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S.B. 172
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SALES AND USE TAX MODIFICATIONS
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Lyle W. Hillyard
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AN ACT RELATING TO THE SALES AND USE TAX ACT; CLARIFYING THE DUTY TO
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COLLECT SALES AND USE TAXES; AMENDING PROVISIONS RELATING TO THE
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SALES AND USE TAX BASE AND RATES; PROVIDING FOR THE DISTRIBUTION OF
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CERTAIN SALES AND USE TAX REVENUES TO COUNTIES, CITIES, OR TOWNS;
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CLARIFYING SALES AND USE TAX REVENUES TO BE DEPOSITED INTO THE
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GENERAL FUND; AMENDING DEFINITIONS; AUTHORIZING CERTAIN VENDORS TO
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COLLECT A SALES OR USE TAX; REQUIRING THE STATE TAX COMMISSION TO
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COLLECT A SALES OR USE TAX FROM CERTAIN VENDORS THAT ARE NOT
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CURRENTLY REQUIRED TO COLLECT SALES OR USE TAXES IF PERMITTED BY
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CONGRESS OR AUTHORIZED BY THE SUPREME COURT OF THE UNITED STATES;
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REQUIRING THE STATE TAX COMMISSION TO MAKE A REPORT TO THE TAX
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REVIEW COMMISSION UNDER CERTAIN CIRCUMSTANCES; REQUIRING THE TAX
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REVIEW COMMISSION TO CONDUCT A STUDY UNDER CERTAIN CIRCUMSTANCES;
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ADDRESSING THE AUTHORITY OF COUNTIES, CITIES, OR TOWNS TO COLLECT
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SALES OR USE TAXES; MAKING TECHNICAL CHANGES; DELETING OBSOLETE
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LANGUAGE; AND PROVIDING AN EFFECTIVE DATE.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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17A-2-1064, as enacted by Chapter 133, Laws of Utah 1999
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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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59-12-106, as last amended by Chapter 16, Laws of Utah 1995
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59-12-107, as last amended by Chapter 210, Laws of Utah 1999
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59-12-110, as last amended by Chapter 71, Laws of Utah 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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59-12-502, as last amended by Chapter 291, Laws of Utah 1998
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59-12-703, as last amended by Chapters 209 and 291, Laws of Utah 1998
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59-12-704, as last amended by Chapters 193 and 209, 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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59-12-902, as enacted by Chapter 264, Laws of Utah 1997
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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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59-12-103.1, Utah Code Annotated 1953
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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
17A-2-1064
is amended to read:
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17A-2-1064. Airport to University of Utah Light Rail Restricted Account -- Creation
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-- Use of revenues.
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(1) There is created within the General Fund a restricted account known as the "Airport
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to University of Utah Light Rail Restricted Account."
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(2) The account shall be funded from the portion of the sales and use tax under Sections
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59-12-204
and
59-12-205
that is:
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(a) generated by a city or town that will have constructed within its boundaries the Airport
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to University of Utah Light Rail described in the Transportation Equity Act for the 21st Century,
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Pub. L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
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(b) equal to the revenues generated by a 1/64% tax rate on the taxable [items and services]
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transactions under Subsection
59-12-103
(1).
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(3) The Utah State Tax Commission shall deposit the revenues described in Subsection
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(2) into the account.
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(4) The account shall earn interest which shall be deposited into the account.
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(5) (a) A district may use the revenues in the account for a purpose described in Subsection
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(5)(b) if:
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(i) more than 200,000 people reside within the district boundaries; and
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(ii) the district receives a grant or a loan under 49 U.S.C. Sec. 5309:
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(A) for the Airport to University of Utah Light Rail project described in the Transportation
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Equity Act for the 21st Century, Pub. L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
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(B) before the construction of the Airport to University of Utah Light Rail project
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described in Subsection (5)(a)(ii)(A) is completed.
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(b) Subsection (5)(a) applies to:
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(i) maintaining the Airport to University of Utah Light Rail described in Subsection
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(5)(a)(ii)(A); or
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(ii) operating the Airport to University of Utah Light Rail described in Subsection
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(5)(a)(ii)(A).
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Section 2.
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) or residential use under Subsection
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(21).
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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) "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)(a)(iii), "officially sanctioned school activity" means a
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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) (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)(a)(i)(B) or (10)(a)(ii), an instrument or device
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having an electronic component that is designed to be worn on the body;
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(ii) except as provided in Subsection (10)(a)(iii), an assistive listening device or system
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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
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(10)(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
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(10)(b)(iii)(A)(I) through (V).
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(11) (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)(b)(i); or
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(B) assistive listening device or system described in Subsection (10)(b)(ii) or (iii); or
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(ii) a hearing aid battery.
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(12) (a) "Home medical equipment and supplies" means equipment and supplies 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)(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)(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) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or other
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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) "Manufactured home" means any manufactured home or mobile home as defined in
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Title 58, Chapter 56, Utah Uniform Building Standards Act.
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(15) 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)(b)(i) would otherwise be made with
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nonrecycled materials.
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(16) (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) "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) (a) "Other fuels" means products that burn independently to produce heat or 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) "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) "Purchase price" means the amount paid or charged for tangible personal property or
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any other taxable [item or service] transaction under Subsection
59-12-103
(1), excluding only cash
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discounts taken or any excise tax imposed on the purchase price by the federal government.
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(21) "Residential use" means the use in or around a home, apartment building, sleeping
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quarters, and similar facilities or accommodations.
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(22) (a) "Retail sale" means any sale within the state of tangible personal property or any
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other taxable [item or service] transaction under Subsection
59-12-103
(1), other than resale of such
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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
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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) (a) "Retailer" means any person engaged in a regularly organized retail business in
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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)] (c) "Retailer" does not include farmers, gardeners, stockmen, poultrymen, or other
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growers or agricultural producers producing and doing business on their own premises, except
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those who are regularly engaged in the business of buying or selling for a profit.
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[(e)] (d) For purposes of this chapter the commission may regard as retailers the following
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if 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
312
house, sales house, warehouse, service enterprise, or other place of business, or to maintain a stock
313
of goods, within this state.
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(24) "Sale" means any transfer of title, exchange, or barter, conditional or otherwise, in any
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manner, of tangible personal property or any other taxable [item or service] transaction under
316
Subsection
59-12-103
(1), for [a] consideration. It includes:
317
(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;
320
(d) any transaction if the possession of property is transferred but the seller retains the title
321
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
324
be taxable if an outright sale were made.
325
(25) (a) "Sales relating to schools" means sales by a public school district or public or
326
private elementary or secondary school, grades kindergarten through 12, that are directly related
327
to the school's or school district's educational functions or activities and include:
328
(i) the sale of textbooks, textbook fees, laboratory fees, laboratory supplies, and safety
329
equipment;
330
(ii) the sale of clothing that:
331
(A) a student is specifically required to wear as a condition of participation in a
332
school-related event or activity; and
333
(B) is not readily adaptable to general or continued usage to the extent that it takes the
334
place of ordinary clothing;
335
(iii) sales of food if the net or gross revenues generated by the food sales are deposited into
336
a school district fund or school fund dedicated to school meals; and
337
(iv) transportation charges for official school activities.
338
(b) "Sales relating to schools" does not include:
339
(i) gate receipts;
340
(ii) special event admission fees;
341
(iii) bookstore sales of items that are not educational materials or supplies; and
342
(iv) except as provided in Subsection (25)(a)(ii), clothing.
343
(26) "Senior citizen center" means a facility having the primary purpose of providing
344
services to the aged as defined in Section
62A-3-101
.
345
(27) "State" means the state of Utah, its departments, and agencies.
346
(28) "Storage" means any keeping or retention of tangible personal property or any other
347
taxable [item or service] transaction under Subsection
59-12-103
(1), in this state for any purpose
348
except sale in the regular course of business.
349
(29) (a) "Tangible personal property" means:
350
(i) all goods, wares, merchandise, produce, and commodities;
351
(ii) all tangible or corporeal things and substances which are dealt in or capable of being
352
possessed or exchanged;
353
(iii) water in bottles, tanks, or other containers; and
354
(iv) all other physically existing articles or things, including property severed from real
355
estate.
356
(b) "Tangible personal property" does not include:
357
(i) real estate or any interest or improvements in real estate;
358
(ii) bank accounts, stocks, bonds, mortgages, notes, and other evidence of debt;
359
(iii) insurance certificates or policies;
360
(iv) personal or governmental licenses;
361
(v) water in pipes, conduits, ditches, or reservoirs;
362
(vi) currency and coinage constituting legal tender of the United States or of a foreign
363
nation; and
364
(vii) all gold, silver, or platinum ingots, bars, medallions, or decorative coins, not
365
constituting legal tender of any nation, with a gold, silver, or platinum content of not less than
366
80%.
367
(30) (a) "Use" means the exercise of any right or power over tangible personal property
368
under Subsection
59-12-103
(1), incident to the ownership or the leasing of that property, item, or
369
service.
370
(b) "Use" does not include the sale, display, demonstration, or trial of that property in the
371
regular course of business and held for resale.
372
(31) "Vehicle" means any aircraft, as defined in Section
72-10-102
; any vehicle, as defined
373
in Section
41-1a-102
; any off-highway vehicle, as defined in Section
41-22-2
; and any vessel, as
374
defined in Section
41-1a-102
; that is required to be titled, registered, or both. "Vehicle" for
375
purposes of Subsection
59-12-104
(36) only, also includes any locomotive, freight car, railroad
376
work equipment, or other railroad rolling stock.
377
(32) "Vehicle dealer" means a person engaged in the business of buying, selling, or
378
exchanging vehicles as defined in Subsection (31).
379
(33) (a) "Vendor" means[: (i)] any person receiving any payment or consideration upon
380
a sale of tangible personal property or any other taxable [item or service] transaction under
381
Subsection
59-12-103
(1), or to whom [such] the payment or consideration is payable[; and].
382
[(ii) any person who engages in regular or systematic solicitation of a consumer market
383
in this state by the distribution of catalogs, periodicals, advertising flyers, or other advertising, or
384
by means of print, radio or television media, by mail, telegraphy, telephone, computer data base,
385
cable, optic, microwave, or other communication system.]
386
(b) "Vendor" does not mean a printer's facility described in Subsection (23)(e).
387
Section 3.
