may claim a nonrefundable tax credit against taxes otherwise due under this part
equal to the sum of:
(a) (i) for a claimant that deducts the standard deduction on the claimant's federal
individual income tax return for the taxable year, 6% of the amount the claimant deducts as
allowed as the standard deduction on the claimant's federal individual income tax return for
that taxable year; or
(ii) for a claimant that itemizes deductions on the claimant's federal individual income
tax return for the taxable year, 6% of the amount of the claimant's Utah itemized deduction;
and
(b) 6% of the claimant's Utah personal exemption.
(3) A claimant may not carry forward or carry back a tax credit under this section.
(4) The tax credit allowed by Subsection (2) shall be reduced by $.013 for each dollar
by which a claimant's state taxable income exceeds:
(a) for a claimant who has a single filing status, [
$12,000
] 
$14,879
;
(b) for a claimant who has a head of household filing status, [
$18,000
] 
$22,318
; or
(c) for a claimant who has a joint filing status[
, $24,000
] 
or a qualifying widower filing
status, $29,758
.
(5) (a) For a taxable year beginning on or after January 1, [
] 
, the commission
shall increase or decrease annually the following dollar amounts by a percentage equal to the
percentage difference between the consumer price index for the preceding calendar year and
the consumer price index for calendar year [
] 
:
(i) the dollar amount listed in Subsection (4)(a); and
(ii) the dollar amount listed in Subsection (4)(b).
(b) After the commission increases or decreases the dollar amounts listed in Subsection
(5)(a), the commission shall round those dollar amounts listed in Subsection (5)(a) to the
nearest whole dollar.
(c) After the commission rounds the dollar amounts as required by Subsection (5)(b),
the commission shall increase or decrease the dollar amount listed in Subsection (4)(c) so that
the dollar amount listed in Subsection (4)(c) is equal to the product of:
(i) the dollar amount listed in Subsection (4)(a); and
(ii) two.
(d) For purposes of Subsection (5)(a), the commission shall calculate the consumer
price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
(6) (a) For a taxable year beginning on or after January 1, [
] 
, the commission
shall increase annually the Utah personal exemption amount listed in Subsection (1)[
(g)
]
(h)
 by
a percentage equal to the percentage by which the consumer price index for the preceding
calendar year exceeds the consumer price index for calendar year [
] 
.
(b) After the commission increases the Utah personal exemption amount as described
in Subsection (6)(a), the commission shall round the Utah personal exemption amount to the
nearest whole dollar.
(c) For purposes of Subsection (6)(a), the commission shall calculate the consumer
price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
Section 30. Section 
59-10-1018.1
 is enacted to read:
 59-10-1018.1.
Taxpayer tax credit rebate.
(1) As used in this section:
(a) "Head of household filing status" means the same as that term is defined in Section
59-10-1018
.
(b) "Joint filing status" means the same as that term is defined in Section 
59-10-1018
.
(c) "Qualifying dependent" means the same as that term is defined in Section
59-10-1018
.
(d) "Qualifying filer" means a person who files a return under this chapter:
(i) (A) for a taxable year beginning on or after January 1, 2018, and on or before
December 31, 2018; and
(B) on or before the deadline described in Section 
59-10-516
; or
(ii) (A) for a taxable year beginning on or after January 1, 2019, and on or before
December 31, 2019; and
(B) on or before the deadline described in Section 
59-10-514
.
(e) "Qualifying widower filing status" means the same as that term is defined in
Section 
59-10-1018
.
(f) "Single filing status" means the same as that term is defined in Section 
59-10-1018
.
(g) "Utah personal exemption rebate" means $1,285 multiplied by the number of the
claimant's qualifying dependents.
(2) Subject to the other provisions of this section, the commission shall provide a
rebate to each qualifying filer equal to the lesser of:
(a) the qualifying filer's tax liability for:
(i) the taxable year beginning on or after January 1, 2018, and on or before December
31, 2018; or
(ii) if the claimant did not file a return under this chapter for the taxable year described
in Subsection (2)(a), the taxable year beginning on or after January 1, 2019, and on or before
December 31, 2019; and
(b) 6% of the claimant's Utah personal exemption rebate.
(3) The rebate described in Subsection (2) is reduced by $.013 for each dollar by which
the claimant's state taxable income exceeds:
(a) for a claimant who has a single filing status, $14,879;
(b) for a claimant who has a head of household filing status, $22,318; or
(c) for a claimant who has a joint filing status or a qualifying widower filing status,
$29,758.
(4) For each return filed under this chapter, no more than one qualifying filer may
receive a rebate under this section.
(5) The commission shall provide a qualifying filer who is a nonresident individual or
a part-year resident individual an apportioned amount of the rebate described in this section
equal to:
(a) for a nonresident individual, the product of:
(i) the state income tax percentage for the nonresident individual; and
(ii) the amount of the rebate that the commission would have provided the nonresident
individual but for the apportionment requirements described in this subsection; or
(b) for a part-year resident individual, the product of:
(i) the state income tax percentage for the part-year resident individual; and
(ii) the amount of the rebate that the commission would have provided the part-year
resident individual but for the apportionment requirements described in this subsection.
(6) If the value of a qualifying filer's rebate under this section is less than $25, the
qualifying filer is not eligible to receive the rebate.
(7) The commission shall comply with Subsection (2) on or before:
(a) April 1, 2020; or
(b) if the claimant did not file a return under this chapter for the taxable year beginning
on or after January 1, 2018, and on or before December 31, 2018, July 1, 2020.
Section 31. Section 
59-10-1019
 is amended to read:
59-10-1019.
Definitions -- Nonrefundable retirement tax credit.
(1) As used in this section:
(a) "Eligible 
over
 age 65 [
or older
] retiree" means a claimant, regardless of whether
that claimant is retired, who[
: (i) is 65 years of age or older; and (ii)
] was born on or before
December 31, 1952.
[
(b) (i) "Eligible retirement income" means income received by an eligible under age
retiree as a pension or annuity if that pension or annuity is:
]
[
(A) paid to the eligible under age 65 retiree or the surviving spouse of an eligible
under age 65 retiree; and
]
[
(B) (I) paid from an annuity contract purchased by an employer under a plan that
meets the requirements of Section 404(a)(2), Internal Revenue Code;
]
[
(II) purchased by an employee under a plan that meets the requirements of Section
408, Internal Revenue Code; or
]
[
(III) paid by:
]
[
(Aa) the United States;
]
[
(Bb) a state or a political subdivision of a state; or
]
[
(Cc) the District of Columbia.
]
[
(ii) "Eligible retirement income" does not include amounts received by the spouse of a
living eligible under age 65 retiree because of the eligible under age 65 retiree's having been
employed in a community property state.
]
[
(c) "Eligible under age 65 retiree" means a claimant, regardless of whether that
claimant is retired, who:
]
[
(i) is younger than 65 years of age;
]
[
(ii) was born on or before December 31, 1952; and
]
[
(iii) has eligible retirement income for the taxable year for which a tax credit is
claimed under this section.
]
[
(d)
] 
(b)
 "Head of household filing status" [
is as
] 
means the same as that term is
defined in Section 
59-10-1018
.
[
(e) "Joint filing status" is as defined in Section 
59-10-1018
.
]
(c) "Joint filing status" means:
(i) spouses who file one return jointly under this chapter for a taxable year; or
(ii) a surviving spouse, as defined in Section (2)(a), Internal Revenue Code, who files a
single federal individual income tax return for the taxable year.
[
(f)
] 
(d)
 "Married filing separately status" means a married individual who:
(i) does not file a single federal individual income tax return jointly with that married
individual's spouse for the taxable year; and
(ii) files a single federal individual income tax return for the taxable year.
[
(g)
] 
(e)
 "Modified adjusted gross income" means the sum of an eligible 
over
 age 65
[
or older retiree's or eligible under age 65 retiree's
] 
retiree's
:
(i) adjusted gross income for the taxable year for which a tax credit is claimed under
this section;
(ii) any interest income that is not included in adjusted gross income for the taxable
year described in Subsection (1)[
(g)
]
(e)
(i); and
(iii) any addition to adjusted gross income required by Section 
59-10-114
 for the
taxable year described in Subsection (1)[
(g)
]
(e)
(i).
[
(h)
] 
(f)
 "Single filing status" means a single individual who files a single federal
individual income tax return for the taxable year.
(2) Except as provided in Section 
59-10-1002.2
 [
and subject to Subsections (3) through
(5): (a)
] 
and Subsections (3) and (4),
 each eligible 
over
 age 65 [
or older
] retiree may claim a
nonrefundable tax credit of $450 against taxes otherwise due under this part[
; or
]
.
[
(b) each eligible under age 65 retiree may claim a nonrefundable tax credit against
taxes otherwise due under this part in an amount equal to the lesser of:
]
[
(i) $288; or
]
[
(ii) the product of:
]
[
(A) the eligible under age 65 retiree's eligible retirement income for the taxable year
for which the eligible under age 65 retiree claims a tax credit under this section; and
]
[
(B) 6%.
]
[
(3) A tax credit under this section may not be carried forward or carried back.
]
(3) An eligible over age 65 retiree may not:
(a) carry forward or carry back a tax credit under this section; or
(b) claim a tax credit under this section if a tax credit is claimed under Section
59-10-1041
 on the same return.
(4) The [
sum of the tax credits
] 
tax credit
 allowed by Subsection (2) claimed on [
one
] 
a
return filed under this part shall be reduced by $.025 for each dollar by which modified
adjusted gross income for purposes of the return exceeds:
(a) for a federal individual income tax return that is allowed a married filing separately
status, $16,000;
(b) for a federal individual income tax return that is allowed a single filing status,
$25,000;
(c) for a federal individual income tax return that is allowed a head of household filing
status, $32,000; or
(d) for a return under this chapter that is allowed a joint filing status, $32,000.
[
(5) For purposes of determining the ownership of items of retirement income under
this section, common law doctrine shall be applied in all cases even though some items of
retirement income may have originated from service or investments in a community property
state.
]
Section 32. Section 
59-10-1022
 is amended to read:
59-10-1022.
Nonrefundable tax credit for capital gain transactions.
(1) As used in this section:
(a) (i) "Capital gain transaction" means a transaction that results in a:
(A) short-term capital gain; or
(B) long-term capital gain.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "transaction."
(b) "Commercial domicile" means the principal place from which the trade or business
of a Utah small business corporation is directed or managed.
(c) "Long-term capital gain" is as defined in Section 1222, Internal Revenue Code.
(d) "Qualifying stock" means stock that is:
(i) (A) common; or
(B) preferred;
(ii) as defined by the commission by rule made in accordance with Title 63G, Chapter
3, Utah Administrative Rulemaking Act, originally issued to:
(A) a claimant, estate, or trust; or
(B) a partnership if the claimant, estate, or trust that claims a tax credit under this
section:
(I) was a partner on the day on which the stock was issued; and
(II) remains a partner until the last day of the taxable year for which the claimant,
estate, or trust claims a tax credit under this section; and
(iii) issued:
(A) by a Utah small business corporation;
(B) on or after January 1, 2008; and
(C) for:
(I) money; or
(II) other property, except for stock or securities.
(e) "Short-term capital gain" is as defined in Section 1222, Internal Revenue Code.
(f) (i) "Utah small business corporation" means a corporation that:
(A) except as provided in Subsection (1)(f)(ii), is a small business corporation as
defined in Section 1244(c)(3), Internal Revenue Code;
(B) except as provided in Subsection (1)(f)(iii), meets the requirements of Section
1244(c)(1)(C), Internal Revenue Code; and
(C) has its commercial domicile in this state.
(ii) The dollar amount listed in Section 1244(c)(3)(A) is considered to be $2,500,000.
(iii) The phrase "the date the loss on such stock was sustained" in Sections
1244(c)(1)(C) and 1244(c)(2), Internal Revenue Code, is considered to be "the last day of the
taxable year for which the claimant, estate, or trust claims a tax credit under this section."
(2) For taxable years beginning on or after January 1, 2008, a claimant, estate, or trust
that meets the requirements of Subsection (3) may claim a nonrefundable tax credit equal to the
product of:
(a) the total amount of the claimant's, estate's, or trust's short-term capital gain or
long-term capital gain on a capital gain transaction that occurs on or after January 1, 2008; and
(b) [
5%
] 
the percentage listed in Subsection 
59-10-104
(2)
.
(3) For purposes of Subsection (2), a claimant, estate, or trust may claim the
nonrefundable tax credit allowed by Subsection (2) if:
(a) 70% or more of the gross proceeds of the capital gain transaction are expended:
(i) to purchase qualifying stock in a Utah small business corporation; and
(ii) within a 12-month period after the day on which the capital gain transaction occurs;
and
(b) prior to the purchase of the qualifying stock described in Subsection (3)(a)(i), the
claimant, estate, or trust did not have an ownership interest in the Utah small business
corporation that issued the qualifying stock.
(4) A claimant, estate, or trust may not carry forward or carry back a tax credit under
this section.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules:
(a) defining the term "gross proceeds"; and
(b) prescribing the circumstances under which a claimant, estate, or trust has an
ownership interest in a Utah small business corporation.
Section 33. Section 
59-10-1023
 is amended to read:
59-10-1023.
Nonrefundable tax credit for amounts paid under a health benefit
plan.
(1) As used in this section:
(a) "Claimant with dependents" means a claimant:
(i) regardless of the claimant's filing status for purposes of filing a federal individual
income tax return for the taxable year; and
(ii) who claims [
one or more dependents under Section 151
] 
a tax credit under Section
, Internal Revenue Code, [
as allowed
] on the claimant's federal individual income tax return
for the taxable year.
(b) "Eligible insured individual" means:
(i) the claimant who is insured under a health benefit plan;
(ii) the spouse of the claimant described in Subsection (1)(b)(i) if:
(A) the claimant files [
a single
] 
one
 return jointly under this chapter with the claimant's
spouse for the taxable year; and
(B) the spouse is insured under the health benefit plan described in Subsection
(1)(b)(i); or
(iii) a dependent of the claimant described in Subsection (1)(b)(i) if:
(A) the claimant claims the dependent under Section 151, Internal Revenue Code, as
allowed on the claimant's federal individual income tax return for the taxable year; and
(B) the dependent is insured under the health benefit plan described in Subsection
(1)(b)(i).
(c) "Excluded expenses" means an amount a claimant pays for insurance offered under
a health benefit plan for a taxable year if:
(i) the claimant claims a tax credit for that amount under Section 35, Internal Revenue
Code:
(A) on the claimant's federal individual income tax return for the taxable year; and
(B) with respect to an eligible insured individual;
(ii) the claimant deducts that amount under Section 162 or 213, Internal Revenue
Code:
(A) on the claimant's federal individual income tax return for the taxable year; and
(B) with respect to an eligible insured individual; or
(iii) the claimant excludes that amount from gross income under Section 106 or 125,
Internal Revenue Code, with respect to an eligible insured individual.
(d) (i) "Health benefit plan" is as defined in Section 
31A-1-301
.
(ii) "Health benefit plan" does not include equivalent self-insurance as defined by the
Insurance Department by rule made in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act.
(e) "Joint claimant with no dependents" means [
a husband and wife
] 
spouses
 who:
(i) file [
a single
] 
one
 return jointly under this chapter for the taxable year; and
(ii) do not claim a dependent under Section 151, Internal Revenue Code, on the
[
husband's and wife's
] 
spouses'
 federal individual income tax return for the taxable year.
(f) "Single claimant with no dependents" means:
(i) a single individual who:
(A) files a single federal individual income tax return for the taxable year; and
(B) does not claim a dependent under Section 151, Internal Revenue Code, on the
single individual's federal individual income tax return for the taxable year;
(ii) a head of household:
(A) as defined in Section 2(b), Internal Revenue Code, who files a single federal
individual income tax return for the taxable year; and
(B) who does not claim a dependent under Section 151, Internal Revenue Code, on the
head of household's federal individual income tax return for the taxable year; or
(iii) a married individual who:
(A) does not file a single federal individual income tax return jointly with that married
individual's spouse for the taxable year; and
(B) does not claim a dependent under Section 151, Internal Revenue Code, on that
married individual's federal individual income tax return for the taxable year.
(2) Subject to Subsection (3), and except as provided in Subsection (4), [
for taxable
years beginning on or after January 1, 2009,
] a claimant may claim a nonrefundable tax credit
equal to the product of:
(a) the difference between:
(i) the total amount the claimant pays during the taxable year for:
(A) insurance offered under a health benefit plan; and
(B) an eligible insured individual; and
(ii) excluded expenses; and
(b) [
5%
] 
the percentage listed in Subsection 
59-10-104
(2)
.
(3) The maximum amount of a tax credit described in Subsection (2) a claimant may
claim on a return for a taxable year is:
(a) for a single claimant with no dependents, $300;
(b) for a joint claimant with no dependents, $600; or
(c) for a claimant with dependents, $900.
(4) A claimant may not claim a tax credit under this section if the claimant is eligible to
participate in insurance offered under a health benefit plan maintained and funded in whole or
in part by:
(a) the claimant's employer; or
(b) another person's employer.
(5) A claimant may not carry forward or carry back a tax credit under this section.
Section 34. Section 
59-10-1028
 is amended to read:
59-10-1028.
Nonrefundable tax credit for capital gain transactions on the
exchange of one form of legal tender for another form of legal tender.
(1) As used in this section:
(a) "Capital gain transaction" means a transaction that results in a:
(i) short-term capital gain; or
(ii) long-term capital gain.
(b) "Long-term capital gain" [
is as defined
] 
means the same as that term is defined
 in
Section 1222, Internal Revenue Code.
(c) "Long-term capital loss" [
is as defined
] 
means the same as that term is defined
 in
Section 1222, Internal Revenue Code.
(d) "Net capital gain" means the amount by which the sum of long-term capital gains
and short-term capital gains on a claimant's, estate's, or trust's transactions from exchanges
made for a taxable year of one form of legal tender for another form of legal tender exceeds the
sum of long-term capital losses and short-term capital losses on those transactions for that
taxable year.
(e) "Short-term capital loss" [
is as defined
] 
means the same as that term is defined
 in
Section 1222, Internal Revenue Code.
(f) "Short-term capital gain" [
is as defined
] 
means the same as that term is defined
 in
Section 1222, Internal Revenue Code.
(2) Except as provided in Section 
59-10-1002.2
, [
for taxable years beginning on or
after January 1, 2012,
] a claimant, estate, or trust may claim a nonrefundable tax credit equal to
the product of:
(a) to the extent a net capital gain is included in taxable income, the amount of the
claimant's, estate's, or trust's net capital gain on capital gain transactions from exchanges made
on or after January 1, 2012, for a taxable year, of one form of legal tender for another form of
legal tender; and
(b) [
5%
] 
the percentage listed in Subsection 
59-10-104
(2)
.
(3) A claimant, estate, or trust may not carry forward or carry back a tax credit under
this section.
(4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules to implement this section.
Section 35. Section 
59-10-1033
 is amended to read:
59-10-1033.
Tax credit related to alternative fuel heavy duty vehicles.
(1) As used in this section:
(a) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air
Conservation Act.
(b) "Director" means the director of the Division of Air Quality appointed under
Section 
19-2-107
.
(c) "Heavy duty vehicle" means a commercial category 7 or 8 vehicle, according to
vehicle classifications established by the Federal Highway Administration.
(d) "Natural gas" includes compressed natural gas and liquified natural gas.
(e) "Qualified heavy duty vehicle" means a heavy duty vehicle that:
(i) has never been titled or registered and has been driven less than 7,500 miles; and
(ii) is fueled by natural gas , has a 100% electric drivetrain, or has a hydrogen-electric
drivetrain. 
(f) "Qualified purchase" means the purchase of a qualified heavy duty vehicle.
(g) "Qualified taxpayer" means a claimant, estate, or trust that:
(i) purchases a qualified heavy duty vehicle; and
(ii) receives a tax credit certificate from the director.
(h) "Small fleet" means 40 or fewer heavy duty vehicles registered in the state and
owned by a single claimant, estate, or trust.
(i) "Tax credit certificate" means a certificate issued by the director certifying that a
claimant, estate, or trust is entitled to a tax credit as provided in this section and stating the
amount of the tax credit.
(2) A qualified taxpayer may claim a nonrefundable tax credit against tax otherwise
due under this chapter:
(a) in an amount equal to:
(i) $25,000, if the qualified purchase of a natural gas heavy duty vehicle occurs during
calendar year 2015 or calendar year 2016;
(ii) $25,000, if the qualified purchase occurs during calendar year 2017; 
(iii) $20,000, if the qualified purchase occurs during calendar year 2018;
(iv) $18,000, if the qualified purchase occurs during calendar year 2019; and
(v) $15,000, if the qualified purchase occurs during calendar year 2020; and
(b) if the qualified taxpayer certifies under oath that over 50% of the miles that the
heavy duty vehicle that is the subject of the qualified purchase will travel annually will be
within the state.
(3) (a) Except as provided in Subsection (3)(b), a claimant, estate, or trust may not
submit an application for, and the director may not issue to the claimant, estate, or trust, a tax
credit certificate under this section in any taxable year for a qualified purchase if the director
has already issued tax credit certificates to the claimant, estate, or trust for 10 qualified
purchases in the same taxable year.
(b) If, by May 1 of any year, more than 30% of the aggregate annual total amount of
tax credits under Subsection (5) has not been claimed, a claimant, estate, or trust may submit
an application for, and the director may issue to the claimant, estate, or trust, one or more tax
credit certificates for up to eight additional qualified purchases, even if the director has already
issued to that claimant, estate, or trust tax credit certificates for the maximum number of
qualified purchases allowed under Subsection (3)(a).
(4) (a) Subject to Subsection (4)(b), the director shall reserve 25% of all tax credits
available under this section for qualified taxpayers with a small fleet.
(b) Subsection (4)(a) does not prevent a claimant, estate, or trust from submitting an
application for, or the director from issuing, a tax credit certificate if, before October 1,
qualified taxpayers with a small fleet have not reserved under Subsection (5)(b) tax credits for
the full amount reserved under Subsection (4)(a).
(5) (a) The aggregate annual total amount of tax credits represented by tax credit
certificates that the director issues under this section and Section 
59-7-618
 may not exceed
$500,000.
(b) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, make rules to establish a process under which a claimant, estate, or trust may
reserve a potential tax credit under this section for a limited time to allow the claimant, estate,
or trust to make a qualified purchase with the assurance that the aggregate limit under
Subsection (5)(a) will not be met before the claimant, estate, or trust is able to submit an
application for a tax credit certificate.
(6) (a) (i) A claimant, estate, or trust wishing to claim a tax credit under this section
shall, using forms the board requires by rule:
(A) submit to the director an application for a tax credit;
(B) provide the director proof of a qualified purchase; and
(C) submit to the director the certification under oath required under Subsection (2)(b).
(ii) Upon receiving the application, proof, and certification required under Subsection
(6)(a)(i), the director shall provide the claimant, estate, or trust a written statement from the
director acknowledging receipt of the proof.
(b) If the director determines that a claimant, estate, or trust qualifies for a tax credit
under this section, the director shall:
(i) determine the amount of tax credit the claimant, estate, or trust is allowed under this
section; and
(ii) provide the claimant, estate, or trust with a written tax credit certificate:
(A) stating that the claimant, estate, or trust has qualified for a tax credit; and
(B) showing the amount of tax credit for which the claimant, estate, or trust has
qualified under this section.
(c) A qualified taxpayer shall retain the tax credit certificate.
