Utah House Bill HB0489 Latest Draft

                            02-12 12:41  H.B. 489
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Eyewear Sales Tax Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: A. Cory Maloy
Senate Sponsor:
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LONG TITLE
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General Description:
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This bill amends provisions related to the sales and use tax on corrective eyeglasses and
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contact lenses.
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Highlighted Provisions:
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This bill:
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▸ amends definitions to include corrective eyeglasses and contact lenses within the
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definition of "prosthetic device," which has the effect of exempting these items from
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sales and use tax.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides a special effective date.
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Utah Code Sections Affected:
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AMENDS:
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59-12-102, as last amended by Laws of Utah 2024, Chapter 274
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Be it enacted by the Legislature of the state of Utah:
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Section 1.  Section 59-12-102 is amended to read:
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59-12-102 . Definitions.
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      As used in this chapter:
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(1) "800 service" means a telecommunications service that:
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(a) allows a caller to dial a toll-free number without incurring a charge for the call; and
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(b) is typically marketed:
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(i) under the name 800 toll-free calling;
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(ii) under the name 855 toll-free calling;
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(iii) under the name 866 toll-free calling;
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(iv) under the name 877 toll-free calling;
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(v) under the name 888 toll-free calling; or
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(vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
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Federal Communications Commission.
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(2)(a) "900 service" means an inbound toll telecommunications service that:
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(i) a subscriber purchases;
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(ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
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the subscriber's:
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(A) prerecorded announcement; or
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(B) live service; and
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(iii) is typically marketed:
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(A) under the name 900 service; or
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(B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
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Communications Commission.
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(b) "900 service" does not include a charge for:
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(i) a collection service a seller of a telecommunications service provides to a
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subscriber; or
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(ii) the following a subscriber sells to the subscriber's customer:
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(A) a product; or
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(B) a service.
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(3)(a) "Admission or user fees" includes season passes.
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(b) "Admission or user fees" does not include:
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(i) annual membership dues to private organizations; or
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(ii) a lesson, including a lesson that involves as part of the lesson equipment or a
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facility listed in Subsection 59-12-103(1)(f).
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(4) "Affiliate" or "affiliated person" means a person that, with respect to another person:
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(a) has an ownership interest of more than 5%, whether direct or indirect, in that other
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person; or
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(b) is related to the other person because a third person, or a group of third persons who
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are affiliated persons with respect to each other, holds an ownership interest of more
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than 5%, whether direct or indirect, in the related persons.
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(5) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
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November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
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Agreement after November 12, 2002.
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(6) "Agreement combined tax rate" means the sum of the tax rates:
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(a) listed under Subsection (7); and
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(b) that are imposed within a local taxing jurisdiction.
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(7) "Agreement sales and use tax" means a tax imposed under:
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(a) Subsection 59-12-103(2)(a)(i)(A);
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(b) Subsection 59-12-103(2)(b)(i);
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(c) Subsection 59-12-103(2)(c)(i);
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(d) Subsection 59-12-103(2)(d);
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(e) Subsection 59-12-103(2)(e)(i)(A)(I);
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(f) Section 59-12-204;
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(g) Section 59-12-401;
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(h) Section 59-12-402;
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(i) Section 59-12-402.1;
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(j) Section 59-12-703;
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(k) Section 59-12-802;
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(l) Section 59-12-804;
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(m) Section 59-12-1102;
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(n) Section 59-12-1302;
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(o) Section 59-12-1402;
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(p) Section 59-12-1802;
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(q) Section 59-12-2003;
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(r) Section 59-12-2103;
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(s) Section 59-12-2213;
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(t) Section 59-12-2214;
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(u) Section 59-12-2215;
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(v) Section 59-12-2216;
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(w) Section 59-12-2217;
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(x) Section 59-12-2218;
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(y) Section 59-12-2219; or
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(z) Section 59-12-2220.
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(8) "Aircraft" means the same as that term is defined in Section 72-10-102.
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(9) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
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(a) except for:
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(i) an airline as defined in Section 59-2-102; or
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(ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
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includes a corporation that is qualified to do business but is not otherwise doing
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business in the state, of an airline; and
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(b) that has the workers, expertise, and facilities to perform the following, regardless of
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whether the business entity performs the following in this state:
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(i) check, diagnose, overhaul, and repair:
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(A) an onboard system of a fixed wing turbine powered aircraft; and
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(B) the parts that comprise an onboard system of a fixed wing turbine powered
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aircraft;
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(ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered
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aircraft engine;
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(iii) perform at least the following maintenance on a fixed wing turbine powered
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aircraft:
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(A) an inspection;
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(B) a repair, including a structural repair or modification;
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(C) changing landing gear; and
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(D) addressing issues related to an aging fixed wing turbine powered aircraft;
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(iv) completely remove the existing paint of a fixed wing turbine powered aircraft
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and completely apply new paint to the fixed wing turbine powered aircraft; and
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(v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
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results in a change in the fixed wing turbine powered aircraft's certification
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requirements by the authority that certifies the fixed wing turbine powered aircraft.
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(10) "Alcoholic beverage" means a beverage that:
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(a) is suitable for human consumption; and
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(b) contains .5% or more alcohol by volume.
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(11) "Alternative energy" means:
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(a) biomass energy;
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(b) geothermal energy;
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(c) hydroelectric energy;
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(d) solar energy;
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(e) wind energy; or
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(f) energy that is derived from:
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(i) coal-to-liquids;
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(ii) nuclear fuel;
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(iii) oil-impregnated diatomaceous earth;
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(iv) oil sands;
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(v) oil shale;
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(vi) petroleum coke; or
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(vii) waste heat from:
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(A) an industrial facility; or
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(B) a power station in which an electric generator is driven through a process in
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which water is heated, turns into steam, and spins a steam turbine.
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(12)(a) Subject to Subsection (12)(b), "alternative energy electricity production facility"
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means a facility that:
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(i) uses alternative energy to produce electricity; and
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(ii) has a production capacity of two megawatts or greater.
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(b) A facility is an alternative energy electricity production facility regardless of whether
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the facility is:
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(i) connected to an electric grid; or
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(ii) located on the premises of an electricity consumer.
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(13)(a) "Ancillary service" means a service associated with, or incidental to, the
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provision of telecommunications service.
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(b) "Ancillary service" includes:
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(i) a conference bridging service;
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(ii) a detailed communications billing service;
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(iii) directory assistance;
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(iv) a vertical service; or
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(v) a voice mail service.
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(14) "Area agency on aging" means the same as that term is defined in Section 26B-6-101.
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(15) "Assisted amusement device" means an amusement device, skill device, or ride device
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that is started and stopped by an individual:
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(a) who is not the purchaser or renter of the right to use or operate the amusement
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device, skill device, or ride device; and
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(b) at the direction of the seller of the right to use the amusement device, skill device, or
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ride device.
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(16) "Assisted cleaning or washing of tangible personal property" means cleaning or
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washing of tangible personal property if the cleaning or washing labor is primarily
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performed by an individual:
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(a) who is not the purchaser of the cleaning or washing of the tangible personal property;
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and
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(b) at the direction of the seller of the cleaning or washing of the tangible personal
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property.
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(17) "Authorized carrier" means:
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(a) in the case of vehicles operated over public highways, the holder of credentials
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indicating that the vehicle is or will be operated pursuant to both the International
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Registration Plan and the International Fuel Tax Agreement;
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(b) in the case of aircraft, the holder of a Federal Aviation Administration operating
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certificate or air carrier's operating certificate; or
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(c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
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stock, a person who uses locomotives, freight cars, railroad work equipment, or other
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rolling stock in more than one state.
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(18)(a) "Biomass energy" means any of the following that is used as the primary source
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of energy to produce fuel or electricity:
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(i) material from a plant or tree; or
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(ii) other organic matter that is available on a renewable basis, including:
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(A) slash and brush from forests and woodlands;
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(B) animal waste;
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(C) waste vegetable oil;
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(D) methane or synthetic gas produced at a landfill, as a byproduct of the
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treatment of wastewater residuals, or through the conversion of a waste
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material through a nonincineration, thermal conversion process;
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(E) aquatic plants; and
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(F) agricultural products.
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(b) "Biomass energy" does not include:
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(i) black liquor; or
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(ii) treated woods.
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(19)(a) "Bundled transaction" means the sale of two or more items of tangible personal
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property, products, or services if the tangible personal property, products, or services
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are:
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(i) distinct and identifiable; and
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(ii) sold for one nonitemized price.
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(b) "Bundled transaction" does not include:
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(i) the sale of tangible personal property if the sales price varies, or is negotiable, on
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the basis of the selection by the purchaser of the items of tangible personal
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property included in the transaction;
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(ii) the sale of real property;
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(iii) the sale of services to real property;
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(iv) the retail sale of tangible personal property and a service if:
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(A) the tangible personal property:
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(I) is essential to the use of the service; and
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(II) is provided exclusively in connection with the service; and
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(B) the service is the true object of the transaction;
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(v) the retail sale of two services if:
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(A) one service is provided that is essential to the use or receipt of a second
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service;
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(B) the first service is provided exclusively in connection with the second service;
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and
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(C) the second service is the true object of the transaction;
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(vi) a transaction that includes tangible personal property or a product subject to
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taxation under this chapter and tangible personal property or a product that is not
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subject to taxation under this chapter if the:
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(A) seller's purchase price of the tangible personal property or product subject to
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taxation under this chapter is de minimis; or
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(B) seller's sales price of the tangible personal property or product subject to
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taxation under this chapter is de minimis; and
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(vii) the retail sale of tangible personal property that is not subject to taxation under
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this chapter and tangible personal property that is subject to taxation under this
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chapter if:
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(A) that retail sale includes:
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(I) food and food ingredients;
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(II) a drug;
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(III) durable medical equipment;
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(IV) mobility enhancing equipment;
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(V) an over-the-counter drug;
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(VI) a prosthetic device; or
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(VII) a medical supply; and
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(B) subject to Subsection (19)(f):
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(I) the seller's purchase price of the tangible personal property subject to
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taxation under this chapter is 50% or less of the seller's total purchase price
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of that retail sale; or
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(II) the seller's sales price of the tangible personal property subject to taxation
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under this chapter is 50% or less of the seller's total sales price of that retail
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sale.
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(c)(i) For purposes of Subsection (19)(a)(i), tangible personal property, a product, or
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a service that is distinct and identifiable does not include:
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(A) packaging that:
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(I) accompanies the sale of the tangible personal property, product, or service;
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and
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(II) is incidental or immaterial to the sale of the tangible personal property,
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product, or service;
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(B) tangible personal property, a product, or a service provided free of charge with
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the purchase of another item of tangible personal property, a product, or a
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service; or
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(C) an item of tangible personal property, a product, or a service included in the
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definition of "purchase price."
