Utah House Bill HB0176 Substitute / Bill

                    01-27 15:29	1st Sub. (Buff) H.B. 176
Walt Brooks proposes the following substitute bill:
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County Classification Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Walt Brooks
Senate Sponsor: Don L. Ipson
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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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This bill provides a special effective date.
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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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78B-22-102, as last amended by Laws of Utah 2024, Chapter 193
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78B-22-406, as last amended by Laws of Utah 2022, Chapter 281
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78B-22-452, as last amended by Laws of Utah 2024, Chapter 193
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78B-22-903, as last amended by Laws of Utah 2023, Chapter 229
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78B-22-904, as last amended by Laws of Utah 2022, Chapter 295
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1st Sub. H.B. 176 1st Sub. (Buff) H.B. 176	01-27 15:29
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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] 1,150,000 or more is a county of the
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first class.
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(b) A county with a population of [175,000] 260,000 or more but less than [1,000,000] 
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1,150,000 is a county of the second class.
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(c) A county with a population of 40,000 or more but less than [175,000] 260,000 is a
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county of the third class.
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(d) A county with a population of [11,000] 12,000 or more but less than 40,000 is a
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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] 12,000 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, as classified in Section 17-50-501; or
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(ii) a county of the third class, as classified in Section 17-50-501, if the municipality
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has a population of 100,000 or 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
151 
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
329 
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
333 
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
337 
(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 product
339 
transferred electronically if the tangible personal property or product
340 
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
342 
considered to be used in an activity other than farming includes:
343 
(I) office equipment and supplies; or
344 
(II) equipment and supplies used in:
345 
(Aa) the sale or distribution of farm products;
346 
(Bb) research; or
347 
(Cc) transportation; or
348 
(iii) a vehicle required to be registered by the laws of this state during the period
349 
ending two years after the date of the vehicle's purchase;
350 
(19) sales of hay;
351 
(20) exclusive sale during the harvest season of seasonal crops, seedling plants, or garden,
352 
farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
353 
garden, farm, or other agricultural produce is sold by:
354 
(a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
355 
agricultural produce;
356 
(b) an employee of the producer described in Subsection (20)(a); or
357 
(c) a member of the immediate family of the producer described in Subsection (20)(a);
358 
(21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued under
359 
the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
360 
(22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
361 
nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
362 
wholesaler, or retailer for use in packaging tangible personal property to be sold by that
363 
manufacturer, processor, wholesaler, or retailer;
364 
(23) a product stored in the state for resale;
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(24)(a) purchases of a product if:
366 
(i) the product is:
367 
(A) purchased outside of this state;
368 
(B) brought into this state:
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(I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
370 
(II) by a nonresident person who is not living or working in this state at the
371 
time of the purchase;
372 
(C) used for the personal use or enjoyment of the nonresident person described in
373 
Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state;
374 
and
375 
(D) not used in conducting business in this state; and
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(ii) for:
377 
(A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use
378 
of the product for a purpose for which the product is designed occurs outside of
379 
this state;
380 
(B) a boat, the boat is registered outside of this state; or
381 
(C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
382 
registered outside of this state;
383 
(b) the exemption provided for in Subsection (24)(a) does not apply to:
384 
(i) a lease or rental of a product; or
385 
(ii) a sale of a vehicle exempt under Subsection (33); and
386 
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
387 
purposes of Subsection (24)(a), the commission may by rule define what constitutes
388 
the following:
389 
(i) conducting business in this state if that phrase has the same meaning in this
390 
Subsection (24) as in Subsection (63);
391 
(ii) the first use of a product if that phrase has the same meaning in this Subsection
392 
(24) as in Subsection (63); or
393 
(iii) a purpose for which a product is designed if that phrase has the same meaning in
394 
this Subsection (24) as in Subsection (63);
395 
(25) a product purchased for resale in the regular course of business, either in its original
396 
form or as an ingredient or component part of a manufactured or compounded product;
397 
(26) a product upon which a sales or use tax was paid to some other state, or one of its
398 
subdivisions, except that the state shall be paid any difference between the tax paid and
399 
the tax imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment
400 
is allowed if the tax paid was greater than the tax imposed by this part and Part 2, Local
401 
Sales and Use Tax Act;
402 
(27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a person
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403 
for use in compounding a service taxable under the subsections;
404 
(28) purchases made in accordance with the special supplemental nutrition program for
405 
women, infants, and children established in 42 U.S.C. Sec. 1786;
406 
(29) sales or leases of rolls, rollers, refractory brick, electric motors, or other replacement
407 
parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code 3312 of
408 
the 1987 Standard Industrial Classification Manual of the federal Executive Office of the
409 
President, Office of Management and Budget;
410 
(30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
411 
Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard
412 
motor is:
413 
(a) not registered in this state; and
414 
(b)(i) not used in this state; or
415 
(ii) used in this state:
416 
(A) if the boat, boat trailer, or outboard motor is not used to conduct business, for
417 
a time period that does not exceed the longer of:
418 
(I) 30 days in any calendar year; or
419 
(II) the time period necessary to transport the boat, boat trailer, or outboard
420 
motor to the borders of this state; or
421 
