01-21 16:30 1st Sub. (Green) S.B. 122
Nate Blouin proposes the following substitute bill:
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Sales Tax on Food Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Nate Blouin
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LONG TITLE
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General Description:
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This bill modifies the state sales and use tax.
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Highlighted Provisions:
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This bill:
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▸ removes the state sales and use tax imposed on amounts paid or charged for food and
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food ingredients;
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▸ adjusts the general sales tax rate to generate revenue for the General Fund that offsets the
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loss of revenue from the removal of the state sales tax on food and food ingredients; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides a special effective date.
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Utah Code Sections Affected:
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AMENDS:
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59-12-102, as last amended by Laws of Utah 2024, Chapter 274
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59-12-103, as last amended by Laws of Utah 2024, Chapters 88, 501
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59-12-108, as last amended by Laws of Utah 2023, Chapter 459
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63N-2-502, as last amended by Laws of Utah 2023, Chapter 459
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 59-12-102 is amended to read:
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59-12-102 . Definitions.
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As used in this chapter:
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(1) "800 service" means a telecommunications service that:
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(a) allows a caller to dial a toll-free number without incurring a charge for the call; and
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(b) is typically marketed: 1st Sub. (Green) S.B. 122 01-21 16:30
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(i) under the name 800 toll-free calling;
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(ii) under the name 855 toll-free calling;
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(iii) under the name 866 toll-free calling;
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(iv) under the name 877 toll-free calling;
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(v) under the name 888 toll-free calling; or
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(vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
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Federal Communications Commission.
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(2)(a) "900 service" means an inbound toll telecommunications service that:
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(i) a subscriber purchases;
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(ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
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the subscriber's:
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(A) prerecorded announcement; or
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(B) live service; and
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(iii) is typically marketed:
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(A) under the name 900 service; or
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(B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
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Communications Commission.
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(b) "900 service" does not include a charge for:
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(i) a collection service a seller of a telecommunications service provides to a
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subscriber; or
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(ii) the following a subscriber sells to the subscriber's customer:
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(A) a product; or
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(B) a service.
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(3)(a) "Admission or user fees" includes season passes.
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(b) "Admission or user fees" does not include:
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(i) annual membership dues to private organizations; or
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(ii) a lesson, including a lesson that involves as part of the lesson equipment or a
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facility listed in Subsection 59-12-103(1)(f).
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(4) "Affiliate" or "affiliated person" means a person that, with respect to another person:
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(a) has an ownership interest of more than 5%, whether direct or indirect, in that other
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person; or
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(b) is related to the other person because a third person, or a group of third persons who
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are affiliated persons with respect to each other, holds an ownership interest of more
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than 5%, whether direct or indirect, in the related persons.
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(5) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
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November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
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Agreement after November 12, 2002.
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(6) "Agreement combined tax rate" means the sum of the tax rates:
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(a) listed under Subsection (7); and
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(b) that are imposed within a local taxing jurisdiction.
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(7) "Agreement sales and use tax" means a tax imposed under:
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(a) Subsection 59-12-103(2)(a)(i)(A);
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(b) Subsection 59-12-103(2)(b)(i);
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[(c) Subsection 59-12-103(2)(c)(i);]
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[(d)] (c) Subsection 59-12-103(2)(d);
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[(e)] (d) Subsection 59-12-103(2)(e)(i)(A)(I);
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[(f)] (e) Section 59-12-204;
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[(g)] (f) Section 59-12-401;
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[(h)] (g) Section 59-12-402;
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[(i)] (h) Section 59-12-402.1;
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[(j)] (i) Section 59-12-703;
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[(k)] (j) Section 59-12-802;
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[(l)] (k) Section 59-12-804;
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[(m)] (l) Section 59-12-1102;
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[(n)] (m) Section 59-12-1302;
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[(o)] (n) Section 59-12-1402;
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[(p)] (o) Section 59-12-1802;
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[(q)] (p) Section 59-12-2003;
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[(r)] (q) Section 59-12-2103;
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[(s)] (r) Section 59-12-2213;
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[(t)] (s) Section 59-12-2214;
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[(u)] (t) Section 59-12-2215;
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[(v)] (u) Section 59-12-2216;
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[(w)] (v) Section 59-12-2217;
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[(x)] (w) Section 59-12-2218;
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[(y)] (x) Section 59-12-2219; or
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[(z)] (y) Section 59-12-2220.
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(8) "Aircraft" means the same as that term is defined in Section 72-10-102.
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(9) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
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(a) except for:
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(i) an airline as defined in Section 59-2-102; or
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(ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
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includes a corporation that is qualified to do business but is not otherwise doing
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business in the state, of an airline; and
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(b) that has the workers, expertise, and facilities to perform the following, regardless of
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whether the business entity performs the following in this state:
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(i) check, diagnose, overhaul, and repair:
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(A) an onboard system of a fixed wing turbine powered aircraft; and
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(B) the parts that comprise an onboard system of a fixed wing turbine powered
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aircraft;
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(ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered
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aircraft engine;
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(iii) perform at least the following maintenance on a fixed wing turbine powered
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aircraft:
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(A) an inspection;
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(B) a repair, including a structural repair or modification;
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(C) changing landing gear; and
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(D) addressing issues related to an aging fixed wing turbine powered aircraft;
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(iv) completely remove the existing paint of a fixed wing turbine powered aircraft
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and completely apply new paint to the fixed wing turbine powered aircraft; and
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(v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
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results in a change in the fixed wing turbine powered aircraft's certification
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requirements by the authority that certifies the fixed wing turbine powered aircraft.
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(10) "Alcoholic beverage" means a beverage that:
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(a) is suitable for human consumption; and
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(b) contains .5% or more alcohol by volume.
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(11) "Alternative energy" means:
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(a) biomass energy;
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(b) geothermal energy;
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(c) hydroelectric energy;
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(d) solar energy;
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(e) wind energy; or
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(f) energy that is derived from:
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(i) coal-to-liquids;
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(ii) nuclear fuel;
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(iii) oil-impregnated diatomaceous earth;
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(iv) oil sands;
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(v) oil shale;
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(vi) petroleum coke; or
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(vii) waste heat from:
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(A) an industrial facility; or
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(B) a power station in which an electric generator is driven through a process in
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which water is heated, turns into steam, and spins a steam turbine.
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(12)(a) Subject to Subsection (12)(b), "alternative energy electricity production facility"
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means a facility that:
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(i) uses alternative energy to produce electricity; and
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(ii) has a production capacity of two megawatts or greater.
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(b) A facility is an alternative energy electricity production facility regardless of whether
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the facility is:
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(i) connected to an electric grid; or
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(ii) located on the premises of an electricity consumer.
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(13)(a) "Ancillary service" means a service associated with, or incidental to, the
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provision of telecommunications service.
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(b) "Ancillary service" includes:
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(i) a conference bridging service;
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(ii) a detailed communications billing service;
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(iii) directory assistance;
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(iv) a vertical service; or
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(v) a voice mail service.
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(14) "Area agency on aging" means the same as that term is defined in Section 26B-6-101.
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(15) "Assisted amusement device" means an amusement device, skill device, or ride device
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that is started and stopped by an individual:
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(a) who is not the purchaser or renter of the right to use or operate the amusement
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device, skill device, or ride device; and
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(b) at the direction of the seller of the right to use the amusement device, skill device, or
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ride device.
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(16) "Assisted cleaning or washing of tangible personal property" means cleaning or
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washing of tangible personal property if the cleaning or washing labor is primarily
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performed by an individual:
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(a) who is not the purchaser of the cleaning or washing of the tangible personal property;
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and
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(b) at the direction of the seller of the cleaning or washing of the tangible personal
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property.
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(17) "Authorized carrier" means:
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(a) in the case of vehicles operated over public highways, the holder of credentials
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indicating that the vehicle is or will be operated pursuant to both the International
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Registration Plan and the International Fuel Tax Agreement;
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(b) in the case of aircraft, the holder of a Federal Aviation Administration operating
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certificate or air carrier's operating certificate; or
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(c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
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stock, a person who uses locomotives, freight cars, railroad work equipment, or other
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rolling stock in more than one state.
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(18)(a) "Biomass energy" means any of the following that is used as the primary source
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of energy to produce fuel or electricity:
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(i) material from a plant or tree; or
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(ii) other organic matter that is available on a renewable basis, including:
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(A) slash and brush from forests and woodlands;
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(B) animal waste;
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(C) waste vegetable oil;
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(D) methane or synthetic gas produced at a landfill, as a byproduct of the
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treatment of wastewater residuals, or through the conversion of a waste
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material through a nonincineration, thermal conversion process;
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(E) aquatic plants; and
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(F) agricultural products.
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(b) "Biomass energy" does not include:
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(i) black liquor; or
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(ii) treated woods.
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(19)(a) "Bundled transaction" means the sale of two or more items of tangible personal
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property, products, or services if the tangible personal property, products, or services
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are:
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(i) distinct and identifiable; and
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(ii) sold for one nonitemized price.
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(b) "Bundled transaction" does not include:
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(i) the sale of tangible personal property if the sales price varies, or is negotiable, on
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the basis of the selection by the purchaser of the items of tangible personal
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property included in the transaction;
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(ii) the sale of real property;
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(iii) the sale of services to real property;
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(iv) the retail sale of tangible personal property and a service if:
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(A) the tangible personal property:
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(I) is essential to the use of the service; and
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(II) is provided exclusively in connection with the service; and
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(B) the service is the true object of the transaction;
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(v) the retail sale of two services if:
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(A) one service is provided that is essential to the use or receipt of a second
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service;
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(B) the first service is provided exclusively in connection with the second service;
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and
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(C) the second service is the true object of the transaction;
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(vi) a transaction that includes tangible personal property or a product subject to
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taxation under this chapter and tangible personal property or a product that is not
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subject to taxation under this chapter if the:
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(A) seller's purchase price of the tangible personal property or product subject to
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taxation under this chapter is de minimis; or
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(B) seller's sales price of the tangible personal property or product subject to
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taxation under this chapter is de minimis; and
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(vii) the retail sale of tangible personal property that is not subject to taxation under
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this chapter and tangible personal property that is subject to taxation under this
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chapter if:
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(A) that retail sale includes:
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(I) food and food ingredients;
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(II) a drug;
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(III) durable medical equipment;
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(IV) mobility enhancing equipment;
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(V) an over-the-counter drug;
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(VI) a prosthetic device; or
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(VII) a medical supply; and
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(B) subject to Subsection (19)(f):
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(I) the seller's purchase price of the tangible personal property subject to
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taxation under this chapter is 50% or less of the seller's total purchase price
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of that retail sale; or
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(II) the seller's sales price of the tangible personal property subject to taxation
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under this chapter is 50% or less of the seller's total sales price of that retail
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sale.
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(c)(i) For purposes of Subsection (19)(a)(i), tangible personal property, a product, or
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a service that is distinct and identifiable does not include:
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(A) packaging that:
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(I) accompanies the sale of the tangible personal property, product, or service;
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and
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(II) is incidental or immaterial to the sale of the tangible personal property,
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product, or service;
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(B) tangible personal property, a product, or a service provided free of charge with
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the purchase of another item of tangible personal property, a product, or a
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service; or
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(C) an item of tangible personal property, a product, or a service included in the
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definition of "purchase price."
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(ii) For purposes of Subsection (19)(c)(i)(B), an item of tangible personal property, a
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product, or a service is provided free of charge with the purchase of another item
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of tangible personal property, a product, or a service if the sales price of the
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purchased item of tangible personal property, product, or service does not vary
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depending on the inclusion of the tangible personal property, product, or service
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provided free of charge.
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(d)(i) For purposes of Subsection (19)(a)(ii), property sold for one nonitemized price
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does not include a price that is separately identified by tangible personal property,
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product, or service on the following, regardless of whether the following is in
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paper format or electronic format:
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(A) a binding sales document; or
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(B) another supporting sales-related document that is available to a purchaser.
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(ii) For purposes of Subsection (19)(d)(i), a binding sales document or another
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supporting sales-related document that is available to a purchaser includes:
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(A) a bill of sale;
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(B) a contract;
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(C) an invoice;
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(D) a lease agreement;
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(E) a periodic notice of rates and services;
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(F) a price list;
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(G) a rate card;
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(H) a receipt; or
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(I) a service agreement.
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(e)(i) For purposes of Subsection (19)(b)(vi), the sales price of tangible personal
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property or a product subject to taxation under this chapter is de minimis if:
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(A) the seller's purchase price of the tangible personal property or product is 10%
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or less of the seller's total purchase price of the bundled transaction; or
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(B) the seller's sales price of the tangible personal property or product is 10% or
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less of the seller's total sales price of the bundled transaction.
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(ii) For purposes of Subsection (19)(b)(vi), a seller:
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(A) shall use the seller's purchase price or the seller's sales price to determine if
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the purchase price or sales price of the tangible personal property or product
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subject to taxation under this chapter is de minimis; and
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(B) may not use a combination of the seller's purchase price and the seller's sales
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price to determine if the purchase price or sales price of the tangible personal
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property or product subject to taxation under this chapter is de minimis.
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(iii) For purposes of Subsection (19)(b)(vi), a seller shall use the full term of a service
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contract to determine if the sales price of tangible personal property or a product is
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de minimis.
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(f) For purposes of Subsection (19)(b)(vii)(B), a seller may not use a combination of the
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seller's purchase price and the seller's sales price to determine if tangible personal
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property subject to taxation under this chapter is 50% or less of the seller's total
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purchase price or sales price of that retail sale.
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(20) "Car sharing" means the same as that term is defined in Section 13-48a-101.
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(21) "Car-sharing program" means the same as that term is defined in Section 13-48a-101.
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(22) "Certified automated system" means software certified by the governing board of the
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agreement that:
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(a) calculates the agreement sales and use tax imposed within a local taxing jurisdiction:
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(i) on a transaction; and
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(ii) in the states that are members of the agreement;
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(b) determines the amount of agreement sales and use tax to remit to a state that is a
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member of the agreement; and
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(c) maintains a record of the transaction described in Subsection (22)(a)(i).
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(23) "Certified service provider" means an agent certified:
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(a) by the governing board of the agreement; and
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(b) to perform a seller's sales and use tax functions for an agreement sales and use tax, as
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outlined in the contract between the governing board of the agreement and the
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certified service provider, other than the seller's obligation under Section 59-12-124
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to remit a tax on the seller's own purchases.
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(24)(a) Subject to Subsection (24)(b), "clothing" means all human wearing apparel
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suitable for general use.
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(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
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commission shall make rules:
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(i) listing the items that constitute "clothing"; and
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(ii) that are consistent with the list of items that constitute "clothing" under the
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agreement.
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(25) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
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(26) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels
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that does not constitute industrial use under Subsection (60) or residential use under
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Subsection (115).
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(27)(a) "Common carrier" means a person engaged in or transacting the business of
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transporting passengers, freight, merchandise, or other property for hire within this
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state.
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(b)(i) "Common carrier" does not include a person that, at the time the person is
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traveling to or from that person's place of employment, transports a passenger to
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or from the passenger's place of employment.
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(ii) For purposes of Subsection (27)(b)(i), in accordance with Title 63G, Chapter 3,
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Utah Administrative Rulemaking Act, the commission may make rules defining
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what constitutes a person's place of employment.
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(c) "Common carrier" does not include a person that provides transportation network
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services, as defined in Section 13-51-102.
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(28) "Component part" includes:
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(a) poultry, dairy, and other livestock feed, and their components;
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(b) baling ties and twine used in the baling of hay and straw;
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(c) fuel used for providing temperature control of orchards and commercial greenhouses
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doing a majority of their business in wholesale sales, and for providing power for
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off-highway type farm machinery; and
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(d) feed, seeds, and seedlings.
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(29) "Computer" means an electronic device that accepts information:
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(a)(i) in digital form; or
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(ii) in a form similar to digital form; and
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(b) manipulates that information for a result based on a sequence of instructions.
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(30) "Computer software" means a set of coded instructions designed to cause:
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(a) a computer to perform a task; or
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(b) automatic data processing equipment to perform a task.
