Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 233 (2021GS)

Sponsor

Sen. Stevenson, J.

Final action

Governor Signed 3/22/2021

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• modifies the authority of the State Tax Commission to administer, operate, and enforce sales tax code provisions to include representing the interest of the Military Installation Development Authority in administrative proceedings;
• includes the Military Installation Development Authority with counties, cities, and towns in provisions relating to the administration of local sales taxes and to sales tax information provided by the State Tax Commission;
• requires the State Tax Commission to provide certain tax revenue information to the authority;
• modifies a definition relating to public infrastructure and improvements in the context of code provisions relating to the Military Installation Development Authority;
• modifies the powers of the Military Installation Development Authority, including relating to facilitating public-private partnerships;
• makes an exception to a conflict-of-interest provision applicable to a contract involving the authority or a subsidiary as a facilitator of public-private partnerships;
• provides exceptions to open meetings provisions and government records provisions;
• authorizes a subsidiary of the Military Installation Development Authority that is created as a public infrastructure district to levy a property tax for the operations and maintenance of the public infrastructure district's financed infrastructure and related improvements;
• modifies a provision relating to the MIDA accommodations tax;
• enacts a provision for a former rail line to become part of a project area under specified circumstances;
• modifies a provision relating to the board's delegation of powers to authority staff;
• modifies a provision relating to the notice of the board's adoption of a project area plan;
• modifies a provision requiring the authority to make an adopted project area plan available to the public;

Every vote on this bill

Bill text

MILITARY INSTALLATION DEVELOPMENT AUTHORITY
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jerry W. Stevenson
House Sponsor: 
Val L. Peterson
LONG TITLE
General Description:
This bill modifies provisions relating to the Military Installation Development
Authority.
Highlighted Provisions:
This bill:
▸ modifies the authority of the State Tax Commission to administer, operate, and
enforce sales tax code provisions to include representing the interest of the Military
Installation Development Authority in administrative proceedings;
▸ includes the Military Installation Development Authority with counties, cities, and
towns in provisions relating to the administration of local sales taxes and to sales
tax information provided by the State Tax Commission;
▸ requires the State Tax Commission to provide certain tax revenue information to the
authority;
▸ modifies a definition relating to public infrastructure and improvements in the
context of code provisions relating to the Military Installation Development
Authority;
▸ modifies the powers of the Military Installation Development Authority, including
relating to facilitating public-private partnerships;
▸ makes an exception to a conflict-of-interest provision applicable to a contract
involving the authority or a subsidiary as a facilitator of public-private partnerships;
▸ provides exceptions to open meetings provisions and government records
provisions;
▸ authorizes a subsidiary of the Military Installation Development Authority that is
created as a public infrastructure district to levy a property tax for the operations
and maintenance of the public infrastructure district's financed infrastructure and
related improvements;
▸ modifies a provision relating to the MIDA accommodations tax;
▸ enacts a provision for a former rail line to become part of a project area under
specified circumstances;
▸ modifies a provision relating to the board's delegation of powers to authority staff;
▸ modifies a provision relating to the notice of the board's adoption of a project area
plan;
▸ modifies a provision requiring the authority to make an adopted project area plan
available to the public;
▸ modifies a provision relating to the authority's annual report; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
10-1-304
, as last amended by Laws of Utah 2012, Chapter 410
10-1-403
, as last amended by Laws of Utah 2009, Chapter 92
17B-2a-1206
, as last amended by Laws of Utah 2020, Chapter 282
59-12-102
, as last amended by Laws of Utah 2020, Chapters 354, 365, and 438
59-12-118
, as last amended by Laws of Utah 2020, Chapter 315
59-12-209
, as last amended by Laws of Utah 2009, Chapters 212 and 240
59-12-210
, as last amended by Laws of Utah 2009, Chapter 240
59-12-401
, as last amended by Laws of Utah 2017, Chapter 422
63H-1-102
, as last amended by Laws of Utah 2020, Chapter 282
63H-1-201
, as last amended by Laws of Utah 2020, Chapters 282 and 354
63H-1-202
, as last amended by Laws of Utah 2020, Chapter 282
63H-1-205
, as last amended by Laws of Utah 2019, Chapter 136
63H-1-301
, as last amended by Laws of Utah 2009, Chapter 92
63H-1-403
, as last amended by Laws of Utah 2020, Chapter 282
63H-1-502
, as last amended by Laws of Utah 2020, Chapter 282
63H-1-703
, as last amended by Laws of Utah 2015, Chapter 377
63N-13-303
, as enacted by Laws of Utah 2020, Chapter 446
ENACTS:
63H-1-208
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
10-1-304
 is amended to read:
10-1-304.
Municipality and military installation development authority may levy
tax -- Rate -- Imposition or repeal of tax -- Tax rate change -- Effective date -- Notice
requirements -- Exemptions.
(1) (a) Except as provided in Subsections (4) and (5), a municipality may levy a
municipal energy sales and use tax on the sale or use of taxable energy within the municipality:
(i) by ordinance as provided in Section 
10-1-305
; and
(ii) of up to 6% of the delivered value of the taxable energy.
(b) Subject to Section 
63H-1-203
, the military installation development authority
created in Section 
63H-1-201
 may levy a municipal energy sales and use tax under this part
within a project area described in a project area plan adopted by the authority under Title 63H,
Chapter 1, Military Installation Development Authority Act, as though the authority were a
municipality.
(2) A municipal energy sales and use tax imposed under this part may be in addition to
any sales and use tax imposed by the municipality under Title 59, Chapter 12, Sales and Use
Tax Act.
(3) (a) For purposes of this Subsection (3):
(i) "Annexation" means an annexation to a municipality under Chapter 2, Part 4,
Annexation.
(ii) "Annexing area" means an area that is annexed into a municipality.
(b) (i) If, on or after May 1, 2000, a city or town enacts or repeals a tax or changes the
rate of a tax under this part, the enactment, repeal, or change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (3)(b)(ii) from the municipality.
(ii) The notice described in Subsection (3)(b)(i)(B) shall state:
(A) that the city or town will enact or repeal a tax or change the rate of a tax under this
part;
(B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
(D) if the city or town enacts the tax or changes the rate of the tax described in
Subsection (3)(b)(ii)(A), the new rate of the tax.
(c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will
result in a change in the rate of a tax under this part for an annexing area, the change shall take
effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (3)(c)(ii) from the municipality that annexes the annexing area.
(ii) The notice described in Subsection (3)(c)(i)(B) shall state:
(A) that the annexation described in Subsection (3)(c)(i) will result in a change in the
rate of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (3)(c)(ii)(A);
(C) the effective date of the tax described in Subsection (3)(c)(ii)(A); and
(D) the new rate of the tax described in Subsection (3)(c)(ii)(A).
(4) (a) Subject to Subsection (4)(b), a sale or use of electricity within a municipality is
exempt from the tax authorized by this section if the sale or use is made under a tariff adopted
by the Public Service Commission of Utah only for purchase of electricity produced from a
new source of alternative energy, as defined in Section 
59-12-102
, as designated in the tariff by
the Public Service Commission of Utah.
(b) The exemption under Subsection (4)(a) applies to the portion of the tariff rate a
customer pays under the tariff described in Subsection (4)(a) that exceeds the tariff rate under
the tariff described in Subsection (4)(a) that the customer would have paid absent the tariff.
(5) (a) A municipality may not levy a municipal energy sales and use tax within any
portion of the municipality that is within a project area described in a project area plan adopted
by the military installation development authority under Title 63H, Chapter 1, Military
Installation Development Authority Act.
(b) Subsection (5)(a) does not apply to the military installation development authority's
levy of a municipal energy sales and use tax.
(6) (a) The State Tax Commission shall provide to the military installation
development authority the collection data necessary to verify that revenue collected by the State
Tax Commission is distributed to the military installation development authority in accordance
with this part.
(b) The data described in Subsection (6)(a) shall include the State Tax Commission's
breakdown of military installation development authority revenue, including reports of
collections and distributions.
Section 2. Section 
10-1-403
 is amended to read:
10-1-403.
Municipality and military installation development authority may levy
municipal telecommunications license tax -- Recovery from customers -- Enactment,
repeal, or change in rate of tax -- Annexation.
(1) (a) (i) Subject to the provisions of this section, beginning July 1, 2004, a
municipality may levy on and provide that there is collected from a telecommunications
provider a municipal telecommunications license tax on the telecommunications provider's
gross receipts from telecommunications service that are attributed to the municipality in
accordance with Section 
10-1-407
.
(ii) Subject to Section 
63H-1-203
, the military installation development authority
created in Section 
63H-1-201
 may levy and collect a municipal telecommunications license tax
under this part for telecommunications service provided within a project area described in a
project area plan adopted by the authority under Title 63H, Chapter 1, Military Installation
Development Authority Act, as though the authority were a municipality.
(b) To levy and provide for the collection of a municipal telecommunications license
tax under this part, the municipality shall adopt an ordinance that complies with the
requirements of Section 
10-1-404
.
(c) Beginning on July 1, 2007, a municipal telecommunications license tax imposed
under this part shall be at a rate of up to 3.5% of the telecommunications provider's gross
receipts from telecommunications service that are attributed to the municipality in accordance
with Section 
10-1-407
.
