UT
Utah House Bill HB0054

Utah 2023 Regular Session

Utah House Bill HB0054 Compare Versions

OldNewDifferences
1-Enrolled Copy H.B. 54
1+4th Sub. H.B. 54
2+LEGISLATIVE GENERAL COUNSEL
3+6 Approved for Filing: A.V. Arthur 6
4+6 03-01-23 9:31 PM 6
5+H.B. 54
6+4th Sub. (Green)
7+Senator Daniel McCay proposes the following substitute bill:
28 1 TAX REVISIONS
39 2 2023 GENERAL SESSION
410 3 STATE OF UTAH
511 4 Chief Sponsor: Steve Eliason
612 5 Senate Sponsor: Daniel McCay
713 6Cosponsors:
814 7Nelson T. Abbott
915 8Carl R. Albrecht
1016 9Melissa G. Ballard
1117 10Brady Brammer
1218 11Walt Brooks
1319 12Kay J. Christofferson
1420 13Tyler Clancy
1521 14Paul A. Cutler
1622 15Jon Hawkins
1723 16Ken Ivory
1824 17Colin W. Jack
19-18Dan N. Johnson
25+Dan N. Johnson
2026 Jason B. Kyle
2127 Karianne Lisonbee
2228 Anthony E. Loubet
2329 Steven J. Lund
2430 Jefferson Moss
2531 Calvin R. Musselman
2632 Michael J. Petersen
2733 Karen M. Peterson
2834 Thomas W. Peterson
2935 Val L. Peterson
3036 Candice B. Pierucci
3137 Susan Pulsipher
3238 Judy Weeks Rohner
3339 Mike Schultz
3440 Rex P. Shipp
3541 Casey Snider
3642 Robert M. Spendlove
3743 Keven J. Stratton
3844 Mark A. Strong
3945 Jordan D. Teuscher
4046 Douglas R. Welton
4147 Stephen L. Whyte
4248 Ryan D. Wilcox
43-19
44-20LONG TITLE
45-21General Description:
46-22 This bill modifies state tax provisions.
47-23Highlighted Provisions:
48-24 This bill:
49-25 <amends the corporate franchise and income tax rates;
50-26 <amends the individual income tax rate;
51-27 <adds to the taxpayer tax credit an additional Utah personal exemption in the year of
52-28a qualifying dependent's birth; H.B. 54 Enrolled Copy
49+18
50+19LONG TITLE
51+20General Description:
52+21 This bill modifies state tax provisions.
53+22Highlighted Provisions:
54+23 This bill:
55+*HB0054S04* 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
5356 - 2 -
54-29 <expands eligibility for the social security benefits tax credit by increasing the
55-30thresholds for the income-based phaseout;
56-31 <modifies the calculation of the earned income tax credit;
57-32 <removes the state sales and use tax imposed on amounts paid or charged for food
58-33and food ingredients; and
59-34 <makes technical and conforming changes.
60-35Money Appropriated in this Bill:
61-36 None
62-37Other Special Clauses:
63-38 This bill provides a special effective date.
64-39 This bill provides retrospective operation.
65-40Utah Code Sections Affected:
66-41AMENDS:
67-42 59-7-104, as last amended by Laws of Utah 2022, Chapter 12
68-43 59-7-201, as last amended by Laws of Utah 2022, Chapter 12
69-44 59-10-104, as last amended by Laws of Utah 2022, Chapter 12
70-45 59-10-1018, as last amended by Laws of Utah 2021, Chapter 75
71-46 59-10-1042, as last amended by Laws of Utah 2022, Chapters 12, 258
72-47 59-10-1044, as enacted by Laws of Utah 2022, Chapter 12
73-48 59-12-102, as last amended by Laws of Utah 2021, Chapters 64, 367 and 414 and last
74-49amended by Coordination Clause, Laws of Utah 2021, Chapter 367
75-50 59-12-103, as last amended by Laws of Utah 2022, Chapters 77, 106 and 433
76-51 59-12-108, as last amended by Laws of Utah 2020, Chapters 294, 407
77-52 63N-2-502, as last amended by Laws of Utah 2020, Chapter 407
78-53 63N-7-301, as last amended by Laws of Utah 2022, Chapters 274, 362 and last
79-54amended by Coordination Clause, Laws of Utah 2022, Chapter 362
80-55
81-56Be it enacted by the Legislature of the state of Utah: Enrolled Copy H.B. 54
57+24 <amends the corporate franchise and income tax rates;
58+25 <amends the individual income tax rate;
59+26 <adds to the taxpayer tax credit an additional Utah personal exemption in the year of
60+27a qualifying dependent's birth;
61+28 <expands eligibility for the social security benefits tax credit by increasing the
62+29thresholds for the income-based phaseout;
63+30 <modifies the calculation of the earned income tax credit;
64+31 <removes the state sales and use tax imposed on amounts paid or charged for food
65+32and food ingredients; and
66+33 <makes technical and conforming changes.
67+34Money Appropriated in this Bill:
68+35 None
69+36Other Special Clauses:
70+37 This bill provides a special effective date.
71+38 This bill provides retrospective operation.
72+39Utah Code Sections Affected:
73+40AMENDS:
74+41 59-7-104, as last amended by Laws of Utah 2022, Chapter 12
75+42 59-7-201, as last amended by Laws of Utah 2022, Chapter 12
76+43 59-10-104, as last amended by Laws of Utah 2022, Chapter 12
77+44 59-10-1018, as last amended by Laws of Utah 2021, Chapter 75
78+45 59-10-1042, as last amended by Laws of Utah 2022, Chapters 12, 258
79+46 59-10-1044, as enacted by Laws of Utah 2022, Chapter 12
80+47 59-12-102, as last amended by Laws of Utah 2021, Chapters 64, 367 and 414 and last
81+48amended by Coordination Clause, Laws of Utah 2021, Chapter 367
82+49 59-12-103, as last amended by Laws of Utah 2022, Chapters 77, 106 and 433
83+50 59-12-108, as last amended by Laws of Utah 2020, Chapters 294, 407
84+51 63N-2-502, as last amended by Laws of Utah 2020, Chapter 407
85+52 63N-7-301, as last amended by Laws of Utah 2022, Chapters 274, 362 and last
86+53amended by Coordination Clause, Laws of Utah 2022, Chapter 362
87+54 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
8288 - 3 -
83-57 Section 1. Section 59-7-104 is amended to read:
84-58 59-7-104. Tax -- Minimum tax.
85-59 (1) Each domestic and foreign corporation, except a corporation that is exempt under
86-60Section 59-7-102, shall pay an annual tax to the state based on the corporation's Utah taxable
87-61income for the taxable year for the privilege of exercising the corporation's corporate franchise
88-62or for the privilege of doing business in the state.
89-63 (2) The tax shall be [4.85] 4.65% of a corporation's Utah taxable income.
90-64 (3) The minimum tax a corporation shall pay under this chapter is $100.
91-65 Section 2. Section 59-7-201 is amended to read:
92-66 59-7-201. Tax -- Minimum tax.
93-67 (1) There is imposed upon each corporation, except a corporation that is exempt under
94-68Section 59-7-102, a tax upon the corporation's Utah taxable income for the taxable year that is
95-69derived from sources within this state other than income for any period that the corporation is
96-70required to include in the corporation's tax base under Section 59-7-104.
97-71 (2) The tax imposed by Subsection (1) shall be [4.85] 4.65% of a corporation's Utah
98-72taxable income.
99-73 (3) In no case shall the tax be less than $100.
100-74 Section 3. Section 59-10-104 is amended to read:
101-75 59-10-104. Tax basis -- Tax rate -- Exemption.
102-76 (1) A tax is imposed on the state taxable income of a resident individual as provided in
103-77this section.
104-78 (2) For purposes of Subsection (1), for a taxable year, the tax is an amount equal to the
105-79product of:
106-80 (a) the resident individual's state taxable income for that taxable year; and
107-81 (b) [4.85] 4.65%.
108-82 (3) This section does not apply to a resident individual exempt from taxation under
109-83Section 59-10-104.1.
110-84 Section 4. Section 59-10-1018 is amended to read: H.B. 54 Enrolled Copy
89+55Be it enacted by the Legislature of the state of Utah:
90+56 Section 1. Section 59-7-104 is amended to read:
91+57 59-7-104. Tax -- Minimum tax.
92+58 (1) Each domestic and foreign corporation, except a corporation that is exempt under
93+59Section 59-7-102, shall pay an annual tax to the state based on the corporation's Utah taxable
94+60income for the taxable year for the privilege of exercising the corporation's corporate franchise
95+61or for the privilege of doing business in the state.
96+62 (2) The tax shall be [4.85] 4.65% of a corporation's Utah taxable income.
97+63 (3) The minimum tax a corporation shall pay under this chapter is $100.
98+64 Section 2. Section 59-7-201 is amended to read:
99+65 59-7-201. Tax -- Minimum tax.
100+66 (1) There is imposed upon each corporation, except a corporation that is exempt under
101+67Section 59-7-102, a tax upon the corporation's Utah taxable income for the taxable year that is
102+68derived from sources within this state other than income for any period that the corporation is
103+69required to include in the corporation's tax base under Section 59-7-104.
104+70 (2) The tax imposed by Subsection (1) shall be [4.85] 4.65% of a corporation's Utah
105+71taxable income.
106+72 (3) In no case shall the tax be less than $100.
107+73 Section 3. Section 59-10-104 is amended to read:
108+74 59-10-104. Tax basis -- Tax rate -- Exemption.
109+75 (1) A tax is imposed on the state taxable income of a resident individual as provided in
110+76this section.
111+77 (2) For purposes of Subsection (1), for a taxable year, the tax is an amount equal to the
112+78product of:
113+79 (a) the resident individual's state taxable income for that taxable year; and
114+80 (b) [4.85] 4.65%.
115+81 (3) This section does not apply to a resident individual exempt from taxation under
116+82Section 59-10-104.1.
117+83 Section 4. Section 59-10-1018 is amended to read:
118+84 59-10-1018. Definitions -- Nonrefundable taxpayer tax credits.
119+85 (1) As used in this section: 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
111120 - 4 -
112-85 59-10-1018. Definitions -- Nonrefundable taxpayer tax credits.
113-86 (1) As used in this section:
114-87 (a) "Head of household filing status" means a head of household, as defined in Section
115-882(b), Internal Revenue Code, who files a single federal individual income tax return for the
116-89taxable year.
117-90 (b) "Joint filing status" means:
118-91 (i) spouses who file a single return jointly under this chapter for a taxable year; or
119-92 (ii) a surviving spouse, as defined in Section 2(a), Internal Revenue Code, who files a
120-93single federal individual income tax return for the taxable year.
121-94 (c) "Qualifying dependent" means an individual with respect to whom the claimant is
122-95allowed to claim a tax credit under Section 24, Internal Revenue Code, on the claimant's
123-96federal individual income tax return for the taxable year.
124-97 (d) "Single filing status" means:
125-98 (i) a single individual who files a single federal individual income tax return for the
126-99taxable year; or
127-100 (ii) a married individual who:
128-101 (A) does not file a single federal individual income tax return jointly with that married
129-102individual's spouse for the taxable year; and
130-103 (B) files a single federal individual income tax return for the taxable year.
131-104 (e) "State or local income tax" means the lesser of:
132-105 (i) the amount of state or local income tax that the claimant:
133-106 (A) pays for the taxable year; and
134-107 (B) reports on the claimant's federal individual income tax return for the taxable year,
135-108regardless of whether the claimant is allowed an itemized deduction on the claimant's federal
136-109individual income tax return for the taxable year for the full amount of state or local income tax
137-110paid; and
138-111 (ii) $10,000.
139-112 (f) (i) "Utah itemized deduction" means the amount the claimant deducts as allowed as Enrolled Copy H.B. 54
121+86 (a) "Head of household filing status" means a head of household, as defined in Section
122+872(b), Internal Revenue Code, who files a single federal individual income tax return for the
123+88taxable year.
124+89 (b) "Joint filing status" means:
125+90 (i) spouses who file a single return jointly under this chapter for a taxable year; or
126+91 (ii) a surviving spouse, as defined in Section 2(a), Internal Revenue Code, who files a
127+92single federal individual income tax return for the taxable year.
128+93 (c) "Qualifying dependent" means an individual with respect to whom the claimant is
129+94allowed to claim a tax credit under Section 24, Internal Revenue Code, on the claimant's
130+95federal individual income tax return for the taxable year.
131+96 (d) "Single filing status" means:
132+97 (i) a single individual who files a single federal individual income tax return for the
133+98taxable year; or
134+99 (ii) a married individual who:
135+100 (A) does not file a single federal individual income tax return jointly with that married
136+101individual's spouse for the taxable year; and
137+102 (B) files a single federal individual income tax return for the taxable year.
138+103 (e) "State or local income tax" means the lesser of:
139+104 (i) the amount of state or local income tax that the claimant:
140+105 (A) pays for the taxable year; and
141+106 (B) reports on the claimant's federal individual income tax return for the taxable year,
142+107regardless of whether the claimant is allowed an itemized deduction on the claimant's federal
143+108individual income tax return for the taxable year for the full amount of state or local income tax
144+109paid; and
145+110 (ii) $10,000.
146+111 (f) (i) "Utah itemized deduction" means the amount the claimant deducts as allowed as
147+112an itemized deduction on the claimant's federal individual income tax return for that taxable
148+113year minus any amount of state or local income tax for the taxable year.
149+114 (ii) "Utah itemized deduction" does not include any amount of qualified business
150+115income that the claimant subtracts as allowed by Section 199A, Internal Revenue Code, on the
151+116claimant's federal income tax return for that taxable year. 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
140152 - 5 -
141-113an itemized deduction on the claimant's federal individual income tax return for that taxable
142-114year minus any amount of state or local income tax for the taxable year.
143-115 (ii) "Utah itemized deduction" does not include any amount of qualified business
144-116income that the claimant subtracts as allowed by Section 199A, Internal Revenue Code, on the
145-117claimant's federal income tax return for that taxable year.
146-118 (g) "Utah personal exemption" means, subject to Subsection (6), $1,750 multiplied by
147-119the number of the claimant's qualifying dependents plus an additional qualifying dependent in
148-120the year of a qualifying dependent's birth.
149-121 (2) Except as provided in Section 59-10-1002.2, and subject to Subsections (3) through
150-122(5), a claimant may claim a nonrefundable tax credit against taxes otherwise due under this part
151-123equal to the sum of:
152-124 (a) (i) for a claimant that deducts the standard deduction on the claimant's federal
153-125individual income tax return for the taxable year, 6% of the amount the claimant deducts as
154-126allowed as the standard deduction on the claimant's federal individual income tax return for
155-127that taxable year; or
156-128 (ii) for a claimant that itemizes deductions on the claimant's federal individual income
157-129tax return for the taxable year, 6% of the amount of the claimant's Utah itemized deduction;
158-130and
159-131 (b) 6% of the claimant's Utah personal exemption.
160-132 (3) A claimant may not carry forward or carry back a tax credit under this section.
161-133 (4) The tax credit allowed by Subsection (2) shall be reduced by $.013 for each dollar
162-134by which a claimant's state taxable income exceeds:
163-135 (a) for a claimant who has a single filing status, $15,095;
164-136 (b) for a claimant who has a head of household filing status, $22,643; or
165-137 (c) for a claimant who has a joint filing status, $30,190.
166-138 (5) (a) For a taxable year beginning on or after January 1, 2022, the commission shall
167-139increase or decrease annually the following dollar amounts by a percentage equal to the
168-140percentage difference between the consumer price index for the preceding calendar year and H.B. 54 Enrolled Copy
153+117 (g) "Utah personal exemption" means, subject to Subsection (6), $1,750 multiplied by
154+118the number of the claimant's qualifying dependents plus an additional qualifying dependent in
155+119the year of a qualifying dependent's birth.
156+120 (2) Except as provided in Section 59-10-1002.2, and subject to Subsections (3) through
157+121(5), a claimant may claim a nonrefundable tax credit against taxes otherwise due under this part
158+122equal to the sum of:
159+123 (a) (i) for a claimant that deducts the standard deduction on the claimant's federal
160+124individual income tax return for the taxable year, 6% of the amount the claimant deducts as
161+125allowed as the standard deduction on the claimant's federal individual income tax return for
162+126that taxable year; or
163+127 (ii) for a claimant that itemizes deductions on the claimant's federal individual income
164+128tax return for the taxable year, 6% of the amount of the claimant's Utah itemized deduction;
165+129and
166+130 (b) 6% of the claimant's Utah personal exemption.
167+131 (3) A claimant may not carry forward or carry back a tax credit under this section.
168+132 (4) The tax credit allowed by Subsection (2) shall be reduced by $.013 for each dollar
169+133by which a claimant's state taxable income exceeds:
170+134 (a) for a claimant who has a single filing status, $15,095;
171+135 (b) for a claimant who has a head of household filing status, $22,643; or
172+136 (c) for a claimant who has a joint filing status, $30,190.
173+137 (5) (a) For a taxable year beginning on or after January 1, 2022, the commission shall
174+138increase or decrease annually the following dollar amounts by a percentage equal to the
175+139percentage difference between the consumer price index for the preceding calendar year and
176+140the consumer price index for calendar year 2020:
177+141 (i) the dollar amount listed in Subsection (4)(a); and
178+142 (ii) the dollar amount listed in Subsection (4)(b).
179+143 (b) After the commission increases or decreases the dollar amounts listed in Subsection
180+144(5)(a), the commission shall round those dollar amounts listed in Subsection (5)(a) to the
181+145nearest whole dollar.
182+146 (c) After the commission rounds the dollar amounts as required by Subsection (5)(b),
183+147the commission shall increase or decrease the dollar amount listed in Subsection (4)(c) so that 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
169184 - 6 -
170-141the consumer price index for calendar year 2020:
171-142 (i) the dollar amount listed in Subsection (4)(a); and
172-143 (ii) the dollar amount listed in Subsection (4)(b).
173-144 (b) After the commission increases or decreases the dollar amounts listed in Subsection
174-145(5)(a), the commission shall round those dollar amounts listed in Subsection (5)(a) to the
175-146nearest whole dollar.
176-147 (c) After the commission rounds the dollar amounts as required by Subsection (5)(b),
177-148the commission shall increase or decrease the dollar amount listed in Subsection (4)(c) so that
178-149the dollar amount listed in Subsection (4)(c) is equal to the product of:
179-150 (i) the dollar amount listed in Subsection (4)(a); and
180-151 (ii) two.
181-152 (d) For purposes of Subsection (5)(a), the commission shall calculate the consumer
182-153price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
183-154 (6) (a) For a taxable year beginning on or after January 1, 2022, the commission shall
184-155increase annually the Utah personal exemption amount listed in Subsection (1)(g) by a
185-156percentage equal to the percentage by which the consumer price index for the preceding
186-157calendar year exceeds the consumer price index for calendar year 2020.
187-158 (b) After the commission increases the Utah personal exemption amount as described
188-159in Subsection (6)(a), the commission shall round the Utah personal exemption amount to the
189-160nearest whole dollar.
190-161 (c) For purposes of Subsection (6)(a), the commission shall calculate the consumer
191-162price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
192-163 Section 5. Section 59-10-1042 is amended to read:
193-164 59-10-1042. Nonrefundable tax credit for social security benefits.
194-165 (1) As used in this section:
195-166 (a) "Head of household filing status" means the same as that term is defined in Section
196-16759-10-1018.
197-168 (b) "Joint filing status" means the same as that term is defined in Section 59-10-1018. Enrolled Copy H.B. 54
185+148the dollar amount listed in Subsection (4)(c) is equal to the product of:
186+149 (i) the dollar amount listed in Subsection (4)(a); and
187+150 (ii) two.
188+151 (d) For purposes of Subsection (5)(a), the commission shall calculate the consumer
189+152price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
190+153 (6) (a) For a taxable year beginning on or after January 1, 2022, the commission shall
191+154increase annually the Utah personal exemption amount listed in Subsection (1)(g) by a
192+155percentage equal to the percentage by which the consumer price index for the preceding
193+156calendar year exceeds the consumer price index for calendar year 2020.
194+157 (b) After the commission increases the Utah personal exemption amount as described
195+158in Subsection (6)(a), the commission shall round the Utah personal exemption amount to the
196+159nearest whole dollar.
197+160 (c) For purposes of Subsection (6)(a), the commission shall calculate the consumer
198+161price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
199+162 Section 5. Section 59-10-1042 is amended to read:
200+163 59-10-1042. Nonrefundable tax credit for social security benefits.
201+164 (1) As used in this section:
202+165 (a) "Head of household filing status" means the same as that term is defined in Section
203+16659-10-1018.
204+167 (b) "Joint filing status" means the same as that term is defined in Section 59-10-1018.
205+168 (c) "Married filing separately status" means a married individual who:
206+169 (i) does not file a single federal individual income tax return jointly with that married
207+170individual's spouse for the taxable year; and
208+171 (ii) files a single federal individual income tax return for the taxable year.
209+172 (d) "Modified adjusted gross income" means the sum of the following for a claimant
210+173or, if the claimant's return under this chapter is allowed a joint filing status, the claimant and
211+174the claimant's spouse:
212+175 (i) adjusted gross income for the taxable year for which a tax credit is claimed under
213+176this section;
214+177 (ii) any interest income that is not included in adjusted gross income for the taxable
215+178year described in Subsection (1)(d)(i); and 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
198216 - 7 -
199-169 (c) "Married filing separately status" means a married individual who:
200-170 (i) does not file a single federal individual income tax return jointly with that married
201-171individual's spouse for the taxable year; and
202-172 (ii) files a single federal individual income tax return for the taxable year.
203-173 (d) "Modified adjusted gross income" means the sum of the following for a claimant
204-174or, if the claimant's return under this chapter is allowed a joint filing status, the claimant and
205-175the claimant's spouse:
206-176 (i) adjusted gross income for the taxable year for which a tax credit is claimed under
207-177this section;
208-178 (ii) any interest income that is not included in adjusted gross income for the taxable
209-179year described in Subsection (1)(d)(i); and
210-180 (iii) any addition to adjusted gross income required by Section 59-10-114 for the
211-181taxable year described in Subsection (1)(d)(i).
212-182 (e) "Single filing status" means a single individual who files a single federal individual
213-183income tax return for the taxable year.
214-184 (f) "Social security benefit" means an amount received by a claimant as a monthly
215-185benefit in accordance with the Social Security Act, 42 U.S.C. Sec. 401 et seq.
216-186 (2) Except as provided in Section 59-10-1002.2 and Subsections (3) and (4), each
217-187claimant on a return that receives a social security benefit may claim a nonrefundable tax credit
218-188against taxes otherwise due under this part equal to the product of:
219-189 (a) the percentage listed in Subsection 59-10-104(2); and
220-190 (b) the claimant's social security benefit that is included in adjusted gross income on
221-191the claimant's federal income tax return for the taxable year.
222-192 (3) A claimant may not:
223-193 (a) carry forward or carry back the amount of a tax credit under this section that
224-194exceeds the claimant's tax liability for the taxable year; or
225-195 (b) claim a tax credit under this section for a taxable year if a tax credit under Section
226-19659-10-1019 is claimed on the claimant's return for the same taxable year. H.B. 54 Enrolled Copy
217+179 (iii) any addition to adjusted gross income required by Section 59-10-114 for the
218+180taxable year described in Subsection (1)(d)(i).
219+181 (e) "Single filing status" means a single individual who files a single federal individual
220+182income tax return for the taxable year.
221+183 (f) "Social security benefit" means an amount received by a claimant as a monthly
222+184benefit in accordance with the Social Security Act, 42 U.S.C. Sec. 401 et seq.
223+185 (2) Except as provided in Section 59-10-1002.2 and Subsections (3) and (4), each
224+186claimant on a return that receives a social security benefit may claim a nonrefundable tax credit
225+187against taxes otherwise due under this part equal to the product of:
226+188 (a) the percentage listed in Subsection 59-10-104(2); and
227+189 (b) the claimant's social security benefit that is included in adjusted gross income on
228+190the claimant's federal income tax return for the taxable year.
229+191 (3) A claimant may not:
230+192 (a) carry forward or carry back the amount of a tax credit under this section that
231+193exceeds the claimant's tax liability for the taxable year; or
232+194 (b) claim a tax credit under this section for a taxable year if a tax credit under Section
233+19559-10-1019 is claimed on the claimant's return for the same taxable year.
234+196 (4) The tax credit allowed by Subsection (2) claimed on a return filed under this part
235+197shall be reduced by $.025 for each dollar by which modified adjusted gross income for
236+198purposes of the return exceeds:
237+199 (a) for a federal individual income tax return that is allowed a married filing separately
238+200status, [$31,000] $37,500;
239+201 (b) for a federal individual income tax return that is allowed a single filing status,
240+202[$37,000] $45,000;
241+203 (c) for a federal individual income tax return that is allowed a head of household filing
242+204status, [$62,000] $75,000; or
243+205 (d) for a return under this chapter that is allowed a joint filing status, [$62,000]
244+206$75,000.
245+207 (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
246+208commission may make rules governing the calculation and method for claiming the tax credit
247+209described in this section. 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
227248 - 8 -
228-197 (4) The tax credit allowed by Subsection (2) claimed on a return filed under this part
229-198shall be reduced by $.025 for each dollar by which modified adjusted gross income for
230-199purposes of the return exceeds:
231-200 (a) for a federal individual income tax return that is allowed a married filing separately
232-201status, [$31,000] $37,500;
233-202 (b) for a federal individual income tax return that is allowed a single filing status,
234-203[$37,000] $45,000;
235-204 (c) for a federal individual income tax return that is allowed a head of household filing
236-205status, [$62,000] $75,000; or
237-206 (d) for a return under this chapter that is allowed a joint filing status, [$62,000]
238-207$75,000.
239-208 (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
240-209commission may make rules governing the calculation and method for claiming the tax credit
241-210described in this section.
242-211 Section 6. Section 59-10-1044 is amended to read:
243-212 59-10-1044. Nonrefundable earned income tax credit.
244-213 (1) As used in this section:
245-214 (a) "Federal earned income tax credit" means the federal earned income tax credit
246-215described in Section 32, Internal Revenue Code.
247-216 (b) "Qualifying claimant" means a resident or nonresident individual who:
248-217 (i) qualifies for and claims the federal earned income tax credit for the current taxable
249-218year[.]; and
250-219 (ii) earns income in Utah that is reported on a W-2 form.
251-220 (2) Subject to Section 59-10-1002.2, a qualifying claimant may claim a nonrefundable
252-221earned income tax credit equal to the lesser of:
253-222 (a) [15] 20% of the amount of the federal earned income tax credit that the qualifying
254-223claimant was entitled to claim on a federal income tax return for the current taxable year[.]; and
255-224 (b) the total Utah wages reported on the qualifying claimant's W-2 form for the current Enrolled Copy H.B. 54
249+210 Section 6. Section 59-10-1044 is amended to read:
250+211 59-10-1044. Nonrefundable earned income tax credit.
251+212 (1) As used in this section:
252+213 (a) "Federal earned income tax credit" means the federal earned income tax credit
253+214described in Section 32, Internal Revenue Code.
254+215 (b) "Qualifying claimant" means a resident or nonresident individual who:
255+216 (i) qualifies for and claims the federal earned income tax credit for the current taxable
256+217year[.]; and
257+218 (ii) earns income in Utah that is reported on a W-2 form.
258+219 (2) Subject to Section 59-10-1002.2, a qualifying claimant may claim a nonrefundable
259+220earned income tax credit equal to the lesser of:
260+221 (a) [15] 20% of the amount of the federal earned income tax credit that the qualifying
261+222claimant was entitled to claim on a federal income tax return for the current taxable year[.]; and
262+223 (b) the total Utah wages reported on the qualifying claimant's W-2 form for the current
263+224taxable year.
264+225 (3) A qualifying claimant may not carry forward or carry back the amount of the earned
265+226income tax credit that exceeds the qualifying claimant's tax liability.
266+227 Section 7. Section 59-12-102 is amended to read:
267+228 59-12-102. Definitions.
268+229 As used in this chapter:
269+230 (1) "800 service" means a telecommunications service that:
270+231 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
271+232 (b) is typically marketed:
272+233 (i) under the name 800 toll-free calling;
273+234 (ii) under the name 855 toll-free calling;
274+235 (iii) under the name 866 toll-free calling;
275+236 (iv) under the name 877 toll-free calling;
276+237 (v) under the name 888 toll-free calling; or
277+238 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
278+239Federal Communications Commission.
279+240 (2) (a) "900 service" means an inbound toll telecommunications service that: 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
256280 - 9 -
257-225taxable year.
258-226 (3) A qualifying claimant may not carry forward or carry back the amount of the earned
259-227income tax credit that exceeds the qualifying claimant's tax liability.
260-228 Section 7. Section 59-12-102 is amended to read:
261-229 59-12-102. Definitions.
262-230 As used in this chapter:
263-231 (1) "800 service" means a telecommunications service that:
264-232 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
265-233 (b) is typically marketed:
266-234 (i) under the name 800 toll-free calling;
267-235 (ii) under the name 855 toll-free calling;
268-236 (iii) under the name 866 toll-free calling;
269-237 (iv) under the name 877 toll-free calling;
270-238 (v) under the name 888 toll-free calling; or
271-239 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
272-240Federal Communications Commission.
273-241 (2) (a) "900 service" means an inbound toll telecommunications service that:
274-242 (i) a subscriber purchases;
275-243 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
276-244the subscriber's:
277-245 (A) prerecorded announcement; or
278-246 (B) live service; and
279-247 (iii) is typically marketed:
280-248 (A) under the name 900 service; or
281-249 (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
282-250Communications Commission.
283-251 (b) "900 service" does not include a charge for:
284-252 (i) a collection service a seller of a telecommunications service provides to a H.B. 54 Enrolled Copy
281+241 (i) a subscriber purchases;
282+242 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
283+243the subscriber's:
284+244 (A) prerecorded announcement; or
285+245 (B) live service; and
286+246 (iii) is typically marketed:
287+247 (A) under the name 900 service; or
288+248 (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
289+249Communications Commission.
290+250 (b) "900 service" does not include a charge for:
291+251 (i) a collection service a seller of a telecommunications service provides to a
292+252subscriber; or
293+253 (ii) the following a subscriber sells to the subscriber's customer:
294+254 (A) a product; or
295+255 (B) a service.
296+256 (3) (a) "Admission or user fees" includes season passes.
297+257 (b) "Admission or user fees" does not include:
298+258 (i) annual membership dues to private organizations; or
299+259 (ii) a lesson, including a lesson that involves as part of the lesson equipment or a
300+260facility listed in Subsection 59-12-103(1)(f).
301+261 (4) "Affiliate" or "affiliated person" means a person that, with respect to another
302+262person:
303+263 (a) has an ownership interest of more than 5%, whether direct or indirect, in that other
304+264person; or
305+265 (b) is related to the other person because a third person, or a group of third persons who
306+266are affiliated persons with respect to each other, holds an ownership interest of more than 5%,
307+267whether direct or indirect, in the related persons.
308+268 (5) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
309+269November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
310+270Agreement after November 12, 2002.
311+271 (6) "Agreement combined tax rate" means the sum of the tax rates: 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
285312 - 10 -
286-253subscriber; or
287-254 (ii) the following a subscriber sells to the subscriber's customer:
288-255 (A) a product; or
289-256 (B) a service.
290-257 (3) (a) "Admission or user fees" includes season passes.
291-258 (b) "Admission or user fees" does not include:
292-259 (i) annual membership dues to private organizations; or
293-260 (ii) a lesson, including a lesson that involves as part of the lesson equipment or a
294-261facility listed in Subsection 59-12-103(1)(f).
295-262 (4) "Affiliate" or "affiliated person" means a person that, with respect to another
296-263person:
297-264 (a) has an ownership interest of more than 5%, whether direct or indirect, in that other
298-265person; or
299-266 (b) is related to the other person because a third person, or a group of third persons who
300-267are affiliated persons with respect to each other, holds an ownership interest of more than 5%,
301-268whether direct or indirect, in the related persons.
302-269 (5) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
303-270November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
304-271Agreement after November 12, 2002.
305-272 (6) "Agreement combined tax rate" means the sum of the tax rates:
306-273 (a) listed under Subsection (7); and
307-274 (b) that are imposed within a local taxing jurisdiction.
308-275 (7) "Agreement sales and use tax" means a tax imposed under:
309-276 (a) Subsection 59-12-103(2)(a)(i)(A);
310-277 (b) Subsection 59-12-103(2)(b)(i);
311-278 [(c) Subsection 59-12-103(2)(c)(i);]
312-279 [(d)] (c) Subsection 59-12-103(2)(d);
313-280 [(e)] (d) Subsection 59-12-103(2)(e)(i)(A)(I); Enrolled Copy H.B. 54
313+272 (a) listed under Subsection (7); and
314+273 (b) that are imposed within a local taxing jurisdiction.
315+274 (7) "Agreement sales and use tax" means a tax imposed under:
316+275 (a) Subsection 59-12-103(2)(a)(i)(A);
317+276 (b) Subsection 59-12-103(2)(b)(i);
318+277 [(c) Subsection 59-12-103(2)(c)(i);]
319+278 [(d)] (c) Subsection 59-12-103(2)(d);
320+279 [(e)] (d) Subsection 59-12-103(2)(e)(i)(A)(I);
321+280 [(f)] (e) Section 59-12-204;
322+281 [(g)] (f) Section 59-12-401;
323+282 [(h)] (g) Section 59-12-402;
324+283 [(i)] (h) Section 59-12-402.1;
325+284 [(j)] (i) Section 59-12-703;
326+285 [(k)] (j) Section 59-12-802;
327+286 [(l)] (k) Section 59-12-804;
328+287 [(m)] (l) Section 59-12-1102;
329+288 [(n)] (m) Section 59-12-1302;
330+289 [(o)] (n) Section 59-12-1402;
331+290 [(p)] (o) Section 59-12-1802;
332+291 [(q)] (p) Section 59-12-2003;
333+292 [(r)] (q) Section 59-12-2103;
334+293 [(s)] (r) Section 59-12-2213;
335+294 [(t)] (s) Section 59-12-2214;
336+295 [(u)] (t) Section 59-12-2215;
337+296 [(v)] (u) Section 59-12-2216;
338+297 [(w)] (v) Section 59-12-2217;
339+298 [(x)] (w) Section 59-12-2218;
340+299 [(y)] (x) Section 59-12-2219; or
341+300 [(z)] (y) Section 59-12-2220.
342+301 (8) "Aircraft" means the same as that term is defined in Section 72-10-102.
343+302 (9) "Aircraft maintenance, repair, and overhaul provider" means a business entity: 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
314344 - 11 -
315-281 [(f)] (e) Section 59-12-204;
316-282 [(g)] (f) Section 59-12-401;
317-283 [(h)] (g) Section 59-12-402;
318-284 [(i)] (h) Section 59-12-402.1;
319-285 [(j)] (i) Section 59-12-703;
320-286 [(k)] (j) Section 59-12-802;
321-287 [(l)] (k) Section 59-12-804;
322-288 [(m)] (l) Section 59-12-1102;
323-289 [(n)] (m) Section 59-12-1302;
324-290 [(o)] (n) Section 59-12-1402;
325-291 [(p)] (o) Section 59-12-1802;
326-292 [(q)] (p) Section 59-12-2003;
327-293 [(r)] (q) Section 59-12-2103;
328-294 [(s)] (r) Section 59-12-2213;
329-295 [(t)] (s) Section 59-12-2214;
330-296 [(u)] (t) Section 59-12-2215;
331-297 [(v)] (u) Section 59-12-2216;
332-298 [(w)] (v) Section 59-12-2217;
333-299 [(x)] (w) Section 59-12-2218;
334-300 [(y)] (x) Section 59-12-2219; or
335-301 [(z)] (y) Section 59-12-2220.
336-302 (8) "Aircraft" means the same as that term is defined in Section 72-10-102.
337-303 (9) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
338-304 (a) except for:
339-305 (i) an airline as defined in Section 59-2-102; or
340-306 (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
341-307includes a corporation that is qualified to do business but is not otherwise doing business in the
342-308state, of an airline; and H.B. 54 Enrolled Copy
345+303 (a) except for:
346+304 (i) an airline as defined in Section 59-2-102; or
347+305 (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
348+306includes a corporation that is qualified to do business but is not otherwise doing business in the
349+307state, of an airline; and
350+308 (b) that has the workers, expertise, and facilities to perform the following, regardless of
351+309whether the business entity performs the following in this state:
352+310 (i) check, diagnose, overhaul, and repair:
353+311 (A) an onboard system of a fixed wing turbine powered aircraft; and
354+312 (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
355+313 (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
356+314engine;
357+315 (iii) perform at least the following maintenance on a fixed wing turbine powered
358+316aircraft:
359+317 (A) an inspection;
360+318 (B) a repair, including a structural repair or modification;
361+319 (C) changing landing gear; and
362+320 (D) addressing issues related to an aging fixed wing turbine powered aircraft;
363+321 (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
364+322completely apply new paint to the fixed wing turbine powered aircraft; and
365+323 (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
366+324results in a change in the fixed wing turbine powered aircraft's certification requirements by the
367+325authority that certifies the fixed wing turbine powered aircraft.
368+326 (10) "Alcoholic beverage" means a beverage that:
369+327 (a) is suitable for human consumption; and
370+328 (b) contains .5% or more alcohol by volume.
