Utah 2025 Regular Session

Utah House Bill HB0489 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	02-12 12:41 H.B. 489
2	2	1
3	3	Eyewear Sales Tax Amendments
4	4	2025 GENERAL SESSION
5	5	STATE OF UTAH
6	6	Chief Sponsor: A. Cory Maloy
7	7	Senate Sponsor:
8	8	2
9	9
10	10	3
11	11	LONG TITLE
12	12	4
13	13	General Description:
14	14	5
15	15	This bill amends provisions related to the sales and use tax on corrective eyeglasses and
16	16	6
17	17	contact lenses.
18	18	7
19	19	Highlighted Provisions:
20	20	8
21	21	This bill:
22	22	9
23	23	▸ amends definitions to include corrective eyeglasses and contact lenses within the
24	24	10
25	25	definition of "prosthetic device," which has the effect of exempting these items from
26	26	11
27	27	sales and use tax.
28	28	12
29	29	Money Appropriated in this Bill:
30	30	13
31	31	None
32	32	14
33	33	Other Special Clauses:
34	34	15
35	35	This bill provides a special effective date.
36	36	16
37	37	Utah Code Sections Affected:
38	38	17
39	39	AMENDS:
40	40	18
41	41	59-12-102, as last amended by Laws of Utah 2024, Chapter 274
42	42	19
43	43
44	44	20
45	45	Be it enacted by the Legislature of the state of Utah:
46	46	21
47	47	Section 1. Section 59-12-102 is amended to read:
48	48	22
49	49	59-12-102 . Definitions.
50	50	23
51	51	As used in this chapter:
52	52	24
53	53	(1) "800 service" means a telecommunications service that:
54	54	25
55	55	(a) allows a caller to dial a toll-free number without incurring a charge for the call; and
56	56	26
57	57	(b) is typically marketed:
58	58	27
59	59	(i) under the name 800 toll-free calling;
60	60	28
61	61	(ii) under the name 855 toll-free calling;
62	62	29
63	63	(iii) under the name 866 toll-free calling;
64	64	30
65	65	(iv) under the name 877 toll-free calling;
66	66	H.B. 489 H.B. 489 02-12 12:41
67	67	31
68	68	(v) under the name 888 toll-free calling; or
69	69	32
70	70	(vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
71	71	33
72	72	Federal Communications Commission.
73	73	34
74	74	(2)(a) "900 service" means an inbound toll telecommunications service that:
75	75	35
76	76	(i) a subscriber purchases;
77	77	36
78	78	(ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
79	79	37
80	80	the subscriber's:
81	81	38
82	82	(A) prerecorded announcement; or
83	83	39
84	84	(B) live service; and
85	85	40
86	86	(iii) is typically marketed:
87	87	41
88	88	(A) under the name 900 service; or
89	89	42
90	90	(B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
91	91	43
92	92	Communications Commission.
93	93	44
94	94	(b) "900 service" does not include a charge for:
95	95	45
96	96	(i) a collection service a seller of a telecommunications service provides to a
97	97	46
98	98	subscriber; or
99	99	47
100	100	(ii) the following a subscriber sells to the subscriber's customer:
101	101	48
102	102	(A) a product; or
103	103	49
104	104	(B) a service.
105	105	50
106	106	(3)(a) "Admission or user fees" includes season passes.
107	107	51
108	108	(b) "Admission or user fees" does not include:
109	109	52
110	110	(i) annual membership dues to private organizations; or
111	111	53
112	112	(ii) a lesson, including a lesson that involves as part of the lesson equipment or a
113	113	54
114	114	facility listed in Subsection 59-12-103(1)(f).
115	115	55
116	116	(4) "Affiliate" or "affiliated person" means a person that, with respect to another person:
117	117	56
118	118	(a) has an ownership interest of more than 5%, whether direct or indirect, in that other
119	119	57
120	120	person; or
121	121	58
122	122	(b) is related to the other person because a third person, or a group of third persons who
123	123	59
124	124	are affiliated persons with respect to each other, holds an ownership interest of more
125	125	60
126	126	than 5%, whether direct or indirect, in the related persons.
127	127	61
128	128	(5) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
129	129	62
130	130	November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
131	131	63
132	132	Agreement after November 12, 2002.
133	133	64
134	134	(6) "Agreement combined tax rate" means the sum of the tax rates:
135	135	- 2 - 02-12 12:41 H.B. 489
136	136	65
137	137	(a) listed under Subsection (7); and
138	138	66
139	139	(b) that are imposed within a local taxing jurisdiction.
140	140	67
141	141	(7) "Agreement sales and use tax" means a tax imposed under:
142	142	68
143	143	(a) Subsection 59-12-103(2)(a)(i)(A);
144	144	69
145	145	(b) Subsection 59-12-103(2)(b)(i);
146	146	70
147	147	(c) Subsection 59-12-103(2)(c)(i);
148	148	71
149	149	(d) Subsection 59-12-103(2)(d);
150	150	72
151	151	(e) Subsection 59-12-103(2)(e)(i)(A)(I);
152	152	73
153	153	(f) Section 59-12-204;
154	154	74
155	155	(g) Section 59-12-401;
156	156	75
157	157	(h) Section 59-12-402;
158	158	76
159	159	(i) Section 59-12-402.1;
160	160	77
161	161	(j) Section 59-12-703;
162	162	78
163	163	(k) Section 59-12-802;
164	164	79
165	165	(l) Section 59-12-804;
166	166	80
167	167	(m) Section 59-12-1102;
168	168	81
169	169	(n) Section 59-12-1302;
170	170	82
171	171	(o) Section 59-12-1402;
172	172	83
173	173	(p) Section 59-12-1802;
174	174	84
175	175	(q) Section 59-12-2003;
176	176	85
177	177	(r) Section 59-12-2103;
178	178	86
179	179	(s) Section 59-12-2213;
180	180	87
181	181	(t) Section 59-12-2214;
182	182	88
183	183	(u) Section 59-12-2215;
184	184	89
185	185	(v) Section 59-12-2216;
186	186	90
187	187	(w) Section 59-12-2217;
188	188	91
189	189	(x) Section 59-12-2218;
190	190	92
191	191	(y) Section 59-12-2219; or
192	192	93
193	193	(z) Section 59-12-2220.
194	194	94
195	195	(8) "Aircraft" means the same as that term is defined in Section 72-10-102.
196	196	95
197	197	(9) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
198	198	96
199	199	(a) except for:
200	200	97
201	201	(i) an airline as defined in Section 59-2-102; or
202	202	98
203	203	(ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
204	204	- 3 - H.B. 489 02-12 12:41
205	205	99
206	206	includes a corporation that is qualified to do business but is not otherwise doing
207	207	100
208	208	business in the state, of an airline; and
209	209	101
210	210	(b) that has the workers, expertise, and facilities to perform the following, regardless of
211	211	102
212	212	whether the business entity performs the following in this state:
213	213	103
214	214	(i) check, diagnose, overhaul, and repair:
215	215	104
216	216	(A) an onboard system of a fixed wing turbine powered aircraft; and
217	217	105
218	218	(B) the parts that comprise an onboard system of a fixed wing turbine powered
219	219	106
220	220	aircraft;
221	221	107
222	222	(ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered
223	223	108
224	224	aircraft engine;
225	225	109
226	226	(iii) perform at least the following maintenance on a fixed wing turbine powered
227	227	110
228	228	aircraft:
229	229	111
230	230	(A) an inspection;
231	231	112
232	232	(B) a repair, including a structural repair or modification;
233	233	113
234	234	(C) changing landing gear; and
235	235	114
236	236	(D) addressing issues related to an aging fixed wing turbine powered aircraft;
237	237	115
238	238	(iv) completely remove the existing paint of a fixed wing turbine powered aircraft
239	239	116
240	240	and completely apply new paint to the fixed wing turbine powered aircraft; and
241	241	117
242	242	(v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
243	243	118
244	244	results in a change in the fixed wing turbine powered aircraft's certification
245	245	119
246	246	requirements by the authority that certifies the fixed wing turbine powered aircraft.
247	247	120
248	248	(10) "Alcoholic beverage" means a beverage that:
249	249	121
250	250	(a) is suitable for human consumption; and
251	251	122
252	252	(b) contains .5% or more alcohol by volume.
253	253	123
254	254	(11) "Alternative energy" means:
255	255	124
256	256	(a) biomass energy;
257	257	125
258	258	(b) geothermal energy;
259	259	126
260	260	(c) hydroelectric energy;
261	261	127
262	262	(d) solar energy;
263	263	128
264	264	(e) wind energy; or
265	265	129
266	266	(f) energy that is derived from:
267	267	130
268	268	(i) coal-to-liquids;
269	269	131
270	270	(ii) nuclear fuel;
271	271	132
272	272	(iii) oil-impregnated diatomaceous earth;
273	273	- 4 - 02-12 12:41 H.B. 489
274	274	133
275	275	(iv) oil sands;
276	276	134
277	277	(v) oil shale;
278	278	135
279	279	(vi) petroleum coke; or
280	280	136
281	281	(vii) waste heat from:
282	282	137
283	283	(A) an industrial facility; or
284	284	138
285	285	(B) a power station in which an electric generator is driven through a process in
286	286	139
287	287	which water is heated, turns into steam, and spins a steam turbine.
288	288	140
289	289	(12)(a) Subject to Subsection (12)(b), "alternative energy electricity production facility"
290	290	141
291	291	means a facility that:
292	292	142
293	293	(i) uses alternative energy to produce electricity; and
294	294	143
295	295	(ii) has a production capacity of two megawatts or greater.
296	296	144
297	297	(b) A facility is an alternative energy electricity production facility regardless of whether
298	298	145
299	299	the facility is:
300	300	146
301	301	(i) connected to an electric grid; or
302	302	147
303	303	(ii) located on the premises of an electricity consumer.
304	304	148
305	305	(13)(a) "Ancillary service" means a service associated with, or incidental to, the
306	306	149
307	307	provision of telecommunications service.
308	308	150
309	309	(b) "Ancillary service" includes:
310	310	151
311	311	(i) a conference bridging service;
312	312	152
313	313	(ii) a detailed communications billing service;
314	314	153
315	315	(iii) directory assistance;
316	316	154
317	317	(iv) a vertical service; or
318	318	155
319	319	(v) a voice mail service.
320	320	156
321	321	(14) "Area agency on aging" means the same as that term is defined in Section 26B-6-101.
322	322	157
323	323	(15) "Assisted amusement device" means an amusement device, skill device, or ride device
324	324	158
325	325	that is started and stopped by an individual:
326	326	159
327	327	(a) who is not the purchaser or renter of the right to use or operate the amusement
328	328	160
329	329	device, skill device, or ride device; and
330	330	161
331	331	(b) at the direction of the seller of the right to use the amusement device, skill device, or
332	332	162
333	333	ride device.
334	334	163
335	335	(16) "Assisted cleaning or washing of tangible personal property" means cleaning or
336	336	164
337	337	washing of tangible personal property if the cleaning or washing labor is primarily
338	338	165
339	339	performed by an individual:
340	340	166
341	341	(a) who is not the purchaser of the cleaning or washing of the tangible personal property;
342	342	- 5 - H.B. 489 02-12 12:41
343	343	167
344	344	and
345	345	168
346	346	(b) at the direction of the seller of the cleaning or washing of the tangible personal
347	347	169
348	348	property.
349	349	170
350	350	(17) "Authorized carrier" means:
351	351	171
352	352	(a) in the case of vehicles operated over public highways, the holder of credentials
353	353	172
354	354	indicating that the vehicle is or will be operated pursuant to both the International
355	355	173
356	356	Registration Plan and the International Fuel Tax Agreement;
357	357	174
358	358	(b) in the case of aircraft, the holder of a Federal Aviation Administration operating
359	359	175
360	360	certificate or air carrier's operating certificate; or
361	361	176
362	362	(c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
363	363	177
364	364	stock, a person who uses locomotives, freight cars, railroad work equipment, or other
365	365	178
366	366	rolling stock in more than one state.
367	367	179
368	368	(18)(a) "Biomass energy" means any of the following that is used as the primary source
369	369	180
370	370	of energy to produce fuel or electricity:
371	371	181
372	372	(i) material from a plant or tree; or
373	373	182
374	374	(ii) other organic matter that is available on a renewable basis, including:
375	375	183
376	376	(A) slash and brush from forests and woodlands;
377	377	184
378	378	(B) animal waste;
379	379	185
380	380	(C) waste vegetable oil;
381	381	186
382	382	(D) methane or synthetic gas produced at a landfill, as a byproduct of the
383	383	187
384	384	treatment of wastewater residuals, or through the conversion of a waste
385	385	188
386	386	material through a nonincineration, thermal conversion process;
387	387	189
388	388	(E) aquatic plants; and
389	389	190
390	390	(F) agricultural products.
391	391	191
392	392	(b) "Biomass energy" does not include:
393	393	192
394	394	(i) black liquor; or
395	395	193
396	396	(ii) treated woods.
397	397	194
398	398	(19)(a) "Bundled transaction" means the sale of two or more items of tangible personal
399	399	195
400	400	property, products, or services if the tangible personal property, products, or services
401	401	196
402	402	are:
403	403	197
404	404	(i) distinct and identifiable; and
405	405	198
406	406	(ii) sold for one nonitemized price.
407	407	199
408	408	(b) "Bundled transaction" does not include:
409	409	200
410	410	(i) the sale of tangible personal property if the sales price varies, or is negotiable, on
411	411	- 6 - 02-12 12:41 H.B. 489
412	412	201
413	413	the basis of the selection by the purchaser of the items of tangible personal
414	414	202
415	415	property included in the transaction;
416	416	203
417	417	(ii) the sale of real property;
418	418	204
419	419	(iii) the sale of services to real property;
420	420	205
421	421	(iv) the retail sale of tangible personal property and a service if:
422	422	206
423	423	(A) the tangible personal property:
424	424	207
425	425	(I) is essential to the use of the service; and
426	426	208
427	427	(II) is provided exclusively in connection with the service; and
428	428	209
429	429	(B) the service is the true object of the transaction;
430	430	210
431	431	(v) the retail sale of two services if:
432	432	211
433	433	(A) one service is provided that is essential to the use or receipt of a second
434	434	212
435	435	service;
436	436	213
437	437	(B) the first service is provided exclusively in connection with the second service;
438	438	214
439	439	and
440	440	215
441	441	(C) the second service is the true object of the transaction;
442	442	216
443	443	(vi) a transaction that includes tangible personal property or a product subject to
444	444	217
445	445	taxation under this chapter and tangible personal property or a product that is not
446	446	218
447	447	subject to taxation under this chapter if the:
448	448	219
449	449	(A) seller's purchase price of the tangible personal property or product subject to
450	450	220
451	451	taxation under this chapter is de minimis; or
452	452	221
453	453	(B) seller's sales price of the tangible personal property or product subject to
454	454	222
455	455	taxation under this chapter is de minimis; and
456	456	223
457	457	(vii) the retail sale of tangible personal property that is not subject to taxation under
458	458	224
459	459	this chapter and tangible personal property that is subject to taxation under this
460	460	225
461	461	chapter if:
462	462	226
463	463	(A) that retail sale includes:
464	464	227
465	465	(I) food and food ingredients;
466	466	228
467	467	(II) a drug;
468	468	229
469	469	(III) durable medical equipment;
470	470	230
471	471	(IV) mobility enhancing equipment;
472	472	231
473	473	(V) an over-the-counter drug;
474	474	232
475	475	(VI) a prosthetic device; or
476	476	233
477	477	(VII) a medical supply; and
478	478	234
479	479	(B) subject to Subsection (19)(f):
480	480	- 7 - H.B. 489 02-12 12:41
481	481	235
482	482	(I) the seller's purchase price of the tangible personal property subject to
483	483	236
484	484	taxation under this chapter is 50% or less of the seller's total purchase price
485	485	237
486	486	of that retail sale; or
487	487	238
488	488	(II) the seller's sales price of the tangible personal property subject to taxation
489	489	239
490	490	under this chapter is 50% or less of the seller's total sales price of that retail
491	491	240
492	492	sale.