(2) A telecommunications provider may recover the amounts paid in municipal
telecommunications license taxes from the customers of the telecommunications provider
within the municipality imposing the municipal telecommunications license tax through a
charge that is separately identified in the statement of the transaction with the customer as the
recovery of a tax.
(3) (a) For purposes of this Subsection (3):
(i) "Annexation" means an annexation to a municipality under Title 10, Chapter 2, Part
4, Annexation.
(ii) "Annexing area" means an area that is annexed into a municipality.
(b) (i) If, on or after July 1, 2004, a municipality enacts or repeals a tax or changes the
rate of the tax under this part, the enactment, repeal, or change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (3)(b)(ii) from the municipality.
(ii) The notice described in Subsection (3)(b)(i)(B) shall state:
(A) that the municipality will enact or repeal a tax under this part or change the rate of
the tax;
(B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
(D) if the municipality enacts the municipal telecommunications license tax or changes
the rate of the tax, the new rate of the tax.
(c) (i) If, for an annexation that occurs on or after July 1, 2004, the annexation will
result in a change in the rate of the tax under this part for an annexing area, the change shall
take effect:
(A) on the first day of a calendar quarter; and
(B) after a 90-day period beginning on the date the commission receives notice meeting
the requirements of Subsection (3)(c)(ii) from the municipality that annexes the annexing area.
(ii) The notice described in Subsection (3)(c)(i)(B) shall state:
(A) that the annexation described in Subsection (3)(c)(i) will result in a change in the
rate of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (3)(c)(ii)(A);
(C) the effective date of the tax described in Subsection (3)(c)(ii)(A); and
(D) the new rate of the tax described in Subsection (3)(c)(ii)(A).
(4) Notwithstanding Subsection (3)(b), for purposes of a change in a municipal
telecommunications license tax rate that takes effect on July 1, 2007, a municipality is not
subject to the notice requirements of Subsection (3)(b) if:
(a) on June 30, 2007, the municipality has in effect an ordinance that levies a municipal
telecommunications license tax at a rate that exceeds 3.5%; and
(b) on July 1, 2007, the municipality has in effect an ordinance that levies a municipal
telecommunications license tax at a rate of 3.5%.
(5) Notwithstanding Subsection (3)(b), for purposes of a change in a municipal
telecommunications license tax rate that takes effect on July 1, 2007, the 90-day period
described in Subsection (3)(b)(i)(B) is considered to be a 30-day period if:
(a) on June 30, 2007, the municipality has in effect an ordinance that levies a municipal
telecommunications license tax at a rate that exceeds 3.5%; and
(b) on July 1, 2007, the municipality has in effect an ordinance that levies a municipal
telecommunications license tax at a rate that is less than 3.5%.
(6) (a) A municipality may not levy or collect a municipal telecommunications license
tax for telecommunications service provided within any portion of the municipality that is
within a project area described in a project area plan adopted by the military installation
development authority under Title 63H, Chapter 1, Military Installation Development
Authority Act.
(b) Subsection (6)(a) does not apply to the military installation development authority's
levy of a municipal telecommunications license tax.
(7) (a) The State Tax Commission shall provide to the military installation
development authority the collection data necessary to verify that revenue collected by the State
Tax Commission is distributed to the military installation development authority in accordance
with this part.
(b) The data described in Subsection (7)(a) shall include the State Tax Commission's
breakdown of military installation development authority revenue, including reports of
collections and distributions.
Section 3. Section 
17B-2a-1206
 is amended to read:
17B-2a-1206.
Additional public infrastructure district powers.
In addition to the powers conferred on a public infrastructure district under Section
17B-1-103
, a public infrastructure district may:
(1) issue negotiable bonds to pay:
(a) all or part of the costs of acquiring, acquiring an interest in, improving, or extending
any of the improvements, facilities, or property allowed under Section 
11-14-103
;
(b) capital costs of improvements in an energy assessment area, as defined in Section
11-42a-102
, and other related costs, against the funds that the public infrastructure district will
receive because of an assessment in an energy assessment area, as defined in Section
11-42a-102
;
(c) public improvements related to the provision of housing;
(d) capital costs related to public transportation; and
(e) for a public infrastructure district created by the development authority, the cost of
acquiring or financing [
publicly owned
] 
public
 infrastructure and improvements
, as defined in
Section 
63H-1-102
;
(2) enter into an interlocal agreement in accordance with Title 11, Chapter 13,
Interlocal Cooperation Act, provided that the interlocal agreement may not expand the powers
of the public infrastructure district, within the limitations of Title 11, Chapter 13, Interlocal
Cooperation Act, without the consent of the creating entity;
(3) acquire completed or partially completed improvements for fair market value as
reasonably determined by:
(a) the board;
(b) the creating entity, if required in the governing document; or
(c) a surveyor or engineer that a public infrastructure district employs or engages to
perform the necessary engineering services for and to supervise the construction or installation
of the improvements;
(4) contract with the creating entity for the creating entity to provide administrative
services on behalf of the public infrastructure district, when agreed to by both parties, in order
to achieve cost savings and economic efficiencies, at the discretion of the creating entity; and
(5) for a public infrastructure district created by a development authority:
(a) (i) operate and maintain publicly owned infrastructure and improvements the
district acquires or finances; and
(ii) use fees, assessments, or taxes to pay for the operation and maintenance of those
publicly owned infrastructure and improvements; and
(b) issue bonds under Title 11, Chapter 42, Assessment Area Act.
Section 4. Section 
59-12-102
 is amended to read:
59-12-102.
Definitions.
As used in this chapter:
(1) "800 service" means a telecommunications service that:
(a) allows a caller to dial a toll-free number without incurring a charge for the call; and
(b) is typically marketed:
(i) under the name 800 toll-free calling;
(ii) under the name 855 toll-free calling;
(iii) under the name 866 toll-free calling;
(iv) under the name 877 toll-free calling;
(v) under the name 888 toll-free calling; or
(vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
Federal Communications Commission.
(2) (a) "900 service" means an inbound toll telecommunications service that:
(i) a subscriber purchases;
(ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
the subscriber's:
(A) prerecorded announcement; or
(B) live service; and
(iii) is typically marketed:
(A) under the name 900 service; or
(B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
Communications Commission.
(b) "900 service" does not include a charge for:
(i) a collection service a seller of a telecommunications service provides to a
subscriber; or
(ii) the following a subscriber sells to the subscriber's customer:
(A) a product; or
(B) a service.
(3) (a) "Admission or user fees" includes season passes.
(b) "Admission or user fees" does not include:
(i) annual membership dues to private organizations; or
(ii) a lesson, including a lesson that involves as part of the lesson equipment or a
facility listed in Subsection 
59-12-103
(1)(f).
(4) "Affiliate" or "affiliated person" means a person that, with respect to another
person:
(a) has an ownership interest of more than 5%, whether direct or indirect, in that other
person; or
(b) is related to the other person because a third person, or a group of third persons who
are affiliated persons with respect to each other, holds an ownership interest of more than 5%,
whether direct or indirect, in the related persons.
(5) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
Agreement after November 12, 2002.
(6) "Agreement combined tax rate" means the sum of the tax rates:
(a) listed under Subsection (7); and
(b) that are imposed within a local taxing jurisdiction.
(7) "Agreement sales and use tax" means a tax imposed under:
(a) Subsection 
59-12-103
(2)(a)(i)(A);
(b) Subsection 
59-12-103
(2)(b)(i);
(c) Subsection 
59-12-103
(2)(c)(i);
(d) Subsection 
59-12-103
(2)(d)(i)(A)(I);
(e) Section 
59-12-204
;
(f) Section 
59-12-401
;
(g) Section 
59-12-402
;
(h) Section 
59-12-402.1
;
(i) Section 
59-12-703
;
(j) Section 
59-12-802
;
(k) Section 
59-12-804
;
(l) Section 
59-12-1102
;
(m) Section 
59-12-1302
;
(n) Section 
59-12-1402
;
(o) Section 
59-12-1802
;
(p) Section 
59-12-2003
;
(q) Section 
59-12-2103
;
(r) Section 
59-12-2213
;
(s) Section 
59-12-2214
;
(t) Section 
59-12-2215
;
(u) Section 
59-12-2216
;
(v) Section 
59-12-2217
;
(w) Section 
59-12-2218
;
(x) Section 
59-12-2219
; or
(y) Section 
59-12-2220
.
(8) "Aircraft" means the same as that term is defined in Section 
72-10-102
.
(9) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
(a) except for:
(i) an airline as defined in Section 
59-2-102
; or
(ii) an affiliated group, as defined in Section 
59-7-101
, except that "affiliated group"
includes a corporation that is qualified to do business but is not otherwise doing business in the
state, of an airline; and
(b) that has the workers, expertise, and facilities to perform the following, regardless of
whether the business entity performs the following in this state:
(i) check, diagnose, overhaul, and repair:
(A) an onboard system of a fixed wing turbine powered aircraft; and
(B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
(ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
engine;
(iii) perform at least the following maintenance on a fixed wing turbine powered
aircraft:
(A) an inspection;
(B) a repair, including a structural repair or modification;
(C) changing landing gear; and
(D) addressing issues related to an aging fixed wing turbine powered aircraft;
(iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
completely apply new paint to the fixed wing turbine powered aircraft; and
(v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
results in a change in the fixed wing turbine powered aircraft's certification requirements by the
authority that certifies the fixed wing turbine powered aircraft.
