SB 162

     Enrolled Copy  S.B. 162
1Online Sales Tax Amendments
                                     2026 GENERAL SESSION
                                           STATE OF UTAH
                                  Chief Sponsor: Chris H. Wilson
                                    House Sponsor: Steve Eliason
2
3  LONG TITLE
4  General Description:
5      This bill modifies sales and use tax provisions for online transactions.
6  Highlighted Provisions:
7      This bill:
8      ▸ defines terms;
9      ▸ imposes a sales and use tax for amounts paid or charged for access to digital video or
10  audio works, including subscription-based streaming services;
11      ▸ clarifies the exemption from sales and use tax for transactions subject to a multi-channel
12  video or audio service tax; and
13      ▸ makes technical changes.
14  Money Appropriated in this Bill:
15      None
16  Other Special Clauses:
17      This bill provides a special effective date.
18  Utah Code Sections Affected:
19  AMENDS:
20      59-12-102, as last amended by Laws of Utah 2025, First Special Session, Chapters 9, 12
21      59-12-103, as last amended by Laws of Utah 2025, Chapter 285
22      59-12-104, as last amended by Laws of Utah 2025, First Special Session, Chapter 17
23
24  Be it enacted by the Legislature of the state of Utah:
25Section 1. Section 59-12-102 is amended to read:
2659-12-102 . Definitions.
27     As used in this chapter:
     S.B. 162  Enrolled Copy
28   (1) "800 service" means a telecommunications service that:
29(a) allows a caller to dial a toll-free number without incurring a charge for the call; and
30(b) is typically marketed:
31(i) under the name 800 toll-free calling;
32(ii) under the name 855 toll-free calling;
33(iii) under the name 866 toll-free calling;
34(iv) under the name 877 toll-free calling;
35(v) under the name 888 toll-free calling; or
36(vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
37Federal Communications Commission.
38   (2)(a) "900 service" means an inbound toll telecommunications service that:
39(i) a subscriber purchases;
40(ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
41the subscriber's:
42(A) prerecorded announcement; or
43(B) live service; and
44(iii) is typically marketed:
45(A) under the name 900 service; or
46(B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
47Communications Commission.
48(b) "900 service" does not include a charge for:
49(i) a collection service a seller of a telecommunications service provides to a
50subscriber; or
51(ii) the following a subscriber sells to the subscriber's customer:
52(A) a product; or
53(B) a service.
54   (3)(a) "Adaptive driving equipment" means mobility enhancing equipment:
55(i) to be installed in a motor vehicle; and
56(ii) regardless of who provides the equipment or parts.
57(b) "Adaptive driving equipment" includes:
58(i) a wheelchair or scooter lift;
59(ii) equipment to secure a wheelchair;
60(iii) a swivel seat;
61(iv) a hand or foot control; and
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62(v) a steering aid.
63  (4)(a) "Admission or user fees" includes season passes.
64      (b) "Admission or user fees" does not include:
65(i) annual membership dues to private organizations; or
66(ii) a lesson, including a lesson that involves as part of the lesson equipment or a
67facility listed in Subsection 59-12-103(1)(f).
68  (5) "Affiliate" or "affiliated person" means a person that, with respect to another person:
69      (a) has an ownership interest of more than 5%, whether direct or indirect, in that other
70person; or
71      (b) is related to the other person because a third person, or a group of third persons who
72are affiliated persons with respect to each other, holds an ownership interest of more
73than 5%, whether direct or indirect, in the related persons.
74  (6) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
75      November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
76      Agreement after November 12, 2002.
77  (7) "Agreement combined tax rate" means the sum of the tax rates:
78      (a) listed under Subsection (8); and
79      (b) that are imposed within a local taxing jurisdiction.
80  (8) "Agreement sales and use tax" means a tax imposed under:
81      (a) Subsection 59-12-103(2)(a)(i)(A);
82      (b) Subsection 59-12-103(2)(a)(i)(B);
83      (c) Subsection 59-12-103(2)(b)(i);
84      (d) Subsection 59-12-103(2)(c)(i);
85      (e) Subsection 59-12-103(2)(d);
86      (f) Subsection 59-12-103(2)(e)(i)(A);
87      (g) Section 59-12-204;
88      (h) Section 59-12-401;
89      (i) Section 59-12-402;
90      (j) Section 59-12-402.1;
91      (k) Section 59-12-703;
92      (l) Section 59-12-802;
93      (m) Section 59-12-804;
94      (n) Section 59-12-1102;
95      (o) Section 59-12-1302;
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96(p) Section 59-12-1402;
97(q) Section 59-12-1802;
98(r) Section 59-12-2003;
99(s) Section 59-12-2103;
100(t) Section 59-12-2213;
101(u) Section 59-12-2214;
102(v) Section 59-12-2215;
103(w) Section 59-12-2216;
104(x) Section 59-12-2217;
105(y) Section 59-12-2218;
106(z) Section 59-12-2219;
107(aa) Section 59-12-2220; or
108(bb) Section 59-12-2402.
109   (9) "Aircraft" means the same as that term is defined in Section 72-10-102.
110   (10) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
111(a) except for:
112(i) an airline as defined in Section 59-2-102; or
113(ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
114includes a corporation that is qualified to do business but is not otherwise doing
115business in the state, of an airline; and
116(b) that has the workers, expertise, and facilities to perform the following, regardless of
117whether the business entity performs the following in this state:
118(i) check, diagnose, overhaul, and repair:
119(A) an onboard system of a fixed wing turbine powered aircraft; and
120(B) the parts that comprise an onboard system of a fixed wing turbine powered
121aircraft;
122(ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered
123aircraft engine;
124(iii) perform at least the following maintenance on a fixed wing turbine powered
125aircraft:
126(A) an inspection;
127(B) a repair, including a structural repair or modification;
128(C) changing landing gear; and
129(D) addressing issues related to an aging fixed wing turbine powered aircraft;
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130(iv) completely remove the existing paint of a fixed wing turbine powered aircraft
131and completely apply new paint to the fixed wing turbine powered aircraft; and
132(v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
133results in a change in the fixed wing turbine powered aircraft's certification
134requirements by the authority that certifies the fixed wing turbine powered aircraft.
135  (11) "Alcoholic beverage" means a beverage that:
136      (a) is suitable for human consumption; and
137      (b) contains .5% or more alcohol by volume.
138  (12) "Alternative energy" means:
139      (a) biomass energy;
140      (b) geothermal energy;
141      (c) hydroelectric energy;
142      (d) solar energy;
143      (e) wind energy; or
144      (f) energy that is derived from:
145(i) coal-to-liquids;
146(ii) nuclear fuel;
147(iii) oil-impregnated diatomaceous earth;
148(iv) oil sands;
149(v) oil shale;
150(vi) petroleum coke; or
151(vii) waste heat from:
152(A) an industrial facility; or
153(B) a power station in which an electric generator is driven through a process in
154which water is heated, turns into steam, and spins a steam turbine.
155  (13)(a) Subject to Subsection (13)(b), "alternative energy electricity production facility"
156      means a facility that:
157(i) uses alternative energy to produce electricity; and
158(ii) has a production capacity of two megawatts or greater.
159      (b) A facility is an alternative energy electricity production facility regardless of whether
160the facility is:
161(i) connected to an electric grid; or
162(ii) located on the premises of an electricity consumer.
163  (14)(a) "Ancillary service" means a service associated with, or incidental to, the
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164provision of telecommunications service.
165(b) "Ancillary service" includes:
166(i) a conference bridging service;
167(ii) a detailed communications billing service;
168(iii) directory assistance;
169(iv) a vertical service; or
170(v) a voice mail service.
171   (15) "Area agency on aging" means the same as that term is defined in Section 26B-6-101.
172   (16) "Assisted amusement device" means an amusement device, skill device, or ride device
173that is started and stopped by an individual:
174(a) who is not the purchaser or renter of the right to use or operate the amusement
175device, skill device, or ride device; and
176(b) at the direction of the seller of the right to use the amusement device, skill device, or
177ride device.
178   (17) "Assisted cleaning or washing of tangible personal property" means cleaning or
179washing of tangible personal property if the cleaning or washing labor is primarily
180performed by an individual:
181(a) who is not the purchaser of the cleaning or washing of the tangible personal property;
182and
183(b) at the direction of the seller of the cleaning or washing of the tangible personal
184property.
185   (18) "Authorized carrier" means:
186(a) in the case of vehicles operated over public highways, the holder of credentials
187indicating that the vehicle is or will be operated [pursuant to] in accordance with both
188the International Registration Plan and the International Fuel Tax Agreement;
189(b) in the case of aircraft, the holder of a Federal Aviation Administration operating
190certificate or air carrier's operating certificate; or
191(c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
192stock, a person who uses locomotives, freight cars, railroad work equipment, or other
193rolling stock in more than one state.
194   (19)(a) "Biomass energy" means any of the following that is used as the primary source
195of energy to produce fuel or electricity:
196(i) material from a plant or tree; or
197(ii) other organic matter that is available on a renewable basis, including:
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198(A) slash and brush from forests and woodlands;
199(B) animal waste;
200(C) waste vegetable oil;
201(D) methane or synthetic gas produced at a landfill, as a byproduct of the
202treatment of wastewater residuals, or through the conversion of a waste
203material through a nonincineration, thermal conversion process;
204(E) aquatic plants; and
205(F) agricultural products.
206      (b) "Biomass energy" does not include:
207(i) black liquor; or
208(ii) treated woods.
209  (20)(a) "Bundled transaction" means the sale of two or more items of tangible personal
210      property, products, or services if the tangible personal property, products, or services
211      are:
212(i) distinct and identifiable; and
213(ii) sold for one nonitemized price.
214      (b) "Bundled transaction" does not include:
215(i) the sale of tangible personal property if the sales price varies, or is negotiable, on
216the basis of the selection by the purchaser of the items of tangible personal
217property included in the transaction;
218(ii) the sale of real property;
219(iii) the sale of services to real property;
220(iv) the retail sale of tangible personal property and a service if:
221(A) the tangible personal property:
222(I) is essential to the use of the service; and
223(II) is provided exclusively in connection with the service; and
224(B) the service is the true object of the transaction;
225(v) the retail sale of two services if:
226(A) one service is provided that is essential to the use or receipt of a second
227service;
228(B) the first service is provided exclusively in connection with the second service;
229and
230(C) the second service is the true object of the transaction;
231(vi) a transaction that includes tangible personal property or a product subject to
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232taxation under this chapter and tangible personal property or a product that is not
233subject to taxation under this chapter if the:
234(A) seller's purchase price of the tangible personal property or product subject to
235taxation under this chapter is de minimis; or
236(B) seller's sales price of the tangible personal property or product subject to
237taxation under this chapter is de minimis; and
238(vii) the retail sale of tangible personal property that is not subject to taxation under
239this chapter and tangible personal property that is subject to taxation under this
240chapter if:
241(A) that retail sale includes:
242(I) food and food ingredients;
243(II) a drug;
244(III) durable medical equipment;
245(IV) mobility enhancing equipment;
246(V) an over-the-counter drug;
247(VI) a prosthetic device; or
248(VII) a medical supply; and
249(B) subject to Subsection (20)(f):
250(I) the seller's purchase price of the tangible personal property subject to
251taxation under this chapter is 50% or less of the seller's total purchase price
252of that retail sale; or
253(II) the seller's sales price of the tangible personal property subject to taxation
254under this chapter is 50% or less of the seller's total sales price of that retail
255sale.
256(c)(i) For purposes of Subsection (20)(a)(i), tangible personal property, a product, or
257a service that is distinct and identifiable does not include:
258(A) packaging that:
259(I) accompanies the sale of the tangible personal property, product, or service;
260and
261(II) is incidental or immaterial to the sale of the tangible personal property,
262product, or service;
263(B) tangible personal property, a product, or a service provided free of charge with
264the purchase of another item of tangible personal property, a product, or a
265service; or
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266(C) an item of tangible personal property, a product, or a service included in the
267definition of "purchase price."
268(ii) For purposes of Subsection (20)(c)(i)(B), an item of tangible personal property, a
269product, or a service is provided free of charge with the purchase of another item
270of tangible personal property, a product, or a service if the sales price of the
271purchased item of tangible personal property, product, or service does not vary
272depending on the inclusion of the tangible personal property, product, or service
273provided free of charge.
274      (d)(i) For purposes of Subsection (20)(a)(ii), property sold for one nonitemized price
275does not include a price that is separately identified by tangible personal property,
276product, or service on the following, regardless of whether the following is in
277paper format or electronic format:
278(A) a binding sales document; or
279(B) another supporting sales-related document that is available to a purchaser.
280(ii) For purposes of Subsection (20)(d)(i), a binding sales document or another
281supporting sales-related document that is available to a purchaser includes:
282(A) a bill of sale;
283(B) a contract;
284(C) an invoice;
285(D) a lease agreement;
286(E) a periodic notice of rates and services;
287(F) a price list;
288(G) a rate card;
289(H) a receipt; or
290(I) a service agreement.
291      (e)(i) For purposes of Subsection (20)(b)(vi), the sales price of tangible personal
292property or a product subject to taxation under this chapter is de minimis if:
293(A) the seller's purchase price of the tangible personal property or product is 10%
294or less of the seller's total purchase price of the bundled transaction; or
295(B) the seller's sales price of the tangible personal property or product is 10% or
296less of the seller's total sales price of the bundled transaction.
297(ii) For purposes of Subsection (20)(b)(vi), a seller:
298(A) shall use the seller's purchase price or the seller's sales price to determine if
299the purchase price or sales price of the tangible personal property or product
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300subject to taxation under this chapter is de minimis; and
301(B) may not use a combination of the seller's purchase price and the seller's sales
302price to determine if the purchase price or sales price of the tangible personal
303property or product subject to taxation under this chapter is de minimis.
304(iii) For purposes of Subsection (20)(b)(vi), a seller shall use the full term of a service
305contract to determine if the sales price of tangible personal property or a product is
306de minimis.
307(f) For purposes of Subsection (20)(b)(vii)(B), a seller may not use a combination of the
308seller's purchase price and the seller's sales price to determine if tangible personal
309property subject to taxation under this chapter is 50% or less of the seller's total
310purchase price or sales price of that retail sale.
311   (21) "Car sharing" means the same as that term is defined in Section 13-48a-101.
312   (22) "Car-sharing program" means the same as that term is defined in Section 13-48a-101.
313   (23) "Certified automated system" means software certified by the governing board of the
314agreement that:
315(a) calculates the agreement sales and use tax imposed within a local taxing jurisdiction:
316(i) on a transaction; and
317(ii) in the states that are members of the agreement;
318(b) determines the amount of agreement sales and use tax to remit to a state that is a
319member of the agreement; and
320(c) maintains a record of the transaction described in Subsection (23)(a)(i).
321   (24) "Certified service provider" means an agent certified:
322(a) by the governing board of the agreement; and
323(b) to perform a seller's sales and use tax functions for an agreement sales and use tax, as
324outlined in the contract between the governing board of the agreement and the
325certified service provider, other than the seller's obligation under Section 59-12-124
326to remit a tax on the seller's own purchases.
327   (25)(a) Subject to Subsection (25)(b), "clothing" means all human wearing apparel
328suitable for general use.
329(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
330commission shall make rules:
331(i) listing the items that constitute "clothing"; and
332(ii) that are consistent with the list of items that constitute "clothing" under the
333agreement.
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334  (26) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
335  (27) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels
336      that does not constitute industrial use under Subsection (61) or residential use under
337      Subsection (117).
338  (28)(a) "Common carrier" means a person engaged in or transacting the business of
339      transporting passengers, freight, merchandise, or other property for hire within this
340      state.
341      (b)(i) "Common carrier" does not include a person that, at the time the person is
342traveling to or from that person's place of employment, transports a passenger to
343or from the passenger's place of employment.
344(ii) For purposes of Subsection (28)(b)(i), in accordance with Title 63G, Chapter 3,
345Utah Administrative Rulemaking Act, the commission may make rules defining
346what constitutes a person's place of employment.
347      (c) "Common carrier" does not include a person that provides transportation network
348services, as defined in Section 13-51-102.
349  (29) "Component part" includes:
350      (a) poultry, dairy, and other livestock feed, and their components;
351      (b) baling ties and twine used in the baling of hay and straw;
352      (c) fuel used for providing temperature control of orchards and commercial greenhouses
353doing a majority of their business in wholesale sales, and for providing power for
354off-highway type farm machinery; and
355      (d) feed, seeds, and seedlings.
356  (30) "Computer" means an electronic device that accepts information:
357      (a)(i) in digital form; or
358(ii) in a form similar to digital form; and
359      (b) manipulates that information for a result based on a sequence of instructions.
360  (31) "Computer software" means a set of coded instructions designed to cause:
361      (a) a computer to perform a task; or
362      (b) automatic data processing equipment to perform a task.
363  (32) "Computer software maintenance contract" means a contract that obligates a seller of
364      computer software to provide a customer with:
365      (a) future updates or upgrades to computer software;
366      (b) support services with respect to computer software; or
367      (c) a combination of Subsections (32)(a) and (b).
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368   (33)(a) "Conference bridging service" means an ancillary service that links two or more
369participants of an audio conference call or video conference call.
370(b) "Conference bridging service" may include providing a telephone number as part of
371the ancillary service described in Subsection (33)(a).
372(c) "Conference bridging service" does not include a telecommunications service used to
373reach the ancillary service described in Subsection (33)(a).
374   (34) "Construction materials" means any tangible personal property that will be converted
375into real property.
376   (35) "Delivered electronically" means delivered to a purchaser by means other than tangible
377storage media.
378   (36)(a) "Delivery charge" means a charge:
379(i) by a seller of:
380(A) tangible personal property;
381(B) a product transferred electronically; or
382(C) a service; and
383(ii) for preparation and delivery of the tangible personal property, product transferred
384electronically, or services described in Subsection (36)(a)(i) to a location
385designated by the purchaser.
