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S.B. 59
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SALES AND USE TAX EXEMPTION FOR
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FOOD
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Michael G. Waddoups
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AN ACT RELATING TO THE SALES AND USE TAX ACT; EXEMPTING SALES OF FOOD
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FROM SALES AND USE TAXATION; PROVIDING DEFINITIONS; INCREASING THE
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STATE SALES AND USE TAX RATE; AUTHORIZING A COUNTY, CITY, OR TOWN TO
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INCREASE CERTAIN SALES AND USE TAX RATES THAT THE COUNTY, CITY, OR
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TOWN IMPOSES; MODIFYING THE PROCEDURES FOR A COUNTY, CITY, OR TOWN
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TO IMPOSE OR INCREASE CERTAIN SALES AND USE TAXES; AND MAKING
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TECHNICAL CHANGES.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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59-12-102, as last amended by Chapters 63 and 362, Laws of Utah 1999
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59-12-103, as last amended by Chapter 133, Laws of Utah 1999
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59-12-104, as last amended by Chapters 63, 155, 195, 306, 313 and 362, Laws of Utah
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1999
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59-12-204, as last amended by Chapter 133, Laws of Utah 1999
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59-12-205, as last amended by Chapter 133, Laws of Utah 1999
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59-12-401, as last amended by Chapter 291, Laws of Utah 1998
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59-12-402, as last amended by Chapter 291, Laws of Utah 1998
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59-12-501, as last amended by Chapter 291, Laws of Utah 1998
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59-12-801, as last amended by Chapter 261, Laws of Utah 1998
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59-12-802, as last amended by Chapters 261 and 291, Laws of Utah 1998
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59-12-803, as last amended by Chapter 261, Laws of Utah 1998
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59-12-804, as enacted by Chapter 111, Laws of Utah 1994
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59-12-1001, as last amended by Chapter 291, Laws of Utah 1998
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59-12-1102, as last amended by Chapter 13, Laws of Utah 1998
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59-12-1302, as enacted by Chapter 243, Laws of Utah 1998
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ENACTS:
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59-12-805, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
59-12-102
is amended to read:
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59-12-102. Definitions.
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As used in this chapter:
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(1) (a) "Admission or user fees" includes season passes.
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(b) "Admission or user fees" does not include annual membership dues to private
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organizations.
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(2) "Area agency on aging" is as defined in Section
62A-3-101
.
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(3) "Authorized carrier" means:
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(a) in the case of vehicles operated over public highways, the holder of credentials
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indicating that the vehicle is or will be operated pursuant to both the International Registration
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Plan (IRP) and the International Fuel Tax Agreement (IFTA);
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(b) in the case of aircraft, the holder of a Federal Aviation Administration (FAA) operating
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certificate or air carrier's operating certificate; or
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(c) in the case of locomotives, freight cars, railroad work equipment, or other rolling stock,
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the holder of a certificate issued by the United States Interstate Commerce Commission.
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(4) (a) For purposes of Subsection
59-12-104
(43), "coin-operated amusement device"
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means:
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(i) a coin-operated amusement, skill, or ride device;
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(ii) that is not controlled through vendor-assisted, over-the-counter, sales of tokens; and
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(iii) includes a music machine, pinball machine, billiard machine, video game machine,
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arcade machine, and a mechanical or electronic skill game or ride.
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(b) For purposes of Subsection
59-12-104
(43), "coin-operated amusement device" does
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not mean a coin-operated amusement device possessing a coinage mechanism that:
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(i) accepts and registers multiple denominations of coins; and
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(ii) allows the vendor to collect the sales and use tax at the time an amusement device is
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activated and operated by a person inserting coins into the device.
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(5) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels
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that does not constitute industrial use under Subsection [(13)] (14) or residential use under
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Subsection [(21)] (22).
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(6) (a) "Common carrier" means a person engaged in or transacting the business of
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transporting passengers, freight, merchandise, or other property for hire within this state.
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(b) (i) "Common carrier" does not include a person who, at the time the person is traveling
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to or from that person's place of employment, transports a passenger to or from the passenger's
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place of employment.
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(ii) For purposes of Subsection (6)(b)(i), in accordance with Title 63, Chapter 46a, Utah
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Administrative Rulemaking Act, the commission may make rules defining what constitutes a
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person's place of employment.
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(7) "Component part" includes:
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(a) poultry, dairy, and other livestock feed, and their components;
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(b) baling ties and twine used in the baling of hay and straw;
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(c) fuel used for providing temperature control of orchards and commercial greenhouses
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doing a majority of their business in wholesale sales, and for providing power for off-highway type
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farm machinery; and
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(d) feed, seeds, and seedlings.
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(8) "Construction materials" means any tangible personal property that will be converted
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into real property.
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(9) (a) Subject to Subsections (9)(b) and (c), for purposes of Subsection
59-12-104
(4),
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"food" is as defined in 7 U.S.C. Sec 2012(g) under the Food Stamp Program, 7 U.S.C. Sec. 2011
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et seq., regardless of whether the retailer from whom the food is purchased or the purchaser
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participates in a federal or state food program.
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(b) "Food" includes:
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(i) hot or cold foods prepared for immediate consumption on or off the premises of a
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retailer that does not meet the definition of a restaurant under Section
59-12-602
; or
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(ii) food sold through vending machines.
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(c) "Food" does not include prepared foods or beverages that are sold by a restaurant as
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defined in Section
59-12-602
.
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[(9)] (10) (a) "Fundraising sales" means sales:
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(i) (A) made by a public or private elementary or secondary school; or
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(B) made by a public or private elementary or secondary school student, grades
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kindergarten through 12;
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(ii) that are for the purpose of raising funds for the school to purchase equipment,
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materials, or provide transportation; and
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(iii) that are part of an officially sanctioned school activity.
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(b) For purposes of Subsection [(9)] (10)(a)(iii), "officially sanctioned school activity"
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means a school activity:
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(i) that is conducted in accordance with a formal policy adopted by the school or school
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district governing the authorization and supervision of fundraising activities;
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(ii) that does not directly or indirectly compensate an individual teacher or other
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educational personnel by direct payment, commissions, or payment in kind; and
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(iii) the net or gross revenues from which are deposited in a dedicated account controlled
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by the school or school district.
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[(10)] (11) (a) "Hearing aid" means:
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(i) an instrument or device having an electronic component that is designed to:
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(A) (I) improve impaired human hearing; or
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(II) correct impaired human hearing; and
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(B) (I) be worn in the human ear; or
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(II) affixed behind the human ear;
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(ii) an instrument or device that is surgically implanted into the cochlea; or
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(iii) a telephone amplifying device.
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(b) "Hearing aid" does not include:
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(i) except as provided in Subsection [(10)] (11)(a)(i)(B) or [(10)] (11)(a)(ii), an instrument
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or device having an electronic component that is designed to be worn on the body;
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(ii) except as provided in Subsection [(10)] (11)(a)(iii), an assistive listening device or
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system designed to be used by one individual, including:
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(A) a personal amplifying system;
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(B) a personal FM system;
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(C) a television listening system; or
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(D) a device or system similar to a device or system described in Subsections [(10)]
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(11)(b)(ii)(A) through (C); or
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(iii) an assistive listening device or system designed to be used by more than one
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individual, including:
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(A) a device or system installed in:
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(I) an auditorium;
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(II) a church;
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(III) a conference room;
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(IV) a synagogue; or
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(V) a theater; or
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(B) a device or system similar to a device or system described in Subsections [(10)]
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(11)(b)(iii)(A)(I) through (V).
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[(11)] (12) (a) "Hearing aid accessory" means a hearing aid:
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(i) component;
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(ii) attachment; or
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(iii) accessory.
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(b) "Hearing aid accessory" includes:
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(i) a hearing aid neck loop;
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(ii) a hearing aid cord;
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(iii) a hearing aid ear mold;
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(iv) hearing aid tubing;
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(v) a hearing aid ear hook; or
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(vi) a hearing aid remote control.
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(c) "Hearing aid accessory" does not include:
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(i) a component, attachment, or accessory designed to be used only with an:
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(A) instrument or device described in Subsection [(10)] (11)(b)(i); or
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(B) assistive listening device or system described in Subsection [(10)] (11)(b)(ii) or (iii);
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or
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(ii) a hearing aid battery.
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[(12)] (13) (a) "Home medical equipment and supplies" means equipment and supplies
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that:
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(i) a licensed physician prescribes or authorizes in writing as necessary for the treatment
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of a medical illness or injury or as necessary to mitigate an impairment resulting from illness or
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injury;
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(ii) are used exclusively by the person for whom they are prescribed to serve a medical
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purpose; and
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(iii) are listed as eligible for payment under Title 18 of the federal Social Security Act or
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under the state plan for medical assistance under Title 19 of the federal Social Security Act.
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(b) "Home medical equipment and supplies" does not include:
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(i) equipment and supplies purchased by, for, or on behalf of any health care facility, as
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defined in Subsection [(12)] (13)(c), doctor, nurse, or other health care provider for use in their
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professional practice;
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(ii) eyeglasses, contact lenses, or equipment to correct impaired vision; or
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(iii) hearing aids or hearing aid accessories.
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(c) For purposes of Subsection [(12)] (13)(b)(i), "health care facility" includes:
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(i) a clinic;
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(ii) a doctor's office; and
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(iii) a health care facility as defined in Section
26-21-2
.
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[(13)] (14) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
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other fuels in:
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(a) mining or extraction of minerals;
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(b) agricultural operations to produce an agricultural product up to the time of harvest or
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placing the agricultural product into a storage facility, including:
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(i) commercial greenhouses;
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(ii) irrigation pumps;
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(iii) farm machinery;
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(iv) implements of husbandry as defined in Subsection
41-1a-102
(23) that are not
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registered under Title 41, Chapter 1a, Part 2, Registration; and
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(v) other farming activities; and
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(c) manufacturing tangible personal property at an establishment described in SIC Codes
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2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal Executive Office
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of the President, Office of Management and Budget.
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[(14)] (15) "Manufactured home" means any manufactured home or mobile home as
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defined in Title 58, Chapter 56, Utah Uniform Building Standards Act.
