Download Zipped Enrolled WP 9 SB0147.ZIP
[Introduced][Amended][Status][Bill Documents][Fiscal Note][Bills Directory]
S.B. 147 Enrolled
STREAMLINED SALES TAX PROJECT
AMENDMENTS
2003 GENERAL SESSION
STATE OF UTAH
Sponsor: Lyle W. Hillyard
This act modifies the Municipal Energy Sales and Use Tax Act and the Revenue and
Taxation Code. The act provides income tax credits for certain hand tools used in a
farming operation. The act provides and amends definitions relating to sales and use
taxes. This act authorizes the State Tax Commission to enter into an agreement with one
or more states relating to certain sales and use taxes. The act provides the purposes of
the agreement and prescribes the scope of the agreement. The act grants the State Tax
Commission rulemaking authority. The act provides that the agreement may require
each state that is a member of the agreement to abide by certain requirements and
establishes those requirements. The act modifies state and local sales and use tax rates
for taxes collected by certain sellers. The act provides and modifies effective dates for
state and local sales and use taxes. The act modifies requirements for enacting, repealing,
or changing the tax rate of a local sales and use tax. The act repeals obsolete language.
The act provides that revenues in the Remote Sales Restricted Account shall be deposited
into the General Fund on a certain date. The act modifies transactions that are subject to
sales and use taxes. The act provides, modifies, and repeals sales and use tax exemptions.
The act modifies requirements to report certain sales and use tax information to or file
certain returns with the State Tax Commission. The act modifies requirements
pertaining to exemption certificates. The act amends provisions relating to the voluntary
collection of sales and use taxes by a seller. The act addresses for certain sellers
registered under the agreement the due dates for paying certain sales and use tax
obligations and the requirements for calculating certain sales and use tax obligations.
The act repeals provisions relating to credits for certain taxes paid. The act permits a
seller or a seller's certified service provider to deduct or file a refund claim for bad debt
under certain circumstances. The act addresses the recovery of bad debt. The act
authorizes the commission to issue a direct payment permit to certain sellers to be used for
certain types of transactions. This act provides procedures and requirements for the State
Tax Commission to issue or revoke a direct payment permit and for sellers to use direct
payment permits. The act addresses the procedures for apportioning and remitting to the
State Tax Commission certain sales and use taxes on transactions involving certain goods
or services that will be concurrently available for use in more than one location. The act
addresses the collection, remittance, and payment of certain sales and use taxes on direct
mail. The act modifies provisions relating to filing sales and use tax returns and retaining a
portion of sales and use taxes collected. The act provides procedures and requirements for
a seller to obtain a refund or credit for taxes overpaid by a purchaser. The act requires the
State Tax Commission to grant a seller amnesty under certain circumstances and provides
procedures and requirements for granting amnesty. The act modifies the procedures and
requirements for determining the location of a transaction or where a transaction is
consummated for certain sales and use taxes imposed by a county, city, or town. The act
provides that a county, city, or town may impose a sales or use tax on transactions located
within the county, city, or town. The act modifies the time period for notifying the
commission of the enactment, repeal, or change in the rate of a tax. The act limits a seller's
sales and use tax liability for failing to collect certain sales and use taxes if the seller relies
on a database created by the State Tax Commission. The act addresses the collection and
distribution of local sales and use taxes. The act addresses the State Tax Commission
authority to retain an administrative fee for certain taxes the State Tax Commission
collects. The act modifies the transactions that are subject to taxation by certain counties,
cities, or towns. The act modifies the transactions for which a qualified emergency food
agency may claim a tax refund. The act makes technical changes. The act requires the
Revenue and Taxation Interim Committee to conduct a study and prescribes the scope of
that study. The act provides an effective date.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
- 2 -
10-1-304, as last amended by Chapter 138, Laws of Utah 2002
10-1-307, as last amended by Chapter 305, Laws of Utah 1997
17A-2-1064, as last amended by Chapter 253, Laws of Utah 2000
59-1-403, as last amended by Chapters 52 and 175, Laws of Utah 2002
59-12-102, as last amended by Chapters 77, 117, 192, and 320, Laws of Utah 2002
59-12-103, as last amended by Chapter 2, Laws of Utah 2002, Sixth Special Session
59-12-103.1, as enacted by Chapter 253, Laws of Utah 2000
59-12-103.2, as last amended by Chapter 104, Laws of Utah 2001
59-12-104, as last amended by Chapters 117, 138, 217, and 286, Laws of Utah 2002
59-12-104.1, as last amended by Chapter 291, Laws of Utah 1998
59-12-104.2, as enacted by Chapter 243, Laws of Utah 2001
59-12-105, as last amended by Chapter 262, Laws of Utah 2001
59-12-106, as last amended by Chapter 253, Laws of Utah 2000
59-12-107, as last amended by Chapter 104, Laws of Utah 2001
59-12-108, as last amended by Chapter 289, Laws of Utah 1998
59-12-110, as last amended by Chapter 253, Laws of Utah 2000
59-12-113, as renumbered and amended by Chapter 5, Laws of Utah 1987
59-12-115, as renumbered and amended by Chapter 5, Laws of Utah 1987
59-12-117, as last amended by Chapter 9, Laws of Utah 2001
59-12-204, as last amended by Chapters 2 and 253, Laws of Utah 2000
59-12-205, as last amended by Chapters 2, 253, and 318, Laws of Utah 2000
59-12-208.1, as enacted by Chapter 319, Laws of Utah 2000
59-12-210, as enacted by Chapter 259, Laws of Utah 1994
59-12-301, as last amended by Chapter 207, Laws of Utah 2002
59-12-302, as last amended by Chapter 305, Laws of Utah 1997
59-12-354, as last amended by Chapter 319, Laws of Utah 2000
59-12-355, as enacted by Chapter 319, Laws of Utah 2000
59-12-401, as last amended by Chapter 253, Laws of Utah 2000
- 3 -
59-12-402, as last amended by Chapters 253 and 319, Laws of Utah 2000
59-12-403, as enacted by Chapter 319, Laws of Utah 2000
59-12-501, as last amended by Chapter 253, Laws of Utah 2000
59-12-502, as last amended by Chapter 217, Laws of Utah 2001
59-12-504, as enacted by Chapter 319, Laws of Utah 2000
59-12-603, as last amended by Chapter 11, Laws of Utah 2001, First Special Session
59-12-703, as last amended by Chapter 192, Laws of Utah 2001
59-12-802, as last amended by Chapters 104 and 226, Laws of Utah 2001
59-12-804, as last amended by Chapter 104, Laws of Utah 2001
59-12-806, as enacted by Chapter 319, Laws of Utah 2000
59-12-901, as last amended by Chapter 162, Laws of Utah 2001
59-12-902, as last amended by Chapters 104 and 162, Laws of Utah 2001
59-12-1001, as last amended by Chapter 101, Laws of Utah 2002
59-12-1102, as last amended by Chapters 253 and 319, Laws of Utah 2000
59-12-1302, as last amended by Chapters 253 and 319, Laws of Utah 2000
59-12-1402, as enacted by Chapter 192, Laws of Utah 2001
ENACTS:
59-7-614.1, Utah Code Annotated 1953
59-10-134.1, Utah Code Annotated 1953
59-12-102.1, Utah Code Annotated 1953
59-12-107.1, Utah Code Annotated 1953
59-12-107.2, Utah Code Annotated 1953
59-12-107.3, Utah Code Annotated 1953
59-12-110.1, Utah Code Annotated 1953
59-12-121, Utah Code Annotated 1953
59-12-207.1, Utah Code Annotated 1953
59-12-207.2, Utah Code Annotated 1953
59-12-207.3, Utah Code Annotated 1953
- 4 -
59-12-207.4, Utah Code Annotated 1953
59-12-207.5, Utah Code Annotated 1953
59-12-356, Utah Code Annotated 1953
59-12-404, Utah Code Annotated 1953
59-12-505, Utah Code Annotated 1953
59-12-604, Utah Code Annotated 1953
59-12-706, Utah Code Annotated 1953
59-12-807, Utah Code Annotated 1953
59-12-1003, Utah Code Annotated 1953
59-12-1103, Utah Code Annotated 1953
59-12-1303, Utah Code Annotated 1953
59-12-1404, Utah Code Annotated 1953
REPEALS:
59-12-207, as last amended by Chapters 157 and 320, Laws of Utah 2002
Be it enacted by the Legislature of the state of Utah:
Section 1.
Section
10-1-304
is amended to read:
10-1-304. Municipality may levy tax -- Rate -- Imposition or repeal of tax -- Tax
rate change -- Effective date -- Notice requirements -- Exemptions.
(1) Except as provided in Subsection (4), a municipality may levy a municipal energy
sales and use tax on the sale or use of taxable energy within the municipality:
(a) by ordinance as provided in Section
10-1-305
; and
(b) of up to 6% of the delivered value of the taxable energy.
(2) A municipal energy sales and use tax imposed under this part may be in addition to
any [local option] sales and use tax imposed by the municipality [as provided in] under Title 59,
Chapter 12, [Part 2, Local Sales and Use Tax Act] Sales and Use Tax Act.
(3) (a) For purposes of this Subsection (3):
(i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part 4,
Annexation.
- 5 -
(ii) "Annexing area" means an area that is annexed into a city or town.
(b) (i) If, on or after May 1, 2000, a city or town enacts or repeals a tax or changes the
rate of a tax under this part, the enactment, repeal, or change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a [75-day] 90-day period beginning on the date the commission receives notice
meeting the requirements of Subsection (3)(b)(ii) from the city or town.