371+329 (11) "Alternative energy" means:
372+330 (a) biomass energy;
373+331 (b) geothermal energy;
374+332 (c) hydroelectric energy;
375+333 (d) solar energy; 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
343376 - 12 -
344-309 (b) that has the workers, expertise, and facilities to perform the following, regardless of
345-310whether the business entity performs the following in this state:
346-311 (i) check, diagnose, overhaul, and repair:
347-312 (A) an onboard system of a fixed wing turbine powered aircraft; and
348-313 (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
349-314 (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
350-315engine;
351-316 (iii) perform at least the following maintenance on a fixed wing turbine powered
352-317aircraft:
353-318 (A) an inspection;
354-319 (B) a repair, including a structural repair or modification;
355-320 (C) changing landing gear; and
356-321 (D) addressing issues related to an aging fixed wing turbine powered aircraft;
357-322 (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
358-323completely apply new paint to the fixed wing turbine powered aircraft; and
359-324 (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
360-325results in a change in the fixed wing turbine powered aircraft's certification requirements by the
361-326authority that certifies the fixed wing turbine powered aircraft.
362-327 (10) "Alcoholic beverage" means a beverage that:
363-328 (a) is suitable for human consumption; and
364-329 (b) contains .5% or more alcohol by volume.
365-330 (11) "Alternative energy" means:
366-331 (a) biomass energy;
367-332 (b) geothermal energy;
368-333 (c) hydroelectric energy;
369-334 (d) solar energy;
370-335 (e) wind energy; or
371-336 (f) energy that is derived from: Enrolled Copy H.B. 54
377+334 (e) wind energy; or
378+335 (f) energy that is derived from:
379+336 (i) coal-to-liquids;
380+337 (ii) nuclear fuel;
381+338 (iii) oil-impregnated diatomaceous earth;
382+339 (iv) oil sands;
383+340 (v) oil shale;
384+341 (vi) petroleum coke; or
385+342 (vii) waste heat from:
386+343 (A) an industrial facility; or
387+344 (B) a power station in which an electric generator is driven through a process in which
388+345water is heated, turns into steam, and spins a steam turbine.
389+346 (12) (a) Subject to Subsection (12)(b), "alternative energy electricity production
390+347facility" means a facility that:
391+348 (i) uses alternative energy to produce electricity; and
392+349 (ii) has a production capacity of two megawatts or greater.
393+350 (b) A facility is an alternative energy electricity production facility regardless of
394+351whether the facility is:
395+352 (i) connected to an electric grid; or
396+353 (ii) located on the premises of an electricity consumer.
397+354 (13) (a) "Ancillary service" means a service associated with, or incidental to, the
398+355provision of telecommunications service.
399+356 (b) "Ancillary service" includes:
400+357 (i) a conference bridging service;
401+358 (ii) a detailed communications billing service;
402+359 (iii) directory assistance;
403+360 (iv) a vertical service; or
404+361 (v) a voice mail service.
405+362 (14) "Area agency on aging" means the same as that term is defined in Section
406+36362A-3-101.
407+364 (15) "Assisted amusement device" means an amusement device, skill device, or ride 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
372408 - 13 -
373-337 (i) coal-to-liquids;
374-338 (ii) nuclear fuel;
375-339 (iii) oil-impregnated diatomaceous earth;
376-340 (iv) oil sands;
377-341 (v) oil shale;
378-342 (vi) petroleum coke; or
379-343 (vii) waste heat from:
380-344 (A) an industrial facility; or
381-345 (B) a power station in which an electric generator is driven through a process in which
382-346water is heated, turns into steam, and spins a steam turbine.
383-347 (12) (a) Subject to Subsection (12)(b), "alternative energy electricity production
384-348facility" means a facility that:
385-349 (i) uses alternative energy to produce electricity; and
386-350 (ii) has a production capacity of two megawatts or greater.
387-351 (b) A facility is an alternative energy electricity production facility regardless of
388-352whether the facility is:
389-353 (i) connected to an electric grid; or
390-354 (ii) located on the premises of an electricity consumer.
391-355 (13) (a) "Ancillary service" means a service associated with, or incidental to, the
392-356provision of telecommunications service.
393-357 (b) "Ancillary service" includes:
394-358 (i) a conference bridging service;
395-359 (ii) a detailed communications billing service;
396-360 (iii) directory assistance;
397-361 (iv) a vertical service; or
398-362 (v) a voice mail service.
399-363 (14) "Area agency on aging" means the same as that term is defined in Section
400-36462A-3-101. H.B. 54 Enrolled Copy
409+365device that is started and stopped by an individual:
410+366 (a) who is not the purchaser or renter of the right to use or operate the amusement
411+367device, skill device, or ride device; and
412+368 (b) at the direction of the seller of the right to use the amusement device, skill device,
413+369or ride device.
414+370 (16) "Assisted cleaning or washing of tangible personal property" means cleaning or
415+371washing of tangible personal property if the cleaning or washing labor is primarily performed
416+372by an individual:
417+373 (a) who is not the purchaser of the cleaning or washing of the tangible personal
418+374property; and
419+375 (b) at the direction of the seller of the cleaning or washing of the tangible personal
420+376property.
421+377 (17) "Authorized carrier" means:
422+378 (a) in the case of vehicles operated over public highways, the holder of credentials
423+379indicating that the vehicle is or will be operated pursuant to both the International Registration
424+380Plan and the International Fuel Tax Agreement;
425+381 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
426+382certificate or air carrier's operating certificate; or
427+383 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
428+384stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
429+385stock in more than one state.
430+386 (18) (a) Except as provided in Subsection (18)(b), "biomass energy" means any of the
431+387following that is used as the primary source of energy to produce fuel or electricity:
432+388 (i) material from a plant or tree; or
433+389 (ii) other organic matter that is available on a renewable basis, including:
434+390 (A) slash and brush from forests and woodlands;
435+391 (B) animal waste;
436+392 (C) waste vegetable oil;
437+393 (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
438+394wastewater residuals, or through the conversion of a waste material through a nonincineration,
439+395thermal conversion process; 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
401440 - 14 -
402-365 (15) "Assisted amusement device" means an amusement device, skill device, or ride
403-366device that is started and stopped by an individual:
404-367 (a) who is not the purchaser or renter of the right to use or operate the amusement
405-368device, skill device, or ride device; and
406-369 (b) at the direction of the seller of the right to use the amusement device, skill device,
407-370or ride device.
408-371 (16) "Assisted cleaning or washing of tangible personal property" means cleaning or
409-372washing of tangible personal property if the cleaning or washing labor is primarily performed
410-373by an individual:
411-374 (a) who is not the purchaser of the cleaning or washing of the tangible personal
412-375property; and
413-376 (b) at the direction of the seller of the cleaning or washing of the tangible personal
414-377property.
415-378 (17) "Authorized carrier" means:
416-379 (a) in the case of vehicles operated over public highways, the holder of credentials
417-380indicating that the vehicle is or will be operated pursuant to both the International Registration
418-381Plan and the International Fuel Tax Agreement;
419-382 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
420-383certificate or air carrier's operating certificate; or
421-384 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
422-385stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
423-386stock in more than one state.
424-387 (18) (a) Except as provided in Subsection (18)(b), "biomass energy" means any of the
425-388following that is used as the primary source of energy to produce fuel or electricity:
426-389 (i) material from a plant or tree; or
427-390 (ii) other organic matter that is available on a renewable basis, including:
428-391 (A) slash and brush from forests and woodlands;
429-392 (B) animal waste; Enrolled Copy H.B. 54
441+396 (E) aquatic plants; and
442+397 (F) agricultural products.
443+398 (b) "Biomass energy" does not include:
444+399 (i) black liquor; or
445+400 (ii) treated woods.
446+401 (19) (a) "Bundled transaction" means the sale of two or more items of tangible personal
447+402property, products, or services if the tangible personal property, products, or services are:
448+403 (i) distinct and identifiable; and
449+404 (ii) sold for one nonitemized price.
450+405 (b) "Bundled transaction" does not include:
451+406 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
452+407the basis of the selection by the purchaser of the items of tangible personal property included in
453+408the transaction;
454+409 (ii) the sale of real property;
455+410 (iii) the sale of services to real property;
456+411 (iv) the retail sale of tangible personal property and a service if:
457+412 (A) the tangible personal property:
458+413 (I) is essential to the use of the service; and
459+414 (II) is provided exclusively in connection with the service; and
460+415 (B) the service is the true object of the transaction;
461+416 (v) the retail sale of two services if:
462+417 (A) one service is provided that is essential to the use or receipt of a second service;
463+418 (B) the first service is provided exclusively in connection with the second service; and
464+419 (C) the second service is the true object of the transaction;
465+420 (vi) a transaction that includes tangible personal property or a product subject to
466+421taxation under this chapter and tangible personal property or a product that is not subject to
467+422taxation under this chapter if the:
468+423 (A) seller's purchase price of the tangible personal property or product subject to
469+424taxation under this chapter is de minimis; or
470+425 (B) seller's sales price of the tangible personal property or product subject to taxation
471+426under this chapter is de minimis; and 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
430472 - 15 -
431-393 (C) waste vegetable oil;
432-394 (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
433-395wastewater residuals, or through the conversion of a waste material through a nonincineration,
434-396thermal conversion process;
435-397 (E) aquatic plants; and
436-398 (F) agricultural products.
437-399 (b) "Biomass energy" does not include:
438-400 (i) black liquor; or
439-401 (ii) treated woods.
440-402 (19) (a) "Bundled transaction" means the sale of two or more items of tangible personal
441-403property, products, or services if the tangible personal property, products, or services are:
442-404 (i) distinct and identifiable; and
443-405 (ii) sold for one nonitemized price.
444-406 (b) "Bundled transaction" does not include:
445-407 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
446-408the basis of the selection by the purchaser of the items of tangible personal property included in
447-409the transaction;
448-410 (ii) the sale of real property;
449-411 (iii) the sale of services to real property;
450-412 (iv) the retail sale of tangible personal property and a service if:
451-413 (A) the tangible personal property:
452-414 (I) is essential to the use of the service; and
453-415 (II) is provided exclusively in connection with the service; and
454-416 (B) the service is the true object of the transaction;
455-417 (v) the retail sale of two services if:
456-418 (A) one service is provided that is essential to the use or receipt of a second service;
457-419 (B) the first service is provided exclusively in connection with the second service; and
458-420 (C) the second service is the true object of the transaction; H.B. 54 Enrolled Copy
473+427 (vii) the retail sale of tangible personal property that is not subject to taxation under
474+428this chapter and tangible personal property that is subject to taxation under this chapter if:
475+429 (A) that retail sale includes:
476+430 (I) food and food ingredients;
477+431 (II) a drug;
478+432 (III) durable medical equipment;
479+433 (IV) mobility enhancing equipment;
480+434 (V) an over-the-counter drug;
481+435 (VI) a prosthetic device; or
482+436 (VII) a medical supply; and
483+437 (B) subject to Subsection (19)(f):
484+438 (I) the seller's purchase price of the tangible personal property subject to taxation under
485+439this chapter is 50% or less of the seller's total purchase price of that retail sale; or
486+440 (II) the seller's sales price of the tangible personal property subject to taxation under
487+441this chapter is 50% or less of the seller's total sales price of that retail sale.
488+442 (c) (i) For purposes of Subsection (19)(a)(i), tangible personal property, a product, or a
489+443service that is distinct and identifiable does not include:
490+444 (A) packaging that:
491+445 (I) accompanies the sale of the tangible personal property, product, or service; and
492+446 (II) is incidental or immaterial to the sale of the tangible personal property, product, or
493+447service;
494+448 (B) tangible personal property, a product, or a service provided free of charge with the
495+449purchase of another item of tangible personal property, a product, or a service; or
496+450 (C) an item of tangible personal property, a product, or a service included in the
497+451definition of "purchase price."
498+452 (ii) For purposes of Subsection (19)(c)(i)(B), an item of tangible personal property, a
499+453product, or a service is provided free of charge with the purchase of another item of tangible
500+454personal property, a product, or a service if the sales price of the purchased item of tangible
501+455personal property, product, or service does not vary depending on the inclusion of the tangible
502+456personal property, product, or service provided free of charge.
503+457 (d) (i) For purposes of Subsection (19)(a)(ii), property sold for one nonitemized price 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
459504 - 16 -
460-421 (vi) a transaction that includes tangible personal property or a product subject to
461-422taxation under this chapter and tangible personal property or a product that is not subject to
462-423taxation under this chapter if the:
463-424 (A) seller's purchase price of the tangible personal property or product subject to
464-425taxation under this chapter is de minimis; or
465-426 (B) seller's sales price of the tangible personal property or product subject to taxation
466-427under this chapter is de minimis; and
467-428 (vii) the retail sale of tangible personal property that is not subject to taxation under
468-429this chapter and tangible personal property that is subject to taxation under this chapter if:
469-430 (A) that retail sale includes:
470-431 (I) food and food ingredients;
471-432 (II) a drug;
472-433 (III) durable medical equipment;
473-434 (IV) mobility enhancing equipment;
474-435 (V) an over-the-counter drug;
475-436 (VI) a prosthetic device; or
476-437 (VII) a medical supply; and
477-438 (B) subject to Subsection (19)(f):
478-439 (I) the seller's purchase price of the tangible personal property subject to taxation under
479-440this chapter is 50% or less of the seller's total purchase price of that retail sale; or
480-441 (II) the seller's sales price of the tangible personal property subject to taxation under
481-442this chapter is 50% or less of the seller's total sales price of that retail sale.
482-443 (c) (i) For purposes of Subsection (19)(a)(i), tangible personal property, a product, or a
483-444service that is distinct and identifiable does not include:
484-445 (A) packaging that:
485-446 (I) accompanies the sale of the tangible personal property, product, or service; and
486-447 (II) is incidental or immaterial to the sale of the tangible personal property, product, or
487-448service; Enrolled Copy H.B. 54
505+458does not include a price that is separately identified by tangible personal property, product, or
506+459service on the following, regardless of whether the following is in paper format or electronic
507+460format:
508+461 (A) a binding sales document; or
509+462 (B) another supporting sales-related document that is available to a purchaser.
510+463 (ii) For purposes of Subsection (19)(d)(i), a binding sales document or another
511+464supporting sales-related document that is available to a purchaser includes:
512+465 (A) a bill of sale;
513+466 (B) a contract;
514+467 (C) an invoice;
515+468 (D) a lease agreement;
516+469 (E) a periodic notice of rates and services;
517+470 (F) a price list;
518+471 (G) a rate card;
519+472 (H) a receipt; or
520+473 (I) a service agreement.
521+474 (e) (i) For purposes of Subsection (19)(b)(vi), the sales price of tangible personal
522+475property or a product subject to taxation under this chapter is de minimis if:
523+476 (A) the seller's purchase price of the tangible personal property or product is 10% or
524+477less of the seller's total purchase price of the bundled transaction; or
525+478 (B) the seller's sales price of the tangible personal property or product is 10% or less of
526+479the seller's total sales price of the bundled transaction.
527+480 (ii) For purposes of Subsection (19)(b)(vi), a seller:
528+481 (A) shall use the seller's purchase price or the seller's sales price to determine if the
529+482purchase price or sales price of the tangible personal property or product subject to taxation
530+483under this chapter is de minimis; and
531+484 (B) may not use a combination of the seller's purchase price and the seller's sales price
532+485to determine if the purchase price or sales price of the tangible personal property or product
533+486subject to taxation under this chapter is de minimis.
534+487 (iii) For purposes of Subsection (19)(b)(vi), a seller shall use the full term of a service
535+488contract to determine if the sales price of tangible personal property or a product is de minimis. 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
488536 - 17 -
489-449 (B) tangible personal property, a product, or a service provided free of charge with the
490-450purchase of another item of tangible personal property, a product, or a service; or
491-451 (C) an item of tangible personal property, a product, or a service included in the
492-452definition of "purchase price."
493-453 (ii) For purposes of Subsection (19)(c)(i)(B), an item of tangible personal property, a
494-454product, or a service is provided free of charge with the purchase of another item of tangible
495-455personal property, a product, or a service if the sales price of the purchased item of tangible
496-456personal property, product, or service does not vary depending on the inclusion of the tangible
497-457personal property, product, or service provided free of charge.
498-458 (d) (i) For purposes of Subsection (19)(a)(ii), property sold for one nonitemized price
499-459does not include a price that is separately identified by tangible personal property, product, or
500-460service on the following, regardless of whether the following is in paper format or electronic
501-461format:
502-462 (A) a binding sales document; or
503-463 (B) another supporting sales-related document that is available to a purchaser.
504-464 (ii) For purposes of Subsection (19)(d)(i), a binding sales document or another
505-465supporting sales-related document that is available to a purchaser includes:
506-466 (A) a bill of sale;
507-467 (B) a contract;
508-468 (C) an invoice;
509-469 (D) a lease agreement;
510-470 (E) a periodic notice of rates and services;
511-471 (F) a price list;
512-472 (G) a rate card;
513-473 (H) a receipt; or
514-474 (I) a service agreement.
515-475 (e) (i) For purposes of Subsection (19)(b)(vi), the sales price of tangible personal
516-476property or a product subject to taxation under this chapter is de minimis if: H.B. 54 Enrolled Copy
537+489 (f) For purposes of Subsection (19)(b)(vii)(B), a seller may not use a combination of
538+490the seller's purchase price and the seller's sales price to determine if tangible personal property
539+491subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
540+492price of that retail sale.
541+493 (20) "Certified automated system" means software certified by the governing board of
542+494the agreement that:
543+495 (a) calculates the agreement sales and use tax imposed within a local taxing
544+496jurisdiction:
545+497 (i) on a transaction; and
546+498 (ii) in the states that are members of the agreement;
547+499 (b) determines the amount of agreement sales and use tax to remit to a state that is a
548+500member of the agreement; and
549+501 (c) maintains a record of the transaction described in Subsection (20)(a)(i).
550+502 (21) "Certified service provider" means an agent certified:
551+503 (a) by the governing board of the agreement; and
552+504 (b) to perform a seller's sales and use tax functions for an agreement sales and use tax,
553+505as outlined in the contract between the governing board of the agreement and the certified
554+506service provider, other than the seller's obligation under Section 59-12-124 to remit a tax on the
555+507seller's own purchases.
556+508 (22) (a) Subject to Subsection (22)(b), "clothing" means all human wearing apparel
557+509suitable for general use.
558+510 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
559+511commission shall make rules:
560+512 (i) listing the items that constitute "clothing"; and
561+513 (ii) that are consistent with the list of items that constitute "clothing" under the
562+514agreement.
563+515 (23) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
564+516 (24) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
565+517fuels that does not constitute industrial use under Subsection (57) or residential use under
566+518Subsection (112).
567+519 (25) (a) "Common carrier" means a person engaged in or transacting the business of 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
517568 - 18 -
518-477 (A) the seller's purchase price of the tangible personal property or product is 10% or
519-478less of the seller's total purchase price of the bundled transaction; or
520-479 (B) the seller's sales price of the tangible personal property or product is 10% or less of
521-480the seller's total sales price of the bundled transaction.
522-481 (ii) For purposes of Subsection (19)(b)(vi), a seller:
523-482 (A) shall use the seller's purchase price or the seller's sales price to determine if the
524-483purchase price or sales price of the tangible personal property or product subject to taxation
525-484under this chapter is de minimis; and
526-485 (B) may not use a combination of the seller's purchase price and the seller's sales price
527-486to determine if the purchase price or sales price of the tangible personal property or product
528-487subject to taxation under this chapter is de minimis.
529-488 (iii) For purposes of Subsection (19)(b)(vi), a seller shall use the full term of a service
530-489contract to determine if the sales price of tangible personal property or a product is de minimis.
531-490 (f) For purposes of Subsection (19)(b)(vii)(B), a seller may not use a combination of
532-491the seller's purchase price and the seller's sales price to determine if tangible personal property
533-492subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
534-493price of that retail sale.
535-494 (20) "Certified automated system" means software certified by the governing board of
536-495the agreement that:
537-496 (a) calculates the agreement sales and use tax imposed within a local taxing
538-497jurisdiction:
539-498 (i) on a transaction; and
540-499 (ii) in the states that are members of the agreement;
541-500 (b) determines the amount of agreement sales and use tax to remit to a state that is a
542-501member of the agreement; and
543-502 (c) maintains a record of the transaction described in Subsection (20)(a)(i).
544-503 (21) "Certified service provider" means an agent certified:
545-504 (a) by the governing board of the agreement; and Enrolled Copy H.B. 54
569+520transporting passengers, freight, merchandise, or other property for hire within this state.
570+521 (b) (i) "Common carrier" does not include a person that, at the time the person is
571+522traveling to or from that person's place of employment, transports a passenger to or from the
572+523passenger's place of employment.
573+524 (ii) For purposes of Subsection (25)(b)(i), in accordance with Title 63G, Chapter 3,
574+525Utah Administrative Rulemaking Act, the commission may make rules defining what
575+526constitutes a person's place of employment.
576+527 (c) "Common carrier" does not include a person that provides transportation network
577+528services, as defined in Section 13-51-102.
578+529 (26) "Component part" includes:
579+530 (a) poultry, dairy, and other livestock feed, and their components;
580+531 (b) baling ties and twine used in the baling of hay and straw;
581+532 (c) fuel used for providing temperature control of orchards and commercial
582+533greenhouses doing a majority of their business in wholesale sales, and for providing power for
583+534off-highway type farm machinery; and
584+535 (d) feed, seeds, and seedlings.
585+536 (27) "Computer" means an electronic device that accepts information:
586+537 (a) (i) in digital form; or
587+538 (ii) in a form similar to digital form; and
588+539 (b) manipulates that information for a result based on a sequence of instructions.
589+540 (28) "Computer software" means a set of coded instructions designed to cause:
590+541 (a) a computer to perform a task; or
591+542 (b) automatic data processing equipment to perform a task.
592+543 (29) "Computer software maintenance contract" means a contract that obligates a seller
593+544of computer software to provide a customer with:
594+545 (a) future updates or upgrades to computer software;
595+546 (b) support services with respect to computer software; or
596+547 (c) a combination of Subsections (29)(a) and (b).
597+548 (30) (a) "Conference bridging service" means an ancillary service that links two or
598+549more participants of an audio conference call or video conference call.
599+550 (b) "Conference bridging service" may include providing a telephone number as part of 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
546600 - 19 -
547-505 (b) to perform a seller's sales and use tax functions for an agreement sales and use tax,
548-506as outlined in the contract between the governing board of the agreement and the certified
549-507service provider, other than the seller's obligation under Section 59-12-124 to remit a tax on the
550-508seller's own purchases.
551-509 (22) (a) Subject to Subsection (22)(b), "clothing" means all human wearing apparel
552-510suitable for general use.
553-511 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
554-512commission shall make rules:
555-513 (i) listing the items that constitute "clothing"; and
556-514 (ii) that are consistent with the list of items that constitute "clothing" under the
557-515agreement.
558-516 (23) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
559-517 (24) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
560-518fuels that does not constitute industrial use under Subsection (57) or residential use under
561-519Subsection (112).
562-520 (25) (a) "Common carrier" means a person engaged in or transacting the business of
563-521transporting passengers, freight, merchandise, or other property for hire within this state.
564-522 (b) (i) "Common carrier" does not include a person that, at the time the person is
565-523traveling to or from that person's place of employment, transports a passenger to or from the
566-524passenger's place of employment.
567-525 (ii) For purposes of Subsection (25)(b)(i), in accordance with Title 63G, Chapter 3,
568-526Utah Administrative Rulemaking Act, the commission may make rules defining what
569-527constitutes a person's place of employment.
570-528 (c) "Common carrier" does not include a person that provides transportation network
571-529services, as defined in Section 13-51-102.
572-530 (26) "Component part" includes:
573-531 (a) poultry, dairy, and other livestock feed, and their components;
574-532 (b) baling ties and twine used in the baling of hay and straw; H.B. 54 Enrolled Copy
601+551the ancillary service described in Subsection (30)(a).
602+552 (c) "Conference bridging service" does not include a telecommunications service used
603+553to reach the ancillary service described in Subsection (30)(a).
604+554 (31) "Construction materials" means any tangible personal property that will be
605+555converted into real property.
606+556 (32) "Delivered electronically" means delivered to a purchaser by means other than
607+557tangible storage media.
608+558 (33) (a) "Delivery charge" means a charge:
609+559 (i) by a seller of:
610+560 (A) tangible personal property;
611+561 (B) a product transferred electronically; or
612+562 (C) a service; and
613+563 (ii) for preparation and delivery of the tangible personal property, product transferred
614+564electronically, or services described in Subsection (33)(a)(i) to a location designated by the
615+565purchaser.
616+566 (b) "Delivery charge" includes a charge for the following:
617+567 (i) transportation;
618+568 (ii) shipping;
619+569 (iii) postage;
620+570 (iv) handling;
621+571 (v) crating; or
622+572 (vi) packing.
623+573 (34) "Detailed telecommunications billing service" means an ancillary service of
624+574separately stating information pertaining to individual calls on a customer's billing statement.
625+575 (35) "Dietary supplement" means a product, other than tobacco, that:
626+576 (a) is intended to supplement the diet;
627+577 (b) contains one or more of the following dietary ingredients:
628+578 (i) a vitamin;
629+579 (ii) a mineral;
630+580 (iii) an herb or other botanical;
631+581 (iv) an amino acid; 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
575632 - 20 -
576-533 (c) fuel used for providing temperature control of orchards and commercial
577-534greenhouses doing a majority of their business in wholesale sales, and for providing power for
578-535off-highway type farm machinery; and
579-536 (d) feed, seeds, and seedlings.
580-537 (27) "Computer" means an electronic device that accepts information:
581-538 (a) (i) in digital form; or
582-539 (ii) in a form similar to digital form; and
583-540 (b) manipulates that information for a result based on a sequence of instructions.
584-541 (28) "Computer software" means a set of coded instructions designed to cause:
585-542 (a) a computer to perform a task; or
586-543 (b) automatic data processing equipment to perform a task.
587-544 (29) "Computer software maintenance contract" means a contract that obligates a seller
588-545of computer software to provide a customer with:
589-546 (a) future updates or upgrades to computer software;
590-547 (b) support services with respect to computer software; or
591-548 (c) a combination of Subsections (29)(a) and (b).
592-549 (30) (a) "Conference bridging service" means an ancillary service that links two or
593-550more participants of an audio conference call or video conference call.
594-551 (b) "Conference bridging service" may include providing a telephone number as part of
595-552the ancillary service described in Subsection (30)(a).
596-553 (c) "Conference bridging service" does not include a telecommunications service used
597-554to reach the ancillary service described in Subsection (30)(a).
598-555 (31) "Construction materials" means any tangible personal property that will be
599-556converted into real property.
600-557 (32) "Delivered electronically" means delivered to a purchaser by means other than
601-558tangible storage media.
602-559 (33) (a) "Delivery charge" means a charge:
603-560 (i) by a seller of: Enrolled Copy H.B. 54
633+582 (v) a dietary substance for use by humans to supplement the diet by increasing the total
634+583dietary intake; or
635+584 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
636+585described in Subsections (35)(b)(i) through (v);
637+586 (c) (i) except as provided in Subsection (35)(c)(ii), is intended for ingestion in:
638+587 (A) tablet form;
639+588 (B) capsule form;
640+589 (C) powder form;
641+590 (D) softgel form;
642+591 (E) gelcap form; or
643+592 (F) liquid form; or
644+593 (ii) if the product is not intended for ingestion in a form described in Subsections
645+594(35)(c)(i)(A) through (F), is not represented:
646+595 (A) as conventional food; and
647+596 (B) for use as a sole item of:
648+597 (I) a meal; or
649+598 (II) the diet; and
650+599 (d) is required to be labeled as a dietary supplement:
651+600 (i) identifiable by the "Supplemental Facts" box found on the label; and
652+601 (ii) as required by 21 C.F.R. Sec. 101.36.
653+602 (36) (a) "Digital audio work" means a work that results from the fixation of a series of
654+603musical, spoken, or other sounds.
655+604 (b) "Digital audio work" includes a ringtone.
656+605 (37) "Digital audio-visual work" means a series of related images which, when shown
657+606in succession, imparts an impression of motion, together with accompanying sounds, if any.
658+607 (38) "Digital book" means a work that is generally recognized in the ordinary and usual
659+608sense as a book.
660+609 (39) (a) "Direct mail" means printed material delivered or distributed by United States
661+610mail or other delivery service:
662+611 (i) to:
663+612 (A) a mass audience; or 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
604664 - 21 -
605-561 (A) tangible personal property;
606-562 (B) a product transferred electronically; or
607-563 (C) a service; and
608-564 (ii) for preparation and delivery of the tangible personal property, product transferred
609-565electronically, or services described in Subsection (33)(a)(i) to a location designated by the
610-566purchaser.
611-567 (b) "Delivery charge" includes a charge for the following:
612-568 (i) transportation;
613-569 (ii) shipping;
614-570 (iii) postage;
615-571 (iv) handling;
616-572 (v) crating; or
617-573 (vi) packing.
618-574 (34) "Detailed telecommunications billing service" means an ancillary service of
619-575separately stating information pertaining to individual calls on a customer's billing statement.
620-576 (35) "Dietary supplement" means a product, other than tobacco, that:
621-577 (a) is intended to supplement the diet;
622-578 (b) contains one or more of the following dietary ingredients:
623-579 (i) a vitamin;
624-580 (ii) a mineral;
625-581 (iii) an herb or other botanical;
626-582 (iv) an amino acid;
627-583 (v) a dietary substance for use by humans to supplement the diet by increasing the total
628-584dietary intake; or
629-585 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
630-586described in Subsections (35)(b)(i) through (v);
631-587 (c) (i) except as provided in Subsection (35)(c)(ii), is intended for ingestion in:
632-588 (A) tablet form; H.B. 54 Enrolled Copy
665+613 (B) addressees on a mailing list provided:
666+614 (I) by a purchaser of the mailing list; or
667+615 (II) at the discretion of the purchaser of the mailing list; and
668+616 (ii) if the cost of the printed material is not billed directly to the recipients.
669+617 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
670+618purchaser to a seller of direct mail for inclusion in a package containing the printed material.
671+619 (c) "Direct mail" does not include multiple items of printed material delivered to a
672+620single address.
673+621 (40) "Directory assistance" means an ancillary service of providing:
674+622 (a) address information; or
675+623 (b) telephone number information.
676+624 (41) (a) "Disposable home medical equipment or supplies" means medical equipment
677+625or supplies that:
678+626 (i) cannot withstand repeated use; and
679+627 (ii) are purchased by, for, or on behalf of a person other than:
680+628 (A) a health care facility as defined in Section 26-21-2;
681+629 (B) a health care provider as defined in Section 78B-3-403;
682+630 (C) an office of a health care provider described in Subsection (41)(a)(ii)(B); or
683+631 (D) a person similar to a person described in Subsections (41)(a)(ii)(A) through (C).
684+632 (b) "Disposable home medical equipment or supplies" does not include:
685+633 (i) a drug;
686+634 (ii) durable medical equipment;
687+635 (iii) a hearing aid;
688+636 (iv) a hearing aid accessory;
689+637 (v) mobility enhancing equipment; or
690+638 (vi) tangible personal property used to correct impaired vision, including:
691+639 (A) eyeglasses; or
692+640 (B) contact lenses.
693+641 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
694+642commission may by rule define what constitutes medical equipment or supplies.
695+643 (42) "Drilling equipment manufacturer" means a facility: 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
633696 - 22 -
634-589 (B) capsule form;
635-590 (C) powder form;
636-591 (D) softgel form;
637-592 (E) gelcap form; or
638-593 (F) liquid form; or
639-594 (ii) if the product is not intended for ingestion in a form described in Subsections
640-595(35)(c)(i)(A) through (F), is not represented:
641-596 (A) as conventional food; and
642-597 (B) for use as a sole item of:
643-598 (I) a meal; or
644-599 (II) the diet; and
645-600 (d) is required to be labeled as a dietary supplement:
646-601 (i) identifiable by the "Supplemental Facts" box found on the label; and
647-602 (ii) as required by 21 C.F.R. Sec. 101.36.
648-603 (36) (a) "Digital audio work" means a work that results from the fixation of a series of
649-604musical, spoken, or other sounds.
650-605 (b) "Digital audio work" includes a ringtone.
651-606 (37) "Digital audio-visual work" means a series of related images which, when shown
652-607in succession, imparts an impression of motion, together with accompanying sounds, if any.
653-608 (38) "Digital book" means a work that is generally recognized in the ordinary and usual
654-609sense as a book.
655-610 (39) (a) "Direct mail" means printed material delivered or distributed by United States
656-611mail or other delivery service:
657-612 (i) to:
658-613 (A) a mass audience; or
659-614 (B) addressees on a mailing list provided:
660-615 (I) by a purchaser of the mailing list; or
661-616 (II) at the discretion of the purchaser of the mailing list; and Enrolled Copy H.B. 54
697+644 (a) located in the state;
698+645 (b) with respect to which 51% or more of the manufacturing activities of the facility
699+646consist of manufacturing component parts of drilling equipment;
700+647 (c) that uses pressure of 800,000 or more pounds per square inch as part of the
701+648manufacturing process; and
702+649 (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
703+650manufacturing process.
704+651 (43) (a) "Drug" means a compound, substance, or preparation, or a component of a
705+652compound, substance, or preparation that is:
706+653 (i) recognized in:
707+654 (A) the official United States Pharmacopoeia;
708+655 (B) the official Homeopathic Pharmacopoeia of the United States;
709+656 (C) the official National Formulary; or
710+657 (D) a supplement to a publication listed in Subsections (43)(a)(i)(A) through (C);
711+658 (ii) intended for use in the:
712+659 (A) diagnosis of disease;
713+660 (B) cure of disease;
714+661 (C) mitigation of disease;
715+662 (D) treatment of disease; or
716+663 (E) prevention of disease; or
717+664 (iii) intended to affect:
718+665 (A) the structure of the body; or
719+666 (B) any function of the body.
720+667 (b) "Drug" does not include:
721+668 (i) food and food ingredients;
722+669 (ii) a dietary supplement;
723+670 (iii) an alcoholic beverage; or
724+671 (iv) a prosthetic device.
725+672 (44) (a) Except as provided in Subsection (44)(c), "durable medical equipment" means
726+673equipment that:
727+674 (i) can withstand repeated use; 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
662728 - 23 -
663-617 (ii) if the cost of the printed material is not billed directly to the recipients.
664-618 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
665-619purchaser to a seller of direct mail for inclusion in a package containing the printed material.
666-620 (c) "Direct mail" does not include multiple items of printed material delivered to a
667-621single address.
668-622 (40) "Directory assistance" means an ancillary service of providing:
669-623 (a) address information; or
670-624 (b) telephone number information.
671-625 (41) (a) "Disposable home medical equipment or supplies" means medical equipment
672-626or supplies that:
673-627 (i) cannot withstand repeated use; and
674-628 (ii) are purchased by, for, or on behalf of a person other than:
675-629 (A) a health care facility as defined in Section 26-21-2;
676-630 (B) a health care provider as defined in Section 78B-3-403;
677-631 (C) an office of a health care provider described in Subsection (41)(a)(ii)(B); or
678-632 (D) a person similar to a person described in Subsections (41)(a)(ii)(A) through (C).
679-633 (b) "Disposable home medical equipment or supplies" does not include:
680-634 (i) a drug;
681-635 (ii) durable medical equipment;
682-636 (iii) a hearing aid;
683-637 (iv) a hearing aid accessory;
684-638 (v) mobility enhancing equipment; or
685-639 (vi) tangible personal property used to correct impaired vision, including:
686-640 (A) eyeglasses; or
687-641 (B) contact lenses.
688-642 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
689-643commission may by rule define what constitutes medical equipment or supplies.
690-644 (42) "Drilling equipment manufacturer" means a facility: H.B. 54 Enrolled Copy
729+675 (ii) is primarily and customarily used to serve a medical purpose;
730+676 (iii) generally is not useful to a person in the absence of illness or injury; and
731+677 (iv) is not worn in or on the body.
732+678 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
733+679equipment described in Subsection (44)(a).
734+680 (c) "Durable medical equipment" does not include mobility enhancing equipment.
735+681 (45) "Electronic" means:
736+682 (a) relating to technology; and
737+683 (b) having:
738+684 (i) electrical capabilities;
739+685 (ii) digital capabilities;
740+686 (iii) magnetic capabilities;
741+687 (iv) wireless capabilities;
742+688 (v) optical capabilities;
743+689 (vi) electromagnetic capabilities; or
744+690 (vii) capabilities similar to Subsections (45)(b)(i) through (vi).
745+691 (46) "Electronic financial payment service" means an establishment:
746+692 (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
747+693Clearinghouse Activities, of the 2012 North American Industry Classification System of the
748+694federal Executive Office of the President, Office of Management and Budget; and
749+695 (b) that performs electronic financial payment services.
750+696 (47) "Employee" means the same as that term is defined in Section 59-10-401.
751+697 (48) "Fixed guideway" means a public transit facility that uses and occupies:
752+698 (a) rail for the use of public transit; or
753+699 (b) a separate right-of-way for the use of public transit.
754+700 (49) "Fixed wing turbine powered aircraft" means an aircraft that:
755+701 (a) is powered by turbine engines;
756+702 (b) operates on jet fuel; and
757+703 (c) has wings that are permanently attached to the fuselage of the aircraft.
758+704 (50) "Fixed wireless service" means a telecommunications service that provides radio
759+705communication between fixed points. 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
691760 - 24 -
692-645 (a) located in the state;
693-646 (b) with respect to which 51% or more of the manufacturing activities of the facility
694-647consist of manufacturing component parts of drilling equipment;
695-648 (c) that uses pressure of 800,000 or more pounds per square inch as part of the
696-649manufacturing process; and
697-650 (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
698-651manufacturing process.
