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H.B. 3004 Enrolled
1
SALES AND USE TAX RELATING TO FOOD
2
2006 THIRD SPECIAL SESSION
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STATE OF UTAH
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Chief Sponsor: Ben C. Ferry
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Senate Sponsor:
Lyle W. Hillyard
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LONG TITLE
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General Description:
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This bill modifies the Sales and Use Tax Act relating to food.
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Highlighted Provisions:
11
This bill:
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. modifies the definitions of:
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. "bundled transaction";
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. "food and food ingredients"; and
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. "prepared food";
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. repeals provisions relating to the taxation of a transaction involving the sale of food
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and food ingredients at the same location;
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. modifies an effective date relating to an appropriation to the State Tax Commission
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for distribution to certain sellers to reimburse some of their costs in complying with
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the reduced sales and use tax rate imposed on food and food ingredients;
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. modifies provisions relating to that appropriation; and
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. makes technical changes.
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Monies Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides an effective date.
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Utah Code Sections Affected:
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AMENDS:
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59-12-102 (Effective 01/01/07), as last amended by Chapters 181, 182, 218, 219, 220,
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231, 268, 282 and 346, Laws of Utah 2006
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59-12-103 (Effective 01/01/07), as last amended by Chapters 11, 135, 181, 182, 253
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and 282, Laws of Utah 2006
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Uncodified Material Affected:
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AMENDS UNCODIFIED MATERIAL:
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Uncodified Section 5, Chapter 282, Laws of Utah 2006
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Uncodified Section 6, Chapter 282, Laws of Utah 2006
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
59-12-102 (Effective 01/01/07)
is amended to read:
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59-12-102 (Effective 01/01/07). 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) "Agreement" means the Streamlined Sales and Use Tax Agreement described in
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Section
59-12-102.1
.
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(3) "Agreement combined tax rate" means the sum of the tax rates:
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(a) listed under Subsection (4); and
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(b) that are imposed within a local taxing jurisdiction.
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(4) "Agreement sales and use tax" means a tax imposed under:
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(a) Subsection
59-12-103
(2)(a)(i) or (2)(b)(iii)(A);
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(b) Section
59-12-204
;
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(c) Section
59-12-401
;
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(d) Section
59-12-402
;
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(e) Section
59-12-501
;
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(f) Section
59-12-502
;
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(g) Section
59-12-703
;
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(h) Section
59-12-802
;
59
(i) Section
59-12-804
;
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(j) Section
59-12-1001
;
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(k) Section
59-12-1102
;
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(l) Section
59-12-1302
;
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(m) Section
59-12-1402
; or
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(n) Section
59-12-1503
.
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(5) "Aircraft" is as defined in Section
72-10-102
.
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(6) "Alcoholic beverage" means a beverage that:
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(a) is suitable for human consumption; and
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(b) contains .5% or more alcohol by volume.
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(7) "Area agency on aging" is as defined in Section
62A-3-101
.
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(8) "Assisted amusement device" means an amusement device, skill device, or ride
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device that is started and stopped by an individual:
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(a) who is not the purchaser or renter of the right to use or operate the amusement
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device, skill device, or ride device; and
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(b) at the direction of the seller of the right to use the amusement device, skill device,
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or ride device.
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(9) "Assisted cleaning or washing of tangible personal property" means cleaning or
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washing of tangible personal property if the cleaning or washing labor is primarily performed
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by an individual:
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(a) who is not the purchaser of the cleaning or washing of the tangible personal
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property; and
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(b) at the direction of the seller of the cleaning or washing of the tangible personal
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property.
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(10) "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 and the International Fuel Tax Agreement;
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(b) in the case of aircraft, the holder of a Federal Aviation Administration 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
90
stock, the holder of a certificate issued by the United States Surface Transportation Board.
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(11) (a) Except as provided in Subsection (11)(b), "biomass energy" means any of the
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following that is used as the primary source of energy to produce fuel or electricity:
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(i) material from a plant or tree; or
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(ii) other organic matter that is available on a renewable basis, including:
95
(A) slash and brush from forests and woodlands;
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(B) animal waste;
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(C) methane produced:
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(I) at landfills; or
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(II) as a byproduct of the treatment of wastewater residuals;
100
(D) aquatic plants; and
101
(E) agricultural products.
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(b) "Biomass energy" does not include:
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(i) black liquor;
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(ii) treated woods; or
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(iii) biomass from municipal solid waste other than methane produced:
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(A) at landfills; or
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(B) as a byproduct of the treatment of wastewater residuals.
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(12) (a) "Bundled transaction" means the sale of two or more items of tangible personal
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property if:
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(i) one or more of the items of tangible personal property is food and food ingredients;
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and
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(ii) the items of tangible personal property are:
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(A) distinct and identifiable; and
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(B) sold for one price that is not itemized[; and].
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[(C) not prepared food.]
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(b) "Bundled transaction" does not include the sale of tangible personal property if the
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sales price varies, or is negotiable, on the basis of the selection by the purchaser of the items of
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tangible personal property included in the transaction.
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(c) For purposes of Subsection (12)(a)(ii)(A), tangible personal property that is distinct
120
and identifiable does not include:
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(i) packaging that:
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(A) accompanies the sale of the tangible personal property; and
123
(B) is incidental or immaterial to the sale of the tangible personal property;
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(ii) tangible personal property provided free of charge with the purchase of another
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item of tangible personal property; or
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(iii) an item of tangible personal property included in the definition of "purchase
127
price."
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(d) For purposes of Subsection (12)(c)(ii), an item of tangible personal property is
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provided free of charge with the purchase of another item of tangible personal property if the
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sales price of the purchased item of tangible personal property does not vary depending on the
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inclusion of the tangible personal property provided free of charge.
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(13) "Certified automated system" means software certified by the governing board of
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the agreement in accordance with Section
59-12-102.1
that:
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(a) calculates the agreement sales and use tax imposed within a local taxing
135
jurisdiction:
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(i) on a transaction; and
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(ii) in the states that are members of the agreement;
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(b) determines the amount of agreement sales and use tax to remit to a state that is a
139
member of the agreement; and
140
(c) maintains a record of the transaction described in Subsection (13)(a)(i).
141
(14) "Certified service provider" means an agent certified:
142
(a) by the governing board of the agreement in accordance with Section
59-12-102.1
;
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and
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(b) to perform all of a seller's sales and use tax functions for an agreement sales and
145
use tax other than the seller's obligation under Section
59-12-107.4
to remit a tax on the seller's
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own purchases.
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(15) (a) Subject to Subsection (15)(b), "clothing" means all human wearing apparel
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suitable for general use.
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(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
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commission shall make rules:
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(i) listing the items that constitute "clothing"; and
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(ii) that are consistent with the list of items that constitute "clothing" under the
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agreement.
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(16) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
155
(17) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
156
fuels that does not constitute industrial use under Subsection (38) or residential use under
157
Subsection (75).
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(18) (a) "Common carrier" means a person engaged in or transacting the business of
159
transporting passengers, freight, merchandise, or other property for hire within this state.
160
(b) (i) "Common carrier" does not include a person who, at the time the person is
161
traveling to or from that person's place of employment, transports a passenger to or from the
162
passenger's place of employment.
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(ii) For purposes of Subsection (18)(b)(i), in accordance with Title 63, Chapter 46a,
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Utah Administrative Rulemaking Act, the commission may make rules defining what
165
constitutes a person's place of employment.
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(19) "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
170
greenhouses doing a majority of their business in wholesale sales, and for providing power for
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off-highway type farm machinery; and
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(d) feed, seeds, and seedlings.
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(20) "Computer" means an electronic device that accepts information:
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(a) (i) in digital form; or
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(ii) in a form similar to digital form; and
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(b) manipulates that information for a result based on a sequence of instructions.
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(21) "Computer software" means a set of coded instructions designed to cause:
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(a) a computer to perform a task; or
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(b) automatic data processing equipment to perform a task.
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(22) "Construction materials" means any tangible personal property that will be
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converted into real property.
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(23) "Delivered electronically" means delivered to a purchaser by means other than
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tangible storage media.
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(24) (a) "Delivery charge" means a charge:
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(i) by a seller of:
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(A) tangible personal property; or
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(B) services; and
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(ii) for preparation and delivery of the tangible personal property or services described
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in Subsection (24)(a)(i) to a location designated by the purchaser.
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(b) "Delivery charge" includes a charge for the following:
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(i) transportation;
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(ii) shipping;
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(iii) postage;
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(iv) handling;
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(v) crating; or
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(vi) packing.
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(25) "Dietary supplement" means a product, other than tobacco, that:
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(a) is intended to supplement the diet;
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(b) contains one or more of the following dietary ingredients:
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(i) a vitamin;
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(ii) a mineral;
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(iii) an herb or other botanical;
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(iv) an amino acid;
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(v) a dietary substance for use by humans to supplement the diet by increasing the total
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dietary intake; or
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(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
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described in Subsections (25)(b)(i) through (v);
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(c) (i) except as provided in Subsection (25)(c)(ii), is intended for ingestion in:
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(A) tablet form;
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(B) capsule form;
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(C) powder form;
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(D) softgel form;
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(E) gelcap form; or
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(F) liquid form; or
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(ii) notwithstanding Subsection (25)(c)(i), if the product is not intended for ingestion in
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a form described in Subsections (25)(c)(i)(A) through (F), is not represented:
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(A) as conventional food; and
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(B) for use as a sole item of:
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(I) a meal; or
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(II) the diet; and
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(d) is required to be labeled as a dietary supplement:
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(i) identifiable by the "Supplemental Facts" box found on the label; and
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(ii) as required by 21 C.F.R. Sec. 101.36.