(ii) The notice described in Subsection (3)(b)(i)(B) shall state:
(A) that the city or town will enact or repeal a tax or change the rate of a tax under this
part;
(B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
(D) if the city or town enacts the tax or changes the rate of the tax described in
Subsection (3)(b)(ii)(A), the new rate of the tax.
(c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a [75-day] 90-day period beginning on the date the commission receives notice
meeting the requirements of Subsection (3)(c)(ii) from the city or town that annexes the annexing
area.
(ii) The notice described in Subsection (3)(c)(i)(B) shall state:
(A) that the annexation described in Subsection (3)(c)(i) will result in a change in the rate
of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (3)(c)(ii)(A);
(C) the effective date of the tax described in Subsection (3)(c)(ii)(A); and
(D) the new rate of the tax described in Subsection (3)(c)(ii)(A).
(4) Notwithstanding Subsection (1), a sale or use of electricity within a municipality is
exempt from the tax authorized by this section if the sale or use is:
(a) made under a tariff adopted by the Public Service Commission of Utah only for
- 6 -
purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
source, as designated in the tariff by the Public Service Commission of Utah; and
(b) for an amount of electricity that is:
(i) unrelated to the amount of electricity used by the person purchasing the electricity
under the tariff described in Subsection (4)(a); and
(ii) equivalent to the number of kilowatthours specified in the tariff described in
Subsection (4)(a) that may be purchased under the tariff described in Subsection (4)(a).
Section 2.
Section
10-1-307
is amended to read:
10-1-307. Collection of taxes by commission -- Distribution of revenues -- Charge
for services -- Collection of taxes by municipality.
(1) Except for the direct payment provisions provided in Subsection (3), the commission
shall collect, enforce, and administer the municipal energy sales and use tax from energy
suppliers according to the procedures established in Title 59, Chapter 12, Part 1, Tax Collection.
(2) (a) Except as provided in Subsections
10-1-203
(3)(d),
10-1-305
(5), and
10-1-310
(2),
the commission shall pay a municipality the difference between:
(i) the entire amount collected by the commission from the municipal energy sales and
use tax authorized by this part based on:
(A) the point of sale of the taxable energy if a taxable sale occurs in a municipality that
imposes a municipal energy sales and use tax as provided in this part; or
(B) the point of use of the taxable energy if the use occurs in a municipality that imposes
a municipal energy sales and use tax as provided in this part; and
(ii) [minus] the administration fee charged in accordance with Subsection (2)(c).
(b) In accordance with Subsection (2)(a), the commission shall transfer to the
municipality monthly by electronic transfer the revenues generated by the municipal energy sales
and use tax levied by the municipality and collected by the commission.
(c) (i) The commission shall charge a municipality imposing a municipal energy sales
and use tax a fee for administering the tax at the percentage provided in Section
59-12-206
,
except that the commission may not charge a fee for taxes collected by a municipality under
- 7 -
Subsection (3).
(ii) The fee charged under Subsection (2)(c)(i) shall be:
(A) deposited in the Sales and Use Tax Administrative Fees Account; and
(B) used for sales tax administration as provided in Subsection
59-12-206
(2).
(3) An energy supplier shall pay the municipal energy sales and use tax revenues it
collects from its customers under this part directly to each municipality in which the energy
supplier has sales of taxable energy if:
(a) the municipality is the energy supplier; or
(b) (i) the energy supplier estimates that the municipal energy sales and use tax collected
annually by the energy supplier from its Utah customers equals $1,000,000 or more; and
(ii) the energy supplier collects the tax imposed by this part.
(4) An energy supplier paying a tax under this part directly to a municipality may retain
the percentage of the tax authorized under Subsection
59-12-108
[(3)] (2) for the energy
supplier's costs of collecting and remitting the tax.
(5) An energy supplier paying the tax under this part directly to a municipality shall file
an information return with the commission, at least annually, on a form prescribed by the
commission.
Section 3.
Section
17A-2-1064
is amended to read:
17A-2-1064. Airport to University of Utah Light Rail Restricted Account --
Creation -- Use of revenues.
(1) There is created within the General Fund a restricted account known as the "Airport
to University of Utah Light Rail Restricted Account."
(2) The account shall be funded from the portion of the sales and use tax under
[Sections] Section
59-12-204
[and
59-12-205
] that is:
(a) generated by a city or town that will have constructed within its boundaries the
Airport to University of Utah Light Rail described in the Transportation Equity Act for the 21st
Century, Pub. L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
(b) equal to the revenues generated by a 1/64% tax rate on the taxable transactions under
- 8 -
Subsection
59-12-103
(1).
(3) The Utah State Tax Commission shall deposit the revenues described in Subsection
(2) into the account.
(4) The account shall earn interest which shall be deposited into the account.
(5) (a) A district may use the revenues in the account for a purpose described in
Subsection (5)(b) if:
(i) more than 200,000 people reside within the district boundaries; and
(ii) the district receives a grant or a loan under 49 U.S.C. Sec. 5309:
(A) for the Airport to University of Utah Light Rail project described in the
Transportation Equity Act for the 21st Century, Pub. L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II),
112 Stat. 107; and
(B) before the construction of the Airport to University of Utah Light Rail project
described in Subsection (5)(a)(ii)(A) is completed.
(b) Subsection (5)(a) applies to:
(i) maintaining the Airport to University of Utah Light Rail described in Subsection
(5)(a)(ii)(A); or
(ii) operating the Airport to University of Utah Light Rail described in Subsection
(5)(a)(ii)(A).
Section 4.
Section
59-1-403
is amended to read:
59-1-403. Confidentiality -- Exceptions -- Penalty -- Application to property tax.
(1) (a) Except as provided in this section, any of the following may not divulge or make
known in any manner any information gained by that person from any return filed with the
commission:
(i) a tax commissioner;
(ii) an agent, clerk, or other officer or employee of the commission; or
(iii) a representative, agent, clerk, or other officer or employee of any county, city, or
town.
(b) Except as provided in Subsection (1)(c), an official charged with the custody of a
- 9 -
return filed with the commission is not required to produce the return or evidence of anything
contained in the return in any action or proceeding in any court, except:
(i) in accordance with judicial order;
(ii) on behalf of the commission in any action or proceeding under:
(A) this title; or
(B) other law under which persons are required to file returns with the commission;
(iii) on behalf of the commission in any action or proceeding to which the commission is
a party; or
(iv) on behalf of any party to any action or proceeding under this title if the report or
facts shown by the return are directly involved in the action or proceeding.
(c) Notwithstanding Subsection (1)(b), a court may require the production of, and may
admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
pertinent to the action or proceeding.
(2) This section does not prohibit:
(a) a person or that person's duly authorized representative from receiving a copy of any
return or report filed in connection with that person's own tax;
(b) the publication of statistics as long as the statistics are classified to prevent the
identification of particular reports or returns; and
(c) the inspection by the attorney general or other legal representative of the state of the
report or return of any taxpayer:
(i) who brings action to set aside or review a tax based on the report or return;
(ii) against whom an action or proceeding is contemplated or has been instituted under
this title; or
(iii) against whom the state has an unsatisfied money judgment.
(3) (a) Notwithstanding Subsection (1) and for purposes of administration, the
commission may by rule, made in accordance with Title 63, Chapter 46a, Utah Administrative
Rulemaking Act, provide for a reciprocal exchange of information with:
(i) the United States Internal Revenue Service; or
- 10 -
(ii) the revenue service of any other state.
(b) Notwithstanding Subsection (1) and for all taxes except individual income tax and
corporate franchise tax, the commission may by rule, made in accordance with Title 63, Chapter
46a, Utah Administrative Rulemaking Act, share information gathered from returns and other
written statements with the federal government, any other state, any of the political subdivisions
of another state, or any political subdivision of this state, except as limited by Sections
59-12-209
and
59-12-210
, if these political subdivisions or the federal government grant substantially
similar privileges to this state.
(c) Notwithstanding Subsection (1) and for all taxes except individual income tax and
corporate franchise tax, the commission may by rule, in accordance with Title 63, Chapter 46a,
Utah Administrative Rulemaking Act, provide for the issuance of information concerning the
identity and other information of taxpayers who have failed to file tax returns or to pay any tax
due.
(d) Notwithstanding Subsection (1), the commission shall provide to the Solid and
Hazardous Waste Control Board executive secretary, as defined in Section
19-6-102
, as
requested by the executive secretary, any records, returns, or other information filed with the
commission under Chapter 13, Motor and Special Fuel Tax Act, or Section
19-6-410.5
regarding
the environmental assurance program participation fee.
(e) Notwithstanding Subsection (1), at the request of any person the commission shall
provide that person sales and purchase volume data reported to the commission on a report,
return, or other information filed with the commission under:
(i) Chapter 13, Part 2, Motor Fuel; or
(ii) Chapter 13, Part 4, Aviation Fuel.
(f) Notwithstanding Subsection (1), upon request from a tobacco product manufacturer,
as defined in Section
59-22-202
, the commission shall report to the manufacturer:
(i) the quantity of cigarettes, as defined in Section
59-22-202
, produced by the
manufacturer and reported to the commission for the previous calendar year under Section
59-14-407
; and
- 11 -
(ii) the quantity of cigarettes, as defined in Section
59-22-202
, produced by the
manufacturer for which a tax refund was granted during the previous calendar year under Section
59-14-401
and reported to the commission under Subsection
59-14-401
(1)(a)(v).
(g) Notwithstanding Subsection (1), the commission shall notify manufacturers,
distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
from selling cigarettes to consumers within the state under Subsection
59-14-210
(2).