386(b) "Delivery charge" includes a charge for the following:
387(i) transportation;
388(ii) shipping;
389(iii) postage;
390(iv) handling;
391(v) crating; or
392(vi) packing.
393   (37) "Detailed telecommunications billing service" means an ancillary service of separately
394stating information pertaining to individual calls on a customer's billing statement.
395   (38) "Dietary supplement" means a product, other than tobacco, that:
396(a) is intended to supplement the diet;
397(b) contains one or more of the following dietary ingredients:
398(i) a vitamin;
399(ii) a mineral;
400(iii) an herb or other botanical;
401(iv) an amino acid;
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402(v) a dietary substance for use by humans to supplement the diet by increasing the
403total dietary intake; or
404(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
405described in Subsections (38)(b)(i) through (v);
406      (c)(i) except as provided in Subsection (38)(c)(ii), is intended for ingestion in:
407(A) tablet form;
408(B) capsule form;
409(C) powder form;
410(D) softgel form;
411(E) gelcap form; or
412(F) liquid form; or
413(ii) if the product is not intended for ingestion in a form described in Subsections
414(38)(c)(i)(A) through (F), is not represented:
415(A) as conventional food; and
416(B) for use as a sole item of:
417(I) a meal; or
418(II) the diet; and
419      (d) is required to be labeled as a dietary supplement:
420(i) identifiable by the "Supplemental Facts" box found on the label; and
421(ii) as required by 21 C.F.R. Sec. 101.36.
422  (39)(a) "Digital audio work" means a work that results from the fixation of a series of
423      musical, spoken, or other sounds.
424      (b) "Digital audio work" includes a ringtone.
425  (40) "Digital audio-visual work" means a series of related images which, when shown in
426      succession, imparts an impression of motion, together with accompanying sounds, if any.
427  (41) "Digital book" means a work that is generally recognized in the ordinary and usual
428      sense as a book.
429  (42)(a) "Direct mail" means printed material delivered or distributed by United States
430      mail or other delivery service:
431(i) to:
432(A) a mass audience; or
433(B) addressees on a mailing list provided:
434(I) by a purchaser of the mailing list; or
435(II) at the discretion of the purchaser of the mailing list; and
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436(ii) if the cost of the printed material is not billed directly to the recipients.
437(b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
438purchaser to a seller of direct mail for inclusion in a package containing the printed
439material.
440(c) "Direct mail" does not include multiple items of printed material delivered to a single
441address.
442   (43) "Directory assistance" means an ancillary service of providing:
443(a) address information; or
444(b) telephone number information.
445   (44)(a) "Disposable home medical equipment or supplies" means medical equipment or
446supplies that:
447(i) cannot withstand repeated use; and
448(ii) are purchased by, for, or on behalf of a person other than:
449(A) a health care facility as defined in Section 26B-2-201;
450(B) a health care provider as defined in Section 78B-3-403;
451(C) an office of a health care provider described in Subsection (44)(a)(ii)(B); or
452(D) a person similar to a person described in Subsections (44)(a)(ii)(A) through
453(C).
454(b) "Disposable home medical equipment or supplies" does not include:
455(i) a drug;
456(ii) durable medical equipment;
457(iii) a hearing aid;
458(iv) a hearing aid accessory;
459(v) mobility enhancing equipment; or
460(vi) tangible personal property used to correct impaired vision, including:
461(A) eyeglasses; or
462(B) contact lenses.
463(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
464commission may by rule define what constitutes medical equipment or supplies.
465   (45) "Drilling equipment manufacturer" means a facility:
466(a) located in the state;
467(b) with respect to which 51% or more of the manufacturing activities of the facility
468consist of manufacturing component parts of drilling equipment;
469(c) that uses pressure of 800,000 or more pounds per square inch as part of the
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470manufacturing process; and
471      (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
472manufacturing process.
473  (46)(a) "Drug" means a compound, substance, or preparation, or a component of a
474      compound, substance, or preparation that is:
475(i) recognized in:
476(A) the official United States Pharmacopoeia;
477(B) the official Homeopathic Pharmacopoeia of the United States;
478(C) the official National Formulary; or
479(D) a supplement to a publication listed in Subsections (46)(a)(i)(A) through (C);
480(ii) intended for use in the:
481(A) diagnosis of disease;
482(B) cure of disease;
483(C) mitigation of disease;
484(D) treatment of disease; or
485(E) prevention of disease; or
486(iii) intended to affect:
487(A) the structure of the body; or
488(B) any function of the body.
489      (b) "Drug" does not include:
490(i) food and food ingredients;
491(ii) a dietary supplement;
492(iii) an alcoholic beverage; or
493(iv) a prosthetic device.
494  (47)(a) "Durable medical equipment" means equipment that:
495(i) can withstand repeated use;
496(ii) is primarily and customarily used to serve a medical purpose;
497(iii) generally is not useful to a person in the absence of illness or injury; and
498(iv) is not worn in or on the body.
499      (b) "Durable medical equipment" includes parts used in the repair or replacement of the
500equipment described in Subsection (47)(a).
501      (c) "Durable medical equipment" does not include mobility enhancing equipment.
502  (48) "Electronic" means:
503      (a) relating to technology; and
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504(b) having:
505(i) electrical capabilities;
506(ii) digital capabilities;
507(iii) magnetic capabilities;
508(iv) wireless capabilities;
509(v) optical capabilities;
510(vi) electromagnetic capabilities; or
511(vii) capabilities similar to Subsections (48)(b)(i) through (vi).
512   (49) "Electronic financial payment service" means an establishment:
513(a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
514Clearinghouse Activities, of the 2012 North American Industry Classification System
515of the federal Executive Office of the President, Office of Management and Budget;
516and
517(b) that performs electronic financial payment services.
518   (50) "Employee" means the same as that term is defined in Section 59-10-401.
519   (51) "Fixed guideway" means a public transit facility that uses and occupies:
520(a) rail for the use of public transit; or
521(b) a separate right-of-way for the use of public transit.
522   (52) "Fixed wing turbine powered aircraft" means an aircraft that:
523(a) is powered by turbine engines;
524(b) operates on jet fuel; and
525(c) has wings that are permanently attached to the fuselage of the aircraft.
526   (53) "Fixed wireless service" means a telecommunications service that provides radio
527communication between fixed points.
528   (54)(a) "Food and food ingredients" means substances:
529(i) regardless of whether the substances are in:
530(A) liquid form;
531(B) concentrated form;
532(C) solid form;
533(D) frozen form;
534(E) dried form; or
535(F) dehydrated form; and
536(ii) that are:
537(A) sold for:
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538(I) ingestion by humans; or
539(II) chewing by humans; and
540(B) consumed for the substance's:
541(I) taste; or
542(II) nutritional value.
543      (b) "Food and food ingredients" includes an item described in Subsection (100)(b)(iii).
544      (c) "Food and food ingredients" does not include:
545(i) an alcoholic beverage;
546(ii) tobacco; or
547(iii) prepared food.
548  (55)(a) "Fundraising sales" means sales:
549(i)(A) made by a school; or
550(B) made by a school student;
551(ii) that are for the purpose of raising funds for the school to purchase equipment,
552materials, or provide transportation; and
553(iii) that are part of an officially sanctioned school activity.
554      (b) For purposes of Subsection (55)(a)(iii), "officially sanctioned school activity" means
555a school activity:
556(i) that is conducted in accordance with a formal policy adopted by the school or
557school district governing the authorization and supervision of fundraising
558activities;
559(ii) that does not directly or indirectly compensate an individual teacher or other
560educational personnel by direct payment, commissions, or payment in kind; and
561(iii) the net or gross revenue from which is deposited in a dedicated account
562controlled by the school or school district.
563  (56) "Geothermal energy" means energy contained in heat that continuously flows outward
564      from the earth that is used as the sole source of energy to produce electricity.
565  (57) "Governing board of the agreement" means the governing board of the agreement that
566      is:
567      (a) authorized to administer the agreement; and
568      (b) established in accordance with the agreement.
569  (58)(a) For purposes of Subsection 59-12-104(41), "governmental entity" means:
570(i) the executive branch of the state, including all departments, institutions, boards,
571divisions, bureaus, offices, commissions, and committees;
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572(ii) the judicial branch of the state, including the courts, the Judicial Council, the
573Administrative Office of the Courts, and similar administrative units in the
574judicial branch;
575(iii) the legislative branch of the state, including the House of Representatives, the
576Senate, the Office of Legislative Services, the Office of Legislative Research and
577General Counsel, the Office of the Legislative Auditor General, and the Office of
578the Legislative Fiscal Analyst;
579(iv) the National Guard;
580(v) an independent entity as defined in Section 63E-1-102; or
581(vi) a political subdivision as defined in Section 17B-1-102.
582(b) "Governmental entity" does not include the state systems of public and higher
583education, including:
584(i) a school;
585(ii) the State Board of Education;
586(iii) the Utah Board of Higher Education; or
587(iv) an institution of higher education listed in Section 53H-1-102.
588   (59) "Hydroelectric energy" means water used as the sole source of energy to produce
589electricity.
590   (60) "Individual-owned shared vehicle" means the same as that term is defined in Section
59113-48a-101.
592   (61) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or other
593fuels:
594(a) in mining or extraction of minerals;
595(b) in agricultural operations to produce an agricultural product up to the time of harvest
596or placing the agricultural product into a storage facility, including:
597(i) commercial greenhouses;
598(ii) irrigation pumps;
599(iii) farm machinery;
600(iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
601under Title 41, Chapter 1a, Part 2, Registration; and
602(v) other farming activities;
603(c) in manufacturing tangible personal property at an establishment described in:
604(i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
605the federal Executive Office of the President, Office of Management and Budget;
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606or
607(ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
608American Industry Classification System of the federal Executive Office of the
609President, Office of Management and Budget;
610      (d) by a scrap recycler if:
611(i) from a fixed location, the scrap recycler utilizes machinery or equipment to
612process one or more of the following items into prepared grades of processed
613materials for use in new products:
614(A) iron;
615(B) steel;
616(C) nonferrous metal;
617(D) paper;
618(E) glass;
619(F) plastic;
620(G) textile; or
621(H) rubber; and
622(ii) the new products under Subsection (61)(d)(i) would otherwise be made with
623nonrecycled materials; or
624      (e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
625cogeneration facility as defined in Section 54-2-1.
626  (62)(a) "Installation charge" means a charge for installing:
627(i) tangible personal property; or
628(ii) a product transferred electronically.
629      (b) "Installation charge" does not include a charge for:
630(i) repairs or renovations of:
631(A) tangible personal property; or
632(B) a product transferred electronically; or
633(ii) attaching tangible personal property or a product transferred electronically:
634(A) to other tangible personal property; and
635(B) as part of a manufacturing or fabrication process.
636  (63) "Institution of higher education" means an institution of higher education listed in
637      Section 53H-1-102.
638  (64)(a) "Lease" or "rental" means a transfer of possession or control of tangible personal
639      property or a product transferred electronically for:
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640(i)(A) a fixed term; or
641(B) an indeterminate term; and
642(ii) consideration.
643(b) "Lease" or "rental" includes:
644(i) an agreement covering a motor vehicle and trailer if the amount of consideration
645may be increased or decreased by reference to the amount realized upon sale or
646disposition of the property as defined in Section 7701(h)(1), Internal Revenue
647Code; and
648(ii) car sharing.
649(c) "Lease" or "rental" does not include:
650(i) a transfer of possession or control of property under a security agreement or
651deferred payment plan that requires the transfer of title upon completion of the
652required payments;
653(ii) a transfer of possession or control of property under an agreement that requires
654the transfer of title:
655(A) upon completion of required payments; and
656(B) if the payment of an option price does not exceed the greater of:
657(I) $100; or
658(II) 1% of the total required payments; or
659(iii) providing tangible personal property along with an operator for a fixed period of
660time or an indeterminate period of time if the operator is necessary for equipment
661to perform as designed.
662(d) For purposes of Subsection (64)(c)(iii), an operator is necessary for equipment to
663perform as designed if the operator's duties exceed the:
664(i) set-up of tangible personal property;
665(ii) maintenance of tangible personal property; or
666(iii) inspection of tangible personal property.
667   (65) "Lesson" means a fixed period of time for the duration of which a trained instructor:
668(a) is present with a student in person or by video; and
669(b) actively instructs the student, including by providing observation or feedback.
670   (66) "Life science establishment" means an establishment in this state that is classified
671under the following NAICS codes of the 2007 North American Industry Classification
672System of the federal Executive Office of the President, Office of Management and
673Budget:
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674      (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
675      (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
676Manufacturing; or
677      (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
678  (67) "Life science research and development facility" means a facility owned, leased, or
679      rented by a life science establishment if research and development is performed in 51%
680      or more of the total area of the facility.
681  (68) "Load and leave" means delivery to a purchaser by use of a tangible storage media if
682      the tangible storage media is not physically transferred to the purchaser.
683  (69) "Local taxing jurisdiction" means a:
684      (a) county that is authorized to impose an agreement sales and use tax;
685      (b) city that is authorized to impose an agreement sales and use tax; or
686      (c) town that is authorized to impose an agreement sales and use tax.
687  (70) "Manufactured home" means the same as that term is defined in Section 15A-1-302.
688  (71) "Manufacturing facility" means:
689      (a) an establishment described in:
690(i) SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
691the federal Executive Office of the President, Office of Management and Budget;
692or
693(ii) a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
694American Industry Classification System of the federal Executive Office of the
695President, Office of Management and Budget;
696      (b) a scrap recycler if:
697(i) from a fixed location, the scrap recycler utilizes machinery or equipment to
698process one or more of the following items into prepared grades of processed
699materials for use in new products:
700(A) iron;
701(B) steel;
702(C) nonferrous metal;
703(D) paper;
704(E) glass;
705(F) plastic;
706(G) textile; or
707(H) rubber; and
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708(ii) the new products under Subsection (71)(b)(i) would otherwise be made with
709nonrecycled materials; or
710(c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
711placed in service on or after May 1, 2006.
712   (72)(a) "Marketplace" means a physical or electronic place, platform, or forum where
713tangible personal property, a product transferred electronically, or a service is offered
714for sale.
715(b) "Marketplace" includes a store, a booth, an Internet website, a catalog, or a dedicated
716sales software application.
717   (73)(a) "Marketplace facilitator" means a person, including an affiliate of the person,
718that enters into a contract, an agreement, or otherwise with sellers, for consideration,
719to facilitate the sale of a seller's product through a marketplace that the person owns,
720operates, or controls and that directly or indirectly:
721(i) does any of the following:
722(A) lists, makes available, or advertises tangible personal property, a product
723transferred electronically, or a service for sale by a marketplace seller on a
724marketplace that the person owns, operates, or controls;
725(B) facilitates the sale of a marketplace seller's tangible personal property, product
726transferred electronically, or service by transmitting or otherwise
727communicating an offer or acceptance of a retail sale between the marketplace
728seller and a purchaser using the marketplace;
729(C) owns, rents, licenses, makes available, or operates any electronic or physical
730infrastructure or any property, process, method, copyright, trademark, or patent
731that connects a marketplace seller to a purchaser for the purpose of making a
732retail sale of tangible personal property, a product transferred electronically, or
733a service;
734(D) provides a marketplace for making, or otherwise facilitates, a retail sale of
735tangible personal property, a product transferred electronically, or a service,
736regardless of ownership or control of the tangible personal property, the
737product transferred electronically, or the service that is the subject of the retail
738sale;
739(E) provides software development or research and development activities related
740to any activity described in this Subsection (73)(a)(i), if the software
741development or research and development activity is directly related to the
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742person's marketplace;
743(F) provides or offers fulfillment or storage services for a marketplace seller;
744(G) sets prices for the sale of tangible personal property, a product transferred
745electronically, or a service by a marketplace seller;
746(H) provides or offers customer service to a marketplace seller or a marketplace
747seller's purchaser or accepts or assists with taking orders, returns, or exchanges
748of tangible personal property, a product transferred electronically, or a service
749sold by a marketplace seller on the person's marketplace; or
750(I) brands or otherwise identifies sales as those of the person; and
751(ii) does any of the following:
752(A) collects the sales price or purchase price of a retail sale of tangible personal
753property, a product transferred electronically, or a service;
754(B) provides payment processing services for a retail sale of tangible personal
755property, a product transferred electronically, or a service;
756(C) charges, collects, or otherwise receives a selling fee, listing fee, referral fee,
757closing fee, a fee for inserting or making available tangible personal property, a
758product transferred electronically, or a service on the person's marketplace, or
759other consideration for the facilitation of a retail sale of tangible personal
760property, a product transferred electronically, or a service, regardless of
761ownership or control of the tangible personal property, the product transferred
762electronically, or the service that is the subject of the retail sale;
763(D) through terms and conditions, an agreement, or another arrangement with a
764third person, collects payment from a purchase for a retail sale of tangible
765personal property, a product transferred electronically, or a service and
766transmits that payment to the marketplace seller, regardless of whether the
767third person receives compensation or other consideration in exchange for the
768service; or
769(E) provides a virtual currency for a purchaser to use to purchase tangible personal
770property, a product transferred electronically, or service offered for sale.
771      (b) "Marketplace facilitator" does not include:
772(i) a person that only provides payment processing services; or
773(ii) a person described in Subsection (73)(a) to the extent the person is facilitating a
774sale for a seller that is a restaurant as defined in Section 59-12-602.
775  (74) "Marketplace seller" means a seller that makes one or more retail sales through a
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776marketplace that a marketplace facilitator owns, operates, or controls, regardless of
777whether the seller is required to be registered to collect and remit the tax under this part.
