UT
Utah House Bill HB0509

Utah 2025 Regular Session

Utah House Bill HB0509 Compare Versions

OldNewDifferences
1-03-03 14:01 3rd Sub. (Cherry) H.B. 509
1+02-27 17:51 2nd Sub. (Gray) H.B. 509
22 Jennifer Dailey-Provost proposes the following substitute bill:
33 1
44 Specialized Product Amendments
55 2025 GENERAL SESSION
66 STATE OF UTAH
77 Chief Sponsor: Jennifer Dailey-Provost
8-Senate Sponsor: Evan J. Vickers
8+Senate Sponsor:
99 2
1010
1111 3
1212 LONG TITLE
1313 4
1414 General Description:
1515 5
1616 This bill amends provisions related to specialized products.
1717 6
1818 Highlighted Provisions:
1919 7
2020 This bill:
2121 8
2222 ▸ defines terms;
2323 9
24-▸ modifies the requirements to sell a kratom product in the state;
24+▸ creates a process to review compounded kratom products for safety for human
2525 10
26+consumption;
27+11
2628 ▸ renames the "Cannabinoid Proceeds Restricted Account" to the "Specialized Product
27-11
29+12
2830 Proceeds Restricted Account";
29-12
31+13
3032 ▸ modifies provisions related to the tax on cannabinoid products; and
31-13
33+14
3234 ▸ applies a tax to kratom products that can be used for enforcement and other statutory
33-14
35+15
3436 required duties.
35-15
37+16
3638 Money Appropriated in this Bill:
37-16
39+17
3840 None
39-17
41+18
4042 Other Special Clauses:
41-18
43+19
4244 This bill provides a special effective date.
43-19
45+20
4446 Utah Code Sections Affected:
45-20
47+21
4648 AMENDS:
47-21
49+22
4850 4-45-102 (Effective 05/07/25), as enacted by Laws of Utah 2019, Chapter 329
49-22
50-4-45-104 (Effective 05/07/25), as enacted by Laws of Utah 2019, Chapter 329
5151 23
5252 4-45-108 (Effective 01/01/26), as enacted by Laws of Utah 2019, Chapter 329
5353 24
5454 59-1-306 (Effective 01/01/26), as last amended by Laws of Utah 2024, Chapter 35
5555 25
5656 59-1-403 (Effective 01/01/26), as last amended by Laws of Utah 2024, Chapters 25, 35
5757 26
5858 59-12-104 (Effective 01/01/26), as last amended by Laws of Utah 2024, Chapter 35
5959 27
6060 59-31-101 (Effective 01/01/26), as enacted by Laws of Utah 2024, Chapter 35
6161 28
6262 59-31-201 (Effective 01/01/26), as enacted by Laws of Utah 2024, Chapter 35
63-3rd Sub. H.B. 509 3rd Sub. (Cherry) H.B. 509 03-03 14:01
63+2nd Sub. H.B. 509 2nd Sub. (Gray) H.B. 509 02-27 17:51
6464 29
6565 59-31-202 (Effective 01/01/26), as enacted by Laws of Utah 2024, Chapter 35
6666 30
6767 59-31-301 (Effective 01/01/26), as enacted by Laws of Utah 2024, Chapter 35
6868 31
6969 59-31-302 (Effective 01/01/26), as enacted by Laws of Utah 2024, Chapter 35
7070 32
7171 59-31-401 (Effective 01/01/26), as enacted by Laws of Utah 2024, Chapter 35
7272 33
7373 59-31-402 (Effective 01/01/26), as enacted by Laws of Utah 2024, Chapter 35
7474 34
75+ENACTS:
76+35
77+4-45-109 (Effective 05/07/25), Utah Code Annotated 1953
78+36
79+4-45-110 (Effective 05/07/25), Utah Code Annotated 1953
80+37
7581
76-35
82+38
7783 Be it enacted by the Legislature of the state of Utah:
78-36
84+39
7985 Section 1. Section 4-45-102 is amended to read:
80-37
86+40
8187 4-45-102 (Effective 05/07/25). Definitions.
82-38
88+41
8389 As used in this chapter:
84-39
90+42
8591 [(1) "Commissioner" means the commissioner of the department.]
86-40
92+43
93+(1)(a) "Compound kratom product" means a kratom product that is in a form other than a
94+44
95+dried leaf.
96+45
97+(b) "Compound kratom product" includes a kratom product:
98+46
99+(i) made from kratom extract that contains levels of residual solvents higher than is
100+47
101+allowed in the United States Pharmacopeia 467;
102+48
103+(ii) that is combined with a dietary ingredient; or
104+49
105+(iii) that is combined with an ingredient that is not present in a fresh or dried kratom
106+50
107+leaf.
108+51
87109 [(2) "Department" means the Department of Agriculture and Food created in Section
88-41
110+52
89111 4-2-102.]
90-42
91-[(3)] (1) "Food" means:
92-43
112+53
113+[(3)] (2) "Food" means:
114+54
93115 (a) an article used for food or drink for human or animal consumption or the components
94-44
116+55
95117 of the article;
96-45
118+56
97119 (b) chewing gum or chewing gum components; or
98-46
120+57
99121 (c) a food supplement for special dietary use that is necessitated because of a physical,
100-47
122+58
101123 physiological, pathological, or other condition.
102-48
103-[(4)] (2) "Kratom processor" means a person who:
104-49
124+59
125+[(4)] (3) "Kratom processor" means a person who:
126+60
105127 (a) sells, prepares, or maintains a kratom product; or
106-50
128+61
107129 (b) advertises, represents, or holds oneself out as selling, preparing, or maintaining a
108-51
130+62
109131 kratom product.
110-52
111-[(5)] (3) "Kratom product" [mean] means food containing any part of a leaf of the plant
112-53
132+- 2 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
133+63
134+[(5)] (4) "Kratom product" [mean] means food containing any part of a leaf of the plant
135+64
113136 Mitragyna speciosa.
114-54
115-Section 2. Section 4-45-104 is amended to read:
116-55
117-4-45-104 (Effective 05/07/25). Kratom processor requirements -- Criminal
118-56
119-penalty.
120-57
121-(1) A kratom processor may not prepare, distribute, sell, or offer for sale a kratom product:
122-58
123-(a) that is mixed or packed with a nonkratom substance that affects the quality or
124-59
125-strength of the kratom product to such a degree as to render the kratom product
126-60
127-injurious to a consumer;
128-61
129-(b) that contains a poisonous or [otherwise] potentially deleterious nonkratom ingredient,
130-62
131-including a controlled substance as defined in Section 58-37-2;
132-- 2 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
133-63
134-(c) containing a level of 7-hydroxymitragynine in the alkaloid fraction that is greater
135-64
136-than 2% of the alkaloid composition of the kratom product;
137137 65
138-(d) containing a synthetic alkaloid, including synthetic mitragynine, synthetic
138+Section 2. Section 4-45-108 is amended to read:
139139 66
140-7-hydroxymitragynine, or any other synthetically derived compound of the kratom
140+4-45-108 (Effective 01/01/26). Registration of kratom products -- Department
141141 67
142-plant; or
142+duties.
143143 68
144-(e) that does not include a product label on the kratom product packaging that states the
144+(1) The department shall [set a fee to ]register a kratom product, in accordance with Section
145145 69
146-amount of mitragynine and 7-hydroxymitragynine contained in the packaged kratom
146+4-2-103.
147147 70
148-product.
148+[(2) The fee described in Subsection (1) may be paid by a producer, manufacturer, or
149149 71
150-(2) A kratom processor who violates Subsection (1) is guilty of a class C misdemeanor for
150+distributor of a kratom product, but a kratom product may not be registered with the
151151 72
152-each violation.
152+department until the fee is paid.]
153153 73
154-(3) A kratom processor does not violate Subsection (1) if the kratom processor shows by a
154+[(3)] (2) The department shall:
155155 74
156-preponderance of the evidence that the kratom processor relied in good faith upon the
156+(a) set an administrative fine[, larger than the fee described in Subsection (1), ] not to
157157 75
158-representation of a manufacturer, processor, packer, or distributor of food represented to
158+exceed $5,000 for a person who sells a kratom product that is not registered with the
159159 76
160-be a kratom product.
160+department; and
161161 77
162-(4) A kratom processor may not prepare, distribute, sell, or offer for sale a kratom product
162+(b) assess the fine described in Subsection [(3)(a)] (2)(a) against any person who offers
163163 78
164-that is not registered with the department in accordance with this chapter.
164+an unregistered kratom product for sale in this state or take another administrative
165165 79
166-(5) A kratom processor shall register as a food establishment in accordance with Section
166+action.
167167 80
168-4-5-301.
168+[(4)] (3) The department may seize and destroy any unregistered kratom product offered for
169169 81
170-Section 3. Section 4-45-108 is amended to read:
170+sale in this state.
171171 82
172-4-45-108 (Effective 01/01/26). Registration of kratom products -- Department
172+(4) The department shall share information regarding persons that sell kratom products the
173173 83
174-duties.
174+department has obtained through enforcement of this chapter with the State Tax
175175 84
176-(1) The department shall [set a fee to ]register a kratom product, in accordance with Section
176+Commission upon request.
177177 85
178-4-2-103.
178+Section 3. Section 4-45-109 is enacted to read:
179179 86
180-[(2) The fee described in Subsection (1) may be paid by a producer, manufacturer, or
180+4-45-109 (Effective 05/07/25). Compound kratom product.
181181 87
182-distributor of a kratom product, but a kratom product may not be registered with the
182+(1) The department may not renew a compound kratom product registration beginning July
183183 88
184-department until the fee is paid.]
184+1, 2025, unless the compound kratom product is approved for sale:
185185 89
186-[(3)] (2) The department shall:
186+(a) under Section 4-45-110; or
187187 90
188-(a) set an administrative fine[, larger than the fee described in Subsection (1), ] not to
188+(b) by the United States Food and Drug Administration.
189189 91
190-exceed $5,000 for a person who sells a kratom product that is not registered with the
190+(2) Notwithstanding Subsection (1), the department may issue a 90-day temporary
191191 92
192-department; and
192+registration for a product that has been previously registered in the state if the
193193 93
194-(b) assess the fine described in Subsection [(3)(a)] (2)(a) against any person who offers
194+registration is requested before July 1, 2025.
195195 94
196-an unregistered kratom product for sale in this state or take another administrative
196+(3) A compound kratom product that receives a temporary registration under Subsection (2)
197197 95
198-action.
198+may be registered if the compound kratom product meets the requirements for sale
199199 96
200-[(4)] (3) The department may seize and destroy any unregistered kratom product offered for
201-- 3 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
200+described in Section 4-45-110.
201+- 3 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
202202 97
203-sale in this state.
203+Section 4. Section 4-45-110 is enacted to read:
204204 98
205-(4) The department shall share information regarding persons that sell kratom products the
205+4-45-110 (Effective 05/07/25). Human consumption safety review for a
206206 99
207-department has obtained through implementation and enforcement of this chapter with
207+compound kratom product.
208208 100
209-the State Tax Commission upon request.
209+(1) In accordance with Section 4-45-109, a kratom processor may submit scientific research
210210 101
211-Section 4. Section 59-1-306 is amended to read:
211+regarding a compound kratom product for the department to determine whether the
212212 102
213+product may be sold in the state.
214+103
215+(2)(a) A compound kratom product shall be deemed adulterated and not eligible for sale
216+104
217+in the state unless it meets the following requirements:
218+105
219+(i) there is a history of use or other evidence of safety establishing that the new
220+106
221+compound kratom product, when used under the conditions recommended or
222+107
223+suggested in the labeling of the product, does not present an unreasonable risk of
224+108
225+illness or injury based on the product's labeled conditions of use; and
226+109
227+(ii) at least 75 days before the day the compound kratom product is introduced for
228+110
229+sale in the state, the kratom processor of the compound kratom product provides
230+111
231+the department with information, including any citation to published articles,
232+112
233+which is the basis on which the kratom processor has concluded that the
234+113
235+compound kratom product will reasonably be expected to be safe under labeled
236+114
237+conditions.
238+115
239+(b) In the event a compound kratom product has a temporary registration with the
240+116
241+department and the submitted evidence of safety is, upon review, deemed by the
242+117
243+department to be incomplete as provided under 21 C.F.R. Sec. 190.6, the department
244+118
245+shall require the kratom processor to provide additional evidence within 30 days from
246+119
247+the day of receiving notice from the department that the product needs additional
248+120
249+evidence.
250+121
251+(c) If the department determines the additional evidence of safety does not provide a
252+122
253+reasonable assurance that the product does not present a significant or unreasonable
254+123
255+risk of illness or injury, the department shall deregister the kratom compound product.
256+124
257+(d) If a subsequent submission from the processor for the compound kratom product is
258+125
259+deemed to meet the requirements of Subsection (2)(a), the department shall register
260+126
261+the compound kratom product.
262+127
263+(e) Any kratom processor may file with the department a petition to register a compound
264+128
265+kratom product that is supported by evidence prescribing the conditions under which
266+129
267+a compound kratom product under the product's intended conditions of use will
268+130
269+reasonably be expected to be safe.
270+- 4 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
271+131
272+(f) The department shall issue a decision on a petition described in Subsection (2)(e)
273+132
274+within 75 days of the date the petition is filed with the department.
275+133
276+(3)(a) Within 30 days from the day the department issues a decision described in
277+134
278+Subsection (2)(f), a kratom processor may appeal the decision of the department.
279+135
280+(b) If a compound kratom product is determined to not present an unreasonable risk of
281+136
282+illness or injury based on the compound kratom product's labeled conditions of use
283+137
284+after an appeal, the department shall authorize the compound kratom product for sale
285+138
286+in the state.
287+139
288+(4)(a) The department may enter into a contract with another entity to carry out the
289+140
290+department's duties described in this section.
291+141
292+(b) The department shall set a non-refundable fee in accordance with Section 63J-1-504
293+142
294+to recover the department's cost under this section.
295+143
296+(5) An appeal of a decision made under this section shall be heard by an administrative law
297+144
298+judge.
299+145
300+Section 5. Section 59-1-306 is amended to read:
301+146
213302 59-1-306 (Effective 01/01/26). Definition -- State Tax Commission
214-103
303+147
215304 Administrative Charge Account -- Amount of administrative charge -- Deposit of
216-104
305+148
217306 revenue into the restricted account -- Interest deposited into General Fund --
218-105
307+149
219308 Expenditure of money deposited into the restricted account.
220-106
309+150
221310 (1) As used in this section, "qualifying tax, fee, or charge" means a tax, fee, or charge the
222-107
311+151
223312 commission administers under:
224-108
313+152
225314 (a) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
226-109
315+153
227316 (b) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
228-110
317+154
229318 (c) Section 19-6-714;
230-111
319+155
231320 (d) Section 19-6-805;
232-112
321+156
233322 (e) Chapter 12, Sales and Use Tax Act, other than a tax under Chapter 12, Part 1, Tax
234-113
323+157
235324 Collection, or Chapter 12, Part 18, Additional State Sales and Use Tax Act;
236-114
325+158
237326 (f) Section 59-27-105;
238-115
327+159
239328 (g) Chapter 31, [Cannabinoid] Specialized Product Licensing and Tax Act;
240-116
329+160
241330 (h) Section 63H-1-205; or
242-117
331+161
243332 (i) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges.
244-118
333+162
245334 (2) There is created a restricted account within the General Fund known as the "State Tax
246-119
335+163
247336 Commission Administrative Charge Account."
248-120
337+164
249338 (3) Subject to the other provisions of this section, the restricted account shall consist of
250-121
339+- 5 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
340+165
251341 administrative charges the commission retains and deposits in accordance with this
252-122
342+166
253343 section.
254-123
344+167
255345 (4) For purposes of this section, the administrative charge is a percentage of revenue the
256-124
346+168
257347 commission collects from each qualifying tax, fee, or charge of not to exceed the lesser
258-125
348+169
259349 of:
260-126
350+170
261351 (a) 1.5%; or
262-127
352+171
263353 (b) an equal percentage of revenue the commission collects from each qualifying tax,
264-128
354+172
265355 fee, or charge sufficient to cover the cost to the commission of administering the
266-129
356+173
267357 qualifying taxes, fees, or charges.
268-130
358+174
269359 (5) The commission shall deposit an administrative charge into the restricted account.
270-- 4 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
271-131
360+175
272361 (6) Interest earned on the restricted account shall be deposited into the General Fund.
