Utah 2025 Regular Session

Utah Senate Bill SB0311 Compare Versions

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

Old	New	Differences
1	1	02-20 10:39 S.B. 311
2	2	1
3	3	Sales and Use Tax Exemptions Amendments
4	4	2025 GENERAL SESSION
5	5	STATE OF UTAH
6	6	Chief Sponsor: Evan J. Vickers
7	7	House Sponsor:
8	8	2
9	9
10	10	3
11	11	LONG TITLE
12	12	4
13	13	General Description:
14	14	5
15	15	This bill addresses sales and use tax exemptions.
16	16	6
17	17	Highlighted Provisions:
18	18	7
19	19	This bill:
20	20	8
21	21	▸ defines terms;
22	22	9
23	23	▸ extends the duration of the sales and use tax exemption applicable to leases or purchases
24	24	10
25	25	for alternative energy electricity production facilities;
26	26	11
27	27	▸ expands the sales and use tax exemption applicable to leases or purchases for alternative
28	28	12
29	29	energy electricity production facilities to include leases or purchases for electric storage
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31	31	facilities; and
32	32	14
33	33	▸ makes technical changes.
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35	35	Money Appropriated in this Bill:
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37	37	None
38	38	17
39	39	Other Special Clauses:
40	40	18
41	41	This bill provides a special effective date.
42	42	19
43	43	Utah Code Sections Affected:
44	44	20
45	45	AMENDS:
46	46	21
47	47	59-12-102, as last amended by Laws of Utah 2024, Chapter 274
48	48	22
49	49	59-12-104, as last amended by Laws of Utah 2024, Chapter 35
50	50	23
51	51
52	52	24
53	53	Be it enacted by the Legislature of the state of Utah:
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55	55	Section 1. Section 59-12-102 is amended to read:
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57	57	59-12-102 . Definitions.
58	58	27
59	59	As used in this chapter:
60	60	28
61	61	(1) "800 service" means a telecommunications service that:
62	62	29
63	63	(a) allows a caller to dial a toll-free number without incurring a charge for the call; and
64	64	30
65	65	(b) is typically marketed:
66	66	S.B. 311 S.B. 311 02-20 10:39
67	67	31
68	68	(i) under the name 800 toll-free calling;
69	69	32
70	70	(ii) under the name 855 toll-free calling;
71	71	33
72	72	(iii) under the name 866 toll-free calling;
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74	74	(iv) under the name 877 toll-free calling;
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76	76	(v) under the name 888 toll-free calling; or
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78	78	(vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
79	79	37
80	80	Federal Communications Commission.
81	81	38
82	82	(2)(a) "900 service" means an inbound toll telecommunications service that:
83	83	39
84	84	(i) a subscriber purchases;
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86	86	(ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
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88	88	the subscriber's:
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90	90	(A) prerecorded announcement; or
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92	92	(B) live service; and
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94	94	(iii) is typically marketed:
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96	96	(A) under the name 900 service; or
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98	98	(B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
99	99	47
100	100	Communications Commission.
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102	102	(b) "900 service" does not include a charge for:
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104	104	(i) a collection service a seller of a telecommunications service provides to a
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106	106	subscriber; or
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108	108	(ii) the following a subscriber sells to the subscriber's customer:
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110	110	(A) a product; or
111	111	53
112	112	(B) a service.
113	113	54
114	114	(3)(a) "Admission or user fees" includes season passes.
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116	116	(b) "Admission or user fees" does not include:
117	117	56
118	118	(i) annual membership dues to private organizations; or
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120	120	(ii) a lesson, including a lesson that involves as part of the lesson equipment or a
121	121	58
122	122	facility listed in Subsection 59-12-103(1)(f).
123	123	59
124	124	(4) "Affiliate" or "affiliated person" means a person that, with respect to another person:
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126	126	(a) has an ownership interest of more than 5%, whether direct or indirect, in that other
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128	128	person; or
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130	130	(b) is related to the other person because a third person, or a group of third persons who
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132	132	are affiliated persons with respect to each other, holds an ownership interest of more
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134	134	than 5%, whether direct or indirect, in the related persons.
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137	137	(5) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
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139	139	November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
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141	141	Agreement after November 12, 2002.
142	142	68
143	143	(6) "Agreement combined tax rate" means the sum of the tax rates:
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145	145	(a) listed under Subsection (7); and
146	146	70
147	147	(b) that are imposed within a local taxing jurisdiction.
148	148	71
149	149	(7) "Agreement sales and use tax" means a tax imposed under:
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151	151	(a) Subsection 59-12-103(2)(a)(i)(A);
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153	153	(b) Subsection 59-12-103(2)(b)(i);
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155	155	(c) Subsection 59-12-103(2)(c)(i);
156	156	75
157	157	(d) Subsection 59-12-103(2)(d);
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159	159	(e) Subsection 59-12-103(2)(e)(i)(A)(I);
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161	161	(f) Section 59-12-204;
162	162	78
163	163	(g) Section 59-12-401;
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165	165	(h) Section 59-12-402;
166	166	80
167	167	(i) Section 59-12-402.1;
168	168	81
169	169	(j) Section 59-12-703;
170	170	82
171	171	(k) Section 59-12-802;
172	172	83
173	173	(l) Section 59-12-804;
174	174	84
175	175	(m) Section 59-12-1102;
176	176	85
177	177	(n) Section 59-12-1302;
178	178	86
179	179	(o) Section 59-12-1402;
180	180	87
181	181	(p) Section 59-12-1802;
182	182	88
183	183	(q) Section 59-12-2003;
184	184	89
185	185	(r) Section 59-12-2103;
186	186	90
187	187	(s) Section 59-12-2213;
188	188	91
189	189	(t) Section 59-12-2214;
190	190	92
191	191	(u) Section 59-12-2215;
192	192	93
193	193	(v) Section 59-12-2216;
194	194	94
195	195	(w) Section 59-12-2217;
196	196	95
197	197	(x) Section 59-12-2218;
198	198	96
199	199	(y) Section 59-12-2219; or
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201	201	(z) Section 59-12-2220.
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203	203	(8) "Aircraft" means the same as that term is defined in Section 72-10-102.
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206	206	(9) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
207	207	100
208	208	(a) except for:
209	209	101
210	210	(i) an airline as defined in Section 59-2-102; or
211	211	102
212	212	(ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
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214	214	includes a corporation that is qualified to do business but is not otherwise doing
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216	216	business in the state, of an airline; and
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218	218	(b) that has the workers, expertise, and facilities to perform the following, regardless of
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220	220	whether the business entity performs the following in this state:
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222	222	(i) check, diagnose, overhaul, and repair:
223	223	108
224	224	(A) an onboard system of a fixed wing turbine powered aircraft; and
225	225	109
226	226	(B) the parts that comprise an onboard system of a fixed wing turbine powered
227	227	110
228	228	aircraft;
229	229	111
230	230	(ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered
231	231	112
232	232	aircraft engine;
233	233	113
234	234	(iii) perform at least the following maintenance on a fixed wing turbine powered
235	235	114
236	236	aircraft:
237	237	115
238	238	(A) an inspection;
239	239	116
240	240	(B) a repair, including a structural repair or modification;
241	241	117
242	242	(C) changing landing gear; and
243	243	118
244	244	(D) addressing issues related to an aging fixed wing turbine powered aircraft;
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246	246	(iv) completely remove the existing paint of a fixed wing turbine powered aircraft
247	247	120
248	248	and completely apply new paint to the fixed wing turbine powered aircraft; and
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250	250	(v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
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252	252	results in a change in the fixed wing turbine powered aircraft's certification
253	253	123
254	254	requirements by the authority that certifies the fixed wing turbine powered aircraft.
255	255	124
256	256	(10) "Alcoholic beverage" means a beverage that:
257	257	125
258	258	(a) is suitable for human consumption; and
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260	260	(b) contains .5% or more alcohol by volume.
261	261	127
262	262	(11) "Alternative energy" means:
263	263	128
264	264	(a) biomass energy;
265	265	129
266	266	(b) geothermal energy;
267	267	130
268	268	(c) hydroelectric energy;
269	269	131
270	270	(d) solar energy;
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272	272	(e) wind energy; or
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275	275	(f) energy that is derived from:
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277	277	(i) coal-to-liquids;
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279	279	(ii) nuclear fuel;
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281	281	(iii) oil-impregnated diatomaceous earth;
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283	283	(iv) oil sands;
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285	285	(v) oil shale;
286	286	139
287	287	(vi) petroleum coke; or
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289	289	(vii) waste heat from:
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291	291	(A) an industrial facility; or
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293	293	(B) a power station in which an electric generator is driven through a process in
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295	295	which water is heated, turns into steam, and spins a steam turbine.
296	296	144
297	297	(12)(a) Subject to Subsection (12)(b), "alternative energy electricity production facility"
298	298	145
299	299	means a facility that:
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301	301	(i) uses alternative energy to produce electricity; and
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303	303	(ii) has a production capacity of two megawatts or greater.
304	304	148
305	305	(b) A facility is an alternative energy electricity production facility regardless of whether
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307	307	the facility is:
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309	309	(i) connected to an electric grid; or
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311	311	(ii) located on the premises of an electricity consumer.
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313	313	(13)(a) "Ancillary service" means a service associated with, or incidental to, the
314	314	153
315	315	provision of telecommunications service.
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317	317	(b) "Ancillary service" includes:
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319	319	(i) a conference bridging service;
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321	321	(ii) a detailed communications billing service;
322	322	157
323	323	(iii) directory assistance;
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325	325	(iv) a vertical service; or
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327	327	(v) a voice mail service.
328	328	160
329	329	(14) "Area agency on aging" means the same as that term is defined in Section 26B-6-101.
330	330	161
331	331	(15) "Assisted amusement device" means an amusement device, skill device, or ride device
332	332	162
333	333	that is started and stopped by an individual:
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335	335	(a) who is not the purchaser or renter of the right to use or operate the amusement
336	336	164
337	337	device, skill device, or ride device; and
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339	339	(b) at the direction of the seller of the right to use the amusement device, skill device, or
340	340	166
341	341	ride device.
342	342	- 5 - S.B. 311 02-20 10:39
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344	344	(16) "Assisted cleaning or washing of tangible personal property" means cleaning or
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346	346	washing of tangible personal property if the cleaning or washing labor is primarily
347	347	169
348	348	performed by an individual:
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350	350	(a) who is not the purchaser of the cleaning or washing of the tangible personal property;
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352	352	and
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354	354	(b) at the direction of the seller of the cleaning or washing of the tangible personal
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356	356	property.
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358	358	(17) "Authorized carrier" means:
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360	360	(a) in the case of vehicles operated over public highways, the holder of credentials
361	361	176
362	362	indicating that the vehicle is or will be operated pursuant to both the International
363	363	177
364	364	Registration Plan and the International Fuel Tax Agreement;
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366	366	(b) in the case of aircraft, the holder of a Federal Aviation Administration operating
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368	368	certificate or air carrier's operating certificate; or
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370	370	(c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
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372	372	stock, a person who uses locomotives, freight cars, railroad work equipment, or other
373	373	182
374	374	rolling stock in more than one state.
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376	376	(18)(a) "Biomass energy" means any of the following that is used as the primary source
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378	378	of energy to produce fuel or electricity:
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380	380	(i) material from a plant or tree; or
381	381	186
382	382	(ii) other organic matter that is available on a renewable basis, including:
383	383	187
384	384	(A) slash and brush from forests and woodlands;
385	385	188
386	386	(B) animal waste;
387	387	189
388	388	(C) waste vegetable oil;
389	389	190
390	390	(D) methane or synthetic gas produced at a landfill, as a byproduct of the
391	391	191
392	392	treatment of wastewater residuals, or through the conversion of a waste
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394	394	material through a nonincineration, thermal conversion process;
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396	396	(E) aquatic plants; and
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398	398	(F) agricultural products.
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400	400	(b) "Biomass energy" does not include:
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402	402	(i) black liquor; or
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404	404	(ii) treated woods.
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406	406	(19)(a) "Bundled transaction" means the sale of two or more items of tangible personal
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408	408	property, products, or services if the tangible personal property, products, or services
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410	410	are:
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413	413	(i) distinct and identifiable; and
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415	415	(ii) sold for one nonitemized price.
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417	417	(b) "Bundled transaction" does not include:
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419	419	(i) the sale of tangible personal property if the sales price varies, or is negotiable, on
420	420	205
421	421	the basis of the selection by the purchaser of the items of tangible personal
422	422	206
423	423	property included in the transaction;
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425	425	(ii) the sale of real property;
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427	427	(iii) the sale of services to real property;
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429	429	(iv) the retail sale of tangible personal property and a service if:
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431	431	(A) the tangible personal property:
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433	433	(I) is essential to the use of the service; and
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435	435	(II) is provided exclusively in connection with the service; and
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437	437	(B) the service is the true object of the transaction;
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439	439	(v) the retail sale of two services if:
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441	441	(A) one service is provided that is essential to the use or receipt of a second
442	442	216
443	443	service;
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445	445	(B) the first service is provided exclusively in connection with the second service;
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447	447	and
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449	449	(C) the second service is the true object of the transaction;
450	450	220
451	451	(vi) a transaction that includes tangible personal property or a product subject to
452	452	221
453	453	taxation under this chapter and tangible personal property or a product that is not
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455	455	subject to taxation under this chapter if the:
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457	457	(A) seller's purchase price of the tangible personal property or product subject to
458	458	224
459	459	taxation under this chapter is de minimis; or
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461	461	(B) seller's sales price of the tangible personal property or product subject to
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463	463	taxation under this chapter is de minimis; and
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465	465	(vii) the retail sale of tangible personal property that is not subject to taxation under
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467	467	this chapter and tangible personal property that is subject to taxation under this
468	468	229
469	469	chapter if:
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471	471	(A) that retail sale includes:
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473	473	(I) food and food ingredients;
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475	475	(II) a drug;
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477	477	(III) durable medical equipment;
478	478	234
479	479	(IV) mobility enhancing equipment;
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481	481	235
482	482	(V) an over-the-counter drug;
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484	484	(VI) a prosthetic device; or
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486	486	(VII) a medical supply; and
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488	488	(B) subject to Subsection (19)(f):
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490	490	(I) the seller's purchase price of the tangible personal property subject to
491	491	240
492	492	taxation under this chapter is 50% or less of the seller's total purchase price
493	493	241
494	494	of that retail sale; or
495	495	242
496	496	(II) the seller's sales price of the tangible personal property subject to taxation
497	497	243
498	498	under this chapter is 50% or less of the seller's total sales price of that retail
499	499	244
500	500	sale.
501	501	245
502	502	(c)(i) For purposes of Subsection (19)(a)(i), tangible personal property, a product, or
503	503	246
504	504	a service that is distinct and identifiable does not include:
505	505	247
506	506	(A) packaging that:
507	507	248
508	508	(I) accompanies the sale of the tangible personal property, product, or service;
509	509	249
510	510	and
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512	512	(II) is incidental or immaterial to the sale of the tangible personal property,
513	513	251
514	514	product, or service;
515	515	252
516	516	(B) tangible personal property, a product, or a service provided free of charge with
517	517	253
518	518	the purchase of another item of tangible personal property, a product, or a
519	519	254
520	520	service; or
521	521	255
522	522	(C) an item of tangible personal property, a product, or a service included in the
523	523	256
524	524	definition of "purchase price."
525	525	257
526	526	(ii) For purposes of Subsection (19)(c)(i)(B), an item of tangible personal property, a
527	527	258
528	528	product, or a service is provided free of charge with the purchase of another item
529	529	259
530	530	of tangible personal property, a product, or a service if the sales price of the
531	531	260
532	532	purchased item of tangible personal property, product, or service does not vary
533	533	261
534	534	depending on the inclusion of the tangible personal property, product, or service
535	535	262
536	536	provided free of charge.
537	537	263
538	538	(d)(i) For purposes of Subsection (19)(a)(ii), property sold for one nonitemized price
539	539	264
540	540	does not include a price that is separately identified by tangible personal property,
541	541	265
542	542	product, or service on the following, regardless of whether the following is in
543	543	266
544	544	paper format or electronic format:
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546	546	(A) a binding sales document; or
547	547	268
548	548	(B) another supporting sales-related document that is available to a purchaser.
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551	551	(ii) For purposes of Subsection (19)(d)(i), a binding sales document or another
552	552	270
553	553	supporting sales-related document that is available to a purchaser includes:
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555	555	(A) a bill of sale;
556	556	272
557	557	(B) a contract;
558	558	273
559	559	(C) an invoice;
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561	561	(D) a lease agreement;
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563	563	(E) a periodic notice of rates and services;
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565	565	(F) a price list;
566	566	277
567	567	(G) a rate card;
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569	569	(H) a receipt; or
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571	571	(I) a service agreement.
572	572	280
573	573	(e)(i) For purposes of Subsection (19)(b)(vi), the sales price of tangible personal
574	574	281
575	575	property or a product subject to taxation under this chapter is de minimis if:
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577	577	(A) the seller's purchase price of the tangible personal property or product is 10%
578	578	283
579	579	or less of the seller's total purchase price of the bundled transaction; or
580	580	284
581	581	(B) the seller's sales price of the tangible personal property or product is 10% or
582	582	285
583	583	less of the seller's total sales price of the bundled transaction.
584	584	286
585	585	(ii) For purposes of Subsection (19)(b)(vi), a seller:
586	586	287
587	587	(A) shall use the seller's purchase price or the seller's sales price to determine if
588	588	288
589	589	the purchase price or sales price of the tangible personal property or product
590	590	289
591	591	subject to taxation under this chapter is de minimis; and
592	592	290
593	593	(B) may not use a combination of the seller's purchase price and the seller's sales
594	594	291
595	595	price to determine if the purchase price or sales price of the tangible personal
596	596	292
597	597	property or product subject to taxation under this chapter is de minimis.
598	598	293
599	599	(iii) For purposes of Subsection (19)(b)(vi), a seller shall use the full term of a service
600	600	294
601	601	contract to determine if the sales price of tangible personal property or a product is
602	602	295
603	603	de minimis.
604	604	296
605	605	(f) For purposes of Subsection (19)(b)(vii)(B), a seller may not use a combination of the
606	606	297
607	607	seller's purchase price and the seller's sales price to determine if tangible personal
608	608	298
609	609	property subject to taxation under this chapter is 50% or less of the seller's total
610	610	299
611	611	purchase price or sales price of that retail sale.
612	612	300
613	613	(20) "Car sharing" means the same as that term is defined in Section 13-48a-101.
614	614	301
615	615	(21) "Car-sharing program" means the same as that term is defined in Section 13-48a-101.
616	616	302
617	617	(22) "Certified automated system" means software certified by the governing board of the
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619	619	303
620	620	agreement that:
621	621	304
622	622	(a) calculates the agreement sales and use tax imposed within a local taxing jurisdiction:
623	623	305
624	624	(i) on a transaction; and
625	625	306
626	626	(ii) in the states that are members of the agreement;
627	627	307
628	628	(b) determines the amount of agreement sales and use tax to remit to a state that is a
629	629	308
630	630	member of the agreement; and
631	631	309
632	632	(c) maintains a record of the transaction described in Subsection (22)(a)(i).
633	633	310
634	634	(23) "Certified service provider" means an agent certified:
635	635	311
636	636	(a) by the governing board of the agreement; and
637	637	312
638	638	(b) to perform a seller's sales and use tax functions for an agreement sales and use tax, as
639	639	313
640	640	outlined in the contract between the governing board of the agreement and the
641	641	314
642	642	certified service provider, other than the seller's obligation under Section 59-12-124
643	643	315
644	644	to remit a tax on the seller's own purchases.
645	645	316
646	646	(24)(a) Subject to Subsection (24)(b), "clothing" means all human wearing apparel
647	647	317
648	648	suitable for general use.
649	649	318
650	650	(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
651	651	319
652	652	commission shall make rules:
653	653	320
654	654	(i) listing the items that constitute "clothing"; and
655	655	321
656	656	(ii) that are consistent with the list of items that constitute "clothing" under the
657	657	322
658	658	agreement.
659	659	323
660	660	(25) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
661	661	324
662	662	(26) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels
663	663	325
664	664	that does not constitute industrial use under Subsection [(60)] (61) or residential use
665	665	326
666	666	under Subsection [(115)] (116).
667	667	327
668	668	(27)(a) "Common carrier" means a person engaged in or transacting the business of
669	669	328
670	670	transporting passengers, freight, merchandise, or other property for hire within this
671	671	329
672	672	state.
673	673	330
674	674	(b)(i) "Common carrier" does not include a person that, at the time the person is
675	675	331
676	676	traveling to or from that person's place of employment, transports a passenger to
677	677	332
678	678	or from the passenger's place of employment.
679	679	333
680	680	(ii) For purposes of Subsection (27)(b)(i), in accordance with Title 63G, Chapter 3,
681	681	334
682	682	Utah Administrative Rulemaking Act, the commission may make rules defining
683	683	335
684	684	what constitutes a person's place of employment.
685	685	336
686	686	(c) "Common carrier" does not include a person that provides transportation network
687	687	- 10 - 02-20 10:39 S.B. 311
688	688	337
689	689	services, as defined in Section 13-51-102.
690	690	338
691	691	(28) "Component part" includes:
692	692	339
693	693	(a) poultry, dairy, and other livestock feed, and their components;
694	694	340
695	695	(b) baling ties and twine used in the baling of hay and straw;
696	696	341
697	697	(c) fuel used for providing temperature control of orchards and commercial greenhouses
698	698	342
699	699	doing a majority of their business in wholesale sales, and for providing power for
700	700	343
701	701	off-highway type farm machinery; and
702	702	344
703	703	(d) feed, seeds, and seedlings.
704	704	345
705	705	(29) "Computer" means an electronic device that accepts information:
706	706	346
707	707	(a)(i) in digital form; or
708	708	347
709	709	(ii) in a form similar to digital form; and
710	710	348
711	711	(b) manipulates that information for a result based on a sequence of instructions.
712	712	349
713	713	(30) "Computer software" means a set of coded instructions designed to cause:
714	714	350
715	715	(a) a computer to perform a task; or
716	716	351
717	717	(b) automatic data processing equipment to perform a task.
718	718	352
719	719	(31) "Computer software maintenance contract" means a contract that obligates a seller of
720	720	353
721	721	computer software to provide a customer with:
722	722	354
723	723	(a) future updates or upgrades to computer software;
724	724	355
725	725	(b) support services with respect to computer software; or
726	726	356
727	727	(c) a combination of Subsections (31)(a) and (b).
728	728	357
729	729	(32)(a) "Conference bridging service" means an ancillary service that links two or more
730	730	358
731	731	participants of an audio conference call or video conference call.
732	732	359
733	733	(b) "Conference bridging service" may include providing a telephone number as part of
734	734	360
735	735	the ancillary service described in Subsection (32)(a).
736	736	361
737	737	(c) "Conference bridging service" does not include a telecommunications service used to
738	738	362
739	739	reach the ancillary service described in Subsection (32)(a).
740	740	363
741	741	(33) "Construction materials" means any tangible personal property that will be converted
742	742	364
743	743	into real property.
744	744	365
745	745	(34) "Delivered electronically" means delivered to a purchaser by means other than tangible
746	746	366
747	747	storage media.
748	748	367
749	749	(35)(a) "Delivery charge" means a charge:
750	750	368
751	751	(i) by a seller of:
752	752	369
753	753	(A) tangible personal property;
754	754	370
755	755	(B) a product transferred electronically; or
756	756	- 11 - S.B. 311 02-20 10:39
757	757	371
758	758	(C) a service; and
759	759	372
760	760	(ii) for preparation and delivery of the tangible personal property, product transferred
761	761	373
762	762	electronically, or services described in Subsection (35)(a)(i) to a location
763	763	374
764	764	designated by the purchaser.
765	765	375
766	766	(b) "Delivery charge" includes a charge for the following:
767	767	376
768	768	(i) transportation;
769	769	377
770	770	(ii) shipping;
771	771	378
772	772	(iii) postage;
773	773	379
774	774	(iv) handling;
775	775	380
776	776	(v) crating; or
777	777	381
778	778	(vi) packing.
779	779	382
780	780	(36) "Detailed telecommunications billing service" means an ancillary service of separately
781	781	383
782	782	stating information pertaining to individual calls on a customer's billing statement.