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(31) "Computer software maintenance contract" means a contract that obligates a seller of
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computer software to provide a customer with:
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(a) future updates or upgrades to computer software;
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(b) support services with respect to computer software; or
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(c) a combination of Subsections (31)(a) and (b).
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(32)(a) "Conference bridging service" means an ancillary service that links two or more
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participants of an audio conference call or video conference call.
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(b) "Conference bridging service" may include providing a telephone number as part of
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the ancillary service described in Subsection (32)(a).
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(c) "Conference bridging service" does not include a telecommunications service used to
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reach the ancillary service described in Subsection (32)(a).
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(33) "Construction materials" means any tangible personal property that will be converted
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into real property.
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(34) "Delivered electronically" means delivered to a purchaser by means other than tangible
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storage media.
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(35)(a) "Delivery charge" means a charge:
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(i) by a seller of:
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(A) tangible personal property;
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(B) a product transferred electronically; or
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(C) a service; and
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(ii) for preparation and delivery of the tangible personal property, product transferred
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electronically, or services described in Subsection (35)(a)(i) to a location
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designated by the purchaser.
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(b) "Delivery charge" includes a charge for the following:
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(i) transportation;
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(ii) shipping;
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(iii) postage;
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(iv) handling;
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(v) crating; or
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(vi) packing.
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(36) "Detailed telecommunications billing service" means an ancillary service of separately
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stating information pertaining to individual calls on a customer's billing statement.
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(37) "Dietary supplement" means a product, other than tobacco, that:
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(a) is intended to supplement the diet;
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(b) contains one or more of the following dietary ingredients:
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(i) a vitamin;
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(ii) a mineral;
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(iii) an herb or other botanical;
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(iv) an amino acid;
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(v) a dietary substance for use by humans to supplement the diet by increasing the
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total dietary intake; or
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(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
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described in Subsections (37)(b)(i) through (v);
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(c)(i) except as provided in Subsection (37)(c)(ii), is intended for ingestion in:
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(A) tablet form;
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(B) capsule form;
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(C) powder form;
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(D) softgel form;
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(E) gelcap form; or
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(F) liquid form; or
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(ii) if the product is not intended for ingestion in a form described in Subsections
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(37)(c)(i)(A) through (F), is not represented:
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(A) as conventional food; and
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(B) for use as a sole item of:
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(I) a meal; or
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(II) the diet; and
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(d) is required to be labeled as a dietary supplement:
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(i) identifiable by the "Supplemental Facts" box found on the label; and
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(ii) as required by 21 C.F.R. Sec. 101.36.
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(38)(a) "Digital audio work" means a work that results from the fixation of a series of
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musical, spoken, or other sounds.
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(b) "Digital audio work" includes a ringtone.
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(39) "Digital audio-visual work" means a series of related images which, when shown in
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succession, imparts an impression of motion, together with accompanying sounds, if any.
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(40) "Digital book" means a work that is generally recognized in the ordinary and usual
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sense as a book.
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(41)(a) "Direct mail" means printed material delivered or distributed by United States
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mail or other delivery service:
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(i) to:
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(A) a mass audience; or
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(B) addressees on a mailing list provided:
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(I) by a purchaser of the mailing list; or
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(II) at the discretion of the purchaser of the mailing list; and
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(ii) if the cost of the printed material is not billed directly to the recipients.
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(b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
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purchaser to a seller of direct mail for inclusion in a package containing the printed
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material.
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(c) "Direct mail" does not include multiple items of printed material delivered to a single
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address.
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(42) "Directory assistance" means an ancillary service of providing:
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(a) address information; or
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(b) telephone number information.
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(43)(a) "Disposable home medical equipment or supplies" means medical equipment or
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supplies that:
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(i) cannot withstand repeated use; and
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(ii) are purchased by, for, or on behalf of a person other than:
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(A) a health care facility as defined in Section 26B-2-201;
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(B) a health care provider as defined in Section 78B-3-403;
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(C) an office of a health care provider described in Subsection (43)(a)(ii)(B); or
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(D) a person similar to a person described in Subsections (43)(a)(ii)(A) through
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(C).
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(b) "Disposable home medical equipment or supplies" does not include:
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(i) a drug;
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(ii) durable medical equipment;
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(iii) a hearing aid;
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(iv) a hearing aid accessory;
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(v) mobility enhancing equipment; or
449
(vi) tangible personal property used to correct impaired vision, including:
450
(A) eyeglasses; or
451
(B) contact lenses.
452
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
453
commission may by rule define what constitutes medical equipment or supplies.
454
(44) "Drilling equipment manufacturer" means a facility:
455
(a) located in the state;
456
(b) with respect to which 51% or more of the manufacturing activities of the facility
457
consist of manufacturing component parts of drilling equipment;
458
(c) that uses pressure of 800,000 or more pounds per square inch as part of the
459
manufacturing process; and
460
(d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
461
manufacturing process.
462
(45)(a) "Drug" means a compound, substance, or preparation, or a component of a
463
compound, substance, or preparation that is:
464
(i) recognized in:
465
(A) the official United States Pharmacopoeia;
466
(B) the official Homeopathic Pharmacopoeia of the United States;
467
(C) the official National Formulary; or
468
(D) a supplement to a publication listed in Subsections (45)(a)(i)(A) through (C);
469
(ii) intended for use in the:
470
(A) diagnosis of disease;
471
(B) cure of disease;
472
(C) mitigation of disease;
- 14 - 01-21 16:30 1st Sub. (Green) S.B. 122
473
(D) treatment of disease; or
474
(E) prevention of disease; or
475
(iii) intended to affect:
476
(A) the structure of the body; or
477
(B) any function of the body.
478
(b) "Drug" does not include:
479
(i) food and food ingredients;
480
(ii) a dietary supplement;
481
(iii) an alcoholic beverage; or
482
(iv) a prosthetic device.
483
(46)(a) "Durable medical equipment" means equipment that:
484
(i) can withstand repeated use;
485
(ii) is primarily and customarily used to serve a medical purpose;
486
(iii) generally is not useful to a person in the absence of illness or injury; and
487
(iv) is not worn in or on the body.
488
(b) "Durable medical equipment" includes parts used in the repair or replacement of the
489
equipment described in Subsection (46)(a).
490
(c) "Durable medical equipment" does not include mobility enhancing equipment.
491
(47) "Electronic" means:
492
(a) relating to technology; and
493
(b) having:
494
(i) electrical capabilities;
495
(ii) digital capabilities;
496
(iii) magnetic capabilities;
497
(iv) wireless capabilities;
498
(v) optical capabilities;
499
(vi) electromagnetic capabilities; or
500
(vii) capabilities similar to Subsections (47)(b)(i) through (vi).
501
(48) "Electronic financial payment service" means an establishment:
502
(a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
503
Clearinghouse Activities, of the 2012 North American Industry Classification System
504
of the federal Executive Office of the President, Office of Management and Budget;
505
and
506
(b) that performs electronic financial payment services.
- 15 - 1st Sub. (Green) S.B. 122 01-21 16:30
507
(49) "Employee" means the same as that term is defined in Section 59-10-401.
508
(50) "Fixed guideway" means a public transit facility that uses and occupies:
509
(a) rail for the use of public transit; or
510
(b) a separate right-of-way for the use of public transit.
511
(51) "Fixed wing turbine powered aircraft" means an aircraft that:
512
(a) is powered by turbine engines;
513
(b) operates on jet fuel; and
514
(c) has wings that are permanently attached to the fuselage of the aircraft.
515
(52) "Fixed wireless service" means a telecommunications service that provides radio
516
communication between fixed points.
517
(53)(a) "Food and food ingredients" means substances:
518
(i) regardless of whether the substances are in:
519
(A) liquid form;
520
(B) concentrated form;
521
(C) solid form;
522
(D) frozen form;
523
(E) dried form; or
524
(F) dehydrated form; and
525
(ii) that are:
526
(A) sold for:
527
(I) ingestion by humans; or
528
(II) chewing by humans; and
529
(B) consumed for the substance's:
530
(I) taste; or
531
(II) nutritional value.
532
(b) "Food and food ingredients" includes an item described in Subsection (99)(b)(iii).
533
(c) "Food and food ingredients" does not include:
534
(i) an alcoholic beverage;
535
(ii) tobacco; or
536
(iii) prepared food.
537
(54)(a) "Fundraising sales" means sales:
538
(i)(A) made by a school; or
539
(B) made by a school student;
540
(ii) that are for the purpose of raising funds for the school to purchase equipment,
- 16 - 01-21 16:30 1st Sub. (Green) S.B. 122
541
materials, or provide transportation; and
542
(iii) that are part of an officially sanctioned school activity.
543
(b) For purposes of Subsection (54)(a)(iii), "officially sanctioned school activity" means
544
a school activity:
545
(i) that is conducted in accordance with a formal policy adopted by the school or
546
school district governing the authorization and supervision of fundraising
547
activities;
548
(ii) that does not directly or indirectly compensate an individual teacher or other
549
educational personnel by direct payment, commissions, or payment in kind; and
550
(iii) the net or gross revenue from which is deposited in a dedicated account
551
controlled by the school or school district.
552
(55) "Geothermal energy" means energy contained in heat that continuously flows outward
553
from the earth that is used as the sole source of energy to produce electricity.
554
(56) "Governing board of the agreement" means the governing board of the agreement that
555
is:
556
(a) authorized to administer the agreement; and
557
(b) established in accordance with the agreement.
558
(57)(a) For purposes of Subsection 59-12-104(41), "governmental entity" means:
559
(i) the executive branch of the state, including all departments, institutions, boards,
560
divisions, bureaus, offices, commissions, and committees;
561
(ii) the judicial branch of the state, including the courts, the Judicial Council, the
562
Administrative Office of the Courts, and similar administrative units in the
563
judicial branch;
564
(iii) the legislative branch of the state, including the House of Representatives, the
565
Senate, the Legislative Printing Office, the Office of Legislative Research and
566
General Counsel, the Office of the Legislative Auditor General, and the Office of
567
the Legislative Fiscal Analyst;
568
(iv) the National Guard;
569
(v) an independent entity as defined in Section 63E-1-102; or
570
(vi) a political subdivision as defined in Section 17B-1-102.
571
(b) "Governmental entity" does not include the state systems of public and higher
572
education, including:
573
(i) a school;
574
(ii) the State Board of Education;
- 17 - 1st Sub. (Green) S.B. 122 01-21 16:30
575
(iii) the Utah Board of Higher Education; or
576
(iv) an institution of higher education described in Section 53B-1-102.
577
(58) "Hydroelectric energy" means water used as the sole source of energy to produce
578
electricity.
579
(59) "Individual-owned shared vehicle" means the same as that term is defined in Section
580
13-48a-101.
581
(60) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or other
582
fuels:
583
(a) in mining or extraction of minerals;
584
(b) in agricultural operations to produce an agricultural product up to the time of harvest
585
or placing the agricultural product into a storage facility, including:
586
(i) commercial greenhouses;
587
(ii) irrigation pumps;
588
(iii) farm machinery;
589
(iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
590
under Title 41, Chapter 1a, Part 2, Registration; and
591
(v) other farming activities;
592
(c) in manufacturing tangible personal property at an establishment described in:
593
(i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
594
the federal Executive Office of the President, Office of Management and Budget;
595
or
596
(ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
597
American Industry Classification System of the federal Executive Office of the
598
President, Office of Management and Budget;
599
(d) by a scrap recycler if:
600
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to
601
process one or more of the following items into prepared grades of processed
602
materials for use in new products:
603
(A) iron;
604
(B) steel;
605
(C) nonferrous metal;
606
(D) paper;
607
(E) glass;
608
(F) plastic;
- 18 - 01-21 16:30 1st Sub. (Green) S.B. 122
609
(G) textile; or
610
(H) rubber; and
611
(ii) the new products under Subsection (60)(d)(i) would otherwise be made with
612
nonrecycled materials; or
613
(e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
614
cogeneration facility as defined in Section 54-2-1.
615
(61)(a) "Installation charge" means a charge for installing:
616
(i) tangible personal property; or
617
(ii) a product transferred electronically.
618
(b) "Installation charge" does not include a charge for:
619
(i) repairs or renovations of:
620
(A) tangible personal property; or
621
(B) a product transferred electronically; or
622
(ii) attaching tangible personal property or a product transferred electronically:
623
(A) to other tangible personal property; and
624
(B) as part of a manufacturing or fabrication process.
625
(62) "Institution of higher education" means an institution of higher education listed in
626
Section 53B-2-101.
627
(63)(a) "Lease" or "rental" means a transfer of possession or control of tangible personal
628
property or a product transferred electronically for:
629
(i)(A) a fixed term; or
630
(B) an indeterminate term; and
631
(ii) consideration.
632
(b) "Lease" or "rental" includes:
633
(i) an agreement covering a motor vehicle and trailer if the amount of consideration
634
may be increased or decreased by reference to the amount realized upon sale or
635
disposition of the property as defined in Section 7701(h)(1), Internal Revenue
636
Code; and
637
(ii) car sharing.
638
(c) "Lease" or "rental" does not include:
639
(i) a transfer of possession or control of property under a security agreement or
640
deferred payment plan that requires the transfer of title upon completion of the
641
required payments;
642
(ii) a transfer of possession or control of property under an agreement that requires
- 19 - 1st Sub. (Green) S.B. 122 01-21 16:30
643
the transfer of title:
644
(A) upon completion of required payments; and
645
(B) if the payment of an option price does not exceed the greater of:
646
(I) $100; or
647
(II) 1% of the total required payments; or
648
(iii) providing tangible personal property along with an operator for a fixed period of
649
time or an indeterminate period of time if the operator is necessary for equipment
650
to perform as designed.
651
(d) For purposes of Subsection (63)(c)(iii), an operator is necessary for equipment to
652
perform as designed if the operator's duties exceed the:
653
(i) set-up of tangible personal property;
654
(ii) maintenance of tangible personal property; or
655
(iii) inspection of tangible personal property.
656
(64) "Lesson" means a fixed period of time for the duration of which a trained instructor:
657
(a) is present with a student in person or by video; and
658
(b) actively instructs the student, including by providing observation or feedback.
659
(65) "Life science establishment" means an establishment in this state that is classified
660
under the following NAICS codes of the 2007 North American Industry Classification
661
System of the federal Executive Office of the President, Office of Management and
662
Budget:
663
(a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
664
(b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
665
Manufacturing; or
666
(c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
667
(66) "Life science research and development facility" means a facility owned, leased, or
668
rented by a life science establishment if research and development is performed in 51%
669
or more of the total area of the facility.
670
(67) "Load and leave" means delivery to a purchaser by use of a tangible storage media if
671
the tangible storage media is not physically transferred to the purchaser.
672
(68) "Local taxing jurisdiction" means a:
673
(a) county that is authorized to impose an agreement sales and use tax;
674
(b) city that is authorized to impose an agreement sales and use tax; or
675
(c) town that is authorized to impose an agreement sales and use tax.
676
(69) "Manufactured home" means the same as that term is defined in Section 15A-1-302.
- 20 - 01-21 16:30 1st Sub. (Green) S.B. 122
677
(70) "Manufacturing facility" means:
678
(a) an establishment described in:
679
(i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
680
the federal Executive Office of the President, Office of Management and Budget;
681
or
682
(ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
683
American Industry Classification System of the federal Executive Office of the
684
President, Office of Management and Budget;
685
(b) a scrap recycler if:
686
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to
687
process one or more of the following items into prepared grades of processed
688
materials for use in new products:
689
(A) iron;
690
(B) steel;
691
(C) nonferrous metal;
692
(D) paper;
693
(E) glass;
694
(F) plastic;
695
(G) textile; or
696
(H) rubber; and
697
(ii) the new products under Subsection (70)(b)(i) would otherwise be made with
698
nonrecycled materials; or
699
(c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
700
placed in service on or after May 1, 2006.
701
(71)(a) "Marketplace" means a physical or electronic place, platform, or forum where
702
tangible personal property, a product transferred electronically, or a service is offered
703
for sale.