(h) Notwithstanding Subsection (1), the commission may:
(i) provide to the Division of Consumer Protection within the Department of Commerce
and the attorney general data:
(A) reported to the commission under Section
59-14-212
; or
(B) related to a violation under Section
59-14-211
; and
(ii) upon request provide to any person data reported to the commission under
Subsections
59-14-212
(1)(a) through(c) and Subsection
59-14-212
(1)(g).
(i) Notwithstanding Subsection (1), the commission shall, at the request of a committee
of the Legislature, Office of the Legislative Fiscal Analyst, or Governor's Office of Planning and
Budget, provide to the committee or office the total amount of revenues collected by the
commission under Chapter 24, Radioactive Waste Tax Act, for the time period specified by the
committee or office.
(j) Notwithstanding Subsection (1), the commission shall at the request of the Legislature
provide to the Legislature the total amount of sales or uses exempt under Subsection
59-12-104
[(52)] (51) reported to the commission in accordance with Section
59-12-105
.
(k) Notwithstanding Subsection (1), the commission shall make the list required by
Subsection
59-14-408
(3) available for public inspection.
(4) (a) Reports and returns shall be preserved for at least three years.
(b) After the three-year period provided in Subsection (4)(a) the commission may destroy
a report or return.
(5) (a) Any person who violates this section is guilty of a class A misdemeanor.
(b) If the person described in Subsection (5)(a) is an officer or employee of the state, the
- 12 -
person shall be dismissed from office and be disqualified from holding public office in this state
for a period of five years thereafter.
(6) This part does not apply to the property tax.
Section 5.
Section
59-7-614.1
is enacted to read:
59-7-614.1. Refundable tax credit for hand tools used in farming operations --
Procedures for refund -- Transfers from General Fund to Uniform School Fund --
Rulemaking authority.
(1) For taxable years beginning on or after January 1, 2004, a taxpayer may claim a
refundable tax credit:
(a) as provided in this section;
(b) against taxes otherwise due under this chapter; and
(c) in an amount equal to the amount of tax the taxpayer pays:
(i) on a purchase of a hand tool:
(A) if the purchase is made on or after July 1, 2004;
(B) if the hand tool is used or consumed primarily and directly in a farming operation in
the state; and
(C) if the unit purchase price of the hand tool is more than $250; and
(ii) under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
(1)(c)(i).
(2) A taxpayer:
(a) shall retain the following to establish the amount of tax the resident or nonresident
individual paid under Chapter 12, Sales and Use Tax Act, on the purchase described in
Subsection (1)(c)(i):
(i) a receipt;
(ii) an invoice; or
(iii) a document similar to a document described in Subsection (2)(a)(i) or (ii); and
(b) may not carry forward or carry back a tax credit under this section.
(3) (a) In accordance with any rules prescribed by the commission under Subsection
- 13 -
(3)(b), the commission shall:
(i) make a refund to a taxpayer that claims a tax credit under this section if the amount of
the tax credit exceeds the taxpayer's tax liability under this chapter; and
(ii) transfer at least annually from the General Fund into the Uniform School Fund an
amount equal to the amount of tax credit claimed under this section.
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission may make rules providing procedures for making:
(i) a refund to a taxpayer as required by Subsection (3)(a)(i); or
(ii) transfers from the General Fund into the Uniform School Fund as required by
Subsection (3)(a)(ii).
Section 6.
Section
59-10-134.1
is enacted to read:
59-10-134.1. Refundable tax credit for hand tools used in farming operations --
Procedures for refund -- Transfers from General Fund to Uniform School Fund --
Rulemaking authority.
(1) For taxable years beginning on or after January 1, 2004, a resident or nonresident
individual may claim a refundable tax credit:
(a) as provided in this section;
(b) against taxes otherwise due under this chapter; and
(c) in an amount equal to the amount of tax the resident or nonresident individual pays:
(i) on a purchase of a hand tool:
(A) if the purchase is made on or after July 1, 2004;
(B) if the hand tool is used or consumed primarily and directly in a farming operation in
the state; and
(C) if the unit purchase price of the hand tool is more than $250; and
(ii) under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
(1)(c)(i).
(2) A resident or nonresident individual:
(a) shall retain the following to establish the amount of tax the resident or nonresident
- 14 -
individual paid under Chapter 12, Sales and Use Tax Act, on the purchase described in
Subsection (1)(c)(i):
(i) a receipt;
(ii) an invoice; or
(iii) a document similar to a document described in Subsection (2)(a)(i) or (ii); and
(b) may not carry forward or carry back a tax credit under this section.
(3) (a) In accordance with any rules prescribed by the commission under Subsection
(3)(b), the commission shall:
(i) make a refund to a resident or nonresident individual who claims a tax credit under
this section if the amount of the tax credit exceeds the resident or nonresident individual's tax
liability under this chapter; and
(ii) transfer at least annually from the General Fund into the Uniform School Fund an
amount equal to the amount of tax credit claimed under this section.
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission may make rules providing procedures for making:
(i) a refund to a resident or nonresident individual as required by Subsection (3)(a)(i); or
(ii) transfers from the General Fund into the Uniform School Fund as required by
Subsection (3)(a)(ii).
Section 7.
Section
59-12-102
is amended to read:
59-12-102. Definitions.
As used in this chapter:
(1) (a) "Admission or user fees" includes season passes.
(b) "Admission or user fees" does not include annual membership dues to private
organizations.
(2) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
Section
59-12-102.1
.
(3) "Agreement combined tax rate" means the sum of the tax rates:
(a) listed under Subsection (4); and
- 15 -
(b) that are imposed within a local taxing jurisdiction.
(4) "Agreement sales and use tax" means a tax imposed under:
(a) Subsection
59-12-103
(2)(a)(i);
(b) Section
59-12-204
;
(c) Section
59-12-401
;
(d) Section
59-12-402
;
(e) Section
59-12-501
;
(f) Section
59-12-502
;
(g) Section
59-12-703
;
(h) Section
59-12-802
;
(i) Section
59-12-804
;
(j) Section
59-12-1001
;
(k) Section
59-12-1102
;
(l) Section
59-12-1302
; or
(m) Section
59-12-1402
.
(5) "Alcoholic beverage" means a beverage that:
(a) is suitable for human consumption; and
(b) contains .5% or more alcohol by volume.
[(2)] (6) "Area agency on aging" is as defined in Section
62A-3-101
.
[(3)] (7) "Authorized carrier" means:
(a) in the case of vehicles operated over public highways, the holder of credentials
indicating that the vehicle is or will be operated pursuant to both the International Registration
Plan and the International Fuel Tax Agreement;
(b) in the case of aircraft, the holder of a Federal Aviation Administration operating
certificate or air carrier's operating certificate; or
(c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
stock, the holder of a certificate issued by the United States Surface Transportation Board.
(8) "Certified automated system" means software certified by the governing board of the
- 16 -
agreement in accordance with Section
59-12-102.1
that:
(a) calculates the agreement sales and use tax imposed within a local taxing jurisdiction:
(i) on a transaction; and
(ii) in the states that are members of the agreement;
(b) determines the amount of agreement sales and use tax to remit to a state that is a
member of the agreement; and
(c) maintains a record of the transaction described in Subsection (8)(a)(i).
(9) "Certified service provider" means an agent certified:
(a) by the governing board of the agreement in accordance with Section
59-12-102.1
; and
(b) to perform all of a seller's sales and use tax functions for an agreement sales and use
tax.
(10) (a) Subject to Subsection (10)(b), "clothing" means all human wearing apparel
suitable for general use.
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission shall make rules:
(i) listing the items that constitute "clothing"; and
(ii) that are consistent with the list of items that constitute "clothing" under the
agreement.
[(4)] (11) (a) For purposes of Subsection
59-12-104
[(43)] (42), "coin-operated
amusement device" means:
(i) a coin-operated amusement, skill, or ride device;
(ii) that is not controlled through [vendor-assisted] seller-assisted, over-the-counter, sales
of tokens; and
(iii) includes a music machine, pinball machine, billiard machine, video game machine,
arcade machine, and a mechanical or electronic skill game or ride.
(b) For purposes of Subsection
59-12-104
[(43)] (42), "coin-operated amusement device"
does not mean a coin-operated amusement device possessing a coinage mechanism that:
(i) accepts and registers multiple denominations of coins; and
- 17 -
(ii) allows the [vendor] seller to collect the sales and use tax at the time an amusement
device is activated and operated by a person inserting coins into the device.
[(5)] (12) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
fuels that does not constitute industrial use under Subsection [(13)] (30) or residential use under
Subsection [(23)] (52).
[(6)] (13) (a) "Common carrier" means a person engaged in or transacting the business of
transporting passengers, freight, merchandise, or other property for hire within this state.
(b) (i) "Common carrier" does not include a person who, at the time the person is
traveling to or from that person's place of employment, transports a passenger to or from the
passenger's place of employment.
(ii) For purposes of Subsection [(6)] (13)(b)(i), in accordance with Title 63, Chapter 46a,
Utah Administrative Rulemaking Act, the commission may make rules defining what constitutes
a person's place of employment.
[(7)] (14) "Component part" includes:
(a) poultry, dairy, and other livestock feed, and their components;
(b) baling ties and twine used in the baling of hay and straw;
(c) fuel used for providing temperature control of orchards and commercial greenhouses
doing a majority of their business in wholesale sales, and for providing power for off-highway
type farm machinery; and
(d) feed, seeds, and seedlings.
(15) "Computer" means an electronic device that accepts information:
(a) (i) in digital form; or
(ii) in a form similar to digital form; and
(b) manipulates that information for a result based on a sequence of instructions.