(B) if the boat, boat trailer, or outboard motor is used to conduct business, for the
422 
time period necessary to transport the boat, boat trailer, or outboard motor to
423 
the borders of this state;
424 
(31) sales of aircraft manufactured in Utah;
425 
(32) amounts paid for the purchase of telecommunications service for purposes of
426 
providing telecommunications service;
427 
(33) sales, leases, or uses of the following:
428 
(a) a vehicle by an authorized carrier; or
429 
(b) tangible personal property that is installed on a vehicle:
430 
(i) sold or leased to or used by an authorized carrier; and
431 
(ii) before the vehicle is placed in service for the first time;
432 
(34)(a) 45% of the sales price of any new manufactured home; and
433 
(b) 100% of the sales price of any used manufactured home;
434 
(35) sales relating to schools and fundraising sales;
435 
(36) sales or rentals of durable medical equipment if:
436 
(a) a person presents a prescription for the durable medical equipment; and
- 13 - 1st Sub. (Buff) H.B. 176	01-27 15:29
437 
(b) the durable medical equipment is used for home use only;
438 
(37)(a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
439 
Section 72-11-102; and
440 
(b) the commission shall by rule determine the method for calculating sales exempt
441 
under Subsection (37)(a) that are not separately metered and accounted for in utility
442 
billings;
443 
(38) sales to a ski resort of:
444 
(a) snowmaking equipment;
445 
(b) ski slope grooming equipment;
446 
(c) passenger ropeways as defined in Section 72-11-102; or
447 
(d) parts used in the repairs or renovations of equipment or passenger ropeways
448 
described in Subsections (38)(a) through (c);
449 
(39) subject to Subsection 59-12-103(2)(j), sales of natural gas, electricity, heat, coal, fuel
450 
oil, or other fuels for industrial use;
451 
(40)(a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
452 
amusement, entertainment, or recreation an unassisted amusement device as defined
453 
in Section 59-12-102;
454 
(b) if a seller that sells or rents at the same business location the right to use or operate
455 
for amusement, entertainment, or recreation one or more unassisted amusement
456 
devices and one or more assisted amusement devices, the exemption described in
457 
Subsection (40)(a) applies if the seller separately accounts for the sales or rentals of
458 
the right to use or operate for amusement, entertainment, or recreation for the assisted
459 
amusement devices; and
460 
(c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3, Utah
461 
Administrative Rulemaking Act, the commission may make rules:
462 
(i) governing the circumstances under which sales are at the same business location;
463 
and
464 
(ii) establishing the procedures and requirements for a seller to separately account for
465 
the sales or rentals of the right to use or operate for amusement, entertainment, or
466 
recreation for assisted amusement devices;
467 
(41)(a) sales of photocopies by:
468 
(i) a governmental entity; or
469 
(ii) an entity within the state system of public education, including:
470 
(A) a school; or
- 14 - 01-27 15:29	1st Sub. (Buff) H.B. 176
471 
(B) the State Board of Education; or
472 
(b) sales of publications by a governmental entity;
473 
(42) amounts paid for admission to an athletic event at an institution of higher education
474 
that is subject to the provisions of Title IX of the Education Amendments of 1972, 20
475 
U.S.C. Sec. 1681 et seq.;
476 
(43)(a) sales made to or by:
477 
(i) an area agency on aging; or
478 
(ii) a senior citizen center owned by a county, city, or town; or
479 
(b) sales made by a senior citizen center that contracts with an area agency on aging;
480 
(44) sales or leases of semiconductor fabricating, processing, research, or development
481 
materials regardless of whether the semiconductor fabricating, processing, research, or
482 
development materials:
483 
(a) actually come into contact with a semiconductor; or
484 
(b) ultimately become incorporated into real property;
485 
(45) an amount paid by or charged to a purchaser for accommodations and services
486 
described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under
487 
Section 59-12-104.2;
488 
(46) the lease or use of a vehicle issued a temporary sports event registration certificate in
489 
accordance with Section 41-3-306 for the event period specified on the temporary sports
490 
event registration certificate;
491 
(47)(a) sales or uses of electricity, if the sales or uses are made under a retail tariff
492 
adopted by the Public Service Commission only for purchase of electricity produced
493 
from a new alternative energy source built after January 1, 2016, as designated in the
494 
tariff by the Public Service Commission; and
495 
(b) for a residential use customer only, the exemption under Subsection (47)(a) applies
496 
only to the portion of the tariff rate a customer pays under the tariff described in
497 
Subsection (47)(a) that exceeds the tariff rate under the tariff described in Subsection
498 
(47)(a) that the customer would have paid absent the tariff;
499 
(48) sales or rentals of mobility enhancing equipment if a person presents a prescription for
500 
the mobility enhancing equipment;
501 
(49) sales of water in a:
502 
(a) pipe;
503 
(b) conduit;
504 
(c) ditch; or
- 15 - 1st Sub. (Buff) H.B. 176	01-27 15:29
505 
(d) reservoir;
506 
(50) sales of currency or coins that constitute legal tender of a state, the United States, or a
507 
foreign nation;
508 
(51)(a) sales of an item described in Subsection (51)(b) if the item:
509 
(i) does not constitute legal tender of a state, the United States, or a foreign nation;
510 
and
511 
(ii) has a gold, silver, or platinum content of 50% or more; and
512 
(b) Subsection (51)(a) applies to a gold, silver, or platinum:
513 
(i) ingot;
514 
(ii) bar;
515 
(iii) medallion; or
516 
(iv) decorative coin;
517 
(52) amounts paid on a sale-leaseback transaction;
518 
(53) sales of a prosthetic device:
519 
(a) for use on or in a human; and
520 
(b)(i) for which a prescription is required; or
521 
(ii) if the prosthetic device is purchased by a hospital or other medical facility;
522 
(54)(a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
523 
machinery or equipment by an establishment described in Subsection (54)(c) if the
524 
machinery or equipment is primarily used in the production or postproduction of the
525 
following media for commercial distribution:
526 
(i) a motion picture;
527 
(ii) a television program;
528 
(iii) a movie made for television;
529 
(iv) a music video;
530 
(v) a commercial;
531 
(vi) a documentary; or
532 
(vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
533 
commission by administrative rule made in accordance with Subsection (54)(d); or
534 
(b) purchases, leases, or rentals of machinery or equipment by an establishment
535 
described in Subsection (54)(c) that is used for the production or postproduction of
536 
the following are subject to the taxes imposed by this chapter:
537 
(i) a live musical performance;
538 
(ii) a live news program; or
- 16 - 01-27 15:29	1st Sub. (Buff) H.B. 176
539 
(iii) a live sporting event;
540 
(c) the following establishments listed in the 1997 North American Industry
541 
Classification System of the federal Executive Office of the President, Office of
542 
Management and Budget, apply to Subsections (54)(a) and (b):
543 
(i) NAICS Code 512110; or
544 
(ii) NAICS Code 51219; and
545 
(d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
546 
commission may by rule:
547 
(i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
548 
or
549 
(ii) define:
550 
(A) "commercial distribution";
551 
(B) "live musical performance";
552 
(C) "live news program"; or
553 
(D) "live sporting event";
554 
(55)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
555 
or before June 30, 2027, of tangible personal property that:
556 
(i) is leased or purchased for or by a facility that:
557 
(A) is an alternative energy electricity production facility;
558 
(B) is located in the state; and
559 
(C)(I) becomes operational on or after July 1, 2004; or
560 
(II) has its generation capacity increased by one or more megawatts on or after
561 
July 1, 2004, as a result of the use of the tangible personal property;
562 
(ii) has an economic life of five or more years; and
563 
(iii) is used to make the facility or the increase in capacity of the facility described in
564 
Subsection (55)(a)(i) operational up to the point of interconnection with an
565 
existing transmission grid including:
566 
(A) a wind turbine;
567 
(B) generating equipment;
568 
(C) a control and monitoring system;
569 
(D) a power line;
570 
(E) substation equipment;
571 
(F) lighting;
572 
(G) fencing;
- 17 - 1st Sub. (Buff) H.B. 176	01-27 15:29
573 
(H) pipes; or
574 
(I) other equipment used for locating a power line or pole; and
575 
(b) this Subsection (55) does not apply to:
576 
(i) tangible personal property used in construction of:
577 
(A) a new alternative energy electricity production facility; or
578 
(B) the increase in the capacity of an alternative energy electricity production
579 
facility;
580 
(ii) contracted services required for construction and routine maintenance activities;
581 
and
582 
(iii) unless the tangible personal property is used or acquired for an increase in
583 
capacity of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal
584 
property used or acquired after:
585 
(A) the alternative energy electricity production facility described in Subsection
586 
(55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
587 
(B) the increased capacity described in Subsection (55)(a)(i) is operational as
588 
described in Subsection (55)(a)(iii);
589 
(56)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
590 
or before June 30, 2027, of tangible personal property that:
591 
(i) is leased or purchased for or by a facility that:
592 
(A) is a waste energy production facility;
593 
(B) is located in the state; and
594 
(C)(I) becomes operational on or after July 1, 2004; or
595 
(II) has its generation capacity increased by one or more megawatts on or after
596 
July 1, 2004, as a result of the use of the tangible personal property;
597 
(ii) has an economic life of five or more years; and
598 
(iii) is used to make the facility or the increase in capacity of the facility described in
599 
Subsection (56)(a)(i) operational up to the point of interconnection with an
600 
existing transmission grid including:
601 
(A) generating equipment;
602 
(B) a control and monitoring system;
603 
(C) a power line;
604 
(D) substation equipment;
605 
(E) lighting;
606 
(F) fencing;
- 18 - 01-27 15:29	1st Sub. (Buff) H.B. 176
607 
(G) pipes; or
608 
(H) other equipment used for locating a power line or pole; and
609 
(b) this Subsection (56) does not apply to:
610 
(i) tangible personal property used in construction of:
611 
(A) a new waste energy facility; or
612 
(B) the increase in the capacity of a waste energy facility;
613 
(ii) contracted services required for construction and routine maintenance activities;
614 
and
615 
(iii) unless the tangible personal property is used or acquired for an increase in
616 
capacity described in Subsection (56)(a)(i)(C)(II), tangible personal property used
617 
or acquired after:
618 
(A) the waste energy facility described in Subsection (56)(a)(i) is operational as
619 
described in Subsection (56)(a)(iii); or
620 
(B) the increased capacity described in Subsection (56)(a)(i) is operational as
621 
described in Subsection (56)(a)(iii);
622 
(57)(a) leases of five or more years or purchases made on or after July 1, 2004, but on or
623 
before June 30, 2027, of tangible personal property that:
624 
(i) is leased or purchased for or by a facility that:
625 
(A) is located in the state;
626 
(B) produces fuel from alternative energy, including:
627 
(I) methanol; or
628 
(II) ethanol; and
629 
(C)(I) becomes operational on or after July 1, 2004; or
630 
(II) has its capacity to produce fuel increase by 25% or more on or after July 1,
631 
2004, as a result of the installation of the tangible personal property;
632 
(ii) has an economic life of five or more years; and
633 
(iii) is installed on the facility described in Subsection (57)(a)(i);
634 
(b) this Subsection (57) does not apply to:
635 
(i) tangible personal property used in construction of:
636 
(A) a new facility described in Subsection (57)(a)(i); or
637 
(B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
638 
(ii) contracted services required for construction and routine maintenance activities;
639 
and
640 
(iii) unless the tangible personal property is used or acquired for an increase in
- 19 - 1st Sub. (Buff) H.B. 176	01-27 15:29
641 
capacity described in Subsection (57)(a)(i)(C)(II), tangible personal property used
642 
or acquired after:
643 
(A) the facility described in Subsection (57)(a)(i) is operational; or
644 
(B) the increased capacity described in Subsection (57)(a)(i) is operational;
645 
(58)(a) subject to Subsection (58)(b), sales of tangible personal property or a product
646 
transferred electronically to a person within this state if that tangible personal
647 
property or product transferred electronically is subsequently shipped outside the
648 
state and incorporated pursuant to contract into and becomes a part of real property
649 
located outside of this state; and
650 
(b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
651 
state or political entity to which the tangible personal property is shipped imposes a
652 
sales, use, gross receipts, or other similar transaction excise tax on the transaction
653 
against which the other state or political entity allows a credit for sales and use taxes
654 
imposed by this chapter;
655 
(59) purchases:
656 
(a) of one or more of the following items in printed or electronic format:
657 
(i) a list containing information that includes one or more:
658 
(A) names; or
659 
(B) addresses; or
660 
(ii) a database containing information that includes one or more:
661 
(A) names; or
662 
(B) addresses; and
663 
(b) used to send direct mail;
664 
(60) redemptions or repurchases of a product by a person if that product was:
665 
(a) delivered to a pawnbroker as part of a pawn transaction; and
666 
(b) redeemed or repurchased within the time period established in a written agreement
667 
between the person and the pawnbroker for redeeming or repurchasing the product;
668 
(61)(a) purchases or leases of an item described in Subsection (61)(b) if the item:
669 
(i) is purchased or leased by, or on behalf of, a telecommunications service provider;
670 
and
671 
(ii) has a useful economic life of one or more years; and
672 
(b) the following apply to Subsection (61)(a):
673 
(i) telecommunications enabling or facilitating equipment, machinery, or software;
674 
(ii) telecommunications equipment, machinery, or software required for 911 service;
- 20 - 01-27 15:29	1st Sub. (Buff) H.B. 176
675 
(iii) telecommunications maintenance or repair equipment, machinery, or software;
676 
(iv) telecommunications switching or routing equipment, machinery, or software; or
677 
(v) telecommunications transmission equipment, machinery, or software;
678 
(62)(a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
679 
personal property or a product transferred electronically that are used in the research
680 
and development of alternative energy technology; and
681 
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
682 
commission may, for purposes of Subsection (62)(a), make rules defining what
683 
constitutes purchases of tangible personal property or a product transferred
684 
electronically that are used in the research and development of alternative energy
685 
technology;
686 