783	783	384
784	784	(37) "Dietary supplement" means a product, other than tobacco, that:
785	785	385
786	786	(a) is intended to supplement the diet;
787	787	386
788	788	(b) contains one or more of the following dietary ingredients:
789	789	387
790	790	(i) a vitamin;
791	791	388
792	792	(ii) a mineral;
793	793	389
794	794	(iii) an herb or other botanical;
795	795	390
796	796	(iv) an amino acid;
797	797	391
798	798	(v) a dietary substance for use by humans to supplement the diet by increasing the
799	799	392
800	800	total dietary intake; or
801	801	393
802	802	(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
803	803	394
804	804	described in Subsections (37)(b)(i) through (v);
805	805	395
806	806	(c)(i) except as provided in Subsection (37)(c)(ii), is intended for ingestion in:
807	807	396
808	808	(A) tablet form;
809	809	397
810	810	(B) capsule form;
811	811	398
812	812	(C) powder form;
813	813	399
814	814	(D) softgel form;
815	815	400
816	816	(E) gelcap form; or
817	817	401
818	818	(F) liquid form; or
819	819	402
820	820	(ii) if the product is not intended for ingestion in a form described in Subsections
821	821	403
822	822	(37)(c)(i)(A) through (F), is not represented:
823	823	404
824	824	(A) as conventional food; and
825	825	- 12 - 02-20 10:39 S.B. 311
826	826	405
827	827	(B) for use as a sole item of:
828	828	406
829	829	(I) a meal; or
830	830	407
831	831	(II) the diet; and
832	832	408
833	833	(d) is required to be labeled as a dietary supplement:
834	834	409
835	835	(i) identifiable by the "Supplemental Facts" box found on the label; and
836	836	410
837	837	(ii) as required by 21 C.F.R. Sec. 101.36.
838	838	411
839	839	(38)(a) "Digital audio work" means a work that results from the fixation of a series of
840	840	412
841	841	musical, spoken, or other sounds.
842	842	413
843	843	(b) "Digital audio work" includes a ringtone.
844	844	414
845	845	(39) "Digital audio-visual work" means a series of related images which, when shown in
846	846	415
847	847	succession, imparts an impression of motion, together with accompanying sounds, if any.
848	848	416
849	849	(40) "Digital book" means a work that is generally recognized in the ordinary and usual
850	850	417
851	851	sense as a book.
852	852	418
853	853	(41)(a) "Direct mail" means printed material delivered or distributed by United States
854	854	419
855	855	mail or other delivery service:
856	856	420
857	857	(i) to:
858	858	421
859	859	(A) a mass audience; or
860	860	422
861	861	(B) addressees on a mailing list provided:
862	862	423
863	863	(I) by a purchaser of the mailing list; or
864	864	424
865	865	(II) at the discretion of the purchaser of the mailing list; and
866	866	425
867	867	(ii) if the cost of the printed material is not billed directly to the recipients.
868	868	426
869	869	(b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
870	870	427
871	871	purchaser to a seller of direct mail for inclusion in a package containing the printed
872	872	428
873	873	material.
874	874	429
875	875	(c) "Direct mail" does not include multiple items of printed material delivered to a single
876	876	430
877	877	address.
878	878	431
879	879	(42) "Directory assistance" means an ancillary service of providing:
880	880	432
881	881	(a) address information; or
882	882	433
883	883	(b) telephone number information.
884	884	434
885	885	(43)(a) "Disposable home medical equipment or supplies" means medical equipment or
886	886	435
887	887	supplies that:
888	888	436
889	889	(i) cannot withstand repeated use; and
890	890	437
891	891	(ii) are purchased by, for, or on behalf of a person other than:
892	892	438
893	893	(A) a health care facility as defined in Section 26B-2-201;
894	894	- 13 - S.B. 311 02-20 10:39
895	895	439
896	896	(B) a health care provider as defined in Section 78B-3-403;
897	897	440
898	898	(C) an office of a health care provider described in Subsection (43)(a)(ii)(B); or
899	899	441
900	900	(D) a person similar to a person described in Subsections (43)(a)(ii)(A) through
901	901	442
902	902	(C).
903	903	443
904	904	(b) "Disposable home medical equipment or supplies" does not include:
905	905	444
906	906	(i) a drug;
907	907	445
908	908	(ii) durable medical equipment;
909	909	446
910	910	(iii) a hearing aid;
911	911	447
912	912	(iv) a hearing aid accessory;
913	913	448
914	914	(v) mobility enhancing equipment; or
915	915	449
916	916	(vi) tangible personal property used to correct impaired vision, including:
917	917	450
918	918	(A) eyeglasses; or
919	919	451
920	920	(B) contact lenses.
921	921	452
922	922	(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
923	923	453
924	924	commission may by rule define what constitutes medical equipment or supplies.
925	925	454
926	926	(44) "Drilling equipment manufacturer" means a facility:
927	927	455
928	928	(a) located in the state;
929	929	456
930	930	(b) with respect to which 51% or more of the manufacturing activities of the facility
931	931	457
932	932	consist of manufacturing component parts of drilling equipment;
933	933	458
934	934	(c) that uses pressure of 800,000 or more pounds per square inch as part of the
935	935	459
936	936	manufacturing process; and
937	937	460
938	938	(d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
939	939	461
940	940	manufacturing process.
941	941	462
942	942	(45)(a) "Drug" means a compound, substance, or preparation, or a component of a
943	943	463
944	944	compound, substance, or preparation that is:
945	945	464
946	946	(i) recognized in:
947	947	465
948	948	(A) the official United States Pharmacopoeia;
949	949	466
950	950	(B) the official Homeopathic Pharmacopoeia of the United States;
951	951	467
952	952	(C) the official National Formulary; or
953	953	468
954	954	(D) a supplement to a publication listed in Subsections (45)(a)(i)(A) through (C);
955	955	469
956	956	(ii) intended for use in the:
957	957	470
958	958	(A) diagnosis of disease;
959	959	471
960	960	(B) cure of disease;
961	961	472
962	962	(C) mitigation of disease;
963	963	- 14 - 02-20 10:39 S.B. 311
964	964	473
965	965	(D) treatment of disease; or
966	966	474
967	967	(E) prevention of disease; or
968	968	475
969	969	(iii) intended to affect:
970	970	476
971	971	(A) the structure of the body; or
972	972	477
973	973	(B) any function of the body.
974	974	478
975	975	(b) "Drug" does not include:
976	976	479
977	977	(i) food and food ingredients;
978	978	480
979	979	(ii) a dietary supplement;
980	980	481
981	981	(iii) an alcoholic beverage; or
982	982	482
983	983	(iv) a prosthetic device.
984	984	483
985	985	(46)(a) "Durable medical equipment" means equipment that:
986	986	484
987	987	(i) can withstand repeated use;
988	988	485
989	989	(ii) is primarily and customarily used to serve a medical purpose;
990	990	486
991	991	(iii) generally is not useful to a person in the absence of illness or injury; and
992	992	487
993	993	(iv) is not worn in or on the body.
994	994	488
995	995	(b) "Durable medical equipment" includes parts used in the repair or replacement of the
996	996	489
997	997	equipment described in Subsection (46)(a).
998	998	490
999	999	(c) "Durable medical equipment" does not include mobility enhancing equipment.
1000	1000	491
1001	1001	(47) "Electric storage facility" means a facility that stores electricity and has a storage
1002	1002	492
1003	1003	capacity of two megawatts or greater, regardless of whether the facility is:
1004	1004	493
1005	1005	(a) connected to an electric grid;
1006	1006	494
1007	1007	(b) part of an alternative energy electricity production facility or other electricity
1008	1008	495
1009	1009	production facility; or
1010	1010	496
1011	1011	(c) located on the premises of an electricity consumer.
1012	1012	497
1013	1013	[(47)] (48) "Electronic" means:
1014	1014	498
1015	1015	(a) relating to technology; and
1016	1016	499
1017	1017	(b) having:
1018	1018	500
1019	1019	(i) electrical capabilities;
1020	1020	501
1021	1021	(ii) digital capabilities;
1022	1022	502
1023	1023	(iii) magnetic capabilities;
1024	1024	503
1025	1025	(iv) wireless capabilities;
1026	1026	504
1027	1027	(v) optical capabilities;
1028	1028	505
1029	1029	(vi) electromagnetic capabilities; or
1030	1030	506
1031	1031	(vii) capabilities similar to Subsections [(47)(b)(i)] (48)(b)(i) through (vi).
1032	1032	- 15 - S.B. 311 02-20 10:39
1033	1033	507
1034	1034	[(48)] (49) "Electronic financial payment service" means an establishment:
1035	1035	508
1036	1036	(a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
1037	1037	509
1038	1038	Clearinghouse Activities, of the 2012 North American Industry Classification System
1039	1039	510
1040	1040	of the federal Executive Office of the President, Office of Management and Budget;
1041	1041	511
1042	1042	and
1043	1043	512
1044	1044	(b) that performs electronic financial payment services.
1045	1045	513
1046	1046	[(49)] (50) "Employee" means the same as that term is defined in Section 59-10-401.
1047	1047	514
1048	1048	[(50)] (51) "Fixed guideway" means a public transit facility that uses and occupies:
1049	1049	515
1050	1050	(a) rail for the use of public transit; or
1051	1051	516
1052	1052	(b) a separate right-of-way for the use of public transit.
1053	1053	517
1054	1054	[(51)] (52) "Fixed wing turbine powered aircraft" means an aircraft that:
1055	1055	518
1056	1056	(a) is powered by turbine engines;
1057	1057	519
1058	1058	(b) operates on jet fuel; and
1059	1059	520
1060	1060	(c) has wings that are permanently attached to the fuselage of the aircraft.
1061	1061	521
1062	1062	[(52)] (53) "Fixed wireless service" means a telecommunications service that provides radio
1063	1063	522
1064	1064	communication between fixed points.
1065	1065	523
1066	1066	[(53)] (54)(a) "Food and food ingredients" means substances:
1067	1067	524
1068	1068	(i) regardless of whether the substances are in:
1069	1069	525
1070	1070	(A) liquid form;
1071	1071	526
1072	1072	(B) concentrated form;
1073	1073	527
1074	1074	(C) solid form;
1075	1075	528
1076	1076	(D) frozen form;
1077	1077	529
1078	1078	(E) dried form; or
1079	1079	530
1080	1080	(F) dehydrated form; and
1081	1081	531
1082	1082	(ii) that are:
1083	1083	532
1084	1084	(A) sold for:
1085	1085	533
1086	1086	(I) ingestion by humans; or
1087	1087	534
1088	1088	(II) chewing by humans; and
1089	1089	535
1090	1090	(B) consumed for the substance's:
1091	1091	536
1092	1092	(I) taste; or
1093	1093	537
1094	1094	(II) nutritional value.
1095	1095	538
1096	1096	(b) "Food and food ingredients" includes an item described in Subsection [(99)(b)(iii)]
1097	1097	539
1098	1098	(100)(b)(iii).
1099	1099	540
1100	1100	(c) "Food and food ingredients" does not include:
1101	1101	- 16 - 02-20 10:39 S.B. 311
1102	1102	541
1103	1103	(i) an alcoholic beverage;
1104	1104	542
1105	1105	(ii) tobacco; or
1106	1106	543
1107	1107	(iii) prepared food.
1108	1108	544
1109	1109	[(54)] (55)(a) "Fundraising sales" means sales:
1110	1110	545
1111	1111	(i)(A) made by a school; or
1112	1112	546
1113	1113	(B) made by a school student;
1114	1114	547
1115	1115	(ii) that are for the purpose of raising funds for the school to purchase equipment,
1116	1116	548
1117	1117	materials, or provide transportation; and
1118	1118	549
1119	1119	(iii) that are part of an officially sanctioned school activity.
1120	1120	550
1121	1121	(b) For purposes of Subsection [(54)(a)(iii)] (55)(a)(iii), "officially sanctioned school
1122	1122	551
1123	1123	activity" means a school activity:
1124	1124	552
1125	1125	(i) that is conducted in accordance with a formal policy adopted by the school or
1126	1126	553
1127	1127	school district governing the authorization and supervision of fundraising
1128	1128	554
1129	1129	activities;
1130	1130	555
1131	1131	(ii) that does not directly or indirectly compensate an individual teacher or other
1132	1132	556
1133	1133	educational personnel by direct payment, commissions, or payment in kind; and
1134	1134	557
1135	1135	(iii) the net or gross revenue from which is deposited in a dedicated account
1136	1136	558
1137	1137	controlled by the school or school district.
1138	1138	559
1139	1139	[(55)] (56) "Geothermal energy" means energy contained in heat that continuously flows
1140	1140	560
1141	1141	outward from the earth that is used as the sole source of energy to produce electricity.
1142	1142	561
1143	1143	[(56)] (57) "Governing board of the agreement" means the governing board of the
1144	1144	562
1145	1145	agreement that is:
1146	1146	563
1147	1147	(a) authorized to administer the agreement; and
1148	1148	564
1149	1149	(b) established in accordance with the agreement.
1150	1150	565
1151	1151	[(57)] (58)(a) For purposes of Subsection 59-12-104(41), "governmental entity" means:
1152	1152	566
1153	1153	(i) the executive branch of the state, including all departments, institutions, boards,
1154	1154	567
1155	1155	divisions, bureaus, offices, commissions, and committees;
1156	1156	568
1157	1157	(ii) the judicial branch of the state, including the courts, the Judicial Council, the
1158	1158	569
1159	1159	Administrative Office of the Courts, and similar administrative units in the
1160	1160	570
1161	1161	judicial branch;
1162	1162	571
1163	1163	(iii) the legislative branch of the state, including the House of Representatives, the
1164	1164	572
1165	1165	Senate, the Legislative Printing Office, the Office of Legislative Research and
1166	1166	573
1167	1167	General Counsel, the Office of the Legislative Auditor General, and the Office of
1168	1168	574
1169	1169	the Legislative Fiscal Analyst;
1170	1170	- 17 - S.B. 311 02-20 10:39
1171	1171	575
1172	1172	(iv) the National Guard;
1173	1173	576
1174	1174	(v) an independent entity as defined in Section 63E-1-102; or
1175	1175	577
1176	1176	(vi) a political subdivision as defined in Section 17B-1-102.
1177	1177	578
1178	1178	(b) "Governmental entity" does not include the state systems of public and higher
1179	1179	579
1180	1180	education, including:
1181	1181	580
1182	1182	(i) a school;
1183	1183	581
1184	1184	(ii) the State Board of Education;
1185	1185	582
1186	1186	(iii) the Utah Board of Higher Education; or
1187	1187	583
1188	1188	(iv) an institution of higher education described in Section 53B-1-102.
1189	1189	584
1190	1190	[(58)] (59) "Hydroelectric energy" means water used as the sole source of energy to produce
1191	1191	585
1192	1192	electricity.
1193	1193	586
1194	1194	[(59)] (60) "Individual-owned shared vehicle" means the same as that term is defined in
1195	1195	587
1196	1196	Section 13-48a-101.
1197	1197	588
1198	1198	[(60)] (61) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
1199	1199	589
1200	1200	other fuels:
1201	1201	590
1202	1202	(a) in mining or extraction of minerals;
1203	1203	591
1204	1204	(b) in agricultural operations to produce an agricultural product up to the time of harvest
1205	1205	592
1206	1206	or placing the agricultural product into a storage facility, including:
1207	1207	593
1208	1208	(i) commercial greenhouses;
1209	1209	594
1210	1210	(ii) irrigation pumps;
1211	1211	595
1212	1212	(iii) farm machinery;
1213	1213	596
1214	1214	(iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
1215	1215	597
1216	1216	under Title 41, Chapter 1a, Part 2, Registration; and
1217	1217	598
1218	1218	(v) other farming activities;
1219	1219	599
1220	1220	(c) in manufacturing tangible personal property at an establishment described in:
1221	1221	600
1222	1222	(i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
1223	1223	601
1224	1224	the federal Executive Office of the President, Office of Management and Budget;
1225	1225	602
1226	1226	or
1227	1227	603
1228	1228	(ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
1229	1229	604
1230	1230	American Industry Classification System of the federal Executive Office of the
1231	1231	605
1232	1232	President, Office of Management and Budget;
1233	1233	606
1234	1234	(d) by a scrap recycler if:
1235	1235	607
1236	1236	(i) from a fixed location, the scrap recycler utilizes machinery or equipment to
1237	1237	608
1238	1238	process one or more of the following items into prepared grades of processed
1239	1239	- 18 - 02-20 10:39 S.B. 311
1240	1240	609
1241	1241	materials for use in new products:
1242	1242	610
1243	1243	(A) iron;
1244	1244	611
1245	1245	(B) steel;
1246	1246	612
1247	1247	(C) nonferrous metal;
1248	1248	613
1249	1249	(D) paper;
1250	1250	614
1251	1251	(E) glass;
1252	1252	615
1253	1253	(F) plastic;
1254	1254	616
1255	1255	(G) textile; or
1256	1256	617
1257	1257	(H) rubber; and
1258	1258	618
1259	1259	(ii) the new products under Subsection [(60)(d)(i)] (61)(d)(i) would otherwise be
1260	1260	619
1261	1261	made with nonrecycled materials; or
1262	1262	620
1263	1263	(e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
1264	1264	621
1265	1265	cogeneration facility as defined in Section 54-2-1.
1266	1266	622
1267	1267	[(61)] (62)(a) "Installation charge" means a charge for installing:
1268	1268	623
1269	1269	(i) tangible personal property; or
1270	1270	624
1271	1271	(ii) a product transferred electronically.
1272	1272	625
1273	1273	(b) "Installation charge" does not include a charge for:
1274	1274	626
1275	1275	(i) repairs or renovations of:
1276	1276	627
1277	1277	(A) tangible personal property; or
1278	1278	628
1279	1279	(B) a product transferred electronically; or
1280	1280	629
1281	1281	(ii) attaching tangible personal property or a product transferred electronically:
1282	1282	630
1283	1283	(A) to other tangible personal property; and
1284	1284	631
1285	1285	(B) as part of a manufacturing or fabrication process.
1286	1286	632
1287	1287	[(62)] (63) "Institution of higher education" means an institution of higher education listed
1288	1288	633
1289	1289	in Section 53B-2-101.
1290	1290	634
1291	1291	[(63)] (64)(a) "Lease" or "rental" means a transfer of possession or control of tangible
1292	1292	635
1293	1293	personal property or a product transferred electronically for:
1294	1294	636
1295	1295	(i)(A) a fixed term; or
1296	1296	637
1297	1297	(B) an indeterminate term; and
1298	1298	638
1299	1299	(ii) consideration.
1300	1300	639
1301	1301	(b) "Lease" or "rental" includes:
1302	1302	640
1303	1303	(i) an agreement covering a motor vehicle and trailer if the amount of consideration
1304	1304	641
1305	1305	may be increased or decreased by reference to the amount realized upon sale or
1306	1306	642
1307	1307	disposition of the property as defined in Section 7701(h)(1), Internal Revenue
1308	1308	- 19 - S.B. 311 02-20 10:39
1309	1309	643
1310	1310	Code; and
1311	1311	644
1312	1312	(ii) car sharing.
1313	1313	645
1314	1314	(c) "Lease" or "rental" does not include:
1315	1315	646
1316	1316	(i) a transfer of possession or control of property under a security agreement or
1317	1317	647
1318	1318	deferred payment plan that requires the transfer of title upon completion of the
1319	1319	648
1320	1320	required payments;
1321	1321	649
1322	1322	(ii) a transfer of possession or control of property under an agreement that requires
1323	1323	650
1324	1324	the transfer of title:
1325	1325	651
1326	1326	(A) upon completion of required payments; and
1327	1327	652
1328	1328	(B) if the payment of an option price does not exceed the greater of:
1329	1329	653
1330	1330	(I) $100; or
1331	1331	654
1332	1332	(II) 1% of the total required payments; or
1333	1333	655
1334	1334	(iii) providing tangible personal property along with an operator for a fixed period of
1335	1335	656
1336	1336	time or an indeterminate period of time if the operator is necessary for equipment
1337	1337	657
1338	1338	to perform as designed.
1339	1339	658
1340	1340	(d) For purposes of Subsection [(63)(c)(iii)] (64)(c)(iii), an operator is necessary for
1341	1341	659
1342	1342	equipment to perform as designed if the operator's duties exceed the:
1343	1343	660
1344	1344	(i) set-up of tangible personal property;
1345	1345	661
1346	1346	(ii) maintenance of tangible personal property; or
1347	1347	662
1348	1348	(iii) inspection of tangible personal property.
1349	1349	663
1350	1350	[(64)] (65) "Lesson" means a fixed period of time for the duration of which a trained
1351	1351	664
1352	1352	instructor:
1353	1353	665
1354	1354	(a) is present with a student in person or by video; and
1355	1355	666
1356	1356	(b) actively instructs the student, including by providing observation or feedback.
1357	1357	667
1358	1358	[(65)] (66) "Life science establishment" means an establishment in this state that is
1359	1359	668
1360	1360	classified under the following NAICS codes of the 2007 North American Industry
1361	1361	669
1362	1362	Classification System of the federal Executive Office of the President, Office of
1363	1363	670
1364	1364	Management and Budget:
1365	1365	671
1366	1366	(a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
1367	1367	672
1368	1368	(b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
1369	1369	673
1370	1370	Manufacturing; or
1371	1371	674
1372	1372	(c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
1373	1373	675
1374	1374	[(66)] (67) "Life science research and development facility" means a facility owned, leased,
1375	1375	676
1376	1376	or rented by a life science establishment if research and development is performed in
1377	1377	- 20 - 02-20 10:39 S.B. 311
1378	1378	677
1379	1379	51% or more of the total area of the facility.
1380	1380	678
1381	1381	[(67)] (68) "Load and leave" means delivery to a purchaser by use of a tangible storage
1382	1382	679
1383	1383	media if the tangible storage media is not physically transferred to the purchaser.
1384	1384	680
1385	1385	[(68)] (69) "Local taxing jurisdiction" means a:
1386	1386	681
1387	1387	(a) county that is authorized to impose an agreement sales and use tax;
1388	1388	682
1389	1389	(b) city that is authorized to impose an agreement sales and use tax; or
1390	1390	683
1391	1391	(c) town that is authorized to impose an agreement sales and use tax.
1392	1392	684
1393	1393	[(69)] (70) "Manufactured home" means the same as that term is defined in Section
1394	1394	685
1395	1395	15A-1-302.
1396	1396	686
1397	1397	[(70)] (71) "Manufacturing facility" means:
1398	1398	687
1399	1399	(a) an establishment described in:
1400	1400	688
1401	1401	(i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
1402	1402	689
1403	1403	the federal Executive Office of the President, Office of Management and Budget;
1404	1404	690
1405	1405	or
1406	1406	691
1407	1407	(ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
1408	1408	692
1409	1409	American Industry Classification System of the federal Executive Office of the
1410	1410	693
1411	1411	President, Office of Management and Budget;
1412	1412	694
1413	1413	(b) a scrap recycler if:
1414	1414	695
1415	1415	(i) from a fixed location, the scrap recycler utilizes machinery or equipment to
1416	1416	696
1417	1417	process one or more of the following items into prepared grades of processed
1418	1418	697
1419	1419	materials for use in new products:
1420	1420	698
1421	1421	(A) iron;
1422	1422	699
1423	1423	(B) steel;
1424	1424	700
1425	1425	(C) nonferrous metal;
1426	1426	701
1427	1427	(D) paper;
1428	1428	702
1429	1429	(E) glass;
1430	1430	703
1431	1431	(F) plastic;
1432	1432	704
1433	1433	(G) textile; or
1434	1434	705
1435	1435	(H) rubber; and
1436	1436	706
1437	1437	(ii) the new products under Subsection [(70)(b)(i)] (71)(b)(i) would otherwise be
1438	1438	707
1439	1439	made with nonrecycled materials; or
1440	1440	708
1441	1441	(c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
1442	1442	709
1443	1443	placed in service on or after May 1, 2006.
1444	1444	710
1445	1445	[(71)] (72)(a) "Marketplace" means a physical or electronic place, platform, or forum
1446	1446	- 21 - S.B. 311 02-20 10:39
1447	1447	711
1448	1448	where tangible personal property, a product transferred electronically, or a service is
1449	1449	712
1450	1450	offered for sale.
1451	1451	713
1452	1452	(b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a dedicated
1453	1453	714
1454	1454	sales software application.