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[(15)] (16) For purposes of Subsection
59-12-104
(14), "manufacturing facility" means:
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(a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard Industrial
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Classification Manual of the federal Executive Office of the President, Office of Management and
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Budget; or
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(b) a scrap recycler if:
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(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process one
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or more of the following items into prepared grades of processed materials for use in new products:
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(A) iron;
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(B) steel;
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(C) nonferrous metal;
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(D) paper;
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(E) glass;
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(F) plastic;
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(G) textile; or
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(H) rubber; and
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(ii) the new products under Subsection [(15)] (16)(b)(i) would otherwise be made with
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nonrecycled materials.
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[(16)] (17) (a) "Medicine" means:
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(i) insulin, syringes, and any medicine prescribed for the treatment of human ailments by
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a person authorized to prescribe treatments and dispensed on prescription filled by a registered
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pharmacist, or supplied to patients by a physician, surgeon, or podiatric physician;
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(ii) any medicine dispensed to patients in a county or other licensed hospital if prescribed
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for that patient and dispensed by a registered pharmacist or administered under the direction of a
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physician; and
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(iii) any oxygen or stoma supplies prescribed by a physician or administered under the
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direction of a physician or paramedic.
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(b) "Medicine" does not include:
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(i) any auditory, prosthetic, ophthalmic, or ocular device or appliance; or
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(ii) any alcoholic beverage.
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[(17)] (18) "Olympic merchandise" means tangible personal property bearing an Olympic
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designation, emblem, insignia, mark, logo, service mark, symbol, terminology, trademark, or other
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copyrighted or protected material, including:
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(a) one or more of the following terms:
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(i) "Olympic;"
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(ii) "Olympiad;" or
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(iii) "Citius Altius Fortius;"
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(b) the symbol of the International Olympic Committee, consisting of five interlocking
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rings;
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(c) the emblem of the International Olympic Committee Corporation;
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(d) a United States Olympic Committee designation, emblem, insignia, mark, logo, service
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mark, symbol, terminology, trademark, or other copyrighted or protected material;
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(e) any emblem of the Winter Olympic Games of 2002 that is officially designated by the
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Salt Lake Organizing Committee of the Winter Olympic Games of 2002; or
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(f) the mascot of the Winter Olympic Games of 2002.
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[(18)] (19) (a) "Other fuels" means products that burn independently to produce heat or
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energy.
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(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible personal
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property.
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[(19)] (20) "Person" includes any individual, firm, partnership, joint venture, association,
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corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
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municipality, district, or other local governmental entity of the state, or any group or combination
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acting as a unit.
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[(20)] (21) "Purchase price" means the amount paid or charged for tangible personal
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property or any other taxable [item or service] transaction under Subsection
59-12-103
(1),
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excluding only cash discounts taken or any excise tax imposed on the purchase price by the federal
240
government.
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[(21)] (22) "Residential use" means the use in or around a home, apartment building,
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sleeping quarters, and similar facilities or accommodations.
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[(22)] (23) (a) "Retail sale" means any sale within the state of tangible personal property
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or any other taxable [item or service] transaction under Subsection
59-12-103
(1), other than resale
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of such property, item, or service by a retailer or wholesaler to a user or consumer.
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(b) "Retail sale" includes sales by any farmer or other agricultural producer of poultry,
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eggs, or dairy products to consumers if the sales have an average monthly sales value of $125 or
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more.
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(c) "Retail sale" does not include, and no additional sales or use tax shall be assessed
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against, those transactions where a purchaser of tangible personal property pays applicable sales
251
or use taxes on its initial nonexempt purchases of property and then enters into a sale-leaseback
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transaction by which title to such property is transferred by the purchaser-lessee to a lessor for
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consideration, provided:
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(i) the transaction is intended as a form of financing for the property to the
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purchaser-lessee; and
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(ii) pursuant to generally accepted accounting principles, the purchaser-lessee is required
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to capitalize the subject property for financial reporting purposes, and account for the lease
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payments as payments made under a financing arrangement.
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[(23)] (24) (a) "Retailer" means any person engaged in a regularly organized retail business
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in tangible personal property or any other taxable [item or service] transaction under Subsection
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59-12-103
(1), and who is selling to the user or consumer and not for resale.
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(b) "Retailer" includes commission merchants, auctioneers, and any person regularly
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engaged in the business of selling to users or consumers within the state.
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(c) "Retailer" includes any person who engages in regular or systematic solicitation of a
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consumer market in this state by the distribution of catalogs, periodicals, advertising flyers, or
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other advertising, or by means of print, radio or television media, by mail, telegraphy, telephone,
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computer data base, cable, optic, microwave, or other communication system.
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(d) "Retailer" does not include farmers, gardeners, stockmen, poultrymen, or other growers
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or agricultural producers producing and doing business on their own premises, except those who
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are regularly engaged in the business of buying or selling for a profit.
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(e) For purposes of this chapter the commission may regard as retailers the following if
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they determine it is necessary for the efficient administration of this chapter: salesmen,
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representatives, peddlers, or canvassers as the agents of the dealers, distributors, supervisors, or
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employers under whom they operate or from whom they obtain the tangible personal property sold
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by them, irrespective of whether they are making sales on their own behalf or on behalf of these
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dealers, distributors, supervisors, or employers, except that:
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(i) a printer's facility with which a retailer has contracted for printing shall not be
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considered to be a salesman, representative, peddler, canvasser, or agent of the retailer; and
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(ii) the ownership of property that is located at the premises of a printer's facility with
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which the retailer has contracted for printing and that consists of the final printed product, property
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that becomes a part of the final printed product, or copy from which the printed product is
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produced, shall not result in the retailer being deemed to have or maintain an office, distribution
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house, sales house, warehouse, service enterprise, or other place of business, or to maintain a stock
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of goods, within this state.
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[(24)] (25) "Sale" means any transfer of title, exchange, or barter, conditional or otherwise,
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in any manner, of tangible personal property or any other taxable [item or service] transaction
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under Subsection
59-12-103
(1), for a consideration. It includes:
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(a) installment and credit sales;
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(b) any closed transaction constituting a sale;
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(c) any sale of electrical energy, gas, services, or entertainment taxable under this chapter;
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(d) any transaction if the possession of property is transferred but the seller retains the title
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as security for the payment of the price; and
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(e) any transaction under which right to possession, operation, or use of any article of
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tangible personal property is granted under a lease or contract and the transfer of possession would
295
be taxable if an outright sale were made.
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[(25)] (26) (a) "Sales relating to schools" means sales by a public school district or public
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or private elementary or secondary school, grades kindergarten through 12, that are directly related
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to the school's or school district's educational functions or activities and include:
299
(i) the sale of textbooks, textbook fees, laboratory fees, laboratory supplies, and safety
300
equipment;
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(ii) the sale of clothing that:
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(A) a student is specifically required to wear as a condition of participation in a
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school-related event or activity; and
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(B) is not readily adaptable to general or continued usage to the extent that it takes the
305
place of ordinary clothing;
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(iii) sales of food if the net or gross revenues generated by the food sales are deposited into
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a school district fund or school fund dedicated to school meals; and
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(iv) transportation charges for official school activities.
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(b) "Sales relating to schools" does not include:
310
(i) gate receipts;
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(ii) special event admission fees;
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(iii) bookstore sales of items that are not educational materials or supplies; and
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(iv) except as provided in Subsection [(25)] (26)(a)(ii), clothing.
314
[(26)] (27) "Senior citizen center" means a facility having the primary purpose of
315
providing services to the aged as defined in Section
62A-3-101
.
316
[(27)] (28) "State" means the state of Utah, its departments, and agencies.
317
[(28)] (29) "Storage" means any keeping or retention of tangible personal property or any
318
other taxable [item or service] transaction under Subsection
59-12-103
(1), in this state for any
319
purpose except sale in the regular course of business.
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[(29)] (30) (a) "Tangible personal property" means:
321
(i) all goods, wares, merchandise, produce, and commodities;
322
(ii) all tangible or corporeal things and substances which are dealt in or capable of being
323
possessed or exchanged;
324
(iii) water in bottles, tanks, or other containers; and
325
(iv) all other physically existing articles or things, including property severed from real
326
estate.
327
(b) "Tangible personal property" does not include:
328
(i) real estate or any interest or improvements in real estate;
329
(ii) bank accounts, stocks, bonds, mortgages, notes, and other evidence of debt;
330
(iii) insurance certificates or policies;
331
(iv) personal or governmental licenses;
332
(v) water in pipes, conduits, ditches, or reservoirs;
333
(vi) currency and coinage constituting legal tender of the United States or of a foreign
334
nation; and
335
(vii) all gold, silver, or platinum ingots, bars, medallions, or decorative coins, not
336
constituting legal tender of any nation, with a gold, silver, or platinum content of not less than
337
80%.
338
[(30)] (31) (a) "Use" means the exercise of any right or power over tangible personal
339
property under Subsection
59-12-103
(1), incident to the ownership or the leasing of that property,
340
item, or service.
341
(b) "Use" does not include the sale, display, demonstration, or trial of that property in the
342
regular course of business and held for resale.
343
[(31)] (32) "Vehicle" means any aircraft, as defined in Section
72-10-102
; any vehicle, as
344
defined in Section
41-1a-102
; any off-highway vehicle, as defined in Section
41-22-2
; and any
345
vessel, as defined in Section
41-1a-102
; that is required to be titled, registered, or both. "Vehicle"
346
for purposes of Subsection
59-12-104
(36) only, also includes any locomotive, freight car, railroad
347
work equipment, or other railroad rolling stock.
348
[(32)] (33) "Vehicle dealer" means a person engaged in the business of buying, selling, or
349
exchanging vehicles as defined in Subsection [(31)] (32).
350
[(33)] (34) (a) "Vendor" means:
351
(i) any person receiving any payment or consideration upon a sale of tangible personal
352
property or any other taxable [item or service] transaction under Subsection
59-12-103
(1), or to
353
whom such payment or consideration is payable; and
354
(ii) any person who engages in regular or systematic solicitation of a consumer market in
355
this state by the distribution of catalogs, periodicals, advertising flyers, or other advertising, or by
356
means of print, radio or television media, by mail, telegraphy, telephone, computer data base,
357
cable, optic, microwave, or other communication system.
358
(b) "Vendor" does not mean a printer's facility described in Subsection [(23)] (24)(e).
359
Section 2.
Section
59-12-103
is amended to read:
360
59-12-103. Sales and use tax base -- Rate -- Use of sales and use tax revenues.