493	493	241
494	494	(c)(i) For purposes of Subsection (19)(a)(i), tangible personal property, a product, or
495	495	242
496	496	a service that is distinct and identifiable does not include:
497	497	243
498	498	(A) packaging that:
499	499	244
500	500	(I) accompanies the sale of the tangible personal property, product, or service;
501	501	245
502	502	and
503	503	246
504	504	(II) is incidental or immaterial to the sale of the tangible personal property,
505	505	247
506	506	product, or service;
507	507	248
508	508	(B) tangible personal property, a product, or a service provided free of charge with
509	509	249
510	510	the purchase of another item of tangible personal property, a product, or a
511	511	250
512	512	service; or
513	513	251
514	514	(C) an item of tangible personal property, a product, or a service included in the
515	515	252
516	516	definition of "purchase price."
517	517	253
518	518	(ii) For purposes of Subsection (19)(c)(i)(B), an item of tangible personal property, a
519	519	254
520	520	product, or a service is provided free of charge with the purchase of another item
521	521	255
522	522	of tangible personal property, a product, or a service if the sales price of the
523	523	256
524	524	purchased item of tangible personal property, product, or service does not vary
525	525	257
526	526	depending on the inclusion of the tangible personal property, product, or service
527	527	258
528	528	provided free of charge.
529	529	259
530	530	(d)(i) For purposes of Subsection (19)(a)(ii), property sold for one nonitemized price
531	531	260
532	532	does not include a price that is separately identified by tangible personal property,
533	533	261
534	534	product, or service on the following, regardless of whether the following is in
535	535	262
536	536	paper format or electronic format:
537	537	263
538	538	(A) a binding sales document; or
539	539	264
540	540	(B) another supporting sales-related document that is available to a purchaser.
541	541	265
542	542	(ii) For purposes of Subsection (19)(d)(i), a binding sales document or another
543	543	266
544	544	supporting sales-related document that is available to a purchaser includes:
545	545	267
546	546	(A) a bill of sale;
547	547	268
548	548	(B) a contract;
549	549	- 8 - 02-12 12:41 H.B. 489
550	550	269
551	551	(C) an invoice;
552	552	270
553	553	(D) a lease agreement;
554	554	271
555	555	(E) a periodic notice of rates and services;
556	556	272
557	557	(F) a price list;
558	558	273
559	559	(G) a rate card;
560	560	274
561	561	(H) a receipt; or
562	562	275
563	563	(I) a service agreement.
564	564	276
565	565	(e)(i) For purposes of Subsection (19)(b)(vi), the sales price of tangible personal
566	566	277
567	567	property or a product subject to taxation under this chapter is de minimis if:
568	568	278
569	569	(A) the seller's purchase price of the tangible personal property or product is 10%
570	570	279
571	571	or less of the seller's total purchase price of the bundled transaction; or
572	572	280
573	573	(B) the seller's sales price of the tangible personal property or product is 10% or
574	574	281
575	575	less of the seller's total sales price of the bundled transaction.
576	576	282
577	577	(ii) For purposes of Subsection (19)(b)(vi), a seller:
578	578	283
579	579	(A) shall use the seller's purchase price or the seller's sales price to determine if
580	580	284
581	581	the purchase price or sales price of the tangible personal property or product
582	582	285
583	583	subject to taxation under this chapter is de minimis; and
584	584	286
585	585	(B) may not use a combination of the seller's purchase price and the seller's sales
586	586	287
587	587	price to determine if the purchase price or sales price of the tangible personal
588	588	288
589	589	property or product subject to taxation under this chapter is de minimis.
590	590	289
591	591	(iii) For purposes of Subsection (19)(b)(vi), a seller shall use the full term of a service
592	592	290
593	593	contract to determine if the sales price of tangible personal property or a product is
594	594	291
595	595	de minimis.
596	596	292
597	597	(f) For purposes of Subsection (19)(b)(vii)(B), a seller may not use a combination of the
598	598	293
599	599	seller's purchase price and the seller's sales price to determine if tangible personal
600	600	294
601	601	property subject to taxation under this chapter is 50% or less of the seller's total
602	602	295
603	603	purchase price or sales price of that retail sale.
604	604	296
605	605	(20) "Car sharing" means the same as that term is defined in Section 13-48a-101.
606	606	297
607	607	(21) "Car-sharing program" means the same as that term is defined in Section 13-48a-101.
608	608	298
609	609	(22) "Certified automated system" means software certified by the governing board of the
610	610	299
611	611	agreement that:
612	612	300
613	613	(a) calculates the agreement sales and use tax imposed within a local taxing jurisdiction:
614	614	301
615	615	(i) on a transaction; and
616	616	302
617	617	(ii) in the states that are members of the agreement;
618	618	- 9 - H.B. 489 02-12 12:41
619	619	303
620	620	(b) determines the amount of agreement sales and use tax to remit to a state that is a
621	621	304
622	622	member of the agreement; and
623	623	305
624	624	(c) maintains a record of the transaction described in Subsection (22)(a)(i).
625	625	306
626	626	(23) "Certified service provider" means an agent certified:
627	627	307
628	628	(a) by the governing board of the agreement; and
629	629	308
630	630	(b) to perform a seller's sales and use tax functions for an agreement sales and use tax, as
631	631	309
632	632	outlined in the contract between the governing board of the agreement and the
633	633	310
634	634	certified service provider, other than the seller's obligation under Section 59-12-124
635	635	311
636	636	to remit a tax on the seller's own purchases.
637	637	312
638	638	(24)(a) Subject to Subsection (24)(b), "clothing" means all human wearing apparel
639	639	313
640	640	suitable for general use.
641	641	314
642	642	(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
643	643	315
644	644	commission shall make rules:
645	645	316
646	646	(i) listing the items that constitute "clothing"; and
647	647	317
648	648	(ii) that are consistent with the list of items that constitute "clothing" under the
649	649	318
650	650	agreement.
651	651	319
652	652	(25) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
653	653	320
654	654	(26) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels
655	655	321
656	656	that does not constitute industrial use under Subsection (60) or residential use under
657	657	322
658	658	Subsection (115).
659	659	323
660	660	(27)(a) "Common carrier" means a person engaged in or transacting the business of
661	661	324
662	662	transporting passengers, freight, merchandise, or other property for hire within this
663	663	325
664	664	state.
665	665	326
666	666	(b)(i) "Common carrier" does not include a person that, at the time the person is
667	667	327
668	668	traveling to or from that person's place of employment, transports a passenger to
669	669	328
670	670	or from the passenger's place of employment.
671	671	329
672	672	(ii) For purposes of Subsection (27)(b)(i), in accordance with Title 63G, Chapter 3,
673	673	330
674	674	Utah Administrative Rulemaking Act, the commission may make rules defining
675	675	331
676	676	what constitutes a person's place of employment.
677	677	332
678	678	(c) "Common carrier" does not include a person that provides transportation network
679	679	333
680	680	services, as defined in Section 13-51-102.
681	681	334
682	682	(28) "Component part" includes:
683	683	335
684	684	(a) poultry, dairy, and other livestock feed, and their components;
685	685	336
686	686	(b) baling ties and twine used in the baling of hay and straw;
687	687	- 10 - 02-12 12:41 H.B. 489
688	688	337
689	689	(c) fuel used for providing temperature control of orchards and commercial greenhouses
690	690	338
691	691	doing a majority of their business in wholesale sales, and for providing power for
692	692	339
693	693	off-highway type farm machinery; and
694	694	340
695	695	(d) feed, seeds, and seedlings.
696	696	341
697	697	(29) "Computer" means an electronic device that accepts information:
698	698	342
699	699	(a)(i) in digital form; or
700	700	343
701	701	(ii) in a form similar to digital form; and
702	702	344
703	703	(b) manipulates that information for a result based on a sequence of instructions.
704	704	345
705	705	(30) "Computer software" means a set of coded instructions designed to cause:
706	706	346
707	707	(a) a computer to perform a task; or
708	708	347
709	709	(b) automatic data processing equipment to perform a task.
710	710	348
711	711	(31) "Computer software maintenance contract" means a contract that obligates a seller of
712	712	349
713	713	computer software to provide a customer with:
714	714	350
715	715	(a) future updates or upgrades to computer software;
716	716	351
717	717	(b) support services with respect to computer software; or
718	718	352
719	719	(c) a combination of Subsections (31)(a) and (b).
720	720	353
721	721	(32)(a) "Conference bridging service" means an ancillary service that links two or more
722	722	354
723	723	participants of an audio conference call or video conference call.
724	724	355
725	725	(b) "Conference bridging service" may include providing a telephone number as part of
726	726	356
727	727	the ancillary service described in Subsection (32)(a).
728	728	357
729	729	(c) "Conference bridging service" does not include a telecommunications service used to
730	730	358
731	731	reach the ancillary service described in Subsection (32)(a).
732	732	359
733	733	(33) "Construction materials" means any tangible personal property that will be converted
734	734	360
735	735	into real property.
736	736	361
737	737	(34) "Delivered electronically" means delivered to a purchaser by means other than tangible
738	738	362
739	739	storage media.
740	740	363
741	741	(35)(a) "Delivery charge" means a charge:
742	742	364
743	743	(i) by a seller of:
744	744	365
745	745	(A) tangible personal property;
746	746	366
747	747	(B) a product transferred electronically; or
748	748	367
749	749	(C) a service; and
750	750	368
751	751	(ii) for preparation and delivery of the tangible personal property, product transferred
752	752	369
753	753	electronically, or services described in Subsection (35)(a)(i) to a location
754	754	370
755	755	designated by the purchaser.
756	756	- 11 - H.B. 489 02-12 12:41
757	757	371
758	758	(b) "Delivery charge" includes a charge for the following:
759	759	372
760	760	(i) transportation;
761	761	373
762	762	(ii) shipping;
763	763	374
764	764	(iii) postage;
765	765	375
766	766	(iv) handling;
767	767	376
768	768	(v) crating; or
769	769	377
770	770	(vi) packing.
771	771	378
772	772	(36) "Detailed telecommunications billing service" means an ancillary service of separately
773	773	379
774	774	stating information pertaining to individual calls on a customer's billing statement.
775	775	380
776	776	(37) "Dietary supplement" means a product, other than tobacco, that:
777	777	381
778	778	(a) is intended to supplement the diet;
779	779	382
780	780	(b) contains one or more of the following dietary ingredients:
781	781	383
782	782	(i) a vitamin;
783	783	384
784	784	(ii) a mineral;
785	785	385
786	786	(iii) an herb or other botanical;
787	787	386
788	788	(iv) an amino acid;
789	789	387
790	790	(v) a dietary substance for use by humans to supplement the diet by increasing the
791	791	388
792	792	total dietary intake; or
793	793	389
794	794	(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
795	795	390
796	796	described in Subsections (37)(b)(i) through (v);
797	797	391
798	798	(c)(i) except as provided in Subsection (37)(c)(ii), is intended for ingestion in:
799	799	392
800	800	(A) tablet form;
801	801	393
802	802	(B) capsule form;
803	803	394
804	804	(C) powder form;
805	805	395
806	806	(D) softgel form;
807	807	396
808	808	(E) gelcap form; or
809	809	397
810	810	(F) liquid form; or
811	811	398
812	812	(ii) if the product is not intended for ingestion in a form described in Subsections
813	813	399
814	814	(37)(c)(i)(A) through (F), is not represented:
815	815	400
816	816	(A) as conventional food; and
817	817	401
818	818	(B) for use as a sole item of:
819	819	402
820	820	(I) a meal; or
821	821	403
822	822	(II) the diet; and
823	823	404
824	824	(d) is required to be labeled as a dietary supplement:
825	825	- 12 - 02-12 12:41 H.B. 489
826	826	405
827	827	(i) identifiable by the "Supplemental Facts" box found on the label; and
828	828	406
829	829	(ii) as required by 21 C.F.R. Sec. 101.36.
830	830	407
831	831	(38)(a) "Digital audio work" means a work that results from the fixation of a series of
832	832	408
833	833	musical, spoken, or other sounds.
834	834	409
835	835	(b) "Digital audio work" includes a ringtone.
836	836	410
837	837	(39) "Digital audio-visual work" means a series of related images which, when shown in
838	838	411
839	839	succession, imparts an impression of motion, together with accompanying sounds, if any.
840	840	412
841	841	(40) "Digital book" means a work that is generally recognized in the ordinary and usual
842	842	413
843	843	sense as a book.
844	844	414
845	845	(41)(a) "Direct mail" means printed material delivered or distributed by United States
846	846	415
847	847	mail or other delivery service:
848	848	416
849	849	(i) to:
850	850	417
851	851	(A) a mass audience; or
852	852	418
853	853	(B) addressees on a mailing list provided:
854	854	419
855	855	(I) by a purchaser of the mailing list; or
856	856	420
857	857	(II) at the discretion of the purchaser of the mailing list; and
858	858	421
859	859	(ii) if the cost of the printed material is not billed directly to the recipients.
860	860	422
861	861	(b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
862	862	423
863	863	purchaser to a seller of direct mail for inclusion in a package containing the printed
864	864	424
865	865	material.
866	866	425
867	867	(c) "Direct mail" does not include multiple items of printed material delivered to a single
868	868	426
869	869	address.
870	870	427
871	871	(42) "Directory assistance" means an ancillary service of providing:
872	872	428
873	873	(a) address information; or
874	874	429
875	875	(b) telephone number information.
876	876	430
877	877	(43)(a) "Disposable home medical equipment or supplies" means medical equipment or
878	878	431
879	879	supplies that:
880	880	432
881	881	(i) cannot withstand repeated use; and
882	882	433
883	883	(ii) are purchased by, for, or on behalf of a person other than:
884	884	434
885	885	(A) a health care facility as defined in Section 26B-2-201;
886	886	435
887	887	(B) a health care provider as defined in Section 78B-3-403;
888	888	436
889	889	(C) an office of a health care provider described in Subsection (43)(a)(ii)(B); or
890	890	437
891	891	(D) a person similar to a person described in Subsections (43)(a)(ii)(A) through
892	892	438
893	893	(C).
894	894	- 13 - H.B. 489 02-12 12:41
895	895	439
896	896	(b) "Disposable home medical equipment or supplies" does not include:
897	897	440
898	898	(i) a drug;
899	899	441
900	900	(ii) durable medical equipment;
901	901	442
902	902	(iii) a hearing aid;
903	903	443
904	904	(iv) a hearing aid accessory;
905	905	444
906	906	(v) mobility enhancing equipment; or
907	907	445
908	908	(vi) tangible personal property used to correct impaired vision, including:
909	909	446
910	910	(A) eyeglasses; or
911	911	447
912	912	(B) contact lenses.
913	913	448
914	914	(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
915	915	449
916	916	commission may by rule define what constitutes medical equipment or supplies.
917	917	450
918	918	(44) "Drilling equipment manufacturer" means a facility:
919	919	451
920	920	(a) located in the state;
921	921	452
922	922	(b) with respect to which 51% or more of the manufacturing activities of the facility
923	923	453
924	924	consist of manufacturing component parts of drilling equipment;
925	925	454
926	926	(c) that uses pressure of 800,000 or more pounds per square inch as part of the
927	927	455
928	928	manufacturing process; and
929	929	456
930	930	(d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
931	931	457
932	932	manufacturing process.
933	933	458
934	934	(45)(a) "Drug" means a compound, substance, or preparation, or a component of a
935	935	459
936	936	compound, substance, or preparation that is:
937	937	460
938	938	(i) recognized in:
939	939	461
940	940	(A) the official United States Pharmacopoeia;
941	941	462
942	942	(B) the official Homeopathic Pharmacopoeia of the United States;
943	943	463
944	944	(C) the official National Formulary; or
945	945	464
946	946	(D) a supplement to a publication listed in Subsections (45)(a)(i)(A) through (C);
947	947	465
948	948	(ii) intended for use in the:
949	949	466
950	950	(A) diagnosis of disease;
951	951	467
952	952	(B) cure of disease;
953	953	468
954	954	(C) mitigation of disease;
955	955	469
956	956	(D) treatment of disease; or
957	957	470
958	958	(E) prevention of disease; or
959	959	471
960	960	(iii) intended to affect:
961	961	472
962	962	(A) the structure of the body; or
963	963	- 14 - 02-12 12:41 H.B. 489
964	964	473
965	965	(B) any function of the body.