1455	1455	715
1456	1456	[(72)] (73)(a) "Marketplace facilitator" means a person, including an affiliate of the
1457	1457	716
1458	1458	person, that enters into a contract, an agreement, or otherwise with sellers, for
1459	1459	717
1460	1460	consideration, to facilitate the sale of a seller's product through a marketplace that the
1461	1461	718
1462	1462	person owns, operates, or controls and that directly or indirectly:
1463	1463	719
1464	1464	(i) does any of the following:
1465	1465	720
1466	1466	(A) lists, makes available, or advertises tangible personal property, a product
1467	1467	721
1468	1468	transferred electronically, or a service for sale by a marketplace seller on a
1469	1469	722
1470	1470	marketplace that the person owns, operates, or controls;
1471	1471	723
1472	1472	(B) facilitates the sale of a marketplace seller's tangible personal property, product
1473	1473	724
1474	1474	transferred electronically, or service by transmitting or otherwise
1475	1475	725
1476	1476	communicating an offer or acceptance of a retail sale between the marketplace
1477	1477	726
1478	1478	seller and a purchaser using the marketplace;
1479	1479	727
1480	1480	(C) owns, rents, licenses, makes available, or operates any electronic or physical
1481	1481	728
1482	1482	infrastructure or any property, process, method, copyright, trademark, or patent
1483	1483	729
1484	1484	that connects a marketplace seller to a purchaser for the purpose of making a
1485	1485	730
1486	1486	retail sale of tangible personal property, a product transferred electronically, or
1487	1487	731
1488	1488	a service;
1489	1489	732
1490	1490	(D) provides a marketplace for making, or otherwise facilitates, a retail sale of
1491	1491	733
1492	1492	tangible personal property, a product transferred electronically, or a service,
1493	1493	734
1494	1494	regardless of ownership or control of the tangible personal property, the
1495	1495	735
1496	1496	product transferred electronically, or the service that is the subject of the retail
1497	1497	736
1498	1498	sale;
1499	1499	737
1500	1500	(E) provides software development or research and development activities related
1501	1501	738
1502	1502	to any activity described in this Subsection [(72)(a)(i)] (73)(a)(i), if the software
1503	1503	739
1504	1504	development or research and development activity is directly related to the
1505	1505	740
1506	1506	person's marketplace;
1507	1507	741
1508	1508	(F) provides or offers fulfillment or storage services for a marketplace seller;
1509	1509	742
1510	1510	(G) sets prices for the sale of tangible personal property, a product transferred
1511	1511	743
1512	1512	electronically, or a service by a marketplace seller;
1513	1513	744
1514	1514	(H) provides or offers customer service to a marketplace seller or a marketplace
1515	1515	- 22 - 02-20 10:39 S.B. 311
1516	1516	745
1517	1517	seller's purchaser or accepts or assists with taking orders, returns, or exchanges
1518	1518	746
1519	1519	of tangible personal property, a product transferred electronically, or a service
1520	1520	747
1521	1521	sold by a marketplace seller on the person's marketplace; or
1522	1522	748
1523	1523	(I) brands or otherwise identifies sales as those of the person; and
1524	1524	749
1525	1525	(ii) does any of the following:
1526	1526	750
1527	1527	(A) collects the sales price or purchase price of a retail sale of tangible personal
1528	1528	751
1529	1529	property, a product transferred electronically, or a service;
1530	1530	752
1531	1531	(B) provides payment processing services for a retail sale of tangible personal
1532	1532	753
1533	1533	property, a product transferred electronically, or a service;
1534	1534	754
1535	1535	(C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee,
1536	1536	755
1537	1537	closing fee, a fee for inserting or making available tangible personal property, a
1538	1538	756
1539	1539	product transferred electronically, or a service on the person's marketplace, or
1540	1540	757
1541	1541	other consideration for the facilitation of a retail sale of tangible personal
1542	1542	758
1543	1543	property, a product transferred electronically, or a service, regardless of
1544	1544	759
1545	1545	ownership or control of the tangible personal property, the product transferred
1546	1546	760
1547	1547	electronically, or the service that is the subject of the retail sale;
1548	1548	761
1549	1549	(D) through terms and conditions, an agreement, or another arrangement with a
1550	1550	762
1551	1551	third person, collects payment from a purchase for a retail sale of tangible
1552	1552	763
1553	1553	personal property, a product transferred electronically, or a service and
1554	1554	764
1555	1555	transmits that payment to the marketplace seller, regardless of whether the
1556	1556	765
1557	1557	third person receives compensation or other consideration in exchange for the
1558	1558	766
1559	1559	service; or
1560	1560	767
1561	1561	(E) provides a virtual currency for a purchaser to use to purchase tangible personal
1562	1562	768
1563	1563	property, a product transferred electronically, or service offered for sale.
1564	1564	769
1565	1565	(b) "Marketplace facilitator" does not include:
1566	1566	770
1567	1567	(i) a person that only provides payment processing services; or
1568	1568	771
1569	1569	(ii) a person described in Subsection [(72)(a)] (73)(a) to the extent the person is
1570	1570	772
1571	1571	facilitating a sale for a seller that is a restaurant as defined in Section 59-12-602.
1572	1572	773
1573	1573	[(73)] (74) "Marketplace seller" means a seller that makes one or more retail sales through a
1574	1574	774
1575	1575	marketplace that a marketplace facilitator owns, operates, or controls, regardless of
1576	1576	775
1577	1577	whether the seller is required to be registered to collect and remit the tax under this part.
1578	1578	776
1579	1579	[(74)] (75) "Member of the immediate family of the producer" means a person who is
1580	1580	777
1581	1581	related to a producer described in Subsection 59-12-104(20)(a) as a:
1582	1582	778
1583	1583	(a) child or stepchild, regardless of whether the child or stepchild is:
1584	1584	- 23 - S.B. 311 02-20 10:39
1585	1585	779
1586	1586	(i) an adopted child or adopted stepchild; or
1587	1587	780
1588	1588	(ii) a foster child or foster stepchild;
1589	1589	781
1590	1590	(b) grandchild or stepgrandchild;
1591	1591	782
1592	1592	(c) grandparent or stepgrandparent;
1593	1593	783
1594	1594	(d) nephew or stepnephew;
1595	1595	784
1596	1596	(e) niece or stepniece;
1597	1597	785
1598	1598	(f) parent or stepparent;
1599	1599	786
1600	1600	(g) sibling or stepsibling;
1601	1601	787
1602	1602	(h) spouse;
1603	1603	788
1604	1604	(i) person who is the spouse of a person described in Subsections [(74)(a)] (75)(a)
1605	1605	789
1606	1606	through (g); or
1607	1607	790
1608	1608	(j) person similar to a person described in Subsections [(74)(a)] (75)(a) through (i) as
1609	1609	791
1610	1610	determined by the commission by rule made in accordance with Title 63G, Chapter 3,
1611	1611	792
1612	1612	Utah Administrative Rulemaking Act.
1613	1613	793
1614	1614	[(75)] (76) "Mobile home" means the same as that term is defined in Section 15A-1-302.
1615	1615	794
1616	1616	[(76)] (77) "Mobile telecommunications service" means the same as that term is defined in
1617	1617	795
1618	1618	the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1619	1619	796
1620	1620	[(77)] (78)(a) "Mobile wireless service" means a telecommunications service, regardless
1621	1621	797
1622	1622	of the technology used, if:
1623	1623	798
1624	1624	(i) the origination point of the conveyance, routing, or transmission is not fixed;
1625	1625	799
1626	1626	(ii) the termination point of the conveyance, routing, or transmission is not fixed; or
1627	1627	800
1628	1628	(iii) the origination point described in Subsection [(77)(a)(i)] (78)(a)(i) and the
1629	1629	801
1630	1630	termination point described in Subsection [(77)(a)(ii)] (78)(a)(ii) are not fixed.
1631	1631	802
1632	1632	(b) "Mobile wireless service" includes a telecommunications service that is provided by
1633	1633	803
1634	1634	a commercial mobile radio service provider.
1635	1635	804
1636	1636	(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1637	1637	805
1638	1638	commission may by rule define "commercial mobile radio service provider."
1639	1639	806
1640	1640	[(78)] (79)(a) "Mobility enhancing equipment" means equipment that is:
1641	1641	807
1642	1642	(i) primarily and customarily used to provide or increase the ability to move from one
1643	1643	808
1644	1644	place to another;
1645	1645	809
1646	1646	(ii) appropriate for use in a:
1647	1647	810
1648	1648	(A) home; or
1649	1649	811
1650	1650	(B) motor vehicle; and
1651	1651	812
1652	1652	(iii) not generally used by persons with normal mobility.
1653	1653	- 24 - 02-20 10:39 S.B. 311
1654	1654	813
1655	1655	(b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
1656	1656	814
1657	1657	the equipment described in Subsection [(78)(a)] (79)(a).
1658	1658	815
1659	1659	(c) "Mobility enhancing equipment" does not include:
1660	1660	816
1661	1661	(i) a motor vehicle;
1662	1662	817
1663	1663	(ii) equipment on a motor vehicle if that equipment is normally provided by the
1664	1664	818
1665	1665	motor vehicle manufacturer;
1666	1666	819
1667	1667	(iii) durable medical equipment; or
1668	1668	820
1669	1669	(iv) a prosthetic device.
1670	1670	821
1671	1671	[(79)] (80) "Model 1 seller" means a seller registered under the agreement that has selected a
1672	1672	822
1673	1673	certified service provider as the seller's agent to perform the seller's sales and use tax
1674	1674	823
1675	1675	functions for agreement sales and use taxes, as outlined in the contract between the
1676	1676	824
1677	1677	governing board of the agreement and the certified service provider, other than the
1678	1678	825
1679	1679	seller's obligation under Section 59-12-124 to remit a tax on the seller's own purchases.
1680	1680	826
1681	1681	[(80)] (81) "Model 2 seller" means a seller registered under the agreement that:
1682	1682	827
1683	1683	(a) except as provided in Subsection [(80)(b)] (81)(b), has selected a certified automated
1684	1684	828
1685	1685	system to perform the seller's sales tax functions for agreement sales and use taxes;
1686	1686	829
1687	1687	and
1688	1688	830
1689	1689	(b) retains responsibility for remitting all of the sales tax:
1690	1690	831
1691	1691	(i) collected by the seller; and
1692	1692	832
1693	1693	(ii) to the appropriate local taxing jurisdiction.
1694	1694	833
1695	1695	[(81)] (82)(a) Subject to Subsection [(81)(b)] (82)(b), "model 3 seller" means a seller
1696	1696	834
1697	1697	registered under the agreement that has:
1698	1698	835
1699	1699	(i) sales in at least five states that are members of the agreement;
1700	1700	836
1701	1701	(ii) total annual sales revenue of at least $500,000,000;
1702	1702	837
1703	1703	(iii) a proprietary system that calculates the amount of tax:
1704	1704	838
1705	1705	(A) for an agreement sales and use tax; and
1706	1706	839
1707	1707	(B) due to each local taxing jurisdiction; and
1708	1708	840
1709	1709	(iv) entered into a performance agreement with the governing board of the agreement.
1710	1710	841
1711	1711	(b) For purposes of Subsection [(81)(a)] (82)(a), "model 3 seller" includes an affiliated
1712	1712	842
1713	1713	group of sellers using the same proprietary system.
1714	1714	843
1715	1715	[(82)] (83) "Model 4 seller" means a seller that is registered under the agreement and is not a
1716	1716	844
1717	1717	model 1 seller, model 2 seller, or model 3 seller.
1718	1718	845
1719	1719	[(83)] (84) "Modular home" means a modular unit as defined in Section 15A-1-302.
1720	1720	846
1721	1721	[(84)] (85) "Motor vehicle" means the same as that term is defined in Section 41-1a-102.
1722	1722	- 25 - S.B. 311 02-20 10:39
1723	1723	847
1724	1724	[(85)] (86) "Oil sands" means impregnated bituminous sands that:
1725	1725	848
1726	1726	(a) contain a heavy, thick form of petroleum that is released when heated, mixed with
1727	1727	849
1728	1728	other hydrocarbons, or otherwise treated;
1729	1729	850
1730	1730	(b) yield mixtures of liquid hydrocarbon; and
1731	1731	851
1732	1732	(c) require further processing other than mechanical blending before becoming finished
1733	1733	852
1734	1734	petroleum products.
1735	1735	853
1736	1736	[(86)] (87) "Oil shale" means a group of fine black to dark brown shales containing kerogen
1737	1737	854
1738	1738	material that yields petroleum upon heating and distillation.
1739	1739	855
1740	1740	[(87)] (88) "Optional computer software maintenance contract" means a computer software
1741	1741	856
1742	1742	maintenance contract that a customer is not obligated to purchase as a condition to the
1743	1743	857
1744	1744	retail sale of computer software.
1745	1745	858
1746	1746	[(88)] (89)(a) "Other fuels" means products that burn independently to produce heat or
1747	1747	859
1748	1748	energy.
1749	1749	860
1750	1750	(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
1751	1751	861
1752	1752	personal property.
1753	1753	862
1754	1754	[(89)] (90)(a) "Paging service" means a telecommunications service that provides
1755	1755	863
1756	1756	transmission of a coded radio signal for the purpose of activating a specific pager.
1757	1757	864
1758	1758	(b) For purposes of Subsection [(89)(a)] (90)(a), the transmission of a coded radio signal
1759	1759	865
1760	1760	includes a transmission by message or sound.
1761	1761	866
1762	1762	[(90)] (91) "Pawn transaction" means the same as that term is defined in Section 13-32a-102.
1763	1763	867
1764	1764	[(91)] (92) "Pawnbroker" means the same as that term is defined in Section 13-32a-102.
1765	1765	868
1766	1766	[(92)] (93)(a) "Permanently attached to real property" means that for tangible personal
1767	1767	869
1768	1768	property attached to real property:
1769	1769	870
1770	1770	(i) the attachment of the tangible personal property to the real property:
1771	1771	871
1772	1772	(A) is essential to the use of the tangible personal property; and
1773	1773	872
1774	1774	(B) suggests that the tangible personal property will remain attached to the real
1775	1775	873
1776	1776	property in the same place over the useful life of the tangible personal
1777	1777	874
1778	1778	property; or
1779	1779	875
1780	1780	(ii) if the tangible personal property is detached from the real property, the
1781	1781	876
1782	1782	detachment would:
1783	1783	877
1784	1784	(A) cause substantial damage to the tangible personal property; or
1785	1785	878
1786	1786	(B) require substantial alteration or repair of the real property to which the
1787	1787	879
1788	1788	tangible personal property is attached.
1789	1789	880
1790	1790	(b) "Permanently attached to real property" includes:
1791	1791	- 26 - 02-20 10:39 S.B. 311
1792	1792	881
1793	1793	(i) the attachment of an accessory to the tangible personal property if the accessory is:
1794	1794	882
1795	1795	(A) essential to the operation of the tangible personal property; and
1796	1796	883
1797	1797	(B) attached only to facilitate the operation of the tangible personal property;
1798	1798	884
1799	1799	(ii) a temporary detachment of tangible personal property from real property for a
1800	1800	885
1801	1801	repair or renovation if the repair or renovation is performed where the tangible
1802	1802	886
1803	1803	personal property and real property are located; or
1804	1804	887
1805	1805	(iii) property attached to oil, gas, or water pipelines, except for the property listed in
1806	1806	888
1807	1807	Subsection [(92)(c)(iii)] (93)(c)(iii) or (iv).
1808	1808	889
1809	1809	(c) "Permanently attached to real property" does not include:
1810	1810	890
1811	1811	(i) the attachment of portable or movable tangible personal property to real property
1812	1812	891
1813	1813	if that portable or movable tangible personal property is attached to real property
1814	1814	892
1815	1815	only for:
1816	1816	893
1817	1817	(A) convenience;
1818	1818	894
1819	1819	(B) stability; or
1820	1820	895
1821	1821	(C) for an obvious temporary purpose;
1822	1822	896
1823	1823	(ii) the detachment of tangible personal property from real property except for the
1824	1824	897
1825	1825	detachment described in Subsection [(92)(b)(ii)] (93)(b)(ii);
1826	1826	898
1827	1827	(iii) an attachment of the following tangible personal property to real property if the
1828	1828	899
1829	1829	attachment to real property is only through a line that supplies water, electricity,
1830	1830	900
1831	1831	gas, telecommunications, cable, or supplies a similar item as determined by the
1832	1832	901
1833	1833	commission by rule made in accordance with Title 63G, Chapter 3, Utah
1834	1834	902
1835	1835	Administrative Rulemaking Act:
1836	1836	903
1837	1837	(A) a computer;
1838	1838	904
1839	1839	(B) a telephone;
1840	1840	905
1841	1841	(C) a television; or
1842	1842	906
1843	1843	(D) tangible personal property similar to Subsections [(92)(c)(iii)(A)]
1844	1844	907
1845	1845	(93)(c)(iii)(A) through (C) as determined by the commission by rule made in
1846	1846	908
1847	1847	accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; or
1848	1848	909
1849	1849	(iv) an item listed in Subsection [(137)(c)] (138)(c).
1850	1850	910
1851	1851	[(93)] (94) "Person" includes any individual, firm, partnership, joint venture, association,
1852	1852	911
1853	1853	corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
1854	1854	912
1855	1855	municipality, district, or other local governmental entity of the state, or any group or
1856	1856	913
1857	1857	combination acting as a unit.
1858	1858	914
1859	1859	[(94)] (95) "Place of primary use":
1860	1860	- 27 - S.B. 311 02-20 10:39
1861	1861	915
1862	1862	(a) for telecommunications service other than mobile telecommunications service,
1863	1863	916
1864	1864	means the street address representative of where the customer's use of the
1865	1865	917
1866	1866	telecommunications service primarily occurs, which shall be:
1867	1867	918
1868	1868	(i) the residential street address of the customer; or
1869	1869	919
1870	1870	(ii) the primary business street address of the customer; or
1871	1871	920
1872	1872	(b) for mobile telecommunications service, means the same as that term is defined in the
1873	1873	921
1874	1874	Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1875	1875	922
1876	1876	[(95)] (96)(a) "Postpaid calling service" means a telecommunications service a person
1877	1877	923
1878	1878	obtains by making a payment on a call-by-call basis:
1879	1879	924
1880	1880	(i) through the use of a:
1881	1881	925
1882	1882	(A) bank card;
1883	1883	926
1884	1884	(B) credit card;
1885	1885	927
1886	1886	(C) debit card; or
1887	1887	928
1888	1888	(D) travel card; or
1889	1889	929
1890	1890	(ii) by a charge made to a telephone number that is not associated with the origination
1891	1891	930
1892	1892	or termination of the telecommunications service.
1893	1893	931
1894	1894	(b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
1895	1895	932
1896	1896	service, that would be a prepaid wireless calling service if the service were
1897	1897	933
1898	1898	exclusively a telecommunications service.
1899	1899	934
1900	1900	[(96)] (97) "Postproduction" means an activity related to the finishing or duplication of a
1901	1901	935
1902	1902	medium described in Subsection 59-12-104(54)(a).
1903	1903	936
1904	1904	[(97)] (98) "Prepaid calling service" means a telecommunications service:
1905	1905	937
1906	1906	(a) that allows a purchaser access to telecommunications service that is exclusively
1907	1907	938
1908	1908	telecommunications service;
1909	1909	939
1910	1910	(b) that:
1911	1911	940
1912	1912	(i) is paid for in advance; and
1913	1913	941
1914	1914	(ii) enables the origination of a call using an:
1915	1915	942
1916	1916	(A) access number; or
1917	1917	943
1918	1918	(B) authorization code;
1919	1919	944
1920	1920	(c) that is dialed:
1921	1921	945
1922	1922	(i) manually; or
1923	1923	946
1924	1924	(ii) electronically; and
1925	1925	947
1926	1926	(d) sold in predetermined units or dollars that decline:
1927	1927	948
1928	1928	(i) by a known amount; and
1929	1929	- 28 - 02-20 10:39 S.B. 311
1930	1930	949
1931	1931	(ii) with use.
1932	1932	950
1933	1933	[(98)] (99) "Prepaid wireless calling service" means a telecommunications service:
1934	1934	951
1935	1935	(a) that provides the right to utilize:
1936	1936	952
1937	1937	(i) mobile wireless service; and
1938	1938	953
1939	1939	(ii) other service that is not a telecommunications service, including:
1940	1940	954
1941	1941	(A) the download of a product transferred electronically;
1942	1942	955
1943	1943	(B) a content service; or
1944	1944	956
1945	1945	(C) an ancillary service;
1946	1946	957
1947	1947	(b) that:
1948	1948	958
1949	1949	(i) is paid for in advance; and
1950	1950	959
1951	1951	(ii) enables the origination of a call using an:
1952	1952	960
1953	1953	(A) access number; or
1954	1954	961
1955	1955	(B) authorization code;
1956	1956	962
1957	1957	(c) that is dialed:
1958	1958	963
1959	1959	(i) manually; or
1960	1960	964
1961	1961	(ii) electronically; and
1962	1962	965
1963	1963	(d) sold in predetermined units or dollars that decline:
1964	1964	966
1965	1965	(i) by a known amount; and
1966	1966	967
1967	1967	(ii) with use.
1968	1968	968
1969	1969	[(99)] (100)(a) "Prepared food" means:
1970	1970	969
1971	1971	(i) food:
1972	1972	970
1973	1973	(A) sold in a heated state; or
1974	1974	971
1975	1975	(B) heated by a seller;
1976	1976	972
1977	1977	(ii) two or more food ingredients mixed or combined by the seller for sale as a single
1978	1978	973
1979	1979	item; or
1980	1980	974
1981	1981	(iii) except as provided in Subsection [(99)(c)] (100)(c), food sold with an eating
1982	1982	975
1983	1983	utensil provided by the seller, including a:
1984	1984	976
1985	1985	(A) plate;
1986	1986	977
1987	1987	(B) knife;
1988	1988	978
1989	1989	(C) fork;
1990	1990	979
1991	1991	(D) spoon;
1992	1992	980
1993	1993	(E) glass;
1994	1994	981
1995	1995	(F) cup;
1996	1996	982
1997	1997	(G) napkin; or
1998	1998	- 29 - S.B. 311 02-20 10:39
1999	1999	983
2000	2000	(H) straw.
2001	2001	984
2002	2002	(b) "Prepared food" does not include:
2003	2003	985
2004	2004	(i) food that a seller only:
2005	2005	986
2006	2006	(A) cuts;
2007	2007	987
2008	2008	(B) repackages; or
2009	2009	988
2010	2010	(C) pasteurizes;
2011	2011	989
2012	2012	(ii)(A) the following:
2013	2013	990
2014	2014	(I) raw egg;
2015	2015	991
2016	2016	(II) raw fish;
2017	2017	992
2018	2018	(III) raw meat;
2019	2019	993
2020	2020	(IV) raw poultry; or
2021	2021	994
2022	2022	(V) a food containing an item described in Subsections [(99)(b)(ii)(A)(I)]
2023	2023	995
2024	2024	(100)(b)(ii)(A)(I) through (IV); and
2025	2025	996
2026	2026	(B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of
2027	2027	997
2028	2028	the Food and Drug Administration's Food Code that a consumer cook the items
2029	2029	998
2030	2030	described in Subsection [(99)(b)(ii)(A)] (100)(b)(ii)(A) to prevent food borne
2031	2031	999
2032	2032	illness; or
2033	2033	1000
2034	2034	(iii) the following if sold without eating utensils provided by the seller:
2035	2035	1001
2036	2036	(A) food and food ingredients sold by a seller if the seller's proper primary
2037	2037	1002
2038	2038	classification under the 2002 North American Industry Classification System
2039	2039	1003
2040	2040	of the federal Executive Office of the President, Office of Management and
2041	2041	1004
2042	2042	Budget, is manufacturing in Sector 311, Food Manufacturing, except for
2043	2043	1005
2044	2044	Subsector 3118, Bakeries and Tortilla Manufacturing;
2045	2045	1006
2046	2046	(B) food and food ingredients sold in an unheated state:
2047	2047	1007
2048	2048	(I) by weight or volume; and
2049	2049	1008
2050	2050	(II) as a single item; or
2051	2051	1009
2052	2052	(C) a bakery item, including:
2053	2053	1010
2054	2054	(I) a bagel;
2055	2055	1011
2056	2056	(II) a bar;
2057	2057	1012
2058	2058	(III) a biscuit;
2059	2059	1013
2060	2060	(IV) bread;
2061	2061	1014
2062	2062	(V) a bun;
2063	2063	1015
2064	2064	(VI) a cake;
2065	2065	1016
2066	2066	(VII) a cookie;
2067	2067	- 30 - 02-20 10:39 S.B. 311
2068	2068	1017
2069	2069	(VIII) a croissant;
2070	2070	1018
2071	2071	(IX) a danish;
2072	2072	1019
2073	2073	(X) a donut;
2074	2074	1020
2075	2075	(XI) a muffin;
2076	2076	1021
2077	2077	(XII) a pastry;
2078	2078	1022
2079	2079	(XIII) a pie;
2080	2080	1023
2081	2081	(XIV) a roll;
2082	2082	1024
2083	2083	(XV) a tart;
2084	2084	1025
2085	2085	(XVI) a torte; or
2086	2086	1026
2087	2087	(XVII) a tortilla.
2088	2088	1027
2089	2089	(c) An eating utensil provided by the seller does not include the following used to
2090	2090	1028
2091	2091	transport the food:
2092	2092	1029
2093	2093	(i) a container; or
2094	2094	1030
2095	2095	(ii) packaging.