704
(b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a dedicated
705
sales software application.
706
(72)(a) "Marketplace facilitator" means a person, including an affiliate of the person,
707
that enters into a contract, an agreement, or otherwise with sellers, for consideration,
708
to facilitate the sale of a seller's product through a marketplace that the person owns,
709
operates, or controls and that directly or indirectly:
710
(i) does any of the following:
- 21 - 1st Sub. (Green) S.B. 122 01-21 16:30
711
(A) lists, makes available, or advertises tangible personal property, a product
712
transferred electronically, or a service for sale by a marketplace seller on a
713
marketplace that the person owns, operates, or controls;
714
(B) facilitates the sale of a marketplace seller's tangible personal property, product
715
transferred electronically, or service by transmitting or otherwise
716
communicating an offer or acceptance of a retail sale between the marketplace
717
seller and a purchaser using the marketplace;
718
(C) owns, rents, licenses, makes available, or operates any electronic or physical
719
infrastructure or any property, process, method, copyright, trademark, or patent
720
that connects a marketplace seller to a purchaser for the purpose of making a
721
retail sale of tangible personal property, a product transferred electronically, or
722
a service;
723
(D) provides a marketplace for making, or otherwise facilitates, a retail sale of
724
tangible personal property, a product transferred electronically, or a service,
725
regardless of ownership or control of the tangible personal property, the
726
product transferred electronically, or the service that is the subject of the retail
727
sale;
728
(E) provides software development or research and development activities related
729
to any activity described in this Subsection (72)(a)(i), if the software
730
development or research and development activity is directly related to the
731
person's marketplace;
732
(F) provides or offers fulfillment or storage services for a marketplace seller;
733
(G) sets prices for the sale of tangible personal property, a product transferred
734
electronically, or a service by a marketplace seller;
735
(H) provides or offers customer service to a marketplace seller or a marketplace
736
seller's purchaser or accepts or assists with taking orders, returns, or exchanges
737
of tangible personal property, a product transferred electronically, or a service
738
sold by a marketplace seller on the person's marketplace; or
739
(I) brands or otherwise identifies sales as those of the person; and
740
(ii) does any of the following:
741
(A) collects the sales price or purchase price of a retail sale of tangible personal
742
property, a product transferred electronically, or a service;
743
(B) provides payment processing services for a retail sale of tangible personal
744
property, a product transferred electronically, or a service;
- 22 - 01-21 16:30 1st Sub. (Green) S.B. 122
745
(C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee,
746
closing fee, a fee for inserting or making available tangible personal property, a
747
product transferred electronically, or a service on the person's marketplace, or
748
other consideration for the facilitation of a retail sale of tangible personal
749
property, a product transferred electronically, or a service, regardless of
750
ownership or control of the tangible personal property, the product transferred
751
electronically, or the service that is the subject of the retail sale;
752
(D) through terms and conditions, an agreement, or another arrangement with a
753
third person, collects payment from a purchase for a retail sale of tangible
754
personal property, a product transferred electronically, or a service and
755
transmits that payment to the marketplace seller, regardless of whether the
756
third person receives compensation or other consideration in exchange for the
757
service; or
758
(E) provides a virtual currency for a purchaser to use to purchase tangible personal
759
property, a product transferred electronically, or service offered for sale.
760
(b) "Marketplace facilitator" does not include:
761
(i) a person that only provides payment processing services; or
762
(ii) a person described in Subsection (72)(a) to the extent the person is facilitating a
763
sale for a seller that is a restaurant as defined in Section 59-12-602.
764
(73) "Marketplace seller" means a seller that makes one or more retail sales through a
765
marketplace that a marketplace facilitator owns, operates, or controls, regardless of
766
whether the seller is required to be registered to collect and remit the tax under this part.
767
(74) "Member of the immediate family of the producer" means a person who is related to a
768
producer described in Subsection 59-12-104(20)(a) as a:
769
(a) child or stepchild, regardless of whether the child or stepchild is:
770
(i) an adopted child or adopted stepchild; or
771
(ii) a foster child or foster stepchild;
772
(b) grandchild or stepgrandchild;
773
(c) grandparent or stepgrandparent;
774
(d) nephew or stepnephew;
775
(e) niece or stepniece;
776
(f) parent or stepparent;
777
(g) sibling or stepsibling;
778
(h) spouse;
- 23 - 1st Sub. (Green) S.B. 122 01-21 16:30
779
(i) person who is the spouse of a person described in Subsections (74)(a) through (g); or
780
(j) person similar to a person described in Subsections (74)(a) through (i) as determined
781
by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
782
Administrative Rulemaking Act.
783
(75) "Mobile home" means the same as that term is defined in Section 15A-1-302.
784
(76) "Mobile telecommunications service" means the same as that term is defined in the
785
Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
786
(77)(a) "Mobile wireless service" means a telecommunications service, regardless of the
787
technology used, if:
788
(i) the origination point of the conveyance, routing, or transmission is not fixed;
789
(ii) the termination point of the conveyance, routing, or transmission is not fixed; or
790
(iii) the origination point described in Subsection (77)(a)(i) and the termination point
791
described in Subsection (77)(a)(ii) are not fixed.
792
(b) "Mobile wireless service" includes a telecommunications service that is provided by
793
a commercial mobile radio service provider.
794
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
795
commission may by rule define "commercial mobile radio service provider."
796
(78)(a) "Mobility enhancing equipment" means equipment that is:
797
(i) primarily and customarily used to provide or increase the ability to move from one
798
place to another;
799
(ii) appropriate for use in a:
800
(A) home; or
801
(B) motor vehicle; and
802
(iii) not generally used by persons with normal mobility.
803
(b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
804
the equipment described in Subsection (78)(a).
805
(c) "Mobility enhancing equipment" does not include:
806
(i) a motor vehicle;
807
(ii) equipment on a motor vehicle if that equipment is normally provided by the
808
motor vehicle manufacturer;
809
(iii) durable medical equipment; or
810
(iv) a prosthetic device.
811
(79) "Model 1 seller" means a seller registered under the agreement that has selected a
812
certified service provider as the seller's agent to perform the seller's sales and use tax
- 24 - 01-21 16:30 1st Sub. (Green) S.B. 122
813
functions for agreement sales and use taxes, as outlined in the contract between the
814
governing board of the agreement and the certified service provider, other than the
815
seller's obligation under Section 59-12-124 to remit a tax on the seller's own purchases.
816
(80) "Model 2 seller" means a seller registered under the agreement that:
817
(a) except as provided in Subsection (80)(b), has selected a certified automated system
818
to perform the seller's sales tax functions for agreement sales and use taxes; and
819
(b) retains responsibility for remitting all of the sales tax:
820
(i) collected by the seller; and
821
(ii) to the appropriate local taxing jurisdiction.
822
(81)(a) Subject to Subsection (81)(b), "model 3 seller" means a seller registered under
823
the agreement that has:
824
(i) sales in at least five states that are members of the agreement;
825
(ii) total annual sales revenue of at least $500,000,000;
826
(iii) a proprietary system that calculates the amount of tax:
827
(A) for an agreement sales and use tax; and
828
(B) due to each local taxing jurisdiction; and
829
(iv) entered into a performance agreement with the governing board of the agreement.
830
(b) For purposes of Subsection (81)(a), "model 3 seller" includes an affiliated group of
831
sellers using the same proprietary system.
832
(82) "Model 4 seller" means a seller that is registered under the agreement and is not a
833
model 1 seller, model 2 seller, or model 3 seller.
834
(83) "Modular home" means a modular unit as defined in Section 15A-1-302.
835
(84) "Motor vehicle" means the same as that term is defined in Section 41-1a-102.
836
(85) "Oil sands" means impregnated bituminous sands that:
837
(a) contain a heavy, thick form of petroleum that is released when heated, mixed with
838
other hydrocarbons, or otherwise treated;
839
(b) yield mixtures of liquid hydrocarbon; and
840
(c) require further processing other than mechanical blending before becoming finished
841
petroleum products.
842
(86) "Oil shale" means a group of fine black to dark brown shales containing kerogen
843
material that yields petroleum upon heating and distillation.
844
(87) "Optional computer software maintenance contract" means a computer software
845
maintenance contract that a customer is not obligated to purchase as a condition to the
846
retail sale of computer software.
- 25 - 1st Sub. (Green) S.B. 122 01-21 16:30
847
(88)(a) "Other fuels" means products that burn independently to produce heat or energy.
848
(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
849
personal property.
850
(89)(a) "Paging service" means a telecommunications service that provides transmission
851
of a coded radio signal for the purpose of activating a specific pager.
852
(b) For purposes of Subsection (89)(a), the transmission of a coded radio signal includes
853
a transmission by message or sound.
854
(90) "Pawn transaction" means the same as that term is defined in Section 13-32a-102.
855
(91) "Pawnbroker" means the same as that term is defined in Section 13-32a-102.
856
(92)(a) "Permanently attached to real property" means that for tangible personal property
857
attached to real property:
858
(i) the attachment of the tangible personal property to the real property:
859
(A) is essential to the use of the tangible personal property; and
860
(B) suggests that the tangible personal property will remain attached to the real
861
property in the same place over the useful life of the tangible personal
862
property; or
863
(ii) if the tangible personal property is detached from the real property, the
864
detachment would:
865
(A) cause substantial damage to the tangible personal property; or
866
(B) require substantial alteration or repair of the real property to which the
867
tangible personal property is attached.
868
(b) "Permanently attached to real property" includes:
869
(i) the attachment of an accessory to the tangible personal property if the accessory is:
870
(A) essential to the operation of the tangible personal property; and
871
(B) attached only to facilitate the operation of the tangible personal property;
872
(ii) a temporary detachment of tangible personal property from real property for a
873
repair or renovation if the repair or renovation is performed where the tangible
874
personal property and real property are located; or
875
(iii) property attached to oil, gas, or water pipelines, except for the property listed in
876
Subsection (92)(c)(iii) or (iv).
877
(c) "Permanently attached to real property" does not include:
878
(i) the attachment of portable or movable tangible personal property to real property
879
if that portable or movable tangible personal property is attached to real property
880
only for:
- 26 - 01-21 16:30 1st Sub. (Green) S.B. 122
881
(A) convenience;
882
(B) stability; or
883
(C) for an obvious temporary purpose;
884
(ii) the detachment of tangible personal property from real property except for the
885
detachment described in Subsection (92)(b)(ii);
886
(iii) an attachment of the following tangible personal property to real property if the
887
attachment to real property is only through a line that supplies water, electricity,
888
gas, telecommunications, cable, or supplies a similar item as determined by the
889
commission by rule made in accordance with Title 63G, Chapter 3, Utah
890
Administrative Rulemaking Act:
891
(A) a computer;
892
(B) a telephone;
893
(C) a television; or
894
(D) tangible personal property similar to Subsections (92)(c)(iii)(A) through (C)
895
as determined by the commission by rule made in accordance with Title 63G,
896
Chapter 3, Utah Administrative Rulemaking Act; or
897
(iv) an item listed in Subsection (137)(c).
898
(93) "Person" includes any individual, firm, partnership, joint venture, association,
899
corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
900
municipality, district, or other local governmental entity of the state, or any group or
901
combination acting as a unit.
902
(94) "Place of primary use":
903
(a) for telecommunications service other than mobile telecommunications service,
904
means the street address representative of where the customer's use of the
905
telecommunications service primarily occurs, which shall be:
906
(i) the residential street address of the customer; or
907
(ii) the primary business street address of the customer; or
908
(b) for mobile telecommunications service, means the same as that term is defined in the
909
Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
910
(95)(a) "Postpaid calling service" means a telecommunications service a person obtains
911
by making a payment on a call-by-call basis:
912
(i) through the use of a:
913
(A) bank card;
914
(B) credit card;
- 27 - 1st Sub. (Green) S.B. 122 01-21 16:30
915
(C) debit card; or
916
(D) travel card; or
917
(ii) by a charge made to a telephone number that is not associated with the origination
918
or termination of the telecommunications service.
919
(b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
920
service, that would be a prepaid wireless calling service if the service were
921
exclusively a telecommunications service.
922
(96) "Postproduction" means an activity related to the finishing or duplication of a medium
923
described in Subsection 59-12-104(54)(a).
924
(97) "Prepaid calling service" means a telecommunications service:
925
(a) that allows a purchaser access to telecommunications service that is exclusively
926
telecommunications service;
927
(b) that:
928
(i) is paid for in advance; and
929
(ii) enables the origination of a call using an:
930
(A) access number; or
931
(B) authorization code;
932
(c) that is dialed:
933
(i) manually; or
934
(ii) electronically; and
935
(d) sold in predetermined units or dollars that decline:
936
(i) by a known amount; and
937
(ii) with use.
938
(98) "Prepaid wireless calling service" means a telecommunications service:
939
(a) that provides the right to utilize:
940
(i) mobile wireless service; and
941
(ii) other service that is not a telecommunications service, including:
942
(A) the download of a product transferred electronically;
943
(B) a content service; or
944
(C) an ancillary service;
945
(b) that:
946
(i) is paid for in advance; and
947
(ii) enables the origination of a call using an:
948
(A) access number; or
- 28 - 01-21 16:30 1st Sub. (Green) S.B. 122
949
(B) authorization code;
950
(c) that is dialed:
951
(i) manually; or
952
(ii) electronically; and
953
(d) sold in predetermined units or dollars that decline:
954
(i) by a known amount; and
955
(ii) with use.
956
(99)(a) "Prepared food" means:
957
(i) food:
958
(A) sold in a heated state; or
959
(B) heated by a seller;
960
(ii) two or more food ingredients mixed or combined by the seller for sale as a single
961
item; or
962
(iii) except as provided in Subsection (99)(c), food sold with an eating utensil
963
provided by the seller, including a:
964
(A) plate;
965
(B) knife;
966
(C) fork;
967
(D) spoon;
968
(E) glass;
969
(F) cup;
970
(G) napkin; or
971
(H) straw.
972
(b) "Prepared food" does not include:
973
(i) food that a seller only:
974
(A) cuts;
975
(B) repackages; or
976
(C) pasteurizes;
977
(ii)(A) the following:
978
(I) raw egg;
979
(II) raw fish;
980
(III) raw meat;
981
(IV) raw poultry; or
982
(V) a food containing an item described in Subsections (99)(b)(ii)(A)(I)
- 29 - 1st Sub. (Green) S.B. 122 01-21 16:30
983
through (IV); and
984
(B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of
985
the Food and Drug Administration's Food Code that a consumer cook the items
986
described in Subsection (99)(b)(ii)(A) to prevent food borne illness; or
987
(iii) the following if sold without eating utensils provided by the seller:
988
(A) food and food ingredients sold by a seller if the seller's proper primary
989
classification under the 2002 North American Industry Classification System
990
of the federal Executive Office of the President, Office of Management and
991
Budget, is manufacturing in Sector 311, Food Manufacturing, except for
992
Subsector 3118, Bakeries and Tortilla Manufacturing;
993
(B) food and food ingredients sold in an unheated state:
994
(I) by weight or volume; and
995
(II) as a single item; or
996
(C) a bakery item, including:
997
(I) a bagel;
998
(II) a bar;
999
(III) a biscuit;
1000
(IV) bread;
1001
(V) a bun;
1002
(VI) a cake;
1003
(VII) a cookie;
1004
(VIII) a croissant;
1005
(IX) a danish;
1006
(X) a donut;
1007
(XI) a muffin;
1008
(XII) a pastry;
1009
(XIII) a pie;
1010
(XIV) a roll;
1011
(XV) a tart;
1012
(XVI) a torte; or
1013
(XVII) a tortilla.
1014
(c) An eating utensil provided by the seller does not include the following used to
1015
transport the food:
1016
(i) a container; or
- 30 - 01-21 16:30 1st Sub. (Green) S.B. 122
1017
(ii) packaging.
1018
(100) "Prescription" means an order, formula, or recipe that is issued:
1019
(a)(i) orally;
1020
(ii) in writing;
1021
(iii) electronically; or
1022
(iv) by any other manner of transmission; and
1023
(b) by a licensed practitioner authorized by the laws of a state.