699-652 (43) (a) "Drug" means a compound, substance, or preparation, or a component of a
700-653compound, substance, or preparation that is:
701-654 (i) recognized in:
702-655 (A) the official United States Pharmacopoeia;
703-656 (B) the official Homeopathic Pharmacopoeia of the United States;
704-657 (C) the official National Formulary; or
705-658 (D) a supplement to a publication listed in Subsections (43)(a)(i)(A) through (C);
706-659 (ii) intended for use in the:
707-660 (A) diagnosis of disease;
708-661 (B) cure of disease;
709-662 (C) mitigation of disease;
710-663 (D) treatment of disease; or
711-664 (E) prevention of disease; or
712-665 (iii) intended to affect:
713-666 (A) the structure of the body; or
714-667 (B) any function of the body.
715-668 (b) "Drug" does not include:
716-669 (i) food and food ingredients;
717-670 (ii) a dietary supplement;
718-671 (iii) an alcoholic beverage; or
719-672 (iv) a prosthetic device. Enrolled Copy H.B. 54
761+706 (51) (a) "Food and food ingredients" means substances:
762+707 (i) regardless of whether the substances are in:
763+708 (A) liquid form;
764+709 (B) concentrated form;
765+710 (C) solid form;
766+711 (D) frozen form;
767+712 (E) dried form; or
768+713 (F) dehydrated form; and
769+714 (ii) that are:
770+715 (A) sold for:
771+716 (I) ingestion by humans; or
772+717 (II) chewing by humans; and
773+718 (B) consumed for the substance's:
774+719 (I) taste; or
775+720 (II) nutritional value.
776+721 (b) "Food and food ingredients" includes an item described in Subsection (96)(b)(iii).
777+722 (c) "Food and food ingredients" does not include:
778+723 (i) an alcoholic beverage;
779+724 (ii) tobacco; or
780+725 (iii) prepared food.
781+726 (52) (a) "Fundraising sales" means sales:
782+727 (i) (A) made by a school; or
783+728 (B) made by a school student;
784+729 (ii) that are for the purpose of raising funds for the school to purchase equipment,
785+730materials, or provide transportation; and
786+731 (iii) that are part of an officially sanctioned school activity.
787+732 (b) For purposes of Subsection (52)(a)(iii), "officially sanctioned school activity"
788+733means a school activity:
789+734 (i) that is conducted in accordance with a formal policy adopted by the school or school
790+735district governing the authorization and supervision of fundraising activities;
791+736 (ii) that does not directly or indirectly compensate an individual teacher or other 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
720792 - 25 -
721-673 (44) (a) Except as provided in Subsection (44)(c), "durable medical equipment" means
722-674equipment that:
723-675 (i) can withstand repeated use;
724-676 (ii) is primarily and customarily used to serve a medical purpose;
725-677 (iii) generally is not useful to a person in the absence of illness or injury; and
726-678 (iv) is not worn in or on the body.
727-679 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
728-680equipment described in Subsection (44)(a).
729-681 (c) "Durable medical equipment" does not include mobility enhancing equipment.
730-682 (45) "Electronic" means:
731-683 (a) relating to technology; and
732-684 (b) having:
733-685 (i) electrical capabilities;
734-686 (ii) digital capabilities;
735-687 (iii) magnetic capabilities;
736-688 (iv) wireless capabilities;
737-689 (v) optical capabilities;
738-690 (vi) electromagnetic capabilities; or
739-691 (vii) capabilities similar to Subsections (45)(b)(i) through (vi).
740-692 (46) "Electronic financial payment service" means an establishment:
741-693 (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
742-694Clearinghouse Activities, of the 2012 North American Industry Classification System of the
743-695federal Executive Office of the President, Office of Management and Budget; and
744-696 (b) that performs electronic financial payment services.
745-697 (47) "Employee" means the same as that term is defined in Section 59-10-401.
746-698 (48) "Fixed guideway" means a public transit facility that uses and occupies:
747-699 (a) rail for the use of public transit; or
748-700 (b) a separate right-of-way for the use of public transit. H.B. 54 Enrolled Copy
793+737educational personnel by direct payment, commissions, or payment in kind; and
794+738 (iii) the net or gross revenues from which are deposited in a dedicated account
795+739controlled by the school or school district.
796+740 (53) "Geothermal energy" means energy contained in heat that continuously flows
797+741outward from the earth that is used as the sole source of energy to produce electricity.
798+742 (54) "Governing board of the agreement" means the governing board of the agreement
799+743that is:
800+744 (a) authorized to administer the agreement; and
801+745 (b) established in accordance with the agreement.
802+746 (55) (a) For purposes of Subsection 59-12-104(41), "governmental entity" means:
803+747 (i) the executive branch of the state, including all departments, institutions, boards,
804+748divisions, bureaus, offices, commissions, and committees;
805+749 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
806+750Administrative Office of the Courts, and similar administrative units in the judicial branch;
807+751 (iii) the legislative branch of the state, including the House of Representatives, the
808+752Senate, the Legislative Printing Office, the Office of Legislative Research and General
809+753Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
810+754Analyst;
811+755 (iv) the National Guard;
812+756 (v) an independent entity as defined in Section 63E-1-102; or
813+757 (vi) a political subdivision as defined in Section 17B-1-102.
814+758 (b) "Governmental entity" does not include the state systems of public and higher
815+759education, including:
816+760 (i) a school;
817+761 (ii) the State Board of Education;
818+762 (iii) the Utah Board of Higher Education; or
819+763 (iv) an institution of higher education described in Section 53B-1-102.
820+764 (56) "Hydroelectric energy" means water used as the sole source of energy to produce
821+765electricity.
822+766 (57) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
823+767other fuels: 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
749824 - 26 -
750-701 (49) "Fixed wing turbine powered aircraft" means an aircraft that:
751-702 (a) is powered by turbine engines;
752-703 (b) operates on jet fuel; and
753-704 (c) has wings that are permanently attached to the fuselage of the aircraft.
754-705 (50) "Fixed wireless service" means a telecommunications service that provides radio
755-706communication between fixed points.
756-707 (51) (a) "Food and food ingredients" means substances:
757-708 (i) regardless of whether the substances are in:
758-709 (A) liquid form;
759-710 (B) concentrated form;
760-711 (C) solid form;
761-712 (D) frozen form;
762-713 (E) dried form; or
763-714 (F) dehydrated form; and
764-715 (ii) that are:
765-716 (A) sold for:
766-717 (I) ingestion by humans; or
767-718 (II) chewing by humans; and
768-719 (B) consumed for the substance's:
769-720 (I) taste; or
770-721 (II) nutritional value.
771-722 (b) "Food and food ingredients" includes an item described in Subsection (96)(b)(iii).
772-723 (c) "Food and food ingredients" does not include:
773-724 (i) an alcoholic beverage;
774-725 (ii) tobacco; or
775-726 (iii) prepared food.
776-727 (52) (a) "Fundraising sales" means sales:
777-728 (i) (A) made by a school; or Enrolled Copy H.B. 54
825+768 (a) in mining or extraction of minerals;
826+769 (b) in agricultural operations to produce an agricultural product up to the time of
827+770harvest or placing the agricultural product into a storage facility, including:
828+771 (i) commercial greenhouses;
829+772 (ii) irrigation pumps;
830+773 (iii) farm machinery;
831+774 (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
832+775under Title 41, Chapter 1a, Part 2, Registration; and
833+776 (v) other farming activities;
834+777 (c) in manufacturing tangible personal property at an establishment described in:
835+778 (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
836+779the federal Executive Office of the President, Office of Management and Budget; or
837+780 (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
838+781American Industry Classification System of the federal Executive Office of the President,
839+782Office of Management and Budget;
840+783 (d) by a scrap recycler if:
841+784 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
842+785one or more of the following items into prepared grades of processed materials for use in new
843+786products:
844+787 (A) iron;
845+788 (B) steel;
846+789 (C) nonferrous metal;
847+790 (D) paper;
848+791 (E) glass;
849+792 (F) plastic;
850+793 (G) textile; or
851+794 (H) rubber; and
852+795 (ii) the new products under Subsection (57)(d)(i) would otherwise be made with
853+796nonrecycled materials; or
854+797 (e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
855+798cogeneration facility as defined in Section 54-2-1. 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
778856 - 27 -
779-729 (B) made by a school student;
780-730 (ii) that are for the purpose of raising funds for the school to purchase equipment,
781-731materials, or provide transportation; and
782-732 (iii) that are part of an officially sanctioned school activity.
783-733 (b) For purposes of Subsection (52)(a)(iii), "officially sanctioned school activity"
784-734means a school activity:
785-735 (i) that is conducted in accordance with a formal policy adopted by the school or school
786-736district governing the authorization and supervision of fundraising activities;
787-737 (ii) that does not directly or indirectly compensate an individual teacher or other
788-738educational personnel by direct payment, commissions, or payment in kind; and
789-739 (iii) the net or gross revenues from which are deposited in a dedicated account
790-740controlled by the school or school district.
791-741 (53) "Geothermal energy" means energy contained in heat that continuously flows
792-742outward from the earth that is used as the sole source of energy to produce electricity.
793-743 (54) "Governing board of the agreement" means the governing board of the agreement
794-744that is:
795-745 (a) authorized to administer the agreement; and
796-746 (b) established in accordance with the agreement.
797-747 (55) (a) For purposes of Subsection 59-12-104(41), "governmental entity" means:
798-748 (i) the executive branch of the state, including all departments, institutions, boards,
799-749divisions, bureaus, offices, commissions, and committees;
800-750 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
801-751Administrative Office of the Courts, and similar administrative units in the judicial branch;
802-752 (iii) the legislative branch of the state, including the House of Representatives, the
803-753Senate, the Legislative Printing Office, the Office of Legislative Research and General
804-754Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
805-755Analyst;
806-756 (iv) the National Guard; H.B. 54 Enrolled Copy
857+799 (58) (a) Except as provided in Subsection (58)(b), "installation charge" means a charge
858+800for installing:
859+801 (i) tangible personal property; or
860+802 (ii) a product transferred electronically.
861+803 (b) "Installation charge" does not include a charge for:
862+804 (i) repairs or renovations of:
863+805 (A) tangible personal property; or
864+806 (B) a product transferred electronically; or
865+807 (ii) attaching tangible personal property or a product transferred electronically:
866+808 (A) to other tangible personal property; and
867+809 (B) as part of a manufacturing or fabrication process.
868+810 (59) "Institution of higher education" means an institution of higher education listed in
869+811Section 53B-2-101.
870+812 (60) (a) "Lease" or "rental" means a transfer of possession or control of tangible
871+813personal property or a product transferred electronically for:
872+814 (i) (A) a fixed term; or
873+815 (B) an indeterminate term; and
874+816 (ii) consideration.
875+817 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
876+818amount of consideration may be increased or decreased by reference to the amount realized
877+819upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
878+820Code.
879+821 (c) "Lease" or "rental" does not include:
880+822 (i) a transfer of possession or control of property under a security agreement or
881+823deferred payment plan that requires the transfer of title upon completion of the required
882+824payments;
883+825 (ii) a transfer of possession or control of property under an agreement that requires the
884+826transfer of title:
885+827 (A) upon completion of required payments; and
886+828 (B) if the payment of an option price does not exceed the greater of:
887+829 (I) $100; or 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
807888 - 28 -
808-757 (v) an independent entity as defined in Section 63E-1-102; or
809-758 (vi) a political subdivision as defined in Section 17B-1-102.
810-759 (b) "Governmental entity" does not include the state systems of public and higher
811-760education, including:
812-761 (i) a school;
813-762 (ii) the State Board of Education;
814-763 (iii) the Utah Board of Higher Education; or
815-764 (iv) an institution of higher education described in Section 53B-1-102.
816-765 (56) "Hydroelectric energy" means water used as the sole source of energy to produce
817-766electricity.
818-767 (57) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
819-768other fuels:
820-769 (a) in mining or extraction of minerals;
821-770 (b) in agricultural operations to produce an agricultural product up to the time of
822-771harvest or placing the agricultural product into a storage facility, including:
823-772 (i) commercial greenhouses;
824-773 (ii) irrigation pumps;
825-774 (iii) farm machinery;
826-775 (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
827-776under Title 41, Chapter 1a, Part 2, Registration; and
828-777 (v) other farming activities;
829-778 (c) in manufacturing tangible personal property at an establishment described in:
830-779 (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
831-780the federal Executive Office of the President, Office of Management and Budget; or
832-781 (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
833-782American Industry Classification System of the federal Executive Office of the President,
834-783Office of Management and Budget;
835-784 (d) by a scrap recycler if: Enrolled Copy H.B. 54
889+830 (II) 1% of the total required payments; or
890+831 (iii) providing tangible personal property along with an operator for a fixed period of
891+832time or an indeterminate period of time if the operator is necessary for equipment to perform as
892+833designed.
893+834 (d) For purposes of Subsection (60)(c)(iii), an operator is necessary for equipment to
894+835perform as designed if the operator's duties exceed the:
895+836 (i) set-up of tangible personal property;
896+837 (ii) maintenance of tangible personal property; or
897+838 (iii) inspection of tangible personal property.
898+839 (61) "Lesson" means a fixed period of time for the duration of which a trained
899+840instructor:
900+841 (a) is present with a student in person or by video; and
901+842 (b) actively instructs the student, including by providing observation or feedback.
902+843 (62) "Life science establishment" means an establishment in this state that is classified
903+844under the following NAICS codes of the 2007 North American Industry Classification System
904+845of the federal Executive Office of the President, Office of Management and Budget:
905+846 (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
906+847 (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
907+848Manufacturing; or
908+849 (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
909+850 (63) "Life science research and development facility" means a facility owned, leased,
910+851or rented by a life science establishment if research and development is performed in 51% or
911+852more of the total area of the facility.
912+853 (64) "Load and leave" means delivery to a purchaser by use of a tangible storage media
913+854if the tangible storage media is not physically transferred to the purchaser.
914+855 (65) "Local taxing jurisdiction" means a:
915+856 (a) county that is authorized to impose an agreement sales and use tax;
916+857 (b) city that is authorized to impose an agreement sales and use tax; or
917+858 (c) town that is authorized to impose an agreement sales and use tax.
918+859 (66) "Manufactured home" means the same as that term is defined in Section
919+86015A-1-302. 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
836920 - 29 -
837-785 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
838-786one or more of the following items into prepared grades of processed materials for use in new
839-787products:
840-788 (A) iron;
841-789 (B) steel;
842-790 (C) nonferrous metal;
843-791 (D) paper;
844-792 (E) glass;
845-793 (F) plastic;
846-794 (G) textile; or
847-795 (H) rubber; and
848-796 (ii) the new products under Subsection (57)(d)(i) would otherwise be made with
849-797nonrecycled materials; or
850-798 (e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
851-799cogeneration facility as defined in Section 54-2-1.
852-800 (58) (a) Except as provided in Subsection (58)(b), "installation charge" means a charge
853-801for installing:
854-802 (i) tangible personal property; or
855-803 (ii) a product transferred electronically.
856-804 (b) "Installation charge" does not include a charge for:
857-805 (i) repairs or renovations of:
858-806 (A) tangible personal property; or
859-807 (B) a product transferred electronically; or
860-808 (ii) attaching tangible personal property or a product transferred electronically:
861-809 (A) to other tangible personal property; and
862-810 (B) as part of a manufacturing or fabrication process.
863-811 (59) "Institution of higher education" means an institution of higher education listed in
864-812Section 53B-2-101. H.B. 54 Enrolled Copy
921+861 (67) "Manufacturing facility" means:
922+862 (a) an establishment described in:
923+863 (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
924+864the federal Executive Office of the President, Office of Management and Budget; or
925+865 (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
926+866American Industry Classification System of the federal Executive Office of the President,
927+867Office of Management and Budget;
928+868 (b) a scrap recycler if:
929+869 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
930+870one or more of the following items into prepared grades of processed materials for use in new
931+871products:
932+872 (A) iron;
933+873 (B) steel;
934+874 (C) nonferrous metal;
935+875 (D) paper;
936+876 (E) glass;
937+877 (F) plastic;
938+878 (G) textile; or
939+879 (H) rubber; and
940+880 (ii) the new products under Subsection (67)(b)(i) would otherwise be made with
941+881nonrecycled materials; or
942+882 (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
943+883placed in service on or after May 1, 2006.
944+884 (68) (a) "Marketplace" means a physical or electronic place, platform, or forum where
945+885tangible personal property, a product transferred electronically, or a service is offered for sale.
946+886 (b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a
947+887dedicated sales software application.
948+888 (69) (a) "Marketplace facilitator" means a person, including an affiliate of the person,
949+889that enters into a contract, an agreement, or otherwise with sellers, for consideration, to
950+890facilitate the sale of a seller's product through a marketplace that the person owns, operates, or
951+891controls and that directly or indirectly: 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
865952 - 30 -
866-813 (60) (a) "Lease" or "rental" means a transfer of possession or control of tangible
867-814personal property or a product transferred electronically for:
868-815 (i) (A) a fixed term; or
869-816 (B) an indeterminate term; and
870-817 (ii) consideration.
871-818 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
872-819amount of consideration may be increased or decreased by reference to the amount realized
873-820upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
874-821Code.
875-822 (c) "Lease" or "rental" does not include:
876-823 (i) a transfer of possession or control of property under a security agreement or
877-824deferred payment plan that requires the transfer of title upon completion of the required
878-825payments;
879-826 (ii) a transfer of possession or control of property under an agreement that requires the
880-827transfer of title:
881-828 (A) upon completion of required payments; and
882-829 (B) if the payment of an option price does not exceed the greater of:
883-830 (I) $100; or
884-831 (II) 1% of the total required payments; or
885-832 (iii) providing tangible personal property along with an operator for a fixed period of
886-833time or an indeterminate period of time if the operator is necessary for equipment to perform as
887-834designed.
888-835 (d) For purposes of Subsection (60)(c)(iii), an operator is necessary for equipment to
889-836perform as designed if the operator's duties exceed the:
890-837 (i) set-up of tangible personal property;
891-838 (ii) maintenance of tangible personal property; or
892-839 (iii) inspection of tangible personal property.
893-840 (61) "Lesson" means a fixed period of time for the duration of which a trained Enrolled Copy H.B. 54
953+892 (i) does any of the following:
954+893 (A) lists, makes available, or advertises tangible personal property, a product
955+894transferred electronically, or a service for sale by a marketplace seller on a marketplace that the
956+895person owns, operates, or controls;
957+896 (B) facilitates the sale of a marketplace seller's tangible personal property, product
958+897transferred electronically, or service by transmitting or otherwise communicating an offer or
959+898acceptance of a retail sale between the marketplace seller and a purchaser using the
960+899marketplace;
961+900 (C) owns, rents, licenses, makes available, or operates any electronic or physical
962+901infrastructure or any property, process, method, copyright, trademark, or patent that connects a
963+902marketplace seller to a purchaser for the purpose of making a retail sale of tangible personal
964+903property, a product transferred electronically, or a service;
965+904 (D) provides a marketplace for making, or otherwise facilitates, a retail sale of tangible
966+905personal property, a product transferred electronically, or a service, regardless of ownership or
967+906control of the tangible personal property, the product transferred electronically, or the service
968+907that is the subject of the retail sale;
969+908 (E) provides software development or research and development activities related to
970+909any activity described in this Subsection (69)(a)(i), if the software development or research and
971+910development activity is directly related to the person's marketplace;
972+911 (F) provides or offers fulfillment or storage services for a marketplace seller;
973+912 (G) sets prices for the sale of tangible personal property, a product transferred
974+913electronically, or a service by a marketplace seller;
975+914 (H) provides or offers customer service to a marketplace seller or a marketplace seller's
976+915purchaser or accepts or assists with taking orders, returns, or exchanges of tangible personal
977+916property, a product transferred electronically, or a service sold by a marketplace seller on the
978+917person's marketplace; or
979+918 (I) brands or otherwise identifies sales as those of the person; and
980+919 (ii) does any of the following:
981+920 (A) collects the sales price or purchase price of a retail sale of tangible personal
982+921property, a product transferred electronically, or a service;
983+922 (B) provides payment processing services for a retail sale of tangible personal property, 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
894984 - 31 -
895-841instructor:
896-842 (a) is present with a student in person or by video; and
897-843 (b) actively instructs the student, including by providing observation or feedback.
898-844 (62) "Life science establishment" means an establishment in this state that is classified
899-845under the following NAICS codes of the 2007 North American Industry Classification System
900-846of the federal Executive Office of the President, Office of Management and Budget:
901-847 (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
902-848 (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
903-849Manufacturing; or
904-850 (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
905-851 (63) "Life science research and development facility" means a facility owned, leased,
906-852or rented by a life science establishment if research and development is performed in 51% or
907-853more of the total area of the facility.
908-854 (64) "Load and leave" means delivery to a purchaser by use of a tangible storage media
909-855if the tangible storage media is not physically transferred to the purchaser.
910-856 (65) "Local taxing jurisdiction" means a:
911-857 (a) county that is authorized to impose an agreement sales and use tax;
912-858 (b) city that is authorized to impose an agreement sales and use tax; or
913-859 (c) town that is authorized to impose an agreement sales and use tax.
914-860 (66) "Manufactured home" means the same as that term is defined in Section
915-86115A-1-302.
916-862 (67) "Manufacturing facility" means:
917-863 (a) an establishment described in:
918-864 (i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
919-865the federal Executive Office of the President, Office of Management and Budget; or
920-866 (ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
921-867American Industry Classification System of the federal Executive Office of the President,
922-868Office of Management and Budget; H.B. 54 Enrolled Copy
985+923a product transferred electronically, or a service;
986+924 (C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee, closing
987+925fee, a fee for inserting or making available tangible personal property, a product transferred
988+926electronically, or a service on the person's marketplace, or other consideration for the
989+927facilitation of a retail sale of tangible personal property, a product transferred electronically, or
990+928a service, regardless of ownership or control of the tangible personal property, the product
991+929transferred electronically, or the service that is the subject of the retail sale;
992+930 (D) through terms and conditions, an agreement, or another arrangement with a third
993+931person, collects payment from a purchase for a retail sale of tangible personal property, a
994+932product transferred electronically, or a service and transmits that payment to the marketplace
995+933seller, regardless of whether the third person receives compensation or other consideration in
996+934exchange for the service; or
997+935 (E) provides a virtual currency for a purchaser to use to purchase tangible personal
998+936property, a product transferred electronically, or service offered for sale.
999+937 (b) "Marketplace facilitator" does not include:
1000+938 (i) a person that only provides payment processing services; or
1001+939 (ii) a person described in Subsection (69)(a) to the extent the person is facilitating a
1002+940sale for a seller that is a restaurant as defined in Section 59-12-602.
1003+941 (70) "Marketplace seller" means a seller that makes one or more retail sales through a
1004+942marketplace that a marketplace facilitator owns, operates, or controls, regardless of whether the
1005+943seller is required to be registered to collect and remit the tax under this part.
1006+944 (71) "Member of the immediate family of the producer" means a person who is related
1007+945to a producer described in Subsection 59-12-104(20)(a) as a:
1008+946 (a) child or stepchild, regardless of whether the child or stepchild is:
1009+947 (i) an adopted child or adopted stepchild; or
1010+948 (ii) a foster child or foster stepchild;
1011+949 (b) grandchild or stepgrandchild;
1012+950 (c) grandparent or stepgrandparent;
1013+951 (d) nephew or stepnephew;
1014+952 (e) niece or stepniece;
1015+953 (f) parent or stepparent; 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
9231016 - 32 -
924-869 (b) a scrap recycler if:
925-870 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
926-871one or more of the following items into prepared grades of processed materials for use in new
927-872products:
928-873 (A) iron;
929-874 (B) steel;
930-875 (C) nonferrous metal;
931-876 (D) paper;
932-877 (E) glass;
933-878 (F) plastic;
934-879 (G) textile; or
935-880 (H) rubber; and
936-881 (ii) the new products under Subsection (67)(b)(i) would otherwise be made with
937-882nonrecycled materials; or
938-883 (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
939-884placed in service on or after May 1, 2006.
940-885 (68) (a) "Marketplace" means a physical or electronic place, platform, or forum where
941-886tangible personal property, a product transferred electronically, or a service is offered for sale.
942-887 (b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a
943-888dedicated sales software application.
944-889 (69) (a) "Marketplace facilitator" means a person, including an affiliate of the person,
945-890that enters into a contract, an agreement, or otherwise with sellers, for consideration, to
946-891facilitate the sale of a seller's product through a marketplace that the person owns, operates, or
947-892controls and that directly or indirectly:
948-893 (i) does any of the following:
949-894 (A) lists, makes available, or advertises tangible personal property, a product
950-895transferred electronically, or a service for sale by a marketplace seller on a marketplace that the
951-896person owns, operates, or controls; Enrolled Copy H.B. 54
1017+954 (g) sibling or stepsibling;
1018+955 (h) spouse;
1019+956 (i) person who is the spouse of a person described in Subsections (71)(a) through (g);
1020+957or
1021+958 (j) person similar to a person described in Subsections (71)(a) through (i) as
1022+959determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1023+960Administrative Rulemaking Act.
1024+961 (72) "Mobile home" means the same as that term is defined in Section 15A-1-302.
1025+962 (73) "Mobile telecommunications service" means the same as that term is defined in
1026+963the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1027+964 (74) (a) "Mobile wireless service" means a telecommunications service, regardless of
1028+965the technology used, if:
1029+966 (i) the origination point of the conveyance, routing, or transmission is not fixed;
1030+967 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
1031+968 (iii) the origination point described in Subsection (74)(a)(i) and the termination point
1032+969described in Subsection (74)(a)(ii) are not fixed.
1033+970 (b) "Mobile wireless service" includes a telecommunications service that is provided
1034+971by a commercial mobile radio service provider.
1035+972 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1036+973commission may by rule define "commercial mobile radio service provider."
1037+974 (75) (a) Except as provided in Subsection (75)(c), "mobility enhancing equipment"
1038+975means equipment that is:
1039+976 (i) primarily and customarily used to provide or increase the ability to move from one
1040+977place to another;
1041+978 (ii) appropriate for use in a:
1042+979 (A) home; or
1043+980 (B) motor vehicle; and
1044+981 (iii) not generally used by persons with normal mobility.
1045+982 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
1046+983the equipment described in Subsection (75)(a).
1047+984 (c) "Mobility enhancing equipment" does not include: 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
9521048 - 33 -
953-897 (B) facilitates the sale of a marketplace seller's tangible personal property, product
954-898transferred electronically, or service by transmitting or otherwise communicating an offer or
955-899acceptance of a retail sale between the marketplace seller and a purchaser using the
956-900marketplace;
957-901 (C) owns, rents, licenses, makes available, or operates any electronic or physical
958-902infrastructure or any property, process, method, copyright, trademark, or patent that connects a
959-903marketplace seller to a purchaser for the purpose of making a retail sale of tangible personal
960-904property, a product transferred electronically, or a service;
961-905 (D) provides a marketplace for making, or otherwise facilitates, a retail sale of tangible
962-906personal property, a product transferred electronically, or a service, regardless of ownership or
963-907control of the tangible personal property, the product transferred electronically, or the service
964-908that is the subject of the retail sale;
965-909 (E) provides software development or research and development activities related to
966-910any activity described in this Subsection (69)(a)(i), if the software development or research and
967-911development activity is directly related to the person's marketplace;
968-912 (F) provides or offers fulfillment or storage services for a marketplace seller;
969-913 (G) sets prices for the sale of tangible personal property, a product transferred
970-914electronically, or a service by a marketplace seller;
971-915 (H) provides or offers customer service to a marketplace seller or a marketplace seller's
972-916purchaser or accepts or assists with taking orders, returns, or exchanges of tangible personal
973-917property, a product transferred electronically, or a service sold by a marketplace seller on the
974-918person's marketplace; or
975-919 (I) brands or otherwise identifies sales as those of the person; and
976-920 (ii) does any of the following:
977-921 (A) collects the sales price or purchase price of a retail sale of tangible personal
978-922property, a product transferred electronically, or a service;
979-923 (B) provides payment processing services for a retail sale of tangible personal property,
980-924a product transferred electronically, or a service; H.B. 54 Enrolled Copy
1049+985 (i) a motor vehicle;
1050+986 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
1051+987vehicle manufacturer;
1052+988 (iii) durable medical equipment; or
1053+989 (iv) a prosthetic device.
1054+990 (76) "Model 1 seller" means a seller registered under the agreement that has selected a
1055+991certified service provider as the seller's agent to perform the seller's sales and use tax functions
1056+992for agreement sales and use taxes, as outlined in the contract between the governing board of
1057+993the agreement and the certified service provider, other than the seller's obligation under Section
1058+99459-12-124 to remit a tax on the seller's own purchases.
1059+995 (77) "Model 2 seller" means a seller registered under the agreement that:
1060+996 (a) except as provided in Subsection (77)(b), has selected a certified automated system
1061+997to perform the seller's sales tax functions for agreement sales and use taxes; and
1062+998 (b) retains responsibility for remitting all of the sales tax:
1063+999 (i) collected by the seller; and
1064+1000 (ii) to the appropriate local taxing jurisdiction.
1065+1001 (78) (a) Subject to Subsection (78)(b), "model 3 seller" means a seller registered under
1066+1002the agreement that has:
1067+1003 (i) sales in at least five states that are members of the agreement;
1068+1004 (ii) total annual sales revenues of at least $500,000,000;
1069+1005 (iii) a proprietary system that calculates the amount of tax:
1070+1006 (A) for an agreement sales and use tax; and
1071+1007 (B) due to each local taxing jurisdiction; and
1072+1008 (iv) entered into a performance agreement with the governing board of the agreement.
1073+1009 (b) For purposes of Subsection (78)(a), "model 3 seller" includes an affiliated group of
1074+1010sellers using the same proprietary system.
1075+1011 (79) "Model 4 seller" means a seller that is registered under the agreement and is not a
1076+1012model 1 seller, model 2 seller, or model 3 seller.
1077+1013 (80) "Modular home" means a modular unit as defined in Section 15A-1-302.
1078+1014 (81) "Motor vehicle" means the same as that term is defined in Section 41-1a-102.
1079+1015 (82) "Oil sands" means impregnated bituminous sands that: 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
9811080 - 34 -
982-925 (C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee, closing
983-926fee, a fee for inserting or making available tangible personal property, a product transferred
984-927electronically, or a service on the person's marketplace, or other consideration for the
985-928facilitation of a retail sale of tangible personal property, a product transferred electronically, or
986-929a service, regardless of ownership or control of the tangible personal property, the product
987-930transferred electronically, or the service that is the subject of the retail sale;
988-931 (D) through terms and conditions, an agreement, or another arrangement with a third
989-932person, collects payment from a purchase for a retail sale of tangible personal property, a
990-933product transferred electronically, or a service and transmits that payment to the marketplace
991-934seller, regardless of whether the third person receives compensation or other consideration in
992-935exchange for the service; or
993-936 (E) provides a virtual currency for a purchaser to use to purchase tangible personal
994-937property, a product transferred electronically, or service offered for sale.
995-938 (b) "Marketplace facilitator" does not include:
996-939 (i) a person that only provides payment processing services; or
997-940 (ii) a person described in Subsection (69)(a) to the extent the person is facilitating a
998-941sale for a seller that is a restaurant as defined in Section 59-12-602.
999-942 (70) "Marketplace seller" means a seller that makes one or more retail sales through a
1000-943marketplace that a marketplace facilitator owns, operates, or controls, regardless of whether the
1001-944seller is required to be registered to collect and remit the tax under this part.
1002-945 (71) "Member of the immediate family of the producer" means a person who is related
1003-946to a producer described in Subsection 59-12-104(20)(a) as a:
1004-947 (a) child or stepchild, regardless of whether the child or stepchild is:
1005-948 (i) an adopted child or adopted stepchild; or
1006-949 (ii) a foster child or foster stepchild;
1007-950 (b) grandchild or stepgrandchild;
1008-951 (c) grandparent or stepgrandparent;
1009-952 (d) nephew or stepnephew; Enrolled Copy H.B. 54
1081+1016 (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
1082+1017other hydrocarbons, or otherwise treated;
1083+1018 (b) yield mixtures of liquid hydrocarbon; and
1084+1019 (c) require further processing other than mechanical blending before becoming finished
1085+1020petroleum products.
1086+1021 (83) "Oil shale" means a group of fine black to dark brown shales containing kerogen
1087+1022material that yields petroleum upon heating and distillation.
1088+1023 (84) "Optional computer software maintenance contract" means a computer software
1089+1024maintenance contract that a customer is not obligated to purchase as a condition to the retail
1090+1025sale of computer software.
1091+1026 (85) (a) "Other fuels" means products that burn independently to produce heat or
1092+1027energy.
1093+1028 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
1094+1029personal property.
1095+1030 (86) (a) "Paging service" means a telecommunications service that provides
1096+1031transmission of a coded radio signal for the purpose of activating a specific pager.
1097+1032 (b) For purposes of Subsection (86)(a), the transmission of a coded radio signal
1098+1033includes a transmission by message or sound.
1099+1034 (87) "Pawn transaction" means the same as that term is defined in Section 13-32a-102.
1100+1035 (88) "Pawnbroker" means the same as that term is defined in Section 13-32a-102.
1101+1036 (89) (a) "Permanently attached to real property" means that for tangible personal
1102+1037property attached to real property:
1103+1038 (i) the attachment of the tangible personal property to the real property:
1104+1039 (A) is essential to the use of the tangible personal property; and
1105+1040 (B) suggests that the tangible personal property will remain attached to the real
1106+1041property in the same place over the useful life of the tangible personal property; or
1107+1042 (ii) if the tangible personal property is detached from the real property, the detachment
1108+1043would:
1109+1044 (A) cause substantial damage to the tangible personal property; or
1110+1045 (B) require substantial alteration or repair of the real property to which the tangible
1111+1046personal property is attached. 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
10101112 - 35 -
1011-953 (e) niece or stepniece;
1012-954 (f) parent or stepparent;
1013-955 (g) sibling or stepsibling;
1014-956 (h) spouse;
1015-957 (i) person who is the spouse of a person described in Subsections (71)(a) through (g);
1016-958or
1017-959 (j) person similar to a person described in Subsections (71)(a) through (i) as
1018-960determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1019-961Administrative Rulemaking Act.
1020-962 (72) "Mobile home" means the same as that term is defined in Section 15A-1-302.
1021-963 (73) "Mobile telecommunications service" means the same as that term is defined in
1022-964the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1023-965 (74) (a) "Mobile wireless service" means a telecommunications service, regardless of
1024-966the technology used, if:
1025-967 (i) the origination point of the conveyance, routing, or transmission is not fixed;
1026-968 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
1027-969 (iii) the origination point described in Subsection (74)(a)(i) and the termination point
1028-970described in Subsection (74)(a)(ii) are not fixed.
1029-971 (b) "Mobile wireless service" includes a telecommunications service that is provided
1030-972by a commercial mobile radio service provider.
1031-973 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1032-974commission may by rule define "commercial mobile radio service provider."
1033-975 (75) (a) Except as provided in Subsection (75)(c), "mobility enhancing equipment"
1034-976means equipment that is:
1035-977 (i) primarily and customarily used to provide or increase the ability to move from one
1036-978place to another;
1037-979 (ii) appropriate for use in a:
1038-980 (A) home; or H.B. 54 Enrolled Copy
1113+1047 (b) "Permanently attached to real property" includes:
1114+1048 (i) the attachment of an accessory to the tangible personal property if the accessory is:
1115+1049 (A) essential to the operation of the tangible personal property; and
1116+1050 (B) attached only to facilitate the operation of the tangible personal property;
1117+1051 (ii) a temporary detachment of tangible personal property from real property for a
1118+1052repair or renovation if the repair or renovation is performed where the tangible personal
1119+1053property and real property are located; or
1120+1054 (iii) property attached to oil, gas, or water pipelines, except for the property listed in
1121+1055Subsection (89)(c)(iii) or (iv).
1122+1056 (c) "Permanently attached to real property" does not include:
1123+1057 (i) the attachment of portable or movable tangible personal property to real property if
1124+1058that portable or movable tangible personal property is attached to real property only for:
1125+1059 (A) convenience;
1126+1060 (B) stability; or
1127+1061 (C) for an obvious temporary purpose;
1128+1062 (ii) the detachment of tangible personal property from real property except for the
1129+1063detachment described in Subsection (89)(b)(ii);
1130+1064 (iii) an attachment of the following tangible personal property to real property if the
1131+1065attachment to real property is only through a line that supplies water, electricity, gas,
1132+1066telecommunications, cable, or supplies a similar item as determined by the commission by rule
1133+1067made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
1134+1068 (A) a computer;
1135+1069 (B) a telephone;
1136+1070 (C) a television; or
1137+1071 (D) tangible personal property similar to Subsections (89)(c)(iii)(A) through (C) as
1138+1072determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1139+1073Administrative Rulemaking Act; or
1140+1074 (iv) an item listed in Subsection (130)(c).
1141+1075 (90) "Person" includes any individual, firm, partnership, joint venture, association,
1142+1076corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
1143+1077municipality, district, or other local governmental entity of the state, or any group or 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
10391144 - 36 -
1040-981 (B) motor vehicle; and
1041-982 (iii) not generally used by persons with normal mobility.
1042-983 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
1043-984the equipment described in Subsection (75)(a).
1044-985 (c) "Mobility enhancing equipment" does not include:
1045-986 (i) a motor vehicle;
1046-987 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
1047-988vehicle manufacturer;
1048-989 (iii) durable medical equipment; or
1049-990 (iv) a prosthetic device.
1050-991 (76) "Model 1 seller" means a seller registered under the agreement that has selected a
1051-992certified service provider as the seller's agent to perform the seller's sales and use tax functions
1052-993for agreement sales and use taxes, as outlined in the contract between the governing board of
1053-994the agreement and the certified service provider, other than the seller's obligation under Section
1054-99559-12-124 to remit a tax on the seller's own purchases.
