Local Sales Tax Modifications

17
59-12-102
59-12-102
59-12-2501
59-12-2502
59-12-2503
59-12-2504
59-12-2505
59-12-2506
0
Local Sales Tax Modifications
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Christine F. Watkins
Senate Sponsor:
LONG TITLE
General Description:
This bill modifies local sales and use tax provisions.
Highlighted Provisions:
This bill:
defines terms;
allows certain municipalities to impose a local option sales and use tax for purposes of
funding infrastructure improvements for the municipality's local law enforcement
agency;
requires a municipality's legislative body to hold a public hearing before approving the
tax;
requires a municipality to deposit tax revenue into a special revenue fund that is separate
from the municipality's general fund;
provides for the reauthorization of a tax at the end of the levy period;
addresses the administration and collection of the tax;
allows the State Tax Commission to retain an administrative charge from collected tax
revenue; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
59-12-102
Effective
05/06/26
Superseded
07/01/26
, as last amended by Laws of Utah
2025, First Special Session, Chapters 9, 12
59-12-102
Effective
07/01/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapters 9, 12
ENACTS:
59-12-2501
Effective
05/06/26
, Utah Code Annotated 1953
59-12-2502
Effective
05/06/26
, Utah Code Annotated 1953
59-12-2503
Effective
05/06/26
, Utah Code Annotated 1953
59-12-2504
Effective
05/06/26
, Utah Code Annotated 1953
59-12-2505
Effective
05/06/26
, Utah Code Annotated 1953
59-12-2506
Effective
05/06/26
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
59-12-102
is amended to read:
59-12-102
Effective
05/06/26
Superseded
07/01/26
. Definitions.
As used in this chapter:
(1)
"800 service" means a telecommunications service that:
(a)
allows a caller to dial a toll-free number without incurring a charge for the call; and
(b)
is typically marketed:
(i)
under the name 800 toll-free calling;
(ii)
under the name 855 toll-free calling;
(iii)
under the name 866 toll-free calling;
(iv)
under the name 877 toll-free calling;
(v)
under the name 888 toll-free calling; or
(vi)
under a name similar to Subsections
(1)(b)(i)
through (v) as designated by the
Federal Communications Commission.
(2)
(a)
"900 service" means an inbound toll telecommunications service that:
(i)
a subscriber purchases;
(ii)
allows a customer of the subscriber described in Subsection
(2)(a)(i)
to call in to
the subscriber's:
(A)
prerecorded announcement; or
(B)
live service; and
(iii)
is typically marketed:
(A)
under the name 900 service; or
(B)
under a name similar to Subsection
(2)(a)(iii)(A)
as designated by the Federal
Communications Commission.
(b)
"900 service" does not include a charge for:
(i)
a collection service a seller of a telecommunications service provides to a
subscriber; or
(ii)
the following a subscriber sells to the subscriber's customer:
(A)
a product; or
(B)
a service.
(3)
(a)
"Adaptive driving equipment" means mobility enhancing equipment:
(i)
to be installed in a motor vehicle; and
(ii)
regardless of who provides the equipment or parts.
(b)
"Adaptive driving equipment" includes:
(i)
a wheelchair or scooter lift;
(ii)
equipment to secure a wheelchair;
(iii)
a swivel seat;
(iv)
a hand or foot control; and
(v)
a steering aid.
(4)
(a)
"Admission or user fees" includes season passes.
(b)
"Admission or user fees" does not include:
(i)
annual membership dues to private organizations; or
(ii)
a lesson, including a lesson that involves as part of the lesson equipment or a
facility listed in Subsection
59-12-103(1)(f)
.
(5)
"Affiliate" or "affiliated person" means a person that, with respect to another person:
(a)
has an ownership interest of more than 5%, whether direct or indirect, in that other
person; or
(b)
is related to the other person because a third person, or a group of third persons who
are affiliated persons with respect to each other, holds an ownership interest of more
than 5%, whether direct or indirect, in the related persons.
(6)
"Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
Agreement after November 12, 2002.
(7)
"Agreement combined tax rate" means the sum of the tax rates:
(a)
listed under Subsection
(8)
; and
(b)
that are imposed within a local taxing jurisdiction.
