Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 356 Second Substitute (2020GS)

Sponsor

Rep. Ferry, J.

Final action

Governor Vetoed 4/1/2020

Outcome

Vetoed

Summary

What it does

• This bill:
• repeals the state sales and use tax exemption for sales of fuel to a rail carrier for use in a locomotive engine;
• requires an approximate value of the resulting revenue be deposited into the General Fund;
• creates the Railroad Crossing Restricted Account;
• provides that upon appropriation, the Department of Transportation shall use the money in the Railroad Crossing Restricted Account for construction projects related to railroad crossings on class B and class C roads; and
• makes technical changes.

Every vote on this bill

Bill text

RAILROAD AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Joel Ferry
Senate Sponsor: 
____________
LONG TITLE
General Description:
This bill modifies provisions related to railroads.
Highlighted Provisions:
This bill:
▸ repeals the state sales and use tax exemption for sales of fuel to a rail carrier for use
in a locomotive engine;
▸ requires an approximate value of the resulting revenue be deposited into the General
Fund;
▸ creates the Railroad Crossing Restricted Account;
▸ provides that upon appropriation, the Department of Transportation shall use the
money in the Railroad Crossing Restricted Account for construction projects related
to railroad crossings on class B and class C roads; and
▸ makes technical changes.
Money Appropriated in this Bill:
This bill appropriates in fiscal year 2021:
▸ to General Fund Restricted -- Railroad Crossing Restricted Account
• from General Fund, $3,700,000.
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
11-41-102
, as last amended by Laws of Utah 2016, Chapter 176
26-36b-208
, as last amended by Laws of Utah 2019, Chapters 1 and 393
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
59-1-401
, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
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
59-12-108
, as last amended by Laws of Utah 2018, Second Special Session, Chapter 6
ENACTS:
72-2-131
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
11-41-102
 is amended to read:
11-41-102.
Definitions.
As used in this chapter:
(1) "Agreement" means an oral or written agreement between a:
(a) (i) county; or
(ii) municipality; and
(b) person.
(2) "Municipality" means a:
(a) city;
(b) town; or
(c) metro township.
(3) "Payment" includes:
(a) a payment;
(b) a rebate;
(c) a refund; or
(d) an amount similar to Subsections (3)(a) through (c).
(4) "Regional retail business" means a:
(a) retail business that occupies a floor area of more than 80,000 square feet;
(b) dealer as defined in Section 
41-1a-102
;
(c) retail shopping facility that has at least two anchor tenants if the total number of
anchor tenants in the shopping facility occupy a total floor area of more than 150,000 square
feet; or
(d) grocery store that occupies a floor area of more than 30,000 square feet.
(5) (a) "Sales and use tax" means a tax:
(i) imposed on transactions within a:
(A) county; or
(B) municipality; and
(ii) except as provided in Subsection (5)(b), authorized under Title 59, Chapter 12,
Sales and Use Tax Act.
(b) Notwithstanding Subsection (5)(a)(ii), "sales and use tax" does not include a tax
authorized under:
(i) Subsection 
59-12-103
(2)(a)(i);
(ii) Subsection 
59-12-103
(2)(b)(i);
(iii) Subsection 
59-12-103
(2)(c)(i);
(iv) Subsection 
59-12-103
(2)(d);
[
(iv)
] 
(v)
 Subsection 
59-12-103
(2)[
(d)
]
(e)
(i)(A);
[
(v)
] 
(vi)
 Section 
59-12-301
;
[
(vi)
] 
(vii)
 Section 
59-12-352
;
[
(vii)
] 
(viii)
 Section 
59-12-353
;
[
(viii)
] 
(ix)
 Section 
59-12-603
; or
[
(ix)
] 
(x)
 Section 
59-12-1201
.
(6) (a) "Sales and use tax incentive payment" means a payment of revenues:
(i) to a person;
(ii) by a:
(A) county; or
(B) municipality;
(iii) to induce the person to locate or relocate a regional retail business within the:
(A) county; or
(B) municipality; and
(iv) that are derived from a sales and use tax.
(b) "Sales and use tax incentive payment" does not include funding for public
infrastructure.
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 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 
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)
] 
in accordance
with 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 4. 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)
] 
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 5. Section 
59-1-401
 is amended to read:
59-1-401.
Definitions -- Offenses and penalties -- Rulemaking authority -- Statute
of limitations -- Commission authority to waive, reduce, or compromise penalty or
interest.
(1) As used in this section:
(a) "Activated tax, fee, or charge" means a tax, fee, or charge with respect to which the
commission:
(i) has implemented the commission's GenTax system; and
(ii) at least 30 days before implementing the commission's GenTax system as described
in Subsection (1)(a)(i), has provided notice in a conspicuous place on the commission's website
stating:
(A) the date the commission will implement the GenTax system with respect to the tax,
fee, or charge; and
(B) that, at the time the commission implements the GenTax system with respect to the
tax, fee, or charge:
(I) a person that files a return after the due date as described in Subsection (2)(a) is
subject to the penalty described in Subsection (2)(c)(ii); and
(II) a person that fails to pay the tax, fee, or charge as described in Subsection (3)(a) is
subject to the penalty described in Subsection (3)(b)(ii).
(b) "Activation date for a tax, fee, or charge" means with respect to a tax, fee, or
charge, the later of:
(i) the date on which the commission implements the commission's GenTax system
with respect to the tax, fee, or charge; or
(ii) 30 days after the date the commission provides the notice described in Subsection
(1)(a)(ii) with respect to the tax, fee, or charge.
(c) (i) Except as provided in Subsection (1)(c)(ii), "tax, fee, or charge" means:
(A) a tax, fee, or charge the commission administers under:
(I) this title;
(II) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(III) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(IV) Section 
19-6-410.5
;
(V) Section 
19-6-714
;
(VI) Section 
19-6-805
;
(VII) Section 
34A-2-202
;
(VIII) Section 
40-6-14
; or
(IX) Title 69, Chapter 2, Part 4, 911 Emergency Service Charges; or
(B) another amount that by statute is subject to a penalty imposed under this section.
(ii) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
(A) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 
41-1a-301
;
(B) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
(C) Chapter 2, Property Tax Act, except for Section 
59-2-1309
;
(D) Chapter 3, Tax Equivalent Property Act; or
(E) Chapter 4, Privilege Tax.
(d) "Unactivated tax, fee, or charge" means a tax, fee, or charge except for an activated
tax, fee, or charge.
(2) (a) The due date for filing a return is:
(i) if the person filing the return is not allowed by law an extension of time for filing
the return, the day on which the return is due as provided by law; or
(ii) if the person filing the return is allowed by law an extension of time for filing the
return, the earlier of:
(A) the date the person files the return; or
(B) the last day of that extension of time as allowed by law.
(b) A penalty in the amount described in Subsection (2)(c) is imposed if a person files a
return after the due date described in Subsection (2)(a).
