02-20 10:39 S.B. 311
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Sales and Use Tax Exemptions Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Evan J. Vickers
House Sponsor:
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LONG TITLE
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General Description:
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This bill addresses sales and use tax exemptions.
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Highlighted Provisions:
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This bill:
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▸ defines terms;
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▸ extends the duration of the sales and use tax exemption applicable to leases or purchases
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for alternative energy electricity production facilities;
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▸ expands the sales and use tax exemption applicable to leases or purchases for alternative
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energy electricity production facilities to include leases or purchases for electric storage
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facilities; and
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▸ makes technical changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides a special effective date.
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Utah Code Sections Affected:
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AMENDS:
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59-12-102, as last amended by Laws of Utah 2024, Chapter 274
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59-12-104, as last amended by Laws of Utah 2024, Chapter 35
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 59-12-102 is amended to read:
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59-12-102 . Definitions.
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As used in this chapter:
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(1) "800 service" means a telecommunications service that:
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(a) allows a caller to dial a toll-free number without incurring a charge for the call; and
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(b) is typically marketed:
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(i) under the name 800 toll-free calling;
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(ii) under the name 855 toll-free calling;
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(iii) under the name 866 toll-free calling;
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(iv) under the name 877 toll-free calling;
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(v) under the name 888 toll-free calling; or
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(vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
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Federal Communications Commission.
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(2)(a) "900 service" means an inbound toll telecommunications service that:
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(i) a subscriber purchases;
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(ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
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the subscriber's:
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(A) prerecorded announcement; or
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(B) live service; and
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(iii) is typically marketed:
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(A) under the name 900 service; or
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(B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
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Communications Commission.
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(b) "900 service" does not include a charge for:
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(i) a collection service a seller of a telecommunications service provides to a
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subscriber; or
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(ii) the following a subscriber sells to the subscriber's customer:
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(A) a product; or
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(B) a service.
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(3)(a) "Admission or user fees" includes season passes.
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(b) "Admission or user fees" does not include:
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(i) annual membership dues to private organizations; or
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(ii) a lesson, including a lesson that involves as part of the lesson equipment or a
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facility listed in Subsection 59-12-103(1)(f).
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(4) "Affiliate" or "affiliated person" means a person that, with respect to another person:
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(a) has an ownership interest of more than 5%, whether direct or indirect, in that other
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person; or
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(b) is related to the other person because a third person, or a group of third persons who
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are affiliated persons with respect to each other, holds an ownership interest of more
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than 5%, whether direct or indirect, in the related persons.
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(5) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
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November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
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Agreement after November 12, 2002.
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(6) "Agreement combined tax rate" means the sum of the tax rates:
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(a) listed under Subsection (7); and
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(b) that are imposed within a local taxing jurisdiction.
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(7) "Agreement sales and use tax" means a tax imposed under:
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(a) Subsection 59-12-103(2)(a)(i)(A);
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(b) Subsection 59-12-103(2)(b)(i);
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(c) Subsection 59-12-103(2)(c)(i);
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(d) Subsection 59-12-103(2)(d);
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(e) Subsection 59-12-103(2)(e)(i)(A)(I);
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(f) Section 59-12-204;
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(g) Section 59-12-401;
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(h) Section 59-12-402;
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(i) Section 59-12-402.1;
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(j) Section 59-12-703;
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(k) Section 59-12-802;
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(l) Section 59-12-804;
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(m) Section 59-12-1102;
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(n) Section 59-12-1302;
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(o) Section 59-12-1402;
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(p) Section 59-12-1802;
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(q) Section 59-12-2003;
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(r) Section 59-12-2103;
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(s) Section 59-12-2213;
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(t) Section 59-12-2214;
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(u) Section 59-12-2215;
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(v) Section 59-12-2216;
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(w) Section 59-12-2217;
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(x) Section 59-12-2218;
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(y) Section 59-12-2219; or
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(z) Section 59-12-2220.
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(8) "Aircraft" means the same as that term is defined in Section 72-10-102.
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(9) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
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(a) except for:
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(i) an airline as defined in Section 59-2-102; or
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(ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
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includes a corporation that is qualified to do business but is not otherwise doing
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business in the state, of an airline; and
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(b) that has the workers, expertise, and facilities to perform the following, regardless of
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whether the business entity performs the following in this state:
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(i) check, diagnose, overhaul, and repair:
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(A) an onboard system of a fixed wing turbine powered aircraft; and
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(B) the parts that comprise an onboard system of a fixed wing turbine powered
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aircraft;
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(ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered
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aircraft engine;
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(iii) perform at least the following maintenance on a fixed wing turbine powered
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aircraft:
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(A) an inspection;
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(B) a repair, including a structural repair or modification;
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(C) changing landing gear; and
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(D) addressing issues related to an aging fixed wing turbine powered aircraft;
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(iv) completely remove the existing paint of a fixed wing turbine powered aircraft
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and completely apply new paint to the fixed wing turbine powered aircraft; and
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(v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
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results in a change in the fixed wing turbine powered aircraft's certification
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requirements by the authority that certifies the fixed wing turbine powered aircraft.
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(10) "Alcoholic beverage" means a beverage that:
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(a) is suitable for human consumption; and
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(b) contains .5% or more alcohol by volume.
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(11) "Alternative energy" means:
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(a) biomass energy;
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(b) geothermal energy;
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(c) hydroelectric energy;
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(d) solar energy;
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(e) wind energy; or
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(f) energy that is derived from:
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(i) coal-to-liquids;
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(ii) nuclear fuel;
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(iii) oil-impregnated diatomaceous earth;
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(iv) oil sands;
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(v) oil shale;
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(vi) petroleum coke; or
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(vii) waste heat from:
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(A) an industrial facility; or
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(B) a power station in which an electric generator is driven through a process in
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which water is heated, turns into steam, and spins a steam turbine.
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(12)(a) Subject to Subsection (12)(b), "alternative energy electricity production facility"
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means a facility that:
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(i) uses alternative energy to produce electricity; and
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(ii) has a production capacity of two megawatts or greater.
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(b) A facility is an alternative energy electricity production facility regardless of whether
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the facility is:
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(i) connected to an electric grid; or
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(ii) located on the premises of an electricity consumer.
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(13)(a) "Ancillary service" means a service associated with, or incidental to, the
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provision of telecommunications service.
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(b) "Ancillary service" includes:
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(i) a conference bridging service;
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(ii) a detailed communications billing service;
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(iii) directory assistance;
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(iv) a vertical service; or
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(v) a voice mail service.
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(14) "Area agency on aging" means the same as that term is defined in Section 26B-6-101.
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(15) "Assisted amusement device" means an amusement device, skill device, or ride device
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that is started and stopped by an individual:
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(a) who is not the purchaser or renter of the right to use or operate the amusement
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device, skill device, or ride device; and
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(b) at the direction of the seller of the right to use the amusement device, skill device, or
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ride device.
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(16) "Assisted cleaning or washing of tangible personal property" means cleaning or
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washing of tangible personal property if the cleaning or washing labor is primarily
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performed by an individual:
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(a) who is not the purchaser of the cleaning or washing of the tangible personal property;
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and
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(b) at the direction of the seller of the cleaning or washing of the tangible personal
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property.
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(17) "Authorized carrier" means:
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(a) in the case of vehicles operated over public highways, the holder of credentials
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indicating that the vehicle is or will be operated pursuant to both the International
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Registration Plan and the International Fuel Tax Agreement;
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(b) in the case of aircraft, the holder of a Federal Aviation Administration operating
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certificate or air carrier's operating certificate; or
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(c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
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stock, a person who uses locomotives, freight cars, railroad work equipment, or other
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rolling stock in more than one state.
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(18)(a) "Biomass energy" means any of the following that is used as the primary source
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of energy to produce fuel or electricity:
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(i) material from a plant or tree; or
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(ii) other organic matter that is available on a renewable basis, including:
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(A) slash and brush from forests and woodlands;
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(B) animal waste;
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(C) waste vegetable oil;
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(D) methane or synthetic gas produced at a landfill, as a byproduct of the
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treatment of wastewater residuals, or through the conversion of a waste
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material through a nonincineration, thermal conversion process;
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(E) aquatic plants; and
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(F) agricultural products.
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(b) "Biomass energy" does not include:
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(i) black liquor; or
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(ii) treated woods.
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(19)(a) "Bundled transaction" means the sale of two or more items of tangible personal
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property, products, or services if the tangible personal property, products, or services
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are:
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(i) distinct and identifiable; and
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(ii) sold for one nonitemized price.
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(b) "Bundled transaction" does not include:
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(i) the sale of tangible personal property if the sales price varies, or is negotiable, on
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the basis of the selection by the purchaser of the items of tangible personal
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property included in the transaction;
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(ii) the sale of real property;
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(iii) the sale of services to real property;
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(iv) the retail sale of tangible personal property and a service if:
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(A) the tangible personal property:
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(I) is essential to the use of the service; and
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(II) is provided exclusively in connection with the service; and
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(B) the service is the true object of the transaction;
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(v) the retail sale of two services if:
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(A) one service is provided that is essential to the use or receipt of a second
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service;
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(B) the first service is provided exclusively in connection with the second service;
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and
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(C) the second service is the true object of the transaction;
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(vi) a transaction that includes tangible personal property or a product subject to
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taxation under this chapter and tangible personal property or a product that is not
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subject to taxation under this chapter if the:
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(A) seller's purchase price of the tangible personal property or product subject to
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taxation under this chapter is de minimis; or
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(B) seller's sales price of the tangible personal property or product subject to
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taxation under this chapter is de minimis; and
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(vii) the retail sale of tangible personal property that is not subject to taxation under
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this chapter and tangible personal property that is subject to taxation under this
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chapter if:
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(A) that retail sale includes:
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(I) food and food ingredients;
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(II) a drug;
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(III) durable medical equipment;
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(IV) mobility enhancing equipment;
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(V) an over-the-counter drug;
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(VI) a prosthetic device; or
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(VII) a medical supply; and
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(B) subject to Subsection (19)(f):
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(I) the seller's purchase price of the tangible personal property subject to
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taxation under this chapter is 50% or less of the seller's total purchase price
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of that retail sale; or
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(II) the seller's sales price of the tangible personal property subject to taxation
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under this chapter is 50% or less of the seller's total sales price of that retail
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sale.
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(c)(i) For purposes of Subsection (19)(a)(i), tangible personal property, a product, or
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a service that is distinct and identifiable does not include:
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(A) packaging that:
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(I) accompanies the sale of the tangible personal property, product, or service;
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and
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(II) is incidental or immaterial to the sale of the tangible personal property,
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product, or service;
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(B) tangible personal property, a product, or a service provided free of charge with
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the purchase of another item of tangible personal property, a product, or a
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service; or
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(C) an item of tangible personal property, a product, or a service included in the
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definition of "purchase price."
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(ii) For purposes of Subsection (19)(c)(i)(B), an item of tangible personal property, a
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product, or a service is provided free of charge with the purchase of another item
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of tangible personal property, a product, or a service if the sales price of the
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purchased item of tangible personal property, product, or service does not vary
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depending on the inclusion of the tangible personal property, product, or service
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provided free of charge.
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(d)(i) For purposes of Subsection (19)(a)(ii), property sold for one nonitemized price
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does not include a price that is separately identified by tangible personal property,
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product, or service on the following, regardless of whether the following is in
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paper format or electronic format:
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(A) a binding sales document; or
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(B) another supporting sales-related document that is available to a purchaser.
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(ii) For purposes of Subsection (19)(d)(i), a binding sales document or another
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supporting sales-related document that is available to a purchaser includes:
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(A) a bill of sale;
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(B) a contract;
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(C) an invoice;
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(D) a lease agreement;
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(E) a periodic notice of rates and services;
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(F) a price list;
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(G) a rate card;
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(H) a receipt; or
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(I) a service agreement.
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(e)(i) For purposes of Subsection (19)(b)(vi), the sales price of tangible personal
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property or a product subject to taxation under this chapter is de minimis if:
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(A) the seller's purchase price of the tangible personal property or product is 10%
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or less of the seller's total purchase price of the bundled transaction; or
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(B) the seller's sales price of the tangible personal property or product is 10% or
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less of the seller's total sales price of the bundled transaction.
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(ii) For purposes of Subsection (19)(b)(vi), a seller:
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(A) shall use the seller's purchase price or the seller's sales price to determine if
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the purchase price or sales price of the tangible personal property or product
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subject to taxation under this chapter is de minimis; and
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(B) may not use a combination of the seller's purchase price and the seller's sales
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price to determine if the purchase price or sales price of the tangible personal
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property or product subject to taxation under this chapter is de minimis.
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(iii) For purposes of Subsection (19)(b)(vi), a seller shall use the full term of a service
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contract to determine if the sales price of tangible personal property or a product is
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de minimis.
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(f) For purposes of Subsection (19)(b)(vii)(B), a seller may not use a combination of the
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seller's purchase price and the seller's sales price to determine if tangible personal
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property subject to taxation under this chapter is 50% or less of the seller's total
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purchase price or sales price of that retail sale.
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(20) "Car sharing" means the same as that term is defined in Section 13-48a-101.
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(21) "Car-sharing program" means the same as that term is defined in Section 13-48a-101.
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(22) "Certified automated system" means software certified by the governing board of the
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agreement that:
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(a) calculates the agreement sales and use tax imposed within a local taxing jurisdiction:
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(i) on a transaction; and
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(ii) in the states that are members of the agreement;
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(b) determines the amount of agreement sales and use tax to remit to a state that is a
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member of the agreement; and
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(c) maintains a record of the transaction described in Subsection (22)(a)(i).
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(23) "Certified service provider" means an agent certified:
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(a) by the governing board of the agreement; and
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(b) to perform a seller's sales and use tax functions for an agreement sales and use tax, as
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outlined in the contract between the governing board of the agreement and the
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certified service provider, other than the seller's obligation under Section 59-12-124
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to remit a tax on the seller's own purchases.
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(24)(a) Subject to Subsection (24)(b), "clothing" means all human wearing apparel
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suitable for general use.
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(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
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commission shall make rules:
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(i) listing the items that constitute "clothing"; and
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(ii) that are consistent with the list of items that constitute "clothing" under the
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agreement.
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(25) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
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(26) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels
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that does not constitute industrial use under Subsection [(60)] (61) or residential use
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under Subsection [(115)] (116).
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(27)(a) "Common carrier" means a person engaged in or transacting the business of
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transporting passengers, freight, merchandise, or other property for hire within this
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state.
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(b)(i) "Common carrier" does not include a person that, at the time the person is
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traveling to or from that person's place of employment, transports a passenger to
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or from the passenger's place of employment.
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(ii) For purposes of Subsection (27)(b)(i), in accordance with Title 63G, Chapter 3,
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Utah Administrative Rulemaking Act, the commission may make rules defining
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what constitutes a person's place of employment.
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(c) "Common carrier" does not include a person that provides transportation network
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services, as defined in Section 13-51-102.
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(28) "Component part" includes:
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(a) poultry, dairy, and other livestock feed, and their components;
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(b) baling ties and twine used in the baling of hay and straw;
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(c) fuel used for providing temperature control of orchards and commercial greenhouses
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doing a majority of their business in wholesale sales, and for providing power for
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off-highway type farm machinery; and
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(d) feed, seeds, and seedlings.
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(29) "Computer" means an electronic device that accepts information:
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(a)(i) in digital form; or
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(ii) in a form similar to digital form; and
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(b) manipulates that information for a result based on a sequence of instructions.
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(30) "Computer software" means a set of coded instructions designed to cause:
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(a) a computer to perform a task; or
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(b) automatic data processing equipment to perform a task.
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(31) "Computer software maintenance contract" means a contract that obligates a seller of
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computer software to provide a customer with:
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(a) future updates or upgrades to computer software;
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(b) support services with respect to computer software; or
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(c) a combination of Subsections (31)(a) and (b).