361
(1) [There is levied a] A tax is imposed on the purchaser as provided in this part for [the
362
amount] amounts paid or charged for the following transactions:
363
(a) retail sales of tangible personal property made within the state;
364
(b) [amount] amounts paid to common carriers or to telephone or telegraph corporations,
365
whether the corporations are municipally or privately owned, for:
366
(i) all transportation;
367
(ii) intrastate telephone service; or
368
(iii) telegraph service;
369
(c) sales of the following for commercial use:
370
(i) gas[,];
371
(ii) electricity[,];
372
(iii) heat[,];
373
(iv) coal[,];
374
(v) fuel oil[,]; or
375
(vi) other fuels [sold for commercial use];
376
(d) sales of the following for residential use:
377
(i) gas[,];
378
(ii) electricity[,];
379
(iii) heat[,];
380
(iv) coal[,];
381
(v) fuel oil[,]; or
382
(vi) other fuels [sold for residential use];
383
(e) [meals sold] sales of prepared food or beverages by a restaurant as defined in Section
384
59-12-602
;
385
(f) amounts paid or charged as admission or user fees for theaters, movies, operas,
386
museums, planetariums, shows of any type or nature, exhibitions, concerts, carnivals, amusement
387
parks, amusement rides, circuses, menageries, fairs, races, contests, sporting events, dances,
388
boxing [and] matches, wrestling matches, closed circuit television broadcasts, billiard [or] parlors,
389
pool parlors, bowling lanes, golf [and], miniature golf, golf driving ranges, batting cages, skating
390
rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides,
391
river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or any other
392
amusement, entertainment, recreation, exhibition, cultural, or athletic activity;
393
(g) amounts paid or charged for services:
394
(i) for repairs or renovations of tangible personal property; or [services]
395
(ii) to install tangible personal property in connection with other tangible personal
396
property;
397
(h) except as provided in Subsection
59-12-104
(7), amounts paid or charged for cleaning
398
or washing of tangible personal property;
399
(i) amounts paid or charged for tourist home, hotel, motel, or trailer court accommodations
400
and services for less than 30 consecutive days;
401
(j) amounts paid or charged for laundry [and] or dry cleaning services;
402
(k) amounts paid or charged for leases [and] or rentals of tangible personal property if [the
403
property]:
404
(i) the tangible personal property's situs is in this state[, if];
405
(ii) the lessee took possession of the tangible personal property in this state[,]; or [if]
406
(iii) within this state the tangible personal property is:
407
(A) stored[,];
408
(B) used[,]; or
409
(C) otherwise consumed [in this state];
410
(l) amounts paid or charged for tangible personal property if within this state the tangible
411
personal property is:
412
(i) stored[,];
413
(ii) used[,]; or
414
(iii) consumed [in this state]; and
415
(m) amounts paid or charged for prepaid telephone calling cards.
416
(2) Except [for] as provided in Subsection [(1)(d)] (3), the [rates of the] tax [levied under]
417
rates imposed on a transaction described in Subsection (1) [shall be] are as follows:
418
[(a) 5% through June 30, 1994;]
419
[(b) 4.875%] (a) beginning on July 1, 1994 through June 30, 1997, the tax rate is 4.875%;
420
[and]
421
[(c) 4.75%] (b) beginning on July 1, 1997, through December 31, 2000, the tax rate is
422
4.75%; and
423
(c) beginning on January 1, 2001, the tax rate is 5.25%.
424
(3) [The rates of the] Notwithstanding Subsection (2), beginning on January 1, 1990, the
425
tax [levied under] rate imposed on a transaction described in Subsection (1)(d) [shall be] is 2%
426
[from and after January 1, 1990].
427
(4) (a) There shall be deposited in an Olympics special revenue fund or funds as determined
428
by the Division of Finance under Section
51-5-4
, for the use of the Utah Sports Authority created
429
under Title 63A, Chapter 7, Utah Sports Authority Act:
430
(i) from January 1, 1990, through December 31, 1999, the amount of sales and use tax
431
generated by a 1/64% tax rate on the taxable [items and services] transactions under Subsection
432
(1);
433
(ii) from January 1, 1990, through June 30, 1999, the amount of revenue generated by a
434
1/64% tax rate under Section
59-12-204
or Section
59-12-205
on the taxable [items and services]
435
transactions under Subsection (1); and
436
(iii) interest earned on the amounts under Subsections (4)(a)(i) and (ii).
437
(b) These funds shall be used:
438
(i) by the Utah Sports Authority as follows:
439
(A) to the extent funds are available, to transfer directly to a debt service fund or to
440
otherwise reimburse to the state any amount expended on debt service or any other cost of any
441
bonds issued by the state to construct any public sports facility as defined in Section
63A-7-103
;
442
(B) to pay for the actual and necessary operating, administrative, legal, and other expenses
443
of the Utah Sports Authority, but not including protocol expenses for seeking and obtaining the
444
right to host the Winter Olympic Games; and
445
(C) unless the Legislature appropriates additional funds from the Olympics Special
446
Revenue Fund to the Utah Sports Authority, the Utah Sports Authority may not expend, loan, or
447
pledge in the aggregate more than:
448
(I) $59,000,000 of sales and use tax deposited into the Olympics special revenue fund
449
under Subsection (4)(a);
450
(II) the interest earned on the amount described in Subsection (4)(b)(i)(C)(I); and
451
(III) the revenues deposited into the Olympics Special Revenue Fund that are not sales and
452
use taxes deposited under Subsection (4)(a) or interest on the sales and use taxes;
453
(ii) to pay salary, benefits, or administrative costs associated with the State Olympic
454
Officer under Subsection
63A-10-103
(3), except that the salary, benefits, or administrative costs
455
may not be paid from the sales and tax revenues generated by municipalities or counties and
456
deposited under Subsection (4)(a)(ii).
457
(c) A payment of salary, benefits, or administrative costs under Subsection
63A-10-103
(3)
458
is not considered an expenditure of the Utah Sports Authority.
459
(d) If the Legislature appropriates additional funds under Subsection (4)(b)(i)(C), the
460
authority may not expend, loan, pledge, or enter into any agreement to expend, loan, or pledge the
461
appropriated funds unless the authority:
462
(i) contracts in writing for the full reimbursement of the monies to the Olympics special
463
revenue fund by a public sports entity or other person benefitting from the expenditure; and
464
(ii) obtains a security interest that secures payment or performance of the obligation to
465
reimburse.
466
(e) A contract or agreement entered into in violation of Subsection (4)(d) is void.
467
(5) (a) From July 1, 1997, the annual amount of sales and use tax generated by a 1/8% tax
468
rate on the taxable [items and services] transactions under Subsection (1) shall be used as follows:
469
(i) 50% shall be used for water and wastewater projects as provided in Subsections (5)(b)
470
through (f); and
471
(ii) 50% shall be used for transportation projects as provided in Subsections (5)(g) through
472
(h).
473
(b) Five hundred thousand dollars each year shall be transferred to the Agriculture
474
Resource Development Fund created in Section
4-18-6
.
475
(c) Fifty percent of the remaining amount generated by 50% of the 1/8% tax rate shall be
476
transferred to the Water Resources Conservation and Development Fund created in Section
477
73-10-24
for use by the Division of Water Resources. In addition to the uses allowed of the fund
478
under Section
73-10-24
, the fund may also be used to:
479
(i) provide a portion of the local cost share, not to exceed in any fiscal year 50% of the
480
funds made available to the Division of Water Resources under this section, of potential project
481
features of the Central Utah Project;
482
(ii) conduct hydrologic and geotechnical investigations by the Department of Natural
483
Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
484
quantifying surface and ground water resources and describing the hydrologic systems of an area
485
in sufficient detail so as to enable local and state resource managers to plan for and accommodate
486
growth in water use without jeopardizing the resource;
487
(iii) fund state required dam safety improvements; and
488
(iv) protect the state's interest in interstate water compact allocations, including the hiring
489
of technical and legal staff.
490
(d) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
491
shall be transferred to the Utah Wastewater Loan Program subaccount created in Section
73-10c-5
492
for use by the Water Quality Board to fund wastewater projects as defined in Section
73-10b-2
.
493
(e) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
494
shall be transferred to the Drinking Water Loan Program subaccount created in Section
73-10c-5
495
for use by the Division of Drinking Water to:
496
(i) provide for the installation and repair of collection, treatment, storage, and distribution
497
facilities for any public water system, as defined in Section
19-4-102
;
498
(ii) develop underground sources of water, including springs and wells; and
499
(iii) develop surface water sources.
500
(f) Notwithstanding Subsections (5)(b), (c), (d), and (e), $100,000 of the remaining amount
501
generated by 50% of the 1/8% tax rate each year shall be transferred as dedicated credits to the
502
Division of Water Rights to cover the costs incurred in hiring legal and other technical staff for the
503
adjudication of water rights. Any remaining balance at the end of each fiscal year shall lapse back
504
to the contributing funds on a prorated basis.
505
(g) Fifty percent of the 1/8% tax rate shall be transferred to the class B and class C roads
506
account to be expended as provided in Title 72, Chapter 2, Transportation Finances Act, for the
507
use of class B and C road funds except as provided in Subsection (5)(h).
508
(h) (i) If H.B. 53, "Transportation Corridor Preservation," passes in the 1996 General
509
Session, $500,000 each year shall be transferred to the Transportation Corridor Preservation
510
Revolving Loan Fund, and if H.B. 121, "State Park Access Roads," passes in the 1996 General
511
Session, from July 1, 1997, through June 30, 2006, $500,000 shall be transferred to the Department
512
of Transportation for the State Park Access Highways Improvement Program. The remaining
513
amount generated by 50% of the 1/8% tax rate shall be transferred to the class B and class C roads
514
account.
515
(ii) At least 50% of the money transferred to the Transportation Corridor Preservation
516
Revolving Loan Fund under Subsection (5)(h)(i) shall be used to fund loan applications made by
517
the Department of Transportation at the request of local governments.
518
(6) (a) Beginning on January 1, 2000, the Division of Finance shall deposit into the
519
Centennial Highway Fund created in Section
72-2-118
a portion of the state sales and use tax
520
under Subsections (2) and (3) equal to the revenues generated by a 1/64% tax rate on the taxable
521
[items and services] transactions under Subsection (1).