(63)(a) purchases of tangible personal property or a product transferred electronically if:
687 
(i) the tangible personal property or product transferred electronically is:
688 
(A) purchased outside of this state;
689 
(B) brought into this state at any time after the purchase described in Subsection
690 
(63)(a)(i)(A); and
691 
(C) used in conducting business in this state; and
692 
(ii) for:
693 
(A) tangible personal property or a product transferred electronically other than
694 
the tangible personal property described in Subsection (63)(a)(ii)(B), the first
695 
use of the property for a purpose for which the property is designed occurs
696 
outside of this state; or
697 
(B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
698 
registered outside of this state and not required to be registered in this state
699 
under Section 41-1a-202 or 73-18-9 based on residency;
700 
(b) the exemption provided for in Subsection (63)(a) does not apply to:
701 
(i) a lease or rental of tangible personal property or a product transferred
702 
electronically; or
703 
(ii) a sale of a vehicle exempt under Subsection (33); and
704 
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
705 
purposes of Subsection (63)(a), the commission may by rule define what constitutes
706 
the following:
707 
(i) conducting business in this state if that phrase has the same meaning in this
708 
Subsection (63) as in Subsection (24);
- 21 - 1st Sub. (Buff) H.B. 176	01-27 15:29
709 
(ii) the first use of tangible personal property or a product transferred electronically if
710 
that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
711 
(iii) a purpose for which tangible personal property or a product transferred
712 
electronically is designed if that phrase has the same meaning in this Subsection
713 
(63) as in Subsection (24);
714 
(64) sales of disposable home medical equipment or supplies if:
715 
(a) a person presents a prescription for the disposable home medical equipment or
716 
supplies;
717 
(b) the disposable home medical equipment or supplies are used exclusively by the
718 
person to whom the prescription described in Subsection (64)(a) is issued; and
719 
(c) the disposable home medical equipment and supplies are listed as eligible for
720 
payment under:
721 
(i) Title XVIII, federal Social Security Act; or
722 
(ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
723 
(65) sales:
724 
(a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit District
725 
Act; or
726 
(b) of tangible personal property to a subcontractor of a public transit district, if the
727 
tangible personal property is:
728 
(i) clearly identified; and
729 
(ii) installed or converted to real property owned by the public transit district;
730 
(66) sales of construction materials:
731 
(a) purchased on or after July 1, 2010;
732 
(b) purchased by, on behalf of, or for the benefit of an international airport:
733 
(i) located within a county of the first class; and
734 
(ii) that has a United States customs office on its premises; and
735 
(c) if the construction materials are:
736 
(i) clearly identified;
737 
(ii) segregated; and
738 
(iii) installed or converted to real property:
739 
(A) owned or operated by the international airport described in Subsection
740 
(66)(b); and
741 
(B) located at the international airport described in Subsection (66)(b);
742 
(67) sales of construction materials:
- 22 - 01-27 15:29	1st Sub. (Buff) H.B. 176
743 
(a) purchased on or after July 1, 2008;
744 
(b) purchased by, on behalf of, or for the benefit of a new airport:
745 
(i) located within a county of the second or third class, as classified in Section
746 
17-50-501; and
747 
(ii) that is owned or operated by a city in which an airline as defined in Section
748 
59-2-102 is headquartered; and
749 
(c) if the construction materials are:
750 
(i) clearly identified;
751 
(ii) segregated; and
752 
(iii) installed or converted to real property:
753 
(A) owned or operated by the new airport described in Subsection (67)(b);
754 
(B) located at the new airport described in Subsection (67)(b); and
755 
(C) as part of the construction of the new airport described in Subsection (67)(b);
756 
(68) except for the tax imposed by Subsection 59-12-103(2)(d), sales of fuel to a common
757 
carrier that is a railroad for use in a locomotive engine;
758 
(69) purchases and sales described in Section 63H-4-111;
759 
(70)(a) sales of tangible personal property to an aircraft maintenance, repair, and
760 
overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in
761 
this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
762 
aircraft's registration lists a state or country other than this state as the location of
763 
registry of the fixed wing turbine powered aircraft; or
764 
(b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
765 
provider in connection with the maintenance, repair, overhaul, or refurbishment in
766 
this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
767 
aircraft's registration lists a state or country other than this state as the location of
768 
registry of the fixed wing turbine powered aircraft;
769 
(71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
770 
(a) to a person admitted to an institution of higher education; and
771 
(b) by a seller, other than a bookstore owned by an institution of higher education, if
772 
51% or more of that seller's sales revenue for the previous calendar quarter are sales
773 
of a textbook for a higher education course;
774 
(72) a license fee or tax a municipality imposes in accordance with Subsection 10-1-203(5)
775 
on a purchaser from a business for which the municipality provides an enhanced level of
776 
municipal services;
- 23 - 1st Sub. (Buff) H.B. 176	01-27 15:29
777 
(73) amounts paid or charged for construction materials used in the construction of a new or
778 
expanding life science research and development facility in the state, if the construction
779 
materials are:
780 
(a) clearly identified;
781 
(b) segregated; and
782 
(c) installed or converted to real property;
783 
(74) amounts paid or charged for:
784 
(a) a purchase or lease of machinery and equipment that:
785 
(i) are used in performing qualified research:
786 
(A) as defined in Section 41(d), Internal Revenue Code; and
787 
(B) in the state; and
788 
(ii) have an economic life of three or more years; and
789 
(b) normal operating repair or replacement parts:
790 
(i) for the machinery and equipment described in Subsection (74)(a); and
791 
(ii) that have an economic life of three or more years;
792 
(75) a sale or lease of tangible personal property used in the preparation of prepared food if:
793 
(a) for a sale:
794 
(i) the ownership of the seller and the ownership of the purchaser are identical; and
795 
(ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
796 
tangible personal property prior to making the sale; or
797 
(b) for a lease:
798 
(i) the ownership of the lessor and the ownership of the lessee are identical; and
799 
(ii) the lessor or the lessee paid a tax under this chapter on the purchase of that
800 
tangible personal property prior to making the lease;
801 
(76)(a) purchases of machinery or equipment if:
802 
(i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
803 
Gambling, and Recreation Industries, of the 2012 North American Industry
804 
Classification System of the federal Executive Office of the President, Office of
805 
Management and Budget;
806 
(ii) the machinery or equipment:
807 
(A) has an economic life of three or more years; and
808 
(B) is used by one or more persons who pay admission or user fees described in
809 
Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment;
810 
and
- 24 - 01-27 15:29	1st Sub. (Buff) H.B. 176
811 
(iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
812 
(A) amounts paid or charged as admission or user fees described in Subsection
813 