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(32)(a) "Conference bridging service" means an ancillary service that links two or more
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participants of an audio conference call or video conference call.
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(b) "Conference bridging service" may include providing a telephone number as part of
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the ancillary service described in Subsection (32)(a).
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(c) "Conference bridging service" does not include a telecommunications service used to
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reach the ancillary service described in Subsection (32)(a).
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(33) "Construction materials" means any tangible personal property that will be converted
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into real property.
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(34) "Delivered electronically" means delivered to a purchaser by means other than tangible
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storage media.
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(35)(a) "Delivery charge" means a charge:
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(i) by a seller of:
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(A) tangible personal property;
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(B) a product transferred electronically; or
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(C) a service; and
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(ii) for preparation and delivery of the tangible personal property, product transferred
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electronically, or services described in Subsection (35)(a)(i) to a location
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designated by the purchaser.
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(b) "Delivery charge" includes a charge for the following:
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(i) transportation;
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(ii) shipping;
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(iii) postage;
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(iv) handling;
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(v) crating; or
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(vi) packing.
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(36) "Detailed telecommunications billing service" means an ancillary service of separately
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stating information pertaining to individual calls on a customer's billing statement.
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(37) "Dietary supplement" means a product, other than tobacco, that:
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(a) is intended to supplement the diet;
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(b) contains one or more of the following dietary ingredients:
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(i) a vitamin;
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(ii) a mineral;
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(iii) an herb or other botanical;
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(iv) an amino acid;
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(v) a dietary substance for use by humans to supplement the diet by increasing the
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total dietary intake; or
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(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
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described in Subsections (37)(b)(i) through (v);
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(c)(i) except as provided in Subsection (37)(c)(ii), is intended for ingestion in:
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(A) tablet form;
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(B) capsule form;
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(C) powder form;
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(D) softgel form;
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(E) gelcap form; or
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(F) liquid form; or
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(ii) if the product is not intended for ingestion in a form described in Subsections
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(37)(c)(i)(A) through (F), is not represented:
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(A) as conventional food; and
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(B) for use as a sole item of:
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(I) a meal; or
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(II) the diet; and
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(d) is required to be labeled as a dietary supplement:
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(i) identifiable by the "Supplemental Facts" box found on the label; and
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(ii) as required by 21 C.F.R. Sec. 101.36.
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(38)(a) "Digital audio work" means a work that results from the fixation of a series of
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musical, spoken, or other sounds.
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(b) "Digital audio work" includes a ringtone.
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(39) "Digital audio-visual work" means a series of related images which, when shown in
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succession, imparts an impression of motion, together with accompanying sounds, if any.
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(40) "Digital book" means a work that is generally recognized in the ordinary and usual
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sense as a book.
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(41)(a) "Direct mail" means printed material delivered or distributed by United States
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mail or other delivery service:
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(i) to:
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(A) a mass audience; or
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(B) addressees on a mailing list provided:
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(I) by a purchaser of the mailing list; or
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(II) at the discretion of the purchaser of the mailing list; and
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(ii) if the cost of the printed material is not billed directly to the recipients.
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(b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
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purchaser to a seller of direct mail for inclusion in a package containing the printed
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material.
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(c) "Direct mail" does not include multiple items of printed material delivered to a single
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address.
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(42) "Directory assistance" means an ancillary service of providing:
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(a) address information; or
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(b) telephone number information.
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(43)(a) "Disposable home medical equipment or supplies" means medical equipment or
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supplies that:
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(i) cannot withstand repeated use; and
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(ii) are purchased by, for, or on behalf of a person other than:
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(A) a health care facility as defined in Section 26B-2-201;
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(B) a health care provider as defined in Section 78B-3-403;
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(C) an office of a health care provider described in Subsection (43)(a)(ii)(B); or
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(D) a person similar to a person described in Subsections (43)(a)(ii)(A) through
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(C).
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(b) "Disposable home medical equipment or supplies" does not include:
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(i) a drug;
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(ii) durable medical equipment;
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(iii) a hearing aid;
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(iv) a hearing aid accessory;
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(v) mobility enhancing equipment; or
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(vi) tangible personal property used to correct impaired vision, including:
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(A) eyeglasses; or
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(B) contact lenses.
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(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
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commission may by rule define what constitutes medical equipment or supplies.
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(44) "Drilling equipment manufacturer" means a facility:
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(a) located in the state;
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(b) with respect to which 51% or more of the manufacturing activities of the facility
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consist of manufacturing component parts of drilling equipment;
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(c) that uses pressure of 800,000 or more pounds per square inch as part of the
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manufacturing process; and
460
(d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
461
manufacturing process.
462
(45)(a) "Drug" means a compound, substance, or preparation, or a component of a
463
compound, substance, or preparation that is:
464
(i) recognized in:
465
(A) the official United States Pharmacopoeia;
466
(B) the official Homeopathic Pharmacopoeia of the United States;
467
(C) the official National Formulary; or
468
(D) a supplement to a publication listed in Subsections (45)(a)(i)(A) through (C);
469
(ii) intended for use in the:
470
(A) diagnosis of disease;
471
(B) cure of disease;
472
(C) mitigation of disease;
- 14 - 02-20 10:39 S.B. 311
473
(D) treatment of disease; or
474
(E) prevention of disease; or
475
(iii) intended to affect:
476
(A) the structure of the body; or
477
(B) any function of the body.
478
(b) "Drug" does not include:
479
(i) food and food ingredients;
480
(ii) a dietary supplement;
481
(iii) an alcoholic beverage; or
482
(iv) a prosthetic device.
483
(46)(a) "Durable medical equipment" means equipment that:
484
(i) can withstand repeated use;
485
(ii) is primarily and customarily used to serve a medical purpose;
486
(iii) generally is not useful to a person in the absence of illness or injury; and
487
(iv) is not worn in or on the body.
488
(b) "Durable medical equipment" includes parts used in the repair or replacement of the
489
equipment described in Subsection (46)(a).
490
(c) "Durable medical equipment" does not include mobility enhancing equipment.
491
(47) "Electric storage facility" means a facility that stores electricity and has a storage
492
capacity of two megawatts or greater, regardless of whether the facility is:
493
(a) connected to an electric grid;
494
(b) part of an alternative energy electricity production facility or other electricity
495
production facility; or
496
(c) located on the premises of an electricity consumer.
497
[(47)] (48) "Electronic" means:
498
(a) relating to technology; and
499
(b) having:
500
(i) electrical capabilities;
501
(ii) digital capabilities;
502
(iii) magnetic capabilities;
503
(iv) wireless capabilities;
504
(v) optical capabilities;
505
(vi) electromagnetic capabilities; or
506
(vii) capabilities similar to Subsections [(47)(b)(i)] (48)(b)(i) through (vi).
- 15 - S.B. 311 02-20 10:39
507
[(48)] (49) "Electronic financial payment service" means an establishment:
508
(a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
509
Clearinghouse Activities, of the 2012 North American Industry Classification System
510
of the federal Executive Office of the President, Office of Management and Budget;
511
and
512
(b) that performs electronic financial payment services.
513
[(49)] (50) "Employee" means the same as that term is defined in Section 59-10-401.
514
[(50)] (51) "Fixed guideway" means a public transit facility that uses and occupies:
515
(a) rail for the use of public transit; or
516
(b) a separate right-of-way for the use of public transit.
517
[(51)] (52) "Fixed wing turbine powered aircraft" means an aircraft that:
518
(a) is powered by turbine engines;
519
(b) operates on jet fuel; and
520
(c) has wings that are permanently attached to the fuselage of the aircraft.
521
[(52)] (53) "Fixed wireless service" means a telecommunications service that provides radio
522
communication between fixed points.
523
[(53)] (54)(a) "Food and food ingredients" means substances:
524
(i) regardless of whether the substances are in:
525
(A) liquid form;
526
(B) concentrated form;
527
(C) solid form;
528
(D) frozen form;
529
(E) dried form; or
530
(F) dehydrated form; and
531
(ii) that are:
532
(A) sold for:
533
(I) ingestion by humans; or
534
(II) chewing by humans; and
535
(B) consumed for the substance's:
536
(I) taste; or
537
(II) nutritional value.
538
(b) "Food and food ingredients" includes an item described in Subsection [(99)(b)(iii)]
539
(100)(b)(iii).
540
(c) "Food and food ingredients" does not include:
- 16 - 02-20 10:39 S.B. 311
541
(i) an alcoholic beverage;
542
(ii) tobacco; or
543
(iii) prepared food.
544
[(54)] (55)(a) "Fundraising sales" means sales:
545
(i)(A) made by a school; or
546
(B) made by a school student;
547
(ii) that are for the purpose of raising funds for the school to purchase equipment,
548
materials, or provide transportation; and
549
(iii) that are part of an officially sanctioned school activity.
550
(b) For purposes of Subsection [(54)(a)(iii)] (55)(a)(iii), "officially sanctioned school
551
activity" means a school activity:
552
(i) that is conducted in accordance with a formal policy adopted by the school or
553
school district governing the authorization and supervision of fundraising
554
activities;
555
(ii) that does not directly or indirectly compensate an individual teacher or other
556
educational personnel by direct payment, commissions, or payment in kind; and
557
(iii) the net or gross revenue from which is deposited in a dedicated account
558
controlled by the school or school district.
559
[(55)] (56) "Geothermal energy" means energy contained in heat that continuously flows
560
outward from the earth that is used as the sole source of energy to produce electricity.
561
[(56)] (57) "Governing board of the agreement" means the governing board of the
562
agreement that is:
563
(a) authorized to administer the agreement; and
564
(b) established in accordance with the agreement.
565
[(57)] (58)(a) For purposes of Subsection 59-12-104(41), "governmental entity" means:
566
(i) the executive branch of the state, including all departments, institutions, boards,
567
divisions, bureaus, offices, commissions, and committees;
568
(ii) the judicial branch of the state, including the courts, the Judicial Council, the
569
Administrative Office of the Courts, and similar administrative units in the
570
judicial branch;
571
(iii) the legislative branch of the state, including the House of Representatives, the
572
Senate, the Legislative Printing Office, the Office of Legislative Research and
573
General Counsel, the Office of the Legislative Auditor General, and the Office of
574
the Legislative Fiscal Analyst;
- 17 - S.B. 311 02-20 10:39
575
(iv) the National Guard;
576
(v) an independent entity as defined in Section 63E-1-102; or
577
(vi) a political subdivision as defined in Section 17B-1-102.
578
(b) "Governmental entity" does not include the state systems of public and higher
579
education, including:
580
(i) a school;
581
(ii) the State Board of Education;
582
(iii) the Utah Board of Higher Education; or
583
(iv) an institution of higher education described in Section 53B-1-102.
584
[(58)] (59) "Hydroelectric energy" means water used as the sole source of energy to produce
585
electricity.
586
[(59)] (60) "Individual-owned shared vehicle" means the same as that term is defined in
587
Section 13-48a-101.
588
[(60)] (61) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
589
other fuels:
590
(a) in mining or extraction of minerals;
591
(b) in agricultural operations to produce an agricultural product up to the time of harvest
592
or placing the agricultural product into a storage facility, including:
593
(i) commercial greenhouses;
594
(ii) irrigation pumps;
595
(iii) farm machinery;
596
(iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
597
under Title 41, Chapter 1a, Part 2, Registration; and
598
(v) other farming activities;
599
(c) in manufacturing tangible personal property at an establishment described in:
600
(i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
601
the federal Executive Office of the President, Office of Management and Budget;
602
or
603
(ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
604
American Industry Classification System of the federal Executive Office of the
605
President, Office of Management and Budget;
606
(d) by a scrap recycler if:
607
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to
608
process one or more of the following items into prepared grades of processed
- 18 - 02-20 10:39 S.B. 311
609
materials for use in new products:
610
(A) iron;
611
(B) steel;
612
(C) nonferrous metal;
613
(D) paper;
614
(E) glass;
615
(F) plastic;
616
(G) textile; or
617
(H) rubber; and
618
(ii) the new products under Subsection [(60)(d)(i)] (61)(d)(i) would otherwise be
619
made with nonrecycled materials; or
620
(e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
621
cogeneration facility as defined in Section 54-2-1.
622
[(61)] (62)(a) "Installation charge" means a charge for installing:
623
(i) tangible personal property; or
624
(ii) a product transferred electronically.
625
(b) "Installation charge" does not include a charge for:
626
(i) repairs or renovations of:
627
(A) tangible personal property; or
628
(B) a product transferred electronically; or
629
(ii) attaching tangible personal property or a product transferred electronically:
630
(A) to other tangible personal property; and
631
(B) as part of a manufacturing or fabrication process.
632
[(62)] (63) "Institution of higher education" means an institution of higher education listed
633
in Section 53B-2-101.
634
[(63)] (64)(a) "Lease" or "rental" means a transfer of possession or control of tangible
635
personal property or a product transferred electronically for:
636
(i)(A) a fixed term; or
637
(B) an indeterminate term; and
638
(ii) consideration.
639
(b) "Lease" or "rental" includes:
640
(i) an agreement covering a motor vehicle and trailer if the amount of consideration
641
may be increased or decreased by reference to the amount realized upon sale or
642
disposition of the property as defined in Section 7701(h)(1), Internal Revenue
- 19 - S.B. 311 02-20 10:39
643
Code; and
644
(ii) car sharing.
645
(c) "Lease" or "rental" does not include:
646
(i) a transfer of possession or control of property under a security agreement or
647
deferred payment plan that requires the transfer of title upon completion of the
648
required payments;
649
(ii) a transfer of possession or control of property under an agreement that requires
650
the transfer of title:
651
(A) upon completion of required payments; and
652
(B) if the payment of an option price does not exceed the greater of:
653
(I) $100; or
654
(II) 1% of the total required payments; or
655
(iii) providing tangible personal property along with an operator for a fixed period of
656
time or an indeterminate period of time if the operator is necessary for equipment
657
to perform as designed.
658
(d) For purposes of Subsection [(63)(c)(iii)] (64)(c)(iii), an operator is necessary for
659
equipment to perform as designed if the operator's duties exceed the:
660
(i) set-up of tangible personal property;
661
(ii) maintenance of tangible personal property; or
662
(iii) inspection of tangible personal property.
663
[(64)] (65) "Lesson" means a fixed period of time for the duration of which a trained
664
instructor:
665
(a) is present with a student in person or by video; and
666
(b) actively instructs the student, including by providing observation or feedback.
667
[(65)] (66) "Life science establishment" means an establishment in this state that is
668
classified under the following NAICS codes of the 2007 North American Industry
669
Classification System of the federal Executive Office of the President, Office of
670
Management and Budget:
671
(a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
672
(b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
673
Manufacturing; or
674
(c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
675
[(66)] (67) "Life science research and development facility" means a facility owned, leased,
676
or rented by a life science establishment if research and development is performed in
- 20 - 02-20 10:39 S.B. 311
677
51% or more of the total area of the facility.
678
[(67)] (68) "Load and leave" means delivery to a purchaser by use of a tangible storage
679
media if the tangible storage media is not physically transferred to the purchaser.
680
[(68)] (69) "Local taxing jurisdiction" means a:
681
(a) county that is authorized to impose an agreement sales and use tax;
682
(b) city that is authorized to impose an agreement sales and use tax; or
683
(c) town that is authorized to impose an agreement sales and use tax.
684
[(69)] (70) "Manufactured home" means the same as that term is defined in Section
685
15A-1-302.
686
[(70)] (71) "Manufacturing facility" means:
687
(a) an establishment described in:
688
(i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
689
the federal Executive Office of the President, Office of Management and Budget;
690
or
691
(ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
692
American Industry Classification System of the federal Executive Office of the
693
President, Office of Management and Budget;
694
(b) a scrap recycler if:
695
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to
696
process one or more of the following items into prepared grades of processed
697
materials for use in new products:
698
(A) iron;
699
(B) steel;
700
(C) nonferrous metal;
701
(D) paper;
702
(E) glass;
703
(F) plastic;
704
(G) textile; or
705
(H) rubber; and
706
(ii) the new products under Subsection [(70)(b)(i)] (71)(b)(i) would otherwise be
707
made with nonrecycled materials; or
708
(c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
709
placed in service on or after May 1, 2006.