273-132
362+176
274363 (7) The commission shall expend money appropriated by the Legislature to the commission
275-133
364+177
276365 from the restricted account to administer qualifying taxes, fees, or charges.
277-134
278-Section 5. Section 59-1-403 is amended to read:
279-135
366+178
367+Section 6. Section 59-1-403 is amended to read:
368+179
280369 59-1-403 (Effective 01/01/26). Confidentiality -- Exceptions -- Penalty --
281-136
370+180
282371 Application to property tax.
283-137
372+181
284373 (1) As used in this section:
285-138
374+182
286375 (a) "Distributed tax, fee, or charge" means a tax, fee, or charge:
287-139
376+183
288377 (i) the commission administers under:
289-140
378+184
290379 (A) this title, other than a tax under Chapter 12, Part 2, Local Sales and Use Tax
291-141
380+185
292381 Act;
293-142
382+186
294383 (B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
295-143
384+187
296385 (C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
297-144
386+188
298387 (D) Section 19-6-805;
299-145
388+189
300389 (E) Section 63H-1-205; or
301-146
390+190
302391 (F) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
303-147
392+191
304393 Charges; and
305-148
394+192
306395 (ii) with respect to which the commission distributes the revenue collected from the
307-149
396+193
308397 tax, fee, or charge to a qualifying jurisdiction.
309-150
398+194
310399 (b) "Qualifying jurisdiction" means:
311-151
400+195
312401 (i) a county, city, or town;
313-152
402+196
314403 (ii) the military installation development authority created in Section 63H-1-201; or
315-153
404+197
316405 (iii) the Utah Inland Port Authority created in Section 11-58-201.
317-154
406+198
318407 (2)(a) Any of the following may not divulge or make known in any manner any
319-155
408+- 6 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
409+199
320410 information gained by that person from any return filed with the commission:
321-156
411+200
322412 (i) a tax commissioner;
323-157
413+201
324414 (ii) an agent, clerk, or other officer or employee of the commission; or
325-158
415+202
326416 (iii) a representative, agent, clerk, or other officer or employee of any county, city, or
327-159
417+203
328418 town.
329-160
419+204
330420 (b) An official charged with the custody of a return filed with the commission is not
331-161
421+205
332422 required to produce the return or evidence of anything contained in the return in any
333-162
423+206
334424 action or proceeding in any court, except:
335-163
425+207
336426 (i) in accordance with judicial order;
337-164
427+208
338428 (ii) on behalf of the commission in any action or proceeding under:
339-- 5 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
340-165
429+209
341430 (A) this title; or
342-166
431+210
343432 (B) other law under which persons are required to file returns with the
344-167
433+211
345434 commission;
346-168
435+212
347436 (iii) on behalf of the commission in any action or proceeding to which the
348-169
437+213
349438 commission is a party; or
350-170
439+214
351440 (iv) on behalf of any party to any action or proceeding under this title if the report or
352-171
441+215
353442 facts shown by the return are directly involved in the action or proceeding.
354-172
443+216
355444 (c) Notwithstanding Subsection (2)(b), a court may require the production of, and may
356-173
445+217
357446 admit in evidence, any portion of a return or of the facts shown by the return, as are
358-174
447+218
359448 specifically pertinent to the action or proceeding.
360-175
449+219
361450 (3) This section does not prohibit:
362-176
451+220
363452 (a) a person or that person's duly authorized representative from receiving a copy of any
364-177
453+221
365454 return or report filed in connection with that person's own tax;
366-178
455+222
367456 (b) the publication of statistics as long as the statistics are classified to prevent the
368-179
457+223
369458 identification of particular reports or returns; and
370-180
459+224
371460 (c) the inspection by the attorney general or other legal representative of the state of the
372-181
461+225
373462 report or return of any taxpayer:
374-182
463+226
375464 (i) who brings action to set aside or review a tax based on the report or return;
376-183
465+227
377466 (ii) against whom an action or proceeding is contemplated or has been instituted
378-184
467+228
379468 under this title; or
380-185
469+229
381470 (iii) against whom the state has an unsatisfied money judgment.
382-186
471+230
383472 (4)(a) Notwithstanding Subsection (2) and for purposes of administration, the
384-187
473+231
385474 commission may by rule, made in accordance with Title 63G, Chapter 3, Utah
386-188
475+232
387476 Administrative Rulemaking Act, provide for a reciprocal exchange of information
388-189
477+- 7 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
478+233
389479 with:
390-190
480+234
391481 (i) the United States Internal Revenue Service; or
392-191
482+235
393483 (ii) the revenue service of any other state.
394-192
484+236
395485 (b) Notwithstanding Subsection (2) and for all taxes except individual income tax and
396-193
486+237
397487 corporate franchise tax, the commission may by rule, made in accordance with Title
398-194
488+238
399489 63G, Chapter 3, Utah Administrative Rulemaking Act, share information gathered
400-195
490+239
401491 from returns and other written statements with the federal government, any other
402-196
492+240
403493 state, any of the political subdivisions of another state, or any political subdivision of
404-197
494+241
405495 this state, except as limited by Sections 59-12-209 and 59-12-210, if the political
406-198
496+242
407497 subdivision, other state, or the federal government grant substantially similar
408-- 6 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
409-199
498+243
410499 privileges to this state.
411-200
500+244
412501 (c) Notwithstanding Subsection (2) and for all taxes except individual income tax and
413-201
502+245
414503 corporate franchise tax, the commission may by rule, in accordance with Title 63G,
415-202
504+246
416505 Chapter 3, Utah Administrative Rulemaking Act, provide for the issuance of
417-203
506+247
418507 information concerning the identity and other information of taxpayers who have
419-204
508+248
420509 failed to file tax returns or to pay any tax due.
421-205
510+249
422511 (d) Notwithstanding Subsection (2), the commission shall provide to the director of the
423-206
512+250
424513 Division of Environmental Response and Remediation, as defined in Section
425-207
514+251
426515 19-6-402, as requested by the director of the Division of Environmental Response
427-208
516+252
428517 and Remediation, any records, returns, or other information filed with the
429-209
518+253
430519 commission under Chapter 13, Motor and Special Fuel Tax Act, or Section
431-210
520+254
432521 19-6-410.5 regarding the environmental assurance program participation fee.
433-211
522+255
434523 (e) Notwithstanding Subsection (2), at the request of any person the commission shall
435-212
524+256
436525 provide that person sales and purchase volume data reported to the commission on a
437-213
526+257
438527 report, return, or other information filed with the commission under:
439-214
528+258
440529 (i) Chapter 13, Part 2, Motor Fuel; or
441-215
530+259
442531 (ii) Chapter 13, Part 4, Aviation Fuel.
443-216
532+260
444533 (f) Notwithstanding Subsection (2), upon request from a tobacco product manufacturer,
445-217
534+261
446535 as defined in Section 59-22-202, the commission shall report to the manufacturer:
447-218
536+262
448537 (i) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
449-219
538+263
450539 manufacturer and reported to the commission for the previous calendar year under
451-220
540+264
452541 Section 59-14-407; and
453-221
542+265
454543 (ii) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
455-222
544+266
456545 manufacturer for which a tax refund was granted during the previous calendar
457-223
546+- 8 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
547+267
458548 year under Section 59-14-401 and reported to the commission under Subsection
459-224
549+268
460550 59-14-401(1)(a)(v).
461-225
551+269
462552 (g) Notwithstanding Subsection (2), the commission shall notify manufacturers,
463-226
553+270
464554 distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is
465-227
555+271
466556 prohibited from selling cigarettes to consumers within the state under Subsection
467-228
557+272
468558 59-14-210(2).
469-229
559+273
470560 (h) Notwithstanding Subsection (2), the commission may:
471-230
561+274
472562 (i) provide to the Division of Consumer Protection within the Department of
473-231
563+275
474564 Commerce and the attorney general data:
475-232
565+276
476566 (A) reported to the commission under Section 59-14-212; or
477-- 7 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
478-233
567+277
479568 (B) related to a violation under Section 59-14-211; and
480-234
569+278
481570 (ii) upon request, provide to any person data reported to the commission under
482-235
571+279
483572 Subsections 59-14-212(1)(a) through (c) and Subsection 59-14-212(1)(g).
484-236
573+280
485574 (i) Notwithstanding Subsection (2), the commission shall, at the request of a committee
486-237
575+281
487576 of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's
488-238
577+282
489578 Office of Planning and Budget, provide to the committee or office the total amount of
490-239
579+283
491580 revenues collected by the commission under Chapter 24, Radioactive Waste Facility
492-240
581+284
493582 Tax Act, for the time period specified by the committee or office.
494-241
583+285
495584 (j) Notwithstanding Subsection (2), the commission shall make the directory required by
496-242
585+286
497586 Section 59-14-603 available for public inspection.
498-243
587+287
499588 (k) Notwithstanding Subsection (2), the commission may share information with federal,
500-244
589+288
501590 state, or local agencies as provided in Subsection 59-14-606(3).
502-245
591+289
503592 (l)(i) Notwithstanding Subsection (2), the commission shall provide the Office of
504-246
593+290
505594 Recovery Services within the Department of Health and Human Services any
506-247
595+291
507596 relevant information obtained from a return filed under Chapter 10, Individual
508-248
597+292
509598 Income Tax Act, regarding a taxpayer who has become obligated to the Office of
510-249
599+293
511600 Recovery Services.
512-250
601+294
513602 (ii) The information described in Subsection (4)(l)(i) may be provided by the Office
514-251
603+295
515604 of Recovery Services to any other state's child support collection agency involved
516-252
605+296
517606 in enforcing that support obligation.
518-253
607+297
519608 (m)(i) Notwithstanding Subsection (2), upon request from the state court
520-254
609+298
521610 administrator, the commission shall provide to the state court administrator, the
522-255
611+299
523612 name, address, telephone number, county of residence, and social security number
524-256
613+300
525614 on resident returns filed under Chapter 10, Individual Income Tax Act.
526-257
615+- 9 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
616+301
527617 (ii) The state court administrator may use the information described in Subsection
528-258
618+302
529619 (4)(m)(i) only as a source list for the master jury list described in Section
530-259
620+303
531621 78B-1-106.
532-260
622+304
533623 (n)(i) As used in this Subsection (4)(n):
534-261
624+305
535625 (A) "GOEO" means the Governor's Office of Economic Opportunity created in
536-262
626+306
537627 Section 63N-1a-301.
538-263
628+307
539629 (B) "Income tax information" means information gained by the commission that is
540-264
630+308
541631 required to be attached to or included in a return filed with the commission
542-265
632+309
543633 under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10,
544-266
634+310
545635 Individual Income Tax Act.
546-- 8 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
547-267
636+311
548637 (C) "Other tax information" means information gained by the commission that is
549-268
638+312
550639 required to be attached to or included in a return filed with the commission
551-269
640+313
552641 except for a return filed under Chapter 7, Corporate Franchise and Income
553-270
642+314
554643 Taxes, or Chapter 10, Individual Income Tax Act.
555-271
644+315
556645 (D) "Tax information" means income tax information or other tax information.
557-272
646+316
558647 (ii)(A) Notwithstanding Subsection (2) and except as provided in Subsection
559-273
648+317
560649 (4)(n)(ii)(B) or (C), the commission shall at the request of GOEO provide to
561-274
650+318
562651 GOEO all income tax information.
563-275
652+319
564653 (B) For purposes of a request for income tax information made under Subsection
565-276
654+320
566655 (4)(n)(ii)(A), GOEO may not request and the commission may not provide to
567-277
656+321
568657 GOEO a person's address, name, social security number, or taxpayer
569-278
658+322
570659 identification number.
571-279
660+323
572661 (C) In providing income tax information to GOEO, the commission shall in all
573-280
662+324
574663 instances protect the privacy of a person as required by Subsection (4)(n)(ii)(B).
575-281
664+325
576665 (iii)(A) Notwithstanding Subsection (2) and except as provided in Subsection
577-282
666+326
578667 (4)(n)(iii)(B), the commission shall at the request of GOEO provide to GOEO
579-283
668+327
580669 other tax information.
581-284
670+328
582671 (B) Before providing other tax information to GOEO, the commission shall redact
583-285
672+329
584673 or remove any name, address, social security number, or taxpayer identification
585-286
674+330
586675 number.
587-287
676+331
588677 (iv) GOEO may provide tax information received from the commission in accordance
589-288
678+332
590679 with this Subsection (4)(n) only:
591-289
680+333
592681 (A) as a fiscal estimate, fiscal note information, or statistical information; and
593-290
682+334
594683 (B) if the tax information is classified to prevent the identification of a particular
595-291
684+- 10 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
685+335
596686 return.
597-292
687+336
598688 (v)(A) A person may not request tax information from GOEO under Title 63G,
599-293
689+337
600690 Chapter 2, Government Records Access and Management Act, or this section,
601-294
691+338
602692 if GOEO received the tax information from the commission in accordance with
603-295
693+339
604694 this Subsection (4)(n).
605-296
695+340
606696 (B) GOEO may not provide to a person that requests tax information in
607-297
697+341
608698 accordance with Subsection (4)(n)(v)(A) any tax information other than the tax
609-298
699+342
610700 information GOEO provides in accordance with Subsection (4)(n)(iv).
611-299
701+343
612702 (o) Notwithstanding Subsection (2), the commission may provide to the governing board
613-300
703+344
614704 of the agreement or a taxing official of another state, the District of Columbia, the
615-- 9 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
616-301
705+345
617706 United States, or a territory of the United States:
618-302
707+346
619708 (i) the following relating to an agreement sales and use tax:
620-303
709+347
621710 (A) information contained in a return filed with the commission;
622-304
711+348
623712 (B) information contained in a report filed with the commission;
624-305
713+349
625714 (C) a schedule related to Subsection (4)(o)(i)(A) or (B); or
626-306
715+350
627716 (D) a document filed with the commission; or
628-307
717+351
629718 (ii) a report of an audit or investigation made with respect to an agreement sales and
630-308
719+352
631720 use tax.
632-309
721+353
633722 (p) Notwithstanding Subsection (2), the commission may provide information
634-310
723+354
635724 concerning a taxpayer's state income tax return or state income tax withholding
636-311
725+355
637726 information to the Driver License Division if the Driver License Division:
638-312
727+356
639728 (i) requests the information; and
640-313
729+357
641730 (ii) provides the commission with a signed release form from the taxpayer allowing
642-314
731+358
643732 the Driver License Division access to the information.
644-315
733+359
645734 (q) Notwithstanding Subsection (2), the commission shall provide to the Utah
646-316
735+360
647736 Communications Authority, or a division of the Utah Communications Authority, the
648-317
737+361
649738 information requested by the authority under Sections 63H-7a-302, 63H-7a-402, and
650-318
739+362
651740 63H-7a-502.
652-319
741+363
653742 (r) Notwithstanding Subsection (2), the commission shall provide to the Utah
654-320
743+364
655744 Educational Savings Plan information related to a resident or nonresident individual's
656-321
745+365
657746 contribution to a Utah Educational Savings Plan account as designated on the
658-322
747+366
659748 resident or nonresident's individual income tax return as provided under Section
660-323
749+367
661750 59-10-1313.
662-324
751+368
663752 (s) Notwithstanding Subsection (2), for the purpose of verifying eligibility under
664-325
753+- 11 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
754+369
665755 Sections 26B-3-106 and 26B-3-903, the commission shall provide an eligibility
666-326
756+370
667757 worker with the Department of Health and Human Services or its designee with the
668-327
758+371
669759 adjusted gross income of an individual if:
670-328
760+372
671761 (i) an eligibility worker with the Department of Health and Human Services or its
672-329
762+373
673763 designee requests the information from the commission; and
674-330
764+374
675765 (ii) the eligibility worker has complied with the identity verification and consent
676-331
766+375
677767 provisions of Sections 26B-3-106 and 26B-3-903.
678-332
768+376
679769 (t) Notwithstanding Subsection (2), the commission may provide to a county, as
680-333
770+377
681771 determined by the commission, information declared on an individual income tax
682-334
772+378
683773 return in accordance with Section 59-10-103.1 that relates to eligibility to claim a
684-- 10 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
685-335
774+379
686775 residential exemption authorized under Section 59-2-103.