(8)
"Agreement sales and use tax" means a tax imposed under:
(a)
Subsection
59-12-103(2)(a)(i)(A)
;
(b)
Subsection
59-12-103(2)(b)(i)
;
(c)
Subsection
59-12-103(2)(c)(i)
;
(d)
Subsection
59-12-103(2)(d)
;
(e)
Subsection
59-12-103(2)(f)(i)(A)(I)
;
(f)
Section
59-12-204
;
(g)
Section
59-12-401
;
(h)
Section
59-12-402
;
(i)
Section
59-12-402.1
;
(j)
Section
59-12-703
;
(k)
Section
59-12-802
;
(l)
Section
59-12-804
;
(m)
Section
59-12-1102
;
(n)
Section
59-12-1302
;
(o)
Section
59-12-1402
;
(p)
Section
59-12-1802
;
(q)
Section
59-12-2003
;
(r)
Section
59-12-2103
;
(s)
Section
59-12-2213
;
(t)
Section
59-12-2214
;
(u)
Section
59-12-2215
;
(v)
Section
59-12-2216
;
(w)
Section
59-12-2217
;
(x)
Section
59-12-2218
;
(y)
Section
59-12-2219
;
(z)
Section
59-12-2220
;
or
(aa)
Section
59-12-2402
.
; or
(bb)
Section
59-12-2502
.
(9)
"Aircraft" means the same as that term is defined in Section
72-10-102
.
(10)
"Aircraft maintenance, repair, and overhaul provider" means a business entity:
(a)
except for:
(i)
an airline as defined in Section
59-2-102
; or
(ii)
an affiliated group, as defined in Section
59-7-101
, except that "affiliated group"
includes a corporation that is qualified to do business but is not otherwise doing
business in the state, of an airline; and
(b)
that has the workers, expertise, and facilities to perform the following, regardless of
whether the business entity performs the following in this state:
(i)
check, diagnose, overhaul, and repair:
(A)
an onboard system of a fixed wing turbine powered aircraft; and
(B)
the parts that comprise an onboard system of a fixed wing turbine powered
aircraft;
(ii)
assemble, change, dismantle, inspect, and test a fixed wing turbine powered
aircraft engine;
(iii)
perform at least the following maintenance on a fixed wing turbine powered
aircraft:
(A)
an inspection;
(B)
a repair, including a structural repair or modification;
(C)
changing landing gear; and
(D)
addressing issues related to an aging fixed wing turbine powered aircraft;
(iv)
completely remove the existing paint of a fixed wing turbine powered aircraft
and completely apply new paint to the fixed wing turbine powered aircraft; and
(v)
refurbish the interior of a fixed wing turbine powered aircraft in a manner that
results in a change in the fixed wing turbine powered aircraft's certification
requirements by the authority that certifies the fixed wing turbine powered aircraft.
(11)
"Alcoholic beverage" means a beverage that:
(a)
is suitable for human consumption; and
(b)
contains .5% or more alcohol by volume.
(12)
"Alternative energy" means:
(a)
biomass energy;
(b)
geothermal energy;
(c)
hydroelectric energy;
(d)
solar energy;
(e)
wind energy; or
(f)
energy that is derived from:
(i)
coal-to-liquids;
(ii)
nuclear fuel;
(iii)
oil-impregnated diatomaceous earth;
(iv)
oil sands;
(v)
oil shale;
(vi)
petroleum coke; or
(vii)
waste heat from:
(A)
an industrial facility; or
(B)
a power station in which an electric generator is driven through a process in
which water is heated, turns into steam, and spins a steam turbine.
(13)
(a)
Subject to Subsection
(13)(b)
, "alternative energy electricity production facility"
means a facility that:
(i)
uses alternative energy to produce electricity; and
(ii)
has a production capacity of two megawatts or greater.
(b)
A facility is an alternative energy electricity production facility regardless of whether
the facility is:
(i)
connected to an electric grid; or
(ii)
located on the premises of an electricity consumer.
(14)
(a)
"Ancillary service" means a service associated with, or incidental to, the
provision of telecommunications service.