1024
(101)(a) "Prewritten computer software" means computer software that is not designed
1025
and developed:
1026
(i) by the author or other creator of the computer software; and
1027
(ii) to the specifications of a specific purchaser.
1028
(b) "Prewritten computer software" includes:
1029
(i) a prewritten upgrade to computer software if the prewritten upgrade to the
1030
computer software is not designed and developed:
1031
(A) by the author or other creator of the computer software; and
1032
(B) to the specifications of a specific purchaser;
1033
(ii) computer software designed and developed by the author or other creator of the
1034
computer software to the specifications of a specific purchaser if the computer
1035
software is sold to a person other than the purchaser; or
1036
(iii) except as provided in Subsection (101)(c), prewritten computer software or a
1037
prewritten portion of prewritten computer software:
1038
(A) that is modified or enhanced to any degree; and
1039
(B) if the modification or enhancement described in Subsection (101)(b)(iii)(A) is
1040
designed and developed to the specifications of a specific purchaser.
1041
(c) "Prewritten computer software" does not include a modification or enhancement
1042
described in Subsection (101)(b)(iii) if the charges for the modification or
1043
enhancement are:
1044
(i) reasonable; and
1045
(ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), separately stated on the
1046
invoice or other statement of price provided to the purchaser at the time of sale or
1047
later, as demonstrated by:
1048
(A) the books and records the seller keeps at the time of the transaction in the
1049
regular course of business, including books and records the seller keeps at the
1050
time of the transaction in the regular course of business for nontax purposes;
- 31 - 1st Sub. (Green) S.B. 122 01-21 16:30
1051
(B) a preponderance of the facts and circumstances at the time of the transaction;
1052
and
1053
(C) the understanding of all of the parties to the transaction.
1054
(102)(a) "Private communications service" means a telecommunications service:
1055
(i) that entitles a customer to exclusive or priority use of one or more
1056
communications channels between or among termination points; and
1057
(ii) regardless of the manner in which the one or more communications channels are
1058
connected.
1059
(b) "Private communications service" includes the following provided in connection
1060
with the use of one or more communications channels:
1061
(i) an extension line;
1062
(ii) a station;
1063
(iii) switching capacity; or
1064
(iv) another associated service that is provided in connection with the use of one or
1065
more communications channels as defined in Section 59-12-215.
1066
(103)(a) "Product transferred electronically" means a product transferred electronically
1067
that would be subject to a tax under this chapter if that product was transferred in a
1068
manner other than electronically.
1069
(b) "Product transferred electronically" does not include:
1070
(i) an ancillary service;
1071
(ii) computer software; or
1072
(iii) a telecommunications service.
1073
(104)(a) "Prosthetic device" means a device that is worn on or in the body to:
1074
(i) artificially replace a missing portion of the body;
1075
(ii) prevent or correct a physical deformity or physical malfunction; or
1076
(iii) support a weak or deformed portion of the body.
1077
(b) "Prosthetic device" includes:
1078
(i) parts used in the repairs or renovation of a prosthetic device;
1079
(ii) replacement parts for a prosthetic device;
1080
(iii) a dental prosthesis; or
1081
(iv) a hearing aid.
1082
(c) "Prosthetic device" does not include:
1083
(i) corrective eyeglasses; or
1084
(ii) contact lenses.
- 32 - 01-21 16:30 1st Sub. (Green) S.B. 122
1085
(105)(a) "Protective equipment" means an item:
1086
(i) for human wear; and
1087
(ii) that is:
1088
(A) designed as protection:
1089
(I) to the wearer against injury or disease; or
1090
(II) against damage or injury of other persons or property; and
1091
(B) not suitable for general use.
1092
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1093
commission shall make rules:
1094
(i) listing the items that constitute "protective equipment"; and
1095
(ii) that are consistent with the list of items that constitute "protective equipment"
1096
under the agreement.
1097
(106)(a) For purposes of Subsection 59-12-104(41), "publication" means any written or
1098
printed matter, other than a photocopy:
1099
(i) regardless of:
1100
(A) characteristics;
1101
(B) copyright;
1102
(C) form;
1103
(D) format;
1104
(E) method of reproduction; or
1105
(F) source; and
1106
(ii) made available in printed or electronic format.
1107
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1108
commission may by rule define the term "photocopy."
1109
(107)(a) "Purchase price" and "sales price" mean the total amount of consideration:
1110
(i) valued in money; and
1111
(ii) for which tangible personal property, a product transferred electronically, or
1112
services are:
1113
(A) sold;
1114
(B) leased; or
1115
(C) rented.
1116
(b) "Purchase price" and "sales price" include:
1117
(i) the seller's cost of the tangible personal property, a product transferred
1118
electronically, or services sold;
- 33 - 1st Sub. (Green) S.B. 122 01-21 16:30
1119
(ii) expenses of the seller, including:
1120
(A) the cost of materials used;
1121
(B) a labor cost;
1122
(C) a service cost;
1123
(D) interest;
1124
(E) a loss;
1125
(F) the cost of transportation to the seller; or
1126
(G) a tax imposed on the seller;
1127
(iii) a charge by the seller for any service necessary to complete the sale; or
1128
(iv) consideration a seller receives from a person other than the purchaser if:
1129
(A)(I) the seller actually receives consideration from a person other than the
1130
purchaser; and
1131
(II) the consideration described in Subsection (107)(b)(iv)(A)(I) is directly
1132
related to a price reduction or discount on the sale;
1133
(B) the seller has an obligation to pass the price reduction or discount through to
1134
the purchaser;
1135
(C) the amount of the consideration attributable to the sale is fixed and
1136
determinable by the seller at the time of the sale to the purchaser; and
1137
(D)(I)(Aa) the purchaser presents a certificate, coupon, or other
1138
documentation to the seller to claim a price reduction or discount; and
1139
(Bb) a person other than the seller authorizes, distributes, or grants the
1140
certificate, coupon, or other documentation with the understanding that
1141
the person other than the seller will reimburse any seller to whom the
1142
certificate, coupon, or other documentation is presented;
1143
(II) the purchaser identifies that purchaser to the seller as a member of a group
1144
or organization allowed a price reduction or discount, except that a
1145
preferred customer card that is available to any patron of a seller does not
1146
constitute membership in a group or organization allowed a price reduction
1147
or discount; or
1148
(III) the price reduction or discount is identified as a third party price reduction
1149
or discount on the:
1150
(Aa) invoice the purchaser receives; or
1151
(Bb) certificate, coupon, or other documentation the purchaser presents.
1152
(c) "Purchase price" and "sales price" do not include:
- 34 - 01-21 16:30 1st Sub. (Green) S.B. 122
1153
(i) a discount:
1154
(A) in a form including:
1155
(I) cash;
1156
(II) term; or
1157
(III) coupon;
1158
(B) that is allowed by a seller;
1159
(C) taken by a purchaser on a sale; and
1160
(D) that is not reimbursed by a third party; or
1161
(ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), the following if
1162
separately stated on an invoice, bill of sale, or similar document provided to the
1163
purchaser at the time of sale or later, as demonstrated by the books and records the
1164
seller keeps at the time of the transaction in the regular course of business,
1165
including books and records the seller keeps at the time of the transaction in the
1166
regular course of business for nontax purposes, by a preponderance of the facts
1167
and circumstances at the time of the transaction, and by the understanding of all of
1168
the parties to the transaction:
1169
(A) the following from credit extended on the sale of tangible personal property or
1170
services:
1171
(I) a carrying charge;
1172
(II) a financing charge; or
1173
(III) an interest charge;
1174
(B) a delivery charge;
1175
(C) an installation charge;
1176
(D) a manufacturer rebate on a motor vehicle; or
1177
(E) a tax or fee legally imposed directly on the consumer.
1178
(108) "Purchaser" means a person to whom:
1179
(a) a sale of tangible personal property is made;
1180
(b) a product is transferred electronically; or
1181
(c) a service is furnished.
1182
(109) "Qualifying data center" means a data center facility that:
1183
(a) houses a group of networked server computers in one physical location in order to
1184
disseminate, manage, and store data and information;
1185
(b) is located in the state;
1186
(c) is a new operation constructed on or after July 1, 2016;
- 35 - 1st Sub. (Green) S.B. 122 01-21 16:30
1187
(d) consists of one or more buildings that total 150,000 or more square feet;
1188
(e) is owned or leased by:
1189
(i) the operator of the data center facility; or
1190
(ii) a person under common ownership, as defined in Section 59-7-101, of the
1191
operator of the data center facility; and
1192
(f) is located on one or more parcels of land that are owned or leased by:
1193
(i) the operator of the data center facility; or
1194
(ii) a person under common ownership, as defined in Section 59-7-101, of the
1195
operator of the data center facility.
1196
(110) "Regularly rented" means:
1197
(a) rented to a guest for value three or more times during a calendar year; or
1198
(b) advertised or held out to the public as a place that is regularly rented to guests for
1199
value.
1200
(111) "Rental" means the same as that term is defined in Subsection (63).
1201
(112)(a) "Repairs or renovations of tangible personal property" means:
1202
(i) a repair or renovation of tangible personal property that is not permanently
1203
attached to real property; or
1204
(ii) attaching tangible personal property or a product transferred electronically to
1205
other tangible personal property or detaching tangible personal property or a
1206
product transferred electronically from other tangible personal property if:
1207
(A) the other tangible personal property to which the tangible personal property or
1208
product transferred electronically is attached or from which the tangible
1209
personal property or product transferred electronically is detached is not
1210
permanently attached to real property; and
1211
(B) the attachment of tangible personal property or a product transferred
1212
electronically to other tangible personal property or detachment of tangible
1213
personal property or a product transferred electronically from other tangible
1214
personal property is made in conjunction with a repair or replacement of
1215
tangible personal property or a product transferred electronically.
1216
(b) "Repairs or renovations of tangible personal property" does not include:
1217
(i) attaching prewritten computer software to other tangible personal property if the
1218
other tangible personal property to which the prewritten computer software is
1219
attached is not permanently attached to real property; or
1220
(ii) detaching prewritten computer software from other tangible personal property if
- 36 - 01-21 16:30 1st Sub. (Green) S.B. 122
1221
the other tangible personal property from which the prewritten computer software
1222
is detached is not permanently attached to real property.
1223
(113) "Research and development" means the process of inquiry or experimentation aimed
1224
at the discovery of facts, devices, technologies, or applications and the process of
1225
preparing those devices, technologies, or applications for marketing.
1226
(114)(a) "Residential telecommunications services" means a telecommunications service
1227
or an ancillary service that is provided to an individual for personal use:
1228
(i) at a residential address; or
1229
(ii) at an institution, including a nursing home or a school, if the telecommunications
1230
service or ancillary service is provided to and paid for by the individual residing at
1231
the institution rather than the institution.
1232
(b) For purposes of Subsection (114)(a)(i), a residential address includes an:
1233
(i) apartment; or
1234
(ii) other individual dwelling unit.
1235
(115) "Residential use" means the use in or around a home, apartment building, sleeping
1236
quarters, and similar facilities or accommodations.
1237
(116) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other than:
1238
(a) resale;
1239
(b) sublease; or
1240
(c) subrent.
1241
(117)(a) "Retailer" means any person, unless prohibited by the Constitution of the
1242
United States or federal law, that is engaged in a regularly organized business in
1243
tangible personal property or any other taxable transaction under Subsection
1244
59-12-103(1), and who is selling to the user or consumer and not for resale.
1245
(b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1246
engaged in the business of selling to users or consumers within the state.
1247
(118)(a) "Sale" means any transfer of title, exchange, or barter, conditional or otherwise,
1248
in any manner, of tangible personal property or any other taxable transaction under
1249
Subsection 59-12-103(1), for consideration.
1250
(b) "Sale" includes:
1251
(i) installment and credit sales;
1252
(ii) any closed transaction constituting a sale;
1253
(iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1254
chapter;
- 37 - 1st Sub. (Green) S.B. 122 01-21 16:30
1255
(iv) any transaction if the possession of property is transferred but the seller retains
1256
the title as security for the payment of the price; and
1257
(v) any transaction under which right to possession, operation, or use of any article of
1258
tangible personal property is granted under a lease or contract and the transfer of
1259
possession would be taxable if an outright sale were made.
1260
(119) "Sale at retail" means the same as that term is defined in Subsection (116).
1261
(120) "Sale-leaseback transaction" means a transaction by which title to tangible personal
1262
property or a product transferred electronically that is subject to a tax under this chapter
1263
is transferred:
1264
(a) by a purchaser-lessee;
1265
(b) to a lessor;
1266
(c) for consideration; and
1267
(d) if:
1268
(i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial
1269
purchase of the tangible personal property or product transferred electronically;
1270
(ii) the sale of the tangible personal property or product transferred electronically to
1271
the lessor is intended as a form of financing:
1272
(A) for the tangible personal property or product transferred electronically; and
1273
(B) to the purchaser-lessee; and
1274
(iii) in accordance with generally accepted accounting principles, the
1275
purchaser-lessee is required to:
1276
(A) capitalize the tangible personal property or product transferred electronically
1277
for financial reporting purposes; and
1278
(B) account for the lease payments as payments made under a financing
1279
arrangement.
1280
(121) "Sales price" means the same as that term is defined in Subsection (107).
1281
(122)(a) "Sales relating to schools" means the following sales by, amounts paid to, or
1282
amounts charged by a school:
1283
(i) sales that are directly related to the school's educational functions or activities
1284
including:
1285
(A) the sale of:
1286
(I) textbooks;
1287
(II) textbook fees;
1288
(III) laboratory fees;
- 38 - 01-21 16:30 1st Sub. (Green) S.B. 122
1289
(IV) laboratory supplies; or
1290
(V) safety equipment;
1291
(B) the sale of a uniform, protective equipment, or sports or recreational
1292
equipment that:
1293
(I) a student is specifically required to wear as a condition of participation in a
1294
school-related event or school-related activity; and
1295
(II) is not readily adaptable to general or continued usage to the extent that it
1296
takes the place of ordinary clothing;
1297
(C) sales of the following if the net or gross revenue generated by the sales is
1298
deposited into a school district fund or school fund dedicated to school meals:
1299
(I) food and food ingredients; or
1300
(II) prepared food; or
1301
(D) transportation charges for official school activities; or
1302
(ii) amounts paid to or amounts charged by a school for admission to a school-related
1303
event or school-related activity.
1304
(b) "Sales relating to schools" does not include:
1305
(i) bookstore sales of items that are not educational materials or supplies;
1306
(ii) except as provided in Subsection (122)(a)(i)(B):
1307
(A) clothing;
1308
(B) clothing accessories or equipment;
1309
(C) protective equipment; or
1310
(D) sports or recreational equipment; or
1311
(iii) amounts paid to or amounts charged by a school for admission to a
1312
school-related event or school-related activity if the amounts paid or charged are
1313
passed through to a person:
1314
(A) other than a:
1315
(I) school;
1316
(II) nonprofit organization authorized by a school board or a governing body of
1317
a private school to organize and direct a competitive secondary school
1318
activity; or
1319
(III) nonprofit association authorized by a school board or a governing body of
1320
a private school to organize and direct a competitive secondary school
1321
activity; and
1322
(B) that is required to collect sales and use taxes under this chapter.
- 39 - 1st Sub. (Green) S.B. 122 01-21 16:30
1323
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1324
commission may make rules defining the term "passed through."
1325
(123) For purposes of this section and Section 59-12-104, "school" means:
1326
(a) an elementary school or a secondary school that:
1327
(i) is a:
1328
(A) public school; or
1329
(B) private school; and
1330
(ii) provides instruction for one or more grades kindergarten through 12; or
1331
(b) a public school district.
1332
(124)(a) "Seller" means a person that makes a sale, lease, or rental of:
1333
(i) tangible personal property;
1334
(ii) a product transferred electronically; or
1335
(iii) a service.
1336
(b) "Seller" includes a marketplace facilitator.