Section
59-12-103
is amended to read:
388
59-12-103. Sales and use tax base -- Rate -- Use of sales and use tax revenues.
389
(1) [There is levied a] A tax is imposed on the purchaser as provided in this part for [the
390
amount] amounts paid or charged for the following transactions:
391
(a) retail sales of tangible personal property made within the state;
392
(b) [amount] amounts paid to common carriers or to telephone or telegraph corporations,
393
whether the corporations are municipally or privately owned, for:
394
(i) all transportation;
395
(ii) intrastate telephone service; or
396
(iii) telegraph service;
397
(c) sales of the following for commercial use:
398
(i) gas[,];
399
(ii) electricity[,];
400
(iii) heat[,];
401
(iv) coal[,];
402
(v) fuel oil[,]; or
403
(vi) other fuels [sold for commercial use];
404
(d) sales of the following for residential use:
405
(i) gas[,];
406
(ii) electricity[,];
407
(iii) heat[,];
408
(iv) coal[,];
409
(v) fuel oil[,]; or
410
(vi) other fuels [sold for residential use];
411
(e) sales of meals [sold];
412
(f) amounts paid or charged as admission or user fees for theaters, movies, operas,
413
museums, planetariums, shows of any type or nature, exhibitions, concerts, carnivals, amusement
414
parks, amusement rides, circuses, menageries, fairs, races, contests, sporting events, dances,
415
boxing [and] matches, wrestling matches, closed circuit television broadcasts, billiard [or] parlors,
416
pool parlors, bowling lanes, golf [and], miniature golf, golf driving ranges, batting cages, skating
417
rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides,
418
river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or any other
419
amusement, entertainment, recreation, exhibition, cultural, or athletic activity;
420
(g) amounts paid or charged for services:
421
(i) for repairs or renovations of tangible personal property; or [services]
422
(ii) to install tangible personal property in connection with other tangible personal
423
property;
424
(h) except as provided in Subsection
59-12-104
(7), amounts paid or charged for cleaning
425
or washing of tangible personal property;
426
(i) amounts paid or charged for tourist home, hotel, motel, or trailer court accommodations
427
and services for less than 30 consecutive days;
428
(j) amounts paid or charged for laundry [and] or dry cleaning services;
429
(k) amounts paid or charged for leases [and] or rentals of tangible personal property if:
430
(i) the [property] tangible personal property's situs is in this state[, if];
431
(ii) the lessee took possession of the tangible personal property in this state[,]; or [if the]
432
(iii) within this state the tangible personal property is:
433
(A) stored[,];
434
(B) used[,]; or
435
(C) otherwise consumed [in this state];
436
(l) amounts paid or charged for tangible personal property if within this state the tangible
437
personal property is:
438
(i) stored[,];
439
(ii) used[,]; or
440
(iii) consumed [in this state]; and
441
(m) amounts paid or charged for prepaid telephone calling cards.
442
(2) (a) Except [for Subsection (1)(d), the rates of the tax levied under] as provided in
443
Subsections (2)(b) and (c), beginning on July 1, 2001, a state tax and a local tax is imposed on a
444
transaction described in Subsection (1) [shall be:] equal to the sum of:
445
[(a) 5% through June 30, 1994;]
446
[(b) 4.875% beginning on July 1, 1994 through June 30, 1997; and]
447
[(c) 4.75% beginning on July 1, 1997.]
448
(i) a state tax imposed on the transaction at a rate of 4.75%; and
449
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
450
transaction under this chapter other than this part.
451
[(3)] (b) [The rates of the tax levied under] Notwithstanding Subsection (2)(a), beginning
452
on July 1, 2001, a state tax and a local tax is imposed on a transaction described in Subsection
453
(1)(d) [shall be 2% from and after January 1, 1990] equal to the sum of:
454
(i) a state tax imposed on the transaction at a rate of 2%; and
455
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
456
transaction under this chapter other than this part.
457
(c) Notwithstanding Subsections (2)(a) and (b), beginning on July 1, 2001, if a vendor
458
described in Subsection
59-12-107
(1)(b) collects a tax on a transaction described in Subsection
459
(1) pursuant to Subsection
59-12-107
(1)(b), a state tax and a local tax is imposed on the transaction
460
equal to the sum of:
461
(i) a state tax imposed on the transaction at a rate of:
462
(A) 4.75% for a transaction other than a transaction described in Subsection (1)(d); or
463
(B) 2% for a transaction described in Subsection (1)(d); and
464
(ii) except as provided in Subsection (2)(d), a local tax imposed on the transaction at a rate
465
equal to the sum of the following tax rates:
466
(A) the lowest tax rate imposed by a county, city, or town under Section
59-12-204
, but
467
only if all of the counties, cities, and towns in the state impose the tax under Section
59-12-204
;
468
(B) the lowest tax rate imposed by a county, city, or town under Section
59-12-205
, but
469
only if all of the counties, cities, and towns in the state impose the tax under Section
59-12-205
;
470
(C) the tax rate authorized by Section
59-12-501
, but only if all of the counties, cities, and
471
towns in the state impose the tax under Section
59-12-501
;
472
(D) the tax rate authorized by Section
59-12-502
, but only if all of the counties, cities, and
473
towns in the state impose the tax under Section
59-12-502
;
474
(E) the tax rate authorized by Section
59-12-703
, but only if all of the counties in the state
475
impose the tax under Section
59-12-703
;
476
(F) the tax rate authorized by Section
59-12-1001
, but only if all of the cities and towns
477
in the state impose the tax under Section
59-12-1001
; and
478
(G) the tax rate authorized by Section
59-12-1102
, but only if all of the counties in the
479
state impose the tax under Section
59-12-1102
.
480
(d) Taxes authorized under the following do not apply to Subsection (2)(c)(ii):
481
(i) Subsection (2)(a)(i);
482
(ii) Subsection (2)(b)(i);
483
(iii) Subsection (2)(c)(i);
484
(iv) Section
59-12-301
;
485
(v) Section
59-12-352
;
486
(vi) Section
59-12-353
;
487
(vii) Section
59-12-401
;
488
(viii) Section
59-12-402
;
489
(ix) Section
59-12-603
;
490
(x) Section
59-12-802
;
491
(xi) Section
59-12-804
;
492
(xii) Section
59-12-1201
; or
493
(xiii) Section
59-12-1302
.
494
(3) (a) Except as provided in Subsections (4) through (7), the state taxes described in
495
Subsections (2)(a)(i), (2)(b)(i), and (2)(c)(i) shall be deposited into the General Fund.
496
(b) The local taxes described in Subsections (2)(a)(ii) and (2)(b)(ii) shall be distributed to
497
a county, city, or town as provided in this chapter.
498
(c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the state
499
shall receive the county's, city's, or town's proportionate share of the revenues generated by the
500
local tax described in Subsection (2)(c)(ii) as provided in Subsection (3)(c)(ii).
501
(ii) The commission shall determine a county's, city's, or town's proportionate share of the
502
revenues under Subsection (3)(c)(i) by:
503
(A) dividing the population of the county, city, or town by the total population of the state;
504
and
505
(B) multiplying the percentage determined under Subsection (3)(c)(ii)(A) by the total
506
amount of revenues generated by the local tax under Subsection (2)(c)(ii) for all counties, cities,
507
and towns.
508
(iii) (A) Except as provided in Subsection (3)(c)(iii)(B), for purposes of this section, the
509
commission shall calculate the population of a county, city, or town on the basis of the most recent
510
official census or census estimate of the United States Census Bureau.
511
(B) Notwithstanding Subsection (3)(c)(iii)(A), if population estimates are not made for a
512
county, city, or town by the United States Bureau of the Census, the commission shall calculate
513
the population estimates according to the biennial estimate of the population of the county, city,
514
or town from the Utah Population Estimates Committee created by executive order of the
515
governor.
516
(C) For purposes of this section, the population of a county may only include the
517
population of the unincorporated areas of the county.
518
(4) (a) [There] Notwithstanding Subsection (3)(a), there shall be deposited in an Olympics
519
special revenue fund or funds as determined by the Division of Finance under Section
51-5-4
, for
520
the use of the Utah Sports Authority created under Title 63A, Chapter 7, Utah Sports Authority
521
Act:
522
(i) from January 1, 1990, through December 31, 1999, the amount of sales and use tax
523
generated by a 1/64% tax rate on the taxable [items and services] transactions under Subsection
524
(1);
525
(ii) from January 1, 1990, through June 30, 1999, the amount of revenue generated by a
526
1/64% tax rate under Section
59-12-204
or Section
59-12-205
on the taxable [items and services]
527
transactions under Subsection (1); and
528
(iii) interest earned on the amounts under Subsections (4)(a)(i) and (ii).
529
(b) These funds shall be used:
530
(i) by the Utah Sports Authority as follows:
531
(A) to the extent funds are available, to transfer directly to a debt service fund or to
532
otherwise reimburse to the state any amount expended on debt service or any other cost of any
533
bonds issued by the state to construct any public sports facility as defined in Section
63A-7-103
;
534
(B) to pay for the actual and necessary operating, administrative, legal, and other expenses
535
of the Utah Sports Authority, but not including protocol expenses for seeking and obtaining the
536
right to host the Winter Olympic Games; and
537
(C) unless the Legislature appropriates additional funds from the Olympics Special
538
Revenue Fund to the Utah Sports Authority, the Utah Sports Authority may not expend, loan, or
539
pledge in the aggregate more than:
540
(I) $59,000,000 of sales and use tax deposited into the Olympics special revenue fund
541
under Subsection (4)(a);
542
(II) the interest earned on the amount described in Subsection (4)(b)(i)(C)(I); and
543
(III) the revenues deposited into the Olympics Special Revenue Fund that are not sales and
544
use taxes deposited under Subsection (4)(a) or interest on the sales and use taxes;
545
(ii) to pay salary, benefits, or administrative costs associated with the State Olympic
546
Officer under Subsection
63A-10-103
(3), except that the salary, benefits, or administrative costs
547
may not be paid from the sales and tax revenues generated by municipalities or counties and
548
deposited under Subsection (4)(a)(ii).
549
(c) A payment of salary, benefits, or administrative costs under Subsection
63A-10-103
(3)
550
is not considered an expenditure of the Utah Sports Authority.