(b)
"Ancillary service" includes:
(i)
a conference bridging service;
(ii)
a detailed communications billing service;
(iii)
directory assistance;
(iv)
a vertical service; or
(v)
a voice mail service.
(15)
"Area agency on aging" means the same as that term is defined in Section
26B-6-101
.
(16)
"Assisted amusement device" means an amusement device, skill device, or ride device
that is started and stopped by an individual:
(a)
who is not the purchaser or renter of the right to use or operate the amusement
device, skill device, or ride device; and
(b)
at the direction of the seller of the right to use the amusement device, skill device, or
ride device.
(17)
"Assisted cleaning or washing of tangible personal property" means cleaning or
washing of tangible personal property if the cleaning or washing labor is primarily
performed by an individual:
(a)
who is not the purchaser of the cleaning or washing of the tangible personal property;
and
(b)
at the direction of the seller of the cleaning or washing of the tangible personal
property.
(18)
"Authorized carrier" means:
(a)
in the case of vehicles operated over public highways, the holder of credentials
indicating that the vehicle is or will be operated pursuant to both the International
Registration Plan and the International Fuel Tax Agreement;
(b)
in the case of aircraft, the holder of a Federal Aviation Administration operating
certificate or air carrier's operating certificate; or
(c)
in the case of locomotives, freight cars, railroad work equipment, or other rolling
stock, a person who uses locomotives, freight cars, railroad work equipment, or other
rolling stock in more than one state.
(19)
(a)
"Biomass energy" means any of the following that is used as the primary source
of energy to produce fuel or electricity:
(i)
material from a plant or tree; or
(ii)
other organic matter that is available on a renewable basis, including:
(A)
slash and brush from forests and woodlands;
(B)
animal waste;
(C)
waste vegetable oil;
(D)
methane or synthetic gas produced at a landfill, as a byproduct of the
treatment of wastewater residuals, or through the conversion of a waste
material through a nonincineration, thermal conversion process;
(E)
aquatic plants; and
(F)
agricultural products.
(b)
"Biomass energy" does not include:
(i)
black liquor; or
(ii)
treated woods.
(20)
(a)
"Bundled transaction" means the sale of two or more items of tangible personal
property, products, or services if the tangible personal property, products, or services
are:
(i)
distinct and identifiable; and
(ii)
sold for one nonitemized price.
(b)
"Bundled transaction" does not include:
(i)
the sale of tangible personal property if the sales price varies, or is negotiable, on
the basis of the selection by the purchaser of the items of tangible personal
property included in the transaction;
(ii)
the sale of real property;
(iii)
the sale of services to real property;
(iv)
the retail sale of tangible personal property and a service if:
(A)
the tangible personal property:
(I)
is essential to the use of the service; and
(II)
is provided exclusively in connection with the service; and
(B)
the service is the true object of the transaction;
(v)
the retail sale of two services if:
(A)
one service is provided that is essential to the use or receipt of a second
service;
(B)
the first service is provided exclusively in connection with the second service;
and
(C)
the second service is the true object of the transaction;
(vi)
a transaction that includes tangible personal property or a product subject to
taxation under this chapter and tangible personal property or a product that is not
subject to taxation under this chapter if the:
(A)
seller's purchase price of the tangible personal property or product subject to
taxation under this chapter is de minimis; or
(B)
seller's sales price of the tangible personal property or product subject to
taxation under this chapter is de minimis; and
(vii)
the retail sale of tangible personal property that is not subject to taxation under
this chapter and tangible personal property that is subject to taxation under this
chapter if:
(A)
that retail sale includes:
(I)
food and food ingredients;
(II)
a drug;
(III)
durable medical equipment;
(IV)
mobility enhancing equipment;
(V)
an over-the-counter drug;
(VI)
a prosthetic device; or
(VII)
a medical supply; and
(B)
subject to Subsection
(20)(f)
:
(I)
the seller's purchase price of the tangible personal property subject to
taxation under this chapter is 50% or less of the seller's total purchase price
of that retail sale; or
(II)
the seller's sales price of the tangible personal property subject to taxation
under this chapter is 50% or less of the seller's total sales price of that retail
sale.