687-336
776+380
688777 (u) Notwithstanding Subsection (2), the commission shall provide a report regarding any
689-337
778+381
690779 access line provider that is over 90 days delinquent in payment to the commission of
691-338
780+382
692781 amounts the access line provider owes under Title 69, Chapter 2, Part 4, Prepaid
693-339
782+383
694783 Wireless Telecommunications Service Charges, to the board of the Utah
695-340
784+384
696785 Communications Authority created in Section 63H-7a-201.
697-341
786+385
698787 (v) Notwithstanding Subsection (2), the commission shall provide the Department of
699-342
788+386
700789 Environmental Quality a report on the amount of tax paid by a radioactive waste
701-343
790+387
702791 facility for the previous calendar year under Section 59-24-103.5.
703-344
792+388
704793 (w) Notwithstanding Subsection (2), the commission may, upon request, provide to the
705-345
794+389
706795 Department of Workforce Services any information received under Chapter 10, Part
707-346
796+390
708797 4, Withholding of Tax, that is relevant to the duties of the Department of Workforce
709-347
798+391
710799 Services.
711-348
800+392
712801 (x) Notwithstanding Subsection (2), the commission may provide the Public Service
713-349
802+393
714803 Commission or the Division of Public Utilities information related to a seller that
715-350
804+394
716805 collects and remits to the commission a charge described in Subsection 69-2-405(2),
717-351
806+395
718807 including the seller's identity and the number of charges described in Subsection
719-352
808+396
720809 69-2-405(2) that the seller collects.
721-353
810+397
722811 (y)(i) Notwithstanding Subsection (2), the commission shall provide to each
723-354
812+398
724813 qualifying jurisdiction the collection data necessary to verify the revenue collected
725-355
814+399
726815 by the commission for a distributed tax, fee, or charge collected within the
727-356
816+400
728817 qualifying jurisdiction.
729-357
818+401
730819 (ii) In addition to the information provided under Subsection (4)(y)(i), the
731-358
820+402
732821 commission shall provide a qualifying jurisdiction with copies of returns and other
733-359
822+- 12 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
823+403
734824 information relating to a distributed tax, fee, or charge collected within the
735-360
825+404
736826 qualifying jurisdiction.
737-361
827+405
738828 (iii)(A) To obtain the information described in Subsection (4)(y)(ii), the chief
739-362
829+406
740830 executive officer or the chief executive officer's designee of the qualifying
741-363
831+407
742832 jurisdiction shall submit a written request to the commission that states the
743-364
833+408
744834 specific information sought and how the qualifying jurisdiction intends to use
745-365
835+409
746836 the information.
747-366
837+410
748838 (B) The information described in Subsection (4)(y)(ii) is available only in official
749-367
839+411
750840 matters of the qualifying jurisdiction.
751-368
841+412
752842 (iv) Information that a qualifying jurisdiction receives in response to a request under
753-- 11 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
754-369
843+413
755844 this subsection is:
756-370
845+414
757846 (A) classified as a private record under Title 63G, Chapter 2, Government Records
758-371
847+415
759848 Access and Management Act; and
760-372
849+416
761850 (B) subject to the confidentiality requirements of this section.
762-373
851+417
763852 (z) Notwithstanding Subsection (2), the commission shall provide the Alcoholic
764-374
853+418
765854 Beverage Services Commission, upon request, with taxpayer status information
766-375
855+419
767856 related to state tax obligations necessary to comply with the requirements described
768-376
857+420
769858 in Section 32B-1-203.
770-377
859+421
771860 (aa) Notwithstanding Subsection (2), the commission shall inform the Department of
772-378
861+422
773862 Workforce Services, as soon as practicable, whether an individual claimed and is
774-379
863+423
775864 entitled to claim a federal earned income tax credit for the year requested by the
776-380
865+424
777866 Department of Workforce Services if:
778-381
867+425
779868 (i) the Department of Workforce Services requests this information; and
780-382
869+426
781870 (ii) the commission has received the information release described in Section
782-383
871+427
783872 35A-9-604.
784-384
873+428
785874 (bb)(i) As used in this Subsection (4)(bb), "unclaimed property administrator" means
786-385
875+429
787876 the administrator or the administrator's agent, as those terms are defined in Section
788-386
877+430
789878 67-4a-102.
790-387
879+431
791880 (ii)(A) Notwithstanding Subsection (2), upon request from the unclaimed property
792-388
881+432
793882 administrator and to the extent allowed under federal law, the commission shall
794-389
883+433
795884 provide the unclaimed property administrator the name, address, telephone
796-390
885+434
797886 number, county of residence, and social security number or federal employer
798-391
887+435
799888 identification number on any return filed under Chapter 7, Corporate Franchise
800-392
889+436
801890 and Income Taxes, or Chapter 10, Individual Income Tax Act.
802-393
891+- 13 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
892+437
803893 (B) The unclaimed property administrator may use the information described in
804-394
894+438
805895 Subsection (4)(bb)(ii)(A) only for the purpose of returning unclaimed property
806-395
896+439
807897 to the property's owner in accordance with Title 67, Chapter 4a, Revised
808-396
898+440
809899 Uniform Unclaimed Property Act.
810-397
900+441
811901 (iii) The unclaimed property administrator is subject to the confidentiality provisions
812-398
902+442
813903 of this section with respect to any information the unclaimed property
814-399
904+443
815905 administrator receives under this Subsection (4)(bb).
816-400
906+444
817907 (cc) Notwithstanding Subsection (2), the commission may, upon request, disclose a
818-401
908+445
819909 taxpayer's state individual income tax information to a program manager of the Utah
820-402
910+446
821911 Fits All Scholarship Program under Section 53F-6-402 if:
822-- 12 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
823-403
912+447
824913 (i) the taxpayer consents in writing to the disclosure;
825-404
914+448
826915 (ii) the taxpayer's written consent includes the taxpayer's name, social security
827-405
916+449
828917 number, and any other information the commission requests that is necessary to
829-406
918+450
830919 verify the identity of the taxpayer; and
831-407
920+451
832921 (iii) the program manager provides the taxpayer's written consent to the commission.
833-408
922+452
834923 (dd) Notwithstanding Subsection (2), the commission may provide to the Division of
835-409
924+453
836925 Finance within the Department of Government Operations any information necessary
837-410
926+454
838927 to facilitate a payment from the commission to a taxpayer, including:
839-411
928+455
840929 (i) the name of the taxpayer entitled to the payment or any other person legally
841-412
930+456
842931 authorized to receive the payment;
843-413
932+457
844933 (ii) the taxpayer identification number of the taxpayer entitled to the payment;
845-414
934+458
846935 (iii) the payment identification number and amount of the payment;
847-415
936+459
848937 (iv) the tax year to which the payment applies and date on which the payment is due;
849-416
938+460
850939 (v) a mailing address to which the payment may be directed; and
851-417
940+461
852941 (vi) information regarding an account at a depository institution to which the
853-418
942+462
854943 payment may be directed, including the name of the depository institution, the
855-419
944+463
856945 type of account, the account number, and the routing number for the account.
857-420
946+464
858947 (ee) Notwithstanding Subsection (2), the commission shall provide the total amount of
859-421
948+465
860949 revenues collected by the commission under Subsection 59-5-202(5):
861-422
950+466
862951 (i) at the request of a committee of the Legislature, the Office of the Legislative
863-423
952+467
864953 Fiscal Analyst, or the Governor's Office of Planning and Budget, to the committee
865-424
954+468
866955 or office for the time period specified by the committee or office; and
867-425
956+469
868957 (ii) to the Division of Finance for purposes of the Division of Finance administering
869-426
958+470
870959 Subsection 59-5-202(5).
871-427
960+- 14 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
961+471
872962 (ff) Notwithstanding Subsection (2), the commission may provide the Department of
873-428
963+472
874964 Agriculture and Food with information from a return filed in accordance with
875-429
965+473
876966 Chapter 31, [Cannabinoid] Specialized Product Licensing and Tax Act.
877-430
967+474
878968 (5)(a) Each report and return shall be preserved for at least three years.
879-431
969+475
880970 (b) After the three-year period provided in Subsection (5)(a) the commission may
881-432
971+476
882972 destroy a report or return.
883-433
973+477
884974 (6)(a) Any individual who violates this section is guilty of a class A misdemeanor.
885-434
975+478
886976 (b) If the individual described in Subsection (6)(a) is an officer or employee of the state,
887-435
977+479
888978 the individual shall be dismissed from office and be disqualified from holding public
889-436
979+480
890980 office in this state for a period of five years thereafter.
891-- 13 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
892-437
981+481
893982 (c) Notwithstanding Subsection (6)(a) or (b), GOEO, when requesting information in
894-438
983+482
895984 accordance with Subsection (4)(n)(iii), or an individual who requests information in
896-439
985+483
897986 accordance with Subsection (4)(n)(v):
898-440
987+484
899988 (i) is not guilty of a class A misdemeanor; and
900-441
989+485
901990 (ii) is not subject to:
902-442
991+486
903992 (A) dismissal from office in accordance with Subsection (6)(b); or
904-443
993+487
905994 (B) disqualification from holding public office in accordance with Subsection
906-444
995+488
907996 (6)(b).
908-445
997+489
909998 (d) Notwithstanding Subsection (6)(a) or (b), for a disclosure of information to the
910-446
999+490
9111000 Office of the Legislative Auditor General in accordance with Title 36, Chapter 12,
912-447
1001+491
9131002 Legislative Organization, an individual described in Subsection (2):
914-448
1003+492
9151004 (i) is not guilty of a class A misdemeanor; and
916-449
1005+493
9171006 (ii) is not subject to:
918-450
1007+494
9191008 (A) dismissal from office in accordance with Subsection (6)(b); or
920-451
1009+495
9211010 (B) disqualification from holding public office in accordance with Subsection
922-452
1011+496
9231012 (6)(b).
924-453
1013+497
9251014 (7) Except as provided in Section 59-1-404, this part does not apply to the property tax.
926-454
927-Section 6. Section 59-12-104 is amended to read:
928-455
1015+498
1016+Section 7. Section 59-12-104 is amended to read:
1017+499
9291018 59-12-104 (Effective 01/01/26). Exemptions.
930-456
1019+500
9311020 Exemptions from the taxes imposed by this chapter are as follows:
932-457
1021+501
9331022 (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
934-458
1023+502
9351024 under Chapter 13, Motor and Special Fuel Tax Act;
936-459
1025+503
9371026 (2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
938-460
1027+504
9391028 subdivisions; however, this exemption does not apply to sales of:
940-461
1029+- 15 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
1030+505
9411031 (a) construction materials except:
942-462
1032+506
9431033 (i) construction materials purchased by or on behalf of institutions of the public
944-463
1034+507
9451035 education system as defined in Utah Constitution, Article X, Section 2, provided
946-464
1036+508
9471037 the construction materials are clearly identified and segregated and installed or
948-465
1038+509
9491039 converted to real property which is owned by institutions of the public education
950-466
1040+510
9511041 system; and
952-467
1042+511
9531043 (ii) construction materials purchased by the state, its institutions, or its political
954-468
1044+512
9551045 subdivisions which are installed or converted to real property by employees of the
956-469
1046+513
9571047 state, its institutions, or its political subdivisions; or
958-470
1048+514
9591049 (b) tangible personal property in connection with the construction, operation,
960-- 14 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
961-471
1050+515
9621051 maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or
963-472
1052+516
9641053 facilities providing additional project capacity, as defined in Section 11-13-103;
965-473
1054+517
9661055 (3)(a) sales of an item described in Subsection (3)(b) from a vending machine if:
967-474
1056+518
9681057 (i) the proceeds of each sale do not exceed $1; and
969-475
1058+519
9701059 (ii) the seller or operator of the vending machine reports an amount equal to 150% of
971-476
1060+520
9721061 the cost of the item described in Subsection (3)(b) as goods consumed; and
973-477
1062+521
9741063 (b) Subsection (3)(a) applies to:
975-478
1064+522
9761065 (i) food and food ingredients; or
977-479
1066+523
9781067 (ii) prepared food;
979-480
1068+524
9801069 (4)(a) sales of the following to a commercial airline carrier for in-flight consumption:
981-481
1070+525
9821071 (i) alcoholic beverages;
983-482
1072+526
9841073 (ii) food and food ingredients; or
985-483
1074+527
9861075 (iii) prepared food;
987-484
1076+528
9881077 (b) sales of tangible personal property or a product transferred electronically:
989-485
1078+529
9901079 (i) to a passenger;
991-486
1080+530
9921081 (ii) by a commercial airline carrier; and
993-487
1082+531
9941083 (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
995-488
1084+532
9961085 (c) services related to Subsection (4)(a) or (b);
997-489
1086+533
9981087 (5) sales of parts and equipment for installation in an aircraft operated by a common carrier
999-490
1088+534
10001089 in interstate or foreign commerce;
1001-491
1090+535
10021091 (6) sales of commercials, motion picture films, prerecorded audio program tapes or records,
1003-492
1092+536
10041093 and prerecorded video tapes by a producer, distributor, or studio to a motion picture
1005-493
1094+537
10061095 exhibitor, distributor, or commercial television or radio broadcaster;
1007-494
1096+538
10081097 (7)(a) except as provided in Subsection (85) and subject to Subsection (7)(b), sales of
1009-495
1098+- 16 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
1099+539
10101100 cleaning or washing of tangible personal property if the cleaning or washing of the
1011-496
1101+540
10121102 tangible personal property is not assisted cleaning or washing of tangible personal
1013-497
1103+541
10141104 property;
1015-498
1105+542
10161106 (b) if a seller that sells at the same business location assisted cleaning or washing of
1017-499
1107+543
10181108 tangible personal property and cleaning or washing of tangible personal property that
1019-500
1109+544
10201110 is not assisted cleaning or washing of tangible personal property, the exemption
1021-501
1111+545
10221112 described in Subsection (7)(a) applies if the seller separately accounts for the sales of
1023-502
1113+546
10241114 the assisted cleaning or washing of the tangible personal property; and
1025-503
1115+547
10261116 (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3, Utah
1027-504
1117+548
10281118 Administrative Rulemaking Act, the commission may make rules:
1029-- 15 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
1030-505
1119+549
10311120 (i) governing the circumstances under which sales are at the same business location;
1032-506
1121+550
10331122 and
1034-507
1123+551
10351124 (ii) establishing the procedures and requirements for a seller to separately account for
1036-508
1125+552
10371126 sales of assisted cleaning or washing of tangible personal property;
1038-509
1127+553
10391128 (8) sales made to or by religious or charitable institutions in the conduct of their regular
1040-510
1129+554
10411130 religious or charitable functions and activities, if the requirements of Section 59-12-104.1
1042-511
1131+555
10431132 are fulfilled;
1044-512
1133+556
10451134 (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of this
1046-513
1135+557
10471136 state if:
1048-514
1137+558
10491138 (a) the sale is not from the vehicle's lessor to the vehicle's lessee;
1050-515
1139+559
10511140 (b) the vehicle is not registered in this state; and
1052-516
1141+560
10531142 (c)(i) the vehicle is not used in this state; or
1054-517
1143+561
10551144 (ii) the vehicle is used in this state:
1056-518
1145+562
10571146 (A) if the vehicle is not used to conduct business, for a time period that does not
1058-519
1147+563
10591148 exceed the longer of:
1060-520
1149+564
10611150 (I) 30 days in any calendar year; or
1062-521
1151+565
10631152 (II) the time period necessary to transport the vehicle to the borders of this
1064-522
1153+566
10651154 state; or
1066-523
1155+567
10671156 (B) if the vehicle is used to conduct business, for the time period necessary to
1068-524
1157+568
10691158 transport the vehicle to the borders of this state;
1070-525
1159+569
10711160 (10)(a) amounts paid for an item described in Subsection (10)(b) if:
1072-526
1161+570
10731162 (i) the item is intended for human use; and
1074-527
1163+571
10751164 (ii)(A) a prescription was issued for the item; or
1076-528
1165+572
10771166 (B) the item was purchased by a hospital or other medical facility; and
1078-529
1167+- 17 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
1168+573
10791169 (b)(i) Subsection (10)(a) applies to:
1080-530
1170+574
10811171 (A) a drug;
1082-531
1172+575
10831173 (B) a syringe; or
1084-532
1174+576
10851175 (C) a stoma supply; and
1086-533
1176+577
10871177 (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1088-534
1178+578
10891179 the commission may by rule define the terms:
1090-535
1180+579
10911181 (A) "syringe"; or
1092-536
1182+580
10931183 (B) "stoma supply";
1094-537
1184+581
10951185 (11) purchases or leases exempt under Section 19-12-201;
1096-538
1186+582
10971187 (12)(a) sales of an item described in Subsection (12)(c) served by:
1098-- 16 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
1099-539
1188+583
11001189 (i) the following if the item described in Subsection (12)(c) is not available to the
1101-540
1190+584
11021191 general public:
1103-541