1055-996 (77) "Model 2 seller" means a seller registered under the agreement that:
1056-997 (a) except as provided in Subsection (77)(b), has selected a certified automated system
1057-998to perform the seller's sales tax functions for agreement sales and use taxes; and
1058-999 (b) retains responsibility for remitting all of the sales tax:
1059-1000 (i) collected by the seller; and
1060-1001 (ii) to the appropriate local taxing jurisdiction.
1061-1002 (78) (a) Subject to Subsection (78)(b), "model 3 seller" means a seller registered under
1062-1003the agreement that has:
1063-1004 (i) sales in at least five states that are members of the agreement;
1064-1005 (ii) total annual sales revenues of at least $500,000,000;
1065-1006 (iii) a proprietary system that calculates the amount of tax:
1066-1007 (A) for an agreement sales and use tax; and
1067-1008 (B) due to each local taxing jurisdiction; and Enrolled Copy H.B. 54
1145+1078combination acting as a unit.
1146+1079 (91) "Place of primary use":
1147+1080 (a) for telecommunications service other than mobile telecommunications service,
1148+1081means the street address representative of where the customer's use of the telecommunications
1149+1082service primarily occurs, which shall be:
1150+1083 (i) the residential street address of the customer; or
1151+1084 (ii) the primary business street address of the customer; or
1152+1085 (b) for mobile telecommunications service, means the same as that term is defined in
1153+1086the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1154+1087 (92) (a) "Postpaid calling service" means a telecommunications service a person
1155+1088obtains by making a payment on a call-by-call basis:
1156+1089 (i) through the use of a:
1157+1090 (A) bank card;
1158+1091 (B) credit card;
1159+1092 (C) debit card; or
1160+1093 (D) travel card; or
1161+1094 (ii) by a charge made to a telephone number that is not associated with the origination
1162+1095or termination of the telecommunications service.
1163+1096 (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
1164+1097service, that would be a prepaid wireless calling service if the service were exclusively a
1165+1098telecommunications service.
1166+1099 (93) "Postproduction" means an activity related to the finishing or duplication of a
1167+1100medium described in Subsection 59-12-104(54)(a).
1168+1101 (94) "Prepaid calling service" means a telecommunications service:
1169+1102 (a) that allows a purchaser access to telecommunications service that is exclusively
1170+1103telecommunications service;
1171+1104 (b) that:
1172+1105 (i) is paid for in advance; and
1173+1106 (ii) enables the origination of a call using an:
1174+1107 (A) access number; or
1175+1108 (B) authorization code; 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
10681176 - 37 -
1069-1009 (iv) entered into a performance agreement with the governing board of the agreement.
1070-1010 (b) For purposes of Subsection (78)(a), "model 3 seller" includes an affiliated group of
1071-1011sellers using the same proprietary system.
1072-1012 (79) "Model 4 seller" means a seller that is registered under the agreement and is not a
1073-1013model 1 seller, model 2 seller, or model 3 seller.
1074-1014 (80) "Modular home" means a modular unit as defined in Section 15A-1-302.
1075-1015 (81) "Motor vehicle" means the same as that term is defined in Section 41-1a-102.
1076-1016 (82) "Oil sands" means impregnated bituminous sands that:
1077-1017 (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
1078-1018other hydrocarbons, or otherwise treated;
1079-1019 (b) yield mixtures of liquid hydrocarbon; and
1080-1020 (c) require further processing other than mechanical blending before becoming finished
1081-1021petroleum products.
1082-1022 (83) "Oil shale" means a group of fine black to dark brown shales containing kerogen
1083-1023material that yields petroleum upon heating and distillation.
1084-1024 (84) "Optional computer software maintenance contract" means a computer software
1085-1025maintenance contract that a customer is not obligated to purchase as a condition to the retail
1086-1026sale of computer software.
1087-1027 (85) (a) "Other fuels" means products that burn independently to produce heat or
1088-1028energy.
1089-1029 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
1090-1030personal property.
1091-1031 (86) (a) "Paging service" means a telecommunications service that provides
1092-1032transmission of a coded radio signal for the purpose of activating a specific pager.
1093-1033 (b) For purposes of Subsection (86)(a), the transmission of a coded radio signal
1094-1034includes a transmission by message or sound.
1095-1035 (87) "Pawn transaction" means the same as that term is defined in Section 13-32a-102.
1096-1036 (88) "Pawnbroker" means the same as that term is defined in Section 13-32a-102. H.B. 54 Enrolled Copy
1177+1109 (c) that is dialed:
1178+1110 (i) manually; or
1179+1111 (ii) electronically; and
1180+1112 (d) sold in predetermined units or dollars that decline:
1181+1113 (i) by a known amount; and
1182+1114 (ii) with use.
1183+1115 (95) "Prepaid wireless calling service" means a telecommunications service:
1184+1116 (a) that provides the right to utilize:
1185+1117 (i) mobile wireless service; and
1186+1118 (ii) other service that is not a telecommunications service, including:
1187+1119 (A) the download of a product transferred electronically;
1188+1120 (B) a content service; or
1189+1121 (C) an ancillary service;
1190+1122 (b) that:
1191+1123 (i) is paid for in advance; and
1192+1124 (ii) enables the origination of a call using an:
1193+1125 (A) access number; or
1194+1126 (B) authorization code;
1195+1127 (c) that is dialed:
1196+1128 (i) manually; or
1197+1129 (ii) electronically; and
1198+1130 (d) sold in predetermined units or dollars that decline:
1199+1131 (i) by a known amount; and
1200+1132 (ii) with use.
1201+1133 (96) (a) "Prepared food" means:
1202+1134 (i) food:
1203+1135 (A) sold in a heated state; or
1204+1136 (B) heated by a seller;
1205+1137 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
1206+1138item; or
1207+1139 (iii) except as provided in Subsection (96)(c), food sold with an eating utensil provided 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
10971208 - 38 -
1098-1037 (89) (a) "Permanently attached to real property" means that for tangible personal
1099-1038property attached to real property:
1100-1039 (i) the attachment of the tangible personal property to the real property:
1101-1040 (A) is essential to the use of the tangible personal property; and
1102-1041 (B) suggests that the tangible personal property will remain attached to the real
1103-1042property in the same place over the useful life of the tangible personal property; or
1104-1043 (ii) if the tangible personal property is detached from the real property, the detachment
1105-1044would:
1106-1045 (A) cause substantial damage to the tangible personal property; or
1107-1046 (B) require substantial alteration or repair of the real property to which the tangible
1108-1047personal property is attached.
1109-1048 (b) "Permanently attached to real property" includes:
1110-1049 (i) the attachment of an accessory to the tangible personal property if the accessory is:
1111-1050 (A) essential to the operation of the tangible personal property; and
1112-1051 (B) attached only to facilitate the operation of the tangible personal property;
1113-1052 (ii) a temporary detachment of tangible personal property from real property for a
1114-1053repair or renovation if the repair or renovation is performed where the tangible personal
1115-1054property and real property are located; or
1116-1055 (iii) property attached to oil, gas, or water pipelines, except for the property listed in
1117-1056Subsection (89)(c)(iii) or (iv).
1118-1057 (c) "Permanently attached to real property" does not include:
1119-1058 (i) the attachment of portable or movable tangible personal property to real property if
1120-1059that portable or movable tangible personal property is attached to real property only for:
1121-1060 (A) convenience;
1122-1061 (B) stability; or
1123-1062 (C) for an obvious temporary purpose;
1124-1063 (ii) the detachment of tangible personal property from real property except for the
1125-1064detachment described in Subsection (89)(b)(ii); Enrolled Copy H.B. 54
1209+1140by the seller, including a:
1210+1141 (A) plate;
1211+1142 (B) knife;
1212+1143 (C) fork;
1213+1144 (D) spoon;
1214+1145 (E) glass;
1215+1146 (F) cup;
1216+1147 (G) napkin; or
1217+1148 (H) straw.
1218+1149 (b) "Prepared food" does not include:
1219+1150 (i) food that a seller only:
1220+1151 (A) cuts;
1221+1152 (B) repackages; or
1222+1153 (C) pasteurizes; or
1223+1154 (ii) (A) the following:
1224+1155 (I) raw egg;
1225+1156 (II) raw fish;
1226+1157 (III) raw meat;
1227+1158 (IV) raw poultry; or
1228+1159 (V) a food containing an item described in Subsections (96)(b)(ii)(A)(I) through (IV);
1229+1160and
1230+1161 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
1231+1162Food and Drug Administration's Food Code that a consumer cook the items described in
1232+1163Subsection (96)(b)(ii)(A) to prevent food borne illness; or
1233+1164 (iii) the following if sold without eating utensils provided by the seller:
1234+1165 (A) food and food ingredients sold by a seller if the seller's proper primary
1235+1166classification under the 2002 North American Industry Classification System of the federal
1236+1167Executive Office of the President, Office of Management and Budget, is manufacturing in
1237+1168Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
1238+1169Manufacturing;
1239+1170 (B) food and food ingredients sold in an unheated state: 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
11261240 - 39 -
1127-1065 (iii) an attachment of the following tangible personal property to real property if the
1128-1066attachment to real property is only through a line that supplies water, electricity, gas,
1129-1067telecommunications, cable, or supplies a similar item as determined by the commission by rule
1130-1068made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
1131-1069 (A) a computer;
1132-1070 (B) a telephone;
1133-1071 (C) a television; or
1134-1072 (D) tangible personal property similar to Subsections (89)(c)(iii)(A) through (C) as
1135-1073determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1136-1074Administrative Rulemaking Act; or
1137-1075 (iv) an item listed in Subsection (130)(c).
1138-1076 (90) "Person" includes any individual, firm, partnership, joint venture, association,
1139-1077corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
1140-1078municipality, district, or other local governmental entity of the state, or any group or
1141-1079combination acting as a unit.
1142-1080 (91) "Place of primary use":
1143-1081 (a) for telecommunications service other than mobile telecommunications service,
1144-1082means the street address representative of where the customer's use of the telecommunications
1145-1083service primarily occurs, which shall be:
1146-1084 (i) the residential street address of the customer; or
1147-1085 (ii) the primary business street address of the customer; or
1148-1086 (b) for mobile telecommunications service, means the same as that term is defined in
1149-1087the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1150-1088 (92) (a) "Postpaid calling service" means a telecommunications service a person
1151-1089obtains by making a payment on a call-by-call basis:
1152-1090 (i) through the use of a:
1153-1091 (A) bank card;
1154-1092 (B) credit card; H.B. 54 Enrolled Copy
1241+1171 (I) by weight or volume; and
1242+1172 (II) as a single item; or
1243+1173 (C) a bakery item, including:
1244+1174 (I) a bagel;
1245+1175 (II) a bar;
1246+1176 (III) a biscuit;
1247+1177 (IV) bread;
1248+1178 (V) a bun;
1249+1179 (VI) a cake;
1250+1180 (VII) a cookie;
1251+1181 (VIII) a croissant;
1252+1182 (IX) a danish;
1253+1183 (X) a donut;
1254+1184 (XI) a muffin;
1255+1185 (XII) a pastry;
1256+1186 (XIII) a pie;
1257+1187 (XIV) a roll;
1258+1188 (XV) a tart;
1259+1189 (XVI) a torte; or
1260+1190 (XVII) a tortilla.
1261+1191 (c) An eating utensil provided by the seller does not include the following used to
1262+1192transport the food:
1263+1193 (i) a container; or
1264+1194 (ii) packaging.
1265+1195 (97) "Prescription" means an order, formula, or recipe that is issued:
1266+1196 (a) (i) orally;
1267+1197 (ii) in writing;
1268+1198 (iii) electronically; or
1269+1199 (iv) by any other manner of transmission; and
1270+1200 (b) by a licensed practitioner authorized by the laws of a state.
1271+1201 (98) (a) Except as provided in Subsection (98)(b)(ii) or (iii), "prewritten computer 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
11551272 - 40 -
1156-1093 (C) debit card; or
1157-1094 (D) travel card; or
1158-1095 (ii) by a charge made to a telephone number that is not associated with the origination
1159-1096or termination of the telecommunications service.
1160-1097 (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
1161-1098service, that would be a prepaid wireless calling service if the service were exclusively a
1162-1099telecommunications service.
1163-1100 (93) "Postproduction" means an activity related to the finishing or duplication of a
1164-1101medium described in Subsection 59-12-104(54)(a).
1165-1102 (94) "Prepaid calling service" means a telecommunications service:
1166-1103 (a) that allows a purchaser access to telecommunications service that is exclusively
1167-1104telecommunications service;
1168-1105 (b) that:
1169-1106 (i) is paid for in advance; and
1170-1107 (ii) enables the origination of a call using an:
1171-1108 (A) access number; or
1172-1109 (B) authorization code;
1173-1110 (c) that is dialed:
1174-1111 (i) manually; or
1175-1112 (ii) electronically; and
1176-1113 (d) sold in predetermined units or dollars that decline:
1177-1114 (i) by a known amount; and
1178-1115 (ii) with use.
1179-1116 (95) "Prepaid wireless calling service" means a telecommunications service:
1180-1117 (a) that provides the right to utilize:
1181-1118 (i) mobile wireless service; and
1182-1119 (ii) other service that is not a telecommunications service, including:
1183-1120 (A) the download of a product transferred electronically; Enrolled Copy H.B. 54
1273+1202software" means computer software that is not designed and developed:
1274+1203 (i) by the author or other creator of the computer software; and
1275+1204 (ii) to the specifications of a specific purchaser.
1276+1205 (b) "Prewritten computer software" includes:
1277+1206 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
1278+1207software is not designed and developed:
1279+1208 (A) by the author or other creator of the computer software; and
1280+1209 (B) to the specifications of a specific purchaser;
1281+1210 (ii) computer software designed and developed by the author or other creator of the
1282+1211computer software to the specifications of a specific purchaser if the computer software is sold
1283+1212to a person other than the purchaser; or
1284+1213 (iii) except as provided in Subsection (98)(c), prewritten computer software or a
1285+1214prewritten portion of prewritten computer software:
1286+1215 (A) that is modified or enhanced to any degree; and
1287+1216 (B) if the modification or enhancement described in Subsection (98)(b)(iii)(A) is
1288+1217designed and developed to the specifications of a specific purchaser.
1289+1218 (c) "Prewritten computer software" does not include a modification or enhancement
1290+1219described in Subsection (98)(b)(iii) if the charges for the modification or enhancement are:
1291+1220 (i) reasonable; and
1292+1221 (ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), separately stated on the
1293+1222invoice or other statement of price provided to the purchaser at the time of sale or later, as
1294+1223demonstrated by:
1295+1224 (A) the books and records the seller keeps at the time of the transaction in the regular
1296+1225course of business, including books and records the seller keeps at the time of the transaction in
1297+1226the regular course of business for nontax purposes;
1298+1227 (B) a preponderance of the facts and circumstances at the time of the transaction; and
1299+1228 (C) the understanding of all of the parties to the transaction.
1300+1229 (99) (a) "Private communications service" means a telecommunications service:
1301+1230 (i) that entitles a customer to exclusive or priority use of one or more communications
1302+1231channels between or among termination points; and
1303+1232 (ii) regardless of the manner in which the one or more communications channels are 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
11841304 - 41 -
1185-1121 (B) a content service; or
1186-1122 (C) an ancillary service;
1187-1123 (b) that:
1188-1124 (i) is paid for in advance; and
1189-1125 (ii) enables the origination of a call using an:
1190-1126 (A) access number; or
1191-1127 (B) authorization code;
1192-1128 (c) that is dialed:
1193-1129 (i) manually; or
1194-1130 (ii) electronically; and
1195-1131 (d) sold in predetermined units or dollars that decline:
1196-1132 (i) by a known amount; and
1197-1133 (ii) with use.
1198-1134 (96) (a) "Prepared food" means:
1199-1135 (i) food:
1200-1136 (A) sold in a heated state; or
1201-1137 (B) heated by a seller;
1202-1138 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
1203-1139item; or
1204-1140 (iii) except as provided in Subsection (96)(c), food sold with an eating utensil provided
1205-1141by the seller, including a:
1206-1142 (A) plate;
1207-1143 (B) knife;
1208-1144 (C) fork;
1209-1145 (D) spoon;
1210-1146 (E) glass;
1211-1147 (F) cup;
1212-1148 (G) napkin; or H.B. 54 Enrolled Copy
1305+1233connected.
1306+1234 (b) "Private communications service" includes the following provided in connection
1307+1235with the use of one or more communications channels:
1308+1236 (i) an extension line;
1309+1237 (ii) a station;
1310+1238 (iii) switching capacity; or
1311+1239 (iv) another associated service that is provided in connection with the use of one or
1312+1240more communications channels as defined in Section 59-12-215.
1313+1241 (100) (a) Except as provided in Subsection (100)(b), "product transferred
1314+1242electronically" means a product transferred electronically that would be subject to a tax under
1315+1243this chapter if that product was transferred in a manner other than electronically.
1316+1244 (b) "Product transferred electronically" does not include:
1317+1245 (i) an ancillary service;
1318+1246 (ii) computer software; or
1319+1247 (iii) a telecommunications service.
1320+1248 (101) (a) "Prosthetic device" means a device that is worn on or in the body to:
1321+1249 (i) artificially replace a missing portion of the body;
1322+1250 (ii) prevent or correct a physical deformity or physical malfunction; or
1323+1251 (iii) support a weak or deformed portion of the body.
1324+1252 (b) "Prosthetic device" includes:
1325+1253 (i) parts used in the repairs or renovation of a prosthetic device;
1326+1254 (ii) replacement parts for a prosthetic device;
1327+1255 (iii) a dental prosthesis; or
1328+1256 (iv) a hearing aid.
1329+1257 (c) "Prosthetic device" does not include:
1330+1258 (i) corrective eyeglasses; or
1331+1259 (ii) contact lenses.
1332+1260 (102) (a) "Protective equipment" means an item:
1333+1261 (i) for human wear; and
1334+1262 (ii) that is:
1335+1263 (A) designed as protection: 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
12131336 - 42 -
1214-1149 (H) straw.
1215-1150 (b) "Prepared food" does not include:
1216-1151 (i) food that a seller only:
1217-1152 (A) cuts;
1218-1153 (B) repackages; or
1219-1154 (C) pasteurizes; or
1220-1155 (ii) (A) the following:
1221-1156 (I) raw egg;
1222-1157 (II) raw fish;
1223-1158 (III) raw meat;
1224-1159 (IV) raw poultry; or
1225-1160 (V) a food containing an item described in Subsections (96)(b)(ii)(A)(I) through (IV);
1226-1161and
1227-1162 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
1228-1163Food and Drug Administration's Food Code that a consumer cook the items described in
1229-1164Subsection (96)(b)(ii)(A) to prevent food borne illness; or
1230-1165 (iii) the following if sold without eating utensils provided by the seller:
1231-1166 (A) food and food ingredients sold by a seller if the seller's proper primary
1232-1167classification under the 2002 North American Industry Classification System of the federal
1233-1168Executive Office of the President, Office of Management and Budget, is manufacturing in
1234-1169Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
1235-1170Manufacturing;
1236-1171 (B) food and food ingredients sold in an unheated state:
1237-1172 (I) by weight or volume; and
1238-1173 (II) as a single item; or
1239-1174 (C) a bakery item, including:
1240-1175 (I) a bagel;
1241-1176 (II) a bar; Enrolled Copy H.B. 54
1337+1264 (I) to the wearer against injury or disease; or
1338+1265 (II) against damage or injury of other persons or property; and
1339+1266 (B) not suitable for general use.
1340+1267 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1341+1268commission shall make rules:
1342+1269 (i) listing the items that constitute "protective equipment"; and
1343+1270 (ii) that are consistent with the list of items that constitute "protective equipment"
1344+1271under the agreement.
1345+1272 (103) (a) For purposes of Subsection 59-12-104(41), "publication" means any written
1346+1273or printed matter, other than a photocopy:
1347+1274 (i) regardless of:
1348+1275 (A) characteristics;
1349+1276 (B) copyright;
1350+1277 (C) form;
1351+1278 (D) format;
1352+1279 (E) method of reproduction; or
1353+1280 (F) source; and
1354+1281 (ii) made available in printed or electronic format.
1355+1282 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1356+1283commission may by rule define the term "photocopy."
1357+1284 (104) (a) "Purchase price" and "sales price" mean the total amount of consideration:
1358+1285 (i) valued in money; and
1359+1286 (ii) for which tangible personal property, a product transferred electronically, or
1360+1287services are:
1361+1288 (A) sold;
1362+1289 (B) leased; or
1363+1290 (C) rented.
1364+1291 (b) "Purchase price" and "sales price" include:
1365+1292 (i) the seller's cost of the tangible personal property, a product transferred
1366+1293electronically, or services sold;
1367+1294 (ii) expenses of the seller, including: 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
12421368 - 43 -
1243-1177 (III) a biscuit;
1244-1178 (IV) bread;
1245-1179 (V) a bun;
1246-1180 (VI) a cake;
1247-1181 (VII) a cookie;
1248-1182 (VIII) a croissant;
1249-1183 (IX) a danish;
1250-1184 (X) a donut;
1251-1185 (XI) a muffin;
1252-1186 (XII) a pastry;
1253-1187 (XIII) a pie;
1254-1188 (XIV) a roll;
1255-1189 (XV) a tart;
1256-1190 (XVI) a torte; or
1257-1191 (XVII) a tortilla.
1258-1192 (c) An eating utensil provided by the seller does not include the following used to
1259-1193transport the food:
1260-1194 (i) a container; or
1261-1195 (ii) packaging.
1262-1196 (97) "Prescription" means an order, formula, or recipe that is issued:
1263-1197 (a) (i) orally;
1264-1198 (ii) in writing;
1265-1199 (iii) electronically; or
1266-1200 (iv) by any other manner of transmission; and
1267-1201 (b) by a licensed practitioner authorized by the laws of a state.
1268-1202 (98) (a) Except as provided in Subsection (98)(b)(ii) or (iii), "prewritten computer
1269-1203software" means computer software that is not designed and developed:
1270-1204 (i) by the author or other creator of the computer software; and H.B. 54 Enrolled Copy
1369+1295 (A) the cost of materials used;
1370+1296 (B) a labor cost;
1371+1297 (C) a service cost;
1372+1298 (D) interest;
1373+1299 (E) a loss;
1374+1300 (F) the cost of transportation to the seller; or
1375+1301 (G) a tax imposed on the seller;
1376+1302 (iii) a charge by the seller for any service necessary to complete the sale; or
1377+1303 (iv) consideration a seller receives from a person other than the purchaser if:
1378+1304 (A) (I) the seller actually receives consideration from a person other than the purchaser;
1379+1305and
1380+1306 (II) the consideration described in Subsection (104)(b)(iv)(A)(I) is directly related to a
1381+1307price reduction or discount on the sale;
1382+1308 (B) the seller has an obligation to pass the price reduction or discount through to the
1383+1309purchaser;
1384+1310 (C) the amount of the consideration attributable to the sale is fixed and determinable by
1385+1311the seller at the time of the sale to the purchaser; and
1386+1312 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1387+1313seller to claim a price reduction or discount; and
1388+1314 (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1389+1315coupon, or other documentation with the understanding that the person other than the seller
1390+1316will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1391+1317 (II) the purchaser identifies that purchaser to the seller as a member of a group or
1392+1318organization allowed a price reduction or discount, except that a preferred customer card that is
1393+1319available to any patron of a seller does not constitute membership in a group or organization
1394+1320allowed a price reduction or discount; or
1395+1321 (III) the price reduction or discount is identified as a third party price reduction or
1396+1322discount on the:
1397+1323 (Aa) invoice the purchaser receives; or
1398+1324 (Bb) certificate, coupon, or other documentation the purchaser presents.
1399+1325 (c) "Purchase price" and "sales price" do not include: 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
12711400 - 44 -
1272-1205 (ii) to the specifications of a specific purchaser.
1273-1206 (b) "Prewritten computer software" includes:
1274-1207 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
1275-1208software is not designed and developed:
1276-1209 (A) by the author or other creator of the computer software; and
1277-1210 (B) to the specifications of a specific purchaser;
1278-1211 (ii) computer software designed and developed by the author or other creator of the
1279-1212computer software to the specifications of a specific purchaser if the computer software is sold
1280-1213to a person other than the purchaser; or
1281-1214 (iii) except as provided in Subsection (98)(c), prewritten computer software or a
1282-1215prewritten portion of prewritten computer software:
1283-1216 (A) that is modified or enhanced to any degree; and
1284-1217 (B) if the modification or enhancement described in Subsection (98)(b)(iii)(A) is
1285-1218designed and developed to the specifications of a specific purchaser.
1286-1219 (c) "Prewritten computer software" does not include a modification or enhancement
1287-1220described in Subsection (98)(b)(iii) if the charges for the modification or enhancement are:
1288-1221 (i) reasonable; and
1289-1222 (ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), separately stated on the
1290-1223invoice or other statement of price provided to the purchaser at the time of sale or later, as
1291-1224demonstrated by:
1292-1225 (A) the books and records the seller keeps at the time of the transaction in the regular
1293-1226course of business, including books and records the seller keeps at the time of the transaction in
1294-1227the regular course of business for nontax purposes;
1295-1228 (B) a preponderance of the facts and circumstances at the time of the transaction; and
1296-1229 (C) the understanding of all of the parties to the transaction.
1297-1230 (99) (a) "Private communications service" means a telecommunications service:
1298-1231 (i) that entitles a customer to exclusive or priority use of one or more communications
1299-1232channels between or among termination points; and Enrolled Copy H.B. 54
1401+1326 (i) a discount:
1402+1327 (A) in a form including:
1403+1328 (I) cash;
1404+1329 (II) term; or
1405+1330 (III) coupon;
1406+1331 (B) that is allowed by a seller;
1407+1332 (C) taken by a purchaser on a sale; and
1408+1333 (D) that is not reimbursed by a third party; or
1409+1334 (ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), the following if separately
1410+1335stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
1411+1336sale or later, as demonstrated by the books and records the seller keeps at the time of the
1412+1337transaction in the regular course of business, including books and records the seller keeps at the
1413+1338time of the transaction in the regular course of business for nontax purposes, by a
1414+1339preponderance of the facts and circumstances at the time of the transaction, and by the
1415+1340understanding of all of the parties to the transaction:
1416+1341 (A) the following from credit extended on the sale of tangible personal property or
1417+1342services:
1418+1343 (I) a carrying charge;
1419+1344 (II) a financing charge; or
1420+1345 (III) an interest charge;
1421+1346 (B) a delivery charge;
1422+1347 (C) an installation charge;
1423+1348 (D) a manufacturer rebate on a motor vehicle; or
1424+1349 (E) a tax or fee legally imposed directly on the consumer.
1425+1350 (105) "Purchaser" means a person to whom:
1426+1351 (a) a sale of tangible personal property is made;
1427+1352 (b) a product is transferred electronically; or
1428+1353 (c) a service is furnished.
1429+1354 (106) "Qualifying data center" means a data center facility that:
1430+1355 (a) houses a group of networked server computers in one physical location in order to
1431+1356disseminate, manage, and store data and information; 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
13001432 - 45 -
1301-1233 (ii) regardless of the manner in which the one or more communications channels are
1302-1234connected.
1303-1235 (b) "Private communications service" includes the following provided in connection
1304-1236with the use of one or more communications channels:
1305-1237 (i) an extension line;
1306-1238 (ii) a station;
1307-1239 (iii) switching capacity; or
1308-1240 (iv) another associated service that is provided in connection with the use of one or
1309-1241more communications channels as defined in Section 59-12-215.
1310-1242 (100) (a) Except as provided in Subsection (100)(b), "product transferred
1311-1243electronically" means a product transferred electronically that would be subject to a tax under
1312-1244this chapter if that product was transferred in a manner other than electronically.
1313-1245 (b) "Product transferred electronically" does not include:
1314-1246 (i) an ancillary service;
1315-1247 (ii) computer software; or
1316-1248 (iii) a telecommunications service.
1317-1249 (101) (a) "Prosthetic device" means a device that is worn on or in the body to:
1318-1250 (i) artificially replace a missing portion of the body;
1319-1251 (ii) prevent or correct a physical deformity or physical malfunction; or
1320-1252 (iii) support a weak or deformed portion of the body.
1321-1253 (b) "Prosthetic device" includes:
1322-1254 (i) parts used in the repairs or renovation of a prosthetic device;
1323-1255 (ii) replacement parts for a prosthetic device;
1324-1256 (iii) a dental prosthesis; or
1325-1257 (iv) a hearing aid.
1326-1258 (c) "Prosthetic device" does not include:
1327-1259 (i) corrective eyeglasses; or
1328-1260 (ii) contact lenses. H.B. 54 Enrolled Copy
1433+1357 (b) is located in the state;
1434+1358 (c) is a new operation constructed on or after July 1, 2016;
1435+1359 (d) consists of one or more buildings that total 150,000 or more square feet;
1436+1360 (e) is owned or leased by:
1437+1361 (i) the operator of the data center facility; or
1438+1362 (ii) a person under common ownership, as defined in Section 59-7-101, of the operator
1439+1363of the data center facility; and
1440+1364 (f) is located on one or more parcels of land that are owned or leased by:
1441+1365 (i) the operator of the data center facility; or
1442+1366 (ii) a person under common ownership, as defined in Section 59-7-101, of the operator
1443+1367of the data center facility.
1444+1368 (107) "Regularly rented" means:
1445+1369 (a) rented to a guest for value three or more times during a calendar year; or
1446+1370 (b) advertised or held out to the public as a place that is regularly rented to guests for
1447+1371value.
1448+1372 (108) "Rental" means the same as that term is defined in Subsection (60).
1449+1373 (109) (a) Except as provided in Subsection (109)(b), "repairs or renovations of tangible
1450+1374personal property" means:
1451+1375 (i) a repair or renovation of tangible personal property that is not permanently attached
1452+1376to real property; or
1453+1377 (ii) attaching tangible personal property or a product transferred electronically to other
1454+1378tangible personal property or detaching tangible personal property or a product transferred
1455+1379electronically from other tangible personal property if:
1456+1380 (A) the other tangible personal property to which the tangible personal property or
1457+1381product transferred electronically is attached or from which the tangible personal property or
1458+1382product transferred electronically is detached is not permanently attached to real property; and
1459+1383 (B) the attachment of tangible personal property or a product transferred electronically
1460+1384to other tangible personal property or detachment of tangible personal property or a product
1461+1385transferred electronically from other tangible personal property is made in conjunction with a
1462+1386repair or replacement of tangible personal property or a product transferred electronically.
1463+1387 (b) "Repairs or renovations of tangible personal property" does not include: 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
13291464 - 46 -
1330-1261 (102) (a) "Protective equipment" means an item:
1331-1262 (i) for human wear; and
1332-1263 (ii) that is:
1333-1264 (A) designed as protection:
1334-1265 (I) to the wearer against injury or disease; or
1335-1266 (II) against damage or injury of other persons or property; and
1336-1267 (B) not suitable for general use.
1337-1268 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1338-1269commission shall make rules:
1339-1270 (i) listing the items that constitute "protective equipment"; and
1340-1271 (ii) that are consistent with the list of items that constitute "protective equipment"
1341-1272under the agreement.
1342-1273 (103) (a) For purposes of Subsection 59-12-104(41), "publication" means any written
1343-1274or printed matter, other than a photocopy:
1344-1275 (i) regardless of:
1345-1276 (A) characteristics;
1346-1277 (B) copyright;
1347-1278 (C) form;
1348-1279 (D) format;
1349-1280 (E) method of reproduction; or
1350-1281 (F) source; and
1351-1282 (ii) made available in printed or electronic format.
1352-1283 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1353-1284commission may by rule define the term "photocopy."
1354-1285 (104) (a) "Purchase price" and "sales price" mean the total amount of consideration:
1355-1286 (i) valued in money; and
1356-1287 (ii) for which tangible personal property, a product transferred electronically, or
1357-1288services are: Enrolled Copy H.B. 54
1465+1388 (i) attaching prewritten computer software to other tangible personal property if the
1466+1389other tangible personal property to which the prewritten computer software is attached is not
1467+1390permanently attached to real property; or
1468+1391 (ii) detaching prewritten computer software from other tangible personal property if the
1469+1392other tangible personal property from which the prewritten computer software is detached is
1470+1393not permanently attached to real property.
1471+1394 (110) "Research and development" means the process of inquiry or experimentation
1472+1395aimed at the discovery of facts, devices, technologies, or applications and the process of
1473+1396preparing those devices, technologies, or applications for marketing.
1474+1397 (111) (a) "Residential telecommunications services" means a telecommunications
1475+1398service or an ancillary service that is provided to an individual for personal use:
1476+1399 (i) at a residential address; or
1477+1400 (ii) at an institution, including a nursing home or a school, if the telecommunications
1478+1401service or ancillary service is provided to and paid for by the individual residing at the
1479+1402institution rather than the institution.
1480+1403 (b) For purposes of Subsection (111)(a)(i), a residential address includes an:
1481+1404 (i) apartment; or
1482+1405 (ii) other individual dwelling unit.
1483+1406 (112) "Residential use" means the use in or around a home, apartment building,
1484+1407sleeping quarters, and similar facilities or accommodations.
1485+1408 (113) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
1486+1409than:
1487+1410 (a) resale;
1488+1411 (b) sublease; or
1489+1412 (c) subrent.
1490+1413 (114) (a) "Retailer" means any person, unless prohibited by the Constitution of the
1491+1414United States or federal law, that is engaged in a regularly organized business in tangible
1492+1415personal property or any other taxable transaction under Subsection 59-12-103(1), and who is
1493+1416selling to the user or consumer and not for resale.
1494+1417 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1495+1418engaged in the business of selling to users or consumers within the state. 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
13581496 - 47 -
1359-1289 (A) sold;
1360-1290 (B) leased; or
1361-1291 (C) rented.
1362-1292 (b) "Purchase price" and "sales price" include:
1363-1293 (i) the seller's cost of the tangible personal property, a product transferred
1364-1294electronically, or services sold;
1365-1295 (ii) expenses of the seller, including:
1366-1296 (A) the cost of materials used;
1367-1297 (B) a labor cost;
1368-1298 (C) a service cost;
1369-1299 (D) interest;
1370-1300 (E) a loss;
1371-1301 (F) the cost of transportation to the seller; or
1372-1302 (G) a tax imposed on the seller;
1373-1303 (iii) a charge by the seller for any service necessary to complete the sale; or
1374-1304 (iv) consideration a seller receives from a person other than the purchaser if:
1375-1305 (A) (I) the seller actually receives consideration from a person other than the purchaser;
1376-1306and
1377-1307 (II) the consideration described in Subsection (104)(b)(iv)(A)(I) is directly related to a
1378-1308price reduction or discount on the sale;
1379-1309 (B) the seller has an obligation to pass the price reduction or discount through to the
1380-1310purchaser;
1381-1311 (C) the amount of the consideration attributable to the sale is fixed and determinable by
1382-1312the seller at the time of the sale to the purchaser; and
1383-1313 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1384-1314seller to claim a price reduction or discount; and
1385-1315 (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1386-1316coupon, or other documentation with the understanding that the person other than the seller H.B. 54 Enrolled Copy
1497+1419 (115) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
1498+1420otherwise, in any manner, of tangible personal property or any other taxable transaction under
1499+1421Subsection 59-12-103(1), for consideration.
1500+1422 (b) "Sale" includes:
1501+1423 (i) installment and credit sales;
1502+1424 (ii) any closed transaction constituting a sale;
1503+1425 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1504+1426chapter;
1505+1427 (iv) any transaction if the possession of property is transferred but the seller retains the
1506+1428title as security for the payment of the price; and
1507+1429 (v) any transaction under which right to possession, operation, or use of any article of
1508+1430tangible personal property is granted under a lease or contract and the transfer of possession
1509+1431would be taxable if an outright sale were made.
1510+1432 (116) "Sale at retail" means the same as that term is defined in Subsection (113).
1511+1433 (117) "Sale-leaseback transaction" means a transaction by which title to tangible
1512+1434personal property or a product transferred electronically that is subject to a tax under this
1513+1435chapter is transferred:
1514+1436 (a) by a purchaser-lessee;
1515+1437 (b) to a lessor;
1516+1438 (c) for consideration; and
1517+1439 (d) if:
1518+1440 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1519+1441of the tangible personal property or product transferred electronically;
1520+1442 (ii) the sale of the tangible personal property or product transferred electronically to the
1521+1443lessor is intended as a form of financing:
1522+1444 (A) for the tangible personal property or product transferred electronically; and
1523+1445 (B) to the purchaser-lessee; and
1524+1446 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1525+1447is required to:
1526+1448 (A) capitalize the tangible personal property or product transferred electronically for
1527+1449financial reporting purposes; and 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
13871528 - 48 -
1388-1317will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1389-1318 (II) the purchaser identifies that purchaser to the seller as a member of a group or
1390-1319organization allowed a price reduction or discount, except that a preferred customer card that is
1391-1320available to any patron of a seller does not constitute membership in a group or organization
1392-1321allowed a price reduction or discount; or
1393-1322 (III) the price reduction or discount is identified as a third party price reduction or
1394-1323discount on the:
1395-1324 (Aa) invoice the purchaser receives; or
1396-1325 (Bb) certificate, coupon, or other documentation the purchaser presents.
1397-1326 (c) "Purchase price" and "sales price" do not include:
1398-1327 (i) a discount:
1399-1328 (A) in a form including:
1400-1329 (I) cash;
1401-1330 (II) term; or
1402-1331 (III) coupon;
1403-1332 (B) that is allowed by a seller;
1404-1333 (C) taken by a purchaser on a sale; and
1405-1334 (D) that is not reimbursed by a third party; or
1406-1335 (ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), the following if separately
1407-1336stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
1408-1337sale or later, as demonstrated by the books and records the seller keeps at the time of the
1409-1338transaction in the regular course of business, including books and records the seller keeps at the
1410-1339time of the transaction in the regular course of business for nontax purposes, by a
1411-1340preponderance of the facts and circumstances at the time of the transaction, and by the
1412-1341understanding of all of the parties to the transaction:
1413-1342 (A) the following from credit extended on the sale of tangible personal property or
1414-1343services:
1415-1344 (I) a carrying charge; Enrolled Copy H.B. 54
1529+1450 (B) account for the lease payments as payments made under a financing arrangement.