778   (75) "Member of the immediate family of the producer" means a person who is related to a
779producer described in Subsection 59-12-104(20)(a) as a:
780(a) child or stepchild, regardless of whether the child or stepchild is:
781(i) an adopted child or adopted stepchild; or
782(ii) a foster child or foster stepchild;
783(b) grandchild or stepgrandchild;
784(c) grandparent or stepgrandparent;
785(d) nephew or stepnephew;
786(e) niece or stepniece;
787(f) parent or stepparent;
788(g) sibling or stepsibling;
789(h) spouse;
790(i) person who is the spouse of a person described in Subsections (75)(a) through (g); or
791(j) person similar to a person described in Subsections (75)(a) through (i) as determined
792by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
793Administrative Rulemaking Act.
794   (76) "Mobile home" means the same as that term is defined in Section 15A-1-302.
795   (77) "Mobile telecommunications service" means the same as that term is defined in the
796Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
797   (78)(a) "Mobile wireless service" means a telecommunications service, regardless of the
798technology used, if:
799(i) the origination point of the conveyance, routing, or transmission is not fixed;
800(ii) the termination point of the conveyance, routing, or transmission is not fixed; or
801(iii) the origination point described in Subsection (78)(a)(i) and the termination point
802described in Subsection (78)(a)(ii) are not fixed.
803(b) "Mobile wireless service" includes a telecommunications service that is provided by
804a commercial mobile radio service provider.
805(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
806commission may by rule define "commercial mobile radio service provider."
807   (79)(a) "Mobility enhancing equipment" means equipment that is:
808(i) primarily and customarily used to provide or increase the ability to move from one
809place to another;
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810(ii) appropriate for use in a:
811(A) home; or
812(B) motor vehicle; and
813(iii) not generally used by persons with normal mobility.
814      (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
815the equipment described in Subsection (79)(a).
816      (c) "Mobility enhancing equipment" does not include:
817(i) a motor vehicle;
818(ii) equipment on a motor vehicle if that equipment is normally provided by the
819motor vehicle manufacturer;
820(iii) durable medical equipment; or
821(iv) a prosthetic device.
822  (80) "Model 1 seller" means a seller registered under the agreement that has selected a
823      certified service provider as the seller's agent to perform the seller's sales and use tax
824      functions for agreement sales and use taxes, as outlined in the contract between the
825      governing board of the agreement and the certified service provider, other than the
826      seller's obligation under Section 59-12-124 to remit a tax on the seller's own purchases.
827  (81) "Model 2 seller" means a seller registered under the agreement that:
828      (a) except as provided in Subsection (81)(b), has selected a certified automated system
829to perform the seller's sales tax functions for agreement sales and use taxes; 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  (82)(a) Subject to Subsection (82)(b), "model 3 seller" means a seller registered under
834      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 (82)(a), "model 3 seller" includes an affiliated group of
842sellers using the same proprietary system.
843  (83) "Model 4 seller" means a seller that is registered under the agreement and is not a
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844model 1 seller, model 2 seller, or model 3 seller.
845   (84) "Modular home" means a modular unit as defined in Section 15A-1-302.
846   (85) "Motor vehicle" means the same as that term is defined in Section 41-1a-102.
847   (86) "Oil sands" means impregnated bituminous sands that:
848(a) contain a heavy, thick form of petroleum that is released when heated, mixed with
849other hydrocarbons, or otherwise treated;
850(b) yield mixtures of liquid hydrocarbon; and
851(c) require further processing other than mechanical blending before becoming finished
852petroleum products.
853   (87) "Oil shale" means a group of fine black to dark brown shales containing kerogen
854material that yields petroleum upon heating and distillation.
855   (88) "Optional computer software maintenance contract" means a computer software
856maintenance contract that a customer is not obligated to purchase as a condition to the
857retail sale of computer software.
858   (89)(a) "Other fuels" means products that burn independently to produce heat or energy.
859(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
860personal property.
861   (90)(a) "Paging service" means a telecommunications service that provides transmission
862of a coded radio signal for the purpose of activating a specific pager.
863(b) For purposes of Subsection (90)(a), the transmission of a coded radio signal includes
864a transmission by message or sound.
865   (91) "Pawn transaction" means the same as that term is defined in Section 13-32a-102.
866   (92) "Pawnbroker" means the same as that term is defined in Section 13-32a-102.
867   (93)(a) "Permanently attached to real property" means that for tangible personal property
868attached to real property:
869(i) the attachment of the tangible personal property to the real property:
870(A) is essential to the use of the tangible personal property; and
871(B) suggests that the tangible personal property will remain attached to the real
872property in the same place over the useful life of the tangible personal
873property; or
874(ii) if the tangible personal property is detached from the real property, the
875detachment would:
876(A) cause substantial damage to the tangible personal property; or
877(B) require substantial alteration or repair of the real property to which the
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878tangible personal property is attached.
879      (b) "Permanently attached to real property" includes:
880(i) the attachment of an accessory to the tangible personal property if the accessory is:
881(A) essential to the operation of the tangible personal property; and
882(B) attached only to facilitate the operation of the tangible personal property;
883(ii) a temporary detachment of tangible personal property from real property for a
884repair or renovation if the repair or renovation is performed where the tangible
885personal property and real property are located; or
886(iii) property attached to oil, gas, or water pipelines, except for the property listed in
887Subsection (93)(c)(iii) or (iv).
888      (c) "Permanently attached to real property" does not include:
889(i) the attachment of portable or movable tangible personal property to real property
890if that portable or movable tangible personal property is attached to real property
891only for:
892(A) convenience;
893(B) stability; or
894(C) for an obvious temporary purpose;
895(ii) the detachment of tangible personal property from real property except for the
896detachment described in Subsection (93)(b)(ii);
897(iii) an attachment of the following tangible personal property to real property if the
898attachment to real property is only through a line that supplies water, electricity,
899gas, telecommunications, cable, or supplies a similar item as determined by the
900commission by rule made in accordance with Title 63G, Chapter 3, Utah
901Administrative Rulemaking Act:
902(A) a computer;
903(B) a telephone;
904(C) a television; or
905(D) tangible personal property similar to Subsections (93)(c)(iii)(A) through (C)
906as determined by the commission by rule made in accordance with Title 63G,
907Chapter 3, Utah Administrative Rulemaking Act; or
908(iv) an item listed in Subsection [(139)(c)] (140)(c).
909  (94) "Person" includes any individual, firm, partnership, joint venture, association,
910      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
911      municipality, district, or other local governmental entity of the state, or any group or
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912combination acting as a unit.
913   (95) "Place of primary use":
914(a) for telecommunications service other than mobile telecommunications service,
915means the street address representative of where the customer's use of the
916telecommunications service primarily occurs, which shall be:
917(i) the residential street address of the customer; or
918(ii) the primary business street address of the customer; or
919(b) for mobile telecommunications service, means the same as that term is defined in the
920Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
921   (96)(a) "Postpaid calling service" means a telecommunications service a person obtains
922by making a payment on a call-by-call basis:
923(i) through the use of a:
924(A) bank card;
925(B) credit card;
926(C) debit card; or
927(D) travel card; or
928(ii) by a charge made to a telephone number that is not associated with the origination
929or termination of the telecommunications service.
930(b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
931service, that would be a prepaid wireless calling service if the service were
932exclusively a telecommunications service.
933   (97) "Postproduction" means an activity related to the finishing or duplication of a medium
934described in Subsection 59-12-104(54)(a).
935   (98) "Prepaid calling service" means a telecommunications service:
936(a) that allows a purchaser access to telecommunications service that is exclusively
937telecommunications service;
938(b) that:
939(i) is paid for in advance; and
940(ii) enables the origination of a call using an:
941(A) access number; or
942(B) authorization code;
943(c) that is dialed:
944(i) manually; or
945(ii) electronically; and
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946      (d) sold in predetermined units or dollars that decline:
947(i) by a known amount; and
948(ii) with use.
949  (99) "Prepaid wireless calling service" means a telecommunications service:
950      (a) that provides the right to utilize:
951(i) mobile wireless service; and
952(ii) other service that is not a telecommunications service, including:
953(A) the download of a product transferred electronically;
954(B) a content service; or
955(C) an ancillary service;
956      (b) that:
957(i) is paid for in advance; and
958(ii) enables the origination of a call using an:
959(A) access number; or
960(B) authorization code;
961      (c) that is dialed:
962(i) manually; or
963(ii) electronically; and
964      (d) sold in predetermined units or dollars that decline:
965(i) by a known amount; and
966(ii) with use.
967  (100)(a) "Prepared food" means:
968(i) food:
969(A) sold in a heated state; or
970(B) heated by a seller;
971(ii) two or more food ingredients mixed or combined by the seller for sale as a single
972item; or
973(iii) except as provided in Subsection (100)(c), food sold with an eating utensil
974provided by the seller, including a:
975(A) plate;
976(B) knife;
977(C) fork;
978(D) spoon;
979(E) glass;
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980(F) cup;
981(G) napkin; or
982(H) straw.
983(b) "Prepared food" does not include:
984(i) food that a seller only:
985(A) cuts;
986(B) repackages; or
987(C) pasteurizes;
988(ii)(A) the following:
989(I) raw egg;
990(II) raw fish;
991(III) raw meat;
992(IV) raw poultry; or
993(V) a food containing an item described in Subsections (100)(b)(ii)(A)(I)
994through (IV); and
995(B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of
996the Food and Drug Administration's Food Code that a consumer cook the items
997described in Subsection (100)(b)(ii)(A) to prevent food borne illness; or
998(iii) the following if sold without eating utensils provided by the seller:
999(A) food and food ingredients sold by a seller if the seller's proper primary
1000  classification under the 2002 North American Industry Classification System
1001  of the federal Executive Office of the President, Office of Management and
1002  Budget, is manufacturing in Sector 311, Food Manufacturing, except for
1003  Subsector 3118, Bakeries and Tortilla Manufacturing;
1004  (B) food and food ingredients sold in an unheated state:
1005  (I) by weight or volume; and
1006  (II) as a single item; or
1007  (C) a bakery item, including:
1008  (I) a bagel;
1009  (II) a bar;
1010  (III) a biscuit;
1011  (IV) bread;
1012  (V) a bun;
1013  (VI) a cake;
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1014  (VII) a cookie;
1015  (VIII) a croissant;
1016  (IX) a danish;
1017  (X) a donut;
1018  (XI) a muffin;
1019  (XII) a pastry;
1020  (XIII) a pie;
1021  (XIV) a roll;
1022  (XV) a tart;
1023  (XVI) a torte; or
1024  (XVII) a tortilla.
1025        (c) An eating utensil provided by the seller does not include the following used to
1026  transport the food:
1027  (i) a container; or
1028  (ii) packaging.
1029    (101) "Prescription" means an order, formula, or recipe that is issued:
1030        (a)(i) orally;
1031  (ii) in writing;
1032  (iii) electronically; or
1033  (iv) by any other manner of transmission; and
1034        (b) by a licensed practitioner authorized by the laws of a state.
1035    (102)(a) "Prewritten computer software" means computer software that is not designed
1036        and developed:
1037  (i) by the author or other creator of the computer software; and
1038  (ii) to the specifications of a specific purchaser.
1039        (b) "Prewritten computer software" includes:
1040  (i) a prewritten upgrade to computer software if the prewritten upgrade to the
1041  computer software is not designed and developed:
1042  (A) by the author or other creator of the computer software; and
1043  (B) to the specifications of a specific purchaser;
1044  (ii) computer software designed and developed by the author or other creator of the
1045  computer software to the specifications of a specific purchaser if the computer
1046  software is sold to a person other than the purchaser; or
1047  (iii) except as provided in Subsection (102)(c), prewritten computer software or a
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1048  prewritten portion of prewritten computer software:
1049  (A) that is modified or enhanced to any degree; and
1050  (B) if the modification or enhancement described in Subsection (102)(b)(iii)(A) is
1051  designed and developed to the specifications of a specific purchaser.
1052  (c) "Prewritten computer software" does not include a modification or enhancement
1053  described in Subsection (102)(b)(iii) if the charges for the modification or
1054  enhancement are:
1055  (i) reasonable; and
1056  (ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), separately stated on the
1057  invoice or other statement of price provided to the purchaser at the time of sale or
1058  later, as demonstrated by:
1059  (A) the books and records the seller keeps at the time of the transaction in the
1060  regular course of business, including books and records the seller keeps at the
1061  time of the transaction in the regular course of business for nontax purposes;
1062  (B) a preponderance of the facts and circumstances at the time of the transaction;
1063  and
1064  (C) the understanding of all of the parties to the transaction.
1065     (103)(a) "Private communications service" means a telecommunications service:
1066  (i) that entitles a customer to exclusive or priority use of one or more
1067  communications channels between or among termination points; and
1068  (ii) regardless of the manner in which the one or more communications channels are
1069  connected.
1070  (b) "Private communications service" includes the following provided in connection
1071  with the use of one or more communications channels:
1072  (i) an extension line;
1073  (ii) a station;
1074  (iii) switching capacity; or
1075  (iv) another associated service that is provided in connection with the use of one or
1076  more communications channels as defined in Section 59-12-215.
1077     (104)(a) "Product transferred electronically" means a product transferred electronically
1078  that would be subject to a tax under this chapter if that product was transferred in a
1079  manner other than electronically.
1080  (b) "Product transferred electronically" does not include:
1081  (i) an ancillary service;
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1082  (ii) computer software; or
1083  (iii) a telecommunications service.
1084    (105)(a) "Prosthetic device" means a device that is worn on or in the body to:
1085  (i) artificially replace a missing portion of the body;
1086  (ii) prevent or correct a physical deformity or physical malfunction; or
1087  (iii) support a weak or deformed portion of the body.
1088        (b) "Prosthetic device" includes:
1089  (i) parts used in the repairs or renovation of a prosthetic device;
1090  (ii) replacement parts for a prosthetic device;
1091  (iii) a dental prosthesis; or
1092  (iv) a hearing aid.
1093        (c) "Prosthetic device" does not include:
1094  (i) corrective eyeglasses; or
1095  (ii) contact lenses.
1096    (106)(a) "Protective equipment" means an item:
1097  (i) for human wear; and
1098  (ii) that is:
1099  (A) designed as protection:
1100  (I) to the wearer against injury or disease; or
1101  (II) against damage or injury of other persons or property; and
1102  (B) not suitable for general use.
1103        (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1104  commission shall make rules:
1105  (i) listing the items that constitute "protective equipment"; and
1106  (ii) that are consistent with the list of items that constitute "protective equipment"
1107  under the agreement.
1108    (107)(a) For purposes of Subsection 59-12-104(41), "publication" means any written or
1109        printed matter, other than a photocopy:
1110  (i) regardless of:
1111  (A) characteristics;
1112  (B) copyright;
1113  (C) form;
1114  (D) format;
1115  (E) method of reproduction; or
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1116  (F) source; and
1117  (ii) made available in printed or electronic format.
1118  (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1119  commission may by rule define the term "photocopy."
1120     (108)(a) "Purchase price" and "sales price" mean the total amount of consideration:
1121  (i) valued in money; and
1122  (ii) for which tangible personal property, a product transferred electronically, or
1123  services are:
1124  (A) sold;
1125  (B) leased; or
1126  (C) rented.
1127  (b) "Purchase price" and "sales price" include:
1128  (i) the seller's cost of the tangible personal property, a product transferred
1129  electronically, or services sold;
1130  (ii) expenses of the seller, including:
1131  (A) the cost of materials used;
1132  (B) a labor cost;
1133  (C) a service cost;
1134  (D) interest;
1135  (E) a loss;
1136  (F) the cost of transportation to the seller; or
1137  (G) a tax imposed on the seller;
1138  (iii) a charge by the seller for any service necessary to complete the sale; or
1139  (iv) consideration a seller receives from a person other than the purchaser if:
1140  (A)(I) the seller actually receives consideration from a person other than the
1141  purchaser; and
1142  (II) the consideration described in Subsection (108)(b)(iv)(A)(I) is directly
1143  related to a price reduction or discount on the sale;
1144  (B) the seller has an obligation to pass the price reduction or discount through to
1145  the purchaser;
1146  (C) the amount of the consideration attributable to the sale is fixed and
1147  determinable by the seller at the time of the sale to the purchaser; and
1148  (D)(I)(Aa) the purchaser presents a certificate, coupon, or other
1149  documentation to the seller to claim a price reduction or discount; and
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1150  (Bb) a person other than the seller authorizes, distributes, or grants the
1151  certificate, coupon, or other documentation with the understanding that
1152  the person other than the seller will reimburse any seller to whom the
1153  certificate, coupon, or other documentation is presented;
1154  (II) the purchaser identifies that purchaser to the seller as a member of a group
1155  or organization allowed a price reduction or discount, except that a
1156  preferred customer card that is available to any patron of a seller does not
1157  constitute membership in a group or organization allowed a price reduction
1158  or discount; or
1159  (III) the price reduction or discount is identified as a third party price reduction
1160  or discount on the:
1161  (Aa) invoice the purchaser receives; or
1162  (Bb) certificate, coupon, or other documentation the purchaser presents.
1163        (c) "Purchase price" and "sales price" do not include:
1164  (i) a discount:
1165  (A) in a form including:
1166  (I) cash;
1167  (II) term; or
1168  (III) coupon;
1169  (B) that is allowed by a seller;
1170  (C) taken by a purchaser on a sale; and
1171  (D) that is not reimbursed by a third party; or
1172  (ii) subject to Subsections 59-12-103(2)(f)(ii) and (2)(g)(i), the following if
1173  separately stated on an invoice, bill of sale, or similar document provided to the
1174  purchaser at the time of sale or later, as demonstrated by the books and records the
1175  seller keeps at the time of the transaction in the regular course of business,
1176  including books and records the seller keeps at the time of the transaction in the
1177  regular course of business for nontax purposes, by a preponderance of the facts
1178  and circumstances at the time of the transaction, and by the understanding of all of
1179  the parties to the transaction:
1180  (A) the following from credit extended on the sale of tangible personal property or
1181  services:
1182  (I) a carrying charge;
1183  (II) a financing charge; or
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1184  (III) an interest charge;
1185  (B) a delivery charge;
1186  (C) an installation charge;
1187  (D) a manufacturer rebate on a motor vehicle; or
1188  (E) a tax or fee legally imposed directly on the consumer.