(d) The director shall at least annually submit to the commission a list of all qualified
taxpayers to which the director has issued a tax credit certificate and the amount of each tax
credit represented by the tax credit certificates.
(7) The tax credit under this section is allowed only:
(a) against a tax owed under this chapter in the taxable year by the qualified taxpayer;
(b) for the taxable year in which the qualified purchase occurs; and
(c) once per vehicle.
(8) A qualified taxpayer may not assign a tax credit or a tax credit certificate under this
section to another person.
(9) If the qualified taxpayer receives a tax credit certificate under this section that
allows a tax credit in an amount that exceeds the qualified taxpayer's tax liability under this
chapter for a taxable year, the qualified taxpayer may carry forward the amount of the tax credit
that exceeds the tax liability for a period that does not exceed the next five taxable years.
[
(10) (a) In accordance with any rules prescribed by the commission under Subsection
(10)(b), the Division of Finance shall transfer at least annually from the General Fund into the
Education Fund the aggregate amount of all tax credits claimed under this section.
]
[
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may make rules for making a transfer from the General Fund into the
Education Fund as required by Subsection (10)(a).
]
Section 36. Section 
59-10-1035
 is amended to read:
59-10-1035.
Nonrefundable tax credit for contribution to state Achieving a Better
Life Experience Program account.
(1) As used in this section:
(a) "Account" means an account in a qualified ABLE program where the designated
beneficiary of the account is a resident of this state.
(b) "Contributor" means a claimant, estate, or trust that:
(i) makes a contribution to an account; and
(ii) receives a statement from the qualified ABLE program itemizing the contribution.
(c) "Designated beneficiary" means the same as that term is defined in 26 U.S.C. Sec.
529A.
(d) "Qualified ABLE program" means the same as that term is defined in Section
35A-12-102
.
(2) A contributor to an account may claim a nonrefundable tax credit as provided in
this section.
(3) Subject to the other provisions of this section, the tax credit is equal to the product
of:
(a) [
5%
] 
the percentage listed in Subsection 
59-10-104
(2)
; and
(b) the total amount of contributions:
(i) the contributor makes for the taxable year; and
(ii) for which the contributor receives a statement from the qualified ABLE program
itemizing the contributions.
(4) A contributor may not claim a tax credit under this section:
(a) for an amount of excess contribution to an account that is returned to the
contributor; or
(b) with respect to an amount the contributor deducts on a federal income tax return.
(5) A tax credit under this section may not be carried forward or carried back.
Section 37. Section 
59-10-1036
 is amended to read:
59-10-1036.
Nonrefundable tax credit for military survivor benefits.
(1) As used in this section:
(a) "Dependent child" means the same as that term is defined in 10 U.S.C. Sec. 1447.
(b) "Reserve components" means the same as that term is described in 10 U.S.C. Sec.
10101.
(c) "Surviving spouse" means the same as that term is defined in 10 U.S.C. Sec. 1447.
(d) "Survivor benefits" means the amount paid by the federal government in
accordance with 10 U.S.C. Secs. 1447 through 1455.
(2) A surviving spouse or dependent child may claim a nonrefundable tax credit for
survivor benefits if the benefits are paid due to:
(a) the death of a member of the armed forces or reserve components while on active
duty; or
(b) the death of a member of the reserve components that results from a
service-connected cause while performing inactive duty training.
(3) The tax credit described in Subsection (2) is equal to the product of:
(a) the amount of survivor benefits that the surviving spouse or dependent child
received during the taxable year; and
(b) [
5%
] 
the percentage listed in Subsection 
59-10-104
(2)
.
(4) The tax credit described in Subsection (2):
(a) may not be carried forward or carried back; and
(b) applies to a taxable year beginning on or after January 1, 2017.
Section 38. Section 
59-10-1041
 is enacted to read:
 59-10-1041.
Nonrefundable tax credit for social security benefits.
(1) As used in this section:
(a) "Head of household filing status" means the same as that term is defined in Section
59-10-1018
.
(b) "Joint filing status" means:
(i) spouses who file one return jointly under this chapter for a taxable year; or
(ii) a surviving spouse, as defined in Section (2)(a), Internal Revenue Code, who files a
single federal individual income tax return for the taxable year.
(c) "Married filing separately status" means a married individual who:
(i) does not file a single federal individual income tax return jointly with that married
individual's spouse for the taxable year; and
(ii) files a single federal individual income tax return for the taxable year.
(d) "Modified adjusted gross income" means the sum of a claimant's:
(i) adjusted gross income for the taxable year for which a tax credit is claimed under
this section;
(ii) any interest income that is not included in adjusted gross income for the taxable
year described in Subsection (1)(d)(i); and
(iii) any addition to adjusted gross income required by Section 
59-10-114
 for the
taxable year described in Subsection (1)(d)(i).
(e) "Single filing status" means a single individual who files a single federal individual
income tax return for the taxable year.
(f) "Social security benefit" means an amount received by a claimant as a monthly
benefit in accordance with the Social Security Act, 42 U.S.C. Sec. 401 et seq.
(2) Except as provided in Section 
59-10-1002.2
 and Subsections (3) and (4), a claimant
may claim a nonrefundable tax credit against taxes otherwise due under this part equal to the
product of:
(a) the percentage listed in Subsection 
59-10-104
(2); and
(b) the claimant's social security benefit that is included in adjusted gross income on
the claimant's federal income tax return for the taxable year.
(3) A claimant may not:
(a) carry forward or carry back a tax credit under this section; or
(b) claim a tax credit under this section if a tax credit is claimed under Section
59-10-1019
 on the same return.
(4) The tax credit allowed by Subsection (2) claimed on a return filed under this part
shall be reduced by $.025 for each dollar by which modified adjusted gross income for
purposes of the return exceeds:
(a) for a return that has a married filing separately status, $24,000;
(b) for a return that has a single filing status, $30,000;
(c) for a return that has a head of household filing status, $48,000; or
(d) for a return that has a joint filing status, $48,000.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules governing the calculation and method for claiming a tax credit
described in this section.
Section 39. Section 
59-10-1102.1
 is enacted to read:
 59-10-1102.1.
Apportionment of tax credit.
(1) A part-year resident individual who claims the tax credit described in Section
59-10-1113
 may only claim an apportioned amount of the tax credit equal to the product of:
(a) the state income tax percentage for the part-year resident individual; and
(b) the amount of the tax credit that the part-year resident individual would have been
allowed to claim but for the apportionment requirement of this section.
(2) A nonresident individual or a part-year resident individual who claims the tax credit
described in Section 
59-10-1114
 may only claim an apportioned amount of the tax credit equal
to the product of:
(a) the state income tax percentage for the nonresident individual or the state income
tax percentage for the part-year resident individual; and
(b) the amount of the tax credit that the nonresident individual or the part-year resident
individual would have been allowed to claim but for the apportionment requirement of this
section.
Section 40. Section 
59-10-1105
 is amended to read:
59-10-1105.
Tax credit for hand tools used in farming operations -- Procedures
for refund -- Transfers from General Fund to Education Fund -- Rulemaking authority.
(1) [
For a taxable year beginning on or after January 1, 2004, a
] 
A
 claimant, estate, or
trust may claim a refundable tax credit:
(a) as provided in this section;
(b) against taxes otherwise due under this chapter; and
(c) in an amount equal to the amount of tax the claimant, estate, or trust pays:
(i) on a purchase of a hand tool:
(A) if the purchase is made on or after July 1, 2004;
(B) if the hand tool is used or consumed primarily and directly in a farming operation
in the state; and
(C) if the unit purchase price of the hand tool is more than $250; and
(ii) under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
(1)(c)(i).
(2) A claimant, estate, or trust:
(a) shall retain the following to establish the amount of tax the claimant, estate, or trust
paid under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
(1)(c)(i):
(i) a receipt;
(ii) an invoice; or
(iii) a document similar to a document described in Subsection (2)(a)(i) or (ii); and
(b) may not carry forward or carry back a tax credit under this section.
(3) (a) In accordance with any rules prescribed by the commission under Subsection
(3)(b)[
: (i)
]
,
 the commission shall make a refund to a claimant, estate, or trust that claims a tax
credit under this section if the amount of the tax credit exceeds the claimant's, estate's, or trust's
tax liability under this chapter[
; and
]
.
[
(ii) the Division of Finance shall transfer at least annually from the General Fund into
the Education Fund an amount equal to the aggregate amount of all tax credits claimed under
this section.
]
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules providing procedures for making[
: (i)
] a refund to a claimant,
estate, or trust as required by Subsection (3)(a)[
(i); or
]
.
[
(ii) transfers from the General Fund into the Education Fund as required by
Subsection (3)(a)(ii).
]
Section 41. Section 
59-10-1113
 is enacted to read:
 59-10-1113.
Refundable grocery tax credit.
(1) As used in this section:
(a) "Federal poverty level" means the poverty guidelines established by the Secretary of
the United States Department of Health and Human Services under 42 U.S.C. Sec. 9909(2).
(b) "Modified adjusted gross income" means the sum of a claimant's:
(i) adjusted gross income for the taxable year for which a tax credit is claimed under
this section;
(ii) any interest income that is not included in adjusted gross income for the taxable
year described in Subsection (1)(b)(i); and
(iii) any addition to adjusted gross income required by Section 
59-10-114
 for the
taxable year described in Subsection (1)(b)(i).
(c) "Phaseout amount" means an amount equal to 0.0035% of the amount calculated
under Subsection (2).
(d) "Qualifying dependent" means the same as that term is defined in Section
59-10-1018
.
(e) "Qualifying household member" means:
(i) the qualifying individual;
(ii) the qualifying individual's spouse, if the qualifying individual:
(A) files one return jointly under this chapter with the qualifying individual's spouse
for a taxable year; or
(B) is a surviving spouse, as defined in Section 2(a), Internal Revenue Code, who files
a single federal individual income tax return for a taxable year; and
(iii) a qualifying dependent.
(f) "Qualifying individual" means a resident individual who is not a qualifying
dependent.
(2) Subject to Section 
59-10-1102.1
 and the provisions of this section, a qualifying
individual may claim a refundable grocery tax credit equal to the sum of:
(a) $125 multiplied by the number of qualifying household members, up to four; and
(b) $50 multiplied by the number of qualifying household members that exceeds four.
(3) (a) If a qualifying household member was incarcerated for any part of the taxable
year for which the qualifying individual claims the grocery tax credit, the qualifying
individual's credit for the qualifying household member is reduced by an amount proportionate
to the time the qualifying household member was incarcerated during the taxable year.
(b) For purposes of calculating the proportionate amount under Subsection (3)(a), the
qualifying household member who was incarcerated is considered:
(i) one of the qualifying household members described in Subsection (2)(a); or
(ii) if four other qualifying household members were incarcerated for part of the
taxable year and each considered one of the four qualifying household members described in
Subsection (2)(a), one of the qualifying household members described in Subsection (2)(b).
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules for calculating the proportionate amount described in this
subsection.
(4) The tax credit described in this section is reduced by the phaseout amount for each
dollar by which the claimant's modified adjusted gross income exceeds the lesser of:
(a) 175% of the federal poverty level for the claimant's household size; or
(b) 175% of the federal poverty level for a household with five individuals.
(5) (a) Except as provided in Subsection (5)(b), to claim the tax credit described in this
section, a qualifying individual shall file a return under this chapter.
(b) A qualifying individual who is not required to file a return under this chapter for the
taxable year in which the qualifying individual claims a credit under this section, may claim the
tax credit described in this section by filing a form prescribed by the commission.
(6) For each return filed under this chapter, no more than one qualifying individual
may receive a credit under this section.
Section 42. Section 
59-10-1113.1
 is enacted to read:
 59-10-1113.1.
Additional grocery tax credit.
(1) As used in this section:
(a) "2019 credit amount" means the amount of a grocery tax credit an individual could
have claimed for a taxable year beginning on or after January 1, 2019, and on or before
December 31, 2019, if the grocery tax credit had been in effect, without applying the provisions
of Subsection 
59-10-1113
(3).
(b) "2019 qualifying individual" means a qualifying individual as defined in Section
59-10-1113
 who files a 2019 return on or before the deadline described in Section 
59-10-514
.
(c) "2019 return" means a return filed under this chapter for a taxable year beginning
on or after January 1, 2019, and on or before December 31, 2019.
(d) "Grocery tax credit" means the refundable grocery tax credit described in Section
59-10-1113
.
(2) Subject to the other provisions of this section, the commission shall provide each
qualifying individual an additional grocery tax credit equal to 25% of the 2019 qualifying
individual's 2019 credit amount.
(3) For each return filed under this chapter, no more than one 2019 qualifying
individual may receive a credit under this section.
(4) The commission shall provide a 2019 qualifying individual who is a part-year
resident individual an apportioned amount of the additional grocery tax credit equal to the
product of:
(a) the state income tax percentage for the part-year resident individual; and
(b) the amount of the additional grocery tax credit that the commission would have
provided the part-year resident individual but for the apportionment requirements of this
subsection.
(5) If the value of a 2019 qualifying individual's additional grocery tax credit under this
section is less than $20, the 2019 qualifying individual is not eligible to receive the credit.
(6) The commission shall comply with Subsection (2) on or before July 1, 2020.
(7) The provisions of Sections 
59-10-529
 and 
63A-3-302
 do not apply to a credit
described in this section.
Section 43. Section 
59-10-1114
 is enacted to read:
 59-10-1114.
Refundable state earned income tax credit.
(1) As used in this section:
(a) "Department" means the Department of Workforce Services created in Section
35A-1-103
.
(b) "Federal earned income tax credit"means the federal earned income tax credit
described in Section 32, Internal Revenue Code.
(c) "Qualifying claimant" means a resident individual or nonresident individual who:
(i) is identified by the department as experiencing intergenerational poverty in
accordance with Section 
35A-9-214
; and
(ii) claimed the federal earned income tax credit for the previous taxable year.
(2) Except as provided in Section 
59-10-1102.1
, a qualifying claimant may claim a
refundable earned income tax credit equal to 10% of the amount of the federal earned income
tax credit that the qualifying claimant was entitled to claim on a federal income tax return in
the previous taxable year.
(3) (a) The commission shall use the electronic report described in Section 
35A-9-214
to verify that a qualifying claimant is identified as experiencing intergenerational poverty.
(b) The commission may not use the electronic report described in Section 
35A-9-214
for any other purpose.
Section 44. Section 
59-10-1403.3
 is amended to read:
59-10-1403.3.
Refund of amounts paid or withheld for a pass-through entity.
(1) As used in this section:
(a) "Committee" means the Revenue and Taxation Interim Committee.
(b) "Qualifying excess withholding" means an amount that:
(i) is paid or withheld:
(A) by a pass-through entity that has a different taxable year than the pass-through
entity that requests a refund under this section; and
(B) on behalf of the pass-through entity that requests the refund, if the pass-through
entity that requests the refund also is a pass-through entity taxpayer; and
(ii) is equal to the difference between:
(A) the amount paid or withheld for the taxable year on behalf of the pass-through
entity that requests the refund; and
(B) the product of [
5%
] 
the percentage listed in Subsection 
59-10-104
(2)
 and the
income, described in Subsection 
59-10-1403.2
(1)(a)(i), of the pass-through entity that requests
the refund.
(2) [
For a taxable year ending on or after July 1, 2017, a
] 
A
 pass-through entity may
claim a refund of qualifying excess withholding, if the amount of the qualifying excess
withholding is equal to or greater than $250,000.
(3) A pass-through entity that requests a refund of qualifying excess withholding under
this section shall:
(a) apply to the commission for a refund on or, subject to Subsection (4), after the day
on which the pass-through entity files the pass-through entity's income tax return; and
(b) provide any information that the commission may require to determine that the
pass-through entity is eligible to receive the refund.
(4) A pass-through entity shall claim a refund of qualifying excess withholding under
this section within 30 days after the earlier of the day on which:
(a) the pass-through entity files an income tax return; or
(b) the pass-through entity's income tax return is due, including any extension of due
date authorized in statute.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules establishing the information that a pass-through entity shall
provide to the commission to obtain a refund of qualifying excess withholding under this
section.
[
(6) (a) On or before November 30, 2018, the committee shall review the $250,000
threshold described in Subsection (2) for the purpose of assessing whether the threshold
amount should be maintained, increased, or decreased.
]
[
(b) To assist the committee in conducting the review described in Subsection (6)(a),
the commission shall provide the committee with:
]
[
(i) the total number of refund requests made under this section;
]
[
(ii) the total costs of any refunds issued under this section;
]
[
(iii) the costs of any audits conducted on refund requests made under this section; and
]
[
(iv) an estimation of:
]
[
(A) the number of refund requests the commission expects to receive if the Legislature
increases the threshold;
]
[
(B) the number of refund requests the commission expects to receive if the Legislature
decreases the threshold; and
]
[
(C) the costs of any audits the commission would conduct if the Legislature increases
or decreases the threshold.
]
Section 45. 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) "Affiliate" or "affiliated person" means a person that, with respect to another
person:
(a) has an ownership interest of more than 5%, whether direct or indirect, in that other
person; or
(b) is related to the other person because a third person, or a group of third persons who
are affiliated persons with respect to each other, holds an ownership interest of more than 5%,
whether direct or indirect, in the related persons.
(5) "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.
(6) "Agreement combined tax rate" means the sum of the tax rates:
(a) listed under Subsection (7); and
(b) that are imposed within a local taxing jurisdiction.
(7) "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
;
(x) Section 
59-12-2219
; or
(y) Section 
59-12-2220
.
(8) "Aircraft" means the same as that term is defined in Section 
72-10-102
.
(9) "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.
(10) "Alcoholic beverage" means a beverage that:
(a) is suitable for human consumption; and
(b) contains .5% or more alcohol by volume.
(11) "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.
(12) (a) Subject to Subsection (12)(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.
(13) (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.
(14) "Area agency on aging" means the same as that term is defined in Section
62A-3-101
.
[
(15) "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.
]
[
(16)
] 
(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.
[
(17)
] 
(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.
[
(18)
] 
(17)
 (a) Except as provided in Subsection [
(18)
] 
(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.
[
(19)
] 
(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 [
(19)
] 
(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 [
(19)
] 
(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 [
(19)
] 
(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 [
(19)
] 
(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 [
(19)
] 
(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 [
(19)
] 
(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 [
(19)
] 
(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 [
(19)
] 
(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 [
(19)
] 
(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.
[
(20)
] 
(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 [
(20)
] 
(19)
(a)(i).
[
(21)
] 
(20)
 "Certified service provider" means an agent certified:
(a) by the governing board of the agreement; and
(b) to perform a seller's sales and use tax functions for an agreement sales and use tax,
as outlined in the contract between the governing board of the agreement and the certified
service provider, other than the seller's obligation under Section 
59-12-124
 to remit a tax on the
seller's own purchases.
[
(22)
] 
(21)
 (a) Subject to Subsection [
(22)
] 
(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.
[
(23)
] 
(22)
 "Coal-to-liquid" means the process of converting coal into a liquid synthetic
fuel.
[
(24)
] 
(23)
 "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or
other fuels that does not constitute industrial use under Subsection (57) or residential use under
Subsection [
(111)
] 
(115)
.
[
(25)
] 
(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 that, 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 [
(25)
] 
(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
.
[
(26)
] 
(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.
[
(27)
] 
(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.
[
(28)
] 
(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.
[
(29)
] 
(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 [
(29)
] 
(28)
(a) and (b).
[
(30)
] 
(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 [
(30)
] 
(29)
(a).
(c) "Conference bridging service" does not include a telecommunications service used
to reach the ancillary service described in Subsection [
(30)
] 
(29)
(a).
[
(31)
] 
(30)
 "Construction materials" means any tangible personal property that will be
converted into real property.
[
(32)
] 
(31)
 "Delivered electronically" means delivered to a purchaser by means other
than tangible storage media.
(32) "Dating referral services" means services that are primarily intended to introduce
or match adults for social or romantic activities, including computer dating or video dating
services.
(33) (a) "Delivery charge" means a charge:
(i) by a seller of:
(A) tangible personal property;
(B) a product transferred electronically; or
(C) a service; and
(ii) for preparation and delivery of the tangible personal property, product transferred
electronically, or services described in Subsection (33)(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.
(34) "Detailed telecommunications billing service" means an ancillary service of
separately stating information pertaining to individual calls on a customer's billing statement.
(35) "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 (35)(b)(i) through (v);
(c) (i) except as provided in Subsection (35)(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
(35)(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.
(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 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.
(38) "Digital book" means a work that is generally recognized in the ordinary and usual
sense as a book.
(39) (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.
(40) "Directory assistance" means an ancillary service of providing:
(a) address information; or
(b) telephone number information.
(41) (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 (41)(a)(ii)(B); or
(D) a person similar to a person described in Subsections (41)(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.
(42) "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.
(43) (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 (43)(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.
(44) (a) Except as provided in Subsection (44)(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 (44)(a).
(c) "Durable medical equipment" does not include mobility enhancing equipment.
(45) "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 (45)(b)(i) through (vi).
(46) "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.
(47) "Employee" means the same as that term is defined in Section 
59-10-401
.
(48) "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.
(49) "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.
(50) "Fixed wireless service" means a telecommunications service that provides radio
communication between fixed points.
(51) (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 [
(95)
]
(99)
(b)(iii).
(c) "Food and food ingredients" does not include:
(i) an alcoholic beverage;
(ii) tobacco; or
(iii) prepared food.
(52) (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 (52)(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.
(53) "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.
(54) "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.
(55) (a) [
For purposes of Subsection 
59-12-104
(41), "governmental
] 
"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
Administrative Office of the Courts, 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
.
(56) "Hydroelectric energy" means water used as the sole source of energy to produce
electricity.
(57) "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 (57)(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
.
[
(58) (a) Except as provided in Subsection (58)(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) (a) "Installation charge" means a charge:
(i) by a seller of:
(A) tangible personal property; or
(B) a product transferred electronically; and
(ii) for installing the tangible personal property or the product transferred electronically
described in Subsection (58)(a)(i).
(b) "Installation charge" does not include a charge for:
(i) installing tangible personal property if the tangible personal property is permanently
attached to real property;
(ii) converting tangible personal property to real property.
(59) "Institution of higher education" means an institution of higher education listed in
Section 
53B-2-101
.
(60) (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 (60)(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.
(61) "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.
(62) "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.
(63) "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.
(64) "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.
(65) "Manufactured home" means the same as that term is defined in Section
15A-1-302
.
(66) "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 (66)(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.
(67) (a) "Marketplace" means a physical or electronic place, platform, or forum where
tangible personal property, a product transferred electronically, or a service is offered for sale.
(b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a
dedicated sales software application.