1192+585
11041193 (A) a church; or
1105-542
1194+586
11061195 (B) a charitable institution; or
1107-543
1196+587
11081197 (ii) an institution of higher education if:
1109-544
1198+588
11101199 (A) the item described in Subsection (12)(c) is not available to the general public;
1111-545
1200+589
11121201 or
1113-546
1202+590
11141203 (B) the item described in Subsection (12)(c) is prepaid as part of a student meal
1115-547
1204+591
11161205 plan offered by the institution of higher education; or
1117-548
1206+592
11181207 (b) sales of an item described in Subsection (12)(c) provided for a patient by:
1119-549
1208+593
11201209 (i) a medical facility; or
1121-550
1210+594
11221211 (ii) a nursing facility; and
1123-551
1212+595
11241213 (c) Subsections (12)(a) and (b) apply to:
1125-552
1214+596
11261215 (i) food and food ingredients;
1127-553
1216+597
11281217 (ii) prepared food; or
1129-554
1218+598
11301219 (iii) alcoholic beverages;
1131-555
1220+599
11321221 (13)(a) except as provided in Subsection (13)(b), the sale of tangible personal property
1133-556
1222+600
11341223 or a product transferred electronically by a person:
1135-557
1224+601
11361225 (i) regardless of the number of transactions involving the sale of that tangible
1137-558
1226+602
11381227 personal property or product transferred electronically by that person; and
1139-559
1228+603
11401229 (ii) not regularly engaged in the business of selling that type of tangible personal
1141-560
1230+604
11421231 property or product transferred electronically;
1143-561
1232+605
11441233 (b) this Subsection (13) does not apply if:
1145-562
1234+606
11461235 (i) the sale is one of a series of sales of a character to indicate that the person is
1147-563
1236+- 18 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
1237+607
11481238 regularly engaged in the business of selling that type of tangible personal property
1149-564
1239+608
11501240 or product transferred electronically;
1151-565
1241+609
11521242 (ii) the person holds that person out as regularly engaged in the business of selling
1153-566
1243+610
11541244 that type of tangible personal property or product transferred electronically;
1155-567
1245+611
11561246 (iii) the person sells an item of tangible personal property or product transferred
1157-568
1247+612
11581248 electronically that the person purchased as a sale that is exempt under Subsection
1159-569
1249+613
11601250 (25); or
1161-570
1251+614
11621252 (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws
1163-571
1253+615
11641254 of this state in which case the tax is based upon:
1165-572
1255+616
11661256 (A) the bill of sale, lease agreement, or other written evidence of value of the
1167-- 17 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
1168-573
1257+617
11691258 vehicle or vessel being sold; or
1170-574
1259+618
11711260 (B) in the absence of a bill of sale, lease agreement, or other written evidence of
1172-575
1261+619
11731262 value, the fair market value of the vehicle or vessel being sold at the time of the
1174-576
1263+620
11751264 sale as determined by the commission; and
1176-577
1265+621
11771266 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1178-578
1267+622
11791268 commission shall make rules establishing the circumstances under which:
1180-579
1269+623
11811270 (i) a person is regularly engaged in the business of selling a type of tangible personal
1182-580
1271+624
11831272 property or product transferred electronically;
1184-581
1273+625
11851274 (ii) a sale of tangible personal property or a product transferred electronically is one
1186-582
1275+626
11871276 of a series of sales of a character to indicate that a person is regularly engaged in
1188-583
1277+627
11891278 the business of selling that type of tangible personal property or product
1190-584
1279+628
11911280 transferred electronically; or
1192-585
1281+629
11931282 (iii) a person holds that person out as regularly engaged in the business of selling a
1194-586
1283+630
11951284 type of tangible personal property or product transferred electronically;
1196-587
1285+631
11971286 (14) amounts paid or charged for a purchase or lease of machinery, equipment, normal
1198-588
1287+632
11991288 operating repair or replacement parts, or materials, except for office equipment or office
1200-589
1289+633
12011290 supplies, by:
1202-590
1291+634
12031292 (a) a manufacturing facility that:
1204-591
1293+635
12051294 (i) is located in the state; and
1206-592
1295+636
12071296 (ii) uses or consumes the machinery, equipment, normal operating repair or
1208-593
1297+637
12091298 replacement parts, or materials:
1210-594
1299+638
12111300 (A) in the manufacturing process to manufacture an item sold as tangible personal
1212-595
1301+639
12131302 property, as the commission may define that phrase in accordance with Title
1214-596
1303+640
12151304 63G, Chapter 3, Utah Administrative Rulemaking Act; or
1216-597
1305+- 19 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
1306+641
12171307 (B) for a scrap recycler, to process an item sold as tangible personal property, as
1218-598
1308+642
12191309 the commission may define that phrase in accordance with Title 63G, Chapter
1220-599
1310+643
12211311 3, Utah Administrative Rulemaking Act;
1222-600
1312+644
12231313 (b) an establishment, as the commission defines that term in accordance with Title 63G,
1224-601
1314+645
12251315 Chapter 3, Utah Administrative Rulemaking Act, that:
1226-602
1316+646
12271317 (i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
1228-603
1318+647
12291319 Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
1230-604
1320+648
12311321 Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except
1232-605
1322+649
12331323 Fuels) Mining, of the 2002 North American Industry Classification System of the
1234-606
1324+650
12351325 federal Executive Office of the President, Office of Management and Budget;
1236-- 18 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
1237-607
1326+651
12381327 (ii) is located in the state; and
1239-608
1328+652
12401329 (iii) uses or consumes the machinery, equipment, normal operating repair or
1241-609
1330+653
12421331 replacement parts, or materials in:
1243-610
1332+654
12441333 (A) the production process to produce an item sold as tangible personal property,
1245-611
1334+655
12461335 as the commission may define that phrase in accordance with Title 63G,
1247-612
1336+656
12481337 Chapter 3, Utah Administrative Rulemaking Act;
1249-613
1338+657
12501339 (B) research and development, as the commission may define that phrase in
1251-614
1340+658
12521341 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1253-615
1342+659
12541343 (C) transporting, storing, or managing tailings, overburden, or similar waste
1255-616
1344+660
12561345 materials produced from mining;
1257-617
1346+661
12581347 (D) developing or maintaining a road, tunnel, excavation, or similar feature used
1259-618
1348+662
12601349 in mining; or
1261-619
1350+663
12621351 (E) preventing, controlling, or reducing dust or other pollutants from mining; or
1263-620
1352+664
12641353 (c) an establishment, as the commission defines that term in accordance with Title 63G,
1265-621
1354+665
12661355 Chapter 3, Utah Administrative Rulemaking Act, that:
1267-622
1356+666
12681357 (i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North
1269-623
1358+667
12701359 American Industry Classification System of the federal Executive Office of the
1271-624
1360+668
12721361 President, Office of Management and Budget;
1273-625
1362+669
12741363 (ii) is located in the state; and
1275-626
1364+670
12761365 (iii) uses or consumes the machinery, equipment, normal operating repair or
1277-627
1366+671
12781367 replacement parts, or materials in the operation of the web search portal;
1279-628
1368+672
12801369 (15)(a) sales of the following if the requirements of Subsection (15)(b) are met:
1281-629
1370+673
12821371 (i) tooling;
1283-630
1372+674
12841373 (ii) special tooling;
1285-631
1374+- 20 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
1375+675
12861376 (iii) support equipment;
1287-632
1377+676
12881378 (iv) special test equipment; or
1289-633
1379+677
12901380 (v) parts used in the repairs or renovations of tooling or equipment described in
1291-634
1381+678
12921382 Subsections (15)(a)(i) through (iv); and
1293-635
1383+679
12941384 (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
1295-636
1385+680
12961386 (i) the tooling, equipment, or parts are used or consumed exclusively in the
1297-637
1387+681
12981388 performance of any aerospace or electronics industry contract with the United
1299-638
1389+682
13001390 States government or any subcontract under that contract; and
1301-639
1391+683
13021392 (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
1303-640
1393+684
13041394 title to the tooling, equipment, or parts is vested in the United States government
1305-- 19 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
1306-641
1395+685
13071396 as evidenced by:
1308-642
1397+686
13091398 (A) a government identification tag placed on the tooling, equipment, or parts; or
1310-643
1399+687
13111400 (B) listing on a government-approved property record if placing a government
1312-644
1401+688
13131402 identification tag on the tooling, equipment, or parts is impractical;
1314-645
1403+689
13151404 (16) sales of newspapers or newspaper subscriptions;
1316-646
1405+690
13171406 (17)(a) except as provided in Subsection (17)(b), tangible personal property or a product
1318-647
1407+691
13191408 transferred electronically traded in as full or part payment of the purchase price,
1320-648
1409+692
13211410 except that for purposes of calculating sales or use tax upon vehicles not sold by a
1322-649
1411+693
13231412 vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
1324-650
1413+694
13251414 (i) the bill of sale or other written evidence of value of the vehicle being sold and the
1326-651
1415+695
13271416 vehicle being traded in; or
1328-652
1417+696
13291418 (ii) in the absence of a bill of sale or other written evidence of value, the then existing
1330-653
1419+697
13311420 fair market value of the vehicle being sold and the vehicle being traded in, as
1332-654
1421+698
13331422 determined by the commission; and
1334-655
1423+699
13351424 (b) Subsection (17)(a) does not apply to the following items of tangible personal
1336-656
1425+700
13371426 property or products transferred electronically traded in as full or part payment of the
1338-657
1427+701
13391428 purchase price:
1340-658
1429+702
13411430 (i) money;
1342-659
1431+703
13431432 (ii) electricity;
1344-660
1433+704
13451434 (iii) water;
1346-661
1435+705
13471436 (iv) gas; or
1348-662
1437+706
13491438 (v) steam;
1350-663
1439+707
13511440 (18)(a)(i) except as provided in Subsection (18)(b), sales of tangible personal
1352-664
1441+708
13531442 property or a product transferred electronically used or consumed primarily and
1354-665
1443+- 21 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
1444+709
13551445 directly in farming operations, regardless of whether the tangible personal
1356-666
1446+710
13571447 property or product transferred electronically:
1358-667
1448+711
13591449 (A) becomes part of real estate; or
1360-668
1450+712
13611451 (B) is installed by a farmer, contractor, or subcontractor; or
1362-669
1452+713
13631453 (ii) sales of parts used in the repairs or renovations of tangible personal property or a
1364-670
1454+714
13651455 product transferred electronically if the tangible personal property or product
1366-671
1456+715
13671457 transferred electronically is exempt under Subsection (18)(a)(i); and
1368-672
1458+716
13691459 (b) amounts paid or charged for the following are subject to the taxes imposed by this
1370-673
1460+717
13711461 chapter:
1372-674
1462+718
13731463 (i)(A) subject to Subsection (18)(b)(i)(B), machinery, equipment, materials, or
1374-- 20 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
1375-675
1464+719
13761465 supplies if used in a manner that is incidental to farming; and
1377-676
1466+720
13781467 (B) tangible personal property that is considered to be used in a manner that is
1379-677
1468+721
13801469 incidental to farming includes:
1381-678
1470+722
13821471 (I) hand tools; or
1383-679
1472+723
13841473 (II) maintenance and janitorial equipment and supplies;
1385-680
1474+724
13861475 (ii)(A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
1387-681
1476+725
13881477 transferred electronically if the tangible personal property or product
1389-682
1478+726
13901479 transferred electronically is used in an activity other than farming; and
1391-683
1480+727
13921481 (B) tangible personal property or a product transferred electronically that is
1393-684
1482+728
13941483 considered to be used in an activity other than farming includes:
1395-685
1484+729
13961485 (I) office equipment and supplies; or
1397-686
1486+730
13981487 (II) equipment and supplies used in:
1399-687
1488+731
14001489 (Aa) the sale or distribution of farm products;
1401-688
1490+732
14021491 (Bb) research; or
1403-689
1492+733
14041493 (Cc) transportation; or
1405-690
1494+734
14061495 (iii) a vehicle required to be registered by the laws of this state during the period
1407-691
1496+735
14081497 ending two years after the date of the vehicle's purchase;
1409-692
1498+736
14101499 (19) sales of hay;
1411-693
1500+737
14121501 (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or garden,
1413-694
1502+738
14141503 farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
1415-695
1504+739
14161505 garden, farm, or other agricultural produce is sold by:
1417-696
1506+740
14181507 (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
1419-697
1508+741
14201509 agricultural produce;
1421-698
1510+742
14221511 (b) an employee of the producer described in Subsection (20)(a); or
1423-699
1512+- 22 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
1513+743
14241514 (c) a member of the immediate family of the producer described in Subsection (20)(a);
1425-700
1515+744
14261516 (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued under
1427-701
1517+745
14281518 the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
1429-702
1519+746
14301520 (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
1431-703
1521+747
14321522 nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
1433-704
1523+748
14341524 wholesaler, or retailer for use in packaging tangible personal property to be sold by that
1435-705
1525+749
14361526 manufacturer, processor, wholesaler, or retailer;
1437-706
1527+750
14381528 (23) a product stored in the state for resale;
1439-707
1529+751
14401530 (24)(a) purchases of a product if:
1441-708
1531+752
14421532 (i) the product is:
1443-- 21 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
1444-709
1533+753
14451534 (A) purchased outside of this state;
1446-710
1535+754
14471536 (B) brought into this state:
1448-711
1537+755
14491538 (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
1450-712
1539+756
14511540 (II) by a nonresident person who is not living or working in this state at the
1452-713
1541+757
14531542 time of the purchase;
1454-714
1543+758
14551544 (C) used for the personal use or enjoyment of the nonresident person described in
1456-715
1545+759
14571546 Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state;
1458-716
1547+760
14591548 and
1460-717
1549+761
14611550 (D) not used in conducting business in this state; and
1462-718
1551+762
14631552 (ii) for:
1464-719
1553+763
14651554 (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use
1466-720
1555+764
14671556 of the product for a purpose for which the product is designed occurs outside of
1468-721
1557+765
14691558 this state;
1470-722
1559+766
14711560 (B) a boat, the boat is registered outside of this state; or
1472-723
1561+767
14731562 (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
1474-724
1563+768
14751564 registered outside of this state;
1476-725
1565+769
14771566 (b) the exemption provided for in Subsection (24)(a) does not apply to:
1478-726
1567+770
14791568 (i) a lease or rental of a product; or
1480-727
1569+771
14811570 (ii) a sale of a vehicle exempt under Subsection (33); and
1482-728
1571+772
14831572 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
1484-729
1573+773
14851574 purposes of Subsection (24)(a), the commission may by rule define what constitutes
1486-730
1575+774
14871576 the following:
1488-731
1577+775
14891578 (i) conducting business in this state if that phrase has the same meaning in this
1490-732
1579+776
14911580 Subsection (24) as in Subsection (63);
1492-733
1581+- 23 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
1582+777
14931583 (ii) the first use of a product if that phrase has the same meaning in this Subsection
1494-734
1584+778
14951585 (24) as in Subsection (63); or
1496-735
1586+779
14971587 (iii) a purpose for which a product is designed if that phrase has the same meaning in
1498-736
1588+780
14991589 this Subsection (24) as in Subsection (63);
1500-737
1590+781
15011591 (25) a product purchased for resale in the regular course of business, either in its original
1502-738
1592+782
15031593 form or as an ingredient or component part of a manufactured or compounded product;
1504-739
1594+783
15051595 (26) a product upon which a sales or use tax was paid to some other state, or one of its
1506-740
1596+784
15071597 subdivisions, except that the state shall be paid any difference between the tax paid and
1508-741
1598+785
15091599 the tax imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment
1510-742
1600+786
15111601 is allowed if the tax paid was greater than the tax imposed by this part and Part 2, Local
1512-- 22 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
1513-743
1602+787
15141603 Sales and Use Tax Act;
1515-744
1604+788
15161605 (27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a person
1517-745
1606+789
15181607 for use in compounding a service taxable under the subsections;
1519-746
1608+790
15201609 (28) purchases made in accordance with the special supplemental nutrition program for
1521-747
1610+791
15221611 women, infants, and children established in 42 U.S.C. Sec. 1786;
1523-748
1612+792
15241613 (29) sales or leases of rolls, rollers, refractory brick, electric motors, or other replacement
1525-749
1614+793
15261615 parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code 3312 of
1527-750
1616+794
15281617 the 1987 Standard Industrial Classification Manual of the federal Executive Office of the
1529-751
1618+795
15301619 President, Office of Management and Budget;
1531-752
1620+796