710
[(71)] (72)(a) "Marketplace" means a physical or electronic place, platform, or forum
- 21 - S.B. 311 02-20 10:39
711
where tangible personal property, a product transferred electronically, or a service is
712
offered for sale.
713
(b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a dedicated
714
sales software application.
715
[(72)] (73)(a) "Marketplace facilitator" means a person, including an affiliate of the
716
person, that enters into a contract, an agreement, or otherwise with sellers, for
717
consideration, to facilitate the sale of a seller's product through a marketplace that the
718
person owns, operates, or controls and that directly or indirectly:
719
(i) does any of the following:
720
(A) lists, makes available, or advertises tangible personal property, a product
721
transferred electronically, or a service for sale by a marketplace seller on a
722
marketplace that the person owns, operates, or controls;
723
(B) facilitates the sale of a marketplace seller's tangible personal property, product
724
transferred electronically, or service by transmitting or otherwise
725
communicating an offer or acceptance of a retail sale between the marketplace
726
seller and a purchaser using the marketplace;
727
(C) owns, rents, licenses, makes available, or operates any electronic or physical
728
infrastructure or any property, process, method, copyright, trademark, or patent
729
that connects a marketplace seller to a purchaser for the purpose of making a
730
retail sale of tangible personal property, a product transferred electronically, or
731
a service;
732
(D) provides a marketplace for making, or otherwise facilitates, a retail sale of
733
tangible personal property, a product transferred electronically, or a service,
734
regardless of ownership or control of the tangible personal property, the
735
product transferred electronically, or the service that is the subject of the retail
736
sale;
737
(E) provides software development or research and development activities related
738
to any activity described in this Subsection [(72)(a)(i)] (73)(a)(i), if the software
739
development or research and development activity is directly related to the
740
person's marketplace;
741
(F) provides or offers fulfillment or storage services for a marketplace seller;
742
(G) sets prices for the sale of tangible personal property, a product transferred
743
electronically, or a service by a marketplace seller;
744
(H) provides or offers customer service to a marketplace seller or a marketplace
- 22 - 02-20 10:39 S.B. 311
745
seller's purchaser or accepts or assists with taking orders, returns, or exchanges
746
of tangible personal property, a product transferred electronically, or a service
747
sold by a marketplace seller on the person's marketplace; or
748
(I) brands or otherwise identifies sales as those of the person; and
749
(ii) does any of the following:
750
(A) collects the sales price or purchase price of a retail sale of tangible personal
751
property, a product transferred electronically, or a service;
752
(B) provides payment processing services for a retail sale of tangible personal
753
property, a product transferred electronically, or a service;
754
(C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee,
755
closing fee, a fee for inserting or making available tangible personal property, a
756
product transferred electronically, or a service on the person's marketplace, or
757
other consideration for the facilitation of a retail sale of tangible personal
758
property, a product transferred electronically, or a service, regardless of
759
ownership or control of the tangible personal property, the product transferred
760
electronically, or the service that is the subject of the retail sale;
761
(D) through terms and conditions, an agreement, or another arrangement with a
762
third person, collects payment from a purchase for a retail sale of tangible
763
personal property, a product transferred electronically, or a service and
764
transmits that payment to the marketplace seller, regardless of whether the
765
third person receives compensation or other consideration in exchange for the
766
service; or
767
(E) provides a virtual currency for a purchaser to use to purchase tangible personal
768
property, a product transferred electronically, or service offered for sale.
769
(b) "Marketplace facilitator" does not include:
770
(i) a person that only provides payment processing services; or
771
(ii) a person described in Subsection [(72)(a)] (73)(a) to the extent the person is
772
facilitating a sale for a seller that is a restaurant as defined in Section 59-12-602.
773
[(73)] (74) "Marketplace seller" means a seller that makes one or more retail sales through a
774
marketplace that a marketplace facilitator owns, operates, or controls, regardless of
775
whether the seller is required to be registered to collect and remit the tax under this part.
776
[(74)] (75) "Member of the immediate family of the producer" means a person who is
777
related to a producer described in Subsection 59-12-104(20)(a) as a:
778
(a) child or stepchild, regardless of whether the child or stepchild is:
- 23 - S.B. 311 02-20 10:39
779
(i) an adopted child or adopted stepchild; or
780
(ii) a foster child or foster stepchild;
781
(b) grandchild or stepgrandchild;
782
(c) grandparent or stepgrandparent;
783
(d) nephew or stepnephew;
784
(e) niece or stepniece;
785
(f) parent or stepparent;
786
(g) sibling or stepsibling;
787
(h) spouse;
788
(i) person who is the spouse of a person described in Subsections [(74)(a)] (75)(a)
789
through (g); or
790
(j) person similar to a person described in Subsections [(74)(a)] (75)(a) through (i) as
791
determined by the commission by rule made in accordance with Title 63G, Chapter 3,
792
Utah Administrative Rulemaking Act.
793
[(75)] (76) "Mobile home" means the same as that term is defined in Section 15A-1-302.
794
[(76)] (77) "Mobile telecommunications service" means the same as that term is defined in
795
the Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
796
[(77)] (78)(a) "Mobile wireless service" means a telecommunications service, regardless
797
of the technology used, if:
798
(i) the origination point of the conveyance, routing, or transmission is not fixed;
799
(ii) the termination point of the conveyance, routing, or transmission is not fixed; or
800
(iii) the origination point described in Subsection [(77)(a)(i)] (78)(a)(i) and the
801
termination point described in Subsection [(77)(a)(ii)] (78)(a)(ii) are not fixed.
802
(b) "Mobile wireless service" includes a telecommunications service that is provided by
803
a commercial mobile radio service provider.
804
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
805
commission may by rule define "commercial mobile radio service provider."
806
[(78)] (79)(a) "Mobility enhancing equipment" means equipment that is:
807
(i) primarily and customarily used to provide or increase the ability to move from one
808
place to another;
809
(ii) appropriate for use in a:
810
(A) home; or
811
(B) motor vehicle; and
812
(iii) not generally used by persons with normal mobility.
- 24 - 02-20 10:39 S.B. 311
813
(b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
814
the equipment described in Subsection [(78)(a)] (79)(a).
815
(c) "Mobility enhancing equipment" does not include:
816
(i) a motor vehicle;
817
(ii) equipment on a motor vehicle if that equipment is normally provided by the
818
motor vehicle manufacturer;
819
(iii) durable medical equipment; or
820
(iv) a prosthetic device.
821
[(79)] (80) "Model 1 seller" means a seller registered under the agreement that has selected a
822
certified service provider as the seller's agent to perform the seller's sales and use tax
823
functions for agreement sales and use taxes, as outlined in the contract between the
824
governing board of the agreement and the certified service provider, other than the
825
seller's obligation under Section 59-12-124 to remit a tax on the seller's own purchases.
826
[(80)] (81) "Model 2 seller" means a seller registered under the agreement that:
827
(a) except as provided in Subsection [(80)(b)] (81)(b), has selected a certified automated
828
system to perform the seller's sales tax functions for agreement sales and use taxes;
829
and
830
(b) retains responsibility for remitting all of the sales tax:
831
(i) collected by the seller; and
832
(ii) to the appropriate local taxing jurisdiction.
833
[(81)] (82)(a) Subject to Subsection [(81)(b)] (82)(b), "model 3 seller" means a seller
834
registered under the agreement that has:
835
(i) sales in at least five states that are members of the agreement;
836
(ii) total annual sales revenue of at least $500,000,000;
837
(iii) a proprietary system that calculates the amount of tax:
838
(A) for an agreement sales and use tax; and
839
(B) due to each local taxing jurisdiction; and
840
(iv) entered into a performance agreement with the governing board of the agreement.
841
(b) For purposes of Subsection [(81)(a)] (82)(a), "model 3 seller" includes an affiliated
842
group of sellers using the same proprietary system.
843
[(82)] (83) "Model 4 seller" means a seller that is registered under the agreement and is not a
844
model 1 seller, model 2 seller, or model 3 seller.
845
[(83)] (84) "Modular home" means a modular unit as defined in Section 15A-1-302.
846
[(84)] (85) "Motor vehicle" means the same as that term is defined in Section 41-1a-102.
- 25 - S.B. 311 02-20 10:39
847
[(85)] (86) "Oil sands" means impregnated bituminous sands that:
848
(a) contain a heavy, thick form of petroleum that is released when heated, mixed with
849
other hydrocarbons, or otherwise treated;
850
(b) yield mixtures of liquid hydrocarbon; and
851
(c) require further processing other than mechanical blending before becoming finished
852
petroleum products.
853
[(86)] (87) "Oil shale" means a group of fine black to dark brown shales containing kerogen
854
material that yields petroleum upon heating and distillation.
855
[(87)] (88) "Optional computer software maintenance contract" means a computer software
856
maintenance contract that a customer is not obligated to purchase as a condition to the
857
retail sale of computer software.
858
[(88)] (89)(a) "Other fuels" means products that burn independently to produce heat or
859
energy.
860
(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
861
personal property.
862
[(89)] (90)(a) "Paging service" means a telecommunications service that provides
863
transmission of a coded radio signal for the purpose of activating a specific pager.
864
(b) For purposes of Subsection [(89)(a)] (90)(a), the transmission of a coded radio signal
865
includes a transmission by message or sound.
866
[(90)] (91) "Pawn transaction" means the same as that term is defined in Section 13-32a-102.
867
[(91)] (92) "Pawnbroker" means the same as that term is defined in Section 13-32a-102.
868
[(92)] (93)(a) "Permanently attached to real property" means that for tangible personal
869
property attached to real property:
870
(i) the attachment of the tangible personal property to the real property:
871
(A) is essential to the use of the tangible personal property; and
872
(B) suggests that the tangible personal property will remain attached to the real
873
property in the same place over the useful life of the tangible personal
874
property; or
875
(ii) if the tangible personal property is detached from the real property, the
876
detachment would:
877
(A) cause substantial damage to the tangible personal property; or
878
(B) require substantial alteration or repair of the real property to which the
879
tangible personal property is attached.
880
(b) "Permanently attached to real property" includes:
- 26 - 02-20 10:39 S.B. 311
881
(i) the attachment of an accessory to the tangible personal property if the accessory is:
882
(A) essential to the operation of the tangible personal property; and
883
(B) attached only to facilitate the operation of the tangible personal property;
884
(ii) a temporary detachment of tangible personal property from real property for a
885
repair or renovation if the repair or renovation is performed where the tangible
886
personal property and real property are located; or
887
(iii) property attached to oil, gas, or water pipelines, except for the property listed in
888
Subsection [(92)(c)(iii)] (93)(c)(iii) or (iv).
889
(c) "Permanently attached to real property" does not include:
890
(i) the attachment of portable or movable tangible personal property to real property
891
if that portable or movable tangible personal property is attached to real property
892
only for:
893
(A) convenience;
894
(B) stability; or
895
(C) for an obvious temporary purpose;
896
(ii) the detachment of tangible personal property from real property except for the
897
detachment described in Subsection [(92)(b)(ii)] (93)(b)(ii);
898
(iii) an attachment of the following tangible personal property to real property if the
899
attachment to real property is only through a line that supplies water, electricity,
900
gas, telecommunications, cable, or supplies a similar item as determined by the
901
commission by rule made in accordance with Title 63G, Chapter 3, Utah
902
Administrative Rulemaking Act:
903
(A) a computer;
904
(B) a telephone;
905
(C) a television; or
906
(D) tangible personal property similar to Subsections [(92)(c)(iii)(A)]
907
(93)(c)(iii)(A) through (C) as determined by the commission by rule made in
908
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; or
909
(iv) an item listed in Subsection [(137)(c)] (138)(c).
910
[(93)] (94) "Person" includes any individual, firm, partnership, joint venture, association,
911
corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
912
municipality, district, or other local governmental entity of the state, or any group or
913
combination acting as a unit.
914
[(94)] (95) "Place of primary use":
- 27 - S.B. 311 02-20 10:39
915
(a) for telecommunications service other than mobile telecommunications service,
916
means the street address representative of where the customer's use of the
917
telecommunications service primarily occurs, which shall be:
918
(i) the residential street address of the customer; or
919
(ii) the primary business street address of the customer; or
920
(b) for mobile telecommunications service, means the same as that term is defined in the
921
Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
922
[(95)] (96)(a) "Postpaid calling service" means a telecommunications service a person
923
obtains by making a payment on a call-by-call basis:
924
(i) through the use of a:
925
(A) bank card;
926
(B) credit card;
927
(C) debit card; or
928
(D) travel card; or
929
(ii) by a charge made to a telephone number that is not associated with the origination
930
or termination of the telecommunications service.
931
(b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
932
service, that would be a prepaid wireless calling service if the service were
933
exclusively a telecommunications service.
934
[(96)] (97) "Postproduction" means an activity related to the finishing or duplication of a
935
medium described in Subsection 59-12-104(54)(a).
936
[(97)] (98) "Prepaid calling service" means a telecommunications service:
937
(a) that allows a purchaser access to telecommunications service that is exclusively
938
telecommunications service;
939
(b) that:
940
(i) is paid for in advance; and
941
(ii) enables the origination of a call using an:
942
(A) access number; or
943
(B) authorization code;
944
(c) that is dialed:
945
(i) manually; or
946
(ii) electronically; and
947
(d) sold in predetermined units or dollars that decline:
948
(i) by a known amount; and
- 28 - 02-20 10:39 S.B. 311
949
(ii) with use.
950
[(98)] (99) "Prepaid wireless calling service" means a telecommunications service:
951
(a) that provides the right to utilize:
952
(i) mobile wireless service; and
953
(ii) other service that is not a telecommunications service, including:
954
(A) the download of a product transferred electronically;
955
(B) a content service; or
956
(C) an ancillary service;
957
(b) that:
958
(i) is paid for in advance; and
959
(ii) enables the origination of a call using an:
960
(A) access number; or
961
(B) authorization code;
962
(c) that is dialed:
963
(i) manually; or
964
(ii) electronically; and
965
(d) sold in predetermined units or dollars that decline:
966
(i) by a known amount; and
967
(ii) with use.
968
[(99)] (100)(a) "Prepared food" means:
969
(i) food:
970
(A) sold in a heated state; or
971
(B) heated by a seller;
972
(ii) two or more food ingredients mixed or combined by the seller for sale as a single
973
item; or
974
(iii) except as provided in Subsection [(99)(c)] (100)(c), food sold with an eating
975
utensil provided by the seller, including a:
976
(A) plate;
977
(B) knife;
978
(C) fork;
979
(D) spoon;
980
(E) glass;
981
(F) cup;
982
(G) napkin; or
- 29 - S.B. 311 02-20 10:39
983
(H) straw.
984
(b) "Prepared food" does not include:
985
(i) food that a seller only:
986
(A) cuts;
987
(B) repackages; or
988
(C) pasteurizes;
989
(ii)(A) the following:
990
(I) raw egg;
991
(II) raw fish;
992
(III) raw meat;
993
(IV) raw poultry; or
994
(V) a food containing an item described in Subsections [(99)(b)(ii)(A)(I)]
995
(100)(b)(ii)(A)(I) through (IV); and
996
(B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of
997
the Food and Drug Administration's Food Code that a consumer cook the items
998
described in Subsection [(99)(b)(ii)(A)] (100)(b)(ii)(A) to prevent food borne
999
illness; or
1000
(iii) the following if sold without eating utensils provided by the seller:
1001
(A) food and food ingredients sold by a seller if the seller's proper primary
1002
classification under the 2002 North American Industry Classification System
1003
of the federal Executive Office of the President, Office of Management and
1004
Budget, is manufacturing in Sector 311, Food Manufacturing, except for
1005
Subsector 3118, Bakeries and Tortilla Manufacturing;
1006
(B) food and food ingredients sold in an unheated state:
1007
(I) by weight or volume; and
1008
(II) as a single item; or
1009
(C) a bakery item, including:
1010
(I) a bagel;
1011
(II) a bar;
1012
(III) a biscuit;
1013
(IV) bread;
1014
(V) a bun;
1015
(VI) a cake;
1016
(VII) a cookie;
- 30 - 02-20 10:39 S.B. 311
1017
(VIII) a croissant;
1018
(IX) a danish;
1019
(X) a donut;
1020
(XI) a muffin;
1021
(XII) a pastry;
1022
(XIII) a pie;
1023
(XIV) a roll;
1024
(XV) a tart;
1025
(XVI) a torte; or
1026
(XVII) a tortilla.