(68) (a) "Marketplace facilitator" means a person, including an affiliate of the person,
that enters into a contract, an agreement, or otherwise with sellers, for consideration, to
facilitate the sale of a seller's product through a marketplace that the person owns, operates, or
controls and that directly or indirectly:
(i) does any of the following:
(A) lists, makes available, or advertises tangible personal property, a product
transferred electronically, or a service for sale by a marketplace seller on a marketplace that the
person owns, operates, or controls;
(B) facilitates the sale of a marketplace seller's tangible personal property, product
transferred electronically, or service by transmitting or otherwise communicating an offer or
acceptance of a retail sale between the marketplace seller and a purchaser using the
marketplace;
(C) owns, rents, licenses, makes available, or operates any electronic or physical
infrastructure or any property, process, method, copyright, trademark, or patent that connects a
marketplace seller to a purchaser for the purpose of making a retail sale of tangible personal
property, a product transferred electronically, or a service;
(D) provides a marketplace for making, or otherwise facilitates, a retail sale of tangible
personal property, a product transferred electronically, or a service, regardless of ownership or
control of the tangible personal property, the product transferred electronically, or the service
that is the subject of the retail sale;
(E) provides software development or research and development activities related to
any activity described in this Subsection (68)(a)(i), if the software development or research and
development activity is directly related to the person's marketplace;
(F) provides or offers fulfillment or storage services for a marketplace seller;
(G) sets prices for the sale of tangible personal property, a product transferred
electronically, or a service by a marketplace seller;
(H) provides or offers customer service to a marketplace seller or a marketplace seller's
purchaser or accepts or assists with taking orders, returns, or exchanges of tangible personal
property, a product transferred electronically, or a service sold by a marketplace seller on the
person's marketplace; or
(I) brands or otherwise identifies sales as those of the person; and
(ii) does any of the following:
(A) collects the sales price or purchase price of a retail sale of tangible personal
property, a product transferred electronically, or a service;
(B) provides payment processing services for a retail sale of tangible personal property,
a product transferred electronically, or a service;
(C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee, closing
fee, a fee for inserting or making available tangible personal property, a product transferred
electronically, or a service on the person's marketplace, or other consideration for the
facilitation of a retail sale of tangible personal property, a product transferred electronically, or
a service, regardless of ownership or control of the tangible personal property, the product
transferred electronically, or the service that is the subject of the retail sale;
(D) through terms and conditions, an agreement, or another arrangement with a third
person, collects payment from a purchase for a retail sale of tangible personal property, a
product transferred electronically, or a service and transmits that payment to the marketplace
seller, regardless of whether the third person receives compensation or other consideration in
exchange for the service; or
(E) provides a virtual currency for a purchaser to use to purchase tangible personal
property, a product transferred electronically, or service offered for sale.
(b) "Marketplace facilitator" does not include a person that only provides payment
processing services.
(69) "Marketplace seller" means a seller that makes one or more retail sales through a
marketplace that a marketplace facilitator owns, operates, or controls, regardless of whether the
seller is required to be registered to collect and remit the tax under this part.
(70) "Member of the immediate family of the producer" means a person who is related
to a producer described in Subsection 
59-12-104
[
(20)
]
(17)
(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 (70)(a) through (g);
or
(j) person similar to a person described in Subsections (70)(a) through (i) as
determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act.
(71) (a) "Menstrual products" means:
(i) tampons;
(ii) panty liners;
(iii) menstrual cups;
(iv) sanitary napkins; or
(v) other similar tangible personal property designed for hygiene in connection with the
human menstrual cycle.
(b) "Menstrual products" does not include:
(i) soaps or cleaning solutions;
(ii) shampoo;
(iii) toothpaste;
(iv) mouthwash;
(v) antiperspirants; or
(vi) suntan lotions or screens.
[
(71)
] 
(72)
 "Mobile home" means the same as that term is defined in Section
15A-1-302
.
[
(72)
] 
(73)
 "Mobile telecommunications service" means the same as that term is
defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
[
(73)
] 
(74)
 (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 [
(73)
] 
(74)
(a)(i) and the termination
point described in Subsection [
(73)
] 
(74)
(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."
[
(74)
] 
(75)
 (a) [
Except as provided in Subsection (74)(c), "mobility
] 
"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 [
(74)
] 
(75)
(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.
[
(75)
] 
(76)
 "Model 1 seller" means a seller registered under the agreement that has
selected a certified service provider as the seller's agent to perform the seller's sales and use tax
functions for agreement sales and use taxes, as outlined in the contract between the governing
board of the agreement and the certified service provider, other than the seller's obligation
under Section 
59-12-124
 to remit a tax on the seller's own purchases.
[
(76)
] 
(77)
 "Model 2 seller" means a seller registered under the agreement that:
(a) except as provided in Subsection [
(76)
] 
(77)
(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.
[
(77)
] 
(78)
 (a) Subject to Subsection [
(77)
] 
(78)
(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
] 
revenue
 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 (77)(a), "model
] 
"Model
seller" includes an affiliated
group of sellers using the same proprietary system.
[
(78)
] 
(79)
 "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.
[
(79)
] 
(80)
 "Modular home" means a modular unit as defined in Section 
15A-1-302
.
[
(80)
] 
(81)
 "Motor vehicle" means the same as that term is defined in Section
41-1a-102
.
[
(81)
] 
(82)
 "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.
[
(82)
] 
(83)
 "Oil shale" means a group of fine black to dark brown shales containing
kerogen material that yields petroleum upon heating and distillation.
[
(83)
] 
(84)
 "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.
[
(84)
] 
(85)
 (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.
[
(85)
] 
(86)
 (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 [
(85)
] 
(86)
(a), the transmission of a coded radio signal
includes a transmission by message or sound.
(87) "Pawn transaction" means the same as that term is defined in Section 
13-32a-102
.
[
(86)
] 
(88)
 "Pawnbroker" means the same as that term is defined in Section
13-32a-102
.
[
(87) "Pawn transaction" means the same as that term is defined in Section
13-32a-102
.
]
[
(88)
] 
(89)
 (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 [
(88)
] 
(89)
(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 [
(88)
] 
(89)
(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 [
(88)
] 
(89)
(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 [
(129)
] 
(135)
(c).
[
(89)
] 
(90)
 "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.
(91) (a) "Personal transportation service" means the transportation of one or more
individuals by motor vehicle.
(b) "Personal transportation" includes taxicab service, limousine service, driver service,
shuttle service, scenic or sightseeing transportation, and a prearranged ride as defined in
Section 
13-51-102
.
(c) "Personal transportation service" does not include:
(i) services provided by or through a governmental entity;
(ii) transportation by ambulance as defined in Section 
26-8a-102
;
(iii) transportation provided in connection with a funeral; or
(iv) transportation by a low-speed vehicle, as defined in Section 
41-6a-102
, within a
county of the first class, as classified in Section 
17-50-501
.
(92) (a) "Pet boarding or care" means the furnishing of:
(i) boarding for a pet; or
(ii) daytime care for a pet at a location other than the pet owner's residence where the
pet is dropped off and picked up.
(b) "Pet boarding or care" does not include a service described in Subsection (92)(a):
(i) by a veterinarian licensed under Title 58, Chapter 28, Veterinary Practice Act, in
conjunction with a veterinary medical service; or
(ii) for a working animal, livestock, or a laboratory animal.
(93) (a) "Pet grooming" means:
(i) cleaning, maintaining, or enhancing the physical appearance of a pet; or
(ii) furnishing other hygienic care for a pet.
(b) "Pet grooming" does not include a service described in Subsection (93)(a):
(i) by a veterinarian licensed under Title 58, Chapter 28, Veterinary Practice Act, in
conjunction with a veterinary medical service; or
(ii) for a working animal, livestock, or a laboratory animal.
[
(90)
] 
(94)
 "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, means the same as that term is defined in
the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
[
(91)
] 
(95)
 (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.
[
(92)
] 
(96)
 "Postproduction" means an activity related to the finishing or duplication of
a medium described in Subsection 
59-12-104
[
(54)
]
(47)
(a).
[
(93)
] 
(97)
 "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.
[
(94)
] 
(98)
 "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.
[
(95)
] 
(99)
 (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 [
(95)
] 
(99)
(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 [
(95)
] 
(99)
(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 [
(95)
] 
(99)
(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.
[
(96)
] 
(100)
 "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.
[
(97)
] 
(101)
 (a) [
Except as provided in Subsection (97)(b)(ii) or (iii), "prewritten
]
"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 [
(97)
] 
(101)
(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 [
(97)
] 
(101)
(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 [
(97)
] 
(101)
(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.
[
(98)
] 
(102)
 (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
.
[
(99)
] 
(103)
 (a) [
Except as provided in Subsection (99)(b), "product
] 
"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.
[
(100)
] 
(104)
 (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.
[
(101)
] 
(105)
 (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.
[
(102)
] 
(106)
 (a) For purposes of Subsection 
59-12-104
[
(41)
]
(36)
, "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."
[
(103)
] 
(107)
 (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 delivery charge;
(iv) an installation charge;
[
(iii)
] 
(v)
 a charge by the seller for any service necessary to complete the sale; or
[
(iv)
] 
(vi)
 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 [
(103)
] 
(107)
(b)[
(iv)
]
(vi)
(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)
] 
(B)
 a manufacturer rebate on a motor vehicle; or
[
(E)
] 
(C)
 a tax or fee legally imposed directly on the consumer.
[
(104)
] 
(108)
 "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.
[
(105)
] 
(109)
 "Qualifying [
enterprise
] data center" means [
an establishment that will:
(a) own and operate
] a data center facility that [
will house
]
:
(a) houses
 a group of networked server computers in one physical location in order to
[
centralize the dissemination, management, and storage of
] 
disseminate, manage, and store
 data
and information;
(b) [
be
] 
is
 located in the state;
(c) [
be
] 
is
 a new operation constructed on or after July 1, 2016;
(d) [
consist
] 
consists
 of one or more buildings that total 150,000 or more square feet;
(e) [
be
] 
is
 owned or leased by:
(i) the [
establishment
] 
operator of the data center facility
; or
(ii) a person under common ownership, as defined in Section 
59-7-101
, of the
[
establishment
] 
operator of the data center facility
; and
(f) [
be
] 
is
 located on one or more parcels of land that are owned or leased by:
(i) the [
establishment
] 
operator of the data center facility
; or
(ii) a person under common ownership, as defined in Section 
59-7-101
, of the
[
establishment
] 
operator of the data center facility
.
[
(106)
] 
(110)
 "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.
[
(107)
] 
(111)
 "Rental" means the same as that term is defined in Subsection (60).
[
(108)
] 
(112)
 (a) [
Except as provided in Subsection (108)(b), "repairs
] 
"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.
[
(109)
] 
(113)
 "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.
[
(110)
] 
(114)
 (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 [
(110)
] 
(114)
(a)(i), a residential address includes an:
(i) apartment; or
(ii) other individual dwelling unit.
[
(111)
] 
(115)
 "Residential use" means the use in or around a home, apartment building,
sleeping quarters, and similar facilities or accommodations.
[
(112)
] 
(116)
 "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
other than:
(a) resale;
(b) sublease; or
(c) subrent.
[
(113)
] 
(117)
 (a) "Retailer" means any person, unless prohibited by the Constitution of
the United States or federal law, that is 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.
[
(114)
] 
(118)
 (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.
[
(115)
] 
(119)
 "Sale at retail" means the same as that term is defined in Subsection
[
(112)
] 
(116)
.
[
(116)
] 
(120)
 "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.
[
(117)
] 
(121)
 "Sales price" means the same as that term is defined in Subsection
[
(103)
] 
(107)
.
[
(118)
] 
(122)
 (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 [
(118)
] 
(122)
(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."
[
(119)
] 
(123)
 For purposes of this section and Section 
59-12-104
, "school" means:
(a) an elementary school or a secondary school that:
(i) is a:
(A) public school; or
(B) private school; and
(ii) provides instruction for one or more grades kindergarten through 12; or
(b) a public school district.
(124) "Security system monitoring" means the service of monitoring signals from an
alarm system, as defined in Section 
58-55-102
, regardless of whether the monitoring is
performed electronically or by an individual.
[
(120)
] 
(125)
 (a) "Seller" means a person that makes a sale, lease, or rental of:
(i) tangible personal property;
(ii) a product transferred electronically; or
(iii) a service.
(b) "Seller" includes a marketplace facilitator.
(126) "Seller-hosted prewritten computer software" means prewritten computer
software that is accessed through the Internet or a seller-hosted server, regardless of whether:
(a) the access is permanent; or
(b) any downloading occurs.
[
(121)
] 
(127)
 (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 [
(121)
] 
(127)
(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.
[
(122)
] 
(128)
 "Senior citizen center" means a facility having the primary purpose of
providing services to the aged as defined in Section 
62A-3-101
.
[
(123)
] 
(129)
 (a) [
Subject to Subsections (123)(b) and (c), "short-term
] 
"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 [
(123)
] 
(129)
(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.
[
(124)
] 
(130)
 "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.
[
(125)
] 
(131)
 "Solar energy" means the sun used as the sole source of energy for
producing electricity.
[
(126)
] 
(132)
 (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.
[
(127)
] 
(133)
 "State" means the state of Utah, its departments, and agencies.
[
(128)
] 
(134)
 "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.
[
(129)
] 
(135)
 (a) [
Except as provided in Subsection (129)(d) or (e), "tangible
]
"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 [
(129)
] 
(135)
(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.
[
(130)
] 
(136)
 (a) "Telecommunications enabling or facilitating equipment, machinery,
or software" means an item listed in Subsection [
(130)
] 
(136)
(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 [
(130)
] 
(136)
(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 [
(130)
] 
(136)
(b)(i) through (vi) as determined by the commission by rule made in
accordance with Subsection [
(130)
] 
(136)
(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 [
(130)
] 
(136)
(b)(i) through (vi).
[
(131)
] 
(137)
 "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.
[
(132)
] 
(138)
 "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.
[
(133)
] 
(139)
 (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.
[
(134)
] 
(140)
 (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 [
(134)
] 
(140)
(a)(i) for the shared use
with or resale to any person of the telecommunications service.
(b) A person described in Subsection [
(134)
] 
(140)
(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.
[
(135)
] 
(141)
 (a) "Telecommunications switching or routing equipment, machinery, or
software" means an item listed in Subsection [
(135)
] 
(141)
(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 [
(135)
] 
(141)
(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 [
(135)
] 
(141)
(b)(i) through (ix) as determined by the commission by rule made in
accordance with Subsection [
(135)
] 
(141)
(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 [
(135)
] 
(141)
(b)(i) through (ix).
[
(136)
] 
(142)
 (a) "Telecommunications transmission equipment, machinery, or
software" means an item listed in Subsection [
(136)
] 
(142)
(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 [
(136)
] 
(142)
(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 [
(136)
] 
(142)
(b)(i) through (xxv) as determined by the commission by rule made in
accordance with Subsection [
(136)
] 
(142)
(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 [
(136)
] 
(142)
(b)(i) through (xxv).
[
(137) (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.
]
[
(138)
] 
(143)
 "Tobacco" means:
(a) a cigarette;
(b) a cigar;
(c) chewing tobacco;
(d) pipe tobacco; or
(e) any other item that contains tobacco.
[
(139)
] 
(144)
 "Unassisted amusement device" means an amusement device, skill
device, or ride device that is started [
and
] 
or
 stopped by the purchaser or renter of the right to
use or operate the amusement device, skill device, or ride device.
[
(140)
] 
(145)
 (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.
[
(141)
] 
(146)
 "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.
[
(142)
] 
(147)
 (a) Subject to Subsection [
(142)
] 
(147)
(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)
]
(30)
 only, "vehicle" includes:
(i) a vehicle described in Subsection [
(142)
] 
(147)
(a); or
(ii) (A) a locomotive;
(B) a freight car;
(C) railroad work equipment; or
(D) other railroad rolling stock.
[
(143)
] 
(148)
 "Vehicle dealer" means a person engaged in the business of buying,
selling, or exchanging a vehicle [
as defined in Subsection (142)
].
[
(144)
] 
(149)
 (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.
[
(145)
] 
(150)
 (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.
[
(146)
] 
(151)
 (a) [
Except as provided in Subsection (146)(b), "waste
] 
"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.
[
(147)
] 
(152)
 "Watercraft" means a vessel as defined in Section 
73-18-2
.
[
(148)
] 
(153)
 "Wind energy" means wind used as the sole source of energy to produce
electricity.
[
(149)
] 
(154)
 "ZIP Code" means a Zoning Improvement Plan Code assigned to a
geographic location by the United States Postal Service.
Section 46. Section 
59-12-103
 is amended to read:
59-12-103.
Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
tax revenue.
(1) A tax is imposed on the purchaser as provided in this part on the purchase price or
sales price for amounts paid or charged for the following transactions:
(a) retail sales of tangible personal property made within the state;
(b) amounts paid for:
(i) telecommunications service, other than mobile telecommunications service 
or a 900
service
, that originates and terminates within the boundaries of this state;
(ii) mobile telecommunications service that originates and terminates within the
boundaries of one state only to the extent permitted by the Mobile Telecommunications
Sourcing Act, 4 U.S.C. Sec. 116 et seq.; [
or
]
(iii) a 900 service; or
[
(iii)
] 
(iv)
 an ancillary service associated with a:
(A) telecommunications service described in Subsection (1)(b)(i); [
or
]
(B) mobile telecommunications service described in Subsection (1)(b)(ii); 
or
(C) 900 service;
(c) sales of the following for commercial use:
(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(d) sales of the following for residential use:
(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(e) sales of prepared food;
(f) except as provided in Section 
59-12-104
, amounts paid or charged as admission or
user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
horseback rides, sports activities, or any other amusement, entertainment, recreation,
exhibition, cultural, or athletic activity;
(g) amounts paid or charged for services for repairs or renovations of tangible personal
property, unless Section 
59-12-104
 provides for an exemption from sales and use tax for:
(i) the tangible personal property; and
(ii) parts used in the repairs or renovations of the tangible personal property described
in Subsection (1)(g)(i), regardless of whether:
(A) any parts are actually used in the repairs or renovations of that tangible personal
property; or
(B) the particular parts used in the repairs or renovations of that tangible personal
property are exempt from a tax under this chapter;
(h) [
except as provided in Subsection 
59-12-104
(7),
] amounts paid or charged for
[
assisted
] cleaning or washing of tangible personal property;
(i) amounts paid or charged for tourist home, hotel, motel, or trailer court
accommodations and services that are regularly rented for less than 30 consecutive days;
(j) amounts paid or charged for laundry or dry cleaning services;
(k) amounts paid or charged for leases or rentals of tangible personal property if within
this state the tangible personal property is:
(i) stored;
(ii) used; or
(iii) otherwise consumed;
(l) amounts paid or charged for tangible personal property if within this state the
tangible personal property is:
(i) stored;
(ii) used; or
(iii) consumed; [
and
]
(m) amounts paid or charged for a sale:
(i) (A) of a product transferred electronically; or
(B) of a repair or renovation of a product transferred electronically; and
(ii) regardless of whether the sale provides:
(A) a right of permanent use of the product; or
(B) a right to use the product that is less than a permanent use, including a right:
(I) for a definite or specified length of time; and
(II) that terminates upon the occurrence of a condition[
.
]
;
(n) amounts paid or charged for access to digital audio-visual works, digital audio
works, digital books, or gaming services, including the streaming of or subscription for access
to digital audio-visual works, digital audio works, digital books, or gaming services regardless
of:
(i) the delivery method; or
(ii) whether the amount paid or charged for access provides a right to:
(A) single-use access to the digital audio-visual works, digital audio works, digital
books, or gaming services; or
(B) access the digital audio-visual works, digital audio works, digital books, or gaming
services through a subscription, including a right that terminates upon the occurrence of a
condition;
(o) amounts paid or charged for the storage, use, or other consumption of:
(i) prewritten computer software delivered electronically or by load and leave; or
(ii) seller-hosted prewritten computer software; and
(p) amounts paid or charged for the following services:
(i) security system monitoring;
(ii) personal transportation that originates in the state and terminates in the state;
(iii) parking or garaging a motor vehicle at a location that:
(A) is designed and used for parking or garaging one or more motor vehicles,
regardless of whether the location is sometimes used for other purposes; and
(B) is not residential property;
(iv) tow truck service as defined in Section 
72-9-102
, including any related fees;
(v) pet boarding or care;
(vi) pet grooming;
(vii) dating referral services; and
(viii) identity theft protection.
(2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
are imposed on a transaction described in Subsection (1) equal to the sum of:
(i) a state tax imposed on the transaction at a tax rate equal to the sum of:
[
(A) (I) through March 31, 2019, 4.70%; and
]
[
(II)
] 
(A)
 [
beginning on April 1, 2019,
] 4.70% plus the rate specified in Subsection
[
(13)
] 
(12)
(a); and
(B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
and Use Tax Act, if the location of the transaction as determined under Sections 
59-12-211
through 
59-12-215
 is in a county in which the state imposes the tax under Part 18, Additional
State Sales and Use Tax Act; and
(II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
and Use Tax Act, if the location of the transaction as determined under Sections 
59-12-211
through 
59-12-215
 is in a city, town, or the unincorporated area of a county in which the state
imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax are
imposed on a transaction described in Subsection (1)(d) equal to the sum of:
(i) a state tax imposed on the transaction at a tax rate of 2%; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax are
imposed on amounts paid or charged for food and food ingredients equal to the sum of:
(i) a state tax imposed on the amounts paid or charged for food and food ingredients at
a tax rate of [
1.75%
] 
4.85%
; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
amounts paid or charged for food and food ingredients under this chapter other than this part.
(d) (i) For a bundled transaction that is attributable to food and food ingredients and
tangible personal property other than food and food ingredients, a state tax and a local tax is
imposed on the entire bundled transaction equal to the sum of:
(A) a state tax imposed on the entire bundled transaction equal to the sum of:
(I) the tax rate described in Subsection (2)(a)(i)(A); and
(II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
Sales and Use Tax Act, if the location of the transaction as determined under Sections
59-12-211
 through 
59-12-215
 is in a county in which the state imposes the tax under Part 18,
Additional State Sales and Use Tax Act; and
(Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
Sales and Use Tax Act, if the location of the transaction as determined under Sections
59-12-211
 through 
59-12-215
 is in a city, town, or the unincorporated area of a county in which
the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
(B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
described in Subsection (2)(a)(ii).
(ii) If an optional computer software maintenance contract is a bundled transaction that
consists of taxable and nontaxable products that are not separately itemized on an invoice or
similar billing document, the purchase of the optional computer software maintenance contract
is 40% taxable under this chapter and 60% nontaxable under this chapter.
(iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
transaction described in Subsection (2)(d)(i) or (ii):
(A) if the sales price of the bundled transaction is attributable to tangible personal
property, a product, or a service that is subject to taxation under this chapter and tangible
personal property, a product, or service that is not subject to taxation under this chapter, the
entire bundled transaction is subject to taxation under this chapter unless:
(I) the seller is able to identify by reasonable and verifiable standards the tangible
personal property, product, or service that is not subject to taxation under this chapter from the
books and records the seller keeps in the seller's regular course of business; or
(II) state or federal law provides otherwise; or
(B) if the sales price of a bundled transaction is attributable to two or more items of
tangible personal property, products, or services that are subject to taxation under this chapter
at different rates, the entire bundled transaction is subject to taxation under this chapter at the
higher tax rate unless:
(I) the seller is able to identify by reasonable and verifiable standards the tangible
personal property, product, or service that is subject to taxation under this chapter at the lower
tax rate from the books and records the seller keeps in the seller's regular course of business; or
(II) state or federal law provides otherwise.
(iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in the regular
course of business for nontax purposes.
(e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
of tangible personal property, other property, a product, or a service that is not subject to
taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
the seller, at the time of the transaction:
(A) separately states the portion of the transaction that is not subject to taxation under
this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
(B) is able to identify by reasonable and verifiable standards, from the books and
records the seller keeps in the seller's regular course of business, the portion of the transaction
that is not subject to taxation under this chapter.
(ii) A purchaser and a seller may correct the taxability of a transaction if:
(A) after the transaction occurs, the purchaser and the seller discover that the portion of
the transaction that is not subject to taxation under this chapter was not separately stated on an
invoice, bill of sale, or similar document provided to the purchaser because of an error or
ignorance of the law; and
(B) the seller is able to identify by reasonable and verifiable standards, from the books
and records the seller keeps in the seller's regular course of business, the portion of the
transaction that is not subject to taxation under this chapter.
(iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
in the seller's regular course of business includes books and records the seller keeps in the
regular course of business for nontax purposes.
(f) (i) If the sales price of a transaction is attributable to two or more items of tangible
personal property, products, or services that are subject to taxation under this chapter at
different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
unless the seller, at the time of the transaction:
(A) separately states the items subject to taxation under this chapter at each of the
different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
(B) is able to identify by reasonable and verifiable standards the tangible personal
property, product, or service that is subject to taxation under this chapter at the lower tax rate
from the books and records the seller keeps in the seller's regular course of business.
(ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in the regular
course of business for nontax purposes.
(g) Subject to Subsections (2)(h) and (i), a tax rate repeal or tax rate change for a tax
rate imposed under the following shall take effect on the first day of a calendar quarter:
(i) Subsection (2)(a)(i)(A);
(ii) Subsection (2)(b)(i);
(iii) Subsection (2)(c)(i); or
(iv) Subsection (2)(d)(i)(A)(I).
(h) (i) 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 tax rate increase if the billing period for the
transaction begins before the effective date of a tax rate increase imposed under:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i);
(C) Subsection (2)(c)(i); or
(D) Subsection (2)(d)(i)(A)(I).
(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 rendered on or after the effective date of the repeal of the tax
or the tax rate decrease imposed under:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i);
(C) Subsection (2)(c)(i); or
(D) Subsection (2)(d)(i)(A)(I).
(i) (i) For a tax rate described in Subsection (2)(i)(ii), if a tax due on a catalogue sale is
computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
change in a tax rate takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
(ii) Subsection (2)(i)(i) applies to the tax rates described in the following:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i);
(C) Subsection (2)(c)(i); or
(D) Subsection (2)(d)(i)(A)(I).
(iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may by rule define the term "catalogue sale."
(3) (a) The following state taxes shall be deposited into the General Fund:
(i) the tax imposed by Subsection (2)(a)(i)(A);
(ii) the tax imposed by Subsection (2)(b)(i);
(iii) the tax imposed by Subsection (2)(c)(i); or
(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
(b) The following local taxes shall be distributed to a county, city, or town as provided
in this chapter:
(i) the tax imposed by Subsection (2)(a)(ii);
(ii) the tax imposed by Subsection (2)(b)(ii);
(iii) the tax imposed by Subsection (2)(c)(ii); and
(iv) the tax imposed by Subsection (2)(d)(i)(B).
(4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
through (g):
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
(A) by a 1/16% tax rate on the transactions described in Subsection (1); and
(B) for the fiscal year; or
(ii) $17,500,000.
(b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
Department of Natural Resources to:
(A) implement the measures described in Subsections 
79-2-303
(3)(a) through (d) to
protect sensitive plant and animal species; or
(B) award grants, up to the amount authorized by the Legislature in an appropriations
act, to political subdivisions of the state to implement the measures described in Subsections
79-2-303
(3)(a) through (d) to protect sensitive plant and animal species.
(ii) Money transferred to the Department of Natural Resources under Subsection
(4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
person to list or attempt to have listed a species as threatened or endangered under the
Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
(iii) At the end of each fiscal year:
(A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
Conservation and Development Fund created in Section 
73-10-24
;
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
Program Subaccount created in Section 
73-10c-5
; and
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
Program Subaccount created in Section 
73-10c-5
.
(c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
created in Section 
4-18-106
.
(d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
water rights.
(ii) At the end of each fiscal year:
(A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
Conservation and Development Fund created in Section 
73-10-24
;
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
Program Subaccount created in Section 
73-10c-5
; and
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
Program Subaccount created in Section 
73-10c-5
.
(e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
Development Fund created in Section 
73-10-24
 for use by the Division of Water Resources.
(ii) In addition to the uses allowed of the Water Resources Conservation and
Development Fund under Section 
73-10-24
, the Water Resources Conservation and
Development Fund may also be used to:
(A) conduct hydrologic and geotechnical investigations by the Division of Water
Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
quantifying surface and ground water resources and describing the hydrologic systems of an
area in sufficient detail so as to enable local and state resource managers to plan for and
accommodate growth in water use without jeopardizing the resource;
(B) fund state required dam safety improvements; and
(C) protect the state's interest in interstate water compact allocations, including the
hiring of technical and legal staff.
(f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
created in Section 
73-10c-5
 for use by the Water Quality Board to fund wastewater projects.
(g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
created in Section 
73-10c-5
 for use by the Division of Drinking Water to:
(i) provide for the installation and repair of collection, treatment, storage, and
distribution facilities for any public water system, as defined in Section 
19-4-102
;
(ii) develop underground sources of water, including springs and wells; and
(iii) develop surface water sources.
(5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2006, the difference between the following amounts shall be expended as provided in this
Subsection (5), if that difference is greater than $1:
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
(ii) $17,500,000.
(b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
(A) transferred each fiscal year to the Department of Natural Resources as dedicated
credits; and
(B) expended by the Department of Natural Resources for watershed rehabilitation or
restoration.
(ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
created in Section 
73-10-24
.
(c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
remaining difference described in Subsection (5)(a) shall be:
(A) transferred each fiscal year to the Division of Water Resources as dedicated
credits; and
(B) expended by the Division of Water Resources for cloud-seeding projects
authorized by Title 73, Chapter 15, Modification of Weather.
(ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
created in Section 
73-10-24
.
(d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
remaining difference described in Subsection (5)(a) shall be deposited into the Water
Resources Conservation and Development Fund created in Section 
73-10-24
 for use by the
Division of Water Resources for:
(i) preconstruction costs:
(A) as defined in Subsection 
73-26-103
(6) for projects authorized by Title 73, Chapter
26, Bear River Development Act; and
(B) as defined in Subsection 
73-28-103
(8) for the Lake Powell Pipeline project
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
(ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
Chapter 26, Bear River Development Act;
(iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
(iv) other uses authorized under Sections 
73-10-24
, 
73-10-25.1
, and 
73-10-30
, and
Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
(e) After making the transfers required by Subsections (5)(b) and (c) and subject to
Subsection (5)(f), 15% of the remaining difference described in Subsection (5)(a) shall be
transferred each year as dedicated credits to the Division of Water Rights to cover the costs
incurred for employing additional technical staff for the administration of water rights.
(f) At the end of each fiscal year, any unexpended dedicated credits described in
Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
Fund created in Section 
73-10-24
.
(6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
(1) for the fiscal year shall be deposited as follows:
(a) for fiscal year 2016-17 only, 100% of the revenue described in this Subsection (6)
shall be deposited into the Transportation Investment Fund of 2005 created by Section
72-2-124
;
(b) for fiscal year 2017-18 only:
(i) 80% of the revenue described in this Subsection (6) shall be deposited into the
Transportation Investment Fund of 2005 created by Section 
72-2-124
; and
(ii) 20% of the revenue described in this Subsection (6) shall be deposited into the
Water Infrastructure Restricted Account created by Section 
73-10g-103
;
(c) for fiscal year 2018-19 only:
(i) 60% of the revenue described in this Subsection (6) shall be deposited into the
Transportation Investment Fund of 2005 created by Section 
72-2-124
; and
(ii) 40% of the revenue described in this Subsection (6) shall be deposited into the
Water Infrastructure Restricted Account created by Section 
73-10g-103
;
(d) for fiscal year 2019-20 only:
(i) 40% of the revenue described in this Subsection (6) shall be deposited into the
Transportation Investment Fund of 2005 created by Section 
72-2-124
; and
(ii) 60% of the revenue described in this Subsection (6) shall be deposited into the
Water Infrastructure Restricted Account created by Section 
73-10g-103
;
(e) for fiscal year 2020-21 only:
(i) 20% of the revenue described in this Subsection (6) shall be deposited into the
Transportation Investment Fund of 2005 created by Section 
72-2-124
; and
(ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
Water Infrastructure Restricted Account created by Section 
73-10g-103
; and
(f) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
created by Section 
73-10g-103
.
(7)
 (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
[
] 
, the Division of Finance shall deposit into the Transportation Investment Fund of
2005 created by Section 
72-2-124
:
(i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
the [
revenues
] 
revenue
 collected from the following taxes, which represents a portion of the
approximately 17% of sales and use tax [
revenues
] 
revenue
 generated annually by the sales and
use tax on vehicles and vehicle-related products:
(A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
(B) the tax imposed by Subsection (2)(b)(i);
(C) the tax imposed by Subsection (2)(c)(i); and
(D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
(ii) an amount equal to 30% of the growth in the amount of revenues collected in the
current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
(D) that exceeds the amount collected from the sales and use taxes described in Subsections
(7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
(b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
generated in the current fiscal year than the total percentage of sales and use taxes deposited in
the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
(7)(a) equal to the product of:
(A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
previous fiscal year; and
(B) the total sales and use tax revenue generated by the taxes described in Subsections
(7)(a)(i)(A) through (D) in the current fiscal year.
(ii) In any fiscal year in which the portion of the sales and use taxes deposited under
Subsection (7)(a) would exceed [
17%
] 
14.31%
 of the [
revenues
] 
revenue
 collected from the
sales and use taxes described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year,
the Division of Finance shall deposit [
17%
] 
14.31%
 of the [
revenues
] 
revenue
 collected from
the sales and use taxes described in Subsections (7)(a)(i)(A) through (D) for the current fiscal
year under Subsection (7)(a).
(iii) In all subsequent fiscal years after a year in which [
17%
] 
14.31%
 of the [
revenues
]
revenue
 collected from the sales and use taxes described in Subsections (7)(a)(i)(A) through
(D) was deposited under Subsection (7)(a), the Division of Finance shall annually deposit
[
17%
] 
14.31%
 of the [
revenues
] 
revenue
 collected from the sales and use taxes described in
Subsections (7)(a)(i)(A) through (D) in the current fiscal year under Subsection (7)(a).
[
(8) (a) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited
under Subsections (6) and (7), for the 2016-17 fiscal year only, the Division of Finance shall
deposit $64,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into
the Transportation Investment Fund of 2005 created by Section 
72-2-124
.
]
[
(b) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
Subsections (6) and (7), for the 2017-18 fiscal year only, the Division of Finance shall deposit
$63,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
Transportation Investment Fund of 2005 created by Section 
72-2-124
.
]
[
(c) (i) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
Subsections (6) and (7), and subject to Subsection (8)(c)(ii), for a fiscal year beginning on or
after July 1, 2018, the commission shall annually deposit into the Transportation Investment
Fund of 2005 created by Section 
72-2-124
 a portion of the taxes listed under Subsection (3)(a)
in an amount equal to 3.68% of the revenues collected from the following taxes:
]
[
(A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
]
[
(B) the tax imposed by Subsection (2)(b)(i);
]
[
(C) the tax imposed by Subsection (2)(c)(i); and
]
[
(D) the tax imposed by Subsection (2)(d)(i)(A)(I).
]
[
(ii) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(c)(i)
by an amount that is equal to 35% of the amount of revenue generated in the current fiscal year
by the portion of the tax imposed on motor and special fuel that is sold, used, or received for
sale or use in this state that exceeds 29.4 cents per gallon.
]
[
(iii)
] 
(8)
 The commission shall 
deposit
 annually [
deposit the amount described in
Subsection (8)(c)(ii)
] 
an amount equal to 50% of the growth in the amount of revenue collected
in the current fiscal year from the tax imposed under Subsection (2)(c)(i) that exceeds the
amount collected from the tax imposed under Subsection (2)(c)(i) in the 2020-2021 fiscal year
into the Transit [
and
] Transportation Investment Fund created in Section 
72-2-124
.
(9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
created by Section 
35A-8-1009
 and expended as provided in Section 
35A-8-1009
.
(10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c),
in addition to any amounts deposited under Subsections (6), (7), and (8), and for the 2016-17
fiscal year only, the Division of Finance shall deposit into the Transportation Investment Fund
of 2005 created by Section 
72-2-124
 the amount of tax revenue generated by a .05% tax rate on
the transactions described in Subsection (1).
(b) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c), and in
addition to any amounts deposited under Subsections (6), (7), and (8), the Division of Finance
shall deposit into the Transportation Investment Fund of 2005 created by Section 
72-2-124
 the
amount of revenue described as follows:
(i) for fiscal year 2017-18 only, 83.33% of the amount of revenue generated by a .05%
tax rate on the transactions described in Subsection (1);
(ii) for fiscal year 2018-19 only, 66.67% of the amount of revenue generated by a .05%
tax rate on the transactions described in Subsection (1);
(iii) for fiscal year 2019-20 only, 50% of the amount of revenue generated by a .05%
tax rate on the transactions described in Subsection (1);
(iv) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a
.05% tax rate on the transactions described in Subsection (1); and
(v) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
tax rate on the transactions described in Subsection (1).
(c) For purposes of Subsections (10)(a) and (b), the Division of Finance may not
deposit into the Transportation Investment Fund of 2005 any tax revenue generated by amounts
paid or charged for food and food ingredients, except for tax revenue generated by a bundled
transaction attributable to food and food ingredients and tangible personal property other than
food and food ingredients described in Subsection (2)(d).
(11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
fiscal year during which the Division of Finance receives notice under Section 
63N-2-510
 that
construction on a qualified hotel, as defined in Section 
63N-2-502
, has begun, the Division of
Finance shall, for two consecutive fiscal years, [
annually
] deposit 
annually
 $1,900,000 of the
revenue generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation
Fund, created in Section 
63N-2-512
.
[
(12) (a) Notwithstanding Subsection (3)(a), for the 2016-17 fiscal year only, the
Division of Finance shall deposit $26,000,000 of the revenues generated by the taxes listed
under Subsection (3)(a) into the Throughput Infrastructure Fund created by Section
35A-8-308
.
]
[
(b) Notwithstanding Subsection (3)(a), for the 2017-18 fiscal year only, the Division
of Finance shall deposit $27,000,000 of the revenues generated by the taxes listed under
Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 
35A-8-308
.
]
[
(13)
] 
(12)
 (a) The rate specified in this subsection is 0.15%.
(b) Notwithstanding Subsection (3)(a), the Division of Finance shall[
: (i) on or before
September 30, 2019, transfer the amount of revenue collected from the rate described in
Subsection (13)(a) beginning on April 1, 2019, and ending on June 30, 2019, on the
transactions that are subject to the sales and use tax under Subsection (2)(a)(i)(A) into the
Medicaid Expansion Fund created in Section 
26-36b-208
; and (ii)
] for a fiscal year beginning
on or after July 1, 2019, [
annually
] transfer 
annually
 the amount of revenue collected from the
rate described in Subsection [
(13)
] 
(12)
(a) on the transactions that are subject to the sales and
use tax under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section
26-36b-208.
Section 47. Section 
59-12-104
 is amended to read:
59-12-104.
Exemptions.
[
Exemptions from the taxes imposed by this chapter
 are as follows
] 
Except as provided
in Subsection 
59-12-103
(2)(d), the purchase price of the following are exempt from the taxes
imposed by this chapter
:
(1) 
(a)
 sales of aviation fuel[
, motor fuel, and special
] 
or diesel
 fuel subject to a [
Utah
]
state excise tax under Chapter 13, Motor and Special Fuel Tax Act; 
or
(b) sales of motor fuel or nondiesel special fuel, as defined in Section 
59-13-601
, that
are subject to a sales tax under Chapter 13, Part 6, Sales Tax on Motor Fuel and Special Fuel,
Other than Diesel Fuel;
(2) subject to Section 
59-12-104.6
, sales to the state, its institutions, and its political
subdivisions; however, this exemption does not apply to sales of:
(a) construction materials except:
(i) construction materials purchased by or on behalf of institutions of the public
education system as defined in Utah Constitution, Article X, Section 2, provided the
construction materials are clearly identified and segregated and installed or converted to real
property which is owned by institutions of the public education system; and
(ii) construction materials purchased by the state, its institutions, or its political
subdivisions which are installed or converted to real property by employees of the state, its
institutions, or its political subdivisions; or
(b) tangible personal property in connection with the construction, operation,
maintenance, repair, or replacement of a project, as defined in Section 
11-13-103
, or facilities
providing additional project capacity, as defined in Section 
11-13-103
;
[
(3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
]
[
(i) the proceeds of each sale do not exceed $1; and
]
[
(ii) the seller or operator of the vending machine reports an amount equal to 150% of
the cost of the item described in Subsection (3)(b) as goods consumed; and
]
[
(b) Subsection (3)(a) applies to:
]
[
(i) food and food ingredients; or
]
[
(ii) prepared food;
]
[
(4)
] 
(3)
 (a) sales of the following to a commercial airline carrier for in-flight
consumption:
(i) alcoholic beverages;
(ii) food and food ingredients; or
(iii) prepared food;
(b) sales of tangible personal property or a product transferred electronically:
(i) to a passenger;
(ii) by a commercial airline carrier; and
(iii) during a flight for in-flight consumption or in-flight use by the passenger; or
(c) services related to Subsection [
(4)
] 
(3)
(a) or (b);
[
(5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
and equipment:
]
[
(A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
North American Industry Classification System of the federal Executive Office of the
President, Office of Management and Budget; and
]
[
(II) for:
]
[
(Aa) installation in an aircraft, including services relating to the installation of parts or
equipment in the aircraft;
]
[
(Bb) renovation of an aircraft; or
]
[
(Cc) repair of an aircraft; or
]
[
(B) for installation in an aircraft operated by a common carrier in interstate or foreign
commerce; or
]
[
(ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
aircraft operated by a common carrier in interstate or foreign commerce; and
]
[
(b) notwithstanding the time period of Subsection 
59-1-1410
(8) for filing for a refund,
a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
refund:
]
[
(i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
]
[
(ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
]
[
(iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
the sale prior to filing for the refund;
]
[
(iv) for sales and use taxes paid under this chapter on the sale;
]
[
(v) in accordance with Section 
59-1-1410
; and
]
[
(vi) subject to any extension allowed for filing for a refund under Section 
59-1-1410
,
if the person files for the refund on or before September 30, 2011;
]
(4) sales of parts and equipment for installation in an aircraft operated by a common
carrier in interstate or foreign commerce;
[
(6)
] 
(5)
 sales of commercials, motion picture films, prerecorded audio program tapes
or records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
exhibitor, distributor, or commercial television or radio broadcaster;
[
(7) (a) except as provided in Subsection (85) and subject to Subsection (7)(b), sales of
cleaning or washing of tangible personal property if the cleaning or washing of the tangible
personal property is not assisted cleaning or washing of tangible personal property;
]
[
(b) if a seller that sells at the same business location assisted cleaning or washing of
tangible personal property and cleaning or washing of tangible personal property that is not
assisted cleaning or washing of tangible personal property, the exemption described in
Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
or washing of the tangible personal property; and
]
[
(c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, the commission may make rules:
]
[
(i) governing the circumstances under which sales are at the same business location;
and
]
[
(ii) establishing the procedures and requirements for a seller to separately account for
sales of assisted cleaning or washing of tangible personal property;
]
[
(8)
] 
(6)
 sales made to or by religious or charitable institutions in the conduct of their
regular religious or charitable functions and activities, if the requirements of Section
59-12-104.1
 are fulfilled;
[
(9)
] 
(7)
 sales of a vehicle of a type required to be registered under the motor vehicle
laws of this state if the vehicle is:
(a) not registered in this state; and
(b) (i) not used in this state; or
(ii) used in this state:
(A) if the vehicle is not used to conduct business, for a time period that does not
exceed the longer of:
(I) 30 days in any calendar year; or
(II) the time period necessary to transport the vehicle to the borders of this state; or
(B) if the vehicle is used to conduct business, for the time period necessary to transport
the vehicle to the borders of this state;
[
(10) (a)
] 
(8)
 amounts paid for [
an item described in Subsection (10)(b) if
]:
(a) menstrual products; or
(b) a drug, syringe, or stoma supply if:
(i) the item is intended for human use; and
(ii) (A) a prescription was issued for the item; or
(B) the item was purchased by a hospital or other medical facility; [
and
]
[
(b) (i) Subsection (10)(a) applies to:
]
[
(A) a drug;
]
[
(B) a syringe; or
]
[
(C) a stoma supply; and
]
[
(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may by rule define the terms:
]
[
(A) "syringe"; or
]
[
(B) "stoma supply";
]
[
(11)
] 
(9)
 purchases or leases exempt under Section 
19-12-201
;
[
(12)
] 
(10)
 (a) sales of an item described in Subsection [
(12)
] 
(10)
(c) served by:
(i) the following if the item described in Subsection [
(12)
] 
(10)
(c) is not available to
the general public:
(A) a church; or
(B) a charitable institution; or
(ii) an institution of higher education if:
(A) the item described in Subsection [
(12)
] 
(10)
(c) is not available to the general
public; or
(B) the item described in Subsection [
(12)
] 
(10)
(c) is prepaid as part of a student meal
plan offered by the institution of higher education; or
(b) sales of an item described in Subsection [
(12)
] 
(10)
(c) provided for a patient by:
(i) a medical facility; or
(ii) a nursing facility; and
(c) Subsections [
(12)
] 
(10)
(a) and (b) apply to:
(i) food and food ingredients;
(ii) prepared food; or
(iii) alcoholic beverages;
[
(13)
] 
(11)
 (a) except as provided in Subsection [
(13)
] 
(11)
(b), the sale of tangible
personal property or a product transferred electronically by a person:
(i) regardless of the number of transactions involving the sale of that tangible personal
property or product transferred electronically by that person; and
(ii) not regularly engaged in the business of selling that type of tangible personal
property or product transferred electronically;
(b) this Subsection [
(13)
] 
(11)
 does not apply if:
(i) the sale is one of a series of sales of a character to indicate that the person is
regularly engaged in the business of selling that type of tangible personal property or product
transferred electronically;
(ii) the person holds that person out as regularly engaged in the business of selling that
type of tangible personal property or product transferred electronically;
(iii) the person sells an item of tangible personal property or product transferred
electronically that the person purchased as a sale that is exempt under Subsection [
(25)
] 
(22)
;
or
(iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
this state in which case the tax is based upon:
(A) the bill of sale or other written evidence of value of the vehicle or vessel being
sold; or
(B) in the absence of a bill of sale or other written evidence of value, the fair market
value of the vehicle or vessel being sold at the time of the sale as determined by the
commission; and
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall make rules establishing the circumstances under which:
(i) a person is regularly engaged in the business of selling a type of tangible personal
property or product transferred electronically;
(ii) a sale of tangible personal property or a product transferred electronically is one of
a series of sales of a character to indicate that a person is regularly engaged in the business of
selling that type of tangible personal property or product transferred electronically; or
(iii) a person holds that person out as regularly engaged in the business of selling a type
of tangible personal property or product transferred electronically;
[
(14)
] 
(12)
 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
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:
(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;
[
(15)
] 
(13)
 (a) sales of the following if the requirements of Subsection [
(15)
] 
(13)
(b)
are met:
(i) tooling;
(ii) special tooling;
(iii) support equipment;
(iv) special test equipment; or
(v) parts used in the repairs or renovations of tooling or equipment described in
Subsections [
(15)
] 
(13)
(a)(i) through (iv); and
(b) sales of tooling, equipment, or parts described in Subsection [
(15)
] 
(13)
(a) are
exempt if:
(i) the tooling, equipment, or parts are used or consumed exclusively in the
performance of any aerospace or electronics industry contract with the United States
government or any subcontract under that contract; and
(ii) under the terms of the contract or subcontract described in Subsection [
(15)
]
(13)
(b)(i), title to the tooling, equipment, or parts is vested in the United States government as
evidenced by:
(A) a government identification tag placed on the tooling, equipment, or parts; or
(B) listing on a government-approved property record if placing a government
identification tag on the tooling, equipment, or parts is impractical;
[
(16) sales of newspapers or newspaper subscriptions;
]
[
(17)
] 
(14)
 (a) except as provided in Subsection [
(17)
] 
(14)
(b), tangible personal
property or a product transferred electronically traded in as full or part payment of the purchase
price, except that for purposes of calculating sales or use tax upon vehicles not sold by a
vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
(i) the bill of sale or other written evidence of value of the vehicle being sold and the
vehicle being traded in; or
(ii) in the absence of a bill of sale or other written evidence of value, the then existing
fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
commission; and
(b) Subsection [
(17)
] 
(14)
(a) does not apply to the following items of tangible personal
property or products transferred electronically traded in as full or part payment of the purchase
price:
(i) money;
(ii) electricity;
(iii) water;
(iv) gas; or
(v) steam;
[
(18)
] 
(15)
 (a) (i) except as provided in Subsection [
(18)
] 
(15)
(b), sales of tangible
personal property or a product transferred electronically used or consumed primarily and
directly in farming operations, regardless of whether the tangible personal property or product
transferred electronically:
(A) becomes part of real estate; or
(B) is installed by a[
:
] 
farmer, contractor, or subcontractor; or
[
(I) farmer;
]
[
(II) contractor; or
]
[
(III) subcontractor; or
]
(ii) sales of parts used in the repairs or renovations of tangible personal property or a
product transferred electronically if the tangible personal property or product transferred
electronically is exempt under Subsection [
(18)
] 
(15)
(a)(i); and
(b) amounts paid or charged for the following are subject to the taxes imposed by this
chapter:
(i) (A) subject to Subsection [
(18)
] 
(15)
(b)(i)(B), machinery, equipment, materials, or
supplies if used in a manner that is incidental to farming; and
(B) tangible personal property that is considered to be used in a manner that is
incidental to farming includes:
(I) hand tools; or
(II) maintenance and janitorial equipment and supplies;
(ii) (A) subject to Subsection [
(18)
] 
(15)
(b)(ii)(B), tangible personal property or a
product transferred electronically if the tangible personal property or product transferred
electronically is used in an activity other than farming; and
(B) tangible personal property or a product transferred electronically that is considered