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(26) (a) "Direct mail" means printed material delivered or distributed by United States
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mail or other delivery service:
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(i) to:
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(A) a mass audience; or
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(B) addressees on a mailing list provided by a purchaser of the mailing list; and
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(ii) if the cost of the printed material is not billed directly to the recipients.
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(b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
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purchaser to a seller of direct mail for inclusion in a package containing the printed material.
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(c) "Direct mail" does not include multiple items of printed material delivered to a
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single address.
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(27) (a) "Drug" means a compound, substance, or preparation, or a component of a
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compound, substance, or preparation that is:
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(i) recognized in:
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(A) the official United States Pharmacopoeia;
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(B) the official Homeopathic Pharmacopoeia of the United States;
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(C) the official National Formulary; or
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(D) a supplement to a publication listed in Subsections (27)(a)(i)(A) through (C);
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(ii) intended for use in the:
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(A) diagnosis of disease;
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(B) cure of disease;
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(C) mitigation of disease;
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(D) treatment of disease; or
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(E) prevention of disease; or
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(iii) intended to affect:
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(A) the structure of the body; or
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(B) any function of the body.
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(b) "Drug" does not include:
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(i) food and food ingredients;
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(ii) a dietary supplement;
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(iii) an alcoholic beverage; or
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(iv) a prosthetic device.
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(28) (a) Except as provided in Subsection (28)(c), "durable medical equipment" means
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equipment that:
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(i) can withstand repeated use;
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(ii) is primarily and customarily used to serve a medical purpose;
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(iii) generally is not useful to a person in the absence of illness or injury; and
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(iv) is not worn in or on the body.
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(b) "Durable medical equipment" includes parts used in the repair or replacement of the
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equipment described in Subsection (28)(a).
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(c) Notwithstanding Subsection (28)(a), "durable medical equipment" does not include
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mobility enhancing equipment.
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(29) "Electronic" means:
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(a) relating to technology; and
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(b) having:
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(i) electrical capabilities;
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(ii) digital capabilities;
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(iii) magnetic capabilities;
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(iv) wireless capabilities;
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(v) optical capabilities;
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(vi) electromagnetic capabilities; or
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(vii) capabilities similar to Subsections (29)(b)(i) through (vi).
275
(30) "Employee" is as defined in Section
59-10-401
.
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(31) (a) "Food and food ingredients" means substances:
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(i) regardless of whether the substances are in:
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(A) liquid form;
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(B) concentrated form;
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(C) solid form;
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(D) frozen form;
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(E) dried form; or
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(F) dehydrated form; and
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(ii) that are:
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(A) sold for:
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(I) ingestion by humans; or
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(II) chewing by humans; and
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(B) consumed for the substance's:
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(I) taste; or
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(II) nutritional value.
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(b) "Food and food ingredients" includes an item described in Subsection (62)(b)(iii).
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[(b)] (c) "Food and food ingredients" does not include:
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(i) an alcoholic beverage;
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(ii) tobacco; or
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(iii) prepared food.
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(32) (a) "Fundraising sales" means sales:
297
(i) (A) made by a school; or
298
(B) made by a school student;
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(ii) that are for the purpose of raising funds for the school to purchase equipment,
300
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 (32)(a)(iii), "officially sanctioned school activity"
303
means a school activity:
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(i) that is conducted in accordance with a formal policy adopted by the school or school
305
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
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controlled by the school or school district.
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(33) "Geothermal energy" means energy contained in heat that continuously flows
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outward from the earth that is used as the sole source of energy to produce electricity.
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(34) "Governing board of the agreement" means the governing board of the agreement
313
that is:
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(a) authorized to administer the agreement; and
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(b) established in accordance with the agreement.
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(35) (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;
322
(ii) an instrument or device that is surgically implanted into the cochlea; or
323
(iii) a telephone amplifying device.
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(b) "Hearing aid" does not include:
325
(i) except as provided in Subsection (35)(a)(i)(B) or (35)(a)(ii), an instrument or device
326
having an electronic component that is designed to be worn on the body;
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(ii) except as provided in Subsection (35)(a)(iii), an assistive listening device or system
328
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;
331
(C) a television listening system; or
332
(D) a device or system similar to a device or system described in Subsections
333
(35)(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
335
individual, including:
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(A) a device or system installed in:
337
(I) an auditorium;
338
(II) a church;
339
(III) a conference room;
340
(IV) a synagogue; or
341
(V) a theater; or
342
(B) a device or system similar to a device or system described in Subsections
343
(35)(b)(iii)(A)(I) through (V).
344
(36) (a) "Hearing aid accessory" means a hearing aid:
345
(i) component;
346
(ii) attachment; or
347
(iii) accessory.
348
(b) "Hearing aid accessory" includes:
349
(i) a hearing aid neck loop;
350
(ii) a hearing aid cord;
351
(iii) a hearing aid ear mold;
352
(iv) hearing aid tubing;
353
(v) a hearing aid ear hook; or
354
(vi) a hearing aid remote control.
355
(c) "Hearing aid accessory" does not include:
356
(i) a component, attachment, or accessory designed to be used only with an:
357
(A) instrument or device described in Subsection (35)(b)(i); or
358
(B) assistive listening device or system described in Subsection (35)(b)(ii) or (iii); or
359
(ii) a hearing aid battery.
360
(37) "Hydroelectric energy" means water used as the sole source of energy to produce
361
electricity.
362
(38) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
363
other fuels:
364
(a) in mining or extraction of minerals;
365
(b) in agricultural operations to produce an agricultural product up to the time of
366
harvest or placing the agricultural product into a storage facility, including:
367
(i) commercial greenhouses;
368
(ii) irrigation pumps;
369
(iii) farm machinery;
370
(iv) implements of husbandry as defined in Subsection
41-1a-102
(23) that are not
371
registered under Title 41, Chapter 1a, Part 2, Registration; and
372
(v) other farming activities;
373
(c) in manufacturing tangible personal property at an establishment described in SIC
374
Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
375
Executive Office of the President, Office of Management and Budget;
376
(d) by a scrap recycler if:
377
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
378
one or more of the following items into prepared grades of processed materials for use in new
379
products:
380
(A) iron;
381
(B) steel;
382
(C) nonferrous metal;
383
(D) paper;
384
(E) glass;
385
(F) plastic;
386
(G) textile; or
387
(H) rubber; and
388
(ii) the new products under Subsection (38)(d)(i) would otherwise be made with
389
nonrecycled materials; or
390
(e) in producing a form of energy or steam described in Subsection
54-2-1
(2)(a) by a
391
cogeneration facility as defined in Section
54-2-1
.
392
(39) (a) Except as provided in Subsection (39)(b), "installation charge" means a charge
393
for installing tangible personal property.
394
(b) Notwithstanding Subsection (39)(a), "installation charge" does not include a charge
395
for repairs or renovations of tangible personal property.
396
(40) (a) "Lease" or "rental" means a transfer of possession or control of tangible
397
personal property for:
398
(i) (A) a fixed term; or
399
(B) an indeterminate term; and
400
(ii) consideration.
401
(b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
402
amount of consideration may be increased or decreased by reference to the amount realized
403
upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
404
Code.
405
(c) "Lease" or "rental" does not include:
406
(i) a transfer of possession or control of property under a security agreement or
407
deferred payment plan that requires the transfer of title upon completion of the required
408
payments;
409
(ii) a transfer of possession or control of property under an agreement that requires the
410
transfer of title:
411
(A) upon completion of required payments; and
412
(B) if the payment of an option price does not exceed the greater of:
413
(I) $100; or
414
(II) 1% of the total required payments; or
415
(iii) providing tangible personal property along with an operator for a fixed period of
416
time or an indeterminate period of time if the operator is necessary for equipment to perform as
417
designed.
418
(d) For purposes of Subsection (40)(c)(iii), an operator is necessary for equipment to
419
perform as designed if the operator's duties exceed the:
420
(i) set-up of tangible personal property;
421
(ii) maintenance of tangible personal property; or
422
(iii) inspection of tangible personal property.
423
(41) "Load and leave" means delivery to a purchaser by use of a tangible storage media
424
if the tangible storage media is not physically transferred to the purchaser.
425
(42) "Local taxing jurisdiction" means a:
426
(a) county that is authorized to impose an agreement sales and use tax;
427
(b) city that is authorized to impose an agreement sales and use tax; or
428
(c) town that is authorized to impose an agreement sales and use tax.
429
(43) "Manufactured home" is as defined in Section
58-56-3
.