1337
(125)(a) "Semiconductor fabricating, processing, research, or development materials"
1338
means tangible personal property or a product transferred electronically if the
1339
tangible personal property or product transferred electronically is:
1340
(i) used primarily in the process of:
1341
(A)(I) manufacturing a semiconductor;
1342
(II) fabricating a semiconductor; or
1343
(III) research or development of a:
1344
(Aa) semiconductor; or
1345
(Bb) semiconductor manufacturing process; or
1346
(B) maintaining an environment suitable for a semiconductor; or
1347
(ii) consumed primarily in the process of:
1348
(A)(I) manufacturing a semiconductor;
1349
(II) fabricating a semiconductor; or
1350
(III) research or development of a:
1351
(Aa) semiconductor; or
1352
(Bb) semiconductor manufacturing process; or
1353
(B) maintaining an environment suitable for a semiconductor.
1354
(b) "Semiconductor fabricating, processing, research, or development materials"
1355
includes:
1356
(i) parts used in the repairs or renovations of tangible personal property or a product
- 40 - 01-21 16:30 1st Sub. (Green) S.B. 122
1357
transferred electronically described in Subsection (125)(a); or
1358
(ii) a chemical, catalyst, or other material used to:
1359
(A) produce or induce in a semiconductor a:
1360
(I) chemical change; or
1361
(II) physical change;
1362
(B) remove impurities from a semiconductor; or
1363
(C) improve the marketable condition of a semiconductor.
1364
(126) "Senior citizen center" means a facility having the primary purpose of providing
1365
services to the aged as defined in Section 26B-6-101.
1366
(127) "Shared vehicle" means the same as that term is defined in Section 13-48a-101.
1367
(128) "Shared vehicle driver" means the same as that term is defined in Section 13-48a-101.
1368
(129) "Shared vehicle owner" means the same as that term is defined in Section 13-48a-101.
1369
(130)(a) Subject to Subsections (130)(b) and (c), "short-term lodging consumable"
1370
means tangible personal property that:
1371
(i) a business that provides accommodations and services described in Subsection
1372
59-12-103(1)(i) purchases as part of a transaction to provide the accommodations
1373
and services to a purchaser;
1374
(ii) is intended to be consumed by the purchaser; and
1375
(iii) is:
1376
(A) included in the purchase price of the accommodations and services; and
1377
(B) not separately stated on an invoice, bill of sale, or other similar document
1378
provided to the purchaser.
1379
(b) "Short-term lodging consumable" includes:
1380
(i) a beverage;
1381
(ii) a brush or comb;
1382
(iii) a cosmetic;
1383
(iv) a hair care product;
1384
(v) lotion;
1385
(vi) a magazine;
1386
(vii) makeup;
1387
(viii) a meal;
1388
(ix) mouthwash;
1389
(x) nail polish remover;
1390
(xi) a newspaper;
- 41 - 1st Sub. (Green) S.B. 122 01-21 16:30
1391
(xii) a notepad;
1392
(xiii) a pen;
1393
(xiv) a pencil;
1394
(xv) a razor;
1395
(xvi) saline solution;
1396
(xvii) a sewing kit;
1397
(xviii) shaving cream;
1398
(xix) a shoe shine kit;
1399
(xx) a shower cap;
1400
(xxi) a snack item;
1401
(xxii) soap;
1402
(xxiii) toilet paper;
1403
(xxiv) a toothbrush;
1404
(xxv) toothpaste; or
1405
(xxvi) an item similar to Subsections (130)(b)(i) through (xxv) as the commission
1406
may provide by rule made in accordance with Title 63G, Chapter 3, Utah
1407
Administrative Rulemaking Act.
1408
(c) "Short-term lodging consumable" does not include:
1409
(i) tangible personal property that is cleaned or washed to allow the tangible personal
1410
property to be reused; or
1411
(ii) a product transferred electronically.
1412
(131)(a) "Short-term rental" means a lease or rental for less than 30 consecutive days.
1413
(b) "Short-term rental" does not include car sharing.
1414
(132) "Simplified electronic return" means the electronic return:
1415
(a) described in Section 318(C) of the agreement; and
1416
(b) approved by the governing board of the agreement.
1417
(133) "Solar energy" means the sun used as the sole source of energy for producing
1418
electricity.
1419
(134)(a) "Sports or recreational equipment" means an item:
1420
(i) designed for human use; and
1421
(ii) that is:
1422
(A) worn in conjunction with:
1423
(I) an athletic activity; or
1424
(II) a recreational activity; and
- 42 - 01-21 16:30 1st Sub. (Green) S.B. 122
1425
(B) not suitable for general use.
1426
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1427
commission shall make rules:
1428
(i) listing the items that constitute "sports or recreational equipment"; and
1429
(ii) that are consistent with the list of items that constitute "sports or recreational
1430
equipment" under the agreement.
1431
(135) "State" means the state of Utah, its departments, and agencies.
1432
(136) "Storage" means any keeping or retention of tangible personal property or any other
1433
taxable transaction under Subsection 59-12-103(1), in this state for any purpose except
1434
sale in the regular course of business.
1435
(137)(a) "Tangible personal property" means personal property that:
1436
(i) may be:
1437
(A) seen;
1438
(B) weighed;
1439
(C) measured;
1440
(D) felt; or
1441
(E) touched; or
1442
(ii) is in any manner perceptible to the senses.
1443
(b) "Tangible personal property" includes:
1444
(i) electricity;
1445
(ii) water;
1446
(iii) gas;
1447
(iv) steam; or
1448
(v) prewritten computer software, regardless of the manner in which the prewritten
1449
computer software is transferred.
1450
(c) "Tangible personal property" includes the following regardless of whether the item is
1451
attached to real property:
1452
(i) a dishwasher;
1453
(ii) a dryer;
1454
(iii) a freezer;
1455
(iv) a microwave;
1456
(v) a refrigerator;
1457
(vi) a stove;
1458
(vii) a washer; or
- 43 - 1st Sub. (Green) S.B. 122 01-21 16:30
1459
(viii) an item similar to Subsections (137)(c)(i) through (vii) as determined by the
1460
commission by rule made in accordance with Title 63G, Chapter 3, Utah
1461
Administrative Rulemaking Act.
1462
(d) "Tangible personal property" does not include a product that is transferred
1463
electronically.
1464
(e) "Tangible personal property" does not include the following if attached to real
1465
property, regardless of whether the attachment to real property is only through a line
1466
that supplies water, electricity, gas, telephone, cable, or supplies a similar item as
1467
determined by the commission by rule made in accordance with Title 63G, Chapter 3,
1468
Utah Administrative Rulemaking Act:
1469
(i) a hot water heater;
1470
(ii) a water filtration system; or
1471
(iii) a water softener system.
1472
(138)(a) "Telecommunications enabling or facilitating equipment, machinery, or
1473
software" means an item listed in Subsection (138)(b) if that item is purchased or
1474
leased primarily to enable or facilitate one or more of the following to function:
1475
(i) telecommunications switching or routing equipment, machinery, or software; or
1476
(ii) telecommunications transmission equipment, machinery, or software.
1477
(b) The following apply to Subsection (138)(a):
1478
(i) a pole;
1479
(ii) software;
1480
(iii) a supplementary power supply;
1481
(iv) temperature or environmental equipment or machinery;
1482
(v) test equipment;
1483
(vi) a tower; or
1484
(vii) equipment, machinery, or software that functions similarly to an item listed in
1485
Subsections (138)(b)(i) through (vi) as determined by the commission by rule
1486
made in accordance with Subsection (138)(c).
1487
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1488
commission may by rule define what constitutes equipment, machinery, or software
1489
that functions similarly to an item listed in Subsections (138)(b)(i) through (vi).
1490
(139) "Telecommunications equipment, machinery, or software required for 911 service"
1491
means equipment, machinery, or software that is required to comply with 47 C.F.R. Sec.
1492
20.18.
- 44 - 01-21 16:30 1st Sub. (Green) S.B. 122
1493
(140) "Telecommunications maintenance or repair equipment, machinery, or software"
1494
means equipment, machinery, or software purchased or leased primarily to maintain or
1495
repair one or more of the following, regardless of whether the equipment, machinery, or
1496
software is purchased or leased as a spare part or as an upgrade or modification to one or
1497
more of the following:
1498
(a) telecommunications enabling or facilitating equipment, machinery, or software;
1499
(b) telecommunications switching or routing equipment, machinery, or software; or
1500
(c) telecommunications transmission equipment, machinery, or software.
1501
(141)(a) "Telecommunications service" means the electronic conveyance, routing, or
1502
transmission of audio, data, video, voice, or any other information or signal to a
1503
point, or among or between points.
1504
(b) "Telecommunications service" includes:
1505
(i) an electronic conveyance, routing, or transmission with respect to which a
1506
computer processing application is used to act:
1507
(A) on the code, form, or protocol of the content;
1508
(B) for the purpose of electronic conveyance, routing, or transmission; and
1509
(C) regardless of whether the service:
1510
(I) is referred to as voice over Internet protocol service; or
1511
(II) is classified by the Federal Communications Commission as enhanced or
1512
value added;
1513
(ii) an 800 service;
1514
(iii) a 900 service;
1515
(iv) a fixed wireless service;
1516
(v) a mobile wireless service;
1517
(vi) a postpaid calling service;
1518
(vii) a prepaid calling service;
1519
(viii) a prepaid wireless calling service; or
1520
(ix) a private communications service.
1521
(c) "Telecommunications service" does not include:
1522
(i) advertising, including directory advertising;
1523
(ii) an ancillary service;
1524
(iii) a billing and collection service provided to a third party;
1525
(iv) a data processing and information service if:
1526
(A) the data processing and information service allows data to be:
- 45 - 1st Sub. (Green) S.B. 122 01-21 16:30
1527
(I)(Aa) acquired;
1528
(Bb) generated;
1529
(Cc) processed;
1530
(Dd) retrieved; or
1531
(Ee) stored; and
1532
(II) delivered by an electronic transmission to a purchaser; and
1533
(B) the purchaser's primary purpose for the underlying transaction is the processed
1534
data or information;
1535
(v) installation or maintenance of the following on a customer's premises:
1536
(A) equipment; or
1537
(B) wiring;
1538
(vi) Internet access service;
1539
(vii) a paging service;
1540
(viii) a product transferred electronically, including:
1541
(A) music;
1542
(B) reading material;
1543
(C) a ring tone;
1544
(D) software; or
1545
(E) video;
1546
(ix) a radio and television audio and video programming service:
1547
(A) regardless of the medium; and
1548
(B) including:
1549
(I) furnishing conveyance, routing, or transmission of a television audio and
1550
video programming service by a programming service provider;
1551
(II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1552
(III) audio and video programming services delivered by a commercial mobile
1553
radio service provider as defined in 47 C.F.R. Sec. 20.3;
1554
(x) a value-added nonvoice data service; or
1555
(xi) tangible personal property.
1556
(142)(a) "Telecommunications service provider" means a person that:
1557
(i) owns, controls, operates, or manages a telecommunications service; and
1558
(ii) engages in an activity described in Subsection (142)(a)(i) for the shared use with
1559
or resale to any person of the telecommunications service.
1560
(b) A person described in Subsection (142)(a) is a telecommunications service provider
- 46 - 01-21 16:30 1st Sub. (Green) S.B. 122
1561
whether or not the Public Service Commission of Utah regulates:
1562
(i) that person; or
1563
(ii) the telecommunications service that the person owns, controls, operates, or
1564
manages.
1565
(143)(a) "Telecommunications switching or routing equipment, machinery, or software"
1566
means an item listed in Subsection (143)(b) if that item is purchased or leased
1567
primarily for switching or routing:
1568
(i) an ancillary service;
1569
(ii) data communications;
1570
(iii) voice communications; or
1571
(iv) telecommunications service.
1572
(b) The following apply to Subsection (143)(a):
1573
(i) a bridge;
1574
(ii) a computer;
1575
(iii) a cross connect;
1576
(iv) a modem;
1577
(v) a multiplexer;
1578
(vi) plug in circuitry;
1579
(vii) a router;
1580
(viii) software;
1581
(ix) a switch; or
1582
(x) equipment, machinery, or software that functions similarly to an item listed in
1583
Subsections (143)(b)(i) through (ix) as determined by the commission by rule
1584
made in accordance with Subsection (143)(c).
1585
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1586
commission may by rule define what constitutes equipment, machinery, or software
1587
that functions similarly to an item listed in Subsections (143)(b)(i) through (ix).
1588
(144)(a) "Telecommunications transmission equipment, machinery, or software" means
1589
an item listed in Subsection (144)(b) if that item is purchased or leased primarily for
1590
sending, receiving, or transporting:
1591
(i) an ancillary service;
1592
(ii) data communications;
1593
(iii) voice communications; or
1594
(iv) telecommunications service.
- 47 - 1st Sub. (Green) S.B. 122 01-21 16:30
1595
(b) The following apply to Subsection (144)(a):
1596
(i) an amplifier;
1597
(ii) a cable;
1598
(iii) a closure;
1599
(iv) a conduit;
1600
(v) a controller;
1601
(vi) a duplexer;
1602
(vii) a filter;
1603
(viii) an input device;
1604
(ix) an input/output device;
1605
(x) an insulator;
1606
(xi) microwave machinery or equipment;
1607
(xii) an oscillator;
1608
(xiii) an output device;
1609
(xiv) a pedestal;
1610
(xv) a power converter;
1611
(xvi) a power supply;
1612
(xvii) a radio channel;
1613
(xviii) a radio receiver;
1614
(xix) a radio transmitter;
1615
(xx) a repeater;
1616
(xxi) software;
1617
(xxii) a terminal;
1618
(xxiii) a timing unit;
1619
(xxiv) a transformer;
1620
(xxv) a wire; or
1621
(xxvi) equipment, machinery, or software that functions similarly to an item listed in
1622
Subsections (144)(b)(i) through (xxv) as determined by the commission by rule
1623
made in accordance with Subsection (144)(c).
1624
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1625
commission may by rule define what constitutes equipment, machinery, or software
1626
that functions similarly to an item listed in Subsections (144)(b)(i) through (xxv).
1627
(145)(a) "Textbook for a higher education course" means a textbook or other printed
1628
material that is required for a course:
- 48 - 01-21 16:30 1st Sub. (Green) S.B. 122
1629
(i) offered by an institution of higher education; and
1630
(ii) that the purchaser of the textbook or other printed material attends or will attend.
1631
(b) "Textbook for a higher education course" includes a textbook in electronic format.
1632
(146) "Tobacco" means:
1633
(a) a cigarette;
1634
(b) a cigar;
1635
(c) chewing tobacco;
1636
(d) pipe tobacco; or
1637
(e) any other item that contains tobacco.
1638
(147) "Unassisted amusement device" means an amusement device, skill device, or ride
1639
device that is started and stopped by the purchaser or renter of the right to use or operate
1640
the amusement device, skill device, or ride device.
1641
(148)(a) "Use" means the exercise of any right or power over tangible personal property,
1642
a product transferred electronically, or a service under Subsection 59-12-103(1),
1643
incident to the ownership or the leasing of that tangible personal property, product
1644
transferred electronically, or service.
1645
(b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1646
property, a product transferred electronically, or a service in the regular course of
1647
business and held for resale.
1648
(149) "Value-added nonvoice data service" means a service:
1649
(a) that otherwise meets the definition of a telecommunications service except that a
1650
computer processing application is used to act primarily for a purpose other than
1651
conveyance, routing, or transmission; and
1652
(b) with respect to which a computer processing application is used to act on data or
1653
information:
1654
(i) code;
1655
(ii) content;
1656
(iii) form; or
1657
(iv) protocol.
1658
(150)(a) Subject to Subsection (150)(b), "vehicle" means the following that are required
1659
to be titled, registered, or titled and registered:
1660
(i) an aircraft as defined in Section 72-10-102;
1661
(ii) a vehicle as defined in Section 41-1a-102;
1662
(iii) an off-highway vehicle as defined in Section 41-22-2; or
- 49 - 1st Sub. (Green) S.B. 122 01-21 16:30
1663
(iv) a vessel as defined in Section 41-1a-102.