(16) "Computer software" means a set of coded instructions designed to cause:
(a) a computer to perform a task; or
(b) automatic data processing equipment to perform a task.
[(8)] (17) "Construction materials" means any tangible personal property that will be
- 18 -
converted into real property.
(18) "Delivered electronically" means delivered to a purchaser by means other than
tangible storage media.
(19) (a) "Delivery charge" means a charge:
(i) by a seller of:
(A) tangible personal property; or
(B) services; and
(ii) for preparation and delivery of the tangible personal property or services described in
Subsection (19)(a)(i) to a location designated by the purchaser.
(b) "Delivery charge" includes a charge for the following:
(i) transportation;
(ii) shipping;
(iii) postage;
(iv) handling;
(v) crating; or
(vi) packing.
(20) "Dietary supplement" means a product, other than tobacco, that:
(a) is intended to supplement the diet;
(b) contains one or more of the following dietary ingredients:
(i) a vitamin;
(ii) a mineral;
(iii) an herb or other botanical;
(iv) an amino acid;
(v) a dietary substance for use by humans to supplement the diet by increasing the total
dietary intake; or
(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
described in Subsections (20)(b)(i) through (v);
(c) (i) except as provided in Subsection (20)(c)(ii), is intended for ingestion in:
- 19 -
(A) tablet form;
(B) capsule form;
(C) powder form;
(D) softgel form;
(E) gelcap form; or
(F) liquid form; or
(ii) notwithstanding Subsection (20)(c)(i), if the product is not intended for ingestion in a
form described in Subsections (20)(c)(i)(A) through (F), is not represented:
(A) as conventional food; and
(B) for use as a sole item of:
(I) a meal; or
(II) the diet; and
(d) is required to be labeled as a dietary supplement:
(i) identifiable by the "Supplemental Facts" box found on the label; and
(ii) as required by 21 C.F.R. Sec. 101.36.
(21) (a) "Direct mail" means printed material delivered or distributed by United States
mail or other delivery service:
(i) to:
(A) a mass audience; or
(B) addressees on a mailing list provided by a purchaser of the mailing list; and
(ii) if the cost of the printed material is not billed directly to the recipients.
(b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
purchaser to a seller of direct mail for inclusion in a package containing the printed material.
(c) "Direct mail" does not include multiple items of printed material delivered to a single
address.
(22) (a) "Drug" means a compound, substance, or preparation, or a component of a
compound, substance, or preparation that is:
(i) recognized in:
- 20 -
(A) the official United States Pharmacopoeia;
(B) the official Homeopathic Pharmacopoeia of the United States;
(C) the official National Formulary; or
(D) a supplement to a publication listed in Subsections (22)(a)(i)(A) through (C);
(ii) intended for use in the:
(A) diagnosis of disease;
(B) cure of disease;
(C) mitigation of disease;
(D) treatment of disease; or
(E) prevention of disease; or
(iii) intended to affect:
(A) the structure of the body; or
(B) any function of the body.
(b) "Drug" does not include:
(i) food and food ingredients;
(ii) a dietary supplement;
(iii) an alcoholic beverage; or
(iv) a prosthetic device.
(23) (a) Except as provided in Subsection (23)(c), "durable medical equipment" means
equipment that:
(i) can withstand repeated use;
(ii) is primarily and customarily used to serve a medical purpose;
(iii) generally is not useful to a person in the absence of illness or injury;
(iv) is not worn in or on the body; and
(v) is listed as eligible for payment under:
(A) Title XVIII of the federal Social Security Act; or
(B) the state plan for medical assistance under Title XIX of the federal Social Security
Act.
- 21 -
(b) "Durable medical equipment" includes parts used in the repair or replacement of the
equipment described in Subsection (23)(a).
(c) Notwithstanding Subsection (23)(a), "durable medical equipment" does not include
mobility enhancing equipment.
(24) "Electronic" means:
(a) relating to technology; and
(b) having:
(i) electrical capabilities;
(ii) digital capabilities;
(iii) magnetic capabilities;
(iv) wireless capabilities;
(v) optical capabilities;
(vi) electromagnetic capabilities; or
(vii) capabilities similar to Subsections (24)(b)(i) through (vi).
(25) (a) "Food and food ingredients" means substances:
(i) regardless of whether the substances are in:
(A) liquid form;
(B) concentrated form;
(C) solid form;
(D) frozen form;
(E) dried form; or
(F) dehydrated form; and
(ii) that are:
(A) sold for:
(I) ingestion by humans; or
(II) chewing by humans; and
(B) consumed for the substance's:
(I) taste; or
- 22 -
(II) nutritional value.
(b) "Food and food ingredients" does not include:
(i) an alcoholic beverage;
(ii) tobacco; or
(iii) prepared food.
[(9)] (26) (a) "Fundraising sales" means sales:
(i) (A) made by a school; or
(B) made by a school student;
(ii) that are for the purpose of raising funds for the school to purchase equipment,
materials, or provide transportation; and
(iii) that are part of an officially sanctioned school activity.
(b) For purposes of Subsection [(9)] (26)(a)(iii), "officially sanctioned school activity"
means a school activity:
(i) that is conducted in accordance with a formal policy adopted by the school or school
district governing the authorization and supervision of fundraising activities;
(ii) that does not directly or indirectly compensate an individual teacher or other
educational personnel by direct payment, commissions, or payment in kind; and
(iii) the net or gross revenues from which are deposited in a dedicated account controlled
by the school or school district.
(27) "Governing board of the agreement" means the governing board of the agreement
that is:
(a) authorized to administer the agreement; and
(b) established in accordance with the agreement.
[(10)] (28) (a) "Hearing aid" means:
(i) an instrument or device having an electronic component that is designed to:
(A) (I) improve impaired human hearing; or
(II) correct impaired human hearing; and
(B) (I) be worn in the human ear; or
- 23 -
(II) affixed behind the human ear;
(ii) an instrument or device that is surgically implanted into the cochlea; or
(iii) a telephone amplifying device.
(b) "Hearing aid" does not include:
(i) except as provided in Subsection [(10)] (28)(a)(i)(B) or [(10)] (28)(a)(ii), an
instrument or device having an electronic component that is designed to be worn on the body;
(ii) except as provided in Subsection [(10)] (28)(a)(iii), an assistive listening device or
system designed to be used by one individual, including:
(A) a personal amplifying system;
(B) a personal FM system;
(C) a television listening system; or
(D) a device or system similar to a device or system described in Subsections [(10)]
(28)(b)(ii)(A) through (C); or
(iii) an assistive listening device or system designed to be used by more than one
individual, including:
(A) a device or system installed in:
(I) an auditorium;
(II) a church;
(III) a conference room;
(IV) a synagogue; or
(V) a theater; or
(B) a device or system similar to a device or system described in Subsections [(10)]
(28)(b)(iii)(A)(I) through (V).
[(11)] (29) (a) "Hearing aid accessory" means a hearing aid:
(i) component;
(ii) attachment; or
(iii) accessory.
(b) "Hearing aid accessory" includes:
- 24 -
(i) a hearing aid neck loop;
(ii) a hearing aid cord;
(iii) a hearing aid ear mold;
(iv) hearing aid tubing;
(v) a hearing aid ear hook; or
(vi) a hearing aid remote control.
(c) "Hearing aid accessory" does not include:
(i) a component, attachment, or accessory designed to be used only with an:
(A) instrument or device described in Subsection [(10)] (28)(b)(i); or
(B) assistive listening device or system described in Subsection [(10)] (28)(b)(ii) or (iii);
or
(ii) a hearing aid battery.
[(12) (a) Except as provided in Subsection (12)(c), "home medical equipment or supplies"
means equipment or supplies that:]
[(i) a licensed physician prescribes or authorizes in writing as necessary:]
[(A) for the treatment of a medical illness or injury; or]
[(B) to mitigate an impairment resulting from illness or injury;]
[(ii) are used exclusively by the person for whom they are prescribed to serve a medical
purpose; and]
[(iii) are listed as eligible for payment under:]
[(A) Title XVIII of the federal Social Security Act; or]
[(B) the state plan for medical assistance under Title XIX of the federal Social Security
Act.]
[(b) "Home medical equipment or supplies" includes parts used in the repairs or
renovations of equipment or supplies described in Subsection (12)(a).]
[(c) Notwithstanding Subsection (12)(a), "home medical equipment or supplies" does not
include:]
[(i) equipment or supplies purchased by, for, or on behalf of any:]
- 25 -
[(A) health care facility, as defined in Subsection (12)(d); or]
[(B) one or more of the following for use in a professional practice:]
[(I) a doctor;]
[(II) a nurse; or]
[(III) another health care provider;]
[(ii) eyeglasses, contact lenses, or equipment to correct impaired vision; or]
[(iii) hearing aids or hearing aid accessories.]
[(d) For purposes of Subsection (12)(c)(i)(A), "health care facility" includes:]
[(i) a clinic;]
[(ii) a doctor's office; or]
[(iii) a health care facility as defined in Section
26-21-2
.]
[(13)] (30) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
other fuels:
(a) in mining or extraction of minerals;
(b) in agricultural operations to produce an agricultural product up to the time of harvest
or placing the agricultural product into a storage facility, including:
(i) commercial greenhouses;
(ii) irrigation pumps;
(iii) farm machinery;
(iv) implements of husbandry as defined in Subsection
41-1a-102
(23) that are not
registered under Title 41, Chapter 1a, Part 2, Registration; and
(v) other farming activities;
(c) in manufacturing tangible personal property at an establishment described in SIC
Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
Executive Office of the President, Office of Management and Budget; or
(d) by a scrap recycler if:
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
one or more of the following items into prepared grades of processed materials for use in new
- 26 -
products:
(A) iron;
(B) steel;
(C) nonferrous metal;
(D) paper;
(E) glass;
(F) plastic;
(G) textile; or
(H) rubber; and
(ii) the new products under Subsection [(13)] (30)(d)(i) would otherwise be made with
nonrecycled materials.