59-12-103(1)(f); and
814 
(B) subject to taxation under this chapter; and
815 
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
816 
commission may make rules for verifying that 51% of a purchaser's sales revenue for
817 
the previous calendar quarter is:
818 
(i) amounts paid or charged as admission or user fees described in Subsection
819 
59-12-103(1)(f); and
820 
(ii) subject to taxation under this chapter;
821 
(77) purchases of a short-term lodging consumable by a business that provides
822 
accommodations and services described in Subsection 59-12-103(1)(i);
823 
(78) amounts paid or charged to access a database:
824 
(a) if the primary purpose for accessing the database is to view or retrieve information
825 
from the database; and
826 
(b) not including amounts paid or charged for a:
827 
(i) digital audio work;
828 
(ii) digital audio-visual work; or
829 
(iii) digital book;
830 
(79) amounts paid or charged for a purchase or lease made by an electronic financial
831 
payment service, of:
832 
(a) machinery and equipment that:
833 
(i) are used in the operation of the electronic financial payment service; and
834 
(ii) have an economic life of three or more years; and
835 
(b) normal operating repair or replacement parts that:
836 
(i) are used in the operation of the electronic financial payment service; and
837 
(ii) have an economic life of three or more years;
838 
(80) sales of a fuel cell as defined in Section 54-15-102;
839 
(81) amounts paid or charged for a purchase or lease of tangible personal property or a
840 
product transferred electronically if the tangible personal property or product transferred
841 
electronically:
842 
(a) is stored, used, or consumed in the state; and
843 
(b) is temporarily brought into the state from another state:
844 
(i) during a disaster period as defined in Section 53-2a-1202;
- 25 - 1st Sub. (Buff) H.B. 176	01-27 15:29
845 
(ii) by an out-of-state business as defined in Section 53-2a-1202;
846 
(iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
847 
(iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
848 
(82) sales of goods and services at a morale, welfare, and recreation facility, as defined in
849 
Section 39A-7-102, made pursuant to Title 39A, Chapter 7, Morale, Welfare, and
850 
Recreation Program;
851 
(83) amounts paid or charged for a purchase or lease of molten magnesium;
852 
(84) amounts paid or charged for a purchase or lease made by a qualifying data center or an
853 
occupant of a qualifying data center of machinery, equipment, or normal operating
854 
repair or replacement parts, if the machinery, equipment, or normal operating repair or
855 
replacement parts:
856 
(a) are used in:
857 
(i) the operation of the qualifying data center; or
858 
(ii) the occupant's operations in the qualifying data center; and
859 
(b) have an economic life of one or more years;
860 
(85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a vehicle
861 
that includes cleaning or washing of the interior of the vehicle;
862 
(86) amounts paid or charged for a purchase or lease of machinery, equipment, normal
863 
operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or
864 
supplies used or consumed:
865 
(a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
866 
in Section 79-6-701 located in the state;
867 
(b) if the machinery, equipment, normal operating repair or replacement parts, catalysts,
868 
chemicals, reagents, solutions, or supplies are used or consumed in:
869 
(i) the production process to produce gasoline or diesel fuel, or at which blendstock is
870 
added to gasoline or diesel fuel;
871 
(ii) research and development;
872 
(iii) transporting, storing, or managing raw materials, work in process, finished
873 
products, and waste materials produced from refining gasoline or diesel fuel, or
874 
adding blendstock to gasoline or diesel fuel;
875 
(iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
876 
refining; or
877 
(v) preventing, controlling, or reducing pollutants from refining; and
878 
(c) if the person holds a valid refiner tax exemption certification as defined in Section
- 26 - 01-27 15:29	1st Sub. (Buff) H.B. 176
879 
79-6-701;
880 
(87) amounts paid to or charged by a proprietor for accommodations and services, as
881 
defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations
882 
tax imposed under Section 63H-1-205;
883 
(88) amounts paid or charged for a purchase or lease of machinery, equipment, normal
884 
operating repair or replacement parts, or materials, except for office equipment or office
885 
supplies, by an establishment, as the commission defines that term in accordance with
886 
Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
887 
(a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
888 
American Industry Classification System of the federal Executive Office of the
889 
President, Office of Management and Budget;
890 
(b) is located in this state; and
891 
(c) uses the machinery, equipment, normal operating repair or replacement parts, or
892 
materials in the operation of the establishment;
893 
(89) amounts paid or charged for an item exempt under Section 59-12-104.10;
894 
(90) sales of a note, leaf, foil, or film, if the item:
895 
(a) is used as currency;
896 
(b) does not constitute legal tender of a state, the United States, or a foreign nation; and
897 
(c) has a gold, silver, or platinum metallic content of 50% or more, exclusive of any
898 
transparent polymer holder, coating, or encasement;
899 
(91) amounts paid or charged for admission to an indoor skydiving, rock climbing, or
900 
surfing facility, if a trained instructor:
901 
(a) is present with the participant, in person or by video, for the duration of the activity;
902 
and
903 
(b) actively instructs the participant, including providing observation or feedback;
904 
(92) amounts paid or charged in connection with the construction, operation, maintenance,
905 
repair, or replacement of facilities owned by or constructed for:
906 
(a) a distribution electrical cooperative, as defined in Section 54-2-1; or
907 
(b) a wholesale electrical cooperative, as defined in Section 54-2-1;
908 
(93) amounts paid by the service provider for tangible personal property, other than
909 
machinery, equipment, parts, office supplies, electricity, gas, heat, steam, or other fuels,
910 
that:
911 
(a) is consumed in the performance of a service that is subject to tax under Subsection
912 
59-12-103(1)(b), (f), (g), (h), (i), or (j);
- 27 - 1st Sub. (Buff) H.B. 176	01-27 15:29
913 
(b) has to be consumed for the service provider to provide the service described in
914 
Subsection (93)(a); and
915 
(c) will be consumed in the performance of the service described in Subsection (93)(a),
916 
to one or more customers, to the point that the tangible personal property disappears
917 
or cannot be used for any other purpose;
918 
(94) sales of rail rolling stock manufactured in Utah;
919 
(95) amounts paid or charged for sales of sand, gravel, rock aggregate, cement products, or
920 
construction materials between establishments, as the commission defines that term in
921 
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if:
922 
(a) the establishments are related directly or indirectly through 100% common
923 
ownership or control; and
924 
(b) each establishment is described in one of the following subsectors of the 2022 North
925 
American Industry Classification System of the federal Executive Office of the
926 
President, Office of Management and Budget:
927 
(i) NAICS Subsector 237, Heavy and Civil Engineering Construction; or
928 
(ii) NAICS Subsector 327, Nonmetallic Mineral Product Manufacturing;
929 
(96) sales of construction materials used for the construction of a qualified stadium, as
930 
defined in Section 11-70-101; and
931 
(97) amounts paid or charged for sales of a cannabinoid product as that term is defined in
932 
Section 4-41-102.