1189     (109) "Purchaser" means a person to whom:
1190  (a) a sale of tangible personal property is made;
1191  (b) a product is transferred electronically; or
1192  (c) a service is furnished.
1193     (110) "Qualifying data center" means a data center facility that:
1194  (a) houses a group of networked server computers in one physical location in order to
1195  disseminate, manage, and store data and information;
1196  (b) is located in the state;
1197  (c) is a new operation constructed on or after July 1, 2016;
1198  (d) consists of one or more buildings that total 150,000 or more square feet;
1199  (e) is owned or leased by:
1200  (i) the operator of the data center facility; or
1201  (ii) a person under common ownership, as defined in Section 59-7-101, of the
1202  operator of the data center facility; and
1203  (f) is located on one or more parcels of land that are owned or leased by:
1204  (i) the operator of the data center facility; or
1205  (ii) a person under common ownership, as defined in Section 59-7-101, of the
1206  operator of the data center facility.
1207     (111) "Qualifying energy storage manufacturing facility" means a facility that
1208  manufactures, in the state, equipment or devices that store and discharge energy for the
1209  purpose of providing electrical power.
1210     (112) "Regularly rented" means:
1211  (a) rented to a guest for value three or more times during a calendar year; or
1212  (b) advertised or held out to the public as a place that is regularly rented to guests for
1213  value.
1214     (113) "Rental" means the same as that term is defined in Subsection (64).
1215     (114)(a) "Repairs or renovations of tangible personal property" means:
1216  (i) a repair or renovation of tangible personal property that is not permanently
1217  attached to real property; or
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1218  (ii) attaching tangible personal property or a product transferred electronically to
1219  other tangible personal property or detaching tangible personal property or a
1220  product transferred electronically from other tangible personal property if:
1221  (A) the other tangible personal property to which the tangible personal property or
1222  product transferred electronically is attached or from which the tangible
1223  personal property or product transferred electronically is detached is not
1224  permanently attached to real property; and
1225  (B) the attachment of tangible personal property or a product transferred
1226  electronically to other tangible personal property or detachment of tangible
1227  personal property or a product transferred electronically from other tangible
1228  personal property is made in conjunction with a repair or replacement of
1229  tangible personal property or a product transferred electronically.
1230        (b) "Repairs or renovations of tangible personal property" does not include:
1231  (i) attaching prewritten computer software to other tangible personal property if the
1232  other tangible personal property to which the prewritten computer software is
1233  attached is not permanently attached to real property; or
1234  (ii) detaching prewritten computer software from other tangible personal property if
1235  the other tangible personal property from which the prewritten computer software
1236  is detached is not permanently attached to real property.
1237    (115) "Research and development" means the process of inquiry or experimentation aimed
1238        at the discovery of facts, devices, technologies, or applications and the process of
1239        preparing those devices, technologies, or applications for marketing.
1240    (116)(a) "Residential telecommunications services" means a telecommunications service
1241        or an ancillary service that is provided to an individual for personal use:
1242  (i) at a residential address; or
1243  (ii) at an institution, including a nursing home or a school, if the telecommunications
1244  service or ancillary service is provided to and paid for by the individual residing at
1245  the institution rather than the institution.
1246        (b) For purposes of Subsection (116)(a)(i), a residential address includes an:
1247  (i) apartment; or
1248  (ii) other individual dwelling unit.
1249    (117) "Residential use" means the use in or around a home, apartment building, sleeping
1250        quarters, and similar facilities or accommodations.
1251    (118) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other than:
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1252  (a) resale;
1253  (b) sublease; or
1254  (c) subrent.
1255     (119)(a) "Retailer" means any person, unless prohibited by the Constitution of the
1256  United States or federal law, that is engaged in a regularly organized business in
1257  tangible personal property or any other taxable transaction under Subsection
1258  59-12-103(1), and who is selling to the user or consumer and not for resale.
1259  (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1260  engaged in the business of selling to users or consumers within the state.
1261     (120)(a) "Sale" means any transfer of title, exchange, or barter, conditional or otherwise,
1262  in any manner, of tangible personal property or any other taxable transaction under
1263  Subsection 59-12-103(1), for consideration.
1264  (b) "Sale" includes:
1265  (i) installment and credit sales;
1266  (ii) any closed transaction constituting a sale;
1267  (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1268  chapter;
1269  (iv) any transaction if the possession of property is transferred but the seller retains
1270  the title as security for the payment of the price; and
1271  (v) any transaction under which right to possession, operation, or use of any article of
1272  tangible personal property is granted under a lease or contract and the transfer of
1273  possession would be taxable if an outright sale were made.
1274     (121) "Sale at retail" means the same as that term is defined in Subsection (118).
1275     (122) "Sale-leaseback transaction" means a transaction by which title to tangible personal
1276  property or a product transferred electronically that is subject to a tax under this chapter
1277  is transferred:
1278  (a) by a purchaser-lessee;
1279  (b) to a lessor;
1280  (c) for consideration; and
1281  (d) if:
1282  (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial
1283  purchase of the tangible personal property or product transferred electronically;
1284  (ii) the sale of the tangible personal property or product transferred electronically to
1285  the lessor is intended as a form of financing:
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1286  (A) for the tangible personal property or product transferred electronically; and
1287  (B) to the purchaser-lessee; and
1288  (iii) in accordance with generally accepted accounting principles, the
1289  purchaser-lessee is required to:
1290  (A) capitalize the tangible personal property or product transferred electronically
1291  for financial reporting purposes; and
1292  (B) account for the lease payments as payments made under a financing
1293  arrangement.
1294    (123) "Sales price" means the same as that term is defined in Subsection (108).
1295    (124)(a) "Sales relating to schools" means the following sales by, amounts paid to, or
1296        amounts charged by a school:
1297  (i) sales that are directly related to the school's educational functions or activities
1298  including:
1299  (A) the sale of:
1300  (I) textbooks;
1301  (II) textbook fees;
1302  (III) laboratory fees;
1303  (IV) laboratory supplies; or
1304  (V) safety equipment;
1305  (B) the sale of a uniform, protective equipment, or sports or recreational
1306  equipment that:
1307  (I) a student is specifically required to wear as a condition of participation in a
1308  school-related event or school-related activity; and
1309  (II) is not readily adaptable to general or continued usage to the extent that it
1310  takes the place of ordinary clothing;
1311  (C) sales of the following if the net or gross revenue generated by the sales is
1312  deposited into a school district fund or school fund dedicated to school meals:
1313  (I) food and food ingredients; or
1314  (II) prepared food; or
1315  (D) transportation charges for official school activities; or
1316  (ii) amounts paid to or amounts charged by a school for admission to a school-related
1317  event or school-related activity.
1318        (b) "Sales relating to schools" does not include:
1319  (i) bookstore sales of items that are not educational materials or supplies;
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1320  (ii) except as provided in Subsection (124)(a)(i)(B):
1321  (A) clothing;
1322  (B) clothing accessories or equipment;
1323  (C) protective equipment; or
1324  (D) sports or recreational equipment; or
1325  (iii) amounts paid to or amounts charged by a school for admission to a
1326  school-related event or school-related activity if the amounts paid or charged are
1327  passed through to a person:
1328  (A) other than a:
1329  (I) school;
1330  (II) nonprofit organization authorized by a school board or a governing body of
1331  a private school to organize and direct a competitive secondary school
1332  activity; or
1333  (III) nonprofit association authorized by a school board or a governing body of
1334  a private school to organize and direct a competitive secondary school
1335  activity; and
1336  (B) that is required to collect sales and use taxes under this chapter.
1337  (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1338  commission may make rules defining the term "passed through."
1339     (125) For purposes of this section and Section 59-12-104, "school" means:
1340  (a) an elementary school or a secondary school that:
1341  (i) is a:
1342  (A) public school; or
1343  (B) private school; and
1344  (ii) provides instruction for one or more grades kindergarten through 12; or
1345  (b) a public school district.
1346     (126)(a) "Seller" means a person that makes a sale, lease, or rental of:
1347  (i) tangible personal property;
1348  (ii) a product transferred electronically; or
1349  (iii) a service.
1350  (b) "Seller" includes a marketplace facilitator.
1351     (127) "Seller-hosted prewritten computer software" means prewritten computer software
1352  that is accessed through the internet or a seller-hosted server, regardless of whether:
1353  (a) the access is permanent; or
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1354        (b) any downloading occurs.
1355    [(127)] (128)(a) "Semiconductor fabricating, processing, research, or development
1356        materials" means tangible personal property or a product transferred electronically if
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 [(127)(a)] (128)(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    [(128)] (129) "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    [(129)] (130) "Shared vehicle" means the same as that term is defined in Section 13-48a-101.
1385    [(130)] (131) "Shared vehicle driver" means the same as that term is defined in Section
1386        13-48a-101.
1387    [(131)] (132) "Shared vehicle owner" means the same as that term is defined in Section
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1388  13-48a-101.
1389     [(132)] (133)(a) Subject to Subsections [(132)(b)] (133)(b) and (c), "short-term lodging
1390  consumable" means tangible personal property that:
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;
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1422  (xxiii) toilet paper;
1423  (xxiv) a toothbrush;
1424  (xxv) toothpaste; or
1425  (xxvi) an item similar to Subsections [(132)(b)(i)] (133)(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    [(133)] (134)(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    [(134)] (135) "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    [(135)] (136) "Solar energy" means the sun used as the sole source of energy for producing
1439        electricity.
1440    [(136)] (137)(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    [(137)] (138) "State" means the state of Utah, its departments, and agencies.
1453    [(138)] (139) "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.
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1456     [(139)] (140)(a) "Tangible personal property" means personal property that:
1457  (i) may be:
1458  (A) seen;
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 [(139)(c)(i)] (140)(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:
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1490  (i) a hot water heater;
1491  (ii) a water filtration system; or
1492  (iii) a water softener system.
1493    [(140)] (141)(a) "Telecommunications enabling or facilitating equipment, machinery, or
1494        software" means an item listed in Subsection [(140)(b)] (141)(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 [(140)(a)] (141)(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 [(140)(b)(i)] (141)(b)(i) through (vi) as determined by the commission
1508  by rule made in accordance with Subsection [(140)(c)] (141)(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 [(140)(b)(i)] (141)(b)(i)
1512  through (vi).
1513    [(141)] (142) "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    [(142)] (143) "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.
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1524     [(143)] (144)(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.
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;
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1558  (v) installation or maintenance of the following on a customer's premises:
1559  (A) equipment; or
1560  (B) wiring;
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    [(144)] (145)(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 [(144)(a)(i)] (145)(a)(i) for the
1582  shared use with or resale to any person of the telecommunications service.
1583        (b) A person described in Subsection [(144)(a)] (145)(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    [(145)] (146)(a) "Telecommunications switching or routing equipment, machinery, or
1589        software" means an item listed in Subsection [(145)(b)] (146)(b) if that item is
1590        purchased or leased primarily for switching or routing:
1591  (i) an ancillary service;
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1592  (ii) data communications;
1593  (iii) voice communications; or
1594  (iv) telecommunications service.
1595  (b) The following apply to Subsection [(145)(a)] (146)(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 [(145)(b)(i)] (146)(b)(i) through (ix) as determined by the commission
1607  by rule made in accordance with Subsection [(145)(c)] (146)(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 [(145)(b)(i)] (146)(b)(i)
1611  through (ix).
1612     [(146)] (147)(a) "Telecommunications transmission equipment, machinery, or software"
1613  means an item listed in Subsection [(146)(b)] (147)(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 [(146)(a)] (147)(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;
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1626  (vii) a filter;
1627  (viii) an input device;
1628  (ix) an input/output device;
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 [(146)(b)(i)] (147)(b)(i) through (xxv) as the commission determines
1647  by rule made in accordance with Subsection [(146)(c)] (147)(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 [(146)(b)(i)] (147)(b)(i)
1651  through (xxv).
1652    [(147)] (148)(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    [(148)] (149) "Tobacco" means:
1658        (a) a cigarette;
1659        (b) a cigar;
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1660  (c) chewing tobacco;
1661  (d) pipe tobacco; or
1662  (e) any other item that contains tobacco.
1663     [(149)] (150) "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     [(150)] (151)(a) "Use" means the exercise of any right or power over tangible personal
1667  property, a product transferred electronically, or a service under Subsection
1668  59-12-103(1), incident to the ownership or the leasing of that tangible personal
1669  property, 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     [(151)] (152) "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     [(152)] (153)(a) Subject to Subsection [(152)(b)] (153)(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 [(152)(a)] (153)(a); or
1691  (ii)(A) a locomotive;
1692  (B) a freight car;
1693  (C) railroad work equipment; or
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1694  (D) other railroad rolling stock.
1695    [(153)] (154) "Vehicle dealer" means a person engaged in the business of buying, selling, or
1696        exchanging a vehicle as defined in Subsection [(152)] (153).
1697    [(154)] (155)(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    [(155)] (156)(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    [(156)] (157)(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    [(157)] (158) "Watercraft" means a vessel as defined in Section 73-18-2.
1720    [(158)] (159) "Wind energy" means wind used as the sole source of energy to produce
1721        electricity.
1722    [(159)] (160) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
1723        location by the United States Postal Service.
1724  Section 2. Section 59-12-103 is amended to read:
1725  59-12-103 . Sales and use tax base -- Rates -- Effective dates -- Use of sales and
1726    use tax revenue.
1727    (1) A tax is imposed on the purchaser as provided in this part on the purchase price or sales
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1728  price for amounts paid or charged for the following transactions:
1729  (a) retail sales of tangible personal property made within the state;
1730  (b) amounts paid for:
1731  (i) telecommunications service, other than mobile telecommunications service, that
1732  originates and terminates within the boundaries of this state;
1733  (ii) mobile telecommunications service that originates and terminates within the
1734  boundaries of one state only to the extent permitted by the Mobile
1735  Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
1736  (iii) an ancillary service associated with a:
1737  (A) telecommunications service described in Subsection (1)(b)(i); or
1738  (B) mobile telecommunications service described in Subsection (1)(b)(ii);
1739  (c) sales of the following for commercial use:
1740  (i) gas;
1741  (ii) electricity;
1742  (iii) heat;
1743  (iv) coal;
1744  (v) fuel oil; or
1745  (vi) other fuels;
1746  (d) sales of the following for residential use:
1747  (i) gas;
1748  (ii) electricity;
1749  (iii) heat;
1750  (iv) coal;
1751  (v) fuel oil; or
1752  (vi) other fuels;
1753  (e) sales of prepared food;
1754  (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
1755  user fees for theaters, movies, operas, museums, planetariums, shows of any type or
1756  nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses,
1757  menageries, fairs, races, contests, sporting events, dances, boxing matches, wrestling
1758  matches, closed circuit television broadcasts, billiard parlors, pool parlors, bowling
1759  lanes, golf, miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts,
1760  ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides,
1761  river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or
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1762  any other amusement, entertainment, recreation, exhibition, cultural, or athletic
1763  activity;
1764        (g) amounts paid or charged for services for repairs or renovations of tangible personal
1765  property, unless Section 59-12-104 provides for an exemption from sales and use tax
1766  for:
1767  (i) the tangible personal property; and
1768  (ii) parts used in the repairs or renovations of the tangible personal property described
1769  in Subsection (1)(g)(i), regardless of whether:
1770  (A) any parts are actually used in the repairs or renovations of that tangible
1771  personal property; or
1772  (B) the particular parts used in the repairs or renovations of that tangible personal
1773  property are exempt from a tax under this chapter;
1774        (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for assisted
1775  cleaning or washing of tangible personal property;
1776        (i) amounts paid or charged for short-term rentals of tourist home, hotel, motel, or trailer
1777  court accommodations and services;
1778        (j) amounts paid or charged for laundry or dry cleaning services;
1779        (k) amounts paid or charged for leases or rentals of tangible personal property if within
1780  this state the tangible personal property is:
1781  (i) stored;
1782  (ii) used; or
1783  (iii) otherwise consumed;
1784        (l) amounts paid or charged for tangible personal property if within this state the tangible
1785  personal property is:
1786  (i) stored;
1787  (ii) used; or
1788  (iii) consumed;
1789        (m) amounts paid or charged for a sale:
1790  (i)(A) of a product transferred electronically; or
1791  (B) of a repair or renovation of a product transferred electronically; and
1792  (ii) regardless of whether the sale provides:
1793  (A) a right of permanent use of the product; or
1794  (B) a right to use the product that is less than a permanent use, including a right:
1795  (I) for a definite or specified length of time; and
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1796  (II) that terminates upon the occurrence of a condition;[ and]
1797  (n) sales of leased tangible personal property from the lessor to the lessee made in the
1798  state[.] ;
1799  (o) amounts paid or charged for access to digital audio-visual works, digital audio
1800  works, digital books, or gaming services, including the streaming of or subscription
1801  for access to digital audio-visual works, digital audio works, digital books, or gaming
1802  services regardless of:
1803  (i) the delivery method; or
1804  (ii) whether the amount paid or charged for access provides a right to:
1805  (A) single-use access to the digital audio-visual works, digital audio works, digital
1806  books, or gaming services; or
1807  (B) access to the digital audio-visual works, digital audio works, digital books, or
1808  gaming services through a subscription, including a right that terminates upon
1809  the occurrence of a condition; and
1810  (p) amounts paid or charged for the storage, use, or other consumption of:
1811  (i) prewritten computer software delivered electronically or by load and leave; or
1812  (ii) seller-hosted prewritten computer software.