(31) (a) "Lease" or "rental" means a transfer of possession or control of tangible personal
property for:
(i) (A) a fixed term; or
(B) an indeterminate term; and
(ii) consideration.
(b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
amount of consideration may be increased or decreased by reference to the amount realized upon
sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue Code.
(c) "Lease" or "rental" does not include:
(i) a transfer of possession or control of property under a security agreement or deferred
payment plan that requires the transfer of title upon completion of the required payments;
(ii) a transfer of possession or control of property under an agreement:
(A) that requires the transfer of title upon completion of required payments; and
(B) in which the payment of an option price does not exceed the greater of:
(I) $100; or
(II) 1% of the total required payments; or
(iii) providing tangible personal property along with an operator for a fixed period of
- 27 -
time or an indeterminate period of time if the operator is necessary for equipment to perform as
designed.
(d) For purposes of Subsection (31)(c)(iii), an operator is necessary for equipment to
perform as designed if the operator's duties exceed the:
(i) set-up of tangible personal property;
(ii) maintenance of tangible personal property; or
(iii) inspection of tangible personal property.
(32) "Local taxing jurisdiction" means a:
(a) county that is authorized to impose an agreement sales and use tax;
(b) city that is authorized to impose an agreement sales and use tax; or
(c) town that is authorized to impose an agreement sales and use tax.
[(14)] (33) "Manufactured home" means any manufactured home or mobile home as
defined in Title 58, Chapter 56, Utah Uniform Building Standards Act.
[(15)] (34) For purposes of Subsection
59-12-104
(14), "manufacturing facility" means:
(a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
Industrial Classification Manual of the federal Executive Office of the President, Office of
Management and Budget; or
(b) a scrap recycler if:
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
one or more of the following items into prepared grades of processed materials for use in new
products:
(A) iron;
(B) steel;
(C) nonferrous metal;
(D) paper;
(E) glass;
(F) plastic;
(G) textile; or
- 28 -
(H) rubber; and
(ii) the new products under Subsection [(15)] (34)(b)(i) would otherwise be made with
nonrecycled materials.
[(16) (a) "Medicine" means:]
[(i) insulin, syringes, and any medicine prescribed for the treatment of human ailments
by a person authorized to prescribe treatments and dispensed on prescription filled by a registered
pharmacist, or supplied to patients by a physician, surgeon, or podiatric physician;]
[(ii) any medicine dispensed to patients in a county or other licensed hospital if
prescribed for that patient and dispensed by a registered pharmacist or administered under the
direction of a physician; and]
[(iii) any oxygen or stoma supplies prescribed by a physician or administered under the
direction of a physician or paramedic.]
[(b) "Medicine" does not include:]
[(i) any auditory, prosthetic, ophthalmic, or ocular device or appliance; or]
[(ii) any alcoholic beverage.]
[(17)] (35) "Mobile telecommunications service" is as defined in the Mobile
Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(36) (a) Except as provided in Subsection (36)(c), "mobility enhancing equipment"
means equipment that is:
(i) primarily and customarily used to provide or increase the ability to move from one
place to another;
(ii) appropriate for use in a:
(A) home; or
(B) motor vehicle;
(iii) not generally used by persons with normal mobility; and
(iv) listed as eligible for payment under:
(A) Title XVIII of the federal Social Security Act; or
(B) the state plan for medical assistance under Title XIX of the federal Social Security
- 29 -
Act.
(b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
the equipment described in Subsection (36)(a).
(c) Notwithstanding Subsection (36)(a), "mobility enhancing equipment" does not
include:
(i) a motor vehicle;
(ii) equipment on a motor vehicle if that equipment is normally provided by the motor
vehicle manufacturer;
(iii) durable medical equipment; or
(iv) a prosthetic device.
(37) "Model 1 seller" means a seller that has selected a certified service provider as the
seller's agent to perform all of the seller's sales tax functions for agreement sales and use taxes.
(38) "Model 2 seller" means a seller that:
(a) except as provided in Subsection (38)(b), has selected a certified automated system to
perform the seller's sales tax functions for agreement sales and use taxes; and
(b) notwithstanding Subsection (38)(a), retains responsibility for remitting all of the sales
tax:
(i) collected by the seller; and
(ii) to the appropriate local taxing jurisdiction.
(39) (a) Subject to Subsection (39)(b), "model 3 seller" means a seller that has:
(i) sales in at least five states that are members of the agreement;
(ii) total annual sales revenues of at least $500,000,000;
(iii) a proprietary system that calculates the amount of tax:
(A) for an agreement sales and use tax; and
(B) due to each local taxing jurisdiction; and
(iv) entered into a performance agreement with the governing board of the agreement.
(b) For purposes of Subsection (39)(a), "model 3 seller" includes an affiliated group of
sellers using the same proprietary system.
- 30 -
[(18)] (40) "Olympic merchandise" means tangible personal property bearing an Olympic
designation, emblem, insignia, mark, logo, service mark, symbol, terminology, trademark, or
other copyrighted or protected material, including:
(a) one or more of the following terms:
(i) "Olympic";
(ii) "Olympiad"; or
(iii) "Citius Altius Fortius";
(b) the symbol of the International Olympic Committee, consisting of five interlocking
rings;
(c) the emblem of the International Olympic Committee Corporation;
(d) a United States Olympic Committee designation, emblem, insignia, mark, logo,
service mark, symbol, terminology, trademark, or other copyrighted or protected material;
(e) any emblem of the Olympic Winter Games of 2002 that is officially designated by the
Salt Lake Organizing Committee of the Olympic Winter Games of 2002; or
(f) the mascot of the Olympic Winter Games of 2002.
[(19)] (41) (a) "Other fuels" means products that burn independently to produce heat or
energy.
(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
personal property.
[(20)] (42) "Person" includes any individual, firm, partnership, joint venture, association,
corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
municipality, district, or other local governmental entity of the state, or any group or combination
acting as a unit.
[(21) "Purchase price" means the amount paid or charged for tangible personal property
or any other taxable transaction under Subsection
59-12-103
(1), excluding only cash discounts
taken or any excise tax imposed on the purchase price by the federal government.]
(43) (a) "Prepared food" means:
(i) food:
- 31 -
(A) sold in a heated state; or
(B) heated by a seller;
(ii) two or more food ingredients mixed or combined by the seller for sale as a single
item; or
(iii) except as provided in Subsection (43)(c), food sold with an eating utensil provided
by the seller, including a:
(A) plate;
(B) knife;
(C) fork;
(D) spoon;
(E) glass;
(F) cup;
(G) napkin; or
(H) straw.
(b) "Prepared food" does not include:
(i) food that a seller only:
(A) cuts;
(B) repackages; or
(C) pasteurizes; or
(ii) (A) the following:
(I) raw egg;
(II) raw fish;
(III) raw meat;
(IV) raw poultry; or
(V) a food containing an item described in Subsections (43)(b)(ii)(A)(I) through (IV);
and
(B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
Food and Drug Administration's Food Code that a consumer cook the items described in
- 32 -
Subsection (43)(b)(ii)(A) to prevent food borne illness.
(c) Notwithstanding Subsection (43)(a)(iii), an eating utensil provided by the seller does
not include the following used to transport the food:
(i) a container; or
(ii) packaging.
(44) "Prescription" means an order, formula, or recipe that is issued:
(a) (i) orally;
(ii) in writing;
(iii) electronically; or
(iv) by any other manner of transmission; and
(b) by a licensed practitioner authorized by the laws of a state.
(45) (a) Except as provided in Subsection (45)(b)(ii) or (iii), "prewritten computer
software" means computer software that is not designed and developed:
(i) by the author or other creator of the computer software; and
(ii) to the specifications of a specific purchaser.
(b) "Prewritten computer software" includes:
(i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
software is not designed and developed:
(A) by the author or other creator of the computer software; and
(B) to the specifications of a specific purchaser;
(ii) notwithstanding Subsection (45)(a), computer software designed and developed by
the author or other creator of the computer software to the specifications of a specific purchaser if
the computer software is sold to a person other than the purchaser; or
(iii) notwithstanding Subsection (45)(a) and except as provided in Subsection (45)(c),
prewritten computer software or a prewritten portion of prewritten computer software:
(A) that is modified or enhanced to any degree; and
(B) if the modification or enhancement described in Subsection (45)(b)(iii)(A) is
designed and developed to the specifications of a specific purchaser.
- 33 -
(c) Notwithstanding Subsection (45)(b)(iii), "prewritten computer software" does not
include a modification or enhancement described in Subsection (45)(b)(iii) if the charges for the
modification or enhancement are:
(i) reasonable; and
(ii) separately stated on the invoice or other statement of price provided to the purchaser.
(46) (a) "Prosthetic device" means a device that is:
(i) worn on or in the body to:
(A) artificially replace a missing portion of the body;
(B) prevent or correct a physical deformity or physical malfunction; or
(C) support a weak or deformed portion of the body; and
(ii) listed as eligible for payment under:
(A) Title XVIII of the federal Social Security Act; or
(B) the state plan for medical assistance under Title XIX of the federal Social Security
Act.