966	966	474
967	967	(b) "Drug" does not include:
968	968	475
969	969	(i) food and food ingredients;
970	970	476
971	971	(ii) a dietary supplement;
972	972	477
973	973	(iii) an alcoholic beverage; or
974	974	478
975	975	(iv) a prosthetic device.
976	976	479
977	977	(46)(a) "Durable medical equipment" means equipment that:
978	978	480
979	979	(i) can withstand repeated use;
980	980	481
981	981	(ii) is primarily and customarily used to serve a medical purpose;
982	982	482
983	983	(iii) generally is not useful to a person in the absence of illness or injury; and
984	984	483
985	985	(iv) is not worn in or on the body.
986	986	484
987	987	(b) "Durable medical equipment" includes parts used in the repair or replacement of the
988	988	485
989	989	equipment described in Subsection (46)(a).
990	990	486
991	991	(c) "Durable medical equipment" does not include mobility enhancing equipment.
992	992	487
993	993	(47) "Electronic" means:
994	994	488
995	995	(a) relating to technology; and
996	996	489
997	997	(b) having:
998	998	490
999	999	(i) electrical capabilities;
1000	1000	491
1001	1001	(ii) digital capabilities;
1002	1002	492
1003	1003	(iii) magnetic capabilities;
1004	1004	493
1005	1005	(iv) wireless capabilities;
1006	1006	494
1007	1007	(v) optical capabilities;
1008	1008	495
1009	1009	(vi) electromagnetic capabilities; or
1010	1010	496
1011	1011	(vii) capabilities similar to Subsections (47)(b)(i) through (vi).
1012	1012	497
1013	1013	(48) "Electronic financial payment service" means an establishment:
1014	1014	498
1015	1015	(a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
1016	1016	499
1017	1017	Clearinghouse Activities, of the 2012 North American Industry Classification System
1018	1018	500
1019	1019	of the federal Executive Office of the President, Office of Management and Budget;
1020	1020	501
1021	1021	and
1022	1022	502
1023	1023	(b) that performs electronic financial payment services.
1024	1024	503
1025	1025	(49) "Employee" means the same as that term is defined in Section 59-10-401.
1026	1026	504
1027	1027	(50) "Fixed guideway" means a public transit facility that uses and occupies:
1028	1028	505
1029	1029	(a) rail for the use of public transit; or
1030	1030	506
1031	1031	(b) a separate right-of-way for the use of public transit.
1032	1032	- 15 - H.B. 489 02-12 12:41
1033	1033	507
1034	1034	(51) "Fixed wing turbine powered aircraft" means an aircraft that:
1035	1035	508
1036	1036	(a) is powered by turbine engines;
1037	1037	509
1038	1038	(b) operates on jet fuel; and
1039	1039	510
1040	1040	(c) has wings that are permanently attached to the fuselage of the aircraft.
1041	1041	511
1042	1042	(52) "Fixed wireless service" means a telecommunications service that provides radio
1043	1043	512
1044	1044	communication between fixed points.
1045	1045	513
1046	1046	(53)(a) "Food and food ingredients" means substances:
1047	1047	514
1048	1048	(i) regardless of whether the substances are in:
1049	1049	515
1050	1050	(A) liquid form;
1051	1051	516
1052	1052	(B) concentrated form;
1053	1053	517
1054	1054	(C) solid form;
1055	1055	518
1056	1056	(D) frozen form;
1057	1057	519
1058	1058	(E) dried form; or
1059	1059	520
1060	1060	(F) dehydrated form; and
1061	1061	521
1062	1062	(ii) that are:
1063	1063	522
1064	1064	(A) sold for:
1065	1065	523
1066	1066	(I) ingestion by humans; or
1067	1067	524
1068	1068	(II) chewing by humans; and
1069	1069	525
1070	1070	(B) consumed for the substance's:
1071	1071	526
1072	1072	(I) taste; or
1073	1073	527
1074	1074	(II) nutritional value.
1075	1075	528
1076	1076	(b) "Food and food ingredients" includes an item described in Subsection (99)(b)(iii).
1077	1077	529
1078	1078	(c) "Food and food ingredients" does not include:
1079	1079	530
1080	1080	(i) an alcoholic beverage;
1081	1081	531
1082	1082	(ii) tobacco; or
1083	1083	532
1084	1084	(iii) prepared food.
1085	1085	533
1086	1086	(54)(a) "Fundraising sales" means sales:
1087	1087	534
1088	1088	(i)(A) made by a school; or
1089	1089	535
1090	1090	(B) made by a school student;
1091	1091	536
1092	1092	(ii) that are for the purpose of raising funds for the school to purchase equipment,
1093	1093	537
1094	1094	materials, or provide transportation; and
1095	1095	538
1096	1096	(iii) that are part of an officially sanctioned school activity.
1097	1097	539
1098	1098	(b) For purposes of Subsection (54)(a)(iii), "officially sanctioned school activity" means
1099	1099	540
1100	1100	a school activity:
1101	1101	- 16 - 02-12 12:41 H.B. 489
1102	1102	541
1103	1103	(i) that is conducted in accordance with a formal policy adopted by the school or
1104	1104	542
1105	1105	school district governing the authorization and supervision of fundraising
1106	1106	543
1107	1107	activities;
1108	1108	544
1109	1109	(ii) that does not directly or indirectly compensate an individual teacher or other
1110	1110	545
1111	1111	educational personnel by direct payment, commissions, or payment in kind; and
1112	1112	546
1113	1113	(iii) the net or gross revenue from which is deposited in a dedicated account
1114	1114	547
1115	1115	controlled by the school or school district.
1116	1116	548
1117	1117	(55) "Geothermal energy" means energy contained in heat that continuously flows outward
1118	1118	549
1119	1119	from the earth that is used as the sole source of energy to produce electricity.
1120	1120	550
1121	1121	(56) "Governing board of the agreement" means the governing board of the agreement that
1122	1122	551
1123	1123	is:
1124	1124	552
1125	1125	(a) authorized to administer the agreement; and
1126	1126	553
1127	1127	(b) established in accordance with the agreement.
1128	1128	554
1129	1129	(57)(a) For purposes of Subsection 59-12-104(41), "governmental entity" means:
1130	1130	555
1131	1131	(i) the executive branch of the state, including all departments, institutions, boards,
1132	1132	556
1133	1133	divisions, bureaus, offices, commissions, and committees;
1134	1134	557
1135	1135	(ii) the judicial branch of the state, including the courts, the Judicial Council, the
1136	1136	558
1137	1137	Administrative Office of the Courts, and similar administrative units in the
1138	1138	559
1139	1139	judicial branch;
1140	1140	560
1141	1141	(iii) the legislative branch of the state, including the House of Representatives, the
1142	1142	561
1143	1143	Senate, the Legislative Printing Office, the Office of Legislative Research and
1144	1144	562
1145	1145	General Counsel, the Office of the Legislative Auditor General, and the Office of
1146	1146	563
1147	1147	the Legislative Fiscal Analyst;
1148	1148	564
1149	1149	(iv) the National Guard;
1150	1150	565
1151	1151	(v) an independent entity as defined in Section 63E-1-102; or
1152	1152	566
1153	1153	(vi) a political subdivision as defined in Section 17B-1-102.
1154	1154	567
1155	1155	(b) "Governmental entity" does not include the state systems of public and higher
1156	1156	568
1157	1157	education, including:
1158	1158	569
1159	1159	(i) a school;
1160	1160	570
1161	1161	(ii) the State Board of Education;
1162	1162	571
1163	1163	(iii) the Utah Board of Higher Education; or
1164	1164	572
1165	1165	(iv) an institution of higher education described in Section 53B-1-102.
1166	1166	573
1167	1167	(58) "Hydroelectric energy" means water used as the sole source of energy to produce
1168	1168	574
1169	1169	electricity.
1170	1170	- 17 - H.B. 489 02-12 12:41
1171	1171	575
1172	1172	(59) "Individual-owned shared vehicle" means the same as that term is defined in Section
1173	1173	576
1174	1174	13-48a-101.
1175	1175	577
1176	1176	(60) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or other
1177	1177	578
1178	1178	fuels:
1179	1179	579
1180	1180	(a) in mining or extraction of minerals;
1181	1181	580
1182	1182	(b) in agricultural operations to produce an agricultural product up to the time of harvest
1183	1183	581
1184	1184	or placing the agricultural product into a storage facility, including:
1185	1185	582
1186	1186	(i) commercial greenhouses;
1187	1187	583
1188	1188	(ii) irrigation pumps;
1189	1189	584
1190	1190	(iii) farm machinery;
1191	1191	585
1192	1192	(iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
1193	1193	586
1194	1194	under Title 41, Chapter 1a, Part 2, Registration; and
1195	1195	587
1196	1196	(v) other farming activities;
1197	1197	588
1198	1198	(c) in manufacturing tangible personal property at an establishment described in:
1199	1199	589
1200	1200	(i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
1201	1201	590
1202	1202	the federal Executive Office of the President, Office of Management and Budget;
1203	1203	591
1204	1204	or
1205	1205	592
1206	1206	(ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
1207	1207	593
1208	1208	American Industry Classification System of the federal Executive Office of the
1209	1209	594
1210	1210	President, Office of Management and Budget;
1211	1211	595
1212	1212	(d) by a scrap recycler if:
1213	1213	596
1214	1214	(i) from a fixed location, the scrap recycler utilizes machinery or equipment to
1215	1215	597
1216	1216	process one or more of the following items into prepared grades of processed
1217	1217	598
1218	1218	materials for use in new products:
1219	1219	599
1220	1220	(A) iron;
1221	1221	600
1222	1222	(B) steel;
1223	1223	601
1224	1224	(C) nonferrous metal;
1225	1225	602
1226	1226	(D) paper;
1227	1227	603
1228	1228	(E) glass;
1229	1229	604
1230	1230	(F) plastic;
1231	1231	605
1232	1232	(G) textile; or
1233	1233	606
1234	1234	(H) rubber; and
1235	1235	607
1236	1236	(ii) the new products under Subsection (60)(d)(i) would otherwise be made with
1237	1237	608
1238	1238	nonrecycled materials; or
1239	1239	- 18 - 02-12 12:41 H.B. 489
1240	1240	609
1241	1241	(e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
1242	1242	610
1243	1243	cogeneration facility as defined in Section 54-2-1.
1244	1244	611
1245	1245	(61)(a) "Installation charge" means a charge for installing:
1246	1246	612
1247	1247	(i) tangible personal property; or
1248	1248	613
1249	1249	(ii) a product transferred electronically.
1250	1250	614
1251	1251	(b) "Installation charge" does not include a charge for:
1252	1252	615
1253	1253	(i) repairs or renovations of:
1254	1254	616
1255	1255	(A) tangible personal property; or
1256	1256	617
1257	1257	(B) a product transferred electronically; or
1258	1258	618
1259	1259	(ii) attaching tangible personal property or a product transferred electronically:
1260	1260	619
1261	1261	(A) to other tangible personal property; and
1262	1262	620
1263	1263	(B) as part of a manufacturing or fabrication process.
1264	1264	621
1265	1265	(62) "Institution of higher education" means an institution of higher education listed in
1266	1266	622
1267	1267	Section 53B-2-101.
1268	1268	623
1269	1269	(63)(a) "Lease" or "rental" means a transfer of possession or control of tangible personal
1270	1270	624
1271	1271	property or a product transferred electronically for:
1272	1272	625
1273	1273	(i)(A) a fixed term; or
1274	1274	626
1275	1275	(B) an indeterminate term; and
1276	1276	627
1277	1277	(ii) consideration.
1278	1278	628
1279	1279	(b) "Lease" or "rental" includes:
1280	1280	629
1281	1281	(i) an agreement covering a motor vehicle and trailer if the amount of consideration
1282	1282	630
1283	1283	may be increased or decreased by reference to the amount realized upon sale or
1284	1284	631
1285	1285	disposition of the property as defined in Section 7701(h)(1), Internal Revenue
1286	1286	632
1287	1287	Code; and
1288	1288	633
1289	1289	(ii) car sharing.
1290	1290	634
1291	1291	(c) "Lease" or "rental" does not include:
1292	1292	635
1293	1293	(i) a transfer of possession or control of property under a security agreement or
1294	1294	636
1295	1295	deferred payment plan that requires the transfer of title upon completion of the
1296	1296	637
1297	1297	required payments;
1298	1298	638
1299	1299	(ii) a transfer of possession or control of property under an agreement that requires
1300	1300	639
1301	1301	the transfer of title:
1302	1302	640
1303	1303	(A) upon completion of required payments; and
1304	1304	641
1305	1305	(B) if the payment of an option price does not exceed the greater of:
1306	1306	642
1307	1307	(I) $100; or
1308	1308	- 19 - H.B. 489 02-12 12:41
1309	1309	643
1310	1310	(II) 1% of the total required payments; or
1311	1311	644
1312	1312	(iii) providing tangible personal property along with an operator for a fixed period of
1313	1313	645
1314	1314	time or an indeterminate period of time if the operator is necessary for equipment
1315	1315	646
1316	1316	to perform as designed.
1317	1317	647
1318	1318	(d) For purposes of Subsection (63)(c)(iii), an operator is necessary for equipment to
1319	1319	648
1320	1320	perform as designed if the operator's duties exceed the:
1321	1321	649
1322	1322	(i) set-up of tangible personal property;
1323	1323	650
1324	1324	(ii) maintenance of tangible personal property; or
1325	1325	651
1326	1326	(iii) inspection of tangible personal property.
1327	1327	652
1328	1328	(64) "Lesson" means a fixed period of time for the duration of which a trained instructor:
1329	1329	653
1330	1330	(a) is present with a student in person or by video; and
1331	1331	654
1332	1332	(b) actively instructs the student, including by providing observation or feedback.
1333	1333	655
1334	1334	(65) "Life science establishment" means an establishment in this state that is classified
1335	1335	656
1336	1336	under the following NAICS codes of the 2007 North American Industry Classification
1337	1337	657
1338	1338	System of the federal Executive Office of the President, Office of Management and
1339	1339	658
1340	1340	Budget:
1341	1341	659
1342	1342	(a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
1343	1343	660
1344	1344	(b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
1345	1345	661
1346	1346	Manufacturing; or
1347	1347	662
1348	1348	(c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
1349	1349	663
1350	1350	(66) "Life science research and development facility" means a facility owned, leased, or
1351	1351	664
1352	1352	rented by a life science establishment if research and development is performed in 51%
1353	1353	665
1354	1354	or more of the total area of the facility.
1355	1355	666
1356	1356	(67) "Load and leave" means delivery to a purchaser by use of a tangible storage media if
1357	1357	667
1358	1358	the tangible storage media is not physically transferred to the purchaser.
1359	1359	668
1360	1360	(68) "Local taxing jurisdiction" means a:
1361	1361	669
1362	1362	(a) county that is authorized to impose an agreement sales and use tax;
1363	1363	670
1364	1364	(b) city that is authorized to impose an agreement sales and use tax; or
1365	1365	671
1366	1366	(c) town that is authorized to impose an agreement sales and use tax.
1367	1367	672
1368	1368	(69) "Manufactured home" means the same as that term is defined in Section 15A-1-302.