1813     (2)(a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax are
1814  imposed on a transaction described in Subsection (1) equal to the sum of:
1815  (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
1816  (A) 4.70%;
1817  (B) the rate specified in Subsection (6)(a); and
1818  (C) the tax rate the state imposes in accordance with Part 20, Supplemental State
1819  Sales and Use Tax Act, if the location of the transaction as determined under
1820  Sections 59-12-211 through 59-12-215 is in a city, town, or the unincorporated
1821  area of a county in which the state imposes the tax under Part 20, Supplemental
1822  State Sales and Use Tax Act; and
1823  (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1824  transaction under this chapter other than this part.
1825  (b) Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a state
1826  tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal
1827  to the sum of:
1828  (i) a state tax imposed on the transaction at a tax rate of 2%; and
1829  (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
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1830  transaction under this chapter other than this part.
1831        (c) Except as provided in Subsection (2)(f) or (g), a state tax and a local tax are imposed
1832  on amounts paid or charged for food and food ingredients equal to the sum of:
1833  (i) a state tax imposed on the amounts paid or charged for food and food ingredients
1834  at a tax rate of 1.75%; and
1835  (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1836  amounts paid or charged for food and food ingredients under this chapter other
1837  than this part.
1838        (d) Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts paid
1839  or charged for fuel to a common carrier that is a railroad for use in a locomotive
1840  engine at a rate equal to the sum of the rates described in Subsections (2)(a)(i)(A) and
1841  (2)(a)(i)(B).
1842        (e)(i)(A) The rates described in Subsections (2)(a)(i)(A) and (2)(a)(i)(B) do not
1843  apply to car sharing, a car sharing program, a shared vehicle driver, or a shared
1844  vehicle owner, for a car sharing or shared vehicle transaction if a shared
1845  vehicle owner certifies to the commission, on a form prescribed by the
1846  commission, that the shared vehicle is an individual-owned shared vehicle.
1847  (B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is
1848  required once during the time that the shared vehicle owner owns the shared
1849  vehicle.
1850  (C) The commission shall verify that a shared vehicle is an individual-owned
1851  shared vehicle by verifying that the applicable Utah taxes imposed under this
1852  chapter were paid on the purchase of the shared vehicle.
1853  (D) The exception under Subsection (2)(e)(i)(A) applies to a certified
1854  individual-owned shared vehicle shared through a car-sharing program even if
1855  non-certified shared vehicles are also available to be shared through the same
1856  car-sharing program.
1857  (ii) A tax imposed under Subsection (2)(a)(i)(C) or (2)(a)(ii) applies to car sharing.
1858  (iii)(A) A car-sharing program may rely in good faith on a shared vehicle owner's
1859  representation that the shared vehicle is an individual-owned shared vehicle
1860  certified with the commission as described in Subsection (2)(e)(i).
1861  (B) If a car-sharing program relies in good faith on a shared vehicle owner's
1862  representation that the shared vehicle is an individual-owned shared vehicle
1863  certified with the commission as described in Subsection (2)(e)(i), the
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1864  car-sharing program is not liable for any tax, penalty, fee, or other sanction
1865  imposed on the shared vehicle owner.
1866  (iv) If all shared vehicles shared through a car-sharing program are certified as
1867  described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has
1868  no obligation to collect and remit the tax under Subsections (2)(a)(i)(A) and
1869  (2)(a)(i)(B) for that tax period.
1870  (v) A car-sharing program is not required to list or otherwise identify an
1871  individual-owned shared vehicle on a return or an attachment to a return.
1872  (vi) A car-sharing program shall:
1873  (A) retain tax information for each car-sharing program transaction; and
1874  (B) provide the information described in Subsection (2)(e)(vi)(A) to the
1875  commission at the commission's request.
1876  (f)(i) For a bundled transaction that is attributable to food and food ingredients and
1877  tangible personal property other than food and food ingredients, a state tax and a
1878  local tax is imposed on the entire bundled transaction equal to the sum of:
1879  (A) the tax rates described in Subsection (2)(a)(i); and
1880  (B) a local tax imposed on the entire bundled transaction at the sum of the tax
1881  rates described in Subsection (2)(a)(ii).
1882  (ii) If an optional computer software maintenance contract is a bundled transaction
1883  that consists of taxable and nontaxable products that are not separately itemized
1884  on an invoice or similar billing document, the purchase of the optional computer
1885  software maintenance contract is 40% taxable under this chapter and 60%
1886  nontaxable under this chapter.
1887  (iii) Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled
1888  transaction described in Subsection (2)(f)(i) or (ii):
1889  (A) if the sales price of the bundled transaction is attributable to tangible personal
1890  property, a product, or a service that is subject to taxation under this chapter
1891  and tangible personal property, a product, or service that is not subject to
1892  taxation under this chapter, the entire bundled transaction is subject to taxation
1893  under this chapter unless:
1894  (I) the seller is able to identify by reasonable and verifiable standards the
1895  tangible personal property, product, or service that is not subject to taxation
1896  under this chapter from the books and records the seller keeps in the seller's
1897  regular course of business; or
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1898  (II) state or federal law provides otherwise; or
1899  (B) if the sales price of a bundled transaction is attributable to two or more items
1900  of tangible personal property, products, or services that are subject to taxation
1901  under this chapter at different rates, the entire bundled transaction is subject to
1902  taxation under this chapter at the higher tax rate unless:
1903  (I) the seller is able to identify by reasonable and verifiable standards the
1904  tangible personal property, product, or service that is subject to taxation
1905  under this chapter at the lower tax rate from the books and records the seller
1906  keeps in the seller's regular course of business; or
1907  (II) state or federal law provides otherwise.
1908  (iv) For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the
1909  seller's regular course of business includes books and records the seller keeps in
1910  the regular course of business for nontax purposes.
1911        (g)(i) Except as otherwise provided in this chapter and subject to Subsections
1912  (2)(g)(ii) and (iii), if a transaction consists of the sale, lease, or rental of tangible
1913  personal property, a product, or a service that is subject to taxation under this
1914  chapter, and the sale, lease, or rental of tangible personal property, other property,
1915  a product, or a service that is not subject to taxation under this chapter, the entire
1916  transaction is subject to taxation under this chapter unless the seller, at the time of
1917  the transaction:
1918  (A) separately states the portion of the transaction that is not subject to taxation
1919  under this chapter on an invoice, bill of sale, or similar document provided to
1920  the purchaser; or
1921  (B) is able to identify by reasonable and verifiable standards, from the books and
1922  records the seller keeps in the seller's regular course of business, the portion of
1923  the transaction that is not subject to taxation under this chapter.
1924  (ii) A purchaser and a seller may correct the taxability of a transaction if:
1925  (A) after the transaction occurs, the purchaser and the seller discover that the
1926  portion of the transaction that is not subject to taxation under this chapter was
1927  not separately stated on an invoice, bill of sale, or similar document provided
1928  to the purchaser because of an error or ignorance of the law; and
1929  (B) the seller is able to identify by reasonable and verifiable standards, from the
1930  books and records the seller keeps in the seller's regular course of business, the
1931  portion of the transaction that is not subject to taxation under this chapter.
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1932  (iii) For purposes of Subsections (2)(g)(i) and (ii), books and records that a seller
1933  keeps in the seller's regular course of business includes books and records the
1934  seller keeps in the regular course of business for nontax purposes.
1935  (h)(i) If the sales price of a transaction is attributable to two or more items of tangible
1936  personal property, products, or services that are subject to taxation under this
1937  chapter at different rates, the entire purchase is subject to taxation under this
1938  chapter at the higher tax rate unless the seller, at the time of the transaction:
1939  (A) separately states the items subject to taxation under this chapter at each of the
1940  different rates on an invoice, bill of sale, or similar document provided to the
1941  purchaser; or
1942  (B) is able to identify by reasonable and verifiable standards the tangible personal
1943  property, product, or service that is subject to taxation under this chapter at the
1944  lower tax rate from the books and records the seller keeps in the seller's regular
1945  course of business.
1946  (ii) For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the
1947  seller's regular course of business includes books and records the seller keeps in
1948  the regular course of business for nontax purposes.
1949  (i) Subject to Subsections (2)(j) and (k), a tax rate repeal or tax rate change for a tax rate
1950  imposed under the following shall take effect on the first day of a calendar quarter:
1951  (i) Subsection (2)(a)(i)(A);
1952  (ii) Subsection (2)(a)(i)(B);
1953  (iii) Subsection (2)(b)(i);
1954  (iv) Subsection (2)(c)(i); or
1955  (v) Subsection (2)(f)(i)(A).
1956  (j)(i) A tax rate increase takes effect on the first day of the first billing period that
1957  begins on or after the effective date of the tax rate increase if the billing period for
1958  the transaction begins before the effective date of a tax rate increase imposed
1959  under:
1960  (A) Subsection (2)(a)(i)(A);
1961  (B) Subsection (2)(a)(i)(B);
1962  (C) Subsection (2)(b)(i);
1963  (D) Subsection (2)(c)(i); or
1964  (E) Subsection (2)(f)(i)(A).
1965  (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
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1966  statement for the billing period is rendered on or after the effective date of the
1967  repeal of the tax or the tax rate decrease imposed under:
1968  (A) Subsection (2)(a)(i)(A);
1969  (B) Subsection (2)(a)(i)(B);
1970  (C) Subsection (2)(b)(i);
1971  (D) Subsection (2)(c)(i); or
1972  (E) Subsection (2)(f)(i)(A).
1973        (k)(i) For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale
1974  is computed on the basis of sales and use tax rates published in the catalogue, a
1975  tax rate repeal or change in a tax rate takes effect:
1976  (A) on the first day of a calendar quarter; and
1977  (B) beginning 60 days after the effective date of the tax rate repeal or tax rate
1978  change.
1979  (ii) Subsection (2)(k)(i) applies to the tax rates described in the following:
1980  (A) Subsection (2)(a)(i)(A);
1981  (B) Subsection (2)(a)(i)(B);
1982  (C) Subsection (2)(b)(i);
1983  (D) Subsection (2)(c)(i); or
1984  (E) Subsection (2)(f)(i)(A).
1985  (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1986  the commission may by rule define the term "catalogue sale."
1987        (l)(i) For a location described in Subsection (2)(l)(ii), the commission shall determine
1988  the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel
1989  based on the predominant use of the gas, electricity, heat, coal, fuel oil, or other
1990  fuel at the location.
1991  (ii) Subsection (2)(l)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
1992  or other fuel is furnished through a single meter for two or more of the following
1993  uses:
1994  (A) a commercial use;
1995  (B) an industrial use; or
1996  (C) a residential use.
1997    (3)(a) The commission shall deposit the following state taxes into the General Fund:
1998  (i) the tax imposed by Subsection (2)(a)(i)(A);
1999  (ii) the tax imposed by Subsection (2)(b)(i);
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2000  (iii) the tax imposed by Subsection (2)(c)(i);
2001  (iv) the tax imposed by Subsection (2)(d); and
2002  (v) the tax imposed by Subsection (2)(f)(i)(A).
2003  (b) The commission shall distribute the following local taxes to a county, city, or town
2004  as provided in this chapter:
2005  (i) the tax imposed by Subsection (2)(a)(ii);
2006  (ii) the tax imposed by Subsection (2)(b)(ii);
2007  (iii) the tax imposed by Subsection (2)(c)(ii); and
2008  (iv) the tax imposed by Subsection (2)(f)(i)(B).
2009     (4)(a) Notwithstanding Subsection (3)(a), for each fiscal year the commission shall make
2010  the deposits described in Subsections (4)(b) through (4)(h) from the revenue from the
2011  taxes imposed by:
2012  (i) Subsection (2)(a)(i)(A);
2013  (ii) Subsection (2)(b)(i);
2014  (iii) Subsection (2)(c)(i); and
2015  (iv) Subsection (2)(f)(i)(A).
2016  (b) The commission shall deposit 15% of the difference between 1.4543% of the
2017  revenue described in Subsection (4)(a) and the deposits made under Subsection (5)(b),
2018  into the Water Rights Restricted Account created in Section 73-2-1.6.
2019  (c) The commission shall deposit 85% of the difference between 1.4543% of the revenue
2020  described in Subsection (4)(a) and the deposits made under Subsection (5)(b), into
2021  the Water Resources Conservation and Development Fund created in Section
2022  73-10-24 for use by the Division of Water Resources for:
2023  (i) preconstruction costs:
2024  (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73,
2025  Chapter 26, Bear River Development Act; and
2026  (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
2027  authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
2028  (ii) the cost of employing a civil engineer to oversee any project authorized by Title
2029  73, Chapter 26, Bear River Development Act;
2030  (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline
2031  project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development
2032  Act; and
2033  (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
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2034  Subsection (5)(b)(iv)(B) after funding the uses specified in Subsections (4)(c)(i)
2035  through (iii).
2036        (d) The commission shall deposit 1.4543% of the revenue described in Subsection (4)(a)
2037  into the Water Infrastructure Restricted Account created in Section 73-10g-103.
2038        (e)(i) Subject to Subsection (4)(e)(ii), the commission shall deposit 26.24% of the
2039  revenue described in Subsection (4)(a) into the Transportation Investment Fund of
2040  2005 created in Section 72-2-124.
2041  (ii) The commission shall annually reduce the deposit described in Subsection
2042  (4)(e)(i) by the sum of:
2043  (A) $1,813,400;
2044  (B) the earmark described in Subsection (5)(c); and
2045  (C) an amount equal to 35% of the revenue generated in the current fiscal year by
2046  the portion of the tax imposed on motor and special fuel that is sold, used, or
2047  received in the state that exceeds 29.4 cents per gallon.
2048  (iii) The amount described in Subsection (4)(e)(ii)(C) shall be annually deposited into
2049  the Transit Transportation Investment Fund created in Section 72-2-124.
2050        (f) The commission shall deposit .44% of the revenue described in Subsection (4)(a) into
2051  the Cottonwood Canyons Transportation Investment Fund created in Section
2052  72-2-124.
2053        (g) The commission shall deposit 1% of the revenue described in Subsection (4)(a) into
2054  the Commuter Rail Subaccount created in Section 72-2-124.
2055        (h) The commission shall deposit 1% of the revenue described in Subsection (4)(a) into
2056  the Outdoor Adventure Infrastructure Restricted Account created in Section 51-9-902
2057  as follows:
2058  (i) into the Outdoor Adventure Infrastructure Restricted Account created in Section
2059  51-9-902, an amount equal to the amount that was deposited into the Outdoor
2060  Adventure Infrastructure Restricted Account in fiscal year 2025; and
2061  (ii) for any amount exceeding the amount described in Subsection (4)(h)(i), 50% into
2062  the Outdoor Adventure Infrastructure Restricted Account and 50% to the Utah
2063  Fairpark Area Investment and Restoration District created in Section 11-70-201.
2064    (5)(a) Notwithstanding Subsection (3)(a), each fiscal year the commission shall make
2065        the deposits described in this Subsection (5).
2066        (b)(i)(A) The commission shall deposit $500,000 to the Department of Natural
2067  Resources to be used for watershed rehabilitation or restoration.
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2068  (B) At the end of each fiscal year, 100% of any unexpended amount described in
2069  Subsection (5)(b)(i)(A) shall lapse into the Water Resources Conservation and
2070  Development Fund created in Section 73-10-24.
2071  (ii) The commission shall deposit $150,000 to the Division of Water Resources for
2072  cloud-seeding projects authorized by Title 73, Chapter 15, Modification of
2073  Weather.
2074  (iii) The commission shall deposit $525,000 into the Division of Conservation
2075  created in Section 4-46-401 to implement water related programs.
2076  (iv) The commission shall deposit $7,175,000 into the Water Resources Conservation
2077  and Development Fund created in Section 73-10-24 for use by the Division of
2078  Water Resources:
2079  (A) for the uses allowed of the Water Resources Conservation and Development
2080  Fund under Section 73-10-24;
2081  (B) to conduct hydrologic and geotechnical investigations by the Division of
2082  Water Resources in a cooperative effort with other state, federal, or local
2083  entities, for the purpose of quantifying surface and ground water resources and
2084  describing the hydrologic systems of an area in sufficient detail so as to enable
2085  local and state resource managers to plan for and accommodate growth in
2086  water use without jeopardizing the resource;
2087  (C) to fund state required dam safety improvements; and
2088  (D) to protect the state's interest in interstate water compact allocations, including
2089  the hiring of technical and legal staff.
2090  (v) The commission shall deposit $3,587,500 into the Utah Wastewater Loan
2091  Program Subaccount created in Section 73-10c-5 for use by the Water Quality
2092  Board to fund wastewater projects.
2093  (vi) The commission shall deposit $3,587,500 into the Drinking Water Loan Program
2094  Subaccount created in Section 73-10c-5 for use by the Division of Drinking Water
2095  to:
2096  (A) provide for the installation and repair of collection, treatment, storage, and
2097  distribution facilities for any public water system, as defined in Section
2098  19-4-102;
2099  (B) develop underground sources of water, including springs and wells; and
2100  (C) develop surface water sources.
2101  (vii) The commission shall deposit $2,450,000 to the Division of Wildlife Resources
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2102  to:
2103  (A) implement the measures described in Subsections 23A-3-214(3)(a) through
2104  (d) to protect sensitive plant and animal species; or
2105  (B) award grants, up to the amount authorized by the Legislature in an
2106  appropriations act, to political subdivisions of the state to implement the
2107  measures described in Subsections 23A-3-214(3)(a) through (d) to protect
2108  sensitive plant and animal species.
2109  (viii) Funds transferred to the Division of Wildlife Resources under Subsection
2110  (5)(b)(vii)(A) may not be used to assist the United States Fish and Wildlife
2111  Service or any other person to list or attempt to have listed a species as threatened
2112  or endangered under the Endangered Species Act of 1973, 16 U.S.C. Sec. 1531, et
2113  seq.