933 
Section 4.  Section 63N-4-801 is amended to read:
934 
63N-4-801 . Definitions.
935 
      As used in this part:
936 
(1) "Advisory committee" means the Rural Opportunity Advisory Committee created in
937 
Section 63N-4-804.
938 
(2) "Association of governments" means an association of political subdivisions of the
939 
state, established pursuant to an interlocal agreement under Title 11, Chapter 13,
940 
Interlocal Cooperation Act.
941 
(3)(a) "Business entity" means a sole proprietorship, partnership, association, joint
942 
venture, corporation, firm, trust, foundation, or other organization or entity used in
943 
carrying on a business.
944 
(b) "Business entity" does not include a business primarily engaged in the following:
945 
(i) construction;
946 
(ii) staffing;
- 28 - 01-27 15:29	1st Sub. (Buff) H.B. 176
947 
(iii) retail trade; or
948 
(iv) public utility activities.
949 
(4) "CEO board" means a County Economic Opportunity Advisory Board as described in
950 
Section 63N-4-803.
951 
(5) "Fund" means the Rural Opportunity Fund created in Section 63N-4-805.
952 
(6) "Qualified asset" means a physical asset that provides or supports an essential public
953 
service.
954 
(7) " Qualified project" means a project to build or improve one or more qualified assets for
955 
a rural community, including:
956 
(a) telecom and high-speed Internet infrastructure;
957 
(b) power and energy infrastructure;
958 
(c) water and sewerage infrastructure;
959 
(d) healthcare infrastructure; or
960 
(e) other infrastructure as defined by rule made by the office in accordance with Title
961 
63G, Chapter 3, Utah Administrative Rulemaking Act.
962 
(8) "Rural community" means a rural county or rural municipality.
963 
(9) "Rural county" means:
964 
(a) a county of the [third, ]fourth, fifth, or sixth class[.] , as classified in Section
965 
17-50-501; or
966 
(b) a county of the third class, as classified in Section 17-50-501, if the county of the
967 
third class has no municipality with a population of 100,000 or more.
968 
(10) "Rural health care special district" means a special service district created to provide
969 
health care under Subsection 17D-1-201(6) that is located in a rural county or rural
970 
municipality.
971 
(11) "Rural municipality" means a city or town located within the boundaries of:
972 
(a) a county of the [third, ]fourth, fifth, or sixth class, as classified in Section 17-50-501;
973 
or
974 
(b) a county of the second or third class, as classified in Section 17-50-501, if the
975 
municipality has a population of 10,000 or less.
976 
(12) "Rural Opportunity Program" or "program" means the Rural Opportunity Program
977 
created in Section 63N-4-802.
978 
Section 5.  Section 72-2-133 is amended to read:
979 
72-2-133 . Rural Transportation Infrastructure Fund -- Creation -- Uses.
980 
(1) As used in this section:
- 29 - 1st Sub. (Buff) H.B. 176	01-27 15:29
981 
(a) "Graveled road" means the same as that term is defined in Section 72-2-108.
982 
(b) "Paved road" means the same as that term is defined in Section 72-2-108.
983 
(c)(i) "Qualifying county" means a county that:
984 
[(i)] (A) is a county of the third through sixth class, as classified in Section
985 
17-50-501, except as provided in Subsection (1)(c)(ii);
986 
[(ii)] (B) has imposed a local option sales and use tax pursuant to:
987 
[(A)] (I) Section 59-12-2217;
988 
[(B)] (II) Section 59-12-2218; or
989 
[(C)] (III) Section 59-12-2219; and
990 
[(iii)] (C) has not imposed a local option sales and use tax pursuant to Section
991 
59-12-2220 on or before January 1, 2023.
992 
(ii) "Qualifying county" does not include a county of the third class, as classified in
993 
Section 17-50-501, with an airport facilitating commercial flights to three or more
994 
airports outside of the state.
995 
(d) "Qualifying municipality" means a municipality located within a qualifying county.
996 
(e) "Qualifying recipient" means qualifying county or a qualifying municipality.
997 
(f) "Road mile" means the same as that term is defined in Section 72-2-108.
998 
(g) "Weighted mileage" means the same as that term is defined in Section 72-2-108.
999 
(2) There is created in the Transportation Fund an expendable special revenue fund called
1000 
the Rural Transportation Infrastructure Fund.
1001 
(3) The Rural Transportation Infrastructure Fund shall be funded by:
1002 
(a) deposits into the fund as described in Subsection 41-1a-1201(10);
1003 
(b) appropriations by the Legislature; and
1004 
(c) other deposits into the fund.
1005 
(4) The department shall administer the fund.
1006 
(5) Beginning on January 1, 2024, the department shall annually distribute revenue in the
1007 
fund among qualifying recipients in the following manner:
1008 
(a) 50% in the ratio that the class B roads weighted mileage within each county and class
1009 
C roads weighted mileage within each municipality bear to the total class B and class
1010 
C roads weighted mileage within the state; and
1011 
(b) 50% in the ratio that the population of a county or municipality bears to the total
1012 
population of the state as of the last official federal census or the United States
1013 
Census Bureau estimate, whichever is most recent, except that if population estimates
1014 
are not available from the United States Census Bureau, population figures shall be
- 30 - 01-27 15:29	1st Sub. (Buff) H.B. 176
1015 
derived from the estimate from the Utah Population Committee.
1016 
(6) A qualifying recipient may only use funds distributed as described in this section in the
1017 
same manner as class B and class C road funds distributed in accordance with Section
1018 
72-2-108.
1019 
(7)(a)(i) Before October 1 of each year, the department shall inform the State Tax
1020 
Commission which counties, if any, have an airport described in Subsection
1021 
(1)(c)(ii).
1022 
(ii) Before November 1 of each year, the State Tax Commission shall notify the
1023 
department and indicate which counties are qualifying counties.