522
(b) Except for sales and use taxes deposited under Subsection (7), beginning on July 1,
523
1999, the revenues generated by the 1/64% tax rate:
524
(i) retained under Subsection
59-12-204
(7)(a) shall be retained by the counties, cities, or
525
towns as provided in Section
59-12-204
; and
526
(ii) retained under Subsection
59-12-205
(4)(a) shall be distributed to each county, city, and
527
town as provided in Section
59-12-205
.
528
(7) Beginning on July 1, 1999, the commission shall deposit into the Airport to University
529
of Utah Light Rail Restricted Account created in Section
17A-2-1064
the portion of the sales and
530
use tax under Sections
59-12-204
and
59-12-205
that is:
531
(a) generated by a city or town that will have constructed within its boundaries the Airport
532
to University of Utah Light Rail described in the Transportation Equity Act for the 21st Century,
533
Pub. L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
534
(b) equal to the revenues generated by a 1/64% tax rate on the taxable items and services
535
under Subsection (1).
536
Section 3.
Section
59-12-104
is amended to read:
537
59-12-104. Exemptions.
538
The following sales and uses are exempt from the taxes imposed by this chapter:
539
(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
540
under Title 59, Chapter 13, Motor and Special Fuel Tax Act;
541
(2) sales to the state, its institutions, and its political subdivisions; however, this exemption
542
does not apply to sales of construction materials except:
543
(a) construction materials purchased by or on behalf of institutions of the public education
544
system as defined in Utah Constitution Article X, Section 2, provided the construction materials
545
are clearly identified and segregated and installed or converted to real property which is owned by
546
institutions of the public education system; and
547
(b) construction materials purchased by the state, its institutions, or its political
548
subdivisions which are installed or converted to real property by employees of the state, its
549
institutions, or its political subdivisions;
550
(3) beginning on January 1, 2001, sales of food[, beverage, and dairy products from
551
vending machines in which the proceeds of each sale do not exceed $1 if the vendor or operator
552
of the vending machine reports an amount equal to 150% of the cost of items as goods consumed];
553
(4) sales of food, beverage, dairy products, similar confections, and related services to
554
commercial airline carriers for in-flight consumption;
555
(5) sales of parts and equipment installed in aircraft operated by common carriers in
556
interstate or foreign commerce;
557
(6) sales of commercials, motion picture films, prerecorded audio program tapes or
558
records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
559
exhibitor, distributor, or commercial television or radio broadcaster;
560
(7) sales of cleaning or washing of tangible personal property by a coin-operated laundry
561
or dry cleaning machine;
562
(8) (a) except as provided in Subsection (8)(b), sales made to or by religious or charitable
563
institutions in the conduct of their regular religious or charitable functions and activities, if the
564
requirements of Section
59-12-104.1
are fulfilled;
565
(b) the exemption provided for in Subsection (8)(a) does not apply to the following sales,
566
uses, leases, or rentals relating to the Olympic Winter Games of 2002 made to or by an
567
organization exempt from federal income taxation under Section 501(c)(3), Internal Revenue
568
Code:
569
(i) retail sales of Olympic merchandise;
570
(ii) admissions or user fees described in Subsection
59-12-103
(1)(f);
571
(iii) sales of accommodations and services as provided in Subsection
59-12-103
(1)(i),
572
except for accommodations and services:
573
(A) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
574
of 2002;
575
(B) exclusively used by:
576
(I) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
577
Olympic Winter Games of 2002; or
578
(II) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
579
Games of 2002; and
580
(C) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
581
does not receive reimbursement; or
582
(iv) a lease or rental of a vehicle as defined in Section
41-1a-102
, except for a lease or
583
rental of a vehicle:
584
(A) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
585
of 2002;
586
(B) exclusively used by:
587
(I) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
588
Olympic Winter Games of 2002; or
589
(II) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
590
Games of 2002; and
591
(C) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
592
does not receive reimbursement;
593
(9) sales of vehicles of a type required to be registered under the motor vehicle laws of
594
this state which are made to bona fide nonresidents of this state and are not afterwards registered
595
or used in this state except as necessary to transport them to the borders of this state;
596
(10) sales of medicine;
597
(11) sales or use of property, materials, or services used in the construction of or
598
incorporated in pollution control facilities allowed by Sections
19-2-123
through
19-2-127
;
599
(12) sales of meals served by:
600
(a) churches, charitable institutions, and institutions of higher education, if the meals are
601
not available to the general public; and
602
(b) inpatient meals provided at medical or nursing facilities;
603
(13) isolated or occasional sales by persons not regularly engaged in business, except the
604
sale of vehicles or vessels required to be titled or registered under the laws of this state in which
605
case the tax is based upon:
606
(a) the bill of sale or other written evidence of value of the vehicle or vessel being sold;
607
or
608
(b) in the absence of a bill of sale or other written evidence of value, the then existing fair
609
market value of the vehicle or vessel being sold as determined by the commission;
610
(14) (a) the following purchases or leases by a manufacturer on or after July 1, 1995:
611
(i) machinery and equipment:
612
(A) used in the manufacturing process;
613
(B) having an economic life of three or more years; and
614
(C) used:
615
(I) to manufacture an item sold as tangible personal property; and
616
(II) in new or expanding operations in a manufacturing facility in the state; and
617
(ii) subject to the provisions of Subsection (14)(b), normal operating replacements that:
618
(A) have an economic life of three or more years;
619
(B) are used in the manufacturing process in a manufacturing facility in the state;
620
(C) are used to replace or adapt an existing machine to extend the normal estimated useful
621
life of the machine; and
622
(D) do not include repairs and maintenance;
623
(b) the rates for the exemption under Subsection (14)(a)(ii) are as follows:
624
(i) beginning July 1, 1996, through June 30, 1997, 30% of the sale or lease described in
625
Subsection (14)(a)(ii) is exempt;
626
(ii) beginning July 1, 1997, through June 30, 1998, 60% of the sale or lease described in
627
Subsection (14)(a)(ii) is exempt; and
628
(iii) beginning July 1, 1998, 100% of the sale or lease described in Subsection (14)(a)(ii)
629
is exempt;
630
(c) for purposes of this Subsection (14), the commission shall by rule define the terms
631
"new or expanding operations" and "establishment"; and
632
(d) on or before October 1, 1991, and every five years after October 1, 1991, the
633
commission shall:
634
(i) review the exemptions described in Subsection (14)(a) and make recommendations to
635
the Revenue and Taxation Interim Committee concerning whether the exemptions should be
636
continued, modified, or repealed; and
637
(ii) include in its report:
638
(A) the cost of the exemptions;
639
(B) the purpose and effectiveness of the exemptions; and
640
(C) the benefits of the exemptions to the state;
641
(15) sales of tooling, special tooling, support equipment, and special test equipment used
642
or consumed exclusively in the performance of any aerospace or electronics industry contract with
643
the United States government or any subcontract under that contract, but only if, under the terms
644
of that contract or subcontract, title to the tooling and equipment is vested in the United States
645
government as evidenced by a government identification tag placed on the tooling and equipment
646
or by listing on a government-approved property record if a tag is impractical;
647
(16) intrastate movements of:
648
(a) freight by common carriers; and
649
(b) passengers:
650
(i) by taxicabs as described in SIC Code 4121 of the 1987 Standard Industrial
651
Classification Manual of the federal Executive Office of the President, Office of Management and
652
Budget; or
653
(ii) transported by an establishment described in SIC Code 4111 of the 1987 Standard
654
Industrial Classification Manual of the federal Executive Office of the President, Office of
655
Management and Budget, if the transportation originates and terminates within a county of the
656
first, second, or third class;
657
(17) sales of newspapers or newspaper subscriptions;
658
(18) tangible personal property, other than money, traded in as full or part payment of the
659
purchase price, except that for purposes of calculating sales or use tax upon vehicles not sold by
660
a vehicle dealer, trade-ins are limited to other vehicles only, and the tax is based upon:
661
(a) the bill of sale or other written evidence of value of the vehicle being sold and the
662
vehicle being traded in; or
663
(b) in the absence of a bill of sale or other written evidence of value, the then existing fair
664
market value of the vehicle being sold and the vehicle being traded in, as determined by the
665
commission;
666
(19) sprays and insecticides used to control insects, diseases, and weeds for commercial
667
production of fruits, vegetables, feeds, seeds, and animal products, but not those sprays and
668
insecticides used in the processing of the products;
669
(20) (a) sales of tangible personal property used or consumed primarily and directly in
670
farming operations, including sales of irrigation equipment and supplies used for agricultural
671
production purposes, whether or not they become part of real estate and whether or not installed
672
by farmer, contractor, or subcontractor, but not sales of:
673
(i) machinery, equipment, materials, and supplies used in a manner that is incidental to
674
farming, such as hand tools with a unit purchase price not in excess of $250, and maintenance and
675
janitorial equipment and supplies;
676
(ii) tangible personal property used in any activities other than farming, such as office
677
equipment and supplies, equipment and supplies used in sales or distribution of farm products, in
678
research, or in transportation; or
679
(iii) any vehicle required to be registered by the laws of this state, without regard to the use
680
to which the vehicle is put;
681
(b) sales of hay;
682
(21) exclusive sale of locally grown seasonal crops, seedling plants, or garden, farm, or
683
other agricultural produce if sold by a producer during the harvest season;
684
(22) purchases of food as defined in 7 U.S.C. Sec. 2012(g) under the Food Stamp
685
Program, 7 U.S.C. Sec. 2011 et seq.;
686
(23) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
687
nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor, wholesaler,
688
or retailer for use in packaging tangible personal property to be sold by that manufacturer,
689
processor, wholesaler, or retailer;
690
(24) property stored in the state for resale;
691
(25) property brought into the state by a nonresident for his or her own personal use or
692
enjoyment while within the state, except property purchased for use in Utah by a nonresident living
693
and working in Utah at the time of purchase;
694
(26) property purchased for resale in this state, in the regular course of business, either
695
in its original form or as an ingredient or component part of a manufactured or compounded
696
product;
697
(27) property upon which a sales or use tax was paid to some other state, or one of its
698
subdivisions, except that the state shall be paid any difference between the tax paid and the tax
699
imposed by this part and Part 2, and no adjustment is allowed if the tax paid was greater than the
700
tax imposed by this part and Part 2;
701
(28) any sale of a service described in Subsections
59-12-103
(1)(b), (c), and (d) to a
702
person for use in compounding a service taxable under the subsections;
703
(29) purchases of supplemental foods as defined in 42 U.S.C. Sec. 1786(b)(14) under the
704
special supplemental nutrition program for women, infants, and children established in 42 U.S.C.