2114  (ix) At the end of each fiscal year, any unexpended amounts described in Subsections
2115  (5)(b)(vii)(A) and (B) shall lapse:
2116  (A) 50% into the Water Resources Conservation and Development Fund created
2117  in Section 73-10-24;
2118  (B) 25% into the Utah Wastewater Loan Program Subaccount created in Section
2119  73-10c-5; and
2120  (C) 25% into the Drinking Water Loan Program Subaccount created in Section
2121  73-10c-5.
2122  (x) The commission shall allocate $175,000 to the Division of Water Rights to cover
2123  the costs incurred in hiring legal and technical staff for the adjudication of water
2124  rights.
2125  (xi) At the end of each fiscal year, any unexpended amounts described in Subsection
2126  (5)(b)(x) shall lapse:
2127  (A) 50% into the Water Resources Conservation and Development Fund created
2128  in Section 73-10-24;
2129  (B) 25% into the Utah Wastewater Loan Program Subaccount created in Section
2130  73-10c-5; and
2131  (C) 25% into the Drinking Water Loan Program Subaccount created in Section
2132  73-10c-5.
2133        (c) The commission shall deposit $45,000,000 into the Active Transportation Investment
2134  Fund created in Section 72-2-124.
2135        (d) The commission shall deposit $533,750 into the Qualified Emergency Food
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2136  Agencies Fund created by and expended in accordance with Section 35A-8-1009.
2137  (e) The commission shall deposit $200,000 into the General Fund as a dedicated credit
2138  for the sole use of the Search and Rescue Financial Assistance Program created by
2139  and to be expended in accordance with Title 53, Chapter 2a, Part 11, Search and
2140  Rescue Act.
2141     (6)(a) The rate specified in this Subsection (6) is 0.15%.
2142  (b) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year beginning
2143  on or after July 1, 2019, annually transfer the amount of revenue collected from the
2144  rate described in Subsection (6)(a) on the transactions that are subject to the sales and
2145  use tax under Subsection (2)(a)(i)(B) into the Medicaid ACA Fund created in Section
2146  26B-1-315.
2147     (7)(a) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11),
2148  (12), and (13), and as described in Section 63N-3-610, beginning the first day of a
2149  calendar quarter one year after the sales and use tax boundary for a housing and
2150  transit reinvestment zone is established under Title 63N, Chapter 3, Part 6, Housing
2151  and Transit Reinvestment Zone Act, the commission, at least annually, shall transfer
2152  an amount equal to 15% of the sales and use tax increment from the sales and use tax
2153  imposed by Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring within
2154  an established sales and use tax boundary, as defined in Section 63N-3-602, into the
2155  Transit Transportation Investment Fund created in Section 72-2-124.
2156  (b) Beginning no sooner than January 1, 2026, notwithstanding Subsection (3)(a), and
2157  except as provided in Subsections (11), (12), and (13), and as described in Section
2158  63N-3-610.1, beginning the first day of a calendar quarter after the year set in the
2159  proposal and after the sales and use tax boundary for a convention center
2160  reinvestment zone is established in a capital city under Title 63N, Chapter 3, Part 6,
2161  Housing and Transit Reinvestment Zone Act, the commission, at least annually, shall
2162  transfer an amount equal to 50% of the sales and use tax increment as defined in
2163  Section 63N-3-602 from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a
2164  4.7% rate, on transactions occurring within an established sales and use tax boundary,
2165  as defined in Section 63N-3-602, to a convention center public infrastructure district
2166  created in accordance with Section 17D-4-202.1 and specified in the convention
2167  center reinvestment zone proposal submitted [pursuant to] in accordance with Title
2168  63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
2169     (8) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11), (12), and
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2170        (13), beginning October 1, 2024 the commission shall transfer to the Utah Fairpark Area
2171        Investment and Restoration District, created in Section 11-70-201, the revenue from the
2172        sales and use tax imposed by Subsection (2)(a)(i)(A), on transactions occurring within
2173        the district sales tax area, as defined in Section 11-70-101.
2174    (9)(a) As used in this Subsection (9):
2175  (i) "Additional land" means point of the mountain state land described in Subsection
2176  11-59-102(6)(b) that the point of the mountain authority acquires after the point of
2177  the mountain authority provides the commission a map under Subsection (9)(c).
2178  (ii) "Point of the mountain authority" means the Point of the Mountain State Land
2179  Authority, created in Section 11-59-201.
2180  (iii) "Point of the mountain state land" means the same as that term is defined in
2181  Section 11-59-102.
2182        (b) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11), (12),
2183  and (13), the commission shall distribute to the point of the mountain authority 50%
2184  of the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A), on
2185  transactions occurring on the point of the mountain state land.
2186        (c) The distribution under Subsection (9)(b) shall begin the next calendar quarter that
2187  begins at least 90 days after the point of the mountain authority provides the
2188  commission a map that:
2189  (i) accurately describes the point of the mountain state land; and
2190  (ii) the point of the mountain authority certifies as accurate.
2191        (d) A distribution under Subsection (9)(b) with respect to additional land shall begin the
2192  next calendar quarter that begins at least 90 days after the point of the mountain
2193  authority provides the commission a map of point of the mountain state land that:
2194  (i) accurately describes the point of the mountain state land, including the additional
2195  land; and
2196  (ii) the point of the mountain authority certifies as accurate.
2197        (e)(i) Upon the payment in full of bonds secured by the sales and use tax revenue
2198  distributed to the point of the mountain authority under Subsection (9)(b), the
2199  point of the mountain authority shall immediately notify the commission in
2200  writing that the bonds are paid in full.
2201  (ii) The commission shall discontinue distributions of sales and use tax revenue under
2202  Subsection (9)(b) at the beginning of the calendar quarter that begins at least 90
2203  days after the date that the commission receives the written notice under
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2204  Subsection (9)(e)(i).
2205     (10) Notwithstanding Subsection (3)(a), the amount of state sales tax revenues described in
2206  Section 63N-2-503.5 is deposited into the Convention Incentive Fund created in Section
2207  63N-2-503.5.
2208     (11)(a) As used in this Subsection (11):
2209  (i) "Applicable percentage" means:
2210  (A) for a housing and transit reinvestment zone created under Title 63N, Chapter
2211  3, Part 6, Housing and Transit Reinvestment Zone Act, 15% of the revenue
2212  from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate
2213  for sales occurring within the qualified development zone described in
2214  Subsection (11)(a)(ii)(A);
2215  (B) for the Utah Fairpark Area Investment and Restoration District created in
2216  Section 11-70-201, the revenue from the sales and use tax imposed by
2217  Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified
2218  development zone described in Subsection (11)(a)(ii)(B); and
2219  (C) for the Point of the Mountain State Land Authority created in Section
2220  11-59-201, 50% of the revenue from sales and use tax imposed by Subsection
2221  (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified development
2222  zone described in Subsection (11)(a)(ii)(C).
2223  (ii) "Qualified development zone" means:
2224  (A) the sales and use tax boundary of a housing and transit reinvestment zone
2225  created under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment
2226  Act;
2227  (B) the district sales tax boundary as defined in Section 11-70-101 for the Utah
2228  Fairpark Area Investment and Restoration District, created in Section
2229  11-70-201; or
2230  (C) the sales and use tax boundary of point of the mountain state land, as defined
2231  in Section 11-59-102, under the Point of the Mountain State Land Authority
2232  created in Section 11-59-201.
2233  (iii) "Schedule J sale" means a sale reported on State Tax Commission Form
2234  TC-62M, Schedule J or a substantially similar form as designated by the
2235  commission.
2236  (b) Revenue generated from the applicable percentage by a Schedule J sale within a
2237  qualified development zone shall be deposited into the General Fund.
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2238    (12)(a) As used in Subsections (12) and (13):
2239  (i) "Applicable percentage" means, for a convention center reinvestment zone created
2240  in a capital city under Title 63N, Chapter 3, Part 6, Housing and Transit
2241  Reinvestment Zone Act, an amount equal to 50% of the sales and use tax
2242  increment, as that term is defined in Section 63N-3-602, from the sales and use tax
2243  imposed by Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the
2244  qualified development zone described in Subsection (12)(a)(ii).
2245  (ii) "Qualified development zone" means the sales and use tax boundary of a
2246  convention center reinvestment zone created in a capital city under Title 63N,
2247  Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
2248  (iii) "Qualifying construction materials" means construction materials that are:
2249  (A) delivered to a delivery outlet within a qualified development zone; and
2250  (B) intended to be permanently attached to real property within the qualified
2251  development zone.
2252        (b) For a sale of qualifying construction materials, the commission shall distribute the
2253  product calculated in Subsection (12)(c) to a qualified development zone if the seller
2254  of the construction materials:
2255  (i) establishes a delivery outlet with the commission within the qualified development
2256  zone;
2257  (ii) reports the sales of the construction materials to the delivery outlet described in
2258  Subsection (12)(b)(i); and
2259  (iii) does not report the sales of the construction materials on a simplified electronic
2260  return.
2261        (c) For the purposes of Subsection (12)(b), the product is equal to:
2262  (i) the sales price or purchase price of the qualifying construction materials; and
2263  (ii) the applicable percentage.
2264    (13)(a) As used in this Subsection (13), "Schedule J sale" means a sale reported on State
2265        Tax Commission Form TC-62M, Schedule J, or a substantially similar form as
2266        designated by the commission.
2267        (b) Revenue generated from the applicable percentage by a Schedule J sale within a
2268  qualified development zone shall be distributed into the General Fund.
2269  Section 3. Section 59-12-104 is amended to read:
2270  59-12-104 . Exemptions.
2271       Exemptions from the taxes imposed by this chapter are as follows:
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 S.B. 162  Enrolled Copy
2272     (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
2273  under Chapter 13, Motor and Special Fuel Tax Act;
2274     (2) subject to Section 59-12-104.6, sales to the state, its institutions, and its political
2275  subdivisions; however, this exemption does not apply to sales of:
2276  (a) construction materials except:
2277  (i) construction materials purchased by or on behalf of institutions of the public
2278  education system as defined in Utah Constitution, Article X, Section 2, provided
2279  the construction materials are clearly identified and segregated and installed or
2280  converted to real property which is owned by institutions of the public education
2281  system; and
2282  (ii) construction materials purchased by the state, its institutions, or its political
2283  subdivisions which are installed or converted to real property by employees of the
2284  state, its institutions, or its political subdivisions; or
2285  (b) tangible personal property in connection with the construction, operation,
2286  maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or
2287  facilities providing additional project capacity, as defined in Section 11-13-103;
2288     (3)(a) sales of an item described in Subsection (3)(b) from a vending machine if:
2289  (i) the proceeds of each sale do not exceed $1; and
2290  (ii) the seller or operator of the vending machine reports an amount equal to 150% of
2291  the cost of the item described in Subsection (3)(b) as goods consumed; and
2292  (b) Subsection (3)(a) applies to:
2293  (i) food and food ingredients; or
2294  (ii) prepared food;
2295     (4)(a) sales of the following to a commercial airline carrier for in-flight consumption:
2296  (i) alcoholic beverages;
2297  (ii) food and food ingredients; or
2298  (iii) prepared food;
2299  (b) sales of tangible personal property or a product transferred electronically:
2300  (i) to a passenger;
2301  (ii) by a commercial airline carrier; and
2302  (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
2303  (c) services related to Subsection (4)(a) or (b);
2304     (5) sales of parts and equipment for installation in an aircraft operated by a common carrier
2305  in interstate or foreign commerce;
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2306    (6) sales of commercials, motion picture films, prerecorded audio program tapes or records,
2307        and prerecorded video tapes by a producer, distributor, or studio to a motion picture
2308        exhibitor, distributor, or commercial television or radio broadcaster;
2309    (7)(a) except as provided in Subsection (85) and subject to Subsection (7)(b), sales of
2310        cleaning or washing of tangible personal property if the cleaning or washing of the
2311        tangible personal property is not assisted cleaning or washing of tangible personal
2312        property;
2313        (b) if a seller that sells at the same business location assisted cleaning or washing of
2314  tangible personal property and cleaning or washing of tangible personal property that
2315  is not assisted cleaning or washing of tangible personal property, the exemption
2316  described in Subsection (7)(a) applies if the seller separately accounts for the sales of
2317  the assisted cleaning or washing of the tangible personal property; and
2318        (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3, Utah
2319  Administrative Rulemaking Act, the commission may make rules:
2320  (i) governing the circumstances under which sales are at the same business location;
2321  and
2322  (ii) establishing the procedures and requirements for a seller to separately account for
2323  sales of assisted cleaning or washing of tangible personal property;
2324    (8) sales made to or by religious or charitable institutions in the conduct of their regular
2325        religious or charitable functions and activities, if the requirements of Section 59-12-104.1
2326        are fulfilled;
2327    (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of this
2328        state if:
2329        (a) the sale is not from the vehicle's lessor to the vehicle's lessee;
2330        (b) the vehicle is not registered in this state; and
2331        (c)(i) the vehicle is not used in this state; or
2332  (ii) the vehicle is used in this state:
2333  (A) if the vehicle is not used to conduct business, for a time period that does not
2334  exceed the longer of:
2335  (I) 30 days in any calendar year; or
2336  (II) the time period necessary to transport the vehicle to the borders of this
2337  state; or
2338  (B) if the vehicle is used to conduct business, for the time period necessary to
2339  transport the vehicle to the borders of this state;
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2340     (10)(a) amounts paid for an item described in Subsection (10)(b) if:
2341  (i) the item is intended for human use; and
2342  (ii)(A) a prescription was issued for the item; or
2343  (B) the item was purchased by a hospital or other medical facility; and
2344  (b)(i) Subsection (10)(a) applies to:
2345  (A) a drug;
2346  (B) a syringe; or
2347  (C) a stoma supply; and
2348  (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2349  the commission may by rule define the terms:
2350  (A) "syringe"; or
2351  (B) "stoma supply";
2352     (11) purchases or leases exempt under Section 19-12-201;
2353     (12)(a) sales of an item described in Subsection (12)(c) served by:
2354  (i) the following if the item described in Subsection (12)(c) is not available to the
2355  general public:
2356  (A) a church; or
2357  (B) a charitable institution; or
2358  (ii) an institution of higher education if:
2359  (A) the item described in Subsection (12)(c) is not available to the general public;
2360  or
2361  (B) the item described in Subsection (12)(c) is prepaid as part of a student meal
2362  plan offered by the institution of higher education;
2363  (b) sales of an item described in Subsection (12)(c) provided for a patient by:
2364  (i) a medical facility; or
2365  (ii) a nursing facility; and
2366  (c) Subsections (12)(a) and (b) apply to:
2367  (i) food and food ingredients;
2368  (ii) prepared food; or
2369  (iii) alcoholic beverages;
2370     (13)(a) except as provided in Subsection (13)(b), the sale of tangible personal property
2371  or a product transferred electronically by a person:
2372  (i) regardless of the number of transactions involving the sale of that tangible
2373  personal property or product transferred electronically by that person; and
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2374  (ii) not regularly engaged in the business of selling that type of tangible personal
2375  property or product transferred electronically;
2376        (b) this Subsection (13) does not apply if:
2377  (i) the sale is one of a series of sales of a character to indicate that the person is
2378  regularly engaged in the business of selling that type of tangible personal property
2379  or product transferred electronically;
2380  (ii) the person holds that person out as regularly engaged in the business of selling
2381  that type of tangible personal property or product transferred electronically;
2382  (iii) the person sells an item of tangible personal property or product transferred
2383  electronically that the person purchased as a sale that is exempt under Subsection
2384  (25); or
2385  (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws
2386  of this state in which case the tax is based upon:
2387  (A) the bill of sale, lease agreement, or other written evidence of value of the
2388  vehicle or vessel being sold; or
2389  (B) in the absence of a bill of sale, lease agreement, or other written evidence of
2390  value, the fair market value of the vehicle or vessel being sold at the time of the
2391  sale as determined by the commission; and
2392        (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2393  commission shall make rules establishing the circumstances under which:
2394  (i) a person is regularly engaged in the business of selling a type of tangible personal
2395  property or product transferred electronically;
2396  (ii) a sale of tangible personal property or a product transferred electronically is one
2397  of a series of sales of a character to indicate that a person is regularly engaged in
2398  the business of selling that type of tangible personal property or product
2399  transferred electronically; or
2400  (iii) a person holds that person out as regularly engaged in the business of selling a
2401  type of tangible personal property or product transferred electronically;
2402    (14) amounts paid or charged for a purchase or lease of machinery, equipment, normal
2403        operating repair or replacement parts, or materials, except for office equipment or office
2404        supplies, by:
2405        (a) a manufacturing facility that:
2406  (i) is located in the state; and
2407  (ii) uses or consumes the machinery, equipment, normal operating repair or
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2408  replacement parts, or materials:
2409  (A) in the manufacturing process to manufacture an item sold as tangible personal
2410  property, as the commission may define that phrase in accordance with Title
2411  63G, Chapter 3, Utah Administrative Rulemaking Act; or
2412  (B) for a scrap recycler, to process an item sold as tangible personal property, as
2413  the commission may define that phrase in accordance with Title 63G, Chapter 3,
2414  Utah Administrative Rulemaking Act;
2415  (b) an establishment, as the commission defines that term in accordance with Title 63G,
2416  Chapter 3, Utah Administrative Rulemaking Act, that:
2417  (i) is described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICS
2418  Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
2419  Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except
2420  Fuels) Mining, of the 2002 North American Industry Classification System of the
2421  federal Executive Office of the President, Office of Management and Budget;
2422  (ii) is located in the state; and
2423  (iii) uses or consumes the machinery, equipment, normal operating repair or
2424  replacement parts, or materials in:
2425  (A) the production process to produce an item sold as tangible personal property,
2426  as the commission may define that phrase in accordance with Title 63G,
2427  Chapter 3, Utah Administrative Rulemaking Act;
2428  (B) research and development, as the commission may define that phrase in
2429  accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
2430  (C) transporting, storing, or managing tailings, overburden, or similar waste
2431  materials produced from mining;
2432  (D) developing or maintaining a road, tunnel, excavation, or similar feature used