1024 
(b) After receiving the notification described in Subsection (7)(a)(ii), the department
1025 
shall distribute funds for the following year to the municipalities and counties that
1026 
were identified as qualifying recipients in the notification described in Subsection
1027 
(7)(a).
1028 
Section 6.  Section 78B-22-102 is amended to read:
1029 
78B-22-102 . Definitions.
1030 
      As used in this chapter:
1031 
(1) "Account" means the Indigent Defense Resources Restricted Account created in Section
1032 
78B-22-405.
1033 
(2) "Commission" means the Utah Indigent Defense Commission created in Section
1034 
78B-22-401.
1035 
(3) "Child welfare case" means a proceeding under Title 80, Chapter 3, Abuse, Neglect, and
1036 
Dependency Proceedings, or Title 80, Chapter 4, Termination and Restoration of
1037 
Parental Rights.
1038 
(4) "Eligible county" means:
1039 
(a) a county of the fourth, fifth, and sixth class, as classified in Section 17-50-501; and
1040 
(b) a county of the third class, as classified in Section 17-50-501, if the county of the
1041 
third class has no municipality with a population of 100,000 or more.
1042 
[(4)] (5) "Executive [Director] director" means the executive director of the Office of
1043 
Indigent Defense Services, created in Section 78B-22-451, who is appointed in
1044 
accordance with Section 78B-22-453.
1045 
[(5)] (6) "Indigent defense resources" means the resources necessary to provide an effective
1046 
defense for an indigent individual.
1047 
[(6)] (7) "Indigent defense service provider" means an attorney or entity appointed to
1048 
represent an indigent individual through:
- 31 - 1st Sub. (Buff) H.B. 176	01-27 15:29
1049 
(a) a contract with an indigent defense system to provide indigent defense services;
1050 
(b) an order issued by the court under Subsection 78B-22-203(2)(a); or
1051 
(c) direct employment with an indigent defense system.
1052 
[(7)] (8) "Indigent defense services" means:
1053 
(a) the representation of an indigent individual by an indigent defense service provider;
1054 
and
1055 
(b) the provision of indigent defense resources for an indigent individual.
1056 
[(8)] (9) "Indigent defense system" means:
1057 
(a) a city or town that is responsible for providing indigent defense services;
1058 
(b) a county that is responsible for providing indigent defense services in the district
1059 
court, juvenile court, and the county's justice courts; or
1060 
(c) an interlocal entity, created pursuant to Title 11, Chapter 13, Interlocal Cooperation
1061 
Act, that is responsible for providing indigent defense services according to the terms
1062 
of an agreement between a county, city, or town.
1063 
[(9)] (10) "Indigent individual" means:
1064 
(a) a minor who is:
1065 
(i) arrested and admitted into detention for an offense under Section 78A-6-103;
1066 
(ii) charged by petition or information in the juvenile or district court; or
1067 
(iii) described in this Subsection [(9)(a)] (10)(a), who is appealing an adjudication or
1068 
other final court action; and
1069 
(b) an individual listed in Subsection 78B-22-201(1) who is found indigent pursuant to
1070 
Section 78B-22-202.
1071 
[(10)] (11) "Minor" means the same as that term is defined in Section 80-1-102.
1072 
[(11)] (12) "Office" means the Office of Indigent Defense Services created in Section
1073 
78B-22-451.
1074 
[(12)] (13) "Participating county" means a county that complies with this chapter for
1075 
participation in the Indigent Aggravated Murder Defense Fund as provided in Sections
1076 
78B-22-702 and 78B-22-703.
1077 
Section 7.  Section 78B-22-406 is amended to read:
1078 
78B-22-406 . Indigent defense services grant program.
1079 
(1) The commission may award grants:
1080 
(a) to supplement local spending by an indigent defense system for indigent defense
1081 
services; and
1082 
(b) for contracts to provide indigent defense services for appeals from juvenile court
- 32 - 01-27 15:29	1st Sub. (Buff) H.B. 176
1083 
proceedings in [a county of the third, fourth, fifth, or sixth class] an eligible county.
1084 
(2) The commission may use grant money:
1085 
(a) to assist an indigent defense system to provide indigent defense services that meet
1086 
the commission's core principles for the effective representation of indigent
1087 
individuals;
1088 
(b) to establish and maintain local indigent defense data collection systems;
1089 
(c) to provide indigent defense services in addition to indigent defense services that are
1090 
currently being provided by an indigent defense system;
1091 
(d) to provide training and continuing legal education for indigent defense service
1092 
providers;
1093 
(e) to assist indigent defense systems with appeals from juvenile court proceedings;
1094 
(f) to pay for indigent defense resources and costs and expenses for parental
1095 
representation attorneys as described in Subsection 78B-22-804(2); and
1096 
(g) to reimburse an indigent defense system for the cost of providing indigent defense
1097 
services in an action initiated by a private party under Title 80, Chapter 4,
1098 
Termination and Restoration of Parental Rights, if the indigent defense system has
1099 
complied with the commission's policies and procedures for reimbursement.
1100 
(3) To receive a grant from the commission, an indigent defense system shall demonstrate
1101 
to the commission's satisfaction that:
1102 
(a) the indigent defense system has incurred or reasonably anticipates incurring expenses
1103 
for indigent defense services that are in addition to the indigent defense system's
1104 
average annual spending on indigent defense services in the three fiscal years
1105 
immediately preceding the grant application; and
1106 
(b)(i) a grant from the commission is necessary for the indigent defense system to
1107 
meet the commission's core principles for the effective representation of indigent
1108 
individuals; or
1109 
(ii) the indigent defense system shall use the grant in an innovative manner that meets
1110 
the commission's core principles for the effective representation of indigent
1111 
individuals.
1112 
(4) The commission may revoke a grant if an indigent defense system fails to meet
1113 
requirements of the grant or any of the commission's core principles for the effective
1114 
representation of indigent individuals.
1115 
Section 8.  Section 78B-22-452 is amended to read:
1116 
78B-22-452 . Duties of the office.
