01-10 15:32 H.B. 176
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County Classification Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Walt Brooks
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LONG TITLE
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General Description:
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This bill modifies the population requirements for county classification.
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Highlighted Provisions:
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This bill:
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▸ modifies definitions;
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▸ modifies the population requirements for county classification;
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▸ modifies a sales and use tax exemption applicable to airports in certain counties; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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17-50-501, as last amended by Laws of Utah 2021, Chapter 24
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35A-16-102, as last amended by Laws of Utah 2024, Chapter 338
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59-12-104, as last amended by Laws of Utah 2024, Chapter 35
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63N-4-801, as last amended by Laws of Utah 2024, Chapters 438, 513
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72-2-133, as enacted by Laws of Utah 2023, Chapter 372
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 17-50-501 is amended to read:
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17-50-501 . Classification of counties.
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(1) Each county shall be classified according to its population.
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(2)(a) A county with a population of 1,000,000 or more is a county of the first class.
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(b) A county with a population of [175,000] 250,000 or more but less than 1,000,000 is a
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county of the second class.
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(c) A county with a population of [40,000] 55,000 or more but less than [175,000] 250,000 H.B. 176 01-10 15:32
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is a county of the third class.
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(d) A county with a population of [11,000] 15,000 or more but less than [40,000] 55,000
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is a county of the fourth class.
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(e) A county with a population of [4,000] 5,000 or more but less than [11,000] 15,000 is a
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county of the fifth class.
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(f) A county with a population less than [4,000] 5,000 is a county of the sixth class.
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Section 2. Section 35A-16-102 is amended to read:
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35A-16-102 . Definitions.
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As used in this chapter:
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(1) "Board" means the Utah Homeless Services Board created in Section 35A-16-204.
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(2) "Client" means an individual who is experiencing homelessness or an individual at risk
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of becoming homeless.
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(3) "Chief executive officer" means the same as that term is defined in Section 11-51-102.
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(4) "Collaborative applicant" means the entity designated by a continuum of care to collect
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and submit data and apply for funds on behalf of the continuum of care, as required by
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the United States Department of Housing and Urban Development.
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(5) "Continuum of care" means a regional or local planning body designated by the United
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States Department of Housing and Urban Development to coordinate services for
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individuals experiencing homelessness within an area of the state.
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(6) "Coordinator" means the state homelessness coordinator appointed under Section
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63J-4-202.
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(7) "Executive committee" means the executive committee of the board.
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(8) "Exit destination" means:
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(a) a homeless situation;
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(b) an institutional situation;
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(c) a temporary housing situation;
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(d) a permanent housing situation; or
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(e) other.
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(9) "First-tier eligible municipality" means a municipality that:
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(a) is located within:
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(i) a county of the first or second class; or
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(ii) a county of the third class, if the municipality has a population of 100,000 or
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more;
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(b) as determined by the office, has or is proposed to have an eligible shelter within the
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municipality's geographic boundaries within the following fiscal year;
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(c) due to the location of an eligible shelter within the municipality's geographic
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boundaries, requires eligible services; and
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(d) is certified as a first-tier eligible municipality in accordance with Section 35A-16-404.
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(10) "Homeless Management Information System" or "HMIS" means an information
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technology system that:
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(a) is used to collect client-level data and data on the provision of housing and services
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to homeless individuals and individuals at risk of homelessness in the state; and
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(b) meets the requirements of the United States Department of Housing and Urban
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Development.
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(11) "Homeless services budget" means the comprehensive annual budget and overview of
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all homeless services available in the state described in Subsection 35A-16-203(1)(b).
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(12) "Local homeless council" means a local planning body designated by the steering
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committee to coordinate services for individuals experiencing homelessness within an
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area of the state.
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(13) "Office" means the Office of Homeless Services.
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(14) "Second-tier eligible municipality" means a municipality that:
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(a) is located within:
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(i) a county of the [third,] fourth, fifth, or sixth class; or
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(ii) a county of the third class, if the municipality has a population of less than
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100,000;
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(b) as determined by the office, has or is proposed to have an eligible shelter within the
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municipality's geographic boundaries within the following fiscal year;
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(c) due to the location of an eligible shelter within the municipality's geographic
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boundaries, requires eligible services; and
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(d) is certified as a second-tier eligible municipality in accordance with Section
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35A-16-404.
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(15)(a) "Service provider" means a state agency, a local government, or a private
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organization that provides services to clients.
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(b) "Service provider" includes a correctional facility and the Administrative Office of
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the Courts.
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(16) "Steering committee" means the Utah Homeless Network Steering Committee created
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in Section 35A-16-206.
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(17) "Strategic plan" means the statewide strategic plan to minimize homelessness in the
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state described in Subsection 35A-16-203(1)(c).
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(18) "Type of homelessness" means:
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(a) chronic homelessness;
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(b) episodic homelessness;
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(c) situational homelessness; or
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(d) family homelessness.
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Section 3. Section 59-12-104 is amended to read:
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59-12-104 . Exemptions.