1027
(c) An eating utensil provided by the seller does not include the following used to
1028
transport the food:
1029
(i) a container; or
1030
(ii) packaging.
1031
[(100)] (101) "Prescription" means an order, formula, or recipe that is issued:
1032
(a)(i) orally;
1033
(ii) in writing;
1034
(iii) electronically; or
1035
(iv) by any other manner of transmission; and
1036
(b) by a licensed practitioner authorized by the laws of a state.
1037
[(101)] (102)(a) "Prewritten computer software" means computer software that is not
1038
designed and developed:
1039
(i) by the author or other creator of the computer software; and
1040
(ii) to the specifications of a specific purchaser.
1041
(b) "Prewritten computer software" includes:
1042
(i) a prewritten upgrade to computer software if the prewritten upgrade to the
1043
computer software is not designed and developed:
1044
(A) by the author or other creator of the computer software; and
1045
(B) to the specifications of a specific purchaser;
1046
(ii) computer software designed and developed by the author or other creator of the
1047
computer software to the specifications of a specific purchaser if the computer
1048
software is sold to a person other than the purchaser; or
1049
(iii) except as provided in Subsection [(101)(c)] (102)(c), prewritten computer
1050
software or a prewritten portion of prewritten computer software:
- 31 - S.B. 311 02-20 10:39
1051
(A) that is modified or enhanced to any degree; and
1052
(B) if the modification or enhancement described in Subsection [(101)(b)(iii)(A)]
1053
(102)(b)(iii)(A) is designed and developed to the specifications of a specific
1054
purchaser.
1055
(c) "Prewritten computer software" does not include a modification or enhancement
1056
described in Subsection [(101)(b)(iii)] (102)(b)(iii) if the charges for the modification
1057
or enhancement are:
1058
(i) reasonable; and
1059
(ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), separately stated on the
1060
invoice or other statement of price provided to the purchaser at the time of sale or
1061
later, as demonstrated by:
1062
(A) the books and records the seller keeps at the time of the transaction in the
1063
regular course of business, including books and records the seller keeps at the
1064
time of the transaction in the regular course of business for nontax purposes;
1065
(B) a preponderance of the facts and circumstances at the time of the transaction;
1066
and
1067
(C) the understanding of all of the parties to the transaction.
1068
[(102)] (103)(a) "Private communications service" means a telecommunications service:
1069
(i) that entitles a customer to exclusive or priority use of one or more
1070
communications channels between or among termination points; and
1071
(ii) regardless of the manner in which the one or more communications channels are
1072
connected.
1073
(b) "Private communications service" includes the following provided in connection
1074
with the use of one or more communications channels:
1075
(i) an extension line;
1076
(ii) a station;
1077
(iii) switching capacity; or
1078
(iv) another associated service that is provided in connection with the use of one or
1079
more communications channels as defined in Section 59-12-215.
1080
[(103)] (104)(a) "Product transferred electronically" means a product transferred
1081
electronically that would be subject to a tax under this chapter if that product was
1082
transferred in a manner other than electronically.
1083
(b) "Product transferred electronically" does not include:
1084
(i) an ancillary service;
- 32 - 02-20 10:39 S.B. 311
1085
(ii) computer software; or
1086
(iii) a telecommunications service.
1087
[(104)] (105)(a) "Prosthetic device" means a device that is worn on or in the body to:
1088
(i) artificially replace a missing portion of the body;
1089
(ii) prevent or correct a physical deformity or physical malfunction; or
1090
(iii) support a weak or deformed portion of the body.
1091
(b) "Prosthetic device" includes:
1092
(i) parts used in the repairs or renovation of a prosthetic device;
1093
(ii) replacement parts for a prosthetic device;
1094
(iii) a dental prosthesis; or
1095
(iv) a hearing aid.
1096
(c) "Prosthetic device" does not include:
1097
(i) corrective eyeglasses; or
1098
(ii) contact lenses.
1099
[(105)] (106)(a) "Protective equipment" means an item:
1100
(i) for human wear; and
1101
(ii) that is:
1102
(A) designed as protection:
1103
(I) to the wearer against injury or disease; or
1104
(II) against damage or injury of other persons or property; and
1105
(B) not suitable for general use.
1106
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1107
commission shall make rules:
1108
(i) listing the items that constitute "protective equipment"; and
1109
(ii) that are consistent with the list of items that constitute "protective equipment"
1110
under the agreement.
1111
[(106)] (107)(a) For purposes of Subsection 59-12-104(41), "publication" means any
1112
written or printed matter, other than a photocopy:
1113
(i) regardless of:
1114
(A) characteristics;
1115
(B) copyright;
1116
(C) form;
1117
(D) format;
1118
(E) method of reproduction; or
- 33 - S.B. 311 02-20 10:39
1119
(F) source; and
1120
(ii) made available in printed or electronic format.
1121
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1122
commission may by rule define the term "photocopy."
1123
[(107)] (108)(a) "Purchase price" and "sales price" mean the total amount of
1124
consideration:
1125
(i) valued in money; and
1126
(ii) for which tangible personal property, a product transferred electronically, or
1127
services are:
1128
(A) sold;
1129
(B) leased; or
1130
(C) rented.
1131
(b) "Purchase price" and "sales price" include:
1132
(i) the seller's cost of the tangible personal property, a product transferred
1133
electronically, or services sold;
1134
(ii) expenses of the seller, including:
1135
(A) the cost of materials used;
1136
(B) a labor cost;
1137
(C) a service cost;
1138
(D) interest;
1139
(E) a loss;
1140
(F) the cost of transportation to the seller; or
1141
(G) a tax imposed on the seller;
1142
(iii) a charge by the seller for any service necessary to complete the sale; or
1143
(iv) consideration a seller receives from a person other than the purchaser if:
1144
(A)(I) the seller actually receives consideration from a person other than the
1145
purchaser; and
1146
(II) the consideration described in Subsection [(107)(b)(iv)(A)(I)]
1147
(108)(b)(iv)(A)(I) is directly related to a price reduction or discount on the
1148
sale;
1149
(B) the seller has an obligation to pass the price reduction or discount through to
1150
the purchaser;
1151
(C) the amount of the consideration attributable to the sale is fixed and
1152
determinable by the seller at the time of the sale to the purchaser; and
- 34 - 02-20 10:39 S.B. 311
1153
(D)(I)(Aa) the purchaser presents a certificate, coupon, or other
1154
documentation to the seller to claim a price reduction or discount; and
1155
(Bb) a person other than the seller authorizes, distributes, or grants the
1156
certificate, coupon, or other documentation with the understanding that
1157
the person other than the seller will reimburse any seller to whom the
1158
certificate, coupon, or other documentation is presented;
1159
(II) the purchaser identifies that purchaser to the seller as a member of a group
1160
or organization allowed a price reduction or discount, except that a
1161
preferred customer card that is available to any patron of a seller does not
1162
constitute membership in a group or organization allowed a price reduction
1163
or discount; or
1164
(III) the price reduction or discount is identified as a third party price reduction
1165
or discount on the:
1166
(Aa) invoice the purchaser receives; or
1167
(Bb) certificate, coupon, or other documentation the purchaser presents.
1168
(c) "Purchase price" and "sales price" do not include:
1169
(i) a discount:
1170
(A) in a form including:
1171
(I) cash;
1172
(II) term; or
1173
(III) coupon;
1174
(B) that is allowed by a seller;
1175
(C) taken by a purchaser on a sale; and
1176
(D) that is not reimbursed by a third party; or
1177
(ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), the following if
1178
separately stated on an invoice, bill of sale, or similar document provided to the
1179
purchaser at the time of sale or later, as demonstrated by the books and records the
1180
seller keeps at the time of the transaction in the regular course of business,
1181
including books and records the seller keeps at the time of the transaction in the
1182
regular course of business for nontax purposes, by a preponderance of the facts
1183
and circumstances at the time of the transaction, and by the understanding of all of
1184
the parties to the transaction:
1185
(A) the following from credit extended on the sale of tangible personal property or
1186
services:
- 35 - S.B. 311 02-20 10:39
1187
(I) a carrying charge;
1188
(II) a financing charge; or
1189
(III) an interest charge;
1190
(B) a delivery charge;
1191
(C) an installation charge;
1192
(D) a manufacturer rebate on a motor vehicle; or
1193
(E) a tax or fee legally imposed directly on the consumer.
1194
[(108)] (109) "Purchaser" means a person to whom:
1195
(a) a sale of tangible personal property is made;
1196
(b) a product is transferred electronically; or
1197
(c) a service is furnished.
1198
[(109)] (110) "Qualifying data center" means a data center facility that:
1199
(a) houses a group of networked server computers in one physical location in order to
1200
disseminate, manage, and store data and information;
1201
(b) is located in the state;
1202
(c) is a new operation constructed on or after July 1, 2016;
1203
(d) consists of one or more buildings that total 150,000 or more square feet;
1204
(e) is owned or leased by:
1205
(i) the operator of the data center facility; or
1206
(ii) a person under common ownership, as defined in Section 59-7-101, of the
1207
operator of the data center facility; and
1208
(f) is located on one or more parcels of land that are owned or leased by:
1209
(i) the operator of the data center facility; or
1210
(ii) a person under common ownership, as defined in Section 59-7-101, of the
1211
operator of the data center facility.
1212
[(110)] (111) "Regularly rented" means:
1213
(a) rented to a guest for value three or more times during a calendar year; or
1214
(b) advertised or held out to the public as a place that is regularly rented to guests for
1215
value.
1216
[(111)] (112) "Rental" means the same as that term is defined in Subsection [(63)] (64).
1217
[(112)] (113)(a) "Repairs or renovations of tangible personal property" means:
1218
(i) a repair or renovation of tangible personal property that is not permanently
1219
attached to real property; or
1220
(ii) attaching tangible personal property or a product transferred electronically to
- 36 - 02-20 10:39 S.B. 311
1221
other tangible personal property or detaching tangible personal property or a
1222
product transferred electronically from other tangible personal property if:
1223
(A) the other tangible personal property to which the tangible personal property or
1224
product transferred electronically is attached or from which the tangible
1225
personal property or product transferred electronically is detached is not
1226
permanently attached to real property; and
1227
(B) the attachment of tangible personal property or a product transferred
1228
electronically to other tangible personal property or detachment of tangible
1229
personal property or a product transferred electronically from other tangible
1230
personal property is made in conjunction with a repair or replacement of
1231
tangible personal property or a product transferred electronically.
1232
(b) "Repairs or renovations of tangible personal property" does not include:
1233
(i) attaching prewritten computer software to other tangible personal property if the
1234
other tangible personal property to which the prewritten computer software is
1235
attached is not permanently attached to real property; or
1236
(ii) detaching prewritten computer software from other tangible personal property if
1237
the other tangible personal property from which the prewritten computer software
1238
is detached is not permanently attached to real property.
1239
[(113)] (114) "Research and development" means the process of inquiry or experimentation
1240
aimed at the discovery of facts, devices, technologies, or applications and the process of
1241
preparing those devices, technologies, or applications for marketing.
1242
[(114)] (115)(a) "Residential telecommunications services" means a telecommunications
1243
service or an ancillary service that is provided to an individual for personal use:
1244
(i) at a residential address; or
1245
(ii) at an institution, including a nursing home or a school, if the telecommunications
1246
service or ancillary service is provided to and paid for by the individual residing at
1247
the institution rather than the institution.
1248
(b) For purposes of Subsection [(114)(a)(i)] (115)(a)(i), a residential address includes an:
1249
(i) apartment; or
1250
(ii) other individual dwelling unit.
1251
[(115)] (116) "Residential use" means the use in or around a home, apartment building,
1252
sleeping quarters, and similar facilities or accommodations.
1253
[(116)] (117) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
1254
than:
- 37 - S.B. 311 02-20 10:39
1255
(a) resale;
1256
(b) sublease; or
1257
(c) subrent.
1258
[(117)] (118)(a) "Retailer" means any person, unless prohibited by the Constitution of the
1259
United States or federal law, that is engaged in a regularly organized business in
1260
tangible personal property or any other taxable transaction under Subsection
1261
59-12-103(1), and who is selling to the user or consumer and not for resale.
1262
(b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1263
engaged in the business of selling to users or consumers within the state.
1264
[(118)] (119)(a) "Sale" means any transfer of title, exchange, or barter, conditional or
1265
otherwise, in any manner, of tangible personal property or any other taxable
1266
transaction under Subsection 59-12-103(1), for consideration.
1267
(b) "Sale" includes:
1268
(i) installment and credit sales;
1269
(ii) any closed transaction constituting a sale;
1270
(iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1271
chapter;
1272
(iv) any transaction if the possession of property is transferred but the seller retains
1273
the title as security for the payment of the price; and
1274
(v) any transaction under which right to possession, operation, or use of any article of
1275
tangible personal property is granted under a lease or contract and the transfer of
1276
possession would be taxable if an outright sale were made.
1277
[(119)] (120) "Sale at retail" means the same as that term is defined in Subsection [(116)]
1278
(117).
1279
[(120)] (121) "Sale-leaseback transaction" means a transaction by which title to tangible
1280
personal property or a product transferred electronically that is subject to a tax under this
1281
chapter is transferred:
1282
(a) by a purchaser-lessee;
1283
(b) to a lessor;
1284
(c) for consideration; and
1285
(d) if:
1286
(i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial
1287
purchase of the tangible personal property or product transferred electronically;
1288
(ii) the sale of the tangible personal property or product transferred electronically to
- 38 - 02-20 10:39 S.B. 311
1289
the lessor is intended as a form of financing:
1290
(A) for the tangible personal property or product transferred electronically; and
1291
(B) to the purchaser-lessee; and
1292
(iii) in accordance with generally accepted accounting principles, the
1293
purchaser-lessee is required to:
1294
(A) capitalize the tangible personal property or product transferred electronically
1295
for financial reporting purposes; and
1296
(B) account for the lease payments as payments made under a financing
1297
arrangement.
1298
[(121)] (122) "Sales price" means the same as that term is defined in Subsection [(107)] (108).
1299
[(122)] (123)(a) "Sales relating to schools" means the following sales by, amounts paid
1300
to, or amounts charged by a school:
1301
(i) sales that are directly related to the school's educational functions or activities
1302
including:
1303
(A) the sale of:
1304
(I) textbooks;
1305
(II) textbook fees;
1306
(III) laboratory fees;
1307
(IV) laboratory supplies; or
1308
(V) safety equipment;
1309
(B) the sale of a uniform, protective equipment, or sports or recreational
1310
equipment that:
1311
(I) a student is specifically required to wear as a condition of participation in a
1312
school-related event or school-related activity; and
1313
(II) is not readily adaptable to general or continued usage to the extent that it
1314
takes the place of ordinary clothing;
1315
(C) sales of the following if the net or gross revenue generated by the sales is
1316
deposited into a school district fund or school fund dedicated to school meals:
1317
(I) food and food ingredients; or
1318
(II) prepared food; or
1319
(D) transportation charges for official school activities; or
1320
(ii) amounts paid to or amounts charged by a school for admission to a school-related
1321
event or school-related activity.