to be used in an activity other than farming includes:
(I) office equipment and supplies; or
(II) equipment and supplies used in:
(Aa) the sale or distribution of farm products;
(Bb) research; or
(Cc) transportation; or
(iii) a vehicle required to be registered by the laws of this state during the period
ending two years after the date of the vehicle's purchase;
[
(19)
] 
(16)
 sales of hay;
[
(20)
] 
(17)
 exclusive sale during the harvest season of seasonal crops, seedling plants,
or garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
garden, farm, or other agricultural produce is sold by:
(a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
agricultural produce;
(b) an employee of the producer described in Subsection [
(20)
] 
(17)
(a); or
(c) a member of the immediate family of the producer described in Subsection [
(20)
]
(17)
(a);
[
(21)
] 
(18)
 purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is
issued under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
[
(22)
] 
(19)
 sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
wholesaler, or retailer for use in packaging tangible personal property to be sold by that
manufacturer, processor, wholesaler, or retailer;
[
(23)
] 
(20)
 a product stored in the state for resale;
[
(24)
] 
(21)
 (a) purchases of a product if:
(i) the product is:
(A) purchased outside of this state;
(B) brought into this state:
(I) at any time after the purchase described in Subsection [
(24)
] 
(21)
(a)(i)(A); and
(II) by a nonresident person who is not living or working in this state at the time of the
purchase;
(C) used for the personal use or enjoyment of the nonresident person described in
Subsection [
(24)
] 
(21)
(a)(i)(B)(II) while that nonresident person is within the state; and
(D) not used in conducting business in this state; and
(ii) for:
(A) a product other than a boat described in Subsection [
(24)
] 
(21)
(a)(ii)(B), the first
use of the product for a purpose for which the product is designed occurs outside of this state;
(B) a boat, the boat is registered outside of this state; or
(C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
outside of this state;
(b) the exemption provided for in Subsection [
(24)
] 
(21)
(a) does not apply to:
(i) a lease or rental of a product; or
(ii) a sale of a vehicle exempt under Subsection [
(33)
] 
(30)
; and
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
purposes of Subsection [
(24)
] 
(21)
(a), the commission may by rule define what constitutes the
following:
(i) conducting business in this state if that phrase has the same meaning in this
Subsection [
(24)
] 
(21)
 as in Subsection [
(63)
] 
(55)
;
(ii) the first use of a product if that phrase has the same meaning in this Subsection
[
(24)
] 
(21)
 as in Subsection [
(63)
] 
(55)
; or
(iii) a purpose for which a product is designed if that phrase has the same meaning in
this Subsection [
(24)
] 
(21)
 as in Subsection [
(63)
] 
(55)
;
[
(25)
] 
(22)
 a product purchased for resale in the regular course of business, either in its
original form or as an ingredient or component part of a manufactured or compounded product;
[
(26)
] 
(23)
 a product upon which a sales or use tax was paid to some other state, or one
of its subdivisions, except that the state shall be paid any difference between the tax paid and
the tax imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is
allowed if the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and
Use Tax Act;
[
(27)
] 
(24)
 any sale of a service described in Subsections 
59-12-103
(1)(b), (c), and (d)
to a person for use in compounding a service taxable under the subsections;
[
(28)
] 
(25)
 purchases made in accordance with the special supplemental nutrition
program for women, infants, and children established in 42 U.S.C. Sec. 1786;
[
(29)
] 
(26)
 sales or leases of rolls, rollers, refractory brick, electric motors, or other
replacement parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code
3312 of the 1987 Standard Industrial Classification Manual of the federal Executive Office of
the President, Office of Management and Budget;
[
(30)
] 
(27)
 sales of a boat of a type required to be registered under Title 73, Chapter 18,
State Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard
motor is:
(a) not registered in this state; and
(b) (i) not used in this state; or
(ii) used in this state:
(A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
time period that does not exceed the longer of:
(I) 30 days in any calendar year; or
(II) the time period necessary to transport the boat, boat trailer, or outboard motor to
the borders of this state; or
(B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
state;
[
(31)
] 
(28)
 sales of aircraft manufactured in Utah;
[
(32)
] 
(29)
 amounts paid for the purchase of telecommunications service for purposes
of providing telecommunications service;
[
(33)
] 
(30)
 sales, leases, or uses of the following:
(a) a vehicle by an authorized carrier; or
(b) tangible personal property that is installed on a vehicle:
(i) sold or leased to or used by an authorized carrier; and
(ii) before the vehicle is placed in service for the first time;
[
(34)
] 
(31)
 (a) 45% of the sales price of any new manufactured home; and
(b) 100% of the sales price of any used manufactured home;
[
(35)
] 
(32)
 sales relating to schools and fundraising sales;
[
(36)
] 
(33)
 sales or rentals of durable medical equipment if:
(a) a person presents a prescription for the durable medical equipment; and
(b) the durable medical equipment is used for home use only;
[
(37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
Section 
72-11-102
; and
]
[
(b) the commission shall by rule determine the method for calculating sales exempt
under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
]
[
(38)
] 
(34)
 sales to a ski resort of:
(a) snowmaking equipment;
(b) ski slope grooming equipment;
(c) passenger ropeways as defined in Section 
72-11-102
; or
(d) parts used in the repairs or renovations of equipment or passenger ropeways
described in Subsections [
(38)
] 
(34)
(a) through (c);
[
(39)
] 
(35)
 sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for
industrial use;
[
(40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
amusement, entertainment, or recreation an unassisted amusement device as defined in Section
59-12-102
;
]
[
(b) if a seller that sells or rents at the same business location the right to use or operate
for amusement, entertainment, or recreation one or more unassisted amusement devices and
one or more assisted amusement devices, the exemption described in Subsection (40)(a)
applies if the seller separately accounts for the sales or rentals of the right to use or operate for
amusement, entertainment, or recreation for the assisted amusement devices; and
]
[
(c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, the commission may make rules:
]
[
(i) governing the circumstances under which sales are at the same business location;
and
]
[
(ii) establishing the procedures and requirements for a seller to separately account for
the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
assisted amusement devices;
]
[
(41)
] 
(36)
 (a) sales of photocopies by:
(i) a governmental entity; or
(ii) an entity within the state system of public education, including:
(A) a school; or
(B) the State Board of Education; or
(b) sales of publications by a governmental entity;
[
(42) amounts paid for admission to an athletic event at an institution of higher
education that is subject to the provisions of Title IX of the Education Amendments of 1972,
U.S.C. Sec. 1681 et seq.;
]
[
(43)
] 
(37)
 (a) sales made to or by:
(i) an area agency on aging; or
(ii) a senior citizen center owned by a county, city, or town; or
(b) sales made by a senior citizen center that contracts with an area agency on aging;
[
(44)
] 
(38)
 sales or leases of semiconductor fabricating, processing, research, or
development materials regardless of whether the semiconductor fabricating, processing,
research, or development materials:
(a) actually come into contact with a semiconductor; or
(b) ultimately become incorporated into real property;
[
(45)
] 
(39)
 an amount paid by or charged to a purchaser for accommodations and
services described in Subsection 
59-12-103
(1)(i) to the extent the amount is exempt under
Section 
59-12-104.2
;
[
(46) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
sports event registration certificate in accordance with Section 
41-3-306
 for the event period
specified on the temporary sports event registration certificate;
]
[
(47)
] 
(40)
 (a) sales or uses of electricity, if the sales or uses are made under a retail
tariff adopted by the Public Service Commission only for purchase of electricity produced from
a new alternative energy source built after January 1, 2016, as designated in the tariff by the
Public Service Commission; and
(b) for a residential use customer only, the exemption under Subsection [
(47)
] 
(40)
(a)
applies only to the portion of the tariff rate a customer pays under the tariff described in
Subsection [
(47)
] 
(40)
(a) that exceeds the tariff rate under the tariff described in Subsection
[
(47)
] 
(40)
(a) that the customer would have paid absent the tariff;
[
(48)
] 
(41)
 sales or rentals of mobility enhancing equipment if a person presents a
prescription for the mobility enhancing equipment;
[
(49)
] 
(42)
 sales of water in a:
(a) pipe;
(b) conduit;
(c) ditch; or
(d) reservoir;
[
(50)
] 
(43)
 sales of currency or coins that constitute legal tender of a state, the United
States, or a foreign nation;
[
(51)
] 
(44)
 (a) sales of an item described in Subsection [
(51)
] 
(44)
(b) if the item:
(i) does not constitute legal tender of a state, the United States, or a foreign nation; and
(ii) has a gold, silver, or platinum content of 50% or more; and
(b) Subsection [
(51)
] 
(44)
(a) applies to a gold, silver, or platinum:
(i) ingot;
(ii) bar;
(iii) medallion; or
(iv) decorative coin;
[
(52)
] 
(45)
 amounts paid on a sale-leaseback transaction;
[
(53)
] 
(46)
 sales of a prosthetic device:
(a) for use on or in a human; and
(b) (i) for which a prescription is required; or
(ii) if the prosthetic device is purchased by a hospital or other medical facility;
[
(54)
] 
(47)
 (a) except as provided in Subsection [
(54)
] 
(47)
(b), purchases, leases, or
rentals of machinery or equipment by an establishment described in Subsection [
(54)
] 
(47)
(c) if
the machinery or equipment is primarily used in the production or postproduction of the
following media for commercial distribution:
(i) a motion picture;
(ii) a television program;
(iii) a movie made for television;
(iv) a music video;
(v) a commercial;
(vi) a documentary; or
(vii) a medium similar to Subsections [
(54)
] 
(47)
(a)(i) through (vi) as determined by
the commission by administrative rule made in accordance with Subsection [
(54)
] 
(47)
(d); or
(b) purchases, leases, or rentals of machinery or equipment by an establishment
described in Subsection [
(54)
] 
(47)
(c) that is used for the production or postproduction of the
following are subject to the taxes imposed by this chapter:
(i) a live musical performance;
(ii) a live news program; or
(iii) a live sporting event;
(c) the following establishments listed in the 1997 North American Industry
Classification System of the federal Executive Office of the President, Office of Management
and Budget, apply to Subsections [
(54)
] 
(47)
(a) and (b):
(i) NAICS Code 512110; or
(ii) NAICS Code 51219; and
(d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule:
(i) prescribe what constitutes a medium similar to Subsections [
(54)
] 
(47)
(a)(i) through
(vi); or
(ii) define:
(A) "commercial distribution";
(B) "live musical performance";
(C) "live news program"; or
(D) "live sporting event";
[
(55)
] 
(48)
 (a) leases of seven or more years or purchases made on or after July 1,
2004, but on or before June 30, 2027, of tangible personal property that:
(i) is leased or purchased for or by a facility that:
(A) is an alternative energy electricity production facility;
(B) is located in the state; and
(C) (I) becomes operational on or after July 1, 2004; or
(II) has its generation capacity increased by one or more megawatts on or after July 1,
2004, as a result of the use of the tangible personal property;
(ii) has an economic life of five or more years; and
(iii) is used to make the facility or the increase in capacity of the facility described in
Subsection [
(55)
] 
(48)
(a)(i) operational up to the point of interconnection with an existing
transmission grid including:
(A) a wind turbine;
(B) generating equipment;
(C) a control and monitoring system;
(D) a power line;
(E) substation equipment;
(F) lighting;
(G) fencing;
(H) pipes; or
(I) other equipment used for locating a power line or pole; and
(b) this Subsection [
(55)
] 
(48)
 does not apply to:
(i) tangible personal property used in construction of:
(A) a new alternative energy electricity production facility; or
(B) the increase in the capacity of an alternative energy electricity production facility;
(ii) contracted services required for construction and routine maintenance activities;
and
(iii) unless the tangible personal property is used or acquired for an increase in capacity
of the facility described in Subsection [
(55)
] 
(48)
(a)(i)(C)(II), tangible personal property used
or acquired after:
(A) the alternative energy electricity production facility described in Subsection [
(55)
]
(48)
(a)(i) is operational as described in Subsection [
(55)
] 
(48)
(a)(iii); or
(B) the increased capacity described in Subsection [
(55)
] 
(48)
(a)(i) is operational as
described in Subsection [
(55)
] 
(48)
(a)(iii);
[
(56)
] 
(49)
 (a) leases of seven or more years or purchases made on or after July 1,
2004, but on or before June 30, 2027, of tangible personal property that:
(i) is leased or purchased for or by a facility that:
(A) is a waste energy production facility;
(B) is located in the state; and
(C) (I) becomes operational on or after July 1, 2004; or
(II) has its generation capacity increased by one or more megawatts on or after July 1,
2004, as a result of the use of the tangible personal property;
(ii) has an economic life of five or more years; and
(iii) is used to make the facility or the increase in capacity of the facility described in
Subsection [
(56)
] 
(49)
(a)(i) operational up to the point of interconnection with an existing
transmission grid including:
(A) generating equipment;
(B) a control and monitoring system;
(C) a power line;
(D) substation equipment;
(E) lighting;
(F) fencing;
(G) pipes; or
(H) other equipment used for locating a power line or pole; and
(b) this Subsection [
(56)
] 
(49)
 does not apply to:
(i) tangible personal property used in construction of:
(A) a new waste energy facility; or
(B) the increase in the capacity of a waste energy facility;
(ii) contracted services required for construction and routine maintenance activities;
and
(iii) unless the tangible personal property is used or acquired for an increase in capacity
described in Subsection [
(56)
] 
(49)
(a)(i)(C)(II), tangible personal property used or acquired
after:
(A) the waste energy facility described in Subsection [
(56)
] 
(49)
(a)(i) is operational as
described in Subsection [
(56)
] 
(49)
(a)(iii); or
(B) the increased capacity described in Subsection [
(56)
] 
(49)
(a)(i) is operational as
described in Subsection [
(56)
] 
(49)
(a)(iii);
[
(57)
] 
(50)
 (a) leases of five or more years or purchases made on or after July 1, 2004,
but on or before June 30, 2027, of tangible personal property that:
(i) is leased or purchased for or by a facility that:
(A) is located in the state;
(B) produces fuel from alternative energy, including:
(I) methanol; or
(II) ethanol; and
(C) (I) becomes operational on or after July 1, 2004; or
(II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004, as
a result of the installation of the tangible personal property;
(ii) has an economic life of five or more years; and
(iii) is installed on the facility described in Subsection [
(57)
] 
(50)
(a)(i);
(b) this Subsection [
(57)
] 
(50)
 does not apply to:
(i) tangible personal property used in construction of:
(A) a new facility described in Subsection [
(57)
] 
(50)
(a)(i); or
(B) the increase in capacity of the facility described in Subsection [
(57)
] 
(50)
(a)(i); or
(ii) contracted services required for construction and routine maintenance activities;
and
(iii) unless the tangible personal property is used or acquired for an increase in capacity
described in Subsection [
(57)
] 
(50)
(a)(i)(C)(II), tangible personal property used or acquired
after:
(A) the facility described in Subsection [
(57)
] 
(50)
(a)(i) is operational; or
(B) the increased capacity described in Subsection [
(57)
] 
(50)
(a)(i) is operational;
[
(58)
] 
(51)
 (a) subject to Subsection [
(58)(b) or (c)
] 
(51)(b)
, sales of tangible personal
property or a product transferred electronically to a person within this state if that tangible
personal property or product transferred electronically is subsequently shipped outside the state
and incorporated pursuant to contract into and becomes a part of real property located outside
of this state; 
and
(b) the exemption under Subsection [
(58)
] 
(51)
(a) is not allowed to the extent that the
other state or political entity to which the tangible personal property is shipped imposes a sales,
use, gross receipts, or other similar transaction excise tax on the transaction against which the
other state or political entity allows a credit for sales and use taxes imposed by this chapter;
[
and
]
[
(c) notwithstanding the time period of Subsection 
59-1-1410
(8) for filing for a refund,
a person may claim the exemption allowed by this Subsection (58) for a sale by filing for a
refund:
]
[
(i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
]
[
(ii) as if this Subsection (58) as in effect on July 1, 2008, were in effect on the day on
which the sale is made;
]
[
(iii) if the person did not claim the exemption allowed by this Subsection (58) for the
sale prior to filing for the refund;
]
[
(iv) for sales and use taxes paid under this chapter on the sale;
]
[
(v) in accordance with Section 
59-1-1410
; and
]
[
(vi) subject to any extension allowed for filing for a refund under Section 
59-1-1410
,
if the person files for the refund on or before June 30, 2011;
]
[
(59) purchases:
]
[
(a) of one or more of the following items in printed or electronic format:
]
[
(i) a list containing information that includes one or more:
]
[
(A) names; or
]
[
(B) addresses; or
]
[
(ii) a database containing information that includes one or more:
]
[
(A) names; or
]
[
(B) addresses; and
]
[
(b) used to send direct mail;
]
[
(60)
] 
(52)
 redemptions or repurchases of a product by a person if that product was:
(a) delivered to a pawnbroker as part of a pawn transaction; and
(b) redeemed or repurchased within the time period established in a written agreement
between the person and the pawnbroker for redeeming or repurchasing the product;
[
(61)
] 
(53)
 (a) purchases or leases of an item described in Subsection [
(61)
] 
(53)
(b) if
the item:
(i) is purchased or leased by, or on behalf of, a telecommunications service provider;
and
(ii) has a useful economic life of one or more years; and
(b) the following apply to Subsection [
(61)
] 
(53)
(a):
(i) telecommunications enabling or facilitating equipment, machinery, or software;
(ii) telecommunications equipment, machinery, or software required for 911 service;
(iii) telecommunications maintenance or repair equipment, machinery, or software;
(iv) telecommunications switching or routing equipment, machinery, or software; or
(v) telecommunications transmission equipment, machinery, or software;
[
(62)
] 
(54)
 (a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of
tangible personal property or a product transferred electronically that are used in the research
and development of alternative energy technology; and
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may, for purposes of Subsection [
(62)
] 
(54)
(a), make rules defining what
constitutes purchases of tangible personal property or a product transferred electronically that
are used in the research and development of alternative energy technology;
[
(63)
] 
(55)
 (a) purchases of tangible personal property or a product transferred
electronically if:
(i) the tangible personal property or product transferred electronically is:
(A) purchased outside of this state;
(B) brought into this state at any time after the purchase described in Subsection [
(63)
]
(55)
(a)(i)(A); and
(C) used in conducting business in this state; and
(ii) for:
(A) tangible personal property or a product transferred electronically other than the
tangible personal property described in Subsection [
(63)
] 
(55)
(a)(ii)(B), the first use of the
property for a purpose for which the property is designed occurs outside of this state; or
(B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
outside of this state;
(b) the exemption provided for in Subsection [
(63)
] 
(55)
(a) does not apply to:
(i) a lease or rental of tangible personal property or a product transferred electronically;
or
(ii) a sale of a vehicle exempt under Subsection [
(33)
] 
(30)
; and
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
purposes of Subsection [
(63)
] 
(55)
(a), the commission may by rule define what constitutes the
following:
(i) conducting business in this state if that phrase has the same meaning in this
Subsection [
(63)
] 
(55)
 as in Subsection [
(24)
] 
(21)
;
(ii) the first use of tangible personal property or a product transferred electronically if
that phrase has the same meaning in this Subsection [
(63)
] 
(55)
 as in Subsection [
(24)
] 
(21)
; or
(iii) a purpose for which tangible personal property or a product transferred
electronically is designed if that phrase has the same meaning in this Subsection [
(63)
] 
(55)
 as
in Subsection [
(24)
] 
(21)
;
[
(64)
] 
(56)
 sales of disposable home medical equipment or supplies if:
(a) a person presents a prescription for the disposable home medical equipment or
supplies;
(b) the disposable home medical equipment or supplies are used exclusively by the
person to whom the prescription described in Subsection [
(64)
] 
(56)
(a) is issued; and
(c) the disposable home medical equipment and supplies are listed as eligible for
payment under:
(i) Title XVIII, federal Social Security Act; or
(ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
[
(65) sales:
]
[
(a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
District Act; or
]
[
(b) of tangible personal property to a subcontractor of a public transit district, if the
tangible personal property is:
]
[
(i) clearly identified; and
]
[
(ii) installed or converted to real property owned by the public transit district;
]
[
(66)
] 
(57)
 sales of construction materials:
(a) purchased on or after July 1, 2010;
(b) purchased by, on behalf of, or for the benefit of an international airport:
(i) located within a county of the first class; and
(ii) that has a United States customs office on its premises; and
(c) if the construction materials are:
(i) clearly identified;
(ii) segregated; and
(iii) installed or converted to real property:
(A) owned or operated by the international airport described in Subsection [
(66)
]
(57)
(b); and
(B) located at the international airport described in Subsection [
(66)
] 
(57)
(b);
[
(67)
] 
(58)
 sales of construction materials:
(a) purchased on or after July 1, 2008;
(b) purchased by, on behalf of, or for the benefit of a new airport:
(i) located within a county of the second class; and
(ii) that is owned or operated by a city in which an airline as defined in Section
59-2-102
 is headquartered; and
(c) if the construction materials are:
(i) clearly identified;
(ii) segregated; and
(iii) installed or converted to real property:
(A) owned or operated by the new airport described in Subsection [
(67)
] 
(58)
(b);
(B) located at the new airport described in Subsection [
(67)
] 
(58)
(b); and
(C) as part of the construction of the new airport described in Subsection [
(67)
]
(58)
(b);
[
(68) sales of fuel to a common carrier that is a railroad for use in a locomotive
engine;
]
[
(69)
] 
(59)
 purchases and sales described in Section 
63H-4-111
;
[
(70)
] 
(60)
 (a) sales of tangible personal property to an aircraft maintenance, repair, and
overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
lists a state or country other than this state as the location of registry of the fixed wing turbine
powered aircraft; or
(b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
lists a state or country other than this state as the location of registry of the fixed wing turbine
powered aircraft;
[
(71) subject to Section 
59-12-104.4
, sales of a textbook for a higher education
course:
]
[
(a) to a person admitted to an institution of higher education; and
]
[
(b) by a seller, other than a bookstore owned by an institution of higher education, if
51% or more of that seller's sales revenue for the previous calendar quarter are sales of a
textbook for a higher education course;
]
[
(72)
] 
(61)
 a license fee or tax a municipality imposes in accordance with Subsection
10-1-203
(5) on a purchaser from a business for which the municipality provides an enhanced
level of municipal services;
[
(73)
] 
(62)
 amounts paid or charged for construction materials used in the construction
of a new or expanding life science research and development facility in the state, if the
construction materials are:
(a) clearly identified;
(b) segregated; and
(c) installed or converted to real property;
[
(74)
] 
(63)
 amounts paid or charged for:
(a) a purchase or lease of machinery and equipment that:
(i) are used in performing qualified research:
(A) as defined in Section 41(d), Internal Revenue Code; and
(B) in the state; and
(ii) have an economic life of three or more years; and
(b) normal operating repair or replacement parts:
(i) for the machinery and equipment described in Subsection [
(74)
] 
(63)
(a); and
(ii) that have an economic life of three or more years;
[
(75)
] 
(64)
 a sale or lease of tangible personal property used in the preparation of
prepared food if:
(a) for a sale:
(i) the ownership of the seller and the ownership of the purchaser are identical; and
(ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
tangible personal property prior to making the sale; or
(b) for a lease:
(i) the ownership of the lessor and the ownership of the lessee are identical; and
(ii) the lessor or the lessee paid a tax under this chapter on the purchase of that tangible
personal property prior to making the lease;
[
(76)
] 
(65)
 (a) purchases of machinery or equipment if:
(i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
Gambling, and Recreation Industries, of the 2012 North American Industry Classification
System of the federal Executive Office of the President, Office of Management and Budget;
(ii) the machinery or equipment:
(A) has an economic life of three or more years; and
(B) is used by one or more persons who pay admission or user fees described in
Subsection 
59-12-103
(1)(f) to the purchaser of the machinery and equipment; and
(iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
(A) amounts paid or charged as admission or user fees described in Subsection
59-12-103
(1)(f); and
(B) subject to taxation under this chapter; and
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules for verifying that 51% of a purchaser's sales revenue for the
previous calendar quarter is:
(i) amounts paid or charged as admission or user fees described in Subsection
59-12-103
(1)(f); and
(ii) subject to taxation under this chapter;
[
(77)
] 
(66)
 purchases of a short-term lodging consumable by a business that provides
accommodations and services described in Subsection 
59-12-103
(1)(i);
[
(78) amounts paid or charged to access a database:
]
[
(a) if the primary purpose for accessing the database is to view or retrieve information
from the database; and
]
[
(b) not including amounts paid or charged for a:
]
[
(i) digital audiowork;
]
[
(ii) digital audio-visual work; or
]
[
(iii) digital book;
]
[
(79)
] 
(67)
 amounts paid or charged for a purchase or lease made by an electronic
financial payment service, of:
(a) machinery and equipment that:
(i) are used in the operation of the electronic financial payment service; and
(ii) have an economic life of three or more years; and
(b) normal operating repair or replacement parts that:
(i) are used in the operation of the electronic financial payment service; and
(ii) have an economic life of three or more years;
[
(80)
] 
(68)
 [
beginning on April 1, 2013,
] sales of a fuel cell as defined in Section
54-15-102
;
[
(81)
] 
(69)
 amounts paid or charged for a purchase or lease of tangible personal
property or a product transferred electronically if the tangible personal property or product
transferred electronically:
(a) is stored, used, or consumed in the state; and
(b) is temporarily brought into the state from another state:
(i) during a disaster period as defined in Section 
53-2a-1202
;
(ii) by an out-of-state business as defined in Section 
53-2a-1202
;
(iii) for a declared state disaster or emergency as defined in Section 
53-2a-1202
; and
(iv) for disaster- or emergency-related work as defined in Section 
53-2a-1202
;
[
(82)
] 
(70)
 sales of goods and services at a morale, welfare, and recreation facility, as
defined in Section 
39-9-102
, made pursuant to Title 39, Chapter 9, State Morale, Welfare, and
Recreation Program;
[
(83)
] 
(71)
 amounts paid or charged for a purchase or lease of molten magnesium;
[
(84)
] 
(72)
 amounts paid or charged for a purchase or lease made by a qualifying
[
enterprise
] data center 
or an occupant of a qualifying data center
 of machinery, equipment, or
normal operating repair or replacement parts, if the machinery, equipment, or normal operating
repair or replacement parts:
(a) are used in [
the operation of the establishment; and
]
:
(i) the operation of the qualifying data center; or
(ii) the occupant's operations in the qualifying data center; and
(b) have an economic life of one or more years;
[
(85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a
vehicle that includes cleaning or washing of the interior of the vehicle;
]
[
(86)
] 
(73)
 amounts paid or charged for a purchase or lease of machinery, equipment,
normal operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or
supplies used or consumed:
(a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
in Section 
63M-4-701
 located in the state;
(b) if the machinery, equipment, normal operating repair or replacement parts,
catalysts, chemicals, reagents, solutions, or supplies are used or consumed in:
(i) the production process to produce gasoline or diesel fuel, or at which blendstock is
added to gasoline or diesel fuel;
(ii) research and development;
(iii) transporting, storing, or managing raw materials, work in process, finished
products, and waste materials produced from refining gasoline or diesel fuel, or adding
blendstock to gasoline or diesel fuel;
(iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
refining; or
(v) preventing, controlling, or reducing pollutants from refining; and
(c) beginning on July 1, 2021, if the person has obtained a form certified by the Office
of Energy Development under Subsection 
63M-4-702
(2);
[
(87)
] 
(74)
 amounts paid to or charged by a proprietor for accommodations and
services, as defined in Section 
63H-1-205
, if the proprietor is subject to the MIDA
accommodations tax imposed under Section 
63H-1-205
;
[
(88)
] 
(75)
 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; [
and
]
[
(89)
] 
(76)
 amounts paid or charged for an item exempt under Section 
59-12-104.10
[
.