705
Sec. 1786;
706
(30) beginning on July 1, 1999, through June 30, 2004, sales or leases of rolls, rollers,
707
refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
708
of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification Manual
709
of the federal Executive Office of the President, Office of Management and Budget;
710
(31) sales of boats of a type required to be registered under Title 73, Chapter 18, State
711
Boating Act, boat trailers, and outboard motors which are made to bona fide nonresidents of this
712
state and are not thereafter registered or used in this state except as necessary to transport them to
713
the borders of this state;
714
(32) sales of tangible personal property to persons within this state that is subsequently
715
shipped outside the state and incorporated pursuant to contract into and becomes a part of real
716
property located outside of this state, except to the extent that the other state or political entity
717
imposes a sales, use, gross receipts, or other similar transaction excise tax on it against which the
718
other state or political entity allows a credit for taxes imposed by this chapter;
719
(33) sales of aircraft manufactured in Utah if sold for delivery and use outside Utah where
720
a sales or use tax is not imposed, even if the title is passed in Utah;
721
(34) amounts paid for the purchase of telephone service for purposes of providing
722
telephone service;
723
(35) fares charged to persons transported directly by a public transit district created under
724
the authority of Title 17A, Chapter 2, Part 10, Utah Public Transit District Act;
725
(36) sales or leases of vehicles to, or use of vehicles by an authorized carrier;
726
(37) (a) 45% of the sales price of any new manufactured home; and
727
(b) 100% of the sales price of any used manufactured home;
728
(38) sales relating to schools and fundraising sales;
729
(39) sales or rentals of home medical equipment and supplies;
730
(40) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
731
Section
72-11-102
; and
732
(b) the commission shall by rule determine the method for calculating sales exempt under
733
Subsection (40)(a) that are not separately metered and accounted for in utility billings;
734
(41) sales to a ski resort of:
735
(a) snowmaking equipment;
736
(b) ski slope grooming equipment; and
737
(c) passenger ropeways as defined in Section
72-11-102
;
738
(42) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
739
(43) sales or rentals of the right to use or operate for amusement, entertainment, or
740
recreation a coin-operated amusement device as defined in Section
59-12-102
;
741
(44) sales of cleaning or washing of tangible personal property by a coin-operated car
742
wash machine;
743
(45) sales by the state or a political subdivision of the state, except state institutions of
744
higher education as defined in Section
53B-3-102
, of:
745
(a) photocopies; or
746
(b) other copies of records held or maintained by the state or a political subdivision of the
747
state; and
748
(46) (a) amounts paid:
749
(i) to a person providing intrastate transportation to an employer's employee to or from the
750
employee's primary place of employment;
751
(ii) by an:
752
(A) employee; or
753
(B) employer; and
754
(iii) pursuant to a written contract between:
755
(A) the employer; and
756
(B) (I) the employee; or
757
(II) a person providing transportation to the employer's employee; and
758
(b) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
759
commission may for purposes of Subsection (46)(a) make rules defining what constitutes an
760
employee's primary place of employment;
761
(47) amounts paid for admission to an athletic event at an institution of higher education
762
that is subject to the provisions of Title IX of the Education Amendments of 1972, 20 U.S.C. Sec.
763
1681 et seq.;
764
(48) sales of telephone service charged to a prepaid telephone calling card;
765
(49) (a) sales of hearing aids; and
766
(b) sales of hearing aid accessories; and
767
(50) (a) sales made to or by:
768
(i) an area agency on aging; or
769
(ii) a senior citizen center owned by a county, city, or town; or
770
(b) sales made by a senior citizen center that contracts with an area agency on aging.
771
Section 4.
Section
59-12-204
is amended to read:
772
59-12-204. Sales and use tax ordinance provisions -- Tax rate -- Distribution of tax
773
revenues.
774
(1) The tax ordinance adopted pursuant to this part shall impose a tax upon [those items
775
listed] the transactions in Section
59-12-103
, subject to the exemptions provided for in Section
776
59-12-104
.
777
(2) Except as provided in Subsection
59-12-205
(2), [such] the tax ordinance shall include
778
a provision imposing [a] the tax [upon every retail sale of items listed in Section
59-12-103
]
779
described in Subsection (1) on transactions made within a county, including areas contained within
780
the cities and towns [thereof at the rate of 3/4% or any fractional part of such 3/4% of the purchase
781
price paid or charged.] located within the county, at the following rates:
782
(a) through December 31, 2000, at a rate that is less than or equal to .75%; and
783
(b) beginning on January 1, 2001, at a rate that is less than or equal to .84%.
784
(3) Such tax ordinance shall include provisions substantially the same as those contained
785
in Part 1, Tax Collection, insofar as they relate to sales or use tax, except that the name of the
786
county as the taxing agency shall be substituted for that of the state where necessary for the
787
purpose of this part and that an additional license is not required if one has been or is issued under
788
Section
59-12-106
.
789
(4) Such tax ordinance shall include a provision that the county shall contract, prior to the
790
effective date of the ordinance, with the commission to perform all functions incident to the
791
administration or operation of the ordinance.
792
(5) Such tax ordinance shall include a provision that the sale, storage, use, or other
793
consumption of tangible personal property, the purchase price or the cost of which has been subject
794
to sales or use tax under a sales and use tax ordinance enacted in accordance with this part by any
795
county, city, or town in any other county in this state, shall be exempt from the tax due under this
796
ordinance.
797
(6) Such tax ordinance shall include a provision that any person subject to the provisions
798
of a city or town sales and use tax shall be exempt from the county sales and use tax if the city or
799
town sales and use tax is levied under an ordinance including provisions in substance as follows:
800
(a) a provision imposing a tax upon every retail sale of items listed in Section
59-12-103
801
made within the city or town at the rate imposed by the county in which it is situated pursuant to
802
Subsection (2);
803
(b) provisions substantially the same as those contained in Part 1, Tax Collection, insofar
804
as they relate to sales and use taxes, except that the name of the city or town as the taxing agency
805
shall be substituted for that of the state where necessary for the purposes of this part;
806
(c) a provision that the city or town shall contract prior to the effective date of the city or
807
town sales and use tax ordinance with the commission to perform all functions incident to the
808
administration or operation of the sales and use tax ordinance of the city or town;
809
(d) a provision that the sale, storage, use, or other consumption of tangible personal
810
property, the gross receipts from the sale of or the cost of which has been subject to sales or use
811
tax under a sales and use tax ordinance enacted in accordance with this part by any county other
812
than the county in which the city or town is located, or city or town in this state, shall be exempt
813
from the tax; and
814
(e) a provision that the amount of any tax paid under Part 1, Tax Collection, shall not be
815
included as a part of the purchase price paid or charged for a taxable item.
816
(7) (a) Notwithstanding any other provision of this section, from January 1, 1990, through
817
June 30, 1999, the commission shall determine and retain the amount of revenue generated by a
818
1/64% tax rate and deposit it in the Olympics Special Revenue Fund or funds provided for in
819
Subsection
59-12-103
(4) for the purposes of the Utah Sports Authority described in Title 63A,
820
Chapter 7, Utah Sports Authority Act.
821
(b) Except for sales and use taxes deposited under Subsection (7)(c), beginning on July 1,
822
1999, the amount of revenue generated by the 1/64% tax rate under Subsection (7)(a) shall be
823
retained by the county, city, or town levying a tax under this section.
824
(c) Notwithstanding any other provision of this section, beginning on July 1, 1999, the
825
commission shall:
826
(i) determine and retain the portion of the sales and use tax imposed under this section:
827
(A) by a city or town that will have constructed within its boundaries the Airport to
828
University of Utah Light Rail described in the Transportation Equity Act for the 21st Century, Pub.
829
L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
830
(B) that is equal to the revenues generated by a 1/64% tax rate; and
831
(ii) deposit the revenues described in Subsection (7)(c)(i) in the Airport to University of
832
Utah Light Rail Restricted Account created in Section
17A-2-1064
for the purposes described in
833
Section
17A-2-1064
.
834
Section 5.
Section
59-12-205
is amended to read:
835
59-12-205. Ordinances to conform with statutory amendments -- Distribution of tax
836
revenues.
837
(1) Each county, city, and town, in order to maintain in effect sales and use tax ordinances
838
pursuant to this part, shall, within 30 days of any amendment of any applicable provisions of Part
839
1, Tax Collection, adopt amendments of their respective sales and use tax ordinances to conform
840
with the amendments to Part 1, Tax Collection, insofar as they relate to sales and use taxes.
841
(2) [Any] (a) A county, city, or town may distribute its sales or use tax revenues by means
842
other than point of sale or use by [notifying] sending notification of the decision in writing to the
843
commission [in writing of such decision], no later than 30 days before commencement of the next
844
tax accrual period.
845
(b) After [such] notice is given under Subsection (2)(a), a legislative body of a county, city,
846
or town may:
847
(i) beginning on January 1, 1990, through December 31, 2000, increase the tax rate
848
authorized by this part to a rate of 1%; and
849
(ii) beginning on January 1, 2001, increase the tax rate authorized by this part to a [total
850
of 1% from and after January 1, 1990, of the purchase price paid or charged, excluding a public
851
transit sales and use tax as provided in Section
59-12-501
and a resort communities sales tax as
852
provided in Section
59-12-401
. This tax shall be collected and distributed as follows:] rate that
853
is less than or equal to 1.1%.
854
[(a) from July 1, 1992, through June 30, 1993, 45% of each dollar collected from the sales
855
and use tax authorized by this part shall be paid to each county, city, and town providing notice
856
under this section, based upon the percentage that the population of the county, city, or town bears
857
to the total population of all such entities providing notice under this section, and 55% based upon
858
the point of sale or use of the transaction; and]
859
[(b)] (c) [from and after July 1, 1993,] Except as provided in Subsections (3) and (4):
860
(i) 50% of each dollar collected from the sales and use tax authorized by this part shall be
861
paid to each county, city, and town providing notice under this section, based upon the percentage
862
that the population of the county, city, or town bears to the total population of all such entities
863
providing notice under this section[,]; and
864
(ii) 50% of each dollar collected from the sales and use tax authorized by this part shall
865
be paid to each county, city, and town providing notice under this section, based upon the point
866
of sale or use of the transaction.