1322
(b) "Sales relating to schools" does not include:
- 39 - S.B. 311 02-20 10:39
1323
(i) bookstore sales of items that are not educational materials or supplies;
1324
(ii) except as provided in Subsection [(122)(a)(i)(B)] (123)(a)(i)(B):
1325
(A) clothing;
1326
(B) clothing accessories or equipment;
1327
(C) protective equipment; or
1328
(D) sports or recreational equipment; or
1329
(iii) amounts paid to or amounts charged by a school for admission to a
1330
school-related event or school-related activity if the amounts paid or charged are
1331
passed through to a person:
1332
(A) other than a:
1333
(I) school;
1334
(II) nonprofit organization authorized by a school board or a governing body of
1335
a private school to organize and direct a competitive secondary school
1336
activity; or
1337
(III) nonprofit association authorized by a school board or a governing body of
1338
a private school to organize and direct a competitive secondary school
1339
activity; and
1340
(B) that is required to collect sales and use taxes under this chapter.
1341
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1342
commission may make rules defining the term "passed through."
1343
[(123)] (124) For purposes of this section and Section 59-12-104, "school" means:
1344
(a) an elementary school or a secondary school that:
1345
(i) is a:
1346
(A) public school; or
1347
(B) private school; and
1348
(ii) provides instruction for one or more grades kindergarten through 12; or
1349
(b) a public school district.
1350
[(124)] (125)(a) "Seller" means a person that makes a sale, lease, or rental of:
1351
(i) tangible personal property;
1352
(ii) a product transferred electronically; or
1353
(iii) a service.
1354
(b) "Seller" includes a marketplace facilitator.
1355
[(125)] (126)(a) "Semiconductor fabricating, processing, research, or development
1356
materials" means tangible personal property or a product transferred electronically if
- 40 - 02-20 10:39 S.B. 311
1357
the tangible personal property or product transferred electronically is:
1358
(i) used primarily in the process of:
1359
(A)(I) manufacturing a semiconductor;
1360
(II) fabricating a semiconductor; or
1361
(III) research or development of a:
1362
(Aa) semiconductor; or
1363
(Bb) semiconductor manufacturing process; or
1364
(B) maintaining an environment suitable for a semiconductor; or
1365
(ii) consumed primarily in the process of:
1366
(A)(I) manufacturing a semiconductor;
1367
(II) fabricating a semiconductor; or
1368
(III) research or development of a:
1369
(Aa) semiconductor; or
1370
(Bb) semiconductor manufacturing process; or
1371
(B) maintaining an environment suitable for a semiconductor.
1372
(b) "Semiconductor fabricating, processing, research, or development materials"
1373
includes:
1374
(i) parts used in the repairs or renovations of tangible personal property or a product
1375
transferred electronically described in Subsection [(125)(a)] (126)(a); or
1376
(ii) a chemical, catalyst, or other material used to:
1377
(A) produce or induce in a semiconductor a:
1378
(I) chemical change; or
1379
(II) physical change;
1380
(B) remove impurities from a semiconductor; or
1381
(C) improve the marketable condition of a semiconductor.
1382
[(126)] (127) "Senior citizen center" means a facility having the primary purpose of
1383
providing services to the aged as defined in Section 26B-6-101.
1384
[(127)] (128) "Shared vehicle" means the same as that term is defined in Section 13-48a-101.
1385
[(128)] (129) "Shared vehicle driver" means the same as that term is defined in Section
1386
13-48a-101.
1387
[(129)] (130) "Shared vehicle owner" means the same as that term is defined in Section
1388
13-48a-101.
1389
[(130)] (131)(a) Subject to Subsections [(130)(b)] (131)(b) and (c), "short-term lodging
1390
consumable" means tangible personal property that:
- 41 - S.B. 311 02-20 10:39
1391
(i) a business that provides accommodations and services described in Subsection
1392
59-12-103(1)(i) purchases as part of a transaction to provide the accommodations
1393
and services to a purchaser;
1394
(ii) is intended to be consumed by the purchaser; and
1395
(iii) is:
1396
(A) included in the purchase price of the accommodations and services; and
1397
(B) not separately stated on an invoice, bill of sale, or other similar document
1398
provided to the purchaser.
1399
(b) "Short-term lodging consumable" includes:
1400
(i) a beverage;
1401
(ii) a brush or comb;
1402
(iii) a cosmetic;
1403
(iv) a hair care product;
1404
(v) lotion;
1405
(vi) a magazine;
1406
(vii) makeup;
1407
(viii) a meal;
1408
(ix) mouthwash;
1409
(x) nail polish remover;
1410
(xi) a newspaper;
1411
(xii) a notepad;
1412
(xiii) a pen;
1413
(xiv) a pencil;
1414
(xv) a razor;
1415
(xvi) saline solution;
1416
(xvii) a sewing kit;
1417
(xviii) shaving cream;
1418
(xix) a shoe shine kit;
1419
(xx) a shower cap;
1420
(xxi) a snack item;
1421
(xxii) soap;
1422
(xxiii) toilet paper;
1423
(xxiv) a toothbrush;
1424
(xxv) toothpaste; or
- 42 - 02-20 10:39 S.B. 311
1425
(xxvi) an item similar to Subsections [(130)(b)(i)] (131)(b)(i) through (xxv) as the
1426
commission may provide by rule made in accordance with Title 63G, Chapter 3,
1427
Utah Administrative Rulemaking Act.
1428
(c) "Short-term lodging consumable" does not include:
1429
(i) tangible personal property that is cleaned or washed to allow the tangible personal
1430
property to be reused; or
1431
(ii) a product transferred electronically.
1432
[(131)] (132)(a) "Short-term rental" means a lease or rental for less than 30 consecutive
1433
days.
1434
(b) "Short-term rental" does not include car sharing.
1435
[(132)] (133) "Simplified electronic return" means the electronic return:
1436
(a) described in Section 318(C) of the agreement; and
1437
(b) approved by the governing board of the agreement.
1438
[(133)] (134) "Solar energy" means the sun used as the sole source of energy for producing
1439
electricity.
1440
[(134)] (135)(a) "Sports or recreational equipment" means an item:
1441
(i) designed for human use; and
1442
(ii) that is:
1443
(A) worn in conjunction with:
1444
(I) an athletic activity; or
1445
(II) a recreational activity; and
1446
(B) not suitable for general use.
1447
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1448
commission shall make rules:
1449
(i) listing the items that constitute "sports or recreational equipment"; and
1450
(ii) that are consistent with the list of items that constitute "sports or recreational
1451
equipment" under the agreement.
1452
[(135)] (136) "State" means the state of Utah, its departments, and agencies.
1453
[(136)] (137) "Storage" means any keeping or retention of tangible personal property or any
1454
other taxable transaction under Subsection 59-12-103(1), in this state for any purpose
1455
except sale in the regular course of business.
1456
[(137)] (138)(a) "Tangible personal property" means personal property that:
1457
(i) may be:
1458
(A) seen;
- 43 - S.B. 311 02-20 10:39
1459
(B) weighed;
1460
(C) measured;
1461
(D) felt; or
1462
(E) touched; or
1463
(ii) is in any manner perceptible to the senses.
1464
(b) "Tangible personal property" includes:
1465
(i) electricity;
1466
(ii) water;
1467
(iii) gas;
1468
(iv) steam; or
1469
(v) prewritten computer software, regardless of the manner in which the prewritten
1470
computer software is transferred.
1471
(c) "Tangible personal property" includes the following regardless of whether the item is
1472
attached to real property:
1473
(i) a dishwasher;
1474
(ii) a dryer;
1475
(iii) a freezer;
1476
(iv) a microwave;
1477
(v) a refrigerator;
1478
(vi) a stove;
1479
(vii) a washer; or
1480
(viii) an item similar to Subsections [(137)(c)(i)] (138)(c)(i) through (vii) as
1481
determined by the commission by rule made in accordance with Title 63G,
1482
Chapter 3, Utah Administrative Rulemaking Act.
1483
(d) "Tangible personal property" does not include a product that is transferred
1484
electronically.
1485
(e) "Tangible personal property" does not include the following if attached to real
1486
property, regardless of whether the attachment to real property is only through a line
1487
that supplies water, electricity, gas, telephone, cable, or supplies a similar item as
1488
determined by the commission by rule made in accordance with Title 63G, Chapter 3,
1489
Utah Administrative Rulemaking Act:
1490
(i) a hot water heater;
1491
(ii) a water filtration system; or
1492
(iii) a water softener system.
- 44 - 02-20 10:39 S.B. 311
1493
[(138)] (139)(a) "Telecommunications enabling or facilitating equipment, machinery, or
1494
software" means an item listed in Subsection [(138)(b)] (139)(b) if that item is
1495
purchased or leased primarily to enable or facilitate one or more of the following to
1496
function:
1497
(i) telecommunications switching or routing equipment, machinery, or software; or
1498
(ii) telecommunications transmission equipment, machinery, or software.
1499
(b) The following apply to Subsection [(138)(a)] (139)(a):
1500
(i) a pole;
1501
(ii) software;
1502
(iii) a supplementary power supply;
1503
(iv) temperature or environmental equipment or machinery;
1504
(v) test equipment;
1505
(vi) a tower; or
1506
(vii) equipment, machinery, or software that functions similarly to an item listed in
1507
Subsections [(138)(b)(i)] (139)(b)(i) through (vi) as determined by the commission
1508
by rule made in accordance with Subsection [(138)(c)] (139)(c).
1509
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1510
commission may by rule define what constitutes equipment, machinery, or software
1511
that functions similarly to an item listed in Subsections [(138)(b)(i)] (139)(b)(i)
1512
through (vi).
1513
[(139)] (140) "Telecommunications equipment, machinery, or software required for 911
1514
service" means equipment, machinery, or software that is required to comply with 47
1515
C.F.R. Sec. 20.18.
1516
[(140)] (141) "Telecommunications maintenance or repair equipment, machinery, or
1517
software" means equipment, machinery, or software purchased or leased primarily to
1518
maintain or repair one or more of the following, regardless of whether the equipment,
1519
machinery, or software is purchased or leased as a spare part or as an upgrade or
1520
modification to one or more of the following:
1521
(a) telecommunications enabling or facilitating equipment, machinery, or software;
1522
(b) telecommunications switching or routing equipment, machinery, or software; or
1523
(c) telecommunications transmission equipment, machinery, or software.
1524
[(141)] (142)(a) "Telecommunications service" means the electronic conveyance,
1525
routing, or transmission of audio, data, video, voice, or any other information or
1526
signal to a point, or among or between points.
- 45 - S.B. 311 02-20 10:39
1527
(b) "Telecommunications service" includes:
1528
(i) an electronic conveyance, routing, or transmission with respect to which a
1529
computer processing application is used to act:
1530
(A) on the code, form, or protocol of the content;
1531
(B) for the purpose of electronic conveyance, routing, or transmission; and
1532
(C) regardless of whether the service:
1533
(I) is referred to as voice over Internet protocol service; or
1534
(II) is classified by the Federal Communications Commission as enhanced or
1535
value added;
1536
(ii) an 800 service;
1537
(iii) a 900 service;
1538
(iv) a fixed wireless service;
1539
(v) a mobile wireless service;
1540
(vi) a postpaid calling service;
1541
(vii) a prepaid calling service;
1542
(viii) a prepaid wireless calling service; or
1543
(ix) a private communications service.
1544
(c) "Telecommunications service" does not include:
1545
(i) advertising, including directory advertising;
1546
(ii) an ancillary service;
1547
(iii) a billing and collection service provided to a third party;
1548
(iv) a data processing and information service if:
1549
(A) the data processing and information service allows data to be:
1550
(I)(Aa) acquired;
1551
(Bb) generated;
1552
(Cc) processed;
1553
(Dd) retrieved; or
1554
(Ee) stored; and
1555
(II) delivered by an electronic transmission to a purchaser; and
1556
(B) the purchaser's primary purpose for the underlying transaction is the processed
1557
data or information;
1558
(v) installation or maintenance of the following on a customer's premises:
1559
(A) equipment; or
1560
(B) wiring;
- 46 - 02-20 10:39 S.B. 311
1561
(vi) Internet access service;
1562
(vii) a paging service;
1563
(viii) a product transferred electronically, including:
1564
(A) music;
1565
(B) reading material;
1566
(C) a ring tone;
1567
(D) software; or
1568
(E) video;
1569
(ix) a radio and television audio and video programming service:
1570
(A) regardless of the medium; and
1571
(B) including:
1572
(I) furnishing conveyance, routing, or transmission of a television audio and
1573
video programming service by a programming service provider;
1574
(II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1575
(III) audio and video programming services delivered by a commercial mobile
1576
radio service provider as defined in 47 C.F.R. Sec. 20.3;
1577
(x) a value-added nonvoice data service; or
1578
(xi) tangible personal property.
1579
[(142)] (143)(a) "Telecommunications service provider" means a person that:
1580
(i) owns, controls, operates, or manages a telecommunications service; and
1581
(ii) engages in an activity described in Subsection [(142)(a)(i)] (143)(a)(i) for the
1582
shared use with or resale to any person of the telecommunications service.
1583
(b) A person described in Subsection [(142)(a)] (143)(a) is a telecommunications service
1584
provider whether or not the Public Service Commission of Utah regulates:
1585
(i) that person; or
1586
(ii) the telecommunications service that the person owns, controls, operates, or
1587
manages.
1588
[(143)] (144)(a) "Telecommunications switching or routing equipment, machinery, or
1589
software" means an item listed in Subsection [(143)(b)] (144)(b) if that item is
1590
purchased or leased primarily for switching or routing:
1591
(i) an ancillary service;
1592
(ii) data communications;
1593
(iii) voice communications; or
1594
(iv) telecommunications service.
- 47 - S.B. 311 02-20 10:39
1595
(b) The following apply to Subsection [(143)(a)] (144)(a):
1596
(i) a bridge;
1597
(ii) a computer;
1598
(iii) a cross connect;
1599
(iv) a modem;
1600
(v) a multiplexer;
1601
(vi) plug in circuitry;
1602
(vii) a router;
1603
(viii) software;
1604
(ix) a switch; or
1605
(x) equipment, machinery, or software that functions similarly to an item listed in
1606
Subsections [(143)(b)(i)] (144)(b)(i) through (ix) as determined by the commission
1607
by rule made in accordance with Subsection [(143)(c)] (144)(c).
1608
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1609
commission may by rule define what constitutes equipment, machinery, or software
1610
that functions similarly to an item listed in Subsections [(143)(b)(i)] (144)(b)(i)
1611
through (ix).
1612
[(144)] (145)(a) "Telecommunications transmission equipment, machinery, or software"
1613
means an item listed in Subsection [(144)(b)] (145)(b) if that item is purchased or
1614
leased primarily for sending, receiving, or transporting:
1615
(i) an ancillary service;
1616
(ii) data communications;
1617
(iii) voice communications; or
1618
(iv) telecommunications service.
1619
(b) The following apply to Subsection [(144)(a)] (145)(a):
1620
(i) an amplifier;
1621
(ii) a cable;
1622
(iii) a closure;
1623
(iv) a conduit;
1624
(v) a controller;
1625
(vi) a duplexer;
1626
(vii) a filter;
1627
(viii) an input device;
1628
(ix) an input/output device;
- 48 - 02-20 10:39 S.B. 311
1629
(x) an insulator;
1630
(xi) microwave machinery or equipment;
1631
(xii) an oscillator;
1632
(xiii) an output device;
1633
(xiv) a pedestal;
1634
(xv) a power converter;
1635
(xvi) a power supply;
1636
(xvii) a radio channel;
1637
(xviii) a radio receiver;
1638
(xix) a radio transmitter;
1639
(xx) a repeater;
1640
(xxi) software;
1641
(xxii) a terminal;
1642
(xxiii) a timing unit;
1643
(xxiv) a transformer;
1644
(xxv) a wire; or
1645
(xxvi) equipment, machinery, or software that functions similarly to an item listed in
1646
Subsections [(144)(b)(i)] (145)(b)(i) through (xxv) as determined by the
1647
commission by rule made in accordance with Subsection [(144)(c)] (145)(c).