(10) "Alcoholic beverage" means a beverage that:
(a) is suitable for human consumption; and
(b) contains .5% or more alcohol by volume.
(11) "Alternative energy" means:
(a) biomass energy;
(b) geothermal energy;
(c) hydroelectric energy;
(d) solar energy;
(e) wind energy; or
(f) energy that is derived from:
(i) coal-to-liquids;
(ii) nuclear fuel;
(iii) oil-impregnated diatomaceous earth;
(iv) oil sands;
(v) oil shale;
(vi) petroleum coke; or
(vii) waste heat from:
(A) an industrial facility; or
(B) a power station in which an electric generator is driven through a process in which
water is heated, turns into steam, and spins a steam turbine.
(12) (a) Subject to Subsection (12)(b), "alternative energy electricity production
facility" means a facility that:
(i) uses alternative energy to produce electricity; and
(ii) has a production capacity of two megawatts or greater.
(b) A facility is an alternative energy electricity production facility regardless of
whether the facility is:
(i) connected to an electric grid; or
(ii) located on the premises of an electricity consumer.
(13) (a) "Ancillary service" means a service associated with, or incidental to, the
provision of telecommunications service.
(b) "Ancillary service" includes:
(i) a conference bridging service;
(ii) a detailed communications billing service;
(iii) directory assistance;
(iv) a vertical service; or
(v) a voice mail service.
(14) "Area agency on aging" means the same as that term is defined in Section
62A-3-101
.
(15) "Assisted amusement device" means an amusement device, skill device, or ride
device that is started and stopped by an individual:
(a) who is not the purchaser or renter of the right to use or operate the amusement
device, skill device, or ride device; and
(b) at the direction of the seller of the right to use the amusement device, skill device,
or ride device.
(16) "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 (112).
(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) "Designated political subdivision" means:
(a) a county, city, or town; or
(b) the military installation development authority created in Section 
63H-1-201
.
[
(34)
] 
(35)
 "Detailed telecommunications billing service" means an ancillary service of
separately stating information pertaining to individual calls on a customer's billing statement.
[
(35)
] 
(36)
 "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)
] 
(36)
(b)(i) through (v);
(c) (i) except as provided in Subsection [
(35)
] 
(36)
(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)
]
(36)
(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)
] 
(37)
 (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)
] 
(38)
 "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)
] 
(39)
 "Digital book" means a work that is generally recognized in the ordinary
and usual sense as a book.
[
(39)
] 
(40)
 (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)
] 
(41)
 "Directory assistance" means an ancillary service of providing:
(a) address information; or
(b) telephone number information.
[
(41)
] 
(42)
 (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)
] 
(42)
(a)(ii)(B); or
(D) a person similar to a person described in Subsections [
(41)
] 
(42)
(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)
] 
(43)
 "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)
] 
(44)
 (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)
] 
(44)
(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)
] 
(45)
 (a) Except as provided in Subsection [
(44)
] 
(45)
(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)
] 
(45)
(a).
(c) "Durable medical equipment" does not include mobility enhancing equipment.
[
(45)
] 
(46)
 "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)
] 
(46)
(b)(i) through (vi).
[
(46)
] 
(47)
 "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)
] 
(48)
 "Employee" means the same as that term is defined in Section 
59-10-401
.
[
(48)
] 
(49)
 "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)
] 
(50)
 "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)
] 
(51)
 "Fixed wireless service" means a telecommunications service that provides
radio communication between fixed points.
[
(51)
] 
(52)
 (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 [
(96)
]
(97)
(b)(iii).
(c) "Food and food ingredients" does not include:
(i) an alcoholic beverage;
(ii) tobacco; or
(iii) prepared food.
[
(52)
] 
(53)
 (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)
] 
(53)
(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)
] 
(54)
 "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)
] 
(55)
 "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)
] 
(56)
 (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 Utah Board of Higher Education; or
(iv) an institution of higher education described in Section 
53B-1-102
.
[
(56)
] 
(57)
 "Hydroelectric energy" means water used as the sole source of energy to
produce electricity.
[
(57)
] 
(58)
 "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)
] 
(58)
(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)
] 
(59)
 (a) Except as provided in Subsection [
(58)
] 
(59)
(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)
] 
(60)
 "Institution of higher education" means an institution of higher education
listed in Section 
53B-2-101
.
[
(60)
] 
(61)
 (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)
] 
(61)
(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)
] 
(62)
 "Lesson" means a fixed period of time for the duration of which a trained
instructor:
(a) is present with a student in person or by video; and
(b) actively instructs the student, including by providing observation or feedback.
[
(62)
] 
(63)
 "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.
[
(63)
] 
(64)
 "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.
[
(64)
] 
(65)
 "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.
[
(65)
] 
(66)
 "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.
[
(66)
] 
(67)
 "Manufactured home" means the same as that term is defined in Section
15A-1-302
.
[
(67)
] 
(68)
 "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 [
(67)
] 
(68)
(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.
[
(68)
] 
(69)
 (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.
[
(69)
] 
(70)
 (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 [
(69)
] 
(70)
(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:
(i) a person that only provides payment processing services; or
(ii) a person described in Subsection [
(69)
] 
(70)
(a) to the extent the person is
facilitating a sale for a seller that is a restaurant as defined in Section 
59-12-602
.
[
(70)
] 
(71)
 "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.
[
(71)
] 
(72)
 "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 [
(71)
] 
(72)
(a) through
(g); or
(j) person similar to a person described in Subsections [
(71)
] 
(72)
(a) through (i) as
determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act.
[
(72)
] 
(73)
 "Mobile home" means the same as that term is defined in Section
15A-1-302
.
[
(73)
] 
(74)
 "Mobile telecommunications service" means the same as that term is
defined in the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
[
(74)
] 
(75)
 (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 [
(74)
] 
(75)
(a)(i) and the termination
point described in Subsection [
(74)
] 
(75)
(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."
[
(75)
] 
(76)
 (a) Except as provided in Subsection [
(75)
] 
(76)
(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 [
(75)
] 
(76)
(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.
[
(76)
] 
(77)
 "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.
[
(77)
] 
(78)
 "Model 2 seller" means a seller registered under the agreement that:
(a) except as provided in Subsection [
(77)
] 
(78)
(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.
[
(78)
] 
(79)
 (a) Subject to Subsection [
(78)
] 
(79)
(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 [
(78)
] 
(79)
(a), "model 3 seller" includes an affiliated
group of sellers using the same proprietary system.
[
(79)
] 
(80)
 "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.
[
(80)
] 
(81)
 "Modular home" means a modular unit as defined in Section 
15A-1-302
.
[
(81)
] 
(82)
 "Motor vehicle" means the same as that term is defined in Section
41-1a-102
.
[
(82)
] 
(83)
 "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.
[
(83)
] 
(84)
 "Oil shale" means a group of fine black to dark brown shales containing
kerogen material that yields petroleum upon heating and distillation.
[
(84)
] 
(85)
 "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.
[
(85)
] 
(86)
 (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.
[
(86)
] 
(87)
 (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 [
(86)
] 
(87)
(a), the transmission of a coded radio signal
includes a transmission by message or sound.
[
(87)
] 
(88)
 "Pawnbroker" means the same as that term is defined in Section
13-32a-102
.
[
(88)
] 
(89)
 "Pawn transaction" means the same as that term is defined in Section
13-32a-102
.
[
(89)
] 
(90)
 (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 [
(89)
] 
(90)
(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 [
(89)
] 
(90)
(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 [
(89)
] 
(90)
(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 [
(130)
] 
(131)
(c).
[
(90)
] 
(91)
 "Person" includes any individual, firm, partnership, joint venture,
association, corporation, estate, trust, business trust, receiver, syndicate, this state, any county,
city, municipality, district, or other local governmental entity of the state, or any group or
combination acting as a unit.
[
(91)
] 
(92)
 "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.
[
(92)
] 
(93)
 (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.
[
(93)
] 
(94)
 "Postproduction" means an activity related to the finishing or duplication of
a medium described in Subsection 
59-12-104
(54)(a).
[
(94)
] 
(95)
 "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.
[
(95)
] 
(96)
 "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.
[
(96)
] 
(97)
 (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 [
(96)
] 
(97)
(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 [
(96)
] 
(97)
(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 [
(96)
] 
(97)
(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.
[
(97)
] 
(98)
 "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.
[
(98)
] 
(99)
 (a) Except as provided in Subsection [
(98)
] 
(99)
(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 [
(98)
] 
(99)
(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 [
(98)
] 
(99)
(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 [
(98)
] 
(99)
(b)(iii) if the charges for the modification or enhancement
are:
(i) reasonable; and
(ii) subject to Subsections 
59-12-103
(2)(e)(ii) and (2)(f)(i), separately stated on the
invoice or other statement of price provided to the purchaser at the time of sale or later, as
demonstrated by:
(A) the books and records the seller keeps at the time of the transaction in the regular
course of business, including books and records the seller keeps at the time of the transaction in
the regular course of business for nontax purposes;
(B) a preponderance of the facts and circumstances at the time of the transaction; and
(C) the understanding of all of the parties to the transaction.
[
(99)
] 
(100)
 (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
.
[
(100)
] 
(101)
 (a) Except as provided in Subsection [
(100)
] 
(101)
(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.