1369	1369	673
1370	1370	(70) "Manufacturing facility" means:
1371	1371	674
1372	1372	(a) an establishment described in:
1373	1373	675
1374	1374	(i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
1375	1375	676
1376	1376	the federal Executive Office of the President, Office of Management and Budget;
1377	1377	- 20 - 02-12 12:41 H.B. 489
1378	1378	677
1379	1379	or
1380	1380	678
1381	1381	(ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
1382	1382	679
1383	1383	American Industry Classification System of the federal Executive Office of the
1384	1384	680
1385	1385	President, Office of Management and Budget;
1386	1386	681
1387	1387	(b) a scrap recycler if:
1388	1388	682
1389	1389	(i) from a fixed location, the scrap recycler utilizes machinery or equipment to
1390	1390	683
1391	1391	process one or more of the following items into prepared grades of processed
1392	1392	684
1393	1393	materials for use in new products:
1394	1394	685
1395	1395	(A) iron;
1396	1396	686
1397	1397	(B) steel;
1398	1398	687
1399	1399	(C) nonferrous metal;
1400	1400	688
1401	1401	(D) paper;
1402	1402	689
1403	1403	(E) glass;
1404	1404	690
1405	1405	(F) plastic;
1406	1406	691
1407	1407	(G) textile; or
1408	1408	692
1409	1409	(H) rubber; and
1410	1410	693
1411	1411	(ii) the new products under Subsection (70)(b)(i) would otherwise be made with
1412	1412	694
1413	1413	nonrecycled materials; or
1414	1414	695
1415	1415	(c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
1416	1416	696
1417	1417	placed in service on or after May 1, 2006.
1418	1418	697
1419	1419	(71)(a) "Marketplace" means a physical or electronic place, platform, or forum where
1420	1420	698
1421	1421	tangible personal property, a product transferred electronically, or a service is offered
1422	1422	699
1423	1423	for sale.
1424	1424	700
1425	1425	(b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a dedicated
1426	1426	701
1427	1427	sales software application.
1428	1428	702
1429	1429	(72)(a) "Marketplace facilitator" means a person, including an affiliate of the person,
1430	1430	703
1431	1431	that enters into a contract, an agreement, or otherwise with sellers, for consideration,
1432	1432	704
1433	1433	to facilitate the sale of a seller's product through a marketplace that the person owns,
1434	1434	705
1435	1435	operates, or controls and that directly or indirectly:
1436	1436	706
1437	1437	(i) does any of the following:
1438	1438	707
1439	1439	(A) lists, makes available, or advertises tangible personal property, a product
1440	1440	708
1441	1441	transferred electronically, or a service for sale by a marketplace seller on a
1442	1442	709
1443	1443	marketplace that the person owns, operates, or controls;
1444	1444	710
1445	1445	(B) facilitates the sale of a marketplace seller's tangible personal property, product
1446	1446	- 21 - H.B. 489 02-12 12:41
1447	1447	711
1448	1448	transferred electronically, or service by transmitting or otherwise
1449	1449	712
1450	1450	communicating an offer or acceptance of a retail sale between the marketplace
1451	1451	713
1452	1452	seller and a purchaser using the marketplace;
1453	1453	714
1454	1454	(C) owns, rents, licenses, makes available, or operates any electronic or physical
1455	1455	715
1456	1456	infrastructure or any property, process, method, copyright, trademark, or patent
1457	1457	716
1458	1458	that connects a marketplace seller to a purchaser for the purpose of making a
1459	1459	717
1460	1460	retail sale of tangible personal property, a product transferred electronically, or
1461	1461	718
1462	1462	a service;
1463	1463	719
1464	1464	(D) provides a marketplace for making, or otherwise facilitates, a retail sale of
1465	1465	720
1466	1466	tangible personal property, a product transferred electronically, or a service,
1467	1467	721
1468	1468	regardless of ownership or control of the tangible personal property, the
1469	1469	722
1470	1470	product transferred electronically, or the service that is the subject of the retail
1471	1471	723
1472	1472	sale;
1473	1473	724
1474	1474	(E) provides software development or research and development activities related
1475	1475	725
1476	1476	to any activity described in this Subsection (72)(a)(i), if the software
1477	1477	726
1478	1478	development or research and development activity is directly related to the
1479	1479	727
1480	1480	person's marketplace;
1481	1481	728
1482	1482	(F) provides or offers fulfillment or storage services for a marketplace seller;
1483	1483	729
1484	1484	(G) sets prices for the sale of tangible personal property, a product transferred
1485	1485	730
1486	1486	electronically, or a service by a marketplace seller;
1487	1487	731
1488	1488	(H) provides or offers customer service to a marketplace seller or a marketplace
1489	1489	732
1490	1490	seller's purchaser or accepts or assists with taking orders, returns, or exchanges
1491	1491	733
1492	1492	of tangible personal property, a product transferred electronically, or a service
1493	1493	734
1494	1494	sold by a marketplace seller on the person's marketplace; or
1495	1495	735
1496	1496	(I) brands or otherwise identifies sales as those of the person; and
1497	1497	736
1498	1498	(ii) does any of the following:
1499	1499	737
1500	1500	(A) collects the sales price or purchase price of a retail sale of tangible personal
1501	1501	738
1502	1502	property, a product transferred electronically, or a service;
1503	1503	739
1504	1504	(B) provides payment processing services for a retail sale of tangible personal
1505	1505	740
1506	1506	property, a product transferred electronically, or a service;
1507	1507	741
1508	1508	(C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee,
1509	1509	742
1510	1510	closing fee, a fee for inserting or making available tangible personal property, a
1511	1511	743
1512	1512	product transferred electronically, or a service on the person's marketplace, or
1513	1513	744
1514	1514	other consideration for the facilitation of a retail sale of tangible personal
1515	1515	- 22 - 02-12 12:41 H.B. 489
1516	1516	745
1517	1517	property, a product transferred electronically, or a service, regardless of
1518	1518	746
1519	1519	ownership or control of the tangible personal property, the product transferred
1520	1520	747
1521	1521	electronically, or the service that is the subject of the retail sale;
1522	1522	748
1523	1523	(D) through terms and conditions, an agreement, or another arrangement with a
1524	1524	749
1525	1525	third person, collects payment from a purchase for a retail sale of tangible
1526	1526	750
1527	1527	personal property, a product transferred electronically, or a service and
1528	1528	751
1529	1529	transmits that payment to the marketplace seller, regardless of whether the
1530	1530	752
1531	1531	third person receives compensation or other consideration in exchange for the
1532	1532	753
1533	1533	service; or
1534	1534	754
1535	1535	(E) provides a virtual currency for a purchaser to use to purchase tangible personal
1536	1536	755
1537	1537	property, a product transferred electronically, or service offered for sale.
1538	1538	756
1539	1539	(b) "Marketplace facilitator" does not include:
1540	1540	757
1541	1541	(i) a person that only provides payment processing services; or
1542	1542	758
1543	1543	(ii) a person described in Subsection (72)(a) to the extent the person is facilitating a
1544	1544	759
1545	1545	sale for a seller that is a restaurant as defined in Section 59-12-602.
1546	1546	760
1547	1547	(73) "Marketplace seller" means a seller that makes one or more retail sales through a
1548	1548	761
1549	1549	marketplace that a marketplace facilitator owns, operates, or controls, regardless of
1550	1550	762
1551	1551	whether the seller is required to be registered to collect and remit the tax under this part.
1552	1552	763
1553	1553	(74) "Member of the immediate family of the producer" means a person who is related to a
1554	1554	764
1555	1555	producer described in Subsection 59-12-104(20)(a) as a:
1556	1556	765
1557	1557	(a) child or stepchild, regardless of whether the child or stepchild is:
1558	1558	766
1559	1559	(i) an adopted child or adopted stepchild; or
1560	1560	767
1561	1561	(ii) a foster child or foster stepchild;
1562	1562	768
1563	1563	(b) grandchild or stepgrandchild;
1564	1564	769
1565	1565	(c) grandparent or stepgrandparent;
1566	1566	770
1567	1567	(d) nephew or stepnephew;
1568	1568	771
1569	1569	(e) niece or stepniece;
1570	1570	772
1571	1571	(f) parent or stepparent;
1572	1572	773
1573	1573	(g) sibling or stepsibling;
1574	1574	774
1575	1575	(h) spouse;
1576	1576	775
1577	1577	(i) person who is the spouse of a person described in Subsections (74)(a) through (g); or
1578	1578	776
1579	1579	(j) person similar to a person described in Subsections (74)(a) through (i) as determined
1580	1580	777
1581	1581	by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1582	1582	778
1583	1583	Administrative Rulemaking Act.
1584	1584	- 23 - H.B. 489 02-12 12:41
1585	1585	779
1586	1586	(75) "Mobile home" means the same as that term is defined in Section 15A-1-302.
1587	1587	780
1588	1588	(76) "Mobile telecommunications service" means the same as that term is defined in the
1589	1589	781
1590	1590	Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1591	1591	782
1592	1592	(77)(a) "Mobile wireless service" means a telecommunications service, regardless of the
1593	1593	783
1594	1594	technology used, if:
1595	1595	784
1596	1596	(i) the origination point of the conveyance, routing, or transmission is not fixed;
1597	1597	785
1598	1598	(ii) the termination point of the conveyance, routing, or transmission is not fixed; or
1599	1599	786
1600	1600	(iii) the origination point described in Subsection (77)(a)(i) and the termination point
1601	1601	787
1602	1602	described in Subsection (77)(a)(ii) are not fixed.
1603	1603	788
1604	1604	(b) "Mobile wireless service" includes a telecommunications service that is provided by
1605	1605	789
1606	1606	a commercial mobile radio service provider.
1607	1607	790
1608	1608	(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1609	1609	791
1610	1610	commission may by rule define "commercial mobile radio service provider."
1611	1611	792
1612	1612	(78)(a) "Mobility enhancing equipment" means equipment that is:
1613	1613	793
1614	1614	(i) primarily and customarily used to provide or increase the ability to move from one
1615	1615	794
1616	1616	place to another;
1617	1617	795
1618	1618	(ii) appropriate for use in a:
1619	1619	796
1620	1620	(A) home; or
1621	1621	797
1622	1622	(B) motor vehicle; and
1623	1623	798
1624	1624	(iii) not generally used by persons with normal mobility.
1625	1625	799
1626	1626	(b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
1627	1627	800
1628	1628	the equipment described in Subsection (78)(a).
1629	1629	801
1630	1630	(c) "Mobility enhancing equipment" does not include:
1631	1631	802
1632	1632	(i) a motor vehicle;
1633	1633	803
1634	1634	(ii) equipment on a motor vehicle if that equipment is normally provided by the
1635	1635	804
1636	1636	motor vehicle manufacturer;
1637	1637	805
1638	1638	(iii) durable medical equipment; or
1639	1639	806
1640	1640	(iv) a prosthetic device.
1641	1641	807
1642	1642	(79) "Model 1 seller" means a seller registered under the agreement that has selected a
1643	1643	808
1644	1644	certified service provider as the seller's agent to perform the seller's sales and use tax
1645	1645	809
1646	1646	functions for agreement sales and use taxes, as outlined in the contract between the
1647	1647	810
1648	1648	governing board of the agreement and the certified service provider, other than the
1649	1649	811
1650	1650	seller's obligation under Section 59-12-124 to remit a tax on the seller's own purchases.
1651	1651	812
1652	1652	(80) "Model 2 seller" means a seller registered under the agreement that:
1653	1653	- 24 - 02-12 12:41 H.B. 489
1654	1654	813
1655	1655	(a) except as provided in Subsection (80)(b), has selected a certified automated system
1656	1656	814
1657	1657	to perform the seller's sales tax functions for agreement sales and use taxes; and
1658	1658	815
1659	1659	(b) retains responsibility for remitting all of the sales tax:
1660	1660	816
1661	1661	(i) collected by the seller; and
1662	1662	817
1663	1663	(ii) to the appropriate local taxing jurisdiction.
1664	1664	818
1665	1665	(81)(a) Subject to Subsection (81)(b), "model 3 seller" means a seller registered under
1666	1666	819
1667	1667	the agreement that has:
1668	1668	820
1669	1669	(i) sales in at least five states that are members of the agreement;
1670	1670	821
1671	1671	(ii) total annual sales revenue of at least $500,000,000;
1672	1672	822
1673	1673	(iii) a proprietary system that calculates the amount of tax:
1674	1674	823
1675	1675	(A) for an agreement sales and use tax; and
1676	1676	824
1677	1677	(B) due to each local taxing jurisdiction; and
1678	1678	825
1679	1679	(iv) entered into a performance agreement with the governing board of the agreement.
1680	1680	826
1681	1681	(b) For purposes of Subsection (81)(a), "model 3 seller" includes an affiliated group of
1682	1682	827
1683	1683	sellers using the same proprietary system.
1684	1684	828
1685	1685	(82) "Model 4 seller" means a seller that is registered under the agreement and is not a
1686	1686	829
1687	1687	model 1 seller, model 2 seller, or model 3 seller.
1688	1688	830
1689	1689	(83) "Modular home" means a modular unit as defined in Section 15A-1-302.
1690	1690	831
1691	1691	(84) "Motor vehicle" means the same as that term is defined in Section 41-1a-102.
1692	1692	832
1693	1693	(85) "Oil sands" means impregnated bituminous sands that:
1694	1694	833
1695	1695	(a) contain a heavy, thick form of petroleum that is released when heated, mixed with
1696	1696	834
1697	1697	other hydrocarbons, or otherwise treated;
1698	1698	835
1699	1699	(b) yield mixtures of liquid hydrocarbon; and
1700	1700	836
1701	1701	(c) require further processing other than mechanical blending before becoming finished
1702	1702	837
1703	1703	petroleum products.
1704	1704	838
1705	1705	(86) "Oil shale" means a group of fine black to dark brown shales containing kerogen
1706	1706	839
1707	1707	material that yields petroleum upon heating and distillation.
1708	1708	840
1709	1709	(87) "Optional computer software maintenance contract" means a computer software
1710	1710	841
1711	1711	maintenance contract that a customer is not obligated to purchase as a condition to the
1712	1712	842
1713	1713	retail sale of computer software.
1714	1714	843
1715	1715	(88)(a) "Other fuels" means products that burn independently to produce heat or energy.
1716	1716	844
1717	1717	(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
1718	1718	845
1719	1719	personal property.
1720	1720	846
1721	1721	(89)(a) "Paging service" means a telecommunications service that provides transmission
1722	1722	- 25 - H.B. 489 02-12 12:41
1723	1723	847
1724	1724	of a coded radio signal for the purpose of activating a specific pager.
1725	1725	848
1726	1726	(b) For purposes of Subsection (89)(a), the transmission of a coded radio signal includes
1727	1727	849
1728	1728	a transmission by message or sound.
1729	1729	850
1730	1730	(90) "Pawn transaction" means the same as that term is defined in Section 13-32a-102.
1731	1731	851
1732	1732	(91) "Pawnbroker" means the same as that term is defined in Section 13-32a-102.
1733	1733	852
1734	1734	(92)(a) "Permanently attached to real property" means that for tangible personal property
1735	1735	853
1736	1736	attached to real property:
1737	1737	854
1738	1738	(i) the attachment of the tangible personal property to the real property:
1739	1739	855
1740	1740	(A) is essential to the use of the tangible personal property; and
1741	1741	856
1742	1742	(B) suggests that the tangible personal property will remain attached to the real
1743	1743	857
1744	1744	property in the same place over the useful life of the tangible personal
1745	1745	858
1746	1746	property; or
1747	1747	859
1748	1748	(ii) if the tangible personal property is detached from the real property, the
1749	1749	860
1750	1750	detachment would:
1751	1751	861
1752	1752	(A) cause substantial damage to the tangible personal property; or
1753	1753	862
1754	1754	(B) require substantial alteration or repair of the real property to which the
1755	1755	863
1756	1756	tangible personal property is attached.
1757	1757	864
1758	1758	(b) "Permanently attached to real property" includes:
1759	1759	865
1760	1760	(i) the attachment of an accessory to the tangible personal property if the accessory is:
1761	1761	866
1762	1762	(A) essential to the operation of the tangible personal property; and
1763	1763	867
1764	1764	(B) attached only to facilitate the operation of the tangible personal property;
1765	1765	868
1766	1766	(ii) a temporary detachment of tangible personal property from real property for a
1767	1767	869
1768	1768	repair or renovation if the repair or renovation is performed where the tangible
1769	1769	870
1770	1770	personal property and real property are located; or
1771	1771	871
1772	1772	(iii) property attached to oil, gas, or water pipelines, except for the property listed in
1773	1773	872
1774	1774	Subsection (92)(c)(iii) or (iv).