1648
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1649
commission may by rule define what constitutes equipment, machinery, or software
1650
that functions similarly to an item listed in Subsections [(144)(b)(i)] (145)(b)(i)
1651
through (xxv).
1652
[(145)] (146)(a) "Textbook for a higher education course" means a textbook or other
1653
printed material that is required for a course:
1654
(i) offered by an institution of higher education; and
1655
(ii) that the purchaser of the textbook or other printed material attends or will attend.
1656
(b) "Textbook for a higher education course" includes a textbook in electronic format.
1657
[(146)] (147) "Tobacco" means:
1658
(a) a cigarette;
1659
(b) a cigar;
1660
(c) chewing tobacco;
1661
(d) pipe tobacco; or
1662
(e) any other item that contains tobacco.
- 49 - S.B. 311 02-20 10:39
1663
[(147)] (148) "Unassisted amusement device" means an amusement device, skill device, or
1664
ride device that is started and stopped by the purchaser or renter of the right to use or
1665
operate the amusement device, skill device, or ride device.
1666
[(148)] (149)(a) "Use" means the exercise of any right or power over tangible personal
1667
property, a product transferred electronically, or a service under Subsection 59-12-103
1668
(1), incident to the ownership or the leasing of that tangible personal property,
1669
product transferred electronically, or service.
1670
(b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1671
property, a product transferred electronically, or a service in the regular course of
1672
business and held for resale.
1673
[(149)] (150) "Value-added nonvoice data service" means a service:
1674
(a) that otherwise meets the definition of a telecommunications service except that a
1675
computer processing application is used to act primarily for a purpose other than
1676
conveyance, routing, or transmission; and
1677
(b) with respect to which a computer processing application is used to act on data or
1678
information:
1679
(i) code;
1680
(ii) content;
1681
(iii) form; or
1682
(iv) protocol.
1683
[(150)] (151)(a) Subject to Subsection [(150)(b)] (151)(b), "vehicle" means the following
1684
that are required to be titled, registered, or titled and registered:
1685
(i) an aircraft as defined in Section 72-10-102;
1686
(ii) a vehicle as defined in Section 41-1a-102;
1687
(iii) an off-highway vehicle as defined in Section 41-22-2; or
1688
(iv) a vessel as defined in Section 41-1a-102.
1689
(b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
1690
(i) a vehicle described in Subsection [(150)(a)] (151)(a); or
1691
(ii)(A) a locomotive;
1692
(B) a freight car;
1693
(C) railroad work equipment; or
1694
(D) other railroad rolling stock.
1695
[(151)] (152) "Vehicle dealer" means a person engaged in the business of buying, selling, or
1696
exchanging a vehicle as defined in Subsection [(150)] (151).
- 50 - 02-20 10:39 S.B. 311
1697
[(152)] (153)(a) "Vertical service" means an ancillary service that:
1698
(i) is offered in connection with one or more telecommunications services; and
1699
(ii) offers an advanced calling feature that allows a customer to:
1700
(A) identify a caller; and
1701
(B) manage multiple calls and call connections.
1702
(b) "Vertical service" includes an ancillary service that allows a customer to manage a
1703
conference bridging service.
1704
[(153)] (154)(a) "Voice mail service" means an ancillary service that enables a customer
1705
to receive, send, or store a recorded message.
1706
(b) "Voice mail service" does not include a vertical service that a customer is required to
1707
have in order to utilize a voice mail service.
1708
[(154)] (155)(a) "Waste energy facility" means a facility that generates electricity:
1709
(i) using as the primary source of energy waste materials that would be placed in a
1710
landfill or refuse pit if it were not used to generate electricity, including:
1711
(A) tires;
1712
(B) waste coal;
1713
(C) oil shale; or
1714
(D) municipal solid waste; and
1715
(ii) in amounts greater than actually required for the operation of the facility.
1716
(b) "Waste energy facility" does not include a facility that incinerates:
1717
(i) hospital waste as defined in 40 C.F.R. 60.51c; or
1718
(ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1719
[(155)] (156) "Watercraft" means a vessel as defined in Section 73-18-2.
1720
[(156)] (157) "Wind energy" means wind used as the sole source of energy to produce
1721
electricity.
1722
[(157)] (158) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
1723
location by the United States Postal Service.
1724
Section 2. Section 59-12-104 is amended to read:
1725
59-12-104 . Exemptions.
1726
Exemptions from the taxes imposed by this chapter are as follows:
1727
(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
1728
under Chapter 13, Motor and Special Fuel Tax Act;
1729
(2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
1730
subdivisions; however, this exemption does not apply to sales of:
- 51 - S.B. 311 02-20 10:39
1731
(a) construction materials except:
1732
(i) construction materials purchased by or on behalf of institutions of the public
1733
education system as defined in Utah Constitution, Article X, Section 2, provided
1734
the construction materials are clearly identified and segregated and installed or
1735
converted to real property which is owned by institutions of the public education
1736
system; and
1737
(ii) construction materials purchased by the state, its institutions, or its political
1738
subdivisions which are installed or converted to real property by employees of the
1739
state, its institutions, or its political subdivisions; or
1740
(b) tangible personal property in connection with the construction, operation,
1741
maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or
1742
facilities providing additional project capacity, as defined in Section 11-13-103;
1743
(3)(a) sales of an item described in Subsection (3)(b) from a vending machine if:
1744
(i) the proceeds of each sale do not exceed $1; and
1745
(ii) the seller or operator of the vending machine reports an amount equal to 150% of
1746
the cost of the item described in Subsection (3)(b) as goods consumed; and
1747
(b) Subsection (3)(a) applies to:
1748
(i) food and food ingredients; or
1749
(ii) prepared food;
1750
(4)(a) sales of the following to a commercial airline carrier for in-flight consumption:
1751
(i) alcoholic beverages;
1752
(ii) food and food ingredients; or
1753
(iii) prepared food;
1754
(b) sales of tangible personal property or a product transferred electronically:
1755
(i) to a passenger;
1756
(ii) by a commercial airline carrier; and
1757
(iii) during a flight for in-flight consumption or in-flight use by the passenger; or
1758
(c) services related to Subsection (4)(a) or (b);
1759
(5) sales of parts and equipment for installation in an aircraft operated by a common carrier
1760
in interstate or foreign commerce;
1761
(6) sales of commercials, motion picture films, prerecorded audio program tapes or records,
1762
and prerecorded video tapes by a producer, distributor, or studio to a motion picture
1763
exhibitor, distributor, or commercial television or radio broadcaster;
1764
(7)(a) except as provided in Subsection (85) and subject to Subsection (7)(b), sales of
- 52 - 02-20 10:39 S.B. 311
1765
cleaning or washing of tangible personal property if the cleaning or washing of the
1766
tangible personal property is not assisted cleaning or washing of tangible personal
1767
property;
1768
(b) if a seller that sells at the same business location assisted cleaning or washing of
1769
tangible personal property and cleaning or washing of tangible personal property that
1770
is not assisted cleaning or washing of tangible personal property, the exemption
1771
described in Subsection (7)(a) applies if the seller separately accounts for the sales of
1772
the assisted cleaning or washing of the tangible personal property; and
1773
(c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3, Utah
1774
Administrative Rulemaking Act, the commission may make rules:
1775
(i) governing the circumstances under which sales are at the same business location;
1776
and
1777
(ii) establishing the procedures and requirements for a seller to separately account for
1778
sales of assisted cleaning or washing of tangible personal property;
1779
(8) sales made to or by religious or charitable institutions in the conduct of their regular
1780
religious or charitable functions and activities, if the requirements of Section 59-12-104.1
1781
are fulfilled;
1782
(9) sales of a vehicle of a type required to be registered under the motor vehicle laws of this
1783
state if:
1784
(a) the sale is not from the vehicle's lessor to the vehicle's lessee;
1785
(b) the vehicle is not registered in this state; and
1786
(c)(i) the vehicle is not used in this state; or
1787
(ii) the vehicle is used in this state:
1788
(A) if the vehicle is not used to conduct business, for a time period that does not
1789
exceed the longer of:
1790
(I) 30 days in any calendar year; or
1791
(II) the time period necessary to transport the vehicle to the borders of this
1792
state; or
1793
(B) if the vehicle is used to conduct business, for the time period necessary to
1794
transport the vehicle to the borders of this state;
1795
(10)(a) amounts paid for an item described in Subsection (10)(b) if:
1796
(i) the item is intended for human use; and
1797
(ii)(A) a prescription was issued for the item; or
1798
(B) the item was purchased by a hospital or other medical facility; and
- 53 - S.B. 311 02-20 10:39
1799
(b)(i) Subsection (10)(a) applies to:
1800
(A) a drug;
1801
(B) a syringe; or
1802
(C) a stoma supply; and
1803
(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1804
the commission may by rule define the terms:
1805
(A) "syringe"; or
1806
(B) "stoma supply";
1807
(11) purchases or leases exempt under Section 19-12-201;
1808
(12)(a) sales of an item described in Subsection (12)(c) served by:
1809
(i) the following if the item described in Subsection (12)(c) is not available to the
1810
general public:
1811
(A) a church; or
1812
(B) a charitable institution; or
1813
(ii) an institution of higher education if:
1814
(A) the item described in Subsection (12)(c) is not available to the general public;
1815
or
1816
(B) the item described in Subsection (12)(c) is prepaid as part of a student meal
1817
plan offered by the institution of higher education; [or]
1818
(b) sales of an item described in Subsection (12)(c) provided for a patient by:
1819
(i) a medical facility; or
1820
(ii) a nursing facility; and
1821
(c) Subsections (12)(a) and (b) apply to:
1822
(i) food and food ingredients;
1823
(ii) prepared food; or
1824
(iii) alcoholic beverages;
1825
(13)(a) except as provided in Subsection (13)(b), the sale of tangible personal property
1826
or a product transferred electronically by a person:
1827
(i) regardless of the number of transactions involving the sale of that tangible
1828
personal property or product transferred electronically by that person; and
1829
(ii) not regularly engaged in the business of selling that type of tangible personal
1830
property or product transferred electronically;
1831
(b) this Subsection (13) does not apply if:
1832
(i) the sale is one of a series of sales of a character to indicate that the person is
- 54 - 02-20 10:39 S.B. 311
1833
regularly engaged in the business of selling that type of tangible personal property
1834
or product transferred electronically;
1835
(ii) the person holds that person out as regularly engaged in the business of selling
1836
that type of tangible personal property or product transferred electronically;
1837
(iii) the person sells an item of tangible personal property or product transferred
1838
electronically that the person purchased as a sale that is exempt under Subsection
1839
(25); or
1840
(iv) the sale is of a vehicle or vessel required to be titled or registered under the laws
1841
of this state in which case the tax is based upon:
1842
(A) the bill of sale, lease agreement, or other written evidence of value of the
1843
vehicle or vessel being sold; or
1844
(B) in the absence of a bill of sale, lease agreement, or other written evidence of
1845
value, the fair market value of the vehicle or vessel being sold at the time of the
1846
sale as determined by the commission; and
1847
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1848
commission shall make rules establishing the circumstances under which:
1849
(i) a person is regularly engaged in the business of selling a type of tangible personal
1850
property or product transferred electronically;
1851
(ii) a sale of tangible personal property or a product transferred electronically is one
1852
of a series of sales of a character to indicate that a person is regularly engaged in
1853
the business of selling that type of tangible personal property or product
1854
transferred electronically; or
1855
(iii) a person holds that person out as regularly engaged in the business of selling a
1856
type of tangible personal property or product transferred electronically;
1857
(14) amounts paid or charged for a purchase or lease of machinery, equipment, normal
1858
operating repair or replacement parts, or materials, except for office equipment or office
1859
supplies, by:
1860
(a) a manufacturing facility that:
1861
(i) is located in the state; and
1862
(ii) uses or consumes the machinery, equipment, normal operating repair or
1863
replacement parts, or materials:
1864
(A) in the manufacturing process to manufacture an item sold as tangible personal
1865
property, as the commission may define that phrase in accordance with Title
1866
63G, Chapter 3, Utah Administrative Rulemaking Act; or
- 55 - S.B. 311 02-20 10:39
1867
(B) for a scrap recycler, to process an item sold as tangible personal property, as
1868
the commission may define that phrase in accordance with Title 63G, Chapter
1869
3, Utah Administrative Rulemaking Act;
1870
(b) an establishment, as the commission defines that term in accordance with Title 63G,
1871
Chapter 3, Utah Administrative Rulemaking Act, that:
1872
(i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
1873
Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
1874
Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except
1875
Fuels) Mining, of the 2002 North American Industry Classification System of the
1876
federal Executive Office of the President, Office of Management and Budget;
1877
(ii) is located in the state; and
1878
(iii) uses or consumes the machinery, equipment, normal operating repair or
1879
replacement parts, or materials in:
1880
(A) the production process to produce an item sold as tangible personal property,
1881
as the commission may define that phrase in accordance with Title 63G,
1882
Chapter 3, Utah Administrative Rulemaking Act;
1883
(B) research and development, as the commission may define that phrase in
1884
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1885
(C) transporting, storing, or managing tailings, overburden, or similar waste
1886
materials produced from mining;
1887
(D) developing or maintaining a road, tunnel, excavation, or similar feature used
1888
in mining; or
1889
(E) preventing, controlling, or reducing dust or other pollutants from mining; or
1890
(c) an establishment, as the commission defines that term in accordance with Title 63G,
1891
Chapter 3, Utah Administrative Rulemaking Act, that:
1892
(i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North
1893
American Industry Classification System of the federal Executive Office of the
1894
President, Office of Management and Budget;
1895
(ii) is located in the state; and
1896
(iii) uses or consumes the machinery, equipment, normal operating repair or
1897
replacement parts, or materials in the operation of the web search portal;
1898
(15)(a) sales of the following if the requirements of Subsection (15)(b) are met:
1899
(i) tooling;
1900
(ii) special tooling;
- 56 - 02-20 10:39 S.B. 311
1901
(iii) support equipment;
1902
(iv) special test equipment; or
1903
(v) parts used in the repairs or renovations of tooling or equipment described in
1904
Subsections (15)(a)(i) through (iv); and
1905
(b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
1906
(i) the tooling, equipment, or parts are used or consumed exclusively in the
1907
performance of any aerospace or electronics industry contract with the United
1908
States government or any subcontract under that contract; and
1909
(ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
1910
title to the tooling, equipment, or parts is vested in the United States government
1911
as evidenced by:
1912
(A) a government identification tag placed on the tooling, equipment, or parts; or
1913
(B) listing on a government-approved property record if placing a government
1914
identification tag on the tooling, equipment, or parts is impractical;
1915
(16) sales of newspapers or newspaper subscriptions;
1916
(17)(a) except as provided in Subsection (17)(b), tangible personal property or a product
1917
transferred electronically traded in as full or part payment of the purchase price,
1918
except that for purposes of calculating sales or use tax upon vehicles not sold by a
1919
vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
1920
(i) the bill of sale or other written evidence of value of the vehicle being sold and the
1921
vehicle being traded in; or
1922
(ii) in the absence of a bill of sale or other written evidence of value, the then existing
1923
fair market value of the vehicle being sold and the vehicle being traded in, as
1924
determined by the commission; and
1925
(b) Subsection (17)(a) does not apply to the following items of tangible personal
1926
property or products transferred electronically traded in as full or part payment of the
1927
purchase price:
1928
(i) money;
1929
(ii) electricity;
1930
(iii) water;
1931
(iv) gas; or
1932
(v) steam;
1933
(18)(a)(i) except as provided in Subsection (18)(b), sales of tangible personal
1934
property or a product transferred electronically used or consumed primarily and
- 57 - S.B. 311 02-20 10:39
1935
directly in farming operations, regardless of whether the tangible personal
1936
property or product transferred electronically:
1937
(A) becomes part of real estate; or
1938
(B) is installed by a farmer, contractor, or subcontractor; or
1939
(ii) sales of parts used in the repairs or renovations of tangible personal property or a
1940
product transferred electronically if the tangible personal property or product
1941
transferred electronically is exempt under Subsection (18)(a)(i); and
1942