[
(101)
] 
(102)
 (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.
[
(102)
] 
(103)
 (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.
[
(103)
] 
(104)
 (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."
[
(104)
] 
(105)
 (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 [
(104)
] 
(105)
(b)(iv)(A)(I) is directly
related to a price reduction or discount on the sale;
(B) the seller has an obligation to pass the price reduction or discount through to the
purchaser;
(C) the amount of the consideration attributable to the sale is fixed and determinable by
the seller at the time of the sale to the purchaser; and
(D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
seller to claim a price reduction or discount; and
(Bb) a person other than the seller authorizes, distributes, or grants the certificate,
coupon, or other documentation with the understanding that the person other than the seller
will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
(II) the purchaser identifies that purchaser to the seller as a member of a group or
organization allowed a price reduction or discount, except that a preferred customer card that is
available to any patron of a seller does not constitute membership in a group or organization
allowed a price reduction or discount; or
(III) the price reduction or discount is identified as a third party price reduction or
discount on the:
(Aa) invoice the purchaser receives; or
(Bb) certificate, coupon, or other documentation the purchaser presents.
(c) "Purchase price" and "sales price" do not include:
(i) a discount:
(A) in a form including:
(I) cash;
(II) term; or
(III) coupon;
(B) that is allowed by a seller;
(C) taken by a purchaser on a sale; and
(D) that is not reimbursed by a third party; or
(ii) subject to Subsections 
59-12-103
(2)(e)(ii) and (2)(f)(i), the following if separately
stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
sale or later, as demonstrated by the books and records the seller keeps at the time of the
transaction in the regular course of business, including books and records the seller keeps at the
time of the transaction in the regular course of business for nontax purposes, by a
preponderance of the facts and circumstances at the time of the transaction, and by the
understanding of all of the parties to the transaction:
(A) the following from credit extended on the sale of tangible personal property or
services:
(I) a carrying charge;
(II) a financing charge; or
(III) an interest charge;
(B) a delivery charge;
(C) an installation charge;
(D) a manufacturer rebate on a motor vehicle; or
(E) a tax or fee legally imposed directly on the consumer.
[
(105)
] 
(106)
 "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.
[
(106)
] 
(107)
 "Qualifying data center" means a data center facility that:
(a) houses a group of networked server computers in one physical location in order to
disseminate, manage, and store data and information;
(b) is located in the state;
(c) is a new operation constructed on or after July 1, 2016;
(d) consists of one or more buildings that total 150,000 or more square feet;
(e) is owned or leased by:
(i) the operator of the data center facility; or
(ii) a person under common ownership, as defined in Section 
59-7-101
, of the operator
of the data center facility; and
(f) is located on one or more parcels of land that are owned or leased by:
(i) the operator of the data center facility; or
(ii) a person under common ownership, as defined in Section 
59-7-101
, of the operator
of the data center facility.
[
(107)
] 
(108)
 "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.-
[
(108)
] 
(109)
 "Rental" means the same as that term is defined in Subsection [
(60)
] 
(61)
.
[
(109)
] 
(110)
 (a) Except as provided in Subsection [
(109)
] 
(110)
(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.
[
(110)
] 
(111)
 "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.
[
(111)
] 
(112)
 (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 [
(111)
] 
(112)
(a)(i), a residential address includes an:
(i) apartment; or
(ii) other individual dwelling unit.
[
(112)
] 
(113)
 "Residential use" means the use in or around a home, apartment building,
sleeping quarters, and similar facilities or accommodations.
[
(113)
] 
(114)
 "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose
other than:
(a) resale;
(b) sublease; or
(c) subrent.
[
(114)
] 
(115)
 (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.
[
(115)
] 
(116)
 (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.
[
(116)
] 
(117)
 "Sale at retail" means the same as that term is defined in Subsection
[
(113)
] 
(114)
.
[
(117)
] 
(118)
 "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.
[
(118)
] 
(119)
 "Sales price" means the same as that term is defined in Subsection
[
(104)
] 
(105)
.
[
(119)
] 
(120)
 (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 [
(119)
] 
(120)
(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."
[
(120)
] 
(121)
 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.
[
(121)
] 
(122)
 (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.
[
(122)
] 
(123)
 (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 [
(122)
] 
(123)
(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.
[
(123)
] 
(124)
 "Senior citizen center" means a facility having the primary purpose of
providing services to the aged as defined in Section 
62A-3-101
.
[
(124)
] 
(125)
 (a) Subject to Subsections [
(124)
] 
(125)
(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 [
(124)
] 
(125)
(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.
[
(125)
] 
(126)
 "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.
[
(126)
] 
(127)
 "Solar energy" means the sun used as the sole source of energy for
producing electricity.
[
(127)
] 
(128)
 (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.
[
(128)
] 
(129)
 "State" means the state of Utah, its departments, and agencies.
[
(129)
] 
(130)
 "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.
[
(130)
] 
(131)
 (a) Except as provided in Subsection [
(130)
] 
(131)
(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 [
(130)
] 
(131)
(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.
[
(131)
] 
(132)
 (a) "Telecommunications enabling or facilitating equipment, machinery,
or software" means an item listed in Subsection [
(131)
] 
(132)
(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 [
(131)
] 
(132)
(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 [
(131)
] 
(132)
(b)(i) through (vi) as determined by the commission by rule made in
accordance with Subsection [
(131)
] 
(132)
(c).
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes equipment, machinery, or software that
functions similarly to an item listed in Subsections [
(131)
] 
(132)
(b)(i) through (vi).
[
(132)
] 
(133)
 "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.
[
(133)
] 
(134)
 "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.
[
(134)
] 
(135)
 (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.
[
(135)
] 
(136)
 (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 [
(135)
] 
(136)
(a)(i) for the shared use
with or resale to any person of the telecommunications service.
(b) A person described in Subsection [
(135)
] 
(136)
(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.
[
(136)
] 
(137)
 (a) "Telecommunications switching or routing equipment, machinery, or
software" means an item listed in Subsection [
(136)
] 
(137)
(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 [
(136)
] 
(137)
(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 [
(136)
] 
(137)
(b)(i) through (ix) as determined by the commission by rule made in
accordance with Subsection [
(136)
] 
(137)
(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)
] 
(137)
(b)(i) through (ix).
[
(137)
] 
(138)
 (a) "Telecommunications transmission equipment, machinery, or
software" means an item listed in Subsection [
(137)
] 
(138)
(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 [
(137)
] 
(138)
(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 [
(137)
] 
(138)
(b)(i) through (xxv) as determined by the commission by rule made in
accordance with Subsection [
(137)
] 
(138)
(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 [
(137)
] 
(138)
(b)(i) through (xxv).
[
(138)
] 
(139)
 (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.
[
(139)
] 
(140)
 "Tobacco" means:
(a) a cigarette;
(b) a cigar;
(c) chewing tobacco;
(d) pipe tobacco; or
(e) any other item that contains tobacco.
[
(140)
] 
(141)
 "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.
[
(141)
] 
(142)
 (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.
[
(142)
] 
(143)
 "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.
[
(143)
] 
(144)
 (a) Subject to Subsection [
(143)
] 
(144)
(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 [
(143)
] 
(144)
(a); or
(ii) (A) a locomotive;
(B) a freight car;
(C) railroad work equipment; or
(D) other railroad rolling stock.
[
(144)
] 
(145)
 "Vehicle dealer" means a person engaged in the business of buying,
selling, or exchanging a vehicle as defined in Subsection [
(143)
] 
(144)
.
[
(145)
] 
(146)
 (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.
[
(146)
] 
(147)
 (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.
[
(147)
] 
(148)
 (a) Except as provided in Subsection [
(147)
] 
(148)
(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.
[
(148)
] 
(149)
 "Watercraft" means a vessel as defined in Section 
73-18-2
.
[
(149)
] 
(150)
 "Wind energy" means wind used as the sole source of energy to produce
electricity.
[
(150)
] 
(151)
 "ZIP Code" means a Zoning Improvement Plan Code assigned to a
geographic location by the United States Postal Service.
Section 5. Section 
59-12-118
 is amended to read:
59-12-118.
Commission's authority to administer sales and use tax.
Except as provided in Sections 
59-12-209
 and 
59-12-302
, the commission shall have
exclusive authority to administer, operate, and enforce the provisions of this chapter including:
(1) determining, assessing, and collecting any sales and use tax imposed pursuant to
this chapter;
(2) representing each [
county, city, and town's
] 
designated political subdivision's
interest in any administrative proceeding involving the state or local option sales and use tax;
(3) adjudicating any administrative proceedings involving the state or local option sales
and use tax;
(4) waiving, reducing, or compromising any penalty and interest imposed in connection
with any determination of state or local option sales or use tax; and
(5) prescribing forms and rules to conform with this chapter for the making of returns
and for the ascertainment, assessment, and collection of the taxes imposed under this chapter.
Section 6. Section 
59-12-209
 is amended to read:
59-12-209.
Participation of designated political subdivisions in administration
and enforcement of certain local sales and use taxes -- Petition for reconsideration
relating to the redistribution of certain sales and use tax revenues.