1775	1775	873
1776	1776	(c) "Permanently attached to real property" does not include:
1777	1777	874
1778	1778	(i) the attachment of portable or movable tangible personal property to real property
1779	1779	875
1780	1780	if that portable or movable tangible personal property is attached to real property
1781	1781	876
1782	1782	only for:
1783	1783	877
1784	1784	(A) convenience;
1785	1785	878
1786	1786	(B) stability; or
1787	1787	879
1788	1788	(C) for an obvious temporary purpose;
1789	1789	880
1790	1790	(ii) the detachment of tangible personal property from real property except for the
1791	1791	- 26 - 02-12 12:41 H.B. 489
1792	1792	881
1793	1793	detachment described in Subsection (92)(b)(ii);
1794	1794	882
1795	1795	(iii) an attachment of the following tangible personal property to real property if the
1796	1796	883
1797	1797	attachment to real property is only through a line that supplies water, electricity,
1798	1798	884
1799	1799	gas, telecommunications, cable, or supplies a similar item as determined by the
1800	1800	885
1801	1801	commission by rule made in accordance with Title 63G, Chapter 3, Utah
1802	1802	886
1803	1803	Administrative Rulemaking Act:
1804	1804	887
1805	1805	(A) a computer;
1806	1806	888
1807	1807	(B) a telephone;
1808	1808	889
1809	1809	(C) a television; or
1810	1810	890
1811	1811	(D) tangible personal property similar to Subsections (92)(c)(iii)(A) through (C)
1812	1812	891
1813	1813	as determined by the commission by rule made in accordance with Title 63G,
1814	1814	892
1815	1815	Chapter 3, Utah Administrative Rulemaking Act; or
1816	1816	893
1817	1817	(iv) an item listed in Subsection (137)(c).
1818	1818	894
1819	1819	(93) "Person" includes any individual, firm, partnership, joint venture, association,
1820	1820	895
1821	1821	corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
1822	1822	896
1823	1823	municipality, district, or other local governmental entity of the state, or any group or
1824	1824	897
1825	1825	combination acting as a unit.
1826	1826	898
1827	1827	(94) "Place of primary use":
1828	1828	899
1829	1829	(a) for telecommunications service other than mobile telecommunications service,
1830	1830	900
1831	1831	means the street address representative of where the customer's use of the
1832	1832	901
1833	1833	telecommunications service primarily occurs, which shall be:
1834	1834	902
1835	1835	(i) the residential street address of the customer; or
1836	1836	903
1837	1837	(ii) the primary business street address of the customer; or
1838	1838	904
1839	1839	(b) for mobile telecommunications service, means the same as that term is defined in the
1840	1840	905
1841	1841	Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1842	1842	906
1843	1843	(95)(a) "Postpaid calling service" means a telecommunications service a person obtains
1844	1844	907
1845	1845	by making a payment on a call-by-call basis:
1846	1846	908
1847	1847	(i) through the use of a:
1848	1848	909
1849	1849	(A) bank card;
1850	1850	910
1851	1851	(B) credit card;
1852	1852	911
1853	1853	(C) debit card; or
1854	1854	912
1855	1855	(D) travel card; or
1856	1856	913
1857	1857	(ii) by a charge made to a telephone number that is not associated with the origination
1858	1858	914
1859	1859	or termination of the telecommunications service.
1860	1860	- 27 - H.B. 489 02-12 12:41
1861	1861	915
1862	1862	(b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
1863	1863	916
1864	1864	service, that would be a prepaid wireless calling service if the service were
1865	1865	917
1866	1866	exclusively a telecommunications service.
1867	1867	918
1868	1868	(96) "Postproduction" means an activity related to the finishing or duplication of a medium
1869	1869	919
1870	1870	described in Subsection 59-12-104(54)(a).
1871	1871	920
1872	1872	(97) "Prepaid calling service" means a telecommunications service:
1873	1873	921
1874	1874	(a) that allows a purchaser access to telecommunications service that is exclusively
1875	1875	922
1876	1876	telecommunications service;
1877	1877	923
1878	1878	(b) that:
1879	1879	924
1880	1880	(i) is paid for in advance; and
1881	1881	925
1882	1882	(ii) enables the origination of a call using an:
1883	1883	926
1884	1884	(A) access number; or
1885	1885	927
1886	1886	(B) authorization code;
1887	1887	928
1888	1888	(c) that is dialed:
1889	1889	929
1890	1890	(i) manually; or
1891	1891	930
1892	1892	(ii) electronically; and
1893	1893	931
1894	1894	(d) sold in predetermined units or dollars that decline:
1895	1895	932
1896	1896	(i) by a known amount; and
1897	1897	933
1898	1898	(ii) with use.
1899	1899	934
1900	1900	(98) "Prepaid wireless calling service" means a telecommunications service:
1901	1901	935
1902	1902	(a) that provides the right to utilize:
1903	1903	936
1904	1904	(i) mobile wireless service; and
1905	1905	937
1906	1906	(ii) other service that is not a telecommunications service, including:
1907	1907	938
1908	1908	(A) the download of a product transferred electronically;
1909	1909	939
1910	1910	(B) a content service; or
1911	1911	940
1912	1912	(C) an ancillary service;
1913	1913	941
1914	1914	(b) that:
1915	1915	942
1916	1916	(i) is paid for in advance; and
1917	1917	943
1918	1918	(ii) enables the origination of a call using an:
1919	1919	944
1920	1920	(A) access number; or
1921	1921	945
1922	1922	(B) authorization code;
1923	1923	946
1924	1924	(c) that is dialed:
1925	1925	947
1926	1926	(i) manually; or
1927	1927	948
1928	1928	(ii) electronically; and
1929	1929	- 28 - 02-12 12:41 H.B. 489
1930	1930	949
1931	1931	(d) sold in predetermined units or dollars that decline:
1932	1932	950
1933	1933	(i) by a known amount; and
1934	1934	951
1935	1935	(ii) with use.
1936	1936	952
1937	1937	(99)(a) "Prepared food" means:
1938	1938	953
1939	1939	(i) food:
1940	1940	954
1941	1941	(A) sold in a heated state; or
1942	1942	955
1943	1943	(B) heated by a seller;
1944	1944	956
1945	1945	(ii) two or more food ingredients mixed or combined by the seller for sale as a single
1946	1946	957
1947	1947	item; or
1948	1948	958
1949	1949	(iii) except as provided in Subsection (99)(c), food sold with an eating utensil
1950	1950	959
1951	1951	provided by the seller, including a:
1952	1952	960
1953	1953	(A) plate;
1954	1954	961
1955	1955	(B) knife;
1956	1956	962
1957	1957	(C) fork;
1958	1958	963
1959	1959	(D) spoon;
1960	1960	964
1961	1961	(E) glass;
1962	1962	965
1963	1963	(F) cup;
1964	1964	966
1965	1965	(G) napkin; or
1966	1966	967
1967	1967	(H) straw.
1968	1968	968
1969	1969	(b) "Prepared food" does not include:
1970	1970	969
1971	1971	(i) food that a seller only:
1972	1972	970
1973	1973	(A) cuts;
1974	1974	971
1975	1975	(B) repackages; or
1976	1976	972
1977	1977	(C) pasteurizes;
1978	1978	973
1979	1979	(ii)(A) the following:
1980	1980	974
1981	1981	(I) raw egg;
1982	1982	975
1983	1983	(II) raw fish;
1984	1984	976
1985	1985	(III) raw meat;
1986	1986	977
1987	1987	(IV) raw poultry; or
1988	1988	978
1989	1989	(V) a food containing an item described in Subsections (99)(b)(ii)(A)(I)
1990	1990	979
1991	1991	through (IV); and
1992	1992	980
1993	1993	(B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of
1994	1994	981
1995	1995	the Food and Drug Administration's Food Code that a consumer cook the items
1996	1996	982
1997	1997	described in Subsection (99)(b)(ii)(A) to prevent food borne illness; or
1998	1998	- 29 - H.B. 489 02-12 12:41
1999	1999	983
2000	2000	(iii) the following if sold without eating utensils provided by the seller:
2001	2001	984
2002	2002	(A) food and food ingredients sold by a seller if the seller's proper primary
2003	2003	985
2004	2004	classification under the 2002 North American Industry Classification System
2005	2005	986
2006	2006	of the federal Executive Office of the President, Office of Management and
2007	2007	987
2008	2008	Budget, is manufacturing in Sector 311, Food Manufacturing, except for
2009	2009	988
2010	2010	Subsector 3118, Bakeries and Tortilla Manufacturing;
2011	2011	989
2012	2012	(B) food and food ingredients sold in an unheated state:
2013	2013	990
2014	2014	(I) by weight or volume; and
2015	2015	991
2016	2016	(II) as a single item; or
2017	2017	992
2018	2018	(C) a bakery item, including:
2019	2019	993
2020	2020	(I) a bagel;
2021	2021	994
2022	2022	(II) a bar;
2023	2023	995
2024	2024	(III) a biscuit;
2025	2025	996
2026	2026	(IV) bread;
2027	2027	997
2028	2028	(V) a bun;
2029	2029	998
2030	2030	(VI) a cake;
2031	2031	999
2032	2032	(VII) a cookie;
2033	2033	1000
2034	2034	(VIII) a croissant;
2035	2035	1001
2036	2036	(IX) a danish;
2037	2037	1002
2038	2038	(X) a donut;
2039	2039	1003
2040	2040	(XI) a muffin;
2041	2041	1004
2042	2042	(XII) a pastry;
2043	2043	1005
2044	2044	(XIII) a pie;
2045	2045	1006
2046	2046	(XIV) a roll;
2047	2047	1007
2048	2048	(XV) a tart;
2049	2049	1008
2050	2050	(XVI) a torte; or
2051	2051	1009
2052	2052	(XVII) a tortilla.
2053	2053	1010
2054	2054	(c) An eating utensil provided by the seller does not include the following used to
2055	2055	1011
2056	2056	transport the food:
2057	2057	1012
2058	2058	(i) a container; or
2059	2059	1013
2060	2060	(ii) packaging.
2061	2061	1014
2062	2062	(100) "Prescription" means an order, formula, or recipe that is issued:
2063	2063	1015
2064	2064	(a)(i) orally;
2065	2065	1016
2066	2066	(ii) in writing;
2067	2067	- 30 - 02-12 12:41 H.B. 489
2068	2068	1017
2069	2069	(iii) electronically; or
2070	2070	1018
2071	2071	(iv) by any other manner of transmission; and
2072	2072	1019
2073	2073	(b) by a licensed practitioner authorized by the laws of a state.
2074	2074	1020
2075	2075	(101)(a) "Prewritten computer software" means computer software that is not designed
2076	2076	1021
2077	2077	and developed:
2078	2078	1022
2079	2079	(i) by the author or other creator of the computer software; and
2080	2080	1023
2081	2081	(ii) to the specifications of a specific purchaser.
2082	2082	1024
2083	2083	(b) "Prewritten computer software" includes:
2084	2084	1025
2085	2085	(i) a prewritten upgrade to computer software if the prewritten upgrade to the
2086	2086	1026
2087	2087	computer software is not designed and developed:
2088	2088	1027
2089	2089	(A) by the author or other creator of the computer software; and
2090	2090	1028
2091	2091	(B) to the specifications of a specific purchaser;
2092	2092	1029
2093	2093	(ii) computer software designed and developed by the author or other creator of the
2094	2094	1030
2095	2095	computer software to the specifications of a specific purchaser if the computer
2096	2096	1031
2097	2097	software is sold to a person other than the purchaser; or
2098	2098	1032
2099	2099	(iii) except as provided in Subsection (101)(c), prewritten computer software or a
2100	2100	1033
2101	2101	prewritten portion of prewritten computer software:
2102	2102	1034
2103	2103	(A) that is modified or enhanced to any degree; and
2104	2104	1035
2105	2105	(B) if the modification or enhancement described in Subsection (101)(b)(iii)(A) is
2106	2106	1036
2107	2107	designed and developed to the specifications of a specific purchaser.
2108	2108	1037
2109	2109	(c) "Prewritten computer software" does not include a modification or enhancement
2110	2110	1038
2111	2111	described in Subsection (101)(b)(iii) if the charges for the modification or
2112	2112	1039
2113	2113	enhancement are:
2114	2114	1040
2115	2115	(i) reasonable; and
2116	2116	1041
2117	2117	(ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), separately stated on the
2118	2118	1042
2119	2119	invoice or other statement of price provided to the purchaser at the time of sale or
2120	2120	1043
2121	2121	later, as demonstrated by:
2122	2122	1044
2123	2123	(A) the books and records the seller keeps at the time of the transaction in the
2124	2124	1045
2125	2125	regular course of business, including books and records the seller keeps at the
2126	2126	1046
2127	2127	time of the transaction in the regular course of business for nontax purposes;
2128	2128	1047
2129	2129	(B) a preponderance of the facts and circumstances at the time of the transaction;
2130	2130	1048
2131	2131	and
2132	2132	1049
2133	2133	(C) the understanding of all of the parties to the transaction.
2134	2134	1050
2135	2135	(102)(a) "Private communications service" means a telecommunications service:
2136	2136	- 31 - H.B. 489 02-12 12:41
2137	2137	1051
2138	2138	(i) that entitles a customer to exclusive or priority use of one or more
2139	2139	1052
2140	2140	communications channels between or among termination points; and
2141	2141	1053
2142	2142	(ii) regardless of the manner in which the one or more communications channels are
2143	2143	1054
2144	2144	connected.
2145	2145	1055
2146	2146	(b) "Private communications service" includes the following provided in connection
2147	2147	1056
2148	2148	with the use of one or more communications channels:
2149	2149	1057
2150	2150	(i) an extension line;
2151	2151	1058
2152	2152	(ii) a station;
2153	2153	1059
2154	2154	(iii) switching capacity; or
2155	2155	1060
2156	2156	(iv) another associated service that is provided in connection with the use of one or
2157	2157	1061
2158	2158	more communications channels as defined in Section 59-12-215.
2159	2159	1062
2160	2160	(103)(a) "Product transferred electronically" means a product transferred electronically
2161	2161	1063
2162	2162	that would be subject to a tax under this chapter if that product was transferred in a
2163	2163	1064
2164	2164	manner other than electronically.
2165	2165	1065
2166	2166	(b) "Product transferred electronically" does not include:
2167	2167	1066
2168	2168	(i) an ancillary service;
2169	2169	1067
2170	2170	(ii) computer software; or
2171	2171	1068
2172	2172	(iii) a telecommunications service.
2173	2173	1069
2174	2174	(104)(a) "Prosthetic device" means a device that is worn on or in the body to:
2175	2175	1070
2176	2176	(i) artificially replace a missing portion of the body;
2177	2177	1071
2178	2178	(ii) prevent or correct a physical deformity or physical malfunction; or
2179	2179	1072
2180	2180	(iii) support a weak or deformed portion of the body.
2181	2181	1073
2182	2182	(b) "Prosthetic device" includes:
2183	2183	1074
2184	2184	(i) parts used in the repairs or renovation of a prosthetic device;
2185	2185	1075
2186	2186	(ii) replacement parts for a prosthetic device;
2187	2187	1076
2188	2188	(iii) a dental prosthesis; [or]
2189	2189	1077
2190	2190	(iv) a hearing aid[.] ;
2191	2191	1078
2192	2192	(v) corrective eyeglasses; or
2193	2193	1079
2194	2194	(vi) contact lenses.
2195	2195	1080
2196	2196	[(c) "Prosthetic device" does not include:]
2197	2197	1081
2198	2198	[(i) corrective eyeglasses; or]
2199	2199	1082
2200	2200	[(ii) contact lenses.]
2201	2201	1083
2202	2202	(105)(a) "Protective equipment" means an item:
2203	2203	1084
2204	2204	(i) for human wear; and
2205	2205	- 32 - 02-12 12:41 H.B. 489
2206	2206	1085
2207	2207	(ii) that is:
2208	2208	1086
2209	2209	(A) designed as protection:
2210	2210	1087
2211	2211	(I) to the wearer against injury or disease; or
2212	2212	1088
2213	2213	(II) against damage or injury of other persons or property; and
2214	2214	1089
2215	2215	(B) not suitable for general use.