551
(d) If the Legislature appropriates additional funds under Subsection (4)(b)(i)(C), the
552
authority may not expend, loan, pledge, or enter into any agreement to expend, loan, or pledge the
553
appropriated funds unless the authority:
554
(i) contracts in writing for the full reimbursement of the monies to the Olympics special
555
revenue fund by a public sports entity or other person benefitting from the expenditure; and
556
(ii) obtains a security interest that secures payment or performance of the obligation to
557
reimburse.
558
(e) A contract or agreement entered into in violation of Subsection (4)(d) is void.
559
(5) (a) [From] Notwithstanding Subsection (3)(a), beginning on July 1, 1997, the annual
560
amount of sales and use tax generated by a 1/8% tax rate on the taxable items and services under
561
Subsection (1) shall be used as follows:
562
(i) 50% shall be used for water and wastewater projects as provided in Subsections (5)(b)
563
through (f); and
564
(ii) 50% shall be used for transportation projects as provided in Subsections (5)(g) through
565
(h).
566
(b) Five hundred thousand dollars each year shall be transferred to the Agriculture
567
Resource Development Fund created in Section
4-18-6
.
568
(c) Fifty percent of the remaining amount generated by 50% of the 1/8% tax rate shall be
569
transferred to the Water Resources Conservation and Development Fund created in Section
570
73-10-24
for use by the Division of Water Resources. In addition to the uses allowed of the fund
571
under Section
73-10-24
, the fund may also be used to:
572
(i) provide a portion of the local cost share, not to exceed in any fiscal year 50% of the
573
funds made available to the Division of Water Resources under this section, of potential project
574
features of the Central Utah Project;
575
(ii) conduct hydrologic and geotechnical investigations by the Department of Natural
576
Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
577
quantifying surface and ground water resources and describing the hydrologic systems of an area
578
in sufficient detail so as to enable local and state resource managers to plan for and accommodate
579
growth in water use without jeopardizing the resource;
580
(iii) fund state required dam safety improvements; and
581
(iv) protect the state's interest in interstate water compact allocations, including the hiring
582
of technical and legal staff.
583
(d) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
584
shall be transferred to the Utah Wastewater Loan Program subaccount created in Section
73-10c-5
585
for use by the Water Quality Board to fund wastewater projects as defined in Section
73-10b-2
.
586
(e) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
587
shall be transferred to the Drinking Water Loan Program subaccount created in Section
73-10c-5
588
for use by the Division of Drinking Water to:
589
(i) provide for the installation and repair of collection, treatment, storage, and distribution
590
facilities for any public water system, as defined in Section
19-4-102
;
591
(ii) develop underground sources of water, including springs and wells; and
592
(iii) develop surface water sources.
593
(f) Notwithstanding Subsections (5)(b), (c), (d), and (e), $100,000 of the remaining amount
594
generated by 50% of the 1/8% tax rate each year shall be transferred as dedicated credits to the
595
Division of Water Rights to cover the costs incurred in hiring legal and other technical staff for the
596
adjudication of water rights. Any remaining balance at the end of each fiscal year shall lapse back
597
to the contributing funds on a prorated basis.
598
(g) Fifty percent of the 1/8% tax rate shall be transferred to the class B and class C roads
599
account to be expended as provided in Title 72, Chapter 2, Transportation Finances Act, for the
600
use of class B and C road funds except as provided in Subsection (5)(h).
601
(h) (i) If H.B. 53, "Transportation Corridor Preservation," passes in the 1996 General
602
Session, $500,000 each year shall be transferred to the Transportation Corridor Preservation
603
Revolving Loan Fund, and if H.B. 121, "State Park Access Roads," passes in the 1996 General
604
Session, from July 1, 1997, through June 30, 2006, $500,000 shall be transferred to the Department
605
of Transportation for the State Park Access Highways Improvement Program. The remaining
606
amount generated by 50% of the 1/8% tax rate shall be transferred to the class B and class C roads
607
account.
608
(ii) At least 50% of the money transferred to the Transportation Corridor Preservation
609
Revolving Loan Fund under Subsection (5)(h)(i) shall be used to fund loan applications made by
610
the Department of Transportation at the request of local governments.
611
(6) (a) [Beginning] Notwithstanding Subsection (3)(a), beginning on January 1, 2000, the
612
Division of Finance shall deposit into the Centennial Highway Fund created in Section
72-2-118
613
a portion of the state sales and use tax under [Subsections] Subsection (2) [and (3)] equal to the
614
revenues generated by a 1/64% tax rate on the taxable [items and services] transactions under
615
Subsection (1).
616
(b) Except for sales and use taxes deposited under Subsection (7), beginning on July 1,
617
1999, the revenues generated by the 1/64% tax rate:
618
(i) retained under Subsection
59-12-204
(7)(a) shall be retained by the counties, cities, or
619
towns as provided in Section
59-12-204
; and
620
(ii) retained under Subsection
59-12-205
(4)(a) shall be distributed to each county, city, and
621
town as provided in Section
59-12-205
.
622
(7) [Beginning] Notwithstanding Subsection (3)(a), beginning on July 1, 1999, the
623
commission shall deposit into the Airport to University of Utah Light Rail Restricted Account
624
created in Section
17A-2-1064
the portion of the sales and use tax under Sections
59-12-204
and
625
59-12-205
that is:
626
(a) generated by a city or town that will have constructed within its boundaries the Airport
627
to University of Utah Light Rail described in the Transportation Equity Act for the 21st Century,
628
Pub. L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
629
(b) equal to the revenues generated by a 1/64% tax rate on the taxable items and services
630
under Subsection (1).
631
Section 4.
Section
59-12-103.1
is enacted to read:
632
59-12-103.1. Action by Supreme Court of the United States authorizing or action by
633
Congress permitting a state to require certain vendors to collect a sales or use tax --
634
Collection of tax by commission -- Tax Review Commission study.
635
(1) A vendor shall remit to the commission a tax as provided in Subsection
636
59-12-103
(2)(c) and Section
59-12-107
if:
637
(a) the Supreme Court of the United States issues a decision authorizing a state to require
638
a vendor described in Subsection
59-12-107
(1)(b) to collect a sales or use tax; or
639
(b) Congress permits the state to require a vendor described in Subsection
59-12-107
(1)(b)
640
to collect a sales or use tax.
641
(2) The commission shall:
642
(a) collect the tax described in Subsection (1) from the vendor:
643
(i) to the extent:
644
(A) authorized by the Supreme Court of the United States; or
645
(B) permitted by Congress;
646
(ii) beginning on the first day of a calendar quarter as prescribed by the Utah Tax Review
647
Commission; and
648
(b) make a report to the Utah Tax Review Commission:
649
(i) regarding the actions taken by:
650
(A) the Supreme Court of the United States; or
651
(B) Congress; and
652
(ii) at the Utah Tax Review Commission meeting immediately following the day on which
653
the Supreme Court of the United States' or Congress' actions become effective.
654
(3) The Utah Tax Review Commission shall after hearing the commission's report under
655
Subsection (2)(b):
656
(a) review the actions taken by:
657
(i) the Supreme Court of the United States; or
658
(ii) Congress;
659
(b) direct the commission regarding the day on which the commission is required to collect
660
the tax described in Subsection (1); and
661
(c) make recommendations to the Revenue and Taxation Interim Committee:
662
(i) regarding whether as a result of the Supreme Court of the United States' or Congress'
663
actions any provisions of this chapter should be amended or repealed; and
664
(ii) within a one-year period after the day on which the commission makes a report under
665
Subsection (2)(b).
666
Section 5.
Section
59-12-106
is amended to read:
667
59-12-106. Sales and use tax license -- No fee -- Exemption certificate license number
668
to accompany contract bids.
669
(1) It is unlawful for any person required by this chapter to collect sales or use tax, to
670
engage in business within the state without first having obtained a license to do so. This license
671
shall be granted and issued by the commission. The license is not assignable and is valid only for
672
the person in whose name it is issued until that person ceases to do business or changes his
673
business address, or until the license is revoked by the commission. Such license shall be granted
674
only upon application stating the name and address of the applicant and other information the
675
commission may require. At the time of application, the commission shall notify the applicant of
676
the responsibilities and liability of a business owner successor under Section
59-12-112
. If
677
business is transacted at two or more separate places by one person, a separate license for each
678
place of business shall be required. The commission shall, on a reasonable notice and after a
679
hearing, revoke the license of any person violating any provisions of this chapter and no license
680
may be issued to such person until the taxpayer has complied with the requirements of this chapter.
681
Any person required by this chapter to collect sales or use tax within this state without having
682
secured a license to do so, is guilty of a criminal violation as provided in Section
59-1-401
. No
683
license is required for any person engaged exclusively in the business of selling commodities
684
which are exempt from taxation under this chapter. A license shall be issued to the applicant by
685
the commission without a license fee.
686
(2) For the purpose of the proper administration of this chapter and to prevent evasion of
687
the tax and the duty to collect the tax, it shall be presumed that tangible personal property or any
688
other taxable [item or service] transaction under Subsection
59-12-103
(1), sold by any person for
689
delivery in this state is sold for storage, use, or other consumption in this state unless the person
690
selling such property, item, or service has taken from the purchaser an exemption certificate signed
691
by and bearing the name and address of the purchaser to the effect that the property, item, or
692
service was exempted under Section
59-12-104
. The exemption certificates shall contain
693
information as prescribed by the commission.
694
(3) All persons filing contract bids with the state or any of its political subdivisions for sale
695
of tangible personal property or any other taxable [item or service] transaction under Subsection
696
59-12-103
(1), shall include with the bid the sales tax license number issued to them under
697
Subsection (1).
698
Section 6.
Section
59-12-107
is amended to read:
699
59-12-107. Collection, remittance, and payment of tax by vendors or other persons
700
-- Returns -- Direct payment by purchaser of vehicle -- Other liability for collection -- Credits
701
-- Deposit and sale of security -- Penalties.