(b) "Prosthetic device" includes:
(i) parts used in the repairs or renovation of a prosthetic device; or
(ii) replacement parts for a prosthetic device.
(c) "Prosthetic device" does not include:
(i) corrective eyeglasses;
(ii) contact lenses;
(iii) hearing aids; or
(iv) dental prostheses.
(47) (a) "Protective equipment" means an item:
(i) for human wear; and
(ii) that is:
(A) designed as protection:
(I) to the wearer against injury or disease; or
(II) against damage or injury of other persons or property; and
- 34 -
(B) not suitable for general use.
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission shall make rules:
(i) listing the items that constitute "protective equipment"; and
(ii) that are consistent with the list of items that constitute "protective equipment" under
the agreement.
(48) (a) "Purchase price" and "sales price" mean the total amount of consideration:
(i) valued in money; and
(ii) for which tangible personal property or services are:
(A) sold;
(B) leased; or
(C) rented.
(b) "Purchase price" and "sales price" include:
(i) the seller's cost of the tangible personal property or services sold;
(ii) expenses of the seller, including:
(A) the cost of materials used;
(B) a labor cost;
(C) a service cost;
(D) interest;
(E) a loss;
(F) the cost of transportation to the seller; or
(G) a tax imposed on the seller;
(iii) a charge by the seller for any service necessary to complete the sale;
(iv) a delivery charge; or
(v) an installation charge.
(c) "Purchase price" and "sales price" do not include:
(i) a discount:
(A) in a form including:
- 35 -
(I) cash;
(II) term; or
(III) coupon;
(B) that is allowed by a seller;
(C) taken by a purchaser on a sale; and
(D) that is not reimbursed by a third party; or
(ii) the following if separately stated on an invoice, bill of sale, or similar document
provided to the purchaser:
(A) the amount of a trade-in;
(B) the following from credit extended on the sale of tangible personal property or
services:
(I) interest charges;
(II) financing charges; or
(III) carrying charges; or
(C) a tax or fee legally imposed directly on the consumer.
(49) "Purchaser" means a person to whom:
(a) a sale of tangible personal property is made; or
(b) a service is furnished.
[(22)] (50) "Regularly rented" means:
(a) rented to a guest for value three or more times during a calendar year; or
(b) advertised or held out to the public as a place that is regularly rented to guests for
value.
(51) "Rental" is as defined in Subsection (31).
[(23)] (52) "Residential use" means the use in or around a home, apartment building,
sleeping quarters, and similar facilities or accommodations.
[(24) (a) "Retail sale" means any sale within the state of tangible personal property or any
other taxable transaction under Subsection
59-12-103
(1), other than resale of such property, item,
or service by a retailer or wholesaler to a user or consumer.]
- 36 -
[(b) "Retail sale" includes sales by any farmer or other agricultural producer of poultry,
eggs, or dairy products to consumers if the sales have an average monthly sales value of $125 or
more.]
[(c) "Retail sale" does not include, and no additional sales or use tax shall be assessed
against, those transactions where a purchaser of tangible personal property pays applicable sales
or use taxes on its initial nonexempt purchases of property and then enters into a sale-leaseback
transaction by which title to such property is transferred by the purchaser-lessee to a lessor for
consideration, provided:]
[(i) the transaction is intended as a form of financing for the property to the
purchaser-lessee; and]
[(ii) pursuant to generally accepted accounting principles, the purchaser-lessee is
required to capitalize the subject property for financial reporting purposes, and account for the
lease payments as payments made under a financing arrangement.]
(53) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other than:
(a) resale;
(b) sublease; or
(c) subrent.
[(25)] (54) (a) "Retailer" means any person engaged in a regularly organized [retail]
business in tangible personal property or any other taxable transaction under Subsection
59-12-103
(1), and who is selling to the user or consumer and not for resale.
(b) "Retailer" includes commission merchants, auctioneers, and any person regularly
engaged in the business of selling to users or consumers within the state.
[(c) "Retailer" does not include farmers, gardeners, stockmen, poultrymen, or other
growers or agricultural producers producing and doing business on their own premises, except
those who are regularly engaged in the business of buying or selling for a profit.]
[(d) For purposes of this chapter the commission may regard as retailers the following if
they determine it is necessary for the efficient administration of this chapter: salesmen,
representatives, peddlers, or canvassers as the agents of the dealers, distributors, supervisors, or
- 37 -
employers under whom they operate or from whom they obtain the tangible personal property
sold by them, irrespective of whether they are making sales on their own behalf or on behalf of
these dealers, distributors, supervisors, or employers, except that:]
[(i) a printer's facility with which a retailer has contracted for printing shall not be
considered to be a salesman, representative, peddler, canvasser, or agent of the retailer; and]
[(ii) the ownership of property that is located at the premises of a printer's facility with
which the retailer has contracted for printing and that consists of the final printed product,
property that becomes a part of the final printed product, or copy from which the printed product
is produced, shall not result in the retailer being deemed to have or maintain an office,
distribution house, sales house, warehouse, service enterprise, or other place of business, or to
maintain a stock of goods, within this state.]
[(26)] (55) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
otherwise, in any manner, of tangible personal property or any other taxable transaction under
Subsection
59-12-103
(1), for consideration. [It]
(b) "Sale" includes:
[(a)] (i) installment and credit sales;
[(b)] (ii) any closed transaction constituting a sale;
[(c)] (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
chapter;
[(d)] (iv) any transaction if the possession of property is transferred but the seller retains
the title as security for the payment of the price; and
[(e)] (v) any transaction under which right to possession, operation, or use of any article
of tangible personal property is granted under a lease or contract and the transfer of possession
would be taxable if an outright sale were made.
(56) "Sale at retail" is as defined in Subsection (53).
(57) "Sale-leaseback transaction" means a transaction by which title to tangible personal
property that is subject to a tax under this chapter is transferred:
(a) by a purchaser-lessee;
- 38 -
(b) to a lessor;
(c) for consideration; and
(d) if:
(i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase of
the tangible personal property;
(ii) the sale of the tangible personal property to the lessor is intended as a form of
financing:
(A) for the property; and
(B) to the purchaser-lessee; and
(iii) in accordance with generally accepted accounting principles, the purchaser-lessee is
required to:
(A) capitalize the property for financial reporting purposes; and
(B) account for the lease payments as payments made under a financing arrangement.
(58) "Sales price" is as defined in Subsection (48).
[(27)] (59) (a) "Sales relating to schools" means the following sales by, amounts paid to,
or amounts charged by a school:
(i) sales that are directly related to the school's educational functions or activities
including:
(A) the sale of:
(I) textbooks;
(II) textbook fees;
(III) laboratory fees;
(IV) laboratory supplies; or
(V) safety equipment;
(B) the sale of [clothing] a uniform, protective equipment, or sports or recreational
equipment that:
(I) a student is specifically required to wear as a condition of participation in a
school-related event or school-related activity; and
- 39 -
(II) is not readily adaptable to general or continued usage to the extent that it takes the
place of ordinary clothing;
(C) sales of [food] the following if the net or gross revenues generated by the [food] sales
are deposited into a school district fund or school fund dedicated to school meals[; or]:
(I) food and food ingredients; or
(II) prepared food; or
(D) transportation charges for official school activities; or
(ii) amounts paid to or amounts charged by a school for admission to a school-related
event or school-related activity.
(b) "Sales relating to schools" does not include:
(i) bookstore sales of items that are not educational materials or supplies;
(ii) except as provided in Subsection [(27)] (59)(a)(i)(B)[, clothing; or]:
(A) clothing;
(B) clothing accessories or equipment;
(C) protective equipment; or
(D) sports or recreational equipment; or
(iii) amounts paid to or amounts charged by a school for admission to a school-related
event or school-related activity if the amounts paid or charged are passed through to a person:
(A) other than a:
(I) school;
(II) nonprofit organization authorized by a school board or a governing body of a private
school to organize and direct a competitive secondary school activity; or
(III) nonprofit association authorized by a school board or a governing body of a private
school to organize and direct a competitive secondary school activity; and
(B) that is required to collect sales and use taxes under this chapter.
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission may make rules defining the term "passed through."
[(28)] (60) For purposes of this section and Section
59-12-104
, "school" means:
- 40 -
(a) an elementary school or a secondary school that:
(i) is a:
(A) public school; or
(B) private school; and
(ii) provides instruction for one or more grades kindergarten through 12; or
(b) a public school district.
(61) "Seller" means a person that makes a sale, lease, or rental of:
(a) tangible personal property; or
(b) a service.
[(29)] (62) (a) "Semiconductor fabricating or processing materials" means tangible
personal property:
(i) used primarily in the process of:
(A) (I) manufacturing a semiconductor; or
(II) fabricating a semiconductor; or
(B) maintaining an environment suitable for a semiconductor; or
(ii) consumed primarily in the process of:
(A) (I) manufacturing a semiconductor; or
(II) fabricating a semiconductor; or
(B) maintaining an environment suitable for a semiconductor.
(b) "Semiconductor fabricating or processing materials" includes:
(i) parts used in the repairs or renovations of tangible personal property described in
Subsection [(29)] (62)(a); or
(ii) a chemical, catalyst, or other material used to:
(A) produce or induce in a semiconductor a:
(I) chemical change; or
(II) physical change;
(B) remove impurities from a semiconductor; or
(C) improve the marketable condition of a semiconductor.
- 41 -
[(30)] (63) "Senior citizen center" means a facility having the primary purpose of
providing services to the aged as defined in Section
62A-3-101
.