430
(44) For purposes of Section
59-12-104
, "manufacturing facility" means:
431
(a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
432
Industrial Classification Manual of the federal Executive Office of the President, Office of
433
Management and Budget;
434
(b) a scrap recycler if:
435
(i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
436
one or more of the following items into prepared grades of processed materials for use in new
437
products:
438
(A) iron;
439
(B) steel;
440
(C) nonferrous metal;
441
(D) paper;
442
(E) glass;
443
(F) plastic;
444
(G) textile; or
445
(H) rubber; and
446
(ii) the new products under Subsection (44)(b)(i) would otherwise be made with
447
nonrecycled materials; or
448
(c) a cogeneration facility as defined in Section
54-2-1
.
449
(45) "Member of the immediate family of the producer" means a person who is related
450
to a producer described in Subsection
59-12-104
(20)(a) as a:
451
(a) child or stepchild, regardless of whether the child or stepchild is:
452
(i) an adopted child or adopted stepchild; or
453
(ii) a foster child or foster stepchild;
454
(b) grandchild or stepgrandchild;
455
(c) grandparent or stepgrandparent;
456
(d) nephew or stepnephew;
457
(e) niece or stepniece;
458
(f) parent or stepparent;
459
(g) sibling or stepsibling;
460
(h) spouse;
461
(i) person who is the spouse of a person described in Subsections (45)(a) through (g);
462
or
463
(j) person similar to a person described in Subsections (45)(a) through (i) as
464
determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
465
Administrative Rulemaking Act.
466
(46) "Mobile home" is as defined in Section
58-56-3
.
467
(47) "Mobile telecommunications service" is as defined in the Mobile
468
Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
469
(48) (a) Except as provided in Subsection (48)(c), "mobility enhancing equipment"
470
means equipment that is:
471
(i) primarily and customarily used to provide or increase the ability to move from one
472
place to another;
473
(ii) appropriate for use in a:
474
(A) home; or
475
(B) motor vehicle; and
476
(iii) not generally used by persons with normal mobility.
477
(b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
478
the equipment described in Subsection (48)(a).
479
(c) Notwithstanding Subsection (48)(a), "mobility enhancing equipment" does not
480
include:
481
(i) a motor vehicle;
482
(ii) equipment on a motor vehicle if that equipment is normally provided by the motor
483
vehicle manufacturer;
484
(iii) durable medical equipment; or
485
(iv) a prosthetic device.
486
(49) "Model 1 seller" means a seller that has selected a certified service provider as the
487
seller's agent to perform all of the seller's sales and use tax functions for agreement sales and
488
use taxes other than the seller's obligation under Section
59-12-107.4
to remit a tax on the
489
seller's own purchases.
490
(50) "Model 2 seller" means a seller that:
491
(a) except as provided in Subsection (50)(b), has selected a certified automated system
492
to perform the seller's sales tax functions for agreement sales and use taxes; and
493
(b) notwithstanding Subsection (50)(a), retains responsibility for remitting all of the
494
sales tax:
495
(i) collected by the seller; and
496
(ii) to the appropriate local taxing jurisdiction.
497
(51) (a) Subject to Subsection (51)(b), "model 3 seller" means a seller that has:
498
(i) sales in at least five states that are members of the agreement;
499
(ii) total annual sales revenues of at least $500,000,000;
500
(iii) a proprietary system that calculates the amount of tax:
501
(A) for an agreement sales and use tax; and
502
(B) due to each local taxing jurisdiction; and
503
(iv) entered into a performance agreement with the governing board of the agreement.
504
(b) For purposes of Subsection (51)(a), "model 3 seller" includes an affiliated group of
505
sellers using the same proprietary system.
506
(52) "Modular home" means a modular unit as defined in Section
58-56-3
.
507
(53) "Motor vehicle" is as defined in Section
41-1a-102
.
508
(54) "Oil shale" means a group of fine black to dark brown shales containing
509
bituminous material that yields petroleum upon distillation.
510
(55) (a) "Other fuels" means products that burn independently to produce heat or
511
energy.
512
(b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
513
personal property.
514
(56) "Pawnbroker" is as defined in Section
13-32a-102
.
515
(57) "Pawn transaction" is as defined in Section
13-32a-102
.
516
(58) (a) "Permanently attached to real property" means that for tangible personal
517
property attached to real property:
518
(i) the attachment of the tangible personal property to the real property:
519
(A) is essential to the use of the tangible personal property; and
520
(B) suggests that the tangible personal property will remain attached to the real
521
property in the same place over the useful life of the tangible personal property; or
522
(ii) if the tangible personal property is detached from the real property, the detachment
523
would:
524
(A) cause substantial damage to the tangible personal property; or
525
(B) require substantial alteration or repair of the real property to which the tangible
526
personal property is attached.
527
(b) "Permanently attached to real property" includes:
528
(i) the attachment of an accessory to the tangible personal property if the accessory is:
529
(A) essential to the operation of the tangible personal property; and
530
(B) attached only to facilitate the operation of the tangible personal property;
531
(ii) a temporary detachment of tangible personal property from real property for a
532
repair or renovation if the repair or renovation is performed where the tangible personal
533
property and real property are located; or
534
(iii) an attachment of the following tangible personal property to real property,
535
regardless of whether the attachment to real property is only through a line that supplies water,
536
electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by
537
rule made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
538
(A) property attached to oil, gas, or water pipelines, other than the property listed in
539
Subsection (58)(c)(iii);
540
(B) a hot water heater;
541
(C) a water softener system; or
542
(D) a water filtration system, other than a water filtration system manufactured as part
543
of a refrigerator.
544
(c) "Permanently attached to real property" does not include:
545
(i) the attachment of portable or movable tangible personal property to real property if
546
that portable or movable tangible personal property is attached to real property only for:
547
(A) convenience;
548
(B) stability; or
549
(C) for an obvious temporary purpose;
550
(ii) the detachment of tangible personal property from real property other than the
551
detachment described in Subsection (58)(b)(ii); or
552
(iii) an attachment of the following tangible personal property to real property if the
553
attachment to real property is only through a line that supplies water, electricity, gas, telephone,
554
cable, or supplies a similar item as determined by the commission by rule made in accordance
555
with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
556
(A) a refrigerator;
557
(B) a washer;
558
(C) a dryer;
559
(D) a stove;
560
(E) a television;
561
(F) a computer;
562
(G) a telephone; or
563
(H) tangible personal property similar to Subsections (58)(c)(iii)(A) through (G) as
564
determined by the commission by rule made in accordance with Title 63, Chapter 46a, Utah
565
Administrative Rulemaking Act.
566
(59) "Person" includes any individual, firm, partnership, joint venture, association,
567
corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
568
municipality, district, or other local governmental entity of the state, or any group or
569
combination acting as a unit.
570
(60) "Place of primary use":
571
(a) for telephone service other than mobile telecommunications service, means the
572
street address representative of where the purchaser's use of the telephone service primarily
573
occurs, which shall be:
574
(i) the residential street address of the purchaser; or
575
(ii) the primary business street address of the purchaser; or
576
(b) for mobile telecommunications service, is as defined in the Mobile
577
Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
578
(61) "Postproduction" means an activity related to the finishing or duplication of a
579
medium described in Subsection
59-12-104
(56)(a).
580
(62) (a) "Prepared food" means:
581
(i) food:
582
(A) sold in a heated state; or
583
(B) heated by a seller;
584
(ii) two or more food ingredients mixed or combined by the seller for sale as a single
585
item; or
586
(iii) except as provided in Subsection (62)(c), food sold with an eating utensil provided
587
by the seller, including a:
588
(A) plate;
589
(B) knife;
590
(C) fork;
591
(D) spoon;
592
(E) glass;
593
(F) cup;
594
(G) napkin; or
595
(H) straw.
596
(b) "Prepared food" does not include:
597
(i) food that a seller only:
598
(A) cuts;
599
(B) repackages; or
600
(C) pasteurizes; or
601
(ii) (A) the following:
602
(I) raw egg;
603
(II) raw fish;
604
(III) raw meat;
605
(IV) raw poultry; or
606
(V) a food containing an item described in Subsections (62)(b)(ii)(A)(I) through (IV);
607
and
608
(B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
609
Food and Drug Administration's Food Code that a consumer cook the items described in
610
Subsection (62)(b)(ii)(A) to prevent food borne illness[.]; or
611
(iii) the following if sold without eating utensils provided by the seller:
612
(A) food and food ingredients sold by a seller if the seller's proper primary
613
classification under the 2002 North American Industry Classification System of the federal
614
Executive Office of the President, Office of Management and Budget, is manufacturing in
615
Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
616
Manufacturing;
617
(B) food and food ingredients sold in an unheated state:
618
(I) by weight or volume; and
619
(II) as a single item; or
620
(C) a bakery item, including:
621
(I) a bagel;
622
(II) a bar;
623
(III) a biscuit;
624
(IV) bread;
625
(V) a bun;
626
(VI) a cake;
627
(VII) a cookie;
628
(VIII) a croissant;
629
(IX) a danish;
630
(X) a donut;
631
(XI) a muffin;
632
(XII) a pastry;
633
(XIII) a pie;
634
(XIV) a roll;
635
(XV) a tart;
636
(XVI) a torte; or
637
(XVII) a tortilla.