702
(1) (a) Each vendor shall pay or collect and remit the sales and use taxes imposed by this
703
chapter if within this state the vendor:
704
(i) has or utilizes:
705
(A) an office[,];
706
(B) a distribution house[,];
707
(C) a sales house[,];
708
(D) a warehouse[,];
709
(E) a service enterprise[,]; or [other]
710
(F) a place of business similar to Subsections (1)(a)(i)(A) through (E);
711
(ii) maintains a stock of goods;
712
[(iii) engages in regular or systematic solicitation of sale of tangible personal property,
713
whether or not accepted in this state, by the distribution of catalogs, periodicals, advertising flyers,
714
or other advertising by means of print, radio, or television, or by mail, telegraphy, telephone,
715
computer data base, optic, microwave, or other communication system for the purpose of selling,
716
at retail, tangible personal property;]
717
(iii) regularly solicits orders, regardless of whether or not the orders are accepted in the
718
state, unless the vendor's only activity in the state is:
719
(A) advertising; or
720
(B) solicitation by:
721
(I) direct mail;
722
(II) electronic mail;
723
(III) the Internet;
724
(IV) telephone; or
725
(V) a means similar to Subsections (1)(a)(iii)(A) or (B);
726
(iv) regularly engages in the delivery of property in [this] the state other than by:
727
(A) common carrier; or
728
(B) United States mail; or
729
(v) regularly engages in [any] an activity [in connection with] directly related to the leasing
730
or servicing of property located within [this] the state.
731
(b) If [none of the conditions listed under] a vendor does not meet one or more of the
732
criteria provided for in Subsection (1)(a) [exist], the vendor [is not responsible for the collection
733
of the use tax but each person storing, using, or consuming]:
734
(i) except as provided in Subsection (1)(b)(ii), may voluntarily:
735
(A) collect a tax as provided in Subsection
59-12-103
(2)(c) on a transaction described in
736
Subsection
59-12-103
(1); and
737
(B) remit the tax to the commission as provided in this part; or
738
(ii) notwithstanding Subsection (1)(b)(i), shall collect a tax as provided in Subsection
739
59-12-103
(2)(c) on a transaction described in Subsection
59-12-103
(1) if Section
59-12-103.1
740
requires the vendor to collect the tax.
741
(c) A person shall pay a use tax imposed by this chapter on a transaction if:
742
(i) the vendor did not collect a use tax imposed by this chapter on the transaction; and
743
(ii) the person:
744
(A) stores the tangible personal property in the state;
745
(B) uses the tangible personal property in the state; or
746
(C) consumes the tangible personal property [is responsible for remitting the use tax] in
747
the state.
748
[(c)] (d) Notwithstanding the provisions of Subsection (1)(a), the ownership of property
749
that is located at the premises of a printer's facility with which the retailer has contracted for
750
printing and that consists of the final printed product, property that becomes a part of the final
751
printed product, or copy from which the printed product is produced, shall not result in the retailer
752
being considered to have or maintain an office, distribution house, sales house, warehouse, service
753
enterprise, or other place of business, or to maintain a stock of goods, within this state.
754
(2) (a) Each vendor shall collect the sales or use tax from the purchaser.
755
(b) A vendor may not collect as tax an amount, without regard to fractional parts of one
756
cent, in excess of the tax computed at the rates prescribed by this chapter.
757
(c) (i) Each vendor shall:
758
(A) give the purchaser a receipt for the use tax collected; or
759
(B) bill the use tax as a separate item and declare the name of this state and the vendor's
760
use tax license number on the invoice for the sale.
761
(ii) The receipt or invoice is prima facie evidence that the vendor has collected the use tax
762
and relieves the purchaser of the liability for reporting the use tax to the commission as a
763
consumer.
764
(d) A vendor is not required to maintain a separate account for the tax collected, but is
765
considered to be a person charged with receipt, safekeeping, and transfer of public moneys.
766
(e) Taxes collected by a vendor pursuant to this chapter shall be held in trust for the benefit
767
of the state and for payment to the commission in the manner and at the time provided for in this
768
chapter.
769
(f) If any vendor, during any reporting period, collects as a tax an amount in excess of the
770
lawful state and local percentage of total taxable sales allowed under this part and Part 2, the
771
vendor shall remit to the commission the full amount of the tax imposed under this part and Part
772
2 plus any excess.
773
(g) If the accounting methods regularly employed by the vendor in the transaction of the
774
vendor's business are such that reports of sales made during a calendar month or quarterly period
775
will impose unnecessary hardships, the commission may accept reports at intervals that will, in its
776
opinion, better suit the convenience of the taxpayer or vendor and will not jeopardize collection
777
of the tax.
778
[(3) Each person storing, using, or consuming tangible personal property under Subsection
779
59-12-103
(1) is liable for the use tax imposed under this chapter.]
780
[(4)] (3) (a) Except as provided in Subsection [(5)] (4) and in Section
59-12-108
, the sales
781
or use tax imposed by this chapter is due and payable to the commission quarterly on or before the
782
last day of the month next succeeding each calendar quarterly period.
783
(b) (i) Each vendor shall, on or before the last day of the month next succeeding each
784
calendar quarterly period, file with the commission a return for the preceding quarterly period.
785
(ii) The vendor shall remit with the return under Subsection (3)(b)(i) the amount of the tax
786
required under this chapter to be collected or paid for the period covered by the return.
787
(c) Each return shall contain information and be in a form the commission prescribes by
788
rule.
789
(d) The sales tax as computed in the return shall be based upon the total nonexempt sales
790
made during the period, including both cash and charge sales.
791
(e) The use tax as computed in the return shall be based upon the total amount of sales or
792
purchases for storage, use, or other consumption in this state made during the period, including
793
both by cash and by charge.
794
(f) The commission may by rule extend the time for making returns and paying the taxes.
795
No extension may be for more than 90 days.
796
(g) The commission may require returns and payment of the tax to be made for other than
797
quarterly periods if it considers it necessary in order to ensure the payment of the tax imposed by
798
this chapter.
799
[(5)] (4) On each vehicle sale made by other than a regular licensed vehicle dealer, the
800
purchaser shall pay the sales or use tax directly to the commission if the vehicle is subject to titling
801
or registration under the laws of this state. The commission shall collect the tax when the vehicle
802
is titled or registered.
803
[(6)] (5) If any sale of tangible personal property or any other taxable [item or service]
804
transaction under Subsection
59-12-103
(1), is made by a wholesaler to a retailer, the wholesaler
805
is not responsible for the collection or payment of the tax imposed on the sale if the retailer
806
represents that the personal property is purchased by the retailer for resale and the personal
807
property thereafter is not resold. Instead, the retailer is solely liable for the tax.
808
[(7)] (6) If any sale of property or service subject to the tax is made to a person prepaying
809
sales or use tax in accordance with Title 63, Chapter 51, Resource Development, or to a contractor
810
or subcontractor of that person, the person to whom such payment or consideration is payable is
811
not responsible for the collection or payment of the sales or use tax if the person prepaying the
812
sales or use tax represents that the amount prepaid as sales or use tax has not been fully credited
813
against sales or use tax due and payable under the rules promulgated by the commission. Instead,
814
the person prepaying the sales or use tax is solely liable for the tax.
815
[(8)] (7) Credit is allowed for prepaid taxes and for taxes paid on that portion of an account
816
determined to be worthless and actually charged off for income tax purposes or on the portion of
817
the purchase price remaining unpaid at the time of a repossession made under the terms of a
818
conditional sales contract.
819
[(9)] (8) (a) The commission may require any person subject to the tax imposed under this
820
chapter to deposit with it security as the commission determines, if the commission considers it
821
necessary to ensure compliance with this chapter.
822
(b) The commission may sell the security at public sale if it becomes necessary to do so
823
in order to recover any tax, interest, or penalty due.
824
(c) (i) The commission shall serve notice of the sale upon the person who deposited the
825
securities either personally or by mail.
826
(ii) If the notice under Subsection (8)(c)(i) is by mail, notice sent to the last-known address
827
as it appears in the records of the commission is sufficient for the purposes of this requirement.
828
(d) The commission shall return to the person who deposited the security any amount of
829
the sale proceeds that exceed the amounts due under this chapter.
830
[(10)] (9) (a) A vendor may not, with intent to evade any tax, fail to timely remit the full
831
amount of tax required by this chapter.
832
(b) A violation of this section is punishable as provided in Section
59-1-401
.
833
[(b)] (c) Each person who fails to pay any tax to the state or any amount of tax required
834
to be paid to the state, except amounts determined to be due by the commission under Sections
835
59-12-110
and
59-12-111
, within the time required by this chapter, or who fails to file any return
836
as required by this chapter, shall pay, in addition to the tax, penalties and interest as provided in
837
Section
59-12-110
.
838
[(c)] (d) For purposes of prosecution under this section, each quarterly tax period in which
839
a vendor, with intent to evade any tax, collects a tax and fails to timely remit the full amount of
840
the tax required to be remitted, constitutes a separate offense.
841
Section 7.
Section
59-12-110
is amended to read:
842
59-12-110. Overpayments, deficiencies, and refunds procedures.
843
(1) (a) As soon as practicable after a return is filed, the commission shall examine the
844
return.
845
(b) If the commission determines that the correct amount of tax to be remitted is greater
846
or less than the amount shown to be due on the return, the commission shall recompute the tax.
847
(c) If the amount paid exceeds the amount due, the excess, plus interest as provided in
848
Section
59-1-402
, shall be credited or refunded to the taxpayer as provided in Subsection (2).
849
(d) The commission may not credit or refund to the taxpayer interest on an overpayment
850
under Subsection (1)(c) if the commission determines that the overpayment was made for the
851
purpose of investment.
852
(2) (a) If a taxpayer pays a tax, penalty, or interest more than once or the commission
853
erroneously receives, collects, or computes any tax, penalty, or interest, including an overpayment
854
described in Subsection (1)(c), the commission shall:
855
(i) credit the amount of tax, penalty, or interest paid by the taxpayer against any amounts
856
of tax, penalties, or interest the taxpayer owes; and
857
(ii) refund any balance to the taxpayer or the taxpayer's successors, administrators,
858
executors, or assigns.
859
(b) Except as provided in Subsection (2)(c) or Section
19-2-124
, a taxpayer shall file a
860
claim with the commission to obtain a refund or credit under this Subsection (2) within three years
861
from the day on which the taxpayer overpaid the tax, penalty, or interest.
862
(c) Notwithstanding Subsection (2)(b), beginning on July 1, 1998, the commission shall
863
extend the period for a taxpayer to file a claim under Subsection (2)(b) if:
864
(i) the three-year period under Subsection (2)(b) has not expired; and
865
(ii) the commission and the taxpayer sign a written agreement:
866
(A) authorizing the extension; and
867
(B) providing for the length of the extension.
868
(d) A taxpayer may file a claim to obtain a refund or credit under this Subsection (2)
869
regardless of whether the taxpayer received or objected to a notice of deficiency or a notice of
870
assessment as provided in Subsection
59-12-114
(1).