1530+1451 (118) "Sales price" means the same as that term is defined in Subsection (104).
1531+1452 (119) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
1532+1453amounts charged by a school:
1533+1454 (i) sales that are directly related to the school's educational functions or activities
1534+1455including:
1535+1456 (A) the sale of:
1536+1457 (I) textbooks;
1537+1458 (II) textbook fees;
1538+1459 (III) laboratory fees;
1539+1460 (IV) laboratory supplies; or
1540+1461 (V) safety equipment;
1541+1462 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1542+1463that:
1543+1464 (I) a student is specifically required to wear as a condition of participation in a
1544+1465school-related event or school-related activity; and
1545+1466 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1546+1467place of ordinary clothing;
1547+1468 (C) sales of the following if the net or gross revenues generated by the sales are
1548+1469deposited into a school district fund or school fund dedicated to school meals:
1549+1470 (I) food and food ingredients; or
1550+1471 (II) prepared food; or
1551+1472 (D) transportation charges for official school activities; or
1552+1473 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1553+1474event or school-related activity.
1554+1475 (b) "Sales relating to schools" does not include:
1555+1476 (i) bookstore sales of items that are not educational materials or supplies;
1556+1477 (ii) except as provided in Subsection (119)(a)(i)(B):
1557+1478 (A) clothing;
1558+1479 (B) clothing accessories or equipment;
1559+1480 (C) protective equipment; or 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
14161560 - 49 -
1417-1345 (II) a financing charge; or
1418-1346 (III) an interest charge;
1419-1347 (B) a delivery charge;
1420-1348 (C) an installation charge;
1421-1349 (D) a manufacturer rebate on a motor vehicle; or
1422-1350 (E) a tax or fee legally imposed directly on the consumer.
1423-1351 (105) "Purchaser" means a person to whom:
1424-1352 (a) a sale of tangible personal property is made;
1425-1353 (b) a product is transferred electronically; or
1426-1354 (c) a service is furnished.
1427-1355 (106) "Qualifying data center" means a data center facility that:
1428-1356 (a) houses a group of networked server computers in one physical location in order to
1429-1357disseminate, manage, and store data and information;
1430-1358 (b) is located in the state;
1431-1359 (c) is a new operation constructed on or after July 1, 2016;
1432-1360 (d) consists of one or more buildings that total 150,000 or more square feet;
1433-1361 (e) is owned or leased by:
1434-1362 (i) the operator of the data center facility; or
1435-1363 (ii) a person under common ownership, as defined in Section 59-7-101, of the operator
1436-1364of the data center facility; and
1437-1365 (f) is located on one or more parcels of land that are owned or leased by:
1438-1366 (i) the operator of the data center facility; or
1439-1367 (ii) a person under common ownership, as defined in Section 59-7-101, of the operator
1440-1368of the data center facility.
1441-1369 (107) "Regularly rented" means:
1442-1370 (a) rented to a guest for value three or more times during a calendar year; or
1443-1371 (b) advertised or held out to the public as a place that is regularly rented to guests for
1444-1372value. H.B. 54 Enrolled Copy
1561+1481 (D) sports or recreational equipment; or
1562+1482 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1563+1483event or school-related activity if the amounts paid or charged are passed through to a person:
1564+1484 (A) other than a:
1565+1485 (I) school;
1566+1486 (II) nonprofit organization authorized by a school board or a governing body of a
1567+1487private school to organize and direct a competitive secondary school activity; or
1568+1488 (III) nonprofit association authorized by a school board or a governing body of a
1569+1489private school to organize and direct a competitive secondary school activity; and
1570+1490 (B) that is required to collect sales and use taxes under this chapter.
1571+1491 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1572+1492commission may make rules defining the term "passed through."
1573+1493 (120) For purposes of this section and Section 59-12-104, "school" means:
1574+1494 (a) an elementary school or a secondary school that:
1575+1495 (i) is a:
1576+1496 (A) public school; or
1577+1497 (B) private school; and
1578+1498 (ii) provides instruction for one or more grades kindergarten through 12; or
1579+1499 (b) a public school district.
1580+1500 (121) (a) "Seller" means a person that makes a sale, lease, or rental of:
1581+1501 (i) tangible personal property;
1582+1502 (ii) a product transferred electronically; or
1583+1503 (iii) a service.
1584+1504 (b) "Seller" includes a marketplace facilitator.
1585+1505 (122) (a) "Semiconductor fabricating, processing, research, or development materials"
1586+1506means tangible personal property or a product transferred electronically if the tangible personal
1587+1507property or product transferred electronically is:
1588+1508 (i) used primarily in the process of:
1589+1509 (A) (I) manufacturing a semiconductor;
1590+1510 (II) fabricating a semiconductor; or
1591+1511 (III) research or development of a: 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
14451592 - 50 -
1446-1373 (108) "Rental" means the same as that term is defined in Subsection (60).
1447-1374 (109) (a) Except as provided in Subsection (109)(b), "repairs or renovations of tangible
1448-1375personal property" means:
1449-1376 (i) a repair or renovation of tangible personal property that is not permanently attached
1450-1377to real property; or
1451-1378 (ii) attaching tangible personal property or a product transferred electronically to other
1452-1379tangible personal property or detaching tangible personal property or a product transferred
1453-1380electronically from other tangible personal property if:
1454-1381 (A) the other tangible personal property to which the tangible personal property or
1455-1382product transferred electronically is attached or from which the tangible personal property or
1456-1383product transferred electronically is detached is not permanently attached to real property; and
1457-1384 (B) the attachment of tangible personal property or a product transferred electronically
1458-1385to other tangible personal property or detachment of tangible personal property or a product
1459-1386transferred electronically from other tangible personal property is made in conjunction with a
1460-1387repair or replacement of tangible personal property or a product transferred electronically.
1461-1388 (b) "Repairs or renovations of tangible personal property" does not include:
1462-1389 (i) attaching prewritten computer software to other tangible personal property if the
1463-1390other tangible personal property to which the prewritten computer software is attached is not
1464-1391permanently attached to real property; or
1465-1392 (ii) detaching prewritten computer software from other tangible personal property if the
1466-1393other tangible personal property from which the prewritten computer software is detached is
1467-1394not permanently attached to real property.
1468-1395 (110) "Research and development" means the process of inquiry or experimentation
1469-1396aimed at the discovery of facts, devices, technologies, or applications and the process of
1470-1397preparing those devices, technologies, or applications for marketing.
1471-1398 (111) (a) "Residential telecommunications services" means a telecommunications
1472-1399service or an ancillary service that is provided to an individual for personal use:
1473-1400 (i) at a residential address; or Enrolled Copy H.B. 54
1593+1512 (Aa) semiconductor; or
1594+1513 (Bb) semiconductor manufacturing process; or
1595+1514 (B) maintaining an environment suitable for a semiconductor; or
1596+1515 (ii) consumed primarily in the process of:
1597+1516 (A) (I) manufacturing a semiconductor;
1598+1517 (II) fabricating a semiconductor; or
1599+1518 (III) research or development of a:
1600+1519 (Aa) semiconductor; or
1601+1520 (Bb) semiconductor manufacturing process; or
1602+1521 (B) maintaining an environment suitable for a semiconductor.
1603+1522 (b) "Semiconductor fabricating, processing, research, or development materials"
1604+1523includes:
1605+1524 (i) parts used in the repairs or renovations of tangible personal property or a product
1606+1525transferred electronically described in Subsection (122)(a); or
1607+1526 (ii) a chemical, catalyst, or other material used to:
1608+1527 (A) produce or induce in a semiconductor a:
1609+1528 (I) chemical change; or
1610+1529 (II) physical change;
1611+1530 (B) remove impurities from a semiconductor; or
1612+1531 (C) improve the marketable condition of a semiconductor.
1613+1532 (123) "Senior citizen center" means a facility having the primary purpose of providing
1614+1533services to the aged as defined in Section 62A-3-101.
1615+1534 (124) (a) Subject to Subsections (124)(b) and (c), "short-term lodging consumable"
1616+1535means tangible personal property that:
1617+1536 (i) a business that provides accommodations and services described in Subsection
1618+153759-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
1619+1538to a purchaser;
1620+1539 (ii) is intended to be consumed by the purchaser; and
1621+1540 (iii) is:
1622+1541 (A) included in the purchase price of the accommodations and services; and
1623+1542 (B) not separately stated on an invoice, bill of sale, or other similar document provided 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
14741624 - 51 -
1475-1401 (ii) at an institution, including a nursing home or a school, if the telecommunications
1476-1402service or ancillary service is provided to and paid for by the individual residing at the
1477-1403institution rather than the institution.
1478-1404 (b) For purposes of Subsection (111)(a)(i), a residential address includes an:
1479-1405 (i) apartment; or
1480-1406 (ii) other individual dwelling unit.
1481-1407 (112) "Residential use" means the use in or around a home, apartment building,
1482-1408sleeping quarters, and similar facilities or accommodations.
1483-1409 (113) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
1484-1410than:
1485-1411 (a) resale;
1486-1412 (b) sublease; or
1487-1413 (c) subrent.
1488-1414 (114) (a) "Retailer" means any person, unless prohibited by the Constitution of the
1489-1415United States or federal law, that is engaged in a regularly organized business in tangible
1490-1416personal property or any other taxable transaction under Subsection 59-12-103(1), and who is
1491-1417selling to the user or consumer and not for resale.
1492-1418 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1493-1419engaged in the business of selling to users or consumers within the state.
1494-1420 (115) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
1495-1421otherwise, in any manner, of tangible personal property or any other taxable transaction under
1496-1422Subsection 59-12-103(1), for consideration.
1497-1423 (b) "Sale" includes:
1498-1424 (i) installment and credit sales;
1499-1425 (ii) any closed transaction constituting a sale;
1500-1426 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1501-1427chapter;
1502-1428 (iv) any transaction if the possession of property is transferred but the seller retains the H.B. 54 Enrolled Copy
1625+1543to the purchaser.
1626+1544 (b) "Short-term lodging consumable" includes:
1627+1545 (i) a beverage;
1628+1546 (ii) a brush or comb;
1629+1547 (iii) a cosmetic;
1630+1548 (iv) a hair care product;
1631+1549 (v) lotion;
1632+1550 (vi) a magazine;
1633+1551 (vii) makeup;
1634+1552 (viii) a meal;
1635+1553 (ix) mouthwash;
1636+1554 (x) nail polish remover;
1637+1555 (xi) a newspaper;
1638+1556 (xii) a notepad;
1639+1557 (xiii) a pen;
1640+1558 (xiv) a pencil;
1641+1559 (xv) a razor;
1642+1560 (xvi) saline solution;
1643+1561 (xvii) a sewing kit;
1644+1562 (xviii) shaving cream;
1645+1563 (xix) a shoe shine kit;
1646+1564 (xx) a shower cap;
1647+1565 (xxi) a snack item;
1648+1566 (xxii) soap;
1649+1567 (xxiii) toilet paper;
1650+1568 (xxiv) a toothbrush;
1651+1569 (xxv) toothpaste; or
1652+1570 (xxvi) an item similar to Subsections (124)(b)(i) through (xxv) as the commission may
1653+1571provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1654+1572Rulemaking Act.
1655+1573 (c) "Short-term lodging consumable" does not include: 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
15031656 - 52 -
1504-1429title as security for the payment of the price; and
1505-1430 (v) any transaction under which right to possession, operation, or use of any article of
1506-1431tangible personal property is granted under a lease or contract and the transfer of possession
1507-1432would be taxable if an outright sale were made.
1508-1433 (116) "Sale at retail" means the same as that term is defined in Subsection (113).
1509-1434 (117) "Sale-leaseback transaction" means a transaction by which title to tangible
1510-1435personal property or a product transferred electronically that is subject to a tax under this
1511-1436chapter is transferred:
1512-1437 (a) by a purchaser-lessee;
1513-1438 (b) to a lessor;
1514-1439 (c) for consideration; and
1515-1440 (d) if:
1516-1441 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1517-1442of the tangible personal property or product transferred electronically;
1518-1443 (ii) the sale of the tangible personal property or product transferred electronically to the
1519-1444lessor is intended as a form of financing:
1520-1445 (A) for the tangible personal property or product transferred electronically; and
1521-1446 (B) to the purchaser-lessee; and
1522-1447 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1523-1448is required to:
1524-1449 (A) capitalize the tangible personal property or product transferred electronically for
1525-1450financial reporting purposes; and
1526-1451 (B) account for the lease payments as payments made under a financing arrangement.
1527-1452 (118) "Sales price" means the same as that term is defined in Subsection (104).
1528-1453 (119) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
1529-1454amounts charged by a school:
1530-1455 (i) sales that are directly related to the school's educational functions or activities
1531-1456including: Enrolled Copy H.B. 54
1657+1574 (i) tangible personal property that is cleaned or washed to allow the tangible personal
1658+1575property to be reused; or
1659+1576 (ii) a product transferred electronically.
1660+1577 (125) "Simplified electronic return" means the electronic return:
1661+1578 (a) described in Section 318(C) of the agreement; and
1662+1579 (b) approved by the governing board of the agreement.
1663+1580 (126) "Solar energy" means the sun used as the sole source of energy for producing
1664+1581electricity.
1665+1582 (127) (a) "Sports or recreational equipment" means an item:
1666+1583 (i) designed for human use; and
1667+1584 (ii) that is:
1668+1585 (A) worn in conjunction with:
1669+1586 (I) an athletic activity; or
1670+1587 (II) a recreational activity; and
1671+1588 (B) not suitable for general use.
1672+1589 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1673+1590commission shall make rules:
1674+1591 (i) listing the items that constitute "sports or recreational equipment"; and
1675+1592 (ii) that are consistent with the list of items that constitute "sports or recreational
1676+1593equipment" under the agreement.
1677+1594 (128) "State" means the state of Utah, its departments, and agencies.
1678+1595 (129) "Storage" means any keeping or retention of tangible personal property or any
1679+1596other taxable transaction under Subsection 59-12-103(1), in this state for any purpose except
1680+1597sale in the regular course of business.
1681+1598 (130) (a) Except as provided in Subsection (130)(d) or (e), "tangible personal property"
1682+1599means personal property that:
1683+1600 (i) may be:
1684+1601 (A) seen;
1685+1602 (B) weighed;
1686+1603 (C) measured;
1687+1604 (D) felt; or 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
15321688 - 53 -
1533-1457 (A) the sale of:
1534-1458 (I) textbooks;
1535-1459 (II) textbook fees;
1536-1460 (III) laboratory fees;
1537-1461 (IV) laboratory supplies; or
1538-1462 (V) safety equipment;
1539-1463 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1540-1464that:
1541-1465 (I) a student is specifically required to wear as a condition of participation in a
1542-1466school-related event or school-related activity; and
1543-1467 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1544-1468place of ordinary clothing;
1545-1469 (C) sales of the following if the net or gross revenues generated by the sales are
1546-1470deposited into a school district fund or school fund dedicated to school meals:
1547-1471 (I) food and food ingredients; or
1548-1472 (II) prepared food; or
1549-1473 (D) transportation charges for official school activities; or
1550-1474 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1551-1475event or school-related activity.
1552-1476 (b) "Sales relating to schools" does not include:
1553-1477 (i) bookstore sales of items that are not educational materials or supplies;
1554-1478 (ii) except as provided in Subsection (119)(a)(i)(B):
1555-1479 (A) clothing;
1556-1480 (B) clothing accessories or equipment;
1557-1481 (C) protective equipment; or
1558-1482 (D) sports or recreational equipment; or
1559-1483 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1560-1484event or school-related activity if the amounts paid or charged are passed through to a person: H.B. 54 Enrolled Copy
1689+1605 (E) touched; or
1690+1606 (ii) is in any manner perceptible to the senses.
1691+1607 (b) "Tangible personal property" includes:
1692+1608 (i) electricity;
1693+1609 (ii) water;
1694+1610 (iii) gas;
1695+1611 (iv) steam; or
1696+1612 (v) prewritten computer software, regardless of the manner in which the prewritten
1697+1613computer software is transferred.
1698+1614 (c) "Tangible personal property" includes the following regardless of whether the item
1699+1615is attached to real property:
1700+1616 (i) a dishwasher;
1701+1617 (ii) a dryer;
1702+1618 (iii) a freezer;
1703+1619 (iv) a microwave;
1704+1620 (v) a refrigerator;
1705+1621 (vi) a stove;
1706+1622 (vii) a washer; or
1707+1623 (viii) an item similar to Subsections (130)(c)(i) through (vii) as determined by the
1708+1624commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1709+1625Rulemaking Act.
1710+1626 (d) "Tangible personal property" does not include a product that is transferred
1711+1627electronically.
1712+1628 (e) "Tangible personal property" does not include the following if attached to real
1713+1629property, regardless of whether the attachment to real property is only through a line that
1714+1630supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1715+1631commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1716+1632Rulemaking Act:
1717+1633 (i) a hot water heater;
1718+1634 (ii) a water filtration system; or
1719+1635 (iii) a water softener system. 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
15611720 - 54 -
1562-1485 (A) other than a:
1563-1486 (I) school;
1564-1487 (II) nonprofit organization authorized by a school board or a governing body of a
1565-1488private school to organize and direct a competitive secondary school activity; or
1566-1489 (III) nonprofit association authorized by a school board or a governing body of a
1567-1490private school to organize and direct a competitive secondary school activity; and
1568-1491 (B) that is required to collect sales and use taxes under this chapter.
1569-1492 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1570-1493commission may make rules defining the term "passed through."
1571-1494 (120) For purposes of this section and Section 59-12-104, "school" means:
1572-1495 (a) an elementary school or a secondary school that:
1573-1496 (i) is a:
1574-1497 (A) public school; or
1575-1498 (B) private school; and
1576-1499 (ii) provides instruction for one or more grades kindergarten through 12; or
1577-1500 (b) a public school district.
1578-1501 (121) (a) "Seller" means a person that makes a sale, lease, or rental of:
1579-1502 (i) tangible personal property;
1580-1503 (ii) a product transferred electronically; or
1581-1504 (iii) a service.
1582-1505 (b) "Seller" includes a marketplace facilitator.
1583-1506 (122) (a) "Semiconductor fabricating, processing, research, or development materials"
1584-1507means tangible personal property or a product transferred electronically if the tangible personal
1585-1508property or product transferred electronically is:
1586-1509 (i) used primarily in the process of:
1587-1510 (A) (I) manufacturing a semiconductor;
1588-1511 (II) fabricating a semiconductor; or
1589-1512 (III) research or development of a: Enrolled Copy H.B. 54
1721+1636 (131) (a) "Telecommunications enabling or facilitating equipment, machinery, or
1722+1637software" means an item listed in Subsection (131)(b) if that item is purchased or leased
1723+1638primarily to enable or facilitate one or more of the following to function:
1724+1639 (i) telecommunications switching or routing equipment, machinery, or software; or
1725+1640 (ii) telecommunications transmission equipment, machinery, or software.
1726+1641 (b) The following apply to Subsection (131)(a):
1727+1642 (i) a pole;
1728+1643 (ii) software;
1729+1644 (iii) a supplementary power supply;
1730+1645 (iv) temperature or environmental equipment or machinery;
1731+1646 (v) test equipment;
1732+1647 (vi) a tower; or
1733+1648 (vii) equipment, machinery, or software that functions similarly to an item listed in
1734+1649Subsections (131)(b)(i) through (vi) as determined by the commission by rule made in
1735+1650accordance with Subsection (131)(c).
1736+1651 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1737+1652commission may by rule define what constitutes equipment, machinery, or software that
1738+1653functions similarly to an item listed in Subsections (131)(b)(i) through (vi).
1739+1654 (132) "Telecommunications equipment, machinery, or software required for 911
1740+1655service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
1741+1656Sec. 20.18.
1742+1657 (133) "Telecommunications maintenance or repair equipment, machinery, or software"
1743+1658means equipment, machinery, or software purchased or leased primarily to maintain or repair
1744+1659one or more of the following, regardless of whether the equipment, machinery, or software is
1745+1660purchased or leased as a spare part or as an upgrade or modification to one or more of the
1746+1661following:
1747+1662 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1748+1663 (b) telecommunications switching or routing equipment, machinery, or software; or
1749+1664 (c) telecommunications transmission equipment, machinery, or software.
1750+1665 (134) (a) "Telecommunications service" means the electronic conveyance, routing, or
1751+1666transmission of audio, data, video, voice, or any other information or signal to a point, or 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
15901752 - 55 -
1591-1513 (Aa) semiconductor; or
1592-1514 (Bb) semiconductor manufacturing process; or
1593-1515 (B) maintaining an environment suitable for a semiconductor; or
1594-1516 (ii) consumed primarily in the process of:
1595-1517 (A) (I) manufacturing a semiconductor;
1596-1518 (II) fabricating a semiconductor; or
1597-1519 (III) research or development of a:
1598-1520 (Aa) semiconductor; or
1599-1521 (Bb) semiconductor manufacturing process; or
1600-1522 (B) maintaining an environment suitable for a semiconductor.
1601-1523 (b) "Semiconductor fabricating, processing, research, or development materials"
1602-1524includes:
1603-1525 (i) parts used in the repairs or renovations of tangible personal property or a product
1604-1526transferred electronically described in Subsection (122)(a); or
1605-1527 (ii) a chemical, catalyst, or other material used to:
1606-1528 (A) produce or induce in a semiconductor a:
1607-1529 (I) chemical change; or
1608-1530 (II) physical change;
1609-1531 (B) remove impurities from a semiconductor; or
1610-1532 (C) improve the marketable condition of a semiconductor.
1611-1533 (123) "Senior citizen center" means a facility having the primary purpose of providing
1612-1534services to the aged as defined in Section 62A-3-101.
1613-1535 (124) (a) Subject to Subsections (124)(b) and (c), "short-term lodging consumable"
1614-1536means tangible personal property that:
1615-1537 (i) a business that provides accommodations and services described in Subsection
1616-153859-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
1617-1539to a purchaser;
1618-1540 (ii) is intended to be consumed by the purchaser; and H.B. 54 Enrolled Copy
1753+1667among or between points.
1754+1668 (b) "Telecommunications service" includes:
1755+1669 (i) an electronic conveyance, routing, or transmission with respect to which a computer
1756+1670processing application is used to act:
1757+1671 (A) on the code, form, or protocol of the content;
1758+1672 (B) for the purpose of electronic conveyance, routing, or transmission; and
1759+1673 (C) regardless of whether the service:
1760+1674 (I) is referred to as voice over Internet protocol service; or
1761+1675 (II) is classified by the Federal Communications Commission as enhanced or value
1762+1676added;
1763+1677 (ii) an 800 service;
1764+1678 (iii) a 900 service;
1765+1679 (iv) a fixed wireless service;
1766+1680 (v) a mobile wireless service;
1767+1681 (vi) a postpaid calling service;
1768+1682 (vii) a prepaid calling service;
1769+1683 (viii) a prepaid wireless calling service; or
1770+1684 (ix) a private communications service.
1771+1685 (c) "Telecommunications service" does not include:
1772+1686 (i) advertising, including directory advertising;
1773+1687 (ii) an ancillary service;
1774+1688 (iii) a billing and collection service provided to a third party;
1775+1689 (iv) a data processing and information service if:
1776+1690 (A) the data processing and information service allows data to be:
1777+1691 (I) (Aa) acquired;
1778+1692 (Bb) generated;
1779+1693 (Cc) processed;
1780+1694 (Dd) retrieved; or
1781+1695 (Ee) stored; and
1782+1696 (II) delivered by an electronic transmission to a purchaser; and
1783+1697 (B) the purchaser's primary purpose for the underlying transaction is the processed data 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
16191784 - 56 -
1620-1541 (iii) is:
1621-1542 (A) included in the purchase price of the accommodations and services; and
1622-1543 (B) not separately stated on an invoice, bill of sale, or other similar document provided
1623-1544to the purchaser.
1624-1545 (b) "Short-term lodging consumable" includes:
1625-1546 (i) a beverage;
1626-1547 (ii) a brush or comb;
1627-1548 (iii) a cosmetic;
1628-1549 (iv) a hair care product;
1629-1550 (v) lotion;
1630-1551 (vi) a magazine;
1631-1552 (vii) makeup;
1632-1553 (viii) a meal;
1633-1554 (ix) mouthwash;
1634-1555 (x) nail polish remover;
1635-1556 (xi) a newspaper;
1636-1557 (xii) a notepad;
1637-1558 (xiii) a pen;
1638-1559 (xiv) a pencil;
1639-1560 (xv) a razor;
1640-1561 (xvi) saline solution;
1641-1562 (xvii) a sewing kit;
1642-1563 (xviii) shaving cream;
1643-1564 (xix) a shoe shine kit;
1644-1565 (xx) a shower cap;
1645-1566 (xxi) a snack item;
1646-1567 (xxii) soap;
1647-1568 (xxiii) toilet paper; Enrolled Copy H.B. 54
1785+1698or information;
1786+1699 (v) installation or maintenance of the following on a customer's premises:
1787+1700 (A) equipment; or
1788+1701 (B) wiring;
1789+1702 (vi) Internet access service;
1790+1703 (vii) a paging service;
1791+1704 (viii) a product transferred electronically, including:
1792+1705 (A) music;
1793+1706 (B) reading material;
1794+1707 (C) a ring tone;
1795+1708 (D) software; or
1796+1709 (E) video;
1797+1710 (ix) a radio and television audio and video programming service:
1798+1711 (A) regardless of the medium; and
1799+1712 (B) including:
1800+1713 (I) furnishing conveyance, routing, or transmission of a television audio and video
1801+1714programming service by a programming service provider;
1802+1715 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1803+1716 (III) audio and video programming services delivered by a commercial mobile radio
1804+1717service provider as defined in 47 C.F.R. Sec. 20.3;
1805+1718 (x) a value-added nonvoice data service; or
1806+1719 (xi) tangible personal property.
1807+1720 (135) (a) "Telecommunications service provider" means a person that:
1808+1721 (i) owns, controls, operates, or manages a telecommunications service; and
1809+1722 (ii) engages in an activity described in Subsection (135)(a)(i) for the shared use with or
1810+1723resale to any person of the telecommunications service.
1811+1724 (b) A person described in Subsection (135)(a) is a telecommunications service provider
1812+1725whether or not the Public Service Commission of Utah regulates:
1813+1726 (i) that person; or
1814+1727 (ii) the telecommunications service that the person owns, controls, operates, or
1815+1728manages. 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
16481816 - 57 -
1649-1569 (xxiv) a toothbrush;
1650-1570 (xxv) toothpaste; or
1651-1571 (xxvi) an item similar to Subsections (124)(b)(i) through (xxv) as the commission may
1652-1572provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1653-1573Rulemaking Act.
1654-1574 (c) "Short-term lodging consumable" does not include:
1655-1575 (i) tangible personal property that is cleaned or washed to allow the tangible personal
1656-1576property to be reused; or
1657-1577 (ii) a product transferred electronically.
1658-1578 (125) "Simplified electronic return" means the electronic return:
1659-1579 (a) described in Section 318(C) of the agreement; and
1660-1580 (b) approved by the governing board of the agreement.
1661-1581 (126) "Solar energy" means the sun used as the sole source of energy for producing
1662-1582electricity.
1663-1583 (127) (a) "Sports or recreational equipment" means an item:
1664-1584 (i) designed for human use; and
1665-1585 (ii) that is:
1666-1586 (A) worn in conjunction with:
1667-1587 (I) an athletic activity; or
1668-1588 (II) a recreational activity; and
1669-1589 (B) not suitable for general use.
1670-1590 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1671-1591commission shall make rules:
1672-1592 (i) listing the items that constitute "sports or recreational equipment"; and
1673-1593 (ii) that are consistent with the list of items that constitute "sports or recreational
1674-1594equipment" under the agreement.
1675-1595 (128) "State" means the state of Utah, its departments, and agencies.
1676-1596 (129) "Storage" means any keeping or retention of tangible personal property or any H.B. 54 Enrolled Copy
1817+1729 (136) (a) "Telecommunications switching or routing equipment, machinery, or
1818+1730software" means an item listed in Subsection (136)(b) if that item is purchased or leased
1819+1731primarily for switching or routing:
1820+1732 (i) an ancillary service;
1821+1733 (ii) data communications;
1822+1734 (iii) voice communications; or
1823+1735 (iv) telecommunications service.
1824+1736 (b) The following apply to Subsection (136)(a):
1825+1737 (i) a bridge;
1826+1738 (ii) a computer;
1827+1739 (iii) a cross connect;
1828+1740 (iv) a modem;
1829+1741 (v) a multiplexer;
1830+1742 (vi) plug in circuitry;
1831+1743 (vii) a router;
1832+1744 (viii) software;
1833+1745 (ix) a switch; or
1834+1746 (x) equipment, machinery, or software that functions similarly to an item listed in
1835+1747Subsections (136)(b)(i) through (ix) as determined by the commission by rule made in
1836+1748accordance with Subsection (136)(c).
1837+1749 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1838+1750commission may by rule define what constitutes equipment, machinery, or software that
1839+1751functions similarly to an item listed in Subsections (136)(b)(i) through (ix).
1840+1752 (137) (a) "Telecommunications transmission equipment, machinery, or software"
1841+1753means an item listed in Subsection (137)(b) if that item is purchased or leased primarily for
1842+1754sending, receiving, or transporting:
1843+1755 (i) an ancillary service;
1844+1756 (ii) data communications;
1845+1757 (iii) voice communications; or
1846+1758 (iv) telecommunications service.
1847+1759 (b) The following apply to Subsection (137)(a): 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
16771848 - 58 -
1678-1597other taxable transaction under Subsection 59-12-103(1), in this state for any purpose except
1679-1598sale in the regular course of business.
1680-1599 (130) (a) Except as provided in Subsection (130)(d) or (e), "tangible personal property"
1681-1600means personal property that:
1682-1601 (i) may be:
1683-1602 (A) seen;
1684-1603 (B) weighed;
1685-1604 (C) measured;
1686-1605 (D) felt; or
1687-1606 (E) touched; or
1688-1607 (ii) is in any manner perceptible to the senses.
1689-1608 (b) "Tangible personal property" includes:
1690-1609 (i) electricity;
1691-1610 (ii) water;
1692-1611 (iii) gas;
1693-1612 (iv) steam; or
1694-1613 (v) prewritten computer software, regardless of the manner in which the prewritten
1695-1614computer software is transferred.
1696-1615 (c) "Tangible personal property" includes the following regardless of whether the item
1697-1616is attached to real property:
1698-1617 (i) a dishwasher;
1699-1618 (ii) a dryer;
1700-1619 (iii) a freezer;
1701-1620 (iv) a microwave;
1702-1621 (v) a refrigerator;
1703-1622 (vi) a stove;
1704-1623 (vii) a washer; or
1705-1624 (viii) an item similar to Subsections (130)(c)(i) through (vii) as determined by the Enrolled Copy H.B. 54
1849+1760 (i) an amplifier;
1850+1761 (ii) a cable;
1851+1762 (iii) a closure;
1852+1763 (iv) a conduit;
1853+1764 (v) a controller;
1854+1765 (vi) a duplexer;
1855+1766 (vii) a filter;
1856+1767 (viii) an input device;
1857+1768 (ix) an input/output device;
1858+1769 (x) an insulator;
1859+1770 (xi) microwave machinery or equipment;
1860+1771 (xii) an oscillator;
1861+1772 (xiii) an output device;
1862+1773 (xiv) a pedestal;
1863+1774 (xv) a power converter;
1864+1775 (xvi) a power supply;
1865+1776 (xvii) a radio channel;
1866+1777 (xviii) a radio receiver;
1867+1778 (xix) a radio transmitter;
1868+1779 (xx) a repeater;
1869+1780 (xxi) software;
1870+1781 (xxii) a terminal;
1871+1782 (xxiii) a timing unit;
1872+1783 (xxiv) a transformer;
1873+1784 (xxv) a wire; or
1874+1785 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1875+1786Subsections (137)(b)(i) through (xxv) as determined by the commission by rule made in
1876+1787accordance with Subsection (137)(c).
1877+1788 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1878+1789commission may by rule define what constitutes equipment, machinery, or software that
1879+1790functions similarly to an item listed in Subsections (137)(b)(i) through (xxv). 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
17061880 - 59 -
1707-1625commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1708-1626Rulemaking Act.
1709-1627 (d) "Tangible personal property" does not include a product that is transferred
1710-1628electronically.
1711-1629 (e) "Tangible personal property" does not include the following if attached to real
1712-1630property, regardless of whether the attachment to real property is only through a line that
1713-1631supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1714-1632commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1715-1633Rulemaking Act:
1716-1634 (i) a hot water heater;
1717-1635 (ii) a water filtration system; or
1718-1636 (iii) a water softener system.
1719-1637 (131) (a) "Telecommunications enabling or facilitating equipment, machinery, or
1720-1638software" means an item listed in Subsection (131)(b) if that item is purchased or leased
1721-1639primarily to enable or facilitate one or more of the following to function:
1722-1640 (i) telecommunications switching or routing equipment, machinery, or software; or
1723-1641 (ii) telecommunications transmission equipment, machinery, or software.
1724-1642 (b) The following apply to Subsection (131)(a):
1725-1643 (i) a pole;
1726-1644 (ii) software;
1727-1645 (iii) a supplementary power supply;
1728-1646 (iv) temperature or environmental equipment or machinery;
1729-1647 (v) test equipment;
1730-1648 (vi) a tower; or
1731-1649 (vii) equipment, machinery, or software that functions similarly to an item listed in
1732-1650Subsections (131)(b)(i) through (vi) as determined by the commission by rule made in
1733-1651accordance with Subsection (131)(c).
1734-1652 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the H.B. 54 Enrolled Copy
1881+1791 (138) (a) "Textbook for a higher education course" means a textbook or other printed
1882+1792material that is required for a course:
1883+1793 (i) offered by an institution of higher education; and
1884+1794 (ii) that the purchaser of the textbook or other printed material attends or will attend.
1885+1795 (b) "Textbook for a higher education course" includes a textbook in electronic format.
1886+1796 (139) "Tobacco" means:
1887+1797 (a) a cigarette;
1888+1798 (b) a cigar;
1889+1799 (c) chewing tobacco;
1890+1800 (d) pipe tobacco; or
1891+1801 (e) any other item that contains tobacco.
1892+1802 (140) "Unassisted amusement device" means an amusement device, skill device, or
1893+1803ride device that is started and stopped by the purchaser or renter of the right to use or operate
1894+1804the amusement device, skill device, or ride device.
1895+1805 (141) (a) "Use" means the exercise of any right or power over tangible personal
1896+1806property, a product transferred electronically, or a service under Subsection 59-12-103(1),
1897+1807incident to the ownership or the leasing of that tangible personal property, product transferred
1898+1808electronically, or service.
1899+1809 (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1900+1810property, a product transferred electronically, or a service in the regular course of business and
1901+1811held for resale.
1902+1812 (142) "Value-added nonvoice data service" means a service:
1903+1813 (a) that otherwise meets the definition of a telecommunications service except that a
1904+1814computer processing application is used to act primarily for a purpose other than conveyance,
1905+1815routing, or transmission; and
1906+1816 (b) with respect to which a computer processing application is used to act on data or
1907+1817information:
1908+1818 (i) code;
1909+1819 (ii) content;
1910+1820 (iii) form; or
1911+1821 (iv) protocol. 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
17351912 - 60 -
1736-1653commission may by rule define what constitutes equipment, machinery, or software that
1737-1654functions similarly to an item listed in Subsections (131)(b)(i) through (vi).
1738-1655 (132) "Telecommunications equipment, machinery, or software required for 911
1739-1656service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
1740-1657Sec. 20.18.
1741-1658 (133) "Telecommunications maintenance or repair equipment, machinery, or software"
1742-1659means equipment, machinery, or software purchased or leased primarily to maintain or repair
1743-1660one or more of the following, regardless of whether the equipment, machinery, or software is
1744-1661purchased or leased as a spare part or as an upgrade or modification to one or more of the
1745-1662following:
1746-1663 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1747-1664 (b) telecommunications switching or routing equipment, machinery, or software; or
1748-1665 (c) telecommunications transmission equipment, machinery, or software.
1749-1666 (134) (a) "Telecommunications service" means the electronic conveyance, routing, or
1750-1667transmission of audio, data, video, voice, or any other information or signal to a point, or
1751-1668among or between points.
1752-1669 (b) "Telecommunications service" includes:
1753-1670 (i) an electronic conveyance, routing, or transmission with respect to which a computer
1754-1671processing application is used to act:
1755-1672 (A) on the code, form, or protocol of the content;
1756-1673 (B) for the purpose of electronic conveyance, routing, or transmission; and
1757-1674 (C) regardless of whether the service:
1758-1675 (I) is referred to as voice over Internet protocol service; or
1759-1676 (II) is classified by the Federal Communications Commission as enhanced or value
1760-1677added;
1761-1678 (ii) an 800 service;
1762-1679 (iii) a 900 service;
1763-1680 (iv) a fixed wireless service; Enrolled Copy H.B. 54
1913+1822 (143) (a) Subject to Subsection (143)(b), "vehicle" means the following that are
1914+1823required to be titled, registered, or titled and registered:
1915+1824 (i) an aircraft as defined in Section 72-10-102;
1916+1825 (ii) a vehicle as defined in Section 41-1a-102;
1917+1826 (iii) an off-highway vehicle as defined in Section 41-22-2; or
1918+1827 (iv) a vessel as defined in Section 41-1a-102.