(1) Notwithstanding Title 63G, Chapter 4, Administrative Procedures Act, a [
county,
city, or town
] 
designated political subdivision
 does not have the right to any of the following,
except as specifically allowed by Subsection (2) and Section 
59-12-210
:
(a) to inspect, review, or have access to any taxpayer sales and use tax records; or
(b) to be informed of, participate in, intervene in, or appeal from any adjudicative
proceeding commenced pursuant to Section 
63G-4-201
 to determine the liability of any
taxpayer for sales and use taxes imposed pursuant to this chapter.
(2) (a) [
Counties, cities, and towns
] 
A designated political subdivision
 shall have
access to records and information on file with the commission, and shall have the right to
notice of, and rights to intervene in or to appeal from, a proposed final agency action of the
commission as provided in this Subsection (2).
(b) If the commission, following a formal adjudicative proceeding commenced
pursuant to Title 63G, Chapter 4, Administrative Procedures Act, proposes to take final agency
action that would reduce the amount of sales and use tax liability alleged in the notice of
deficiency, the commission shall provide notice of a proposed agency action to each qualified
[
county, city, and town
] 
political subdivision
.
(c) For purposes of this Subsection (2), a [
county, city, or town
] 
designated political
subdivision
 is a qualified [
county, city, or town
] 
political subdivision
 if a proposed final agency
action reduces a tax under this chapter distributable to that [
county, city, or town
] 
designated
political subdivision
 by more than $10,000 below the amount of the tax that would have been
distributable to that [
county, city, or town
] 
designated political subdivision
 had a notice of
deficiency, as described in Section 
59-1-1405
, not been reduced.
(d) A qualified [
county, city, or town
] 
political subdivision
 may designate a
representative who shall have the right to review the record of the formal hearing and any other
commission records relating to a proposed final agency action subject to the confidentiality
provisions of Section 
59-1-403
.
(e) No later than 10 days after receiving the notice of the commission's proposed final
agency action, a qualified [
county, city, or town
] 
political subdivision
 may file a notice of
intervention with the commission.
(f) No later than 20 days after filing a notice of intervention, if a qualified [
county, city,
or town
] 
political subdivision
 objects to the proposed final agency action, that qualified
[
county, city, or town
] 
political subdivision
 may file a petition for reconsideration with the
commission and shall serve copies of the petition on the taxpayer and the appropriate division
in the commission.
(g) The taxpayer and appropriate division in the commission may each file a response
to the petition for reconsideration within 20 days of receipt of the petition for reconsideration.
(h) (i) After consideration of the petition for reconsideration and any response, and any
additional proceeding the commission considers appropriate, the commission may affirm,
modify, or amend its proposed final agency action.
(ii) A taxpayer and any qualified [
county, city, or town
] 
political subdivision
 that has
filed a petition for reconsideration may appeal the final agency action.
(i) (i) Notwithstanding Subsections (2)(a) through (h) and subject to Subsection
(2)(i)(ii), the following may file a petition for reconsideration with the commission:
(A) an original recipient political subdivision as defined in Section 
59-12-210.1
 that
receives a notice from the commission in accordance with Subsection 
59-12-210.1
(2); or
(B) a secondary recipient political subdivision as defined in Section 
59-12-210.1
 that
receives a notice from the commission in accordance with Subsection 
59-12-210.1
(2).
(ii) An original recipient political subdivision or secondary recipient political
subdivision that files a petition for reconsideration with the commission under Subsection
(2)(i)(i) shall file the petition no later than 20 days after the later of:
(A) the date the original recipient political subdivision or secondary recipient political
subdivision receives the notice described in Subsection (2)(i)(i) from the commission; or
(B) the date the commission makes the redistribution as defined in Section 
59-12-210.1
that is the subject of the notice described in Subsection (2)(i)(i).
Section 7. Section 
59-12-210
 is amended to read:
59-12-210.
Commission to provide data to designated political subdivisions.
(1) (a) The commission shall provide to each county the sales and use tax collection
data necessary to verify that sales and use tax revenues collected by the commission are
distributed to each [
county, city, and town
] 
designated political subdivision
 in accordance with
Sections 
59-12-211
 through 
59-12-215
.
(b) The data described in Subsection (1)(a) shall include the commission's reports of
seller sales, sales and use tax distribution reports, and a breakdown of local revenues.
(2) (a) In addition to the access to information provided in Subsection (1) and Section
59-12-109
, the commission shall provide a [
county, city, or town
] 
designated political
subdivision
 with copies of returns and other information required by this chapter relating to a
tax under this chapter.
(b) The information described in Subsection (2)(a) is available only in official matters
and must be requested in writing by the chief executive officer or the chief executive officer's
designee.
(c) The request described in Subsection (2)(b) shall specifically indicate the
information being sought and how the information will be used.
(d) Information received pursuant to the request described in Subsection (2)(b) shall
be:
(i) classified as private or protected under Section 
63G-2-302
 or 
63G-2-305
; and
(ii) subject to the confidentiality provisions of Section 
59-1-403
.
Section 8. Section 
59-12-401
 is amended to read:
59-12-401.
Resort communities tax authority for cities, towns, and military
installation development authority -- Base -- Rate -- Collection fees.
(1) (a) In addition to other sales and use taxes, a city or town in which the transient
room capacity as defined in Section 
59-12-405
 is greater than or equal to 66% of the
municipality's permanent census population may impose a sales and use tax of up to 1.1% on
the transactions described in Subsection 
59-12-103
(1) located within the city or town.
(b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
section on:
(i) the sale of:
(A) a motor vehicle;
(B) an aircraft;
(C) a watercraft;
(D) a modular home;
(E) a manufactured home; or
(F) a mobile home;
(ii) the sales and uses described in Section 
59-12-104
 to the extent the sales and uses
are exempt from taxation under Section 
59-12-104
; and
(iii) except as provided in Subsection (1)(d), amounts paid or charged for food and
food ingredients.
(c) For purposes of this Subsection (1), the location of a transaction shall be
determined in accordance with Sections 
59-12-211
 through 
59-12-215
.
(d) A city or town imposing a tax under this section shall impose the tax on the
purchase price or the sales price for amounts paid or charged for food and food ingredients if
the food and food ingredients are sold as part of a bundled transaction attributable to food and
food ingredients and tangible personal property other than food and food ingredients.
(2) (a) An amount equal to the total of any costs incurred by the state in connection
with the implementation of Subsection (1) which exceed, in any year, the revenues received by
the state from its collection fees received in connection with the implementation of Subsection
(1) shall be paid over to the state General Fund by the cities and towns which impose the tax
provided for in Subsection (1).
(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among
those cities and towns according to the amount of revenue the respective cities and towns
generate in that year through imposition of that tax.
(3) (a) Subject to Section 
63H-1-203
, the military installation development authority
created in Section 
63H-1-201
 may impose a tax under this section on the transactions described
in Subsection 
59-12-103
(1) located within a project area described in a project area plan
adopted by the authority under Title 63H, Chapter 1, Military Installation Development
Authority Act, as though the authority were a city or a town.
(b) For purposes of calculating the permanent census population within a project area,
the board
,
 as defined in Section 
63H-1-102
,
 shall:
(i) use the actual number of permanent residents within the project area as determined
by the board;
(ii) include in the calculation of transient room capacity the number, as determined by
the board, of approved high-occupancy lodging units, recreational lodging units, special
lodging units, and standard lodging units, even if the units are not constructed;
[
(ii)
] 
(iii)
 adopt a resolution verifying the population number; and
[
(iii)
] 
(iv)
 provide the commission any information required in Section 
59-12-405
.
(c) Notwithstanding Subsection (1)(a), a board as defined in Section 
63H-1-102
 may
impose the sales and use tax under this section if there are no permanent residents.
Section 9. Section 
63H-1-102
 is amended to read:
63H-1-102.
Definitions.
As used in this chapter:
(1) "Authority" means the Military Installation Development Authority, created under
Section 
63H-1-201
.
(2) "Base taxable value" means:
(a) for military land or other land that was exempt from a property tax at the time that a
project area was created that included the military land or other land, a taxable value of zero; or
(b) for private property that is included in a project area, the taxable value of the
property within any portion of the project area, as designated by board resolution, from which
the property tax allocation will be collected, as shown upon the assessment roll last equalized:
(i) before the year in which the authority creates the project area; or
(ii) before the year in which the project area plan is amended, for property added to a
project area by an amendment to a project area plan.
(3) "Board" means the governing body of the authority created under Section
63H-1-301
.
(4) (a) "Dedicated tax collections" means the property tax that remains after the
authority is paid the property tax allocation the authority is entitled to receive under Subsection
63H-1-501
(1), for a property tax levied by:
(i) a county, including a district the county has established under Subsection 
17-34-3
(2)
to levy a property tax under Title 17, Chapter 34, Municipal-Type Services to Unincorporated
Areas; or
(ii) an included municipality.
(b) "Dedicated tax collections" does not include a county additional property tax or
multicounty assessing and collecting levy imposed in accordance with Section 
59-2-1602
.
(5) "Develop" means to engage in development.
[
(5)
] 
(6)
 (a) "Development" means an activity occurring:
(i) on land within a project area that is owned or operated by the military, the authority,
another public entity, or a private entity; or
(ii) on military land associated with a project area.
(b) "Development" includes the demolition, construction, reconstruction, modification,
expansion, 
maintenance, operation,
 or improvement of a building, facility, utility, landscape,
parking lot, park, trail, or recreational amenity.