871
(e) A taxpayer may obtain a refund under this Subsection (2) of a tax paid under this
872
chapter on a [sale or use] transaction that is taxable under Section
59-12-103
if:
873
(i) the sale or use was exempt from sales and use taxes under Section
59-12-104
on the
874
date of purchase; and
875
(ii) except as provided in Subsection (2)(c), the taxpayer files a claim for a refund with the
876
commission as provided in Subsections (2)(b) through (d).
877
(f) If the commission denies a claim for a refund or credit under this Subsection (2), the
878
taxpayer may request a redetermination of the denial by filing a petition or request for agency
879
action with the commission as provided in Title 63, Chapter 46b, Administrative Procedures Act.
880
(3) If the commission erroneously determines an amount to be due from a taxpayer, the
881
commission shall authorize the amounts to be cancelled upon its records.
882
(4) (a) Subject to the provisions of Subsection (4)(b), the commission may impose on a
883
deficiency under this section:
884
(i) a penalty as provided in Section
59-1-401
; and
885
(ii) interest as provided in Section
59-1-402
.
886
(b) The commission may impose a penalty and interest on the entire deficiency if any part
887
of the deficiency is due to:
888
(i) negligence;
889
(ii) intentional disregard of law or rule; or
890
(iii) fraud with intent to evade the tax.
891
(5) (a) Except as provided in Subsection (5)(b), a taxpayer shall pay a tax deficiency,
892
including penalties or interest under this section, within ten days after the commission provides
893
the taxpayer notice and demand of the deficiency, penalty, or interest.
894
(b) Notwithstanding Subsection (5)(a), a taxpayer may pay a tax deficiency, penalty, or
895
interest within 30 days after the commission provides the taxpayer notice and demand of the
896
deficiency, penalty, or interest if the commission determines:
897
(i) that a greater amount was due than was shown on the return; and
898
(ii) the tax is not in jeopardy.
899
(6) (a) Except as provided in Subsections (6)(c) through (f), the commission shall assess
900
the amount of taxes imposed by this chapter, and any penalties and interest, within three years after
901
a taxpayer files a return.
902
(b) Except as provided in Subsections (6)(c) through (f), if the commission does not make
903
an assessment under Subsection (6)(a) within three years, the commission may not commence a
904
proceeding for the collection of the taxes after the expiration of the three-year period.
905
(c) Notwithstanding Subsections (6)(a) and (b), the commission may make an assessment
906
or commence a proceeding to collect a tax at any time if a deficiency is due to:
907
(i) fraud; or
908
(ii) failure to file a return.
909
(d) Notwithstanding Subsections (6)(a) and (b), beginning on July 1, 1998, the commission
910
may extend the period to make an assessment or to commence a proceeding to collect the tax under
911
this chapter if:
912
(i) the three-year period under this Subsection (6) has not expired; and
913
(ii) the commission and the taxpayer sign a written agreement:
914
(A) authorizing the extension; and
915
(B) providing for the length of the extension.
916
(e) If the commission delays an audit at the request of a taxpayer, the commission may
917
make an assessment as provided in Subsection (6)(f) if:
918
(i) the taxpayer subsequently refuses to agree to an extension request by the commission;
919
and
920
(ii) the three-year period under this Subsection (6) expires before the commission
921
completes the audit.
922
(f) An assessment under Subsection (6)(e) shall be:
923
(i) for the time period for which the commission could not make an assessment because
924
of the expiration of the three-year period; and
925
(ii) in an amount equal to the difference between:
926
(A) the commission's estimate of the amount of taxes the taxpayer would have been
927
assessed for the time period described in Subsection (6)(f)(i); and
928
(B) the amount of taxes the taxpayer actually paid for the time period described in
929
Subsection (6)(f)(i).
930
Section 8.
Section
59-12-204
is amended to read:
931
59-12-204. Sales and use tax ordinance provisions -- Tax rate -- Distribution of tax
932
revenues.
933
(1) The tax ordinance adopted pursuant to this part shall impose a tax upon those [items]
934
transactions listed in [Section] Subsection
59-12-103
(1).
935
(2) (a) Except as provided in [Subsection] Subsections (2)(b) and (c), (6)(b) and (c), and
936
59-12-205
(2), such tax ordinance shall include a provision imposing a tax upon every [retail sale
937
of items] transaction listed in [Section] Subsection
59-12-103
(1) made within a county, including
938
areas contained within the cities and towns thereof at the rate of 3/4% or any fractional part of such
939
3/4% of the purchase price paid or charged.
940
(b) (i) Notwithstanding Subsection (2)(a), a tax ordinance under this Subsection (2) shall
941
include a provision prohibiting a county, city, or town from imposing a tax under this section on:
942
(A) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
943
exempt from taxation under Section
59-12-104
; and
944
(B) subject to Subsection (2)(b)(ii), any amounts paid or charged by a vendor described
945
in Subsection
59-12-107
(1)(b) unless all of the counties, cities, and towns in the state impose the
946
tax under this section.
947
(ii) Notwithstanding Subsection (2)(a), if a county, city, or town imposes a tax under
948
Subsection (2)(b)(i)(B), the tax ordinance under this Subsection (2) shall include a provision that
949
the tax rate is equal to the lowest tax rate imposed by a county, city, or town under this section.
950
(c) (i) Notwithstanding Section
59-12-205
, a tax ordinance under this Subsection (2) shall
951
include a provision prohibiting a county, city, or town from imposing a tax under Section
952
59-12-205
on:
953
(A) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
954
exempt from taxation under Section
59-12-104
; and
955
(B) subject to Subsection (2)(c)(ii), any amounts paid or charged by a vendor described
956
in Subsection
59-12-107
(1)(b) unless all of the counties, cities, and towns in the state impose the
957
tax under Section
59-12-205
.
958
(ii) Notwithstanding Section
59-12-205
, if a county, city, or town imposes a tax under
959
Subsection (2)(c)(i)(B), the tax ordinance under this Subsection (2) shall include a provision that
960
the tax rate is equal to the lowest tax rate imposed by a county, city, or town under Section
961
59-12-205
.
962
(3) Such tax ordinance shall include provisions substantially the same as those contained
963
in Part 1, Tax Collection, insofar as they relate to sales or use tax, except that the name of the
964
county as the taxing agency shall be substituted for that of the state where necessary for the
965
purpose of this part and that an additional license is not required if one has been or is issued under
966
Section
59-12-106
.
967
(4) Such tax ordinance shall include a provision that the county shall contract, prior to the
968
effective date of the ordinance, with the commission to perform all functions incident to the
969
administration or operation of the ordinance.
970
(5) Such tax ordinance shall include a provision that the sale, storage, use, or other
971
consumption of tangible personal property, the purchase price or the cost of which has been subject
972
to sales or use tax under a sales and use tax ordinance enacted in accordance with this part by any
973
county, city, or town in any other county in this state, shall be exempt from the tax due under this
974
ordinance.
975
(6) Such tax ordinance shall include a provision that any person subject to the provisions
976
of a city or town sales and use tax shall be exempt from the county sales and use tax if the city or
977
town sales and use tax is levied under an ordinance including provisions in substance as follows:
978
(a) a provision imposing a tax upon every [retail sale of items] transaction listed in Section
979
59-12-103
made within the city or town at the rate imposed by the county in which it is situated
980
pursuant to Subsection (2);
981
(b) (i) notwithstanding Subsection (2)(a), and subject to Subsection (6)(b)(ii), a provision
982
prohibiting the city or town from imposing a tax under this section on any amounts paid or charged
983
by a vendor described in Subsection
59-12-107
(1)(b) unless all of the counties, cities, and towns
984
in the state impose a tax under this section; and
985
(ii) notwithstanding Subsection (2)(a), if a city or town imposes a tax under Subsection
986
(6)(b)(i), a provision that the tax rate is equal to the lowest tax rate imposed by a county, city, or
987
town under this section;
988
(c) (i) notwithstanding Section
59-12-205
and subject to Subsection (6)(c)(ii), a provision
989
prohibiting the city or town from imposing a tax under Section
59-12-205
on any amounts paid
990
or charged by a vendor described in Subsection
59-12-107
(1)(b) unless all of the counties, cities,
991
and towns in the state impose a tax under Section
59-12-205
; and
992
(ii) notwithstanding Section
59-12-205
, if a city or town imposes a tax under Subsection
993
(6)(c)(i), a provision that the tax rate is equal to the lowest tax rate imposed by a county, city, or
994
town under Section
59-12-205
;
995
[(b)] (d) provisions substantially the same as those contained in Part 1, Tax Collection,
996
insofar as they relate to sales and use taxes, except that the name of the city or town as the taxing
997
agency shall be substituted for that of the state where necessary for the purposes of this part;
998
[(c)] (e) a provision that the city or town shall contract prior to the effective date of the city
999
or town sales and use tax ordinance with the commission to perform all functions incident to the
1000
administration or operation of the sales and use tax ordinance of the city or town;
1001
[(d)] (f) a provision that the sale, storage, use, or other consumption of tangible personal
1002
property, the gross receipts from the sale of or the cost of which has been subject to sales or use
1003
tax under a sales and use tax ordinance enacted in accordance with this part by any county other
1004
than the county in which the city or town is located, or city or town in this state, shall be exempt
1005
from the tax; and
1006
[(e)] (g) a provision that the amount of any tax paid under Part 1, Tax Collection, shall not
1007
be included as a part of the purchase price paid or charged for a taxable item.
1008
(7) (a) Notwithstanding any other provision of this section, from January 1, 1990, through
1009
June 30, 1999, the commission shall determine and retain the amount of revenue generated by a
1010
1/64% tax rate and deposit it in the Olympics Special Revenue Fund or funds provided for in
1011
Subsection
59-12-103
(4) for the purposes of the Utah Sports Authority described in Title 63A,
1012
Chapter 7, Utah Sports Authority Act.
1013
(b) Except for sales and use taxes deposited under Subsection (7)(c), beginning on July 1,
1014
1999, the amount of revenue generated by the 1/64% tax rate under Subsection (7)(a) shall be
1015
retained by the county, city, or town levying a tax under this section.