15321621 (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
1533-753
1622+797
15341623 Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard
1535-754
1624+798
15361625 motor is:
1537-755
1626+799
15381627 (a) not registered in this state; and
1539-756
1628+800
15401629 (b)(i) not used in this state; or
1541-757
1630+801
15421631 (ii) used in this state:
1543-758
1632+802
15441633 (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for
1545-759
1634+803
15461635 a time period that does not exceed the longer of:
1547-760
1636+804
15481637 (I) 30 days in any calendar year; or
1549-761
1638+805
15501639 (II) the time period necessary to transport the boat, boat trailer, or outboard
1551-762
1640+806
15521641 motor to the borders of this state; or
1553-763
1642+807
15541643 (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the
1555-764
1644+808
15561645 time period necessary to transport the boat, boat trailer, or outboard motor to
1557-765
1646+809
15581647 the borders of this state;
1559-766
1648+810
15601649 (31) sales of aircraft manufactured in Utah;
1561-767
1650+- 24 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
1651+811
15621652 (32) amounts paid for the purchase of telecommunications service for purposes of
1563-768
1653+812
15641654 providing telecommunications service;
1565-769
1655+813
15661656 (33) sales, leases, or uses of the following:
1567-770
1657+814
15681658 (a) a vehicle by an authorized carrier; or
1569-771
1659+815
15701660 (b) tangible personal property that is installed on a vehicle:
1571-772
1661+816
15721662 (i) sold or leased to or used by an authorized carrier; and
1573-773
1663+817
15741664 (ii) before the vehicle is placed in service for the first time;
1575-774
1665+818
15761666 (34)(a) 45% of the sales price of any new manufactured home; and
1577-775
1667+819
15781668 (b) 100% of the sales price of any used manufactured home;
1579-776
1669+820
15801670 (35) sales relating to schools and fundraising sales;
1581-- 23 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
1582-777
1671+821
15831672 (36) sales or rentals of durable medical equipment if:
1584-778
1673+822
15851674 (a) a person presents a prescription for the durable medical equipment; and
1586-779
1675+823
15871676 (b) the durable medical equipment is used for home use only;
1588-780
1677+824
15891678 (37)(a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
1590-781
1679+825
15911680 Section 72-11-102; and
1592-782
1681+826
15931682 (b) the commission shall by rule determine the method for calculating sales exempt
1594-783
1683+827
15951684 under Subsection (37)(a) that are not separately metered and accounted for in utility
1596-784
1685+828
15971686 billings;
1598-785
1687+829
15991688 (38) sales to a ski resort of:
1600-786
1689+830
16011690 (a) snowmaking equipment;
1602-787
1691+831
16031692 (b) ski slope grooming equipment;
1604-788
1693+832
16051694 (c) passenger ropeways as defined in Section 72-11-102; or
1606-789
1695+833
16071696 (d) parts used in the repairs or renovations of equipment or passenger ropeways
1608-790
1697+834
16091698 described in Subsections (38)(a) through (c);
1610-791
1699+835
16111700 (39) subject to Subsection 59-12-103(2)(j), sales of natural gas, electricity, heat, coal, fuel
1612-792
1701+836
16131702 oil, or other fuels for industrial use;
1614-793
1703+837
16151704 (40)(a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
1616-794
1705+838
16171706 amusement, entertainment, or recreation an unassisted amusement device as defined
1618-795
1707+839
16191708 in Section 59-12-102;
1620-796
1709+840
16211710 (b) if a seller that sells or rents at the same business location the right to use or operate
1622-797
1711+841
16231712 for amusement, entertainment, or recreation one or more unassisted amusement
1624-798
1713+842
16251714 devices and one or more assisted amusement devices, the exemption described in
1626-799
1715+843
16271716 Subsection (40)(a) applies if the seller separately accounts for the sales or rentals of
1628-800
1717+844
16291718 the right to use or operate for amusement, entertainment, or recreation for the assisted
1630-801
1719+- 25 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
1720+845
16311721 amusement devices; and
1632-802
1722+846
16331723 (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3, Utah
1634-803
1724+847
16351725 Administrative Rulemaking Act, the commission may make rules:
1636-804
1726+848
16371727 (i) governing the circumstances under which sales are at the same business location;
1638-805
1728+849
16391729 and
1640-806
1730+850
16411731 (ii) establishing the procedures and requirements for a seller to separately account for
1642-807
1732+851
16431733 the sales or rentals of the right to use or operate for amusement, entertainment, or
1644-808
1734+852
16451735 recreation for assisted amusement devices;
1646-809
1736+853
16471737 (41)(a) sales of photocopies by:
1648-810
1738+854
16491739 (i) a governmental entity; or
1650-- 24 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
1651-811
1740+855
16521741 (ii) an entity within the state system of public education, including:
1653-812
1742+856
16541743 (A) a school; or
1655-813
1744+857
16561745 (B) the State Board of Education; or
1657-814
1746+858
16581747 (b) sales of publications by a governmental entity;
1659-815
1748+859
16601749 (42) amounts paid for admission to an athletic event at an institution of higher education
1661-816
1750+860
16621751 that is subject to the provisions of Title IX of the Education Amendments of 1972, 20
1663-817
1752+861
16641753 U.S.C. Sec. 1681 et seq.;
1665-818
1754+862
16661755 (43)(a) sales made to or by:
1667-819
1756+863
16681757 (i) an area agency on aging; or
1669-820
1758+864
16701759 (ii) a senior citizen center owned by a county, city, or town; or
1671-821
1760+865
16721761 (b) sales made by a senior citizen center that contracts with an area agency on aging;
1673-822
1762+866
16741763 (44) sales or leases of semiconductor fabricating, processing, research, or development
1675-823
1764+867
16761765 materials regardless of whether the semiconductor fabricating, processing, research, or
1677-824
1766+868
16781767 development materials:
1679-825
1768+869
16801769 (a) actually come into contact with a semiconductor; or
1681-826
1770+870
16821771 (b) ultimately become incorporated into real property;
1683-827
1772+871
16841773 (45) an amount paid by or charged to a purchaser for accommodations and services
1685-828
1774+872
16861775 described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under
1687-829
1776+873
16881777 Section 59-12-104.2;
1689-830
1778+874
16901779 (46) the lease or use of a vehicle issued a temporary sports event registration certificate in
1691-831
1780+875
16921781 accordance with Section 41-3-306 for the event period specified on the temporary sports
1693-832
1782+876
16941783 event registration certificate;
1695-833
1784+877
16961785 (47)(a) sales or uses of electricity, if the sales or uses are made under a retail tariff
1697-834
1786+878
16981787 adopted by the Public Service Commission only for purchase of electricity produced
1699-835
1788+- 26 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
1789+879
17001790 from a new alternative energy source built after January 1, 2016, as designated in the
1701-836
1791+880
17021792 tariff by the Public Service Commission; and
1703-837
1793+881
17041794 (b) for a residential use customer only, the exemption under Subsection (47)(a) applies
1705-838
1795+882
17061796 only to the portion of the tariff rate a customer pays under the tariff described in
1707-839
1797+883
17081798 Subsection (47)(a) that exceeds the tariff rate under the tariff described in Subsection
1709-840
1799+884
17101800 (47)(a) that the customer would have paid absent the tariff;
1711-841
1801+885
17121802 (48) sales or rentals of mobility enhancing equipment if a person presents a prescription for
1713-842
1803+886
17141804 the mobility enhancing equipment;
1715-843
1805+887
17161806 (49) sales of water in a:
1717-844
1807+888
17181808 (a) pipe;
1719-- 25 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
1720-845
1809+889
17211810 (b) conduit;
1722-846
1811+890
17231812 (c) ditch; or
1724-847
1813+891
17251814 (d) reservoir;
1726-848
1815+892
17271816 (50) sales of currency or coins that constitute legal tender of a state, the United States, or a
1728-849
1817+893
17291818 foreign nation;
1730-850
1819+894
17311820 (51)(a) sales of an item described in Subsection (51)(b) if the item:
1732-851
1821+895
17331822 (i) does not constitute legal tender of a state, the United States, or a foreign nation;
1734-852
1823+896
17351824 and
1736-853
1825+897
17371826 (ii) has a gold, silver, or platinum content of 50% or more; and
1738-854
1827+898
17391828 (b) Subsection (51)(a) applies to a gold, silver, or platinum:
1740-855
1829+899
17411830 (i) ingot;
1742-856
1831+900
17431832 (ii) bar;
1744-857
1833+901
17451834 (iii) medallion; or
1746-858
1835+902
17471836 (iv) decorative coin;
1748-859
1837+903
17491838 (52) amounts paid on a sale-leaseback transaction;
1750-860
1839+904
17511840 (53) sales of a prosthetic device:
1752-861
1841+905
17531842 (a) for use on or in a human; and
1754-862
1843+906
17551844 (b)(i) for which a prescription is required; or
1756-863
1845+907
17571846 (ii) if the prosthetic device is purchased by a hospital or other medical facility;
1758-864
1847+908
17591848 (54)(a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
1760-865
1849+909
17611850 machinery or equipment by an establishment described in Subsection (54)(c) if the
1762-866
1851+910
17631852 machinery or equipment is primarily used in the production or postproduction of the
1764-867
1853+911
17651854 following media for commercial distribution:
1766-868
1855+912
17671856 (i) a motion picture;
1768-869
1857+- 27 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
1858+913
17691859 (ii) a television program;
1770-870
1860+914
17711861 (iii) a movie made for television;
1772-871
1862+915
17731863 (iv) a music video;
1774-872
1864+916
17751865 (v) a commercial;
1776-873
1866+917
17771867 (vi) a documentary; or
1778-874
1868+918
17791869 (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
1780-875
1870+919
17811871 commission by administrative rule made in accordance with Subsection (54)(d); or
1782-876
1872+920
17831873 (b) purchases, leases, or rentals of machinery or equipment by an establishment
1784-877
1874+921
17851875 described in Subsection (54)(c) that is used for the production or postproduction of
1786-878
1876+922
17871877 the following are subject to the taxes imposed by this chapter:
1788-- 26 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
1789-879
1878+923
17901879 (i) a live musical performance;
1791-880
1880+924
17921881 (ii) a live news program; or
1793-881
1882+925
17941883 (iii) a live sporting event;
1795-882
1884+926
17961885 (c) the following establishments listed in the 1997 North American Industry
1797-883
1886+927
17981887 Classification System of the federal Executive Office of the President, Office of
1799-884
1888+928
18001889 Management and Budget, apply to Subsections (54)(a) and (b):
1801-885
1890+929
18021891 (i) NAICS Code 512110; or
1803-886
1892+930
18041893 (ii) NAICS Code 51219; and
1805-887
1894+931
18061895 (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1807-888
1896+932
18081897 commission may by rule:
1809-889
1898+933
18101899 (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
1811-890
1900+934
18121901 or
1813-891
1902+935
18141903 (ii) define:
1815-892
1904+936
18161905 (A) "commercial distribution";
1817-893
1906+937
18181907 (B) "live musical performance";
1819-894
1908+938
18201909 (C) "live news program"; or
1821-895
1910+939
18221911 (D) "live sporting event";
1823-896
1912+940
18241913 (55)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
1825-897
1914+941
18261915 or before June 30, 2027, of tangible personal property that:
1827-898
1916+942
18281917 (i) is leased or purchased for or by a facility that:
1829-899
1918+943
18301919 (A) is an alternative energy electricity production facility;
1831-900
1920+944
18321921 (B) is located in the state; and
1833-901
1922+945
18341923 (C)(I) becomes operational on or after July 1, 2004; or
1835-902
1924+946
18361925 (II) has its generation capacity increased by one or more megawatts on or after
1837-903
1926+- 28 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
1927+947
18381928 July 1, 2004, as a result of the use of the tangible personal property;
1839-904
1929+948
18401930 (ii) has an economic life of five or more years; and
1841-905
1931+949
18421932 (iii) is used to make the facility or the increase in capacity of the facility described in
1843-906
1933+950
18441934 Subsection (55)(a)(i) operational up to the point of interconnection with an
1845-907
1935+951
18461936 existing transmission grid including:
1847-908
1937+952
18481938 (A) a wind turbine;
1849-909
1939+953
18501940 (B) generating equipment;
1851-910
1941+954
18521942 (C) a control and monitoring system;
1853-911
1943+955
18541944 (D) a power line;
1855-912
1945+956
18561946 (E) substation equipment;
1857-- 27 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
1858-913
1947+957
18591948 (F) lighting;
1860-914
1949+958
18611950 (G) fencing;
1862-915
1951+959
18631952 (H) pipes; or
1864-916
1953+960
18651954 (I) other equipment used for locating a power line or pole; and
1866-917
1955+961
18671956 (b) this Subsection (55) does not apply to:
1868-918
1957+962
18691958 (i) tangible personal property used in construction of:
1870-919
1959+963
18711960 (A) a new alternative energy electricity production facility; or
1872-920
1961+964
18731962 (B) the increase in the capacity of an alternative energy electricity production
1874-921
1963+965
18751964 facility;
1876-922
1965+966
18771966 (ii) contracted services required for construction and routine maintenance activities;
1878-923
1967+967
18791968 and
1880-924
1969+968
18811970 (iii) unless the tangible personal property is used or acquired for an increase in
1882-925
1971+969
18831972 capacity of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal
1884-926
1973+970
18851974 property used or acquired after:
1886-927
1975+971
18871976 (A) the alternative energy electricity production facility described in Subsection
1888-928
1977+972
18891978 (55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
1890-929
1979+973
18911980 (B) the increased capacity described in Subsection (55)(a)(i) is operational as
1892-930
1981+974
18931982 described in Subsection (55)(a)(iii);
1894-931
1983+975
18951984 (56)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
1896-932
1985+976
18971986 or before June 30, 2027, of tangible personal property that:
1898-933
1987+977
18991988 (i) is leased or purchased for or by a facility that:
1900-934
1989+978
19011990 (A) is a waste energy production facility;
1902-935
1991+979
19031992 (B) is located in the state; and
1904-936
1993+980
19051994 (C)(I) becomes operational on or after July 1, 2004; or
1906-937
1995+- 29 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
1996+981
19071997 (II) has its generation capacity increased by one or more megawatts on or after
1908-938
1998+982
19091999 July 1, 2004, as a result of the use of the tangible personal property;
1910-939
2000+983
19112001 (ii) has an economic life of five or more years; and
1912-940
2002+984
19132003 (iii) is used to make the facility or the increase in capacity of the facility described in
1914-941
2004+985
19152005 Subsection (56)(a)(i) operational up to the point of interconnection with an
1916-942
2006+986
19172007 existing transmission grid including:
1918-943
2008+987
19192009 (A) generating equipment;
1920-944
2010+988
19212011 (B) a control and monitoring system;
1922-945
2012+989
19232013 (C) a power line;
1924-946
2014+990
19252015 (D) substation equipment;
1926-- 28 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
1927-947
2016+991
19282017 (E) lighting;
1929-948
2018+992
19302019 (F) fencing;
1931-949
2020+993
19322021 (G) pipes; or
1933-950
2022+994
19342023 (H) other equipment used for locating a power line or pole; and
1935-951
2024+995
19362025 (b) this Subsection (56) does not apply to:
1937-952
2026+996
19382027 (i) tangible personal property used in construction of:
1939-953
2028+997
19402029 (A) a new waste energy facility; or
1941-954
2030+998
19422031 (B) the increase in the capacity of a waste energy facility;
1943-955
2032+999
19442033 (ii) contracted services required for construction and routine maintenance activities;
1945-956
2034+1000
19462035 and
1947-957
2036+1001
19482037 (iii) unless the tangible personal property is used or acquired for an increase in
1949-958
2038+1002
19502039 capacity described in Subsection (56)(a)(i)(C)(II), tangible personal property used
1951-959
2040+1003
19522041 or acquired after:
1953-960
2042+1004
19542043 (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
1955-961
2044+1005
19562045 described in Subsection (56)(a)(iii); or
1957-962
2046+1006
19582047 (B) the increased capacity described in Subsection (56)(a)(i) is operational as
1959-963
2048+1007
19602049 described in Subsection (56)(a)(iii);
1961-964
2050+1008
19622051 (57)(a) leases of five or more years or purchases made on or after July 1, 2004, but on or
1963-965
2052+1009
19642053 before June 30, 2027, of tangible personal property that:
1965-966
2054+1010
19662055 (i) is leased or purchased for or by a facility that:
1967-967
2056+1011
19682057 (A) is located in the state;
1969-968
2058+1012
19702059 (B) produces fuel from alternative energy, including:
1971-969
2060+1013
19722061 (I) methanol; or
1973-970
2062+1014
19742063 (II) ethanol; and
1975-971
2064+- 30 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
2065+1015
19762066 (C)(I) becomes operational on or after July 1, 2004; or
1977-972
2067+1016
19782068 (II) has its capacity to produce fuel increase by 25% or more on or after July 1,
1979-973
2069+1017
19802070 2004, as a result of the installation of the tangible personal property;
1981-974
2071+1018
19822072 (ii) has an economic life of five or more years; and
1983-975
2073+1019
19842074 (iii) is installed on the facility described in Subsection (57)(a)(i);
1985-976
2075+1020
19862076 (b) this Subsection (57) does not apply to:
1987-977
2077+1021
19882078 (i) tangible personal property used in construction of:
1989-978
2079+1022
19902080 (A) a new facility described in Subsection (57)(a)(i); or
1991-979
2081+1023
19922082 (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
1993-980
2083+1024
19942084 (ii) contracted services required for construction and routine maintenance activities;