(c) For purposes of Subsection (2)(b), the penalty is an amount equal to the greater of:
(i) if the return described in Subsection (2)(b) is filed with respect to an unactivated
tax, fee, or charge:
(A) $20; or
(B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or
(ii) if the return described in Subsection (2)(b) is filed with respect to an activated tax,
fee, or charge, beginning on the activation date for the tax, fee, or charge:
(A) $20; or
(B) (I) 2% of the unpaid activated tax, fee, or charge due on the return if the return is
filed no later than five days after the due date described in Subsection (2)(a);
(II) 5% of the unpaid activated tax, fee, or charge due on the return if the return is filed
more than five days after the due date but no later than 15 days after the due date described in
Subsection (2)(a); or
(III) 10% of the unpaid activated tax, fee, or charge due on the return if the return is
filed more than 15 days after the due date described in Subsection (2)(a).
(d) This Subsection (2) does not apply to:
(i) an amended return; or
(ii) a return with no tax due.
(3) (a) A person is subject to a penalty for failure to pay a tax, fee, or charge if:
(i) the person files a return on or before the due date for filing a return described in
Subsection (2)(a), but fails to pay the tax, fee, or charge due on the return on or before that due
date;
(ii) the person:
(A) is subject to a penalty under Subsection (2)(b); and
(B) fails to pay the tax, fee, or charge due on a return within a 90-day period after the
due date for filing a return described in Subsection (2)(a);
(iii) (A) the person is subject to a penalty under Subsection (2)(b); and
(B) the commission estimates an amount of tax due for that person in accordance with
Subsection 
59-1-1406
(2);
(iv) the person:
(A) is mailed a notice of deficiency; and
(B) within a 30-day period after the day on which the notice of deficiency described in
Subsection (3)(a)(iv)(A) is mailed:
(I) does not file a petition for redetermination or a request for agency action; and
(II) fails to pay the tax, fee, or charge due on a return;
(v) (A) the commission:
(I) issues an order constituting final agency action resulting from a timely filed petition
for redetermination or a timely filed request for agency action; or
(II) is considered to have denied a request for reconsideration under Subsection
63G-4-302
(3)(b) resulting from a timely filed petition for redetermination or a timely filed
request for agency action; and
(B) the person fails to pay the tax, fee, or charge due on a return within a 30-day period
after the date the commission:
(I) issues the order constituting final agency action described in Subsection
(3)(a)(v)(A)(I); or
(II) is considered to have denied the request for reconsideration described in
Subsection (3)(a)(v)(A)(II); or
(vi) the person fails to pay the tax, fee, or charge within a 30-day period after the date
of a final judicial decision resulting from a timely filed petition for judicial review.
(b) For purposes of Subsection (3)(a), the penalty is an amount equal to the greater of:
(i) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
respect to an unactivated tax, fee, or charge:
(A) $20; or
(B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or
(ii) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
respect to an activated tax, fee, or charge, beginning on the activation date:
(A) $20; or
(B) (I) 2% of the unpaid activated tax, fee, or charge due on the return if the activated
tax, fee, or charge due on the return is paid no later than five days after the due date for filing a
return described in Subsection (2)(a);
(II) 5% of the unpaid activated tax, fee, or charge due on the return if the activated tax,
fee, or charge due on the return is paid more than five days after the due date for filing a return
described in Subsection (2)(a) but no later than 15 days after that due date; or
(III) 10% of the unpaid activated tax, fee, or charge due on the return if the activated
tax, fee, or charge due on the return is paid more than 15 days after the due date for filing a
return described in Subsection (2)(a).
(4) (a) Beginning January 1, 1995, in the case of any underpayment of estimated tax or
quarterly installments required by Sections 
59-5-107
, 
59-5-207
, 
59-7-504
, and 
59-9-104
, there
shall be added a penalty in an amount determined by applying the interest rate provided under
Section 
59-1-402
 plus four percentage points to the amount of the underpayment for the period
of the underpayment.
(b) (i) For purposes of Subsection (4)(a), the amount of the underpayment shall be the
excess of the required installment over the amount, if any, of the installment paid on or before
the due date for the installment.
(ii) The period of the underpayment shall run from the due date for the installment to
whichever of the following dates is the earlier:
(A) the original due date of the tax return, without extensions, for the taxable year; or
(B) with respect to any portion of the underpayment, the date on which that portion is
paid.
(iii) For purposes of this Subsection (4), a payment of estimated tax shall be credited
against unpaid required installments in the order in which the installments are required to be
paid.
(5) (a) Notwithstanding Subsection (2) and except as provided in Subsection (6), a
person allowed by law an extension of time for filing a corporate franchise or income tax return
under Chapter 7, Corporate Franchise and Income Taxes, or an individual income tax return
under Chapter 10, Individual Income Tax Act, is subject to a penalty in the amount described in
Subsection (5)(b) if, on or before the day on which the return is due as provided by law, not
including the extension of time, the person fails to pay:
(i) for a person filing a corporate franchise or income tax return under Chapter 7,
Corporate Franchise and Income Taxes, the payment required by Subsection 
59-7-507
(1)(b); or
(ii) for a person filing an individual income tax return under Chapter 10, Individual
Income Tax Act, the payment required by Subsection 
59-10-516
(2).
(b) For purposes of Subsection (5)(a), the penalty per month during the period of the
extension of time for filing the return is an amount equal to 2% of the tax due on the return,
unpaid as of the day on which the return is due as provided by law.
(6) If a person does not file a return within an extension of time allowed by Section
59-7-505
 or 
59-10-516
, the person:
(a) is not subject to a penalty in the amount described in Subsection (5)(b); and
(b) is subject to a penalty in an amount equal to the sum of:
(i) a late file penalty in an amount equal to the greater of:
(A) $20; or
(B) 10% of the tax due on the return, unpaid as of the day on which the return is due as
provided by law, not including the extension of time; and
(ii) a late pay penalty in an amount equal to the greater of:
(A) $20; or
(B) 10% of the unpaid tax due on the return, unpaid as of the day on which the return is
due as provided by law, not including the extension of time.
(7) (a) Additional penalties for an underpayment of a tax, fee, or charge are as provided
in this Subsection (7)(a).
(i) Except as provided in Subsection (7)(c), if any portion of an underpayment of a tax,
fee, or charge is due to negligence, the penalty is 10% of the portion of the underpayment that
is due to negligence.
(ii) Except as provided in Subsection (7)(d), if any portion of an underpayment of a
tax, fee, or charge is due to intentional disregard of law or rule, the penalty is 15% of the entire
underpayment.
(iii) If any portion of an underpayment is due to an intent to evade a tax, fee, or charge,
the penalty is the greater of $500 per period or 50% of the entire underpayment.
(iv) If any portion of an underpayment is due to fraud with intent to evade a tax, fee, or
charge, the penalty is the greater of $500 per period or 100% of the entire underpayment.
(b) If the commission determines that a person is liable for a penalty imposed under
Subsection (7)(a)(ii), (iii), or (iv), the commission shall notify the person of the proposed
penalty.
(i) The notice of proposed penalty shall:
(A) set forth the basis of the assessment; and
(B) be mailed by certified mail, postage prepaid, to the person's last-known address.
(ii) Upon receipt of the notice of proposed penalty, the person against whom the
penalty is proposed may:
(A) pay the amount of the proposed penalty at the place and time stated in the notice;
or
(B) proceed in accordance with the review procedures of Subsection (7)(b)(iii).