1016
(c) Notwithstanding any other provision of this section, beginning on July 1, 1999, the
1017
commission shall:
1018
(i) determine and retain the portion of the sales and use tax imposed under this section:
1019
(A) by a city or town that will have constructed within its boundaries the Airport to
1020
University of Utah Light Rail described in the Transportation Equity Act for the 21st Century, Pub.
1021
L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
1022
(B) that is equal to the revenues generated by a 1/64% tax rate; and
1023
(ii) deposit the revenues described in Subsection (7)(c)(i) in the Airport to University of
1024
Utah Light Rail Restricted Account created in Section
17A-2-1064
for the purposes described in
1025
Section
17A-2-1064
.
1026
(8) If a county, city, or town imposes a tax under this section on any amounts paid or
1027
charged by a vendor described in Subsection
59-12-107
(1)(b), the revenues generated by the tax
1028
shall be distributed as provided in Subsection
59-12-103
(3)(c).
1029
Section 9.
Section
59-12-205
is amended to read:
1030
59-12-205. Ordinances to conform with statutory amendments -- Distribution of tax
1031
revenues.
1032
(1) Each county, city, and town, in order to maintain in effect sales and use tax ordinances
1033
adopted pursuant to [this part] Section
59-12-204
, shall, within 30 days of any amendment of any
1034
applicable provisions of Part 1, Tax Collection, adopt amendments of their respective sales and
1035
use tax ordinances to conform with the amendments to Part 1, Tax Collection, insofar as they relate
1036
to sales and use taxes.
1037
(2) (a) Any county, city, or town may distribute its sales or use tax revenues by means
1038
other than point of sale or use by notifying the commission in writing of such decision, no later
1039
than 30 days before commencement of the next tax accrual period. [After]
1040
(b) Except as provided in Subsections
59-12-204
(2)(b) and (c) and (6)(b) and (c), after
1041
such notice is given, a county, city, or town may increase the tax authorized by this part to a total
1042
of 1% [from and after] beginning on January 1, 1990, of the purchase price paid or charged[,
1043
excluding a public transit sales and use tax as provided in Section
59-12-501
and a resort
1044
communities sales tax as provided in Section
59-12-401
. This tax shall be collected and
1045
distributed as follows:].
1046
[(a) from July 1, 1992, through June 30, 1993, 45% of each dollar collected from the sales
1047
and use tax authorized by this part shall be paid to each county, city, and town providing notice
1048
under this section, based upon the percentage that the population of the county, city, or town bears
1049
to the total population of all such entities providing notice under this section, and 55% based upon
1050
the point of sale or use of the transaction; and (b) from and after July 1, 1993,]
1051
(c) Except as provided in Subsections (2)(d), (3), and (4):
1052
(i) 50% of each dollar collected from the sales and use tax authorized by this part shall be
1053
paid to each county, city, and town providing notice under this section, based upon the percentage
1054
that the population of the county, city, or town bears to the total population of all such entities
1055
providing notice under this section[,]; and
1056
(ii) 50% of each dollar collected from the sales and use tax authorized by this part shall
1057
be paid to each county, city, and town providing notice under this section, based upon the point
1058
of sale or use of the transaction.
1059
(d) Notwithstanding Subsection (2)(c), if a county, city, or town imposes a tax under this
1060
section on any amounts paid or charged by a vendor described in Subsection
59-12-107
(1)(b), the
1061
revenues generated by the tax shall be distributed as provided in Subsection
59-12-103
(3)(c).
1062
(3) (a) Notwithstanding any provision of Subsection (2), a county, city, or town that has
1063
given notice under this section may not receive a tax revenue distribution less than 3/4 of 1% of
1064
the taxable sales within its boundaries.
1065
(b) The commission shall proportionally reduce quarterly distributions to any county, city,
1066
or town, which, but for the reduction, would receive a distribution in excess of 1% beginning
1067
January 1, 1990, of the sales and use tax revenue collected within its boundaries.
1068
(4) (a) Notwithstanding any other provision of this section, from January 1, 1990, through
1069
June 30, 1999, the commission shall determine and retain the amount of revenue generated by a
1070
1/64% tax rate and deposit it in the Olympics Special Revenue Fund or funds provided for in
1071
Subsection
59-12-103
(4) for the purposes of the Utah Sports Authority described in Title 63A,
1072
Chapter 7, Utah Sports Authority Act.
1073
(b) Except for sales and use taxes deposited under Subsection (4)(c), beginning on July 1,
1074
1999, the amount of revenue generated by the 1/64% tax rate under Subsection (4)(a) shall be
1075
distributed to each county, city, and town as provided in this section.
1076
(c) Notwithstanding any other provision of this section, beginning on July 1, 1999, the
1077
commission shall:
1078
(i) determine and retain the portion of the sales and use tax imposed under this section:
1079
(A) by a city or town that will have constructed within its boundaries the Airport to
1080
University of Utah Light Rail described in the Transportation Equity Act for the 21st Century, Pub.
1081
L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
1082
(B) that is equal to the revenues generated by a 1/64% tax rate; and
1083
(ii) deposit the revenues described in Subsection (4)(c)(i) in the Airport to University of
1084
Utah Light Rail Restricted Account created in Section
17A-2-1064
for the purposes described in
1085
Section
17A-2-1064
.
1086
(5) (a) Population figures for purposes of this section shall be based on the most recent
1087
official census or census estimate of the United States Census Bureau [of the Census].
1088
(b) If population estimates are not made for any county, city, or town by the United States
1089
Bureau of Census, population figures shall be determined according to the biennial estimate from
1090
the Utah Population Estimates Committee created by executive order of the governor.
1091
(6) The population of a county for purposes of this section shall be determined solely from
1092
the unincorporated area of the county.
1093
Section 10.
Section
59-12-401
is amended to read:
1094
59-12-401. Resort communities tax -- Rate -- Collection fees.
1095
(1) (a) [In] Except as provided in Subsection (1)(b), and in addition to other sales taxes,
1096
a city or town in which the transient room capacity is greater than or equal to 66% of the
1097
permanent census population may impose a sales tax of up to 1% on the [sales and uses]
1098
transactions described in Subsection
59-12-103
(1)[, subject to exemptions provided for in Section
1099
59-12-104
, and shall exempt from that additional tax wholesale sales and sales of single items for
1100
which consideration paid is $2,500 or more].
1101
(b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
1102
section on:
1103
(i) wholesale sales;
1104
(ii) the sale of a single item for which consideration paid is $2,500 or more;
1105
(iii) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
1106
exempt from taxation under Section
59-12-104
; and
1107
(iv) any amounts paid or charged by a vendor described in Subsection
59-12-107
(1)(b).
1108
(2) (a) An amount equal to the total of any costs incurred by the state in connection with
1109
the implementation of Subsection (1) which exceed, in any year, the revenues received by the state
1110
from its collection fees received in connection with the implementation of Subsection (1) shall be
1111
paid over to the state General Fund by the cities and towns which impose the tax provided for in
1112
Subsection (1). [Payment costs]
1113
(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those
1114
cities and towns according to the amount of revenue the respective cities and towns generate in that
1115
year through imposition of that tax.
1116
Section 11.
Section
59-12-402
is amended to read:
1117
59-12-402. Additional resort communities sales tax -- Rate -- Collection fees --
1118
Resolution and voter approval requirements -- Election requirements -- Notice requirements
1119
-- Ordinance requirements.
1120
(1) (a) [Subject] Except as provided in Subsection (1)(b), and subject to the limitations of
1121
Subsections (2) through (6), the governing body of a municipality in which the transient room
1122
capacity is greater than or equal to 66% of the permanent census population may, in addition to
1123
the sales tax authorized under Section
59-12-401
, impose an additional resort communities sales
1124
tax in an amount that is less than or equal to 1/2% on the [sales and uses] transactions described
1125
in Subsection
59-12-103
(1)[, subject to the exemptions provided for in Section
59-12-104
, and
1126
shall exempt from that additional tax wholesale sales and sales of single items for which
1127
consideration paid is $2,500 or more].
1128
(b) Notwithstanding Subsection (1)(a), the governing body of a municipality may not
1129
impose a tax under this section on:
1130
(i) wholesale sales;
1131
(ii) the sale of a single item for which consideration paid is $2,500 or more;
1132
(iii) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
1133
exempt from taxation under Section
59-12-104
; and
1134
(iv) any amounts paid or charged by a vendor described in Subsection
59-12-107
(1)(b).
1135
(2) (a) An amount equal to the total of any costs incurred by the state in connection with
1136
the implementation of Subsection (1) which exceed, in any year, the revenues received by the state
1137
from its collection fees received in connection with the implementation of Subsection (1) shall be
1138
paid over to the state General Fund by the cities and towns which impose the tax provided for in
1139
Subsection (1). [Payment costs]
1140
(b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those
1141
cities and towns according to the amount of revenue the respective cities and towns generate in that
1142
year through imposition of that tax.
1143
(3) To impose an additional resort communities sales tax under this section, the governing
1144
body of the municipality shall:
1145
(a) pass a resolution approving the tax; and
1146
(b) except as provided in Subsection (6), obtain voter approval for the tax as provided in
1147
Subsection (4).
1148
(4) To obtain voter approval for an additional resort communities sales tax under
1149
Subsection (3)(b), a municipality shall:
1150
(a) hold the additional resort communities sales tax election during:
1151
(i) a regular general election; or
1152
(ii) a municipal general election; and
1153
(b) publish notice of the election:
1154
(i) 15 days or more before the day on which the election is held; and
1155
(ii) in a newspaper of general circulation in the municipality.
1156
(5) (a) An ordinance approving an additional resort communities sales tax under this
1157
section shall provide an effective date for the tax.
1158
(b) A municipality imposing a tax under this section shall:
1159
(i) collect the tax on the first day of a calendar quarter; and
1160
(ii) notify the commission at least 30 days before the day on which the commission is
1161
required to collect the tax.
1162
(6) (a) Except as provided in Subsection (6)(b), a municipality is not subject to the voter
1163
approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality
1164
imposed a license fee or tax on businesses based on gross receipts pursuant to Section
10-1-203
.
1165
(b) The exception from the voter approval requirements in Subsection (6)(a) does not
1166
apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one
1167
class of businesses based on gross receipts pursuant to Section
10-1-203
.
1168
Section 12.
Section
59-12-501
is amended to read:
1169
59-12-501. Public transit tax -- Rate -- Voter approval.