867
(3) (a) Notwithstanding [any provision of] Subsection (2), a legislative body of a county,
868
city, or town that has given notice under this section may not:
869
(i) if the legislative body of the county, city, or town imposes a tax rate of 1% under this
870
section, receive a tax revenue distribution of less than [3/4 of 1%] .75% of the taxable sales within
871
its boundaries[. The]; or
872
(ii) if the legislative body of the county, city, or town imposes a tax rate that is greater than
873
1% but is less than or equal to 1.1%, receive a tax revenue distribution of less than .84% of the
874
taxable sales within its boundaries.
875
(b) The commission shall proportionally reduce quarterly distributions to any county, city,
876
or town, which, but for the reduction, would receive a distribution:
877
(i) if the legislative body of the county, city, or town imposes a tax rate of 1% under this
878
section, in excess of 1% [beginning January 1, 1990,] of the sales and use tax revenue collected
879
within its boundaries[.]; or
880
(ii) if the legislative body of the county, city, or town imposes a tax rate that is greater than
881
1% but is less than or equal to 1.1%, in excess of 1.1% of the sales and use tax revenue collected
882
within its boundaries.
883
(4) (a) Notwithstanding any other provision of this section, from January 1, 1990, through
884
June 30, 1999, the commission shall determine and retain the amount of revenue generated by a
885
1/64% tax rate and deposit it in the Olympics Special Revenue Fund or funds provided for in
886
Subsection
59-12-103
(4) for the purposes of the Utah Sports Authority described in Title 63A,
887
Chapter 7, Utah Sports Authority Act.
888
(b) Except for sales and use taxes deposited under Subsection (4)(c), beginning on July 1,
889
1999, the amount of revenue generated by the 1/64% tax rate under Subsection (4)(a) shall be
890
distributed to each county, city, and town as provided in this section.
891
(c) Notwithstanding any other provision of this section, beginning on July 1, 1999, the
892
commission shall:
893
(i) determine and retain the portion of the sales and use tax imposed under this section:
894
(A) by a city or town that will have constructed within its boundaries the Airport to
895
University of Utah Light Rail described in the Transportation Equity Act for the 21st Century, Pub.
896
L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
897
(B) that is equal to the revenues generated by a 1/64% tax rate; and
898
(ii) deposit the revenues described in Subsection (4)(c)(i) in the Airport to University of
899
Utah Light Rail Restricted Account created in Section
17A-2-1064
for the purposes described in
900
Section
17A-2-1064
.
901
(5) (a) Population figures for purposes of this section shall be based on the most recent
902
official census or census estimate of the United States Bureau of the Census.
903
(b) If population estimates are not made for any county, city, or town by the United States
904
Bureau of Census, population figures shall be determined according to the biennial estimate from
905
the Utah Population Estimates Committee.
906
(6) The population of a county for purposes of this section shall be determined solely from
907
the unincorporated area of the county.
908
Section 6.
Section
59-12-401
is amended to read:
909
59-12-401. Resort communities tax -- Rate -- Collection fees.
910
(1) In addition to other sales taxes, a legislative body of a city or town in which the
911
transient room capacity is greater than or equal to 66% of the permanent census population may
912
impose a sales tax [of up to 1%]:
913
(a) on the sales and uses described in Subsection
59-12-103
(1), subject to the following
914
exemptions:
915
(i) the exemptions provided for in Section
59-12-104
[, and shall exempt from that
916
additional tax];
917
(ii) an exemption for wholesale sales; and
918
(iii) an exemption for sales of single items for which consideration paid is $2,500 or
919
more[.]; and
920
(b) (i) through December 31, 2000, at a rate that is less than or equal to 1%; and
921
(ii) beginning on January 1, 2001, at a rate that is less than or equal to 1.125%.
922
(2) (a) An amount equal to the total of any costs incurred by the state in connection with
923
the implementation of Subsection (1) which exceed, in any year, the revenues received by the state
924
from its collection fees received in connection with the implementation of Subsection (1) shall be
925
paid over to the state General Fund by the cities and towns which impose the tax provided for in
926
Subsection (1). [Payment costs]
927
(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those
928
cities and towns according to the amount of revenue the respective cities and towns generate in that
929
year through imposition of that tax.
930
Section 7.
Section
59-12-402
is amended to read:
931
59-12-402. Additional resort communities sales tax -- Rate -- Collection fees --
932
Resolution and voter approval requirements -- Election requirements -- Notice requirements
933
-- Ordinance requirements.
934
(1) (a) Subject to the limitations of Subsections (2) through (6), [the governing] a
935
legislative body of a municipality in which the transient room capacity is greater than or equal to
936
66% of the permanent census population may, in addition to the sales tax authorized under Section
937
59-12-401
, impose an additional resort communities sales tax [in an amount]:
938
(i) through December 31, 2000, at a rate that is less than or equal to [1/2%] .5%; and
939
(ii) beginning on January 1, 2001, at a rate that is equal to the sum of:
940
(A) a rate that is less than or equal to .5%; and
941
(B) a rate that is less than or equal to .05%.
942
(b) A legislative body of a municipality imposing a tax under Subsection (1)(a) shall:
943
(i) impose the tax on the sales and uses described in Subsection
59-12-103
(1), subject to
944
the following exemptions:
945
(A) the exemptions provided for in Section
59-12-104
[, and shall exempt from that
946
additional tax];
947
(B) an exemption for wholesale sales; and
948
(C) an exemption for sales of single items for which consideration paid is $2,500 or more.
949
(2) (a) An amount equal to the total of any costs incurred by the state in connection with
950
the implementation of Subsection (1) which exceed, in any year, the revenues received by the state
951
from its collection fees received in connection with the implementation of Subsection (1) shall be
952
paid over to the state General Fund by the cities and towns which impose the tax provided for in
953
Subsection (1).
954
(b) Payment costs shall be allocated proportionally among those cities and towns according
955
to the amount of revenue the respective cities and towns generate in that year through imposition
956
of that tax.
957
(3) To impose [an additional resort communities sales] or increase a tax under this section,
958
the [governing] legislative body of the municipality shall:
959
(a) [pass a resolution approving] by ordinance:
960
(i) impose the tax; [and] or
961
(ii) increase the tax; and
962
(b) except as provided in Subsection (6), obtain voter approval [for] to impose or increase
963
the tax as provided in Subsection (4).
964
(4) To obtain voter approval [for an additional resort communities sales tax] under
965
Subsection (3)(b), a legislative body of a municipality shall:
966
(a) hold the [additional resort communities sales tax] election during:
967
(i) a regular general election; or
968
(ii) a municipal general election; and
969
(b) publish notice of the election:
970
(i) 15 days or more before the day on which the election is held; and
971
(ii) in a newspaper of general circulation in the municipality.
972
(5) (a) An ordinance approving [an additional resort communities sales] the imposition of
973
a tax or a tax increase under this section shall provide an effective date for the tax or the tax
974
increase.
975
(b) A legislative body of a municipality imposing or increasing a tax under this section
976
shall:
977
(i) collect the tax on the first day of a calendar quarter; and
978
(ii) notify the commission at least 30 days before the day on which the commission is
979
required to collect the tax.
980
(6) (a) [Except as provided in Subsection (6)(b), a] A legislative body of a municipality
981
is not subject to the voter approval requirements of Subsection (3)(b) if[,]:
982
(i) except as provided in Subsection (6)(b), on or before January 1, 1996, the legislative
983
body of the municipality imposed a license fee or tax on businesses based on gross receipts
984
pursuant to Section
10-1-203
[.]; or
985
(ii) (A) on December 31, 2000, the legislative body of the municipality imposes and
986
collects a tax under Subsection (1)(a)(i); and
987
(B) on or after January 1, 2001, the legislative body of the municipality increases the tax
988
under this section by an amount that is less than or equal to the tax rate described in Subsection
989
(1)(a)(ii)(B).
990
(b) The exception from the voter approval requirements in Subsection (6)(a)(i) does not
991
apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one
992
class of businesses based on gross receipts pursuant to Section
10-1-203
.
993
Section 8.
Section
59-12-501
is amended to read:
994
59-12-501. Public transit tax -- Rate -- Voter approval.
995
(1) (a) In addition to other sales and use taxes, [any] legislative body of a county, city, or
996
town within a transit district organized under Title 17A, Chapter 2, Part 10, may impose a sales
997
and use tax [of 1/4 of 1%]:
998
(i) through December 31, 2000, at a rate of .25%; and
999
(ii) beginning on January 1, 2001, at a rate that is equal to the sum of:
1000
(A) .25%; and
1001
(B) a rate that is less than or equal to .025%.
1002
(b) A legislative body of a county, city, or town imposing a tax under Subsection (1)(a)
1003
shall impose the tax:
1004
(i) on the sales and uses described in Subsection
59-12-103
(1), subject to the exemptions
1005
provided for in Section
59-12-104
[,]; and
1006
(ii) to fund a public transportation system.
1007
[(b) A] (2) (a) Except as provided in Subsection (2)(b), a legislative body of a county, city,
1008
or town may impose or increase a tax under this section only if the [governing] legislative body
1009
of the county, city, or town, by resolution, submits the proposal to all the qualified voters within
1010
the county, city, or town as provided in Subsection (3) for approval at a general or special election
1011
conducted in the manner provided by statute.
1012
(b) Notwithstanding Subsection (2)(a), a legislative body of a county, city, or town is not
1013
required to meet the voter approval requirements of Subsection (2)(a) if:
1014
(i) on December 31, 2000, the legislative body of the county, city, or town imposes and
1015
collects a tax under Subsection (1)(a)(i); and
1016
(ii) on or after January 1, 2001, the legislative body of the county, city, or town increases
1017
the tax under this section by an amount that is less than or equal to the tax rate described in
1018
Subsection (1)(a)(ii)(B).
1019
[(2)] (3) (a) If only a portion of a county is included within a public transit district, the
1020
proposal may be submitted only to the qualified voters residing within the boundaries of the
1021
proposed or existing public transit district.
1022
(b) Notice of [any such] an election under this section shall be given by the legislative
1023
body of the county, city, or town [governing body] 15 days in advance in the manner prescribed
1024
by statute.