(iii) A person against whom a penalty is proposed in accordance with this Subsection
(7) may contest the proposed penalty by filing a petition for an adjudicative proceeding with
the commission.
(iv) (A) If the commission determines that a person is liable for a penalty under this
Subsection (7), the commission shall assess the penalty and give notice and demand for
payment.
(B) The commission shall mail the notice and demand for payment described in
Subsection (7)(b)(iv)(A):
(I) to the person's last-known address; and
(II) in accordance with Section 
59-1-1404
.
(c) A seller that voluntarily collects a tax under Subsection 
59-12-107
(2)(d) is not
subject to the penalty under Subsection (7)(a)(i) if on or after July 1, 2001:
(i) a court of competent jurisdiction issues a final unappealable judgment or order
determining that:
(A) the seller meets one or more of the criteria described in Subsection 
59-12-107
(2)(a)
or is a seller required to pay or collect and remit sales and use taxes under Subsection
59-12-107
(2)(b) or (2)(c); and
(B) the commission or a county, city, or town may require the seller to collect a tax
under Subsections 
59-12-103
(2)(a) through [
(d)
] 
(e)
; or
(ii) the commission issues a final unappealable administrative order determining that:
(A) the seller meets one or more of the criteria described in Subsection 
59-12-107
(2)(a)
or is a seller required to pay or collect and remit sales and use taxes under Subsection
59-12-107
(2)(b) or (2)(c); and
(B) the commission or a county, city, or town may require the seller to collect a tax
under Subsections 
59-12-103
(2)(a) through [
(d)
] 
(e)
.
(d) A seller that voluntarily collects a tax under Subsection 
59-12-107
(2)(d) is not
subject to the penalty under Subsection (7)(a)(ii) if:
(i) (A) a court of competent jurisdiction issues a final unappealable judgment or order
determining that:
(I) the seller meets one or more of the criteria described in Subsection 
59-12-107
(2)(a)
or is a seller required to pay or collect and remit sales and use taxes under Subsection
59-12-107
(2)(b) or (2)(c); and
(II) the commission or a county, city, or town may require the seller to collect a tax
under Subsections 
59-12-103
(2)(a) through [
(d)
] 
(e)
; or
(B) the commission issues a final unappealable administrative order determining that:
(I) the seller meets one or more of the criteria described in Subsection 
59-12-107
(2)(a)
or is a seller required to pay or collect and remit sales and use taxes under Subsection
59-12-107
(2)(b) or (2)(c); and
(II) the commission or a county, city, or town may require the seller to collect a tax
under Subsections 
59-12-103
(2)(a) through [
(d)
] 
(e)
; and
(ii) the seller's intentional disregard of law or rule is warranted by existing law or by a
nonfrivolous argument for the extension, modification, or reversal of existing law or the
establishment of new law.
(8) (a) Subject to Subsections (8)(b) and (c), the penalty for failure to file an
information return, information report, or a complete supporting schedule is $50 for each
information return, information report, or supporting schedule up to a maximum of $1,000.
(b) If an employer is subject to a penalty under Subsection (13), the employer may not
be subject to a penalty under Subsection (8)(a).
(c) If an employer is subject to a penalty under this Subsection (8) for failure to file a
return in accordance with Subsection 
59-10-406
(3) on or before the due date described in
Subsection 
59-10-406
(3)(b)(ii), the commission may not impose a penalty under this
Subsection (8) unless the return is filed more than 14 days after the due date described in
Subsection 
59-10-406
(3)(b)(ii).
(9) If a person, in furtherance of a frivolous position, has a prima facie intent to delay
or impede administration of a law relating to a tax, fee, or charge and files a purported return
that fails to contain information from which the correctness of reported tax, fee, or charge
liability can be determined or that clearly indicates that the tax, fee, or charge liability shown is
substantially incorrect, the penalty is $500.
(10) (a) A seller that fails to remit a tax, fee, or charge monthly as required by
Subsection 
59-12-108
(1)(a):
(i) is subject to a penalty described in Subsection (2); and
(ii) may not retain the percentage of sales and use taxes that would otherwise be
allowable under Subsection 
59-12-108
(2).
(b) A seller that fails to remit a tax, fee, or charge by electronic funds transfer as
required by Subsection 
59-12-108
(1)(a)(ii)(B):
(i) is subject to a penalty described in Subsection (2); and
(ii) may not retain the percentage of sales and use taxes that would otherwise be
allowable under Subsection 
59-12-108
(2).
(11) (a) A person is subject to the penalty provided in Subsection (11)(c) if that person:
(i) commits an act described in Subsection (11)(b) with respect to one or more of the
following documents:
(A) a return;
(B) an affidavit;
(C) a claim; or
(D) a document similar to Subsections (11)(a)(i)(A) through (C);
(ii) knows or has reason to believe that the document described in Subsection (11)(a)(i)
will be used in connection with any material matter administered by the commission; and
(iii) knows that the document described in Subsection (11)(a)(i), if used in connection
with any material matter administered by the commission, would result in an understatement of
another person's liability for a tax, fee, or charge.
(b) The following acts apply to Subsection (11)(a)(i):
(i) preparing any portion of a document described in Subsection (11)(a)(i);
(ii) presenting any portion of a document described in Subsection (11)(a)(i);
(iii) procuring any portion of a document described in Subsection (11)(a)(i);
(iv) advising in the preparation or presentation of any portion of a document described
in Subsection (11)(a)(i);
(v) aiding in the preparation or presentation of any portion of a document described in
Subsection (11)(a)(i);
(vi) assisting in the preparation or presentation of any portion of a document described
in Subsection (11)(a)(i); or
(vii) counseling in the preparation or presentation of any portion of a document
described in Subsection (11)(a)(i).
(c) For purposes of Subsection (11)(a), the penalty:
(i) shall be imposed by the commission;
(ii) is $500 for each document described in Subsection (11)(a)(i) with respect to which
the person described in Subsection (11)(a) meets the requirements of Subsection (11)(a); and
(iii) is in addition to any other penalty provided by law.
(d) The commission may seek a court order to enjoin a person from engaging in
conduct that is subject to a penalty under this Subsection (11).
(e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules prescribing the documents that are similar to Subsections
(11)(a)(i)(A) through (C).
(12) (a) As provided in Section 
76-8-1101
, criminal offenses and penalties are as
provided in Subsections (12)(b) through (e).
(b) (i) A person who is required by this title or any laws the commission administers or
regulates to register with or obtain a license or permit from the commission, who operates
without having registered or secured a license or permit, or who operates when the registration,
license, or permit is expired or not current, is guilty of a class B misdemeanor.
(ii) Notwithstanding Section 
76-3-301
, for purposes of Subsection (12)(b)(i), the
penalty may not:
(A) be less than $500; or
(B) exceed $1,000.
(c) (i) With respect to a tax, fee, or charge, a person who knowingly and intentionally,
and without a reasonable good faith basis, fails to make, render, sign, or verify a return within
the time required by law or to supply information within the time required by law, or who
makes, renders, signs, or verifies a false or fraudulent return or statement, or who supplies false
or fraudulent information, is guilty of a third degree felony.
(ii) Notwithstanding Section 
76-3-301
, for purposes of Subsection (12)(c)(i), the
penalty may not:
(A) be less than $1,000; or
(B) exceed $5,000.