1664
(b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
1665
(i) a vehicle described in Subsection (150)(a); or
1666
(ii)(A) a locomotive;
1667
(B) a freight car;
1668
(C) railroad work equipment; or
1669
(D) other railroad rolling stock.
1670
(151) "Vehicle dealer" means a person engaged in the business of buying, selling, or
1671
exchanging a vehicle as defined in Subsection (150).
1672
(152)(a) "Vertical service" means an ancillary service that:
1673
(i) is offered in connection with one or more telecommunications services; and
1674
(ii) offers an advanced calling feature that allows a customer to:
1675
(A) identify a caller; and
1676
(B) manage multiple calls and call connections.
1677
(b) "Vertical service" includes an ancillary service that allows a customer to manage a
1678
conference bridging service.
1679
(153)(a) "Voice mail service" means an ancillary service that enables a customer to
1680
receive, send, or store a recorded message.
1681
(b) "Voice mail service" does not include a vertical service that a customer is required to
1682
have in order to utilize a voice mail service.
1683
(154)(a) "Waste energy facility" means a facility that generates electricity:
1684
(i) using as the primary source of energy waste materials that would be placed in a
1685
landfill or refuse pit if it were not used to generate electricity, including:
1686
(A) tires;
1687
(B) waste coal;
1688
(C) oil shale; or
1689
(D) municipal solid waste; and
1690
(ii) in amounts greater than actually required for the operation of the facility.
1691
(b) "Waste energy facility" does not include a facility that incinerates:
1692
(i) hospital waste as defined in 40 C.F.R. 60.51c; or
1693
(ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1694
(155) "Watercraft" means a vessel as defined in Section 73-18-2.
1695
(156) "Wind energy" means wind used as the sole source of energy to produce electricity.
1696
(157) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
- 50 - 01-21 16:30 1st Sub. (Green) S.B. 122
1697
location by the United States Postal Service.
1698
Section 2. Section 59-12-103 is amended to read:
1699
59-12-103 . Sales and use tax base -- Rates -- Effective dates -- Use of sales and
1700
use tax revenue.
1701
(1) A tax is imposed on the purchaser as provided in this part on the purchase price or sales
1702
price for amounts paid or charged for the following transactions:
1703
(a) retail sales of tangible personal property made within the state;
1704
(b) amounts paid for:
1705
(i) telecommunications service, other than mobile telecommunications service, that
1706
originates and terminates within the boundaries of this state;
1707
(ii) mobile telecommunications service that originates and terminates within the
1708
boundaries of one state only to the extent permitted by the Mobile
1709
Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
1710
(iii) an ancillary service associated with a:
1711
(A) telecommunications service described in Subsection (1)(b)(i); or
1712
(B) mobile telecommunications service described in Subsection (1)(b)(ii);
1713
(c) sales of the following for commercial use:
1714
(i) gas;
1715
(ii) electricity;
1716
(iii) heat;
1717
(iv) coal;
1718
(v) fuel oil; or
1719
(vi) other fuels;
1720
(d) sales of the following for residential use:
1721
(i) gas;
1722
(ii) electricity;
1723
(iii) heat;
1724
(iv) coal;
1725
(v) fuel oil; or
1726
(vi) other fuels;
1727
(e) sales of prepared food;
1728
(f) except as provided in Section 59-12-104, amounts paid or charged as admission or
1729
user fees for theaters, movies, operas, museums, planetariums, shows of any type or
1730
nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses,
- 51 - 1st Sub. (Green) S.B. 122 01-21 16:30
1731
menageries, fairs, races, contests, sporting events, dances, boxing matches, wrestling
1732
matches, closed circuit television broadcasts, billiard parlors, pool parlors, bowling
1733
lanes, golf, miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts,
1734
ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides,
1735
river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or
1736
any other amusement, entertainment, recreation, exhibition, cultural, or athletic
1737
activity;
1738
(g) amounts paid or charged for services for repairs or renovations of tangible personal
1739
property, unless Section 59-12-104 provides for an exemption from sales and use tax
1740
for:
1741
(i) the tangible personal property; and
1742
(ii) parts used in the repairs or renovations of the tangible personal property described
1743
in Subsection (1)(g)(i), regardless of whether:
1744
(A) any parts are actually used in the repairs or renovations of that tangible
1745
personal property; or
1746
(B) the particular parts used in the repairs or renovations of that tangible personal
1747
property are exempt from a tax under this chapter;
1748
(h) except as provided in Subsection 59-12-104(7), amounts paid or charged for assisted
1749
cleaning or washing of tangible personal property;
1750
(i) amounts paid or charged for short-term rentals of tourist home, hotel, motel, or trailer
1751
court accommodations and services;
1752
(j) amounts paid or charged for laundry or dry cleaning services;
1753
(k) amounts paid or charged for leases or rentals of tangible personal property if within
1754
this state the tangible personal property is:
1755
(i) stored;
1756
(ii) used; or
1757
(iii) otherwise consumed;
1758
(l) amounts paid or charged for tangible personal property if within this state the tangible
1759
personal property is:
1760
(i) stored;
1761
(ii) used; or
1762
(iii) consumed;
1763
(m) amounts paid or charged for a sale:
1764
(i)(A) of a product transferred electronically; or
- 52 - 01-21 16:30 1st Sub. (Green) S.B. 122
1765
(B) of a repair or renovation of a product transferred electronically; and
1766
(ii) regardless of whether the sale provides:
1767
(A) a right of permanent use of the product; or
1768
(B) a right to use the product that is less than a permanent use, including a right:
1769
(I) for a definite or specified length of time; and
1770
(II) that terminates upon the occurrence of a condition; and
1771
(n) sales of leased tangible personal property from the lessor to the lessee made in the
1772
state.
1773
(2)(a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax are
1774
imposed on a transaction described in Subsection (1) equal to the sum of:
1775
(i) a state tax imposed on the transaction at a tax rate equal to the sum of:
1776
(A) [4.70%] 4.933% plus the rate specified in Subsection (11)(a); and
1777
(B)(I) the tax rate the state imposes in accordance with Part 18, Additional
1778
State Sales and Use Tax Act, if the location of the transaction as determined
1779
under Sections 59-12-211 through 59-12-215 is in a county in which the
1780
state imposes the tax under Part 18, Additional State Sales and Use Tax Act;
1781
and
1782
(II) the tax rate the state imposes in accordance with Part 20, Supplemental
1783
State Sales and Use Tax Act, if the location of the transaction as determined
1784
under Sections 59-12-211 through 59-12-215 is in a city, town, or the
1785
unincorporated area of a county in which the state imposes the tax under
1786
Part 20, Supplemental State Sales and Use Tax Act; and
1787
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1788
transaction under this chapter other than this part.
1789
(b) Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a state
1790
tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal
1791
to the sum of:
1792
(i) a state tax imposed on the transaction at a tax rate of 2%; and
1793
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1794
transaction under this chapter other than this part.
1795
(c)(i) Except as provided in Subsection (2)(e) or (f), a local tax is imposed on
1796
amounts paid or charged for food and food ingredients equal to the sum of the tax
1797
rates a county, city, or town imposes under this chapter on the amounts paid or
1798
charged for food or food ingredients.
- 53 - 1st Sub. (Green) S.B. 122 01-21 16:30
1799
(ii) There is no state tax imposed on amounts paid or charged for food and food
1800
ingredients.
1801
[(c) Except as provided in Subsection (2)(f) or (g), a state tax and a local tax are imposed
1802
on amounts paid or charged for food and food ingredients equal to the sum of:]
1803
[(i) a state tax imposed on the amounts paid or charged for food and food ingredients
1804
at a tax rate of 1.75%; and]
1805
[(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on
1806
the amounts paid or charged for food and food ingredients under this chapter other
1807
than this part.]
1808
(d) Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts paid
1809
or charged for fuel to a common carrier that is a railroad for use in a locomotive
1810
engine at a rate of 4.85%.
1811
(e)(i)(A) If a shared vehicle owner certifies to the commission, on a form
1812
prescribed by the commission, that the shared vehicle is an individual-owned
1813
shared vehicle, a tax imposed under Subsection (2)(a)(i)(A) does not apply to
1814
car sharing, a car-sharing program, a shared vehicle driver, or a shared vehicle
1815
owner.
1816
(B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is
1817
required once during the time that the shared vehicle owner owns the shared
1818
vehicle.
1819
(C) The commission shall verify that a shared vehicle is an individual-owned
1820
shared vehicle by verifying that the applicable Utah taxes imposed under this
1821
chapter were paid on the purchase of the shared vehicle.
1822
(D) The exception under Subsection (2)(e)(i)(A) applies to a certified
1823
individual-owned shared vehicle shared through a car-sharing program even if
1824
non-certified shared vehicles are also available to be shared through the same
1825
car-sharing program.
1826
(ii) A tax imposed under Subsection (2)(a)(i)(B) or (2)(a)(ii) applies to car sharing.
1827
(iii)(A) A car-sharing program may rely in good faith on a shared vehicle owner's
1828
representation that the shared vehicle is an individual-owned shared vehicle
1829
certified with the commission as described in Subsection (2)(e)(i).
1830
(B) If a car-sharing program relies in good faith on a shared vehicle owner's
1831
representation that the shared vehicle is an individual-owned shared vehicle
1832
certified with the commission as described in Subsection (2)(e)(i), the
- 54 - 01-21 16:30 1st Sub. (Green) S.B. 122
1833
car-sharing program is not liable for any tax, penalty, fee, or other sanction
1834
imposed on the shared vehicle owner.
1835
(iv) If all shared vehicles shared through a car-sharing program are certified as
1836
described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has
1837
no obligation to collect and remit the tax under Subsection (2)(a)(i)(A) for that tax
1838
period.
1839
(v) A car-sharing program is not required to list or otherwise identify an
1840
individual-owned shared vehicle on a return or an attachment to a return.
1841
(vi) A car-sharing program shall:
1842
(A) retain tax information for each car-sharing program transaction; and
1843
(B) provide the information described in Subsection (2)(e)(vi)(A) to the
1844
commission at the commission's request.
1845
(f)(i) For a bundled transaction that is attributable to food and food ingredients and
1846
tangible personal property other than food and food ingredients, a state tax and a
1847
local tax is imposed on the entire bundled transaction equal to the sum of:
1848
(A) a state tax imposed on the entire bundled transaction equal to the sum of:
1849
(I) the tax rate described in Subsection (2)(a)(i)(A); and
1850
(II)(Aa) the tax rate the state imposes in accordance with Part 18,
1851
Additional State Sales and Use Tax Act, if the location of the transaction
1852
as determined under Sections 59-12-211 through 59-12-215 is in a
1853
county in which the state imposes the tax under Part 18, Additional State
1854
Sales and Use Tax Act; and
1855
(Bb) the tax rate the state imposes in accordance with Part 20, Supplemental
1856
State Sales and Use Tax Act, if the location of the transaction as
1857
determined under Sections 59-12-211 through 59-12-215 is in a city,
1858
town, or the unincorporated area of a county in which the state imposes
1859
the tax under Part 20, Supplemental State Sales and Use Tax Act; and
1860
(B) a local tax imposed on the entire bundled transaction at the sum of the tax
1861
rates described in Subsection (2)(a)(ii).
1862
(ii) If an optional computer software maintenance contract is a bundled transaction
1863
that consists of taxable and nontaxable products that are not separately itemized
1864
on an invoice or similar billing document, the purchase of the optional computer
1865
software maintenance contract is 40% taxable under this chapter and 60%
1866
nontaxable under this chapter.
- 55 - 1st Sub. (Green) S.B. 122 01-21 16:30
1867
(iii) Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled
1868
transaction described in Subsection (2)(f)(i) or (ii):
1869
(A) if the sales price of the bundled transaction is attributable to tangible personal
1870
property, a product, or a service that is subject to taxation under this chapter
1871
and tangible personal property, a product, or service that is not subject to
1872
taxation under this chapter, the entire bundled transaction is subject to taxation
1873
under this chapter unless:
1874
(I) the seller is able to identify by reasonable and verifiable standards the
1875
tangible personal property, product, or service that is not subject to taxation
1876
under this chapter from the books and records the seller keeps in the seller's
1877
regular course of business; or
1878
(II) state or federal law provides otherwise; or
1879
(B) if the sales price of a bundled transaction is attributable to two or more items
1880
of tangible personal property, products, or services that are subject to taxation
1881
under this chapter at different rates, the entire bundled transaction is subject to
1882
taxation under this chapter at the higher tax rate unless:
1883
(I) the seller is able to identify by reasonable and verifiable standards the
1884
tangible personal property, product, or service that is subject to taxation
1885
under this chapter at the lower tax rate from the books and records the seller
1886
keeps in the seller's regular course of business; or
1887
(II) state or federal law provides otherwise.
1888
(iv) For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the
1889
seller's regular course of business includes books and records the seller keeps in
1890
the regular course of business for nontax purposes.
1891
(g)(i) Except as otherwise provided in this chapter and subject to Subsections
1892
(2)(g)(ii) and (iii), if a transaction consists of the sale, lease, or rental of tangible
1893
personal property, a product, or a service that is subject to taxation under this
1894
chapter, and the sale, lease, or rental of tangible personal property, other property,
1895
a product, or a service that is not subject to taxation under this chapter, the entire
1896
transaction is subject to taxation under this chapter unless the seller, at the time of
1897
the transaction:
1898
(A) separately states the portion of the transaction that is not subject to taxation
1899
under this chapter on an invoice, bill of sale, or similar document provided to
1900
the purchaser; or
- 56 - 01-21 16:30 1st Sub. (Green) S.B. 122
1901
(B) is able to identify by reasonable and verifiable standards, from the books and
1902
records the seller keeps in the seller's regular course of business, the portion of
1903
the transaction that is not subject to taxation under this chapter.
1904
(ii) A purchaser and a seller may correct the taxability of a transaction if:
1905
(A) after the transaction occurs, the purchaser and the seller discover that the
1906
portion of the transaction that is not subject to taxation under this chapter was
1907
not separately stated on an invoice, bill of sale, or similar document provided
1908
to the purchaser because of an error or ignorance of the law; and
1909
(B) the seller is able to identify by reasonable and verifiable standards, from the
1910
books and records the seller keeps in the seller's regular course of business, the
1911
portion of the transaction that is not subject to taxation under this chapter.
1912
(iii) For purposes of Subsections (2)(g)(i) and (ii), books and records that a seller
1913
keeps in the seller's regular course of business includes books and records the
1914
seller keeps in the regular course of business for nontax purposes.
1915
(h)(i) If the sales price of a transaction is attributable to two or more items of tangible
1916
personal property, products, or services that are subject to taxation under this
1917
chapter at different rates, the entire purchase is subject to taxation under this
1918
chapter at the higher tax rate unless the seller, at the time of the transaction:
1919
(A) separately states the items subject to taxation under this chapter at each of the
1920
different rates on an invoice, bill of sale, or similar document provided to the
1921
purchaser; or
1922
(B) is able to identify by reasonable and verifiable standards the tangible personal
1923
property, product, or service that is subject to taxation under this chapter at the
1924
lower tax rate from the books and records the seller keeps in the seller's regular
1925
course of business.
1926
(ii) For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the
1927
seller's regular course of business includes books and records the seller keeps in
1928
the regular course of business for nontax purposes.
1929
(i) Subject to Subsections (2)(j) and (k), a tax rate repeal or tax rate change for a tax rate
1930
imposed under the following shall take effect on the first day of a calendar quarter:
1931
(i) Subsection (2)(a)(i)(A);
1932
(ii) Subsection (2)(b)(i); or
1933
[(iii) Subsection (2)(c)(i); or]
1934
[(iv)] (iii) Subsection (2)(f)(i)(A)(I).
- 57 - 1st Sub. (Green) S.B. 122 01-21 16:30
1935
(j)(i) A tax rate increase takes effect on the first day of the first billing period that
1936
begins on or after the effective date of the tax rate increase if the billing period for
1937
the transaction begins before the effective date of a tax rate increase imposed
1938
under:
1939
(A) Subsection (2)(a)(i)(A);
1940
(B) Subsection (2)(b)(i); or
1941
[(C) Subsection (2)(c)(i); or]
1942
[(D)] (C) Subsection (2)(f)(i)(A)(I).
