Download Zipped Introduced WP 8.0 HB0255.ZIP 15,844 Bytes
[Status][Bill Documents][Fiscal Note][Bills Directory]
H.B. 255
1
SALES AND USE TAX ON PUBLIC
2
ACCOMMODATIONS AND SERVICES TAXED
3
BY TRIBES
4
2000 GENERAL SESSION
5
STATE OF UTAH
6
Sponsor: Keele Johnson
7
AN ACT RELATING TO REVENUE AND TAXATION; PROVIDING AN EXEMPTION
8
FROM STATE SALES AND USE TAX ON PUBLIC ACCOMMODATIONS AND SERVICES
9
TAXED BY TRIBES; AND MAKING TECHNICAL CHANGES.
10
This act affects sections of Utah Code Annotated 1953 as follows:
11
AMENDS:
12
59-12-104, as last amended by Chapters 63, 155, 195, 306, 313 and 362, Laws of Utah
13
1999
14
ENACTS:
15
59-12-104.2, Utah Code Annotated 1953
16
Be it enacted by the Legislature of the state of Utah:
17
Section 1.
Section
59-12-104
is amended to read:
18
59-12-104. Exemptions.
19
The following sales and uses are exempt from the taxes imposed by this chapter:
20
(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
21
under Title 59, Chapter 13, Motor and Special Fuel Tax Act;
22
(2) sales to the state, its institutions, and its political subdivisions; however, this exemption
23
does not apply to sales of construction materials except:
24
(a) construction materials purchased by or on behalf of institutions of the public education
25
system as defined in Utah Constitution Article X, Section 2, provided the construction materials
26
are clearly identified and segregated and installed or converted to real property which is owned by
27
institutions of the public education system; and
28
(b) construction materials purchased by the state, its institutions, or its political
29
subdivisions which are installed or converted to real property by employees of the state, its
30
institutions, or its political subdivisions;
31
(3) sales of food, beverage, and dairy products from vending machines in which the
32
proceeds of each sale do not exceed $1 if the vendor or operator of the vending machine reports
33
an amount equal to 150% of the cost of items as goods consumed;
34
(4) sales of food, beverage, dairy products, similar confections, and related services to
35
commercial airline carriers for in-flight consumption;
36
(5) sales of parts and equipment installed in aircraft operated by common carriers in
37
interstate or foreign commerce;
38
(6) sales of commercials, motion picture films, prerecorded audio program tapes or
39
records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
40
exhibitor, distributor, or commercial television or radio broadcaster;
41
(7) sales of cleaning or washing of tangible personal property by a coin-operated laundry
42
or dry cleaning machine;
43
(8) (a) except as provided in Subsection (8)(b), sales made to or by religious or charitable
44
institutions in the conduct of their regular religious or charitable functions and activities, if the
45
requirements of Section
59-12-104.1
are fulfilled;
46
(b) the exemption provided for in Subsection (8)(a) does not apply to the following sales,
47
uses, leases, or rentals relating to the Olympic Winter Games of 2002 made to or by an
48
organization exempt from federal income taxation under Section 501(c)(3), Internal Revenue
49
Code:
50
(i) retail sales of Olympic merchandise;
51
(ii) admissions or user fees described in Subsection
59-12-103
(1)(f);
52
(iii) sales of accommodations and services as provided in Subsection
59-12-103
(1)(i),
53
except for accommodations and services:
54
(A) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
55
of 2002;
56
(B) exclusively used by:
57
(I) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
58
Olympic Winter Games of 2002; or
59
(II) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
60
Games of 2002; and
61
(C) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
62
does not receive reimbursement; or
63
(iv) a lease or rental of a vehicle as defined in Section
41-1a-102
, except for a lease or
64
rental of a vehicle:
65
(A) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
66
of 2002;
67
(B) exclusively used by:
68
(I) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
69
Olympic Winter Games of 2002; or
70
(II) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
71
Games of 2002; and
72
(C) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
73
does not receive reimbursement;
74
(9) sales of vehicles of a type required to be registered under the motor vehicle laws of this
75
state which are made to bona fide nonresidents of this state and are not afterwards registered or
76
used in this state except as necessary to transport them to the borders of this state;
77
(10) sales of medicine;
78
(11) sales or use of property, materials, or services used in the construction of or
79
incorporated in pollution control facilities allowed by Sections
19-2-123
through
19-2-127
;
80
(12) sales of meals served by:
81
(a) churches, charitable institutions, and institutions of higher education, if the meals are
82
not available to the general public; and
83
(b) inpatient meals provided at medical or nursing facilities;
84
(13) isolated or occasional sales by persons not regularly engaged in business, except the
85
sale of vehicles or vessels required to be titled or registered under the laws of this state in which
86
case the tax is based upon:
87
(a) the bill of sale or other written evidence of value of the vehicle or vessel being sold;
88
or
89
(b) in the absence of a bill of sale or other written evidence of value, the then existing fair
90
market value of the vehicle or vessel being sold as determined by the commission;
91
(14) (a) the following purchases or leases by a manufacturer on or after July 1, 1995:
92
(i) machinery and equipment:
93
(A) used in the manufacturing process;
94
(B) having an economic life of three or more years; and
95
(C) used:
96
(I) to manufacture an item sold as tangible personal property; and
97
(II) in new or expanding operations in a manufacturing facility in the state; and
98
(ii) subject to the provisions of Subsection (14)(b), normal operating replacements that:
99
(A) have an economic life of three or more years;
100
(B) are used in the manufacturing process in a manufacturing facility in the state;