(d) (i) A person who intentionally or willfully attempts to evade or defeat a tax, fee, or
charge or the payment of a tax, fee, or charge is, in addition to other penalties provided by law,
guilty of a second degree felony.
(ii) Notwithstanding Section 
76-3-301
, for purposes of Subsection (12)(d)(i), the
penalty may not:
(A) be less than $1,500; or
(B) exceed $25,000.
(e) (i) A person is guilty of a second degree felony if that person commits an act:
(A) described in Subsection (12)(e)(ii) with respect to one or more of the following
documents:
(I) a return;
(II) an affidavit;
(III) a claim; or
(IV) a document similar to Subsections (12)(e)(i)(A)(I) through (III); and
(B) subject to Subsection (12)(e)(iii), with knowledge that the document described in
Subsection (12)(e)(i)(A):
(I) is false or fraudulent as to any material matter; and
(II) could be used in connection with any material matter administered by the
commission.
(ii) The following acts apply to Subsection (12)(e)(i):
(A) preparing any portion of a document described in Subsection (12)(e)(i)(A);
(B) presenting any portion of a document described in Subsection (12)(e)(i)(A);
(C) procuring any portion of a document described in Subsection (12)(e)(i)(A);
(D) advising in the preparation or presentation of any portion of a document described
in Subsection (12)(e)(i)(A);
(E) aiding in the preparation or presentation of any portion of a document described in
Subsection (12)(e)(i)(A);
(F) assisting in the preparation or presentation of any portion of a document described
in Subsection (12)(e)(i)(A); or
(G) counseling in the preparation or presentation of any portion of a document
described in Subsection (12)(e)(i)(A).
(iii) This Subsection (12)(e) applies:
(A) regardless of whether the person for which the document described in Subsection
(12)(e)(i)(A) is prepared or presented:
(I) knew of the falsity of the document described in Subsection (12)(e)(i)(A); or
(II) consented to the falsity of the document described in Subsection (12)(e)(i)(A); and
(B) in addition to any other penalty provided by law.
(iv) Notwithstanding Section 
76-3-301
, for purposes of this Subsection (12)(e), the
penalty may not:
(A) be less than $1,500; or
(B) exceed $25,000.
(v) The commission may seek a court order to enjoin a person from engaging in
conduct that is subject to a penalty under this Subsection (12)(e).
(vi) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may make rules prescribing the documents that are similar to Subsections
(12)(e)(i)(A)(I) through (III).
(f) The statute of limitations for prosecution for a violation of this Subsection (12) is
the later of six years:
(i) from the date the tax should have been remitted; or
(ii) after the day on which the person commits the criminal offense.
(13) (a) Subject to Subsection (13)(b), an employer that is required to file a form with
the commission in accordance with Subsection 
59-10-406
(8) is subject to a penalty described
in Subsection (13)(b) if the employer:
(i) fails to file the form with the commission in an electronic format approved by the
commission as required by Subsection 
59-10-406
(8);
(ii) fails to file the form on or before the due date provided in Subsection 
59-10-406
(8);
(iii) fails to provide accurate information on the form; or
(iv) fails to provide all of the information required by the Internal Revenue Service to
be contained on the form.
(b) For purposes of Subsection (13)(a), the penalty is:
(i) $30 per form, not to exceed $75,000 in a calendar year, if the employer files the
form in accordance with Subsection 
59-10-406
(8), more than 14 days after the due date
provided in Subsection 
59-10-406
(8) but no later than 30 days after the due date provided in
Subsection 
59-10-406
(8);
(ii) $60 per form, not to exceed $200,000 in a calendar year, if the employer files the
form in accordance with Subsection 
59-10-406
(8), more than 30 days after the due date
provided in Subsection 
59-10-406
(8) but on or before June 1; or
(iii) $100 per form, not to exceed $500,000 in a calendar year, if the employer:
(A) files the form in accordance with Subsection 
59-10-406
(8) after June 1; or
(B) fails to file the form.
(14) Upon making a record of its actions, and upon reasonable cause shown, the
commission may waive, reduce, or compromise any of the penalties or interest imposed under
this part.
Section 6. 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);
[
(d)
] 
(e)
 Subsection 
59-12-103
(2)[
(d)
]
(e)
(i)(A)(I);
[
(e)
] 
(f)
 Section 
59-12-204
;
[
(f)
] 
(g)
 Section 
59-12-401
;
[
(g)
] 
(h)
 Section 
59-12-402
;
[
(h)
] 
(i)
 Section 
59-12-402.1
;
[
(i)
] 
(j)
 Section 
59-12-703
;
[
(j)
] 
(k)
 Section 
59-12-802
;
[
(k)
] 
(l)
 Section 
59-12-804
;
[
(l)
] 
(m)
 Section 
59-12-1102
;
[
(m)
] 
(n)
 Section 
59-12-1302
;
[
(n)
] 
(o)
 Section 
59-12-1402
;
[
(o)
] 
(p)
 Section 
59-12-1802
;
[
(p)
] 
(q)
 Section 
59-12-2003
;
[
(q)
] 
(r)
 Section 
59-12-2103
;
[
(r)
] 
(s)
 Section 
59-12-2213
;
[
(s)
] 
(t)
 Section 
59-12-2214
;
[
(t)
] 
(u)
 Section 
59-12-2215
;
[
(u)
] 
(v)
 Section 
59-12-2216
;
[
(v)
] 
(w)
 Section 
59-12-2217
;
[
(w)
] 
(x)
 Section 
59-12-2218
;
[
(x)
] 
(y)
 Section 
59-12-2219
; or
[
(y)
] 
(z)
 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) "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) "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) (a) Except as provided in Subsection (18)(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) (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)(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)(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)(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)(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)(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)(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)(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)(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)(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) "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)(a)(i).
(21) "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) (a) Subject to Subsection (22)(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) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
(24) "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).
(25) (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)(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) "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) "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) "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) "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)(a) and (b).
(30) (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)(a).
(c) "Conference bridging service" does not include a telecommunications service used
to reach the ancillary service described in Subsection (30)(a).
(31) "Construction materials" means any tangible personal property that will be
converted into real property.
(32) "Delivered electronically" means delivered to a purchaser by means other than
tangible storage media.
(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)(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 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.
(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)(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) "Mobile home" means the same as that term is defined in Section 
15A-1-302
.
(72) "Mobile telecommunications service" means the same as that term is defined in
the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(73) (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)(a)(i) and the termination point
described in Subsection (73)(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) (a) Except as provided in Subsection (74)(c), "mobility enhancing equipment"
means equipment that is:
(i) primarily and customarily used to provide or increase the ability to move from one
place to another;
(ii) appropriate for use in a:
(A) home; or
(B) motor vehicle; and
(iii) not generally used by persons with normal mobility.
(b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
the equipment described in Subsection (74)(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) "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) "Model 2 seller" means a seller registered under the agreement that:
(a) except as provided in Subsection (76)(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) (a) Subject to Subsection (77)(b), "model 3 seller" means a seller registered under
the agreement that has:
(i) sales in at least five states that are members of the agreement;
(ii) total annual sales revenues of at least $500,000,000;
(iii) a proprietary system that calculates the amount of tax:
(A) for an agreement sales and use tax; and
(B) due to each local taxing jurisdiction; and
(iv) entered into a performance agreement with the governing board of the agreement.