]
;
(77) if paid for through a machine that accepts only cash for payment and if the
machine is the only method by which to pay:
(a) sales of cleaning or washing of tangible personal property if the cleaning or
washing of the tangible personal property is not assisted cleaning or washing of tangible
personal property;
(b) sales of food and food ingredients or prepared food from a vending machine if:
(i) the proceeds of each sale do not exceed $1; and
(ii) the seller or operator of the vending machine reports an amount equal to 150% of
the cost of the food and food ingredients or prepared food as goods consumed;
(c) sales or rentals of the right to use or operate an unassisted amusement device for
amusement, entertainment, or recreation; and
(78) amounts paid or charged for tangible personal property that:
(a) is not electricity, gas, machinery, equipment, vehicles, parts, office equipment, or
office supplies; and
(b) is consumed as part of a service described in Subsection 
59-12-103
(1)(g), (h), or
(j).
Section 48. Section 
59-12-104.5
 is amended to read:
59-12-104.5.
Revenue and Taxation Interim Committee review of sales and use
taxes.
The Revenue and Taxation Interim Committee shall:
(1) review Subsection 
59-12-104
[
(28)
]
(25)
 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; and
(2) review Subsection 
59-12-104
[
(21)
]
(18)
 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. 
Section 49. Section 
59-12-1201
 is amended to read:
59-12-1201.
Motor vehicle rental tax -- Rate -- Exemptions -- Administration,
collection, and enforcement of tax -- Administrative charge -- Deposits.
(1) (a) Except as provided in Subsection (3), there is imposed a tax of [
2.5%
] 
4%
 on all
short-term leases and rentals of motor vehicles not exceeding 30 days.
(b) The tax imposed in this section is in addition to all other state, county, or municipal
fees and taxes imposed on rentals of motor vehicles.
(2) (a) Subject to Subsection (2)(b), a tax rate repeal or tax rate change for the tax
imposed under Subsection (1) shall take effect on the first day of a calendar quarter.
(b) (i) For a transaction subject to a tax under Subsection (1), a tax rate increase shall
take effect on the first day of the first billing period:
(A) that begins after the effective date of the tax rate increase; and
(B) if the billing period for the transaction begins before the effective date of a tax rate
increase imposed under Subsection (1).
(ii) For a transaction subject to a tax under Subsection (1), the repeal of a tax or a tax
rate decrease shall take effect on the first day of the last billing period:
(A) that began before the effective date of the repeal of the tax or the tax rate decrease;
and
(B) if the billing period for the transaction begins before the effective date of the repeal
of the tax or the tax rate decrease imposed under Subsection (1).
(3) A motor vehicle is exempt from the tax imposed under Subsection (1) if:
(a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;
(b) the motor vehicle is rented as a personal household goods moving van; or
(c) the lease or rental of the motor vehicle is made for the purpose of temporarily
replacing a person's motor vehicle that is being repaired pursuant to a repair agreement or an
insurance agreement.
(4) (a) (i) The tax authorized under this section shall be administered, collected, and
enforced in accordance with:
(A) the same procedures used to administer, collect, and enforce the tax under Part 1,
Tax Collection; and
(B) Chapter 1, General Taxation Policies.
(ii) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
Subsections 
59-12-103
(4) through (10) or Section 
59-12-107.1
 or 
59-12-123
.
(b) The commission shall retain and deposit an administrative charge in accordance
with Section 
59-1-306
 from the [
revenues
] 
revenue
 the commission collects from a tax under
this part.
(c) Except as provided under Subsection (4)(b), all revenue received by the
commission under this section shall be deposited daily with the state treasurer and credited
monthly to the Marda Dillree Corridor Preservation Fund under Section 
72-2-117
.
Section 50. Section 
59-13-202
 is amended to read:
59-13-202.
Refund of tax for agricultural uses on individual income and
corporate franchise and income tax returns -- Application for permit for refund --
Division of Finance to pay claims -- Rules permitted to enforce part -- Penalties --
Revenue and Taxation Interim Committee study.
(1) As used in this section:
(a) (i) Except at provided in Subsection (1)(a)(ii), "claimant" means a resident or
nonresident person.
(ii) "Claimant" does not include an estate or trust.
(b) "Estate" means a nonresident estate or a resident estate.
(c) "Refundable tax credit" or "tax credit" means a tax credit that a claimant, estate, or
trust may claim:
(i) as provided by statute; and
(ii) regardless of whether, for the taxable year for which the claimant, estate, or trust
claims the tax credit, the claimant, estate, or trust has a tax liability under:
(A) Chapter 7, Corporate Franchise and Income Taxes; or
(B) Chapter 10, Individual Income Tax Act.
(d) "Trust" means a nonresident trust or a resident trust.
(2) Any claimant, estate, or trust that purchases and uses any motor fuel within the state
for the purpose of operating or propelling stationary farm engines and self-propelled farm
machinery used for nonhighway agricultural uses, and that has paid the tax on the motor fuel as
provided by this part, is entitled to a refund of the tax subject to the conditions and limitations
provided under this part.
(3) (a) A claimant, estate, or trust desiring a nonhighway agricultural use refund under
this part shall claim the refund as a refundable tax credit on the tax return the claimant, estate,
or trust files under:
(i) Chapter 7, Corporate Franchise and Income Taxes; or
(ii) Chapter 10, Individual Income Tax Act.
(b) A claimant, estate, or trust not subject to filing a tax return described in Subsection
(3)(a) shall obtain a permit and file claims on a calendar year basis.
(c) Any claimant, estate, or trust claiming a refundable tax credit under this section is
required to furnish any or all of the information outlined in this section upon request of the
commission.
(d) A refundable tax credit under this section is allowed only on purchases on which
tax is paid during the taxable year covered by the tax return.
(4) In order to obtain a permit for a refund of motor fuel tax paid, an application shall
be filed containing:
(a) the name of the claimant, estate, or trust;
(b) the claimant's, estate's, or trust's address;
(c) location and number of acres owned and operated, location and number of acres
rented and operated, the latter of which shall be verified by a signed statement from the legal
owner;
(d) number of acres planted to each crop, type of soil, and whether irrigated or dry; and
(e) make, size, and type of fuel used and power rating of each piece of equipment using
fuel. If the claimant, estate, or trust is an operator of self-propelled or tractor-pulled farm
machinery with which the claimant, estate, or trust works for hire doing custom jobs for other
farmers, the application shall include information the commission requires and shall all be
contained in, and be considered part of, the original application. The claimant, estate, or trust
shall also file with the application a certificate from the county assessor showing each piece of
equipment using fuel. This original application and all information contained in it constitutes a
permanent file with the commission in the name of the claimant, estate, or trust.
(5) A claimant, estate, or trust claiming the right to a refund of motor fuel tax paid shall
file a claim with the commission by April 15 of each year for the refund for the previous
calendar year. The claim shall state the name and address of the claimant, estate, or trust, the
number of gallons of motor fuel purchased for nonhighway agricultural uses, and the amount
paid for the motor fuel. The claimant, estate, or trust shall retain the original invoice to support
the claim. No more than one claim for a tax refund may be filed annually by each user of
motor fuel purchased for nonhighway agricultural uses.
(6) Upon commission approval of the claim for a refund, the Division of Finance shall
pay the amount found due to the claimant, estate, or trust. The total amount of claims for
refunds shall be paid from motor fuel taxes.
(7) The commission may refuse to accept as evidence of purchase or payment any
instruments that show alteration or that fail to indicate the quantity of the purchase, the price of
the motor fuel, a statement that the motor fuel is purchased for purposes other than
transportation, and the date of purchase and delivery. If the commission is not satisfied with
the evidence submitted in connection with the claim, the commission may reject the claim or
require additional evidence.
(8) A claimant, estate, or trust aggrieved by the decision of the commission with
respect to a refundable tax credit or refund may file a request for agency action, requesting a
hearing before the commission.
(9) A claimant, estate, or trust that makes any false claim, report, or statement, as
claimant, estate, trust, agent, or creditor, with intent to defraud or secure a refund to which the
claimant, estate, or trust is not entitled, is subject to the criminal penalties provided under
Section 
59-1-401
, and the commission shall initiate the filing of a complaint for alleged
violations of this part. In addition to these penalties, the claimant, estate, or trust may not
receive any refund as a claimant, estate, or trust or as a creditor of a claimant, estate, or trust for
refund for a period of five years.
[
(10) (a) In accordance with any rules prescribed by the commission under Subsection
(10)(b), the Division of Finance shall transfer at least annually from the Transportation Fund
into the Education Fund an amount equal to the amount of the refund claimed under this
section.
]
[
(b)
] 
(10)
 In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
Act, the commission may make rules providing procedures for:
(i) making a refund to a claimant, estate, or trust as required by Subsection (3)(a)(i); 
or
[
(ii) making a transfer from the Transportation Fund into the Education Fund as
required by Subsection (10)(a); or
]
[
(iii)
] 
(ii)
 enforcing this part.
(11) (a) On or before November 30, 2017, and every three years after 2017, the
Revenue and Taxation Interim Committee shall review the tax credit provided by this section
and make recommendations concerning whether the tax credit should be continued, modified,
or repealed.
(b) In conducting the review required by Subsection (11)(a), the Revenue and Taxation
Interim Committee shall:
(i) schedule time on at least one committee agenda to conduct the review;
(ii) invite state agencies, individuals, and organizations concerned with the credit under
review to provide testimony;
(iii) ensure that the recommendations described in this section include an evaluation of:
(A) the cost of the tax credit to the state;
(B) the purpose and effectiveness of the tax credit; and
(C) the extent to which the state benefits from the tax credit; and
(iv) undertake other review efforts as determined by the chairs of the Revenue and
Taxation Interim Committee.
Section 51. Section 
59-13-323
 is enacted to read:
 59-13-323.
Additional special fuel tax on diesel fuel.
(1) A supplier shall pay an additional special fuel tax on diesel fuel that is subject to
the special fuel tax imposed under Section 
59-13-301
 in an amount equal to:
(a) beginning on April 1, 2020, and ending on December 31, 2021, six cents per gallon;
and
(b) beginning on January 1, 2022, 10 cents per gallon.
(2) (a) The commission shall deposit daily the revenue that the commission collects
under this section with the state treasurer.
(b) Notwithstanding Section 
59-13-301
, the state treasurer shall credit the revenue
deposited in accordance with Subsection (2)(a) to the Transportation Investment Fund of 2005
created in Section 
72-2-124
.
(3) (a) A person entitled to a refund of a special fuel tax under this part may receive a
refund of the additional special fuel tax due under this section for the same gallons that the
person is entitled to a refund of a special fuel tax.
(b) Notwithstanding Section 
59-13-318
, the total amount of claims for refunds under
Subsection (3)(a) shall be paid from the Transportation Investment Fund of 2005.
(4) Beginning in 2021, the commission shall submit annually on or before October 1,
an electronic report to a legislative committee designated by the Legislative Management
Committee that:
(a) states the amount of revenue collected from the tax imposed under Section
59-13-323
 during the preceding fiscal year; and
(b) provides an estimate of the revenue that will be collected from the tax imposed
under Section 
59-13-323
 during the current fiscal year.
Section 52. Section 
59-13-601
 is enacted to read:
Part 6. Sales Tax on Motor Fuel and Special Fuel, Other than Diesel Fuel
 59-13-601.
Sales tax on motor fuel and special fuel, other than diesel fuel.
(1) (a) As used in this part, "nondiesel special fuel" means special fuel, other than
diesel fuel.
(b) For purposes of this part, the definitions in Section 
59-13-102
 that contain the
words special fuel in the definition shall be read as though the words special fuel were replaced
with nondiesel special fuel.
(2) (a) Beginning on April 1, 2020, and subject to the other provisions of this
Subsection (2), a sales tax is imposed on motor fuel and nondiesel special fuel at an amount
equal to the product of:
(i) the rate described in Subsection 
59-12-103
(2)(a)(i)(A);
(ii) the average daily rack price, calculated in accordance with Subsection (3) or (4);
and
(iii) (A) the number of gallons of motor fuel;
(B) the number of diesel gallon equivalent for liquified natural gas;
(C) the number of gasoline gallon equivalent for compressed natural gas or hydrogen;
or
(D) the number of units sold of nondiesel special fuel that is not liquified natural gas,
compressed natural gas, or hydrogen.
(b) (i) The distributor shall pay the tax on motor fuel.
(ii) The supplier shall pay the tax on nondiesel special fuel.
(c) (i) Except as provided in Subsection (2)(c)(iii), the provisions of Part 2, Motor
Fuel, apply to the sales tax imposed by this section on motor fuel.
(ii) Except as provided in Subsection (2)(c)(iii), the provisions of Part 3, Special Fuel,
apply to the sales tax imposed by this section on nondiesel special fuel.
(iii) (A) The sales tax rate on motor fuel and nondiesel special fuel is as provided in
this Subsection (2).
(B) The treasurer shall deposit the revenue collected from the sales tax imposed under
this section into the Transportation Investment Fund of 2005 created in Section 
72-2-124
.
(C) The commission shall pay any refunds from the Transportation Investment Fund of
created in Section 72-2-124.
(3) (a) The commission shall determine annually the average daily rack price for motor
fuel.
(b) For the 2020 calendar year, the commission shall make the determination required
by Subsection (3)(a) by:
(i) calculating the previous fiscal year statewide average rack price of a gallon of
regular unleaded motor fuel, excluding federal and state excise taxes, for the 12 months ending
on the previous June 30 as published by an oil pricing service; and
(ii) rounding to the nearest one-hundredth of a cent.
(c) For the 2021 calendar year, the commission shall make the determination required
by Subsection (3)(a) by:
(i) calculating the previous two fiscal years' statewide average rack price of a gallon of
regular unleaded motor fuel, excluding federal and state excise taxes, for the 24 months ending
on the previous June 30 as published by an oil pricing service.
(d) Beginning on January 1, 2022, the commission shall make the determination
required by Subsection (3)(a) by:
(i) calculating the previous three fiscal years' statewide average rack price of a gallon
of regular unleaded motor fuel, excluding federal and state excise taxes, for the 36 months
ending on the previous June 30 as published by an oil pricing service; and
(ii) rounding to the nearest one-hundredth of a cent.
(e) If the average daily rack price of a gallon of motor fuel determined under
Subsection (3)(c) or (d) is less than the average daily rack price of a gallon of motor fuel
calculated in accordance with Subsection (3)(b), the average daily rack price shall be the
average daily rack price calculated in accordance with Subsection (3)(b).
(4) The average daily rack price for nondiesel special fuel is the product of:
(a) the average daily rack price calculated in accordance with Subsection (3); and
(b) the percentage calculated by dividing the rate calculated in accordance with
Subsection 
59-13-301
(12) by the rate calculated in accordance with Subsection 
59-13-201
(1).
(5) (a) The commission shall annually:
(i) publish the average daily rack prices calculated in accordance with Subsections (3)
and (4); and
(ii) post or otherwise make public the average daily rack prices no later than 60 days
prior to the annual effective date under Subsection (5)(b).
(b) The average daily rack price described in Subsection (2) and calculated in
accordance with Subsections (3) and (4) shall take effect:
(i) for the 2020 calendar year, on April 1; and
(ii) beginning with the 2021 calendar year, on January 1 of each year.
Section 53. Section 
63I-2-241
 is enacted to read:
 63I-2-241.
Repeal dates -- Title 41.
Subsection 
41-6a-702
(5), which allows a vehicle with a clean fuel vehicle decal to
travel in a lane designated for the use of high occupancy vehicles regardless of the number of
occupants, is repealed September 30, 2025.
Section 54. Section 
63I-2-253
 is amended to read:
63I-2-253.
 Repeal dates -- Titles 53 through 53G.
(1) (a) Subsections 
53B-2a-103
(2) and (4), regarding the composition of the UTech
Board of Trustees and the transition to that composition, are repealed July 1, 2019.
(b) When repealing Subsections 
53B-2a-103
(2) and (4), the Office of Legislative
Research and General Counsel shall, in addition to its authority under Subsection 
36-12-12
(3),
make necessary changes to subsection numbering and cross references.
(2) (a) Subsection 
53B-2a-108
(5), regarding exceptions to the composition of a
technical college board of directors, is repealed July 1, 2022.
(b) When repealing Subsection 
53B-2a-108
(5), the Office of Legislative Research and
General Counsel shall, in addition to its authority under Subsection 
36-12-12
(3), make
necessary changes to subsection numbering and cross references.
(3) Section 
53B-6-105.7
 is repealed July 1, 2024.
(4) (a) Subsection 
53B-7-705
(6)(b)(ii)(A), the language that states "Except as provided
in Subsection (6)(b)(ii)(B)," is repealed July 1, 2021.
(b) Subsection 
53B-7-705
(6)(b)(ii)(B), regarding comparing a technical college's
change in performance with the technical college's average performance, is repealed July 1,
2021.