[
(6)
] 
(7)
 "Development project" means a project to develop land within a project area.
[
(7)
] 
(8)
 "Elected member" means a member of the authority board who:
(a) is a mayor or member of a legislative body appointed under Subsection
63H-1-302
(2)(b); or
(b) (i) is appointed to the authority board under Subsection 
63H-1-302
(2)(a) or (3); and
(ii) concurrently serves in an elected state, county, or municipal office.
[
(8)
] 
(9)
 "Included municipality" means a municipality, some or all of which is
included within a project area.
[
(9)
] 
(10)
 (a) "Military" means a branch of the armed forces of the United States,
including the Utah National Guard.
(b) "Military" includes, in relation to property, property that is occupied by the military
and is owned by the government of the United States or the state.
[
(10)
] 
(11)
 "Military Installation Development Authority accommodations tax" or
"MIDA accommodations tax" means the tax imposed under Section 
63H-1-205
.
[
(11)
] 
(12)
 "Military Installation Development Authority energy tax" or "MIDA energy
tax" means the tax levied under Section 
63H-1-204
.
[
(12)
] 
(13)
 "Military land" means land or a facility, including leased land or a leased
facility, that is part of or affiliated with a base, camp, post, station, yard, center, or installation
under the jurisdiction of the United States Department of Defense, the United States
Department of Veterans Affairs, or the Utah National Guard.
[
(13)
] 
(14)
 "Municipal energy tax" means a municipal energy sales and use tax under
Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act.
[
(14)
] 
(15)
 "Municipal services revenue" means revenue that the authority:
(a) collects from the authority's:
(i) levy of a municipal energy tax;
(ii) levy of a MIDA energy tax;
(iii) levy of a telecommunications tax;
(iv) imposition of a transient room tax; and
(v) imposition of a resort communities tax;
(b) receives under Subsection 
59-12-205
(2)(b)(ii); and
(c) receives as dedicated tax collections.
[
(15)
] 
(16)
 "Municipal tax" means a municipal energy tax, MIDA energy tax, MIDA
accommodations tax, telecommunications tax, transient room tax, or resort communities tax.
[
(16)
] 
(17)
 "Project area" means the land, including military land, whether consisting
of a single contiguous area or multiple noncontiguous areas, described in a project area plan or
draft project area plan, where the development project set forth in the project area plan or draft
project area plan takes place or is proposed to take place.
[
(17)
] 
(18)
 "Project area budget" means a multiyear projection of annual or cumulative
revenues and expenses and other fiscal matters pertaining to a project area that includes:
(a) the base taxable value of property in the project area;
(b) the projected property tax allocation expected to be generated within the project
area;
(c) the amount of the property tax allocation expected to be shared with other taxing
entities;
(d) the amount of the property tax allocation expected to be used to implement the
project area plan, including the estimated amount of the property tax allocation to be used for
land acquisition, public improvements, infrastructure improvements, and loans, grants, or other
incentives to private and public entities;
(e) the property tax allocation expected to be used to cover the cost of administering
the project area plan;
(f) if the property tax allocation is to be collected at different times or from different
portions of the project area, or both:
(i) (A) the tax identification numbers of the parcels from which the property tax
allocation will be collected; or
(B) a legal description of the portion of the project area from which the property tax
allocation will be collected; and
(ii) an estimate of when other portions of the project area will become subject to
collection of the property tax allocation; and
(g) for property that the authority owns or leases and expects to sell or sublease, the
expected total cost of the property to the authority and the expected selling price or lease
payments.
[
(18)
] 
(19)
 "Project area plan" means a written plan that, after the plan's effective date,
guides and controls the development within a project area.
[
(19)
] 
(20)
 (a) "Property tax" includes a privilege tax imposed under Title 59, Chapter
4, Privilege Tax, except as described in Subsection [
(19)
] 
(20)
(b), and each levy on an ad
valorem basis on tangible or intangible personal or real property.
(b) "Property tax" does not include a privilege tax on the taxable value:
(i) attributable to a portion of a facility leased to the military for a calendar year when:
(A) a lessee of military land has constructed a facility on the military land that is part of
a project area;
(B) the lessee leases space in the facility to the military for the entire calendar year; and
(C) the lease rate paid by the military for the space is $1 or less for the entire calendar
year, not including any common charges that are reimbursements for actual expenses; or
(ii) of the following property owned by the authority, regardless of whether the
authority enters into a long-term operating agreement with a privately owned entity under
which the privately owned entity agrees to operate the property:
(A) a hotel;
(B) a hotel condominium unit in a condominium project, as defined in Section 
57-8-3
;
and
(C) a commercial condominium unit in a condominium project, as defined in Section
57-8-3
.
[
(20)
] 
(21)
 "Property tax allocation" means the difference between:
(a) the amount of property tax revenues generated each tax year by all taxing entities
from the area within a project area designated in the project area plan as the area from which
the property tax allocation is to be collected, using the current assessed value of the property;
and
(b) the amount of property tax revenues that would be generated from that same area
using the base taxable value of the property.
[
(21)
] 
(22)
 "Public entity" means:
(a) the state, including each department or agency of the state; or
(b) a political subdivision of the state, including a county, city, town, school district,
local district, special service district, or interlocal cooperation entity.
[
(22)
] 
(23)
 (a) "[
Publicly owned
] 
Public
 infrastructure and improvements" means
infrastructure, improvements, facilities, or buildings that
:
(i)
 benefit the public, the authority, the military, or military-related entities
;
 and [
are:
]
[
(i)
] 
(ii) (A) are
 publicly owned by the military, the authority, a public infrastructure
district under Title 17B, Chapter 2a, Part 12, Public Infrastructure District Act, or another
public entity;
[
(ii)
] 
(B) are
 owned by a utility; or
[
(iii)
] 
(C) are
 publicly maintained or operated by the military, the authority, or another
public entity.
(b) "Public infrastructure and improvements" also means infrastructure, improvements,
facilities, or buildings that:
(i) are privately owned; and
(ii) provide a substantial benefit, as determined by the board, to the development and
operation of a project area.
[
(b) "Publicly owned
] 
(c) "Public
 infrastructure and improvements" includes:
(i) facilities, lines, or systems that harness geothermal energy or provide water, chilled
water, steam, sewer, storm drainage, natural gas, electricity, or telecommunications;
(ii) streets, roads, curb, gutter, sidewalk, walkways, 
tunnels,
 solid waste facilities,
parking facilities, public transportation facilities, and parks, trails, and other recreational
facilities;
(iii) snowmaking equipment and related improvements that can also be used for water
storage or fire suppression purposes; and
(iv) a building and related improvements for occupancy by the public, the authority, the
military, or military-related entities.
[
(23)
] 
(24)
 "Remaining municipal services revenue" means municipal services revenue
that the authority has not:
(a) spent during the authority's fiscal year for municipal services as provided in
Subsection 
63H-1-503
(1); or
(b) redirected to use in accordance with Subsection 
63H-1-502
(3).
[
(24)
] 
(25)
 "Resort communities tax" means a sales and use tax imposed under Section
59-12-401
.
[
(25)
] 
(26)
 "Taxable value" means the value of property as shown on the last equalized
assessment roll.
[
(26)
] 
(27)
 "Taxing entity":
(a) means a public entity that levies a tax on property within a project area; and
(b) does not include a public infrastructure district that the authority creates under Title
17B, Chapter 2a, Part 12, Public Infrastructure District Act.
[
(27)
] 
(28)
 "Telecommunications tax" means a telecommunications license tax under
Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
[
(28)
] 
(29)
 "Transient room tax" means a tax under Section 
59-12-352
.
Section 10. Section 
63H-1-201
 is amended to read:
63H-1-201.
Creation of military installation development authority -- Status and
powers of authority -- Limitation.
(1) There is created a military installation development authority.
(2) The authority is:
(a) an independent, nonprofit, separate body corporate and politic, with perpetual
succession and statewide jurisdiction, whose purpose is to facilitate the development of land
within a project area or on military land associated with a project area;
(b) a political subdivision of the state; and
(c) a public corporation, as defined in Section 
63E-1-102
.