(b) For purposes of Subsection (77)(a), "model 3 seller" includes an affiliated group of
sellers using the same proprietary system.
(78) "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) "Modular home" means a modular unit as defined in Section 
15A-1-302
.
(80) "Motor vehicle" means the same as that term is defined in Section 
41-1a-102
.
(81) "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) "Oil shale" means a group of fine black to dark brown shales containing kerogen
material that yields petroleum upon heating and distillation.
(83) "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) (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) (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)(a), the transmission of a coded radio signal
includes a transmission by message or sound.
(86) "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) (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)(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)(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)(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)(c).
(89) "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.
(90) "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) (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) "Postproduction" means an activity related to the finishing or duplication of a
medium described in Subsection 
59-12-104
(54)(a).
(93) "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) "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) (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)(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)(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)(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) "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) (a) Except as provided in Subsection (97)(b)(ii) or (iii), "prewritten computer
software" means computer software that is not designed and developed:
(i) by the author or other creator of the computer software; and
(ii) to the specifications of a specific purchaser.
(b) "Prewritten computer software" includes:
(i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
software is not designed and developed:
(A) by the author or other creator of the computer software; and
(B) to the specifications of a specific purchaser;
(ii) computer software designed and developed by the author or other creator of the
computer software to the specifications of a specific purchaser if the computer software is sold
to a person other than the purchaser; or
(iii) except as provided in Subsection (97)(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)(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)(b)(iii) if the charges for the modification or enhancement are:
(i) reasonable; and
(ii) subject to Subsections 
59-12-103
(2)[
(e)
]
(f)
(ii) and (2)[
(f)
]
(g)
(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) (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) (a) Except as provided in Subsection (99)(b), "product transferred electronically"
means a product transferred electronically that would be subject to a tax under this chapter if
that product was transferred in a manner other than electronically.
(b) "Product transferred electronically" does not include:
(i) an ancillary service;
(ii) computer software; or
(iii) a telecommunications service.
(100) (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) (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) (a) For purposes of Subsection 
59-12-104
(41), "publication" means any written
or printed matter, other than a photocopy:
(i) regardless of:
(A) characteristics;
(B) copyright;
(C) form;
(D) format;
(E) method of reproduction; or
(F) source; and
(ii) made available in printed or electronic format.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "photocopy."
(103) (a) "Purchase price" and "sales price" mean the total amount of consideration:
(i) valued in money; and
(ii) for which tangible personal property, a product transferred electronically, or
services are:
(A) sold;
(B) leased; or
(C) rented.
(b) "Purchase price" and "sales price" include:
(i) the seller's cost of the tangible personal property, a product transferred
electronically, or services sold;
(ii) expenses of the seller, including:
(A) the cost of materials used;
(B) a labor cost;
(C) a service cost;
(D) interest;
(E) a loss;
(F) the cost of transportation to the seller; or
(G) a tax imposed on the seller;
(iii) a charge by the seller for any service necessary to complete the sale; or
(iv) consideration a seller receives from a person other than the purchaser if:
(A) (I) the seller actually receives consideration from a person other than the purchaser;
and
(II) the consideration described in Subsection (103)(b)(iv)(A)(I) is directly related to a
price reduction or discount on the sale;
(B) the seller has an obligation to pass the price reduction or discount through to the
purchaser;
(C) the amount of the consideration attributable to the sale is fixed and determinable by
the seller at the time of the sale to the purchaser; and
(D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
seller to claim a price reduction or discount; and
(Bb) a person other than the seller authorizes, distributes, or grants the certificate,
coupon, or other documentation with the understanding that the person other than the seller
will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
(II) the purchaser identifies that purchaser to the seller as a member of a group or
organization allowed a price reduction or discount, except that a preferred customer card that is
available to any patron of a seller does not constitute membership in a group or organization
allowed a price reduction or discount; or
(III) the price reduction or discount is identified as a third party price reduction or
discount on the:
(Aa) invoice the purchaser receives; or
(Bb) certificate, coupon, or other documentation the purchaser presents.
(c) "Purchase price" and "sales price" do not include:
(i) a discount:
(A) in a form including:
(I) cash;
(II) term; or
(III) coupon;
(B) that is allowed by a seller;
(C) taken by a purchaser on a sale; and
(D) that is not reimbursed by a third party; or
(ii) subject to Subsections 
59-12-103
(2)[
(e)
]
(f)
(ii) and (2)[
(f)
]
(g)
(i), the following if
separately stated on an invoice, bill of sale, or similar document provided to the purchaser at
the time of sale or later, as demonstrated by the books and records the seller keeps at the time
of the transaction in the regular course of business, including books and records the seller
keeps at the time of the transaction in the regular course of business for nontax purposes, by a
preponderance of the facts and circumstances at the time of the transaction, and by the
understanding of all of the parties to the transaction:
(A) the following from credit extended on the sale of tangible personal property or
services:
(I) a carrying charge;
(II) a financing charge; or
(III) an interest charge;
(B) a delivery charge;
(C) an installation charge;
(D) a manufacturer rebate on a motor vehicle; or
(E) a tax or fee legally imposed directly on the consumer.
(104) "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) "Qualifying enterprise data center" means an establishment that will:
(a) own and operate a data center facility that will house a group of networked server
computers in one physical location in order to centralize the dissemination, management, and
storage of data and information;
(b) be located in the state;
(c) be a new operation constructed on or after July 1, 2016;
(d) consist of one or more buildings that total 150,000 or more square feet;
(e) be owned or leased by:
(i) the establishment; or
(ii) a person under common ownership, as defined in Section 
59-7-101
, of the
establishment; and
(f) be located on one or more parcels of land that are owned or leased by:
(i) the establishment; or
(ii) a person under common ownership, as defined in Section 
59-7-101
, of the
establishment.
(106) "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) "Rental" means the same as that term is defined in Subsection (60).
(108) (a) Except as provided in Subsection (108)(b), "repairs or renovations of tangible
personal property" means:
(i) a repair or renovation of tangible personal property that is not permanently attached
to real property; or
(ii) attaching tangible personal property or a product transferred electronically to other
tangible personal property or detaching tangible personal property or a product transferred
electronically from other tangible personal property if:
(A) the other tangible personal property to which the tangible personal property or
product transferred electronically is attached or from which the tangible personal property or
product transferred electronically is detached is not permanently attached to real property; and
(B) the attachment of tangible personal property or a product transferred electronically
to other tangible personal property or detachment of tangible personal property or a product
transferred electronically from other tangible personal property is made in conjunction with a
repair or replacement of tangible personal property or a product transferred electronically.
(b) "Repairs or renovations of tangible personal property" does not include:
(i) attaching prewritten computer software to other tangible personal property if the
other tangible personal property to which the prewritten computer software is attached is not
permanently attached to real property; or
(ii) detaching prewritten computer software from other tangible personal property if the
other tangible personal property from which the prewritten computer software is detached is
not permanently attached to real property.
(109) "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) (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)(a)(i), a residential address includes an:
(i) apartment; or
(ii) other individual dwelling unit.