1943
(ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
1944
statement for the billing period is rendered on or after the effective date of the
1945
repeal of the tax or the tax rate decrease imposed under:
1946
(A) Subsection (2)(a)(i)(A);
1947
(B) Subsection (2)(b)(i); or
1948
[(C) Subsection (2)(c)(i); or]
1949
[(D)] (C) Subsection (2)(f)(i)(A)(I).
1950
(k)(i) For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale
1951
is computed on the basis of sales and use tax rates published in the catalogue, a
1952
tax rate repeal or change in a tax rate takes effect:
1953
(A) on the first day of a calendar quarter; and
1954
(B) beginning 60 days after the effective date of the tax rate repeal or tax rate
1955
change.
1956
(ii) Subsection (2)(k)(i) applies to the tax rates described in the following:
1957
(A) Subsection (2)(a)(i)(A);
1958
(B) Subsection (2)(b)(i); or
1959
[(C) Subsection (2)(c)(i); or]
1960
[(D)] (C) Subsection (2)(f)(i)(A)(I).
1961
(iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1962
the commission may by rule define the term "catalogue sale."
1963
(l)(i) For a location described in Subsection (2)(l)(ii), the commission shall determine
1964
the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel
1965
based on the predominant use of the gas, electricity, heat, coal, fuel oil, or other
1966
fuel at the location.
1967
(ii) Subsection (2)(l)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
1968
or other fuel is furnished through a single meter for two or more of the following
- 58 - 01-21 16:30 1st Sub. (Green) S.B. 122
1969
uses:
1970
(A) a commercial use;
1971
(B) an industrial use; or
1972
(C) a residential use.
1973
(3)(a) The Division of Finance shall deposit the following state taxes [shall be deposited ]
1974
into the General Fund:
1975
(i) the tax imposed by Subsection (2)(a)(i)(A);
1976
(ii) the tax imposed by Subsection (2)(b)(i);
1977
(iii) the tax imposed by Subsection (2)(d); and
1978
[(iii) the tax imposed by Subsection (2)(c)(i); and]
1979
(iv) the tax imposed by Subsection (2)(f)(i)(A)(I).
1980
(b) The commission shall distribute the following local taxes [shall be distributed ]to a
1981
county, city, or town as provided in this chapter:
1982
(i) the tax imposed by Subsection (2)(a)(ii);
1983
(ii) the tax imposed by Subsection (2)(b)(ii);
1984
(iii) the tax imposed by Subsection [(2)(c)(ii)] (2)(c); and
1985
(iv) the tax imposed by Subsection (2)(f)(i)(B).
1986
[(c) The state tax imposed by Subsection (2)(d) shall be deposited into the General Fund.]
1987
(4)(a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1988
2003, the lesser of the following amounts shall be expended as provided in
1989
Subsections (4)(b) through (g):
1990
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1991
(A) by a 1/16% tax rate on the transactions described in Subsection (1); and
1992
(B) for the fiscal year; or
1993
(ii) $17,500,000.
1994
(b)(i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
1995
described in Subsection (4)(a) shall be transferred each year as designated sales
1996
and use tax revenue to the Division of Wildlife Resources to:
1997
(A) implement the measures described in Subsections 23A-3-214(3)(a) through
1998
(d) to protect sensitive plant and animal species; or
1999
(B) award grants, up to the amount authorized by the Legislature in an
2000
appropriations act, to political subdivisions of the state to implement the
2001
measures described in Subsections 23A-3-214(3)(a) through (d) to protect
2002
sensitive plant and animal species.
- 59 - 1st Sub. (Green) S.B. 122 01-21 16:30
2003
(ii) Money transferred to the Division of Wildlife Resources under Subsection
2004
(4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or
2005
any other person to list or attempt to have listed a species as threatened or
2006
endangered under the Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et
2007
seq.
2008
(iii) At the end of each fiscal year:
2009
(A) 50% of any unexpended designated sales and use tax revenue shall lapse to
2010
the Water Resources Conservation and Development Fund created in Section
2011
73-10-24;
2012
(B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2013
Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
2014
(C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2015
Drinking Water Loan Program Subaccount created in Section 73-10c-5.
2016
(c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
2017
Subsection (4)(a) shall be deposited each year in the Agriculture Resource
2018
Development Fund created in Section 4-18-106.
2019
(d)(i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount
2020
described in Subsection (4)(a) shall be transferred each year as designated sales
2021
and use tax revenue to the Division of Water Rights to cover the costs incurred in
2022
hiring legal and technical staff for the adjudication of water rights.
2023
(ii) At the end of each fiscal year:
2024
(A) 50% of any unexpended designated sales and use tax revenue shall lapse to
2025
the Water Resources Conservation and Development Fund created in Section
2026
73-10-24;
2027
(B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2028
Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
2029
(C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
2030
Drinking Water Loan Program Subaccount created in Section 73-10c-5.
2031
(e)(i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount
2032
described in Subsection (4)(a) shall be deposited into the Water Resources
2033
Conservation and Development Fund created in Section 73-10-24 for use by the
2034
Division of Water Resources.
2035
(ii) In addition to the uses allowed of the Water Resources Conservation and
2036
Development Fund under Section 73-10-24, the Water Resources Conservation
- 60 - 01-21 16:30 1st Sub. (Green) S.B. 122
2037
and Development Fund may also be used to:
2038
(A) conduct hydrologic and geotechnical investigations by the Division of Water
2039
Resources in a cooperative effort with other state, federal, or local entities, for
2040
the purpose of quantifying surface and ground water resources and describing
2041
the hydrologic systems of an area in sufficient detail so as to enable local and
2042
state resource managers to plan for and accommodate growth in water use
2043
without jeopardizing the resource;
2044
(B) fund state required dam safety improvements; and
2045
(C) protect the state's interest in interstate water compact allocations, including the
2046
hiring of technical and legal staff.
2047
(f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described in
2048
Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program
2049
Subaccount created in Section 73-10c-5 for use by the Water Quality Board to fund
2050
wastewater projects.
2051
(g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2052
in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program
2053
Subaccount created in Section 73-10c-5 for use by the Division of Drinking Water to:
2054
(i) provide for the installation and repair of collection, treatment, storage, and
2055
distribution facilities for any public water system, as defined in Section 19-4-102;
2056
(ii) develop underground sources of water, including springs and wells; and
2057
(iii) develop surface water sources.
2058
(5)(a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2059
2006, the difference between the following amounts shall be expended as provided in
2060
this Subsection (5), if that difference is greater than $1:
2061
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for
2062
the fiscal year by a 1/16% tax rate on the transactions described in Subsection (1);
2063
and
2064
(ii) $17,500,000.
2065
(b)(i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
2066
(A) transferred each fiscal year to the Department of Natural Resources as
2067
designated sales and use tax revenue; and
2068
(B) expended by the Department of Natural Resources for watershed rehabilitation
2069
or restoration.
2070
(ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
- 61 - 1st Sub. (Green) S.B. 122 01-21 16:30
2071
tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources
2072
Conservation and Development Fund created in Section 73-10-24.
2073
(c)(i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
2074
remaining difference described in Subsection (5)(a) shall be:
2075
(A) transferred each fiscal year to the Division of Water Resources as designated
2076
sales and use tax revenue; and
2077
(B) expended by the Division of Water Resources for cloud-seeding projects
2078
authorized by Title 73, Chapter 15, Modification of Weather.
2079
(ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
2080
tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources
2081
Conservation and Development Fund created in Section 73-10-24.
2082
(d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
2083
remaining difference described in Subsection (5)(a) shall be deposited into the Water
2084
Resources Conservation and Development Fund created in Section 73-10-24 for use
2085
by the Division of Water Resources for:
2086
(i) preconstruction costs:
2087
(A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73,
2088
Chapter 26, Bear River Development Act; and
2089
(B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
2090
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
2091
(ii) the cost of employing a civil engineer to oversee any project authorized by Title
2092
73, Chapter 26, Bear River Development Act;
2093
(iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline
2094
project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development
2095
Act; and
2096
(iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
2097
Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i)
2098
through (iii).
2099
(e) After making the transfers required by Subsections (5)(b) and (c), 15% of the
2100
remaining difference described in Subsection (5)(a) shall be deposited each year into
2101
the Water Rights Restricted Account created by Section 73-2-1.6.
2102
(6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), each
2103
fiscal year, the commission shall deposit into the Water Infrastructure Restricted
2104
Account created in Section 73-10g-103 the amount of revenue generated by a 1/16% tax
- 62 - 01-21 16:30 1st Sub. (Green) S.B. 122
2105
rate on the transactions described in Subsection (1) for the fiscal year.
2106
(7)(a) Notwithstanding Subsection (3)(a) and subject to Subsections (7)(b), (c), and (d),
2107
for a fiscal year beginning on or after July 1, 2023, the commission shall deposit into
2108
the Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of
2109
the taxes listed under Subsection (3)(a) equal to 17% of the revenue collected from
2110
the following sales and use taxes:
2111
(i) the tax imposed by Subsection (2)(a)(i)(A) at a [4.7%] 4.933% rate;
2112
(ii) the tax imposed by Subsection (2)(b)(i); and
2113
[(iii) the tax imposed by Subsection (2)(c)(i); and]
2114
[(iv)] (iii) the tax imposed by Subsection (2)(f)(i)(A)(I).
2115
(b)(i) For a fiscal year beginning on or after July 1, 2024, the commission shall
2116
annually reduce the deposit under Subsection (7)(a) into the Transportation
2117
Investment Fund of 2005 by an amount equal to .44% of the revenue collected
2118
from the following sales and use taxes:
2119
(A) the tax imposed by Subsection (2)(a)(i)(A) at a [4.7%] 4.933% rate;
2120
(B) the tax imposed by Subsection (2)(b)(i); and
2121
[(C) the tax imposed by Subsection (2)(c)(i); and]
2122
[(D)] (C) the tax imposed by Subsection (2)(f)(i)(A)(I).
2123
(ii) The commission shall annually deposit the amount described in Subsection
2124
(7)(b)(i) into the Cottonwood Canyons Transportation Investment Fund created in
2125
Section 72-2-124.
2126
(c)(i) Subject to Subsection (7)(c)(ii), for a fiscal year beginning on or after July 1,
2127
2023, the commission shall annually reduce the deposit into the Transportation
2128
Investment Fund of 2005 under Subsections (7)(a) and (7)(b) by an amount that is
2129
equal to 5% of:
2130
(A) the amount of revenue generated in the current fiscal year by the portion of
2131
taxes listed under Subsection (3)(a) that equals 20.68% of the revenue
2132
collected from taxes described in Subsections (7)(a)(i) through (iv);
2133
(B) the amount of revenue generated in the current fiscal year by registration fees
2134
designated under Section 41-1a-1201 to be deposited into the Transportation
2135
Investment Fund of 2005; and
2136
(C) revenue transferred by the Division of Finance to the Transportation
2137
Investment Fund of 2005 in accordance with Section 72-2-106 in the current
2138
fiscal year.
- 63 - 1st Sub. (Green) S.B. 122 01-21 16:30
2139
(ii) The amount described in Subsection (7)(c)(i) may not exceed $45,000,000 in a
2140
given fiscal year.
2141
(iii) The commission shall annually deposit the amount described in Subsection
2142
(7)(c)(i) into the Active Transportation Investment Fund created in Subsection
2143
72-2-124(11).
2144
(d)(i) For a fiscal year beginning on or after July 1, 2024, the commission shall
2145
annually reduce the deposit into the Transportation Investment Fund of 2005
2146
under this Subsection (7) by an amount that is equal to 1% of the revenue
2147
collected from the following sales and use taxes:
2148
(A) the tax imposed by Subsection (2)(a)(i)(A) at a [4.7%] 4.933% rate;
2149
(B) the tax imposed by Subsection (2)(b)(i); and
2150
[(C) the tax imposed by Subsection (2)(c)(i); and]
2151
[(D)] (C) the tax imposed by Subsection (2)(f)(i)(A)(I).
2152
(ii) The commission shall annually deposit the amount described in Subsection
2153
(7)(d)(i) into the Commuter Rail Subaccount created in Section 72-2-124.
2154
(8)(a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
2155
Subsection (7), and subject to Subsections (8)(b) and (d)(ii), for a fiscal year
2156
beginning on or after July 1, 2018, the commission shall annually deposit into the
2157
Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the
2158
taxes listed under Subsection (3)(a) in an amount equal to 3.68% of the revenue
2159
collected from the following taxes:
2160
(i) the tax imposed by Subsection (2)(a)(i)(A) at a [4.7%] 4.933% rate;
2161
(ii) the tax imposed by Subsection (2)(b)(i); and
2162
[(iii) the tax imposed by Subsection (2)(c)(i); and]
2163
[(iv)] (iii) the tax imposed by Subsection (2)(f)(i)(A)(I).
2164
(b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
2165
reduce the deposit into the Transportation Investment Fund of 2005 under Subsection
2166
(8)(a) by an amount that is equal to 35% of the amount of revenue generated in the
2167
current fiscal year by the portion of the tax imposed on motor and special fuel that is
2168
sold, used, or received for sale or use in this state that exceeds 29.4 cents per gallon.
2169
(c) The commission shall annually deposit the amount described in Subsection (8)(b)
2170
into the Transit Transportation Investment Fund created in Section 72-2-124.
2171
(9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2172
2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies
- 64 - 01-21 16:30 1st Sub. (Green) S.B. 122
2173
Fund created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
2174
(10) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the fiscal
2175
year during which the commission receives notice under Section 63N-2-510 that
2176
construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the
2177
commission shall, for two consecutive fiscal years, annually deposit $1,900,000 of the
2178
revenue generated by the taxes listed under Subsection (3)(a) into the Hotel Impact
2179
Mitigation Fund, created in Section 63N-2-512.
2180
(11)(a) The rate specified in this subsection is 0.15%.
2181
(b) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year beginning
2182
on or after July 1, 2019, annually transfer the amount of revenue collected from the
2183
rate described in Subsection (11)(a) on the transactions that are subject to the sales
2184
and use tax under Subsection (2)(a)(i)(A) into the Medicaid ACA Fund created in
2185
Section 26B-1-315.
2186
(12) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2187
2020-21, the commission shall deposit $200,000 into the General Fund as a dedicated
2188
credit solely for use of the Search and Rescue Financial Assistance Program created in,
2189
and expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
2190
(13)(a) For each fiscal year beginning with fiscal year 2020-21, the commission shall
2191
annually transfer $1,813,400 of the revenue deposited into the Transportation
2192
Investment Fund of 2005 under Subsections (7) and (8) to the General Fund.
2193
(b) If the total revenue deposited into the Transportation Investment Fund of 2005 under
2194
Subsections (7) and (8) is less than $1,813,400 for a fiscal year, the commission shall
2195
transfer the total revenue deposited into the Transportation Investment Fund of 2005
2196
under Subsections (7) and (8) during the fiscal year to the General Fund.
2197
(14) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610, beginning
2198
the first day of the calendar quarter one year after the sales and use tax boundary for a
2199
housing and transit reinvestment zone is established, the commission, at least annually,
2200
shall transfer an amount equal to 15% of the sales and use tax increment within an
2201
established sales and use tax boundary, as defined in Section 63N-3-602, into the Transit
2202
Transportation Investment Fund created in Section 72-2-124.
2203
(15) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year beginning
2204
on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure Restricted
2205
Account, created in Section 51-9-902, a portion of the taxes listed under Subsection
2206
(3)(a) equal to 1% of the revenue collected from the following sales and use taxes:
- 65 - 1st Sub. (Green) S.B. 122 01-21 16:30
2207
(a) the tax imposed by Subsection (2)(a)(i)(A) at a [4.7%] 4.933% rate;
2208
(b) the tax imposed by Subsection (2)(b)(i); and
2209
[(c) the tax imposed by Subsection (2)(c)(i); and]
2210
[(d)] (c) the tax imposed by Subsection (2)(f)(i)(A)(I).