(3) The authority may:
(a) [
as provided in this chapter,
] facilitate the development of land within one or more
project areas, including the ongoing operation of facilities within a project area, or
development of military land associated with a project area;
(b) sue and be sued;
(c) enter into contracts generally;
(d) by itself or through a subsidiary, buy, obtain an option upon, or otherwise acquire
any interest in real or personal property:
(i) in a project area; or
(ii) outside a project area for [
publicly owned
] 
public
 infrastructure and improvements,
if the board considers the purchase, option, or other interest acquisition to be necessary for
fulfilling the authority's development objectives;
(e) sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
personal property;
(f) enter into a lease agreement on real or personal property, either as lessee or lessor:
(i) in a project area; or
(ii) outside a project area, if the board considers the lease to be necessary for fulfilling
the authority's development objectives;
(g) provide for the development of land within a project area or military land
associated with the project area under one or more contracts;
(h) exercise powers and perform functions under a contract, as authorized in the
contract;
(i) exercise exclusive police power within a project area to the same extent as though
the authority were a municipality, including the collection of regulatory fees;
(j) receive the property tax allocation and other taxes and fees as provided in this
chapter;
(k) accept financial or other assistance from any public or private source for the
authority's activities, powers, and duties, and expend any funds so received for any of the
purposes of this chapter;
(l) borrow money, contract with, or accept financial or other assistance from the federal
government, a public entity, or any other source for any of the purposes of this chapter and
comply with any conditions of the loan, contract, or assistance;
(m) issue bonds to finance the undertaking of any development objectives of the
authority, including bonds under Title 11, Chapter 17, Utah Industrial Facilities and
Development Act, and bonds under Title 11, Chapter 42, Assessment Area Act;
(n) hire employees, including contract employees;
(o) transact other business and exercise all other powers provided for in this chapter;
(p) enter into a development agreement with a developer of land within a project area;
(q) enter into an agreement with a political subdivision of the state under which the
political subdivision provides one or more municipal services within a project area;
(r) enter into an agreement with a private contractor to provide one or more municipal
services within a project area;
(s) provide for or finance an energy efficiency upgrade, a renewable energy system, or
electric vehicle charging infrastructure as defined in Section 
11-42a-102
, in accordance with
Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act;
(t) exercise powers and perform functions that the authority is authorized by statute to
exercise or perform;
(u) enter into an agreement with the federal government or an agency of the federal
government under which the federal government or agency:
(i) provides law enforcement services only to military land within a project area; and
(ii) may enter into a mutual aid or other cooperative agreement with a law enforcement
agency of the state or a political subdivision of the state; [
and
]
(v) by itself or through a subsidiary, 
act as a facilitator under Title 63N, Chapter 13,
Part 3, Facilitating Public-private Partnerships Act, to
 provide expertise and knowledge to
another governmental entity interested in public-private partnerships[
.
]
;
(w) enter into an intergovernmental support agreement under Title 10, U.S.C. Sec.
with the military to provide support services to the military in accordance with the
agreement;
(x) act as a developer, or assist a developer chosen by the military, to develop military
land as part of an enhanced use lease under Title 10, U.S.C. Sec. 2667; and
(y) develop public infrastructure and improvements.
(4) The authority may not itself provide law enforcement service or fire protection
service within a project area but may enter into an agreement for one or both of those services,
as provided in Subsection (3)(q).
(5) The authority shall provide support to a subsidiary that enters into an agreement
under Subsection (3)(v) that the authority determines necessary for the subsidiary to fulfill the
requirements of the agreement.
[
(5)
] 
(6)
 Because providing procurement, utility, construction, and other services for
use by a military installation, including providing [
publicly owned
] 
public
 infrastructure and
improvements for use or occupancy by the military, are core functions of the authority and are
typically provided by a local government for the local government's own needs or use, these
services provided by the authority for the military under this chapter are considered to be for
the authority's own needs and use.
(7) A public infrastructure district created by the authority under Title 17B, Chapter 2a,
Part 12, Public Infrastructure District Act, is a subsidiary of the authority.
Section 11. Section 
63H-1-202
 is amended to read:
63H-1-202.
Applicability of other law.
(1) As used in this section:
(a) "Subsidiary" means an authority subsidiary that is a public body as defined in
Section 
52-4-103
.
(b) "Subsidiary board" means the governing body of a subsidiary.
[
(1)
] 
(2)
 The authority or land within a project area is not subject to:
(a) Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act;
(b) Title 17, Chapter 27a, County Land Use, Development, and Management Act;
(c) ordinances or regulations of a county or municipality, including those relating to
land use, health, business license, or franchise; or
(d) the jurisdiction of a local district under Title 17B, Limited Purpose Local
Government Entities - Local Districts, or a special service district under Title 17D, Chapter 1,
Special Service District Act.
[
(2)
] 
(3)
 The authority is subject to and governed by Sections 
63E-2-106
, 
63E-2-107
,
63E-2-108
, 
63E-2-109
, 
63E-2-110
, and 
63E-2-111
, but is not otherwise subject to or governed
by Title 63E, Independent Entities Code.
[
(3)
] 
(4)
 (a) The definitions in Section 
57-8-3
 apply to this Subsection [
(3)
] 
(4)
.
(b) Notwithstanding the provisions of Title 57, Chapter 8, Condominium Ownership
Act, or any other provision of law:
(i) if the military is the owner of land in a project area on which a condominium project
is constructed, the military is not required to sign, execute, or record a declaration of a
condominium project; and
(ii) if a condominium unit in a project area is owned by the military or owned by the
authority and leased to the military for $1 or less per calendar year, not including any common
charges that are reimbursements for actual expenses:
(A) the condominium unit is not subject to any liens under Title 57, Chapter 8,
Condominium Ownership Act;
(B) condominium unit owners within the same building or commercial condominium
project may agree on any method of allocation and payment of common area expenses,
regardless of the size or par value of each unit; and
(C) the condominium project may not be dissolved without the consent of all the
condominium unit owners.
[
(4)
] 
(5)
 Notwithstanding any other provision, when a law requires the consent of a
local government, the authority is the consenting entity for a project area.
[
(5)
] 
(6)
 (a) A department, division, or other agency of the state and a political
subdivision of the state shall cooperate with the authority to the fullest extent possible to
provide whatever support, information, or other assistance the authority requests that is
reasonably necessary to help the authority fulfill the authority's duties and responsibilities
under this chapter.
(b) Subsection [
(5)
] 
(6)
(a) does not apply to a political subdivision that does not have
any of a project area located within the boundary of the political subdivision.
(7) The authority and a subsidiary are subject to Title 52, Chapter 4, Open and Public
Meetings Act, except that:
(a) notwithstanding Section 
54-2-104
, the timing and nature of training to authority
board members or subsidiary board members on the requirements of Title 52, Chapter 4, Open
and Public Meetings Act, may be determined by:
(i) the board chair, for the authority board; or
(ii) the subsidiary board chair, for a subsidiary board;
(b) authority staff may adopt a rule governing the use of electronic meetings under
Section 
52-4-207
, if, under Subsection 
63H-1-301
(3), the board delegates to authority staff the
power to adopt the rule; and
(c) for an electronic meeting of the authority board or subsidiary board that otherwise
complies with Section 
52-4-207
, the authority board or subsidiary board, respectively:
(i) is not required to establish an anchor location; and
(ii) may convene and conduct the meeting without the written determination otherwise
required under Subsection 
52-4-207
(4).
(8) The authority and a subsidiary are subject to Title 63G, Chapter 2, Government
Records Access and Management Act, except that:
(a) notwithstanding Section 
63G-2-701
:
(i) the authority may establish an appeals board consisting of at least three members;
(ii) an appeals board established under Subsection (8)(a)(i) shall include:
(A) one of the authority board members appointed by the governor;
(B) the authority board member appointed by the president of the Senate; and
(C) the authority board member appointed by the speaker of the House of
Representatives; and
(iii) an appeal of a decision of an appeals board is to district court, as provided in
Section 
63G-2-404
, except that the State Records Committee is not a party; and
(b) a record created or retained by the authority or a subsidiary acting in the role of a
facilitator under Subsection 
63H-1-201
(3)(v) is a protected record under Title 63G, Chapter 2,
Government Records Access and Management Act.
(9) The authority or a subsidiary acting in the role of a facilitator under Subsection
63H-1-201
(3)(v) is not prohibited from receiving a benefit from a public-private partnership
that results from the facilitator's work as a facilitator.
(10) (a) (i) A subsidiary created as a public infrastructure district under Title 17B,
Chapter 2a, Part 12, Public Infrastructure District Act, may, subject to limitations of Title 17B,
Chapter 2a, Part 12, Public Infrastructure District Act, levy a property tax for the operations
and maintenance of the public infrastructure district's financed infrastructure and related
improvements, subject to a maximum rate of .015.
(ii) A levy under Subsection (10)(a)(i) may be separate from a public infrastructure
district property tax levy for a bond.
(b) If a subsidiary created as a public infrastructure district issues a bond:
(i) the subsidiary may:
(A) delay the effective date of the property tax levy for the bond until after the period
of capitalized interest payments; and
(B) covenant with bondholders not to reduce or impair the property tax levy; and
(ii) notwithstanding a provision to the contrary in Title 17B, Chapter 2a, Part 12,
Public Infrastructure District Act, the tax rate for the property tax levy for the bond may not
exceed a rate that generates more revenue than required to pay the annual debt service of the
bond plus administrative costs, subject to a maximum of .02.
Section 12. Section 
63H-1-205
 is amended to read:
63H-1-205.
MIDA accommodations tax.
(1) As used in this section:
(a) "Accommodations and services" means an accommodation or service described in
Subsection 
59-12-103
(1)(i).
(b) "Accommodations and services" does not include amounts paid or charged that are
not part of a rental room rate.
(2) By ordinance, the authority board may impose a MIDA accommodations tax on a
provider for amounts paid or charged for accommodations and services, if the place of
accommodation is located on
:
(a)
 authority-owned or other government-owned property within the project area
; or
(b) privately owned property on which the authority owns a condominium unit that is
part of the place of accommodation
.
(3) The maximum rate of the MIDA accommodations tax is 15% of the amounts paid
to or charged by the provider for accommodations and services.
(4) A provider may recover an amount equal to the MIDA accommodations tax from
customers, if the provider includes the amount as a separate billing line item.
(5) If the authority imposes the tax described in this section, neither the authority nor a
public entity may impose, on the amounts paid or charged for accommodations and services,
any other tax described in:
(a) Title 59, Chapter 12, Sales and Use Tax Act; or
(b) Title 59, Chapter 28, State Transient Room Tax Act.