1995-- 29 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
1996-981
2085+1025
19972086 and
1998-982
2087+1026
19992088 (iii) unless the tangible personal property is used or acquired for an increase in
2000-983
2089+1027
20012090 capacity described in Subsection (57)(a)(i)(C)(II), tangible personal property used
2002-984
2091+1028
20032092 or acquired after:
2004-985
2093+1029
20052094 (A) the facility described in Subsection (57)(a)(i) is operational; or
2006-986
2095+1030
20072096 (B) the increased capacity described in Subsection (57)(a)(i) is operational;
2008-987
2097+1031
20092098 (58)(a) subject to Subsection (58)(b), sales of tangible personal property or a product
2010-988
2099+1032
20112100 transferred electronically to a person within this state if that tangible personal
2012-989
2101+1033
20132102 property or product transferred electronically is subsequently shipped outside the
2014-990
2103+1034
20152104 state and incorporated pursuant to contract into and becomes a part of real property
2016-991
2105+1035
20172106 located outside of this state; and
2018-992
2107+1036
20192108 (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
2020-993
2109+1037
20212110 state or political entity to which the tangible personal property is shipped imposes a
2022-994
2111+1038
20232112 sales, use, gross receipts, or other similar transaction excise tax on the transaction
2024-995
2113+1039
20252114 against which the other state or political entity allows a credit for sales and use taxes
2026-996
2115+1040
20272116 imposed by this chapter;
2028-997
2117+1041
20292118 (59) purchases:
2030-998
2119+1042
20312120 (a) of one or more of the following items in printed or electronic format:
2032-999
2121+1043
20332122 (i) a list containing information that includes one or more:
2034-1000
2123+1044
20352124 (A) names; or
2036-1001
2125+1045
20372126 (B) addresses; or
2038-1002
2127+1046
20392128 (ii) a database containing information that includes one or more:
2040-1003
2129+1047
20412130 (A) names; or
2042-1004
2131+1048
20432132 (B) addresses; and
2044-1005
2133+- 31 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
2134+1049
20452135 (b) used to send direct mail;
2046-1006
2136+1050
20472137 (60) redemptions or repurchases of a product by a person if that product was:
2048-1007
2138+1051
20492139 (a) delivered to a pawnbroker as part of a pawn transaction; and
2050-1008
2140+1052
20512141 (b) redeemed or repurchased within the time period established in a written agreement
2052-1009
2142+1053
20532143 between the person and the pawnbroker for redeeming or repurchasing the product;
2054-1010
2144+1054
20552145 (61)(a) purchases or leases of an item described in Subsection (61)(b) if the item:
2056-1011
2146+1055
20572147 (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
2058-1012
2148+1056
20592149 and
2060-1013
2150+1057
20612151 (ii) has a useful economic life of one or more years; and
2062-1014
2152+1058
20632153 (b) the following apply to Subsection (61)(a):
2064-- 30 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
2065-1015
2154+1059
20662155 (i) telecommunications enabling or facilitating equipment, machinery, or software;
2067-1016
2156+1060
20682157 (ii) telecommunications equipment, machinery, or software required for 911 service;
2069-1017
2158+1061
20702159 (iii) telecommunications maintenance or repair equipment, machinery, or software;
2071-1018
2160+1062
20722161 (iv) telecommunications switching or routing equipment, machinery, or software; or
2073-1019
2162+1063
20742163 (v) telecommunications transmission equipment, machinery, or software;
2075-1020
2164+1064
20762165 (62)(a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
2077-1021
2166+1065
20782167 personal property or a product transferred electronically that are used in the research
2079-1022
2168+1066
20802169 and development of alternative energy technology; and
2081-1023
2170+1067
20822171 (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2083-1024
2172+1068
20842173 commission may, for purposes of Subsection (62)(a), make rules defining what
2085-1025
2174+1069
20862175 constitutes purchases of tangible personal property or a product transferred
2087-1026
2176+1070
20882177 electronically that are used in the research and development of alternative energy
2089-1027
2178+1071
20902179 technology;
2091-1028
2180+1072
20922181 (63)(a) purchases of tangible personal property or a product transferred electronically if:
2093-1029
2182+1073
20942183 (i) the tangible personal property or product transferred electronically is:
2095-1030
2184+1074
20962185 (A) purchased outside of this state;
2097-1031
2186+1075
20982187 (B) brought into this state at any time after the purchase described in Subsection
2099-1032
2188+1076
21002189 (63)(a)(i)(A); and
2101-1033
2190+1077
21022191 (C) used in conducting business in this state; and
2103-1034
2192+1078
21042193 (ii) for:
2105-1035
2194+1079
21062195 (A) tangible personal property or a product transferred electronically other than
2107-1036
2196+1080
21082197 the tangible personal property described in Subsection (63)(a)(ii)(B), the first
2109-1037
2198+1081
21102199 use of the property for a purpose for which the property is designed occurs
2111-1038
2200+1082
21122201 outside of this state; or
2113-1039
2202+- 32 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
2203+1083
21142204 (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
2115-1040
2205+1084
21162206 registered outside of this state and not required to be registered in this state
2117-1041
2207+1085
21182208 under Section 41-1a-202 or 73-18-9 based on residency;
2119-1042
2209+1086
21202210 (b) the exemption provided for in Subsection (63)(a) does not apply to:
2121-1043
2211+1087
21222212 (i) a lease or rental of tangible personal property or a product transferred
2123-1044
2213+1088
21242214 electronically; or
2125-1045
2215+1089
21262216 (ii) a sale of a vehicle exempt under Subsection (33); and
2127-1046
2217+1090
21282218 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
2129-1047
2219+1091
21302220 purposes of Subsection (63)(a), the commission may by rule define what constitutes
2131-1048
2221+1092
21322222 the following:
2133-- 31 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
2134-1049
2223+1093
21352224 (i) conducting business in this state if that phrase has the same meaning in this
2136-1050
2225+1094
21372226 Subsection (63) as in Subsection (24);
2138-1051
2227+1095
21392228 (ii) the first use of tangible personal property or a product transferred electronically if
2140-1052
2229+1096
21412230 that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
2142-1053
2231+1097
21432232 (iii) a purpose for which tangible personal property or a product transferred
2144-1054
2233+1098
21452234 electronically is designed if that phrase has the same meaning in this Subsection
2146-1055
2235+1099
21472236 (63) as in Subsection (24);
2148-1056
2237+1100
21492238 (64) sales of disposable home medical equipment or supplies if:
2150-1057
2239+1101
21512240 (a) a person presents a prescription for the disposable home medical equipment or
2152-1058
2241+1102
21532242 supplies;
2154-1059
2243+1103
21552244 (b) the disposable home medical equipment or supplies are used exclusively by the
2156-1060
2245+1104
21572246 person to whom the prescription described in Subsection (64)(a) is issued; and
2158-1061
2247+1105
21592248 (c) the disposable home medical equipment and supplies are listed as eligible for
2160-1062
2249+1106
21612250 payment under:
2162-1063
2251+1107
21632252 (i) Title XVIII, federal Social Security Act; or
2164-1064
2253+1108
21652254 (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
2166-1065
2255+1109
21672256 (65) sales:
2168-1066
2257+1110
21692258 (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit District
2170-1067
2259+1111
21712260 Act; or
2172-1068
2261+1112
21732262 (b) of tangible personal property to a subcontractor of a public transit district, if the
2174-1069
2263+1113
21752264 tangible personal property is:
2176-1070
2265+1114
21772266 (i) clearly identified; and
2178-1071
2267+1115
21792268 (ii) installed or converted to real property owned by the public transit district;
2180-1072
2269+1116
21812270 (66) sales of construction materials:
2182-1073
2271+- 33 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
2272+1117
21832273 (a) purchased on or after July 1, 2010;
2184-1074
2274+1118
21852275 (b) purchased by, on behalf of, or for the benefit of an international airport:
2186-1075
2276+1119
21872277 (i) located within a county of the first class; and
2188-1076
2278+1120
21892279 (ii) that has a United States customs office on its premises; and
2190-1077
2280+1121
21912281 (c) if the construction materials are:
2192-1078
2282+1122
21932283 (i) clearly identified;
2194-1079
2284+1123
21952285 (ii) segregated; and
2196-1080
2286+1124
21972287 (iii) installed or converted to real property:
2198-1081
2199-(A) owned or operated by the international airport described in Subsection (66)(b);
2200-1082
2288+1125
2289+(A) owned or operated by the international airport described in Subsection
2290+1126
2291+(66)(b); and
2292+1127
2293+(B) located at the international airport described in Subsection (66)(b);
2294+1128
2295+(67) sales of construction materials:
2296+1129
2297+(a) purchased on or after July 1, 2008;
2298+1130
2299+(b) purchased by, on behalf of, or for the benefit of a new airport:
2300+1131
2301+(i) located within a county of the second class; and
2302+1132
2303+(ii) that is owned or operated by a city in which an airline as defined in Section
2304+1133
2305+59-2-102 is headquartered; and
2306+1134
2307+(c) if the construction materials are:
2308+1135
2309+(i) clearly identified;
2310+1136
2311+(ii) segregated; and
2312+1137
2313+(iii) installed or converted to real property:
2314+1138
2315+(A) owned or operated by the new airport described in Subsection (67)(b);
2316+1139
2317+(B) located at the new airport described in Subsection (67)(b); and
2318+1140
2319+(C) as part of the construction of the new airport described in Subsection (67)(b);
2320+1141
2321+(68) except for the tax imposed by Subsection 59-12-103(2)(d), sales of fuel to a common
2322+1142
2323+carrier that is a railroad for use in a locomotive engine;
2324+1143
2325+(69) purchases and sales described in Section 63H-4-111;
2326+1144
2327+(70)(a) sales of tangible personal property to an aircraft maintenance, repair, and
2328+1145
2329+overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in
2330+1146
2331+this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
2332+1147
2333+aircraft's registration lists a state or country other than this state as the location of
2334+1148
2335+registry of the fixed wing turbine powered aircraft; or
2336+1149
2337+(b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
2338+1150
2339+provider in connection with the maintenance, repair, overhaul, or refurbishment in
2340+- 34 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
2341+1151
2342+this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
2343+1152
2344+aircraft's registration lists a state or country other than this state as the location of
2345+1153
2346+registry of the fixed wing turbine powered aircraft;
2347+1154
2348+(71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
2349+1155
2350+(a) to a person admitted to an institution of higher education; and
2351+1156
2352+(b) by a seller, other than a bookstore owned by an institution of higher education, if
2353+1157
2354+51% or more of that seller's sales revenue for the previous calendar quarter are sales
2355+1158
2356+of a textbook for a higher education course;
2357+1159
2358+(72) a license fee or tax a municipality imposes in accordance with Subsection 10-1-203(5)
2359+1160
2360+on a purchaser from a business for which the municipality provides an enhanced level of
2361+1161
2362+municipal services;
2363+1162
2364+(73) amounts paid or charged for construction materials used in the construction of a new or
2365+1163
2366+expanding life science research and development facility in the state, if the construction
2367+1164
2368+materials are:
2369+1165
2370+(a) clearly identified;
2371+1166
2372+(b) segregated; and
2373+1167
2374+(c) installed or converted to real property;
2375+1168
2376+(74) amounts paid or charged for:
2377+1169
2378+(a) a purchase or lease of machinery and equipment that:
2379+1170
2380+(i) are used in performing qualified research:
2381+1171
2382+(A) as defined in Section 41(d), Internal Revenue Code; and
2383+1172
2384+(B) in the state; and
2385+1173
2386+(ii) have an economic life of three or more years; and
2387+1174
2388+(b) normal operating repair or replacement parts:
2389+1175
2390+(i) for the machinery and equipment described in Subsection (74)(a); and
2391+1176
2392+(ii) that have an economic life of three or more years;
2393+1177
2394+(75) a sale or lease of tangible personal property used in the preparation of prepared food if:
2395+1178
2396+(a) for a sale:
2397+1179
2398+(i) the ownership of the seller and the ownership of the purchaser are identical; and
2399+1180
2400+(ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
2401+1181
2402+tangible personal property prior to making the sale; or
2403+1182
2404+(b) for a lease:
2405+1183
2406+(i) the ownership of the lessor and the ownership of the lessee are identical; and
2407+1184
2408+(ii) the lessor or the lessee paid a tax under this chapter on the purchase of that
2409+- 35 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
2410+1185
2411+tangible personal property prior to making the lease;
2412+1186
2413+(76)(a) purchases of machinery or equipment if:
2414+1187
2415+(i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
2416+1188
2417+Gambling, and Recreation Industries, of the 2012 North American Industry
2418+1189
2419+Classification System of the federal Executive Office of the President, Office of
2420+1190
2421+Management and Budget;
2422+1191
2423+(ii) the machinery or equipment:
2424+1192
2425+(A) has an economic life of three or more years; and
2426+1193
2427+(B) is used by one or more persons who pay admission or user fees described in
2428+1194
2429+Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment;
2430+1195
22012431 and
2202-- 32 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
2203-1083
2204-(B) located at the international airport described in Subsection (66)(b);
2205-1084
2206-(67) sales of construction materials:
2207-1085
2208-(a) purchased on or after July 1, 2008;
2209-1086
2210-(b) purchased by, on behalf of, or for the benefit of a new airport:
2211-1087
2212-(i) located within a county of the second class; and
2213-1088
2214-(ii) that is owned or operated by a city in which an airline as defined in Section
2215-1089
2216-59-2-102 is headquartered; and
2217-1090
2218-(c) if the construction materials are:
2219-1091
2220-(i) clearly identified;
2221-1092
2222-(ii) segregated; and
2223-1093
2224-(iii) installed or converted to real property:
2225-1094
2226-(A) owned or operated by the new airport described in Subsection (67)(b);
2227-1095
2228-(B) located at the new airport described in Subsection (67)(b); and
2229-1096
2230-(C) as part of the construction of the new airport described in Subsection (67)(b);
2231-1097
2232-(68) except for the tax imposed by Subsection 59-12-103(2)(d), sales of fuel to a common
2233-1098
2234-carrier that is a railroad for use in a locomotive engine;
2235-1099
2236-(69) purchases and sales described in Section 63H-4-111;
2237-1100
2238-(70)(a) sales of tangible personal property to an aircraft maintenance, repair, and
2239-1101
2240-overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in
2241-1102
2242-this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
2243-1103
2244-aircraft's registration lists a state or country other than this state as the location of
2245-1104
2246-registry of the fixed wing turbine powered aircraft; or
2247-1105
2248-(b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
2249-1106
2250-provider in connection with the maintenance, repair, overhaul, or refurbishment in
2251-1107
2252-this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
2253-1108
2254-aircraft's registration lists a state or country other than this state as the location of
2255-1109
2256-registry of the fixed wing turbine powered aircraft;
2257-1110
2258-(71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
2259-1111
2260-(a) to a person admitted to an institution of higher education; and
2261-1112
2262-(b) by a seller, other than a bookstore owned by an institution of higher education, if
2263-1113
2264-51% or more of that seller's sales revenue for the previous calendar quarter are sales
2265-1114
2266-of a textbook for a higher education course;
2267-1115
2268-(72) a license fee or tax a municipality imposes in accordance with Subsection 10-1-203(5)
2269-1116
2270-on a purchaser from a business for which the municipality provides an enhanced level of
2271-- 33 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
2272-1117
2273-municipal services;
2274-1118
2275-(73) amounts paid or charged for construction materials used in the construction of a new or
2276-1119
2277-expanding life science research and development facility in the state, if the construction
2278-1120
2279-materials are:
2280-1121
2281-(a) clearly identified;
2282-1122
2283-(b) segregated; and
2284-1123
2285-(c) installed or converted to real property;
2286-1124
2287-(74) amounts paid or charged for:
2288-1125
2289-(a) a purchase or lease of machinery and equipment that:
2290-1126
2291-(i) are used in performing qualified research:
2292-1127
2293-(A) as defined in Section 41(d), Internal Revenue Code; and
2294-1128
2295-(B) in the state; and
2296-1129
2432+1196
2433+(iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
2434+1197
2435+(A) amounts paid or charged as admission or user fees described in Subsection
2436+1198
2437+59-12-103(1)(f); and
2438+1199
2439+(B) subject to taxation under this chapter; and
2440+1200
2441+(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2442+1201
2443+commission may make rules for verifying that 51% of a purchaser's sales revenue for
2444+1202
2445+the previous calendar quarter is:
2446+1203
2447+(i) amounts paid or charged as admission or user fees described in Subsection
2448+1204
2449+59-12-103(1)(f); and
2450+1205
2451+(ii) subject to taxation under this chapter;
2452+1206
2453+(77) purchases of a short-term lodging consumable by a business that provides
2454+1207
2455+accommodations and services described in Subsection 59-12-103(1)(i);
2456+1208