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Exemptions from the taxes imposed by this chapter are as follows:
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(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
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under Chapter 13, Motor and Special Fuel Tax Act;
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(2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
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subdivisions; however, this exemption does not apply to sales of:
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(a) construction materials except:
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(i) construction materials purchased by or on behalf of institutions of the public
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education system as defined in Utah Constitution, Article X, Section 2, provided
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the construction materials are clearly identified and segregated and installed or
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converted to real property which is owned by institutions of the public education
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system; and
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(ii) construction materials purchased by the state, its institutions, or its political
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subdivisions which are installed or converted to real property by employees of the
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state, its institutions, or its political subdivisions; or
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(b) tangible personal property in connection with the construction, operation,
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maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or
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facilities providing additional project capacity, as defined in Section 11-13-103;
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(3)(a) sales of an item described in Subsection (3)(b) from a vending machine if:
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(i) the proceeds of each sale do not exceed $1; and
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(ii) the seller or operator of the vending machine reports an amount equal to 150% of
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the cost of the item described in Subsection (3)(b) as goods consumed; and
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(b) Subsection (3)(a) applies to:
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(i) food and food ingredients; or
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(ii) prepared food;
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(4)(a) sales of the following to a commercial airline carrier for in-flight consumption:
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(i) alcoholic beverages;
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(ii) food and food ingredients; or
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(iii) prepared food;
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(b) sales of tangible personal property or a product transferred electronically:
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(i) to a passenger;
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(ii) by a commercial airline carrier; and
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(iii) during a flight for in-flight consumption or in-flight use by the passenger; or
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(c) services related to Subsection (4)(a) or (b);
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(5) sales of parts and equipment for installation in an aircraft operated by a common carrier
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in interstate or foreign commerce;
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(6) sales of commercials, motion picture films, prerecorded audio program tapes or records,
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and prerecorded video tapes by a producer, distributor, or studio to a motion picture
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exhibitor, distributor, or commercial television or radio broadcaster;
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(7)(a) except as provided in Subsection (85) and subject to Subsection (7)(b), sales of
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cleaning or washing of tangible personal property if the cleaning or washing of the
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tangible personal property is not assisted cleaning or washing of tangible personal
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property;
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(b) if a seller that sells at the same business location assisted cleaning or washing of
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tangible personal property and cleaning or washing of tangible personal property that
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is not assisted cleaning or washing of tangible personal property, the exemption
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described in Subsection (7)(a) applies if the seller separately accounts for the sales of
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the assisted cleaning or washing of the tangible personal property; and
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(c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3, Utah
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Administrative Rulemaking Act, the commission may make rules:
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(i) governing the circumstances under which sales are at the same business location;
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and
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(ii) establishing the procedures and requirements for a seller to separately account for
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sales of assisted cleaning or washing of tangible personal property;
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(8) sales made to or by religious or charitable institutions in the conduct of their regular
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religious or charitable functions and activities, if the requirements of Section 59-12-104.1
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are fulfilled;
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(9) sales of a vehicle of a type required to be registered under the motor vehicle laws of this
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state if:
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(a) the sale is not from the vehicle's lessor to the vehicle's lessee;
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(b) the vehicle is not registered in this state; and
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(c)(i) the vehicle is not used in this state; or
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(ii) the vehicle is used in this state:
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(A) if the vehicle is not used to conduct business, for a time period that does not
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exceed the longer of:
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(I) 30 days in any calendar year; or
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(II) the time period necessary to transport the vehicle to the borders of this
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state; or
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(B) if the vehicle is used to conduct business, for the time period necessary to
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transport the vehicle to the borders of this state;
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(10)(a) amounts paid for an item described in Subsection (10)(b) if:
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(i) the item is intended for human use; and
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(ii)(A) a prescription was issued for the item; or
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(B) the item was purchased by a hospital or other medical facility; and
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(b)(i) Subsection (10)(a) applies to:
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(A) a drug;
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(B) a syringe; or
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(C) a stoma supply; and
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(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
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the commission may by rule define the terms:
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(A) "syringe"; or
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(B) "stoma supply";
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(11) purchases or leases exempt under Section 19-12-201;
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(12)(a) sales of an item described in Subsection (12)(c) served by:
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(i) the following if the item described in Subsection (12)(c) is not available to the
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general public:
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(A) a church; or
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(B) a charitable institution; or
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(ii) an institution of higher education if:
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(A) the item described in Subsection (12)(c) is not available to the general public;
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or
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(B) the item described in Subsection (12)(c) is prepaid as part of a student meal
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plan offered by the institution of higher education; or
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(b) sales of an item described in Subsection (12)(c) provided for a patient by:
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(i) a medical facility; or
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(ii) a nursing facility; and
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(c) Subsections (12)(a) and (b) apply to:
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(i) food and food ingredients;
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(ii) prepared food; or
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(iii) alcoholic beverages;
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(13)(a) except as provided in Subsection (13)(b), the sale of tangible personal property
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or a product transferred electronically by a person:
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(i) regardless of the number of transactions involving the sale of that tangible
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personal property or product transferred electronically by that person; and
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(ii) not regularly engaged in the business of selling that type of tangible personal
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property or product transferred electronically;
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(b) this Subsection (13) does not apply if:
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(i) the sale is one of a series of sales of a character to indicate that the person is
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regularly engaged in the business of selling that type of tangible personal property
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or product transferred electronically;
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(ii) the person holds that person out as regularly engaged in the business of selling
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that type of tangible personal property or product transferred electronically;
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(iii) the person sells an item of tangible personal property or product transferred
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electronically that the person purchased as a sale that is exempt under Subsection
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(25); or
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(iv) the sale is of a vehicle or vessel required to be titled or registered under the laws
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of this state in which case the tax is based upon:
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(A) the bill of sale, lease agreement, or other written evidence of value of the
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vehicle or vessel being sold; or
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(B) in the absence of a bill of sale, lease agreement, or other written evidence of
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value, the fair market value of the vehicle or vessel being sold at the time of the
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sale as determined by the commission; and
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(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
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commission shall make rules establishing the circumstances under which:
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(i) a person is regularly engaged in the business of selling a type of tangible personal
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property or product transferred electronically;
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(ii) a sale of tangible personal property or a product transferred electronically is one
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of a series of sales of a character to indicate that a person is regularly engaged in
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the business of selling that type of tangible personal property or product
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transferred electronically; or
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(iii) a person holds that person out as regularly engaged in the business of selling a
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type of tangible personal property or product transferred electronically;
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(14) amounts paid or charged for a purchase or lease of machinery, equipment, normal
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operating repair or replacement parts, or materials, except for office equipment or office
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supplies, by:
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(a) a manufacturing facility that:
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(i) is located in the state; and
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(ii) uses or consumes the machinery, equipment, normal operating repair or
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replacement parts, or materials:
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(A) in the manufacturing process to manufacture an item sold as tangible personal
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property, as the commission may define that phrase in accordance with Title
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63G, Chapter 3, Utah Administrative Rulemaking Act; or
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(B) for a scrap recycler, to process an item sold as tangible personal property, as
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the commission may define that phrase in accordance with Title 63G, Chapter
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3, Utah Administrative Rulemaking Act;
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(b) an establishment, as the commission defines that term in accordance with Title 63G,
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Chapter 3, Utah Administrative Rulemaking Act, that:
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(i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
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Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
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Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except
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Fuels) Mining, of the 2002 North American Industry Classification System of the
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federal Executive Office of the President, Office of Management and Budget;
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(ii) is located in the state; and
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(iii) uses or consumes the machinery, equipment, normal operating repair or
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replacement parts, or materials in:
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(A) the production process to produce an item sold as tangible personal property,
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as the commission may define that phrase in accordance with Title 63G,
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Chapter 3, Utah Administrative Rulemaking Act;
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(B) research and development, as the commission may define that phrase in
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accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
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(C) transporting, storing, or managing tailings, overburden, or similar waste
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materials produced from mining;
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(D) developing or maintaining a road, tunnel, excavation, or similar feature used
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in mining; or
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(E) preventing, controlling, or reducing dust or other pollutants from mining; or
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(c) an establishment, as the commission defines that term in accordance with Title 63G,
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Chapter 3, Utah Administrative Rulemaking Act, that:
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(i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North
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American Industry Classification System of the federal Executive Office of the
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President, Office of Management and Budget;
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(ii) is located in the state; and
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(iii) uses or consumes the machinery, equipment, normal operating repair or
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replacement parts, or materials in the operation of the web search portal;
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(15)(a) sales of the following if the requirements of Subsection (15)(b) are met:
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(i) tooling;
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(ii) special tooling;
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(iii) support equipment;
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(iv) special test equipment; or
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(v) parts used in the repairs or renovations of tooling or equipment described in
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Subsections (15)(a)(i) through (iv); and
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(b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
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(i) the tooling, equipment, or parts are used or consumed exclusively in the
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performance of any aerospace or electronics industry contract with the United
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States government or any subcontract under that contract; and
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(ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
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title to the tooling, equipment, or parts is vested in the United States government
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as evidenced by:
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(A) a government identification tag placed on the tooling, equipment, or parts; or
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(B) listing on a government-approved property record if placing a government
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identification tag on the tooling, equipment, or parts is impractical;
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(16) sales of newspapers or newspaper subscriptions;
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(17)(a) except as provided in Subsection (17)(b), tangible personal property or a product
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transferred electronically traded in as full or part payment of the purchase price,
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except that for purposes of calculating sales or use tax upon vehicles not sold by a
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vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
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(i) the bill of sale or other written evidence of value of the vehicle being sold and the
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vehicle being traded in; or