(c)
(i)
For purposes of Subsection
(20)(a)(i)
, tangible personal property, a product, or
a service that is distinct and identifiable does not include:
(A)
packaging that:
(I)
accompanies the sale of the tangible personal property, product, or service;
and
(II)
is incidental or immaterial to the sale of the tangible personal property,
product, or service;
(B)
tangible personal property, a product, or a service provided free of charge with
the purchase of another item of tangible personal property, a product, or a
service; or
(C)
an item of tangible personal property, a product, or a service included in the
definition of "purchase price."
(ii)
For purposes of Subsection
(20)(c)(i)(B)
, an item of tangible personal property, a
product, or a service is provided free of charge with the purchase of another item
of tangible personal property, a product, or a service if the sales price of the
purchased item of tangible personal property, product, or service does not vary
depending on the inclusion of the tangible personal property, product, or service
provided free of charge.
(d)
(i)
For purposes of Subsection
(20)(a)(ii)
, property sold for one nonitemized price
does not include a price that is separately identified by tangible personal property,
product, or service on the following, regardless of whether the following is in
paper format or electronic format:
(A)
a binding sales document; or
(B)
another supporting sales-related document that is available to a purchaser.
(ii)
For purposes of Subsection
(20)(d)(i)
, a binding sales document or another
supporting sales-related document that is available to a purchaser includes:
(A)
a bill of sale;
(B)
a contract;
(C)
an invoice;
(D)
a lease agreement;
(E)
a periodic notice of rates and services;
(F)
a price list;
(G)
a rate card;
(H)
a receipt; or
(I)
a service agreement.
(e)
(i)
For purposes of Subsection
(20)(b)(vi)
, the sales price of tangible personal
property or a product subject to taxation under this chapter is de minimis if:
(A)
the seller's purchase price of the tangible personal property or product is 10%
or less of the seller's total purchase price of the bundled transaction; or
(B)
the seller's sales price of the tangible personal property or product is 10% or
less of the seller's total sales price of the bundled transaction.
(ii)
For purposes of Subsection
(20)(b)(vi)
, a seller:
(A)
shall use the seller's purchase price or the seller's sales price to determine if
the purchase price or sales price of the tangible personal property or product
subject to taxation under this chapter is de minimis; and
(B)
may not use a combination of the seller's purchase price and the seller's sales
price to determine if the purchase price or sales price of the tangible personal
property or product subject to taxation under this chapter is de minimis.
(iii)
For purposes of Subsection
(20)(b)(vi)
, a seller shall use the full term of a service
contract to determine if the sales price of tangible personal property or a product is
de minimis.
(f)
For purposes of Subsection
(20)(b)(vii)(B)
, a seller may not use a combination of the
seller's purchase price and the seller's sales price to determine if tangible personal
property subject to taxation under this chapter is 50% or less of the seller's total
purchase price or sales price of that retail sale.
(21)
"Car sharing" means the same as that term is defined in Section
13-48a-101
.
(22)
"Car-sharing program" means the same as that term is defined in Section
13-48a-101
.
(23)
"Certified automated system" means software certified by the governing board of the
agreement that:
(a)
calculates the agreement sales and use tax imposed within a local taxing jurisdiction:
(i)
on a transaction; and
(ii)
in the states that are members of the agreement;
(b)
determines the amount of agreement sales and use tax to remit to a state that is a
member of the agreement; and
(c)
maintains a record of the transaction described in Subsection
(23)(a)(i)
.
(24)
"Certified service provider" means an agent certified:
(a)
by the governing board of the agreement; and
(b)
to perform a seller's sales and use tax functions for an agreement sales and use tax, as
outlined in the contract between the governing board of the agreement and the
certified service provider, other than the seller's obligation under Section
59-12-124

to remit a tax on the seller's own purchases.
(25)
(a)
Subject to Subsection
(25)(b)
, "clothing" means all human wearing apparel
suitable for general use.
(b)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission shall make rules:
(i)
listing the items that constitute "clothing"; and
(ii)
that are consistent with the list of items that constitute "clothing" under the
agreement.