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(ii) For purposes of Subsection (19)(c)(i)(B), an item of tangible personal property, a
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product, or a service is provided free of charge with the purchase of another item
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of tangible personal property, a product, or a service if the sales price of the
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purchased item of tangible personal property, product, or service does not vary
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depending on the inclusion of the tangible personal property, product, or service
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provided free of charge.
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(d)(i) For purposes of Subsection (19)(a)(ii), property sold for one nonitemized price
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does not include a price that is separately identified by tangible personal property,
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product, or service on the following, regardless of whether the following is in
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paper format or electronic format:
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(A) a binding sales document; or
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(B) another supporting sales-related document that is available to a purchaser.
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(ii) For purposes of Subsection (19)(d)(i), a binding sales document or another
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supporting sales-related document that is available to a purchaser includes:
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(A) a bill of sale;
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(B) a contract;
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(C) an invoice;
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(D) a lease agreement;
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(E) a periodic notice of rates and services;
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(F) a price list;
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(G) a rate card;
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(H) a receipt; or
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(I) a service agreement.
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(e)(i) For purposes of Subsection (19)(b)(vi), the sales price of tangible personal
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property or a product subject to taxation under this chapter is de minimis if:
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(A) the seller's purchase price of the tangible personal property or product is 10%
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or less of the seller's total purchase price of the bundled transaction; or
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(B) the seller's sales price of the tangible personal property or product is 10% or
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less of the seller's total sales price of the bundled transaction.
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(ii) For purposes of Subsection (19)(b)(vi), a seller:
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(A) shall use the seller's purchase price or the seller's sales price to determine if
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the purchase price or sales price of the tangible personal property or product
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subject to taxation under this chapter is de minimis; and
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(B) may not use a combination of the seller's purchase price and the seller's sales
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price to determine if the purchase price or sales price of the tangible personal
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property or product subject to taxation under this chapter is de minimis.
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(iii) For purposes of Subsection (19)(b)(vi), a seller shall use the full term of a service
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contract to determine if the sales price of tangible personal property or a product is
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de minimis.
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(f) For purposes of Subsection (19)(b)(vii)(B), a seller may not use a combination of the
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seller's purchase price and the seller's sales price to determine if tangible personal
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property subject to taxation under this chapter is 50% or less of the seller's total
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purchase price or sales price of that retail sale.
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(20) "Car sharing" means the same as that term is defined in Section 13-48a-101.
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(21) "Car-sharing program" means the same as that term is defined in Section 13-48a-101.
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(22) "Certified automated system" means software certified by the governing board of the
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agreement that:
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(a) calculates the agreement sales and use tax imposed within a local taxing jurisdiction:
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(i) on a transaction; and
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(ii) in the states that are members of the agreement;
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(b) determines the amount of agreement sales and use tax to remit to a state that is a
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member of the agreement; and
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(c) maintains a record of the transaction described in Subsection (22)(a)(i).
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(23) "Certified service provider" means an agent certified:
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(a) by the governing board of the agreement; and
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(b) to perform a seller's sales and use tax functions for an agreement sales and use tax, as
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outlined in the contract between the governing board of the agreement and the
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certified service provider, other than the seller's obligation under Section 59-12-124
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to remit a tax on the seller's own purchases.
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(24)(a) Subject to Subsection (24)(b), "clothing" means all human wearing apparel
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suitable for general use.
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(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
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commission shall make rules:
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(i) listing the items that constitute "clothing"; and
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(ii) that are consistent with the list of items that constitute "clothing" under the
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agreement.
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(25) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
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(26) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels
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that does not constitute industrial use under Subsection (60) or residential use under
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Subsection (115).
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(27)(a) "Common carrier" means a person engaged in or transacting the business of
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transporting passengers, freight, merchandise, or other property for hire within this
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state.
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(b)(i) "Common carrier" does not include a person that, at the time the person is
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traveling to or from that person's place of employment, transports a passenger to
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or from the passenger's place of employment.
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(ii) For purposes of Subsection (27)(b)(i), in accordance with Title 63G, Chapter 3,
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Utah Administrative Rulemaking Act, the commission may make rules defining
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what constitutes a person's place of employment.
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(c) "Common carrier" does not include a person that provides transportation network
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services, as defined in Section 13-51-102.
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(28) "Component part" includes:
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(a) poultry, dairy, and other livestock feed, and their components;
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(b) baling ties and twine used in the baling of hay and straw;
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(c) fuel used for providing temperature control of orchards and commercial greenhouses
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doing a majority of their business in wholesale sales, and for providing power for
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off-highway type farm machinery; and
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(d) feed, seeds, and seedlings.
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(29) "Computer" means an electronic device that accepts information:
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(a)(i) in digital form; or
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(ii) in a form similar to digital form; and
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(b) manipulates that information for a result based on a sequence of instructions.
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(30) "Computer software" means a set of coded instructions designed to cause:
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(a) a computer to perform a task; or
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(b) automatic data processing equipment to perform a task.
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(31) "Computer software maintenance contract" means a contract that obligates a seller of
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computer software to provide a customer with:
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(a) future updates or upgrades to computer software;
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(b) support services with respect to computer software; or
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(c) a combination of Subsections (31)(a) and (b).
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(32)(a) "Conference bridging service" means an ancillary service that links two or more
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participants of an audio conference call or video conference call.
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(b) "Conference bridging service" may include providing a telephone number as part of
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the ancillary service described in Subsection (32)(a).
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(c) "Conference bridging service" does not include a telecommunications service used to
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reach the ancillary service described in Subsection (32)(a).
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(33) "Construction materials" means any tangible personal property that will be converted
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into real property.
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(34) "Delivered electronically" means delivered to a purchaser by means other than tangible
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storage media.
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(35)(a) "Delivery charge" means a charge:
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(i) by a seller of:
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(A) tangible personal property;
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(B) a product transferred electronically; or
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(C) a service; and
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(ii) for preparation and delivery of the tangible personal property, product transferred
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electronically, or services described in Subsection (35)(a)(i) to a location
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designated by the purchaser.
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(b) "Delivery charge" includes a charge for the following:
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(i) transportation;
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(ii) shipping;
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(iii) postage;
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(iv) handling;
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(v) crating; or
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(vi) packing.
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(36) "Detailed telecommunications billing service" means an ancillary service of separately
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stating information pertaining to individual calls on a customer's billing statement.
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(37) "Dietary supplement" means a product, other than tobacco, that:
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(a) is intended to supplement the diet;
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(b) contains one or more of the following dietary ingredients:
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(i) a vitamin;
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(ii) a mineral;
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(iii) an herb or other botanical;
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(iv) an amino acid;
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(v) a dietary substance for use by humans to supplement the diet by increasing the
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total dietary intake; or
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(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
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described in Subsections (37)(b)(i) through (v);
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(c)(i) except as provided in Subsection (37)(c)(ii), is intended for ingestion in:
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(A) tablet form;
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(B) capsule form;
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(C) powder form;
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(D) softgel form;
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(E) gelcap form; or
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(F) liquid form; or
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(ii) if the product is not intended for ingestion in a form described in Subsections
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(37)(c)(i)(A) through (F), is not represented:
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(A) as conventional food; and
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(B) for use as a sole item of:
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(I) a meal; or
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(II) the diet; and
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(d) is required to be labeled as a dietary supplement:
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(i) identifiable by the "Supplemental Facts" box found on the label; and
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(ii) as required by 21 C.F.R. Sec. 101.36.
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(38)(a) "Digital audio work" means a work that results from the fixation of a series of
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musical, spoken, or other sounds.
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(b) "Digital audio work" includes a ringtone.
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(39) "Digital audio-visual work" means a series of related images which, when shown in
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succession, imparts an impression of motion, together with accompanying sounds, if any.
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(40) "Digital book" means a work that is generally recognized in the ordinary and usual
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sense as a book.
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(41)(a) "Direct mail" means printed material delivered or distributed by United States
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mail or other delivery service:
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(i) to:
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(A) a mass audience; or
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(B) addressees on a mailing list provided:
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(I) by a purchaser of the mailing list; or
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(II) at the discretion of the purchaser of the mailing list; and
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(ii) if the cost of the printed material is not billed directly to the recipients.
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(b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
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purchaser to a seller of direct mail for inclusion in a package containing the printed
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material.
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(c) "Direct mail" does not include multiple items of printed material delivered to a single
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address.
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(42) "Directory assistance" means an ancillary service of providing:
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(a) address information; or
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(b) telephone number information.
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(43)(a) "Disposable home medical equipment or supplies" means medical equipment or
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supplies that:
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(i) cannot withstand repeated use; and
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(ii) are purchased by, for, or on behalf of a person other than:
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(A) a health care facility as defined in Section 26B-2-201;
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(B) a health care provider as defined in Section 78B-3-403;
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(C) an office of a health care provider described in Subsection (43)(a)(ii)(B); or
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(D) a person similar to a person described in Subsections (43)(a)(ii)(A) through
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(C).
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(b) "Disposable home medical equipment or supplies" does not include:
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(i) a drug;
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(ii) durable medical equipment;
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(iii) a hearing aid;
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(iv) a hearing aid accessory;
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(v) mobility enhancing equipment; or
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(vi) tangible personal property used to correct impaired vision, including:
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(A) eyeglasses; or
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(B) contact lenses.
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(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
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commission may by rule define what constitutes medical equipment or supplies.
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(44) "Drilling equipment manufacturer" means a facility:
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(a) located in the state;
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(b) with respect to which 51% or more of the manufacturing activities of the facility
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consist of manufacturing component parts of drilling equipment;
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(c) that uses pressure of 800,000 or more pounds per square inch as part of the
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manufacturing process; and
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(d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
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manufacturing process.
458 
(45)(a) "Drug" means a compound, substance, or preparation, or a component of a
459 
compound, substance, or preparation that is:
460 
(i) recognized in:
461 
(A) the official United States Pharmacopoeia;
462 
(B) the official Homeopathic Pharmacopoeia of the United States;
463 
(C) the official National Formulary; or
464 
(D) a supplement to a publication listed in Subsections (45)(a)(i)(A) through (C);
465 
(ii) intended for use in the:
466 
(A) diagnosis of disease;
467 
(B) cure of disease;
468 
(C) mitigation of disease;
469 
(D) treatment of disease; or
470 
(E) prevention of disease; or
471 
(iii) intended to affect:
472 
(A) the structure of the body; or
- 14 - 02-12 12:41  H.B. 489
473 
(B) any function of the body.