2433  in mining; or
2434  (E) preventing, controlling, or reducing dust or other pollutants from mining; or
2435  (c) an establishment, as the commission defines that term in accordance with Title 63G,
2436  Chapter 3, Utah Administrative Rulemaking Act, that:
2437  (i) is described in NAICS Code 518112, Web Search Portals, of the 2002 North
2438  American Industry Classification System of the federal Executive Office of the
2439  President, Office of Management and Budget;
2440  (ii) is located in the state; and
2441  (iii) uses or consumes the machinery, equipment, normal operating repair or
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2442  replacement parts, or materials in the operation of the web search portal;
2443    (15)(a) sales of the following if the requirements of Subsection (15)(b) are met:
2444  (i) tooling;
2445  (ii) special tooling;
2446  (iii) support equipment;
2447  (iv) special test equipment; or
2448  (v) parts used in the repairs or renovations of tooling or equipment described in
2449  Subsections (15)(a)(i) through (iv); and
2450        (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
2451  (i) the tooling, equipment, or parts are used or consumed exclusively in the
2452  performance of any aerospace or electronics industry contract with the United
2453  States government or any subcontract under that contract; and
2454  (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
2455  title to the tooling, equipment, or parts is vested in the United States government
2456  as evidenced by:
2457  (A) a government identification tag placed on the tooling, equipment, or parts; or
2458  (B) listing on a government-approved property record if placing a government
2459  identification tag on the tooling, equipment, or parts is impractical;
2460    (16) sales of newspapers or newspaper subscriptions;
2461    (17)(a) except as provided in Subsection (17)(b), tangible personal property or a product
2462        transferred electronically traded in as full or part payment of the purchase price,
2463        except that for purposes of calculating sales or use tax upon vehicles not sold by a
2464        vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
2465  (i) the bill of sale or other written evidence of value of the vehicle being sold and the
2466  vehicle being traded in; or
2467  (ii) in the absence of a bill of sale or other written evidence of value, the then existing
2468  fair market value of the vehicle being sold and the vehicle being traded in, as
2469  determined by the commission; and
2470        (b) Subsection (17)(a) does not apply to the following items of tangible personal
2471  property or products transferred electronically traded in as full or part payment of the
2472  purchase price:
2473  (i) money;
2474  (ii) electricity;
2475  (iii) water;
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2476  (iv) gas; or
2477  (v) steam;
2478     (18)(a)(i) except as provided in Subsection (18)(b), sales of tangible personal
2479  property or a product transferred electronically used or consumed primarily and
2480  directly in farming operations, regardless of whether the tangible personal
2481  property or product transferred electronically:
2482  (A) becomes part of real estate; or
2483  (B) is installed by a farmer, contractor, or subcontractor; or
2484  (ii) sales of parts used in the repairs or renovations of tangible personal property or a
2485  product transferred electronically if the tangible personal property or product
2486  transferred electronically is exempt under Subsection (18)(a)(i); and
2487  (b) amounts paid or charged for the following are subject to the taxes imposed by this
2488  chapter:
2489  (i)(A) subject to Subsection (18)(b)(i)(B), machinery, equipment, materials, or
2490  supplies if used in a manner that is incidental to farming; and
2491  (B) tangible personal property that is considered to be used in a manner that is
2492  incidental to farming includes:
2493  (I) hand tools; or
2494  (II) maintenance and janitorial equipment and supplies;
2495  (ii)(A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
2496  transferred electronically if the tangible personal property or product
2497  transferred electronically is used in an activity other than farming; and
2498  (B) tangible personal property or a product transferred electronically that is
2499  considered to be used in an activity other than farming includes:
2500  (I) office equipment and supplies; or
2501  (II) equipment and supplies used in:
2502  (Aa) the sale or distribution of farm products;
2503  (Bb) research; or
2504  (Cc) transportation; or
2505  (iii) a vehicle required to be registered by the laws of this state during the period
2506  ending two years after the date of the vehicle's purchase;
2507     (19) sales of hay;
2508     (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or garden,
2509  farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
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2510        garden, farm, or other agricultural produce is sold by:
2511        (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
2512  agricultural produce;
2513        (b) an employee of the producer described in Subsection (20)(a); or
2514        (c) a member of the immediate family of the producer described in Subsection (20)(a);
2515    (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued under
2516        the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
2517    (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
2518        nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
2519        wholesaler, or retailer for use in packaging tangible personal property to be sold by that
2520        manufacturer, processor, wholesaler, or retailer;
2521    (23) a product stored in the state for resale;
2522    (24)(a) purchases of a product if:
2523  (i) the product is:
2524  (A) purchased outside of this state;
2525  (B) brought into this state:
2526  (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
2527  (II) by a nonresident person who is not living or working in this state at the
2528  time of the purchase;
2529  (C) used for the personal use or enjoyment of the nonresident person described in
2530  Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state;
2531  and
2532  (D) not used in conducting business in this state; and
2533  (ii) for:
2534  (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use
2535  of the product for a purpose for which the product is designed occurs outside of
2536  this state;
2537  (B) a boat, the boat is registered outside of this state; or
2538  (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
2539  registered outside of this state;
2540        (b) the exemption provided for in Subsection (24)(a) does not apply to:
2541  (i) a lease or rental of a product; or
2542  (ii) a sale of a vehicle exempt under Subsection (33); and
2543        (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
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2544  purposes of Subsection (24)(a), the commission may by rule define what constitutes
2545  the following:
2546  (i) conducting business in this state if that phrase has the same meaning in this
2547  Subsection (24) as in Subsection (63);
2548  (ii) the first use of a product if that phrase has the same meaning in this Subsection
2549  (24) as in Subsection (63); or
2550  (iii) a purpose for which a product is designed if that phrase has the same meaning in
2551  this Subsection (24) as in Subsection (63);
2552     (25) a product purchased for resale in the regular course of business, either in the product's
2553  original form or as an ingredient or component part of a manufactured or compounded
2554  product;
2555     (26) a product upon which a sales or use tax was paid to some other state, or one of another
2556  state's subdivisions, except that the state shall be paid any difference between the tax
2557  paid and the tax imposed by this part and Part 2, Local Sales and Use Tax Act, and no
2558  adjustment is allowed if the tax paid was greater than the tax imposed by this part and
2559  Part 2, Local Sales and Use Tax Act;
2560     (27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to a person
2561  for use in compounding a service taxable under the subsections;
2562     (28) purchases made in accordance with the special supplemental nutrition program for
2563  women, infants, and children established in 42 U.S.C. Sec. 1786;
2564     (29) sales or leases of rolls, rollers, refractory brick, electric motors, or other replacement
2565  parts used in the furnaces, mills, or ovens of a steel mill described in SIC Code 3312 of
2566  the 1987 Standard Industrial Classification Manual of the federal Executive Office of the
2567  President, Office of Management and Budget;
2568     (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
2569  Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard
2570  motor is:
2571  (a) not registered in this state; and
2572  (b)(i) not used in this state; or
2573  (ii) used in this state:
2574  (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for
2575  a time period that does not exceed the longer of:
2576  (I) 30 days in any calendar year; or
2577  (II) the time period necessary to transport the boat, boat trailer, or outboard
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2578  motor to the borders of this state; or
2579  (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the
2580  time period necessary to transport the boat, boat trailer, or outboard motor to
2581  the borders of this state;
2582    (31) sales of aircraft manufactured in Utah;
2583    (32) amounts paid for the purchase of telecommunications service for purposes of
2584        providing telecommunications service;
2585    (33) sales, leases, or uses of the following:
2586        (a) a vehicle by an authorized carrier; or
2587        (b) tangible personal property that is installed on a vehicle:
2588  (i) sold or leased to or used by an authorized carrier; and
2589  (ii) before the vehicle is placed in service for the first time;
2590    (34)(a) 45% of the sales price of any new manufactured home; and
2591        (b) 100% of the sales price of any used manufactured home;
2592    (35) sales relating to schools and fundraising sales;
2593    (36) sales or rentals of durable medical equipment if:
2594        (a) a person presents a prescription for the durable medical equipment; and
2595        (b) the durable medical equipment is used for home use only;
2596    (37)(a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
2597        Section 72-11-102; and
2598        (b) the commission shall by rule determine the method for calculating sales exempt
2599  under Subsection (37)(a) that are not separately metered and accounted for in utility
2600  billings;
2601    (38) sales to a ski resort of:
2602        (a) snowmaking equipment;
2603        (b) ski slope grooming equipment;
2604        (c) passenger ropeways as defined in Section 72-11-102; or
2605        (d) parts used in the repairs or renovations of equipment or passenger ropeways
2606  described in Subsections (38)(a) through (c);
2607    (39) subject to Subsection 59-12-103(2)(j), sales of natural gas, electricity, heat, coal, fuel
2608        oil, or other fuels for industrial use;
2609    (40)(a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
2610        amusement, entertainment, or recreation an unassisted amusement device as defined
2611        in Section 59-12-102;
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2612  (b) if a seller that sells or rents at the same business location the right to use or operate
2613  for amusement, entertainment, or recreation one or more unassisted amusement
2614  devices and one or more assisted amusement devices, the exemption described in
2615  Subsection (40)(a) applies if the seller separately accounts for the sales or rentals of
2616  the right to use or operate for amusement, entertainment, or recreation for the assisted
2617  amusement devices; and
2618  (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3, Utah
2619  Administrative Rulemaking Act, the commission may make rules:
2620  (i) governing the circumstances under which sales are at the same business location;
2621  and
2622  (ii) establishing the procedures and requirements for a seller to separately account for
2623  the sales or rentals of the right to use or operate for amusement, entertainment, or
2624  recreation for assisted amusement devices;
2625     (41)(a) sales of photocopies by:
2626  (i) a governmental entity; or
2627  (ii) an entity within the state system of public education, including:
2628  (A) a school; or
2629  (B) the State Board of Education; or
2630  (b) sales of publications by a governmental entity;
2631     (42) amounts paid for admission to an athletic event at an institution of higher education
2632  that is subject to the provisions of Title IX of the Education Amendments of 1972, 20
2633  U.S.C. Sec. 1681 et seq.;
2634     (43)(a) sales made to or by:
2635  (i) an area agency on aging; or
2636  (ii) a senior citizen center owned by a county, city, or town; or
2637  (b) sales made by a senior citizen center that contracts with an area agency on aging;
2638     (44) sales or leases of semiconductor fabricating, processing, research, or development
2639  materials regardless of whether the semiconductor fabricating, processing, research, or
2640  development materials:
2641  (a) actually come into contact with a semiconductor; or
2642  (b) ultimately become incorporated into real property;
2643     (45) an amount paid by or charged to a purchaser for accommodations and services
2644  described in Subsection 59-12-103(1)(i) to the extent the amount is exempt under
2645  Section 59-12-104.2;
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2646    (46) the lease or use of a vehicle issued a temporary sports event registration certificate in
2647        accordance with Section 41-3-306 for the event period specified on the temporary sports
2648        event registration certificate;
2649    (47)(a) sales or uses of electricity, if the sales or uses are made under a retail tariff
2650        adopted by the Public Service Commission only for purchase of electricity produced
2651        from a new alternative energy source built after January 1, 2016, as designated in the
2652        tariff by the Public Service Commission; and
2653        (b) for a residential use customer only, the exemption under Subsection (47)(a) applies
2654  only to the portion of the tariff rate a customer pays under the tariff described in
2655  Subsection (47)(a) that exceeds the tariff rate under the tariff described in Subsection
2656  (47)(a) that the customer would have paid absent the tariff;
2657    (48) sales or rentals of mobility enhancing equipment if a person presents a prescription for
2658        the mobility enhancing equipment;
2659    (49) sales of water in a:
2660        (a) pipe;
2661        (b) conduit;
2662        (c) ditch; or
2663        (d) reservoir;
2664    (50) sales of currency or coins that constitute legal tender of a state, the United States, or a
2665        foreign nation;
2666    (51)(a) sales of an item described in Subsection (51)(b) if the item:
2667  (i) does not constitute legal tender of a state, the United States, or a foreign nation;
2668  and
2669  (ii) has a gold, silver, or platinum content of 50% or more; and
2670        (b) Subsection (51)(a) applies to a gold, silver, or platinum:
2671  (i) ingot;
2672  (ii) bar;
2673  (iii) medallion; or
2674  (iv) decorative coin;
2675    (52) amounts paid on a sale-leaseback transaction;
2676    (53) sales of a prosthetic device:
2677        (a) for use on or in a human; and
2678        (b)(i) for which a prescription is required; or
2679  (ii) if the prosthetic device is purchased by a hospital or other medical facility;
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2680     (54)(a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
2681  machinery or equipment by an establishment described in Subsection (54)(c) if the
2682  machinery or equipment is primarily used in the production or postproduction of the
2683  following media for commercial distribution:
2684  (i) a motion picture;
2685  (ii) a television program;
2686  (iii) a movie made for television;
2687  (iv) a music video;
2688  (v) a commercial;
2689  (vi) a documentary; or
2690  (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
2691  commission by administrative rule made in accordance with Subsection (54)(d);
2692  (b) purchases, leases, or rentals of machinery or equipment by an establishment
2693  described in Subsection (54)(c) that is used for the production or postproduction of
2694  the following are subject to the taxes imposed by this chapter:
2695  (i) a live musical performance;
2696  (ii) a live news program; or
2697  (iii) a live sporting event;
2698  (c) the following establishments listed in the 1997 North American Industry
2699  Classification System of the federal Executive Office of the President, Office of
2700  Management and Budget, apply to Subsections (54)(a) and (b):
2701  (i) NAICS Code 512110; or
2702  (ii) NAICS Code 51219; and
2703  (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2704  commission may by rule:
2705  (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
2706  or
2707  (ii) define:
2708  (A) "commercial distribution";
2709  (B) "live musical performance";
2710  (C) "live news program"; or
2711  (D) "live sporting event";
2712     (55)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
2713  or before June 30, 2027, of tangible personal property that:
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2714  (i) is leased or purchased for or by a facility that:
2715  (A) is an alternative energy electricity production facility;
2716  (B) is located in the state; and
2717  (C)(I) becomes operational on or after July 1, 2004; or
2718  (II) has its generation capacity increased by one or more megawatts on or after
2719  July 1, 2004, as a result of the use of the tangible personal property;
2720  (ii) has an economic life of five or more years; and
2721  (iii) is used to make the facility or the increase in capacity of the facility described in
2722  Subsection (55)(a)(i) operational up to the point of interconnection with an
2723  existing transmission grid including:
2724  (A) a wind turbine;
2725  (B) generating equipment;
2726  (C) a control and monitoring system;
2727  (D) a power line;
2728  (E) substation equipment;
2729  (F) lighting;
2730  (G) fencing;
2731  (H) pipes; or
2732  (I) other equipment used for locating a power line or pole; and
2733        (b) this Subsection (55) does not apply to:
2734  (i) tangible personal property used in construction of:
2735  (A) a new alternative energy electricity production facility; or
2736  (B) the increase in the capacity of an alternative energy electricity production
2737  facility;
2738  (ii) contracted services required for construction and routine maintenance activities;
2739  and
2740  (iii) unless the tangible personal property is used or acquired for an increase in
2741  capacity of the facility described in Subsection (55)(a)(i)(C)(II), tangible personal
2742  property used or acquired after:
2743  (A) the alternative energy electricity production facility described in Subsection
2744  (55)(a)(i) is operational as described in Subsection (55)(a)(iii); or
2745  (B) the increased capacity described in Subsection (55)(a)(i) is operational as
2746  described in Subsection (55)(a)(iii);
2747    (56)(a) leases of seven or more years or purchases made on or after July 1, 2004, but on
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2748  or before June 30, 2027, of tangible personal property that:
2749  (i) is leased or purchased for or by a facility that:
2750  (A) is a waste energy production facility;
2751  (B) is located in the state; and
2752  (C)(I) becomes operational on or after July 1, 2004; or
2753  (II) has its generation capacity increased by one or more megawatts on or after
2754  July 1, 2004, as a result of the use of the tangible personal property;
2755  (ii) has an economic life of five or more years; and
2756  (iii) is used to make the facility or the increase in capacity of the facility described in
2757  Subsection (56)(a)(i) operational up to the point of interconnection with an
2758  existing transmission grid including:
2759  (A) generating equipment;
2760  (B) a control and monitoring system;
2761  (C) a power line;
2762  (D) substation equipment;
2763  (E) lighting;
2764  (F) fencing;
2765  (G) pipes; or
2766  (H) other equipment used for locating a power line or pole; and
2767  (b) this Subsection (56) does not apply to:
2768  (i) tangible personal property used in construction of:
2769  (A) a new waste energy facility; or
2770  (B) the increase in the capacity of a waste energy facility;
2771  (ii) contracted services required for construction and routine maintenance activities;
2772  and
2773  (iii) unless the tangible personal property is used or acquired for an increase in
2774  capacity described in Subsection (56)(a)(i)(C)(II), tangible personal property used
2775  or acquired after:
2776  (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
2777  described in Subsection (56)(a)(iii); or
2778  (B) the increased capacity described in Subsection (56)(a)(i) is operational as
2779  described in Subsection (56)(a)(iii);
2780     (57)(a) leases of five or more years or purchases made on or after July 1, 2004, but on or
2781  before June 30, 2027, of tangible personal property that:
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2782  (i) is leased or purchased for or by a facility that:
2783  (A) is located in the state;
2784  (B) produces fuel from alternative energy, including:
2785  (I) methanol; or
2786  (II) ethanol; and
2787  (C)(I) becomes operational on or after July 1, 2004; or
2788  (II) has its capacity to produce fuel increase by 25% or more on or after July 1,
2789  2004, as a result of the installation of the tangible personal property;
2790  (ii) has an economic life of five or more years; and