(26)
"Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
(27)
"Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels
that does not constitute industrial use under Subsection
(61)
or residential use under
Subsection
(117)
.
(28)
(a)
"Common carrier" means a person engaged in or transacting the business of
transporting passengers, freight, merchandise, or other property for hire within this
state.
(b)
(i)
"Common carrier" does not include a person that, at the time the person is
traveling to or from that person's place of employment, transports a passenger to
or from the passenger's place of employment.
(ii)
For purposes of Subsection
(28)(b)(i)
, in accordance with Title
63G, Chapter 3
,
Utah Administrative Rulemaking Act, the commission may make rules defining
what constitutes a person's place of employment.
(c)
"Common carrier" does not include a person that provides transportation network
services, as defined in Section
13-51-102
.
(29)
"Component part" includes:
(a)
poultry, dairy, and other livestock feed, and their components;
(b)
baling ties and twine used in the baling of hay and straw;
(c)
fuel used for providing temperature control of orchards and commercial greenhouses
doing a majority of their business in wholesale sales, and for providing power for
off-highway type farm machinery; and
(d)
feed, seeds, and seedlings.
(30)
"Computer" means an electronic device that accepts information:
(a)
(i)
in digital form; or
(ii)
in a form similar to digital form; and
(b)
manipulates that information for a result based on a sequence of instructions.
(31)
"Computer software" means a set of coded instructions designed to cause:
(a)
a computer to perform a task; or
(b)
automatic data processing equipment to perform a task.
(32)
"Computer software maintenance contract" means a contract that obligates a seller of
computer software to provide a customer with:
(a)
future updates or upgrades to computer software;
(b)
support services with respect to computer software; or
(c)
a combination of Subsections
(32)(a)
and (b).
(33)
(a)
"Conference bridging service" means an ancillary service that links two or more
participants of an audio conference call or video conference call.
(b)
"Conference bridging service" may include providing a telephone number as part of
the ancillary service described in Subsection
(33)(a)
.
(c)
"Conference bridging service" does not include a telecommunications service used to
reach the ancillary service described in Subsection
(33)(a)
.
(34)
"Construction materials" means any tangible personal property that will be converted
into real property.
(35)
"Delivered electronically" means delivered to a purchaser by means other than tangible
storage media.
(36)
(a)
"Delivery charge" means a charge:
(i)
by a seller of:
(A)
tangible personal property;
(B)
a product transferred electronically; or
(C)
a service; and
(ii)
for preparation and delivery of the tangible personal property, product transferred
electronically, or services described in Subsection
(36)(a)(i)
to a location
designated by the purchaser.
(b)
"Delivery charge" includes a charge for the following:
(i)
transportation;
(ii)
shipping;
(iii)
postage;
(iv)
handling;
(v)
crating; or
(vi)
packing.
(37)
"Detailed telecommunications billing service" means an ancillary service of separately
stating information pertaining to individual calls on a customer's billing statement.
(38)
"Dietary supplement" means a product, other than tobacco, that:
(a)
is intended to supplement the diet;
(b)
contains one or more of the following dietary ingredients:
(i)
a vitamin;
(ii)
a mineral;
(iii)
an herb or other botanical;
(iv)
an amino acid;
(v)
a dietary substance for use by humans to supplement the diet by increasing the
total dietary intake; or
(vi)
a concentrate, metabolite, constituent, extract, or combination of any ingredient
described in Subsections
(38)(b)(i)
through (v);
(c)
(i)
except as provided in Subsection
(38)(c)(ii)
, is intended for ingestion in:
(A)
tablet form;
(B)
capsule form;
(C)
powder form;
(D)
softgel form;
(E)
gelcap form; or
(F)
liquid form; or
(ii)
if the product is not intended for ingestion in a form described in Subsections
(38)(c)(i)(A)
through (F), is not represented:
(A)
as conventional food; and
(B)
for use as a sole item of:
(I)
a meal; or
(II)
the diet; and
(d)
is required to be labeled as a dietary supplement:
(i)
identifiable by the "Supplemental Facts" box found on the label; and
(ii)
as required by 21 C.F.R. Sec. 101.36.