101
(C) are used to replace or adapt an existing machine to extend the normal estimated useful
102
life of the machine; and
103
(D) do not include repairs and maintenance;
104
(b) the rates for the exemption under Subsection (14)(a)(ii) are as follows:
105
(i) beginning July 1, 1996, through June 30, 1997, 30% of the sale or lease described in
106
Subsection (14)(a)(ii) is exempt;
107
(ii) beginning July 1, 1997, through June 30, 1998, 60% of the sale or lease described in
108
Subsection (14)(a)(ii) is exempt; and
109
(iii) beginning July 1, 1998, 100% of the sale or lease described in Subsection (14)(a)(ii)
110
is exempt;
111
(c) for purposes of this Subsection (14), the commission shall by rule define the terms
112
"new or expanding operations" and "establishment"; and
113
(d) on or before October 1, 1991, and every five years after October 1, 1991, the
114
commission shall:
115
(i) review the exemptions described in Subsection (14)(a) and make recommendations to
116
the Revenue and Taxation Interim Committee concerning whether the exemptions should be
117
continued, modified, or repealed; and
118
(ii) include in its report:
119
(A) the cost of the exemptions;
120
(B) the purpose and effectiveness of the exemptions; and
121
(C) the benefits of the exemptions to the state;
122
(15) sales of tooling, special tooling, support equipment, and special test equipment used
123
or consumed exclusively in the performance of any aerospace or electronics industry contract with
124
the United States government or any subcontract under that contract, but only if, under the terms
125
of that contract or subcontract, title to the tooling and equipment is vested in the United States
126
government as evidenced by a government identification tag placed on the tooling and equipment
127
or by listing on a government-approved property record if a tag is impractical;
128
(16) intrastate movements of:
129
(a) freight by common carriers; and
130
(b) passengers:
131
(i) by taxicabs as described in SIC Code 4121 of the 1987 Standard Industrial
132
Classification Manual of the federal Executive Office of the President, Office of Management and
133
Budget; or
134
(ii) transported by an establishment described in SIC Code 4111 of the 1987 Standard
135
Industrial Classification Manual of the federal Executive Office of the President, Office of
136
Management and Budget, if the transportation originates and terminates within a county of the
137
first, second, or third class;
138
(17) sales of newspapers or newspaper subscriptions;
139
(18) tangible personal property, other than money, traded in as full or part payment of the
140
purchase price, except that for purposes of calculating sales or use tax upon vehicles not sold by
141
a vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
142
(a) the bill of sale or other written evidence of value of the vehicle being sold and the
143
vehicle being traded in; or
144
(b) in the absence of a bill of sale or other written evidence of value, the then existing fair
145
market value of the vehicle being sold and the vehicle being traded in, as determined by the
146
commission;
147
(19) sprays and insecticides used to control insects, diseases, and weeds for commercial
148
production of fruits, vegetables, feeds, seeds, and animal products, but not those sprays and
149
insecticides used in the processing of the products;
150
(20) (a) sales of tangible personal property used or consumed primarily and directly in
151
farming operations, including sales of irrigation equipment and supplies used for agricultural
152
production purposes, whether or not they become part of real estate and whether or not installed
153
by farmer, contractor, or subcontractor, but not sales of:
154
(i) machinery, equipment, materials, and supplies used in a manner that is incidental to
155
farming, such as hand tools with a unit purchase price not in excess of $250, and maintenance and
156
janitorial equipment and supplies;
157
(ii) tangible personal property used in any activities other than farming, such as office
158
equipment and supplies, equipment and supplies used in sales or distribution of farm products, in
159
research, or in transportation; or
160
(iii) any vehicle required to be registered by the laws of this state, without regard to the use
161
to which the vehicle is put;
162
(b) sales of hay;
163
(21) exclusive sale of locally grown seasonal crops, seedling plants, or garden, farm, or
164
other agricultural produce if sold by a producer during the harvest season;
165
(22) purchases of food as defined in 7 U.S.C. Sec. 2012(g) under the Food Stamp
166
Program, 7 U.S.C. Sec. 2011 et seq.;
167
(23) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
168
nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor, wholesaler,
169
or retailer for use in packaging tangible personal property to be sold by that manufacturer,
170
processor, wholesaler, or retailer;
171
(24) property stored in the state for resale;
172
(25) property brought into the state by a nonresident for his or her own personal use or
173
enjoyment while within the state, except property purchased for use in Utah by a nonresident living
174
and working in Utah at the time of purchase;
175
(26) property purchased for resale in this state, in the regular course of business, either in
176
its original form or as an ingredient or component part of a manufactured or compounded product;
177
(27) property upon which a sales or use tax was paid to some other state, or one of its
178
subdivisions, except that the state shall be paid any difference between the tax paid and the tax
179
imposed by this part and Part 2, and no adjustment is allowed if the tax paid was greater than the
180
tax imposed by this part and Part 2;
181
(28) any sale of a service described in Subsections
59-12-103
(1)(b), (c), and (d) to a person
182
for use in compounding a service taxable under the subsections;
183
(29) purchases of supplemental foods as defined in 42 U.S.C. Sec. 1786(b)(14) under the
184
special supplemental nutrition program for women, infants, and children established in 42 U.S.C.