2216	2216	1090
2217	2217	(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2218	2218	1091
2219	2219	commission shall make rules:
2220	2220	1092
2221	2221	(i) listing the items that constitute "protective equipment"; and
2222	2222	1093
2223	2223	(ii) that are consistent with the list of items that constitute "protective equipment"
2224	2224	1094
2225	2225	under the agreement.
2226	2226	1095
2227	2227	(106)(a) For purposes of Subsection 59-12-104(41), "publication" means any written or
2228	2228	1096
2229	2229	printed matter, other than a photocopy:
2230	2230	1097
2231	2231	(i) regardless of:
2232	2232	1098
2233	2233	(A) characteristics;
2234	2234	1099
2235	2235	(B) copyright;
2236	2236	1100
2237	2237	(C) form;
2238	2238	1101
2239	2239	(D) format;
2240	2240	1102
2241	2241	(E) method of reproduction; or
2242	2242	1103
2243	2243	(F) source; and
2244	2244	1104
2245	2245	(ii) made available in printed or electronic format.
2246	2246	1105
2247	2247	(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2248	2248	1106
2249	2249	commission may by rule define the term "photocopy."
2250	2250	1107
2251	2251	(107)(a) "Purchase price" and "sales price" mean the total amount of consideration:
2252	2252	1108
2253	2253	(i) valued in money; and
2254	2254	1109
2255	2255	(ii) for which tangible personal property, a product transferred electronically, or
2256	2256	1110
2257	2257	services are:
2258	2258	1111
2259	2259	(A) sold;
2260	2260	1112
2261	2261	(B) leased; or
2262	2262	1113
2263	2263	(C) rented.
2264	2264	1114
2265	2265	(b) "Purchase price" and "sales price" include:
2266	2266	1115
2267	2267	(i) the seller's cost of the tangible personal property, a product transferred
2268	2268	1116
2269	2269	electronically, or services sold;
2270	2270	1117
2271	2271	(ii) expenses of the seller, including:
2272	2272	1118
2273	2273	(A) the cost of materials used;
2274	2274	- 33 - H.B. 489 02-12 12:41
2275	2275	1119
2276	2276	(B) a labor cost;
2277	2277	1120
2278	2278	(C) a service cost;
2279	2279	1121
2280	2280	(D) interest;
2281	2281	1122
2282	2282	(E) a loss;
2283	2283	1123
2284	2284	(F) the cost of transportation to the seller; or
2285	2285	1124
2286	2286	(G) a tax imposed on the seller;
2287	2287	1125
2288	2288	(iii) a charge by the seller for any service necessary to complete the sale; or
2289	2289	1126
2290	2290	(iv) consideration a seller receives from a person other than the purchaser if:
2291	2291	1127
2292	2292	(A)(I) the seller actually receives consideration from a person other than the
2293	2293	1128
2294	2294	purchaser; and
2295	2295	1129
2296	2296	(II) the consideration described in Subsection (107)(b)(iv)(A)(I) is directly
2297	2297	1130
2298	2298	related to a price reduction or discount on the sale;
2299	2299	1131
2300	2300	(B) the seller has an obligation to pass the price reduction or discount through to
2301	2301	1132
2302	2302	the purchaser;
2303	2303	1133
2304	2304	(C) the amount of the consideration attributable to the sale is fixed and
2305	2305	1134
2306	2306	determinable by the seller at the time of the sale to the purchaser; and
2307	2307	1135
2308	2308	(D)(I)(Aa) the purchaser presents a certificate, coupon, or other
2309	2309	1136
2310	2310	documentation to the seller to claim a price reduction or discount; and
2311	2311	1137
2312	2312	(Bb) a person other than the seller authorizes, distributes, or grants the
2313	2313	1138
2314	2314	certificate, coupon, or other documentation with the understanding that
2315	2315	1139
2316	2316	the person other than the seller will reimburse any seller to whom the
2317	2317	1140
2318	2318	certificate, coupon, or other documentation is presented;
2319	2319	1141
2320	2320	(II) the purchaser identifies that purchaser to the seller as a member of a group
2321	2321	1142
2322	2322	or organization allowed a price reduction or discount, except that a
2323	2323	1143
2324	2324	preferred customer card that is available to any patron of a seller does not
2325	2325	1144
2326	2326	constitute membership in a group or organization allowed a price reduction
2327	2327	1145
2328	2328	or discount; or
2329	2329	1146
2330	2330	(III) the price reduction or discount is identified as a third party price reduction
2331	2331	1147
2332	2332	or discount on the:
2333	2333	1148
2334	2334	(Aa) invoice the purchaser receives; or
2335	2335	1149
2336	2336	(Bb) certificate, coupon, or other documentation the purchaser presents.
2337	2337	1150
2338	2338	(c) "Purchase price" and "sales price" do not include:
2339	2339	1151
2340	2340	(i) a discount:
2341	2341	1152
2342	2342	(A) in a form including:
2343	2343	- 34 - 02-12 12:41 H.B. 489
2344	2344	1153
2345	2345	(I) cash;
2346	2346	1154
2347	2347	(II) term; or
2348	2348	1155
2349	2349	(III) coupon;
2350	2350	1156
2351	2351	(B) that is allowed by a seller;
2352	2352	1157
2353	2353	(C) taken by a purchaser on a sale; and
2354	2354	1158
2355	2355	(D) that is not reimbursed by a third party; or
2356	2356	1159
2357	2357	(ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), the following if
2358	2358	1160
2359	2359	separately stated on an invoice, bill of sale, or similar document provided to the
2360	2360	1161
2361	2361	purchaser at the time of sale or later, as demonstrated by the books and records the
2362	2362	1162
2363	2363	seller keeps at the time of the transaction in the regular course of business,
2364	2364	1163
2365	2365	including books and records the seller keeps at the time of the transaction in the
2366	2366	1164
2367	2367	regular course of business for nontax purposes, by a preponderance of the facts
2368	2368	1165
2369	2369	and circumstances at the time of the transaction, and by the understanding of all of
2370	2370	1166
2371	2371	the parties to the transaction:
2372	2372	1167
2373	2373	(A) the following from credit extended on the sale of tangible personal property or
2374	2374	1168
2375	2375	services:
2376	2376	1169
2377	2377	(I) a carrying charge;
2378	2378	1170
2379	2379	(II) a financing charge; or
2380	2380	1171
2381	2381	(III) an interest charge;
2382	2382	1172
2383	2383	(B) a delivery charge;
2384	2384	1173
2385	2385	(C) an installation charge;
2386	2386	1174
2387	2387	(D) a manufacturer rebate on a motor vehicle; or
2388	2388	1175
2389	2389	(E) a tax or fee legally imposed directly on the consumer.
2390	2390	1176
2391	2391	(108) "Purchaser" means a person to whom:
2392	2392	1177
2393	2393	(a) a sale of tangible personal property is made;
2394	2394	1178
2395	2395	(b) a product is transferred electronically; or
2396	2396	1179
2397	2397	(c) a service is furnished.
2398	2398	1180
2399	2399	(109) "Qualifying data center" means a data center facility that:
2400	2400	1181
2401	2401	(a) houses a group of networked server computers in one physical location in order to
2402	2402	1182
2403	2403	disseminate, manage, and store data and information;
2404	2404	1183
2405	2405	(b) is located in the state;
2406	2406	1184
2407	2407	(c) is a new operation constructed on or after July 1, 2016;
2408	2408	1185
2409	2409	(d) consists of one or more buildings that total 150,000 or more square feet;
2410	2410	1186
2411	2411	(e) is owned or leased by:
2412	2412	- 35 - H.B. 489 02-12 12:41
2413	2413	1187
2414	2414	(i) the operator of the data center facility; or
2415	2415	1188
2416	2416	(ii) a person under common ownership, as defined in Section 59-7-101, of the
2417	2417	1189
2418	2418	operator of the data center facility; and
2419	2419	1190
2420	2420	(f) is located on one or more parcels of land that are owned or leased by:
2421	2421	1191
2422	2422	(i) the operator of the data center facility; or
2423	2423	1192
2424	2424	(ii) a person under common ownership, as defined in Section 59-7-101, of the
2425	2425	1193
2426	2426	operator of the data center facility.
2427	2427	1194
2428	2428	(110) "Regularly rented" means:
2429	2429	1195
2430	2430	(a) rented to a guest for value three or more times during a calendar year; or
2431	2431	1196
2432	2432	(b) advertised or held out to the public as a place that is regularly rented to guests for
2433	2433	1197
2434	2434	value.
2435	2435	1198
2436	2436	(111) "Rental" means the same as that term is defined in Subsection (63).
2437	2437	1199
2438	2438	(112)(a) "Repairs or renovations of tangible personal property" means:
2439	2439	1200
2440	2440	(i) a repair or renovation of tangible personal property that is not permanently
2441	2441	1201
2442	2442	attached to real property; or
2443	2443	1202
2444	2444	(ii) attaching tangible personal property or a product transferred electronically to
2445	2445	1203
2446	2446	other tangible personal property or detaching tangible personal property or a
2447	2447	1204
2448	2448	product transferred electronically from other tangible personal property if:
2449	2449	1205
2450	2450	(A) the other tangible personal property to which the tangible personal property or
2451	2451	1206
2452	2452	product transferred electronically is attached or from which the tangible
2453	2453	1207
2454	2454	personal property or product transferred electronically is detached is not
2455	2455	1208
2456	2456	permanently attached to real property; and
2457	2457	1209
2458	2458	(B) the attachment of tangible personal property or a product transferred
2459	2459	1210
2460	2460	electronically to other tangible personal property or detachment of tangible
2461	2461	1211
2462	2462	personal property or a product transferred electronically from other tangible
2463	2463	1212
2464	2464	personal property is made in conjunction with a repair or replacement of
2465	2465	1213
2466	2466	tangible personal property or a product transferred electronically.
2467	2467	1214
2468	2468	(b) "Repairs or renovations of tangible personal property" does not include:
2469	2469	1215
2470	2470	(i) attaching prewritten computer software to other tangible personal property if the
2471	2471	1216
2472	2472	other tangible personal property to which the prewritten computer software is
2473	2473	1217
2474	2474	attached is not permanently attached to real property; or
2475	2475	1218
2476	2476	(ii) detaching prewritten computer software from other tangible personal property if
2477	2477	1219
2478	2478	the other tangible personal property from which the prewritten computer software
2479	2479	1220
2480	2480	is detached is not permanently attached to real property.
2481	2481	- 36 - 02-12 12:41 H.B. 489
2482	2482	1221
2483	2483	(113) "Research and development" means the process of inquiry or experimentation aimed
2484	2484	1222
2485	2485	at the discovery of facts, devices, technologies, or applications and the process of
2486	2486	1223
2487	2487	preparing those devices, technologies, or applications for marketing.
2488	2488	1224
2489	2489	(114)(a) "Residential telecommunications services" means a telecommunications service
2490	2490	1225
2491	2491	or an ancillary service that is provided to an individual for personal use:
2492	2492	1226
2493	2493	(i) at a residential address; or
2494	2494	1227
2495	2495	(ii) at an institution, including a nursing home or a school, if the telecommunications
2496	2496	1228
2497	2497	service or ancillary service is provided to and paid for by the individual residing at
2498	2498	1229
2499	2499	the institution rather than the institution.
2500	2500	1230
2501	2501	(b) For purposes of Subsection (114)(a)(i), a residential address includes an:
2502	2502	1231
2503	2503	(i) apartment; or
2504	2504	1232
2505	2505	(ii) other individual dwelling unit.
2506	2506	1233
2507	2507	(115) "Residential use" means the use in or around a home, apartment building, sleeping
2508	2508	1234
2509	2509	quarters, and similar facilities or accommodations.
2510	2510	1235
2511	2511	(116) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other than:
2512	2512	1236
2513	2513	(a) resale;
2514	2514	1237
2515	2515	(b) sublease; or
2516	2516	1238
2517	2517	(c) subrent.
2518	2518	1239
2519	2519	(117)(a) "Retailer" means any person, unless prohibited by the Constitution of the
2520	2520	1240
2521	2521	United States or federal law, that is engaged in a regularly organized business in
2522	2522	1241
2523	2523	tangible personal property or any other taxable transaction under Subsection
2524	2524	1242
2525	2525	59-12-103(1), and who is selling to the user or consumer and not for resale.
2526	2526	1243
2527	2527	(b) "Retailer" includes commission merchants, auctioneers, and any person regularly
2528	2528	1244
2529	2529	engaged in the business of selling to users or consumers within the state.
2530	2530	1245
2531	2531	(118)(a) "Sale" means any transfer of title, exchange, or barter, conditional or otherwise,
2532	2532	1246
2533	2533	in any manner, of tangible personal property or any other taxable transaction under
2534	2534	1247
2535	2535	Subsection 59-12-103(1), for consideration.
2536	2536	1248
2537	2537	(b) "Sale" includes:
2538	2538	1249
2539	2539	(i) installment and credit sales;
2540	2540	1250
2541	2541	(ii) any closed transaction constituting a sale;
2542	2542	1251
2543	2543	(iii) any sale of electrical energy, gas, services, or entertainment taxable under this
2544	2544	1252
2545	2545	chapter;
2546	2546	1253
2547	2547	(iv) any transaction if the possession of property is transferred but the seller retains
2548	2548	1254
2549	2549	the title as security for the payment of the price; and
2550	2550	- 37 - H.B. 489 02-12 12:41
2551	2551	1255
2552	2552	(v) any transaction under which right to possession, operation, or use of any article of
2553	2553	1256
2554	2554	tangible personal property is granted under a lease or contract and the transfer of
2555	2555	1257
2556	2556	possession would be taxable if an outright sale were made.
2557	2557	1258
2558	2558	(119) "Sale at retail" means the same as that term is defined in Subsection (116).
2559	2559	1259
2560	2560	(120) "Sale-leaseback transaction" means a transaction by which title to tangible personal
2561	2561	1260
2562	2562	property or a product transferred electronically that is subject to a tax under this chapter
2563	2563	1261
2564	2564	is transferred:
2565	2565	1262
2566	2566	(a) by a purchaser-lessee;
2567	2567	1263
2568	2568	(b) to a lessor;
2569	2569	1264
2570	2570	(c) for consideration; and
2571	2571	1265
2572	2572	(d) if:
2573	2573	1266
2574	2574	(i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial
2575	2575	1267
2576	2576	purchase of the tangible personal property or product transferred electronically;
2577	2577	1268
2578	2578	(ii) the sale of the tangible personal property or product transferred electronically to
2579	2579	1269
2580	2580	the lessor is intended as a form of financing:
2581	2581	1270
2582	2582	(A) for the tangible personal property or product transferred electronically; and
2583	2583	1271
2584	2584	(B) to the purchaser-lessee; and
2585	2585	1272
2586	2586	(iii) in accordance with generally accepted accounting principles, the
2587	2587	1273
2588	2588	purchaser-lessee is required to:
2589	2589	1274
2590	2590	(A) capitalize the tangible personal property or product transferred electronically
2591	2591	1275
2592	2592	for financial reporting purposes; and
2593	2593	1276
2594	2594	(B) account for the lease payments as payments made under a financing
2595	2595	1277
2596	2596	arrangement.
2597	2597	1278
2598	2598	(121) "Sales price" means the same as that term is defined in Subsection (107).