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(ii) in the absence of a bill of sale or other written evidence of value, the then existing
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fair market value of the vehicle being sold and the vehicle being traded in, as
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determined by the commission; and
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(b) Subsection (17)(a) does not apply to the following items of tangible personal
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property or products transferred electronically traded in as full or part payment of the
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purchase price:
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(i) money;
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(ii) electricity;
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(iii) water;
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(iv) gas; or
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(v) steam;
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(18)(a)(i) except as provided in Subsection (18)(b), sales of tangible personal
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property or a product transferred electronically used or consumed primarily and
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directly in farming operations, regardless of whether the tangible personal
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property or product transferred electronically:
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(A) becomes part of real estate; or
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(B) is installed by a farmer, contractor, or subcontractor; or
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(ii) sales of parts used in the repairs or renovations of tangible personal property or a
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product transferred electronically if the tangible personal property or product
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transferred electronically is exempt under Subsection (18)(a)(i); and
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(b) amounts paid or charged for the following are subject to the taxes imposed by this
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chapter:
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(i)(A) subject to Subsection (18)(b)(i)(B), machinery, equipment, materials, or
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supplies if used in a manner that is incidental to farming; and
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(B) tangible personal property that is considered to be used in a manner that is
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incidental to farming includes:
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(I) hand tools; or
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(II) maintenance and janitorial equipment and supplies;
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(ii)(A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a
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product transferred electronically if the tangible personal property or product
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transferred electronically is used in an activity other than farming; and
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(B) tangible personal property or a product transferred electronically that is
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considered to be used in an activity other than farming includes:
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(I) office equipment and supplies; or
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(II) equipment and supplies used in:
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(Aa) the sale or distribution of farm products;
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(Bb) research; or
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(Cc) transportation; or
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(iii) a vehicle required to be registered by the laws of this state during the period
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ending two years after the date of the vehicle's purchase;
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(19) sales of hay;
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(20) exclusive sale during the harvest season of seasonal crops, seedling plants, or garden,
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farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
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garden, farm, or other agricultural produce is sold by:
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(a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
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agricultural produce;
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(b) an employee of the producer described in Subsection (20)(a); or
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(c) a member of the immediate family of the producer described in Subsection (20)(a);
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(21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued under
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the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
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(22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
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nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
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wholesaler, or retailer for use in packaging tangible personal property to be sold by that
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manufacturer, processor, wholesaler, or retailer;
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(23) a product stored in the state for resale;
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(24)(a) purchases of a product if:
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(i) the product is:
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(A) purchased outside of this state;
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(B) brought into this state:
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(I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
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(II) by a nonresident person who is not living or working in this state at the
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time of the purchase;
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(C) used for the personal use or enjoyment of the nonresident person described in
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Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state;
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and
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(D) not used in conducting business in this state; and
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(ii) for:
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(A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use
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of the product for a purpose for which the product is designed occurs outside of
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this state;
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(B) a boat, the boat is registered outside of this state; or
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(C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
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registered outside of this state;
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(b) the exemption provided for in Subsection (24)(a) does not apply to:
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(i) a lease or rental of a product; or
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(ii) a sale of a vehicle exempt under Subsection (33); and
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(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
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purposes of Subsection (24)(a), the commission may by rule define what constitutes
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the following:
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(i) conducting business in this state if that phrase has the same meaning in this
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Subsection (24) as in Subsection (63);
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(ii) the first use of a product if that phrase has the same meaning in this Subsection
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(24) as in Subsection (63); or
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(iii) a purpose for which a product is designed if that phrase has the same meaning in
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this Subsection (24) as in Subsection (63);
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(25) a product purchased for resale in the regular course of business, either in its original
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form or as an ingredient or component part of a manufactured or compounded product;
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(26) a product upon which a sales or use tax was paid to some other state, or one of its
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subdivisions, except that the state shall be paid any difference between the tax paid and
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the tax imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment
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is allowed if the tax paid was greater than the tax imposed by this part and Part 2, Local
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Sales and Use Tax Act;
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(27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a person
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for use in compounding a service taxable under the subsections;
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(28) purchases made in accordance with the special supplemental nutrition program for
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women, infants, and children established in 42 U.S.C. Sec. 1786;
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(29) sales or leases of rolls, rollers, refractory brick, electric motors, or other replacement
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parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code 3312 of
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the 1987 Standard Industrial Classification Manual of the federal Executive Office of the
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President, Office of Management and Budget;