474 
(b) "Drug" does not include:
475 
(i) food and food ingredients;
476 
(ii) a dietary supplement;
477 
(iii) an alcoholic beverage; or
478 
(iv) a prosthetic device.
479 
(46)(a) "Durable medical equipment" means equipment that:
480 
(i) can withstand repeated use;
481 
(ii) is primarily and customarily used to serve a medical purpose;
482 
(iii) generally is not useful to a person in the absence of illness or injury; and
483 
(iv) is not worn in or on the body.
484 
(b) "Durable medical equipment" includes parts used in the repair or replacement of the
485 
equipment described in Subsection (46)(a).
486 
(c) "Durable medical equipment" does not include mobility enhancing equipment.
487 
(47) "Electronic" means:
488 
(a) relating to technology; and
489 
(b) having:
490 
(i) electrical capabilities;
491 
(ii) digital capabilities;
492 
(iii) magnetic capabilities;
493 
(iv) wireless capabilities;
494 
(v) optical capabilities;
495 
(vi) electromagnetic capabilities; or
496 
(vii) capabilities similar to Subsections (47)(b)(i) through (vi).
497 
(48) "Electronic financial payment service" means an establishment:
498 
(a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
499 
Clearinghouse Activities, of the 2012 North American Industry Classification System
500 
of the federal Executive Office of the President, Office of Management and Budget;
501 
and
502 
(b) that performs electronic financial payment services.
503 
(49) "Employee" means the same as that term is defined in Section 59-10-401.
504 
(50) "Fixed guideway" means a public transit facility that uses and occupies:
505 
(a) rail for the use of public transit; or
506 
(b) a separate right-of-way for the use of public transit.
- 15 -  H.B. 489	02-12 12:41
507 
(51) "Fixed wing turbine powered aircraft" means an aircraft that:
508 
(a) is powered by turbine engines;
509 
(b) operates on jet fuel; and
510 
(c) has wings that are permanently attached to the fuselage of the aircraft.
511 
(52) "Fixed wireless service" means a telecommunications service that provides radio
512 
communication between fixed points.
513 
(53)(a) "Food and food ingredients" means substances:
514 
(i) regardless of whether the substances are in:
515 
(A) liquid form;
516 
(B) concentrated form;
517 
(C) solid form;
518 
(D) frozen form;
519 
(E) dried form; or
520 
(F) dehydrated form; and
521 
(ii) that are:
522 
(A) sold for:
523 
(I) ingestion by humans; or
524 
(II) chewing by humans; and
525 
(B) consumed for the substance's:
526 
(I) taste; or
527 
(II) nutritional value.
528 
(b) "Food and food ingredients" includes an item described in Subsection (99)(b)(iii).
529 
(c) "Food and food ingredients" does not include:
530 
(i) an alcoholic beverage;
531 
(ii) tobacco; or
532 
(iii) prepared food.
533 
(54)(a) "Fundraising sales" means sales:
534 
(i)(A) made by a school; or
535 
(B) made by a school student;
536 
(ii) that are for the purpose of raising funds for the school to purchase equipment,
537 
materials, or provide transportation; and
538 
(iii) that are part of an officially sanctioned school activity.
539 
(b) For purposes of Subsection (54)(a)(iii), "officially sanctioned school activity" means
540 
a school activity:
- 16 - 02-12 12:41  H.B. 489
541 
(i) that is conducted in accordance with a formal policy adopted by the school or
542 
school district governing the authorization and supervision of fundraising
543 
activities;
544 
(ii) that does not directly or indirectly compensate an individual teacher or other
545 
educational personnel by direct payment, commissions, or payment in kind; and
546 
(iii) the net or gross revenue from which is deposited in a dedicated account
547 
controlled by the school or school district.
548 
(55) "Geothermal energy" means energy contained in heat that continuously flows outward
549 
from the earth that is used as the sole source of energy to produce electricity.
550 
(56) "Governing board of the agreement" means the governing board of the agreement that
551 
is:
552 
(a) authorized to administer the agreement; and
553 
(b) established in accordance with the agreement.
554 
(57)(a) For purposes of Subsection 59-12-104(41), "governmental entity" means:
555 
(i) the executive branch of the state, including all departments, institutions, boards,
556 
divisions, bureaus, offices, commissions, and committees;
557 
(ii) the judicial branch of the state, including the courts, the Judicial Council, the
558 
Administrative Office of the Courts, and similar administrative units in the
559 
judicial branch;
560 
(iii) the legislative branch of the state, including the House of Representatives, the
561 
Senate, the Legislative Printing Office, the Office of Legislative Research and
562 
General Counsel, the Office of the Legislative Auditor General, and the Office of
563 
the Legislative Fiscal Analyst;
564 
(iv) the National Guard;
565 
(v) an independent entity as defined in Section 63E-1-102; or
566 
(vi) a political subdivision as defined in Section 17B-1-102.
567 
(b) "Governmental entity" does not include the state systems of public and higher
568 
education, including:
569 
(i) a school;
570 
(ii) the State Board of Education;
571 
(iii) the Utah Board of Higher Education; or
572 
(iv) an institution of higher education described in Section 53B-1-102.
573 
(58) "Hydroelectric energy" means water used as the sole source of energy to produce
574 
electricity.
- 17 -  H.B. 489	02-12 12:41
575 
(59) "Individual-owned shared vehicle" means the same as that term is defined in Section
576 
13-48a-101.
577 
(60) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or other
578 
fuels:
579 
(a) in mining or extraction of minerals;
580 
(b) in agricultural operations to produce an agricultural product up to the time of harvest
581 
or placing the agricultural product into a storage facility, including:
582 
(i) commercial greenhouses;
583 
(ii) irrigation pumps;
584 
(iii) farm machinery;
585 
(iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
586 
under Title 41, Chapter 1a, Part 2, Registration; and
587 
(v) other farming activities;
588 
(c) in manufacturing tangible personal property at an establishment described in:
589 
(i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
590 
the federal Executive Office of the President, Office of Management and Budget;
591 
or
592 
(ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
593 
American Industry Classification System of the federal Executive Office of the
594 
President, Office of Management and Budget;
595 
(d) by a scrap recycler if:
596 
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to
597 
process one or more of the following items into prepared grades of processed
598 
materials for use in new products:
599 
(A) iron;
600 
(B) steel;
601 
(C) nonferrous metal;
602 
(D) paper;
603 
(E) glass;
604 
(F) plastic;
605 
(G) textile; or
606 
(H) rubber; and
607 
(ii) the new products under Subsection (60)(d)(i) would otherwise be made with
608 
nonrecycled materials; or
- 18 - 02-12 12:41  H.B. 489
609 
(e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
610 
cogeneration facility as defined in Section 54-2-1.
611 
(61)(a) "Installation charge" means a charge for installing:
612 
(i) tangible personal property; or
613 
(ii) a product transferred electronically.
614 
(b) "Installation charge" does not include a charge for:
615 
(i) repairs or renovations of:
616 
(A) tangible personal property; or
617 
(B) a product transferred electronically; or
618 
(ii) attaching tangible personal property or a product transferred electronically:
619 
(A) to other tangible personal property; and
620 
(B) as part of a manufacturing or fabrication process.
621 
(62) "Institution of higher education" means an institution of higher education listed in
622 
Section 53B-2-101.
623 
(63)(a) "Lease" or "rental" means a transfer of possession or control of tangible personal
624 
property or a product transferred electronically for:
625 
(i)(A) a fixed term; or
626 
(B) an indeterminate term; and
627 
(ii) consideration.
628 
(b) "Lease" or "rental" includes:
629 
(i) an agreement covering a motor vehicle and trailer if the amount of consideration
630 
may be increased or decreased by reference to the amount realized upon sale or
631 
disposition of the property as defined in Section 7701(h)(1), Internal Revenue
632 
Code; and
633 
(ii) car sharing.
634 
(c) "Lease" or "rental" does not include:
635 
(i) a transfer of possession or control of property under a security agreement or
636 
deferred payment plan that requires the transfer of title upon completion of the
637 
required payments;
638 
(ii) a transfer of possession or control of property under an agreement that requires
639 
the transfer of title:
640 
(A) upon completion of required payments; and
641 
(B) if the payment of an option price does not exceed the greater of:
642 
(I) $100; or
- 19 -  H.B. 489	02-12 12:41
643 
(II) 1% of the total required payments; or
644 
(iii) providing tangible personal property along with an operator for a fixed period of
645 
time or an indeterminate period of time if the operator is necessary for equipment
646 
to perform as designed.
647 
(d) For purposes of Subsection (63)(c)(iii), an operator is necessary for equipment to
648 
perform as designed if the operator's duties exceed the:
649 
(i) set-up of tangible personal property;
650 
(ii) maintenance of tangible personal property; or
651 
(iii) inspection of tangible personal property.
652 
(64) "Lesson" means a fixed period of time for the duration of which a trained instructor:
653 
(a) is present with a student in person or by video; and
654 
(b) actively instructs the student, including by providing observation or feedback.
655 
(65) "Life science establishment" means an establishment in this state that is classified
656 
under the following NAICS codes of the 2007 North American Industry Classification
657 
System of the federal Executive Office of the President, Office of Management and
658 
Budget:
659 
(a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
660 
(b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
661 
Manufacturing; or
662 
(c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
663 
(66) "Life science research and development facility" means a facility owned, leased, or
664 
rented by a life science establishment if research and development is performed in 51%
665 
or more of the total area of the facility.
666 
(67) "Load and leave" means delivery to a purchaser by use of a tangible storage media if
667 
the tangible storage media is not physically transferred to the purchaser.
668 
(68) "Local taxing jurisdiction" means a:
669 
(a) county that is authorized to impose an agreement sales and use tax;
670 
(b) city that is authorized to impose an agreement sales and use tax; or
671 
(c) town that is authorized to impose an agreement sales and use tax.
672 
(69) "Manufactured home" means the same as that term is defined in Section 15A-1-302.
673 
(70) "Manufacturing facility" means:
674 
(a) an establishment described in:
675 
(i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
676 
the federal Executive Office of the President, Office of Management and Budget;
- 20 - 02-12 12:41  H.B. 489
677 
or
678 
(ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
679 
American Industry Classification System of the federal Executive Office of the
680 
President, Office of Management and Budget;
681 
(b) a scrap recycler if:
682 
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to
683 
process one or more of the following items into prepared grades of processed
684 
materials for use in new products:
685 
(A) iron;
686 
(B) steel;
687 
(C) nonferrous metal;
688 
(D) paper;
689 
(E) glass;
690 
(F) plastic;
691 
(G) textile; or
692 
(H) rubber; and
693 
(ii) the new products under Subsection (70)(b)(i) would otherwise be made with
694 
nonrecycled materials; or
695 
(c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
696 
placed in service on or after May 1, 2006.