(64) (a) "Sports or recreational equipment" means an item:
(i) designed for human use; and
(ii) that is:
(A) worn in conjunction with:
(I) an athletic activity; or
(II) a recreational activity; and
(B) not suitable for general use.
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission shall make rules:
(i) listing the items that constitute "sports or recreational equipment"; and
(ii) that are consistent with the list of items that constitute "sports or recreational
equipment" under the agreement.
[(31)] (65) "State" means the state of Utah, its departments, and agencies.
[(32)] (66) "Storage" means any keeping or retention of tangible personal property or any
other taxable transaction under Subsection
59-12-103
(1), in this state for any purpose except sale
in the regular course of business.
[(33)] (67) (a) "Tangible personal property" means[:] personal property that:
(i) may be:
(A) seen;
(B) weighed;
(C) measured;
(D) felt; or
(E) touched; or
(ii) is in any manner perceptible to the senses.
(b) "Tangible personal property" includes:
(i) electricity;
- 42 -
(ii) water;
(iii) gas;
(iv) steam; or
(v) prewritten computer software.
[(i) all goods, wares, merchandise, produce, and commodities;]
[(ii) all tangible or corporeal things and substances which are dealt in or capable of being
possessed or exchanged;]
[(iii) water in bottles, tanks, or other containers; and]
[(iv) all other physically existing articles or things, including property severed from real
estate.]
[(b) "Tangible personal property" does not include:]
[(i) real estate or any interest or improvements in real estate;]
[(ii) bank accounts, stocks, bonds, mortgages, notes, and other evidence of debt;]
[(iii) insurance certificates or policies;]
[(iv) personal or governmental licenses;]
[(v) water in pipes, conduits, ditches, or reservoirs;]
[(vi) currency and coinage constituting legal tender of the United States or of a foreign
nation; and]
[(vii) all gold, silver, or platinum ingots, bars, medallions, or decorative coins, not
constituting legal tender of any nation, with a gold, silver, or platinum content of not less than
80%.]
[(34)] (68) (a) For purposes of Subsection [(35)] (69) and Section
59-12-103
, "telephone
service" means a two-way transmission:
(i) by:
(A) wire;
(B) radio;
(C) lightwave; or
(D) other electromagnetic means; and
- 43 -
(ii) of one or more of the following:
(A) a sign;
(B) a signal;
(C) writing;
(D) an image;
(E) sound;
(F) a message;
(G) data; or
(H) other information of any nature.
(b) "Telephone service" includes:
(i) [cellular telephone] mobile telecommunications service;
(ii) private communications service; or
(iii) automated digital telephone answering service.
(c) "Telephone service" does not include a service or a transaction that a state or a
political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet Tax
Freedom Act, Pub. L. No. 105-277.
[(35)] (69) (a) "Telephone service provider" means a person that:
(i) owns, controls, operates, or manages a telephone service; and
(ii) engages in an activity described in Subsection [(35)] (69)(a)(i) for the shared use with
or resale to any person of the telephone service.
(b) A person described in Subsection [(35)] (69)(a) is a telephone service provider
whether or not the Public Service Commission of Utah regulates:
(i) that person; or
(ii) the telephone service that the person owns, controls, operates, or manages.
(70) "Tobacco" means:
(a) a cigarette;
(b) a cigar;
(c) chewing tobacco;
- 44 -
(d) pipe tobacco; or
(e) any other item that contains tobacco.
[(36)] (71) (a) "Use" means the exercise of any right or power over tangible personal
property under Subsection
59-12-103
(1), incident to the ownership or the leasing of that
property, item, or service.
(b) "Use" does not include the sale, display, demonstration, or trial of that property in the
regular course of business and held for resale.
[(37)] (72) "Vehicle" means any aircraft, as defined in Section
72-10-102
; any vehicle, as
defined in Section
41-1a-102
; any off-highway vehicle, as defined in Section
41-22-2
; and any
vessel, as defined in Section
41-1a-102
; that is required to be titled, registered, or both.
"Vehicle," for purposes of Subsection
59-12-104
[(36)] (35) only, also includes any locomotive,
freight car, railroad work equipment, or other railroad rolling stock.
[(38)] (73) "Vehicle dealer" means a person engaged in the business of buying, selling, or
exchanging vehicles as defined in Subsection [(37)] (72).
[(39) (a) "Vendor" means any person receiving any payment or consideration upon a sale
of tangible personal property or any other taxable transaction under Subsection
59-12-103
(1), or
to whom the payment or consideration is payable.]
[(b) "Vendor" does not mean a printer's facility described in Subsection (25)(d).]
Section 8.
Section
59-12-102.1
is enacted to read:
59-12-102.1. Authority to enter into agreement -- Purpose and scope of agreement
-- Rulemaking authority -- Agreement may require a state that is a member of the
agreement to abide by certain requirements.
(1) The commission may:
(a) enter into the agreement described in Subsection (2) with one or more states to:
(i) simplify and modernize agreement sales and use tax administration in order to
substantially reduce the burden of sales and use tax compliance for all sellers and for all types of
commerce;
(ii) establish standards for certification of a:
- 45 -
(A) certified service provider; and
(B) certified automated system; and
(iii) act jointly with other states that are members of the agreement to establish
performance standards for multistate sellers ; and
(b) take other actions reasonably required to implement the provisions of the agreement:
(i) if those actions are not in conflict with statute; and
(ii) subject to Subsection (1)(b)(i), including:
(A) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
adopting administrative rules; and
(B) in furtherance of the agreement, jointly procuring goods or services with other states
that are members of the agreement.
(2) The agreement the commission may enter into under Subsection (1), may require
each state that is a member of the agreement to abide by the following requirements:
(a) establish restrictions to achieve over time more uniform state sales and use tax rates
by:
(i) limiting the number of sales and use tax rates within the state;
(ii) limiting the application of maximums on the amount of sales and use tax that is due
on a transaction; and
(iii) limiting the application of thresholds on the application of sales and use taxes;
(b) establish uniform standards for:
(i) the sourcing of transactions to local taxing jurisdictions;
(ii) the administration of exempt sales;
(iii) the allowance a seller may take for bad debts; and
(iv) agreement sales and use tax:
(A) returns; and
(B) remittances;
(c) develop and adopt uniform definitions:
(i) of sales and use tax terms; and
- 46 -
(ii) that enable each state to preserve the state's ability to make policy choices consistent
with the uniform definitions;
(d) provide a central, electronic registration system that allows a seller to register to
collect and remit agreement sales and use tax for all states that are members of the agreement;
(e) require that the following may not be used as a factor in determining whether a seller
has sufficient contacts with a state to be required to collect a sales or use tax:
(i) registration with a central registration system; or
(ii) the collection of sales or use taxes in the states that are members of the agreement;
(f) reduce the burdens of collecting and remitting local sales and use taxes by:
(i) restricting variances between transactions that are subject to state sales and use tax
and transactions that are subject to local sales and use taxes;
(ii) requiring states to administer any agreement sales and use tax imposed by a local
taxing jurisdiction within the state so that a seller that collects or remits the agreement sales and
use tax will not have to:
(A) register with the local taxing jurisdiction;
(B) file a return with the local taxing jurisdiction;
(C) remit funds to the local taxing jurisdiction; or
(D) be subject to an independent audit by a local taxing jurisdiction;
(iii) restricting the frequency of changes in sales and use tax rates for an agreement sales
and use tax imposed by a local taxing jurisdiction;
(iv) establishing effective dates for the application of a change in a local taxing
jurisdiction boundary to an agreement sales and use tax imposed by the local taxing jurisdiction;
and
(v) providing notice of a change in:
(A) a sales and use tax rate for an agreement sales and use tax imposed by a local taxing
jurisdiction; and
(B) a boundary of a local taxing jurisdiction;
(g) provide a monetary allowance to a seller or certified service provider;
- 47 -
(h) (i) certify compliance with the terms of the agreement prior to entering into the
agreement; and
(ii) maintain compliance with all of the provisions of the agreement:
(A) during the time period that the state is a member of the agreement; and
(B) under the laws of the state entering into the agreement;
(i) adopt a uniform policy for certified service providers that:
(i) protects the privacy of consumers; and
(ii) maintains the confidentiality of tax information;
(j) appoint the following advisory councils:
(i) a council consisting of private sector representatives to consult with in the
administration of the agreement; and
(ii) a council consisting of state government representatives to consult with in the
administration of the agreement;
(k) (i) require that a certified service provider is the agent of a seller with whom the
certified service provider has contracted for the collection and remittance of agreement sales and
use tax; and
(ii) except as provided in Subsection (2)(l), require that the certified service provider that
is the seller's agent is liable for agreement sales and use tax due:
(A) to each state that is a member of the agreement; and
(B) on all agreement sales and use tax transactions that the certified service provider
processes for the seller;
(l) notwithstanding Subsection (2)(k), require that:
(i) a seller that contracts with a certified service provider is not liable to the state for
agreement sales and use tax due on a transaction processed by the certified service provider or
subject to audit on a transaction processed by the certified service provider unless the seller:
(A) misrepresented the type of items the seller sells; or
(B) committed fraud;
(ii) a seller is subject to audit for transactions not processed by the certified service
- 48 -
provider; and
(iii) the states that are members of the agreement acting jointly may perform a system
check of a seller or review a seller's procedures to determine:
(A) if a certified service provider's system is functioning properly; or
(B) the extent to which a seller's transactions are being processed by a certified service
provider;
(m) require that:
(i) a person that provides a certified automated system is:
(A) responsible for the proper functioning of that certified automated system; and
(B) liable to the state for underpayments of agreement sales and use tax attributable to
errors in the functioning of the certified automated system; and
(ii) a seller that uses a certified automated system remains responsible for and is liable to
the state for reporting, collecting, and remitting agreement sales and use tax; and
(n) require that a seller that has a proprietary system for determining the amount of
agreement sales and use tax due on a transaction and has signed an agreement with the
commission establishing a performance standard for that proprietary system is liable for the
failure of the proprietary system to meet the performance standard.