2457+(78) amounts paid or charged to access a database:
2458+1209
2459+(a) if the primary purpose for accessing the database is to view or retrieve information
2460+1210
2461+from the database; and
2462+1211
2463+(b) not including amounts paid or charged for a:
2464+1212
2465+(i) digital audio work;
2466+1213
2467+(ii) digital audio-visual work; or
2468+1214
2469+(iii) digital book;
2470+1215
2471+(79) amounts paid or charged for a purchase or lease made by an electronic financial
2472+1216
2473+payment service, of:
2474+1217
2475+(a) machinery and equipment that:
2476+1218
2477+(i) are used in the operation of the electronic financial payment service; and
2478+- 36 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
2479+1219
22972480 (ii) have an economic life of three or more years; and
2298-1130
2299-(b) normal operating repair or replacement parts:
2300-1131
2301-(i) for the machinery and equipment described in Subsection (74)(a); and
2302-1132
2303-(ii) that have an economic life of three or more years;
2304-1133
2305-(75) a sale or lease of tangible personal property used in the preparation of prepared food if:
2306-1134
2307-(a) for a sale:
2308-1135
2309-(i) the ownership of the seller and the ownership of the purchaser are identical; and
2310-1136
2311-(ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
2312-1137
2313-tangible personal property prior to making the sale; or
2314-1138
2315-(b) for a lease:
2316-1139
2317-(i) the ownership of the lessor and the ownership of the lessee are identical; and
2318-1140
2319-(ii) the lessor or the lessee paid a tax under this chapter on the purchase of that
2320-1141
2321-tangible personal property prior to making the lease;
2322-1142
2323-(76)(a) purchases of machinery or equipment if:
2324-1143
2325-(i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
2326-1144
2327-Gambling, and Recreation Industries, of the 2012 North American Industry
2328-1145
2329-Classification System of the federal Executive Office of the President, Office of
2330-1146
2331-Management and Budget;
2332-1147
2333-(ii) the machinery or equipment:
2334-1148
2335-(A) has an economic life of three or more years; and
2336-1149
2337-(B) is used by one or more persons who pay admission or user fees described in
2338-1150
2339-Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment;
2340-- 34 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
2341-1151
2481+1220
2482+(b) normal operating repair or replacement parts that:
2483+1221
2484+(i) are used in the operation of the electronic financial payment service; and
2485+1222
2486+(ii) have an economic life of three or more years;
2487+1223
2488+(80) sales of a fuel cell as defined in Section 54-15-102;
2489+1224
2490+(81) amounts paid or charged for a purchase or lease of tangible personal property or a
2491+1225
2492+product transferred electronically if the tangible personal property or product transferred
2493+1226
2494+electronically:
2495+1227
2496+(a) is stored, used, or consumed in the state; and
2497+1228
2498+(b) is temporarily brought into the state from another state:
2499+1229
2500+(i) during a disaster period as defined in Section 53-2a-1202;
2501+1230
2502+(ii) by an out-of-state business as defined in Section 53-2a-1202;
2503+1231
2504+(iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
2505+1232
2506+(iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
2507+1233
2508+(82) sales of goods and services at a morale, welfare, and recreation facility, as defined in
2509+1234
2510+Section 39A-7-102, made pursuant to Title 39A, Chapter 7, Morale, Welfare, and
2511+1235
2512+Recreation Program;
2513+1236
2514+(83) amounts paid or charged for a purchase or lease of molten magnesium;
2515+1237
2516+(84) amounts paid or charged for a purchase or lease made by a qualifying data center or an
2517+1238
2518+occupant of a qualifying data center of machinery, equipment, or normal operating
2519+1239
2520+repair or replacement parts, if the machinery, equipment, or normal operating repair or
2521+1240
2522+replacement parts:
2523+1241
2524+(a) are used in:
2525+1242
2526+(i) the operation of the qualifying data center; or
2527+1243
2528+(ii) the occupant's operations in the qualifying data center; and
2529+1244
2530+(b) have an economic life of one or more years;
2531+1245
2532+(85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a vehicle
2533+1246
2534+that includes cleaning or washing of the interior of the vehicle;
2535+1247
2536+(86) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2537+1248
2538+operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or
2539+1249
2540+supplies used or consumed:
2541+1250
2542+(a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
2543+1251
2544+in Section 79-6-701 located in the state;
2545+1252
2546+(b) if the machinery, equipment, normal operating repair or replacement parts, catalysts,
2547+- 37 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
2548+1253
2549+chemicals, reagents, solutions, or supplies are used or consumed in:
2550+1254
2551+(i) the production process to produce gasoline or diesel fuel, or at which blendstock is
2552+1255
2553+added to gasoline or diesel fuel;
2554+1256
2555+(ii) research and development;
2556+1257
2557+(iii) transporting, storing, or managing raw materials, work in process, finished
2558+1258
2559+products, and waste materials produced from refining gasoline or diesel fuel, or
2560+1259
2561+adding blendstock to gasoline or diesel fuel;
2562+1260
2563+(iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
2564+1261
2565+refining; or
2566+1262
2567+(v) preventing, controlling, or reducing pollutants from refining; and
2568+1263
2569+(c) if the person holds a valid refiner tax exemption certification as defined in Section
2570+1264
2571+79-6-701;
2572+1265
2573+(87) amounts paid to or charged by a proprietor for accommodations and services, as
2574+1266
2575+defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations
2576+1267
2577+tax imposed under Section 63H-1-205;
2578+1268
2579+(88) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2580+1269
2581+operating repair or replacement parts, or materials, except for office equipment or office
2582+1270
2583+supplies, by an establishment, as the commission defines that term in accordance with
2584+1271
2585+Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
2586+1272
2587+(a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
2588+1273
2589+American Industry Classification System of the federal Executive Office of the
2590+1274
2591+President, Office of Management and Budget;
2592+1275
2593+(b) is located in this state; and
2594+1276
2595+(c) uses the machinery, equipment, normal operating repair or replacement parts, or
2596+1277
2597+materials in the operation of the establishment;
2598+1278
2599+(89) amounts paid or charged for an item exempt under Section 59-12-104.10;
2600+1279
2601+(90) sales of a note, leaf, foil, or film, if the item:
2602+1280
2603+(a) is used as currency;
2604+1281
2605+(b) does not constitute legal tender of a state, the United States, or a foreign nation; and
2606+1282
2607+(c) has a gold, silver, or platinum metallic content of 50% or more, exclusive of any
2608+1283
2609+transparent polymer holder, coating, or encasement;
2610+1284
2611+(91) amounts paid or charged for admission to an indoor skydiving, rock climbing, or
2612+1285
2613+surfing facility, if a trained instructor:
2614+1286
2615+(a) is present with the participant, in person or by video, for the duration of the activity;
2616+- 38 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
2617+1287
23422618 and
2343-1152
2344-(iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
2345-1153
2346-(A) amounts paid or charged as admission or user fees described in Subsection
2347-1154
2348-59-12-103(1)(f); and
2349-1155
2350-(B) subject to taxation under this chapter; and
2351-1156
2352-(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2353-1157
2354-commission may make rules for verifying that 51% of a purchaser's sales revenue for
2355-1158
2356-the previous calendar quarter is:
2357-1159
2358-(i) amounts paid or charged as admission or user fees described in Subsection
2359-1160
2360-59-12-103(1)(f); and
2361-1161
2362-(ii) subject to taxation under this chapter;
2363-1162
2364-(77) purchases of a short-term lodging consumable by a business that provides
2365-1163
2366-accommodations and services described in Subsection 59-12-103(1)(i);
2367-1164
2368-(78) amounts paid or charged to access a database:
2369-1165
2370-(a) if the primary purpose for accessing the database is to view or retrieve information
2371-1166
2372-from the database; and
2373-1167
2374-(b) not including amounts paid or charged for a:
2375-1168
2376-(i) digital audio work;
2377-1169
2378-(ii) digital audio-visual work; or
2379-1170
2380-(iii) digital book;
2381-1171
2382-(79) amounts paid or charged for a purchase or lease made by an electronic financial
2383-1172
2384-payment service, of:
2385-1173
2386-(a) machinery and equipment that:
2387-1174
2388-(i) are used in the operation of the electronic financial payment service; and
2389-1175
2390-(ii) have an economic life of three or more years; and
2391-1176
2392-(b) normal operating repair or replacement parts that:
2393-1177
2394-(i) are used in the operation of the electronic financial payment service; and
2395-1178
2396-(ii) have an economic life of three or more years;
2397-1179
2398-(80) sales of a fuel cell as defined in Section 54-15-102;
2399-1180
2400-(81) amounts paid or charged for a purchase or lease of tangible personal property or a
2401-1181
2402-product transferred electronically if the tangible personal property or product transferred
2403-1182
2404-electronically:
2405-1183
2406-(a) is stored, used, or consumed in the state; and
2407-1184
2408-(b) is temporarily brought into the state from another state:
2409-- 35 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
2410-1185
2411-(i) during a disaster period as defined in Section 53-2a-1202;
2412-1186
2413-(ii) by an out-of-state business as defined in Section 53-2a-1202;
2414-1187
2415-(iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
2416-1188
2417-(iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
2418-1189
2419-(82) sales of goods and services at a morale, welfare, and recreation facility, as defined in
2420-1190
2421-Section 39A-7-102, made pursuant to Title 39A, Chapter 7, Morale, Welfare, and
2422-1191
2423-Recreation Program;
2424-1192
2425-(83) amounts paid or charged for a purchase or lease of molten magnesium;
2426-1193
2427-(84) amounts paid or charged for a purchase or lease made by a qualifying data center or an
2428-1194
2429-occupant of a qualifying data center of machinery, equipment, or normal operating
2430-1195
2431-repair or replacement parts, if the machinery, equipment, or normal operating repair or
2432-1196
2433-replacement parts:
2434-1197
2435-(a) are used in:
2436-1198
2437-(i) the operation of the qualifying data center; or
2438-1199
2439-(ii) the occupant's operations in the qualifying data center; and
2440-1200
2441-(b) have an economic life of one or more years;
2442-1201
2443-(85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a vehicle
2444-1202
2445-that includes cleaning or washing of the interior of the vehicle;
2446-1203
2447-(86) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2448-1204
2449-operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or
2450-1205
2451-supplies used or consumed:
2452-1206
2453-(a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
2454-1207
2455-in Section 79-6-701 located in the state;
2456-1208
2457-(b) if the machinery, equipment, normal operating repair or replacement parts, catalysts,
2458-1209
2459-chemicals, reagents, solutions, or supplies are used or consumed in:
2460-1210
2461-(i) the production process to produce gasoline or diesel fuel, or at which blendstock is
2462-1211
2463-added to gasoline or diesel fuel;
2464-1212
2465-(ii) research and development;
2466-1213
2467-(iii) transporting, storing, or managing raw materials, work in process, finished
2468-1214
2469-products, and waste materials produced from refining gasoline or diesel fuel, or
2470-1215
2471-adding blendstock to gasoline or diesel fuel;
2472-1216
2473-(iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
2474-1217
2475-refining; or
2476-1218
2477-(v) preventing, controlling, or reducing pollutants from refining; and
2478-- 36 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
2479-1219
2480-(c) if the person holds a valid refiner tax exemption certification as defined in Section
2481-1220
2482-79-6-701;
2483-1221
2484-(87) amounts paid to or charged by a proprietor for accommodations and services, as
2485-1222
2486-defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations
2487-1223
2488-tax imposed under Section 63H-1-205;
2489-1224
2490-(88) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2491-1225
2492-operating repair or replacement parts, or materials, except for office equipment or office
2493-1226
2494-supplies, by an establishment, as the commission defines that term in accordance with
2495-1227
2496-Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
2497-1228
2498-(a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
2499-1229
2619+1288
2620+(b) actively instructs the participant, including providing observation or feedback;
2621+1289
2622+(92) amounts paid or charged in connection with the construction, operation, maintenance,
2623+1290
2624+repair, or replacement of facilities owned by or constructed for:
2625+1291
2626+(a) a distribution electrical cooperative, as defined in Section 54-2-1; or
2627+1292
2628+(b) a wholesale electrical cooperative, as defined in Section 54-2-1;
2629+1293
2630+(93) amounts paid by the service provider for tangible personal property, other than
2631+1294
2632+machinery, equipment, parts, office supplies, electricity, gas, heat, steam, or other fuels,
2633+1295
2634+that:
2635+1296
2636+(a) is consumed in the performance of a service that is subject to tax under Subsection
2637+1297
2638+59-12-103(1)(b), (f), (g), (h), (i), or (j);
2639+1298
2640+(b) has to be consumed for the service provider to provide the service described in
2641+1299
2642+Subsection (93)(a); and
2643+1300
2644+(c) will be consumed in the performance of the service described in Subsection (93)(a),
2645+1301
2646+to one or more customers, to the point that the tangible personal property disappears
2647+1302
2648+or cannot be used for any other purpose;
2649+1303
2650+(94) sales of rail rolling stock manufactured in Utah;
2651+1304
2652+(95) amounts paid or charged for sales of sand, gravel, rock aggregate, cement products, or
2653+1305
2654+construction materials between establishments, as the commission defines that term in
2655+1306
2656+accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if:
2657+1307
2658+(a) the establishments are related directly or indirectly through 100% common
2659+1308
2660+ownership or control; and
2661+1309
2662+(b) each establishment is described in one of the following subsectors of the 2022 North
2663+1310
25002664 American Industry Classification System of the federal Executive Office of the
2501-1230
2502-President, Office of Management and Budget;
2503-1231
2504-(b) is located in this state; and
2505-1232
2506-(c) uses the machinery, equipment, normal operating repair or replacement parts, or
2507-1233
2508-materials in the operation of the establishment;
2509-1234
2510-(89) amounts paid or charged for an item exempt under Section 59-12-104.10;
2511-1235
2512-(90) sales of a note, leaf, foil, or film, if the item:
2513-1236
2514-(a) is used as currency;
2515-1237
2516-(b) does not constitute legal tender of a state, the United States, or a foreign nation; and
2517-1238
2518-(c) has a gold, silver, or platinum metallic content of 50% or more, exclusive of any
2519-1239
2520-transparent polymer holder, coating, or encasement;
2521-1240
2522-(91) amounts paid or charged for admission to an indoor skydiving, rock climbing, or
2523-1241
2524-surfing facility, if a trained instructor:
2525-1242
2526-(a) is present with the participant, in person or by video, for the duration of the activity;
2527-1243
2528-and
2529-1244
2530-(b) actively instructs the participant, including providing observation or feedback;
2531-1245
2532-(92) amounts paid or charged in connection with the construction, operation, maintenance,
2533-1246
2534-repair, or replacement of facilities owned by or constructed for:
2535-1247
2536-(a) a distribution electrical cooperative, as defined in Section 54-2-1; or
2537-1248
2538-(b) a wholesale electrical cooperative, as defined in Section 54-2-1;
2539-1249
2540-(93) amounts paid by the service provider for tangible personal property, other than
2541-1250
2542-machinery, equipment, parts, office supplies, electricity, gas, heat, steam, or other fuels,
2543-1251
2544-that:
2545-1252
2546-(a) is consumed in the performance of a service that is subject to tax under Subsection
2547-- 37 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
2548-1253
2549-59-12-103(1)(b), (f), (g), (h), (i), or (j);
2550-1254
2551-(b) has to be consumed for the service provider to provide the service described in
2552-1255
2553-Subsection (93)(a); and
2554-1256
2555-(c) will be consumed in the performance of the service described in Subsection (93)(a),
2556-1257
2557-to one or more customers, to the point that the tangible personal property disappears
2558-1258
2559-or cannot be used for any other purpose;
2560-1259
2561-(94) sales of rail rolling stock manufactured in Utah;
2562-1260
2563-(95) amounts paid or charged for sales of sand, gravel, rock aggregate, cement products, or
2564-1261
2565-construction materials between establishments, as the commission defines that term in
2566-1262
2567-accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if:
2568-1263
2569-(a) the establishments are related directly or indirectly through 100% common
2570-1264
2571-ownership or control; and
2572-1265
2573-(b) each establishment is described in one of the following subsectors of the 2022 North
2574-1266
2575-American Industry Classification System of the federal Executive Office of the
2576-1267
2665+1311
25772666 President, Office of Management and Budget:
2578-1268
2667+1312
25792668 (i) NAICS Subsector 237, Heavy and Civil Engineering Construction; or
2580-1269
2669+1313
25812670 (ii) NAICS Subsector 327, Nonmetallic Mineral Product Manufacturing; and
2582-1270
2671+1314
25832672 (96) sales of construction materials used for the construction of a qualified stadium, as
2584-1271
2673+1315
25852674 defined in Section 11-70-101[; and] .