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(30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
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Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard
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motor is:
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(a) not registered in this state; and
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(b)(i) not used in this state; or
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(ii) used in this state:
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(A) if the boat, boat trailer, or outboard motor is not used to conduct business, for
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a time period that does not exceed the longer of:
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(I) 30 days in any calendar year; or
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(II) the time period necessary to transport the boat, boat trailer, or outboard
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motor to the borders of this state; or
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(B) if the boat, boat trailer, or outboard motor is used to conduct business, for the
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time period necessary to transport the boat, boat trailer, or outboard motor to
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the borders of this state;
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(31) sales of aircraft manufactured in Utah;
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(32) amounts paid for the purchase of telecommunications service for purposes of
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providing telecommunications service;
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(33) sales, leases, or uses of the following:
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(a) a vehicle by an authorized carrier; or
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(b) tangible personal property that is installed on a vehicle:
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(i) sold or leased to or used by an authorized carrier; and
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(ii) before the vehicle is placed in service for the first time;
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(34)(a) 45% of the sales price of any new manufactured home; and
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(b) 100% of the sales price of any used manufactured home;
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(35) sales relating to schools and fundraising sales;
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(36) sales or rentals of durable medical equipment if:
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(a) a person presents a prescription for the durable medical equipment; and
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(b) the durable medical equipment is used for home use only;
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(37)(a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
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Section 72-11-102; and
434
(b) the commission shall by rule determine the method for calculating sales exempt
435
under Subsection (37)(a) that are not separately metered and accounted for in utility
436
billings;
437
(38) sales to a ski resort of:
438
(a) snowmaking equipment;
439
(b) ski slope grooming equipment;
- 13 - H.B. 176 01-10 15:32
440
(c) passenger ropeways as defined in Section 72-11-102; or
441
(d) parts used in the repairs or renovations of equipment or passenger ropeways
442
described in Subsections (38)(a) through (c);
443
(39) subject to Subsection 59-12-103(2)(j), sales of natural gas, electricity, heat, coal, fuel
444
oil, or other fuels for industrial use;
445
(40)(a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
446
amusement, entertainment, or recreation an unassisted amusement device as defined
447
in Section 59-12-102;
448
(b) if a seller that sells or rents at the same business location the right to use or operate
449
for amusement, entertainment, or recreation one or more unassisted amusement
450
devices and one or more assisted amusement devices, the exemption described in
451
Subsection (40)(a) applies if the seller separately accounts for the sales or rentals of
452
the right to use or operate for amusement, entertainment, or recreation for the assisted
453
amusement devices; and
454
(c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3, Utah
455
Administrative Rulemaking Act, the commission may make rules:
456
(i) governing the circumstances under which sales are at the same business location;
457
and
458
(ii) establishing the procedures and requirements for a seller to separately account for
459
the sales or rentals of the right to use or operate for amusement, entertainment, or
460
recreation for assisted amusement devices;
461
(41)(a) sales of photocopies by:
462
(i) a governmental entity; or
463
(ii) an entity within the state system of public education, including:
464
(A) a school; or
465
(B) the State Board of Education; or
466
(b) sales of publications by a governmental entity;
467
(42) amounts paid for admission to an athletic event at an institution of higher education
468
that is subject to the provisions of Title IX of the Education Amendments of 1972, 20
469
U.S.C. Sec. 1681 et seq.;
470
(43)(a) sales made to or by:
471
(i) an area agency on aging; or
472
(ii) a senior citizen center owned by a county, city, or town; or
473
(b) sales made by a senior citizen center that contracts with an area agency on aging;
- 14 - 01-10 15:32 H.B. 176
474
(44) sales or leases of semiconductor fabricating, processing, research, or development
475
materials regardless of whether the semiconductor fabricating, processing, research, or
476
development materials:
477
(a) actually come into contact with a semiconductor; or
478
(b) ultimately become incorporated into real property;
479
(45) an amount paid by or charged to a purchaser for accommodations and services
480
described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under
481
Section 59-12-104.2;
482
(46) the lease or use of a vehicle issued a temporary sports event registration certificate in
483
accordance with Section 41-3-306 for the event period specified on the temporary sports
484
event registration certificate;
485
(47)(a) sales or uses of electricity, if the sales or uses are made under a retail tariff
486
adopted by the Public Service Commission only for purchase of electricity produced
487
from a new alternative energy source built after January 1, 2016, as designated in the
488
tariff by the Public Service Commission; and
489
(b) for a residential use customer only, the exemption under Subsection (47)(a) applies
490
only to the portion of the tariff rate a customer pays under the tariff described in
491
Subsection (47)(a) that exceeds the tariff rate under the tariff described in Subsection
492
(47)(a) that the customer would have paid absent the tariff;
493
(48) sales or rentals of mobility enhancing equipment if a person presents a prescription for
494
the mobility enhancing equipment;
495
(49) sales of water in a:
496
(a) pipe;
497
(b) conduit;
498
(c) ditch; or
499
(d) reservoir;
500
(50) sales of currency or coins that constitute legal tender of a state, the United States, or a
501
foreign nation;
502
(51)(a) sales of an item described in Subsection (51)(b) if the item:
503
(i) does not constitute legal tender of a state, the United States, or a foreign nation;
504
and
505
(ii) has a gold, silver, or platinum content of 50% or more; and
506
(b) Subsection (51)(a) applies to a gold, silver, or platinum:
507
(i) ingot;
- 15 - H.B. 176 01-10 15:32
508
(ii) bar;
509
(iii) medallion; or
510
(iv) decorative coin;
511
(52) amounts paid on a sale-leaseback transaction;
512
(53) sales of a prosthetic device:
513
(a) for use on or in a human; and
514
(b)(i) for which a prescription is required; or
515
(ii) if the prosthetic device is purchased by a hospital or other medical facility;
516
(54)(a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
517
machinery or equipment by an establishment described in Subsection (54)(c) if the
518
machinery or equipment is primarily used in the production or postproduction of the
519
following media for commercial distribution:
520
(i) a motion picture;
521
(ii) a television program;
522
(iii) a movie made for television;
523
(iv) a music video;
524
(v) a commercial;
525
(vi) a documentary; or
526
(vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
527
commission by administrative rule made in accordance with Subsection (54)(d); or
528
(b) purchases, leases, or rentals of machinery or equipment by an establishment
529
described in Subsection (54)(c) that is used for the production or postproduction of
530
the following are subject to the taxes imposed by this chapter:
531
(i) a live musical performance;
532
(ii) a live news program; or
533
(iii) a live sporting event;
534
(c) the following establishments listed in the 1997 North American Industry
535
Classification System of the federal Executive Office of the President, Office of
536
Management and Budget, apply to Subsections (54)(a) and (b):
537
(i) NAICS Code 512110; or
538
(ii) NAICS Code 51219; and
539
(d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
540
commission may by rule:
541
(i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
- 16 - 01-10 15:32 H.B. 176
542
or
543
(ii) define:
544
(A) "commercial distribution";
545
(B) "live musical performance";
546
(C) "live news program"; or
547
(D) "live sporting event";
548
(55)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
549
or before June 30, 2027, of tangible personal property that:
550
(i) is leased or purchased for or by a facility that:
551
(A) is an alternative energy electricity production facility;
552
(B) is located in the state; and
553
(C)(I) becomes operational on or after July 1, 2004; or
554
(II) has its generation capacity increased by one or more megawatts on or after
555
July 1, 2004, as a result of the use of the tangible personal property;
556
(ii) has an economic life of five or more years; and
557
(iii) is used to make the facility or the increase in capacity of the facility described in
558
Subsection (55)(a)(i) operational up to the point of interconnection with an
559
existing transmission grid including:
560
(A) a wind turbine;
561
(B) generating equipment;
562
(C) a control and monitoring system;
563
(D) a power line;
564
(E) substation equipment;
565
(F) lighting;
566
(G) fencing;
567
(H) pipes; or
568
(I) other equipment used for locating a power line or pole; and
569
(b) this Subsection (55) does not apply to:
570
(i) tangible personal property used in construction of:
571
(A) a new alternative energy electricity production facility; or
572
(B) the increase in the capacity of an alternative energy electricity production
573
facility;
574