2096	2096	1031
2097	2097	[(100)] (101) "Prescription" means an order, formula, or recipe that is issued:
2098	2098	1032
2099	2099	(a)(i) orally;
2100	2100	1033
2101	2101	(ii) in writing;
2102	2102	1034
2103	2103	(iii) electronically; or
2104	2104	1035
2105	2105	(iv) by any other manner of transmission; and
2106	2106	1036
2107	2107	(b) by a licensed practitioner authorized by the laws of a state.
2108	2108	1037
2109	2109	[(101)] (102)(a) "Prewritten computer software" means computer software that is not
2110	2110	1038
2111	2111	designed and developed:
2112	2112	1039
2113	2113	(i) by the author or other creator of the computer software; and
2114	2114	1040
2115	2115	(ii) to the specifications of a specific purchaser.
2116	2116	1041
2117	2117	(b) "Prewritten computer software" includes:
2118	2118	1042
2119	2119	(i) a prewritten upgrade to computer software if the prewritten upgrade to the
2120	2120	1043
2121	2121	computer software is not designed and developed:
2122	2122	1044
2123	2123	(A) by the author or other creator of the computer software; and
2124	2124	1045
2125	2125	(B) to the specifications of a specific purchaser;
2126	2126	1046
2127	2127	(ii) computer software designed and developed by the author or other creator of the
2128	2128	1047
2129	2129	computer software to the specifications of a specific purchaser if the computer
2130	2130	1048
2131	2131	software is sold to a person other than the purchaser; or
2132	2132	1049
2133	2133	(iii) except as provided in Subsection [(101)(c)] (102)(c), prewritten computer
2134	2134	1050
2135	2135	software or a prewritten portion of prewritten computer software:
2136	2136	- 31 - S.B. 311 02-20 10:39
2137	2137	1051
2138	2138	(A) that is modified or enhanced to any degree; and
2139	2139	1052
2140	2140	(B) if the modification or enhancement described in Subsection [(101)(b)(iii)(A)]
2141	2141	1053
2142	2142	(102)(b)(iii)(A) is designed and developed to the specifications of a specific
2143	2143	1054
2144	2144	purchaser.
2145	2145	1055
2146	2146	(c) "Prewritten computer software" does not include a modification or enhancement
2147	2147	1056
2148	2148	described in Subsection [(101)(b)(iii)] (102)(b)(iii) if the charges for the modification
2149	2149	1057
2150	2150	or enhancement are:
2151	2151	1058
2152	2152	(i) reasonable; and
2153	2153	1059
2154	2154	(ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), separately stated on the
2155	2155	1060
2156	2156	invoice or other statement of price provided to the purchaser at the time of sale or
2157	2157	1061
2158	2158	later, as demonstrated by:
2159	2159	1062
2160	2160	(A) the books and records the seller keeps at the time of the transaction in the
2161	2161	1063
2162	2162	regular course of business, including books and records the seller keeps at the
2163	2163	1064
2164	2164	time of the transaction in the regular course of business for nontax purposes;
2165	2165	1065
2166	2166	(B) a preponderance of the facts and circumstances at the time of the transaction;
2167	2167	1066
2168	2168	and
2169	2169	1067
2170	2170	(C) the understanding of all of the parties to the transaction.
2171	2171	1068
2172	2172	[(102)] (103)(a) "Private communications service" means a telecommunications service:
2173	2173	1069
2174	2174	(i) that entitles a customer to exclusive or priority use of one or more
2175	2175	1070
2176	2176	communications channels between or among termination points; and
2177	2177	1071
2178	2178	(ii) regardless of the manner in which the one or more communications channels are
2179	2179	1072
2180	2180	connected.
2181	2181	1073
2182	2182	(b) "Private communications service" includes the following provided in connection
2183	2183	1074
2184	2184	with the use of one or more communications channels:
2185	2185	1075
2186	2186	(i) an extension line;
2187	2187	1076
2188	2188	(ii) a station;
2189	2189	1077
2190	2190	(iii) switching capacity; or
2191	2191	1078
2192	2192	(iv) another associated service that is provided in connection with the use of one or
2193	2193	1079
2194	2194	more communications channels as defined in Section 59-12-215.
2195	2195	1080
2196	2196	[(103)] (104)(a) "Product transferred electronically" means a product transferred
2197	2197	1081
2198	2198	electronically that would be subject to a tax under this chapter if that product was
2199	2199	1082
2200	2200	transferred in a manner other than electronically.
2201	2201	1083
2202	2202	(b) "Product transferred electronically" does not include:
2203	2203	1084
2204	2204	(i) an ancillary service;
2205	2205	- 32 - 02-20 10:39 S.B. 311
2206	2206	1085
2207	2207	(ii) computer software; or
2208	2208	1086
2209	2209	(iii) a telecommunications service.
2210	2210	1087
2211	2211	[(104)] (105)(a) "Prosthetic device" means a device that is worn on or in the body to:
2212	2212	1088
2213	2213	(i) artificially replace a missing portion of the body;
2214	2214	1089
2215	2215	(ii) prevent or correct a physical deformity or physical malfunction; or
2216	2216	1090
2217	2217	(iii) support a weak or deformed portion of the body.
2218	2218	1091
2219	2219	(b) "Prosthetic device" includes:
2220	2220	1092
2221	2221	(i) parts used in the repairs or renovation of a prosthetic device;
2222	2222	1093
2223	2223	(ii) replacement parts for a prosthetic device;
2224	2224	1094
2225	2225	(iii) a dental prosthesis; or
2226	2226	1095
2227	2227	(iv) a hearing aid.
2228	2228	1096
2229	2229	(c) "Prosthetic device" does not include:
2230	2230	1097
2231	2231	(i) corrective eyeglasses; or
2232	2232	1098
2233	2233	(ii) contact lenses.
2234	2234	1099
2235	2235	[(105)] (106)(a) "Protective equipment" means an item:
2236	2236	1100
2237	2237	(i) for human wear; and
2238	2238	1101
2239	2239	(ii) that is:
2240	2240	1102
2241	2241	(A) designed as protection:
2242	2242	1103
2243	2243	(I) to the wearer against injury or disease; or
2244	2244	1104
2245	2245	(II) against damage or injury of other persons or property; and
2246	2246	1105
2247	2247	(B) not suitable for general use.
2248	2248	1106
2249	2249	(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2250	2250	1107
2251	2251	commission shall make rules:
2252	2252	1108
2253	2253	(i) listing the items that constitute "protective equipment"; and
2254	2254	1109
2255	2255	(ii) that are consistent with the list of items that constitute "protective equipment"
2256	2256	1110
2257	2257	under the agreement.
2258	2258	1111
2259	2259	[(106)] (107)(a) For purposes of Subsection 59-12-104(41), "publication" means any
2260	2260	1112
2261	2261	written or printed matter, other than a photocopy:
2262	2262	1113
2263	2263	(i) regardless of:
2264	2264	1114
2265	2265	(A) characteristics;
2266	2266	1115
2267	2267	(B) copyright;
2268	2268	1116
2269	2269	(C) form;
2270	2270	1117
2271	2271	(D) format;
2272	2272	1118
2273	2273	(E) method of reproduction; or
2274	2274	- 33 - S.B. 311 02-20 10:39
2275	2275	1119
2276	2276	(F) source; and
2277	2277	1120
2278	2278	(ii) made available in printed or electronic format.
2279	2279	1121
2280	2280	(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2281	2281	1122
2282	2282	commission may by rule define the term "photocopy."
2283	2283	1123
2284	2284	[(107)] (108)(a) "Purchase price" and "sales price" mean the total amount of
2285	2285	1124
2286	2286	consideration:
2287	2287	1125
2288	2288	(i) valued in money; and
2289	2289	1126
2290	2290	(ii) for which tangible personal property, a product transferred electronically, or
2291	2291	1127
2292	2292	services are:
2293	2293	1128
2294	2294	(A) sold;
2295	2295	1129
2296	2296	(B) leased; or
2297	2297	1130
2298	2298	(C) rented.
2299	2299	1131
2300	2300	(b) "Purchase price" and "sales price" include:
2301	2301	1132
2302	2302	(i) the seller's cost of the tangible personal property, a product transferred
2303	2303	1133
2304	2304	electronically, or services sold;
2305	2305	1134
2306	2306	(ii) expenses of the seller, including:
2307	2307	1135
2308	2308	(A) the cost of materials used;
2309	2309	1136
2310	2310	(B) a labor cost;
2311	2311	1137
2312	2312	(C) a service cost;
2313	2313	1138
2314	2314	(D) interest;
2315	2315	1139
2316	2316	(E) a loss;
2317	2317	1140
2318	2318	(F) the cost of transportation to the seller; or
2319	2319	1141
2320	2320	(G) a tax imposed on the seller;
2321	2321	1142
2322	2322	(iii) a charge by the seller for any service necessary to complete the sale; or
2323	2323	1143
2324	2324	(iv) consideration a seller receives from a person other than the purchaser if:
2325	2325	1144
2326	2326	(A)(I) the seller actually receives consideration from a person other than the
2327	2327	1145
2328	2328	purchaser; and
2329	2329	1146
2330	2330	(II) the consideration described in Subsection [(107)(b)(iv)(A)(I)]
2331	2331	1147
2332	2332	(108)(b)(iv)(A)(I) is directly related to a price reduction or discount on the
2333	2333	1148
2334	2334	sale;
2335	2335	1149
2336	2336	(B) the seller has an obligation to pass the price reduction or discount through to
2337	2337	1150
2338	2338	the purchaser;
2339	2339	1151
2340	2340	(C) the amount of the consideration attributable to the sale is fixed and
2341	2341	1152
2342	2342	determinable by the seller at the time of the sale to the purchaser; and
2343	2343	- 34 - 02-20 10:39 S.B. 311
2344	2344	1153
2345	2345	(D)(I)(Aa) the purchaser presents a certificate, coupon, or other
2346	2346	1154
2347	2347	documentation to the seller to claim a price reduction or discount; and
2348	2348	1155
2349	2349	(Bb) a person other than the seller authorizes, distributes, or grants the
2350	2350	1156
2351	2351	certificate, coupon, or other documentation with the understanding that
2352	2352	1157
2353	2353	the person other than the seller will reimburse any seller to whom the
2354	2354	1158
2355	2355	certificate, coupon, or other documentation is presented;
2356	2356	1159
2357	2357	(II) the purchaser identifies that purchaser to the seller as a member of a group
2358	2358	1160
2359	2359	or organization allowed a price reduction or discount, except that a
2360	2360	1161
2361	2361	preferred customer card that is available to any patron of a seller does not
2362	2362	1162
2363	2363	constitute membership in a group or organization allowed a price reduction
2364	2364	1163
2365	2365	or discount; or
2366	2366	1164
2367	2367	(III) the price reduction or discount is identified as a third party price reduction
2368	2368	1165
2369	2369	or discount on the:
2370	2370	1166
2371	2371	(Aa) invoice the purchaser receives; or
2372	2372	1167
2373	2373	(Bb) certificate, coupon, or other documentation the purchaser presents.
2374	2374	1168
2375	2375	(c) "Purchase price" and "sales price" do not include:
2376	2376	1169
2377	2377	(i) a discount:
2378	2378	1170
2379	2379	(A) in a form including:
2380	2380	1171
2381	2381	(I) cash;
2382	2382	1172
2383	2383	(II) term; or
2384	2384	1173
2385	2385	(III) coupon;
2386	2386	1174
2387	2387	(B) that is allowed by a seller;
2388	2388	1175
2389	2389	(C) taken by a purchaser on a sale; and
2390	2390	1176
2391	2391	(D) that is not reimbursed by a third party; or
2392	2392	1177
2393	2393	(ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), the following if
2394	2394	1178
2395	2395	separately stated on an invoice, bill of sale, or similar document provided to the
2396	2396	1179
2397	2397	purchaser at the time of sale or later, as demonstrated by the books and records the
2398	2398	1180
2399	2399	seller keeps at the time of the transaction in the regular course of business,
2400	2400	1181
2401	2401	including books and records the seller keeps at the time of the transaction in the
2402	2402	1182
2403	2403	regular course of business for nontax purposes, by a preponderance of the facts
2404	2404	1183
2405	2405	and circumstances at the time of the transaction, and by the understanding of all of
2406	2406	1184
2407	2407	the parties to the transaction:
2408	2408	1185
2409	2409	(A) the following from credit extended on the sale of tangible personal property or
2410	2410	1186
2411	2411	services:
2412	2412	- 35 - S.B. 311 02-20 10:39
2413	2413	1187
2414	2414	(I) a carrying charge;
2415	2415	1188
2416	2416	(II) a financing charge; or
2417	2417	1189
2418	2418	(III) an interest charge;
2419	2419	1190
2420	2420	(B) a delivery charge;
2421	2421	1191
2422	2422	(C) an installation charge;
2423	2423	1192
2424	2424	(D) a manufacturer rebate on a motor vehicle; or
2425	2425	1193
2426	2426	(E) a tax or fee legally imposed directly on the consumer.
2427	2427	1194
2428	2428	[(108)] (109) "Purchaser" means a person to whom:
2429	2429	1195
2430	2430	(a) a sale of tangible personal property is made;
2431	2431	1196
2432	2432	(b) a product is transferred electronically; or
2433	2433	1197
2434	2434	(c) a service is furnished.
2435	2435	1198
2436	2436	[(109)] (110) "Qualifying data center" means a data center facility that:
2437	2437	1199
2438	2438	(a) houses a group of networked server computers in one physical location in order to
2439	2439	1200
2440	2440	disseminate, manage, and store data and information;
2441	2441	1201
2442	2442	(b) is located in the state;
2443	2443	1202
2444	2444	(c) is a new operation constructed on or after July 1, 2016;
2445	2445	1203
2446	2446	(d) consists of one or more buildings that total 150,000 or more square feet;
2447	2447	1204
2448	2448	(e) is owned or leased by:
2449	2449	1205
2450	2450	(i) the operator of the data center facility; or
2451	2451	1206
2452	2452	(ii) a person under common ownership, as defined in Section 59-7-101, of the
2453	2453	1207
2454	2454	operator of the data center facility; and
2455	2455	1208
2456	2456	(f) is located on one or more parcels of land that are owned or leased by:
2457	2457	1209
2458	2458	(i) the operator of the data center facility; or
2459	2459	1210
2460	2460	(ii) a person under common ownership, as defined in Section 59-7-101, of the
2461	2461	1211
2462	2462	operator of the data center facility.
2463	2463	1212
2464	2464	[(110)] (111) "Regularly rented" means:
2465	2465	1213
2466	2466	(a) rented to a guest for value three or more times during a calendar year; or
2467	2467	1214
2468	2468	(b) advertised or held out to the public as a place that is regularly rented to guests for
2469	2469	1215
2470	2470	value.
2471	2471	1216
2472	2472	[(111)] (112) "Rental" means the same as that term is defined in Subsection [(63)] (64).
2473	2473	1217
2474	2474	[(112)] (113)(a) "Repairs or renovations of tangible personal property" means:
2475	2475	1218
2476	2476	(i) a repair or renovation of tangible personal property that is not permanently
2477	2477	1219
2478	2478	attached to real property; or
2479	2479	1220
2480	2480	(ii) attaching tangible personal property or a product transferred electronically to
2481	2481	- 36 - 02-20 10:39 S.B. 311
2482	2482	1221
2483	2483	other tangible personal property or detaching tangible personal property or a
2484	2484	1222
2485	2485	product transferred electronically from other tangible personal property if:
2486	2486	1223
2487	2487	(A) the other tangible personal property to which the tangible personal property or
2488	2488	1224
2489	2489	product transferred electronically is attached or from which the tangible
2490	2490	1225
2491	2491	personal property or product transferred electronically is detached is not
2492	2492	1226
2493	2493	permanently attached to real property; and
2494	2494	1227
2495	2495	(B) the attachment of tangible personal property or a product transferred
2496	2496	1228
2497	2497	electronically to other tangible personal property or detachment of tangible
2498	2498	1229
2499	2499	personal property or a product transferred electronically from other tangible
2500	2500	1230
2501	2501	personal property is made in conjunction with a repair or replacement of
2502	2502	1231
2503	2503	tangible personal property or a product transferred electronically.
2504	2504	1232
2505	2505	(b) "Repairs or renovations of tangible personal property" does not include:
2506	2506	1233
2507	2507	(i) attaching prewritten computer software to other tangible personal property if the
2508	2508	1234
2509	2509	other tangible personal property to which the prewritten computer software is
2510	2510	1235
2511	2511	attached is not permanently attached to real property; or
2512	2512	1236
2513	2513	(ii) detaching prewritten computer software from other tangible personal property if
2514	2514	1237
2515	2515	the other tangible personal property from which the prewritten computer software
2516	2516	1238
2517	2517	is detached is not permanently attached to real property.
2518	2518	1239
2519	2519	[(113)] (114) "Research and development" means the process of inquiry or experimentation
2520	2520	1240
2521	2521	aimed at the discovery of facts, devices, technologies, or applications and the process of
2522	2522	1241
2523	2523	preparing those devices, technologies, or applications for marketing.
2524	2524	1242
2525	2525	[(114)] (115)(a) "Residential telecommunications services" means a telecommunications
2526	2526	1243
2527	2527	service or an ancillary service that is provided to an individual for personal use:
2528	2528	1244
2529	2529	(i) at a residential address; or
2530	2530	1245
2531	2531	(ii) at an institution, including a nursing home or a school, if the telecommunications
2532	2532	1246
2533	2533	service or ancillary service is provided to and paid for by the individual residing at
2534	2534	1247
2535	2535	the institution rather than the institution.
2536	2536	1248
2537	2537	(b) For purposes of Subsection [(114)(a)(i)] (115)(a)(i), a residential address includes an:
2538	2538	1249
2539	2539	(i) apartment; or
2540	2540	1250
2541	2541	(ii) other individual dwelling unit.
2542	2542	1251
2543	2543	[(115)] (116) "Residential use" means the use in or around a home, apartment building,
2544	2544	1252
2545	2545	sleeping quarters, and similar facilities or accommodations.
2546	2546	1253
2547	2547	[(116)] (117) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
2548	2548	1254
2549	2549	than:
2550	2550	- 37 - S.B. 311 02-20 10:39
2551	2551	1255
2552	2552	(a) resale;
2553	2553	1256
2554	2554	(b) sublease; or
2555	2555	1257
2556	2556	(c) subrent.
2557	2557	1258
2558	2558	[(117)] (118)(a) "Retailer" means any person, unless prohibited by the Constitution of the
2559	2559	1259
2560	2560	United States or federal law, that is engaged in a regularly organized business in
2561	2561	1260
2562	2562	tangible personal property or any other taxable transaction under Subsection
2563	2563	1261
2564	2564	59-12-103(1), and who is selling to the user or consumer and not for resale.
2565	2565	1262
2566	2566	(b) "Retailer" includes commission merchants, auctioneers, and any person regularly
2567	2567	1263
2568	2568	engaged in the business of selling to users or consumers within the state.
2569	2569	1264
2570	2570	[(118)] (119)(a) "Sale" means any transfer of title, exchange, or barter, conditional or
2571	2571	1265
2572	2572	otherwise, in any manner, of tangible personal property or any other taxable
2573	2573	1266
2574	2574	transaction under Subsection 59-12-103(1), for consideration.
2575	2575	1267
2576	2576	(b) "Sale" includes:
2577	2577	1268
2578	2578	(i) installment and credit sales;
2579	2579	1269
2580	2580	(ii) any closed transaction constituting a sale;
2581	2581	1270
2582	2582	(iii) any sale of electrical energy, gas, services, or entertainment taxable under this
2583	2583	1271
2584	2584	chapter;
2585	2585	1272
2586	2586	(iv) any transaction if the possession of property is transferred but the seller retains
2587	2587	1273
2588	2588	the title as security for the payment of the price; and
2589	2589	1274
2590	2590	(v) any transaction under which right to possession, operation, or use of any article of
2591	2591	1275
2592	2592	tangible personal property is granted under a lease or contract and the transfer of
2593	2593	1276
2594	2594	possession would be taxable if an outright sale were made.
2595	2595	1277
2596	2596	[(119)] (120) "Sale at retail" means the same as that term is defined in Subsection [(116)]
2597	2597	1278
2598	2598	(117).
2599	2599	1279
2600	2600	[(120)] (121) "Sale-leaseback transaction" means a transaction by which title to tangible
2601	2601	1280
2602	2602	personal property or a product transferred electronically that is subject to a tax under this
2603	2603	1281
2604	2604	chapter is transferred:
2605	2605	1282
2606	2606	(a) by a purchaser-lessee;
2607	2607	1283
2608	2608	(b) to a lessor;
2609	2609	1284
2610	2610	(c) for consideration; and
2611	2611	1285
2612	2612	(d) if:
2613	2613	1286
2614	2614	(i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial
2615	2615	1287
2616	2616	purchase of the tangible personal property or product transferred electronically;
2617	2617	1288
2618	2618	(ii) the sale of the tangible personal property or product transferred electronically to
2619	2619	- 38 - 02-20 10:39 S.B. 311
2620	2620	1289
2621	2621	the lessor is intended as a form of financing:
2622	2622	1290
2623	2623	(A) for the tangible personal property or product transferred electronically; and
2624	2624	1291
2625	2625	(B) to the purchaser-lessee; and
2626	2626	1292
2627	2627	(iii) in accordance with generally accepted accounting principles, the
2628	2628	1293
2629	2629	purchaser-lessee is required to:
2630	2630	1294
2631	2631	(A) capitalize the tangible personal property or product transferred electronically
2632	2632	1295
2633	2633	for financial reporting purposes; and
2634	2634	1296
2635	2635	(B) account for the lease payments as payments made under a financing
2636	2636	1297
2637	2637	arrangement.
2638	2638	1298
2639	2639	[(121)] (122) "Sales price" means the same as that term is defined in Subsection [(107)] (108).
2640	2640	1299
2641	2641	[(122)] (123)(a) "Sales relating to schools" means the following sales by, amounts paid
2642	2642	1300
2643	2643	to, or amounts charged by a school:
2644	2644	1301
2645	2645	(i) sales that are directly related to the school's educational functions or activities
2646	2646	1302
2647	2647	including:
2648	2648	1303
2649	2649	(A) the sale of:
2650	2650	1304
2651	2651	(I) textbooks;
2652	2652	1305
2653	2653	(II) textbook fees;
2654	2654	1306
2655	2655	(III) laboratory fees;
2656	2656	1307
2657	2657	(IV) laboratory supplies; or
2658	2658	1308
2659	2659	(V) safety equipment;
2660	2660	1309
2661	2661	(B) the sale of a uniform, protective equipment, or sports or recreational
2662	2662	1310
2663	2663	equipment that:
2664	2664	1311
2665	2665	(I) a student is specifically required to wear as a condition of participation in a
2666	2666	1312
2667	2667	school-related event or school-related activity; and
2668	2668	1313
2669	2669	(II) is not readily adaptable to general or continued usage to the extent that it
2670	2670	1314
2671	2671	takes the place of ordinary clothing;
2672	2672	1315
2673	2673	(C) sales of the following if the net or gross revenue generated by the sales is
2674	2674	1316
2675	2675	deposited into a school district fund or school fund dedicated to school meals:
2676	2676	1317
2677	2677	(I) food and food ingredients; or
2678	2678	1318
2679	2679	(II) prepared food; or
2680	2680	1319
2681	2681	(D) transportation charges for official school activities; or
2682	2682	1320
2683	2683	(ii) amounts paid to or amounts charged by a school for admission to a school-related
2684	2684	1321
2685	2685	event or school-related activity.
2686	2686	1322
2687	2687	(b) "Sales relating to schools" does not include:
2688	2688	- 39 - S.B. 311 02-20 10:39
2689	2689	1323
2690	2690	(i) bookstore sales of items that are not educational materials or supplies;
2691	2691	1324
2692	2692	(ii) except as provided in Subsection [(122)(a)(i)(B)] (123)(a)(i)(B):
2693	2693	1325
2694	2694	(A) clothing;
2695	2695	1326
2696	2696	(B) clothing accessories or equipment;
2697	2697	1327
2698	2698	(C) protective equipment; or
2699	2699	1328
2700	2700	(D) sports or recreational equipment; or
2701	2701	1329
2702	2702	(iii) amounts paid to or amounts charged by a school for admission to a
2703	2703	1330
2704	2704	school-related event or school-related activity if the amounts paid or charged are
2705	2705	1331
2706	2706	passed through to a person:
2707	2707	1332
2708	2708	(A) other than a:
2709	2709	1333
2710	2710	(I) school;
2711	2711	1334
2712	2712	(II) nonprofit organization authorized by a school board or a governing body of
2713	2713	1335
2714	2714	a private school to organize and direct a competitive secondary school
2715	2715	1336
2716	2716	activity; or
2717	2717	1337
2718	2718	(III) nonprofit association authorized by a school board or a governing body of
2719	2719	1338
2720	2720	a private school to organize and direct a competitive secondary school
2721	2721	1339
2722	2722	activity; and
2723	2723	1340
2724	2724	(B) that is required to collect sales and use taxes under this chapter.