2599	2599	1279
2600	2600	(122)(a) "Sales relating to schools" means the following sales by, amounts paid to, or
2601	2601	1280
2602	2602	amounts charged by a school:
2603	2603	1281
2604	2604	(i) sales that are directly related to the school's educational functions or activities
2605	2605	1282
2606	2606	including:
2607	2607	1283
2608	2608	(A) the sale of:
2609	2609	1284
2610	2610	(I) textbooks;
2611	2611	1285
2612	2612	(II) textbook fees;
2613	2613	1286
2614	2614	(III) laboratory fees;
2615	2615	1287
2616	2616	(IV) laboratory supplies; or
2617	2617	1288
2618	2618	(V) safety equipment;
2619	2619	- 38 - 02-12 12:41 H.B. 489
2620	2620	1289
2621	2621	(B) the sale of a uniform, protective equipment, or sports or recreational
2622	2622	1290
2623	2623	equipment that:
2624	2624	1291
2625	2625	(I) a student is specifically required to wear as a condition of participation in a
2626	2626	1292
2627	2627	school-related event or school-related activity; and
2628	2628	1293
2629	2629	(II) is not readily adaptable to general or continued usage to the extent that it
2630	2630	1294
2631	2631	takes the place of ordinary clothing;
2632	2632	1295
2633	2633	(C) sales of the following if the net or gross revenue generated by the sales is
2634	2634	1296
2635	2635	deposited into a school district fund or school fund dedicated to school meals:
2636	2636	1297
2637	2637	(I) food and food ingredients; or
2638	2638	1298
2639	2639	(II) prepared food; or
2640	2640	1299
2641	2641	(D) transportation charges for official school activities; or
2642	2642	1300
2643	2643	(ii) amounts paid to or amounts charged by a school for admission to a school-related
2644	2644	1301
2645	2645	event or school-related activity.
2646	2646	1302
2647	2647	(b) "Sales relating to schools" does not include:
2648	2648	1303
2649	2649	(i) bookstore sales of items that are not educational materials or supplies;
2650	2650	1304
2651	2651	(ii) except as provided in Subsection (122)(a)(i)(B):
2652	2652	1305
2653	2653	(A) clothing;
2654	2654	1306
2655	2655	(B) clothing accessories or equipment;
2656	2656	1307
2657	2657	(C) protective equipment; or
2658	2658	1308
2659	2659	(D) sports or recreational equipment; or
2660	2660	1309
2661	2661	(iii) amounts paid to or amounts charged by a school for admission to a
2662	2662	1310
2663	2663	school-related event or school-related activity if the amounts paid or charged are
2664	2664	1311
2665	2665	passed through to a person:
2666	2666	1312
2667	2667	(A) other than a:
2668	2668	1313
2669	2669	(I) school;
2670	2670	1314
2671	2671	(II) nonprofit organization authorized by a school board or a governing body of
2672	2672	1315
2673	2673	a private school to organize and direct a competitive secondary school
2674	2674	1316
2675	2675	activity; or
2676	2676	1317
2677	2677	(III) nonprofit association authorized by a school board or a governing body of
2678	2678	1318
2679	2679	a private school to organize and direct a competitive secondary school
2680	2680	1319
2681	2681	activity; and
2682	2682	1320
2683	2683	(B) that is required to collect sales and use taxes under this chapter.
2684	2684	1321
2685	2685	(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2686	2686	1322
2687	2687	commission may make rules defining the term "passed through."
2688	2688	- 39 - H.B. 489 02-12 12:41
2689	2689	1323
2690	2690	(123) For purposes of this section and Section 59-12-104, "school" means:
2691	2691	1324
2692	2692	(a) an elementary school or a secondary school that:
2693	2693	1325
2694	2694	(i) is a:
2695	2695	1326
2696	2696	(A) public school; or
2697	2697	1327
2698	2698	(B) private school; and
2699	2699	1328
2700	2700	(ii) provides instruction for one or more grades kindergarten through 12; or
2701	2701	1329
2702	2702	(b) a public school district.
2703	2703	1330
2704	2704	(124)(a) "Seller" means a person that makes a sale, lease, or rental of:
2705	2705	1331
2706	2706	(i) tangible personal property;
2707	2707	1332
2708	2708	(ii) a product transferred electronically; or
2709	2709	1333
2710	2710	(iii) a service.
2711	2711	1334
2712	2712	(b) "Seller" includes a marketplace facilitator.
2713	2713	1335
2714	2714	(125)(a) "Semiconductor fabricating, processing, research, or development materials"
2715	2715	1336
2716	2716	means tangible personal property or a product transferred electronically if the
2717	2717	1337
2718	2718	tangible personal property or product transferred electronically is:
2719	2719	1338
2720	2720	(i) used primarily in the process of:
2721	2721	1339
2722	2722	(A)(I) manufacturing a semiconductor;
2723	2723	1340
2724	2724	(II) fabricating a semiconductor; or
2725	2725	1341
2726	2726	(III) research or development of a:
2727	2727	1342
2728	2728	(Aa) semiconductor; or
2729	2729	1343
2730	2730	(Bb) semiconductor manufacturing process; or
2731	2731	1344
2732	2732	(B) maintaining an environment suitable for a semiconductor; or
2733	2733	1345
2734	2734	(ii) consumed primarily in the process of:
2735	2735	1346
2736	2736	(A)(I) manufacturing a semiconductor;
2737	2737	1347
2738	2738	(II) fabricating a semiconductor; or
2739	2739	1348
2740	2740	(III) research or development of a:
2741	2741	1349
2742	2742	(Aa) semiconductor; or
2743	2743	1350
2744	2744	(Bb) semiconductor manufacturing process; or
2745	2745	1351
2746	2746	(B) maintaining an environment suitable for a semiconductor.
2747	2747	1352
2748	2748	(b) "Semiconductor fabricating, processing, research, or development materials"
2749	2749	1353
2750	2750	includes:
2751	2751	1354
2752	2752	(i) parts used in the repairs or renovations of tangible personal property or a product
2753	2753	1355
2754	2754	transferred electronically described in Subsection (125)(a); or
2755	2755	1356
2756	2756	(ii) a chemical, catalyst, or other material used to:
2757	2757	- 40 - 02-12 12:41 H.B. 489
2758	2758	1357
2759	2759	(A) produce or induce in a semiconductor a:
2760	2760	1358
2761	2761	(I) chemical change; or
2762	2762	1359
2763	2763	(II) physical change;
2764	2764	1360
2765	2765	(B) remove impurities from a semiconductor; or
2766	2766	1361
2767	2767	(C) improve the marketable condition of a semiconductor.
2768	2768	1362
2769	2769	(126) "Senior citizen center" means a facility having the primary purpose of providing
2770	2770	1363
2771	2771	services to the aged as defined in Section 26B-6-101.
2772	2772	1364
2773	2773	(127) "Shared vehicle" means the same as that term is defined in Section 13-48a-101.
2774	2774	1365
2775	2775	(128) "Shared vehicle driver" means the same as that term is defined in Section 13-48a-101.
2776	2776	1366
2777	2777	(129) "Shared vehicle owner" means the same as that term is defined in Section 13-48a-101.
2778	2778	1367
2779	2779	(130)(a) Subject to Subsections (130)(b) and (c), "short-term lodging consumable"
2780	2780	1368
2781	2781	means tangible personal property that:
2782	2782	1369
2783	2783	(i) a business that provides accommodations and services described in Subsection
2784	2784	1370
2785	2785	59-12-103(1)(i) purchases as part of a transaction to provide the accommodations
2786	2786	1371
2787	2787	and services to a purchaser;
2788	2788	1372
2789	2789	(ii) is intended to be consumed by the purchaser; and
2790	2790	1373
2791	2791	(iii) is:
2792	2792	1374
2793	2793	(A) included in the purchase price of the accommodations and services; and
2794	2794	1375
2795	2795	(B) not separately stated on an invoice, bill of sale, or other similar document
2796	2796	1376
2797	2797	provided to the purchaser.
2798	2798	1377
2799	2799	(b) "Short-term lodging consumable" includes:
2800	2800	1378
2801	2801	(i) a beverage;
2802	2802	1379
2803	2803	(ii) a brush or comb;
2804	2804	1380
2805	2805	(iii) a cosmetic;
2806	2806	1381
2807	2807	(iv) a hair care product;
2808	2808	1382
2809	2809	(v) lotion;
2810	2810	1383
2811	2811	(vi) a magazine;
2812	2812	1384
2813	2813	(vii) makeup;
2814	2814	1385
2815	2815	(viii) a meal;
2816	2816	1386
2817	2817	(ix) mouthwash;
2818	2818	1387
2819	2819	(x) nail polish remover;
2820	2820	1388
2821	2821	(xi) a newspaper;
2822	2822	1389
2823	2823	(xii) a notepad;
2824	2824	1390
2825	2825	(xiii) a pen;
2826	2826	- 41 - H.B. 489 02-12 12:41
2827	2827	1391
2828	2828	(xiv) a pencil;
2829	2829	1392
2830	2830	(xv) a razor;
2831	2831	1393
2832	2832	(xvi) saline solution;
2833	2833	1394
2834	2834	(xvii) a sewing kit;
2835	2835	1395
2836	2836	(xviii) shaving cream;
2837	2837	1396
2838	2838	(xix) a shoe shine kit;
2839	2839	1397
2840	2840	(xx) a shower cap;
2841	2841	1398
2842	2842	(xxi) a snack item;
2843	2843	1399
2844	2844	(xxii) soap;
2845	2845	1400
2846	2846	(xxiii) toilet paper;
2847	2847	1401
2848	2848	(xxiv) a toothbrush;
2849	2849	1402
2850	2850	(xxv) toothpaste; or
2851	2851	1403
2852	2852	(xxvi) an item similar to Subsections (130)(b)(i) through (xxv) as the commission
2853	2853	1404
2854	2854	may provide by rule made in accordance with Title 63G, Chapter 3, Utah
2855	2855	1405
2856	2856	Administrative Rulemaking Act.
2857	2857	1406
2858	2858	(c) "Short-term lodging consumable" does not include:
2859	2859	1407
2860	2860	(i) tangible personal property that is cleaned or washed to allow the tangible personal
2861	2861	1408
2862	2862	property to be reused; or
2863	2863	1409
2864	2864	(ii) a product transferred electronically.
2865	2865	1410
2866	2866	(131)(a) "Short-term rental" means a lease or rental for less than 30 consecutive days.
2867	2867	1411
2868	2868	(b) "Short-term rental" does not include car sharing.
2869	2869	1412
2870	2870	(132) "Simplified electronic return" means the electronic return:
2871	2871	1413
2872	2872	(a) described in Section 318(C) of the agreement; and
2873	2873	1414
2874	2874	(b) approved by the governing board of the agreement.
2875	2875	1415
2876	2876	(133) "Solar energy" means the sun used as the sole source of energy for producing
2877	2877	1416
2878	2878	electricity.
2879	2879	1417
2880	2880	(134)(a) "Sports or recreational equipment" means an item:
2881	2881	1418
2882	2882	(i) designed for human use; and
2883	2883	1419
2884	2884	(ii) that is:
2885	2885	1420
2886	2886	(A) worn in conjunction with:
2887	2887	1421
2888	2888	(I) an athletic activity; or
2889	2889	1422
2890	2890	(II) a recreational activity; and
2891	2891	1423
2892	2892	(B) not suitable for general use.
2893	2893	1424
2894	2894	(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2895	2895	- 42 - 02-12 12:41 H.B. 489
2896	2896	1425
2897	2897	commission shall make rules:
2898	2898	1426
2899	2899	(i) listing the items that constitute "sports or recreational equipment"; and
2900	2900	1427
2901	2901	(ii) that are consistent with the list of items that constitute "sports or recreational
2902	2902	1428
2903	2903	equipment" under the agreement.
2904	2904	1429
2905	2905	(135) "State" means the state of Utah, its departments, and agencies.
2906	2906	1430
2907	2907	(136) "Storage" means any keeping or retention of tangible personal property or any other
2908	2908	1431
2909	2909	taxable transaction under Subsection 59-12-103(1), in this state for any purpose except
2910	2910	1432
2911	2911	sale in the regular course of business.
2912	2912	1433
2913	2913	(137)(a) "Tangible personal property" means personal property that:
2914	2914	1434
2915	2915	(i) may be:
2916	2916	1435
2917	2917	(A) seen;
2918	2918	1436
2919	2919	(B) weighed;
2920	2920	1437
2921	2921	(C) measured;
2922	2922	1438
2923	2923	(D) felt; or
2924	2924	1439
2925	2925	(E) touched; or
2926	2926	1440
2927	2927	(ii) is in any manner perceptible to the senses.
2928	2928	1441
2929	2929	(b) "Tangible personal property" includes:
2930	2930	1442
2931	2931	(i) electricity;
2932	2932	1443
2933	2933	(ii) water;
2934	2934	1444
2935	2935	(iii) gas;
2936	2936	1445
2937	2937	(iv) steam; or
2938	2938	1446
2939	2939	(v) prewritten computer software, regardless of the manner in which the prewritten
2940	2940	1447
2941	2941	computer software is transferred.
2942	2942	1448
2943	2943	(c) "Tangible personal property" includes the following regardless of whether the item is
2944	2944	1449
2945	2945	attached to real property:
2946	2946	1450
2947	2947	(i) a dishwasher;
2948	2948	1451
2949	2949	(ii) a dryer;
2950	2950	1452
2951	2951	(iii) a freezer;
2952	2952	1453
2953	2953	(iv) a microwave;
2954	2954	1454
2955	2955	(v) a refrigerator;
2956	2956	1455
2957	2957	(vi) a stove;
2958	2958	1456
2959	2959	(vii) a washer; or
2960	2960	1457
2961	2961	(viii) an item similar to Subsections (137)(c)(i) through (vii) as determined by the
2962	2962	1458
2963	2963	commission by rule made in accordance with Title 63G, Chapter 3, Utah
2964	2964	- 43 - H.B. 489 02-12 12:41
2965	2965	1459
2966	2966	Administrative Rulemaking Act.
2967	2967	1460
2968	2968	(d) "Tangible personal property" does not include a product that is transferred
2969	2969	1461
2970	2970	electronically.
2971	2971	1462
2972	2972	(e) "Tangible personal property" does not include the following if attached to real
2973	2973	1463
2974	2974	property, regardless of whether the attachment to real property is only through a line
2975	2975	1464
2976	2976	that supplies water, electricity, gas, telephone, cable, or supplies a similar item as
2977	2977	1465
2978	2978	determined by the commission by rule made in accordance with Title 63G, Chapter 3,
2979	2979	1466
2980	2980	Utah Administrative Rulemaking Act:
2981	2981	1467
2982	2982	(i) a hot water heater;
2983	2983	1468
2984	2984	(ii) a water filtration system; or
2985	2985	1469
2986	2986	(iii) a water softener system.
2987	2987	1470
2988	2988	(138)(a) "Telecommunications enabling or facilitating equipment, machinery, or
2989	2989	1471
2990	2990	software" means an item listed in Subsection (138)(b) if that item is purchased or
2991	2991	1472
2992	2992	leased primarily to enable or facilitate one or more of the following to function:
2993	2993	1473
2994	2994	(i) telecommunications switching or routing equipment, machinery, or software; or
2995	2995	1474
2996	2996	(ii) telecommunications transmission equipment, machinery, or software.
2997	2997	1475
2998	2998	(b) The following apply to Subsection (138)(a):
2999	2999	1476
3000	3000	(i) a pole;
3001	3001	1477
3002	3002	(ii) software;
3003	3003	1478
3004	3004	(iii) a supplementary power supply;
3005	3005	1479
3006	3006	(iv) temperature or environmental equipment or machinery;
3007	3007	1480
3008	3008	(v) test equipment;
3009	3009	1481
3010	3010	(vi) a tower; or
3011	3011	1482
3012	3012	(vii) equipment, machinery, or software that functions similarly to an item listed in
3013	3013	1483
3014	3014	Subsections (138)(b)(i) through (vi) as determined by the commission by rule
3015	3015	1484
3016	3016	made in accordance with Subsection (138)(c).
3017	3017	1485
3018	3018	(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3019	3019	1486
3020	3020	commission may by rule define what constitutes equipment, machinery, or software
3021	3021	1487
3022	3022	that functions similarly to an item listed in Subsections (138)(b)(i) through (vi).
3023	3023	1488
3024	3024	(139) "Telecommunications equipment, machinery, or software required for 911 service"
3025	3025	1489
3026	3026	means equipment, machinery, or software that is required to comply with 47 C.F.R. Sec.
3027	3027	1490
3028	3028	20.18.