697 
(71)(a) "Marketplace" means a physical or electronic place, platform, or forum where
698 
tangible personal property, a product transferred electronically, or a service is offered
699 
for sale.
700 
(b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a dedicated
701 
sales software application.
702 
(72)(a) "Marketplace facilitator" means a person, including an affiliate of the person,
703 
that enters into a contract, an agreement, or otherwise with sellers, for consideration,
704 
to facilitate the sale of a seller's product through a marketplace that the person owns,
705 
operates, or controls and that directly or indirectly:
706 
(i) does any of the following:
707 
(A) lists, makes available, or advertises tangible personal property, a product
708 
transferred electronically, or a service for sale by a marketplace seller on a
709 
marketplace that the person owns, operates, or controls;
710 
(B) facilitates the sale of a marketplace seller's tangible personal property, product
- 21 -  H.B. 489	02-12 12:41
711 
transferred electronically, or service by transmitting or otherwise
712 
communicating an offer or acceptance of a retail sale between the marketplace
713 
seller and a purchaser using the marketplace;
714 
(C) owns, rents, licenses, makes available, or operates any electronic or physical
715 
infrastructure or any property, process, method, copyright, trademark, or patent
716 
that connects a marketplace seller to a purchaser for the purpose of making a
717 
retail sale of tangible personal property, a product transferred electronically, or
718 
a service;
719 
(D) provides a marketplace for making, or otherwise facilitates, a retail sale of
720 
tangible personal property, a product transferred electronically, or a service,
721 
regardless of ownership or control of the tangible personal property, the
722 
product transferred electronically, or the service that is the subject of the retail
723 
sale;
724 
(E) provides software development or research and development activities related
725 
to any activity described in this Subsection (72)(a)(i), if the software
726 
development or research and development activity is directly related to the
727 
person's marketplace;
728 
(F) provides or offers fulfillment or storage services for a marketplace seller;
729 
(G) sets prices for the sale of tangible personal property, a product transferred
730 
electronically, or a service by a marketplace seller;
731 
(H) provides or offers customer service to a marketplace seller or a marketplace
732 
seller's purchaser or accepts or assists with taking orders, returns, or exchanges
733 
of tangible personal property, a product transferred electronically, or a service
734 
sold by a marketplace seller on the person's marketplace; or
735 
(I) brands or otherwise identifies sales as those of the person; and
736 
(ii) does any of the following:
737 
(A) collects the sales price or purchase price of a retail sale of tangible personal
738 
property, a product transferred electronically, or a service;
739 
(B) provides payment processing services for a retail sale of tangible personal
740 
property, a product transferred electronically, or a service;
741 
(C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee,
742 
closing fee, a fee for inserting or making available tangible personal property, a
743 
product transferred electronically, or a service on the person's marketplace, or
744 
other consideration for the facilitation of a retail sale of tangible personal
- 22 - 02-12 12:41  H.B. 489
745 
property, a product transferred electronically, or a service, regardless of
746 
ownership or control of the tangible personal property, the product transferred
747 
electronically, or the service that is the subject of the retail sale;
748 
(D) through terms and conditions, an agreement, or another arrangement with a
749 
third person, collects payment from a purchase for a retail sale of tangible
750 
personal property, a product transferred electronically, or a service and
751 
transmits that payment to the marketplace seller, regardless of whether the
752 
third person receives compensation or other consideration in exchange for the
753 
service; or
754 
(E) provides a virtual currency for a purchaser to use to purchase tangible personal
755 
property, a product transferred electronically, or service offered for sale.
756 
(b) "Marketplace facilitator" does not include:
757 
(i) a person that only provides payment processing services; or
758 
(ii) a person described in Subsection (72)(a) to the extent the person is facilitating a
759 
sale for a seller that is a restaurant as defined in Section 59-12-602.
760 
(73) "Marketplace seller" means a seller that makes one or more retail sales through a
761 
marketplace that a marketplace facilitator owns, operates, or controls, regardless of
762 
whether the seller is required to be registered to collect and remit the tax under this part.
763 
(74) "Member of the immediate family of the producer" means a person who is related to a
764 
producer described in Subsection 59-12-104(20)(a) as a:
765 
(a) child or stepchild, regardless of whether the child or stepchild is:
766 
(i) an adopted child or adopted stepchild; or
767 
(ii) a foster child or foster stepchild;
768 
(b) grandchild or stepgrandchild;
769 
(c) grandparent or stepgrandparent;
770 
(d) nephew or stepnephew;
771 
(e) niece or stepniece;
772 
(f) parent or stepparent;
773 
(g) sibling or stepsibling;
774 
(h) spouse;
775 
(i) person who is the spouse of a person described in Subsections (74)(a) through (g); or
776 
(j) person similar to a person described in Subsections (74)(a) through (i) as determined
777 
by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
778 
Administrative Rulemaking Act.
- 23 -  H.B. 489	02-12 12:41
779 
(75) "Mobile home" means the same as that term is defined in Section 15A-1-302.
780 
(76) "Mobile telecommunications service" means the same as that term is defined in the
781 
Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
782 
(77)(a) "Mobile wireless service" means a telecommunications service, regardless of the
783 
technology used, if:
784 
(i) the origination point of the conveyance, routing, or transmission is not fixed;
785 
(ii) the termination point of the conveyance, routing, or transmission is not fixed; or
786 
(iii) the origination point described in Subsection (77)(a)(i) and the termination point
787 
described in Subsection (77)(a)(ii) are not fixed.
788 
(b) "Mobile wireless service" includes a telecommunications service that is provided by
789 
a commercial mobile radio service provider.
790 
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
791 
commission may by rule define "commercial mobile radio service provider."
792 
(78)(a) "Mobility enhancing equipment" means equipment that is:
793 
(i) primarily and customarily used to provide or increase the ability to move from one
794 
place to another;
795 
(ii) appropriate for use in a:
796 
(A) home; or
797 
(B) motor vehicle; and
798 
(iii) not generally used by persons with normal mobility.
799 
(b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
800 
the equipment described in Subsection (78)(a).
801 
(c) "Mobility enhancing equipment" does not include:
802 
(i) a motor vehicle;
803 
(ii) equipment on a motor vehicle if that equipment is normally provided by the
804 
motor vehicle manufacturer;
805 
(iii) durable medical equipment; or
806 
(iv) a prosthetic device.
807 
(79) "Model 1 seller" means a seller registered under the agreement that has selected a
808 
certified service provider as the seller's agent to perform the seller's sales and use tax
809 
functions for agreement sales and use taxes, as outlined in the contract between the
810 
governing board of the agreement and the certified service provider, other than the
811 
seller's obligation under Section 59-12-124 to remit a tax on the seller's own purchases.
812 
(80) "Model 2 seller" means a seller registered under the agreement that:
- 24 - 02-12 12:41  H.B. 489
813 
(a) except as provided in Subsection (80)(b), has selected a certified automated system
814 
to perform the seller's sales tax functions for agreement sales and use taxes; and
815 
(b) retains responsibility for remitting all of the sales tax:
816 
(i) collected by the seller; and
817 
(ii) to the appropriate local taxing jurisdiction.
818 
(81)(a) Subject to Subsection (81)(b), "model 3 seller" means a seller registered under
819 
the agreement that has:
820 
(i) sales in at least five states that are members of the agreement;
821 
(ii) total annual sales revenue of at least $500,000,000;
822 
(iii) a proprietary system that calculates the amount of tax:
823 
(A) for an agreement sales and use tax; and
824 
(B) due to each local taxing jurisdiction; and
825 
(iv) entered into a performance agreement with the governing board of the agreement.
826 
(b) For purposes of Subsection (81)(a), "model 3 seller" includes an affiliated group of
827 
sellers using the same proprietary system.
828 
(82) "Model 4 seller" means a seller that is registered under the agreement and is not a
829 
model 1 seller, model 2 seller, or model 3 seller.
830 
(83) "Modular home" means a modular unit as defined in Section 15A-1-302.
831 
(84) "Motor vehicle" means the same as that term is defined in Section 41-1a-102.
832 
(85) "Oil sands" means impregnated bituminous sands that:
833 
(a) contain a heavy, thick form of petroleum that is released when heated, mixed with
834 
other hydrocarbons, or otherwise treated;
835 
(b) yield mixtures of liquid hydrocarbon; and
836 
(c) require further processing other than mechanical blending before becoming finished
837 
petroleum products.
838 
(86) "Oil shale" means a group of fine black to dark brown shales containing kerogen
839 
material that yields petroleum upon heating and distillation.
840 
(87) "Optional computer software maintenance contract" means a computer software
841 
maintenance contract that a customer is not obligated to purchase as a condition to the
842 
retail sale of computer software.
843 
(88)(a) "Other fuels" means products that burn independently to produce heat or energy.
844 
(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
845 
personal property.
846 
(89)(a) "Paging service" means a telecommunications service that provides transmission
- 25 -  H.B. 489	02-12 12:41
847 
of a coded radio signal for the purpose of activating a specific pager.
848 
(b) For purposes of Subsection (89)(a), the transmission of a coded radio signal includes
849 
a transmission by message or sound.
850 
(90) "Pawn transaction" means the same as that term is defined in Section 13-32a-102.
851 
(91) "Pawnbroker" means the same as that term is defined in Section 13-32a-102.
852 
(92)(a) "Permanently attached to real property" means that for tangible personal property
853 
attached to real property:
854 
(i) the attachment of the tangible personal property to the real property:
855 
(A) is essential to the use of the tangible personal property; and
856 
(B) suggests that the tangible personal property will remain attached to the real
857 
property in the same place over the useful life of the tangible personal
858 
property; or
859 
(ii) if the tangible personal property is detached from the real property, the
860 
detachment would:
861 
(A) cause substantial damage to the tangible personal property; or
862 
(B) require substantial alteration or repair of the real property to which the
863 
tangible personal property is attached.
864 
(b) "Permanently attached to real property" includes:
865 
(i) the attachment of an accessory to the tangible personal property if the accessory is:
866 
(A) essential to the operation of the tangible personal property; and
867 
(B) attached only to facilitate the operation of the tangible personal property;
868 
(ii) a temporary detachment of tangible personal property from real property for a
869 
repair or renovation if the repair or renovation is performed where the tangible
870 
personal property and real property are located; or
871 
(iii) property attached to oil, gas, or water pipelines, except for the property listed in
872 
Subsection (92)(c)(iii) or (iv).