2725	2725	1341
2726	2726	(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2727	2727	1342
2728	2728	commission may make rules defining the term "passed through."
2729	2729	1343
2730	2730	[(123)] (124) For purposes of this section and Section 59-12-104, "school" means:
2731	2731	1344
2732	2732	(a) an elementary school or a secondary school that:
2733	2733	1345
2734	2734	(i) is a:
2735	2735	1346
2736	2736	(A) public school; or
2737	2737	1347
2738	2738	(B) private school; and
2739	2739	1348
2740	2740	(ii) provides instruction for one or more grades kindergarten through 12; or
2741	2741	1349
2742	2742	(b) a public school district.
2743	2743	1350
2744	2744	[(124)] (125)(a) "Seller" means a person that makes a sale, lease, or rental of:
2745	2745	1351
2746	2746	(i) tangible personal property;
2747	2747	1352
2748	2748	(ii) a product transferred electronically; or
2749	2749	1353
2750	2750	(iii) a service.
2751	2751	1354
2752	2752	(b) "Seller" includes a marketplace facilitator.
2753	2753	1355
2754	2754	[(125)] (126)(a) "Semiconductor fabricating, processing, research, or development
2755	2755	1356
2756	2756	materials" means tangible personal property or a product transferred electronically if
2757	2757	- 40 - 02-20 10:39 S.B. 311
2758	2758	1357
2759	2759	the tangible personal property or product transferred electronically is:
2760	2760	1358
2761	2761	(i) used primarily in the process of:
2762	2762	1359
2763	2763	(A)(I) manufacturing a semiconductor;
2764	2764	1360
2765	2765	(II) fabricating a semiconductor; or
2766	2766	1361
2767	2767	(III) research or development of a:
2768	2768	1362
2769	2769	(Aa) semiconductor; or
2770	2770	1363
2771	2771	(Bb) semiconductor manufacturing process; or
2772	2772	1364
2773	2773	(B) maintaining an environment suitable for a semiconductor; or
2774	2774	1365
2775	2775	(ii) consumed primarily in the process of:
2776	2776	1366
2777	2777	(A)(I) manufacturing a semiconductor;
2778	2778	1367
2779	2779	(II) fabricating a semiconductor; or
2780	2780	1368
2781	2781	(III) research or development of a:
2782	2782	1369
2783	2783	(Aa) semiconductor; or
2784	2784	1370
2785	2785	(Bb) semiconductor manufacturing process; or
2786	2786	1371
2787	2787	(B) maintaining an environment suitable for a semiconductor.
2788	2788	1372
2789	2789	(b) "Semiconductor fabricating, processing, research, or development materials"
2790	2790	1373
2791	2791	includes:
2792	2792	1374
2793	2793	(i) parts used in the repairs or renovations of tangible personal property or a product
2794	2794	1375
2795	2795	transferred electronically described in Subsection [(125)(a)] (126)(a); or
2796	2796	1376
2797	2797	(ii) a chemical, catalyst, or other material used to:
2798	2798	1377
2799	2799	(A) produce or induce in a semiconductor a:
2800	2800	1378
2801	2801	(I) chemical change; or
2802	2802	1379
2803	2803	(II) physical change;
2804	2804	1380
2805	2805	(B) remove impurities from a semiconductor; or
2806	2806	1381
2807	2807	(C) improve the marketable condition of a semiconductor.
2808	2808	1382
2809	2809	[(126)] (127) "Senior citizen center" means a facility having the primary purpose of
2810	2810	1383
2811	2811	providing services to the aged as defined in Section 26B-6-101.
2812	2812	1384
2813	2813	[(127)] (128) "Shared vehicle" means the same as that term is defined in Section 13-48a-101.
2814	2814	1385
2815	2815	[(128)] (129) "Shared vehicle driver" means the same as that term is defined in Section
2816	2816	1386
2817	2817	13-48a-101.
2818	2818	1387
2819	2819	[(129)] (130) "Shared vehicle owner" means the same as that term is defined in Section
2820	2820	1388
2821	2821	13-48a-101.
2822	2822	1389
2823	2823	[(130)] (131)(a) Subject to Subsections [(130)(b)] (131)(b) and (c), "short-term lodging
2824	2824	1390
2825	2825	consumable" means tangible personal property that:
2826	2826	- 41 - S.B. 311 02-20 10:39
2827	2827	1391
2828	2828	(i) a business that provides accommodations and services described in Subsection
2829	2829	1392
2830	2830	59-12-103(1)(i) purchases as part of a transaction to provide the accommodations
2831	2831	1393
2832	2832	and services to a purchaser;
2833	2833	1394
2834	2834	(ii) is intended to be consumed by the purchaser; and
2835	2835	1395
2836	2836	(iii) is:
2837	2837	1396
2838	2838	(A) included in the purchase price of the accommodations and services; and
2839	2839	1397
2840	2840	(B) not separately stated on an invoice, bill of sale, or other similar document
2841	2841	1398
2842	2842	provided to the purchaser.
2843	2843	1399
2844	2844	(b) "Short-term lodging consumable" includes:
2845	2845	1400
2846	2846	(i) a beverage;
2847	2847	1401
2848	2848	(ii) a brush or comb;
2849	2849	1402
2850	2850	(iii) a cosmetic;
2851	2851	1403
2852	2852	(iv) a hair care product;
2853	2853	1404
2854	2854	(v) lotion;
2855	2855	1405
2856	2856	(vi) a magazine;
2857	2857	1406
2858	2858	(vii) makeup;
2859	2859	1407
2860	2860	(viii) a meal;
2861	2861	1408
2862	2862	(ix) mouthwash;
2863	2863	1409
2864	2864	(x) nail polish remover;
2865	2865	1410
2866	2866	(xi) a newspaper;
2867	2867	1411
2868	2868	(xii) a notepad;
2869	2869	1412
2870	2870	(xiii) a pen;
2871	2871	1413
2872	2872	(xiv) a pencil;
2873	2873	1414
2874	2874	(xv) a razor;
2875	2875	1415
2876	2876	(xvi) saline solution;
2877	2877	1416
2878	2878	(xvii) a sewing kit;
2879	2879	1417
2880	2880	(xviii) shaving cream;
2881	2881	1418
2882	2882	(xix) a shoe shine kit;
2883	2883	1419
2884	2884	(xx) a shower cap;
2885	2885	1420
2886	2886	(xxi) a snack item;
2887	2887	1421
2888	2888	(xxii) soap;
2889	2889	1422
2890	2890	(xxiii) toilet paper;
2891	2891	1423
2892	2892	(xxiv) a toothbrush;
2893	2893	1424
2894	2894	(xxv) toothpaste; or
2895	2895	- 42 - 02-20 10:39 S.B. 311
2896	2896	1425
2897	2897	(xxvi) an item similar to Subsections [(130)(b)(i)] (131)(b)(i) through (xxv) as the
2898	2898	1426
2899	2899	commission may provide by rule made in accordance with Title 63G, Chapter 3,
2900	2900	1427
2901	2901	Utah Administrative Rulemaking Act.
2902	2902	1428
2903	2903	(c) "Short-term lodging consumable" does not include:
2904	2904	1429
2905	2905	(i) tangible personal property that is cleaned or washed to allow the tangible personal
2906	2906	1430
2907	2907	property to be reused; or
2908	2908	1431
2909	2909	(ii) a product transferred electronically.
2910	2910	1432
2911	2911	[(131)] (132)(a) "Short-term rental" means a lease or rental for less than 30 consecutive
2912	2912	1433
2913	2913	days.
2914	2914	1434
2915	2915	(b) "Short-term rental" does not include car sharing.
2916	2916	1435
2917	2917	[(132)] (133) "Simplified electronic return" means the electronic return:
2918	2918	1436
2919	2919	(a) described in Section 318(C) of the agreement; and
2920	2920	1437
2921	2921	(b) approved by the governing board of the agreement.
2922	2922	1438
2923	2923	[(133)] (134) "Solar energy" means the sun used as the sole source of energy for producing
2924	2924	1439
2925	2925	electricity.
2926	2926	1440
2927	2927	[(134)] (135)(a) "Sports or recreational equipment" means an item:
2928	2928	1441
2929	2929	(i) designed for human use; and
2930	2930	1442
2931	2931	(ii) that is:
2932	2932	1443
2933	2933	(A) worn in conjunction with:
2934	2934	1444
2935	2935	(I) an athletic activity; or
2936	2936	1445
2937	2937	(II) a recreational activity; and
2938	2938	1446
2939	2939	(B) not suitable for general use.
2940	2940	1447
2941	2941	(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2942	2942	1448
2943	2943	commission shall make rules:
2944	2944	1449
2945	2945	(i) listing the items that constitute "sports or recreational equipment"; and
2946	2946	1450
2947	2947	(ii) that are consistent with the list of items that constitute "sports or recreational
2948	2948	1451
2949	2949	equipment" under the agreement.
2950	2950	1452
2951	2951	[(135)] (136) "State" means the state of Utah, its departments, and agencies.
2952	2952	1453
2953	2953	[(136)] (137) "Storage" means any keeping or retention of tangible personal property or any
2954	2954	1454
2955	2955	other taxable transaction under Subsection 59-12-103(1), in this state for any purpose
2956	2956	1455
2957	2957	except sale in the regular course of business.
2958	2958	1456
2959	2959	[(137)] (138)(a) "Tangible personal property" means personal property that:
2960	2960	1457
2961	2961	(i) may be:
2962	2962	1458
2963	2963	(A) seen;
2964	2964	- 43 - S.B. 311 02-20 10:39
2965	2965	1459
2966	2966	(B) weighed;
2967	2967	1460
2968	2968	(C) measured;
2969	2969	1461
2970	2970	(D) felt; or
2971	2971	1462
2972	2972	(E) touched; or
2973	2973	1463
2974	2974	(ii) is in any manner perceptible to the senses.
2975	2975	1464
2976	2976	(b) "Tangible personal property" includes:
2977	2977	1465
2978	2978	(i) electricity;
2979	2979	1466
2980	2980	(ii) water;
2981	2981	1467
2982	2982	(iii) gas;
2983	2983	1468
2984	2984	(iv) steam; or
2985	2985	1469
2986	2986	(v) prewritten computer software, regardless of the manner in which the prewritten
2987	2987	1470
2988	2988	computer software is transferred.
2989	2989	1471
2990	2990	(c) "Tangible personal property" includes the following regardless of whether the item is
2991	2991	1472
2992	2992	attached to real property:
2993	2993	1473
2994	2994	(i) a dishwasher;
2995	2995	1474
2996	2996	(ii) a dryer;
2997	2997	1475
2998	2998	(iii) a freezer;
2999	2999	1476
3000	3000	(iv) a microwave;
3001	3001	1477
3002	3002	(v) a refrigerator;
3003	3003	1478
3004	3004	(vi) a stove;
3005	3005	1479
3006	3006	(vii) a washer; or
3007	3007	1480
3008	3008	(viii) an item similar to Subsections [(137)(c)(i)] (138)(c)(i) through (vii) as
3009	3009	1481
3010	3010	determined by the commission by rule made in accordance with Title 63G,
3011	3011	1482
3012	3012	Chapter 3, Utah Administrative Rulemaking Act.
3013	3013	1483
3014	3014	(d) "Tangible personal property" does not include a product that is transferred
3015	3015	1484
3016	3016	electronically.
3017	3017	1485
3018	3018	(e) "Tangible personal property" does not include the following if attached to real
3019	3019	1486
3020	3020	property, regardless of whether the attachment to real property is only through a line
3021	3021	1487
3022	3022	that supplies water, electricity, gas, telephone, cable, or supplies a similar item as
3023	3023	1488
3024	3024	determined by the commission by rule made in accordance with Title 63G, Chapter 3,
3025	3025	1489
3026	3026	Utah Administrative Rulemaking Act:
3027	3027	1490
3028	3028	(i) a hot water heater;
3029	3029	1491
3030	3030	(ii) a water filtration system; or
3031	3031	1492
3032	3032	(iii) a water softener system.
3033	3033	- 44 - 02-20 10:39 S.B. 311
3034	3034	1493
3035	3035	[(138)] (139)(a) "Telecommunications enabling or facilitating equipment, machinery, or
3036	3036	1494
3037	3037	software" means an item listed in Subsection [(138)(b)] (139)(b) if that item is
3038	3038	1495
3039	3039	purchased or leased primarily to enable or facilitate one or more of the following to
3040	3040	1496
3041	3041	function:
3042	3042	1497
3043	3043	(i) telecommunications switching or routing equipment, machinery, or software; or
3044	3044	1498
3045	3045	(ii) telecommunications transmission equipment, machinery, or software.
3046	3046	1499
3047	3047	(b) The following apply to Subsection [(138)(a)] (139)(a):
3048	3048	1500
3049	3049	(i) a pole;
3050	3050	1501
3051	3051	(ii) software;
3052	3052	1502
3053	3053	(iii) a supplementary power supply;
3054	3054	1503
3055	3055	(iv) temperature or environmental equipment or machinery;
3056	3056	1504
3057	3057	(v) test equipment;
3058	3058	1505
3059	3059	(vi) a tower; or
3060	3060	1506
3061	3061	(vii) equipment, machinery, or software that functions similarly to an item listed in
3062	3062	1507
3063	3063	Subsections [(138)(b)(i)] (139)(b)(i) through (vi) as determined by the commission
3064	3064	1508
3065	3065	by rule made in accordance with Subsection [(138)(c)] (139)(c).
3066	3066	1509
3067	3067	(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3068	3068	1510
3069	3069	commission may by rule define what constitutes equipment, machinery, or software
3070	3070	1511
3071	3071	that functions similarly to an item listed in Subsections [(138)(b)(i)] (139)(b)(i)
3072	3072	1512
3073	3073	through (vi).
3074	3074	1513
3075	3075	[(139)] (140) "Telecommunications equipment, machinery, or software required for 911
3076	3076	1514
3077	3077	service" means equipment, machinery, or software that is required to comply with 47
3078	3078	1515
3079	3079	C.F.R. Sec. 20.18.
3080	3080	1516
3081	3081	[(140)] (141) "Telecommunications maintenance or repair equipment, machinery, or
3082	3082	1517
3083	3083	software" means equipment, machinery, or software purchased or leased primarily to
3084	3084	1518
3085	3085	maintain or repair one or more of the following, regardless of whether the equipment,
3086	3086	1519
3087	3087	machinery, or software is purchased or leased as a spare part or as an upgrade or
3088	3088	1520
3089	3089	modification to one or more of the following:
3090	3090	1521
3091	3091	(a) telecommunications enabling or facilitating equipment, machinery, or software;
3092	3092	1522
3093	3093	(b) telecommunications switching or routing equipment, machinery, or software; or
3094	3094	1523
3095	3095	(c) telecommunications transmission equipment, machinery, or software.
3096	3096	1524
3097	3097	[(141)] (142)(a) "Telecommunications service" means the electronic conveyance,
3098	3098	1525
3099	3099	routing, or transmission of audio, data, video, voice, or any other information or
3100	3100	1526
3101	3101	signal to a point, or among or between points.
3102	3102	- 45 - S.B. 311 02-20 10:39
3103	3103	1527
3104	3104	(b) "Telecommunications service" includes:
3105	3105	1528
3106	3106	(i) an electronic conveyance, routing, or transmission with respect to which a
3107	3107	1529
3108	3108	computer processing application is used to act:
3109	3109	1530
3110	3110	(A) on the code, form, or protocol of the content;
3111	3111	1531
3112	3112	(B) for the purpose of electronic conveyance, routing, or transmission; and
3113	3113	1532
3114	3114	(C) regardless of whether the service:
3115	3115	1533
3116	3116	(I) is referred to as voice over Internet protocol service; or
3117	3117	1534
3118	3118	(II) is classified by the Federal Communications Commission as enhanced or
3119	3119	1535
3120	3120	value added;
3121	3121	1536
3122	3122	(ii) an 800 service;
3123	3123	1537
3124	3124	(iii) a 900 service;
3125	3125	1538
3126	3126	(iv) a fixed wireless service;
3127	3127	1539
3128	3128	(v) a mobile wireless service;
3129	3129	1540
3130	3130	(vi) a postpaid calling service;
3131	3131	1541
3132	3132	(vii) a prepaid calling service;
3133	3133	1542
3134	3134	(viii) a prepaid wireless calling service; or
3135	3135	1543
3136	3136	(ix) a private communications service.
3137	3137	1544
3138	3138	(c) "Telecommunications service" does not include:
3139	3139	1545
3140	3140	(i) advertising, including directory advertising;
3141	3141	1546
3142	3142	(ii) an ancillary service;
3143	3143	1547
3144	3144	(iii) a billing and collection service provided to a third party;
3145	3145	1548
3146	3146	(iv) a data processing and information service if:
3147	3147	1549
3148	3148	(A) the data processing and information service allows data to be:
3149	3149	1550
3150	3150	(I)(Aa) acquired;
3151	3151	1551
3152	3152	(Bb) generated;
3153	3153	1552
3154	3154	(Cc) processed;
3155	3155	1553
3156	3156	(Dd) retrieved; or
3157	3157	1554
3158	3158	(Ee) stored; and
3159	3159	1555
3160	3160	(II) delivered by an electronic transmission to a purchaser; and
3161	3161	1556
3162	3162	(B) the purchaser's primary purpose for the underlying transaction is the processed
3163	3163	1557
3164	3164	data or information;
3165	3165	1558
3166	3166	(v) installation or maintenance of the following on a customer's premises:
3167	3167	1559
3168	3168	(A) equipment; or
3169	3169	1560
3170	3170	(B) wiring;
3171	3171	- 46 - 02-20 10:39 S.B. 311
3172	3172	1561
3173	3173	(vi) Internet access service;
3174	3174	1562
3175	3175	(vii) a paging service;
3176	3176	1563
3177	3177	(viii) a product transferred electronically, including:
3178	3178	1564
3179	3179	(A) music;
3180	3180	1565
3181	3181	(B) reading material;
3182	3182	1566
3183	3183	(C) a ring tone;
3184	3184	1567
3185	3185	(D) software; or
3186	3186	1568
3187	3187	(E) video;
3188	3188	1569
3189	3189	(ix) a radio and television audio and video programming service:
3190	3190	1570
3191	3191	(A) regardless of the medium; and
3192	3192	1571
3193	3193	(B) including:
3194	3194	1572
3195	3195	(I) furnishing conveyance, routing, or transmission of a television audio and
3196	3196	1573
3197	3197	video programming service by a programming service provider;
3198	3198	1574
3199	3199	(II) cable service as defined in 47 U.S.C. Sec. 522(6); or
3200	3200	1575
3201	3201	(III) audio and video programming services delivered by a commercial mobile
3202	3202	1576
3203	3203	radio service provider as defined in 47 C.F.R. Sec. 20.3;
3204	3204	1577
3205	3205	(x) a value-added nonvoice data service; or
3206	3206	1578
3207	3207	(xi) tangible personal property.
3208	3208	1579
3209	3209	[(142)] (143)(a) "Telecommunications service provider" means a person that:
3210	3210	1580
3211	3211	(i) owns, controls, operates, or manages a telecommunications service; and
3212	3212	1581
3213	3213	(ii) engages in an activity described in Subsection [(142)(a)(i)] (143)(a)(i) for the
3214	3214	1582
3215	3215	shared use with or resale to any person of the telecommunications service.
3216	3216	1583
3217	3217	(b) A person described in Subsection [(142)(a)] (143)(a) is a telecommunications service
3218	3218	1584
3219	3219	provider whether or not the Public Service Commission of Utah regulates:
3220	3220	1585
3221	3221	(i) that person; or
3222	3222	1586
3223	3223	(ii) the telecommunications service that the person owns, controls, operates, or
3224	3224	1587
3225	3225	manages.
3226	3226	1588
3227	3227	[(143)] (144)(a) "Telecommunications switching or routing equipment, machinery, or
3228	3228	1589
3229	3229	software" means an item listed in Subsection [(143)(b)] (144)(b) if that item is
3230	3230	1590
3231	3231	purchased or leased primarily for switching or routing:
3232	3232	1591
3233	3233	(i) an ancillary service;
3234	3234	1592
3235	3235	(ii) data communications;
3236	3236	1593
3237	3237	(iii) voice communications; or
3238	3238	1594
3239	3239	(iv) telecommunications service.
3240	3240	- 47 - S.B. 311 02-20 10:39
3241	3241	1595
3242	3242	(b) The following apply to Subsection [(143)(a)] (144)(a):
3243	3243	1596
3244	3244	(i) a bridge;
3245	3245	1597
3246	3246	(ii) a computer;
3247	3247	1598
3248	3248	(iii) a cross connect;
3249	3249	1599
3250	3250	(iv) a modem;
3251	3251	1600
3252	3252	(v) a multiplexer;
3253	3253	1601
3254	3254	(vi) plug in circuitry;
3255	3255	1602
3256	3256	(vii) a router;
3257	3257	1603
3258	3258	(viii) software;
3259	3259	1604
3260	3260	(ix) a switch; or
3261	3261	1605
3262	3262	(x) equipment, machinery, or software that functions similarly to an item listed in
3263	3263	1606
3264	3264	Subsections [(143)(b)(i)] (144)(b)(i) through (ix) as determined by the commission
3265	3265	1607
3266	3266	by rule made in accordance with Subsection [(143)(c)] (144)(c).
3267	3267	1608
3268	3268	(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3269	3269	1609
3270	3270	commission may by rule define what constitutes equipment, machinery, or software
3271	3271	1610
3272	3272	that functions similarly to an item listed in Subsections [(143)(b)(i)] (144)(b)(i)
3273	3273	1611
3274	3274	through (ix).
3275	3275	1612
3276	3276	[(144)] (145)(a) "Telecommunications transmission equipment, machinery, or software"
3277	3277	1613
3278	3278	means an item listed in Subsection [(144)(b)] (145)(b) if that item is purchased or
3279	3279	1614
3280	3280	leased primarily for sending, receiving, or transporting:
3281	3281	1615
3282	3282	(i) an ancillary service;
3283	3283	1616
3284	3284	(ii) data communications;
3285	3285	1617
3286	3286	(iii) voice communications; or
3287	3287	1618
3288	3288	(iv) telecommunications service.
3289	3289	1619
3290	3290	(b) The following apply to Subsection [(144)(a)] (145)(a):
3291	3291	1620
3292	3292	(i) an amplifier;
3293	3293	1621
3294	3294	(ii) a cable;
3295	3295	1622
3296	3296	(iii) a closure;
3297	3297	1623
3298	3298	(iv) a conduit;
3299	3299	1624
3300	3300	(v) a controller;
3301	3301	1625
3302	3302	(vi) a duplexer;
3303	3303	1626
3304	3304	(vii) a filter;
3305	3305	1627
3306	3306	(viii) an input device;
3307	3307	1628
3308	3308	(ix) an input/output device;
3309	3309	- 48 - 02-20 10:39 S.B. 311
3310	3310	1629
3311	3311	(x) an insulator;
3312	3312	1630
3313	3313	(xi) microwave machinery or equipment;
3314	3314	1631
3315	3315	(xii) an oscillator;
3316	3316	1632
3317	3317	(xiii) an output device;
3318	3318	1633
3319	3319	(xiv) a pedestal;
3320	3320	1634
3321	3321	(xv) a power converter;
3322	3322	1635
3323	3323	(xvi) a power supply;
3324	3324	1636
3325	3325	(xvii) a radio channel;
3326	3326	1637
3327	3327	(xviii) a radio receiver;
3328	3328	1638
3329	3329	(xix) a radio transmitter;
3330	3330	1639
3331	3331	(xx) a repeater;
3332	3332	1640
3333	3333	(xxi) software;
3334	3334	1641
3335	3335	(xxii) a terminal;
3336	3336	1642
3337	3337	(xxiii) a timing unit;
3338	3338	1643
3339	3339	(xxiv) a transformer;
3340	3340	1644
3341	3341	(xxv) a wire; or
3342	3342	1645
3343	3343	(xxvi) equipment, machinery, or software that functions similarly to an item listed in
3344	3344	1646
3345	3345	Subsections [(144)(b)(i)] (145)(b)(i) through (xxv) as determined by the
3346	3346	1647
3347	3347	commission by rule made in accordance with Subsection [(144)(c)] (145)(c).