(39)
(a)
"Digital audio work" means a work that results from the fixation of a series of
musical, spoken, or other sounds.
(b)
"Digital audio work" includes a ringtone.
(40)
"Digital audio-visual work" means a series of related images which, when shown in
succession, imparts an impression of motion, together with accompanying sounds, if any.
(41)
"Digital book" means a work that is generally recognized in the ordinary and usual
sense as a book.
(42)
(a)
"Direct mail" means printed material delivered or distributed by United States
mail or other delivery service:
(i)
to:
(A)
a mass audience; or
(B)
addressees on a mailing list provided:
(I)
by a purchaser of the mailing list; or
(II)
at the discretion of the purchaser of the mailing list; and
(ii)
if the cost of the printed material is not billed directly to the recipients.
(b)
"Direct mail" includes tangible personal property supplied directly or indirectly by a
purchaser to a seller of direct mail for inclusion in a package containing the printed
material.
(c)
"Direct mail" does not include multiple items of printed material delivered to a single
address.
(43)
"Directory assistance" means an ancillary service of providing:
(a)
address information; or
(b)
telephone number information.
(44)
(a)
"Disposable home medical equipment or supplies" means medical equipment or
supplies that:
(i)
cannot withstand repeated use; and
(ii)
are purchased by, for, or on behalf of a person other than:
(A)
a health care facility as defined in Section
26B-2-201
;
(B)
a health care provider as defined in Section
78B-3-403
;
(C)
an office of a health care provider described in Subsection
(44)(a)(ii)(B)
; or
(D)
a person similar to a person described in Subsections
(44)(a)(ii)(A)
through
(C).
(b)
"Disposable home medical equipment or supplies" does not include:
(i)
a drug;
(ii)
durable medical equipment;
(iii)
a hearing aid;
(iv)
a hearing aid accessory;
(v)
mobility enhancing equipment; or
(vi)
tangible personal property used to correct impaired vision, including:
(A)
eyeglasses; or
(B)
contact lenses.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes medical equipment or supplies.
(45)
"Drilling equipment manufacturer" means a facility:
(a)
located in the state;
(b)
with respect to which 51% or more of the manufacturing activities of the facility
consist of manufacturing component parts of drilling equipment;
(c)
that uses pressure of 800,000 or more pounds per square inch as part of the
manufacturing process; and
(d)
that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
manufacturing process.
(46)
(a)
"Drug" means a compound, substance, or preparation, or a component of a
compound, substance, or preparation that is:
(i)
recognized in:
(A)
the official United States Pharmacopoeia;
(B)
the official Homeopathic Pharmacopoeia of the United States;
(C)
the official National Formulary; or
(D)
a supplement to a publication listed in Subsections
(46)(a)(i)(A)
through (C);
(ii)
intended for use in the:
(A)
diagnosis of disease;
(B)
cure of disease;
(C)
mitigation of disease;
(D)
treatment of disease; or
(E)
prevention of disease; or
(iii)
intended to affect:
(A)
the structure of the body; or
(B)
any function of the body.
(b)
"Drug" does not include:
(i)
food and food ingredients;
(ii)
a dietary supplement;
(iii)
an alcoholic beverage; or
(iv)
a prosthetic device.
(47)
(a)
"Durable medical equipment" means equipment that:
(i)
can withstand repeated use;
(ii)
is primarily and customarily used to serve a medical purpose;
(iii)
generally is not useful to a person in the absence of illness or injury; and
(iv)
is not worn in or on the body.
(b)
"Durable medical equipment" includes parts used in the repair or replacement of the
equipment described in Subsection
(47)(a)
.
(c)
"Durable medical equipment" does not include mobility enhancing equipment.
(48)
"Electronic" means:
(a)
relating to technology; and
(b)
having:
(i)
electrical capabilities;
(ii)
digital capabilities;
(iii)
magnetic capabilities;
(iv)
wireless capabilities;
(v)
optical capabilities;
(vi)
electromagnetic capabilities; or
(vii)
capabilities similar to Subsections
(48)(b)(i)
through (vi).