(6) Except as provided in Subsection (7) or (8), the tax imposed under this section shall
be administered, collected, and enforced in accordance with:
(a) the same procedures used to administer, collect, and enforce the tax under:
(i) Title 59, Chapter 12, Part 1, Tax Collection; or
(ii) Title 59, Chapter 12, Part 2, Local Sales and Use Tax Act; and
(b) Title 59, Chapter 1, General Taxation Policies.
(7) The location of a transaction shall be determined in accordance with Sections
59-12-211
 through 
59-12-215
.
(8) (a) A tax under this section is not subject to Section 
59-12-107.1
 or 
59-12-123
 or
Subsections 
59-12-205
(2) through (5).
(b) The exemptions described in Sections 
59-12-104
, 
59-12-104.1
, and 
59-12-104.6
 do
not apply to a tax imposed under this section.
(9) The State Tax Commission shall:
(a) except as provided in Subsection (9)(b), distribute the revenue collected from the
tax to the authority; and
(b) retain and deposit an administrative charge in accordance with Section 
59-1-306
from revenue the commission collects from a tax under this section.
(10) (a) If the authority imposes, repeals, or changes the rate of tax under this section,
the implementation, repeal, or change shall take effect:
(i) on the first day of a calendar quarter; and
(ii) after a 90-day period beginning on the date the State Tax Commission receives the
notice described in Subsection (10)(b) from the authority.
(b) The notice required in Subsection (10)(a)(ii) shall state:
(i) that the authority will impose, repeal, or change the rate of a tax under this section;
(ii) the effective date of the implementation, repeal, or change of the tax; and
(iii) the rate of the tax.
(11) In addition to the uses permitted under Section 
63H-1-502
, the authority may
allocate revenue from the MIDA accommodations tax to a county in which a place of
accommodation that is subject to the MIDA accommodations tax is located, if:
(a) the county had a transient room tax described in Section 
59-12-301
 in effect at the
time the authority board imposed a MIDA accommodations tax by ordinance; and
(b) the revenue replaces revenue that the county received from a county transient room
tax described in Section 
59-12-301
 for the county's general operations and administrative
expenses.
Section 13. Section 
63H-1-208
 is enacted to read:
 63H-1-208.
Former rail line.
(1) A former rail line automatically becomes included within a project area located at
an air force base if:
(a) the authority acquires title to the former rail line; and
(b) a portion of the former rail line is adjacent to the project area.
(2) The authority may:
(a) develop the former rail line; or
(b) transfer title of all or part of the former rail line to another governmental entity or
nonprofit entity.
Section 14. Section 
63H-1-301
 is amended to read:
63H-1-301.
Authority board -- Delegation of power.
(1) The authority shall be governed by a board which shall manage and conduct the
business and affairs of the authority and shall determine all questions of authority policy.
(2) All powers of the authority are exercised through the board.
(3) The board may by resolution delegate powers to authority staff
, including the power
to adopt a rule governing the use of electronic meetings under Section 
54-2-207
.
Section 15. Section 
63H-1-403
 is amended to read:
63H-1-403.
Notice of project area plan adoption -- Effective date of plan --
Contesting the formation of the plan.
(1) Upon the [
board's adoption
] 
effective date
 of a project area plan, the board shall
provide notice as provided in Subsection (1)(b) by publishing or causing to be published legal
notice:
(a) in a newspaper of general circulation within or near the project area; and
(b) as required by Section 
45-1-101
.
(2) (a) Each notice under Subsection (1) shall include:
(i) the board resolution adopting the project area plan or a summary of the resolution;
[
and
]
(ii) a statement that the project area plan is available for general public inspection [
and
the hours for inspection.
] 
as provided in Subsection (4); and
(iii) an email address to which a person may send an email requesting an electronic
copy of the project area plan.
(b) The statement required under Subsection (2)(a)(ii) may be included in the board
resolution or summary described in Subsection (2)(a)(i).
(3) The project area plan becomes effective on the date designated in the board
resolution adopting the project area plan.
(4) The authority shall make the adopted project area plan available to the general
public [
at its offices during normal business hours.
] 
by:
(a) providing an electronic link to the project area plan on the authority's website, if the
authority has a website; and
(b) sending an email free of charge with an electronic copy of the project area plan to
any person who submits an email to the authority at an email address identified in the notice
under Subsection (2).
(5) Within 10 days after the [
day on which
] 
effective date of
 a project area plan [
is
adopted
] that establishes a project area, or after an amendment to a project area plan is adopted
under which the boundary of a project area is modified, the authority shall send notice of the
establishment or modification of the project area and an accurate map or plat of the project area
to:
(a) the State Tax Commission;
(b) the Automated Geographic Reference Center created in Section 
63F-1-506
; and
(c) the assessor and recorder of each county where the project area is located.
(6) (a) A legal action or other challenge to a project area plan or a project area
described in a project area plan is barred unless brought within 30 days after the effective date
of the project area plan.
(b) For a project area created before December 1, 2018, a legal action or other
challenge is barred.
(c) For a project area created after December 1, 2018, and before May 14, 2019, a legal
action or other challenge is barred after July 1, 2019.
Section 16. Section 
63H-1-502
 is amended to read:
63H-1-502.
Allowable uses of property tax allocation and other funds.
(1) Other than municipal services revenue, the authority may use the property tax
allocation and other funds available to the authority:
(a) for any purpose authorized under this chapter;
(b) for administrative, overhead, legal, and other operating expenses of the authority;
(c) to pay for, including financing or refinancing, all or part of the development of land
within the project area from which the property tax allocation or other funds were collected,
including assisting the ongoing operation of a development or facility within the project area;
(d) to pay the cost of the installation and construction of [
publicly owned
] 
public
infrastructure and improvements within the project area from which the property tax allocation
funds were collected;
(e) to pay the cost of the installation [
of publicly owned
] 
and construction of public
infrastructure and improvements, including a passenger ropeway, as defined in Section
72-11-102
, outside the project area if:
(i) the authority board determines by resolution that the infrastructure and
improvements are of benefit to the project area; and
(ii) for a passenger ropeway, at least one end of the ropeway is located within the
project area;
(f) to pay the principal and interest on bonds issued by the authority;
(g) to pay for a morale, welfare, and recreation program of a United States Air Force
base in Utah, affiliated with the project area from which the funds were collected; or
(h) to pay for the promotion of:
(i) a development within the project area; or
(ii) amenities outside of the project area that are associated with a development within
the project area.
(2) The authority may use revenue generated from the 
authority's
 operation of [
publicly
owned
] 
public
 infrastructure [
operated by the authority or
] 
and
 improvements [
operated by the
authority
] to:
(a) operate and maintain the 
public
 infrastructure [
or
] 
and
 improvements; and
(b) pay for authority operating expenses, including administrative, overhead, and legal
expenses.
(3) For purposes of Subsection (1), the authority may use:
(a) tax revenue received under Subsection 
59-12-205
(2)(b)(ii);
(b) resort communities tax revenue;
(c) MIDA energy tax revenue, received under Section 
63H-1-204
, which does not have
to be used in the project area where the revenue was generated;
(d) MIDA accommodations tax revenue, received under Section 
63H-1-205
;
(e) transient room tax revenue generated from hotels located on authority-owned or
other public-entity-owned property;
(f) municipal energy tax revenue generated from hotels located on authority-owned or
other public-entity-owned property; or
(g) payments received under Subsection 
63H-1-501
(4).
(4) The determination of the authority board under Subsection (1)(e) regarding benefit
to the project area is final.
Section 17. Section 
63H-1-703
 is amended to read:
63H-1-703.
Authority report.
(1) (a) On or before November 1 of each year, the authority shall prepare and file a
report with the county auditor of each county in which a project area of the authority is located,
the State Tax Commission, the State Board of Education, and each taxing entity that levies a
tax on property from which the authority collects property tax allocation.
(b) The requirement of Subsection (1)(a) to file a copy of the report with the state as a
taxing entity is met if the authority files a copy with the State Tax Commission [
and the state
auditor
].
(2) Each report under Subsection (1) shall contain:
(a) an estimate of the property tax allocation to be paid to the authority for the calendar
year ending December 31; and
(b) an estimate of the property tax allocation to be paid to the authority for the calendar
year beginning the next January 1.
Section 18. Section 
63N-13-303
 is amended to read:
63N-13-303.
 Contract with facilitator.
(1) Within legislative appropriations, the office shall enter into a contract with a
nonprofit entity or government entity to act as a facilitator.
(2) The office shall use a request for proposals process under Title 63G, Chapter 6a,
Utah Procurement Code, to select a qualified person to act as facilitator.
(3) The term of a contract under Subsection (1) may not exceed three years.
(4) [
The
] 
Except as provided in Subsection 
63H-1-202
(9), the
 office shall ensure that
the contract with the facilitator includes a conflict-of-interest provision prohibiting the
facilitator, or a principal, officer, or employee of the facilitator, from receiving a direct or
indirect financial benefit from any public-private partnership that results from the facilitator's
work under the contract.
Section 19. 
Effective date.
If approved by two-thirds of all the members elected to each house, this bill takes effect
upon approval by the governor, or the day following the constitutional time limit of Utah
Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
the date of veto override.