2791  (iii) is installed on the facility described in Subsection (57)(a)(i);
2792        (b) this Subsection (57) does not apply to:
2793  (i) tangible personal property used in construction of:
2794  (A) a new facility described in Subsection (57)(a)(i); or
2795  (B) the increase in capacity of the facility described in Subsection (57)(a)(i);
2796  (ii) contracted services required for construction and routine maintenance activities;
2797  and
2798  (iii) unless the tangible personal property is used or acquired for an increase in
2799  capacity described in Subsection (57)(a)(i)(C)(II), tangible personal property used
2800  or acquired after:
2801  (A) the facility described in Subsection (57)(a)(i) is operational; or
2802  (B) the increased capacity described in Subsection (57)(a)(i) is operational;
2803    (58)(a) subject to Subsection (58)(b), sales of tangible personal property or a product
2804        transferred electronically to a person within this state if that tangible personal
2805        property or product transferred electronically is subsequently shipped outside the
2806        state and incorporated pursuant to contract into and becomes a part of real property
2807        located outside of this state; and
2808        (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
2809  state or political entity to which the tangible personal property is shipped imposes a
2810  sales, use, gross receipts, or other similar transaction excise tax on the transaction
2811  against which the other state or political entity allows a credit for sales and use taxes
2812  imposed by this chapter;
2813    (59) purchases:
2814        (a) of one or more of the following items in printed or electronic format:
2815  (i) a list containing information that includes one or more:
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2816  (A) names; or
2817  (B) addresses; or
2818  (ii) a database containing information that includes one or more:
2819  (A) names; or
2820  (B) addresses; and
2821  (b) used to send direct mail;
2822     (60) redemptions or repurchases of a product by a person if that product was:
2823  (a) delivered to a pawnbroker as part of a pawn transaction; and
2824  (b) redeemed or repurchased within the time period established in a written agreement
2825  between the person and the pawnbroker for redeeming or repurchasing the product;
2826     (61)(a) purchases or leases of an item described in Subsection (61)(b) if the item:
2827  (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
2828  and
2829  (ii) has a useful economic life of one or more years; and
2830  (b) the following apply to Subsection (61)(a):
2831  (i) telecommunications enabling or facilitating equipment, machinery, or software;
2832  (ii) telecommunications equipment, machinery, or software required for 911 service;
2833  (iii) telecommunications maintenance or repair equipment, machinery, or software;
2834  (iv) telecommunications switching or routing equipment, machinery, or software; or
2835  (v) telecommunications transmission equipment, machinery, or software;
2836     (62)(a) beginning on July 1, 2006, and ending on June 30, 2027, purchases of tangible
2837  personal property or a product transferred electronically that are used in the research
2838  and development of alternative energy technology; and
2839  (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2840  commission may, for purposes of Subsection (62)(a), make rules defining what
2841  constitutes purchases of tangible personal property or a product transferred
2842  electronically that are used in the research and development of alternative energy
2843  technology;
2844     (63)(a) purchases of tangible personal property or a product transferred electronically if:
2845  (i) the tangible personal property or product transferred electronically is:
2846  (A) purchased outside of this state;
2847  (B) brought into this state at any time after the purchase described in Subsection
2848  (63)(a)(i)(A); and
2849  (C) used in conducting business in this state; and
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2850  (ii) for:
2851  (A) tangible personal property or a product transferred electronically other than
2852  the tangible personal property described in Subsection (63)(a)(ii)(B), the first
2853  use of the property for a purpose for which the property is designed occurs
2854  outside of this state; or
2855  (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is
2856  registered outside of this state and not required to be registered in this state
2857  under Section 41-1a-202 or 73-18-9 based on residency;
2858        (b) the exemption provided for in Subsection (63)(a) does not apply to:
2859  (i) a lease or rental of tangible personal property or a product transferred
2860  electronically; or
2861  (ii) a sale of a vehicle exempt under Subsection (33); and
2862        (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
2863  purposes of Subsection (63)(a), the commission may by rule define what constitutes
2864  the following:
2865  (i) conducting business in this state if that phrase has the same meaning in this
2866  Subsection (63) as in Subsection (24);
2867  (ii) the first use of tangible personal property or a product transferred electronically if
2868  that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
2869  (iii) a purpose for which tangible personal property or a product transferred
2870  electronically is designed if that phrase has the same meaning in this Subsection
2871  (63) as in Subsection (24);
2872    (64) sales of disposable home medical equipment or supplies if:
2873        (a) a person presents a prescription for the disposable home medical equipment or
2874  supplies;
2875        (b) the disposable home medical equipment or supplies are used exclusively by the
2876  person to whom the prescription described in Subsection (64)(a) is issued; and
2877        (c) the disposable home medical equipment and supplies are listed as eligible for
2878  payment under:
2879  (i) Title XVIII, federal Social Security Act; or
2880  (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
2881    (65) sales:
2882        (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit District
2883  Act; or
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2884  (b) of tangible personal property to a subcontractor of a public transit district, if the
2885  tangible personal property is:
2886  (i) clearly identified; and
2887  (ii) installed or converted to real property owned by the public transit district;
2888     (66) sales of construction materials:
2889  (a) purchased on or after July 1, 2010;
2890  (b) purchased by, on behalf of, or for the benefit of an international airport:
2891  (i) located within a county of the first class; and
2892  (ii) that has a United States customs office on its premises; and
2893  (c) if the construction materials are:
2894  (i) clearly identified;
2895  (ii) segregated; and
2896  (iii) installed or converted to real property:
2897  (A) owned or operated by the international airport described in Subsection (66)(b);
2898  and
2899  (B) located at the international airport described in Subsection (66)(b);
2900     (67) sales of construction materials:
2901  (a) purchased on or after July 1, 2008;
2902  (b) purchased by, on behalf of, or for the benefit of a new airport:
2903  (i) located within a county of the second or third class, as classified in Section
2904  17-60-104; and
2905  (ii) that is owned or operated by a city in which an airline as defined in Section
2906  59-2-102 is headquartered; and
2907  (c) if the construction materials are:
2908  (i) clearly identified;
2909  (ii) segregated; and
2910  (iii) installed or converted to real property:
2911  (A) owned or operated by the new airport described in Subsection (67)(b);
2912  (B) located at the new airport described in Subsection (67)(b); and
2913  (C) as part of the construction of the new airport described in Subsection (67)(b);
2914     (68) except for the tax imposed by Subsection 59-12-103(2)(d), sales of fuel to a common
2915  carrier that is a railroad for use in a locomotive engine;
2916     (69) purchases and sales described in Section 63H-4-111;
2917     (70)(a) sales of tangible personal property to an aircraft maintenance, repair, and
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2918        overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in
2919        this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
2920        aircraft's registration lists a state or country other than this state as the location of
2921        registry of the fixed wing turbine powered aircraft; or
2922        (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
2923  provider in connection with the maintenance, repair, overhaul, or refurbishment in
2924  this state of a fixed wing turbine powered aircraft if that fixed wing turbine powered
2925  aircraft's registration lists a state or country other than this state as the location of
2926  registry of the fixed wing turbine powered aircraft;
2927    (71) subject to Section 59-12-104.4, sales of a textbook for a higher education course:
2928        (a) to a person admitted to an institution of higher education; and
2929        (b) by a seller, other than a bookstore owned by an institution of higher education, if
2930  51% or more of that seller's sales revenue for the previous calendar quarter are sales
2931  of a textbook for a higher education course;
2932    (72) a license fee or tax a municipality imposes in accordance with Subsection 10-1-203(5)
2933        on a purchaser from a business for which the municipality provides an enhanced level of
2934        municipal services;
2935    (73) amounts paid or charged for construction materials used in the construction of a new or
2936        expanding life science research and development facility in the state, if the construction
2937        materials are:
2938        (a) clearly identified;
2939        (b) segregated; and
2940        (c) installed or converted to real property;
2941    (74) amounts paid or charged for:
2942        (a) a purchase or lease of machinery and equipment that:
2943  (i) are used in performing qualified research:
2944  (A) as defined in Section 41(d), Internal Revenue Code; and
2945  (B) in the state; and
2946  (ii) have an economic life of three or more years; and
2947        (b) normal operating repair or replacement parts:
2948  (i) for the machinery and equipment described in Subsection (74)(a); and
2949  (ii) that have an economic life of three or more years;
2950    (75) a sale or lease of tangible personal property used in the preparation of prepared food if:
2951        (a) for a sale:
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2952  (i) the ownership of the seller and the ownership of the purchaser are identical; and
2953  (ii) the seller or the purchaser paid a tax under this chapter on the purchase of that
2954  tangible personal property [prior to] before making the sale; or
2955  (b) for a lease:
2956  (i) the ownership of the lessor and the ownership of the lessee are identical; and
2957  (ii) the lessor or the lessee paid a tax under this chapter on the purchase of that
2958  tangible personal property [prior to] before making the lease;
2959     (76)(a) purchases of machinery or equipment if:
2960  (i) the purchaser is an establishment described in NAICS Subsector 713, Amusement,
2961  Gambling, and Recreation Industries, of the 2012 North American Industry
2962  Classification System of the federal Executive Office of the President, Office of
2963  Management and Budget;
2964  (ii) the machinery or equipment:
2965  (A) has an economic life of three or more years; and
2966  (B) is used by one or more persons who pay admission or user fees described in
2967  Subsection 59-12-103(1)(f) to the purchaser of the machinery and equipment;
2968  and
2969  (iii) 51% or more of the purchaser's sales revenue for the previous calendar quarter is:
2970  (A) amounts paid or charged as admission or user fees described in Subsection
2971  59-12-103(1)(f); and
2972  (B) subject to taxation under this chapter; and
2973  (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2974  commission may make rules for verifying that 51% of a purchaser's sales revenue for
2975  the previous calendar quarter is:
2976  (i) amounts paid or charged as admission or user fees described in Subsection
2977  59-12-103(1)(f); and
2978  (ii) subject to taxation under this chapter;
2979     (77) purchases of a short-term lodging consumable by a business that provides
2980  accommodations and services described in Subsection 59-12-103(1)(i);
2981     (78) amounts paid or charged to access a database:
2982  (a) if the primary purpose for accessing the database is to view or retrieve information
2983  from the database; and
2984  (b) not including amounts paid or charged for a:
2985  (i) digital audio work;
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2986  (ii) digital audio-visual work; or
2987  (iii) digital book;
2988    (79) amounts paid or charged for a purchase or lease made by an electronic financial
2989        payment service, of:
2990        (a) machinery and equipment that:
2991  (i) are used in the operation of the electronic financial payment service; and
2992  (ii) have an economic life of three or more years; and
2993        (b) normal operating repair or replacement parts that:
2994  (i) are used in the operation of the electronic financial payment service; and
2995  (ii) have an economic life of three or more years;
2996    (80) sales of a fuel cell as defined in Section 54-15-102;
2997    (81) amounts paid or charged for a purchase or lease of tangible personal property or a
2998        product transferred electronically if the tangible personal property or product transferred
2999        electronically:
3000        (a) is stored, used, or consumed in the state; and
3001        (b) is temporarily brought into the state from another state:
3002  (i) during a disaster period as defined in Section 53-2a-1202;
3003  (ii) by an out-of-state business as defined in Section 53-2a-1202;
3004  (iii) for a declared state disaster or emergency as defined in Section 53-2a-1202; and
3005  (iv) for disaster- or emergency-related work as defined in Section 53-2a-1202;
3006    (82) sales of goods and services at a morale, welfare, and recreation facility, as defined in
3007        Section 39A-7-102, made [pursuant to] in accordance with Title 39A, Chapter 7, Morale,
3008        Welfare, and Recreation Program;
3009    (83) amounts paid or charged for a purchase or lease of molten magnesium;
3010    (84) amounts paid or charged for a purchase or lease made by a qualifying data center or an
3011        occupant of a qualifying data center of machinery, equipment, or normal operating
3012        repair or replacement parts, if the machinery, equipment, or normal operating repair or
3013        replacement parts:
3014        (a) are used in:
3015  (i) the operation of the qualifying data center; or
3016  (ii) the occupant's operations in the qualifying data center; and
3017        (b) have an economic life of one or more years;
3018    (85) sales of cleaning or washing of a vehicle, except for cleaning or washing of a vehicle
3019        that includes cleaning or washing of the interior of the vehicle;
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3020     (86) amounts paid or charged for a purchase or lease of machinery, equipment, normal
3021  operating repair or replacement parts, catalysts, chemicals, reagents, solutions, or
3022  supplies used or consumed:
3023  (a) by a refiner who owns, leases, operates, controls, or supervises a refinery as defined
3024  in Section 79-6-701 located in the state;
3025  (b) if the machinery, equipment, normal operating repair or replacement parts, catalysts,
3026  chemicals, reagents, solutions, or supplies are used or consumed in:
3027  (i) the production process to produce gasoline or diesel fuel, or at which blendstock is
3028  added to gasoline or diesel fuel;
3029  (ii) research and development;
3030  (iii) transporting, storing, or managing raw materials, work in process, finished
3031  products, and waste materials produced from refining gasoline or diesel fuel, or
3032  adding blendstock to gasoline or diesel fuel;
3033  (iv) developing or maintaining a road, tunnel, excavation, or similar feature used in
3034  refining; or
3035  (v) preventing, controlling, or reducing pollutants from refining; and
3036  (c) if the person holds a valid refiner tax exemption certification as defined in Section
3037  79-6-701;
3038     (87) amounts paid to or charged by a proprietor for accommodations and services, as
3039  defined in Section 63H-1-205, if the proprietor is subject to the MIDA accommodations
3040  tax imposed under Section 63H-1-205;
3041     (88) amounts paid or charged for a purchase or lease of machinery, equipment, normal
3042  operating repair or replacement parts, or materials, except for office equipment or office
3043  supplies, by an establishment, as the commission defines that term in accordance with
3044  Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
3045  (a) is described in NAICS Code 621511, Medical Laboratories, of the 2017 North
3046  American Industry Classification System of the federal Executive Office of the
3047  President, Office of Management and Budget;
3048  (b) is located in this state; and
3049  (c) uses the machinery, equipment, normal operating repair or replacement parts, or
3050  materials in the operation of the establishment;
3051     (89) amounts paid or charged for an item exempt under Section 59-12-104.10;
3052     (90) sales of a note, leaf, foil, or film, if the item:
3053  (a) is used as currency;
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3054        (b) does not constitute legal tender of a state, the United States, or a foreign nation; and
3055        (c) has a gold, silver, or platinum metallic content of 50% or more, exclusive of any
3056  transparent polymer holder, coating, or encasement;
3057    (91) amounts paid or charged for admission to an indoor skydiving, rock climbing, or
3058        surfing facility, if a trained instructor:
3059        (a) is present with the participant, in person or by video, for the duration of the activity;
3060  and
3061        (b) actively instructs the participant, including providing observation or feedback;
3062    (92) amounts paid or charged in connection with the construction, operation, maintenance,
3063        repair, or replacement of facilities owned by or constructed for:
3064        (a) a distribution electrical cooperative, as defined in Section 54-2-1; or
3065        (b) a wholesale electrical cooperative, as defined in Section 54-2-1;
3066    (93) amounts paid by the service provider for tangible personal property, other than
3067        machinery, equipment, parts, office supplies, electricity, gas, heat, steam, or other fuels,
3068        that:
3069        (a) is consumed in the performance of a service that is subject to tax under Subsection
3070  59-12-103(1)(b), (f), (g), (h), (i), or (j);
3071        (b) has to be consumed for the service provider to provide the service described in
3072  Subsection (93)(a); and
3073        (c) will be consumed in the performance of the service described in Subsection (93)(a),
3074  to one or more customers, to the point that the tangible personal property disappears
3075  or cannot be used for any other purpose;
3076    (94) sales of rail rolling stock manufactured in Utah;
3077    (95) amounts paid or charged for sales of sand, gravel, rock aggregate, cement products, or
3078        construction materials between establishments, as the commission defines that term in
3079        accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if:
3080        (a) the establishments are related directly or indirectly through 100% common
3081  ownership or control; and
3082        (b) each establishment is described in one of the following subsectors of the 2022 North
3083  American Industry Classification System of the federal Executive Office of the
3084  President, Office of Management and Budget:
3085  (i) NAICS Subsector 237, Heavy and Civil Engineering Construction; or
3086  (ii) NAICS Subsector 327, Nonmetallic Mineral Product Manufacturing;
3087    (96) sales of construction materials used for the construction of a qualified stadium, as
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3088  defined in Section 11-70-101;
3089     (97) amounts paid or charged for sales of a cannabinoid product as that term is defined in
3090  Section 4-41-102;
3091     (98) amounts paid or charged by an operator of a qualifying energy storage manufacturing
3092  facility for:
3093  (a) a purchase of tangible personal property if the tangible personal property is
3094  incorporated into equipment or a device that stores and discharges energy at the
3095  qualifying energy storage manufacturing facility; and
3096  (b) a purchase or lease of machinery, equipment, or normal operating repair or
3097  replacement parts if the machinery, equipment, or normal operating repair or
3098  replacement parts are used exclusively in the operation of the qualifying energy
3099  storage manufacturing facility;
3100     (99) amounts paid or charged for sales of adaptive driving equipment if the adaptive driving
3101  equipment is not yet installed in a motor vehicle;
3102     (100) amounts paid or charged for sales of adaptive driving equipment if the adaptive
3103  driving equipment is installed in a motor vehicle by a previous owner and the
3104  requirements of Section 59-12-104.11 are met; [and]
3105     (101) sales of construction materials used for the construction, remodeling, or refurbishing
3106  of a major sporting event venue, as defined in Section 63N-3-1701, within an approved
3107  major sporting event venue zone[.] ; and
3108     (102) amounts paid or charged for a transaction subject to a tax under Chapter 26,
3109  Multi-Channel Video or Audio Service Tax Act.
3110  Section 4. Effective Date.
3111     This bill takes effect on July 1, 2026.
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