1025
(c) If a majority of the voters voting in [such] an election under this section approve the
1026
proposal[, it] to impose or increase a tax under Subsection (1)(a)(i), the imposition of the tax or
1027
tax increase shall become effective on the date provided by the legislative body of the county, city,
1028
or town [governing body].
1029
[(3)] (4) This section may not be construed to require an election in jurisdictions where
1030
voters have previously approved a public transit sales or use tax, unless a county, city, or town
1031
increases a tax imposed under this section.
1032
Section 9.
Section
59-12-801
is amended to read:
1033
59-12-801. Definitions.
1034
As used in this part:
1035
(1) "Nursing care facility" is as defined in Section
26-21-2
.
1036
(2) "Rural city hospital" means a hospital owned by a city that is located within a third,
1037
fourth, fifth, or sixth class county.
1038
[(2)] (3) "Rural county health care facility" means a rural county hospital or a rural county
1039
nursing care facility.
1040
[(3)] (4) "Rural county hospital" means a hospital owned by a third, fourth, fifth, or sixth
1041
class county, as defined in Section
17-16-13
, which is located outside of a standard metropolitan
1042
statistical area, as designated by the United States Bureau of the Census.
1043
[(4)] (5) "Rural county nursing care facility" means a nursing care facility owned by a
1044
third, fourth, fifth, or sixth class county, as defined in Section
17-16-13
, which is located outside
1045
of a standard metropolitan statistical area, as designated by the United States Bureau of the Census.
1046
Section 10.
Section
59-12-802
is amended to read:
1047
59-12-802. Imposition of rural county health care facilities tax -- Base -- Rates.
1048
(1) (a) [Any] A county legislative body may[, by a majority vote of all members, submit
1049
an opinion question to the residents of that county so that each resident has an opportunity to
1050
express the resident's opinion on the imposition of a local] impose a sales and use tax [of up to
1051
1%]:
1052
(i) through December 31, 2000, at a rate that is less than or equal to 1%; and
1053
(ii) beginning on January 1, 2001, at a rate that is equal to the sum of:
1054
(A) a rate that is less than or equal to 1%; and
1055
(B) a rate that is less than or equal to .1%.
1056
(b) A county legislative body imposing a tax under Subsection (1)(a) shall impose the tax:
1057
(i) on the sales and uses described in Subsection
59-12-103
(1), subject to the exemptions
1058
provided for in Section
59-12-104
[,]; and
1059
(ii) to fund rural county health care facilities in that county.
1060
(2) (a) Except as provided in Subsection (2)(c), before imposing or increasing a tax under
1061
Subsection (1)(a), a county legislative body shall obtain approval to impose or increase the tax
1062
from a majority of the:
1063
(i) members of the county's legislative body; and
1064
(ii) county's registered voters voting on the imposition of the tax.
1065
(b) The county legislative body shall conduct the election [shall follow] according to the
1066
procedures [outlined in] and requirements of Title 11, Chapter 14, Utah Municipal Bond Act.
1067
[(2) If the legislative governing body determines that a majority of the qualified electors
1068
voting on the opinion question has assented to the imposition of a local sales and use tax as
1069
prescribed in Subsection (1)(a), the county legislative body may, by majority vote of all members,
1070
impose such a tax.]
1071
(c) Notwithstanding Subsection (2)(a), a county legislative body is not required to meet
1072
the voter approval requirements of Subsection (2)(a)(ii) if:
1073
(i) on December 31, 2000, the county legislative body imposes and collects a tax under
1074
Subsection (1)(a)(i); and
1075
(ii) on or after January 1, 2001, the county legislative body increases the tax under this
1076
section by an amount that is less than or equal to the tax rate described in Subsection (1)(a)(ii)(B).
1077
(3) The monies generated [from] by a tax imposed under Subsection (1) may only be used
1078
for the financing of:
1079
(a) ongoing operating expenses of a rural county health care facility; [and]
1080
(b) the acquisition of land for[, and] a rural county health care facility; or
1081
(c) the design, construction, equipping, [and] or furnishing of a rural county health care
1082
facility.
1083
(4) Taxes imposed under this [part] section shall be:
1084
(a) levied at the same time and collected in the same manner as provided in [Title 59,
1085
Chapter 12,] Part 2, The Local Sales and Use Tax Act, except that the collection and distribution
1086
of the tax revenue is not subject to Subsection
59-12-205
(2); and
1087
(b) levied for a period of ten years and may be reauthorized at the end of the ten-year
1088
period by the county legislative body as provided in Section (1).
1089
(5) The [tax] commission may retain an amount not to exceed 1-1/2% of the [county
1090
option funding] tax collected under this [part] section for the cost of administering this tax.
1091
Section 11.
Section
59-12-803
is amended to read:
1092
59-12-803. Distribution of revenues generated by rural county health care facilities
1093
tax.
1094
[All] (1) Except as provided in Subsection
59-12-802
(5) and Subsection (2), all revenues
1095
collected by a county under [this part] Section
59-12-802
shall be distributed quarterly by the
1096
county legislative body to rural county health care facilities. [If]
1097
(2) Notwithstanding Subsection (1), if there is more than one rural county health care
1098
facility in a county, the revenues collected by a county under Section
59-12-802
shall be distributed
1099
as determined by the county legislative body.
1100
Section 12.
Section
59-12-804
is amended to read:
1101
59-12-804. Imposition of rural city hospital tax -- Base -- Rates.
1102
[(1) As used in this section, "rural city hospital" means any hospital owned by a city which
1103
is located within a third, fourth, fifth, or sixth class county.]
1104
[(2) Any] (1) (a) A city legislative body may[, by a majority vote of all members submit
1105
an opinion question to the residents of that city so that each resident has an opportunity to express
1106
his opinion on the imposition of a local] impose a sales and use tax [of up to 1%]:
1107
(i) through December 31, 2000, at a rate that is less than or equal to 1%; and
1108
(ii) beginning on January 1, 2001, at a rate that is equal to the sum of:
1109
(A) a rate that is less than or equal to 1%; and
1110
(B) a rate that is less than or equal to .1%.
1111
(b) A city legislative body imposing a tax under Subsection (1)(a) shall impose the tax:
1112
(i) on the sales and uses described in Subsection
59-12-103
(1), subject to the exemptions
1113
provided for in Section
59-12-104
; and
1114
(ii) to fund rural city hospitals in that city.
1115
[(3) The city legislative body and the tax commission shall follow the procedures and
1116
requirements established in Sections
59-12-802
and
59-12-803
for the tax imposed under this
1117
section.]
1118
(2) (a) Except as provided in Subsection (2)(c), before imposing or increasing a tax under
1119
Subsection (1)(a), a city legislative body shall obtain approval to impose the tax from a majority
1120
of the:
1121
(i) members of the city legislative body; and
1122
(ii) city's registered voters voting on the imposition of the tax.
1123
(b) The city legislative body shall conduct the election according to the procedures and
1124
requirements of Title 11, Chapter 14, Utah Municipal Bond Act.
1125
(c) Notwithstanding Subsection (2)(a), a city legislative body is not required to meet the
1126
voter approval requirements of Subsection (2)(a)(ii) if:
1127
(i) on December 31, 2000, the city legislative body imposes and collects a tax under
1128
Subsection (1)(a)(i); and
1129
(ii) on or after January 1, 2001, the city legislative body increases the tax under this section
1130
by an amount that is less than or equal to the tax rate described in Subsection (1)(a)(ii)(B).
1131
(3) The monies generated by a tax imposed under Subsection (1) may only be used for the
1132
financing of:
1133
(a) ongoing operating expenses of a rural city hospital;
1134
(b) the acquisition of land for a rural city hospital; or
1135
(c) the design, construction, equipping, or furnishing of a rural city hospital.
1136
(4) Taxes imposed under this section shall be:
1137
(a) levied at the same time and collected in the same manner as provided in Part 2, The
1138
Local Sales and Use Tax Act, except that the collection and distribution of the tax revenue is not
1139
subject to Section
59-12-205
;
1140
(b) levied for a period of ten years and may be reauthorized at the end of the ten-year
1141
period by the city legislative body as provided in Subsection (1).
1142
(5) The commission may retain an amount not to exceed 1-1/2% of the tax collected under
1143
this section for the cost of administering the tax.
1144
Section 13.
Section
59-12-805
is enacted to read:
1145
59-12-805. Distribution of revenues generated by rural city hospital tax.
1146
(1) Except as provided in Subsection
59-12-804
(5) and Subsection (2), all revenues
1147
collected by a city under Section
59-12-804
shall be distributed quarterly by the city legislative
1148
body to rural city hospitals.
1149
(2) Notwithstanding Subsection (1), if there is more than one rural city hospital in a city,
1150
the revenues collected by the city under Section
59-12-804
shall be distributed as determined by
1151
the city legislative body.
1152
Section 14.
Section
59-12-1001
is amended to read:
1153
59-12-1001. Authority to impose highways tax -- Resolution and voter approval
1154
requirements -- Election requirements -- Notice requirements -- Ordinance requirements.
1155
(1) (a) A legislative body of a municipality in which sales and uses described in Subsection
1156
59-12-103
(1) are not subject to a sales and use tax under Section
59-12-501
may as provided in
1157
this part impose a sales and use tax [of 1/4%]:
1158
(i) through December 31, 2000, at a rate of .25%; and
1159
(ii) beginning on January 1, 2001, at a rate that is equal to the sum of:
1160
(A) .25%; and
1161
(B) a rate that is less than or equal to .025%.
1162
(b) A legislative body of a municipality imposing a tax under Subsection (1)(a) shall
1163
impose the tax on the sales and uses described in Subsection
59-12-103
(1), subject to the
1164
exemptions provided for in Section
59-12-104
.
1165
(2) A tax imposed under this part by a legislative body of a municipality shall be used for
1166
the construction and maintenance of highways under the jurisdiction of the municipality imposing
1167
the tax.
1168
(3) To impose or increase a highways tax under this part, the [governing] legislative body
1169
of the municipality shall:
1170
(a) pass an ordinance approving the imposition of the tax or tax increase; and
1171
(b) except as provided in Subsection (7), obtain voter approval [for] to impose or increase
1172
the tax as provided in Subsection (4).