185
Sec. 1786;
186
(30) beginning on July 1, 1999, through June 30, 2004, sales or leases of rolls, rollers,
187
refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
188
of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification Manual
189
of the federal Executive Office of the President, Office of Management and Budget;
190
(31) sales of boats of a type required to be registered under Title 73, Chapter 18, State
191
Boating Act, boat trailers, and outboard motors which are made to bona fide nonresidents of this
192
state and are not thereafter registered or used in this state except as necessary to transport them to
193
the borders of this state;
194
(32) sales of tangible personal property to persons within this state that is subsequently
195
shipped outside the state and incorporated pursuant to contract into and becomes a part of real
196
property located outside of this state, except to the extent that the other state or political entity
197
imposes a sales, use, gross receipts, or other similar transaction excise tax on it against which the
198
other state or political entity allows a credit for taxes imposed by this chapter;
199
(33) sales of aircraft manufactured in Utah if sold for delivery and use outside Utah where
200
a sales or use tax is not imposed, even if the title is passed in Utah;
201
(34) amounts paid for the purchase of telephone service for purposes of providing
202
telephone service;
203
(35) fares charged to persons transported directly by a public transit district created under
204
the authority of Title 17A, Chapter 2, Part 10, Utah Public Transit District Act;
205
(36) sales or leases of vehicles to, or use of vehicles by an authorized carrier;
206
(37) (a) 45% of the sales price of any new manufactured home; and
207
(b) 100% of the sales price of any used manufactured home;
208
(38) sales relating to schools and fundraising sales;
209
(39) sales or rentals of home medical equipment and supplies;
210
(40) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
211
Section
72-11-102
; and
212
(b) the commission shall by rule determine the method for calculating sales exempt under
213
Subsection (40)(a) that are not separately metered and accounted for in utility billings;
214
(41) sales to a ski resort of:
215
(a) snowmaking equipment;
216
(b) ski slope grooming equipment; and
217
(c) passenger ropeways as defined in Section
72-11-102
;
218
(42) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
219
(43) sales or rentals of the right to use or operate for amusement, entertainment, or
220
recreation a coin-operated amusement device as defined in Section
59-12-102
;
221
(44) sales of cleaning or washing of tangible personal property by a coin-operated car wash
222
machine;
223
(45) sales by the state or a political subdivision of the state, except state institutions of
224
higher education as defined in Section
53B-3-102
, of:
225
(a) photocopies; or
226
(b) other copies of records held or maintained by the state or a political subdivision of the
227
state; and
228
(46) (a) amounts paid:
229
(i) to a person providing intrastate transportation to an employer's employee to or from the
230
employee's primary place of employment;
231
(ii) by an:
232
(A) employee; or
233
(B) employer; and
234
(iii) pursuant to a written contract between:
235
(A) the employer; and
236
(B) (I) the employee; or
237
(II) a person providing transportation to the employer's employee; and
238
(b) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
239
commission may for purposes of Subsection (46)(a) make rules defining what constitutes an
240
employee's primary place of employment;
241
(47) amounts paid for admission to an athletic event at an institution of higher education
242
that is subject to the provisions of Title IX of the Education Amendments of 1972, 20 U.S.C. Sec.
243
1681 et seq.;
244
(48) sales of telephone service charged to a prepaid telephone calling card;
245
(49) (a) sales of hearing aids; and
246
(b) sales of hearing aid accessories; [and]
247
(50) (a) sales made to or by:
248
(i) an area agency on aging; or
249
(ii) a senior citizen center owned by a county, city, or town; or
250
(b) sales made by a senior citizen center that contracts with an area agency on aging; and
251
(51) an amount paid by or charged to a purchaser for accommodations and services
252
described in Subsection
59-12-103
(1)(i) to the extent the amount is exempt under Section
253
59-12-104.2
.