(ii) contracted services required for construction and routine maintenance activities;
575
and
- 17 - H.B. 176 01-10 15:32
576
(iii) unless the tangible personal property is used or acquired for an increase in
577
capacity of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal
578
property used or acquired after:
579
(A) the alternative energy electricity production facility described in Subsection
580
(55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
581
(B) the increased capacity described in Subsection (55)(a)(i) is operational as
582
described in Subsection (55)(a)(iii);
583
(56)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
584
or before June 30, 2027, of tangible personal property that:
585
(i) is leased or purchased for or by a facility that:
586
(A) is a waste energy production facility;
587
(B) is located in the state; and
588
(C)(I) becomes operational on or after July 1, 2004; or
589
(II) has its generation capacity increased by one or more megawatts on or after
590
July 1, 2004, as a result of the use of the tangible personal property;
591
(ii) has an economic life of five or more years; and
592
(iii) is used to make the facility or the increase in capacity of the facility described in
593
Subsection (56)(a)(i) operational up to the point of interconnection with an
594
existing transmission grid including:
595
(A) generating equipment;
596
(B) a control and monitoring system;
597
(C) a power line;
598
(D) substation equipment;
599
(E) lighting;
600
(F) fencing;
601
(G) pipes; or
602
(H) other equipment used for locating a power line or pole; and
603
(b) this Subsection (56) does not apply to:
604
(i) tangible personal property used in construction of:
605
(A) a new waste energy facility; or
606
(B) the increase in the capacity of a waste energy facility;
607
(ii) contracted services required for construction and routine maintenance activities;
608
and
609
(iii) unless the tangible personal property is used or acquired for an increase in
- 18 - 01-10 15:32 H.B. 176
610
capacity described in Subsection (56)(a)(i)(C)(II), tangible personal property used
611
or acquired after:
612
(A) the waste energy facility described in Subsection (56)(a)(i) is operational as
613
described in Subsection (56)(a)(iii); or
614
(B) the increased capacity described in Subsection (56)(a)(i) is operational as
615
described in Subsection (56)(a)(iii);
616
(57)(a) leases of five or more years or purchases made on or after July 1, 2004, but on
617
or before June 30, 2027, of tangible personal property that:
618
(i) is leased or purchased for or by a facility that:
619
(A) is located in the state;
620
(B) produces fuel from alternative energy, including:
621
(I) methanol; or
622
(II) ethanol; and
623
(C)(I) becomes operational on or after July 1, 2004; or
624
(II) has its capacity to produce fuel increase by 25% or more on or after July 1,
625
2004, as a result of the installation of the tangible personal property;
626
(ii) has an economic life of five or more years; and
627
(iii) is installed on the facility described in Subsection (57)(a)(i);
628
(b) this Subsection (57) does not apply to:
629
(i) tangible personal property used in construction of:
630
(A) a new facility described in Subsection (57)(a)(i); or
631
(B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
632
(ii) contracted services required for construction and routine maintenance activities;
633
and
634
(iii) unless the tangible personal property is used or acquired for an increase in
635
capacity described in Subsection (57)(a)(i)(C)(II), tangible personal property used
636
or acquired after:
637
(A) the facility described in Subsection (57)(a)(i) is operational; or
638
(B) the increased capacity described in Subsection (57)(a)(i) is operational;
639
(58)(a) subject to Subsection (58)(b), sales of tangible personal property or a product
640
transferred electronically to a person within this state if that tangible personal
641
property or product transferred electronically is subsequently shipped outside the
642
state and incorporated pursuant to contract into and becomes a part of real property
643
located outside of this state; and
- 19 - H.B. 176 01-10 15:32
644
(b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
645
state or political entity to which the tangible personal property is shipped imposes a
646
sales, use, gross receipts, or other similar transaction excise tax on the transaction
647
against which the other state or political entity allows a credit for sales and use taxes
648
imposed by this chapter;
649
(59) purchases:
650
(a) of one or more of the following items in printed or electronic format:
651
(i) a list containing information that includes one or more:
652
(A) names; or
653
(B) addresses; or
654
(ii) a database containing information that includes one or more:
655
(A) names; or
656
(B) addresses; and
657
(b) used to send direct mail;
658
(60) redemptions or repurchases of a product by a person if that product was:
659
(a) delivered to a pawnbroker as part of a pawn transaction; and
660
(b) redeemed or repurchased within the time period established in a written agreement
661
between the person and the pawnbroker for redeeming or repurchasing the product;
662
(61)(a) purchases or leases of an item described in Subsection (61)(b) if the item:
663
(i) is purchased or leased by, or on behalf of, a telecommunications service provider;
664
and
665
(ii) has a useful economic life of one or more years; and
666
(b) the following apply to Subsection (61)(a):
667
(i) telecommunications enabling or facilitating equipment, machinery, or software;
668
(ii) telecommunications equipment, machinery, or software required for 911 service;
669
(iii) telecommunications maintenance or repair equipment, machinery, or software;
670
(iv) telecommunications switching or routing equipment, machinery, or software; or
671
(v) telecommunications transmission equipment, machinery, or software;
672
(62)(a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
673
personal property or a product transferred electronically that are used in the research
674
and development of alternative energy technology; and
675
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
676
commission may, for purposes of Subsection (62)(a), make rules defining what
677
constitutes purchases of tangible personal property or a product transferred
- 20 - 01-10 15:32 H.B. 176
678
electronically that are used in the research and development of alternative energy
679
technology;
680
(63)(a) purchases of tangible personal property or a product transferred electronically if:
681
(i) the tangible personal property or product transferred electronically is:
682
(A) purchased outside of this state;
683
(B) brought into this state at any time after the purchase described in Subsection
684
(63)(a)(i)(A); and
685
(C) used in conducting business in this state; and
686
(ii) for:
687
(A) tangible personal property or a product transferred electronically other than
688
the tangible personal property described in Subsection (63)(a)(ii)(B), the first
689
use of the property for a purpose for which the property is designed occurs
690
outside of this state; or
691
(B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
692
registered outside of this state and not required to be registered in this state
693
under Section 41-1a-202 or 73-18-9 based on residency;
694
(b) the exemption provided for in Subsection (63)(a) does not apply to:
695
(i) a lease or rental of tangible personal property or a product transferred
696
electronically; or
697
(ii) a sale of a vehicle exempt under Subsection (33); and
698
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
699
purposes of Subsection (63)(a), the commission may by rule define what constitutes
700
the following:
701
(i) conducting business in this state if that phrase has the same meaning in this
702
Subsection (63) as in Subsection (24);
703
(ii) the first use of tangible personal property or a product transferred electronically if
704
that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
705
(iii) a purpose for which tangible personal property or a product transferred
706
electronically is designed if that phrase has the same meaning in this Subsection
707
(63) as in Subsection (24);
708
(64) sales of disposable home medical equipment or supplies if:
709
(a) a person presents a prescription for the disposable home medical equipment or
710
supplies;
711
(b) the disposable home medical equipment or supplies are used exclusively by the
- 21 - H.B. 176 01-10 15:32
712
person to whom the prescription described in Subsection (64)(a) is issued; and
713
(c) the disposable home medical equipment and supplies are listed as eligible for
714
payment under:
715
(i) Title XVIII, federal Social Security Act; or
716
(ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
717
(65) sales:
718
(a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit District
719
Act; or
720
(b) of tangible personal property to a subcontractor of a public transit district, if the
721
tangible personal property is:
722
(i) clearly identified; and
723
(ii) installed or converted to real property owned by the public transit district;
724
(66) sales of construction materials:
725
(a) purchased on or after July 1, 2010;
726
(b) purchased by, on behalf of, or for the benefit of an international airport:
727
(i) located within a county of the first class; and
728
(ii) that has a United States customs office on its premises; and
729
(c) if the construction materials are:
730
(i) clearly identified;
731
(ii) segregated; and
732
(iii) installed or converted to real property:
733
(A) owned or operated by the international airport described in Subsection (66)(b);
734
and
735
(B) located at the international airport described in Subsection (66)(b);
736
(67) sales of construction materials:
737
(a) purchased on or after July 1, 2008;
738
(b) purchased by, on behalf of, or for the benefit of a new airport:
739
(i) located within a county of the second or third class; and
740
(ii) that is owned or operated by a city in which an airline as defined in Section
741
59-2-102 is headquartered; and
742
(c) if the construction materials are:
743
(i) clearly identified;
744
(ii) segregated; and
745
(iii) installed or converted to real property:
- 22 - 01-10 15:32 H.B. 176
746
(A) owned or operated by the new airport described in Subsection (67)(b);
747
(B) located at the new airport described in Subsection (67)(b); and
748
(C) as part of the construction of the new airport described in Subsection (67)(b);
749
(68) except for the tax imposed by Subsection 59-12-103(2)(d), sales of fuel to a common
750
carrier that is a railroad for use in a locomotive engine;
751
(69) purchases and sales described in Section 63H-4-111;
752
(70)(a) sales of tangible personal property to an aircraft maintenance, repair, and
753
overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in
754
this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
755