1173
(4) To obtain voter approval [for a highways tax] under Subsection (3)(b), a legislative
1174
body of a municipality shall:
1175
(a) hold the [highways tax] election during:
1176
(i) a regular general election; or
1177
(ii) a municipal general election; and
1178
(b) publish notice of the election:
1179
(i) 15 days or more before the day on which the election is held; and
1180
(ii) in a newspaper of general circulation in the municipality.
1181
(5) An ordinance approving [a highways] the imposition of a tax or a tax increase under
1182
this part shall provide an effective date for the tax.
1183
(6) A legislative body of a municipality imposing or increasing a tax under this part shall:
1184
(a) begin collecting the tax on the first day of a calendar quarter; and
1185
(b) notify the commission at least 30 days before the day on which the commission is
1186
required to collect the tax.
1187
(7) (a) [Except as provided in Subsection (7)(b), a] A legislative body of a municipality
1188
is not subject to the voter approval requirements of Subsection (3)(b) if[,]:
1189
(i) except as provided in Subsection(7)(b), on or before January 1, 1996, the legislative
1190
body of the municipality imposed a licensee fee or tax on businesses based on gross receipts
1191
pursuant to Section
10-1-203
[.]; or
1192
(ii) (A) on December 31, 2000, the legislative body of the municipality imposes and
1193
collects a tax under Subsection (1)(a)(i); and
1194
(B) on or after January 1, 2001, the legislative body of the municipality increases the tax
1195
under this section in an amount that is less than or equal to the tax rate described in Subsection
1196
(1)(a)(ii)(B).
1197
(b) The exception from the voter approval requirements in Subsection (7)(a)(i) does not
1198
apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one
1199
class of businesses based on gross receipts pursuant to Section
10-1-203
.
1200
Section 15.
Section
59-12-1102
is amended to read:
1201
59-12-1102. Base -- Rate -- Imposition of tax -- Distribution of revenue --
1202
Administration.
1203
(1) (a) Subject to the provisions of Subsections (2) through (4), and in addition to any other
1204
tax authorized by this chapter, a county legislative body may impose by ordinance a county option
1205
sales and use tax [of 1/4% upon]:
1206
(i) through December 31, 2000, at a rate of .25%; and
1207
(ii) beginning on January 1, 2001, at a rate that is less than or equal to the sum of:
1208
(A) .25%; and
1209
(B) a rate that is less than or equal to .025%.
1210
(b) A county legislative body imposing a tax under Subsection (1)(a) shall impose the tax:
1211
(i) on the sales and uses described in Subsection
59-12-103
(1), subject to the exemptions
1212
provided for in Section
59-12-104
[.];
1213
[(b) The county option sales and use tax under this section shall be imposed:]
1214
[(i) upon] (ii) on the sales and uses made in the county, including sales and uses made
1215
within municipalities in the county; and
1216
[(ii)] (iii) except as provided in Subsection (1)(c), beginning on the first day of January:
1217
(A) of the next calendar year after adoption of the ordinance imposing the tax if the
1218
ordinance is adopted on or before May 25; or
1219
(B) of the second calendar year after adoption of the ordinance imposing the tax if the
1220
ordinance is adopted after May 25.
1221
(c) Notwithstanding Subsection (1)(b)[(ii)] (iii), the county option sales and use tax under
1222
this section shall be imposed:
1223
(i) beginning January 1, 1998, if an ordinance adopting the tax imposed on or before
1224
September 4, 1997; or
1225
(ii) beginning January 1, 1999, if an ordinance adopting the tax is imposed during 1997
1226
but after September 4, 1997.
1227
(2) (a) Before imposing a county option sales and use tax under Subsection (1), a county
1228
legislative body shall:
1229
(i) hold two public hearings on separate days in geographically diverse locations in the
1230
county; and
1231
(ii) notify the commission at least 30 days prior to the adoption of the ordinance.
1232
(b) (i) At least one of the hearings required by Subsection (2)(a)(i) shall have a starting
1233
time of no earlier than 6:00 p.m.
1234
(ii) The earlier of the hearings required by Subsection (2)(a)(i) shall be no less than seven
1235
days after the day the first advertisement required by Subsection (2)(c) is published.
1236
(c) (i) Before holding the public hearings required by Subsection (2)(a)(i), the county
1237
legislative body shall advertise in a newspaper of general circulation in the county:
1238
(A) its intent to adopt a county option sales and use tax;
1239
(B) the date, time, and location of each public hearing; and
1240
(C) a statement that the purpose of each public hearing is to obtain public comments
1241
regarding the proposed tax.
1242
(ii) The advertisement shall be published once each week for the two weeks preceding the
1243
earlier of the two public hearings.
1244
(iii) The advertisement shall be no less than 1/8 page in size, and the type used shall be no
1245
smaller than 18 point and surrounded by a 1/4-inch border.
1246
(iv) The advertisement may not be placed in that portion of the newspaper where legal
1247
notices and classified advertisements appear.
1248
(v) Whenever possible:
1249
(A) the advertisement shall appear in a newspaper that is published at least five days a
1250
week, unless the only newspaper in the county is published less than five days a week; and
1251
(B) the newspaper selected shall be one of general interest and readership in the
1252
community, and not one of limited subject matter.
1253
(d) [The] Except as provided in Subsection (2)(e), the adoption of an ordinance imposing
1254
or increasing a county option sales and use tax is subject to a local referendum election as provided
1255
in Title 20A, Chapter 7, Part 6, Local Referenda - Procedures, except that:
1256
(i) notwithstanding Subsection
20A-7-609
(2)(a), the county clerk shall hold a referendum
1257
election that qualifies for the ballot on the earlier of the next regular general election date or the
1258
next municipal general election date more than 155 days after adoption of an ordinance under this
1259
section;
1260
(ii) for 1997 only, the 120-day period in Subsection
20A-7-606
(1) shall be 30 days; and
1261
(iii) the deadlines in Subsection
20A-7-606
(2) and (3) do not apply, and the clerk shall
1262
take the actions required by those subsections before the referendum election.
1263
(e) Notwithstanding Subsection (2)(d), a county legislative body is not required to meet
1264
the voter approval requirements of Subsection (2)(d) if:
1265
(i) on December 31, 2000, the county legislative body imposes and collects a tax under
1266
Subsection (1)(a)(i); and
1267
(ii) on or after January 1, 2001, the county legislative body increases the tax under this
1268
section in an amount that is less than or equal to the tax rate described in Subsection (1)(a)(ii)(B).
1269
(3) (a) If the aggregate population of the counties imposing a county option sales and use
1270
tax under Subsection (1) is less than 75% of the state population, the tax levied under Subsection
1271
(1) shall be distributed to the county in which the tax was collected.
1272
(b) If the aggregate population of the counties imposing a county option sales and use tax
1273
under Subsection (1) is greater than or equal to 75% of the state population:
1274
(i) 50% of the tax collected under Subsection (1) in each county shall be distributed to the
1275
county in which the tax was collected; and
1276
(ii) except as provided in Subsection (3)(c), 50% of the tax collected under Subsection (1)
1277
in each county shall be distributed proportionately among all counties imposing the tax, based on
1278
the total population of each county.
1279
(c) If the amount to be distributed annually to a county under Subsection (3)(b)(ii), when
1280
combined with the amount distributed to the county under Subsection (3)(b)(i), does not equal at
1281
least $75,000, then:
1282
(i) the amount to be distributed annually to that county under Subsection (3)(b)(ii) shall
1283
be increased so that, when combined with the amount distributed to the county under Subsection
1284
(3)(b)(i), the amount distributed annually to the county is $75,000; and
1285
(ii) the amount to be distributed annually to all other counties under Subsection (3)(b)(ii)
1286
shall be reduced proportionately to offset the additional amount distributed under Subsection
1287
(3)(c)(i).
1288
(d) The commission shall establish rules to implement the distribution of the tax under
1289
Subsections (3)(a), (b), and (c).
1290
(4) (a) Except as provided in Subsections (4)(b) and (c), a county option sales and use tax
1291
under Subsection (1) shall be imposed and administered in the same manner as a tax imposed
1292
under Title 59, Chapter 12, Part 2, The Local Sales and Use Tax Act.
1293
(b) A county option sales and use tax imposed under this part is not subject to:
1294
(i) the distribution provisions of Subsections
59-12-205
(2) and (3); and
1295
(ii) the earmarking provisions of Subsection
59-12-205
(4).
1296
(c) The fee charged by the commission under Section
59-12-206
shall be based on the
1297
distribution amounts resulting after all the applicable distribution calculations under Subsection
1298
(3) have been made.
1299
Section 16.
Section
59-12-1302
is amended to read:
1300
59-12-1302. Authority to impose -- Base -- Rate.
1301
(1) Beginning on or after January 1, 1998, the [governing] legislative body of a town may
1302
impose a tax as provided in this part [in an amount that does not exceed 1%.]:
1303
(a) through December 31, 2000, at a rate that is less than or equal to 1%; and
1304
(b) beginning on January 1, 2001, at a rate that is equal to the sum of:
1305
(i) a rate that is less than or equal to 1%; and
1306
(ii) a rate that is less than or equal to .1%.
1307
(2) A legislative body of a town may impose a tax as provided in this part if the legislative
1308
body of the town imposed a license fee or tax on businesses based on gross receipts under Section
1309
10-1-203
on or before January 1, 1996.
1310
(3) A legislative body of a town imposing a tax under this section shall:
1311
(a) adopt an ordinance:
1312
(i) imposing the tax on the sales and uses described in Section
59-12-103
;
1313
(ii) exempting from the tax the sales and uses described in Section
59-12-104
; and
1314
(iii) providing an effective date for the tax;
1315
(b) impose the tax on the first day of a calendar quarter; and
1316
(c) notify the commission at least 30 days before the day on which the commission is
1317
required to collect the tax.
1318
(4) The commission shall:
1319
(a) except as provided in Subsection (4)(c), distribute the revenues generated by the tax
1320
under this section to the town imposing the tax;
1321
(b) administer, collect, and enforce the tax authorized under this section pursuant to:
1322
(i) the same procedures used to administer, collect, and enforce the sales and use tax under
1323
Title 59, Chapter 12, Part 1, Tax Collection; and
1324
(ii) Title 59, Chapter 1, General Taxation Policies; and
1325
(c) deduct from the distribution under Subsection (4)(a) an administrative charge for
1326
collecting the tax as provided in Section
59-12-206
.
Legislative Review Note
as of 2-9-00 2:13 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.