1170
(1) (a) (i) [In] Except as provided in Subsection (1)(a)(ii), in addition to other sales and
1171
use taxes, any county, city, or town within a transit district organized under Title 17A, Chapter 2,
1172
Part 10, may impose a sales and use tax of 1/4 of 1% on the [sales and uses] transactions described
1173
in Subsection
59-12-103
(1), [subject to the exemptions provided for in Section
59-12-104
,] to fund
1174
a public transportation system.
1175
(ii) Notwithstanding Subsection (1)(a)(i), a county, city, or town may not impose a tax
1176
under this section on:
1177
(A) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
1178
exempt from taxation under Section
59-12-104
; and
1179
(B) any amounts paid or charged by a vendor described in Subsection
59-12-107
(1)(b)
1180
unless all of the counties, cities, and towns in the state impose a tax under this section.
1181
(b) A county, city, or town may impose a tax under this section only if the governing body
1182
of the county, city, or town, by resolution, submits the proposal to all the qualified voters within
1183
the county, city, or town for approval at a general or special election conducted in the manner
1184
provided by statute.
1185
(2) (a) If only a portion of a county is included within a public transit district, the proposal
1186
may be submitted only to the qualified voters residing within the boundaries of the proposed or
1187
existing public transit district.
1188
(b) Notice of any such election shall be given by the county, city, or town governing body
1189
15 days in advance in the manner prescribed by statute.
1190
(c) If a majority of the voters voting in such election approve the proposal, it shall become
1191
effective on the date provided by the county, city, or town governing body.
1192
(3) This section may not be construed to require an election in jurisdictions where voters
1193
have previously approved a public transit sales or use tax.
1194
(4) If a county, city, or town imposes a tax under this section on any amounts paid or
1195
charged by a vendor described in Subsection
59-12-107
(1)(b), the revenues generated by the tax
1196
shall be:
1197
(a) distributed as provided in Subsection
59-12-103
(3)(c); and
1198
(b) used for a purpose authorized under this section.
1199
Section 13.
Section
59-12-502
is amended to read:
1200
59-12-502. Additional public transit tax for expanded system and fixed guideway
1201
and interstate improvements -- Rate -- Voter approval.
1202
(1) (a) (i) [In] Except as provided in Subsection (1)(a)(ii), and in addition to other sales
1203
and use taxes, [and] including the public transit district tax authorized by Section
59-12-501
, [any]
1204
a county, city, or town within a transit district organized under Title 17A, Chapter 2, Part 10, may
1205
impose a sales and use tax of 1/4 of 1% on the [sales and uses] transactions described in
1206
Subsection
59-12-103
(1), [subject to the exemptions provided in Section
59-12-104
,] to fund a
1207
fixed guideway and expanded public transportation system.
1208
(ii) Notwithstanding Subsection (1)(a)(i), a county, city, or town may not impose a tax
1209
under this section on:
1210
(A) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
1211
exempt from taxation under Section
59-12-104
; and
1212
(B) any amounts paid or charged by a vendor described in Subsection
59-12-107
(1)(b)
1213
unless all of the counties, cities, and towns in the state impose a tax under this section.
1214
(b) A county, city, or town may impose the tax under this section only if the governing
1215
body of the county, city, or town submits, by resolution, the proposal to all the qualified voters
1216
within the county, city, or town for approval at a general or special election conducted in the
1217
manner provided by statute. Notice of the election shall be given by the county, city, or town
1218
governing body 15 days in advance in the manner prescribed by statute.
1219
(2) If the majority of the voters voting in this election approve the proposal, it shall
1220
become effective on the date provided by the county, city, or town governing body.
1221
(3) (a) This section may not be construed to require an election in jurisdictions where
1222
voters have previously approved a public transit sales or use tax.
1223
(b) This section shall be construed to require an election to impose the sales and use tax
1224
authorized by this section, including jurisdictions where the voters have previously approved the
1225
[transit district] sales and use tax authorized by Section
59-12-501
, but this section may not be
1226
construed to affect the sales and use tax authorized by Section
59-12-501
.
1227
(4) No public funds shall be spent to promote the required election.
1228
(5) Notwithstanding the designated use of revenues in Subsection (1), of the revenues
1229
generated by the tax imposed under this section by any county of the first class, 75% shall be
1230
allocated to fund a fixed guideway and expanded public transportation system and 25% shall be
1231
allocated to fund renovations, repairs, and improvements to Interstate 15.
1232
(6) If a county, city, or town imposes a tax under this section on any amounts paid or
1233
charged by a vendor described in Subsection
59-12-107
(1)(b), the revenues generated by the tax
1234
shall be:
1235
(a) distributed as provided in Subsection
59-12-103
(3)(c); and
1236
(b) used for a purpose authorized under this section.
1237
Section 14.
Section
59-12-703
is amended to read:
1238
59-12-703. Opinion question election -- Imposition of tax -- Uses of tax monies.
1239
(1) (a) (i) [Any] Except as provided in Subsection (1)(a)(ii), a county legislative body may,
1240
by majority vote of all members, submit an opinion question to the residents of that county so that
1241
each resident has an opportunity to express the resident's opinion on the imposition of a local sales
1242
and use tax of 1/10 of 1% on the [sales and uses] transactions described in Subsection
1243
59-12-103
(1), [subject to the exemptions provided for in Section
59-12-104
,] to fund recreational
1244
and zoological facilities and botanical, cultural, and zoological organizations in that county.
1245
(ii) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a tax
1246
under this section on:
1247
(A) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
1248
exempt from taxation under Section
59-12-104
; and
1249
(B) any amounts paid or charged by a vendor described in Subsection
59-12-107
(1)(b)
1250
unless all of the counties in the state impose a tax under this section.
1251
(b) The election shall follow the procedures outlined in Title 11, Chapter 14, Utah
1252
Municipal Bond Act.
1253
(2) (a) If the county legislative body determines that a majority of the qualified electors
1254
voting on the opinion question has assented to the imposition of a local sales and use tax as
1255
prescribed in Subsection (1)(a), the county legislative body may, by a majority vote of all
1256
members, impose such a tax.
1257
(b) If the county legislative body imposes a tax under Subsection (2)(a), the tax shall be
1258
imposed at the beginning of the quarter following the county legislative body's decision to impose
1259
such a tax.
1260
(3) The monies generated from any tax imposed under Subsection (2) shall be used for
1261
financing recreational and zoological facilities and ongoing operating expenses of botanical,
1262
cultural, and zoological organizations within the county.
1263
(4) Taxes imposed under this part shall be:
1264
(a) levied at the same time and collected in the same manner as provided in Title 59,
1265
Chapter 12, Part 2, The Local Sales and Use Tax Act, except that the collection and distribution
1266
of the tax revenue is not subject to Subsection
59-12-205
(2); and
1267
(b) levied for a period of ten years and may be reauthorized at the end of the ten-year
1268
period in accordance with this section.
1269
Section 15.
Section
59-12-704
is amended to read:
1270
59-12-704. Distribution of revenues -- Advisory board creation -- Determining
1271
operating expenses.
1272
(1) Except as provided in Subsections (3)(b) and (5), and subject to the requirements of
1273
this section, any revenues collected by a county of the first class under this part shall be distributed
1274
annually by the county legislative body to support recreational and zoological facilities and
1275
botanical, cultural, and zoological organizations within that first class county as follows:
1276
(a) 30% of the revenue collected by the county under this section shall be distributed by
1277
the county legislative body to support recreational facilities located within the county;
1278
(b) (i) 12.5% of the revenue collected by the county under this section shall be distributed
1279
by the county legislative body to support zoological facilities and organizations located within the
1280
county; and
1281
(ii) the county legislative body shall determine how the monies shall be distributed among
1282
the zoological organizations;
1283
(c) (i) 52.5% of the revenue collected by the county under this section shall be distributed
1284
to botanical and cultural organizations with average annual operating expenses of more than
1285
$250,000 as determined under Subsection (3);
1286
(ii) subject to Subsection (1)(c)(iii), the county legislative body shall distribute the monies
1287
described in Subsection (1)(c)(i) among the organizations and in proportion to their average annual
1288
operating expenses as determined under Subsection (3); and
1289
(iii) the amount distributed to any organization described in Subsection (1)(c)(i) may not
1290
exceed 35% of the organization's budget; and
1291
(d) (i) 5% of the revenue collected by the county under this section shall be distributed to
1292
botanical and cultural organizations with average annual operating expenses of less than $250,000
1293
as determined under Subsection (3); and
1294
(ii) the county legislative body shall determine how the monies shall be distributed among
1295
the organizations described in Subsection (1)(d)(i).
1296
(2)(a) The county legislative body of each county of the first class shall create an advisory
1297
board to advise the county legislative body on disbursement of funds to botanical and cultural
1298
organizations under Subsection (1)(c)(i).
1299
(b) (i) The advisory board under Subsection (2)(a) shall consist of seven members
1300
appointed by the county legislative body.
1301
(ii) Two of the seven members of the advisory board under Subsection (2)(a) shall be
1302
appointed from the Utah Arts Council.
1303
(3) (a) Except as provided in Subsection (3)(b), to be eligible to receive monies collected
1304
by the county under this part, a botanical, cultural, and zoological organization located within a
1305
county of the first class shall, every three years:
1306
(i) calculate their average annual expenses based upon audited expenses for three
1307
preceding fiscal years; and
1308
(ii) submit to the appropriate county legislative body:
1309
(A) a verified audit of annual expenses for each of those three preceding fiscal years; and
1310
(B) the average annual expenses as calculated under Subsection (3)(a)(i).
1311
(b) Notwithstanding Subsection (3)(a), the county legislative body may waive the expense
1312
reporting requirements under Subsection (3)(a) for organizations described in Subsection (1)(d)(i).
1313
(4) When calculating average annual expenses as described in Subsection (3), each
1314
botanical, cultural, and zoological organization shall use the same three-year fiscal period as
1315
determined by the county legislative body.
1316
(5) (a) By July 1 of each year, the county legislative body of a first class county may index
1317
the threshold amount in Subsections (1)(a), (b), and (d).
1318
(b) Any change under Subsection (5)(a) shall be rounded off to the nearest $100.
1319
(6) In all other counties, the county legislative body shall distribute:
1320
(a) 30% of the revenues collected by the county as a result of a tax imposed under this
1321
section to support recreational facilities within the county; and
1322
(b) 70% of the revenues to botanical, cultural, and zoological facilities and organizations
1323
within the county as determined by the county legislative body.