(5) (a) Subsection 
53B-7-707
(3)(a)(ii), the language that states "Except as provided in
Subsection (3)(b)," is repealed July 1, 2021.
(b) Subsection 
53B-7-707
(3)(b), regarding performance data of a technical college
during a fiscal year before fiscal year 2020, is repealed July 1, 2021.
(6) Section 
53B-8-112
 is repealed July 1, 2024.
(7) Section 
53B-8-114
 is repealed July 1, 2024.
(8) (a) The following sections, regarding the Regents' scholarship program, are
repealed on July 1, 2023:
(i) Section 
53B-8-202
;
(ii) Section 
53B-8-203
;
(iii) Section 
53B-8-204
; and
(iv) Section 
53B-8-205
.
(b) (i) Subsection 
53B-8-201
(2), regarding the Regents' scholarship program for
students who graduate from high school before fiscal year 2019, is repealed on July 1, 2023.
(ii) When repealing Subsection 
53B-8-201
(2), the Office of Legislative Research and
General Counsel shall, in addition to its authority under Subsection 
36-12-12
(3), make
necessary changes to subsection numbering and cross references.
(9) Section 
53B-10-101
 is repealed on July 1, 2027.
(10) Title 53B, Chapter 18, Part 14, Uintah Basin Air Quality Research Project, is
repealed July 1, 2023.
(11) Section 
53E-3-519
 regarding school counselor services is repealed July 1, 2020.
(12) Section 
53E-3-520
 is repealed July 1, 2021.
(13) Subsection 
53E-5-306
(3)(b)(ii)(B), related to improving school performance and
continued funding relating to the School Recognition and Reward Program, is repealed July 1,
2020.
(14) Section 
53E-5-307
 is repealed July 1, 2020.
(15) In Subsections 
53F-2-205
(4) and (5), regarding the State Board of Education's
duties if contributions from the minimum basic tax rate are overestimated or underestimated,
the language that states "or 
53F-2-301.5
, as applicable" is repealed July 1, 2023.
(16) Subsection 
53F-2-301
(1), relating to the years the section is not in effect, is
repealed July 1, 2023.
(17) In Subsection 
53F-2-515
(1), the language that states "or 
53F-2-301.5
, as
applicable" is repealed July 1, 2023.
(18) Section 
53F-4-204
 is repealed July 1, 2019.
(19) In Subsection 
53F-9-302
(3), the language that states "or 
53F-2-301.5
, as
applicable" is repealed July 1, 2023.
(20) Section 
53F-9-304
 is repealed July 1, 2020.
[
(20)
] 
(21)
 In Subsection 
53F-9-305
(3)(a), the language that states "or 
53F-2-301.5
, as
applicable" is repealed July 1, 2023.
[
(21)
] 
(22)
 In Subsection 
53F-9-306
(3)(a), the language that states "or 
53F-2-301.5
, as
applicable" is repealed July 1, 2023.
[
(22)
] 
(23)
 In Subsection 
53G-3-304
(1)(c)(i), the language that states "or 
53F-2-301.5
,
as applicable" is repealed July 1, 2023.
[
(23)
] 
(24)
 On July 1, 2023, when making changes in this section, the Office of
Legislative Research and General Counsel shall, in addition to the office's authority under
Subsection 
36-12-12
(3), make corrections necessary to ensure that sections and subsections
identified in this section are complete sentences and accurately reflect the office's perception of
the Legislature's intent.
Section 55. Section 
63I-2-259
 is amended to read:
63I-2-259.
Repeal dates -- Title 59.
[
(1) Section 
59-1-102
 is repealed on May 14, 2019.
]
[
(2)
] 
(1)
 In Section 
59-2-926
, the language that states "applicable" and "or
53F-2-301.5
" is repealed July 1, 2023.
[
(3) Subsection 
59-2-1007
(15) is repealed on December 31, 2018.
]
(2) Section 
59-10-1018.1
 is repealed January 1, 2021.
(3) Section 
59-10-1113.1
 is repealed January 1, 2021.
(4) Subsections 
59-12-102
(61) and (62), which define "life science establishment" and
"life science research and development facility," are repealed January 1, 2027.
(5) Subsection 
59-12-104
(62), which provides a sales and use tax exemption related to
amounts paid or charged for construction materials used in the construction of a life science
research and development facility, is repealed January 1, 2027.
(6) Section 
59-12-104.4
 is repealed April 1, 2020.
Section 56. Section 
63I-2-272
 is amended to read:
63I-2-272.
Repeal dates -- Title 72.
(1) Subsections 
72-1-213
(2) and (3)(a)(i), related to the Road Usage Charge Advisory
Committee, are repealed January 1, 2022.
[
(2) On July 1, 2018:
]
[
(a) in Subsection 
72-2-108
(2), the language that states "and except as provided in
Subsection (10)" is repealed; and
]
[
(b) in Subsection 
72-2-108
(4)(c)(ii)(A), the language that states ", excluding any
amounts appropriated as additional support for class B and class C roads under Subsection
(10)," is repealed.
]
[
(3)
] 
(2)
 Section 
72-3-113
 is repealed January 1, 2020.
(3) Section 
72-6-121
 is repealed September 30, 2025.
Section 57. Section 
63M-4-702
 is amended to read:
63M-4-702.
Refiner gasoline standard reporting -- Office of Energy Development
certification of sales and use tax exemption eligibility.
(1) (a) Beginning on July 1, 2021, a refiner that seeks to be eligible for a sales and use
tax exemption under Subsection 
59-12-104
[
(86)
]
(73)
 shall annually report to the office
whether the refiner's facility that is located within the state will have an average gasoline sulfur
level of 10 parts per million (ppm) or less using the formulas prescribed in 40 C.F.R. Sec.
80.1603, excluding the offset for credit use and transfer as prescribed in 40 C.F.R. Sec.
80.1616.
(b) Fuels for which a final destination outside Utah can be demonstrated or that are not
subject to the standards and requirements of 40 C.F.R. Sec. 80.1603 as specified in 40 C.F.R.
Sec. 80.1601 are not subject to the reporting provisions under Subsection (1)(a).
(2) (a) Beginning on July 1, 2021, the office shall annually certify that the refiner is
eligible for the sales and use tax exemption under Subsection 
59-12-104
[
(86)
]
(73)
:
(i) on a form provided by the State Tax Commission that shall be retained by the
refiner claiming the sales and use tax exemption under Subsection 
59-12-104
[
(86)
]
(73)
;
(ii) if the refiner's refinery that is located within the state had an average sulfur level of
10 parts per million (ppm) or less as reported under Subsection (1) in the previous calendar
year; and
(iii) before a taxpayer is allowed the sales and use tax exemption under Subsection
59-12-104
[
(86)
]
(73)
.
(b) The certification provided by the office under Subsection (2)(a) shall be renewed
annually.
(c) The office:
(i) shall accept a copy of a report submitted by a refiner to the Environmental
Protection Agency under 40 C.F.R. Sec. 80.1652 as sufficient evidence of the refiner's average
gasoline sulfur level; or
(ii) may establish another reporting mechanism through rules made under Subsection
(3).
(3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
office may make rules to implement this section.
Section 58. Section 
72-1-201
 is amended to read:
72-1-201.
Creation of Department of Transportation -- Functions, powers, duties,
rights, and responsibilities.
(1) There is created the Department of Transportation which shall:
(a) have the general responsibility for planning, research, design, construction,
maintenance, security, and safety of state transportation systems;
(b) provide administration for state transportation systems and programs;
(c) implement the transportation policies of the state;
(d) plan, develop, construct, and maintain state transportation systems that are safe,
reliable, environmentally sensitive, and serve the needs of the traveling public, commerce, and
industry;
(e) establish standards and procedures regarding the technical details of administration
of the state transportation systems as established by statute and administrative rule;
(f) advise the governor and the Legislature about state transportation systems needs;
(g) coordinate with utility companies for the reasonable, efficient, and cost-effective
installation, maintenance, operation, relocation, and upgrade of utilities within state highway
rights-of-way;
(h) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
make rules for the administration of the department, state transportation systems, and
programs;
(i) jointly with the commission annually report to the Transportation Interim
Committee, by November 30 of each year, as to the operation, maintenance, condition,
mobility, and safety needs for state transportation systems;
(j) ensure that any training or certification required of a public official or public
employee, as those terms are defined in Section 
63G-22-102
, complies with Title 63G, Chapter
22, State Training and Certification Requirements, if the training or certification is required:
(i) under this title;
(ii) by the department; or
(iii) by an agency or division within the department; [
and
]
(k) study and make recommendations to the Legislature on potential managed lane use
and implementation on selected transportation systems within the state[
.
]
; and
(l) implement one or more strategies to manage congestion on state highways and
generate highway user fees, including the use of one or more high occupancy toll lanes as
defined in Section 
72-6-118
 and implementation of the technology described in Subsection
72-6-118
(2)(e).
(2) (a) The department shall exercise reasonable care in designing, constructing, and
maintaining a state highway in a reasonably safe condition for travel.
(b) Nothing in this section shall be construed as:
(i) creating a private right of action; or
(ii) expanding or changing the department's common law duty as described in
Subsection (2)(a) for liability purposes.
Section 59. Section 
72-1-213.1
 is amended to read:
72-1-213.1.
Road usage charge program.
(1) As used in this section:
(a) "Account manager" means an entity under contract with the department to
administer and manage the road usage charge program.
(b) "Alternative fuel vehicle" means the same as that term is defined in Section
41-1a-102
.
(c) "Payment period" means the interval during which an owner is required to report
mileage and pay the appropriate road usage charge according to the terms of the program.
(d) "Program" means the road usage charge program established and described in this
section.
(2) There is established a road usage charge program as described in this section.
(3) (a) The department shall implement and oversee the administration of the program,
which shall begin on January 1, 2020.
(b) To implement and administer the program, the department may contract with an
account manager.
(4) (a) The owner or lessee of an alternative fuel vehicle may apply for enrollment of
the alternative fuel vehicle in the program.
(b) If an application for enrollment into the program is approved by the department, the
owner or lessee of an alternative fuel vehicle may participate in the program in lieu of paying
the fee described in Subsection 
41-1a-1206
(1)(h) or (2)(b).
(5) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
and consistent with this section, the department:
(i) shall make rules to establish:
(A) processes and terms for enrollment into and withdrawal or removal from the
program;
(B) payment periods and other payment methods and procedures for the program;
(C) standards for mileage reporting mechanisms for an owner or lessee of an
alternative fuel vehicle to report mileage as part of participation in the program;
(D) standards for program functions for mileage recording, payment processing,
account management, and other similar aspects of the program;
(E) contractual terms between an owner or lessee of an alternative fuel vehicle owner
and an account manager for participation in the program;
(F) contractual terms between the department and an account manager, including
authority for an account manager to enforce the terms of the program;
(G) procedures to provide security and protection of personal information and data
connected to the program, and penalties for account managers for violating privacy protection
rules;
(H) penalty procedures for a program participant's failure to pay a road usage charge or
tampering with a device necessary for the program; and
(I) department oversight of an account manager, including privacy protection of
personal information and access and auditing capability of financial and other records related to
administration of the program; and
(ii) may make rules to establish:
(A) an enrollment cap for certain alternative fuel vehicle types to participate in the
program;
(B) a process for collection of an unpaid road usage charge or penalty; or
(C) integration of the program with other similar programs, such as tolling.
(b) The department shall make recommendations to and consult with the commission
regarding road usage mileage rates for each type of alternative fuel vehicle.
(6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
consistent with this section, the commission shall, after consultation with the department, make
rules to establish the road usage charge mileage rate for each type of alternative fuel vehicle.
(7) (a) Revenue generated by the road usage charge program and relevant penalties
shall be deposited into the Transportation Fund.
(b) The department may use revenue generated by the program to cover the costs of
administering the program.
(8) (a) The department may:
(i) (A) impose a penalty for failure to timely pay a road usage charge according to the
terms of the program or tampering with a device necessary for the program; and
(B) request that the Division of Motor Vehicles place a hold on the registration of the
owner's or lessee's alternative fuel vehicle for failure to pay a road usage charge according to
the terms of the program;
(ii) send correspondence to the owner of an alternative fuel vehicle to inform the owner
or lessee of:
(A) the road usage charge program, implementation, and procedures;
(B) an unpaid road usage charge and the amount of the road usage charge to be paid to
the department;
(C) the penalty for failure to pay a road usage charge within the time period described
in Subsection (8)(a)(iii); and
(D) a hold being placed on the owner's or lessee's registration for the alternative fuel
vehicle, if the road usage charge and penalty are not paid within the time period described in
Subsection (8)(a)(iii), which would prevent the renewal of the alternative fuel vehicle's
registration; and
(iii) require that the owner or lessee of the alternative fuel vehicle pay the road usage
charge to the department within 30 days of the date when the department sends written notice
of the road usage charge to the owner or lessee.
(b) The department shall send the correspondence and notice described in Subsection
(8)(a) to the owner of the alternative fuel vehicle according to the terms of the program.
(9) (a) The Division of Motor Vehicles and the department shall share and provide
access to
:
(i)
 information pertaining to an alternative fuel vehicle and participation in the program
including:
[
(i)
] 
(A)
 registration and ownership information pertaining to an alternative fuel
vehicle;
[
(ii)
] 
(B)
 information regarding the failure of an alternative fuel vehicle owner or lessee
to pay a road usage charge or penalty imposed under this section within the time period
described in Subsection (8)(a)(iii); and
[
(iii)
] 
(C)
 the status of a request for a hold on the registration of an alternative fuel
vehicle[
.
]
; and
(ii) the following information, in a format that does not allow the department to
identify the vehicle owner, from each certificate of emissions inspection provided in
accordance with Section 
41-6a-1642
:
(A) the odometer reading; and
(B) the date of the odometer reading.
(b) If the department requests a hold on the registration in accordance with this section,
the Division of Motor Vehicles may not renew the registration of a motor vehicle under Title
41, Chapter 1a, Part 2, Registration, until the department withdraws the hold request.
(10) The owner of an alternative fuel vehicle may apply for enrollment in the program
or withdraw from the program according to the terms established by the department pursuant to
rules made under Subsection (5).
(11) If enrolled in the program, the owner or lessee of an alternative fuel vehicle shall:
(a) report mileage driven as required by the department pursuant to Subsection (5);
(b) pay the road usage fee for each payment period as set by the department and the
commission pursuant to Subsections (5) and (6); and
(c) comply with all other provisions of this section and other requirements of the
program.
(12) On or before October 1 of each year, the department shall submit an electronic
report to a legislative committee designated by the Legislative Management Committee that:
(a) describes the amount of revenue generated by the program during the preceding
fiscal year; and
(b) recommends strategies for expanding enrollment in the program.
Section 60. Section 
72-1-213.2
 is enacted to read:
 72-1-213.2.
Reports on revenue from road usage charge program.
(1) As used in this section:
(a) "Committees" means the Transportation Interim Committee and the Infrastructure
and General Government Appropriations Subcommittee.
(b) "Program" means the same as that term is defined in Section 
72-1-213.1
.
(2) On or before October 1, 2020, the department shall submit to the committees a plan
to enroll all vehicles registered in the state in the program by December 31, 2020.
(3) Beginning in 2021, the committees shall receive and consider annually, on or
before October 1, an electronic report from the department that:
(a) provides the participation rate in the program;
(b) states for the preceding fiscal year:
(i) the amount of revenue collected from the program; and
(ii) the department's cost to administer the program;
(c) provides for the current fiscal year, an estimate of:
(i) the revenue that will be collected from the program; and
(ii) the department's cost to administer the program; and
(d) recommends strategies to expand enrollment in the program to meet the deadline
provided in Subsection (2).
(4) In a year in which the revenue generated under the program, minus the cost to
administer the program, equals or exceeds 25%, 50%, 75%, or 100% of the revenue collected
under Section 
59-13-601
, the department shall include that information in the report required
under Subsection (3).
Section 61. Section 
72-2-120
 is amended to read:
72-2-120.
Tollway Special Revenue Fund -- Revenue.
(1) There is created a special revenue fund within the Transportation Fund known as
the "Tollway Special Revenue Fund."
(2) The fund shall be funded from the following sources:
(a) tolls collected by the department under Section 
72-6-118
;
(b) funds received by the department through a tollway development agreement under
Section 
72-6-203
;
(c) appropriations made to the fund by the Legislature;
(d) contributions from other public and private sources for deposit into the fund;
(e) interest earnings on cash balances; and
(f) money collected for repayments and interest on fund money.
(3) The Division of Finance may create a subaccount for each tollway as defined in
Section 
72-6-118
.
(4) The commission may authorize the money deposited into the fund to be spent by
the department [
to establish and operate tollways and related facilities and state transportation
systems, including design, construction, reconstruction, operation, maintenance, enforcement,
impacts from tollways, and the acquisition of right-of-way
] 
for any state transportation
purpose
.
Section 62. Section 
72-2-124
 is amended to read:
72-2-124.
Transportation Investment Fund of 2005.
(1) There is created a capital projects fund entitled the Transportation Investment Fund
of 2005.
(2) The fund consists of money generated from the following sources:
(a) any voluntary contributions received for the maintenance, construction,
reconstruction, or renovation of state and federal highways;
(b) appropriations made to the fund by the Legislature;
(c) registration fees designated under Section 
41-1a-1201
;
(d) the sales and use tax revenues deposited into the fund in accordance with [
Section
59-12-103
; and
] 
Sections 
59-12-103
 and 
59-13-601
;
(e) the additional special fuel tax revenues deposited into the fund in accordance with
Section 
59-13-323
; and
[
(e)
] 
(f)
 revenues transferred to the fund in accordance with Section 
72-2-106
.
(3) (a) The fund shall earn interest.
(b) All interest earned on fund money shall be deposited into the fund.
(4) (a) Except as provided in Subsection (4)(b), the executive director may only use
fund money to pay:
(i) the costs of maintenance, construction, reconstruction, or renovation to state and
federal highways prioritized by the Transportation Commission through the prioritization
process for new transportation capacity projects adopted under Section 
72-1-304
;
(ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
projects described in Subsections 
63B-18-401
(2), (3), and (4);
(iii) principal, interest, and issuance costs of bonds authorized by Section 
63B-18-401
minus the costs paid from the County of the First Class Highway Projects Fund in accordance
with Subsection 
72-2-121
(4)(f);
(iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
Lake County Revenue Bond Sinking Fund created by Section 
72-2-121.3
 the amount certified
by Salt Lake County in accordance with Subsection 
72-2-121.3
(4)(c) as necessary to pay the
debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
(v) principal, interest, and issuance costs of bonds authorized by Section 
63B-16-101
for projects prioritized in accordance with Section 
72-2-125
;
(vi) all highway general obligation bonds that are intended to be paid from revenues in
the Centennial Highway Fund created by Section 
72-2-118
;
[
(vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
Class Highway Projects Fund created in Section 
72-2-121
 to be used for the purposes described
in Section 
72-2-121
; and
]
[
(viii)
] 
(vii)
 if a political subdivision provides a contribution equal to or greater than
40% of the costs needed for construction, reconstruction, or renovation of paved pedestrian or
paved nonmotorized transportation for projects that:
(A) mitigate traffic congestion on the state highway system;
(B) are part of an active transportation plan approved by the department; and
(C) are prioritized by the commission through the prioritization process for new
transportation capacity projects adopted under Section 
72-1-304
[
.
]
; and
(viii) for a fiscal year beginning on or after July 1, 2020, to annually transfer an equal
portion of $5,000,000 to each county with a population of less than 14,000, as determined by
the lieutenant governor in accordance with Subsection 
17-50-502
(2), for expenses related to the
improvement of class B roads located within the county.
(b) The executive director may use fund money to exchange for an equal or greater
amount of federal transportation funds to be used as provided in Subsection (4)(a).
(5) (a) Except as provided in Subsection (5)(b), the executive director may not use fund
money, including fund money from the Transit Transportation Investment Fund, within the
boundaries of a municipality that is required to adopt a moderate income housing plan element
as part of the municipality's general plan as described in Subsection 
10-9a-401
(3), if the
municipality has failed to adopt a moderate income housing plan element as part of the
municipality's general plan or has failed to implement the requirements of the moderate income
housing plan as determined by the results of the Department of Workforce Service's review of
the annual moderate income housing report described in Subsection 
35A-8-803
(1)(a)(vii).
(b) Within the boundaries of a municipality that is required under Subsection
10-9a-401
(3) to plan for moderate income housing growth but has failed to adopt a moderate
income housing plan element as part of the municipality's general plan or has failed to
implement the requirements of the moderate income housing plan as determined by the results
of the Department of Workforce Service's review of the annual moderate income housing
report described in Subsection 
35A-8-803
(1)(a)(vii), the executive director:
(i) may use fund money in accordance with Subsection (4)(a) for a limited-access
facility;
(ii) may not use fund money for the construction, reconstruction, or renovation of an
interchange on a limited-access facility;
(iii) may use Transit Transportation Investment Fund money for a multi-community
fixed guideway public transportation project; and
(iv) may not use Transit Transportation Investment Fund money for the construction,
reconstruction, or renovation of a station that is part of a fixed guideway public transportation
project.
(6) (a) Except as provided in Subsection (6)(b), the executive director may not use fund
money, including fund money from the Transit Transportation Investment Fund, within the
boundaries of the unincorporated area of a county, if the county is required to adopt a moderate
income housing plan element as part of the county's general plan as described in Subsection
17-27a-401
(3) and if the county has failed to adopt a moderate income housing plan element as
part of the county's general plan or has failed to implement the requirements of the moderate
income housing plan as determined by the results of the Department of Workforce Service's
review of the annual moderate income housing report described in Subsection
35A-8-803
(1)(a)(vii).
(b) Within the boundaries of the unincorporated area of a county where the county is
required under Subsection 
17-27a-401
(3) to plan for moderate income housing growth but has
failed to adopt a moderate income housing plan element as part of the county's general plan or
has failed to implement the requirements of the moderate income housing plan as determined
by the results of the Department of Workforce Service's review of the annual moderate income
housing report described in Subsection 
35A-8-803
(1)(a)(vii), the executive director:
(i) may use fund money in accordance with Subsection (4)(a) for a limited-access
facility;
(ii) may not use fund money for the construction, reconstruction, or renovation of an
interchange on a limited-access facility;
(iii) may use Transit Transportation Investment Fund money for a multi-community
fixed guideway public transportation project; and
(iv) may not use Transit Transportation Investment Fund money for the construction,
reconstruction, or renovation of a station that is part of a fixed guideway public transportation
project.
(7) (a) Before bonds authorized by Section 
63B-18-401
 or 
63B-27-101
 may be issued
in any fiscal year, the department and the commission shall appear before the Executive
Appropriations Committee of the Legislature and present the amount of bond proceeds that the
department needs to provide funding for the projects identified in Subsections 
63B-18-401
(2),
(3), and (4) or Subsection 
63B-27-101
(2) for the current or next fiscal year.
(b) The Executive Appropriations Committee of the Legislature shall review and
comment on the amount of bond proceeds needed to fund the projects.
(8) The Division of Finance shall, from money deposited into the fund, transfer the
amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
Section 
63B-18-401
 or 
63B-27-101
 in the current fiscal year to the appropriate debt service or
sinking fund.
(9) (a) There is created in the Transportation Investment Fund of 2005 the Transit
Transportation Investment Fund.