1919+1828 (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
1920+1829 (i) a vehicle described in Subsection (143)(a); or
1921+1830 (ii) (A) a locomotive;
1922+1831 (B) a freight car;
1923+1832 (C) railroad work equipment; or
1924+1833 (D) other railroad rolling stock.
1925+1834 (144) "Vehicle dealer" means a person engaged in the business of buying, selling, or
1926+1835exchanging a vehicle as defined in Subsection (143).
1927+1836 (145) (a) "Vertical service" means an ancillary service that:
1928+1837 (i) is offered in connection with one or more telecommunications services; and
1929+1838 (ii) offers an advanced calling feature that allows a customer to:
1930+1839 (A) identify a caller; and
1931+1840 (B) manage multiple calls and call connections.
1932+1841 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1933+1842conference bridging service.
1934+1843 (146) (a) "Voice mail service" means an ancillary service that enables a customer to
1935+1844receive, send, or store a recorded message.
1936+1845 (b) "Voice mail service" does not include a vertical service that a customer is required
1937+1846to have in order to utilize a voice mail service.
1938+1847 (147) (a) Except as provided in Subsection (147)(b), "waste energy facility" means a
1939+1848facility that generates electricity:
1940+1849 (i) using as the primary source of energy waste materials that would be placed in a
1941+1850landfill or refuse pit if it were not used to generate electricity, including:
1942+1851 (A) tires;
1943+1852 (B) waste coal; 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
17641944 - 61 -
1765-1681 (v) a mobile wireless service;
1766-1682 (vi) a postpaid calling service;
1767-1683 (vii) a prepaid calling service;
1768-1684 (viii) a prepaid wireless calling service; or
1769-1685 (ix) a private communications service.
1770-1686 (c) "Telecommunications service" does not include:
1771-1687 (i) advertising, including directory advertising;
1772-1688 (ii) an ancillary service;
1773-1689 (iii) a billing and collection service provided to a third party;
1774-1690 (iv) a data processing and information service if:
1775-1691 (A) the data processing and information service allows data to be:
1776-1692 (I) (Aa) acquired;
1777-1693 (Bb) generated;
1778-1694 (Cc) processed;
1779-1695 (Dd) retrieved; or
1780-1696 (Ee) stored; and
1781-1697 (II) delivered by an electronic transmission to a purchaser; and
1782-1698 (B) the purchaser's primary purpose for the underlying transaction is the processed data
1783-1699or information;
1784-1700 (v) installation or maintenance of the following on a customer's premises:
1785-1701 (A) equipment; or
1786-1702 (B) wiring;
1787-1703 (vi) Internet access service;
1788-1704 (vii) a paging service;
1789-1705 (viii) a product transferred electronically, including:
1790-1706 (A) music;
1791-1707 (B) reading material;
1792-1708 (C) a ring tone; H.B. 54 Enrolled Copy
1945+1853 (C) oil shale; or
1946+1854 (D) municipal solid waste; and
1947+1855 (ii) in amounts greater than actually required for the operation of the facility.
1948+1856 (b) "Waste energy facility" does not include a facility that incinerates:
1949+1857 (i) hospital waste as defined in 40 C.F.R. 60.51c; or
1950+1858 (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1951+1859 (148) "Watercraft" means a vessel as defined in Section 73-18-2.
1952+1860 (149) "Wind energy" means wind used as the sole source of energy to produce
1953+1861electricity.
1954+1862 (150) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
1955+1863location by the United States Postal Service.
1956+1864 Section 8. Section 59-12-103 is amended to read:
1957+1865 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
1958+1866tax revenues.
1959+1867 (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
1960+1868sales price for amounts paid or charged for the following transactions:
1961+1869 (a) retail sales of tangible personal property made within the state;
1962+1870 (b) amounts paid for:
1963+1871 (i) telecommunications service, other than mobile telecommunications service, that
1964+1872originates and terminates within the boundaries of this state;
1965+1873 (ii) mobile telecommunications service that originates and terminates within the
1966+1874boundaries of one state only to the extent permitted by the Mobile Telecommunications
1967+1875Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
1968+1876 (iii) an ancillary service associated with a:
1969+1877 (A) telecommunications service described in Subsection (1)(b)(i); or
1970+1878 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
1971+1879 (c) sales of the following for commercial use:
1972+1880 (i) gas;
1973+1881 (ii) electricity;
1974+1882 (iii) heat;
1975+1883 (iv) coal; 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
17931976 - 62 -
1794-1709 (D) software; or
1795-1710 (E) video;
1796-1711 (ix) a radio and television audio and video programming service:
1797-1712 (A) regardless of the medium; and
1798-1713 (B) including:
1799-1714 (I) furnishing conveyance, routing, or transmission of a television audio and video
1800-1715programming service by a programming service provider;
1801-1716 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1802-1717 (III) audio and video programming services delivered by a commercial mobile radio
1803-1718service provider as defined in 47 C.F.R. Sec. 20.3;
1804-1719 (x) a value-added nonvoice data service; or
1805-1720 (xi) tangible personal property.
1806-1721 (135) (a) "Telecommunications service provider" means a person that:
1807-1722 (i) owns, controls, operates, or manages a telecommunications service; and
1808-1723 (ii) engages in an activity described in Subsection (135)(a)(i) for the shared use with or
1809-1724resale to any person of the telecommunications service.
1810-1725 (b) A person described in Subsection (135)(a) is a telecommunications service provider
1811-1726whether or not the Public Service Commission of Utah regulates:
1812-1727 (i) that person; or
1813-1728 (ii) the telecommunications service that the person owns, controls, operates, or
1814-1729manages.
1815-1730 (136) (a) "Telecommunications switching or routing equipment, machinery, or
1816-1731software" means an item listed in Subsection (136)(b) if that item is purchased or leased
1817-1732primarily for switching or routing:
1818-1733 (i) an ancillary service;
1819-1734 (ii) data communications;
1820-1735 (iii) voice communications; or
1821-1736 (iv) telecommunications service. Enrolled Copy H.B. 54
1977+1884 (v) fuel oil; or
1978+1885 (vi) other fuels;
1979+1886 (d) sales of the following for residential use:
1980+1887 (i) gas;
1981+1888 (ii) electricity;
1982+1889 (iii) heat;
1983+1890 (iv) coal;
1984+1891 (v) fuel oil; or
1985+1892 (vi) other fuels;
1986+1893 (e) sales of prepared food;
1987+1894 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
1988+1895user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
1989+1896exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
1990+1897fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
1991+1898television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
1992+1899driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
1993+1900tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
1994+1901horseback rides, sports activities, or any other amusement, entertainment, recreation,
1995+1902exhibition, cultural, or athletic activity;
1996+1903 (g) amounts paid or charged for services for repairs or renovations of tangible personal
1997+1904property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
1998+1905 (i) the tangible personal property; and
1999+1906 (ii) parts used in the repairs or renovations of the tangible personal property described
2000+1907in Subsection (1)(g)(i), regardless of whether:
2001+1908 (A) any parts are actually used in the repairs or renovations of that tangible personal
2002+1909property; or
2003+1910 (B) the particular parts used in the repairs or renovations of that tangible personal
2004+1911property are exempt from a tax under this chapter;
2005+1912 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
2006+1913assisted cleaning or washing of tangible personal property;
2007+1914 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
18222008 - 63 -
1823-1737 (b) The following apply to Subsection (136)(a):
1824-1738 (i) a bridge;
1825-1739 (ii) a computer;
1826-1740 (iii) a cross connect;
1827-1741 (iv) a modem;
1828-1742 (v) a multiplexer;
1829-1743 (vi) plug in circuitry;
1830-1744 (vii) a router;
1831-1745 (viii) software;
1832-1746 (ix) a switch; or
1833-1747 (x) equipment, machinery, or software that functions similarly to an item listed in
1834-1748Subsections (136)(b)(i) through (ix) as determined by the commission by rule made in
1835-1749accordance with Subsection (136)(c).
1836-1750 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1837-1751commission may by rule define what constitutes equipment, machinery, or software that
1838-1752functions similarly to an item listed in Subsections (136)(b)(i) through (ix).
1839-1753 (137) (a) "Telecommunications transmission equipment, machinery, or software"
1840-1754means an item listed in Subsection (137)(b) if that item is purchased or leased primarily for
1841-1755sending, receiving, or transporting:
1842-1756 (i) an ancillary service;
1843-1757 (ii) data communications;
1844-1758 (iii) voice communications; or
1845-1759 (iv) telecommunications service.
1846-1760 (b) The following apply to Subsection (137)(a):
1847-1761 (i) an amplifier;
1848-1762 (ii) a cable;
1849-1763 (iii) a closure;
1850-1764 (iv) a conduit; H.B. 54 Enrolled Copy
2009+1915accommodations and services that are regularly rented for less than 30 consecutive days;
2010+1916 (j) amounts paid or charged for laundry or dry cleaning services;
2011+1917 (k) amounts paid or charged for leases or rentals of tangible personal property if within
2012+1918this state the tangible personal property is:
2013+1919 (i) stored;
2014+1920 (ii) used; or
2015+1921 (iii) otherwise consumed;
2016+1922 (l) amounts paid or charged for tangible personal property if within this state the
2017+1923tangible personal property is:
2018+1924 (i) stored;
2019+1925 (ii) used; or
2020+1926 (iii) consumed; and
2021+1927 (m) amounts paid or charged for a sale:
2022+1928 (i) (A) of a product transferred electronically; or
2023+1929 (B) of a repair or renovation of a product transferred electronically; and
2024+1930 (ii) regardless of whether the sale provides:
2025+1931 (A) a right of permanent use of the product; or
2026+1932 (B) a right to use the product that is less than a permanent use, including a right:
2027+1933 (I) for a definite or specified length of time; and
2028+1934 (II) that terminates upon the occurrence of a condition.
2029+1935 (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
2030+1936are imposed on a transaction described in Subsection (1) equal to the sum of:
2031+1937 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
2032+1938 (A) 4.70% plus the rate specified in Subsection (12)(a); and
2033+1939 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
2034+1940and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
2035+1941through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
2036+1942State Sales and Use Tax Act; and
2037+1943 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
2038+1944and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
2039+1945through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
18512040 - 64 -
1852-1765 (v) a controller;
1853-1766 (vi) a duplexer;
1854-1767 (vii) a filter;
1855-1768 (viii) an input device;
1856-1769 (ix) an input/output device;
1857-1770 (x) an insulator;
1858-1771 (xi) microwave machinery or equipment;
1859-1772 (xii) an oscillator;
1860-1773 (xiii) an output device;
1861-1774 (xiv) a pedestal;
1862-1775 (xv) a power converter;
1863-1776 (xvi) a power supply;
1864-1777 (xvii) a radio channel;
1865-1778 (xviii) a radio receiver;
1866-1779 (xix) a radio transmitter;
1867-1780 (xx) a repeater;
1868-1781 (xxi) software;
1869-1782 (xxii) a terminal;
1870-1783 (xxiii) a timing unit;
1871-1784 (xxiv) a transformer;
1872-1785 (xxv) a wire; or
1873-1786 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1874-1787Subsections (137)(b)(i) through (xxv) as determined by the commission by rule made in
1875-1788accordance with Subsection (137)(c).
1876-1789 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1877-1790commission may by rule define what constitutes equipment, machinery, or software that
1878-1791functions similarly to an item listed in Subsections (137)(b)(i) through (xxv).
1879-1792 (138) (a) "Textbook for a higher education course" means a textbook or other printed Enrolled Copy H.B. 54
2041+1946imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
2042+1947 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2043+1948transaction under this chapter other than this part.
2044+1949 (b) Except as provided in Subsection (2)(e) or (f) and subject to Subsection (2)(k), a
2045+1950state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
2046+1951the sum of:
2047+1952 (i) a state tax imposed on the transaction at a tax rate of 2%; and
2048+1953 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2049+1954transaction under this chapter other than this part.
2050+1955 (c) (i) Except as provided in Subsection (2)(e) or (f), a local tax is imposed on amounts
2051+1956paid or charged for food and food ingredients equal to the sum of the tax rates a county, city, or
2052+1957town imposes under this chapter on the amounts paid or charged for food or food ingredients.
2053+1958 (ii) There is no state tax imposed on amounts paid or charged for food and food
2054+1959ingredients.
2055+1960 [(c) Except as provided in Subsection (2)(e) or (f), a state tax and a local tax are
2056+1961imposed on amounts paid or charged for food and food ingredients equal to the sum of:]
2057+1962 [(i) a state tax imposed on the amounts paid or charged for food and food ingredients at
2058+1963a tax rate of 1.75%; and]
2059+1964 [(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2060+1965amounts paid or charged for food and food ingredients under this chapter other than this part.]
2061+1966 (d) Except as provided in Subsection (2)(e) or (f), a state tax is imposed on amounts
2062+1967paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
2063+1968a rate of 4.85%.
2064+1969 (e) (i) For a bundled transaction that is attributable to food and food ingredients and
2065+1970tangible personal property other than food and food ingredients, a state tax and a local tax is
2066+1971imposed on the entire bundled transaction equal to the sum of:
2067+1972 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
2068+1973 (I) the tax rate described in Subsection (2)(a)(i)(A); and
2069+1974 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
2070+1975Sales and Use Tax Act, if the location of the transaction as determined under Sections
2071+197659-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18, 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
18802072 - 65 -
1881-1793material that is required for a course:
1882-1794 (i) offered by an institution of higher education; and
1883-1795 (ii) that the purchaser of the textbook or other printed material attends or will attend.
1884-1796 (b) "Textbook for a higher education course" includes a textbook in electronic format.
1885-1797 (139) "Tobacco" means:
1886-1798 (a) a cigarette;
1887-1799 (b) a cigar;
1888-1800 (c) chewing tobacco;
1889-1801 (d) pipe tobacco; or
1890-1802 (e) any other item that contains tobacco.
1891-1803 (140) "Unassisted amusement device" means an amusement device, skill device, or
1892-1804ride device that is started and stopped by the purchaser or renter of the right to use or operate
1893-1805the amusement device, skill device, or ride device.
1894-1806 (141) (a) "Use" means the exercise of any right or power over tangible personal
1895-1807property, a product transferred electronically, or a service under Subsection 59-12-103(1),
1896-1808incident to the ownership or the leasing of that tangible personal property, product transferred
1897-1809electronically, or service.
1898-1810 (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1899-1811property, a product transferred electronically, or a service in the regular course of business and
1900-1812held for resale.
1901-1813 (142) "Value-added nonvoice data service" means a service:
1902-1814 (a) that otherwise meets the definition of a telecommunications service except that a
1903-1815computer processing application is used to act primarily for a purpose other than conveyance,
1904-1816routing, or transmission; and
1905-1817 (b) with respect to which a computer processing application is used to act on data or
1906-1818information:
1907-1819 (i) code;
1908-1820 (ii) content; H.B. 54 Enrolled Copy
2073+1977Additional State Sales and Use Tax Act; and
2074+1978 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
2075+1979Sales and Use Tax Act, if the location of the transaction as determined under Sections
2076+198059-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
2077+1981the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
2078+1982 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
2079+1983described in Subsection (2)(a)(ii).
2080+1984 (ii) If an optional computer software maintenance contract is a bundled transaction that
2081+1985consists of taxable and nontaxable products that are not separately itemized on an invoice or
2082+1986similar billing document, the purchase of the optional computer software maintenance contract
2083+1987is 40% taxable under this chapter and 60% nontaxable under this chapter.
2084+1988 (iii) Subject to Subsection (2)(e)(iv), for a bundled transaction other than a bundled
2085+1989transaction described in Subsection (2)(e)(i) or (ii):
2086+1990 (A) if the sales price of the bundled transaction is attributable to tangible personal
2087+1991property, a product, or a service that is subject to taxation under this chapter and tangible
2088+1992personal property, a product, or service that is not subject to taxation under this chapter, the
2089+1993entire bundled transaction is subject to taxation under this chapter unless:
2090+1994 (I) the seller is able to identify by reasonable and verifiable standards the tangible
2091+1995personal property, product, or service that is not subject to taxation under this chapter from the
2092+1996books and records the seller keeps in the seller's regular course of business; or
2093+1997 (II) state or federal law provides otherwise; or
2094+1998 (B) if the sales price of a bundled transaction is attributable to two or more items of
2095+1999tangible personal property, products, or services that are subject to taxation under this chapter
2096+2000at different rates, the entire bundled transaction is subject to taxation under this chapter at the
2097+2001higher tax rate unless:
2098+2002 (I) the seller is able to identify by reasonable and verifiable standards the tangible
2099+2003personal property, product, or service that is subject to taxation under this chapter at the lower
2100+2004tax rate from the books and records the seller keeps in the seller's regular course of business; or
2101+2005 (II) state or federal law provides otherwise.
2102+2006 (iv) For purposes of Subsection (2)(e)(iii), books and records that a seller keeps in the
2103+2007seller's regular course of business includes books and records the seller keeps in the regular 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
19092104 - 66 -
1910-1821 (iii) form; or
1911-1822 (iv) protocol.
1912-1823 (143) (a) Subject to Subsection (143)(b), "vehicle" means the following that are
1913-1824required to be titled, registered, or titled and registered:
1914-1825 (i) an aircraft as defined in Section 72-10-102;
1915-1826 (ii) a vehicle as defined in Section 41-1a-102;
1916-1827 (iii) an off-highway vehicle as defined in Section 41-22-2; or
1917-1828 (iv) a vessel as defined in Section 41-1a-102.
1918-1829 (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
1919-1830 (i) a vehicle described in Subsection (143)(a); or
1920-1831 (ii) (A) a locomotive;
1921-1832 (B) a freight car;
1922-1833 (C) railroad work equipment; or
1923-1834 (D) other railroad rolling stock.
1924-1835 (144) "Vehicle dealer" means a person engaged in the business of buying, selling, or
1925-1836exchanging a vehicle as defined in Subsection (143).
1926-1837 (145) (a) "Vertical service" means an ancillary service that:
1927-1838 (i) is offered in connection with one or more telecommunications services; and
1928-1839 (ii) offers an advanced calling feature that allows a customer to:
1929-1840 (A) identify a caller; and
1930-1841 (B) manage multiple calls and call connections.
1931-1842 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1932-1843conference bridging service.
1933-1844 (146) (a) "Voice mail service" means an ancillary service that enables a customer to
1934-1845receive, send, or store a recorded message.
1935-1846 (b) "Voice mail service" does not include a vertical service that a customer is required
1936-1847to have in order to utilize a voice mail service.
1937-1848 (147) (a) Except as provided in Subsection (147)(b), "waste energy facility" means a Enrolled Copy H.B. 54
2105+2008course of business for nontax purposes.
2106+2009 (f) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(f)(ii)
2107+2010and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
2108+2011product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
2109+2012of tangible personal property, other property, a product, or a service that is not subject to
2110+2013taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
2111+2014the seller, at the time of the transaction:
2112+2015 (A) separately states the portion of the transaction that is not subject to taxation under
2113+2016this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
2114+2017 (B) is able to identify by reasonable and verifiable standards, from the books and
2115+2018records the seller keeps in the seller's regular course of business, the portion of the transaction
2116+2019that is not subject to taxation under this chapter.
2117+2020 (ii) A purchaser and a seller may correct the taxability of a transaction if:
2118+2021 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
2119+2022the transaction that is not subject to taxation under this chapter was not separately stated on an
2120+2023invoice, bill of sale, or similar document provided to the purchaser because of an error or
2121+2024ignorance of the law; and
2122+2025 (B) the seller is able to identify by reasonable and verifiable standards, from the books
2123+2026and records the seller keeps in the seller's regular course of business, the portion of the
2124+2027transaction that is not subject to taxation under this chapter.
2125+2028 (iii) For purposes of Subsections (2)(f)(i) and (ii), books and records that a seller keeps
2126+2029in the seller's regular course of business includes books and records the seller keeps in the
2127+2030regular course of business for nontax purposes.
2128+2031 (g) (i) If the sales price of a transaction is attributable to two or more items of tangible
2129+2032personal property, products, or services that are subject to taxation under this chapter at
2130+2033different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
2131+2034unless the seller, at the time of the transaction:
2132+2035 (A) separately states the items subject to taxation under this chapter at each of the
2133+2036different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
2134+2037 (B) is able to identify by reasonable and verifiable standards the tangible personal
2135+2038property, product, or service that is subject to taxation under this chapter at the lower tax rate 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
19382136 - 67 -
1939-1849facility that generates electricity:
1940-1850 (i) using as the primary source of energy waste materials that would be placed in a
1941-1851landfill or refuse pit if it were not used to generate electricity, including:
1942-1852 (A) tires;
1943-1853 (B) waste coal;
1944-1854 (C) oil shale; or
1945-1855 (D) municipal solid waste; and
1946-1856 (ii) in amounts greater than actually required for the operation of the facility.
1947-1857 (b) "Waste energy facility" does not include a facility that incinerates:
1948-1858 (i) hospital waste as defined in 40 C.F.R. 60.51c; or
1949-1859 (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1950-1860 (148) "Watercraft" means a vessel as defined in Section 73-18-2.
1951-1861 (149) "Wind energy" means wind used as the sole source of energy to produce
1952-1862electricity.
1953-1863 (150) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
1954-1864location by the United States Postal Service.
1955-1865 Section 8. Section 59-12-103 is amended to read:
1956-1866 59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
1957-1867tax revenues.
1958-1868 (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
1959-1869sales price for amounts paid or charged for the following transactions:
1960-1870 (a) retail sales of tangible personal property made within the state;
1961-1871 (b) amounts paid for:
1962-1872 (i) telecommunications service, other than mobile telecommunications service, that
1963-1873originates and terminates within the boundaries of this state;
1964-1874 (ii) mobile telecommunications service that originates and terminates within the
1965-1875boundaries of one state only to the extent permitted by the Mobile Telecommunications
1966-1876Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or H.B. 54 Enrolled Copy
2137+2039from the books and records the seller keeps in the seller's regular course of business.
2138+2040 (ii) For purposes of Subsection (2)(g)(i), books and records that a seller keeps in the
2139+2041seller's regular course of business includes books and records the seller keeps in the regular
2140+2042course of business for nontax purposes.
2141+2043 (h) Subject to Subsections (2)(i) and (j), a tax rate repeal or tax rate change for a tax
2142+2044rate imposed under the following shall take effect on the first day of a calendar quarter:
2143+2045 (i) Subsection (2)(a)(i)(A);
2144+2046 (ii) Subsection (2)(b)(i); or
2145+2047 [(iii) Subsection (2)(c)(i); or]
2146+2048 [(iv)] (iii) Subsection (2)(e)(i)(A)(I).
2147+2049 (i) (i) A tax rate increase takes effect on the first day of the first billing period that
2148+2050begins on or after the effective date of the tax rate increase if the billing period for the
2149+2051transaction begins before the effective date of a tax rate increase imposed under:
2150+2052 (A) Subsection (2)(a)(i)(A);
2151+2053 (B) Subsection (2)(b)(i); or
2152+2054 [(C) Subsection (2)(c)(i); or]
2153+2055 [(D)] (C) Subsection (2)(e)(i)(A)(I).
2154+2056 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
2155+2057statement for the billing period is rendered on or after the effective date of the repeal of the tax
2156+2058or the tax rate decrease imposed under:
2157+2059 (A) Subsection (2)(a)(i)(A);
2158+2060 (B) Subsection (2)(b)(i); or
2159+2061 [(C) Subsection (2)(c)(i); or]
2160+2062 [(D)] (C) Subsection (2)(e)(i)(A)(I).
2161+2063 (j) (i) For a tax rate described in Subsection (2)(j)(ii), if a tax due on a catalogue sale is
2162+2064computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
2163+2065change in a tax rate takes effect:
2164+2066 (A) on the first day of a calendar quarter; and
2165+2067 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
2166+2068 (ii) Subsection (2)(j)(i) applies to the tax rates described in the following:
2167+2069 (A) Subsection (2)(a)(i)(A); 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
19672168 - 68 -
1968-1877 (iii) an ancillary service associated with a:
1969-1878 (A) telecommunications service described in Subsection (1)(b)(i); or
1970-1879 (B) mobile telecommunications service described in Subsection (1)(b)(ii);
1971-1880 (c) sales of the following for commercial use:
1972-1881 (i) gas;
1973-1882 (ii) electricity;
1974-1883 (iii) heat;
1975-1884 (iv) coal;
1976-1885 (v) fuel oil; or
1977-1886 (vi) other fuels;
1978-1887 (d) sales of the following for residential use:
1979-1888 (i) gas;
1980-1889 (ii) electricity;
1981-1890 (iii) heat;
1982-1891 (iv) coal;
1983-1892 (v) fuel oil; or
1984-1893 (vi) other fuels;
1985-1894 (e) sales of prepared food;
1986-1895 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
1987-1896user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
1988-1897exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
1989-1898fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
1990-1899television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
1991-1900driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
1992-1901tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
1993-1902horseback rides, sports activities, or any other amusement, entertainment, recreation,
1994-1903exhibition, cultural, or athletic activity;
1995-1904 (g) amounts paid or charged for services for repairs or renovations of tangible personal Enrolled Copy H.B. 54
2169+2070 (B) Subsection (2)(b)(i); or
2170+2071 [(C) Subsection (2)(c)(i); or]
2171+2072 [(D)] (C) Subsection (2)(e)(i)(A)(I).
2172+2073 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2173+2074the commission may by rule define the term "catalogue sale."
2174+2075 (k) (i) For a location described in Subsection (2)(k)(ii), the commission shall determine
2175+2076the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
2176+2077predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
2177+2078 (ii) Subsection (2)(k)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
2178+2079or other fuel is furnished through a single meter for two or more of the following uses:
2179+2080 (A) a commercial use;
2180+2081 (B) an industrial use; or
2181+2082 (C) a residential use.
2182+2083 (3) (a) The following state taxes shall be deposited into the General Fund:
2183+2084 (i) the tax imposed by Subsection (2)(a)(i)(A);
2184+2085 (ii) the tax imposed by Subsection (2)(b)(i); and
2185+2086 [(iii) the tax imposed by Subsection (2)(c)(i); and]
2186+2087 [(iv)] (iii) the tax imposed by Subsection (2)(e)(i)(A)(I).
2187+2088 (b) The following local taxes shall be distributed to a county, city, or town as provided
2188+2089in this chapter:
2189+2090 (i) the tax imposed by Subsection (2)(a)(ii);
2190+2091 (ii) the tax imposed by Subsection (2)(b)(ii);
2191+2092 (iii) the tax imposed by Subsection [(2)(c)(ii)] (2)(c); and
2192+2093 (iv) the tax imposed by Subsection (2)(e)(i)(B).
2193+2094 (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
2194+2095Fund.
2195+2096 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2196+20972003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
2197+2098through (g):
2198+2099 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
2199+2100 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
19962200 - 69 -
1997-1905property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
1998-1906 (i) the tangible personal property; and
1999-1907 (ii) parts used in the repairs or renovations of the tangible personal property described
2000-1908in Subsection (1)(g)(i), regardless of whether:
2001-1909 (A) any parts are actually used in the repairs or renovations of that tangible personal
2002-1910property; or
2003-1911 (B) the particular parts used in the repairs or renovations of that tangible personal
2004-1912property are exempt from a tax under this chapter;
2005-1913 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
2006-1914assisted cleaning or washing of tangible personal property;
2007-1915 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
2008-1916accommodations and services that are regularly rented for less than 30 consecutive days;
2009-1917 (j) amounts paid or charged for laundry or dry cleaning services;
2010-1918 (k) amounts paid or charged for leases or rentals of tangible personal property if within
2011-1919this state the tangible personal property is:
2012-1920 (i) stored;
2013-1921 (ii) used; or
2014-1922 (iii) otherwise consumed;
2015-1923 (l) amounts paid or charged for tangible personal property if within this state the
2016-1924tangible personal property is:
2017-1925 (i) stored;
2018-1926 (ii) used; or
2019-1927 (iii) consumed; and
2020-1928 (m) amounts paid or charged for a sale:
2021-1929 (i) (A) of a product transferred electronically; or
2022-1930 (B) of a repair or renovation of a product transferred electronically; and
2023-1931 (ii) regardless of whether the sale provides:
2024-1932 (A) a right of permanent use of the product; or H.B. 54 Enrolled Copy
2201+2101 (B) for the fiscal year; or
2202+2102 (ii) $17,500,000.
2203+2103 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
2204+2104described in Subsection (4)(a) shall be transferred each year as designated sales and use tax
2205+2105revenue to the Department of Natural Resources to:
2206+2106 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
2207+2107protect sensitive plant and animal species; or
2208+2108 (B) award grants, up to the amount authorized by the Legislature in an appropriations
2209+2109act, to political subdivisions of the state to implement the measures described in Subsections
2210+211079-2-303(3)(a) through (d) to protect sensitive plant and animal species.
2211+2111 (ii) Money transferred to the Department of Natural Resources under Subsection
2212+2112(4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
2213+2113person to list or attempt to have listed a species as threatened or endangered under the
2214+2114Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
2215+2115 (iii) At the end of each fiscal year:
2216+2116 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
2217+2117Water Resources Conservation and Development Fund created in Section 73-10-24;
2218+2118 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2219+2119Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
2220+2120 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2221+2121Drinking Water Loan Program Subaccount created in Section 73-10c-5.
2222+2122 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
2223+2123Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
2224+2124created in Section 4-18-106.
2225+2125 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
2226+2126in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to
2227+2127the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for
2228+2128the adjudication of water rights.
2229+2129 (ii) At the end of each fiscal year:
2230+2130 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
2231+2131Water Resources Conservation and Development Fund created in Section 73-10-24; 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
20252232 - 70 -
2026-1933 (B) a right to use the product that is less than a permanent use, including a right:
2027-1934 (I) for a definite or specified length of time; and
2028-1935 (II) that terminates upon the occurrence of a condition.
2029-1936 (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
2030-1937are imposed on a transaction described in Subsection (1) equal to the sum of:
2031-1938 (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
2032-1939 (A) 4.70% plus the rate specified in Subsection (12)(a); and
2033-1940 (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
2034-1941and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
2035-1942through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
2036-1943State Sales and Use Tax Act; and
2037-1944 (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
2038-1945and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
2039-1946through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
2040-1947imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
2041-1948 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2042-1949transaction under this chapter other than this part.
2043-1950 (b) Except as provided in Subsection (2)(e) or (f) and subject to Subsection (2)(k), a
2044-1951state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
2045-1952the sum of:
2046-1953 (i) a state tax imposed on the transaction at a tax rate of 2%; and
2047-1954 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2048-1955transaction under this chapter other than this part.
2049-1956 (c) (i) Except as provided in Subsection (2)(e) or (f), a local tax is imposed on amounts
2050-1957paid or charged for food and food ingredients equal to the sum of the tax rates a county, city, or
2051-1958town imposes under this chapter on the amounts paid or charged for food or food ingredients.
2052-1959 (ii) There is no state tax imposed on amounts paid or charged for food and food
2053-1960ingredients. Enrolled Copy H.B. 54
2233+2132 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2234+2133Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
2235+2134 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2236+2135Drinking Water Loan Program Subaccount created in Section 73-10c-5.
2237+2136 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
2238+2137in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
2239+2138Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
2240+2139 (ii) In addition to the uses allowed of the Water Resources Conservation and
2241+2140Development Fund under Section 73-10-24, the Water Resources Conservation and
2242+2141Development Fund may also be used to:
2243+2142 (A) conduct hydrologic and geotechnical investigations by the Division of Water
2244+2143Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
2245+2144quantifying surface and ground water resources and describing the hydrologic systems of an
2246+2145area in sufficient detail so as to enable local and state resource managers to plan for and
2247+2146accommodate growth in water use without jeopardizing the resource;
2248+2147 (B) fund state required dam safety improvements; and
2249+2148 (C) protect the state's interest in interstate water compact allocations, including the
2250+2149hiring of technical and legal staff.
2251+2150 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2252+2151in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
2253+2152created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
2254+2153 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2255+2154in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
2256+2155created in Section 73-10c-5 for use by the Division of Drinking Water to:
2257+2156 (i) provide for the installation and repair of collection, treatment, storage, and
2258+2157distribution facilities for any public water system, as defined in Section 19-4-102;
2259+2158 (ii) develop underground sources of water, including springs and wells; and
2260+2159 (iii) develop surface water sources.
2261+2160 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2262+21612006, the difference between the following amounts shall be expended as provided in this
2263+2162Subsection (5), if that difference is greater than $1: 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
20542264 - 71 -
2055-1961 [(c) Except as provided in Subsection (2)(e) or (f), a state tax and a local tax are
2056-1962imposed on amounts paid or charged for food and food ingredients equal to the sum of:]
2057-1963 [(i) a state tax imposed on the amounts paid or charged for food and food ingredients at
2058-1964a tax rate of 1.75%; and]
2059-1965 [(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2060-1966amounts paid or charged for food and food ingredients under this chapter other than this part.]
2061-1967 (d) Except as provided in Subsection (2)(e) or (f), a state tax is imposed on amounts
2062-1968paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
2063-1969a rate of 4.85%.
2064-1970 (e) (i) For a bundled transaction that is attributable to food and food ingredients and
2065-1971tangible personal property other than food and food ingredients, a state tax and a local tax is
2066-1972imposed on the entire bundled transaction equal to the sum of:
2067-1973 (A) a state tax imposed on the entire bundled transaction equal to the sum of:
2068-1974 (I) the tax rate described in Subsection (2)(a)(i)(A); and
2069-1975 (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
2070-1976Sales and Use Tax Act, if the location of the transaction as determined under Sections
2071-197759-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
2072-1978Additional State Sales and Use Tax Act; and
2073-1979 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
2074-1980Sales and Use Tax Act, if the location of the transaction as determined under Sections
2075-198159-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
2076-1982the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
2077-1983 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
2078-1984described in Subsection (2)(a)(ii).
2079-1985 (ii) If an optional computer software maintenance contract is a bundled transaction that
2080-1986consists of taxable and nontaxable products that are not separately itemized on an invoice or
2081-1987similar billing document, the purchase of the optional computer software maintenance contract
2082-1988is 40% taxable under this chapter and 60% nontaxable under this chapter. H.B. 54 Enrolled Copy
2265+2163 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
2266+2164fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
2267+2165 (ii) $17,500,000.
2268+2166 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
2269+2167 (A) transferred each fiscal year to the Department of Natural Resources as designated
2270+2168sales and use tax revenue; and
2271+2169 (B) expended by the Department of Natural Resources for watershed rehabilitation or
2272+2170restoration.
2273+2171 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
2274+2172tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation
2275+2173and Development Fund created in Section 73-10-24.
2276+2174 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
2277+2175remaining difference described in Subsection (5)(a) shall be:
2278+2176 (A) transferred each fiscal year to the Division of Water Resources as designated sales
2279+2177and use tax revenue; and
2280+2178 (B) expended by the Division of Water Resources for cloud-seeding projects
2281+2179authorized by Title 73, Chapter 15, Modification of Weather.
2282+2180 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
2283+2181tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation
2284+2182and Development Fund created in Section 73-10-24.
2285+2183 (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
2286+2184remaining difference described in Subsection (5)(a) shall be deposited into the Water
2287+2185Resources Conservation and Development Fund created in Section 73-10-24 for use by the
2288+2186Division of Water Resources for:
2289+2187 (i) preconstruction costs:
2290+2188 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
2291+218926, Bear River Development Act; and
2292+2190 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
2293+2191authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
2294+2192 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
2295+2193Chapter 26, Bear River Development Act; 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
20832296 - 72 -
2084-1989 (iii) Subject to Subsection (2)(e)(iv), for a bundled transaction other than a bundled
2085-1990transaction described in Subsection (2)(e)(i) or (ii):
2086-1991 (A) if the sales price of the bundled transaction is attributable to tangible personal
2087-1992property, a product, or a service that is subject to taxation under this chapter and tangible
2088-1993personal property, a product, or service that is not subject to taxation under this chapter, the
2089-1994entire bundled transaction is subject to taxation under this chapter unless:
2090-1995 (I) the seller is able to identify by reasonable and verifiable standards the tangible
2091-1996personal property, product, or service that is not subject to taxation under this chapter from the
2092-1997books and records the seller keeps in the seller's regular course of business; or
2093-1998 (II) state or federal law provides otherwise; or
2094-1999 (B) if the sales price of a bundled transaction is attributable to two or more items of
2095-2000tangible personal property, products, or services that are subject to taxation under this chapter
2096-2001at different rates, the entire bundled transaction is subject to taxation under this chapter at the
2097-2002higher tax rate unless:
2098-2003 (I) the seller is able to identify by reasonable and verifiable standards the tangible
2099-2004personal property, product, or service that is subject to taxation under this chapter at the lower
2100-2005tax rate from the books and records the seller keeps in the seller's regular course of business; or
2101-2006 (II) state or federal law provides otherwise.
2102-2007 (iv) For purposes of Subsection (2)(e)(iii), books and records that a seller keeps in the
2103-2008seller's regular course of business includes books and records the seller keeps in the regular
2104-2009course of business for nontax purposes.
2105-2010 (f) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(f)(ii)
2106-2011and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
2107-2012product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
2108-2013of tangible personal property, other property, a product, or a service that is not subject to
2109-2014taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
2110-2015the seller, at the time of the transaction:
2111-2016 (A) separately states the portion of the transaction that is not subject to taxation under Enrolled Copy H.B. 54
2297+2194 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
2298+2195authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
2299+2196 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
2300+2197Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
2301+2198 (e) After making the transfers required by Subsections (5)(b) and (c), 15% of the
2302+2199remaining difference described in Subsection (5)(a) shall be deposited each year into the Water
2303+2200Rights Restricted Account created by Section 73-2-1.6.