3029	3029	1491
3030	3030	(140) "Telecommunications maintenance or repair equipment, machinery, or software"
3031	3031	1492
3032	3032	means equipment, machinery, or software purchased or leased primarily to maintain or
3033	3033	- 44 - 02-12 12:41 H.B. 489
3034	3034	1493
3035	3035	repair one or more of the following, regardless of whether the equipment, machinery, or
3036	3036	1494
3037	3037	software is purchased or leased as a spare part or as an upgrade or modification to one or
3038	3038	1495
3039	3039	more of the following:
3040	3040	1496
3041	3041	(a) telecommunications enabling or facilitating equipment, machinery, or software;
3042	3042	1497
3043	3043	(b) telecommunications switching or routing equipment, machinery, or software; or
3044	3044	1498
3045	3045	(c) telecommunications transmission equipment, machinery, or software.
3046	3046	1499
3047	3047	(141)(a) "Telecommunications service" means the electronic conveyance, routing, or
3048	3048	1500
3049	3049	transmission of audio, data, video, voice, or any other information or signal to a
3050	3050	1501
3051	3051	point, or among or between points.
3052	3052	1502
3053	3053	(b) "Telecommunications service" includes:
3054	3054	1503
3055	3055	(i) an electronic conveyance, routing, or transmission with respect to which a
3056	3056	1504
3057	3057	computer processing application is used to act:
3058	3058	1505
3059	3059	(A) on the code, form, or protocol of the content;
3060	3060	1506
3061	3061	(B) for the purpose of electronic conveyance, routing, or transmission; and
3062	3062	1507
3063	3063	(C) regardless of whether the service:
3064	3064	1508
3065	3065	(I) is referred to as voice over Internet protocol service; or
3066	3066	1509
3067	3067	(II) is classified by the Federal Communications Commission as enhanced or
3068	3068	1510
3069	3069	value added;
3070	3070	1511
3071	3071	(ii) an 800 service;
3072	3072	1512
3073	3073	(iii) a 900 service;
3074	3074	1513
3075	3075	(iv) a fixed wireless service;
3076	3076	1514
3077	3077	(v) a mobile wireless service;
3078	3078	1515
3079	3079	(vi) a postpaid calling service;
3080	3080	1516
3081	3081	(vii) a prepaid calling service;
3082	3082	1517
3083	3083	(viii) a prepaid wireless calling service; or
3084	3084	1518
3085	3085	(ix) a private communications service.
3086	3086	1519
3087	3087	(c) "Telecommunications service" does not include:
3088	3088	1520
3089	3089	(i) advertising, including directory advertising;
3090	3090	1521
3091	3091	(ii) an ancillary service;
3092	3092	1522
3093	3093	(iii) a billing and collection service provided to a third party;
3094	3094	1523
3095	3095	(iv) a data processing and information service if:
3096	3096	1524
3097	3097	(A) the data processing and information service allows data to be:
3098	3098	1525
3099	3099	(I)(Aa) acquired;
3100	3100	1526
3101	3101	(Bb) generated;
3102	3102	- 45 - H.B. 489 02-12 12:41
3103	3103	1527
3104	3104	(Cc) processed;
3105	3105	1528
3106	3106	(Dd) retrieved; or
3107	3107	1529
3108	3108	(Ee) stored; and
3109	3109	1530
3110	3110	(II) delivered by an electronic transmission to a purchaser; and
3111	3111	1531
3112	3112	(B) the purchaser's primary purpose for the underlying transaction is the processed
3113	3113	1532
3114	3114	data or information;
3115	3115	1533
3116	3116	(v) installation or maintenance of the following on a customer's premises:
3117	3117	1534
3118	3118	(A) equipment; or
3119	3119	1535
3120	3120	(B) wiring;
3121	3121	1536
3122	3122	(vi) Internet access service;
3123	3123	1537
3124	3124	(vii) a paging service;
3125	3125	1538
3126	3126	(viii) a product transferred electronically, including:
3127	3127	1539
3128	3128	(A) music;
3129	3129	1540
3130	3130	(B) reading material;
3131	3131	1541
3132	3132	(C) a ring tone;
3133	3133	1542
3134	3134	(D) software; or
3135	3135	1543
3136	3136	(E) video;
3137	3137	1544
3138	3138	(ix) a radio and television audio and video programming service:
3139	3139	1545
3140	3140	(A) regardless of the medium; and
3141	3141	1546
3142	3142	(B) including:
3143	3143	1547
3144	3144	(I) furnishing conveyance, routing, or transmission of a television audio and
3145	3145	1548
3146	3146	video programming service by a programming service provider;
3147	3147	1549
3148	3148	(II) cable service as defined in 47 U.S.C. Sec. 522(6); or
3149	3149	1550
3150	3150	(III) audio and video programming services delivered by a commercial mobile
3151	3151	1551
3152	3152	radio service provider as defined in 47 C.F.R. Sec. 20.3;
3153	3153	1552
3154	3154	(x) a value-added nonvoice data service; or
3155	3155	1553
3156	3156	(xi) tangible personal property.
3157	3157	1554
3158	3158	(142)(a) "Telecommunications service provider" means a person that:
3159	3159	1555
3160	3160	(i) owns, controls, operates, or manages a telecommunications service; and
3161	3161	1556
3162	3162	(ii) engages in an activity described in Subsection (142)(a)(i) for the shared use with
3163	3163	1557
3164	3164	or resale to any person of the telecommunications service.
3165	3165	1558
3166	3166	(b) A person described in Subsection (142)(a) is a telecommunications service provider
3167	3167	1559
3168	3168	whether or not the Public Service Commission of Utah regulates:
3169	3169	1560
3170	3170	(i) that person; or
3171	3171	- 46 - 02-12 12:41 H.B. 489
3172	3172	1561
3173	3173	(ii) the telecommunications service that the person owns, controls, operates, or
3174	3174	1562
3175	3175	manages.
3176	3176	1563
3177	3177	(143)(a) "Telecommunications switching or routing equipment, machinery, or software"
3178	3178	1564
3179	3179	means an item listed in Subsection (143)(b) if that item is purchased or leased
3180	3180	1565
3181	3181	primarily for switching or routing:
3182	3182	1566
3183	3183	(i) an ancillary service;
3184	3184	1567
3185	3185	(ii) data communications;
3186	3186	1568
3187	3187	(iii) voice communications; or
3188	3188	1569
3189	3189	(iv) telecommunications service.
3190	3190	1570
3191	3191	(b) The following apply to Subsection (143)(a):
3192	3192	1571
3193	3193	(i) a bridge;
3194	3194	1572
3195	3195	(ii) a computer;
3196	3196	1573
3197	3197	(iii) a cross connect;
3198	3198	1574
3199	3199	(iv) a modem;
3200	3200	1575
3201	3201	(v) a multiplexer;
3202	3202	1576
3203	3203	(vi) plug in circuitry;
3204	3204	1577
3205	3205	(vii) a router;
3206	3206	1578
3207	3207	(viii) software;
3208	3208	1579
3209	3209	(ix) a switch; or
3210	3210	1580
3211	3211	(x) equipment, machinery, or software that functions similarly to an item listed in
3212	3212	1581
3213	3213	Subsections (143)(b)(i) through (ix) as determined by the commission by rule
3214	3214	1582
3215	3215	made in accordance with Subsection (143)(c).
3216	3216	1583
3217	3217	(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3218	3218	1584
3219	3219	commission may by rule define what constitutes equipment, machinery, or software
3220	3220	1585
3221	3221	that functions similarly to an item listed in Subsections (143)(b)(i) through (ix).
3222	3222	1586
3223	3223	(144)(a) "Telecommunications transmission equipment, machinery, or software" means
3224	3224	1587
3225	3225	an item listed in Subsection (144)(b) if that item is purchased or leased primarily for
3226	3226	1588
3227	3227	sending, receiving, or transporting:
3228	3228	1589
3229	3229	(i) an ancillary service;
3230	3230	1590
3231	3231	(ii) data communications;
3232	3232	1591
3233	3233	(iii) voice communications; or
3234	3234	1592
3235	3235	(iv) telecommunications service.
3236	3236	1593
3237	3237	(b) The following apply to Subsection (144)(a):
3238	3238	1594
3239	3239	(i) an amplifier;
3240	3240	- 47 - H.B. 489 02-12 12:41
3241	3241	1595
3242	3242	(ii) a cable;
3243	3243	1596
3244	3244	(iii) a closure;
3245	3245	1597
3246	3246	(iv) a conduit;
3247	3247	1598
3248	3248	(v) a controller;
3249	3249	1599
3250	3250	(vi) a duplexer;
3251	3251	1600
3252	3252	(vii) a filter;
3253	3253	1601
3254	3254	(viii) an input device;
3255	3255	1602
3256	3256	(ix) an input/output device;
3257	3257	1603
3258	3258	(x) an insulator;
3259	3259	1604
3260	3260	(xi) microwave machinery or equipment;
3261	3261	1605
3262	3262	(xii) an oscillator;
3263	3263	1606
3264	3264	(xiii) an output device;
3265	3265	1607
3266	3266	(xiv) a pedestal;
3267	3267	1608
3268	3268	(xv) a power converter;
3269	3269	1609
3270	3270	(xvi) a power supply;
3271	3271	1610
3272	3272	(xvii) a radio channel;
3273	3273	1611
3274	3274	(xviii) a radio receiver;
3275	3275	1612
3276	3276	(xix) a radio transmitter;
3277	3277	1613
3278	3278	(xx) a repeater;
3279	3279	1614
3280	3280	(xxi) software;
3281	3281	1615
3282	3282	(xxii) a terminal;
3283	3283	1616
3284	3284	(xxiii) a timing unit;
3285	3285	1617
3286	3286	(xxiv) a transformer;
3287	3287	1618
3288	3288	(xxv) a wire; or
3289	3289	1619
3290	3290	(xxvi) equipment, machinery, or software that functions similarly to an item listed in
3291	3291	1620
3292	3292	Subsections (144)(b)(i) through (xxv) as determined by the commission by rule
3293	3293	1621
3294	3294	made in accordance with Subsection (144)(c).
3295	3295	1622
3296	3296	(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3297	3297	1623
3298	3298	commission may by rule define what constitutes equipment, machinery, or software
3299	3299	1624
3300	3300	that functions similarly to an item listed in Subsections (144)(b)(i) through (xxv).
3301	3301	1625
3302	3302	(145)(a) "Textbook for a higher education course" means a textbook or other printed
3303	3303	1626
3304	3304	material that is required for a course:
3305	3305	1627
3306	3306	(i) offered by an institution of higher education; and
3307	3307	1628
3308	3308	(ii) that the purchaser of the textbook or other printed material attends or will attend.
3309	3309	- 48 - 02-12 12:41 H.B. 489
3310	3310	1629
3311	3311	(b) "Textbook for a higher education course" includes a textbook in electronic format.
3312	3312	1630
3313	3313	(146) "Tobacco" means:
3314	3314	1631
3315	3315	(a) a cigarette;
3316	3316	1632
3317	3317	(b) a cigar;
3318	3318	1633
3319	3319	(c) chewing tobacco;
3320	3320	1634
3321	3321	(d) pipe tobacco; or
3322	3322	1635
3323	3323	(e) any other item that contains tobacco.
3324	3324	1636
3325	3325	(147) "Unassisted amusement device" means an amusement device, skill device, or ride
3326	3326	1637
3327	3327	device that is started and stopped by the purchaser or renter of the right to use or operate
3328	3328	1638
3329	3329	the amusement device, skill device, or ride device.
3330	3330	1639
3331	3331	(148)(a) "Use" means the exercise of any right or power over tangible personal property,
3332	3332	1640
3333	3333	a product transferred electronically, or a service under Subsection 59-12-103(1),
3334	3334	1641
3335	3335	incident to the ownership or the leasing of that tangible personal property, product
3336	3336	1642
3337	3337	transferred electronically, or service.
3338	3338	1643
3339	3339	(b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
3340	3340	1644
3341	3341	property, a product transferred electronically, or a service in the regular course of
3342	3342	1645
3343	3343	business and held for resale.
3344	3344	1646
3345	3345	(149) "Value-added nonvoice data service" means a service:
3346	3346	1647
3347	3347	(a) that otherwise meets the definition of a telecommunications service except that a
3348	3348	1648
3349	3349	computer processing application is used to act primarily for a purpose other than
3350	3350	1649
3351	3351	conveyance, routing, or transmission; and
3352	3352	1650
3353	3353	(b) with respect to which a computer processing application is used to act on data or
3354	3354	1651
3355	3355	information:
3356	3356	1652
3357	3357	(i) code;
3358	3358	1653
3359	3359	(ii) content;
3360	3360	1654
3361	3361	(iii) form; or
3362	3362	1655
3363	3363	(iv) protocol.
3364	3364	1656
3365	3365	(150)(a) Subject to Subsection (150)(b), "vehicle" means the following that are required
3366	3366	1657
3367	3367	to be titled, registered, or titled and registered:
3368	3368	1658
3369	3369	(i) an aircraft as defined in Section 72-10-102;
3370	3370	1659
3371	3371	(ii) a vehicle as defined in Section 41-1a-102;
3372	3372	1660
3373	3373	(iii) an off-highway vehicle as defined in Section 41-22-2; or
3374	3374	1661
3375	3375	(iv) a vessel as defined in Section 41-1a-102.
3376	3376	1662
3377	3377	(b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
3378	3378	- 49 - H.B. 489 02-12 12:41
3379	3379	1663
3380	3380	(i) a vehicle described in Subsection (150)(a); or
3381	3381	1664
3382	3382	(ii)(A) a locomotive;
3383	3383	1665
3384	3384	(B) a freight car;
3385	3385	1666
3386	3386	(C) railroad work equipment; or
3387	3387	1667
3388	3388	(D) other railroad rolling stock.
3389	3389	1668
3390	3390	(151) "Vehicle dealer" means a person engaged in the business of buying, selling, or
3391	3391	1669
3392	3392	exchanging a vehicle as defined in Subsection (150).
3393	3393	1670
3394	3394	(152)(a) "Vertical service" means an ancillary service that:
3395	3395	1671
3396	3396	(i) is offered in connection with one or more telecommunications services; and
3397	3397	1672
3398	3398	(ii) offers an advanced calling feature that allows a customer to:
3399	3399	1673
3400	3400	(A) identify a caller; and
3401	3401	1674
3402	3402	(B) manage multiple calls and call connections.
3403	3403	1675
3404	3404	(b) "Vertical service" includes an ancillary service that allows a customer to manage a
3405	3405	1676
3406	3406	conference bridging service.
3407	3407	1677
3408	3408	(153)(a) "Voice mail service" means an ancillary service that enables a customer to
3409	3409	1678
3410	3410	receive, send, or store a recorded message.
3411	3411	1679
3412	3412	(b) "Voice mail service" does not include a vertical service that a customer is required to
3413	3413	1680
3414	3414	have in order to utilize a voice mail service.
3415	3415	1681
3416	3416	(154)(a) "Waste energy facility" means a facility that generates electricity:
3417	3417	1682
3418	3418	(i) using as the primary source of energy waste materials that would be placed in a
3419	3419	1683
3420	3420	landfill or refuse pit if it were not used to generate electricity, including:
3421	3421	1684
3422	3422	(A) tires;
3423	3423	1685
3424	3424	(B) waste coal;
3425	3425	1686
3426	3426	(C) oil shale; or
3427	3427	1687
3428	3428	(D) municipal solid waste; and
3429	3429	1688
3430	3430	(ii) in amounts greater than actually required for the operation of the facility.
3431	3431	1689
3432	3432	(b) "Waste energy facility" does not include a facility that incinerates:
3433	3433	1690
3434	3434	(i) hospital waste as defined in 40 C.F.R. 60.51c; or
3435	3435	1691
3436	3436	(ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
3437	3437	1692
3438	3438	(155) "Watercraft" means a vessel as defined in Section 73-18-2.
3439	3439	1693
3440	3440	(156) "Wind energy" means wind used as the sole source of energy to produce electricity.
3441	3441	1694
3442	3442	(157) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
3443	3443	1695
3444	3444	location by the United States Postal Service.
3445	3445	1696
3446	3446	Section 2. Effective Date.
3447	3447	- 50 - 02-12 12:41 H.B. 489
3448	3448	1697
3449	3449	This bill takes effect on July 1, 2025.
3450	3450	- 51 -