638
(c) Notwithstanding Subsection (62)(a)(iii), an eating utensil provided by the seller
639
does not include the following used to transport the food:
640
(i) a container; or
641
(ii) packaging.
642
(63) "Prescription" means an order, formula, or recipe that is issued:
643
(a) (i) orally;
644
(ii) in writing;
645
(iii) electronically; or
646
(iv) by any other manner of transmission; and
647
(b) by a licensed practitioner authorized by the laws of a state.
648
(64) (a) Except as provided in Subsection (64)(b)(ii) or (iii), "prewritten computer
649
software" means computer software that is not designed and developed:
650
(i) by the author or other creator of the computer software; and
651
(ii) to the specifications of a specific purchaser.
652
(b) "Prewritten computer software" includes:
653
(i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
654
software is not designed and developed:
655
(A) by the author or other creator of the computer software; and
656
(B) to the specifications of a specific purchaser;
657
(ii) notwithstanding Subsection (64)(a), computer software designed and developed by
658
the author or other creator of the computer software to the specifications of a specific purchaser
659
if the computer software is sold to a person other than the purchaser; or
660
(iii) notwithstanding Subsection (64)(a) and except as provided in Subsection (64)(c),
661
prewritten computer software or a prewritten portion of prewritten computer software:
662
(A) that is modified or enhanced to any degree; and
663
(B) if the modification or enhancement described in Subsection (64)(b)(iii)(A) is
664
designed and developed to the specifications of a specific purchaser.
665
(c) Notwithstanding Subsection (64)(b)(iii), "prewritten computer software" does not
666
include a modification or enhancement described in Subsection (64)(b)(iii) if the charges for
667
the modification or enhancement are:
668
(i) reasonable; and
669
(ii) separately stated on the invoice or other statement of price provided to the
670
purchaser.
671
(65) (a) "Prosthetic device" means a device that is worn on or in the body to:
672
(i) artificially replace a missing portion of the body;
673
(ii) prevent or correct a physical deformity or physical malfunction; or
674
(iii) support a weak or deformed portion of the body.
675
(b) "Prosthetic device" includes:
676
(i) parts used in the repairs or renovation of a prosthetic device; or
677
(ii) replacement parts for a prosthetic device.
678
(c) "Prosthetic device" does not include:
679
(i) corrective eyeglasses;
680
(ii) contact lenses;
681
(iii) hearing aids; or
682
(iv) dental prostheses.
683
(66) (a) "Protective equipment" means an item:
684
(i) for human wear; and
685
(ii) that is:
686
(A) designed as protection:
687
(I) to the wearer against injury or disease; or
688
(II) against damage or injury of other persons or property; and
689
(B) not suitable for general use.
690
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
691
commission shall make rules:
692
(i) listing the items that constitute "protective equipment"; and
693
(ii) that are consistent with the list of items that constitute "protective equipment"
694
under the agreement.
695
(67) (a) "Purchase price" and "sales price" mean the total amount of consideration:
696
(i) valued in money; and
697
(ii) for which tangible personal property or services are:
698
(A) sold;
699
(B) leased; or
700
(C) rented.
701
(b) "Purchase price" and "sales price" include:
702
(i) the seller's cost of the tangible personal property or services sold;
703
(ii) expenses of the seller, including:
704
(A) the cost of materials used;
705
(B) a labor cost;
706
(C) a service cost;
707
(D) interest;
708
(E) a loss;
709
(F) the cost of transportation to the seller; or
710
(G) a tax imposed on the seller; or
711
(iii) a charge by the seller for any service necessary to complete the sale.
712
(c) "Purchase price" and "sales price" do not include:
713
(i) a discount:
714
(A) in a form including:
715
(I) cash;
716
(II) term; or
717
(III) coupon;
718
(B) that is allowed by a seller;
719
(C) taken by a purchaser on a sale; and
720
(D) that is not reimbursed by a third party; or
721
(ii) the following if separately stated on an invoice, bill of sale, or similar document
722
provided to the purchaser:
723
(A) the amount of a trade-in;
724
(B) the following from credit extended on the sale of tangible personal property or
725
services:
726
(I) interest charges;
727
(II) financing charges; or
728
(III) carrying charges;
729
(C) a tax or fee legally imposed directly on the consumer;
730
(D) a delivery charge; or
731
(E) an installation charge.
732
(68) "Purchaser" means a person to whom:
733
(a) a sale of tangible personal property is made; or
734
(b) a service is furnished.
735
(69) "Regularly rented" means:
736
(a) rented to a guest for value three or more times during a calendar year; or
737
(b) advertised or held out to the public as a place that is regularly rented to guests for
738
value.
739
(70) "Renewable energy" means:
740
(a) biomass energy;
741
(b) hydroelectric energy;
742
(c) geothermal energy;
743
(d) solar energy; or
744
(e) wind energy.
745
(71) (a) "Renewable energy production facility" means a facility that:
746
(i) uses renewable energy to produce electricity; and
747
(ii) has a production capacity of 20 kilowatts or greater.
748
(b) A facility is a renewable energy production facility regardless of whether the
749
facility is:
750
(i) connected to an electric grid; or
751
(ii) located on the premises of an electricity consumer.
752
(72) "Rental" is as defined in Subsection (40).
753
(73) "Repairs or renovations of tangible personal property" means:
754
(a) a repair or renovation of tangible personal property that is not permanently attached
755
to real property; or
756
(b) attaching tangible personal property to other tangible personal property if the other
757
tangible personal property to which the tangible personal property is attached is not
758
permanently attached to real property.
759
(74) "Research and development" means the process of inquiry or experimentation
760
aimed at the discovery of facts, devices, technologies, or applications and the process of
761
preparing those devices, technologies, or applications for marketing.
762
(75) "Residential use" means the use in or around a home, apartment building, sleeping
763
quarters, and similar facilities or accommodations.
764
(76) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
765
than:
766
(a) resale;
767
(b) sublease; or
768
(c) subrent.
769
(77) (a) "Retailer" means any person engaged in a regularly organized business in
770
tangible personal property or any other taxable transaction under Subsection
59-12-103
(1), and
771
who is selling to the user or consumer and not for resale.
772
(b) "Retailer" includes commission merchants, auctioneers, and any person regularly
773
engaged in the business of selling to users or consumers within the state.
774
(78) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
775
otherwise, in any manner, of tangible personal property or any other taxable transaction under
776
Subsection
59-12-103
(1), for consideration.
777
(b) "Sale" includes:
778
(i) installment and credit sales;
779
(ii) any closed transaction constituting a sale;
780
(iii) any sale of electrical energy, gas, services, or entertainment taxable under this
781
chapter;
782
(iv) any transaction if the possession of property is transferred but the seller retains the
783
title as security for the payment of the price; and
784
(v) any transaction under which right to possession, operation, or use of any article of
785
tangible personal property is granted under a lease or contract and the transfer of possession
786
would be taxable if an outright sale were made.
787
(79) "Sale at retail" is as defined in Subsection (76).
788
(80) "Sale-leaseback transaction" means a transaction by which title to tangible
789
personal property that is subject to a tax under this chapter is transferred:
790
(a) by a purchaser-lessee;
791
(b) to a lessor;
792
(c) for consideration; and
793
(d) if:
794
(i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
795
of the tangible personal property;
796
(ii) the sale of the tangible personal property to the lessor is intended as a form of
797
financing:
798
(A) for the property; and
799
(B) to the purchaser-lessee; and
800
(iii) in accordance with generally accepted accounting principles, the purchaser-lessee
801
is required to:
802
(A) capitalize the property for financial reporting purposes; and
803
(B) account for the lease payments as payments made under a financing arrangement.
804
(81) "Sales price" is as defined in Subsection (67).
805
(82) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
806
amounts charged by a school:
807
(i) sales that are directly related to the school's educational functions or activities
808
including:
809
(A) the sale of:
810
(I) textbooks;
811
(II) textbook fees;
812
(III) laboratory fees;
813
(IV) laboratory supplies; or
814
(V) safety equipment;
815
(B) the sale of a uniform, protective equipment, or sports or recreational equipment
816
that:
817
(I) a student is specifically required to wear as a condition of participation in a
818
school-related event or school-related activity; and
819
(II) is not readily adaptable to general or continued usage to the extent that it takes the
820
place of ordinary clothing;
821
(C) sales of the following if the net or gross revenues generated by the sales are
822
deposited into a school district fund or school fund dedicated to school meals:
823
(I) food and food ingredients; or
824
(II) prepared food; or
825
(D) transportation charges for official school activities; or
826
(ii) amounts paid to or amounts charged by a school for admission to a school-related
827
event or school-related activity.
828
(b) "Sales relating to schools" does not include:
829
(i) bookstore sales of items that are not educational materials or supplies;
830
(ii) except as provided in Subsection (82)(a)(i)(B):
831
(A) clothing;
832
(B) clothing accessories or equipment;
833
(C) protective equipment; or
834
(D) sports or recreational equipment; or
835
(iii) amounts paid to or amounts charged by a school for admission to a school-related
836
event or school-related activity if the amounts paid or charged are passed through to a person:
837
(A) other than a:
838
(I) school;
839
(II) nonprofit organization authorized by a school board or a governing body of a
840
private school to organize and direct a competitive secondary school activity; or
841
(III) nonprofit association authorized by a school board or a governing body of a
842
private school to organize and direct a competitive secondary school activity; and
843
(B) that is required to collect sales and use taxes under this chapter.