2304+2201 (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
2305+2202amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
2306+2203(1) for the fiscal year shall be deposited as follows:
2307+2204 (a) for fiscal year 2020-21 only:
2308+2205 (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
2309+2206Transportation Investment Fund of 2005 created by Section 72-2-124; and
2310+2207 (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
2311+2208Water Infrastructure Restricted Account created by Section 73-10g-103; and
2312+2209 (b) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
2313+2210in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
2314+2211created by Section 73-10g-103.
2315+2212 (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
2316+2213Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
2317+22142012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
2318+2215created by Section 72-2-124:
2319+2216 (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
2320+2217the revenues collected from the following taxes, which represents a portion of the
2321+2218approximately 17% of sales and use tax revenues generated annually by the sales and use tax
2322+2219on vehicles and vehicle-related products:
2323+2220 (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
2324+2221 (B) the tax imposed by Subsection (2)(b)(i); and
2325+2222 [(C) the tax imposed by Subsection (2)(c)(i); and]
2326+2223 [(D)] (C) the tax imposed by Subsection (2)(e)(i)(A)(I); plus
2327+2224 (ii) an amount equal to 30% of the growth in the amount of revenues collected in the 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
21122328 - 73 -
2113-2017this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
2114-2018 (B) is able to identify by reasonable and verifiable standards, from the books and
2115-2019records the seller keeps in the seller's regular course of business, the portion of the transaction
2116-2020that is not subject to taxation under this chapter.
2117-2021 (ii) A purchaser and a seller may correct the taxability of a transaction if:
2118-2022 (A) after the transaction occurs, the purchaser and the seller discover that the portion of
2119-2023the transaction that is not subject to taxation under this chapter was not separately stated on an
2120-2024invoice, bill of sale, or similar document provided to the purchaser because of an error or
2121-2025ignorance of the law; and
2122-2026 (B) the seller is able to identify by reasonable and verifiable standards, from the books
2123-2027and records the seller keeps in the seller's regular course of business, the portion of the
2124-2028transaction that is not subject to taxation under this chapter.
2125-2029 (iii) For purposes of Subsections (2)(f)(i) and (ii), books and records that a seller keeps
2126-2030in the seller's regular course of business includes books and records the seller keeps in the
2127-2031regular course of business for nontax purposes.
2128-2032 (g) (i) If the sales price of a transaction is attributable to two or more items of tangible
2129-2033personal property, products, or services that are subject to taxation under this chapter at
2130-2034different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
2131-2035unless the seller, at the time of the transaction:
2132-2036 (A) separately states the items subject to taxation under this chapter at each of the
2133-2037different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
2134-2038 (B) is able to identify by reasonable and verifiable standards the tangible personal
2135-2039property, product, or service that is subject to taxation under this chapter at the lower tax rate
2136-2040from the books and records the seller keeps in the seller's regular course of business.
2137-2041 (ii) For purposes of Subsection (2)(g)(i), books and records that a seller keeps in the
2138-2042seller's regular course of business includes books and records the seller keeps in the regular
2139-2043course of business for nontax purposes.
2140-2044 (h) Subject to Subsections (2)(i) and (j), a tax rate repeal or tax rate change for a tax H.B. 54 Enrolled Copy
2329+2225current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
2330+2226[(D)] (C) that exceeds the amount collected from the sales and use taxes described in
2331+2227Subsections (7)(a)(i)(A) through [(D)] (C) in the 2010-11 fiscal year.
2332+2228 (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
2333+2229the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
2334+2230lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through [(D)]
2335+2231(C) generated in the current fiscal year than the total percentage of sales and use taxes
2336+2232deposited in the previous fiscal year, the Division of Finance shall deposit an amount under
2337+2233Subsection (7)(a) equal to the product of:
2338+2234 (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
2339+2235previous fiscal year; and
2340+2236 (B) the total sales and use tax revenue generated by the taxes described in Subsections
2341+2237(7)(a)(i)(A) through [(D)] (C) in the current fiscal year.
2342+2238 (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
2343+2239Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
2344+2240described in Subsections (7)(a)(i)(A) through [(D)] (C) in the current fiscal year, the Division
2345+2241of Finance shall deposit 17% of the revenues collected from the sales and use taxes described
2346+2242in Subsections (7)(a)(i)(A) through [(D)] (C) for the current fiscal year under Subsection (7)(a).
2347+2243 (iii) Subject to Subsection (7)(b)(iv)(E), in all subsequent fiscal years after a year in
2348+2244which 17% of the revenues collected from the sales and use taxes described in Subsections
2349+2245(7)(a)(i)(A) through [(D)] (C) was deposited under Subsection (7)(a), the Division of Finance
2350+2246shall annually deposit 17% of the revenues collected from the sales and use taxes described in
2351+2247Subsections (7)(a)(i)(A) through [(D)] (C) in the current fiscal year under Subsection (7)(a).
2352+2248 (iv) (A) As used in this Subsection (7)(b)(iv), "additional growth revenue" means the
2353+2249amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
2354+2250the relevant revenue collected in the previous fiscal year.
2355+2251 (B) As used in this Subsection (7)(b)(iv), "combined amount" means the combined
2356+2252total amount of money deposited into the Cottonwood Canyons fund under Subsections
2357+2253(7)(b)(iv)(F) and (8)(d)(vi) in any single fiscal year.
2358+2254 (C) As used in this Subsection (7)(b)(iv), "Cottonwood Canyons fund" means the
2359+2255Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10). 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
21412360 - 74 -
2142-2045rate imposed under the following shall take effect on the first day of a calendar quarter:
2143-2046 (i) Subsection (2)(a)(i)(A);
2144-2047 (ii) Subsection (2)(b)(i); or
2145-2048 [(iii) Subsection (2)(c)(i); or]
2146-2049 [(iv)] (iii) Subsection (2)(e)(i)(A)(I).
2147-2050 (i) (i) A tax rate increase takes effect on the first day of the first billing period that
2148-2051begins on or after the effective date of the tax rate increase if the billing period for the
2149-2052transaction begins before the effective date of a tax rate increase imposed under:
2150-2053 (A) Subsection (2)(a)(i)(A);
2151-2054 (B) Subsection (2)(b)(i); or
2152-2055 [(C) Subsection (2)(c)(i); or]
2153-2056 [(D)] (C) Subsection (2)(e)(i)(A)(I).
2154-2057 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
2155-2058statement for the billing period is rendered on or after the effective date of the repeal of the tax
2156-2059or the tax rate decrease imposed under:
2157-2060 (A) Subsection (2)(a)(i)(A);
2158-2061 (B) Subsection (2)(b)(i); or
2159-2062 [(C) Subsection (2)(c)(i); or]
2160-2063 [(D)] (C) Subsection (2)(e)(i)(A)(I).
2161-2064 (j) (i) For a tax rate described in Subsection (2)(j)(ii), if a tax due on a catalogue sale is
2162-2065computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
2163-2066change in a tax rate takes effect:
2164-2067 (A) on the first day of a calendar quarter; and
2165-2068 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
2166-2069 (ii) Subsection (2)(j)(i) applies to the tax rates described in the following:
2167-2070 (A) Subsection (2)(a)(i)(A);
2168-2071 (B) Subsection (2)(b)(i); or
2169-2072 [(C) Subsection (2)(c)(i); or] Enrolled Copy H.B. 54
2361+2256 (D) As used in this Subsection (7)(b)(iv), "relevant revenue" means the portion of taxes
2362+2257listed under Subsection (3)(a) that equals 17% of the revenue collected from taxes described in
2363+2258Subsections (7)(a)(i)(A) through [(D)] (C).
2364+2259 (E) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
2365+2260reduce the deposit under Subsection (7)(b)(iii) into the Transportation Investment Fund of 2005
2366+2261by an amount equal to the amount of the deposit under this Subsection (7)(b)(iv) to the
2367+2262Cottonwood Canyons fund in the previous fiscal year plus 25% of additional growth revenue,
2368+2263subject to the limit in Subsection (7)(b)(iv)(F).
2369+2264 (F) The commission shall annually deposit the amount described in Subsection
2370+2265(7)(b)(iv)(E) into the Cottonwood Canyons fund, subject to an annual maximum combined
2371+2266amount for any single fiscal year of $20,000,000.
2372+2267 (G) If the amount of relevant revenue declines in a fiscal year compared to the previous
2373+2268fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
2374+2269Canyons fund under this Subsection (7)(b)(iv) in the same proportion as the decline in relevant
2375+2270revenue.
2376+2271 (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
2377+2272Subsections (6) and (7), and subject to Subsections (8)(b) and (d)(v), for a fiscal year beginning
2378+2273on or after July 1, 2018, the commission shall annually deposit into the Transportation
2379+2274Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under
2380+2275Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the following
2381+2276taxes:
2382+2277 (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
2383+2278 (ii) the tax imposed by Subsection (2)(b)(i); and
2384+2279 [(iii) the tax imposed by Subsection (2)(c)(i); and]
2385+2280 [(iv)] (iii) the tax imposed by Subsection (2)(e)(i)(A)(I).
2386+2281 (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
2387+2282reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
2388+2283an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
2389+2284the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
2390+2285or use in this state that exceeds 29.4 cents per gallon.
2391+2286 (c) The commission shall annually deposit the amount described in Subsection (8)(b) 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
21702392 - 75 -
2171-2073 [(D)] (C) Subsection (2)(e)(i)(A)(I).
2172-2074 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2173-2075the commission may by rule define the term "catalogue sale."
2174-2076 (k) (i) For a location described in Subsection (2)(k)(ii), the commission shall determine
2175-2077the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
2176-2078predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
2177-2079 (ii) Subsection (2)(k)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
2178-2080or other fuel is furnished through a single meter for two or more of the following uses:
2179-2081 (A) a commercial use;
2180-2082 (B) an industrial use; or
2181-2083 (C) a residential use.
2182-2084 (3) (a) The following state taxes shall be deposited into the General Fund:
2183-2085 (i) the tax imposed by Subsection (2)(a)(i)(A);
2184-2086 (ii) the tax imposed by Subsection (2)(b)(i); and
2185-2087 [(iii) the tax imposed by Subsection (2)(c)(i); and]
2186-2088 [(iv)] (iii) the tax imposed by Subsection (2)(e)(i)(A)(I).
2187-2089 (b) The following local taxes shall be distributed to a county, city, or town as provided
2188-2090in this chapter:
2189-2091 (i) the tax imposed by Subsection (2)(a)(ii);
2190-2092 (ii) the tax imposed by Subsection (2)(b)(ii);
2191-2093 (iii) the tax imposed by Subsection [(2)(c)(ii)] (2)(c); and
2192-2094 (iv) the tax imposed by Subsection (2)(e)(i)(B).
2193-2095 (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
2194-2096Fund.
2195-2097 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2196-20982003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
2197-2099through (g):
2198-2100 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated: H.B. 54 Enrolled Copy
2393+2287into the Transit Transportation Investment Fund created in Section 72-2-124.
2394+2288 (d) (i) As used in this Subsection (8)(d), "additional growth revenue" means the
2395+2289amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
2396+2290the relevant revenue collected in the previous fiscal year.
2397+2291 (ii) As used in this Subsection (8)(d), "combined amount" means the combined total
2398+2292amount of money deposited into the Cottonwood Canyons fund under Subsections (7)(b)(iv)(F)
2399+2293and (8)(d)(vi) in any single fiscal year.
2400+2294 (iii) As used in this Subsection (8)(d), "Cottonwood Canyons fund" means the
2401+2295Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
2402+2296 (iv) As used in this Subsection (8)(d), "relevant revenue" means the portion of taxes
2403+2297listed under Subsection (3)(a) that equals 3.68% of the revenue collected from taxes described
2404+2298in Subsections (8)(a)(i) through [(iv)] (iii).
2405+2299 (v) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
2406+2300reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
2407+2301an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
2408+2302Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
2409+2303limit in Subsection (8)(d)(vi).
2410+2304 (vi) The commission shall annually deposit the amount described in Subsection
2411+2305(8)(d)(v) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
2412+2306for any single fiscal year of $20,000,000.
2413+2307 (vii) If the amount of relevant revenue declines in a fiscal year compared to the
2414+2308previous fiscal year, the commission shall decrease the amount of the contribution to the
2415+2309Cottonwood Canyons fund under this Subsection (8)(d) in the same proportion as the decline in
2416+2310relevant revenue.
2417+2311 (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2418+23122009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
2419+2313created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
2420+2314 (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(b),
2421+2315and in addition to any amounts deposited under Subsections (6), (7), and (8), the Division of
2422+2316Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
2423+231772-2-124 the amount of revenue described as follows: 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
21992424 - 76 -
2200-2101 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
2201-2102 (B) for the fiscal year; or
2202-2103 (ii) $17,500,000.
2203-2104 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
2204-2105described in Subsection (4)(a) shall be transferred each year as designated sales and use tax
2205-2106revenue to the Department of Natural Resources to:
2206-2107 (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
2207-2108protect sensitive plant and animal species; or
2208-2109 (B) award grants, up to the amount authorized by the Legislature in an appropriations
2209-2110act, to political subdivisions of the state to implement the measures described in Subsections
2210-211179-2-303(3)(a) through (d) to protect sensitive plant and animal species.
2211-2112 (ii) Money transferred to the Department of Natural Resources under Subsection
2212-2113(4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
2213-2114person to list or attempt to have listed a species as threatened or endangered under the
2214-2115Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
2215-2116 (iii) At the end of each fiscal year:
2216-2117 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
2217-2118Water Resources Conservation and Development Fund created in Section 73-10-24;
2218-2119 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2219-2120Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
2220-2121 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2221-2122Drinking Water Loan Program Subaccount created in Section 73-10c-5.
2222-2123 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
2223-2124Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
2224-2125created in Section 4-18-106.
2225-2126 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
2226-2127in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to
2227-2128the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for Enrolled Copy H.B. 54
2425+2318 (i) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a .05%
2426+2319tax rate on the transactions described in Subsection (1); and
2427+2320 (ii) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
2428+2321tax rate on the transactions described in Subsection (1).
2429+2322 (b) For purposes of Subsection (10)(a), the Division of Finance may not deposit into
2430+2323the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
2431+2324charged for food and food ingredients, except for tax revenue generated by a bundled
2432+2325transaction attributable to food and food ingredients and tangible personal property other than
2433+2326food and food ingredients described in Subsection (2)(e).
2434+2327 (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
2435+2328fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
2436+2329construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
2437+2330Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
2438+2331generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
2439+2332created in Section 63N-2-512.
2440+2333 (12) (a) The rate specified in this subsection is 0.15%.
2441+2334 (b) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
2442+2335beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
2443+2336rate described in Subsection (12)(a) on the transactions that are subject to the sales and use tax
2444+2337under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section
2445+233826-36b-208.
2446+2339 (13) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2447+23402020-21, the Division of Finance shall deposit $200,000 into the General Fund as a dedicated
2448+2341credit solely for use of the Search and Rescue Financial Assistance Program created in, and
2449+2342expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
2450+2343 (14) (a) For each fiscal year beginning with fiscal year 2020-21, the Division of
2451+2344Finance shall annually transfer $1,813,400 of the revenue deposited into the Transportation
2452+2345Investment Fund of 2005 under Subsections (6) through (8) to the General Fund.
2453+2346 (b) If the total revenue deposited into the Transportation Investment Fund of 2005
2454+2347under Subsections (6) through (8) is less than $1,813,400 for a fiscal year, the Division of
2455+2348Finance shall transfer the total revenue deposited into the Transportation Investment Fund of 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
22282456 - 77 -
2229-2129the adjudication of water rights.
2230-2130 (ii) At the end of each fiscal year:
2231-2131 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
2232-2132Water Resources Conservation and Development Fund created in Section 73-10-24;
2233-2133 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2234-2134Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
2235-2135 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2236-2136Drinking Water Loan Program Subaccount created in Section 73-10c-5.
2237-2137 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
2238-2138in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
2239-2139Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
2240-2140 (ii) In addition to the uses allowed of the Water Resources Conservation and
2241-2141Development Fund under Section 73-10-24, the Water Resources Conservation and
2242-2142Development Fund may also be used to:
2243-2143 (A) conduct hydrologic and geotechnical investigations by the Division of Water
2244-2144Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
2245-2145quantifying surface and ground water resources and describing the hydrologic systems of an
2246-2146area in sufficient detail so as to enable local and state resource managers to plan for and
2247-2147accommodate growth in water use without jeopardizing the resource;
2248-2148 (B) fund state required dam safety improvements; and
2249-2149 (C) protect the state's interest in interstate water compact allocations, including the
2250-2150hiring of technical and legal staff.
2251-2151 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2252-2152in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
2253-2153created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
2254-2154 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2255-2155in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
2256-2156created in Section 73-10c-5 for use by the Division of Drinking Water to: H.B. 54 Enrolled Copy
2457+23492005 under Subsections (6) through (8) during the fiscal year to the General Fund.
2458+2350 (15) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610,
2459+2351beginning the first day of the calendar quarter one year after the sales and use tax boundary for
2460+2352a housing and transit reinvestment zone is established, the commission, at least annually, shall
2461+2353transfer an amount equal to 15% of the sales and use tax increment within an established sales
2462+2354and use tax boundary, as defined in Section 63N-3-602, into the Transit Transportation
2463+2355Investment Fund created in Section 72-2-124.
2464+2356 (16) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
2465+2357beginning on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure
2466+2358Restricted Account, created in Section 51-9-902, a portion of the taxes listed under Subsection
2467+2359(3)(a) equal to 1% of the revenues collected from the following sales and use taxes:
2468+2360 (a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
2469+2361 (b) the tax imposed by Subsection (2)(b)(i); and
2470+2362 [(c) the tax imposed by Subsection (2)(c)(i); and]
2471+2363 [(d)] (c) the tax imposed by Subsection (2)(e)(i)(A)(I).
2472+2364 Section 9. Section 59-12-108 is amended to read:
2473+2365 59-12-108. Monthly payment -- Amount of tax a seller may retain -- Penalty --
2474+2366Certain amounts allocated to local taxing jurisdictions.
2475+2367 (1) (a) Notwithstanding Section 59-12-107, a seller that has a tax liability under this
2476+2368chapter of $50,000 or more for the previous calendar year shall:
2477+2369 (i) file a return with the commission:
2478+2370 (A) monthly on or before the last day of the month immediately following the month
2479+2371for which the seller collects a tax under this chapter; and
2480+2372 (B) for the month for which the seller collects a tax under this chapter; and
2481+2373 (ii) except as provided in Subsection (1)(b), remit with the return required by
2482+2374Subsection (1)(a)(i) the amount the person is required to remit to the commission for each tax,
2483+2375fee, or charge described in Subsection (1)(c):
2484+2376 (A) if that seller's tax liability under this chapter for the previous calendar year is less
2485+2377than $96,000, by any method permitted by the commission; or
2486+2378 (B) if that seller's tax liability under this chapter for the previous calendar year is
2487+2379$96,000 or more, by electronic funds transfer. 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
22572488 - 78 -
2258-2157 (i) provide for the installation and repair of collection, treatment, storage, and
2259-2158distribution facilities for any public water system, as defined in Section 19-4-102;
2260-2159 (ii) develop underground sources of water, including springs and wells; and
2261-2160 (iii) develop surface water sources.
2262-2161 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2263-21622006, the difference between the following amounts shall be expended as provided in this
2264-2163Subsection (5), if that difference is greater than $1:
2265-2164 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
2266-2165fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
2267-2166 (ii) $17,500,000.
2268-2167 (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
2269-2168 (A) transferred each fiscal year to the Department of Natural Resources as designated
2270-2169sales and use tax revenue; and
2271-2170 (B) expended by the Department of Natural Resources for watershed rehabilitation or
2272-2171restoration.
2273-2172 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
2274-2173tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation
2275-2174and Development Fund created in Section 73-10-24.
2276-2175 (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
2277-2176remaining difference described in Subsection (5)(a) shall be:
2278-2177 (A) transferred each fiscal year to the Division of Water Resources as designated sales
2279-2178and use tax revenue; and
2280-2179 (B) expended by the Division of Water Resources for cloud-seeding projects
2281-2180authorized by Title 73, Chapter 15, Modification of Weather.
2282-2181 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
2283-2182tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation
2284-2183and Development Fund created in Section 73-10-24.
2285-2184 (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the Enrolled Copy H.B. 54
2489+2380 (b) A seller shall remit electronically with the return required by Subsection (1)(a)(i)
2490+2381the amount the seller is required to remit to the commission for each tax, fee, or charge
2491+2382described in Subsection (1)(c) if that seller:
2492+2383 (i) is required by Section 59-12-107 to file the return electronically; or
2493+2384 (ii) (A) is required to collect and remit a tax under Section 59-12-107; and
2494+2385 (B) files a simplified electronic return.
2495+2386 (c) Subsections (1)(a) and (b) apply to the following taxes, fees, or charges:
2496+2387 (i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
2497+2388 (ii) a fee under Section 19-6-714;
2498+2389 (iii) a fee under Section 19-6-805;
2499+2390 (iv) a charge under Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications
2500+2391Service Charges; or
2501+2392 (v) a tax under this chapter.
2502+2393 (d) Notwithstanding Subsection (1)(a)(ii) and in accordance with Title 63G, Chapter 3,
2503+2394Utah Administrative Rulemaking Act, the commission shall make rules providing for a method
2504+2395for making same-day payments other than by electronic funds transfer if making payments by
2505+2396electronic funds transfer fails.
2506+2397 (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2507+2398commission shall establish by rule procedures and requirements for determining the amount a
2508+2399seller is required to remit to the commission under this Subsection (1).
2509+2400 (2) (a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a
2510+2401seller described in Subsection (4) may retain each month the amount allowed by this
2511+2402Subsection (2).
2512+2403 (b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
2513+2404each month 1.31% of any amounts the seller is required to remit to the commission:
2514+2405 (i) for a transaction described in Subsection 59-12-103(1) that is subject to a state tax
2515+2406and a local tax imposed in accordance with the following, for the month for which the seller is
2516+2407filing a return in accordance with Subsection (1):
2517+2408 (A) Subsection 59-12-103(2)(a);
2518+2409 (B) Subsection 59-12-103(2)(b); and
2519+2410 (C) Subsection 59-12-103(2)(d); and 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
22862520 - 79 -
2287-2185remaining difference described in Subsection (5)(a) shall be deposited into the Water
2288-2186Resources Conservation and Development Fund created in Section 73-10-24 for use by the
2289-2187Division of Water Resources for:
2290-2188 (i) preconstruction costs:
2291-2189 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
2292-219026, Bear River Development Act; and
2293-2191 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
2294-2192authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
2295-2193 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
2296-2194Chapter 26, Bear River Development Act;
2297-2195 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
2298-2196authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
2299-2197 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
2300-2198Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
2301-2199 (e) After making the transfers required by Subsections (5)(b) and (c), 15% of the
2302-2200remaining difference described in Subsection (5)(a) shall be deposited each year into the Water
2303-2201Rights Restricted Account created by Section 73-2-1.6.
2304-2202 (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
2305-2203amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
2306-2204(1) for the fiscal year shall be deposited as follows:
2307-2205 (a) for fiscal year 2020-21 only:
2308-2206 (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
2309-2207Transportation Investment Fund of 2005 created by Section 72-2-124; and
2310-2208 (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
2311-2209Water Infrastructure Restricted Account created by Section 73-10g-103; and
2312-2210 (b) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
2313-2211in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
2314-2212created by Section 73-10g-103. H.B. 54 Enrolled Copy
2521+2411 (ii) for an agreement sales and use tax.
2522+2412 (c) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
2523+2413retain each month the amount calculated under Subsection (2)(c)(ii) for a transaction described
2524+2414in Subsection 59-12-103(1) that is subject to the [state tax and the local] tax imposed in
2525+2415accordance with Subsection 59-12-103(2)(c).
2526+2416 (ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount
2527+2417equal to the sum of:
2528+2418 (A) 1.31% of any amounts the seller is required to remit to the commission for:
2529+2419 (I) the [state tax and the local] tax imposed in accordance with Subsection
2530+242059-12-103(2)(c);
2531+2421 (II) the month for which the seller is filing a return in accordance with Subsection (1);
2532+2422and
2533+2423 (III) an agreement sales and use tax; and
2534+2424 (B) 1.31% of the difference between:
2535+2425 (I) the amounts the seller would have been required to remit to the commission:
2536+2426 (Aa) in accordance with Subsection 59-12-103(2)(a) if the transaction had been subject
2537+2427to the state tax and the local tax imposed in accordance with Subsection 59-12-103(2)(a);
2538+2428 (Bb) for the month for which the seller is filing a return in accordance with Subsection
2539+2429(1); and
2540+2430 (Cc) for an agreement sales and use tax; and
2541+2431 (II) the amounts the seller is required to remit to the commission for:
2542+2432 (Aa) the [state tax and the local] tax imposed in accordance with Subsection
2543+243359-12-103(2)(c);
2544+2434 (Bb) the month for which the seller is filing a return in accordance with Subsection (1);
2545+2435and
2546+2436 (Cc) an agreement sales and use tax.
2547+2437 (d) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
2548+2438each month 1% of any amounts the seller is required to remit to the commission:
2549+2439 (i) for the month for which the seller is filing a return in accordance with Subsection
2550+2440(1); and
2551+2441 (ii) under: 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
23152552 - 80 -
2316-2213 (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
2317-2214Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
2318-22152012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
2319-2216created by Section 72-2-124:
2320-2217 (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
2321-2218the revenues collected from the following taxes, which represents a portion of the
2322-2219approximately 17% of sales and use tax revenues generated annually by the sales and use tax
2323-2220on vehicles and vehicle-related products:
2324-2221 (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
2325-2222 (B) the tax imposed by Subsection (2)(b)(i); and
2326-2223 [(C) the tax imposed by Subsection (2)(c)(i); and]
2327-2224 [(D)] (C) the tax imposed by Subsection (2)(e)(i)(A)(I); plus
2328-2225 (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
2329-2226current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
2330-2227[(D)] (C) that exceeds the amount collected from the sales and use taxes described in
2331-2228Subsections (7)(a)(i)(A) through [(D)] (C) in the 2010-11 fiscal year.
2332-2229 (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
2333-2230the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
2334-2231lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through [(D)]
2335-2232(C) generated in the current fiscal year than the total percentage of sales and use taxes
2336-2233deposited in the previous fiscal year, the Division of Finance shall deposit an amount under
2337-2234Subsection (7)(a) equal to the product of:
2338-2235 (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
2339-2236previous fiscal year; and
2340-2237 (B) the total sales and use tax revenue generated by the taxes described in Subsections
2341-2238(7)(a)(i)(A) through [(D)] (C) in the current fiscal year.
2342-2239 (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
2343-2240Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes Enrolled Copy H.B. 54
2553+2442 (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
2554+2443 (B) Subsection 59-12-603(1)(a)(i)(A);
2555+2444 (C) Subsection 59-12-603(1)(a)(i)(B); or
2556+2445 (D) Subsection 59-12-603(1)(a)(ii).
2557+2446 (3) A state government entity that is required to remit taxes monthly in accordance
2558+2447with Subsection (1) may not retain any amount under Subsection (2).
2559+2448 (4) A seller that has a tax liability under this chapter for the previous calendar year of
2560+2449less than $50,000 may:
2561+2450 (a) voluntarily meet the requirements of Subsection (1); and
2562+2451 (b) if the seller voluntarily meets the requirements of Subsection (1), retain the
2563+2452amounts allowed by Subsection (2).
2564+2453 (5) Penalties for late payment shall be as provided in Section 59-1-401.
2565+2454 (6) (a) Except as provided in Subsection (6)(c), for any amounts required to be remitted
2566+2455to the commission under this part, the commission shall each month calculate an amount equal
2567+2456to the difference between:
2568+2457 (i) the total amount retained for that month by all sellers had the percentages listed
2569+2458under Subsections (2)(b) and (2)(c)(ii) been 1.5%; and
2570+2459 (ii) the total amount retained for that month by all sellers at the percentages listed
2571+2460under Subsections (2)(b) and (2)(c)(ii).
2572+2461 (b) The commission shall each month allocate the amount calculated under Subsection
2573+2462(6)(a) to each county, city, and town on the basis of the proportion of agreement sales and use
2574+2463tax that the commission distributes to each county, city, and town for that month compared to
2575+2464the total agreement sales and use tax that the commission distributes for that month to all
2576+2465counties, cities, and towns.
2577+2466 (c) The amount the commission calculates under Subsection (6)(a) may not include an
2578+2467amount collected from a tax that:
2579+2468 (i) the state imposes within a county, city, or town, including the unincorporated area
2580+2469of a county; and
2581+2470 (ii) is not imposed within the entire state.
2582+2471 Section 10. Section 63N-2-502 is amended to read:
2583+2472 63N-2-502. Definitions. 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
23442584 - 81 -
2345-2241described in Subsections (7)(a)(i)(A) through [(D)] (C) in the current fiscal year, the Division
2346-2242of Finance shall deposit 17% of the revenues collected from the sales and use taxes described
2347-2243in Subsections (7)(a)(i)(A) through [(D)] (C) for the current fiscal year under Subsection (7)(a).
2348-2244 (iii) Subject to Subsection (7)(b)(iv)(E), in all subsequent fiscal years after a year in
2349-2245which 17% of the revenues collected from the sales and use taxes described in Subsections
2350-2246(7)(a)(i)(A) through [(D)] (C) was deposited under Subsection (7)(a), the Division of Finance
2351-2247shall annually deposit 17% of the revenues collected from the sales and use taxes described in
2352-2248Subsections (7)(a)(i)(A) through [(D)] (C) in the current fiscal year under Subsection (7)(a).
2353-2249 (iv) (A) As used in this Subsection (7)(b)(iv), "additional growth revenue" means the
2354-2250amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
2355-2251the relevant revenue collected in the previous fiscal year.
2356-2252 (B) As used in this Subsection (7)(b)(iv), "combined amount" means the combined
2357-2253total amount of money deposited into the Cottonwood Canyons fund under Subsections
2358-2254(7)(b)(iv)(F) and (8)(d)(vi) in any single fiscal year.
2359-2255 (C) As used in this Subsection (7)(b)(iv), "Cottonwood Canyons fund" means the
2360-2256Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
2361-2257 (D) As used in this Subsection (7)(b)(iv), "relevant revenue" means the portion of taxes
2362-2258listed under Subsection (3)(a) that equals 17% of the revenue collected from taxes described in
2363-2259Subsections (7)(a)(i)(A) through [(D)] (C).
2364-2260 (E) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
2365-2261reduce the deposit under Subsection (7)(b)(iii) into the Transportation Investment Fund of 2005
2366-2262by an amount equal to the amount of the deposit under this Subsection (7)(b)(iv) to the
2367-2263Cottonwood Canyons fund in the previous fiscal year plus 25% of additional growth revenue,
2368-2264subject to the limit in Subsection (7)(b)(iv)(F).
2369-2265 (F) The commission shall annually deposit the amount described in Subsection
2370-2266(7)(b)(iv)(E) into the Cottonwood Canyons fund, subject to an annual maximum combined
2371-2267amount for any single fiscal year of $20,000,000.
2372-2268 (G) If the amount of relevant revenue declines in a fiscal year compared to the previous H.B. 54 Enrolled Copy
2585+2473 As used in this part:
2586+2474 (1) "Agreement" means an agreement described in Section 63N-2-503.
2587+2475 (2) "Base taxable value" means the value of hotel property before the construction on a
2588+2476qualified hotel begins, as that value is established by the county in which the hotel property is
2589+2477located, using a reasonable valuation method that may include the value of the hotel property
2590+2478on the county assessment rolls the year before the year during which construction on the
2591+2479qualified hotel begins.
2592+2480 (3) "Certified claim" means a claim that the office has approved and certified as
2593+2481provided in Section 63N-2-505.
2594+2482 (4) "Claim" means a written document submitted by a qualified hotel owner or host
2595+2483local government to request a convention incentive.
2596+2484 (5) "Claimant" means the qualified hotel owner or host local government that submits a
2597+2485claim under Subsection 63N-2-505(1)(a) for a convention incentive.
2598+2486 (6) "Commission" means the Utah State Tax Commission.
2599+2487 (7) "Community reinvestment agency" means the same as that term is defined in
2600+2488Section 17C-1-102.
2601+2489 (8) "Construction revenue" means revenue generated from state taxes and local taxes
2602+2490imposed on transactions occurring during the eligibility period as a result of the construction of
2603+2491the hotel property, including purchases made by a qualified hotel owner and its subcontractors.
2604+2492 (9) "Convention incentive" means an incentive for the development of a qualified
2605+2493hotel, in the form of payment from the incentive fund as provided in this part, as authorized in
2606+2494an agreement.
2607+2495 (10) "Eligibility period" means:
2608+2496 (a) the period that:
2609+2497 (i) begins the date construction of a qualified hotel begins; and
2610+2498 (ii) ends:
2611+2499 (A) for purposes of the state portion, 20 years after the date of initial occupancy of that
2612+2500qualified hotel; or
2613+2501 (B) for purposes of the local portion and incremental property tax revenue, 25 years
2614+2502after the date of initial occupancy of that hotel; or
2615+2503 (b) as provided in an agreement between the office and a qualified hotel owner or host 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
23732616 - 82 -
2374-2269fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
2375-2270Canyons fund under this Subsection (7)(b)(iv) in the same proportion as the decline in relevant
2376-2271revenue.
2377-2272 (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
2378-2273Subsections (6) and (7), and subject to Subsections (8)(b) and (d)(v), for a fiscal year beginning
2379-2274on or after July 1, 2018, the commission shall annually deposit into the Transportation
2380-2275Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under
2381-2276Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the following
2382-2277taxes:
2383-2278 (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
2384-2279 (ii) the tax imposed by Subsection (2)(b)(i); and
2385-2280 [(iii) the tax imposed by Subsection (2)(c)(i); and]
2386-2281 [(iv)] (iii) the tax imposed by Subsection (2)(e)(i)(A)(I).
2387-2282 (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
2388-2283reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
2389-2284an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
2390-2285the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
2391-2286or use in this state that exceeds 29.4 cents per gallon.
2392-2287 (c) The commission shall annually deposit the amount described in Subsection (8)(b)
2393-2288into the Transit Transportation Investment Fund created in Section 72-2-124.
2394-2289 (d) (i) As used in this Subsection (8)(d), "additional growth revenue" means the
2395-2290amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
2396-2291the relevant revenue collected in the previous fiscal year.
2397-2292 (ii) As used in this Subsection (8)(d), "combined amount" means the combined total
2398-2293amount of money deposited into the Cottonwood Canyons fund under Subsections (7)(b)(iv)(F)
2399-2294and (8)(d)(vi) in any single fiscal year.
2400-2295 (iii) As used in this Subsection (8)(d), "Cottonwood Canyons fund" means the
2401-2296Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10). Enrolled Copy H.B. 54
2617+2504local government, a period that:
2618+2505 (i) begins no earlier than the date construction of a qualified hotel begins; and
2619+2506 (ii) is shorter than the period described in Subsection (10)(a).
2620+2507 (11) "Endorsement letter" means a letter:
2621+2508 (a) from the county in which a qualified hotel is located or is proposed to be located;
2622+2509 (b) signed by the county executive; and
2623+2510 (c) expressing the county's endorsement of a developer of a qualified hotel as meeting
2624+2511all the county's criteria for receiving the county's endorsement.
2625+2512 (12) "Host agency" means the community reinvestment agency of the host local
2626+2513government.
2627+2514 (13) "Host local government" means:
2628+2515 (a) a county that enters into an agreement with the office for the construction of a
2629+2516qualified hotel within the unincorporated area of the county; or
2630+2517 (b) a city or town that enters into an agreement with the office for the construction of a
2631+2518qualified hotel within the boundary of the city or town.
2632+2519 (14) "Hotel property" means a qualified hotel and any property that is included in the
2633+2520same development as the qualified hotel, including convention, exhibit, and meeting space,
2634+2521retail shops, restaurants, parking, and other ancillary facilities and amenities.
2635+2522 (15) "Incentive fund" means the Convention Incentive Fund created in Section
2636+252363N-2-503.5.
2637+2524 (16) "Incremental property tax revenue" means the amount of property tax revenue
2638+2525generated from hotel property that equals the difference between:
2639+2526 (a) the amount of property tax revenue generated in any tax year by all taxing entities
2640+2527from hotel property, using the current assessed value of the hotel property; and
2641+2528 (b) the amount of property tax revenue that would be generated that tax year by all
2642+2529taxing entities from hotel property, using the hotel property's base taxable value.
2643+2530 (17) "Local portion" means the portion of new tax revenue that is generated by local
2644+2531taxes.
2645+2532 (18) "Local taxes" means a tax imposed under:
2646+2533 (a) Section 59-12-204;
2647+2534 (b) Section 59-12-301; 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
24022648 - 83 -
2403-2297 (iv) As used in this Subsection (8)(d), "relevant revenue" means the portion of taxes
2404-2298listed under Subsection (3)(a) that equals 3.68% of the revenue collected from taxes described
2405-2299in Subsections (8)(a)(i) through [(iv)] (iii).
2406-2300 (v) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
2407-2301reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
2408-2302an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
2409-2303Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
2410-2304limit in Subsection (8)(d)(vi).
2411-2305 (vi) The commission shall annually deposit the amount described in Subsection
2412-2306(8)(d)(v) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
2413-2307for any single fiscal year of $20,000,000.
2414-2308 (vii) If the amount of relevant revenue declines in a fiscal year compared to the
2415-2309previous fiscal year, the commission shall decrease the amount of the contribution to the
2416-2310Cottonwood Canyons fund under this Subsection (8)(d) in the same proportion as the decline in
2417-2311relevant revenue.
2418-2312 (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2419-23132009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
2420-2314created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
2421-2315 (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(b),
2422-2316and in addition to any amounts deposited under Subsections (6), (7), and (8), the Division of
2423-2317Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
2424-231872-2-124 the amount of revenue described as follows:
2425-2319 (i) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a .05%
2426-2320tax rate on the transactions described in Subsection (1); and
2427-2321 (ii) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
2428-2322tax rate on the transactions described in Subsection (1).