- 33 - 1st Sub. (Buff) H.B. 176	01-27 15:29
1117 
(1) The office shall:
1118 
(a) establish an annual budget for the office for the Indigent Defense Resources
1119 
Restricted Account created in Section 78B-22-405;
1120 
(b) assist the commission in performing the commission's statutory duties described in
1121 
this chapter;
1122 
(c) identify and collect data that is necessary for the commission to:
1123 
(i) aid, oversee, and review compliance by indigent defense systems with the
1124 
commission's core principles for the effective representation of indigent
1125 
individuals; and
1126 
(ii) provide reports regarding the operation of the commission and the provision of
1127 
indigent defense services by indigent defense systems in the state;
1128 
(d) assist indigent defense systems by reviewing contracts and other agreements, to
1129 
ensure compliance with the commission's core principles for effective representation
1130 
of indigent individuals;
1131 
(e) establish procedures for the receipt and acceptance of complaints regarding the
1132 
provision of indigent defense services in the state;
1133 
(f) establish procedures to award grants to indigent defense systems under Section
1134 
78B-22-406 that are consistent with the commission's core principles;
1135 
(g) create and enter into contracts consistent with Section 78B-22-454 to provide
1136 
indigent defense services for an indigent defense inmate who:
1137 
(i) is incarcerated in a state prison located in [a county of the third, fourth, fifth, or
1138 
sixth class as classified in Section 17-50-501] an eligible county;
1139 
(ii) is charged with having committed a crime within that state prison; and
1140 
(iii) has been appointed counsel in accordance with Section 78B-22-203;
1141 
(h) assist the commission in developing and reviewing advisory caseload guidelines and
1142 
procedures;
1143 
(i) investigate, audit, and review the provision of indigent defense services to ensure
1144 
compliance with the commission's core principles for the effective representation of
1145 
indigent individuals;
1146 
(j) administer the Child Welfare Parental Representation Program in accordance with
1147 
Part 8, Child Welfare Parental Representation Program;
1148 
(k) administer the Indigent Aggravated Murder Defense Fund in accordance with Part 7,
1149 
Indigent Aggravated Murder Defense Fund;
1150 
(l) assign an indigent defense service provider to represent an individual prosecuted for
- 34 - 01-27 15:29	1st Sub. (Buff) H.B. 176
1151 
aggravated murder in accordance with Part 7, Indigent Aggravated Murder Defense
1152 
Fund;
1153 
(m) annually report to the governor, Legislature, Judiciary Interim Committee, and
1154 
Judicial Council, regarding:
1155 
(i) the operations of the commission;
1156 
(ii) the operations of the indigent defense systems in the state; and
1157 
(iii) compliance with the commission's core principles by indigent defense systems
1158 
receiving grants from the commission;
1159 
(n) submit recommendations to the commission for improving indigent defense services
1160 
in the state;
1161 
(o) publish an annual report on the commission's website; and
1162 
(p) perform all other duties assigned by the commission related to indigent defense
1163 
services.
1164 
(2) The office may enter into contracts and accept, allocate, and administer funds and grants
1165 
from any public or private person to accomplish the duties of the office.
1166 
(3) Any contract entered into under this part shall require that indigent defense services are
1167 
provided in a manner consistent with the commission's core principles implemented
1168 
under Section 78B-22-404.
1169 
Section 9.  Section 78B-22-903 is amended to read:
1170 
78B-22-903 . Powers and duties of the division.
1171 
(1) The division shall:
1172 
(a) provide appellate defense services:
1173 
(i) for an appeal under Section 77-18a-1, in [counties of the third, fourth, fifth, and
1174 
sixth class] eligible counties;
1175 
(ii) for an action or an appeal for postconviction relief under Chapter 9,
1176 
Postconviction Remedies Act, if the court appoints the division to represent the
1177 
indigent individual; and
1178 
(iii) for an appeal of right from an action for the termination or restoration of parental
1179 
rights under Chapter 6, Part 1, Utah Adoption Act, Title 80, Chapter 3, Abuse,
1180 
Neglect, and Dependency Proceedings, or Title 80, Chapter 4, Termination and
1181 
Restoration of Parental Rights; and
1182 
(b) provide appellate defense services in accordance with the core principles adopted by
1183 
the commission under Section 78B-22-404 and any other state and federal standards
1184 
for appellate defense services.
- 35 - 1st Sub. (Buff) H.B. 176	01-27 15:29
1185 
(2) Upon consultation with the executive director and the commission, the division shall:
1186 
(a) adopt a budget for the division;
1187 
(b) adopt and publish on the commission's website:
1188 
(i) appellate performance standards;
1189 
(ii) case weighting standards; and
1190 
(iii) any other relevant measures or information to assist with appellate defense
1191 
services; and
1192 
(c) if requested by the commission, provide a report to the commission on:
1193 
(i) the provision of appellate defense services by the division;
1194 
(ii) the caseloads of appellate attorneys; and
1195 
(iii) any other information relevant to appellate defense services in the state.
1196 
(3) If the division provides appellate defense services to an indigent individual in an
1197 
indigent defense system, the division shall provide notice to the district court and the
1198 
indigent defense system that the division intends to be appointed as counsel for the
1199 
indigent individual.
1200 
(4) The office shall assist with providing training and continual legal education on appellate
1201 
defense to indigent defense service providers in [counties of the third, fourth, fifth, and
1202 
sixth class] eligible counties.
1203 
Section 10.  Section 78B-22-904 is amended to read:
1204 
78B-22-904 . Chief appellate officer -- Qualifications -- Staff -- Duties.
1205 
(1)(a) After consulting with the commission, the executive director shall appoint a chief
1206 
appellate officer.
1207 
(b) When appointing the chief appellate officer, the executive director shall give
1208 
preference to an individual with experience in adult criminal appellate defense
1209 
representation.
1210 
(2) The chief appellate officer shall be an active member of the Utah State Bar with an
1211 
appropriate background and experience to serve as the chief appellate officer.
1212 
(3) The chief appellate officer shall carry out the duties of the division described in Section
1213 
78B-22-903.
1214 
(4) The chief appellate officer shall:
1215 
(a) provide appellate defense services in [a county of the third, fourth, fifth, or sixth class] 
1216 
an eligible county;
1217 
(b) hire staff as necessary to carry out the duties of the division described in Section
1218 
78B-22-903; and
- 36 - 01-27 15:29	1st Sub. (Buff) H.B. 176
1219 
(c) perform all other duties that are necessary for the division to carry out the division's
1220 
statutory duties.
1221 
(5) The chief appellate officer may provide appellate defense services in an action or an
1222 
appeal for postconviction relief under [Title 78B, Chapter 9, Postconviction Remedies
1223 
Act] Chapter 9, Postconviction Remedies Act, if the court appoints the division to
1224 
represent the indigent individual.
1225 
Section 11.  Effective Date.
1226 
This bill takes effect on July 1, 2025.
- 37 -