844
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
845
commission may make rules defining the term "passed through."
846
(83) For purposes of this section and Section
59-12-104
, "school" means:
847
(a) an elementary school or a secondary school that:
848
(i) is a:
849
(A) public school; or
850
(B) private school; and
851
(ii) provides instruction for one or more grades kindergarten through 12; or
852
(b) a public school district.
853
(84) "Seller" means a person that makes a sale, lease, or rental of:
854
(a) tangible personal property; or
855
(b) a service.
856
(85) (a) "Semiconductor fabricating, processing, research, or development materials"
857
means tangible personal property:
858
(i) used primarily in the process of:
859
(A) (I) manufacturing a semiconductor;
860
(II) fabricating a semiconductor; or
861
(III) research or development of a:
862
(Aa) semiconductor; or
863
(Bb) semiconductor manufacturing process; or
864
(B) maintaining an environment suitable for a semiconductor; or
865
(ii) consumed primarily in the process of:
866
(A) (I) manufacturing a semiconductor;
867
(II) fabricating a semiconductor; or
868
(III) research or development of a:
869
(Aa) semiconductor; or
870
(Bb) semiconductor manufacturing process; or
871
(B) maintaining an environment suitable for a semiconductor.
872
(b) "Semiconductor fabricating, processing, research, or development materials"
873
includes:
874
(i) parts used in the repairs or renovations of tangible personal property described in
875
Subsection (85)(a); or
876
(ii) a chemical, catalyst, or other material used to:
877
(A) produce or induce in a semiconductor a:
878
(I) chemical change; or
879
(II) physical change;
880
(B) remove impurities from a semiconductor; or
881
(C) improve the marketable condition of a semiconductor.
882
(86) "Senior citizen center" means a facility having the primary purpose of providing
883
services to the aged as defined in Section
62A-3-101
.
884
(87) "Simplified electronic return" means the electronic return:
885
(a) described in Section 318(C) of the agreement; and
886
(b) approved by the governing board of the agreement.
887
(88) "Solar energy" means the sun used as the sole source of energy for producing
888
electricity.
889
(89) (a) "Sports or recreational equipment" means an item:
890
(i) designed for human use; and
891
(ii) that is:
892
(A) worn in conjunction with:
893
(I) an athletic activity; or
894
(II) a recreational activity; and
895
(B) not suitable for general use.
896
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
897
commission shall make rules:
898
(i) listing the items that constitute "sports or recreational equipment"; and
899
(ii) that are consistent with the list of items that constitute "sports or recreational
900
equipment" under the agreement.
901
(90) "State" means the state of Utah, its departments, and agencies.
902
(91) "Storage" means any keeping or retention of tangible personal property or any
903
other taxable transaction under Subsection
59-12-103
(1), in this state for any purpose except
904
sale in the regular course of business.
905
(92) (a) "Tangible personal property" means personal property that:
906
(i) may be:
907
(A) seen;
908
(B) weighed;
909
(C) measured;
910
(D) felt; or
911
(E) touched; or
912
(ii) is in any manner perceptible to the senses.
913
(b) "Tangible personal property" includes:
914
(i) electricity;
915
(ii) water;
916
(iii) gas;
917
(iv) steam; or
918
(v) prewritten computer software.
919
(93) "Tar sands" means impregnated sands that yield mixtures of liquid hydrocarbon
920
and require further processing other than mechanical blending before becoming finished
921
petroleum products.
922
(94) (a) "Telecommunications enabling or facilitating equipment, machinery, or
923
software" means an item listed in Subsection (94)(b) if that item is purchased or leased
924
primarily to enable or facilitate one or more of the following to function:
925
(i) telecommunications switching or routing equipment, machinery, or software; or
926
(ii) telecommunications transmission equipment, machinery, or software.
927
(b) The following apply to Subsection (94)(a):
928
(i) a pole;
929
(ii) software;
930
(iii) a supplementary power supply;
931
(iv) temperature or environmental equipment or machinery;
932
(v) test equipment;
933
(vi) a tower; or
934
(vii) equipment, machinery, or software that functions similarly to an item listed in
935
Subsections (94)(b)(i) through (vi) as determined by the commission by rule made in
936
accordance with Subsection (94)(c).
937
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
938
commission may by rule define what constitutes equipment, machinery, or software that
939
functions similarly to an item listed in Subsections (94)(b)(i) through (vi).
940
(95) "Telecommunications equipment, machinery, or software required for 911
941
service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
942
Sec. 20.18.
943
(96) "Telecommunications maintenance or repair equipment, machinery, or software"
944
means equipment, machinery, or software purchased or leased primarily to maintain or repair
945
one or more of the following, regardless of whether the equipment, machinery, or software is
946
purchased or leased as a spare part or as an upgrade or modification to one or more of the
947
following:
948
(a) telecommunications enabling or facilitating equipment, machinery, or software;
949
(b) telecommunications switching or routing equipment, machinery, or software; or
950
(c) telecommunications transmission equipment, machinery, or software.
951
(97) (a) "Telecommunications switching or routing equipment, machinery, or software"
952
means an item listed in Subsection (97)(b) if that item is purchased or leased primarily for
953
switching or routing:
954
(i) voice communications;
955
(ii) data communications; or
956
(iii) telephone service.
957
(b) The following apply to Subsection (97)(a):
958
(i) a bridge;
959
(ii) a computer;
960
(iii) a cross connect;
961
(iv) a modem;
962
(v) a multiplexer;
963
(vi) plug in circuitry;
964
(vii) a router;
965
(viii) software;
966
(ix) a switch; or
967
(x) equipment, machinery, or software that functions similarly to an item listed in
968
Subsections (97)(b)(i) through (ix) as determined by the commission by rule made in
969
accordance with Subsection (97)(c).
970
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
971
commission may by rule define what constitutes equipment, machinery, or software that
972
functions similarly to an item listed in Subsections (97)(b)(i) through (ix).
973
(98) (a) "Telecommunications transmission equipment, machinery, or software" means
974
an item listed in Subsection (98)(b) if that item is purchased or leased primarily for sending,
975
receiving, or transporting:
976
(i) voice communications;
977
(ii) data communications; or
978
(iii) telephone service.
979
(b) The following apply to Subsection (98)(a):
980
(i) an amplifier;
981
(ii) a cable;
982
(iii) a closure;
983
(iv) a conduit;
984
(v) a controller;
985
(vi) a duplexer;
986
(vii) a filter;
987
(viii) an input device;
988
(ix) an input/output device;
989
(x) an insulator;
990
(xi) microwave machinery or equipment;
991
(xii) an oscillator;
992
(xiii) an output device;
993
(xiv) a pedestal;
994
(xv) a power converter;
995
(xvi) a power supply;
996
(xvii) a radio channel;
997
(xviii) a radio receiver;
998
(xix) a radio transmitter;
999
(xx) a repeater;
1000
(xxi) software;
1001
(xxii) a terminal;
1002
(xxiii) a timing unit;
1003
(xxiv) a transformer;
1004
(xxv) a wire; or
1005
(xxvi) equipment, machinery, or software that functions similarly to an item listed in
1006
Subsections (98)(b)(i) through (xxv) as determined by the commission by rule made in
1007
accordance with Subsection (98)(c).
1008
(c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1009
commission may by rule define what constitutes equipment, machinery, or software that
1010
functions similarly to an item listed in Subsections (98)(b)(i) through (xxv).
1011
(99) (a) "Telephone service" means a two-way transmission:
1012
(i) by:
1013
(A) wire;
1014
(B) radio;
1015
(C) lightwave; or
1016
(D) other electromagnetic means; and
1017
(ii) of one or more of the following:
1018
(A) a sign;
1019
(B) a signal;
1020
(C) writing;
1021
(D) an image;
1022
(E) sound;
1023
(F) a message;
1024
(G) data; or
1025
(H) other information of any nature.
1026
(b) "Telephone service" includes:
1027
(i) mobile telecommunications service;
1028
(ii) private communications service; or
1029
(iii) automated digital telephone answering service.
1030
(c) "Telephone service" does not include a service or a transaction that a state or a
1031
political subdivision of a state is prohibited from taxing as of July 1, 2001, under the Internet
1032
Tax Freedom Act, Pub. L. No. 105-277.
1033
(100) Notwithstanding where a call is billed or paid, "telephone service address"
1034
means:
1035
(a) if the location described in this Subsection (100)(a) is known, the location of the
1036
telephone service equipment:
1037
(i) to which a call is charged; and
1038
(ii) from which the call originates or terminates;
1039
(b) if the location described in Subsection (100)(a) is not known but the location
1040
described in this Subsection (100)(b) is known, the location of the origination point of the
1041
signal of the telephone service first identified by:
1042
(i) the telecommunications system of the seller; or
1043
(ii) if the system used to transport the signal is not that of the seller, information
1044
received by the seller from its service provider; or
1045
(c) if the locations described in Subsection (100)(a) or (b) are not known, the location
1046
of a purchaser's primary place of use.