(111) "Residential use" means the use in or around a home, apartment building,
sleeping quarters, and similar facilities or accommodations.
(112) "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) (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) (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) "Sale at retail" means the same as that term is defined in Subsection (112).
(116) "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) "Sales price" means the same as that term is defined in Subsection (103).
(118) (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)(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) 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.
(120) (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.
(121) (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)(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) "Senior citizen center" means a facility having the primary purpose of providing
services to the aged as defined in Section 
62A-3-101
.
(123) (a) Subject to Subsections (123)(b) and (c), "short-term lodging consumable"
means tangible personal property that:
(i) a business that provides accommodations and services described in Subsection
59-12-103
(1)(i) purchases as part of a transaction to provide the accommodations and services
to a purchaser;
(ii) is intended to be consumed by the purchaser; and
(iii) is:
(A) included in the purchase price of the accommodations and services; and
(B) not separately stated on an invoice, bill of sale, or other similar document provided
to the purchaser.
(b) "Short-term lodging consumable" includes:
(i) a beverage;
(ii) a brush or comb;
(iii) a cosmetic;
(iv) a hair care product;
(v) lotion;
(vi) a magazine;
(vii) makeup;
(viii) a meal;
(ix) mouthwash;
(x) nail polish remover;
(xi) a newspaper;
(xii) a notepad;
(xiii) a pen;
(xiv) a pencil;
(xv) a razor;
(xvi) saline solution;
(xvii) a sewing kit;
(xviii) shaving cream;
(xix) a shoe shine kit;
(xx) a shower cap;
(xxi) a snack item;
(xxii) soap;
(xxiii) toilet paper;
(xxiv) a toothbrush;
(xxv) toothpaste; or
(xxvi) an item similar to Subsections (123)(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) "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) "Solar energy" means the sun used as the sole source of energy for producing
electricity.
(126) (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) "State" means the state of Utah, its departments, and agencies.
(128) "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) (a) Except as provided in Subsection (129)(d) or (e), "tangible personal property"
means personal property that:
(i) may be:
(A) seen;
(B) weighed;
(C) measured;
(D) felt; or
(E) touched; or
(ii) is in any manner perceptible to the senses.
(b) "Tangible personal property" includes:
(i) electricity;
(ii) water;
(iii) gas;
(iv) steam; or
(v) prewritten computer software, regardless of the manner in which the prewritten
computer software is transferred.
(c) "Tangible personal property" includes the following regardless of whether the item
is attached to real property:
(i) a dishwasher;
(ii) a dryer;
(iii) a freezer;
(iv) a microwave;
(v) a refrigerator;
(vi) a stove;
(vii) a washer; or
(viii) an item similar to Subsections (129)(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) (a) "Telecommunications enabling or facilitating equipment, machinery, or
software" means an item listed in Subsection (130)(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)(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)(b)(i) through (vi) as determined by the commission by rule made in
accordance with Subsection (130)(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)(b)(i) through (vi).
(131) "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) "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) (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) (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)(a)(i) for the shared use with or
resale to any person of the telecommunications service.
(b) A person described in Subsection (134)(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) (a) "Telecommunications switching or routing equipment, machinery, or
software" means an item listed in Subsection (135)(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)(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)(b)(i) through (ix) as determined by the commission by rule made in
accordance with Subsection (135)(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)(b)(i) through (ix).
(136) (a) "Telecommunications transmission equipment, machinery, or software"
means an item listed in Subsection (136)(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)(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)(b)(i) through (xxv) as determined by the commission by rule made in
accordance with Subsection (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 (136)(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) "Tobacco" means:
(a) a cigarette;
(b) a cigar;
(c) chewing tobacco;
(d) pipe tobacco; or
(e) any other item that contains tobacco.
(139) "Unassisted amusement device" means an amusement device, skill device, or
ride device that is started and stopped by the purchaser or renter of the right to use or operate
the amusement device, skill device, or ride device.
(140) (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) "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) (a) Subject to Subsection (142)(b), "vehicle" means the following that are
required to be titled, registered, or titled and registered:
(i) an aircraft as defined in Section 
72-10-102
;
(ii) a vehicle as defined in Section 
41-1a-102
;
(iii) an off-highway vehicle as defined in Section 
41-22-2
; or
(iv) a vessel as defined in Section 
41-1a-102
.
(b) For purposes of Subsection 
59-12-104
(33) only, "vehicle" includes:
(i) a vehicle described in Subsection (142)(a); or
(ii) (A) a locomotive;
(B) a freight car;
(C) railroad work equipment; or
(D) other railroad rolling stock.
(143) "Vehicle dealer" means a person engaged in the business of buying, selling, or
exchanging a vehicle as defined in Subsection (142).
(144) (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) (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) (a) Except as provided in Subsection (146)(b), "waste energy facility" means a
facility that generates electricity:
(i) using as the primary source of energy waste materials that would be placed in a
landfill or refuse pit if it were not used to generate electricity, including:
(A) tires;
(B) waste coal;
(C) oil shale; or
(D) municipal solid waste; and
(ii) in amounts greater than actually required for the operation of the facility.
(b) "Waste energy facility" does not include a facility that incinerates:
(i) hospital waste as defined in 40 C.F.R. 60.51c; or
(ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
(147) "Watercraft" means a vessel as defined in Section 
73-18-2
.
(148) "Wind energy" means wind used as the sole source of energy to produce
electricity.
(149) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
location by the United States Postal Service.
Section 7. 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 revenues.
(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, 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) 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);
(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.
(2) (a) Except as provided in Subsections (2)(b) through [
(e)
] 
(f)
, 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) beginning on April 1, 2019,
] 
(A)
 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)
] 
(2)(e) or (f)
, 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)
] 
(2)(e) or (f)
, 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%; 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) Except as provided in Subsection (2)(e) or (f), a state tax is imposed on amounts
paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
a rate of 4.85%.
[
(d)
] 
(e)
 (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)
]
(e)
(iv), for a bundled transaction other than a
bundled transaction described in Subsection (2)[
(d)
]
(e)
(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)
]
(e)
(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)
] 
(f)
 (i) Except as otherwise provided in this chapter and subject to Subsections
(2)[
(e)
]
(f)
(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)
] 
(g)
 (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)
]
(g)
(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)
] 
(h)
 Subject to Subsections (2)[
(h) and
] (i) 
and (j)
, 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)
]
(e)
(i)(A)(I).
[
(h)
] (i) 
(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)
]
(e)
(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)
]
(e)
(i)(A)(I).
[
(i)
] 
(j)
 (i) For a tax rate described in Subsection (2)[
(i)
]
(j)
(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)
]
(j)
(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)
]
(e)
(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
] 
and
(iv) the tax imposed by Subsection (2)[
(d)
]
(e)
(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)
]
(e)
(i)(B).
(c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
Fund.