873 
(c) "Permanently attached to real property" does not include:
874 
(i) the attachment of portable or movable tangible personal property to real property
875 
if that portable or movable tangible personal property is attached to real property
876 
only for:
877 
(A) convenience;
878 
(B) stability; or
879 
(C) for an obvious temporary purpose;
880 
(ii) the detachment of tangible personal property from real property except for the
- 26 - 02-12 12:41  H.B. 489
881 
detachment described in Subsection (92)(b)(ii);
882 
(iii) an attachment of the following tangible personal property to real property if the
883 
attachment to real property is only through a line that supplies water, electricity,
884 
gas, telecommunications, cable, or supplies a similar item as determined by the
885 
commission by rule made in accordance with Title 63G, Chapter 3, Utah
886 
Administrative Rulemaking Act:
887 
(A) a computer;
888 
(B) a telephone;
889 
(C) a television; or
890 
(D) tangible personal property similar to Subsections (92)(c)(iii)(A) through (C)
891 
as determined by the commission by rule made in accordance with Title 63G,
892 
Chapter 3, Utah Administrative Rulemaking Act; or
893 
(iv) an item listed in Subsection (137)(c).
894 
(93) "Person" includes any individual, firm, partnership, joint venture, association,
895 
corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
896 
municipality, district, or other local governmental entity of the state, or any group or
897 
combination acting as a unit.
898 
(94) "Place of primary use":
899 
(a) for telecommunications service other than mobile telecommunications service,
900 
means the street address representative of where the customer's use of the
901 
telecommunications service primarily occurs, which shall be:
902 
(i) the residential street address of the customer; or
903 
(ii) the primary business street address of the customer; or
904 
(b) for mobile telecommunications service, means the same as that term is defined in the
905 
Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
906 
(95)(a) "Postpaid calling service" means a telecommunications service a person obtains
907 
by making a payment on a call-by-call basis:
908 
(i) through the use of a:
909 
(A) bank card;
910 
(B) credit card;
911 
(C) debit card; or
912 
(D) travel card; or
913 
(ii) by a charge made to a telephone number that is not associated with the origination
914 
or termination of the telecommunications service.
- 27 -  H.B. 489	02-12 12:41
915 
(b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
916 
service, that would be a prepaid wireless calling service if the service were
917 
exclusively a telecommunications service.
918 
(96) "Postproduction" means an activity related to the finishing or duplication of a medium
919 
described in Subsection 59-12-104(54)(a).
920 
(97) "Prepaid calling service" means a telecommunications service:
921 
(a) that allows a purchaser access to telecommunications service that is exclusively
922 
telecommunications service;
923 
(b) that:
924 
(i) is paid for in advance; and
925 
(ii) enables the origination of a call using an:
926 
(A) access number; or
927 
(B) authorization code;
928 
(c) that is dialed:
929 
(i) manually; or
930 
(ii) electronically; and
931 
(d) sold in predetermined units or dollars that decline:
932 
(i) by a known amount; and
933 
(ii) with use.
934 
(98) "Prepaid wireless calling service" means a telecommunications service:
935 
(a) that provides the right to utilize:
936 
(i) mobile wireless service; and
937 
(ii) other service that is not a telecommunications service, including:
938 
(A) the download of a product transferred electronically;
939 
(B) a content service; or
940 
(C) an ancillary service;
941 
(b) that:
942 
(i) is paid for in advance; and
943 
(ii) enables the origination of a call using an:
944 
(A) access number; or
945 
(B) authorization code;
946 
(c) that is dialed:
947 
(i) manually; or
948 
(ii) electronically; and
- 28 - 02-12 12:41  H.B. 489
949 
(d) sold in predetermined units or dollars that decline:
950 
(i) by a known amount; and
951 
(ii) with use.
952 
(99)(a) "Prepared food" means:
953 
(i) food:
954 
(A) sold in a heated state; or
955 
(B) heated by a seller;
956 
(ii) two or more food ingredients mixed or combined by the seller for sale as a single
957 
item; or
958 
(iii) except as provided in Subsection (99)(c), food sold with an eating utensil
959 
provided by the seller, including a:
960 
(A) plate;
961 
(B) knife;
962 
(C) fork;
963 
(D) spoon;
964 
(E) glass;
965 
(F) cup;
966 
(G) napkin; or
967 
(H) straw.
968 
(b) "Prepared food" does not include:
969 
(i) food that a seller only:
970 
(A) cuts;
971 
(B) repackages; or
972 
(C) pasteurizes;
973 
(ii)(A) the following:
974 
(I) raw egg;
975 
(II) raw fish;
976 
(III) raw meat;
977 
(IV) raw poultry; or
978 
(V) a food containing an item described in Subsections (99)(b)(ii)(A)(I)
979 
through (IV); and
980 
(B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of
981 
the Food and Drug Administration's Food Code that a consumer cook the items
982 
described in Subsection (99)(b)(ii)(A) to prevent food borne illness; or
- 29 -  H.B. 489	02-12 12:41
983 
(iii) the following if sold without eating utensils provided by the seller:
984 
(A) food and food ingredients sold by a seller if the seller's proper primary
985 
classification under the 2002 North American Industry Classification System
986 
of the federal Executive Office of the President, Office of Management and
987 
Budget, is manufacturing in Sector 311, Food Manufacturing, except for
988 
Subsector 3118, Bakeries and Tortilla Manufacturing;
989 
(B) food and food ingredients sold in an unheated state:
990 
(I) by weight or volume; and
991 
(II) as a single item; or
992 
(C) a bakery item, including:
993 
(I) a bagel;
994 
(II) a bar;
995 
(III) a biscuit;
996 
(IV) bread;
997 
(V) a bun;
998 
(VI) a cake;
999 
(VII) a cookie;
1000 
(VIII) a croissant;
1001 
(IX) a danish;
1002 
(X) a donut;
1003 
(XI) a muffin;
1004 
(XII) a pastry;
1005 
(XIII) a pie;
1006 
(XIV) a roll;
1007 
(XV) a tart;
1008 
(XVI) a torte; or
1009 
(XVII) a tortilla.
1010 
(c) An eating utensil provided by the seller does not include the following used to
1011 
transport the food:
1012 
(i) a container; or
1013 
(ii) packaging.
1014 
(100) "Prescription" means an order, formula, or recipe that is issued:
1015 
(a)(i) orally;
1016 
(ii) in writing;
- 30 - 02-12 12:41  H.B. 489
1017 
(iii) electronically; or
1018 
(iv) by any other manner of transmission; and
1019 
(b) by a licensed practitioner authorized by the laws of a state.
1020 
(101)(a) "Prewritten computer software" means computer software that is not designed
1021 
and developed:
1022 
(i) by the author or other creator of the computer software; and
1023 
(ii) to the specifications of a specific purchaser.
1024 
(b) "Prewritten computer software" includes:
1025 
(i) a prewritten upgrade to computer software if the prewritten upgrade to the
1026 
computer software is not designed and developed:
1027 
(A) by the author or other creator of the computer software; and
1028 
(B) to the specifications of a specific purchaser;
1029 
(ii) computer software designed and developed by the author or other creator of the
1030 
computer software to the specifications of a specific purchaser if the computer
1031 
software is sold to a person other than the purchaser; or
1032 
(iii) except as provided in Subsection (101)(c), prewritten computer software or a
1033 
prewritten portion of prewritten computer software:
1034 
(A) that is modified or enhanced to any degree; and
1035 
(B) if the modification or enhancement described in Subsection (101)(b)(iii)(A) is
1036 
designed and developed to the specifications of a specific purchaser.
1037 
(c) "Prewritten computer software" does not include a modification or enhancement
1038 
described in Subsection (101)(b)(iii) if the charges for the modification or
1039 
enhancement are:
1040 
(i) reasonable; and
1041 
(ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), separately stated on the
1042 
invoice or other statement of price provided to the purchaser at the time of sale or
1043 
later, as demonstrated by:
1044 
(A) the books and records the seller keeps at the time of the transaction in the
1045 
regular course of business, including books and records the seller keeps at the
1046 
time of the transaction in the regular course of business for nontax purposes;
1047 
(B) a preponderance of the facts and circumstances at the time of the transaction;
1048 
and
1049 
(C) the understanding of all of the parties to the transaction.
1050 
(102)(a) "Private communications service" means a telecommunications service:
- 31 -  H.B. 489	02-12 12:41
1051 
(i) that entitles a customer to exclusive or priority use of one or more
1052 
communications channels between or among termination points; and
1053 
(ii) regardless of the manner in which the one or more communications channels are
1054 
connected.
1055 
(b) "Private communications service" includes the following provided in connection
1056 
with the use of one or more communications channels:
1057 
(i) an extension line;
1058 
(ii) a station;
1059 
(iii) switching capacity; or
1060 
(iv) another associated service that is provided in connection with the use of one or
1061 
more communications channels as defined in Section 59-12-215.
1062 
(103)(a) "Product transferred electronically" means a product transferred electronically
1063 
that would be subject to a tax under this chapter if that product was transferred in a
1064 
manner other than electronically.
1065 
(b) "Product transferred electronically" does not include:
1066 
(i) an ancillary service;
1067 
(ii) computer software; or
1068 
(iii) a telecommunications service.
1069 
(104)(a) "Prosthetic device" means a device that is worn on or in the body to:
1070 
(i) artificially replace a missing portion of the body;
1071 
(ii) prevent or correct a physical deformity or physical malfunction; or
1072 
(iii) support a weak or deformed portion of the body.
1073 
(b) "Prosthetic device" includes:
1074 
(i) parts used in the repairs or renovation of a prosthetic device;
1075 
(ii) replacement parts for a prosthetic device;
1076 
(iii) a dental prosthesis; [or]
1077 
(iv) a hearing aid[.] ;
1078 
(v) corrective eyeglasses; or
1079 
(vi) contact lenses.
1080 
[(c) "Prosthetic device" does not include:]
1081 
[(i) corrective eyeglasses; or]
1082 
[(ii) contact lenses.]
1083 
(105)(a) "Protective equipment" means an item:
1084 
(i) for human wear; and
- 32 - 02-12 12:41  H.B. 489
1085 
(ii) that is:
1086 
(A) designed as protection:
1087 
(I) to the wearer against injury or disease; or
1088 
(II) against damage or injury of other persons or property; and
1089 
(B) not suitable for general use.