2211
(16) Notwithstanding Subsection (3)(a), beginning October 1, 2024 the commission shall
2212
transfer to the Utah Fairpark Area Investment and Restoration District, created in
2213
Section 11-70-201, the revenue from the sales and use tax imposed by Subsection
2214
(2)(a)(i)(A) at a [4.7%] 4.933% rate, on transactions occurring within the district sales
2215
tax area, as defined in Section 11-70-101.
2216
(17)(a) As used in this Subsection (17):
2217
(i) "Additional land" means point of the mountain state land described in Subsection
2218
11-59-102(6)(b) that the point of the mountain authority acquires after the point of
2219
the mountain authority provides the commission a map under Subsection (17)(c).
2220
(ii) "Point of the mountain authority" means the Point of the Mountain State Land
2221
Authority, created in Section 11-59-201.
2222
(iii) "Point of the mountain state land" means the same as that term is defined in
2223
Section 11-59-102.
2224
(b) Notwithstanding Subsection (3)(a), the commission shall distribute to the point of the
2225
mountain authority 50% of the revenue from the sales and use tax imposed by
2226
Subsection (2)(a)(i)(A) at a [4.7%] 4.933% rate, on transactions occurring on the
2227
point of the mountain state land.
2228
(c) The distribution under Subsection (17)(b) shall begin the next calendar quarter that
2229
begins at least 90 days after the point of the mountain authority provides the
2230
commission a map that:
2231
(i) accurately describes the point of the mountain state land; and
2232
(ii) the point of the mountain authority certifies as accurate.
2233
(d) A distribution under Subsection (17)(b) with respect to additional land shall begin
2234
the next calendar quarter that begins at least 90 days after the point of the mountain
2235
authority provides the commission a map of point of the mountain state land that:
2236
(i) accurately describes the point of the mountain state land, including the additional
2237
land; and
2238
(ii) the point of the mountain authority certifies as accurate.
2239
(e)(i) Upon the payment in full of bonds secured by the sales and use tax revenue
2240
distributed to the point of the mountain authority under Subsection (17)(b), the
- 66 - 01-21 16:30 1st Sub. (Green) S.B. 122
2241
point of the mountain authority shall immediately notify the commission in
2242
writing that the bonds are paid in full.
2243
(ii) The commission shall discontinue distributions of sales and use tax revenue under
2244
Subsection (17)(b) at the beginning of the calendar quarter that begins at least 90
2245
days after the date that the commission receives the written notice under
2246
Subsection (17)(e)(i).
2247
Section 3. Section 59-12-108 is amended to read:
2248
59-12-108 . Monthly payment -- Amount of tax a seller may retain -- Penalty --
2249
Certain amounts allocated to local taxing jurisdictions.
2250
(1)(a) Notwithstanding Section 59-12-107, a seller that has a tax liability under this
2251
chapter of $50,000 or more for the previous calendar year shall:
2252
(i) file a return with the commission:
2253
(A) monthly on or before the last day of the month immediately following the
2254
month for which the seller collects a tax under this chapter; and
2255
(B) for the month for which the seller collects a tax under this chapter; and
2256
(ii) except as provided in Subsection (1)(b), remit with the return required by
2257
Subsection (1)(a)(i) the amount the person is required to remit to the commission
2258
for each tax, fee, or charge described in Subsection (1)(c):
2259
(A) if that seller's tax liability under this chapter for the previous calendar year is
2260
less than $96,000, by any method permitted by the commission; or
2261
(B) if that seller's tax liability under this chapter for the previous calendar year is
2262
$96,000 or more, by electronic funds transfer.
2263
(b) A seller shall remit electronically with the return required by Subsection (1)(a)(i) the
2264
amount the seller is required to remit to the commission for each tax, fee, or charge
2265
described in Subsection (1)(c) if that seller:
2266
(i) is required by Section 59-12-107 to file the return electronically; or
2267
(ii)(A) is required to collect and remit a tax under Section 59-12-107; and
2268
(B) files a simplified electronic return.
2269
(c) Subsections (1)(a) and (b) apply to the following taxes, fees, or charges:
2270
(i) a tax under Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
2271
(ii) a fee under Section 19-6-714;
2272
(iii) a fee under Section 19-6-805;
2273
(iv) a charge under Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications
2274
Service Charges; or
- 67 - 1st Sub. (Green) S.B. 122 01-21 16:30
2275
(v) a tax under this chapter.
2276
(d) Notwithstanding Subsection (1)(a)(ii) and in accordance with Title 63G, Chapter 3,
2277
Utah Administrative Rulemaking Act, the commission shall make rules providing for
2278
a method for making same-day payments other than by electronic funds transfer if
2279
making payments by electronic funds transfer fails.
2280
(e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2281
commission shall establish by rule procedures and requirements for determining the
2282
amount a seller is required to remit to the commission under this Subsection (1).
2283
(2)(a) Except as provided in Subsection (3), a seller subject to Subsection (1) or a seller
2284
described in Subsection (4) may retain each month the amount allowed by this
2285
Subsection (2).
2286
(b) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
2287
each month 1.31% of any amounts the seller is required to remit to the commission:
2288
(i) for a transaction described in Subsection 59-12-103(1) that is subject to a state tax
2289
and a local tax imposed in accordance with the following, for the month for which
2290
the seller is filing a return in accordance with Subsection (1):
2291
(A) Subsection 59-12-103(2)(a);
2292
(B) Subsection 59-12-103(2)(b); and
2293
(C) Subsection 59-12-103(2)(d); and
2294
(ii) for an agreement sales and use tax.
2295
(c)(i) A seller subject to Subsection (1) or a seller described in Subsection (4) may
2296
retain each month the amount calculated under Subsection (2)(c)(ii) for a
2297
transaction described in Subsection 59-12-103(1) that is subject to the [state tax
2298
and the local ]tax imposed in accordance with Subsection 59-12-103(2)(c).
2299
(ii) For purposes of Subsection (2)(c)(i), the amount a seller may retain is an amount
2300
equal to the sum of:
2301
(A) 1.31% of any amounts the seller is required to remit to the commission for:
2302
(I) the [state tax and the local ]tax imposed in accordance with Subsection
2303
59-12-103(2)(c);
2304
(II) the month for which the seller is filing a return in accordance with
2305
Subsection (1); and
2306
(III) an agreement sales and use tax; and
2307
(B) 1.31% of the difference between:
2308
(I) the amounts the seller would have been required to remit to the commission:
- 68 - 01-21 16:30 1st Sub. (Green) S.B. 122
2309
(Aa) in accordance with Subsection 59-12-103(2)(a) if the transaction had
2310
been subject to the state tax and the local tax imposed in accordance with
2311
Subsection 59-12-103(2)(a);
2312
(Bb) for the month for which the seller is filing a return in accordance with
2313
Subsection (1); and
2314
(Cc) for an agreement sales and use tax; and
2315
(II) the amounts the seller is required to remit to the commission for:
2316
(Aa) the [state tax and the local ]tax imposed in accordance with Subsection
2317
59-12-103(2)(c);
2318
(Bb) the month for which the seller is filing a return in accordance with
2319
Subsection (1); and
2320
(Cc) an agreement sales and use tax.
2321
(d) A seller subject to Subsection (1) or a seller described in Subsection (4) may retain
2322
each month 1% of any amounts the seller is required to remit to the commission:
2323
(i) for the month for which the seller is filing a return in accordance with Subsection
2324
(1); and
2325
(ii) under:
2326
(A) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
2327
(B) Subsection 59-12-603(1)(a)(i)(A);
2328
(C) Subsection 59-12-603(1)(a)(i)(B); or
2329
(D) Subsection 59-12-603(1)(a)(ii).
2330
(3) A state government entity that is required to remit taxes monthly in accordance with
2331
Subsection (1) may not retain any amount under Subsection (2).
2332
(4) A seller that has a tax liability under this chapter for the previous calendar year of less
2333
than $50,000 may:
2334
(a) voluntarily meet the requirements of Subsection (1); and
2335
(b) if the seller voluntarily meets the requirements of Subsection (1), retain the amounts
2336
allowed by Subsection (2).
2337
(5) [Penalties for late payment shall be as provided in Section 59-1-401.] Section 59-1-401
2338
provides the penalties for late payment.
2339
(6)(a) Except as provided in Subsection (6)(c), for any amounts required to be remitted
2340
to the commission under this part, the commission shall each month calculate an
2341
amount equal to the difference between:
2342
(i) the total amount retained for that month by all sellers had the percentages listed
- 69 - 1st Sub. (Green) S.B. 122 01-21 16:30
2343
under Subsections (2)(b) and (2)(c)(ii) been 1.5%; and
2344
(ii) the total amount retained for that month by all sellers at the percentages listed
2345
under Subsections (2)(b) and (2)(c)(ii).
2346
(b) The commission shall each month allocate the amount calculated under Subsection
2347
(6)(a) to each county, city, and town on the basis of the proportion of agreement sales
2348
and use tax that the commission distributes to each county, city, and town for that
2349
month compared to the total agreement sales and use tax that the commission
2350
distributes for that month to all counties, cities, and towns.
2351
(c) The amount the commission calculates under Subsection (6)(a) may not include an
2352
amount collected from a tax that:
2353
(i) the state imposes within a county, city, or town, including the unincorporated area
2354
of a county; and
2355
(ii) is not imposed within the entire state.
2356
Section 4. Section 63N-2-502 is amended to read:
2357
63N-2-502 . Definitions.
2358
As used in this part:
2359
(1) "Agreement" means an agreement described in Section 63N-2-503.
2360
(2) "Base taxable value" means the value of hotel property before the construction on a
2361
qualified hotel begins, as that value is established by the county in which the hotel
2362
property is located, using a reasonable valuation method that may include the value of
2363
the hotel property on the county assessment rolls the year before the year during which
2364
construction on the qualified hotel begins.
2365
(3) "Certified claim" means a claim that the office has approved and certified as provided in
2366
Section 63N-2-505.
2367
(4) "Claim" means a written document submitted by a qualified hotel owner or host local
2368
government to request a convention incentive.
2369
(5) "Claimant" means the qualified hotel owner or host local government that submits a
2370
claim under Subsection 63N-2-505(1)(a) for a convention incentive.
2371
(6) "Commission" means the Utah State Tax Commission.
2372
(7) "Community reinvestment agency" means the same as that term is defined in Section
2373
17C-1-102.
2374
(8) "Construction revenue" means revenue generated from state taxes and local taxes
2375
imposed on transactions occurring during the eligibility period as a result of the
2376
construction of the hotel property, including purchases made by a qualified hotel owner
- 70 - 01-21 16:30 1st Sub. (Green) S.B. 122
2377
and its subcontractors.
2378
(9) "Convention incentive" means an incentive for the development of a qualified hotel, in
2379
the form of payment from the incentive fund as provided in this part, as authorized in an
2380
agreement.
2381
(10) "Eligibility period" means:
2382
(a) the period that:
2383
(i) begins the date construction of a qualified hotel begins; and
2384
(ii) ends:
2385
(A) for purposes of the state portion, 20 years after the date of initial occupancy of
2386
that qualified hotel; or
2387
(B) for purposes of the local portion and incremental property tax revenue, 25
2388
years after the date of initial occupancy of that hotel; or
2389
(b) as provided in an agreement between the office and a qualified hotel owner or host
2390
local government, a period that:
2391
(i) begins no earlier than the date construction of a qualified hotel begins; and
2392
(ii) is shorter than the period described in Subsection (10)(a).
2393
(11) "Endorsement letter" means a letter:
2394
(a) from the county in which a qualified hotel is located or is proposed to be located;
2395
(b) signed by the county executive; and
2396
(c) expressing the county's endorsement of a developer of a qualified hotel as meeting all
2397
the county's criteria for receiving the county's endorsement.
2398
(12) "Host agency" means the community reinvestment agency of the host local
2399
government.
2400
(13) "Host local government" means:
2401
(a) a county that enters into an agreement with the office for the construction of a
2402
qualified hotel within the unincorporated area of the county; or
2403
(b) a city or town that enters into an agreement with the office for the construction of a
2404
qualified hotel within the boundary of the city or town.
2405
(14) "Hotel property" means a qualified hotel and any property that is included in the same
2406
development as the qualified hotel, including convention, exhibit, and meeting space,
2407
retail shops, restaurants, parking, and other ancillary facilities and amenities.
2408
(15) "Incentive fund" means the Convention Incentive Fund created in Section 63N-2-503.5.
2409
(16) "Incremental property tax revenue" means the amount of property tax revenue
2410
generated from hotel property that equals the difference between:
- 71 - 1st Sub. (Green) S.B. 122 01-21 16:30
2411
(a) the amount of property tax revenue generated in any tax year by all taxing entities
2412
from hotel property, using the current assessed value of the hotel property; and
2413
(b) the amount of property tax revenue that would be generated that tax year by all
2414
taxing entities from hotel property, using the hotel property's base taxable value.
2415
(17) "Local portion" means the portion of new tax revenue that is generated by local taxes.
2416
(18) "Local taxes" means a tax imposed under:
2417
(a) Section 59-12-204;
2418
(b) Section 59-12-301;
2419
(c) Sections 59-12-352 and 59-12-353;
2420
(d) Subsection 59-12-603(1)(a); or
2421
(e) Section 59-12-1102.
2422
(19) "New tax revenue" means construction revenue, offsite revenue, and onsite revenue.
2423
(20) "Offsite revenue" means revenue generated from state taxes and local taxes imposed
2424
on transactions by a third-party seller occurring other than on hotel property during the
2425
eligibility period, if:
2426
(a) the transaction is subject to a tax under Title 59, Chapter 12, Sales and Use Tax Act;
2427
and
2428
(b) the third-party seller voluntarily consents to the disclosure of information to the
2429
office, as provided in Subsection 63N-2-505(2)(b)(i)(E).
2430
(21) "Onsite revenue" means revenue generated from state taxes and local taxes imposed on
2431
transactions occurring on hotel property during the eligibility period.
2432
(22) "Public infrastructure" means:
2433
(a) water, sewer, storm drainage, electrical, telecommunications, and other similar
2434
systems and lines;
2435
(b) streets, roads, curbs, gutters, sidewalks, walkways, parking facilities, and public
2436
transportation facilities; and
2437
(c) other buildings, facilities, infrastructure, and improvements that benefit the public.
2438
(23) "Qualified hotel" means a full-service hotel development constructed in the state on or
2439
after July 1, 2014 that:
2440
(a) requires a significant capital investment;
2441
(b) includes at least 85 square feet of convention, exhibit, and meeting space per guest
2442
room; and
2443
(c) is located within 1,000 feet of a convention center that contains at least 500,000
2444
square feet of convention, exhibit, and meeting space.
- 72 - 01-21 16:30 1st Sub. (Green) S.B. 122
2445
(24) "Qualified hotel owner" means a person [who] that owns a qualified hotel.
2446
(25) "Review committee" means the independent review committee established under
2447
Section 63N-2-504.
2448
(26) "Significant capital investment" means an amount of at least $200,000,000.
2449
(27) "State portion" means the portion of new tax revenue that is generated by state taxes.
2450
(28) "State taxes" means a tax imposed under Subsection 59-12-103(2)(a)(i), (2)(b)(i), [
2451
(2)(c)(i), ]or (2)(e)(i)(A).
2452
(29) "Third-party seller" means a person [who] that is a seller in a transaction:
2453
(a) occurring other than on hotel property;
2454
(b) that is:
2455
(i) the sale, rental, or lease of a room or of convention or exhibit space or other
2456
facilities on hotel property; or
2457
(ii) the sale of tangible personal property or a service that is part of a bundled
2458
transaction, as defined in Section 59-12-102, with a sale, rental, or lease described
2459
in Subsection (29)(b)(i); and
2460
(c) that is subject to a tax under Title 59, Chapter 12, Sales and Use Tax Act.
2461
Section 5. Effective Date.
2462
This bill takes effect on January 1, 2026.
- 73 -