3348	3348	1648
3349	3349	(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3350	3350	1649
3351	3351	commission may by rule define what constitutes equipment, machinery, or software
3352	3352	1650
3353	3353	that functions similarly to an item listed in Subsections [(144)(b)(i)] (145)(b)(i)
3354	3354	1651
3355	3355	through (xxv).
3356	3356	1652
3357	3357	[(145)] (146)(a) "Textbook for a higher education course" means a textbook or other
3358	3358	1653
3359	3359	printed material that is required for a course:
3360	3360	1654
3361	3361	(i) offered by an institution of higher education; and
3362	3362	1655
3363	3363	(ii) that the purchaser of the textbook or other printed material attends or will attend.
3364	3364	1656
3365	3365	(b) "Textbook for a higher education course" includes a textbook in electronic format.
3366	3366	1657
3367	3367	[(146)] (147) "Tobacco" means:
3368	3368	1658
3369	3369	(a) a cigarette;
3370	3370	1659
3371	3371	(b) a cigar;
3372	3372	1660
3373	3373	(c) chewing tobacco;
3374	3374	1661
3375	3375	(d) pipe tobacco; or
3376	3376	1662
3377	3377	(e) any other item that contains tobacco.
3378	3378	- 49 - S.B. 311 02-20 10:39
3379	3379	1663
3380	3380	[(147)] (148) "Unassisted amusement device" means an amusement device, skill device, or
3381	3381	1664
3382	3382	ride device that is started and stopped by the purchaser or renter of the right to use or
3383	3383	1665
3384	3384	operate the amusement device, skill device, or ride device.
3385	3385	1666
3386	3386	[(148)] (149)(a) "Use" means the exercise of any right or power over tangible personal
3387	3387	1667
3388	3388	property, a product transferred electronically, or a service under Subsection 59-12-103
3389	3389	1668
3390	3390	(1), incident to the ownership or the leasing of that tangible personal property,
3391	3391	1669
3392	3392	product transferred electronically, or service.
3393	3393	1670
3394	3394	(b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
3395	3395	1671
3396	3396	property, a product transferred electronically, or a service in the regular course of
3397	3397	1672
3398	3398	business and held for resale.
3399	3399	1673
3400	3400	[(149)] (150) "Value-added nonvoice data service" means a service:
3401	3401	1674
3402	3402	(a) that otherwise meets the definition of a telecommunications service except that a
3403	3403	1675
3404	3404	computer processing application is used to act primarily for a purpose other than
3405	3405	1676
3406	3406	conveyance, routing, or transmission; and
3407	3407	1677
3408	3408	(b) with respect to which a computer processing application is used to act on data or
3409	3409	1678
3410	3410	information:
3411	3411	1679
3412	3412	(i) code;
3413	3413	1680
3414	3414	(ii) content;
3415	3415	1681
3416	3416	(iii) form; or
3417	3417	1682
3418	3418	(iv) protocol.
3419	3419	1683
3420	3420	[(150)] (151)(a) Subject to Subsection [(150)(b)] (151)(b), "vehicle" means the following
3421	3421	1684
3422	3422	that are required to be titled, registered, or titled and registered:
3423	3423	1685
3424	3424	(i) an aircraft as defined in Section 72-10-102;
3425	3425	1686
3426	3426	(ii) a vehicle as defined in Section 41-1a-102;
3427	3427	1687
3428	3428	(iii) an off-highway vehicle as defined in Section 41-22-2; or
3429	3429	1688
3430	3430	(iv) a vessel as defined in Section 41-1a-102.
3431	3431	1689
3432	3432	(b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
3433	3433	1690
3434	3434	(i) a vehicle described in Subsection [(150)(a)] (151)(a); or
3435	3435	1691
3436	3436	(ii)(A) a locomotive;
3437	3437	1692
3438	3438	(B) a freight car;
3439	3439	1693
3440	3440	(C) railroad work equipment; or
3441	3441	1694
3442	3442	(D) other railroad rolling stock.
3443	3443	1695
3444	3444	[(151)] (152) "Vehicle dealer" means a person engaged in the business of buying, selling, or
3445	3445	1696
3446	3446	exchanging a vehicle as defined in Subsection [(150)] (151).
3447	3447	- 50 - 02-20 10:39 S.B. 311
3448	3448	1697
3449	3449	[(152)] (153)(a) "Vertical service" means an ancillary service that:
3450	3450	1698
3451	3451	(i) is offered in connection with one or more telecommunications services; and
3452	3452	1699
3453	3453	(ii) offers an advanced calling feature that allows a customer to:
3454	3454	1700
3455	3455	(A) identify a caller; and
3456	3456	1701
3457	3457	(B) manage multiple calls and call connections.
3458	3458	1702
3459	3459	(b) "Vertical service" includes an ancillary service that allows a customer to manage a
3460	3460	1703
3461	3461	conference bridging service.
3462	3462	1704
3463	3463	[(153)] (154)(a) "Voice mail service" means an ancillary service that enables a customer
3464	3464	1705
3465	3465	to receive, send, or store a recorded message.
3466	3466	1706
3467	3467	(b) "Voice mail service" does not include a vertical service that a customer is required to
3468	3468	1707
3469	3469	have in order to utilize a voice mail service.
3470	3470	1708
3471	3471	[(154)] (155)(a) "Waste energy facility" means a facility that generates electricity:
3472	3472	1709
3473	3473	(i) using as the primary source of energy waste materials that would be placed in a
3474	3474	1710
3475	3475	landfill or refuse pit if it were not used to generate electricity, including:
3476	3476	1711
3477	3477	(A) tires;
3478	3478	1712
3479	3479	(B) waste coal;
3480	3480	1713
3481	3481	(C) oil shale; or
3482	3482	1714
3483	3483	(D) municipal solid waste; and
3484	3484	1715
3485	3485	(ii) in amounts greater than actually required for the operation of the facility.
3486	3486	1716
3487	3487	(b) "Waste energy facility" does not include a facility that incinerates:
3488	3488	1717
3489	3489	(i) hospital waste as defined in 40 C.F.R. 60.51c; or
3490	3490	1718
3491	3491	(ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
3492	3492	1719
3493	3493	[(155)] (156) "Watercraft" means a vessel as defined in Section 73-18-2.
3494	3494	1720
3495	3495	[(156)] (157) "Wind energy" means wind used as the sole source of energy to produce
3496	3496	1721
3497	3497	electricity.
3498	3498	1722
3499	3499	[(157)] (158) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
3500	3500	1723
3501	3501	location by the United States Postal Service.
3502	3502	1724
3503	3503	Section 2. Section 59-12-104 is amended to read:
3504	3504	1725
3505	3505	59-12-104 . Exemptions.
3506	3506	1726
3507	3507	Exemptions from the taxes imposed by this chapter are as follows:
3508	3508	1727
3509	3509	(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
3510	3510	1728
3511	3511	under Chapter 13, Motor and Special Fuel Tax Act;
3512	3512	1729
3513	3513	(2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
3514	3514	1730
3515	3515	subdivisions; however, this exemption does not apply to sales of:
3516	3516	- 51 - S.B. 311 02-20 10:39
3517	3517	1731
3518	3518	(a) construction materials except:
3519	3519	1732
3520	3520	(i) construction materials purchased by or on behalf of institutions of the public
3521	3521	1733
3522	3522	education system as defined in Utah Constitution, Article X, Section 2, provided
3523	3523	1734
3524	3524	the construction materials are clearly identified and segregated and installed or
3525	3525	1735
3526	3526	converted to real property which is owned by institutions of the public education
3527	3527	1736
3528	3528	system; and
3529	3529	1737
3530	3530	(ii) construction materials purchased by the state, its institutions, or its political
3531	3531	1738
3532	3532	subdivisions which are installed or converted to real property by employees of the
3533	3533	1739
3534	3534	state, its institutions, or its political subdivisions; or
3535	3535	1740
3536	3536	(b) tangible personal property in connection with the construction, operation,
3537	3537	1741
3538	3538	maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or
3539	3539	1742
3540	3540	facilities providing additional project capacity, as defined in Section 11-13-103;
3541	3541	1743
3542	3542	(3)(a) sales of an item described in Subsection (3)(b) from a vending machine if:
3543	3543	1744
3544	3544	(i) the proceeds of each sale do not exceed $1; and
3545	3545	1745
3546	3546	(ii) the seller or operator of the vending machine reports an amount equal to 150% of
3547	3547	1746
3548	3548	the cost of the item described in Subsection (3)(b) as goods consumed; and
3549	3549	1747
3550	3550	(b) Subsection (3)(a) applies to:
3551	3551	1748
3552	3552	(i) food and food ingredients; or
3553	3553	1749
3554	3554	(ii) prepared food;
3555	3555	1750
3556	3556	(4)(a) sales of the following to a commercial airline carrier for in-flight consumption:
3557	3557	1751
3558	3558	(i) alcoholic beverages;
3559	3559	1752
3560	3560	(ii) food and food ingredients; or
3561	3561	1753
3562	3562	(iii) prepared food;
3563	3563	1754
3564	3564	(b) sales of tangible personal property or a product transferred electronically:
3565	3565	1755
3566	3566	(i) to a passenger;
3567	3567	1756
3568	3568	(ii) by a commercial airline carrier; and
3569	3569	1757
3570	3570	(iii) during a flight for in-flight consumption or in-flight use by the passenger; or
3571	3571	1758
3572	3572	(c) services related to Subsection (4)(a) or (b);
3573	3573	1759
3574	3574	(5) sales of parts and equipment for installation in an aircraft operated by a common carrier
3575	3575	1760
3576	3576	in interstate or foreign commerce;
3577	3577	1761
3578	3578	(6) sales of commercials, motion picture films, prerecorded audio program tapes or records,
3579	3579	1762
3580	3580	and prerecorded video tapes by a producer, distributor, or studio to a motion picture
3581	3581	1763
3582	3582	exhibitor, distributor, or commercial television or radio broadcaster;
3583	3583	1764
3584	3584	(7)(a) except as provided in Subsection (85) and subject to Subsection (7)(b), sales of
3585	3585	- 52 - 02-20 10:39 S.B. 311
3586	3586	1765
3587	3587	cleaning or washing of tangible personal property if the cleaning or washing of the
3588	3588	1766
3589	3589	tangible personal property is not assisted cleaning or washing of tangible personal
3590	3590	1767
3591	3591	property;
3592	3592	1768
3593	3593	(b) if a seller that sells at the same business location assisted cleaning or washing of
3594	3594	1769
3595	3595	tangible personal property and cleaning or washing of tangible personal property that
3596	3596	1770
3597	3597	is not assisted cleaning or washing of tangible personal property, the exemption
3598	3598	1771
3599	3599	described in Subsection (7)(a) applies if the seller separately accounts for the sales of
3600	3600	1772
3601	3601	the assisted cleaning or washing of the tangible personal property; and
3602	3602	1773
3603	3603	(c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3, Utah
3604	3604	1774
3605	3605	Administrative Rulemaking Act, the commission may make rules:
3606	3606	1775
3607	3607	(i) governing the circumstances under which sales are at the same business location;
3608	3608	1776
3609	3609	and
3610	3610	1777
3611	3611	(ii) establishing the procedures and requirements for a seller to separately account for
3612	3612	1778
3613	3613	sales of assisted cleaning or washing of tangible personal property;
3614	3614	1779
3615	3615	(8) sales made to or by religious or charitable institutions in the conduct of their regular
3616	3616	1780
3617	3617	religious or charitable functions and activities, if the requirements of Section 59-12-104.1
3618	3618	1781
3619	3619	are fulfilled;
3620	3620	1782
3621	3621	(9) sales of a vehicle of a type required to be registered under the motor vehicle laws of this
3622	3622	1783
3623	3623	state if:
3624	3624	1784
3625	3625	(a) the sale is not from the vehicle's lessor to the vehicle's lessee;
3626	3626	1785
3627	3627	(b) the vehicle is not registered in this state; and
3628	3628	1786
3629	3629	(c)(i) the vehicle is not used in this state; or
3630	3630	1787
3631	3631	(ii) the vehicle is used in this state:
3632	3632	1788
3633	3633	(A) if the vehicle is not used to conduct business, for a time period that does not
3634	3634	1789
3635	3635	exceed the longer of:
3636	3636	1790
3637	3637	(I) 30 days in any calendar year; or
3638	3638	1791
3639	3639	(II) the time period necessary to transport the vehicle to the borders of this
3640	3640	1792
3641	3641	state; or
3642	3642	1793
3643	3643	(B) if the vehicle is used to conduct business, for the time period necessary to
3644	3644	1794
3645	3645	transport the vehicle to the borders of this state;
3646	3646	1795
3647	3647	(10)(a) amounts paid for an item described in Subsection (10)(b) if:
3648	3648	1796
3649	3649	(i) the item is intended for human use; and
3650	3650	1797
3651	3651	(ii)(A) a prescription was issued for the item; or
3652	3652	1798
3653	3653	(B) the item was purchased by a hospital or other medical facility; and
3654	3654	- 53 - S.B. 311 02-20 10:39
3655	3655	1799
3656	3656	(b)(i) Subsection (10)(a) applies to:
3657	3657	1800
3658	3658	(A) a drug;
3659	3659	1801
3660	3660	(B) a syringe; or
3661	3661	1802
3662	3662	(C) a stoma supply; and
3663	3663	1803
3664	3664	(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
3665	3665	1804
3666	3666	the commission may by rule define the terms:
3667	3667	1805
3668	3668	(A) "syringe"; or
3669	3669	1806
3670	3670	(B) "stoma supply";
3671	3671	1807
3672	3672	(11) purchases or leases exempt under Section 19-12-201;
3673	3673	1808
3674	3674	(12)(a) sales of an item described in Subsection (12)(c) served by:
3675	3675	1809
3676	3676	(i) the following if the item described in Subsection (12)(c) is not available to the
3677	3677	1810
3678	3678	general public:
3679	3679	1811
3680	3680	(A) a church; or
3681	3681	1812
3682	3682	(B) a charitable institution; or
3683	3683	1813
3684	3684	(ii) an institution of higher education if:
3685	3685	1814
3686	3686	(A) the item described in Subsection (12)(c) is not available to the general public;
3687	3687	1815
3688	3688	or
3689	3689	1816
3690	3690	(B) the item described in Subsection (12)(c) is prepaid as part of a student meal
3691	3691	1817
3692	3692	plan offered by the institution of higher education; [or]
3693	3693	1818
3694	3694	(b) sales of an item described in Subsection (12)(c) provided for a patient by:
3695	3695	1819
3696	3696	(i) a medical facility; or
3697	3697	1820
3698	3698	(ii) a nursing facility; and
3699	3699	1821
3700	3700	(c) Subsections (12)(a) and (b) apply to:
3701	3701	1822
3702	3702	(i) food and food ingredients;
3703	3703	1823
3704	3704	(ii) prepared food; or
3705	3705	1824
3706	3706	(iii) alcoholic beverages;
3707	3707	1825
3708	3708	(13)(a) except as provided in Subsection (13)(b), the sale of tangible personal property
3709	3709	1826
3710	3710	or a product transferred electronically by a person:
3711	3711	1827
3712	3712	(i) regardless of the number of transactions involving the sale of that tangible
3713	3713	1828
3714	3714	personal property or product transferred electronically by that person; and
3715	3715	1829
3716	3716	(ii) not regularly engaged in the business of selling that type of tangible personal
3717	3717	1830
3718	3718	property or product transferred electronically;
3719	3719	1831
3720	3720	(b) this Subsection (13) does not apply if:
3721	3721	1832
3722	3722	(i) the sale is one of a series of sales of a character to indicate that the person is
3723	3723	- 54 - 02-20 10:39 S.B. 311
3724	3724	1833
3725	3725	regularly engaged in the business of selling that type of tangible personal property
3726	3726	1834
3727	3727	or product transferred electronically;
3728	3728	1835
3729	3729	(ii) the person holds that person out as regularly engaged in the business of selling
3730	3730	1836
3731	3731	that type of tangible personal property or product transferred electronically;
3732	3732	1837
3733	3733	(iii) the person sells an item of tangible personal property or product transferred
3734	3734	1838
3735	3735	electronically that the person purchased as a sale that is exempt under Subsection
3736	3736	1839
3737	3737	(25); or
3738	3738	1840
3739	3739	(iv) the sale is of a vehicle or vessel required to be titled or registered under the laws
3740	3740	1841
3741	3741	of this state in which case the tax is based upon:
3742	3742	1842
3743	3743	(A) the bill of sale, lease agreement, or other written evidence of value of the
3744	3744	1843
3745	3745	vehicle or vessel being sold; or
3746	3746	1844
3747	3747	(B) in the absence of a bill of sale, lease agreement, or other written evidence of
3748	3748	1845
3749	3749	value, the fair market value of the vehicle or vessel being sold at the time of the
3750	3750	1846
3751	3751	sale as determined by the commission; and
3752	3752	1847
3753	3753	(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3754	3754	1848
3755	3755	commission shall make rules establishing the circumstances under which:
3756	3756	1849
3757	3757	(i) a person is regularly engaged in the business of selling a type of tangible personal
3758	3758	1850
3759	3759	property or product transferred electronically;
3760	3760	1851
3761	3761	(ii) a sale of tangible personal property or a product transferred electronically is one
3762	3762	1852
3763	3763	of a series of sales of a character to indicate that a person is regularly engaged in
3764	3764	1853
3765	3765	the business of selling that type of tangible personal property or product
3766	3766	1854
3767	3767	transferred electronically; or
3768	3768	1855
3769	3769	(iii) a person holds that person out as regularly engaged in the business of selling a
3770	3770	1856
3771	3771	type of tangible personal property or product transferred electronically;
3772	3772	1857
3773	3773	(14) amounts paid or charged for a purchase or lease of machinery, equipment, normal
3774	3774	1858
3775	3775	operating repair or replacement parts, or materials, except for office equipment or office
3776	3776	1859
3777	3777	supplies, by:
3778	3778	1860
3779	3779	(a) a manufacturing facility that:
3780	3780	1861
3781	3781	(i) is located in the state; and
3782	3782	1862
3783	3783	(ii) uses or consumes the machinery, equipment, normal operating repair or
3784	3784	1863
3785	3785	replacement parts, or materials:
3786	3786	1864
3787	3787	(A) in the manufacturing process to manufacture an item sold as tangible personal
3788	3788	1865
3789	3789	property, as the commission may define that phrase in accordance with Title
3790	3790	1866
3791	3791	63G, Chapter 3, Utah Administrative Rulemaking Act; or
3792	3792	- 55 - S.B. 311 02-20 10:39
3793	3793	1867
3794	3794	(B) for a scrap recycler, to process an item sold as tangible personal property, as
3795	3795	1868
3796	3796	the commission may define that phrase in accordance with Title 63G, Chapter
3797	3797	1869
3798	3798	3, Utah Administrative Rulemaking Act;
3799	3799	1870
3800	3800	(b) an establishment, as the commission defines that term in accordance with Title 63G,
3801	3801	1871
3802	3802	Chapter 3, Utah Administrative Rulemaking Act, that:
3803	3803	1872
3804	3804	(i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
3805	3805	1873
3806	3806	Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
3807	3807	1874
3808	3808	Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except
3809	3809	1875
3810	3810	Fuels) Mining, of the 2002 North American Industry Classification System of the
3811	3811	1876
3812	3812	federal Executive Office of the President, Office of Management and Budget;
3813	3813	1877
3814	3814	(ii) is located in the state; and
3815	3815	1878
3816	3816	(iii) uses or consumes the machinery, equipment, normal operating repair or
3817	3817	1879
3818	3818	replacement parts, or materials in:
3819	3819	1880
3820	3820	(A) the production process to produce an item sold as tangible personal property,
3821	3821	1881
3822	3822	as the commission may define that phrase in accordance with Title 63G,
3823	3823	1882
3824	3824	Chapter 3, Utah Administrative Rulemaking Act;
3825	3825	1883
3826	3826	(B) research and development, as the commission may define that phrase in
3827	3827	1884
3828	3828	accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
3829	3829	1885
3830	3830	(C) transporting, storing, or managing tailings, overburden, or similar waste
3831	3831	1886
3832	3832	materials produced from mining;
3833	3833	1887
3834	3834	(D) developing or maintaining a road, tunnel, excavation, or similar feature used
3835	3835	1888
3836	3836	in mining; or
3837	3837	1889
3838	3838	(E) preventing, controlling, or reducing dust or other pollutants from mining; or
3839	3839	1890
3840	3840	(c) an establishment, as the commission defines that term in accordance with Title 63G,
3841	3841	1891
3842	3842	Chapter 3, Utah Administrative Rulemaking Act, that:
3843	3843	1892
3844	3844	(i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North
3845	3845	1893
3846	3846	American Industry Classification System of the federal Executive Office of the
3847	3847	1894
3848	3848	President, Office of Management and Budget;
3849	3849	1895
3850	3850	(ii) is located in the state; and
3851	3851	1896
3852	3852	(iii) uses or consumes the machinery, equipment, normal operating repair or
3853	3853	1897
3854	3854	replacement parts, or materials in the operation of the web search portal;
3855	3855	1898
3856	3856	(15)(a) sales of the following if the requirements of Subsection (15)(b) are met:
3857	3857	1899
3858	3858	(i) tooling;
3859	3859	1900
3860	3860	(ii) special tooling;
3861	3861	- 56 - 02-20 10:39 S.B. 311
3862	3862	1901
3863	3863	(iii) support equipment;
3864	3864	1902
3865	3865	(iv) special test equipment; or
3866	3866	1903
3867	3867	(v) parts used in the repairs or renovations of tooling or equipment described in
3868	3868	1904
3869	3869	Subsections (15)(a)(i) through (iv); and
3870	3870	1905
3871	3871	(b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
3872	3872	1906
3873	3873	(i) the tooling, equipment, or parts are used or consumed exclusively in the
3874	3874	1907
3875	3875	performance of any aerospace or electronics industry contract with the United
3876	3876	1908
3877	3877	States government or any subcontract under that contract; and
3878	3878	1909
3879	3879	(ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
3880	3880	1910
3881	3881	title to the tooling, equipment, or parts is vested in the United States government
3882	3882	1911
3883	3883	as evidenced by:
3884	3884	1912
3885	3885	(A) a government identification tag placed on the tooling, equipment, or parts; or
3886	3886	1913
3887	3887	(B) listing on a government-approved property record if placing a government
3888	3888	1914
3889	3889	identification tag on the tooling, equipment, or parts is impractical;
3890	3890	1915
3891	3891	(16) sales of newspapers or newspaper subscriptions;
3892	3892	1916
3893	3893	(17)(a) except as provided in Subsection (17)(b), tangible personal property or a product
3894	3894	1917
3895	3895	transferred electronically traded in as full or part payment of the purchase price,
3896	3896	1918
3897	3897	except that for purposes of calculating sales or use tax upon vehicles not sold by a
3898	3898	1919
3899	3899	vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
3900	3900	1920
3901	3901	(i) the bill of sale or other written evidence of value of the vehicle being sold and the
3902	3902	1921
3903	3903	vehicle being traded in; or
3904	3904	1922
3905	3905	(ii) in the absence of a bill of sale or other written evidence of value, the then existing
3906	3906	1923
3907	3907	fair market value of the vehicle being sold and the vehicle being traded in, as
3908	3908	1924
3909	3909	determined by the commission; and
3910	3910	1925
3911	3911	(b) Subsection (17)(a) does not apply to the following items of tangible personal
3912	3912	1926
3913	3913	property or products transferred electronically traded in as full or part payment of the
3914	3914	1927
3915	3915	purchase price:
3916	3916	1928
3917	3917	(i) money;
3918	3918	1929
3919	3919	(ii) electricity;
3920	3920	1930
3921	3921	(iii) water;
3922	3922	1931
3923	3923	(iv) gas; or
3924	3924	1932
3925	3925	(v) steam;
3926	3926	1933
3927	3927	(18)(a)(i) except as provided in Subsection (18)(b), sales of tangible personal
3928	3928	1934
3929	3929	property or a product transferred electronically used or consumed primarily and
3930	3930	- 57 - S.B. 311 02-20 10:39
3931	3931	1935
3932	3932	directly in farming operations, regardless of whether the tangible personal
3933	3933	1936
3934	3934	property or product transferred electronically:
3935	3935	1937
3936	3936	(A) becomes part of real estate; or
3937	3937	1938
3938	3938	(B) is installed by a farmer, contractor, or subcontractor; or
3939	3939	1939
3940	3940	(ii) sales of parts used in the repairs or renovations of tangible personal property or a
3941	3941	1940
3942	3942	product transferred electronically if the tangible personal property or product
3943	3943	1941
3944	3944	transferred electronically is exempt under Subsection (18)(a)(i); and
3945	3945	1942
3946	3946	(b) amounts paid or charged for the following are subject to the taxes imposed by this
3947	3947	1943
3948	3948	chapter:
3949	3949	1944
3950	3950	(i)(A) subject to Subsection (18)(b)(i)(B), machinery, equipment, materials, or
3951	3951	1945
3952	3952	supplies if used in a manner that is incidental to farming; and
3953	3953	1946
3954	3954	(B) tangible personal property that is considered to be used in a manner that is
3955	3955	1947
3956	3956	incidental to farming includes:
3957	3957	1948
3958	3958	(I) hand tools; or
3959	3959	1949
3960	3960	(II) maintenance and janitorial equipment and supplies;
3961	3961	1950
3962	3962	(ii)(A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
3963	3963	1951
3964	3964	transferred electronically if the tangible personal property or product
3965	3965	1952
3966	3966	transferred electronically is used in an activity other than farming; and
3967	3967	1953
3968	3968	(B) tangible personal property or a product transferred electronically that is
3969	3969	1954
3970	3970	considered to be used in an activity other than farming includes:
3971	3971	1955
3972	3972	(I) office equipment and supplies; or
3973	3973	1956
3974	3974	(II) equipment and supplies used in:
3975	3975	1957
3976	3976	(Aa) the sale or distribution of farm products;
3977	3977	1958
3978	3978	(Bb) research; or
3979	3979	1959
3980	3980	(Cc) transportation; or
3981	3981	1960
3982	3982	(iii) a vehicle required to be registered by the laws of this state during the period
3983	3983	1961
3984	3984	ending two years after the date of the vehicle's purchase;
3985	3985	1962
3986	3986	(19) sales of hay;
3987	3987	1963
3988	3988	(20) exclusive sale during the harvest season of seasonal crops, seedling plants, or garden,
3989	3989	1964
3990	3990	farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
3991	3991	1965
3992	3992	garden, farm, or other agricultural produce is sold by:
3993	3993	1966
3994	3994	(a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
3995	3995	1967
3996	3996	agricultural produce;
3997	3997	1968
3998	3998	(b) an employee of the producer described in Subsection (20)(a); or
3999	3999	- 58 - 02-20 10:39 S.B. 311
4000	4000	1969
4001	4001	(c) a member of the immediate family of the producer described in Subsection (20)(a);
4002	4002	1970
4003	4003	(21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued under
4004	4004	1971
4005	4005	the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
4006	4006	1972
4007	4007	(22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
4008	4008	1973
4009	4009	nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
4010	4010	1974
4011	4011	wholesaler, or retailer for use in packaging tangible personal property to be sold by that
4012	4012	1975
4013	4013	manufacturer, processor, wholesaler, or retailer;
4014	4014	1976
4015	4015	(23) a product stored in the state for resale;
4016	4016	1977
4017	4017	(24)(a) purchases of a product if:
4018	4018	1978
4019	4019	(i) the product is:
4020	4020	1979
4021	4021	(A) purchased outside of this state;
4022	4022	1980
4023	4023	(B) brought into this state:
4024	4024	1981
4025	4025	(I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
4026	4026	1982
4027	4027	(II) by a nonresident person who is not living or working in this state at the
4028	4028	1983
4029	4029	time of the purchase;
4030	4030	1984
4031	4031	(C) used for the personal use or enjoyment of the nonresident person described in
4032	4032	1985
4033	4033	Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state;
4034	4034	1986
4035	4035	and
4036	4036	1987
4037	4037	(D) not used in conducting business in this state; and
4038	4038	1988
4039	4039	(ii) for:
4040	4040	1989
4041	4041	(A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use
4042	4042	1990
4043	4043	of the product for a purpose for which the product is designed occurs outside of
4044	4044	1991
4045	4045	this state;
4046	4046	1992
4047	4047	(B) a boat, the boat is registered outside of this state; or
4048	4048	1993
4049	4049	(C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
4050	4050	1994
4051	4051	registered outside of this state;
4052	4052	1995
4053	4053	(b) the exemption provided for in Subsection (24)(a) does not apply to:
4054	4054	1996
4055	4055	(i) a lease or rental of a product; or
4056	4056	1997
4057	4057	(ii) a sale of a vehicle exempt under Subsection (33); and
4058	4058	1998
4059	4059	(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
4060	4060	1999
4061	4061	purposes of Subsection (24)(a), the commission may by rule define what constitutes
4062	4062	2000
4063	4063	the following:
4064	4064	2001
4065	4065	(i) conducting business in this state if that phrase has the same meaning in this
4066	4066	2002
4067	4067	Subsection (24) as in Subsection (63);
4068	4068	- 59 - S.B. 311 02-20 10:39
4069	4069	2003
4070	4070	(ii) the first use of a product if that phrase has the same meaning in this Subsection
4071	4071	2004
4072	4072	(24) as in Subsection (63); or
4073	4073	2005
4074	4074	(iii) a purpose for which a product is designed if that phrase has the same meaning in
4075	4075	2006
4076	4076	this Subsection (24) as in Subsection (63);
4077	4077	2007
4078	4078	(25) a product purchased for resale in the regular course of business, either in its original
4079	4079	2008
4080	4080	form or as an ingredient or component part of a manufactured or compounded product;
4081	4081	2009
4082	4082	(26) a product upon which a sales or use tax was paid to some other state, or one of its
4083	4083	2010
4084	4084	subdivisions, except that the state shall be paid any difference between the tax paid and
4085	4085	2011
4086	4086	the tax imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment
4087	4087	2012
4088	4088	is allowed if the tax paid was greater than the tax imposed by this part and Part 2, Local
4089	4089	2013
4090	4090	Sales and Use Tax Act;
4091	4091	2014
4092	4092	(27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a person
4093	4093	2015
4094	4094	for use in compounding a service taxable under the subsections;
4095	4095	2016
4096	4096	(28) purchases made in accordance with the special supplemental nutrition program for
4097	4097	2017
4098	4098	women, infants, and children established in 42 U.S.C. Sec. 1786;
4099	4099	2018
4100	4100	(29) sales or leases of rolls, rollers, refractory brick, electric motors, or other replacement
4101	4101	2019
4102	4102	parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code 3312 of
4103	4103	2020
4104	4104	the 1987 Standard Industrial Classification Manual of the federal Executive Office of the
4105	4105	2021
4106	4106	President, Office of Management and Budget;
4107	4107	2022
4108	4108	(30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
4109	4109	2023
4110	4110	Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard
4111	4111	2024
4112	4112	motor is:
4113	4113	2025
4114	4114	(a) not registered in this state; and
4115	4115	2026
4116	4116	(b)(i) not used in this state; or
4117	4117	2027
4118	4118	(ii) used in this state:
4119	4119	2028
4120	4120	(A) if the boat, boat trailer, or outboard motor is not used to conduct business, for
4121	4121	2029
4122	4122	a time period that does not exceed the longer of:
4123	4123	2030
4124	4124	(I) 30 days in any calendar year; or
4125	4125	2031
4126	4126	(II) the time period necessary to transport the boat, boat trailer, or outboard
4127	4127	2032
4128	4128	motor to the borders of this state; or
4129	4129	2033
4130	4130	(B) if the boat, boat trailer, or outboard motor is used to conduct business, for the
4131	4131	2034
4132	4132	time period necessary to transport the boat, boat trailer, or outboard motor to
4133	4133	2035
4134	4134	the borders of this state;
4135	4135	2036
4136	4136	(31) sales of aircraft manufactured in Utah;
4137	4137	- 60 - 02-20 10:39 S.B. 311
4138	4138	2037
4139	4139	(32) amounts paid for the purchase of telecommunications service for purposes of
4140	4140	2038
4141	4141	providing telecommunications service;
4142	4142	2039
4143	4143	(33) sales, leases, or uses of the following:
4144	4144	2040
4145	4145	(a) a vehicle by an authorized carrier; or
4146	4146	2041
4147	4147	(b) tangible personal property that is installed on a vehicle:
4148	4148	2042
4149	4149	(i) sold or leased to or used by an authorized carrier; and
4150	4150	2043
4151	4151	(ii) before the vehicle is placed in service for the first time;
4152	4152	2044
4153	4153	(34)(a) 45% of the sales price of any new manufactured home; and
4154	4154	2045
4155	4155	(b) 100% of the sales price of any used manufactured home;
4156	4156	2046
4157	4157	(35) sales relating to schools and fundraising sales;
4158	4158	2047
4159	4159	(36) sales or rentals of durable medical equipment if:
4160	4160	2048
4161	4161	(a) a person presents a prescription for the durable medical equipment; and
4162	4162	2049
4163	4163	(b) the durable medical equipment is used for home use only;
4164	4164	2050
4165	4165	(37)(a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
4166	4166	2051
4167	4167	Section 72-11-102; and
4168	4168	2052
4169	4169	(b) the commission shall by rule determine the method for calculating sales exempt
4170	4170	2053
4171	4171	under Subsection (37)(a) that are not separately metered and accounted for in utility
4172	4172	2054
4173	4173	billings;
4174	4174	2055
4175	4175	(38) sales to a ski resort of:
4176	4176	2056
4177	4177	(a) snowmaking equipment;
4178	4178	2057
4179	4179	(b) ski slope grooming equipment;
4180	4180	2058
4181	4181	(c) passenger ropeways as defined in Section 72-11-102; or
4182	4182	2059
4183	4183	(d) parts used in the repairs or renovations of equipment or passenger ropeways
4184	4184	2060
4185	4185	described in Subsections (38)(a) through (c);
4186	4186	2061
4187	4187	(39) subject to Subsection 59-12-103(2)(j), sales of natural gas, electricity, heat, coal, fuel
4188	4188	2062
4189	4189	oil, or other fuels for industrial use;
4190	4190	2063
4191	4191	(40)(a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
4192	4192	2064
4193	4193	amusement, entertainment, or recreation an unassisted amusement device as defined
4194	4194	2065
4195	4195	in Section 59-12-102;
4196	4196	2066
4197	4197	(b) if a seller that sells or rents at the same business location the right to use or operate
4198	4198	2067
4199	4199	for amusement, entertainment, or recreation one or more unassisted amusement
4200	4200	2068
4201	4201	devices and one or more assisted amusement devices, the exemption described in
4202	4202	2069
4203	4203	Subsection (40)(a) applies if the seller separately accounts for the sales or rentals of
4204	4204	2070
4205	4205	the right to use or operate for amusement, entertainment, or recreation for the assisted
4206	4206	- 61 - S.B. 311 02-20 10:39
4207	4207	2071
4208	4208	amusement devices; and
4209	4209	2072
4210	4210	(c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3, Utah
4211	4211	2073
4212	4212	Administrative Rulemaking Act, the commission may make rules:
4213	4213	2074
4214	4214	(i) governing the circumstances under which sales are at the same business location;
4215	4215	2075
4216	4216	and
4217	4217	2076
4218	4218	(ii) establishing the procedures and requirements for a seller to separately account for
4219	4219	2077
4220	4220	the sales or rentals of the right to use or operate for amusement, entertainment, or
4221	4221	2078
4222	4222	recreation for assisted amusement devices;
4223	4223	2079
4224	4224	(41)(a) sales of photocopies by:
4225	4225	2080
4226	4226	(i) a governmental entity; or
4227	4227	2081
4228	4228	(ii) an entity within the state system of public education, including:
4229	4229	2082
4230	4230	(A) a school; or
4231	4231	2083
4232	4232	(B) the State Board of Education; or
4233	4233	2084
4234	4234	(b) sales of publications by a governmental entity;
4235	4235	2085
4236	4236	(42) amounts paid for admission to an athletic event at an institution of higher education
4237	4237	2086
4238	4238	that is subject to the provisions of Title IX of the Education Amendments of 1972, 20
4239	4239	2087
4240	4240	U.S.C. Sec. 1681 et seq.;
4241	4241	2088
4242	4242	(43)(a) sales made to or by:
4243	4243	2089
4244	4244	(i) an area agency on aging; or
4245	4245	2090
4246	4246	(ii) a senior citizen center owned by a county, city, or town; or
4247	4247	2091
4248	4248	(b) sales made by a senior citizen center that contracts with an area agency on aging;
4249	4249	2092
4250	4250	(44) sales or leases of semiconductor fabricating, processing, research, or development
4251	4251	2093
4252	4252	materials regardless of whether the semiconductor fabricating, processing, research, or
4253	4253	2094
4254	4254	development materials:
4255	4255	2095
4256	4256	(a) actually come into contact with a semiconductor; or
4257	4257	2096
4258	4258	(b) ultimately become incorporated into real property;
4259	4259	2097
4260	4260	(45) an amount paid by or charged to a purchaser for accommodations and services
4261	4261	2098
4262	4262	described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under
4263	4263	2099
4264	4264	Section 59-12-104.2;
4265	4265	2100
4266	4266	(46) the lease or use of a vehicle issued a temporary sports event registration certificate in
4267	4267	2101
4268	4268	accordance with Section 41-3-306 for the event period specified on the temporary sports
4269	4269	2102
4270	4270	event registration certificate;
4271	4271	2103
4272	4272	(47)(a) sales or uses of electricity, if the sales or uses are made under a retail tariff
4273	4273	2104
4274	4274	adopted by the Public Service Commission only for purchase of electricity produced
4275	4275	- 62 - 02-20 10:39 S.B. 311
4276	4276	2105
4277	4277	from a new alternative energy source built after January 1, 2016, as designated in the
4278	4278	2106
4279	4279	tariff by the Public Service Commission; and
4280	4280	2107
4281	4281	(b) for a residential use customer only, the exemption under Subsection (47)(a) applies
4282	4282	2108
4283	4283	only to the portion of the tariff rate a customer pays under the tariff described in
4284	4284	2109
4285	4285	Subsection (47)(a) that exceeds the tariff rate under the tariff described in Subsection
4286	4286	2110
4287	4287	(47)(a) that the customer would have paid absent the tariff;
4288	4288	2111
4289	4289	(48) sales or rentals of mobility enhancing equipment if a person presents a prescription for
4290	4290	2112
4291	4291	the mobility enhancing equipment;
4292	4292	2113
4293	4293	(49) sales of water in a:
4294	4294	2114
4295	4295	(a) pipe;
4296	4296	2115
4297	4297	(b) conduit;
4298	4298	2116
4299	4299	(c) ditch; or
4300	4300	2117
4301	4301	(d) reservoir;
4302	4302	2118
4303	4303	(50) sales of currency or coins that constitute legal tender of a state, the United States, or a
4304	4304	2119
4305	4305	foreign nation;
4306	4306	2120
4307	4307	(51)(a) sales of an item described in Subsection (51)(b) if the item:
4308	4308	2121
4309	4309	(i) does not constitute legal tender of a state, the United States, or a foreign nation;
4310	4310	2122
4311	4311	and
4312	4312	2123
4313	4313	(ii) has a gold, silver, or platinum content of 50% or more; and
4314	4314	2124
4315	4315	(b) Subsection (51)(a) applies to a gold, silver, or platinum:
4316	4316	2125
4317	4317	(i) ingot;
4318	4318	2126
4319	4319	(ii) bar;
4320	4320	2127
4321	4321	(iii) medallion; or
4322	4322	2128
4323	4323	(iv) decorative coin;
4324	4324	2129
4325	4325	(52) amounts paid on a sale-leaseback transaction;
4326	4326	2130
4327	4327	(53) sales of a prosthetic device:
4328	4328	2131
4329	4329	(a) for use on or in a human; and
4330	4330	2132
4331	4331	(b)(i) for which a prescription is required; or
4332	4332	2133
4333	4333	(ii) if the prosthetic device is purchased by a hospital or other medical facility;
4334	4334	2134
4335	4335	(54)(a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
4336	4336	2135
4337	4337	machinery or equipment by an establishment described in Subsection (54)(c) if the
4338	4338	2136
4339	4339	machinery or equipment is primarily used in the production or postproduction of the
4340	4340	2137
4341	4341	following media for commercial distribution:
4342	4342	2138
4343	4343	(i) a motion picture;
4344	4344	- 63 - S.B. 311 02-20 10:39
4345	4345	2139
4346	4346	(ii) a television program;
4347	4347	2140
4348	4348	(iii) a movie made for television;
4349	4349	2141
4350	4350	(iv) a music video;
4351	4351	2142
4352	4352	(v) a commercial;
4353	4353	2143
4354	4354	(vi) a documentary; or
4355	4355	2144
4356	4356	(vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
4357	4357	2145
4358	4358	commission by administrative rule made in accordance with Subsection (54)(d); [
4359	4359	2146
4360	4360	or]
4361	4361	2147
4362	4362	(b) purchases, leases, or rentals of machinery or equipment by an establishment
4363	4363	2148
4364	4364	described in Subsection (54)(c) that is used for the production or postproduction of
4365	4365	2149
4366	4366	the following are subject to the taxes imposed by this chapter:
4367	4367	2150
4368	4368	(i) a live musical performance;
4369	4369	2151
4370	4370	(ii) a live news program; or
4371	4371	2152
4372	4372	(iii) a live sporting event;
4373	4373	2153
4374	4374	(c) the following establishments listed in the 1997 North American Industry
4375	4375	2154
4376	4376	Classification System of the federal Executive Office of the President, Office of
4377	4377	2155
4378	4378	Management and Budget, apply to Subsections (54)(a) and (b):
4379	4379	2156
4380	4380	(i) NAICS Code 512110; or
4381	4381	2157
4382	4382	(ii) NAICS Code 51219; and
4383	4383	2158
4384	4384	(d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4385	4385	2159
4386	4386	commission may by rule:
4387	4387	2160
4388	4388	(i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
4389	4389	2161
4390	4390	or
4391	4391	2162
4392	4392	(ii) define:
4393	4393	2163
4394	4394	(A) "commercial distribution";
4395	4395	2164
4396	4396	(B) "live musical performance";
4397	4397	2165
4398	4398	(C) "live news program"; or
4399	4399	2166
4400	4400	(D) "live sporting event";
4401	4401	2167
4402	4402	(55)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
4403	4403	2168
4404	4404	or before June 30, [2027] 2037, of tangible personal property that:
4405	4405	2169
4406	4406	(i) is leased or purchased for or by a facility that:
4407	4407	2170
4408	4408	(A) is an alternative energy electricity production facility or an electricity storage
4409	4409	2171
4410	4410	facility;
4411	4411	2172
4412	4412	(B) is located in the state; and
4413	4413	- 64 - 02-20 10:39 S.B. 311
4414	4414	2173
4415	4415	(C)(I) becomes operational on or after July 1, 2004; or
4416	4416	2174
4417	4417	(II) has [its] the facility's generation or storage capacity increased by one or
4418	4418	2175
4419	4419	more megawatts on or after July 1, 2004, as a result of the use of the
4420	4420	2176
4421	4421	tangible personal property;
4422	4422	2177
4423	4423	(ii) has an economic life of five or more years; and
4424	4424	2178
4425	4425	(iii) is used to make the facility or the increase in capacity of the facility described in
4426	4426	2179
4427	4427	Subsection (55)(a)(i) operational up to the point of interconnection with an
4428	4428	2180
4429	4429	existing transmission grid including:
4430	4430	2181
4431	4431	(A) a wind turbine;
4432	4432	2182
4433	4433	(B) generating equipment;
4434	4434	2183
4435	4435	(C) a control and monitoring system;
4436	4436	2184
4437	4437	(D) a power line;
4438	4438	2185
4439	4439	(E) substation equipment;
4440	4440	2186
4441	4441	(F) lighting;
4442	4442	2187
4443	4443	(G) fencing;
4444	4444	2188
4445	4445	(H) pipes; [or]
4446	4446	2189
4447	4447	(I) other equipment used for locating a power line or pole; [and] or
4448	4448	2190
4449	4449	(J) electricity storage equipment; and
4450	4450	2191
4451	4451	(b) this Subsection (55) does not apply to:
4452	4452	2192
4453	4453	(i) tangible personal property used in construction of:
4454	4454	2193
4455	4455	(A) a new alternative energy electricity production facility; or
4456	4456	2194
4457	4457	(B) the increase in the capacity of an alternative energy electricity production
4458	4458	2195
4459	4459	facility or an electric storage facility;
4460	4460	2196
4461	4461	(ii) contracted services required for construction and routine maintenance activities;
4462	4462	2197
4463	4463	and
4464	4464	2198
4465	4465	(iii) unless the tangible personal property is used or acquired for an increase in
4466	4466	2199
4467	4467	capacity of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal
4468	4468	2200
4469	4469	property used or acquired after:
4470	4470	2201
4471	4471	(A) the alternative energy electricity production facility or electric storage facility
4472	4472	2202
4473	4473	described in Subsection (55)(a)(i) is operational as described in Subsection
4474	4474	2203
4475	4475	(55)(a)(iii); or
4476	4476	2204
4477	4477	(B) the increased capacity described in Subsection (55)(a)(i) is operational as
4478	4478	2205
4479	4479	described in Subsection (55)(a)(iii);
4480	4480	2206
4481	4481	(56)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
4482	4482	- 65 - S.B. 311 02-20 10:39
4483	4483	2207
4484	4484	or before June 30, 2027, of tangible personal property that:
4485	4485	2208
4486	4486	(i) is leased or purchased for or by a facility that:
4487	4487	2209
4488	4488	(A) is a waste energy production facility;
4489	4489	2210
4490	4490	(B) is located in the state; and
4491	4491	2211
4492	4492	(C)(I) becomes operational on or after July 1, 2004; or
4493	4493	2212
4494	4494	(II) has its generation capacity increased by one or more megawatts on or after
4495	4495	2213
4496	4496	July 1, 2004, as a result of the use of the tangible personal property;
4497	4497	2214
4498	4498	(ii) has an economic life of five or more years; and
4499	4499	2215
4500	4500	(iii) is used to make the facility or the increase in capacity of the facility described in
4501	4501	2216
4502	4502	Subsection (56)(a)(i) operational up to the point of interconnection with an
4503	4503	2217
4504	4504	existing transmission grid including:
4505	4505	2218
4506	4506	(A) generating equipment;
4507	4507	2219
4508	4508	(B) a control and monitoring system;
4509	4509	2220
4510	4510	(C) a power line;
4511	4511	2221
4512	4512	(D) substation equipment;
4513	4513	2222
4514	4514	(E) lighting;
4515	4515	2223
4516	4516	(F) fencing;
4517	4517	2224
4518	4518	(G) pipes; or
4519	4519	2225
4520	4520	(H) other equipment used for locating a power line or pole; and
4521	4521	2226
4522	4522	(b) this Subsection (56) does not apply to:
4523	4523	2227
4524	4524	(i) tangible personal property used in construction of:
4525	4525	2228
4526	4526	(A) a new waste energy facility; or
4527	4527	2229
4528	4528	(B) the increase in the capacity of a waste energy facility;
4529	4529	2230
4530	4530	(ii) contracted services required for construction and routine maintenance activities;
4531	4531	2231
4532	4532	and
4533	4533	2232
4534	4534	(iii) unless the tangible personal property is used or acquired for an increase in
4535	4535	2233
4536	4536	capacity described in Subsection (56)(a)(i)(C)(II), tangible personal property used
4537	4537	2234
4538	4538	or acquired after:
4539	4539	2235
4540	4540	(A) the waste energy facility described in Subsection (56)(a)(i) is operational as
4541	4541	2236
4542	4542	described in Subsection (56)(a)(iii); or
4543	4543	2237
4544	4544	(B) the increased capacity described in Subsection (56)(a)(i) is operational as
4545	4545	2238
4546	4546	described in Subsection (56)(a)(iii);
4547	4547	2239
4548	4548	(57)(a) leases of five or more years or purchases made on or after July 1, 2004, but on or
4549	4549	2240
4550	4550	before June 30, 2027, of tangible personal property that:
4551	4551	- 66 - 02-20 10:39 S.B. 311
4552	4552	2241
4553	4553	(i) is leased or purchased for or by a facility that:
4554	4554	2242
4555	4555	(A) is located in the state;
4556	4556	2243
4557	4557	(B) produces fuel from alternative energy, including:
4558	4558	2244
4559	4559	(I) methanol; or
4560	4560	2245
4561	4561	(II) ethanol; and
4562	4562	2246
4563	4563	(C)(I) becomes operational on or after July 1, 2004; or
4564	4564	2247
4565	4565	(II) has its capacity to produce fuel increase by 25% or more on or after July 1,
4566	4566	2248
4567	4567	2004, as a result of the installation of the tangible personal property;
4568	4568	2249
4569	4569	(ii) has an economic life of five or more years; and
4570	4570	2250
4571	4571	(iii) is installed on the facility described in Subsection (57)(a)(i);
4572	4572	2251
4573	4573	(b) this Subsection (57) does not apply to:
4574	4574	2252
4575	4575	(i) tangible personal property used in construction of:
4576	4576	2253
4577	4577	(A) a new facility described in Subsection (57)(a)(i); or
4578	4578	2254
4579	4579	(B) the increase in capacity of the facility described in Subsection (57)(a)(i); [or]
4580	4580	2255
4581	4581	(ii) contracted services required for construction and routine maintenance activities;
4582	4582	2256
4583	4583	and
4584	4584	2257
4585	4585	(iii) unless the tangible personal property is used or acquired for an increase in