1090 
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1091 
commission shall make rules:
1092 
(i) listing the items that constitute "protective equipment"; and
1093 
(ii) that are consistent with the list of items that constitute "protective equipment"
1094 
under the agreement.
1095 
(106)(a) For purposes of Subsection 59-12-104(41), "publication" means any written or
1096 
printed matter, other than a photocopy:
1097 
(i) regardless of:
1098 
(A) characteristics;
1099 
(B) copyright;
1100 
(C) form;
1101 
(D) format;
1102 
(E) method of reproduction; or
1103 
(F) source; and
1104 
(ii) made available in printed or electronic format.
1105 
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1106 
commission may by rule define the term "photocopy."
1107 
(107)(a) "Purchase price" and "sales price" mean the total amount of consideration:
1108 
(i) valued in money; and
1109 
(ii) for which tangible personal property, a product transferred electronically, or
1110 
services are:
1111 
(A) sold;
1112 
(B) leased; or
1113 
(C) rented.
1114 
(b) "Purchase price" and "sales price" include:
1115 
(i) the seller's cost of the tangible personal property, a product transferred
1116 
electronically, or services sold;
1117 
(ii) expenses of the seller, including:
1118 
(A) the cost of materials used;
- 33 -  H.B. 489	02-12 12:41
1119 
(B) a labor cost;
1120 
(C) a service cost;
1121 
(D) interest;
1122 
(E) a loss;
1123 
(F) the cost of transportation to the seller; or
1124 
(G) a tax imposed on the seller;
1125 
(iii) a charge by the seller for any service necessary to complete the sale; or
1126 
(iv) consideration a seller receives from a person other than the purchaser if:
1127 
(A)(I) the seller actually receives consideration from a person other than the
1128 
purchaser; and
1129 
(II) the consideration described in Subsection (107)(b)(iv)(A)(I) is directly
1130 
related to a price reduction or discount on the sale;
1131 
(B) the seller has an obligation to pass the price reduction or discount through to
1132 
the purchaser;
1133 
(C) the amount of the consideration attributable to the sale is fixed and
1134 
determinable by the seller at the time of the sale to the purchaser; and
1135 
(D)(I)(Aa) the purchaser presents a certificate, coupon, or other
1136 
documentation to the seller to claim a price reduction or discount; and
1137 
(Bb) a person other than the seller authorizes, distributes, or grants the
1138 
certificate, coupon, or other documentation with the understanding that
1139 
the person other than the seller will reimburse any seller to whom the
1140 
certificate, coupon, or other documentation is presented;
1141 
(II) the purchaser identifies that purchaser to the seller as a member of a group
1142 
or organization allowed a price reduction or discount, except that a
1143 
preferred customer card that is available to any patron of a seller does not
1144 
constitute membership in a group or organization allowed a price reduction
1145 
or discount; or
1146 
(III) the price reduction or discount is identified as a third party price reduction
1147 
or discount on the:
1148 
(Aa) invoice the purchaser receives; or
1149 
(Bb) certificate, coupon, or other documentation the purchaser presents.
1150 
(c) "Purchase price" and "sales price" do not include:
1151 
(i) a discount:
1152 
(A) in a form including:
- 34 - 02-12 12:41  H.B. 489
1153 
(I) cash;
1154 
(II) term; or
1155 
(III) coupon;
1156 
(B) that is allowed by a seller;
1157 
(C) taken by a purchaser on a sale; and
1158 
(D) that is not reimbursed by a third party; or
1159 
(ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), the following if
1160 
separately stated on an invoice, bill of sale, or similar document provided to the
1161 
purchaser at the time of sale or later, as demonstrated by the books and records the
1162 
seller keeps at the time of the transaction in the regular course of business,
1163 
including books and records the seller keeps at the time of the transaction in the
1164 
regular course of business for nontax purposes, by a preponderance of the facts
1165 
and circumstances at the time of the transaction, and by the understanding of all of
1166 
the parties to the transaction:
1167 
(A) the following from credit extended on the sale of tangible personal property or
1168 
services:
1169 
(I) a carrying charge;
1170 
(II) a financing charge; or
1171 
(III) an interest charge;
1172 
(B) a delivery charge;
1173 
(C) an installation charge;
1174 
(D) a manufacturer rebate on a motor vehicle; or
1175 
(E) a tax or fee legally imposed directly on the consumer.
1176 
(108) "Purchaser" means a person to whom:
1177 
(a) a sale of tangible personal property is made;
1178 
(b) a product is transferred electronically; or
1179 
(c) a service is furnished.
1180 
(109) "Qualifying data center" means a data center facility that:
1181 
(a) houses a group of networked server computers in one physical location in order to
1182 
disseminate, manage, and store data and information;
1183 
(b) is located in the state;
1184 
(c) is a new operation constructed on or after July 1, 2016;
1185 
(d) consists of one or more buildings that total 150,000 or more square feet;
1186 
(e) is owned or leased by:
- 35 -  H.B. 489	02-12 12:41
1187 
(i) the operator of the data center facility; or
1188 
(ii) a person under common ownership, as defined in Section 59-7-101, of the
1189 
operator of the data center facility; and
1190 
(f) is located on one or more parcels of land that are owned or leased by:
1191 
(i) the operator of the data center facility; or
1192 
(ii) a person under common ownership, as defined in Section 59-7-101, of the
1193 
operator of the data center facility.
1194 
(110) "Regularly rented" means:
1195 
(a) rented to a guest for value three or more times during a calendar year; or
1196 
(b) advertised or held out to the public as a place that is regularly rented to guests for
1197 
value.
1198 
(111) "Rental" means the same as that term is defined in Subsection (63).
1199 
(112)(a) "Repairs or renovations of tangible personal property" means:
1200 
(i) a repair or renovation of tangible personal property that is not permanently
1201 
attached to real property; or
1202 
(ii) attaching tangible personal property or a product transferred electronically to
1203 
other tangible personal property or detaching tangible personal property or a
1204 
product transferred electronically from other tangible personal property if:
1205 
(A) the other tangible personal property to which the tangible personal property or
1206 
product transferred electronically is attached or from which the tangible
1207 
personal property or product transferred electronically is detached is not
1208 
permanently attached to real property; and
1209 
(B) the attachment of tangible personal property or a product transferred
1210 
electronically to other tangible personal property or detachment of tangible
1211 
personal property or a product transferred electronically from other tangible
1212 
personal property is made in conjunction with a repair or replacement of
1213 
tangible personal property or a product transferred electronically.
1214 
(b) "Repairs or renovations of tangible personal property" does not include:
1215 
(i) attaching prewritten computer software to other tangible personal property if the
1216 
other tangible personal property to which the prewritten computer software is
1217 
attached is not permanently attached to real property; or
1218 
(ii) detaching prewritten computer software from other tangible personal property if
1219 
the other tangible personal property from which the prewritten computer software
1220 
is detached is not permanently attached to real property.
- 36 - 02-12 12:41  H.B. 489
1221 
(113) "Research and development" means the process of inquiry or experimentation aimed
1222 
at the discovery of facts, devices, technologies, or applications and the process of
1223 
preparing those devices, technologies, or applications for marketing.
1224 
(114)(a) "Residential telecommunications services" means a telecommunications service
1225 
or an ancillary service that is provided to an individual for personal use:
1226 
(i) at a residential address; or
1227 
(ii) at an institution, including a nursing home or a school, if the telecommunications
1228 
service or ancillary service is provided to and paid for by the individual residing at
1229 
the institution rather than the institution.
1230 
(b) For purposes of Subsection (114)(a)(i), a residential address includes an:
1231 
(i) apartment; or
1232 
(ii) other individual dwelling unit.
1233 
(115) "Residential use" means the use in or around a home, apartment building, sleeping
1234 
quarters, and similar facilities or accommodations.
1235 
(116) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other than:
1236 
(a) resale;
1237 
(b) sublease; or
1238 
(c) subrent.
1239 
(117)(a) "Retailer" means any person, unless prohibited by the Constitution of the
1240 
United States or federal law, that is engaged in a regularly organized business in
1241 
tangible personal property or any other taxable transaction under Subsection
1242 
59-12-103(1), and who is selling to the user or consumer and not for resale.
1243 
(b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1244 
engaged in the business of selling to users or consumers within the state.
1245 
(118)(a) "Sale" means any transfer of title, exchange, or barter, conditional or otherwise,
1246 
in any manner, of tangible personal property or any other taxable transaction under
1247 
Subsection 59-12-103(1), for consideration.
1248 
(b) "Sale" includes:
1249 
(i) installment and credit sales;
1250 
(ii) any closed transaction constituting a sale;
1251 
(iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1252 
chapter;
1253 
(iv) any transaction if the possession of property is transferred but the seller retains
1254 
the title as security for the payment of the price; and
- 37 -  H.B. 489	02-12 12:41
1255 
(v) any transaction under which right to possession, operation, or use of any article of
1256 
tangible personal property is granted under a lease or contract and the transfer of
1257 
possession would be taxable if an outright sale were made.
1258 
(119) "Sale at retail" means the same as that term is defined in Subsection (116).
1259 
(120) "Sale-leaseback transaction" means a transaction by which title to tangible personal
1260 
property or a product transferred electronically that is subject to a tax under this chapter
1261 
is transferred:
1262 
(a) by a purchaser-lessee;
1263 
(b) to a lessor;
1264 
(c) for consideration; and
1265 
(d) if:
1266 
(i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial
1267 
purchase of the tangible personal property or product transferred electronically;
1268 
(ii) the sale of the tangible personal property or product transferred electronically to
1269 
the lessor is intended as a form of financing:
1270 
(A) for the tangible personal property or product transferred electronically; and
1271 
(B) to the purchaser-lessee; and
1272 
(iii) in accordance with generally accepted accounting principles, the
1273 
purchaser-lessee is required to:
1274 
(A) capitalize the tangible personal property or product transferred electronically
1275 
for financial reporting purposes; and
1276 
(B) account for the lease payments as payments made under a financing
1277 
arrangement.
1278 
(121) "Sales price" means the same as that term is defined in Subsection (107).