(b) amounts paid or charged for the following are subject to the taxes imposed by this
1943
chapter:
1944
(i)(A) subject to Subsection (18)(b)(i)(B), machinery, equipment, materials, or
1945
supplies if used in a manner that is incidental to farming; and
1946
(B) tangible personal property that is considered to be used in a manner that is
1947
incidental to farming includes:
1948
(I) hand tools; or
1949
(II) maintenance and janitorial equipment and supplies;
1950
(ii)(A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
1951
transferred electronically if the tangible personal property or product
1952
transferred electronically is used in an activity other than farming; and
1953
(B) tangible personal property or a product transferred electronically that is
1954
considered to be used in an activity other than farming includes:
1955
(I) office equipment and supplies; or
1956
(II) equipment and supplies used in:
1957
(Aa) the sale or distribution of farm products;
1958
(Bb) research; or
1959
(Cc) transportation; or
1960
(iii) a vehicle required to be registered by the laws of this state during the period
1961
ending two years after the date of the vehicle's purchase;
1962
(19) sales of hay;
1963
(20) exclusive sale during the harvest season of seasonal crops, seedling plants, or garden,
1964
farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
1965
garden, farm, or other agricultural produce is sold by:
1966
(a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
1967
agricultural produce;
1968
(b) an employee of the producer described in Subsection (20)(a); or
- 58 - 02-20 10:39 S.B. 311
1969
(c) a member of the immediate family of the producer described in Subsection (20)(a);
1970
(21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued under
1971
the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
1972
(22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
1973
nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
1974
wholesaler, or retailer for use in packaging tangible personal property to be sold by that
1975
manufacturer, processor, wholesaler, or retailer;
1976
(23) a product stored in the state for resale;
1977
(24)(a) purchases of a product if:
1978
(i) the product is:
1979
(A) purchased outside of this state;
1980
(B) brought into this state:
1981
(I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
1982
(II) by a nonresident person who is not living or working in this state at the
1983
time of the purchase;
1984
(C) used for the personal use or enjoyment of the nonresident person described in
1985
Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state;
1986
and
1987
(D) not used in conducting business in this state; and
1988
(ii) for:
1989
(A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use
1990
of the product for a purpose for which the product is designed occurs outside of
1991
this state;
1992
(B) a boat, the boat is registered outside of this state; or
1993
(C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
1994
registered outside of this state;
1995
(b) the exemption provided for in Subsection (24)(a) does not apply to:
1996
(i) a lease or rental of a product; or
1997
(ii) a sale of a vehicle exempt under Subsection (33); and
1998
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
1999
purposes of Subsection (24)(a), the commission may by rule define what constitutes
2000
the following:
2001
(i) conducting business in this state if that phrase has the same meaning in this
2002
Subsection (24) as in Subsection (63);
- 59 - S.B. 311 02-20 10:39
2003
(ii) the first use of a product if that phrase has the same meaning in this Subsection
2004
(24) as in Subsection (63); or
2005
(iii) a purpose for which a product is designed if that phrase has the same meaning in
2006
this Subsection (24) as in Subsection (63);
2007
(25) a product purchased for resale in the regular course of business, either in its original
2008
form or as an ingredient or component part of a manufactured or compounded product;
2009
(26) a product upon which a sales or use tax was paid to some other state, or one of its
2010
subdivisions, except that the state shall be paid any difference between the tax paid and
2011
the tax imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment
2012
is allowed if the tax paid was greater than the tax imposed by this part and Part 2, Local
2013
Sales and Use Tax Act;
2014
(27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a person
2015
for use in compounding a service taxable under the subsections;
2016
(28) purchases made in accordance with the special supplemental nutrition program for
2017
women, infants, and children established in 42 U.S.C. Sec. 1786;
2018
(29) sales or leases of rolls, rollers, refractory brick, electric motors, or other replacement
2019
parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code 3312 of
2020
the 1987 Standard Industrial Classification Manual of the federal Executive Office of the
2021
President, Office of Management and Budget;
2022
(30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
2023
Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard
2024
motor is:
2025
(a) not registered in this state; and
2026
(b)(i) not used in this state; or
2027
(ii) used in this state:
2028
(A) if the boat, boat trailer, or outboard motor is not used to conduct business, for
2029
a time period that does not exceed the longer of:
2030
(I) 30 days in any calendar year; or
2031
(II) the time period necessary to transport the boat, boat trailer, or outboard
2032
motor to the borders of this state; or
2033
(B) if the boat, boat trailer, or outboard motor is used to conduct business, for the
2034
time period necessary to transport the boat, boat trailer, or outboard motor to
2035
the borders of this state;
2036
(31) sales of aircraft manufactured in Utah;
- 60 - 02-20 10:39 S.B. 311
2037
(32) amounts paid for the purchase of telecommunications service for purposes of
2038
providing telecommunications service;
2039
(33) sales, leases, or uses of the following:
2040
(a) a vehicle by an authorized carrier; or
2041
(b) tangible personal property that is installed on a vehicle:
2042
(i) sold or leased to or used by an authorized carrier; and
2043
(ii) before the vehicle is placed in service for the first time;
2044
(34)(a) 45% of the sales price of any new manufactured home; and
2045
(b) 100% of the sales price of any used manufactured home;
2046
(35) sales relating to schools and fundraising sales;
2047
(36) sales or rentals of durable medical equipment if:
2048
(a) a person presents a prescription for the durable medical equipment; and
2049
(b) the durable medical equipment is used for home use only;
2050
(37)(a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
2051
Section 72-11-102; and
2052
(b) the commission shall by rule determine the method for calculating sales exempt
2053
under Subsection (37)(a) that are not separately metered and accounted for in utility
2054
billings;
2055
(38) sales to a ski resort of:
2056
(a) snowmaking equipment;
2057
(b) ski slope grooming equipment;
2058
(c) passenger ropeways as defined in Section 72-11-102; or
2059
(d) parts used in the repairs or renovations of equipment or passenger ropeways
2060
described in Subsections (38)(a) through (c);
2061
(39) subject to Subsection 59-12-103(2)(j), sales of natural gas, electricity, heat, coal, fuel
2062
oil, or other fuels for industrial use;
2063
(40)(a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
2064
amusement, entertainment, or recreation an unassisted amusement device as defined
2065
in Section 59-12-102;
2066
(b) if a seller that sells or rents at the same business location the right to use or operate
2067
for amusement, entertainment, or recreation one or more unassisted amusement
2068
devices and one or more assisted amusement devices, the exemption described in
2069
Subsection (40)(a) applies if the seller separately accounts for the sales or rentals of
2070
the right to use or operate for amusement, entertainment, or recreation for the assisted
- 61 - S.B. 311 02-20 10:39
2071
amusement devices; and
2072
(c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3, Utah
2073
Administrative Rulemaking Act, the commission may make rules:
2074
(i) governing the circumstances under which sales are at the same business location;
2075
and
2076
(ii) establishing the procedures and requirements for a seller to separately account for
2077
the sales or rentals of the right to use or operate for amusement, entertainment, or
2078
recreation for assisted amusement devices;
2079
(41)(a) sales of photocopies by:
2080
(i) a governmental entity; or
2081
(ii) an entity within the state system of public education, including:
2082
(A) a school; or
2083
(B) the State Board of Education; or
2084
(b) sales of publications by a governmental entity;
2085
(42) amounts paid for admission to an athletic event at an institution of higher education
2086
that is subject to the provisions of Title IX of the Education Amendments of 1972, 20
2087
U.S.C. Sec. 1681 et seq.;
2088
(43)(a) sales made to or by:
2089
(i) an area agency on aging; or
2090
(ii) a senior citizen center owned by a county, city, or town; or
2091
(b) sales made by a senior citizen center that contracts with an area agency on aging;
2092
(44) sales or leases of semiconductor fabricating, processing, research, or development
2093
materials regardless of whether the semiconductor fabricating, processing, research, or
2094
development materials:
2095
(a) actually come into contact with a semiconductor; or
2096
(b) ultimately become incorporated into real property;
2097
(45) an amount paid by or charged to a purchaser for accommodations and services
2098
described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under
2099
Section 59-12-104.2;
2100
(46) the lease or use of a vehicle issued a temporary sports event registration certificate in
2101
accordance with Section 41-3-306 for the event period specified on the temporary sports
2102
event registration certificate;
2103
(47)(a) sales or uses of electricity, if the sales or uses are made under a retail tariff
2104
adopted by the Public Service Commission only for purchase of electricity produced
- 62 - 02-20 10:39 S.B. 311
2105
from a new alternative energy source built after January 1, 2016, as designated in the
2106
tariff by the Public Service Commission; and
2107
(b) for a residential use customer only, the exemption under Subsection (47)(a) applies
2108
only to the portion of the tariff rate a customer pays under the tariff described in
2109
Subsection (47)(a) that exceeds the tariff rate under the tariff described in Subsection
2110
(47)(a) that the customer would have paid absent the tariff;
2111
(48) sales or rentals of mobility enhancing equipment if a person presents a prescription for
2112
the mobility enhancing equipment;
2113
(49) sales of water in a:
2114
(a) pipe;
2115
(b) conduit;
2116
(c) ditch; or
2117
(d) reservoir;
2118
(50) sales of currency or coins that constitute legal tender of a state, the United States, or a
2119
foreign nation;
2120
(51)(a) sales of an item described in Subsection (51)(b) if the item:
2121
(i) does not constitute legal tender of a state, the United States, or a foreign nation;
2122
and
2123
(ii) has a gold, silver, or platinum content of 50% or more; and
2124
(b) Subsection (51)(a) applies to a gold, silver, or platinum:
2125
(i) ingot;
2126
(ii) bar;
2127
(iii) medallion; or
2128
(iv) decorative coin;
2129
(52) amounts paid on a sale-leaseback transaction;
2130
(53) sales of a prosthetic device:
2131
(a) for use on or in a human; and
2132
(b)(i) for which a prescription is required; or
2133
(ii) if the prosthetic device is purchased by a hospital or other medical facility;
2134
(54)(a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
2135
machinery or equipment by an establishment described in Subsection (54)(c) if the
2136
machinery or equipment is primarily used in the production or postproduction of the
2137
following media for commercial distribution:
2138
(i) a motion picture;
- 63 - S.B. 311 02-20 10:39
2139
(ii) a television program;
2140
(iii) a movie made for television;
2141
(iv) a music video;
2142
(v) a commercial;
2143
(vi) a documentary; or
2144
(vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
2145
commission by administrative rule made in accordance with Subsection (54)(d); [
2146
or]
2147
(b) purchases, leases, or rentals of machinery or equipment by an establishment
2148
described in Subsection (54)(c) that is used for the production or postproduction of
2149
the following are subject to the taxes imposed by this chapter:
2150
(i) a live musical performance;
2151
(ii) a live news program; or
2152
(iii) a live sporting event;
2153
(c) the following establishments listed in the 1997 North American Industry
2154
Classification System of the federal Executive Office of the President, Office of
2155
Management and Budget, apply to Subsections (54)(a) and (b):
2156
(i) NAICS Code 512110; or
2157
(ii) NAICS Code 51219; and
2158
(d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2159
commission may by rule:
2160
(i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
2161
or
2162
(ii) define:
2163
(A) "commercial distribution";
2164
(B) "live musical performance";
2165
(C) "live news program"; or
2166
(D) "live sporting event";
2167
(55)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
2168
or before June 30, [2027] 2037, of tangible personal property that:
2169
(i) is leased or purchased for or by a facility that:
2170
(A) is an alternative energy electricity production facility or an electricity storage
2171
facility;
2172
(B) is located in the state; and
- 64 - 02-20 10:39 S.B. 311
2173
(C)(I) becomes operational on or after July 1, 2004; or
2174
(II) has [its] the facility's generation or storage capacity increased by one or
2175
more megawatts on or after July 1, 2004, as a result of the use of the
2176
tangible personal property;
2177
(ii) has an economic life of five or more years; and
2178
(iii) is used to make the facility or the increase in capacity of the facility described in
2179
Subsection (55)(a)(i) operational up to the point of interconnection with an
2180
existing transmission grid including:
2181
(A) a wind turbine;
2182
(B) generating equipment;
2183
(C) a control and monitoring system;
2184
(D) a power line;
2185
(E) substation equipment;
2186
(F) lighting;
2187
(G) fencing;
2188
(H) pipes; [or]
2189
(I) other equipment used for locating a power line or pole; [and] or
2190
(J) electricity storage equipment; and
2191
(b) this Subsection (55) does not apply to:
2192
(i) tangible personal property used in construction of:
2193
(A) a new alternative energy electricity production facility; or
2194
(B) the increase in the capacity of an alternative energy electricity production
2195
facility or an electric storage facility;
2196
(ii) contracted services required for construction and routine maintenance activities;
2197
and
2198
(iii) unless the tangible personal property is used or acquired for an increase in
2199
capacity of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal
2200
property used or acquired after:
2201
(A) the alternative energy electricity production facility or electric storage facility
2202
described in Subsection (55)(a)(i) is operational as described in Subsection
2203
(55)(a)(iii); or
2204
(B) the increased capacity described in Subsection (55)(a)(i) is operational as
2205
described in Subsection (55)(a)(iii);
2206
(56)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
- 65 - S.B. 311 02-20 10:39
2207
or before June 30, 2027, of tangible personal property that:
2208
(i) is leased or purchased for or by a facility that:
2209
(A) is a waste energy production facility;
2210
(B) is located in the state; and
2211
(C)(I) becomes operational on or after July 1, 2004; or
2212
(II) has its generation capacity increased by one or more megawatts on or after
2213
July 1, 2004, as a result of the use of the tangible personal property;
2214
(ii) has an economic life of five or more years; and
2215
(iii) is used to make the facility or the increase in capacity of the facility described in
2216
Subsection (56)(a)(i) operational up to the point of interconnection with an
2217
existing transmission grid including:
2218
(A) generating equipment;
2219
(B) a control and monitoring system;
2220
(C) a power line;
2221
(D) substation equipment;
2222
(E) lighting;
2223
(F) fencing;
2224
(G) pipes; or
2225
(H) other equipment used for locating a power line or pole; and
2226
(b) this Subsection (56) does not apply to:
2227
(i) tangible personal property used in construction of:
2228
(A) a new waste energy facility; or
2229
(B) the increase in the capacity of a waste energy facility;
2230
(ii) contracted services required for construction and routine maintenance activities;
2231
and
2232
(iii) unless the tangible personal property is used or acquired for an increase in
2233
capacity described in Subsection (56)(a)(i)(C)(II), tangible personal property used
2234
or acquired after:
2235
(A) the waste energy facility described in Subsection (56)(a)(i) is operational as
2236
described in Subsection (56)(a)(iii); or
2237
(B) the increased capacity described in Subsection (56)(a)(i) is operational as
2238
described in Subsection (56)(a)(iii);
2239
(57)(a) leases of five or more years or purchases made on or after July 1, 2004, but on or
2240
before June 30, 2027, of tangible personal property that:
- 66 - 02-20 10:39 S.B. 311
2241
(i) is leased or purchased for or by a facility that:
2242
(A) is located in the state;
2243
(B) produces fuel from alternative energy, including:
2244
(I) methanol; or
2245
(II) ethanol; and
2246
(C)(I) becomes operational on or after July 1, 2004; or
2247
(II) has its capacity to produce fuel increase by 25% or more on or after July 1,
2248
2004, as a result of the installation of the tangible personal property;
2249
(ii) has an economic life of five or more years; and
2250
(iii) is installed on the facility described in Subsection (57)(a)(i);
2251
(b) this Subsection (57) does not apply to:
2252
(i) tangible personal property used in construction of:
2253
(A) a new facility described in Subsection (57)(a)(i); or
2254
(B) the increase in capacity of the facility described in Subsection (57)(a)(i); [or]
2255
(ii) contracted services required for construction and routine maintenance activities;
2256
and
2257
(iii) unless the tangible personal property is used or acquired for an increase in
2258
capacity described in Subsection (57)(a)(i)(C)(II), tangible personal property used
2259
or acquired after:
2260