(b) The fund shall be funded by:
(i) contributions deposited into the fund in accordance with Section 
59-12-103
;
(ii) appropriations into the account by the Legislature;
(iii) private contributions; and
(iv) donations or grants from public or private entities.
(c) (i) The fund shall earn interest.
(ii) All interest earned on fund money shall be deposited into the fund.
(d) Subject to Subsection (9)(e), the Legislature may appropriate money from the fund
for public transit capital development of new capacity projects to be used as prioritized by the
commission.
(e) (i) The Legislature may only appropriate money from the fund for a public transit
capital development project or pedestrian or nonmotorized transportation project that provides
connection to the public transit system if the public transit district or political subdivision
provides funds of equal to or greater than 40% of the costs needed for the project.
(ii) A public transit district or political subdivision may use money derived from a loan
granted pursuant to Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund, to provide all or
part of the 40% requirement described in Subsection (9)(e)(i) if:
(A) the loan is approved by the commission as required in Title 72, Chapter 2, Part 2,
State Infrastructure Bank Fund; and
(B) the proposed capital project has been prioritized by the commission pursuant to
Section 
72-1-303
.
Section 63. Section 
72-6-118
 is amended to read:
72-6-118.
Definitions -- Establishment and operation of tollways -- Imposition
and collection of tolls -- Amount of tolls -- Rulemaking.
(1) As used in this section:
(a) 
(i)
 [
"High
] 
Before January 1, 2025, "high
 occupancy toll lane" means a high
occupancy vehicle lane designated under Section 
41-6a-702
 that may be used by an operator of
a vehicle carrying less than the number of persons specified for the high occupancy vehicle
lane if the operator of the vehicle pays a toll or fee.
(ii) On or after January 1, 2025, "high occupancy toll lane" means a high occupancy
vehicle lane designated under Section 
41-6a-702
 that may be used by an operator of a vehicle
only if:
(A) the vehicle is carrying three or more occupants; or
(B) the operator pays a toll or fee.
(b) "Toll" means any tax, fee, or charge assessed for the specific use of a tollway.
(c) "Toll lane" means a designated new highway or additional lane capacity that is
constructed, operated, or maintained for which a toll is charged for its use.
(d) (i) "Tollway" means a highway, highway lane, bridge, path, tunnel, or right-of-way
designed and used as a transportation route that is constructed, operated, or maintained through
the use of toll revenues.
(ii) "Tollway" includes a high occupancy toll lane and a toll lane.
(e) "Tollway development agreement" has the same meaning as defined in Section
72-6-202
.
(2) Subject to the provisions of Subsection (3), the department may:
(a) establish, expand, and operate tollways and related facilities for the purpose of
funding in whole or in part the acquisition of right-of-way and the design, construction,
reconstruction, operation, enforcement, and maintenance of or impacts from a transportation
route for use by the public;
(b) enter into contracts, agreements, licenses, franchises, tollway development
agreements, or other arrangements to implement this section;
(c) impose and collect tolls on any tollway established under this section, including
collection of past due payment of a toll or penalty;
(d) grant exclusive or nonexclusive rights to a private entity to impose and collect tolls
pursuant to the terms and conditions of a tollway development agreement;
(e) use technology to automatically monitor a tollway and collect payment of a toll,
including:
(i) license plate reading technology; and
(ii) photographic or video recording technology; and
(f) in accordance with Subsection (5), request that the Division of Motor Vehicles deny
a request for registration of a motor vehicle if the motor vehicle owner has failed to pay a toll
or penalty imposed for usage of a tollway involving the motor vehicle for which registration
renewal has been requested.
(3) (a) The department may establish or operate a tollway on an existing highway if
approved by the commission in accordance with the terms of this section.
(b) To establish a tollway on an existing highway, the department shall submit a
proposal to the commission including:
(i) a description of the tollway project;
(ii) projected traffic on the tollway;
(iii) the anticipated amount of the toll to be charged; and
(iv) projected toll revenue.
(4) (a) For a tollway established under this section, the department may:
(i) according to the terms of each tollway, impose the toll upon the owner of a motor
vehicle using the tollway according to the terms of the tollway;
(ii) send correspondence to the owner of the motor vehicle to inform the owner of:
(A) an unpaid toll and the amount of the toll to be paid to the department;
(B) the penalty for failure to pay the toll timely; and
(C) a hold being placed on the owner's registration for the motor vehicle if the toll and
penalty are not paid timely, which would prevent the renewal of the motor vehicle's
registration;
(iii) require that the owner of the motor vehicle pay the toll to the department within 30
days of the date when the department sends written notice of the toll to the owner; and
(iv) impose a penalty for failure to pay a toll timely.
(b) The department shall mail the correspondence and notice described in Subsection
(4)(a) to the owner of the motor vehicle according to the terms of a tollway.
(5) (a) The Division of Motor Vehicles and the department shall share and provide
access to information pertaining to a motor vehicle and tollway enforcement including:
(i) registration and ownership information pertaining to a motor vehicle;
(ii) information regarding the failure of a motor vehicle owner to timely pay a toll or
penalty imposed under this section; and
(iii) the status of a request for a hold on the registration of a motor vehicle.
(b) If the department requests a hold on the registration in accordance with this section,
the Division of Motor Vehicles may not renew the registration of a motor vehicle under Title
41, Chapter 1a, Part 2, Registration, if the owner of the motor vehicle has failed to pay a toll or
penalty imposed under this section for usage of a tollway involving the motor vehicle for which
registration renewal has been requested until the department withdraws the hold request.
(6) (a) Except as provided in Subsection (6)(b), in accordance with Title 63G, Chapter
3, Utah Administrative Rulemaking Act, the commission shall:
(i) set the amount of any toll imposed or collected on a tollway on a state highway; and
(ii) for tolls established under Subsection (6)(b), set:
(A) an increase in a toll rate or user fee above an increase specified in a tollway
development agreement; or
(B) an increase in a toll rate or user fee above a maximum toll rate specified in a
tollway development agreement.
(b) A toll or user fee and an increase to a toll or user fee imposed or collected on a
tollway on a state highway that is the subject of a tollway development agreement shall be set
in the tollway development agreement.
(7) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the department shall make rules:
(i) necessary to establish and operate tollways on state highways;
(ii) that establish standards and specifications for automatic tolling systems and
automatic tollway monitoring technology; and
(iii) to set the amount of a penalty for failure to pay a toll under this section.
(b) The rules shall:
(i) include minimum criteria for having a tollway; and
(ii) conform to regional and national standards for automatic tolling.
(8) (a) The commission may provide funds for public or private tollway pilot projects
or high occupancy toll lanes from General Fund money appropriated by the Legislature to the
commission for that purpose.
(b) The commission may determine priorities and funding levels for tollways
designated under this section.
(9) (a) Except as provided in Subsection (9)(b), all revenue generated from a tollway
on a state highway shall be deposited into the Tollway Special Revenue Fund created in
Section 
72-2-120
 and used for [
acquisition of right-of-way and the design, construction,
reconstruction, operation, maintenance, enforcement of state transportation systems and
facilities, including operating improvements to the tollway, and other facilities used exclusively
for the operation of a tollway facility within the corridor served by the tollway
] 
any state
transportation purpose
.
(b) Revenue generated from a tollway that is the subject of a tollway development
agreement shall be deposited into the Tollway Special Revenue Fund and used in accordance
with Subsection (9)(a) unless:
(i) the revenue is to a private entity through the tollway development agreement; or
(ii) the revenue is identified for a different purpose under the tollway development
agreement.
(10) Data described in Subsection (2)(e) obtained for the purposes of this section:
(a) in accordance with Section 
63G-2-305
, is a protected record under Title 63G,
Chapter 2, Government Records Access and Management Act, if the photographic or video
data is maintained by a governmental entity;
(b) may not be used or shared for any purpose other than the purposes described in this
section;
(c) may only be preserved:
(i) so long as necessary to collect the payment of a toll or penalty imposed in
accordance with this section; or
(ii) pursuant to a warrant issued under the Utah Rules of Criminal Procedure or an
equivalent federal warrant; and
(d) may only be disclosed:
(i) in accordance with the disclosure requirements for a protected record under Section
63G-2-202
; or
(ii) pursuant to a warrant issued under the Utah Rules of Criminal Procedure or an
equivalent federal warrant.
(11) (a) The department may not sell for any purpose photographic or video data
captured under Subsection (2)(e)(ii).
(b) The department may not share captured photographic or video data for a purpose
not authorized under this section.
[
(12) Before November 1, 2018, the Driver License Division, the Division of Motor
Vehicles, and the department shall jointly study and report findings and recommendations to
the Transportation Interim Committee regarding the use of Title 53, Chapter 3, Part 6, Drivers'
License Compact, and other methods to collect a toll or penalty under this section from:
]
[
(a) an owner of a motor vehicle registered outside this state; or
]
[
(b) a driver or lessee of a motor vehicle leased or rented for 30 days or less.
]
Section 64. Section 
72-9-603
 is amended to read:
72-9-603.
Towing notice requirements -- Cost responsibilities -- Abandoned
vehicle title restrictions -- Rules for maximum rates and certification.
(1) Except for a tow truck service that was ordered by a peace officer, or a person
acting on behalf of a law enforcement agency, or a highway authority, after performing a tow
truck service that is being done without the vehicle, vessel, or outboard motor owner's
knowledge, the tow truck operator or the tow truck motor carrier shall:
(a) immediately upon arriving at the place of storage or impound of the vehicle, vessel,
or outboard motor:
(i) send a report of the removal to the Motor Vehicle Division that complies with the
requirements of Subsection 
41-6a-1406
(4)(b); and
(ii) contact the law enforcement agency having jurisdiction over the area where the
vehicle, vessel, or outboard motor was picked up and notify the agency of the:
(A) location of the vehicle, vessel, or outboard motor;
(B) date, time, and location from which the vehicle, vessel, or outboard motor was
removed;
(C) reasons for the removal of the vehicle, vessel, or outboard motor;
(D) person who requested the removal of the vehicle, vessel, or outboard motor; and
(E) description, including the identification number, license number, or other
identification number issued by a state agency, of the vehicle, vessel, or outboard motor;
(b) within two business days of performing the tow truck service under Subsection
(1)(a), send a certified letter to the last-known address of each party described in Subsection
41-6a-1406
(5)(a) with an interest in the vehicle, vessel, or outboard motor obtained from the
Motor Vehicle Division or, if the person has actual knowledge of the party's address, to the
current address, notifying the party of the:
(i) location of the vehicle, vessel, or outboard motor;
(ii) date, time, and location from which the vehicle, vessel, or outboard motor was
removed;
(iii) reasons for the removal of the vehicle, vessel, or outboard motor;
(iv) person who requested the removal of the vehicle, vessel, or outboard motor;
(v) a description, including its identification number and license number or other
identification number issued by a state agency; and
(vi) costs and procedures to retrieve the vehicle, vessel, or outboard motor; and
(c) upon initial contact with the owner whose vehicle, vessel, or outboard motor was
removed, provide the owner with a copy of the Utah Consumer Bill of Rights Regarding
Towing established by the department in Subsection (7)(e).
(2) (a) Until the tow truck operator or tow truck motor carrier reports the removal as
required under Subsection (1)(a), a tow truck operator, tow truck motor carrier, or impound
yard may not:
(i) collect any fee associated with the removal; or
(ii) begin charging storage fees.
(b) (i) Except as provided in Subsection (2)(c), a tow truck operator or tow truck motor
carrier may not perform a tow truck service without the vehicle, vessel, or outboard motor
owner's or a lien holder's knowledge at either of the following locations without signage that
meets the requirements of Subsection (2)(b)(ii):
(A) a mobile home park as defined in Section 
57-16-3
; or
(B) a multifamily dwelling of more than eight units.
(ii) Signage under Subsection (2)(b)(i) shall display:
(A) where parking is subject to towing; and
(B) (I) the Internet website address that provides access to towing database information
in accordance with Section 
41-6a-1406
; or
(II) one of the following:
(Aa) the name and phone number of the tow truck operator or tow truck motor carrier
that performs a tow truck service for the locations listed under Subsection (2)(b)(i); or
(Bb) the name of the mobile home park or multifamily dwelling and the phone number
of the mobile home park or multifamily dwelling manager or management office that
authorized the vehicle, vessel, or outboard motor to be towed.
(c) Signage is not required under Subsection (2)(b) for parking in a location:
(i) that is prohibited by law; or
(ii) if it is reasonably apparent that the location is not open to parking.
(d) Nothing in Subsection (2)(b) restricts the ability of a mobile home park as defined
in Section 
57-16-3
 or a multifamily dwelling from instituting and enforcing regulations on
parking.
(3) The party described in Subsection 
41-6a-1406
(5)(a) with an interest in a vehicle,
vessel, or outboard motor lawfully removed is only responsible for paying:
(a) the tow truck service and storage fees set in accordance with Subsection (7); [
and
]
(b) the administrative impound fee set in Section 
41-6a-1406
, if applicable[
.
]
; and
(c) the applicable sales and use tax.
(4) (a) The fees under Subsection (3) are a possessory lien on the vehicle, vessel, or
outboard motor and any nonlife essential items contained in the vehicle, vessel, or outboard
motor that are owned by the owner of the vehicle, vessel, or outboard motor until paid.
(b) The tow truck operator or tow truck motor carrier shall securely store the vehicle,
vessel, or outboard motor and items described in Subsection (4)(a) in an approved state
impound yard until a party described in Subsection 
41-6a-1406
(5)(a) with an interest in the
vehicle, vessel, or outboard motor:
(i) pays the [
fees
] 
amounts
 described in Subsection (3); and
(ii) removes the vehicle, vessel, or outboard motor from the state impound yard.
(5) (a) A vehicle, vessel, or outboard motor shall be considered abandoned if a party
described in Subsection 
41-6a-1406
(5)(a) with an interest in the vehicle, vessel, or outboard
motor does not, within 30 days after notice has been sent under Subsection (1)(b):
(i) pay the [
fees
] 
amounts
 described in Subsection (3); and
(ii) remove the vehicle, vessel, or outboard motor from the secure storage facility.
(b) A person may not request a transfer of title to an abandoned vehicle, vessel, or
outboard motor until at least 30 days after notice has been sent under Subsection (1)(b).
(6) (a) A tow truck motor carrier or impound yard shall clearly and conspicuously post
and disclose all its current fees, rates, and acceptable forms of payment for tow truck service
and storage of a vehicle in accordance with rules established under Subsection (7).
(b) A tow truck operator, a tow truck motor carrier, and an impound yard shall accept
payment by cash and debit or credit card for a tow truck service under Subsection (1) or any
service rendered, performed, or supplied in connection with a tow truck service under
Subsection (1).
(7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
department shall:
(a) subject to the restriction in Subsection (8), set maximum rates that:
(i) a tow truck motor carrier may charge for the tow truck service of a vehicle, vessel,
or outboard motor that are transported in response to:
(A) a peace officer dispatch call;
(B) a motor vehicle division call; and
(C) any other call or request where the owner of the vehicle, vessel, or outboard motor
has not consented to the removal; and
(ii) an impound yard may charge for the storage of a vehicle, vessel, or outboard motor
stored as a result of one of the conditions listed under Subsection (7)(a)(i);
(b) establish authorized towing certification requirements, not in conflict with federal
law, related to incident safety, clean-up, and hazardous material handling;
(c) specify the form and content of the posting and disclosure of fees and rates charged
and acceptable forms of payment by a tow truck motor carrier or impound yard;
(d) set a maximum rate for an administrative fee that a tow truck motor carrier may
charge for reporting the removal as required under Subsection (1)(a)(i) and providing notice of
the removal to each party described in Subsection 
41-6a-1406
(5)(a) with an interest in the
vehicle, vessel, or outboard motor as required in Subsection (1)(b); and
(e) establish a Utah Consumer Bill of Rights Regarding Towing form that contains
specific information regarding:
(i) a vehicle owner's rights and responsibilities if the owner's vehicle is towed;
(ii) identifies the maximum rates that a tow truck motor carrier may charge for the tow
truck service of a vehicle, vessel, or outboard motor that is transported in response to a call or
request where the owner of the vehicle, vessel, or outboard motor has not consented to the
removal; and
(iii) identifies the maximum rates that an impound yard may charge for the storage of
vehicle, vessel, or outboard motor that is transported in response to a call or request where the
owner of the vehicle, vessel, or outboard motor has not consented to the removal.
(8) An impound yard may not charge a fee for the storage of an impounded vehicle,
vessel, or outboard motor if:
(a) the vehicle, vessel, or outboard motor is being held as evidence; and
(b) the vehicle, vessel, or outboard motor is not being released to a party described in
Subsection 
41-6a-1406
(5)(a), even if the party satisfies the requirements to release the vehicle,
vessel, or outboard motor under Section 
41-6a-1406
.
(9) (a) (i) A tow truck motor carrier may charge a rate up to the maximum rate set by
the department in rules made under Subsection (7).
(ii) In addition to the maximum rates established under Subsection (7) [
and when
 receiving payment by credit card
], a tow truck operator, a tow truck motor carrier, or an 
impound yard
:
(A) shall collect the sales and use tax due; and
(B) when receiving payment by credit card,
 may charge a credit card processing fee of
3% of the transaction total.
(b) A tow truck motor carrier may not be required to maintain insurance coverage at a
higher level than required in rules made pursuant to Subsection (7).
(10) When a tow truck motor carrier or impound lot is in possession of a vehicle,
vessel, or outboard motor as a result of a tow service that was performed without the consent of
the owner, and that was not ordered by a peace officer or a person acting on behalf of a law
enforcement agency, the tow truck motor carrier or impound yard shall make personnel
available:
(a) by phone 24 hours a day, seven days a week; and
(b) to release the impounded vehicle, vessel, or outboard motor to the owner within
one hour of when the owner calls the tow truck motor carrier or impound yard. 
Section 65. 
Appropriations -- Operating and Capital Budgets.
Subsection 65 (a)(i). 
Fiscal Year 2020 Appropriation -- Operating and Capital
Budgets.
The following sums of money are appropriated for the fiscal year beginning July 1,
2019, and ending June 30, 2020. These are additions to amounts previously appropriated for
fiscal year 2020. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
Act, the Legislature appropriates the following sums of money from the funds or accounts
indicated for the use and support of the government of the state of Utah.
ITEM 1
To Department of Workforce Services -- Administration
From General Fund, One-time
$500,000
Schedule of Programs:
Communications
$500,000
The Legislature intends that the Department of Workforce Services use this
appropriation for outreach to inform eligible individuals, particularly low income individuals,
of available income tax credits, exemptions, and rebates and how to claim them.
Subsection 65 (a)(ii). 
Fiscal Year 2020 Appropriation -- Transfers to Unrestricted
Funds.
The following sums of money are appropriated for the fiscal year beginning July 1,
2019, and ending June 30, 2020. These are additions to amounts previously appropriated for
fiscal year 2020.
The Legislature authorizes the State Division of Finance to transfer the following
amounts to the unrestricted General Fund, Education Fund, or Uniform School Fund, as
indicated, from the restricted funds or accounts indicated. Expenditures and outlays from the
General Fund, Education Fund, or Uniform School Fund must be authorized by an
appropriation.
ITEM 2
To General Fund, One-time
From Education Fund Restricted --
Underage Drinking Prevention Program Restricted Account
$1,750,000
Schedule of Programs:
General Fund, One-time
$1,750,000
The Legislature intends that, after satisfying all prior appropriations from the Underage
Drinking Prevention Program Restricted Account, the State Division of Finance transfer all
remaining balances in the Underage Drinking Prevention Program Restricted Account to the
General Fund at the close of fiscal year 2020 and close the account.
Subsection 65 (b). 
Fiscal Year 2021 Appropriations -- Operating and Capital
Budgets.
The following sums of money are appropriated for the fiscal year beginning July 1,
2020, and ending June 30, 2021. These are additions to amounts otherwise appropriated for
fiscal year 2021. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
Act, the Legislature appropriates the following sums of money from the funds or accounts
indicated for the use and support of the government of the state of Utah.
ITEM 3
To State Board of Education -- Child Nutrition
From Education Fund
$55,500,000
From Dedicated Credits -- Liquor Tax
($39,275,700)
Schedule of Programs:
Child Nutrition
$16,224,300
ITEM 4
To State Board of Education -- State Administrative Office
From Education Fund
$2,850,000
From Education Fund Restricted --
Underage Drinking Prevention Program Restricted Account
($1,751,000)
Schedule of Programs:
Student Advocacy Services $1,099,000
ITEM 5
To University of Utah -- Education and General
From General Fund
$101,608,900
From Education Fund
 ($101,608,900)
ITEM 6
To University of Utah -- School of Medicine
From General Fund
$35,899,500
From Education Fund
($35,899,500)
ITEM 7
To University of Utah -- University Hospital
From General Fund
$1,533,000
From Education Fund
($1,533,000)
ITEM 8
To University of Utah -- School of Dentistry
From General Fund
$2,324,700
From Education Fund
($2,324,700)
ITEM 9
To Utah State University -- Education and General
From General Fund
$73,521,400
From Education Fund
($73,521,400)
ITEM 10
To Utah State University -- USU-Eastern Education and General
From General Fund
$12,503,400
From Education Fund
($12,503,400)
ITEM 11
To Weber State University -- Education and General
From General Fund
$94,098,000
From Education Fund
($94,098,000)
ITEM 12
To Southern Utah University -- Education and General
From General Fund
$47,444,900
From Education Fund
($47,444,900)
ITEM 13
To Utah Valley University -- Education and General
From General Fund
$22,092,900
From Education Fund
($22,092,900)
Section 66. 
Effective date.
(1) The following sections take effect on April 1, 2020:
(a) Section 
15A-1-204
;
(b) Section 
26-36b-208
;
(c) Section 
59-1-1503;
(d) Section 
59-12-102
;
(e) Section 
59-12-103
;
(f) Section 
59-12-104
;
(g) Section 
59-12-104.5
;
(h) Section 
59-12-1201
;
(i) Section 
59-13-323
;
(j) Section 
63I-2-259
;
(k) Section 
63M-4-702
; and
(l) Section 
72-2-124
.
(2) Subsection 65(b) of this bill takes effect on July 1, 2020.
(3) The following sections take effect on January 1, 2021:
(a) Section 
41-6a-1642
; and
(b) Section 
72-1-213.2
.
Section 67. 
Contingent retrospective operation.
If this bill is approved by less than two-thirds of all the members elected to each house,
the following sections have retrospective operation for a taxable year beginning on or after
January 1, 2020:
(1) Section 
35A-9-214
;
(2) Section 
59-7-104
;
(3) Section 
59-7-201
;
(4) Section 
59-7-610
;
(5) Section 
59-7-614.1
;
(6) Section 
59-7-618
;
(7) Section 
59-7-620
;
(8) Section 
59-10-104
;
(9) Section 
59-10-529.1
;
(10) Section 
59-10-1005
;
(11) Section 
59-10-1007
;
(12) Section 
59-10-1017
;
(13) Section 
59-10-1017.1
;
(14) Section 
59-10-1018
;
(15) Section 
59-10-1019
;
(16) Section 
59-10-1022
;
(17) Section 
59-10-1023
;
(18) Section 
59-10-1028
;
(19) Section 
59-10-1033
;
(20) Section 
59-10-1035
;
(21) Section 
59-10-1036
;
(22) Section 
59-10-1041
;
(23) Section 
59-10-1102.1
;
(24) Section 
59-10-1105
;
(25) Section 
59-10-1113
;
(26) Section 
59-10-1114
;
(27) Section 
59-10-1403.3
; and
(28) Section 
59-13-202
.