1279 
(122)(a) "Sales relating to schools" means the following sales by, amounts paid to, or
1280 
amounts charged by a school:
1281 
(i) sales that are directly related to the school's educational functions or activities
1282 
including:
1283 
(A) the sale of:
1284 
(I) textbooks;
1285 
(II) textbook fees;
1286 
(III) laboratory fees;
1287 
(IV) laboratory supplies; or
1288 
(V) safety equipment;
- 38 - 02-12 12:41  H.B. 489
1289 
(B) the sale of a uniform, protective equipment, or sports or recreational
1290 
equipment that:
1291 
(I) a student is specifically required to wear as a condition of participation in a
1292 
school-related event or school-related activity; and
1293 
(II) is not readily adaptable to general or continued usage to the extent that it
1294 
takes the place of ordinary clothing;
1295 
(C) sales of the following if the net or gross revenue generated by the sales is
1296 
deposited into a school district fund or school fund dedicated to school meals:
1297 
(I) food and food ingredients; or
1298 
(II) prepared food; or
1299 
(D) transportation charges for official school activities; or
1300 
(ii) amounts paid to or amounts charged by a school for admission to a school-related
1301 
event or school-related activity.
1302 
(b) "Sales relating to schools" does not include:
1303 
(i) bookstore sales of items that are not educational materials or supplies;
1304 
(ii) except as provided in Subsection (122)(a)(i)(B):
1305 
(A) clothing;
1306 
(B) clothing accessories or equipment;
1307 
(C) protective equipment; or
1308 
(D) sports or recreational equipment; or
1309 
(iii) amounts paid to or amounts charged by a school for admission to a
1310 
school-related event or school-related activity if the amounts paid or charged are
1311 
passed through to a person:
1312 
(A) other than a:
1313 
(I) school;
1314 
(II) nonprofit organization authorized by a school board or a governing body of
1315 
a private school to organize and direct a competitive secondary school
1316 
activity; or
1317 
(III) nonprofit association authorized by a school board or a governing body of
1318 
a private school to organize and direct a competitive secondary school
1319 
activity; and
1320 
(B) that is required to collect sales and use taxes under this chapter.
1321 
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1322 
commission may make rules defining the term "passed through."
- 39 -  H.B. 489	02-12 12:41
1323 
(123) For purposes of this section and Section 59-12-104, "school" means:
1324 
(a) an elementary school or a secondary school that:
1325 
(i) is a:
1326 
(A) public school; or
1327 
(B) private school; and
1328 
(ii) provides instruction for one or more grades kindergarten through 12; or
1329 
(b) a public school district.
1330 
(124)(a) "Seller" means a person that makes a sale, lease, or rental of:
1331 
(i) tangible personal property;
1332 
(ii) a product transferred electronically; or
1333 
(iii) a service.
1334 
(b) "Seller" includes a marketplace facilitator.
1335 
(125)(a) "Semiconductor fabricating, processing, research, or development materials"
1336 
means tangible personal property or a product transferred electronically if the
1337 
tangible personal property or product transferred electronically is:
1338 
(i) used primarily in the process of:
1339 
(A)(I) manufacturing a semiconductor;
1340 
(II) fabricating a semiconductor; or
1341 
(III) research or development of a:
1342 
(Aa) semiconductor; or
1343 
(Bb) semiconductor manufacturing process; or
1344 
(B) maintaining an environment suitable for a semiconductor; or
1345 
(ii) consumed primarily in the process of:
1346 
(A)(I) manufacturing a semiconductor;
1347 
(II) fabricating a semiconductor; or
1348 
(III) research or development of a:
1349 
(Aa) semiconductor; or
1350 
(Bb) semiconductor manufacturing process; or
1351 
(B) maintaining an environment suitable for a semiconductor.
1352 
(b) "Semiconductor fabricating, processing, research, or development materials"
1353 
includes:
1354 
(i) parts used in the repairs or renovations of tangible personal property or a product
1355 
transferred electronically described in Subsection (125)(a); or
1356 
(ii) a chemical, catalyst, or other material used to:
- 40 - 02-12 12:41  H.B. 489
1357 
(A) produce or induce in a semiconductor a:
1358 
(I) chemical change; or
1359 
(II) physical change;
1360 
(B) remove impurities from a semiconductor; or
1361 
(C) improve the marketable condition of a semiconductor.
1362 
(126) "Senior citizen center" means a facility having the primary purpose of providing
1363 
services to the aged as defined in Section 26B-6-101.
1364 
(127) "Shared vehicle" means the same as that term is defined in Section 13-48a-101.
1365 
(128) "Shared vehicle driver" means the same as that term is defined in Section 13-48a-101.
1366 
(129) "Shared vehicle owner" means the same as that term is defined in Section 13-48a-101.
1367 
(130)(a) Subject to Subsections (130)(b) and (c), "short-term lodging consumable"
1368 
means tangible personal property that:
1369 
(i) a business that provides accommodations and services described in Subsection
1370 
59-12-103(1)(i) purchases as part of a transaction to provide the accommodations
1371 
and services to a purchaser;
1372 
(ii) is intended to be consumed by the purchaser; and
1373 
(iii) is:
1374 
(A) included in the purchase price of the accommodations and services; and
1375 
(B) not separately stated on an invoice, bill of sale, or other similar document
1376 
provided to the purchaser.
1377 
(b) "Short-term lodging consumable" includes:
1378 
(i) a beverage;
1379 
(ii) a brush or comb;
1380 
(iii) a cosmetic;
1381 
(iv) a hair care product;
1382 
(v) lotion;
1383 
(vi) a magazine;
1384 
(vii) makeup;
1385 
(viii) a meal;
1386 
(ix) mouthwash;
1387 
(x) nail polish remover;
1388 
(xi) a newspaper;
1389 
(xii) a notepad;
1390 
(xiii) a pen;
- 41 -  H.B. 489	02-12 12:41
1391 
(xiv) a pencil;
1392 
(xv) a razor;
1393 
(xvi) saline solution;
1394 
(xvii) a sewing kit;
1395 
(xviii) shaving cream;
1396 
(xix) a shoe shine kit;
1397 
(xx) a shower cap;
1398 
(xxi) a snack item;
1399 
(xxii) soap;
1400 
(xxiii) toilet paper;
1401 
(xxiv) a toothbrush;
1402 
(xxv) toothpaste; or
1403 
(xxvi) an item similar to Subsections (130)(b)(i) through (xxv) as the commission
1404 
may provide by rule made in accordance with Title 63G, Chapter 3, Utah
1405 
Administrative Rulemaking Act.
1406 
(c) "Short-term lodging consumable" does not include:
1407 
(i) tangible personal property that is cleaned or washed to allow the tangible personal
1408 
property to be reused; or
1409 
(ii) a product transferred electronically.
1410 
(131)(a) "Short-term rental" means a lease or rental for less than 30 consecutive days.
1411 
(b) "Short-term rental" does not include car sharing.
1412 
(132) "Simplified electronic return" means the electronic return:
1413 
(a) described in Section 318(C) of the agreement; and
1414 
(b) approved by the governing board of the agreement.
1415 
(133) "Solar energy" means the sun used as the sole source of energy for producing
1416 
electricity.
1417 
(134)(a) "Sports or recreational equipment" means an item:
1418 
(i) designed for human use; and
1419 
(ii) that is:
1420 
(A) worn in conjunction with:
1421 
(I) an athletic activity; or
1422 
(II) a recreational activity; and
1423 
(B) not suitable for general use.
1424 
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
- 42 - 02-12 12:41  H.B. 489
1425 
commission shall make rules:
1426 
(i) listing the items that constitute "sports or recreational equipment"; and
1427 
(ii) that are consistent with the list of items that constitute "sports or recreational
1428 
equipment" under the agreement.
1429 
(135) "State" means the state of Utah, its departments, and agencies.
1430 
(136) "Storage" means any keeping or retention of tangible personal property or any other
1431 
taxable transaction under Subsection 59-12-103(1), in this state for any purpose except
1432 
sale in the regular course of business.
1433 
(137)(a) "Tangible personal property" means personal property that:
1434 
(i) may be:
1435 
(A) seen;
1436 
(B) weighed;
1437 
(C) measured;
1438 
(D) felt; or
1439 
(E) touched; or
1440 
(ii) is in any manner perceptible to the senses.
1441 
(b) "Tangible personal property" includes:
1442 
(i) electricity;
1443 
(ii) water;
1444 
(iii) gas;
1445 
(iv) steam; or
1446 
(v) prewritten computer software, regardless of the manner in which the prewritten
1447 
computer software is transferred.
1448 
(c) "Tangible personal property" includes the following regardless of whether the item is
1449 
attached to real property:
1450 
(i) a dishwasher;
1451 
(ii) a dryer;
1452 
(iii) a freezer;
1453 
(iv) a microwave;
1454 
(v) a refrigerator;
1455 
(vi) a stove;
1456 
(vii) a washer; or
1457 
(viii) an item similar to Subsections (137)(c)(i) through (vii) as determined by the
1458 
commission by rule made in accordance with Title 63G, Chapter 3, Utah
- 43 -  H.B. 489	02-12 12:41
1459 
Administrative Rulemaking Act.
1460 
(d) "Tangible personal property" does not include a product that is transferred
1461 
electronically.
1462 
(e) "Tangible personal property" does not include the following if attached to real
1463 
property, regardless of whether the attachment to real property is only through a line
1464 
that supplies water, electricity, gas, telephone, cable, or supplies a similar item as
1465 
determined by the commission by rule made in accordance with Title 63G, Chapter 3,
1466 
Utah Administrative Rulemaking Act:
1467 
(i) a hot water heater;
1468 
(ii) a water filtration system; or
1469 
(iii) a water softener system.
1470 
(138)(a) "Telecommunications enabling or facilitating equipment, machinery, or
1471 
software" means an item listed in Subsection (138)(b) if that item is purchased or
1472 
leased primarily to enable or facilitate one or more of the following to function:
1473 
(i) telecommunications switching or routing equipment, machinery, or software; or
1474 
(ii) telecommunications transmission equipment, machinery, or software.
1475 
(b) The following apply to Subsection (138)(a):
1476 
(i) a pole;
1477 
(ii) software;
1478 
(iii) a supplementary power supply;
1479 
(iv) temperature or environmental equipment or machinery;
1480 
(v) test equipment;
1481 
(vi) a tower; or
1482 
(vii) equipment, machinery, or software that functions similarly to an item listed in
1483 
Subsections (138)(b)(i) through (vi) as determined by the commission by rule
1484 
made in accordance with Subsection (138)(c).
1485 
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1486 
commission may by rule define what constitutes equipment, machinery, or software
1487 
that functions similarly to an item listed in Subsections (138)(b)(i) through (vi).
1488 
(139) "Telecommunications equipment, machinery, or software required for 911 service"
1489 
means equipment, machinery, or software that is required to comply with 47 C.F.R. Sec.
1490 
20.18.