(A) the facility described in Subsection (57)(a)(i) is operational; or
2261
(B) the increased capacity described in Subsection (57)(a)(i) is operational;
2262
(58)(a) subject to Subsection (58)(b), sales of tangible personal property or a product
2263
transferred electronically to a person within this state if that tangible personal
2264
property or product transferred electronically is subsequently shipped outside the
2265
state and incorporated pursuant to contract into and becomes a part of real property
2266
located outside of this state; and
2267
(b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
2268
state or political entity to which the tangible personal property is shipped imposes a
2269
sales, use, gross receipts, or other similar transaction excise tax on the transaction
2270
against which the other state or political entity allows a credit for sales and use taxes
2271
imposed by this chapter;
2272
(59) purchases:
2273
(a) of one or more of the following items in printed or electronic format:
2274
(i) a list containing information that includes one or more:
- 67 - S.B. 311 02-20 10:39
2275
(A) names; or
2276
(B) addresses; or
2277
(ii) a database containing information that includes one or more:
2278
(A) names; or
2279
(B) addresses; and
2280
(b) used to send direct mail;
2281
(60) redemptions or repurchases of a product by a person if that product was:
2282
(a) delivered to a pawnbroker as part of a pawn transaction; and
2283
(b) redeemed or repurchased within the time period established in a written agreement
2284
between the person and the pawnbroker for redeeming or repurchasing the product;
2285
(61)(a) purchases or leases of an item described in Subsection (61)(b) if the item:
2286
(i) is purchased or leased by, or on behalf of, a telecommunications service provider;
2287
and
2288
(ii) has a useful economic life of one or more years; and
2289
(b) the following apply to Subsection (61)(a):
2290
(i) telecommunications enabling or facilitating equipment, machinery, or software;
2291
(ii) telecommunications equipment, machinery, or software required for 911 service;
2292
(iii) telecommunications maintenance or repair equipment, machinery, or software;
2293
(iv) telecommunications switching or routing equipment, machinery, or software; or
2294
(v) telecommunications transmission equipment, machinery, or software;
2295
(62)(a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
2296
personal property or a product transferred electronically that are used in the research
2297
and development of alternative energy technology; and
2298
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2299
commission may, for purposes of Subsection (62)(a), make rules defining what
2300
constitutes purchases of tangible personal property or a product transferred
2301
electronically that are used in the research and development of alternative energy
2302
technology;
2303
(63)(a) purchases of tangible personal property or a product transferred electronically if:
2304
(i) the tangible personal property or product transferred electronically is:
2305
(A) purchased outside of this state;
2306
(B) brought into this state at any time after the purchase described in Subsection
2307
(63)(a)(i)(A); and
2308
(C) used in conducting business in this state; and
- 68 - 02-20 10:39 S.B. 311
2309
(ii) for:
2310
(A) tangible personal property or a product transferred electronically other than
2311
the tangible personal property described in Subsection (63)(a)(ii)(B), the first
2312
use of the property for a purpose for which the property is designed occurs
2313
outside of this state; or
2314
(B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
2315
registered outside of this state and not required to be registered in this state
2316
under Section 41-1a-202 or 73-18-9 based on residency;
2317
(b) the exemption provided for in Subsection (63)(a) does not apply to:
2318
(i) a lease or rental of tangible personal property or a product transferred
2319
electronically; or
2320
(ii) a sale of a vehicle exempt under Subsection (33); and
2321
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
2322
purposes of Subsection (63)(a), the commission may by rule define what constitutes
2323
the following:
2324
(i) conducting business in this state if that phrase has the same meaning in this
2325
Subsection (63) as in Subsection (24);
2326
(ii) the first use of tangible personal property or a product transferred electronically if
2327
that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
2328
(iii) a purpose for which tangible personal property or a product transferred
2329
electronically is designed if that phrase has the same meaning in this Subsection
2330
(63) as in Subsection (24);
2331
(64) sales of disposable home medical equipment or supplies if:
2332
(a) a person presents a prescription for the disposable home medical equipment or
2333
supplies;
2334
(b) the disposable home medical equipment or supplies are used exclusively by the
2335
person to whom the prescription described in Subsection (64)(a) is issued; and
2336
(c) the disposable home medical equipment and supplies are listed as eligible for
2337
payment under:
2338
(i) Title XVIII, federal Social Security Act; or
2339
(ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
2340
(65) sales:
2341
(a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit District
2342
Act; or
- 69 - S.B. 311 02-20 10:39
2343
(b) of tangible personal property to a subcontractor of a public transit district, if the
2344
tangible personal property is:
2345
(i) clearly identified; and
2346
(ii) installed or converted to real property owned by the public transit district;
2347
(66) sales of construction materials:
2348
(a) purchased on or after July 1, 2010;
2349
(b) purchased by, on behalf of, or for the benefit of an international airport:
2350
(i) located within a county of the first class; and
2351
(ii) that has a United States customs office on its premises; and
2352
(c) if the construction materials are:
2353
(i) clearly identified;
2354
(ii) segregated; and
2355
(iii) installed or converted to real property:
2356
(A) owned or operated by the international airport described in Subsection
2357
(66)(b); and
2358
(B) located at the international airport described in Subsection (66)(b);
2359
(67) sales of construction materials:
2360
(a) purchased on or after July 1, 2008;
2361
(b) purchased by, on behalf of, or for the benefit of a new airport:
2362
(i) located within a county of the second class; and
2363
(ii) that is owned or operated by a city in which an airline as defined in Section
2364
59-2-102 is headquartered; and
2365
(c) if the construction materials are:
2366
(i) clearly identified;
2367
(ii) segregated; and
2368
(iii) installed or converted to real property:
2369
(A) owned or operated by the new airport described in Subsection (67)(b);
2370
(B) located at the new airport described in Subsection (67)(b); and
2371
(C) as part of the construction of the new airport described in Subsection (67)(b);
2372
(68) except for the tax imposed by Subsection 59-12-103(2)(d), sales of fuel to a common
2373
carrier that is a railroad for use in a locomotive engine;
2374
(69) purchases and sales described in Section 63H-4-111;
2375
(70)(a) sales of tangible personal property to an aircraft maintenance, repair, and
2376
overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in
- 70 - 02-20 10:39 S.B. 311
2377
this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
2378
aircraft's registration lists a state or country other than this state as the location of
2379
registry of the fixed wing turbine powered aircraft; or
2380
(b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
2381
provider in connection with the maintenance, repair, overhaul, or refurbishment in
2382
this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
2383
aircraft's registration lists a state or country other than this state as the location of
2384
registry of the fixed wing turbine powered aircraft;
2385
(71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
2386
(a) to a person admitted to an institution of higher education; and
2387
(b) by a seller, other than a bookstore owned by an institution of higher education, if
2388
51% or more of that seller's sales revenue for the previous calendar quarter are sales
2389
of a textbook for a higher education course;
2390
(72) a license fee or tax a municipality imposes in accordance with Subsection 10-1-203(5)
2391
on a purchaser from a business for which the municipality provides an enhanced level of
2392
municipal services;
2393
(73) amounts paid or charged for construction materials used in the construction of a new or
2394
expanding life science research and development facility in the state, if the construction
2395
materials are:
2396
(a) clearly identified;
2397
(b) segregated; and
2398
(c) installed or converted to real property;
2399
(74) amounts paid or charged for:
2400
(a) a purchase or lease of machinery and equipment that:
2401
(i) are used in performing qualified research:
2402
(A) as defined in Section 41(d), Internal Revenue Code; and
2403
(B) in the state; and
2404
(ii) have an economic life of three or more years; and
2405
(b) normal operating repair or replacement parts:
2406
(i) for the machinery and equipment described in Subsection (74)(a); and
2407
(ii) that have an economic life of three or more years;
2408
(75) a sale or lease of tangible personal property used in the preparation of prepared food if:
2409
(a) for a sale:
2410
(i) the ownership of the seller and the ownership of the purchaser are identical; and
- 71 - S.B. 311 02-20 10:39
2411
(ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
2412
tangible personal property prior to making the sale; or
2413
(b) for a lease:
2414
(i) the ownership of the lessor and the ownership of the lessee are identical; and
2415
(ii) the lessor or the lessee paid a tax under this chapter on the purchase of that
2416
tangible personal property prior to making the lease;
2417
(76)(a) purchases of machinery or equipment if:
2418
(i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
2419
Gambling, and Recreation Industries, of the 2012 North American Industry
2420
Classification System of the federal Executive Office of the President, Office of
2421
Management and Budget;
2422
(ii) the machinery or equipment:
2423
(A) has an economic life of three or more years; and
2424
(B) is used by one or more persons who pay admission or user fees described in
2425
Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment;
2426
and
2427
(iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
2428
(A) amounts paid or charged as admission or user fees described in Subsection
2429
59-12-103(1)(f); and
2430
(B) subject to taxation under this chapter; and
2431
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2432
commission may make rules for verifying that 51% of a purchaser's sales revenue for
2433
the previous calendar quarter is:
2434
(i) amounts paid or charged as admission or user fees described in Subsection
2435
59-12-103(1)(f); and
2436
(ii) subject to taxation under this chapter;
2437
(77) purchases of a short-term lodging consumable by a business that provides
2438
accommodations and services described in Subsection 59-12-103(1)(i);
2439
(78) amounts paid or charged to access a database:
2440
(a) if the primary purpose for accessing the database is to view or retrieve information
2441
from the database; and
2442
(b) not including amounts paid or charged for a:
2443
(i) digital audio work;
2444
(ii) digital audio-visual work; or
- 72 - 02-20 10:39 S.B. 311
2445
(iii) digital book;
2446
(79) amounts paid or charged for a purchase or lease made by an electronic financial
2447
payment service, of:
2448
(a) machinery and equipment that:
2449
(i) are used in the operation of the electronic financial payment service; and
2450
(ii) have an economic life of three or more years; and
2451
(b) normal operating repair or replacement parts that:
2452
(i) are used in the operation of the electronic financial payment service; and
2453
(ii) have an economic life of three or more years;
2454
(80) sales of a fuel cell as defined in Section 54-15-102;
2455
(81) amounts paid or charged for a purchase or lease of tangible personal property or a
2456
product transferred electronically if the tangible personal property or product transferred
2457
electronically:
2458
(a) is stored, used, or consumed in the state; and
2459
(b) is temporarily brought into the state from another state:
2460
(i) during a disaster period as defined in Section 53-2a-1202;
2461
(ii) by an out-of-state business as defined in Section 53-2a-1202;
2462
(iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
2463
(iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
2464
(82) sales of goods and services at a morale, welfare, and recreation facility, as defined in
2465
Section 39A-7-102, made pursuant to Title 39A, Chapter 7, Morale, Welfare, and
2466
Recreation Program;
2467
(83) amounts paid or charged for a purchase or lease of molten magnesium;
2468
(84) amounts paid or charged for a purchase or lease made by a qualifying data center or an
2469
occupant of a qualifying data center of machinery, equipment, or normal operating
2470
repair or replacement parts, if the machinery, equipment, or normal operating repair or
2471
replacement parts:
2472
(a) are used in:
2473
(i) the operation of the qualifying data center; or
2474
(ii) the occupant's operations in the qualifying data center; and
2475
(b) have an economic life of one or more years;
2476
(85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a vehicle
2477
that includes cleaning or washing of the interior of the vehicle;
2478
(86) amounts paid or charged for a purchase or lease of machinery, equipment, normal
- 73 - S.B. 311 02-20 10:39
2479
operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or
2480
supplies used or consumed:
2481
(a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
2482
in Section 79-6-701 located in the state;
2483
(b) if the machinery, equipment, normal operating repair or replacement parts, catalysts,
2484
chemicals, reagents, solutions, or supplies are used or consumed in:
2485
(i) the production process to produce gasoline or diesel fuel, or at which blendstock is
2486
added to gasoline or diesel fuel;
2487
(ii) research and development;
2488
(iii) transporting, storing, or managing raw materials, work in process, finished
2489
products, and waste materials produced from refining gasoline or diesel fuel, or
2490
adding blendstock to gasoline or diesel fuel;
2491
(iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
2492
refining; or
2493
(v) preventing, controlling, or reducing pollutants from refining; and
2494
(c) if the person holds a valid refiner tax exemption certification as defined in Section
2495
79-6-701;
2496
(87) amounts paid to or charged by a proprietor for accommodations and services, as
2497
defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations
2498
tax imposed under Section 63H-1-205;
2499
(88) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2500
operating repair or replacement parts, or materials, except for office equipment or office
2501
supplies, by an establishment, as the commission defines that term in accordance with
2502
Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
2503
(a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
2504
American Industry Classification System of the federal Executive Office of the
2505
President, Office of Management and Budget;
2506
(b) is located in this state; and
2507
(c) uses the machinery, equipment, normal operating repair or replacement parts, or
2508
materials in the operation of the establishment;
2509
(89) amounts paid or charged for an item exempt under Section 59-12-104.10;
2510
(90) sales of a note, leaf, foil, or film, if the item:
2511
(a) is used as currency;
2512
(b) does not constitute legal tender of a state, the United States, or a foreign nation; and
- 74 - 02-20 10:39 S.B. 311
2513
(c) has a gold, silver, or platinum metallic content of 50% or more, exclusive of any
2514
transparent polymer holder, coating, or encasement;
2515
(91) amounts paid or charged for admission to an indoor skydiving, rock climbing, or
2516
surfing facility, if a trained instructor:
2517
(a) is present with the participant, in person or by video, for the duration of the activity;
2518
and
2519
(b) actively instructs the participant, including providing observation or feedback;
2520
(92) amounts paid or charged in connection with the construction, operation, maintenance,
2521
repair, or replacement of facilities owned by or constructed for:
2522
(a) a distribution electrical cooperative, as defined in Section 54-2-1; or
2523
(b) a wholesale electrical cooperative, as defined in Section 54-2-1;
2524
(93) amounts paid by the service provider for tangible personal property, other than
2525
machinery, equipment, parts, office supplies, electricity, gas, heat, steam, or other fuels,
2526
that:
2527
(a) is consumed in the performance of a service that is subject to tax under Subsection
2528
59-12-103(1)(b), (f), (g), (h), (i), or (j);
2529
(b) has to be consumed for the service provider to provide the service described in
2530
Subsection (93)(a); and
2531
(c) will be consumed in the performance of the service described in Subsection (93)(a),
2532
to one or more customers, to the point that the tangible personal property disappears
2533
or cannot be used for any other purpose;
2534
(94) sales of rail rolling stock manufactured in Utah;
2535
(95) amounts paid or charged for sales of sand, gravel, rock aggregate, cement products, or
2536
construction materials between establishments, as the commission defines that term in
2537
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if:
2538
(a) the establishments are related directly or indirectly through 100% common
2539
ownership or control; and
2540
(b) each establishment is described in one of the following subsectors of the 2022 North
2541
American Industry Classification System of the federal Executive Office of the
2542
President, Office of Management and Budget:
2543
(i) NAICS Subsector 237, Heavy and Civil Engineering Construction; or
2544
(ii) NAICS Subsector 327, Nonmetallic Mineral Product Manufacturing;
2545
(96) sales of construction materials used for the construction of a qualified stadium, as
2546
defined in Section 11-70-101; and
- 75 - S.B. 311 02-20 10:39
2547
(97) amounts paid or charged for sales of a cannabinoid product as that term is defined in
2548
Section 4-41-102.
2549
Section 3. Effective Date.
2550
This bill takes effect on July 1, 2025.
- 76 -