aircraft's registration lists a state or country other than this state as the location of
756
registry of the fixed wing turbine powered aircraft; or
757
(b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
758
provider in connection with the maintenance, repair, overhaul, or refurbishment in
759
this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
760
aircraft's registration lists a state or country other than this state as the location of
761
registry of the fixed wing turbine powered aircraft;
762
(71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
763
(a) to a person admitted to an institution of higher education; and
764
(b) by a seller, other than a bookstore owned by an institution of higher education, if
765
51% or more of that seller's sales revenue for the previous calendar quarter are sales
766
of a textbook for a higher education course;
767
(72) a license fee or tax a municipality imposes in accordance with Subsection 10-1-203(5)
768
on a purchaser from a business for which the municipality provides an enhanced level
769a
of
769
municipal services;
770
(73) amounts paid or charged for construction materials used in the construction of a new or
771
expanding life science research and development facility in the state, if the construction
772
materials are:
773
(a) clearly identified;
774
(b) segregated; and
775
(c) installed or converted to real property;
776
(74) amounts paid or charged for:
777
(a) a purchase or lease of machinery and equipment that:
778
(i) are used in performing qualified research:
- 23 - H.B. 176 01-10 15:32
779
(A) as defined in Section 41(d), Internal Revenue Code; and
780
(B) in the state; and
781
(ii) have an economic life of three or more years; and
782
(b) normal operating repair or replacement parts:
783
(i) for the machinery and equipment described in Subsection (74)(a); and
784
(ii) that have an economic life of three or more years;
785
(75) a sale or lease of tangible personal property used in the preparation of prepared food if:
786
(a) for a sale:
787
(i) the ownership of the seller and the ownership of the purchaser are identical; and
788
(ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
789
tangible personal property prior to making the sale; or
790
(b) for a lease:
791
(i) the ownership of the lessor and the ownership of the lessee are identical; and
792
(ii) the lessor or the lessee paid a tax under this chapter on the purchase of that
793
tangible personal property prior to making the lease;
794
(76)(a) purchases of machinery or equipment if:
795
(i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
796
Gambling, and Recreation Industries, of the 2012 North American Industry
797
Classification System of the federal Executive Office of the President, Office of
798
Management and Budget;
799
(ii) the machinery or equipment:
800
(A) has an economic life of three or more years; and
801
(B) is used by one or more persons who pay admission or user fees described in
802
Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment;
803
and
804
(iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
805
(A) amounts paid or charged as admission or user fees described in Subsection
806
59-12-103(1)(f); and
807
(B) subject to taxation under this chapter; and
808
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
809
commission may make rules for verifying that 51% of a purchaser's sales revenue for
810
the previous calendar quarter is:
811
(i) amounts paid or charged as admission or user fees described in Subsection
812
59-12-103(1)(f); and
- 24 - 01-10 15:32 H.B. 176
813
(ii) subject to taxation under this chapter;
814
(77) purchases of a short-term lodging consumable by a business that provides
815
accommodations and services described in Subsection 59-12-103(1)(i);
816
(78) amounts paid or charged to access a database:
817
(a) if the primary purpose for accessing the database is to view or retrieve information
818
from the database; and
819
(b) not including amounts paid or charged for a:
820
(i) digital audio work;
821
(ii) digital audio-visual work; or
822
(iii) digital book;
823
(79) amounts paid or charged for a purchase or lease made by an electronic financial
824
payment service, of:
825
(a) machinery and equipment that:
826
(i) are used in the operation of the electronic financial payment service; and
827
(ii) have an economic life of three or more years; and
828
(b) normal operating repair or replacement parts that:
829
(i) are used in the operation of the electronic financial payment service; and
830
(ii) have an economic life of three or more years;
831
(80) sales of a fuel cell as defined in Section 54-15-102;
832
(81) amounts paid or charged for a purchase or lease of tangible personal property or a
833
product transferred electronically if the tangible personal property or product transferred
834
electronically:
835
(a) is stored, used, or consumed in the state; and
836
(b) is temporarily brought into the state from another state:
837
(i) during a disaster period as defined in Section 53-2a-1202;
838
(ii) by an out-of-state business as defined in Section 53-2a-1202;
839
(iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
840
(iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
841
(82) sales of goods and services at a morale, welfare, and recreation facility, as defined in
842
Section 39A-7-102, made pursuant to Title 39A, Chapter 7, Morale, Welfare, and
843
Recreation Program;
844
(83) amounts paid or charged for a purchase or lease of molten magnesium;
845
(84) amounts paid or charged for a purchase or lease made by a qualifying data center or an
846
occupant of a qualifying data center of machinery, equipment, or normal operating
- 25 - H.B. 176 01-10 15:32
847
repair or replacement parts, if the machinery, equipment, or normal operating repair or
848
replacement parts:
849
(a) are used in:
850
(i) the operation of the qualifying data center; or
851
(ii) the occupant's operations in the qualifying data center; and
852
(b) have an economic life of one or more years;
853
(85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a vehicle
854
that includes cleaning or washing of the interior of the vehicle;
855
(86) amounts paid or charged for a purchase or lease of machinery, equipment, normal
856
operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or
857
supplies used or consumed:
858
(a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
859
in Section 79-6-701 located in the state;
860
(b) if the machinery, equipment, normal operating repair or replacement parts, catalysts,
861
chemicals, reagents, solutions, or supplies are used or consumed in:
862
(i) the production process to produce gasoline or diesel fuel, or at which blendstock is
863
added to gasoline or diesel fuel;
864
(ii) research and development;
865
(iii) transporting, storing, or managing raw materials, work in process, finished
866
products, and waste materials produced from refining gasoline or diesel fuel, or
867
adding blendstock to gasoline or diesel fuel;
868
(iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
869
refining; or
870
(v) preventing, controlling, or reducing pollutants from refining; and
871
(c) if the person holds a valid refiner tax exemption certification as defined in Section
872
79-6-701;
873
(87) amounts paid to or charged by a proprietor for accommodations and services, as
874
defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations
875
tax imposed under Section 63H-1-205;
876
(88) amounts paid or charged for a purchase or lease of machinery, equipment, normal
877
operating repair or replacement parts, or materials, except for office equipment or office
878
supplies, by an establishment, as the commission defines that term in accordance with
879
Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
880
(a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
- 26 - 01-10 15:32 H.B. 176
881
American Industry Classification System of the federal Executive Office of the
882
President, Office of Management and Budget;
883
(b) is located in this state; and
884
(c) uses the machinery, equipment, normal operating repair or replacement parts, or
885
materials in the operation of the establishment;
886
(89) amounts paid or charged for an item exempt under Section 59-12-104.10;
887
(90) sales of a note, leaf, foil, or film, if the item:
888
(a) is used as currency;
889
(b) does not constitute legal tender of a state, the United States, or a foreign nation; and
890
(c) has a gold, silver, or platinum metallic content of 50% or more, exclusive of any
891
transparent polymer holder, coating, or encasement;
892
(91) amounts paid or charged for admission to an indoor skydiving, rock climbing, or
893
surfing facility, if a trained instructor:
894
(a) is present with the participant, in person or by video, for the duration of the activity;
895
and
896
(b) actively instructs the participant, including providing observation or feedback;
897
(92) amounts paid or charged in connection with the construction, operation, maintenance,
898
repair, or replacement of facilities owned by or constructed for:
899
(a) a distribution electrical cooperative, as defined in Section 54-2-1; or
900
(b) a wholesale electrical cooperative, as defined in Section 54-2-1;
901
(93) amounts paid by the service provider for tangible personal property, other than
902
machinery, equipment, parts, office supplies, electricity, gas, heat, steam, or other fuels,
903
that:
904
(a) is consumed in the performance of a service that is subject to tax under Subsection
905
59-12-103(1)(b), (f), (g), (h), (i), or (j);
906
(b) has to be consumed for the service provider to provide the service described in
907
Subsection (93)(a); and
908
(c) will be consumed in the performance of the service described in Subsection (93)(a),
909
to one or more customers, to the point that the tangible personal property disappears
910
or cannot be used for any other purpose;
911
(94) sales of rail rolling stock manufactured in Utah;
912
(95) amounts paid or charged for sales of sand, gravel, rock aggregate, cement products, or
913
construction materials between establishments, as the commission defines that term in
914
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if:
- 27 - H.B. 176 01-10 15:32
915
(a) the establishments are related directly or indirectly through 100% common
916
ownership or control; and
917
(b) each establishment is described in one of the following subsectors of the 2022 North
918
American Industry Classification System of the federal Executive Office of the
919
President, Office of Management and Budget:
920
(i) NAICS Subsector 237, Heavy and Civil Engineering Construction; or
921
(ii) NAICS Subsector 327, Nonmetallic Mineral Product Manufacturing;
922
(96) sales of construction materials used for the construction of a qualified stadium, as
923
defined in Section 11-70-101; and
924
(97) amounts paid or charged for sales of a cannabinoid product as that term is defined in
925
Section 4-41-102.