1047
(101) (a) "Telephone service provider" means a person that:
1048
(i) owns, controls, operates, or manages a telephone service; and
1049
(ii) engages in an activity described in Subsection (101)(a)(i) for the shared use with or
1050
resale to any person of the telephone service.
1051
(b) A person described in Subsection (101)(a) is a telephone service provider whether
1052
or not the Public Service Commission of Utah regulates:
1053
(i) that person; or
1054
(ii) the telephone service that the person owns, controls, operates, or manages.
1055
(102) "Tobacco" means:
1056
(a) a cigarette;
1057
(b) a cigar;
1058
(c) chewing tobacco;
1059
(d) pipe tobacco; or
1060
(e) any other item that contains tobacco.
1061
(103) "Unassisted amusement device" means an amusement device, skill device, or
1062
ride device that is started and stopped by the purchaser or renter of the right to use or operate
1063
the amusement device, skill device, or ride device.
1064
(104) (a) "Use" means the exercise of any right or power over tangible personal
1065
property under Subsection
59-12-103
(1), incident to the ownership or the leasing of that
1066
property, item, or service.
1067
(b) "Use" does not include the sale, display, demonstration, or trial of that property in
1068
the regular course of business and held for resale.
1069
(105) (a) Subject to Subsection (105)(b), "vehicle" means the following that are
1070
required to be titled, registered, or titled and registered:
1071
(i) an aircraft as defined in Section
72-10-102
;
1072
(ii) a vehicle as defined in Section
41-1a-102
;
1073
(iii) an off-highway vehicle as defined in Section
41-22-2
; or
1074
(iv) a vessel as defined in Section
41-1a-102
.
1075
(b) For purposes of Subsection
59-12-104
(33) only, "vehicle" includes:
1076
(i) a vehicle described in Subsection (105)(a); or
1077
(ii) (A) a locomotive;
1078
(B) a freight car;
1079
(C) railroad work equipment; or
1080
(D) other railroad rolling stock.
1081
(106) "Vehicle dealer" means a person engaged in the business of buying, selling, or
1082
exchanging a vehicle as defined in Subsection (105).
1083
(107) (a) Except as provided in Subsection (107)(b), "waste energy facility" means a
1084
facility that generates electricity:
1085
(i) using as the primary source of energy waste materials that would be placed in a
1086
landfill or refuse pit if it were not used to generate electricity, including:
1087
(A) tires;
1088
(B) waste coal; or
1089
(C) oil shale; and
1090
(ii) in amounts greater than actually required for the operation of the facility.
1091
(b) "Waste energy facility" does not include a facility that incinerates:
1092
(i) municipal solid waste;
1093
(ii) hospital waste as defined in 40 C.F.R. 60.51c; or
1094
(iii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1095
(108) "Watercraft" means a vessel as defined in Section
73-18-2
.
1096
(109) "Wind energy" means wind used as the sole source of energy to produce
1097
electricity.
1098
(110) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
1099
location by the United States Postal Service.
1100
Section 2.
Section
59-12-103 (Effective 01/01/07)
is amended to read:
1101
59-12-103 (Effective 01/01/07). Sales and use tax base -- Rates -- Effective dates --
1102
Use of sales and use tax revenues.
1103
(1) A tax is imposed on the purchaser as provided in this part for amounts paid or
1104
charged for the following transactions:
1105
(a) retail sales of tangible personal property made within the state;
1106
(b) amounts paid:
1107
(i) (A) to a common carrier; or
1108
(B) whether the following are municipally or privately owned, to a:
1109
(I) telephone service provider; or
1110
(II) telegraph corporation as defined in Section
54-2-1
; and
1111
(ii) for:
1112
(A) telephone service, other than mobile telecommunications service, that originates
1113
and terminates within the boundaries of this state;
1114
(B) mobile telecommunications service that originates and terminates within the
1115
boundaries of one state only to the extent permitted by the Mobile Telecommunications
1116
Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
1117
(C) telegraph service;
1118
(c) sales of the following for commercial use:
1119
(i) gas;
1120
(ii) electricity;
1121
(iii) heat;
1122
(iv) coal;
1123
(v) fuel oil; or
1124
(vi) other fuels;
1125
(d) sales of the following for residential use:
1126
(i) gas;
1127
(ii) electricity;
1128
(iii) heat;
1129
(iv) coal;
1130
(v) fuel oil; or
1131
(vi) other fuels;
1132
(e) sales of prepared food;
1133
(f) except as provided in Section
59-12-104
, amounts paid or charged as admission or
1134
user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
1135
exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
1136
fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
1137
television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
1138
driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
1139
tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
1140
horseback rides, sports activities, or any other amusement, entertainment, recreation,
1141
exhibition, cultural, or athletic activity;
1142
(g) amounts paid or charged for services for repairs or renovations of tangible personal
1143
property, unless Section
59-12-104
provides for an exemption from sales and use tax for:
1144
(i) the tangible personal property; and
1145
(ii) parts used in the repairs or renovations of the tangible personal property described
1146
in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
1147
of that tangible personal property;
1148
(h) except as provided in Subsection
59-12-104
(7), amounts paid or charged for
1149
assisted cleaning or washing of tangible personal property;
1150
(i) amounts paid or charged for tourist home, hotel, motel, or trailer court
1151
accommodations and services that are regularly rented for less than 30 consecutive days;
1152
(j) amounts paid or charged for laundry or dry cleaning services;
1153
(k) amounts paid or charged for leases or rentals of tangible personal property if within
1154
this state the tangible personal property is:
1155
(i) stored;
1156
(ii) used; or
1157
(iii) otherwise consumed;
1158
(l) amounts paid or charged for tangible personal property if within this state the
1159
tangible personal property is:
1160
(i) stored;
1161
(ii) used; or
1162
(iii) consumed; and
1163
(m) amounts paid or charged for prepaid telephone calling cards.
1164
(2) (a) Except as provided in Subsection (2)(b) or (f), a state tax and a local tax is
1165
imposed on a transaction described in Subsection (1) equal to the sum of:
1166
(i) a state tax imposed on the transaction at a rate of 4.75%; and
1167
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1168
transaction under this chapter other than this part.
1169
(b) (i) A state tax and a local tax is imposed on a transaction described in Subsection
1170
(1)(d) equal to the sum of:
1171
(A) a state tax imposed on the transaction at a rate of 2%; and
1172
(B) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1173
transaction under this chapter other than this part; or
1174
(ii) if a seller collects a tax in accordance with Subsection
59-12-107
(1)(b) on a
1175
transaction described in Subsection (1), a state tax and a local tax is imposed on the transaction
1176
equal to the sum of:
1177
(A) a state tax imposed on the transaction at a rate of:
1178
(I) 4.75% for a transaction other than a transaction described in Subsection (1)(d); or
1179
(II) 2% for a transaction described in Subsection (1)(d); and
1180
(B) a local tax imposed on the transaction at a rate equal to the sum of the following
1181
rates:
1182
(I) the tax rate authorized by Section
59-12-204
, but only if all of the counties, cities,
1183
and towns in the state impose the tax under Section
59-12-204
; and
1184
(II) the tax rate authorized by Section
59-12-1102
, but only if all of the counties in the
1185
state impose the tax under Section
59-12-1102
.
1186
(iii) Except as provided in Subsection (2)(f), beginning on January 1, 2007, a state tax
1187
and a local tax is imposed on amounts paid or charged for food and food ingredients equal to
1188
the sum of:
1189
(A) a state tax imposed on the amounts paid or charged for food and food ingredients
1190
at a rate of 2.75%; and
1191
(B) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1192
amounts paid or charged for food and food ingredients under this chapter other than this part.
1193
(c) Subject to Subsections (2)(d) and (e), a tax rate repeal or tax rate change for a tax
1194
rate imposed under the following shall take effect on the first day of a calendar quarter:
1195
(i) Subsection (2)(a)(i);
1196
(ii) Subsection (2)(b)(i)(A);
1197
(iii) Subsection (2)(b)(ii)(A); or
1198
(iv) Subsection (2)(b)(iii)(A).
1199
(d) (i) For a transaction described in Subsection (2)(d)(iii), a tax rate increase shall take
1200
effect on the first day of the first billing period:
1201
(A) that begins after the effective date of the tax rate increase; and
1202
(B) if the billing period for the transaction begins before the effective date of a tax rate
1203
increase imposed under:
1204
(I) Subsection (2)(a)(i);
1205
(II) Subsection (2)(b)(i)(A); or
1206
(III) Subsection (2)(b)(ii)(A).
1207
(ii) For a transaction described in Subsection (2)(d)(iii), the repeal of a tax or a tax rate
1208
decrease shall take effect on the first day of the last billing period:
1209
(A) that began before the effective date of the repeal of the tax or the tax rate decrease;
1210
and
1211
(B) if the billing period for the transaction begins before the effective date of the repeal
1212
of the tax or the tax rate decrease imposed under:
1213
(I) Subsection (2)(a)(i);
1214
(II) Subsection (2)(b)(i)(A); or
1215
(III) Subsection (2)(b)(ii)(A).