254
Section 2.
Section
59-12-104.2
is enacted to read:
255
59-12-104.2. Exemption for accommodations and services taxed by an Indian Tribe.
256
(1) As used in this section:
257
(a) "Indian tribe" means a federally recognized Indian tribe.
258
(b) "Tribal taxing area" means the geographical area that:
259
(i) is subject to the taxing authority of the tribe; and
260
(ii) consists of:
261
(A) notwithstanding the issuance of a patent, all land:
262
(I) within the limits of an Indian reservation under the jurisdiction of the federal
263
government; and
264
(II) including any rights-of-way running through the reservation; and
265
(B) all Indian allotments the Indian titles to which have not been extinguished, including
266
any rights-of-way running through an Indian allotment.
267
(2) (a) Beginning July 1, 2000, amounts paid by or charged to a purchaser for
268
accommodations and services described in Subsection
59-12-103
(1)(i) are exempt from the tax
269
imposed by Subsection
59-12-103
(2)(c) to the extent permitted under Subsection (2)(b) if:
270
(i) the accommodations and services described in Subsection
59-12-103
(1)(i) are provided
271
within:
272
(A) the state; and
273
(B) a tribal taxing area;
274
(ii) an Indian tribe imposes and collects a tax on the amounts paid by or charged to the
275
purchaser for the accommodations and services described in Subsection
59-12-103
(1)(i);
276
(iii) the Indian tribe imposes the tax described in Subsection
(2)(a)(ii)
without regard to
277
whether or not the purchaser that pays or is charged for the accommodations and services is an
278
enrolled member of the Indian tribe; and
279
(iv) meets the requirements of Subsection (4).
280
(b) If but for Subsection (2)(a) the amounts paid by or charged to a purchaser for
281
accommodations and services described in Subsection (2)(a) are subject to a tax imposed by
282
Subsection
59-12-103
(2)(c):
283
(i) the vendor shall collect and pay to the state the difference described in Subsection (3)
284
if that difference is greater than $0; and
285
(ii) a person may not require the state to provide a refund, a credit, or similar tax relief if
286
the difference described in Subsection (3) is equal to or less than $0.
287
(3) The difference described in Subsection (2)(b) is equal to the difference between:
288
(a) the amount of tax imposed by Subsection
59-12-103
(2)(c) on the amounts paid by or
289
charged to a purchaser for accommodations and services described in Subsection
59-12-103
(1)(i);
290
less
291
(b) the tax imposed and collected by an Indian tribe on the amounts paid by or charged to
292
a purchaser for the accommodations and services described in Subsection
59-12-103
(1)(i).
293
(4) (a) (i) If, on or after May 1, 2000, an Indian tribe enacts a tax on amounts paid by or
294
charged to a purchaser for accommodations and services described in Subsection
59-12-103
(1)(i),
295
the exemption provided in Subsection (2) is not effective until the first day of the calender quarter
296
after a 60-day period beginning on the date the commission receives notice meeting the
297
requirements of Subsection (4)(a)(ii) from the Indian tribe.
298
(ii) The notice described in Subsection (4)(a)(i) shall state:
299
(A) that the Indian tribe has enacted or will enact a tax on amounts paid by or charged to
300
a purchaser for accommodations and services described in Subsection
59-12-103
(1)(i);
301
(B) the effective date of the tax described in Subsection (4)(a)(ii)(A); and
302
(C) the rate of the tax described in Subsection (4)(a)(ii)(A).
303
(b) (i) If, on or after May 1, 2000, an Indian tribe changes the tax rate of a tax imposed on
304
amounts paid by or charged to a purchaser for accommodations and services described in
305
Subsection
59-12-103
(1)(i), any change in the amount of the exemption under Subsection (2) as
306
a result of the change in the tax rate is not effective until the first day of the calender quarter after
307
a 60-day period beginning on the date the commission receives notice meeting the requirements
308
of Subsection (4)(b)(ii) from the Indian tribe.
309
(ii) The notice described in Subsection (4)(b)(i) shall state:
310
(A) that the Indian tribe has changed or will change the tax rate of a tax imposed on
311
amounts paid by or charged to a purchaser for accommodations and services described in
312
Subsection
59-12-103
(1)(i);
313
(B) the effective date of the rate change on the tax described in Subsection (4)(b)(ii)(A);
314
and
315
(C) the new rate of the tax described in Subsection (4)(b)(ii)(A).
Legislative Review Note
as of 1-21-00 10:20 AM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.