(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)
] 
(a)
 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)
] 
(b)
 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,
2012, 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 collected from the following taxes, which represents a portion of the
approximately 17% of sales and use tax revenues 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)
]
(e)
(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% of the revenues 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% of the revenues 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% of the revenues 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% of the revenues
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)
] 
(8) (a)
 Notwithstanding Subsection (3)(a), in addition to the amounts deposited
under Subsections (6) and (7), and subject to Subsection (8)[
(c)(ii)
]
(b)
, 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)
] 
(i)
 the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
[
(B)
] 
(ii)
 the tax imposed by Subsection (2)(b)(i);
[
(C)
] 
(iii)
 the tax imposed by Subsection (2)(c)(i); and
[
(D)
] 
(iv)
 the tax imposed by Subsection (2)[
(d)
]
(e)
(i)(A)(I).
[
(ii)
] 
(b)
 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)
] 
(c)
 The commission shall annually deposit the amount described in Subsection
(8)[
(c)(ii)
]
(b)
 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)
] 
(10) (a)
 Notwithstanding Subsection (3)(a), except as provided in Subsection
(10)[
(c)
]
(b)
, 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)
] 
(i)
 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)
] 
(ii)
 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)
] 
(b)
 For purposes of [
Subsections (10)(a) and (b)
] 
Subsection (10)(a)
, 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)
]
(e)
.
(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 $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 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 8. Section 
59-12-104
 is amended to read:
59-12-104.
Exemptions.
Exemptions from the taxes imposed by this chapter are as follows:
(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
under Chapter 13, Motor and Special Fuel Tax Act;
(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) (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)(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;
(6) 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)
] 
(84)
 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) 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) 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) amounts paid for an item described in Subsection (10)(b) 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) purchases or leases exempt under Section 
19-12-201
;
(12) (a) sales of an item described in Subsection (12)(c) served by:
(i) the following if the item described in Subsection (12)(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)(c) is not available to the general public; or
(B) the item described in Subsection (12)(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)(c) provided for a patient by:
(i) a medical facility; or
(ii) a nursing facility; and
(c) Subsections (12)(a) and (b) apply to:
(i) food and food ingredients;
(ii) prepared food; or
(iii) alcoholic beverages;
(13) (a) except as provided in Subsection (13)(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) 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); 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) 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) (a) sales of the following if the requirements of Subsection (15)(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)(a)(i) through (iv); and
(b) sales of tooling, equipment, or parts described in Subsection (15)(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)(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) (a) except as provided in Subsection (17)(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)(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) (a) (i) except as provided in Subsection (18)(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:
(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)(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)(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)(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) sales of hay;
(20) 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)(a); or
(c) a member of the immediate family of the producer described in Subsection (20)(a);
(21) 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) 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) a product stored in the state for resale;
(24) (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)(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)(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)(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)(a) does not apply to:
(i) a lease or rental of a product; or
(ii) a sale of a vehicle exempt under Subsection (33); and
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
purposes of Subsection (24)(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) as in Subsection (63);
(ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
as in Subsection (63); or
(iii) a purpose for which a product is designed if that phrase has the same meaning in
this Subsection (24) as in Subsection (63);
(25) 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) 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) 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) purchases made in accordance with the special supplemental nutrition program for
women, infants, and children established in 42 U.S.C. Sec. 1786;
(29) 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) 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) sales of aircraft manufactured in Utah;
(32) amounts paid for the purchase of telecommunications service for purposes of
providing telecommunications service;
(33) 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) (a) 45% of the sales price of any new manufactured home; and
(b) 100% of the sales price of any used manufactured home;
(35) sales relating to schools and fundraising sales;
(36) 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) 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)(a) through (c);
(39) 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) (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,
20 U.S.C. Sec. 1681 et seq.;
(43) (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) 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) 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) (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)(a) applies
only to the portion of the tariff rate a customer pays under the tariff described in Subsection
(47)(a) that exceeds the tariff rate under the tariff described in Subsection (47)(a) that the
customer would have paid absent the tariff;
(48) sales or rentals of mobility enhancing equipment if a person presents a
prescription for the mobility enhancing equipment;
(49) sales of water in a:
(a) pipe;
(b) conduit;
(c) ditch; or
(d) reservoir;
(50) sales of currency or coins that constitute legal tender of a state, the United States,
or a foreign nation;
(51) (a) sales of an item described in Subsection (51)(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)(a) applies to a gold, silver, or platinum:
(i) ingot;
(ii) bar;
(iii) medallion; or
(iv) decorative coin;
(52) amounts paid on a sale-leaseback transaction;
(53) 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) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
machinery or equipment by an establishment described in Subsection (54)(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)(a)(i) through (vi) as determined by the
commission by administrative rule made in accordance with Subsection (54)(d); or
(b) purchases, leases, or rentals of machinery or equipment by an establishment
described in Subsection (54)(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)(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)(a)(i) through (vi);
or
(ii) define:
(A) "commercial distribution";
(B) "live musical performance";
(C) "live news program"; or
(D) "live sporting event";
(55) (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)(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) 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)(a)(i)(C)(II), tangible personal property used or
acquired after:
(A) the alternative energy electricity production facility described in Subsection
(55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
(B) the increased capacity described in Subsection (55)(a)(i) is operational as described
in Subsection (55)(a)(iii);
(56) (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)(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) 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)(a)(i)(C)(II), tangible personal property used or acquired after:
(A) the waste energy facility described in Subsection (56)(a)(i) is operational as
described in Subsection (56)(a)(iii); or
(B) the increased capacity described in Subsection (56)(a)(i) is operational as described
in Subsection (56)(a)(iii);
(57) (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)(a)(i);
(b) this Subsection (57) does not apply to:
(i) tangible personal property used in construction of:
(A) a new facility described in Subsection (57)(a)(i); or
(B) the increase in capacity of the facility described in Subsection (57)(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)(a)(i)(C)(II), tangible personal property used or acquired after:
(A) the facility described in Subsection (57)(a)(i) is operational; or
(B) the increased capacity described in Subsection (57)(a)(i) is operational;
(58) (a) subject to Subsection (58)(b) or (c), 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;
(b) the exemption under Subsection (58)(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) 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) (a) purchases or leases of an item described in Subsection (61)(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)(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) (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)(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) (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)(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)(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)(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); and
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
purposes of Subsection (63)(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) as in Subsection (24);
(ii) the first use of tangible personal property or a product transferred electronically if
that phrase has the same meaning in this Subsection (63) as in Subsection (24); 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) as in
Subsection (24);
(64) 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)(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) 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)(b); and
(B) located at the international airport described in Subsection (66)(b);
(67) 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)(b);
(B) located at the new airport described in Subsection (67)(b); and
(C) as part of the construction of the new airport described in Subsection (67)(b);
[
(68) sales of fuel to a common carrier that is a railroad for use in a locomotive
engine;
]
[
(69)
] 
(68)
 purchases and sales described in Section 
63H-4-111
;
[
(70)
] 
(69)
 (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)
] 
(70)
 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)
] 
(71)
 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)
] 
(72)
 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)
] 
(73)
 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)
] 
(73)
(a); and
(ii) that have an economic life of three or more years;
[
(75)
] 
(74)
 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)
] 
(75)
 (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)
] 
(76)
 purchases of a short-term lodging consumable by a business that provides
accommodations and services described in Subsection 
59-12-103
(1)(i);
[
(78)
] 
(77)
 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)
] 
(78)
 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)
] 
(79)
 beginning on April 1, 2013, sales of a fuel cell as defined in Section
54-15-102
;
[
(81)
] 
(80)
 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)
] 
(81)
 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)
] 
(82)
 amounts paid or charged for a purchase or lease of molten magnesium;
[
(84)
] 
(83)
 amounts paid or charged for a purchase or lease made by a qualifying
enterprise 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
(b) have an economic life of one or more years;
[
(85)
] 
(84)
 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)
] 
(85)
 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)
] 
(86)
 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)
] 
(87)
 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)
] 
(88)
 amounts paid or charged for an item exempt under Section 
59-12-104.10
.