1216
(iii) Subsections (2)(d)(i) and (ii) apply to transactions subject to a tax under:
1217
(A) Subsection (1)(b);
1218
(B) Subsection (1)(c);
1219
(C) Subsection (1)(d);
1220
(D) Subsection (1)(e);
1221
(E) Subsection (1)(f);
1222
(F) Subsection (1)(g);
1223
(G) Subsection (1)(h);
1224
(H) Subsection (1)(i);
1225
(I) Subsection (1)(j); or
1226
(J) Subsection (1)(k).
1227
(e) (i) If a tax due under Subsection (2)(a)(i) or (2)(b)(ii)(A) on a catalogue sale is
1228
computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
1229
change in a tax rate imposed under Subsection (2)(a)(i) or (2)(b)(ii)(A) takes effect:
1230
(A) on the first day of a calendar quarter; and
1231
(B) beginning 60 days after the effective date of the tax rate repeal or tax rate change
1232
under Subsection (2)(a)(i) or (2)(b)(ii)(A).
1233
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
1234
the commission may by rule define the term "catalogue sale."
1235
(f) [(i)] If the price of a bundled transaction is attributable to [items of] food and food
1236
ingredients and tangible personal property [and] other than food and food ingredients, the tax
1237
imposed on the entire bundled transaction is the sum of the tax rates described in Subsection
1238
(2)(a).
1239
[(ii) For a seller that sells food and food ingredients and prepared food at the same
1240
location:]
1241
[(A) if the location at which the food and food ingredients and prepared food is sold is
1242
a restaurant as defined in Section
59-12-602
, the tax imposed on the food and food ingredients
1243
and prepared food is the sum of the tax rates described in Subsection (2)(a); or]
1244
[(B) if the location at which the food and food ingredients and prepared food is sold is
1245
not a restaurant as defined in Section
59-12-602
, the tax imposed on the food and food
1246
ingredients and prepared food is the sum of the tax rates described in Subsection (2)(b)(iii).]
1247
(3) (a) Except as provided in Subsections (4) through (9), the following state taxes
1248
shall be deposited into the General Fund:
1249
(i) the tax imposed by Subsection (2)(a)(i);
1250
(ii) the tax imposed by Subsection (2)(b)(i)(A);
1251
(iii) the tax imposed by Subsection (2)(b)(ii)(A); or
1252
(iv) the tax imposed by Subsection (2)(b)(iii)(A).
1253
(b) The local taxes described in Subsections (2)(a)(ii), (2)(b)(i)(B), and (2)(b)(iii)(B)
1254
shall be distributed to a county, city, or town as provided in this chapter.
1255
(c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the
1256
state shall receive the county's, city's, or town's proportionate share of the revenues generated
1257
by the local tax described in Subsection (2)(b)(ii)(B) as provided in Subsection (3)(c)(ii).
1258
(ii) The commission shall determine a county's, city's, or town's proportionate share of
1259
the revenues under Subsection (3)(c)(i) by:
1260
(A) calculating an amount equal to the population of the unincorporated area of the
1261
county, city, or town divided by the total population of the state; and
1262
(B) multiplying the amount determined under Subsection (3)(c)(ii)(A) by the total
1263
amount of revenues generated by the local tax under Subsection (2)(b)(ii)(B) for all counties,
1264
cities, and towns.
1265
(iii) (A) Except as provided in Subsection (3)(c)(iii)(B), population figures for
1266
purposes of this section shall be derived from the most recent official census or census estimate
1267
of the United States Census Bureau.
1268
(B) If a needed population estimate is not available from the United States Census
1269
Bureau, population figures shall be derived from the estimate from the Utah Population
1270
Estimates Committee created by executive order of the governor.
1271
(4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1272
2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
1273
through (g):
1274
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1275
(A) by a 1/16% tax rate on the transactions described in Subsection (1); and
1276
(B) for the fiscal year; or
1277
(ii) $17,500,000.
1278
(b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
1279
described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
1280
Department of Natural Resources to:
1281
(A) implement the measures described in Subsections
63-34-14
(4)(a) through (d) to
1282
protect sensitive plant and animal species; or
1283
(B) award grants, up to the amount authorized by the Legislature in an appropriations
1284
act, to political subdivisions of the state to implement the measures described in Subsections
1285
63-34-14
(4)(a) through (d) to protect sensitive plant and animal species.
1286
(ii) Money transferred to the Department of Natural Resources under Subsection
1287
(4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
1288
person to list or attempt to have listed a species as threatened or endangered under the
1289
Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
1290
(iii) At the end of each fiscal year:
1291
(A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1292
Conservation and Development Fund created in Section
73-10-24
;
1293
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1294
Program Subaccount created in Section
73-10c-5
; and
1295
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1296
Program Subaccount created in Section
73-10c-5
.
1297
(c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
1298
Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
1299
created in Section
4-18-6
.
1300
(d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
1301
in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
1302
Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
1303
water rights.
1304
(ii) At the end of each fiscal year:
1305
(A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1306
Conservation and Development Fund created in Section
73-10-24
;
1307
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1308
Program Subaccount created in Section
73-10c-5
; and
1309
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1310
Program Subaccount created in Section
73-10c-5
.
1311
(e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
1312
in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
1313
Fund created in Section
73-10-24
for use by the Division of Water Resources.
1314
(ii) In addition to the uses allowed of the Water Resources Conservation and
1315
Development Fund under Section
73-10-24
, the Water Resources Conservation and
1316
Development Fund may also be used to:
1317
(A) conduct hydrologic and geotechnical investigations by the Division of Water
1318
Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
1319
quantifying surface and ground water resources and describing the hydrologic systems of an
1320
area in sufficient detail so as to enable local and state resource managers to plan for and
1321
accommodate growth in water use without jeopardizing the resource;
1322
(B) fund state required dam safety improvements; and
1323
(C) protect the state's interest in interstate water compact allocations, including the
1324
hiring of technical and legal staff.
1325
(f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
1326
in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
1327
created in Section
73-10c-5
for use by the Water Quality Board to fund wastewater projects.
1328
(g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
1329
in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
1330
created in Section
73-10c-5
for use by the Division of Drinking Water to:
1331
(i) provide for the installation and repair of collection, treatment, storage, and
1332
distribution facilities for any public water system, as defined in Section
19-4-102
;
1333
(ii) develop underground sources of water, including springs and wells; and
1334
(iii) develop surface water sources.
1335
(5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1336
2006, the difference between the following amounts shall be expended as provided in this
1337
Subsection (5), if that difference is greater than $1:
1338
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
1339
fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
1340
(ii) $17,500,000.
1341
(b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
1342
(A) transferred each fiscal year to the Department of Natural Resources as dedicated
1343
credits; and
1344
(B) expended by the Department of Natural Resources for watershed rehabilitation or
1345
restoration.
1346
(ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
1347
in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
1348
created in Section
73-10-24
.
1349
(c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
1350
remaining difference described in Subsection (5)(a) shall be:
1351
(A) transferred each fiscal year to the Division of Water Resources as dedicated
1352
credits; and
1353
(B) expended by the Division of Water Resources for cloud-seeding projects
1354
authorized by Title 73, Chapter 15, Modification of Weather.
1355
(ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
1356
in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
1357
created in Section
73-10-24
.
1358
(d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
1359
remaining difference described in Subsection (5)(a) shall be deposited into the Water
1360
Resources Conservation and Development Fund created in Section
73-10-24
for use by the
1361
Division of Water Resources for:
1362
(i) preconstruction costs:
1363
(A) as defined in Subsection
73-26-103
(6) for projects authorized by Title 73, Chapter
1364
26, Bear River Development Act; and
1365
(B) as defined in Subsection
73-28-103
(8) for the Lake Powell Pipeline project
1366
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
1367
(ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
1368
Chapter 26, Bear River Development Act;
1369
(iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
1370
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
1371
(iv) other uses authorized under Sections
73-10-24
,
73-10-25.1
,
73-10-30
, and
1372
Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
1373
(e) Any unexpended monies described in Subsection (5)(d) that remain in the Water
1374
Resources Conservation and Development Fund at the end of the fiscal year are nonlapsing.
1375
(f) After making the transfers required by Subsections (5)(b) and (c) and subject to
1376
Subsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall be
1377
transferred each year as dedicated credits to the Division of Water Rights to cover the costs
1378
incurred for employing additional technical staff for the administration of water rights.
1379
(g) At the end of each fiscal year, any unexpended dedicated credits described in
1380
Subsection (5)(f) over $150,000 lapse to the Water Resources Conservation and Development
1381
Fund created in Section
73-10-24
.
1382
(6) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1383
2003, the lesser of the following amounts shall be used as provided in Subsections (6)(b)
1384
through (d):
1385
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1386
(A) by a 1/16% tax rate on the transactions described in Subsection (1); and
1387
(B) for the fiscal year; or
1388
(ii) $18,743,000.
1389
(b) (i) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described
1390
in Subsection (6)(a) shall be deposited each year in the Transportation Corridor Preservation
1391
Revolving Loan Fund created in Section
72-2-117
.
1392
(ii) At least 50% of the money deposited in the Transportation Corridor Preservation
1393
Revolving Loan Fund under Subsection (6)(b)(i) shall be used to fund loan applications made
1394
by the Department of Transportation at the request of local governments.