4586	4586	2258
4587	4587	capacity described in Subsection (57)(a)(i)(C)(II), tangible personal property used
4588	4588	2259
4589	4589	or acquired after:
4590	4590	2260
4591	4591	(A) the facility described in Subsection (57)(a)(i) is operational; or
4592	4592	2261
4593	4593	(B) the increased capacity described in Subsection (57)(a)(i) is operational;
4594	4594	2262
4595	4595	(58)(a) subject to Subsection (58)(b), sales of tangible personal property or a product
4596	4596	2263
4597	4597	transferred electronically to a person within this state if that tangible personal
4598	4598	2264
4599	4599	property or product transferred electronically is subsequently shipped outside the
4600	4600	2265
4601	4601	state and incorporated pursuant to contract into and becomes a part of real property
4602	4602	2266
4603	4603	located outside of this state; and
4604	4604	2267
4605	4605	(b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
4606	4606	2268
4607	4607	state or political entity to which the tangible personal property is shipped imposes a
4608	4608	2269
4609	4609	sales, use, gross receipts, or other similar transaction excise tax on the transaction
4610	4610	2270
4611	4611	against which the other state or political entity allows a credit for sales and use taxes
4612	4612	2271
4613	4613	imposed by this chapter;
4614	4614	2272
4615	4615	(59) purchases:
4616	4616	2273
4617	4617	(a) of one or more of the following items in printed or electronic format:
4618	4618	2274
4619	4619	(i) a list containing information that includes one or more:
4620	4620	- 67 - S.B. 311 02-20 10:39
4621	4621	2275
4622	4622	(A) names; or
4623	4623	2276
4624	4624	(B) addresses; or
4625	4625	2277
4626	4626	(ii) a database containing information that includes one or more:
4627	4627	2278
4628	4628	(A) names; or
4629	4629	2279
4630	4630	(B) addresses; and
4631	4631	2280
4632	4632	(b) used to send direct mail;
4633	4633	2281
4634	4634	(60) redemptions or repurchases of a product by a person if that product was:
4635	4635	2282
4636	4636	(a) delivered to a pawnbroker as part of a pawn transaction; and
4637	4637	2283
4638	4638	(b) redeemed or repurchased within the time period established in a written agreement
4639	4639	2284
4640	4640	between the person and the pawnbroker for redeeming or repurchasing the product;
4641	4641	2285
4642	4642	(61)(a) purchases or leases of an item described in Subsection (61)(b) if the item:
4643	4643	2286
4644	4644	(i) is purchased or leased by, or on behalf of, a telecommunications service provider;
4645	4645	2287
4646	4646	and
4647	4647	2288
4648	4648	(ii) has a useful economic life of one or more years; and
4649	4649	2289
4650	4650	(b) the following apply to Subsection (61)(a):
4651	4651	2290
4652	4652	(i) telecommunications enabling or facilitating equipment, machinery, or software;
4653	4653	2291
4654	4654	(ii) telecommunications equipment, machinery, or software required for 911 service;
4655	4655	2292
4656	4656	(iii) telecommunications maintenance or repair equipment, machinery, or software;
4657	4657	2293
4658	4658	(iv) telecommunications switching or routing equipment, machinery, or software; or
4659	4659	2294
4660	4660	(v) telecommunications transmission equipment, machinery, or software;
4661	4661	2295
4662	4662	(62)(a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
4663	4663	2296
4664	4664	personal property or a product transferred electronically that are used in the research
4665	4665	2297
4666	4666	and development of alternative energy technology; and
4667	4667	2298
4668	4668	(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4669	4669	2299
4670	4670	commission may, for purposes of Subsection (62)(a), make rules defining what
4671	4671	2300
4672	4672	constitutes purchases of tangible personal property or a product transferred
4673	4673	2301
4674	4674	electronically that are used in the research and development of alternative energy
4675	4675	2302
4676	4676	technology;
4677	4677	2303
4678	4678	(63)(a) purchases of tangible personal property or a product transferred electronically if:
4679	4679	2304
4680	4680	(i) the tangible personal property or product transferred electronically is:
4681	4681	2305
4682	4682	(A) purchased outside of this state;
4683	4683	2306
4684	4684	(B) brought into this state at any time after the purchase described in Subsection
4685	4685	2307
4686	4686	(63)(a)(i)(A); and
4687	4687	2308
4688	4688	(C) used in conducting business in this state; and
4689	4689	- 68 - 02-20 10:39 S.B. 311
4690	4690	2309
4691	4691	(ii) for:
4692	4692	2310
4693	4693	(A) tangible personal property or a product transferred electronically other than
4694	4694	2311
4695	4695	the tangible personal property described in Subsection (63)(a)(ii)(B), the first
4696	4696	2312
4697	4697	use of the property for a purpose for which the property is designed occurs
4698	4698	2313
4699	4699	outside of this state; or
4700	4700	2314
4701	4701	(B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
4702	4702	2315
4703	4703	registered outside of this state and not required to be registered in this state
4704	4704	2316
4705	4705	under Section 41-1a-202 or 73-18-9 based on residency;
4706	4706	2317
4707	4707	(b) the exemption provided for in Subsection (63)(a) does not apply to:
4708	4708	2318
4709	4709	(i) a lease or rental of tangible personal property or a product transferred
4710	4710	2319
4711	4711	electronically; or
4712	4712	2320
4713	4713	(ii) a sale of a vehicle exempt under Subsection (33); and
4714	4714	2321
4715	4715	(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
4716	4716	2322
4717	4717	purposes of Subsection (63)(a), the commission may by rule define what constitutes
4718	4718	2323
4719	4719	the following:
4720	4720	2324
4721	4721	(i) conducting business in this state if that phrase has the same meaning in this
4722	4722	2325
4723	4723	Subsection (63) as in Subsection (24);
4724	4724	2326
4725	4725	(ii) the first use of tangible personal property or a product transferred electronically if
4726	4726	2327
4727	4727	that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
4728	4728	2328
4729	4729	(iii) a purpose for which tangible personal property or a product transferred
4730	4730	2329
4731	4731	electronically is designed if that phrase has the same meaning in this Subsection
4732	4732	2330
4733	4733	(63) as in Subsection (24);
4734	4734	2331
4735	4735	(64) sales of disposable home medical equipment or supplies if:
4736	4736	2332
4737	4737	(a) a person presents a prescription for the disposable home medical equipment or
4738	4738	2333
4739	4739	supplies;
4740	4740	2334
4741	4741	(b) the disposable home medical equipment or supplies are used exclusively by the
4742	4742	2335
4743	4743	person to whom the prescription described in Subsection (64)(a) is issued; and
4744	4744	2336
4745	4745	(c) the disposable home medical equipment and supplies are listed as eligible for
4746	4746	2337
4747	4747	payment under:
4748	4748	2338
4749	4749	(i) Title XVIII, federal Social Security Act; or
4750	4750	2339
4751	4751	(ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
4752	4752	2340
4753	4753	(65) sales:
4754	4754	2341
4755	4755	(a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit District
4756	4756	2342
4757	4757	Act; or
4758	4758	- 69 - S.B. 311 02-20 10:39
4759	4759	2343
4760	4760	(b) of tangible personal property to a subcontractor of a public transit district, if the
4761	4761	2344
4762	4762	tangible personal property is:
4763	4763	2345
4764	4764	(i) clearly identified; and
4765	4765	2346
4766	4766	(ii) installed or converted to real property owned by the public transit district;
4767	4767	2347
4768	4768	(66) sales of construction materials:
4769	4769	2348
4770	4770	(a) purchased on or after July 1, 2010;
4771	4771	2349
4772	4772	(b) purchased by, on behalf of, or for the benefit of an international airport:
4773	4773	2350
4774	4774	(i) located within a county of the first class; and
4775	4775	2351
4776	4776	(ii) that has a United States customs office on its premises; and
4777	4777	2352
4778	4778	(c) if the construction materials are:
4779	4779	2353
4780	4780	(i) clearly identified;
4781	4781	2354
4782	4782	(ii) segregated; and
4783	4783	2355
4784	4784	(iii) installed or converted to real property:
4785	4785	2356
4786	4786	(A) owned or operated by the international airport described in Subsection
4787	4787	2357
4788	4788	(66)(b); and
4789	4789	2358
4790	4790	(B) located at the international airport described in Subsection (66)(b);
4791	4791	2359
4792	4792	(67) sales of construction materials:
4793	4793	2360
4794	4794	(a) purchased on or after July 1, 2008;
4795	4795	2361
4796	4796	(b) purchased by, on behalf of, or for the benefit of a new airport:
4797	4797	2362
4798	4798	(i) located within a county of the second class; and
4799	4799	2363
4800	4800	(ii) that is owned or operated by a city in which an airline as defined in Section
4801	4801	2364
4802	4802	59-2-102 is headquartered; and
4803	4803	2365
4804	4804	(c) if the construction materials are:
4805	4805	2366
4806	4806	(i) clearly identified;
4807	4807	2367
4808	4808	(ii) segregated; and
4809	4809	2368
4810	4810	(iii) installed or converted to real property:
4811	4811	2369
4812	4812	(A) owned or operated by the new airport described in Subsection (67)(b);
4813	4813	2370
4814	4814	(B) located at the new airport described in Subsection (67)(b); and
4815	4815	2371
4816	4816	(C) as part of the construction of the new airport described in Subsection (67)(b);
4817	4817	2372
4818	4818	(68) except for the tax imposed by Subsection 59-12-103(2)(d), sales of fuel to a common
4819	4819	2373
4820	4820	carrier that is a railroad for use in a locomotive engine;
4821	4821	2374
4822	4822	(69) purchases and sales described in Section 63H-4-111;
4823	4823	2375
4824	4824	(70)(a) sales of tangible personal property to an aircraft maintenance, repair, and
4825	4825	2376
4826	4826	overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in
4827	4827	- 70 - 02-20 10:39 S.B. 311
4828	4828	2377
4829	4829	this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
4830	4830	2378
4831	4831	aircraft's registration lists a state or country other than this state as the location of
4832	4832	2379
4833	4833	registry of the fixed wing turbine powered aircraft; or
4834	4834	2380
4835	4835	(b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
4836	4836	2381
4837	4837	provider in connection with the maintenance, repair, overhaul, or refurbishment in
4838	4838	2382
4839	4839	this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
4840	4840	2383
4841	4841	aircraft's registration lists a state or country other than this state as the location of
4842	4842	2384
4843	4843	registry of the fixed wing turbine powered aircraft;
4844	4844	2385
4845	4845	(71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
4846	4846	2386
4847	4847	(a) to a person admitted to an institution of higher education; and
4848	4848	2387
4849	4849	(b) by a seller, other than a bookstore owned by an institution of higher education, if
4850	4850	2388
4851	4851	51% or more of that seller's sales revenue for the previous calendar quarter are sales
4852	4852	2389
4853	4853	of a textbook for a higher education course;
4854	4854	2390
4855	4855	(72) a license fee or tax a municipality imposes in accordance with Subsection 10-1-203(5)
4856	4856	2391
4857	4857	on a purchaser from a business for which the municipality provides an enhanced level of
4858	4858	2392
4859	4859	municipal services;
4860	4860	2393
4861	4861	(73) amounts paid or charged for construction materials used in the construction of a new or
4862	4862	2394
4863	4863	expanding life science research and development facility in the state, if the construction
4864	4864	2395
4865	4865	materials are:
4866	4866	2396
4867	4867	(a) clearly identified;
4868	4868	2397
4869	4869	(b) segregated; and
4870	4870	2398
4871	4871	(c) installed or converted to real property;
4872	4872	2399
4873	4873	(74) amounts paid or charged for:
4874	4874	2400
4875	4875	(a) a purchase or lease of machinery and equipment that:
4876	4876	2401
4877	4877	(i) are used in performing qualified research:
4878	4878	2402
4879	4879	(A) as defined in Section 41(d), Internal Revenue Code; and
4880	4880	2403
4881	4881	(B) in the state; and
4882	4882	2404
4883	4883	(ii) have an economic life of three or more years; and
4884	4884	2405
4885	4885	(b) normal operating repair or replacement parts:
4886	4886	2406
4887	4887	(i) for the machinery and equipment described in Subsection (74)(a); and
4888	4888	2407
4889	4889	(ii) that have an economic life of three or more years;
4890	4890	2408
4891	4891	(75) a sale or lease of tangible personal property used in the preparation of prepared food if:
4892	4892	2409
4893	4893	(a) for a sale:
4894	4894	2410
4895	4895	(i) the ownership of the seller and the ownership of the purchaser are identical; and
4896	4896	- 71 - S.B. 311 02-20 10:39
4897	4897	2411
4898	4898	(ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
4899	4899	2412
4900	4900	tangible personal property prior to making the sale; or
4901	4901	2413
4902	4902	(b) for a lease:
4903	4903	2414
4904	4904	(i) the ownership of the lessor and the ownership of the lessee are identical; and
4905	4905	2415
4906	4906	(ii) the lessor or the lessee paid a tax under this chapter on the purchase of that
4907	4907	2416
4908	4908	tangible personal property prior to making the lease;
4909	4909	2417
4910	4910	(76)(a) purchases of machinery or equipment if:
4911	4911	2418
4912	4912	(i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
4913	4913	2419
4914	4914	Gambling, and Recreation Industries, of the 2012 North American Industry
4915	4915	2420
4916	4916	Classification System of the federal Executive Office of the President, Office of
4917	4917	2421
4918	4918	Management and Budget;
4919	4919	2422
4920	4920	(ii) the machinery or equipment:
4921	4921	2423
4922	4922	(A) has an economic life of three or more years; and
4923	4923	2424
4924	4924	(B) is used by one or more persons who pay admission or user fees described in
4925	4925	2425
4926	4926	Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment;
4927	4927	2426
4928	4928	and
4929	4929	2427
4930	4930	(iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
4931	4931	2428
4932	4932	(A) amounts paid or charged as admission or user fees described in Subsection
4933	4933	2429
4934	4934	59-12-103(1)(f); and
4935	4935	2430
4936	4936	(B) subject to taxation under this chapter; and
4937	4937	2431
4938	4938	(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4939	4939	2432
4940	4940	commission may make rules for verifying that 51% of a purchaser's sales revenue for
4941	4941	2433
4942	4942	the previous calendar quarter is:
4943	4943	2434
4944	4944	(i) amounts paid or charged as admission or user fees described in Subsection
4945	4945	2435
4946	4946	59-12-103(1)(f); and
4947	4947	2436
4948	4948	(ii) subject to taxation under this chapter;
4949	4949	2437
4950	4950	(77) purchases of a short-term lodging consumable by a business that provides
4951	4951	2438
4952	4952	accommodations and services described in Subsection 59-12-103(1)(i);
4953	4953	2439
4954	4954	(78) amounts paid or charged to access a database:
4955	4955	2440
4956	4956	(a) if the primary purpose for accessing the database is to view or retrieve information
4957	4957	2441
4958	4958	from the database; and
4959	4959	2442
4960	4960	(b) not including amounts paid or charged for a:
4961	4961	2443
4962	4962	(i) digital audio work;
4963	4963	2444
4964	4964	(ii) digital audio-visual work; or
4965	4965	- 72 - 02-20 10:39 S.B. 311
4966	4966	2445
4967	4967	(iii) digital book;
4968	4968	2446
4969	4969	(79) amounts paid or charged for a purchase or lease made by an electronic financial
4970	4970	2447
4971	4971	payment service, of:
4972	4972	2448
4973	4973	(a) machinery and equipment that:
4974	4974	2449
4975	4975	(i) are used in the operation of the electronic financial payment service; and
4976	4976	2450
4977	4977	(ii) have an economic life of three or more years; and
4978	4978	2451
4979	4979	(b) normal operating repair or replacement parts that:
4980	4980	2452
4981	4981	(i) are used in the operation of the electronic financial payment service; and
4982	4982	2453
4983	4983	(ii) have an economic life of three or more years;
4984	4984	2454
4985	4985	(80) sales of a fuel cell as defined in Section 54-15-102;
4986	4986	2455
4987	4987	(81) amounts paid or charged for a purchase or lease of tangible personal property or a
4988	4988	2456
4989	4989	product transferred electronically if the tangible personal property or product transferred
4990	4990	2457
4991	4991	electronically:
4992	4992	2458
4993	4993	(a) is stored, used, or consumed in the state; and
4994	4994	2459
4995	4995	(b) is temporarily brought into the state from another state:
4996	4996	2460
4997	4997	(i) during a disaster period as defined in Section 53-2a-1202;
4998	4998	2461
4999	4999	(ii) by an out-of-state business as defined in Section 53-2a-1202;
5000	5000	2462
5001	5001	(iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
5002	5002	2463
5003	5003	(iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
5004	5004	2464
5005	5005	(82) sales of goods and services at a morale, welfare, and recreation facility, as defined in
5006	5006	2465
5007	5007	Section 39A-7-102, made pursuant to Title 39A, Chapter 7, Morale, Welfare, and
5008	5008	2466
5009	5009	Recreation Program;
5010	5010	2467
5011	5011	(83) amounts paid or charged for a purchase or lease of molten magnesium;
5012	5012	2468
5013	5013	(84) amounts paid or charged for a purchase or lease made by a qualifying data center or an
5014	5014	2469
5015	5015	occupant of a qualifying data center of machinery, equipment, or normal operating
5016	5016	2470
5017	5017	repair or replacement parts, if the machinery, equipment, or normal operating repair or
5018	5018	2471
5019	5019	replacement parts:
5020	5020	2472
5021	5021	(a) are used in:
5022	5022	2473
5023	5023	(i) the operation of the qualifying data center; or
5024	5024	2474
5025	5025	(ii) the occupant's operations in the qualifying data center; and
5026	5026	2475
5027	5027	(b) have an economic life of one or more years;
5028	5028	2476
5029	5029	(85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a vehicle
5030	5030	2477
5031	5031	that includes cleaning or washing of the interior of the vehicle;
5032	5032	2478
5033	5033	(86) amounts paid or charged for a purchase or lease of machinery, equipment, normal
5034	5034	- 73 - S.B. 311 02-20 10:39
5035	5035	2479
5036	5036	operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or
5037	5037	2480
5038	5038	supplies used or consumed:
5039	5039	2481
5040	5040	(a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
5041	5041	2482
5042	5042	in Section 79-6-701 located in the state;
5043	5043	2483
5044	5044	(b) if the machinery, equipment, normal operating repair or replacement parts, catalysts,
5045	5045	2484
5046	5046	chemicals, reagents, solutions, or supplies are used or consumed in:
5047	5047	2485
5048	5048	(i) the production process to produce gasoline or diesel fuel, or at which blendstock is
5049	5049	2486
5050	5050	added to gasoline or diesel fuel;
5051	5051	2487
5052	5052	(ii) research and development;
5053	5053	2488
5054	5054	(iii) transporting, storing, or managing raw materials, work in process, finished
5055	5055	2489
5056	5056	products, and waste materials produced from refining gasoline or diesel fuel, or
5057	5057	2490
5058	5058	adding blendstock to gasoline or diesel fuel;
5059	5059	2491
5060	5060	(iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
5061	5061	2492
5062	5062	refining; or
5063	5063	2493
5064	5064	(v) preventing, controlling, or reducing pollutants from refining; and
5065	5065	2494
5066	5066	(c) if the person holds a valid refiner tax exemption certification as defined in Section
5067	5067	2495
5068	5068	79-6-701;
5069	5069	2496
5070	5070	(87) amounts paid to or charged by a proprietor for accommodations and services, as
5071	5071	2497
5072	5072	defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations
5073	5073	2498
5074	5074	tax imposed under Section 63H-1-205;
5075	5075	2499
5076	5076	(88) amounts paid or charged for a purchase or lease of machinery, equipment, normal
5077	5077	2500
5078	5078	operating repair or replacement parts, or materials, except for office equipment or office
5079	5079	2501
5080	5080	supplies, by an establishment, as the commission defines that term in accordance with
5081	5081	2502
5082	5082	Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
5083	5083	2503
5084	5084	(a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
5085	5085	2504
5086	5086	American Industry Classification System of the federal Executive Office of the
5087	5087	2505
5088	5088	President, Office of Management and Budget;
5089	5089	2506
5090	5090	(b) is located in this state; and
5091	5091	2507
5092	5092	(c) uses the machinery, equipment, normal operating repair or replacement parts, or
5093	5093	2508
5094	5094	materials in the operation of the establishment;
5095	5095	2509
5096	5096	(89) amounts paid or charged for an item exempt under Section 59-12-104.10;
5097	5097	2510
5098	5098	(90) sales of a note, leaf, foil, or film, if the item:
5099	5099	2511
5100	5100	(a) is used as currency;
5101	5101	2512
5102	5102	(b) does not constitute legal tender of a state, the United States, or a foreign nation; and
5103	5103	- 74 - 02-20 10:39 S.B. 311
5104	5104	2513
5105	5105	(c) has a gold, silver, or platinum metallic content of 50% or more, exclusive of any
5106	5106	2514
5107	5107	transparent polymer holder, coating, or encasement;
5108	5108	2515
5109	5109	(91) amounts paid or charged for admission to an indoor skydiving, rock climbing, or
5110	5110	2516
5111	5111	surfing facility, if a trained instructor:
5112	5112	2517
5113	5113	(a) is present with the participant, in person or by video, for the duration of the activity;
5114	5114	2518
5115	5115	and
5116	5116	2519
5117	5117	(b) actively instructs the participant, including providing observation or feedback;
5118	5118	2520
5119	5119	(92) amounts paid or charged in connection with the construction, operation, maintenance,
5120	5120	2521
5121	5121	repair, or replacement of facilities owned by or constructed for:
5122	5122	2522
5123	5123	(a) a distribution electrical cooperative, as defined in Section 54-2-1; or
5124	5124	2523
5125	5125	(b) a wholesale electrical cooperative, as defined in Section 54-2-1;
5126	5126	2524
5127	5127	(93) amounts paid by the service provider for tangible personal property, other than
5128	5128	2525
5129	5129	machinery, equipment, parts, office supplies, electricity, gas, heat, steam, or other fuels,
5130	5130	2526
5131	5131	that:
5132	5132	2527
5133	5133	(a) is consumed in the performance of a service that is subject to tax under Subsection
5134	5134	2528
5135	5135	59-12-103(1)(b), (f), (g), (h), (i), or (j);
5136	5136	2529
5137	5137	(b) has to be consumed for the service provider to provide the service described in
5138	5138	2530
5139	5139	Subsection (93)(a); and
5140	5140	2531
5141	5141	(c) will be consumed in the performance of the service described in Subsection (93)(a),
5142	5142	2532
5143	5143	to one or more customers, to the point that the tangible personal property disappears
5144	5144	2533
5145	5145	or cannot be used for any other purpose;
5146	5146	2534
5147	5147	(94) sales of rail rolling stock manufactured in Utah;
5148	5148	2535
5149	5149	(95) amounts paid or charged for sales of sand, gravel, rock aggregate, cement products, or
5150	5150	2536
5151	5151	construction materials between establishments, as the commission defines that term in
5152	5152	2537
5153	5153	accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if:
5154	5154	2538
5155	5155	(a) the establishments are related directly or indirectly through 100% common
5156	5156	2539
5157	5157	ownership or control; and
5158	5158	2540
5159	5159	(b) each establishment is described in one of the following subsectors of the 2022 North
5160	5160	2541
5161	5161	American Industry Classification System of the federal Executive Office of the
5162	5162	2542
5163	5163	President, Office of Management and Budget:
5164	5164	2543
5165	5165	(i) NAICS Subsector 237, Heavy and Civil Engineering Construction; or
5166	5166	2544
5167	5167	(ii) NAICS Subsector 327, Nonmetallic Mineral Product Manufacturing;
5168	5168	2545
5169	5169	(96) sales of construction materials used for the construction of a qualified stadium, as
5170	5170	2546
5171	5171	defined in Section 11-70-101; and
5172	5172	- 75 - S.B. 311 02-20 10:39
5173	5173	2547
5174	5174	(97) amounts paid or charged for sales of a cannabinoid product as that term is defined in
5175	5175	2548
5176	5176	Section 4-41-102.
5177	5177	2549
5178	5178	Section 3. Effective Date.
5179	5179	2550
5180	5180	This bill takes effect on July 1, 2025.
5181	5181	- 76 -