Section 9. Section 
59-12-108
 is amended to read:
59-12-108.
Monthly payment -- Amount of tax a seller may retain -- Penalty --
Certain amounts allocated to local taxing jurisdictions.
(1) (a) Notwithstanding Section 
59-12-107
, a seller that has a tax liability under this
chapter of $50,000 or more for the previous calendar year shall:
(i) file a return with the commission:
(A) monthly on or before the last day of the month immediately following the month
for which the seller collects a tax under this chapter; and
(B) for the month for which the seller collects a tax under this chapter; and
(ii) except as provided in Subsection (1)(b), remit with the return required by
Subsection (1)(a)(i) the amount the person is required to remit to the commission for each tax,
fee, or charge described in Subsection (1)(c):
(A) if that seller's tax liability under this chapter for the previous calendar year is less
than $96,000, by any method permitted by the commission; or
(B) if that seller's tax liability under this chapter for the previous calendar year is
$96,000 or more, by electronic funds transfer.
(b) A seller shall remit electronically with the return required by Subsection (1)(a)(i)
the amount the seller is required to remit to the commission for each tax, fee, or charge
described in Subsection (1)(c) if that seller:
(i) is required by Section 
59-12-107
 to file the return electronically; or
(ii) (A) is required to collect and remit a tax under Section 
59-12-107
; and
(B) files a simplified electronic return.
(c) Subsections (1)(a) and (b) apply to the following taxes, fees, or charges:
(i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(ii) a fee under Section 
19-6-714
;
(iii) a fee under Section 
19-6-805
;
(iv) a charge under Title 69, Chapter 2, Part 4, 911 Emergency Service Charges; or
(v) a tax under this chapter.
(d) Notwithstanding Subsection (1)(a)(ii) and in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, the commission shall make rules providing for a method
for making same-day payments other than by electronic funds transfer if making payments by
electronic funds transfer fails.
(e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission shall establish by rule procedures and requirements for determining the amount a
seller is required to remit to the commission under this Subsection (1).
(2) (a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a
seller described in Subsection (4) may retain each month the amount allowed by this
Subsection (2).
(b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
each month 1.31% of any amounts the seller is required to remit to the commission:
(i) for a transaction described in Subsection 
59-12-103
(1) that is subject to a state tax
and a local tax imposed in accordance with the following, for the month for which the seller is
filing a return in accordance with Subsection (1):
(A) Subsection 
59-12-103
(2)(a);
(B) Subsection 
59-12-103
(2)(b); [
and
]
(C) Subsection 
59-12-103
(2)(d); and
(D) Subsection 
59-12-103
(2)(e); and
(ii) for an agreement sales and use tax.
(c) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
retain each month the amount calculated under Subsection (2)(c)(ii) for a transaction described
in Subsection 
59-12-103
(1) that is subject to the state tax and the local tax imposed in
accordance with Subsection 
59-12-103
(2)(c).
(ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount
equal to the sum of:
(A) 1.31% of any amounts the seller is required to remit to the commission for:
(I) the state tax and the local tax imposed in accordance with Subsection
59-12-103
(2)(c);
(II) the month for which the seller is filing a return in accordance with Subsection (1);
and
(III) an agreement sales and use tax; and
(B) 1.31% of the difference between:
(I) the amounts the seller would have been required to remit to the commission:
(Aa) in accordance with Subsection 
59-12-103
(2)(a) if the transaction had been subject
to the state tax and the local tax imposed in accordance with Subsection 
59-12-103
(2)(a);
(Bb) for the month for which the seller is filing a return in accordance with Subsection
(1); and
(Cc) for an agreement sales and use tax; and
(II) the amounts the seller is required to remit to the commission for:
(Aa) the state tax and the local tax imposed in accordance with Subsection
59-12-103
(2)(c);
(Bb) the month for which the seller is filing a return in accordance with Subsection (1);
and
(Cc) an agreement sales and use tax.
(d) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
each month 1% of any amounts the seller is required to remit to the commission:
(i) for the month for which the seller is filing a return in accordance with Subsection
(1); and
(ii) under:
(A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(B) Subsection 
59-12-603
(1)(a)(i)(A); or
(C) Subsection 
59-12-603
(1)(a)(i)(B).
(3) A state government entity that is required to remit taxes monthly in accordance
with Subsection (1) may not retain any amount under Subsection (2).
(4) A seller that has a tax liability under this chapter for the previous calendar year of
less than $50,000 may:
(a) voluntarily meet the requirements of Subsection (1); and
(b) if the seller voluntarily meets the requirements of Subsection (1), retain the
amounts allowed by Subsection (2).
(5) Penalties for late payment shall be as provided in Section 
59-1-401
.
(6) (a) Except as provided in Subsection (6)(c), for any amounts required to be remitted
to the commission under this part, the commission shall each month calculate an amount equal
to the difference between:
(i) the total amount retained for that month by all sellers had the percentages listed
under Subsections (2)(b) and (2)(c)(ii) been 1.5%; and
(ii) the total amount retained for that month by all sellers at the percentages listed
under Subsections (2)(b) and (2)(c)(ii).
(b) The commission shall each month allocate the amount calculated under Subsection
(6)(a) to each county, city, and town on the basis of the proportion of agreement sales and use
tax that the commission distributes to each county, city, and town for that month compared to
the total agreement sales and use tax that the commission distributes for that month to all
counties, cities, and towns.
(c) The amount the commission calculates under Subsection (6)(a) may not include an
amount collected from a tax that:
(i) the state imposes within a county, city, or town, including the unincorporated area
of a county; and
(ii) is not imposed within the entire state.
Section 10. Section 
72-2-131
 is enacted to read:
 72-2-131.
Railroad Crossing Restricted Account.
(1) There is created in the General Fund the Railroad Crossing Restricted Account.
(2) The account shall be funded by:
(a) appropriations to the account by the Legislature;
(b) private contributions;
(c) donations or grants from public or private entities; and
(d) interest earned on money in the account.
(3) The Legislature shall appropriate funds in the account to the department.
(4) Upon appropriation, the department shall use the money in the account for
construction, reconstruction, or renovation projects related to railroad crossings on class B or
class C roads.
Section 11. 
Appropriation.
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 previously appropriated for
fiscal year 2021. The Legislature authorizes the State Division of Finance to transfer the
following amounts between the following funds or accounts as indicated. Expenditures and
outlays from the funds or accounts to which the money is transferred must by authorized by an
appropriation.
ITEM 1
To General Fund Restricted - Railroad Crossing Restricted Account
From General Fund
$3,700,000
Schedule of Programs:
Railroad Crossing Restricted Account $3,700,000
Section 12. 
Effective date.
This bill takes effect on July 1, 2020.