1324
(7) If a county imposes a tax under this section on any amounts paid or charged by a
1325
vendor described in Subsection
59-12-107
(1)(b), the revenues generated by the tax shall be:
1326
(a) distributed as provided in Subsection
59-12-103
(3)(c); and
1327
(b) used for a purpose authorized under this section.
1328
[(7)] (8) The commission may retain an amount not to exceed 1-1/2% of the county option
1329
funding collected under this part for the cost of administering this part.
1330
Section 16.
Section
59-12-801
is amended to read:
1331
59-12-801. Definitions.
1332
As used in this part:
1333
(1) "Nursing care facility" is as defined in Section
26-21-2
.
1334
(2) "Rural city hospital" means a hospital owned by a city that is located within a third,
1335
fourth, fifth, or sixth class county.
1336
[(2)] (3) "Rural county health care facility" means a rural county hospital or a rural county
1337
nursing care facility.
1338
[(3)] (4) "Rural county hospital" means a hospital owned by a third, fourth, fifth, or sixth
1339
class county, as defined in Section
17-16-13
, which is located outside of a standard metropolitan
1340
statistical area, as designated by the United States Bureau of the Census.
1341
[(4)] (5) "Rural county nursing care facility" means a nursing care facility owned by a
1342
third, fourth, fifth, or sixth class county, as defined in Section
17-16-13
, which is located outside
1343
of a standard metropolitan statistical area, as designated by the United States Bureau of the Census.
1344
Section 17.
Section
59-12-802
is amended to read:
1345
59-12-802. Imposition of rural county health care facilities tax -- Base -- Rates.
1346
(1) (a) [Any] A county legislative body may[, by a majority vote of all members, submit
1347
an opinion question to the residents of that county so that each resident has an opportunity to
1348
express the resident's opinion on the imposition of a local] impose a sales and use tax of up to 1%:
1349
(i) except as provided in Subsection (1)(b), on the [sales and uses] transactions described
1350
in Subsection
59-12-103
(1)[, subject to the exemptions provided for in Section
59-12-104
,]; and
1351
(ii) to fund rural county health care facilities in that county.
1352
(b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a tax
1353
under this section on:
1354
(i) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
1355
exempt from taxation under Section
59-12-104
; and
1356
(ii) any amounts paid or charged by a vendor described in Subsection
59-12-107
(1)(b).
1357
(2) (a) Before imposing or increasing a tax under Subsection (1)(a), a county legislative
1358
body shall obtain approval to impose or increase the tax from a majority of the:
1359
(i) members of the county's legislative body; and
1360
(ii) county's registered voters voting on the imposition of the tax.
1361
(b) The county legislative body shall conduct the election [shall follow] according to the
1362
procedures [outlined in] and requirements of Title 11, Chapter 14, Utah Municipal Bond Act.
1363
[(2) If the legislative governing body determines that a majority of the qualified electors
1364
voting on the opinion question has assented to the imposition of a local sales and use tax as
1365
prescribed in Subsection (1)(a), the county legislative body may, by majority vote of all members,
1366
impose such a tax.]
1367
(3) The monies generated [from] by a tax imposed under Subsection (1) may only be used
1368
for the financing of:
1369
(a) ongoing operating expenses of a rural county health care facility; [and]
1370
(b) the acquisition of land for[, and] a rural county health care facility; or
1371
(c) the design, construction, equipping, [and] or furnishing of a rural county health care
1372
facility.
1373
(4) Taxes imposed under this [part] section shall be:
1374
(a) levied at the same time and collected in the same manner as provided in [Title 59,
1375
Chapter 12,] Part 2, The Local Sales and Use Tax Act, except that the collection and distribution
1376
of the tax revenue is not subject to Subsection
59-12-205
(2); and
1377
(b) levied for a period of ten years and may be reauthorized at the end of the ten-year
1378
period by the county legislative body as provided in Section (1).
1379
(5) The [tax] commission may retain an amount not to exceed 1-1/2% of the [county
1380
option funding] tax collected under this [part] section for the cost of administering this tax.
1381
Section 18.
Section
59-12-803
is amended to read:
1382
59-12-803. Distribution of revenues generated by rural county health care facilities
1383
tax.
1384
[All] (1) Except as provided in Subsection
59-12-802
(5) and Subsection (2), all revenues
1385
collected by a county under [this part] Section
59-12-802
shall be distributed quarterly by the
1386
county legislative body to rural county health care facilities. [If]
1387
(2) Notwithstanding Subsection (1), if there is more than one rural county health care
1388
facility in a county, the revenues collected by a county under Section
59-12-802
shall be distributed
1389
as determined by the county legislative body.
1390
Section 19.
Section
59-12-804
is amended to read:
1391
59-12-804. Imposition of rural city hospital tax -- Base -- Rates.
1392
[(1) As used in this section, "rural city hospital" means any hospital owned by a city which
1393
is located within a third, fourth, fifth, or sixth class county.]
1394
[(2) Any] (1) (a) A city legislative body may[, by a majority vote of all members submit
1395
an opinion question to the residents of that city so that each resident has an opportunity to express
1396
his opinion on the imposition of a local] impose a sales and use tax of up to 1%:
1397
(i) except as provided in Subsection (1)(b), on the transactions described in Subsection
1398
59-12-103
(1); and
1399
(ii) to fund rural city hospitals in that city.
1400
[(3) The city legislative body and the tax commission shall follow the procedures and
1401
requirements established in Sections
59-12-802
and
59-12-803
for the tax imposed under this
1402
section.]
1403
(b) Notwithstanding Subsection (1)(a)(i), a city legislative body may not impose a tax
1404
under this section on:
1405
(i) the sales and uses described in Section
59-12-104
to the extent the sales and uses are
1406
exempt from taxation under Section
59-12-104
; and
1407
(ii) any amounts paid or charged by a vendor described in Subsection
59-12-107
(1)(b).
1408
(2) (a) Before imposing or increasing a tax under Subsection (1)(a), a city legislative body
1409
shall obtain approval to impose the tax from a majority of the:
1410
(i) members of the city legislative body; and
1411
(ii) city's registered voters voting on the imposition of the tax.
1412
(b) The city legislative body shall conduct the election according to the procedures and
1413
requirements of Title 11, Chapter 14, Utah Municipal Bond Act.
1414
(3) The monies generated by a tax imposed under Subsection (1) may only be used for the
1415
financing of:
1416
(a) ongoing operating expenses of a rural city hospital;
1417
(b) the acquisition of land for a rural city hospital; or
1418
(c) the design, construction, equipping, or furnishing of a rural city hospital.
1419
(4) Taxes imposed under this section shall be:
1420
(a) levied at the same time and collected in the same manner as provided in Part 2, The
1421
Local Sales and Use Tax Act, except that the collection and distribution of the tax revenue is not
1422
subject to Subsection
59-12-205
; and
1423
(b) levied for a period of ten years and may be reauthorized at the end of the ten-year
1424
period by the city legislative body as provided in Subsection (1).
1425
(5) The commission may retain an amount not to exceed 1-1/2% of the tax collected under
1426
this section for the cost of administering the tax.
1427
Section 20.
Section
59-12-805
is enacted to read:
1428
59-12-805. Distribution of revenues generated by rural city hospital tax.
1429
(1) Except as provided in Subsection
59-12-804
(5) and Subsection (2), all revenues
1430
collected by a city under Section
59-12-804
shall be distributed quarterly by the city legislative
1431
body to rural city hospitals.
1432
(2) Notwithstanding Subsection (1), if there is more than one rural city hospital in a city,
1433
the revenues collected by the city under Section
59-12-804
shall be distributed as determined by
1434
the city legislative body.
1435
Section 21.
Section
59-12-902
is amended to read:
1436
59-12-902. Sales tax refund for qualified emergency food agencies -- Administration
1437
-- Rulemaking authority.
1438
(1) Beginning on January 1, 1998, a qualified emergency food agency may claim a sales
1439
tax refund as provided in this section on the pounds of food donated to the qualified emergency
1440
food agency.
1441
(2) (a) Subject to the adjustments provided for in Subsection (2)(b), a qualified emergency
1442
food agency may claim a refund in an amount equal to the pounds of food donated to the qualified
1443
emergency food agency multiplied by:
1444
(i) $1.70; and
1445
(ii) [the lowest percentage of combined state and local sales and use taxes collected by a
1446
municipality in the state under this chapter, except that the lowest percentage of combined state
1447
and local sales and use taxes does not include the levy under Subsection
59-12-103
(3).] the sum
1448
of:
1449
(A) 4.75%; and
1450
(B) except as provided in Subsection (2)(b), the sum of the following tax rates:
1451
(I) the lowest tax rate imposed by a county, city, or town under Section
59-12-204
, but
1452
only if all of the counties, cities, and towns in the state impose the tax under Section
59-12-204
;
1453
(II) the lowest tax rate imposed by a county, city, or town under Section
59-12-205
, but
1454
only if all of the counties, cities, and towns in the state impose the tax under Section
59-12-205
;
1455
(III) the tax rate authorized by Section
59-12-501
, but only if all of the counties, cities, and
1456
towns in the state impose the tax under Section
59-12-501
;
1457
(IV) the tax rate authorized by Section
59-12-502
, but only if all of the counties, cities, and
1458
towns in the state impose the tax under Section
59-12-502
;
1459
(V) the tax rate authorized by Section
59-12-703
, but only if all of the counties in the state
1460
impose the tax under Section
59-12-703
;
1461
(VI) the tax rate authorized by Section
59-12-1001
, but only if all of the cities and towns
1462
in the state impose the tax under Section
59-12-1001
; and
1463
(VII) the tax rate authorized by Section
59-12-1102
, but only if all of the counties in the
1464
state impose the tax under Section
59-12-1102
.
1465
(b) Taxes authorized under the following do not apply to Subsection (2)(a)(ii):
1466
(i) Subsection
59-12-103
(2)(a)(i);
1467
(ii) Subsection
59-12-103
(2)(b)(i);
1468
(iii) Subsection
59-12-103
(2)(c)(i);
1469
(iv) Section
59-12-301
;
1470
(v) Section
59-12-352
;
1471
(vi) Section
59-12-353
;
1472
(vii) Section
59-12-401
;
1473
(viii) Section
59-12-402
;
1474
(ix) Section
59-12-603
;