1395
(c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
1396
Subsection (6)(a) shall be transferred each year as nonlapsing dedicated credits to the
1397
Department of Transportation for the State Park Access Highways Improvement Program
1398
created in Section
72-3-207
.
1399
(d) For a fiscal year beginning on or after July 1, 2003, 94% of the amount described in
1400
Subsection (6)(a) shall be deposited in the class B and class C roads account to be expended as
1401
provided in Title 72, Chapter 2, Transportation Finances Act, for the use of class B and C
1402
roads.
1403
(7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
1404
beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
1405
Highway Fund Restricted Account created in Section
72-2-118
a portion of the taxes listed
1406
under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
1407
transactions under Subsection (1).
1408
(b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
1409
have been paid off and the highway projects completed that are intended to be paid from
1410
revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
1411
Executive Appropriations Committee under Subsection
72-2-118
(6)(d), the Division of
1412
Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
1413
72-2-124
a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
1414
by a 1/64% tax rate on the taxable transactions under Subsection (1).
1415
(8) (a) Notwithstanding Subsection (3)(a), for fiscal years beginning on or after fiscal
1416
year 2004-05, the commission shall each year on or before the September 30 immediately
1417
following the last day of the fiscal year deposit the difference described in Subsection (8)(b)
1418
into the Remote Sales Restricted Account created in Section
59-12-103.2
if that difference is
1419
greater than $0.
1420
(b) The difference described in Subsection (8)(a) is equal to the difference between:
1421
(i) the total amount of the revenues under Subsections (2)(b)(ii)(A) and (2)(b)(iii)(A)
1422
the commission received from sellers collecting a tax in accordance with Subsection
1423
59-12-107
(1)(b) for the fiscal year immediately preceding the September 30 described in
1424
Subsection (8)(a); and
1425
(ii) $7,279,673.
1426
(9) (a) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
1427
Subsection (7)(a), and until Subsection (9)(b) applies, for a fiscal year beginning on or after
1428
July 1, 2006, the Division of Finance shall deposit into the Centennial Highway Fund
1429
Restricted Account created by Section
72-2-118
a portion of the taxes listed under Subsection
1430
(3)(a) equal to 8.3% of the revenues collected from the taxes described in Subsections (2)(a)(i),
1431
(2)(b)(i)(A), and (2)(b)(iii)(A), which represents a portion of the approximately 17% of sales
1432
and use tax revenues generated annually by the sales and use tax on vehicles and
1433
vehicle-related products.
1434
(b) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
1435
Subsection (7)(b), when the highway general obligation bonds have been paid off and the
1436
highway projects completed that are intended to be paid from revenues deposited in the
1437
Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
1438
Committee under Subsection
72-2-118
(6)(d), the Division of Finance shall deposit into the
1439
Transportation Investment Fund of 2005 created by Section
72-2-124
a portion of the taxes
1440
listed under Subsection (3)(a) equal to 8.3% of the revenues collected from the taxes described
1441
in Subsections (2)(a)(i), (2)(b)(i)(A), and (2)(b)(iii)(A), which represents a portion of the
1442
approximately 17% of sales and use tax revenues generated annually by the sales and use tax
1443
on vehicles and vehicle-related products.
1444
Section 3. Uncodified Section 5, Chapter 282, Laws of Utah 2006 is amended to
1445
read:
1446
Section 5. Appropriation.
1447
(1) Subject to Subsection (2), there is appropriated from the General Fund, for fiscal
1448
year 2006-07 only, $6,000,000 to the State Tax Commission for distribution to certain business
1449
locations to reimburse some of the business location's costs in complying with the reduced
1450
sales and use tax rate imposed on food and food ingredients.
1451
(2) The Legislature intends that the State Tax Commission may expend up to 2% of the
1452
amount appropriated for administrative costs.
1453
(3) The Legislature intends that, to the extent funds are available, the State Tax
1454
Commission distribute these monies as provided in Subsections (4) [and (5)] through (6).
1455
(4) (a) Except as provided in Subsection (4)(b), the State Tax Commission shall
1456
reimburse a business location:
1457
(i) that:
1458
(A) in 2005, remitted taxes imposed by Title 59, Chapter 12, Sales and Use Tax Act, in
1459
an amount greater than or equal to $15,000 but less than or equal to [$500,000] $150,000;
1460
(B) remitted sales and use taxes on food and food ingredients as defined in Section
1461
59-12-102
to the State Tax Commission before March 1, 2006; and
1462
(C) submits a request for reimbursement to the State Tax Commission postmarked
1463
before January 1, 2007;
1464
(ii) for the verifiable amounts that the business location actually expended:
1465
(A) after May 1, 2006, but on or before December 31, 2006; and
1466
(B) to purchase computer hardware [and], software, or programming to account for
1467
sales under the reduced sales and use tax rate imposed on food and food ingredients; and
1468
(iii) in an amount that does not exceed the lesser of:
1469
(A) [50%] 75% of the verifiable amounts described in Subsection (4)(a)(ii); or
1470
(B) [$10,000] $5,000.
1471
(b) If the total amount of requests for reimbursement under Subsection (4)(a) exceed
1472
the monies that are available for reimbursement, the State Tax Commission shall reduce each
1473
claim by a pro rata share.
1474
(5) (a) Except as provided in Subsection (5)(b), if, after the State Tax Commission
1475
makes the reimbursements required by Subsection (4), monies described in Subsection (1)
1476
remain for reimbursement, the State Tax Commission shall reimburse a business location:
1477
(i) that:
1478
(A) in 2005, remitted taxes imposed by Title 59, Chapter 12, Sales and Use Tax Act, in
1479
an amount greater than [or equal to $15,000] $150,000 but less than or equal to $500,000;
1480
(B) remitted sales and use taxes on food and food ingredients as defined in Section
1481
59-12-102
to the State Tax Commission before March 1, 2006; and
1482
(C) submits a request for reimbursement to the State Tax Commission postmarked
1483
before January 1, 2007;
1484
(ii) for the verifiable amounts that the business location actually expended:
1485
(A) after May 1, 2006, but on or before December 31, 2006; and
1486
(B) to purchase computer hardware, software, or programming to account for sales
1487
under the reduced sales and use tax rate imposed on food and food ingredients; and
1488
(iii) in an amount that does not exceed the lesser of:
1489
(A) 50% of the verifiable amounts described in Subsection (5)(a)(ii); or
1490
(B) $10,000.
1491
(b) If the total amount of requests for reimbursement under Subsection (5)(a) exceed
1492
the monies that are available for reimbursement, the State Tax Commission shall reduce each
1493
claim by a pro rata share.
1494
(6) (a) Except as provided in Subsection (6)(b), if, after the State Tax Commission
1495
makes the reimbursements required by Subsections (4) and (5), monies described in Subsection
1496
(1) remain for reimbursement, the State Tax Commission shall reimburse a business location:
1497
(i) that:
1498
(A) in 2005, remitted taxes imposed by Title 59, Chapter 12, Sales and Use Tax Act, in
1499
an amount greater than or equal to $15,000;
1500
(B) remitted sales and use taxes on food and food ingredients as defined in Section
1501
59-12-102
to the State Tax Commission before March 1, 2006; and
1502
(C) submits a request for reimbursement to the State Tax Commission postmarked
1503
before January 1, 2007;
1504
(ii) for the verifiable amounts that the business location actually expended:
1505
(A) after May 1, 2006, but on or before December 31, 2006; and
1506
(B) for a business location that, in 2005, remitted taxes imposed by Title 59, Chapter
1507
12, Sales and Use Tax Act:
1508
(I) in an amount greater than or equal to $15,000 but less than or equal to $500,000, for
1509
amounts expended to purchase computer hardware, software, or programming:
1510
(Aa) to account for sales under the reduced sales and use tax rate imposed on food and
1511
food ingredients; and
1512
(Bb) that were not reimbursed in accordance with Subsection (4) or (5); or
1513
(II) in an amount greater than $500,000, for amounts expended to purchase computer
1514
hardware, software, or programming to account for sales under the reduced sales and use tax
1515
rate imposed on food and food ingredients; and
1516
(iii) in an amount that does not exceed 50% of the verifiable amounts described in
1517
Subsection [(5)] (6)(a)(ii).
1518
(b) If the total amount of requests for reimbursement under Subsection [(5)] (6)(a)
1519
exceed the monies that are available for reimbursement, the State Tax Commission shall
1520
reduce each claim by a pro rata share.
1521
Section 4. Uncodified Section 6, Chapter 282, Laws of Utah 2006 is amended to
1522
read:
1523
Section 6. Effective date.
1524
[This] (1) Except as provided in Subsection (2), this bill takes effect on January 1,
1525
2007.
1526
(2) If approved by two-thirds of all the members elected to each house, the uncodified
1527
Section 5, Appropriation, takes effect on July 1, 2006.
1528
Section 5. Effective date.
1529
(1) Except as provided in Subsection (2), this bill takes effect on January 1, 2007.
1530
(2) If approved by two-thirds of all the members elected to each house, Section 3 of
1531
this bill, which is the uncodified Section 5, Appropriation, in Chapter 282, Laws of Utah 2006,
1532
takes effect on July 1, 2006.
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