(3) The agreement described in this section:
(a) is an accord among individual cooperating sovereigns in furtherance of the
cooperating sovereigns' governmental functions; and
(b) provides a mechanism among the states that are members of the agreement to
establish and maintain a cooperative, simplified system for the application and administration of
sales and use tax under laws adopted by each state that is a member of the agreement.
(4) (a) The agreement described in this section may bind and inure only to the benefit of
this state and other states that are members of the agreement.
(b) A person, other than a state that is a member of the agreement, is not an intended
beneficiary of the agreement.
(c) Any benefit of the agreement to a person other than a state is established by the law of
- 49 -
this state and the laws of other states that are members of the agreement and not by the terms of
the agreement.
(5) (a) Subject to Subsection (4), a person may not have a cause of action or defense:
(i) under the agreement; or
(ii) as a result of this state's approval of the agreement.
(b) A person may not challenge, in any action brought under any provision of law, an
action or inaction:
(i) by:
(A) a department;
(B) an agency;
(C) a commission;
(D) an entity of the state other than an entity described in Subsections (5)(b)(i)(A)
through (C); or
(E) a political subdivision of the state; and
(ii) on the ground that the action or inaction is inconsistent with the agreement.
(c) A law of this state, or the application of a law of this state, may not be declared
invalid as to any person or circumstance on the ground that the law or application is inconsistent
with the agreement.
Section 9.
Section
59-12-103
is amended to read:
59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
tax revenues.
(1) A tax is imposed on the purchaser as provided in this part for amounts paid or
charged for the following transactions:
(a) retail sales of tangible personal property made within the state;
(b) amounts paid:
(i) (A) to a common carrier; or
(B) whether the following are municipally or privately owned, to a:
(I) telephone service provider; or
- 50 -
(II) telegraph corporation as defined in Section
54-2-1
; and
(ii) for:
(A) all transportation;
(B) telephone service, other than mobile telecommunications service, that originates and
terminates within the boundaries of this state;
(C) mobile telecommunications service that originates and terminates within the
boundaries of one state only to the extent permitted by the Mobile Telecommunications Sourcing
Act, 4 U.S.C. Sec. 116 et seq.; or
(D) telegraph service;
(c) sales of the following for commercial use:
(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(d) sales of the following for residential use:
(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(e) sales of [meals] prepared food;
(f) except as provided in Section
59-12-104
, amounts paid or charged as admission or
user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries, fairs,
races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
- 51 -
television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis
courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises, horseback
rides, sports activities, or any other amusement, entertainment, recreation, exhibition, cultural, or
athletic activity;
(g) amounts paid or charged for services:
(i) for repairs or renovations of tangible personal property, unless Section
59-12-104
provides for an exemption from sales and use tax for:
(A) the tangible personal property; and
(B) parts used in the repairs or renovations of the tangible personal property described in
Subsection (1)(g)(i)(A), whether or not any parts are actually used in the repairs or renovations of
that tangible personal property; or
(ii) to install tangible personal property in connection with other tangible personal
property, unless the tangible personal property being installed is exempt from sales and use tax
under Section
59-12-104
;
(h) except as provided in Subsection
59-12-104
(7), amounts paid or charged for cleaning
or washing of tangible personal property;
(i) amounts paid or charged for tourist home, hotel, motel, or trailer court
accommodations and services that are regularly rented for less than 30 consecutive days;
(j) amounts paid or charged for laundry or dry cleaning services;
(k) amounts paid or charged for leases or rentals of tangible personal property if:
(i) the tangible personal property's situs is in this state;
(ii) the lessee took possession of the tangible personal property in this state; or
(iii) within this state the tangible personal property is:
(A) stored;
(B) used; or
(C) otherwise consumed;
(l) amounts paid or charged for tangible personal property if within this state the tangible
- 52 -
personal property is:
(i) stored;
(ii) used; or
(iii) consumed; and
(m) amounts paid or charged for prepaid telephone calling cards.
(2) (a) Except as provided in [Subsections] Subsection (2)(b) [and (c)], beginning on July
1, 2001, a state tax and a local tax is imposed on a transaction described in Subsection (1) equal
to the sum of:
(i) a state tax imposed on the transaction at a rate of 4.75%; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(b) Notwithstanding Subsection (2)(a), beginning on July 1, 2001, a state tax and a local
tax is imposed on a transaction described in Subsection (1)(d) equal to the sum of:
(i) a state tax imposed on the transaction at a rate of 2%; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
[(c) Notwithstanding Subsections (2)(a) and (b), beginning on July 1, 2001, if a vendor
collects a tax under Subsection
59-12-107
(1)(b) on a transaction described in Subsection (1), a
state tax and a local tax is imposed on the transaction equal to the sum of:]
[(i) a state tax imposed on the transaction at a rate of:]
[(A) 4.75% for a transaction other than a transaction described in Subsection (1)(d); or]
[(B) 2% for a transaction described in Subsection (1)(d); and]
[(ii) except as provided in Subsection (2)(d), a local tax imposed on the transaction at a
rate equal to the sum of the following tax rates:]
[(A) (I) the lowest tax rate imposed by a county, city, or town under Section
59-12-204
,
but only if all of the counties, cities, and towns in the state impose the tax under Section
59-12-204
; or]
[(II) the lowest tax rate imposed by a county, city, or town under Section
59-12-205
, but
- 53 -
only if all of the counties, cities, and towns in the state impose the tax under Section
59-12-205
;
and]
[(B) the tax rate authorized by Section
59-12-1102
, but only if all of the counties in the
state impose the tax under Section
59-12-1102
.]
[(d) Tax rates authorized under the following do not apply to Subsection (2)(c)(ii):]
[(i) Subsection (2)(a)(i);]
[(ii) Subsection (2)(b)(i);]
[(iii) Subsection (2)(c)(i);]
[(iv) Section
59-12-301
;]
[(v) Section
59-12-352
;]
[(vi) Section
59-12-353
;]
[(vii) Section
59-12-401
;]
[(viii) Section
59-12-402
;]
[(ix) Section
59-12-501
;]
[(x) Section
59-12-502
;]
[(xi) Section
59-12-603
;]
[(xii) Section
59-12-703
;]
[(xiii) Section
59-12-802
;]
[(xiv) Section
59-12-804
;]
[(xv) Section
59-12-1001
;]
[(xvi) Section
59-12-1201
; or]
[(xvii) Section
59-12-1302
.]
(c) Subject to Subsections (2)(d) and (e), a tax rate change for a tax rate imposed under
the following shall take effect on the first day of a calendar quarter:
(i) Subsection (2)(a)(i); or
(ii) Subsection (2)(b)(i).
(d) (i) For a transaction described in Subsection (2)(d)(iii), a tax rate increase shall take
effect on the first day of the first billing period:
- 54 -
(A) that begins after the effective date of the tax rate increase; and
(B) if the billing period for the transaction begins before the effective date of a tax rate
increase imposed under:
(I) Subsection (2)(a)(i); or
(II) Subsection (2)(b)(i).
(ii) For a transaction described in Subsection (2)(d)(iii), a tax rate decrease shall take
effect on the first day of the last billing period:
(A) that began before the effective date of the tax rate decrease; and
(B) if the billing period for the transaction begins before the effective date of a tax rate
decrease imposed under:
(I) Subsection (2)(a)(i); or
(II) Subsection (2)(b)(i).
(iii) Subsections (2)(d)(i) and (ii) apply to transactions subject to a tax under:
(A) Subsection (1)(b);
(B) Subsection (1)(c);
(C) Subsection (1)(d);
(D) Subsection (1)(e);
(E) Subsection (1)(f);
(F) Subsection (1)(g);
(G) Subsection (1)(h);
(H) Subsection (1)(i);
(I) Subsection (1)(j); or
(J) Subsection (1)(k).
(e) (i) If a tax due under Subsection (2)(a)(i) on a catalogue sale is computed on the basis
of sales and use tax rates published in the catalogue, a change in a tax rate imposed under
Subsection (2)(a)(i) takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the tax rate change under Subsection
- 55 -
(2)(a)(i).
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commission may by rule define the term "catalogue sale."
(3) (a) Except as provided in Subsections (4) through (7) and (9), the following state
taxes shall be deposited into the General Fund:
(i) the tax imposed by Subsection (2)(a)(i); or
(ii) the tax imposed by Subsection (2)(b)(i)[; and].
[(iii) the tax imposed by Subsection (2)(c)(i).]
(b) The local taxes described in Subsections (2)(a)(ii) and (2)(b)(ii) shall be distributed to
a county, city, or town as provided in this chapter.
[(c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the
state shall receive the county's, city's, or town's proportionate share of the revenues generated by
the local tax described in Subsection (2)(c)(ii) as provided in Subsection (3)(c)(ii).]
[(ii) The commission shall determine a county's, city's, or town's proportionate share of
the revenues under Subsection (3)(c)(i) by:]
[(A) calculating an amount equal to:]
[(I) the population of the county, city, or town; divided by]
[(II) the total population of the state; and]
[(B) multiplying the amount determined under Subsection (3)(c)(ii)(A) by the total
amount of revenues generated by the local tax under Subsection (2)(c)(ii) for all counties, cities,
and towns.]
[(i