926
Section 4. Section 63N-4-801 is amended to read:
927
63N-4-801 . Definitions.
928
As used in this part:
929
(1) "Advisory committee" means the Rural Opportunity Advisory Committee created in
930
Section 63N-4-804.
931
(2) "Association of governments" means an association of political subdivisions of the
932
state, established pursuant to an interlocal agreement under Title 11, Chapter 13,
933
Interlocal Cooperation Act.
934
(3)(a) "Business entity" means a sole proprietorship, partnership, association, joint
935
venture, corporation, firm, trust, foundation, or other organization or entity used in
936
carrying on a business.
937
(b) "Business entity" does not include a business primarily engaged in the following:
938
(i) construction;
939
(ii) staffing;
940
(iii) retail trade; or
941
(iv) public utility activities.
942
(4) "CEO board" means a County Economic Opportunity Advisory Board as described in
943
Section 63N-4-803.
944
(5) "Fund" means the Rural Opportunity Fund created in Section 63N-4-805.
945
(6) "Qualified asset" means a physical asset that provides or supports an essential public
946
service.
947
(7) " Qualified project" means a project to build or improve one or more qualified assets for
948
a rural community, including:
- 28 - 01-10 15:32 H.B. 176
949
(a) telecom and high-speed Internet infrastructure;
950
(b) power and energy infrastructure;
951
(c) water and sewerage infrastructure;
952
(d) healthcare infrastructure; or
953
(e) other infrastructure as defined by rule made by the office in accordance with Title
954
63G, Chapter 3, Utah Administrative Rulemaking Act.
955
(8) "Rural community" means a rural county or rural municipality.
956
(9) "Rural county" means:
957
(a) a county of the [third,] fourth, fifth, or sixth class[.] ; or
958
(b) a county of the third class, if the county of the third class has no municipality with a
959
population of 100,000 or more.
960
(10) "Rural health care special district" means a special service district created to provide
961
health care under Subsection 17D-1-201(6) that is located in a rural county or rural
962
municipality.
963
(11) "Rural municipality" means a city or town located within the boundaries of:
964
(a) a county of the [third,] fourth, fifth, or sixth class; or
965
(b) a county of the second or third class, if the municipality has a population of 10,000
966
or less.
967
(12) "Rural Opportunity Program" or "program" means the Rural Opportunity Program
968
created in Section 63N-4-802.
969
Section 5. Section 72-2-133 is amended to read:
970
72-2-133 . Rural Transportation Infrastructure Fund -- Creation -- Uses.
971
(1) As used in this section:
972
(a) "Graveled road" means the same as that term is defined in Section 72-2-108.
973
(b) "Paved road" means the same as that term is defined in Section 72-2-108.
974
(c)(i) "Qualifying county" means a county that:
975
[(i)] (A) is a county of the third through sixth class, except as provided in
976
Subsection (1)(c)(ii);
977
[(ii)] (B) has imposed a local option sales and use tax pursuant to:
978
[(A)] (I) Section 59-12-2217;
979
[(B)] (II) Section 59-12-2218; or
980
[(C)] (III) Section 59-12-2219; and
981
[(iii)] (C) has not imposed a local option sales and use tax pursuant to Section
982
59-12-2220 on or before January 1, 2023.
- 29 - H.B. 176 01-10 15:32
983
(ii) "Qualifying county" does not include a county of the third class with an airport
984
facilitating commercial flights to three or more airports outside of the state.
985
(d) "Qualifying municipality" means a municipality located within a qualifying county.
986
(e) "Qualifying recipient" means qualifying county or a qualifying municipality.
987
(f) "Road mile" means the same as that term is defined in Section 72-2-108.
988
(g) "Weighted mileage" means the same as that term is defined in Section 72-2-108.
989
(2) There is created in the Transportation Fund an expendable special revenue fund called
990
the Rural Transportation Infrastructure Fund.
991
(3) The Rural Transportation Infrastructure Fund shall be funded by:
992
(a) deposits into the fund as described in Subsection 41-1a-1201(10);
993
(b) appropriations by the Legislature; and
994
(c) other deposits into the fund.
995
(4) The department shall administer the fund.
996
(5) Beginning on January 1, 2024, the department shall annually distribute revenue in the
997
fund among qualifying recipients in the following manner:
998
(a) 50% in the ratio that the class B roads weighted mileage within each county and class
999
C roads weighted mileage within each municipality bear to the total class B and class
1000
C roads weighted mileage within the state; and
1001
(b) 50% in the ratio that the population of a county or municipality bears to the total
1002
population of the state as of the last official federal census or the United States
1003
Census Bureau estimate, whichever is most recent, except that if population estimates
1004
are not available from the United States Census Bureau, population figures shall be
1005
derived from the estimate from the Utah Population Committee.
1006
(6) A qualifying recipient may only use funds distributed as described in this section in the
1007
same manner as class B and class C road funds distributed in accordance with Section
1008
72-2-108.
1009
(7)(a) Before November 1 of each year, the State Tax Commission shall notify the
1010
department and indicate which counties are qualifying counties.
1011
(b) After receiving the notification described in Subsection (7)(a), the department shall
1012
distribute funds for the following year to the municipalities and counties that were
1013
identified as qualifying recipients in the notification described in Subsection (7)(a).
1014
Section 6. Effective Date.
1015
This bill takes effect on May 7, 2025.
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