1491 
(140) "Telecommunications maintenance or repair equipment, machinery, or software"
1492 
means equipment, machinery, or software purchased or leased primarily to maintain or
- 44 - 02-12 12:41  H.B. 489
1493 
repair one or more of the following, regardless of whether the equipment, machinery, or
1494 
software is purchased or leased as a spare part or as an upgrade or modification to one or
1495 
more of the following:
1496 
(a) telecommunications enabling or facilitating equipment, machinery, or software;
1497 
(b) telecommunications switching or routing equipment, machinery, or software; or
1498 
(c) telecommunications transmission equipment, machinery, or software.
1499 
(141)(a) "Telecommunications service" means the electronic conveyance, routing, or
1500 
transmission of audio, data, video, voice, or any other information or signal to a
1501 
point, or among or between points.
1502 
(b) "Telecommunications service" includes:
1503 
(i) an electronic conveyance, routing, or transmission with respect to which a
1504 
computer processing application is used to act:
1505 
(A) on the code, form, or protocol of the content;
1506 
(B) for the purpose of electronic conveyance, routing, or transmission; and
1507 
(C) regardless of whether the service:
1508 
(I) is referred to as voice over Internet protocol service; or
1509 
(II) is classified by the Federal Communications Commission as enhanced or
1510 
value added;
1511 
(ii) an 800 service;
1512 
(iii) a 900 service;
1513 
(iv) a fixed wireless service;
1514 
(v) a mobile wireless service;
1515 
(vi) a postpaid calling service;
1516 
(vii) a prepaid calling service;
1517 
(viii) a prepaid wireless calling service; or
1518 
(ix) a private communications service.
1519 
(c) "Telecommunications service" does not include:
1520 
(i) advertising, including directory advertising;
1521 
(ii) an ancillary service;
1522 
(iii) a billing and collection service provided to a third party;
1523 
(iv) a data processing and information service if:
1524 
(A) the data processing and information service allows data to be:
1525 
(I)(Aa) acquired;
1526 
(Bb) generated;
- 45 -  H.B. 489	02-12 12:41
1527 
(Cc) processed;
1528 
(Dd) retrieved; or
1529 
(Ee) stored; and
1530 
(II) delivered by an electronic transmission to a purchaser; and
1531 
(B) the purchaser's primary purpose for the underlying transaction is the processed
1532 
data or information;
1533 
(v) installation or maintenance of the following on a customer's premises:
1534 
(A) equipment; or
1535 
(B) wiring;
1536 
(vi) Internet access service;
1537 
(vii) a paging service;
1538 
(viii) a product transferred electronically, including:
1539 
(A) music;
1540 
(B) reading material;
1541 
(C) a ring tone;
1542 
(D) software; or
1543 
(E) video;
1544 
(ix) a radio and television audio and video programming service:
1545 
(A) regardless of the medium; and
1546 
(B) including:
1547 
(I) furnishing conveyance, routing, or transmission of a television audio and
1548 
video programming service by a programming service provider;
1549 
(II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1550 
(III) audio and video programming services delivered by a commercial mobile
1551 
radio service provider as defined in 47 C.F.R. Sec. 20.3;
1552 
(x) a value-added nonvoice data service; or
1553 
(xi) tangible personal property.
1554 
(142)(a) "Telecommunications service provider" means a person that:
1555 
(i) owns, controls, operates, or manages a telecommunications service; and
1556 
(ii) engages in an activity described in Subsection (142)(a)(i) for the shared use with
1557 
or resale to any person of the telecommunications service.
1558 
(b) A person described in Subsection (142)(a) is a telecommunications service provider
1559 
whether or not the Public Service Commission of Utah regulates:
1560 
(i) that person; or
- 46 - 02-12 12:41  H.B. 489
1561 
(ii) the telecommunications service that the person owns, controls, operates, or
1562 
manages.
1563 
(143)(a) "Telecommunications switching or routing equipment, machinery, or software"
1564 
means an item listed in Subsection (143)(b) if that item is purchased or leased
1565 
primarily for switching or routing:
1566 
(i) an ancillary service;
1567 
(ii) data communications;
1568 
(iii) voice communications; or
1569 
(iv) telecommunications service.
1570 
(b) The following apply to Subsection (143)(a):
1571 
(i) a bridge;
1572 
(ii) a computer;
1573 
(iii) a cross connect;
1574 
(iv) a modem;
1575 
(v) a multiplexer;
1576 
(vi) plug in circuitry;
1577 
(vii) a router;
1578 
(viii) software;
1579 
(ix) a switch; or
1580 
(x) equipment, machinery, or software that functions similarly to an item listed in
1581 
Subsections (143)(b)(i) through (ix) as determined by the commission by rule
1582 
made in accordance with Subsection (143)(c).
1583 
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1584 
commission may by rule define what constitutes equipment, machinery, or software
1585 
that functions similarly to an item listed in Subsections (143)(b)(i) through (ix).
1586 
(144)(a) "Telecommunications transmission equipment, machinery, or software" means
1587 
an item listed in Subsection (144)(b) if that item is purchased or leased primarily for
1588 
sending, receiving, or transporting:
1589 
(i) an ancillary service;
1590 
(ii) data communications;
1591 
(iii) voice communications; or
1592 
(iv) telecommunications service.
1593 
(b) The following apply to Subsection (144)(a):
1594 
(i) an amplifier;
- 47 -  H.B. 489	02-12 12:41
1595 
(ii) a cable;
1596 
(iii) a closure;
1597 
(iv) a conduit;
1598 
(v) a controller;
1599 
(vi) a duplexer;
1600 
(vii) a filter;
1601 
(viii) an input device;
1602 
(ix) an input/output device;
1603 
(x) an insulator;
1604 
(xi) microwave machinery or equipment;
1605 
(xii) an oscillator;
1606 
(xiii) an output device;
1607 
(xiv) a pedestal;
1608 
(xv) a power converter;
1609 
(xvi) a power supply;
1610 
(xvii) a radio channel;
1611 
(xviii) a radio receiver;
1612 
(xix) a radio transmitter;
1613 
(xx) a repeater;
1614 
(xxi) software;
1615 
(xxii) a terminal;
1616 
(xxiii) a timing unit;
1617 
(xxiv) a transformer;
1618 
(xxv) a wire; or
1619 
(xxvi) equipment, machinery, or software that functions similarly to an item listed in
1620 
Subsections (144)(b)(i) through (xxv) as determined by the commission by rule
1621 
made in accordance with Subsection (144)(c).
1622 
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1623 
commission may by rule define what constitutes equipment, machinery, or software
1624 
that functions similarly to an item listed in Subsections (144)(b)(i) through (xxv).
1625 
(145)(a) "Textbook for a higher education course" means a textbook or other printed
1626 
material that is required for a course:
1627 
(i) offered by an institution of higher education; and
1628 
(ii) that the purchaser of the textbook or other printed material attends or will attend.
- 48 - 02-12 12:41  H.B. 489
1629 
(b) "Textbook for a higher education course" includes a textbook in electronic format.
1630 
(146) "Tobacco" means:
1631 
(a) a cigarette;
1632 
(b) a cigar;
1633 
(c) chewing tobacco;
1634 
(d) pipe tobacco; or
1635 
(e) any other item that contains tobacco.
1636 
(147) "Unassisted amusement device" means an amusement device, skill device, or ride
1637 
device that is started and stopped by the purchaser or renter of the right to use or operate
1638 
the amusement device, skill device, or ride device.
1639 
(148)(a) "Use" means the exercise of any right or power over tangible personal property,
1640 
a product transferred electronically, or a service under Subsection 59-12-103(1),
1641 
incident to the ownership or the leasing of that tangible personal property, product
1642 
transferred electronically, or service.
1643 
(b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1644 
property, a product transferred electronically, or a service in the regular course of
1645 
business and held for resale.
1646 
(149) "Value-added nonvoice data service" means a service:
1647 
(a) that otherwise meets the definition of a telecommunications service except that a
1648 
computer processing application is used to act primarily for a purpose other than
1649 
conveyance, routing, or transmission; and
1650 
(b) with respect to which a computer processing application is used to act on data or
1651 
information:
1652 
(i) code;
1653 
(ii) content;
1654 
(iii) form; or
1655 
(iv) protocol.
1656 
(150)(a) Subject to Subsection (150)(b), "vehicle" means the following that are required
1657 
to be titled, registered, or titled and registered:
1658 
(i) an aircraft as defined in Section 72-10-102;
1659 
(ii) a vehicle as defined in Section 41-1a-102;
1660 
(iii) an off-highway vehicle as defined in Section 41-22-2; or
1661 
(iv) a vessel as defined in Section 41-1a-102.
1662 
(b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
- 49 -  H.B. 489	02-12 12:41
1663 
(i) a vehicle described in Subsection (150)(a); or
1664 
(ii)(A) a locomotive;
1665 
(B) a freight car;
1666 
(C) railroad work equipment; or
1667 
(D) other railroad rolling stock.
1668 
(151) "Vehicle dealer" means a person engaged in the business of buying, selling, or
1669 
exchanging a vehicle as defined in Subsection (150).
1670 
(152)(a) "Vertical service" means an ancillary service that:
1671 
(i) is offered in connection with one or more telecommunications services; and
1672 
(ii) offers an advanced calling feature that allows a customer to:
1673 
(A) identify a caller; and
1674 
(B) manage multiple calls and call connections.
1675 
(b) "Vertical service" includes an ancillary service that allows a customer to manage a
1676 
conference bridging service.
1677 
(153)(a) "Voice mail service" means an ancillary service that enables a customer to
1678 
receive, send, or store a recorded message.
1679 
(b) "Voice mail service" does not include a vertical service that a customer is required to
1680 
have in order to utilize a voice mail service.
1681 
(154)(a) "Waste energy facility" means a facility that generates electricity:
1682 
(i) using as the primary source of energy waste materials that would be placed in a
1683 
landfill or refuse pit if it were not used to generate electricity, including:
1684 
(A) tires;
1685 
(B) waste coal;
1686 
(C) oil shale; or
1687 
(D) municipal solid waste; and
1688 
(ii) in amounts greater than actually required for the operation of the facility.
1689 
(b) "Waste energy facility" does not include a facility that incinerates:
1690 
(i) hospital waste as defined in 40 C.F.R. 60.51c; or
1691 
(ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1692 
(155) "Watercraft" means a vessel as defined in Section 73-18-2.
1693 
(156) "Wind energy" means wind used as the sole source of energy to produce electricity.
1694 
(157) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
1695 
location by the United States Postal Service.
1696 
Section 2.  Effective Date.
- 50 - 02-12 12:41  H.B. 489
1697 
This bill takes effect on July 1, 2025.
- 51 -