2429-2323 (b) For purposes of Subsection (10)(a), the Division of Finance may not deposit into
2430-2324the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or H.B. 54 Enrolled Copy
2649+2535 (c) Sections 59-12-352 and 59-12-353;
2650+2536 (d) Subsection 59-12-603(1)(a); or
2651+2537 (e) Section 59-12-1102.
2652+2538 (19) "New tax revenue" means construction revenue, offsite revenue, and onsite
2653+2539revenue.
2654+2540 (20) "Offsite revenue" means revenue generated from state taxes and local taxes
2655+2541imposed on transactions by a third-party seller occurring other than on hotel property during the
2656+2542eligibility period, if:
2657+2543 (a) the transaction is subject to a tax under Title 59, Chapter 12, Sales and Use Tax
2658+2544Act; and
2659+2545 (b) the third-party seller voluntarily consents to the disclosure of information to the
2660+2546office, as provided in Subsection 63N-2-505(2)(b)(i)(E).
2661+2547 (21) "Onsite revenue" means revenue generated from state taxes and local taxes
2662+2548imposed on transactions occurring on hotel property during the eligibility period.
2663+2549 (22) "Public infrastructure" means:
2664+2550 (a) water, sewer, storm drainage, electrical, telecommunications, and other similar
2665+2551systems and lines;
2666+2552 (b) streets, roads, curbs, gutters, sidewalks, walkways, parking facilities, and public
2667+2553transportation facilities; and
2668+2554 (c) other buildings, facilities, infrastructure, and improvements that benefit the public.
2669+2555 (23) "Qualified hotel" means a full-service hotel development constructed in the state
2670+2556on or after July 1, 2014 that:
2671+2557 (a) requires a significant capital investment;
2672+2558 (b) includes at least 85 square feet of convention, exhibit, and meeting space per guest
2673+2559room; and
2674+2560 (c) is located within 1,000 feet of a convention center that contains at least 500,000
2675+2561square feet of convention, exhibit, and meeting space.
2676+2562 (24) "Qualified hotel owner" means a person who owns a qualified hotel.
2677+2563 (25) "Review committee" means the independent review committee established under
2678+2564Section 63N-2-504.
2679+2565 (26) "Significant capital investment" means an amount of at least $200,000,000. 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
24312680 - 84 -
2432-2325charged for food and food ingredients, except for tax revenue generated by a bundled
2433-2326transaction attributable to food and food ingredients and tangible personal property other than
2434-2327food and food ingredients described in Subsection (2)(e).
2435-2328 (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
2436-2329fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
2437-2330construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
2438-2331Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
2439-2332generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
2440-2333created in Section 63N-2-512.
2441-2334 (12) (a) The rate specified in this subsection is 0.15%.
2442-2335 (b) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
2443-2336beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
2444-2337rate described in Subsection (12)(a) on the transactions that are subject to the sales and use tax
2445-2338under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section
2446-233926-36b-208.
2447-2340 (13) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2448-23412020-21, the Division of Finance shall deposit $200,000 into the General Fund as a dedicated
2449-2342credit solely for use of the Search and Rescue Financial Assistance Program created in, and
2450-2343expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
2451-2344 (14) (a) For each fiscal year beginning with fiscal year 2020-21, the Division of
2452-2345Finance shall annually transfer $1,813,400 of the revenue deposited into the Transportation
2453-2346Investment Fund of 2005 under Subsections (6) through (8) to the General Fund.
2454-2347 (b) If the total revenue deposited into the Transportation Investment Fund of 2005
2455-2348under Subsections (6) through (8) is less than $1,813,400 for a fiscal year, the Division of
2456-2349Finance shall transfer the total revenue deposited into the Transportation Investment Fund of
2457-23502005 under Subsections (6) through (8) during the fiscal year to the General Fund.
2458-2351 (15) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610,
2459-2352beginning the first day of the calendar quarter one year after the sales and use tax boundary for Enrolled Copy H.B. 54
2681+2566 (27) "State portion" means the portion of new tax revenue that is generated by state
2682+2567taxes.
2683+2568 (28) "State taxes" means a tax imposed under Subsection 59-12-103(2)(a)(i), (2)(b)(i),
2684+2569[(2)(c)(i),] or (2)(e)(i)(A).
2685+2570 (29) "Third-party seller" means a person who is a seller in a transaction:
2686+2571 (a) occurring other than on hotel property;
2687+2572 (b) that is:
2688+2573 (i) the sale, rental, or lease of a room or of convention or exhibit space or other
2689+2574facilities on hotel property; or
2690+2575 (ii) the sale of tangible personal property or a service that is part of a bundled
2691+2576transaction, as defined in Section 59-12-102, with a sale, rental, or lease described in
2692+2577Subsection (29)(b)(i); and
2693+2578 (c) that is subject to a tax under Title 59, Chapter 12, Sales and Use Tax Act.
2694+2579 Section 11. Section 63N-7-301 is amended to read:
2695+2580 63N-7-301. Tourism Marketing Performance Account.
2696+2581 (1) There is created within the General Fund a restricted account known as the Tourism
2697+2582Marketing Performance Account.
2698+2583 (2) The account shall be administered by the tourism office for the purposes listed in
2699+2584Subsections (6) [through (8)] and (7).
2700+2585 (3) (a) The account shall earn interest.
2701+2586 (b) All interest earned on account money shall be deposited into the account.
2702+2587 (4) The account shall be funded by appropriations made to the account by the
2703+2588Legislature in accordance with this section.
2704+2589 (5) The managing director shall use account money appropriated to the tourism office
2705+2590to pay for the statewide advertising, marketing, and branding campaign for promotion of the
2706+2591state as conducted by the tourism office.
2707+2592 (6) (a) For each fiscal year, the tourism office shall annually allocate 10% of the
2708+2593account money appropriated to the tourism office to a sports organization for advertising,
2709+2594marketing, branding, and promoting Utah in attracting sporting events into the state.
2710+2595 (b) The sports organization shall:
2711+2596 (i) provide an annual written report to the tourism office that gives an accounting of the 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
24602712 - 85 -
2461-2353a housing and transit reinvestment zone is established, the commission, at least annually, shall
2462-2354transfer an amount equal to 15% of the sales and use tax increment within an established sales
2463-2355and use tax boundary, as defined in Section 63N-3-602, into the Transit Transportation
2464-2356Investment Fund created in Section 72-2-124.
2465-2357 (16) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
2466-2358beginning on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure
2467-2359Restricted Account, created in Section 51-9-902, a portion of the taxes listed under Subsection
2468-2360(3)(a) equal to 1% of the revenues collected from the following sales and use taxes:
2469-2361 (a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
2470-2362 (b) the tax imposed by Subsection (2)(b)(i); and
2471-2363 [(c) the tax imposed by Subsection (2)(c)(i); and]
2472-2364 [(d)] (c) the tax imposed by Subsection (2)(e)(i)(A)(I).
2473-2365 Section 9. Section 59-12-108 is amended to read:
2474-2366 59-12-108. Monthly payment -- Amount of tax a seller may retain -- Penalty --
2475-2367Certain amounts allocated to local taxing jurisdictions.
2476-2368 (1) (a) Notwithstanding Section 59-12-107, a seller that has a tax liability under this
2477-2369chapter of $50,000 or more for the previous calendar year shall:
2478-2370 (i) file a return with the commission:
2479-2371 (A) monthly on or before the last day of the month immediately following the month
2480-2372for which the seller collects a tax under this chapter; and
2481-2373 (B) for the month for which the seller collects a tax under this chapter; and
2482-2374 (ii) except as provided in Subsection (1)(b), remit with the return required by
2483-2375Subsection (1)(a)(i) the amount the person is required to remit to the commission for each tax,
2484-2376fee, or charge described in Subsection (1)(c):
2485-2377 (A) if that seller's tax liability under this chapter for the previous calendar year is less
2486-2378than $96,000, by any method permitted by the commission; or
2487-2379 (B) if that seller's tax liability under this chapter for the previous calendar year is
2488-2380$96,000 or more, by electronic funds transfer. H.B. 54 Enrolled Copy
2713+2597use of funds the sports organization receives under this Subsection (6); and
2714+2598 (ii) promote the state and encourage economic growth in the state.
2715+2599 [(7) Money deposited into the account shall include a legislative appropriation from the
2716+2600cumulative sales and use tax revenue increases described in Subsection (8), plus any additional
2717+2601appropriation made by the Legislature.]
2718+2602 [(8) (a) In fiscal years 2006 through 2019, a portion of the state sales and use tax
2719+2603revenues determined under this Subsection (8) shall be certified by the State Tax Commission
2720+2604as a set-aside for the account, and the State Tax Commission shall report the amount of the
2721+2605set-aside to the office, the Office of Legislative Fiscal Analyst, and the Division of Finance,
2722+2606which shall set aside the certified amount for appropriation to the account.]
2723+2607 [(b) For fiscal years 2016 through 2019, the State Tax Commission shall calculate the
2724+2608set-aside under this Subsection (8) in each fiscal year by applying one of the following
2725+2609formulas: if the annual percentage change in the Consumer Price Index for All Urban
2726+2610Consumers, as published by the Bureau of Labor Statistics of the United States Department of
2727+2611Labor, for the fiscal year two years before the fiscal year in which the set-aside is to be made
2728+2612is:]
2729+2613 [(i) greater than 3%, and if the annual percentage change in the state sales and use tax
2730+2614revenues attributable to the retail sales of tourist-oriented goods and services from the fiscal
2731+2615year three years before the fiscal year in which the set-aside is to be made to the fiscal year two
2732+2616years before the fiscal year in which the set-aside is to be made is greater than the annual
2733+2617percentage change in the Consumer Price Index for the fiscal year two years before the fiscal
2734+2618year in which the set-aside is to be made, then the difference between the annual percentage
2735+2619change in the state sales and use tax revenues attributable to the retail sales of tourist-oriented
2736+2620goods and services and the annual percentage change in the Consumer Price Index shall be
2737+2621multiplied by an amount equal to the state sales and use tax revenues attributable to the retail
2738+2622sales of tourist-oriented goods and services from the fiscal year three years before the fiscal
2739+2623year in which the set-aside is to be made; or]
2740+2624 [(ii) 3% or less, and if the annual percentage change in the state sales and use tax
2741+2625revenues attributable to the retail sales of tourist-oriented goods and services from the fiscal
2742+2626year three years before the fiscal year in which the set-aside is to be made to the fiscal year two
2743+2627years before the fiscal year in which the set-aside is to be made is greater than 3%, then the 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
24892744 - 86 -
2490-2381 (b) A seller shall remit electronically with the return required by Subsection (1)(a)(i)
2491-2382the amount the seller is required to remit to the commission for each tax, fee, or charge
2492-2383described in Subsection (1)(c) if that seller:
2493-2384 (i) is required by Section 59-12-107 to file the return electronically; or
2494-2385 (ii) (A) is required to collect and remit a tax under Section 59-12-107; and
2495-2386 (B) files a simplified electronic return.
2496-2387 (c) Subsections (1)(a) and (b) apply to the following taxes, fees, or charges:
2497-2388 (i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
2498-2389 (ii) a fee under Section 19-6-714;
2499-2390 (iii) a fee under Section 19-6-805;
2500-2391 (iv) a charge under Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications
2501-2392Service Charges; or
2502-2393 (v) a tax under this chapter.
2503-2394 (d) Notwithstanding Subsection (1)(a)(ii) and in accordance with Title 63G, Chapter 3,
2504-2395Utah Administrative Rulemaking Act, the commission shall make rules providing for a method
2505-2396for making same-day payments other than by electronic funds transfer if making payments by
2506-2397electronic funds transfer fails.
2507-2398 (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2508-2399commission shall establish by rule procedures and requirements for determining the amount a
2509-2400seller is required to remit to the commission under this Subsection (1).
2510-2401 (2) (a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a
2511-2402seller described in Subsection (4) may retain each month the amount allowed by this
2512-2403Subsection (2).
2513-2404 (b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
2514-2405each month 1.31% of any amounts the seller is required to remit to the commission:
2515-2406 (i) for a transaction described in Subsection 59-12-103(1) that is subject to a state tax
2516-2407and a local tax imposed in accordance with the following, for the month for which the seller is
2517-2408filing a return in accordance with Subsection (1): Enrolled Copy H.B. 54
2745+2628difference between the annual percentage change in the state sales and use tax revenues
2746+2629attributable to the retail sales of tourist-oriented goods and services and 3% shall be multiplied
2747+2630by an amount equal to the state sales and use tax revenues attributable to the retail sales of
2748+2631tourist-oriented goods and services from the fiscal year three years before the fiscal year in
2749+2632which the set-aside is to be made.]
2750+2633 [(c) The total money appropriated to the account in a fiscal year under Subsections
2751+2634(8)(a) and (b) may not exceed the amount appropriated to the account in the preceding fiscal
2752+2635year by more than $3,000,000.]
2753+2636 [(d) As used in this Subsection (8), "state sales and use tax revenues" are revenues
2754+2637collected under Subsections 59-12-103(2)(a)(i)(A) and 59-12-103(2)(c)(i).]
2755+2638 [(e) As used in this Subsection (8), "retail sales of tourist-oriented goods and services"
2756+2639are calculated by adding the following percentages of sales from each business registered with
2757+2640the State Tax Commission under one of the following codes of the 2012 North American
2758+2641Industry Classification System of the federal Executive Office of the President, Office of
2759+2642Management and Budget:]
2760+2643 [(i) 80% of the sales from each business under NAICS Codes:]
2761+2644 [(A) 532111 Passenger Car Rental;]
2762+2645 [(B) 53212 Truck, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasing;]
2763+2646 [(C) 5615 Travel Arrangement and Reservation Services;]
2764+2647 [(D) 7211 Traveler Accommodation; and]
2765+2648 [(E) 7212 RV (Recreational Vehicle) Parks and Recreational Camps;]
2766+2649 [(ii) 25% of the sales from each business under NAICS Codes:]
2767+2650 [(A) 51213 Motion Picture and Video Exhibition;]
2768+2651 [(B) 532292 Recreational Goods Rental;]
2769+2652 [(C) 711 Performing Arts, Spectator Sports, and Related Industries;]
2770+2653 [(D) 712 Museums, Historical Sites, and Similar Institutions; and]
2771+2654 [(E) 713 Amusement, Gambling, and Recreation Industries;]
2772+2655 [(iii) 20% of the sales from each business under NAICS Code 722 Food Services and
2773+2656Drinking Places;]
2774+2657 [(iv) 18% of the sales from each business under NAICS Codes:]
2775+2658 [(A) 447 Gasoline Stations; and] 03-01-23 9:31 PM 4th Sub. (Green) H.B. 54
25182776 - 87 -
2519-2409 (A) Subsection 59-12-103(2)(a);
2520-2410 (B) Subsection 59-12-103(2)(b); and
2521-2411 (C) Subsection 59-12-103(2)(d); and
2522-2412 (ii) for an agreement sales and use tax.
2523-2413 (c) (i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
2524-2414retain each month the amount calculated under Subsection (2)(c)(ii) for a transaction described
2525-2415in Subsection 59-12-103(1) that is subject to the [state tax and the local] tax imposed in
2526-2416accordance with Subsection 59-12-103(2)(c).
2527-2417 (ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount
2528-2418equal to the sum of:
2529-2419 (A) 1.31% of any amounts the seller is required to remit to the commission for:
2530-2420 (I) the [state tax and the local] tax imposed in accordance with Subsection
2531-242159-12-103(2)(c);
2532-2422 (II) the month for which the seller is filing a return in accordance with Subsection (1);
2533-2423and
2534-2424 (III) an agreement sales and use tax; and
2535-2425 (B) 1.31% of the difference between:
2536-2426 (I) the amounts the seller would have been required to remit to the commission:
2537-2427 (Aa) in accordance with Subsection 59-12-103(2)(a) if the transaction had been subject
2538-2428to the state tax and the local tax imposed in accordance with Subsection 59-12-103(2)(a);
2539-2429 (Bb) for the month for which the seller is filing a return in accordance with Subsection
2540-2430(1); and
2541-2431 (Cc) for an agreement sales and use tax; and
2542-2432 (II) the amounts the seller is required to remit to the commission for:
2543-2433 (Aa) the [state tax and the local] tax imposed in accordance with Subsection
2544-243459-12-103(2)(c);
2545-2435 (Bb) the month for which the seller is filing a return in accordance with Subsection (1);
2546-2436and H.B. 54 Enrolled Copy
2777+2659 [(B) 81293 Parking Lots and Garages;]
2778+2660 [(v) 14% of the sales from each business under NAICS Code 8111 Automotive Repair
2779+2661and Maintenance; and]
2780+2662 [(vi) 5% of the sales from each business under NAICS Codes:]
2781+2663 [(A) 445 Food and Beverage Stores;]
2782+2664 [(B) 446 Health and Personal Care Stores;]
2783+2665 [(C) 448 Clothing and Clothing Accessories Stores;]
2784+2666 [(D) 451 Sporting Goods, Hobby, Musical Instrument, and Book Stores;]
2785+2667 [(E) 452 General Merchandise Stores; and]
2786+2668 [(F) 453 Miscellaneous Store Retailers.]
2787+2669 [(9)] (7) (a) For each fiscal year, the tourism office shall allocate 20% of the funds
2788+2670appropriated to the Tourism Marketing and Performance Account to the cooperative program
2789+2671described in this Subsection [(9)] (7).
2790+2672 (b) Money allocated to the cooperative program may be awarded to cities, counties,
2791+2673nonprofit destination marketing organizations, and similar public entities for the purpose of
2792+2674supplementing money committed by these entities for advertising and promoting sites and
2793+2675events in the state.
2794+2676 (c) The tourism office shall establish:
2795+2677 (i) an application and approval process for an entity to receive a cooperative program
2796+2678award, including an application deadline;
2797+2679 (ii) the criteria for awarding a cooperative program award, which shall emphasize
2798+2680attracting out-of-state visitors, and may include attracting in-state visitors, to sites and events in
2799+2681the state; and
2800+2682 (iii) eligibility, advertising, timing, and reporting requirements of an entity that
2801+2683receives a cooperative program award.
2802+2684 (d) Money allocated to the cooperative program that is not used in each fiscal year shall
2803+2685be returned to the Tourism Marketing Performance Account.
2804+2686 Section 12. Effective date.
2805+2687 (1) Except as provided in Subsection (2), this bill takes effect May 3, 2023.
2806+2688 (2) The changes to Sections 59-12-102, 59-12-103, 59-12-108, 63N-2-502, and
2807+268963N-7-301 take effect January 1, 2025, if the amendment to the Utah Constitution proposed by 4th Sub. (Green) H.B. 54 03-01-23 9:31 PM
25472808 - 88 -
2548-2437 (Cc) an agreement sales and use tax.
2549-2438 (d) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
2550-2439each month 1% of any amounts the seller is required to remit to the commission:
2551-2440 (i) for the month for which the seller is filing a return in accordance with Subsection
2552-2441(1); and
2553-2442 (ii) under:
2554-2443 (A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
2555-2444 (B) Subsection 59-12-603(1)(a)(i)(A);
2556-2445 (C) Subsection 59-12-603(1)(a)(i)(B); or
2557-2446 (D) Subsection 59-12-603(1)(a)(ii).
2558-2447 (3) A state government entity that is required to remit taxes monthly in accordance
2559-2448with Subsection (1) may not retain any amount under Subsection (2).
2560-2449 (4) A seller that has a tax liability under this chapter for the previous calendar year of
2561-2450less than $50,000 may:
2562-2451 (a) voluntarily meet the requirements of Subsection (1); and
2563-2452 (b) if the seller voluntarily meets the requirements of Subsection (1), retain the
2564-2453amounts allowed by Subsection (2).
2565-2454 (5) Penalties for late payment shall be as provided in Section 59-1-401.
2566-2455 (6) (a) Except as provided in Subsection (6)(c), for any amounts required to be remitted
2567-2456to the commission under this part, the commission shall each month calculate an amount equal
2568-2457to the difference between:
2569-2458 (i) the total amount retained for that month by all sellers had the percentages listed
2570-2459under Subsections (2)(b) and (2)(c)(ii) been 1.5%; and
2571-2460 (ii) the total amount retained for that month by all sellers at the percentages listed
2572-2461under Subsections (2)(b) and (2)(c)(ii).
2573-2462 (b) The commission shall each month allocate the amount calculated under Subsection
2574-2463(6)(a) to each county, city, and town on the basis of the proportion of agreement sales and use
2575-2464tax that the commission distributes to each county, city, and town for that month compared to Enrolled Copy H.B. 54
2576-- 89 -
2577-2465the total agreement sales and use tax that the commission distributes for that month to all
2578-2466counties, cities, and towns.
2579-2467 (c) The amount the commission calculates under Subsection (6)(a) may not include an
2580-2468amount collected from a tax that:
2581-2469 (i) the state imposes within a county, city, or town, including the unincorporated area
2582-2470of a county; and
2583-2471 (ii) is not imposed within the entire state.
2584-2472 Section 10. Section 63N-2-502 is amended to read:
2585-2473 63N-2-502. Definitions.
2586-2474 As used in this part:
2587-2475 (1) "Agreement" means an agreement described in Section 63N-2-503.
2588-2476 (2) "Base taxable value" means the value of hotel property before the construction on a
2589-2477qualified hotel begins, as that value is established by the county in which the hotel property is
2590-2478located, using a reasonable valuation method that may include the value of the hotel property
2591-2479on the county assessment rolls the year before the year during which construction on the
2592-2480qualified hotel begins.
2593-2481 (3) "Certified claim" means a claim that the office has approved and certified as
2594-2482provided in Section 63N-2-505.
2595-2483 (4) "Claim" means a written document submitted by a qualified hotel owner or host
2596-2484local government to request a convention incentive.
2597-2485 (5) "Claimant" means the qualified hotel owner or host local government that submits a
2598-2486claim under Subsection 63N-2-505(1)(a) for a convention incentive.
2599-2487 (6) "Commission" means the Utah State Tax Commission.
2600-2488 (7) "Community reinvestment agency" means the same as that term is defined in
2601-2489Section 17C-1-102.
2602-2490 (8) "Construction revenue" means revenue generated from state taxes and local taxes
2603-2491imposed on transactions occurring during the eligibility period as a result of the construction of
2604-2492the hotel property, including purchases made by a qualified hotel owner and its subcontractors. H.B. 54 Enrolled Copy
2605-- 90 -
2606-2493 (9) "Convention incentive" means an incentive for the development of a qualified
2607-2494hotel, in the form of payment from the incentive fund as provided in this part, as authorized in
2608-2495an agreement.
2609-2496 (10) "Eligibility period" means:
2610-2497 (a) the period that:
2611-2498 (i) begins the date construction of a qualified hotel begins; and
2612-2499 (ii) ends:
2613-2500 (A) for purposes of the state portion, 20 years after the date of initial occupancy of that
2614-2501qualified hotel; or
2615-2502 (B) for purposes of the local portion and incremental property tax revenue, 25 years
2616-2503after the date of initial occupancy of that hotel; or
2617-2504 (b) as provided in an agreement between the office and a qualified hotel owner or host
2618-2505local government, a period that:
2619-2506 (i) begins no earlier than the date construction of a qualified hotel begins; and
2620-2507 (ii) is shorter than the period described in Subsection (10)(a).
2621-2508 (11) "Endorsement letter" means a letter:
2622-2509 (a) from the county in which a qualified hotel is located or is proposed to be located;
2623-2510 (b) signed by the county executive; and
2624-2511 (c) expressing the county's endorsement of a developer of a qualified hotel as meeting
2625-2512all the county's criteria for receiving the county's endorsement.
2626-2513 (12) "Host agency" means the community reinvestment agency of the host local
2627-2514government.
2628-2515 (13) "Host local government" means:
2629-2516 (a) a county that enters into an agreement with the office for the construction of a
2630-2517qualified hotel within the unincorporated area of the county; or
2631-2518 (b) a city or town that enters into an agreement with the office for the construction of a
2632-2519qualified hotel within the boundary of the city or town.
2633-2520 (14) "Hotel property" means a qualified hotel and any property that is included in the Enrolled Copy H.B. 54
2634-- 91 -
2635-2521same development as the qualified hotel, including convention, exhibit, and meeting space,
2636-2522retail shops, restaurants, parking, and other ancillary facilities and amenities.
2637-2523 (15) "Incentive fund" means the Convention Incentive Fund created in Section
2638-252463N-2-503.5.
2639-2525 (16) "Incremental property tax revenue" means the amount of property tax revenue
2640-2526generated from hotel property that equals the difference between:
2641-2527 (a) the amount of property tax revenue generated in any tax year by all taxing entities
2642-2528from hotel property, using the current assessed value of the hotel property; and
2643-2529 (b) the amount of property tax revenue that would be generated that tax year by all
2644-2530taxing entities from hotel property, using the hotel property's base taxable value.
2645-2531 (17) "Local portion" means the portion of new tax revenue that is generated by local
2646-2532taxes.
2647-2533 (18) "Local taxes" means a tax imposed under:
2648-2534 (a) Section 59-12-204;
2649-2535 (b) Section 59-12-301;
2650-2536 (c) Sections 59-12-352 and 59-12-353;
2651-2537 (d) Subsection 59-12-603(1)(a); or
2652-2538 (e) Section 59-12-1102.
2653-2539 (19) "New tax revenue" means construction revenue, offsite revenue, and onsite
2654-2540revenue.
2655-2541 (20) "Offsite revenue" means revenue generated from state taxes and local taxes
2656-2542imposed on transactions by a third-party seller occurring other than on hotel property during the
2657-2543eligibility period, if:
2658-2544 (a) the transaction is subject to a tax under Title 59, Chapter 12, Sales and Use Tax
2659-2545Act; and
2660-2546 (b) the third-party seller voluntarily consents to the disclosure of information to the
2661-2547office, as provided in Subsection 63N-2-505(2)(b)(i)(E).
2662-2548 (21) "Onsite revenue" means revenue generated from state taxes and local taxes H.B. 54 Enrolled Copy
2663-- 92 -
2664-2549imposed on transactions occurring on hotel property during the eligibility period.
2665-2550 (22) "Public infrastructure" means:
2666-2551 (a) water, sewer, storm drainage, electrical, telecommunications, and other similar
2667-2552systems and lines;
2668-2553 (b) streets, roads, curbs, gutters, sidewalks, walkways, parking facilities, and public
2669-2554transportation facilities; and
2670-2555 (c) other buildings, facilities, infrastructure, and improvements that benefit the public.
2671-2556 (23) "Qualified hotel" means a full-service hotel development constructed in the state
2672-2557on or after July 1, 2014 that:
2673-2558 (a) requires a significant capital investment;
2674-2559 (b) includes at least 85 square feet of convention, exhibit, and meeting space per guest
2675-2560room; and
2676-2561 (c) is located within 1,000 feet of a convention center that contains at least 500,000
2677-2562square feet of convention, exhibit, and meeting space.
2678-2563 (24) "Qualified hotel owner" means a person who owns a qualified hotel.
2679-2564 (25) "Review committee" means the independent review committee established under
2680-2565Section 63N-2-504.
2681-2566 (26) "Significant capital investment" means an amount of at least $200,000,000.
2682-2567 (27) "State portion" means the portion of new tax revenue that is generated by state
2683-2568taxes.
2684-2569 (28) "State taxes" means a tax imposed under Subsection 59-12-103(2)(a)(i), (2)(b)(i),
2685-2570[(2)(c)(i),] or (2)(e)(i)(A).
2686-2571 (29) "Third-party seller" means a person who is a seller in a transaction:
2687-2572 (a) occurring other than on hotel property;
2688-2573 (b) that is:
2689-2574 (i) the sale, rental, or lease of a room or of convention or exhibit space or other
2690-2575facilities on hotel property; or
2691-2576 (ii) the sale of tangible personal property or a service that is part of a bundled Enrolled Copy H.B. 54
2692-- 93 -
2693-2577transaction, as defined in Section 59-12-102, with a sale, rental, or lease described in
2694-2578Subsection (29)(b)(i); and
2695-2579 (c) that is subject to a tax under Title 59, Chapter 12, Sales and Use Tax Act.
2696-2580 Section 11. Section 63N-7-301 is amended to read:
2697-2581 63N-7-301. Tourism Marketing Performance Account.
2698-2582 (1) There is created within the General Fund a restricted account known as the Tourism
2699-2583Marketing Performance Account.
2700-2584 (2) The account shall be administered by the tourism office for the purposes listed in
2701-2585Subsections (6) [through (8)] and (7).
2702-2586 (3) (a) The account shall earn interest.
2703-2587 (b) All interest earned on account money shall be deposited into the account.
2704-2588 (4) The account shall be funded by appropriations made to the account by the
2705-2589Legislature in accordance with this section.
2706-2590 (5) The managing director shall use account money appropriated to the tourism office
2707-2591to pay for the statewide advertising, marketing, and branding campaign for promotion of the
2708-2592state as conducted by the tourism office.
2709-2593 (6) (a) For each fiscal year, the tourism office shall annually allocate 10% of the
2710-2594account money appropriated to the tourism office to a sports organization for advertising,
2711-2595marketing, branding, and promoting Utah in attracting sporting events into the state.
2712-2596 (b) The sports organization shall:
2713-2597 (i) provide an annual written report to the tourism office that gives an accounting of the
2714-2598use of funds the sports organization receives under this Subsection (6); and
2715-2599 (ii) promote the state and encourage economic growth in the state.
2716-2600 [(7) Money deposited into the account shall include a legislative appropriation from the
2717-2601cumulative sales and use tax revenue increases described in Subsection (8), plus any additional
2718-2602appropriation made by the Legislature.]
2719-2603 [(8) (a) In fiscal years 2006 through 2019, a portion of the state sales and use tax
2720-2604revenues determined under this Subsection (8) shall be certified by the State Tax Commission H.B. 54 Enrolled Copy
2721-- 94 -
2722-2605as a set-aside for the account, and the State Tax Commission shall report the amount of the
2723-2606set-aside to the office, the Office of Legislative Fiscal Analyst, and the Division of Finance,
2724-2607which shall set aside the certified amount for appropriation to the account.]
2725-2608 [(b) For fiscal years 2016 through 2019, the State Tax Commission shall calculate the
2726-2609set-aside under this Subsection (8) in each fiscal year by applying one of the following
2727-2610formulas: if the annual percentage change in the Consumer Price Index for All Urban
2728-2611Consumers, as published by the Bureau of Labor Statistics of the United States Department of
2729-2612Labor, for the fiscal year two years before the fiscal year in which the set-aside is to be made
2730-2613is:]
2731-2614 [(i) greater than 3%, and if the annual percentage change in the state sales and use tax
2732-2615revenues attributable to the retail sales of tourist-oriented goods and services from the fiscal
2733-2616year three years before the fiscal year in which the set-aside is to be made to the fiscal year two
2734-2617years before the fiscal year in which the set-aside is to be made is greater than the annual
2735-2618percentage change in the Consumer Price Index for the fiscal year two years before the fiscal
2736-2619year in which the set-aside is to be made, then the difference between the annual percentage
2737-2620change in the state sales and use tax revenues attributable to the retail sales of tourist-oriented
2738-2621goods and services and the annual percentage change in the Consumer Price Index shall be
2739-2622multiplied by an amount equal to the state sales and use tax revenues attributable to the retail
2740-2623sales of tourist-oriented goods and services from the fiscal year three years before the fiscal
2741-2624year in which the set-aside is to be made; or]
2742-2625 [(ii) 3% or less, and if the annual percentage change in the state sales and use tax
2743-2626revenues attributable to the retail sales of tourist-oriented goods and services from the fiscal
2744-2627year three years before the fiscal year in which the set-aside is to be made to the fiscal year two
2745-2628years before the fiscal year in which the set-aside is to be made is greater than 3%, then the
2746-2629difference between the annual percentage change in the state sales and use tax revenues
2747-2630attributable to the retail sales of tourist-oriented goods and services and 3% shall be multiplied
2748-2631by an amount equal to the state sales and use tax revenues attributable to the retail sales of
2749-2632tourist-oriented goods and services from the fiscal year three years before the fiscal year in Enrolled Copy H.B. 54
2750-- 95 -
2751-2633which the set-aside is to be made.]
2752-2634 [(c) The total money appropriated to the account in a fiscal year under Subsections
2753-2635(8)(a) and (b) may not exceed the amount appropriated to the account in the preceding fiscal
2754-2636year by more than $3,000,000.]
2755-2637 [(d) As used in this Subsection (8), "state sales and use tax revenues" are revenues
2756-2638collected under Subsections 59-12-103(2)(a)(i)(A) and 59-12-103(2)(c)(i).]
2757-2639 [(e) As used in this Subsection (8), "retail sales of tourist-oriented goods and services"
2758-2640are calculated by adding the following percentages of sales from each business registered with
2759-2641the State Tax Commission under one of the following codes of the 2012 North American
2760-2642Industry Classification System of the federal Executive Office of the President, Office of
2761-2643Management and Budget:]
2762-2644 [(i) 80% of the sales from each business under NAICS Codes:]
2763-2645 [(A) 532111 Passenger Car Rental;]
2764-2646 [(B) 53212 Truck, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasing;]
2765-2647 [(C) 5615 Travel Arrangement and Reservation Services;]
2766-2648 [(D) 7211 Traveler Accommodation; and]
2767-2649 [(E) 7212 RV (Recreational Vehicle) Parks and Recreational Camps;]
2768-2650 [(ii) 25% of the sales from each business under NAICS Codes:]
2769-2651 [(A) 51213 Motion Picture and Video Exhibition;]
2770-2652 [(B) 532292 Recreational Goods Rental;]
2771-2653 [(C) 711 Performing Arts, Spectator Sports, and Related Industries;]
2772-2654 [(D) 712 Museums, Historical Sites, and Similar Institutions; and]
2773-2655 [(E) 713 Amusement, Gambling, and Recreation Industries;]
2774-2656 [(iii) 20% of the sales from each business under NAICS Code 722 Food Services and
2775-2657Drinking Places;]
2776-2658 [(iv) 18% of the sales from each business under NAICS Codes:]
2777-2659 [(A) 447 Gasoline Stations; and]
2778-2660 [(B) 81293 Parking Lots and Garages;] H.B. 54 Enrolled Copy
2779-- 96 -
2780-2661 [(v) 14% of the sales from each business under NAICS Code 8111 Automotive Repair
2781-2662and Maintenance; and]
2782-2663 [(vi) 5% of the sales from each business under NAICS Codes:]
2783-2664 [(A) 445 Food and Beverage Stores;]
2784-2665 [(B) 446 Health and Personal Care Stores;]
2785-2666 [(C) 448 Clothing and Clothing Accessories Stores;]
2786-2667 [(D) 451 Sporting Goods, Hobby, Musical Instrument, and Book Stores;]
2787-2668 [(E) 452 General Merchandise Stores; and]
2788-2669 [(F) 453 Miscellaneous Store Retailers.]
2789-2670 [(9)] (7) (a) For each fiscal year, the tourism office shall allocate 20% of the funds
2790-2671appropriated to the Tourism Marketing and Performance Account to the cooperative program
2791-2672described in this Subsection [(9)] (7).
2792-2673 (b) Money allocated to the cooperative program may be awarded to cities, counties,
2793-2674nonprofit destination marketing organizations, and similar public entities for the purpose of
2794-2675supplementing money committed by these entities for advertising and promoting sites and
2795-2676events in the state.
2796-2677 (c) The tourism office shall establish:
2797-2678 (i) an application and approval process for an entity to receive a cooperative program
2798-2679award, including an application deadline;
2799-2680 (ii) the criteria for awarding a cooperative program award, which shall emphasize
2800-2681attracting out-of-state visitors, and may include attracting in-state visitors, to sites and events in
2801-2682the state; and
2802-2683 (iii) eligibility, advertising, timing, and reporting requirements of an entity that
2803-2684receives a cooperative program award.
2804-2685 (d) Money allocated to the cooperative program that is not used in each fiscal year shall
2805-2686be returned to the Tourism Marketing Performance Account.
2806-2687 Section 12. Effective date.
2807-2688 (1) Except as provided in Subsection (2), this bill takes effect May 3, 2023. Enrolled Copy H.B. 54
2808-- 97 -
2809-2689 (2) The changes to Sections 59-12-102, 59-12-103, 59-12-108, 63N-2-502, and
2810-269063N-7-301 take effect January 1, 2025, if the amendment to the Utah Constitution proposed by
2811-2691S.J.R. 10, Proposal to Amend Utah Constitution - Income Tax, 2023 General Session, passes
2812-2692the Legislature and is approved by a majority of those voting on it at the next regular general
2813-2693election.
2814-2694 Section 13. Retrospective operation.
2815-2695 The following sections have retrospective operation for a taxable year beginning on or
2816-2696after January 1, 2023:
2817-2697 (1) Section 59-7-104;
2818-2698 (2) Section 59-7-201;
2819-2699 (3) Section 59-10-104;
2820-2700 (4) Section 59-10-1018;
2821-2701 (5) Section 59-10-1042; and
2822-2702 (6) Section 59-10-1044.
2809+2690S.J.R. 10, Proposal to Amend Utah Constitution - Income Tax, 2023 General Session, passes
2810+2691the Legislature and is approved by a majority of those voting on it at the next regular general
2811+2692election.
2812+2693 Section 13. Retrospective operation.
2813+2694 The following sections have retrospective operation for a taxable year beginning on or
2814+2695after January 1, 2023:
2815+2696 (1) Section 59-7-104;
2816+2697 (2) Section 59-7-201;
2817+2698 (3) Section 59-10-104;
2818+2699 (4) Section 59-10-1018;
2819+2700 (5) Section 59-10-1042; and
2820+2701 (6) Section 59-10-1044.