2586-1272
2675+1316
25872676 [(97) amounts paid or charged for sales of a cannabinoid product as that term is defined in
2588-1273
2677+1317
25892678 Section 4-41-102.]
2590-1274
2591-Section 7. Section 59-31-101 is amended to read:
2592-1275
2679+1318
2680+Section 8. Section 59-31-101 is amended to read:
2681+1319
25932682
25942683 CHAPTER 31. SPECIALIZED PRODUCT LICENSING AND TAX ACT
2595-1276
2684+1320
25962685 59-31-101 (Effective 01/01/26). Definitions.
2597-1277
2686+- 39 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
2687+1321
25982688 As used in this chapter:
2599-1278
2689+1322
26002690 (1) "Cannabinoid product" means the same as that term is defined in Section 4-41-102.
2601-1279
2602-(2) "Kratom product" means the same as that term is defined in Section 4-45-102.
2603-1280
2691+1323
2692+(2)(a) "Kratom product" means the same as that term is defined in Section 4-45-102.
2693+1324
2694+(b) "Kratom product" includes a compound kratom product defined in Section 4-45-102.
2695+1325
26042696 [(2)] (3) "Licensee" means a retailer that holds a valid license under Part 2, Licensing, to sell
2605-1281
2697+1326
26062698 a [cannabinoid] specialized product.
2607-1282
2699+1327
26082700 [(3)] (4) "Retail price" means the amount charged by a retailer for a [cannabinoid] specialized
2609-1283
2701+1328
26102702 product.
2611-1284
2703+1329
26122704 [(4)] (5) "Retailer" means a person that sells a [cannabionoid] specialized product to a
2613-1285
2705+1330
26142706 consumer for personal use.
2615-1286
2707+1331
26162708 (6) "Specialized product" means a cannabinoid product or a kratom product.
2617-- 38 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
2618-1287
2619-Section 8. Section 59-31-201 is amended to read:
2620-1288
2709+1332
2710+Section 9. Section 59-31-201 is amended to read:
2711+1333
26212712 59-31-201 (Effective 01/01/26). Prohibition on the sale of a specialized product
2622-1289
2713+1334
26232714 without license.
2624-1290
2625-(1) A [person] retailer may not sell, offer to sell, or distribute a [cannabinoid] specialized
2626-1291
2627-product in this state without first:
2628-1292
2715+1335
2716+(1) A person may not sell, offer to sell, or distribute a [cannabinoid] specialized product in
2717+1336
2718+this state without first:
2719+1337
26292720 (a) obtaining a license from the commission under Section 59-31-202; and
2630-1293
2721+1338
26312722 (b) complying with the bonding requirement described in Section 59-31-202.
2632-1294
2723+1339
26332724 (2) It is a class B misdemeanor for a person to violate Subsection (1).
2634-1295
2635-Section 9. Section 59-31-202 is amended to read:
2636-1296
2725+1340
2726+Section 10. Section 59-31-202 is amended to read:
2727+1341
26372728 59-31-202 (Effective 01/01/26). Issuance of license.
2638-1297
2729+1342
26392730 (1) The commission shall issue a license to sell a [cannabinoid] specialized product to a
2640-1298
2731+1343
26412732 retailer that submits an application, on a form created by the commission, that includes:
2642-1299
2733+1344
26432734 (a) the retailer's name;
2644-1300
2735+1345
26452736 (b) the address of the physical location permitted under Section 4-41-103.3 or Section
2646-1301
2737+1346
26472738 4-45-104 where the retailer sells the [cannabinoid] specialized product; and
2648-1302
2739+1347
26492740 (c) any other information the commission requires to implement this chapter.
2650-1303
2741+1348
26512742 (2) A license is:
2652-1304
2743+1349
26532744 (a) valid at only one fixed business address;
2654-1305
2745+1350
26552746 (b) valid for three years;
2656-1306
2747+1351
26572748 (c) valid only for a physical location; and
2658-1307
2749+1352
26592750 (d) renewable if a licensee meets the criteria for licensing described in Subsection (1).
2660-1308
2751+1353
26612752 (3)(a) The commission shall require a retailer that is responsible under this part for the
2662-1309
2753+1354
26632754 collection of tax on a [cannabinoid] specialized product to post a bond.
2664-1310
2755+- 40 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
2756+1355
26652757 (b) Subject to Subsection (3)(c), the commission shall determine the form and amount of
2666-1311
2758+1356
26672759 the bond.
2668-1312
2760+1357
26692761 (c) The minimum amount of the bond shall be $500.
2670-1313
2762+1358
26712763 (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Authority,
2672-1314
2764+1359
26732765 the commission may make rules to establish the additional information described in
2674-1315
2766+1360
26752767 Subsection (1)(c) that a retailer shall provide in the application described in Subsection
2676-1316
2768+1361
26772769 (1).
2678-1317
2770+1362
26792771 (5) The commission may not charge a fee for a license under this section.
2680-1318
2772+1363
26812773 (6) The license under this section is in addition to a license required under Section
2682-1319
2774+1364
26832775 4-41-103.3.
2684-1320
2776+1365
26852777 (7)(a) The commission shall maintain a public list that includes the identity of each [
2686-- 39 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
2687-1321
2778+1366
26882779 person ] retailer licensed under this section.
2689-1322
2780+1367
26902781 (b) The list shall:
2691-1323
2782+1368
26922783 (i) include the type of license possessed; and
2693-1324
2784+1369
26942785 (ii) be updated by the commission at least once per quarter.
2695-1325
2696-Section 10. Section 59-31-301 is amended to read:
2697-1326
2786+1370
2787+Section 11. Section 59-31-301 is amended to read:
2788+1371
26982789 59-31-301 (Effective 01/01/26). Taxation of specialized product.
2699-1327
2790+1372
27002791 (1) A tax is imposed on a [cannabinoid] specialized product at a rate of [.10 ] 5.3%
2701-1328
2792+1373
27022793 multiplied by the retail price.
2703-1329
2794+1374
27042795 (2)(a) A licensee shall collect the tax imposed under Subsection (1) from a purchaser at
2705-1330
2796+1375
27062797 the time the [cannabinoid] specialized product is sold.
2707-1331
2798+1376
27082799 (b) A consumer that purchases or receives an untaxed [cannabinoid] specialized product
2709-1332
2800+1377
27102801 shall pay the tax at the time the [cannabinoid] specialized product is first received in
2711-1333
2802+1378
27122803 this state.
2713-1334
2714-Section 11. Section 59-31-302 is amended to read:
2715-1335
2804+1379
2805+Section 12. Section 59-31-302 is amended to read:
2806+1380
27162807 59-31-302 (Effective 01/01/26). Remittance of tax.
2717-1336
2808+1381
27182809 (1)(a) The licensee that collects the tax imposed on a [cannabinoid] specialized product
2719-1337
2810+1382
27202811 shall remit to the commission, in an electronic format approved by the commission:
2721-1338
2812+1383
27222813 (i) the tax due in the previous quarter; and
2723-1339
2814+1384
27242815 (ii) the tax return.
2725-1340
2816+1385
27262817 (b) The tax collected and the return are due on or before the last day of April, July,
2727-1341
2818+1386
27282819 October, and January.
2729-1342
2820+1387
27302821 (2) A licensee that sells a [cannabinoid] specialized product to a purchaser shall maintain
2731-1343
2822+1388
27322823 records to determine the amount of tax due under this part for a period of three years.
2733-1344
2824+- 41 - 2nd Sub. (Gray) H.B. 509 02-27 17:51
2825+1389
27342826 (3)(a) A consumer that receives or purchases an untaxed [cannabinoid] specialized
2735-1345
2827+1390
27362828 product for use or other consumption shall:
2737-1346
2829+1391
27382830 (i) file with the commission, on a form provided by the commission, a statement
2739-1347
2831+1392
27402832 showing the quantity and description of the [cannabinoid] specialized product
2741-1348
2833+1393
27422834 subject to tax under this part; and
2743-1349
2835+1394
27442836 (ii) pay the tax imposed by this part on the [cannabinoid] specialized product.
2745-1350
2837+1395
27462838 (b) The consumer shall file the statement described in Subsection (3)(a) and pay the tax
2747-1351
2839+1396
27482840 due on or before the last day of the month immediately following the month during
2749-1352
2841+1397
27502842 which the consumer purchased an untaxed [cannabinoid] specialized product.
2751-1353
2843+1398
27522844 (c) A consumer shall maintain records necessary to determine the amount of tax the
2753-1354
2845+1399
27542846 consumer is liable to pay under this part for a period of three years after the day on
2755-- 40 - 03-03 14:01 3rd Sub. (Cherry) H.B. 509
2756-1355
2847+1400
27572848 which the consumer filed the statement required by this section.
2758-1356
2849+1401
27592850 (4) A tourist who imports an untaxed [cannabinoid] specialized product into the state does
2760-1357
2851+1402
27612852 not need to file the statement described in Subsection (3) or pay the tax if the [
2762-1358
2853+1403
27632854 cannabinoid] specialized product is for the tourist's own use or consumption while in this
2764-1359
2855+1404
27652856 state.
2766-1360
2857+1405
27672858 (5) In addition to the tax required by this part, a [person] retailer shall pay a penalty as
2768-1361
2769-provided in Section 59-1-401, plus interest at the rate and in the manner [provide]
2770-1362
2771-provided in Section 59-1-402, if a [person] retailer subject to this section fails to:
2772-1363
2859+1406
2860+provided in Section 59-1-401, plus interest at the rate and in the manner provide in
2861+1407
2862+Section 59-1-402, if a [person] retailer subject to this section fails to:
2863+1408
27732864 (a) pay the tax imposed by this part;
2774-1364
2865+1409
27752866 (b) pay the tax on time; or
2776-1365
2867+1410
27772868 (c) file a return or statement required by this part.
2778-1366
2869+1411
27792870 (6) An overpayment of a tax imposed by this part shall accrue interest at the rate and in the
2780-1367
2871+1412
27812872 manner provided in Section 59-1-402.
2782-1368
2873+1413
27832874 (7)(a) The commission shall retain and deposit an administrative charge in accordance
2784-1369
2875+1414
27852876 with Section 59-1-306 from revenue generated by the tax under this part.
2786-1370
2877+1415
27872878 (b) The commission shall deposit [47% of the revenue generated by the tax imposed by
2788-1371
2879+1416
27892880 this part into the General Fund and the remaining] the revenue generated by the tax
2790-1372
2881+1417
27912882 imposed under this part into the [Cannabinoid] Specialized Product Proceeds
2792-1373
2883+1418
27932884 Restricted Account created in Section 59-31-401.
2794-1374
2795-Section 12. Section 59-31-401 is amended to read:
2796-1375
2885+1419
2886+Section 13. Section 59-31-401 is amended to read:
2887+1420
27972888 59-31-401 (Effective 01/01/26). Specialized Product Proceeds Restricted Account.
2798-1376
2889+1421
27992890 (1) There is created within the General Fund a restricted account known as the "[
2800-1377
2891+1422
28012892 Cannabinoid] Specialized Product Proceeds Restricted Account."
2802-1378
2893+- 42 - 02-27 17:51 2nd Sub. (Gray) H.B. 509
2894+1423
28032895 (2) The [Cannabinoid] Specialized Product Proceeds Restricted Account consists of:
2804-1379
2896+1424
28052897 (a) revenue collected from the tax imposed by Section 59-31-301; and
2806-1380
2898+1425
28072899 (b) amounts appropriated by the Legislature.
2808-1381
2900+1426
28092901 (3) Subject to appropriation, money in the account may be used for any of the following:
2810-1382
2902+1427
28112903 (a) enforcement [of] and performance of duties described in Title 4, Chapter 41, Hemp
2812-1383
2904+1428
28132905 and Cannabinoid Act, by the Department of Agriculture and Food;
2814-1384
2906+1429
28152907 (b) enforcement and performance of duties described in Title 4, Chapter 45, Kratom
2816-1385
2908+1430
28172909 Consumer Protection Act, by the Department of Agriculture and Food;
2818-1386
2910+1431
28192911 [(b)] (c) investigations described in Section 77-39-101, regarding cannabinoid products;
2820-1387
2912+1432
28212913 and
2822-1388
2914+1433
28232915 [(c)] (d) the Industrial Hemp Grant Program created in Section 63N-3-1302[; and] .
2824-- 41 - 3rd Sub. (Cherry) H.B. 509 03-03 14:01
2825-1389
2916+1434
28262917 [(d) provided to counties, cities, and towns in proportion to the county's, city's, or town's
2827-1390
2918+1435
28282919 distribution under Section 59-12-205 for the preceding fiscal year.]
2829-1391
2830-Section 13. Section 59-31-402 is amended to read:
2831-1392
2920+1436
2921+Section 14. Section 59-31-402 is amended to read:
2922+1437
28322923 59-31-402 (Effective 01/01/26). Report to Department of Agriculture and Food of
2833-1393
2924+1438
28342925 illegal specialized product.
2835-1394
2926+1439
28362927 If the commission suspects that a [cannabinoid] specialized product is being sold in the
2837-1395
2928+1440
28382929 state in violation of a law other than a law described in this chapter, the commission shall
2839-1396
2930+1441
28402931 report the name and tax identification number of the seller and the [cannabinoid] specialized
2841-1397
2932+1442
28422933 product:
2843-1398
2934+1443
28442935 (1) to the Department of Agriculture and Food; and
2845-1399
2936+1444
28462937 (2) within 30 days after the day on which the commission becomes aware of the sale.
2847-1400
2848-Section 14. Effective Date.
2849-1401
2938+1445
2939+Section 15. Effective Date.
2940+1446
28502941 (1) Except as provided in Subsection (2), this bill takes effect January 1, 2026.
2851-1402
2942+1447
28522943 (2) The actions affecting the following sections take effect on May 7, 2025:
2853-1403
2854-(a) Section 4-45-102 (Effective 05/07/25); and
2855-1404
2856-(b) Section 4-45-104 (Effective 05/07/25).
2857-- 42 -
2944+1448
2945+(a) Section 4-45-102 (Effective 05/07/25);
2946+1449
2947+(b) Section 4-45-109 (Effective 05/07/25); and
2948+1450
2949+(c) Section 4-45-110 (Effective 05/07/25).
2950+- 43 -