(49)
"Electronic financial payment service" means an establishment:
(a)
within NAICS Code 522320, Financial Transactions Processing, Reserve, and
Clearinghouse Activities, of the 2012 North American Industry Classification System
of the federal Executive Office of the President, Office of Management and Budget;
and
(b)
that performs electronic financial payment services.
(50)
"Employee" means the same as that term is defined in Section
59-10-401
.
(51)
"Fixed guideway" means a public transit facility that uses and occupies:
(a)
rail for the use of public transit; or
(b)
a separate right-of-way for the use of public transit.
(52)
"Fixed wing turbine powered aircraft" means an aircraft that:
(a)
is powered by turbine engines;
(b)
operates on jet fuel; and
(c)
has wings that are permanently attached to the fuselage of the aircraft.
(53)
"Fixed wireless service" means a telecommunications service that provides radio
communication between fixed points.
(54)
(a)
"Food and food ingredients" means substances:
(i)
regardless of whether the substances are in:
(A)
liquid form;
(B)
concentrated form;
(C)
solid form;
(D)
frozen form;
(E)
dried form; or
(F)
dehydrated form; and
(ii)
that are:
(A)
sold for:
(I)
ingestion by humans; or
(II)
chewing by humans; and
(B)
consumed for the substance's:
(I)
taste; or
(II)
nutritional value.
(b)
"Food and food ingredients" includes an item described in Subsection
(100)(b)(iii)
.
(c)
"Food and food ingredients" does not include:
(i)
an alcoholic beverage;
(ii)
tobacco; or
(iii)
prepared food.
(55)
(a)
"Fundraising sales" means sales:
(i)
(A)
made by a school; or
(B)
made by a school student;
(ii)
that are for the purpose of raising funds for the school to purchase equipment,
materials, or provide transportation; and
(iii)
that are part of an officially sanctioned school activity.
(b)
For purposes of Subsection
(55)(a)(iii)
, "officially sanctioned school activity" means
a school activity:
(i)
that is conducted in accordance with a formal policy adopted by the school or
school district governing the authorization and supervision of fundraising
activities;
(ii)
that does not directly or indirectly compensate an individual teacher or other
educational personnel by direct payment, commissions, or payment in kind; and
(iii)
the net or gross revenue from which is deposited in a dedicated account
controlled by the school or school district.
(56)
"Geothermal energy" means energy contained in heat that continuously flows outward
from the earth that is used as the sole source of energy to produce electricity.
(57)
"Governing board of the agreement" means the governing board of the agreement that
is:
(a)
authorized to administer the agreement; and
(b)
established in accordance with the agreement.
(58)
(a)
For purposes of Subsection
59-12-104(41)
, "governmental entity" means:
(i)
the executive branch of the state, including all departments, institutions, boards,
divisions, bureaus, offices, commissions, and committees;
(ii)
the judicial branch of the state, including the courts, the Judicial Council, the
Administrative Office of the Courts, and similar administrative units in the
judicial branch;
(iii)
the legislative branch of the state, including the House of Representatives, the
Senate, Legislative Services, the Office of Legislative Research and General
Counsel, the Office of the Legislative Auditor General, and the Office of the
Legislative Fiscal Analyst;
(iv)
the National Guard;
(v)
an independent entity as defined in Section
63E-1-102
; or
(vi)
a political subdivision as defined in Section
17B-1-102
.
(b)
"Governmental entity" does not include the state systems of public and higher
education, including:
(i)
a school;
(ii)
the State Board of Education;
(iii)
the Utah Board of Higher Education; or
(iv)
an institution of higher education listed in Section
53H-1-102
.
(59)
"Hydroelectric energy" means water used as the sole source of energy to produce
electricity.
(60)
"Individual-owned shared vehicle" means the same as that term is defined in Section
13-48a-101
.
(61)
"Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or other
fuels:
(a)
in mining or extraction of minerals;
(b)
in agricultural operations to produce an agricultural product up to the time of harvest
or placing the agricultural product into a storage facility, including:
(i)
commercial greenhouses;
(ii)
irrigation pumps;
(iii)
farm machinery;
(iv)
implements of husbandry as defined in Section
41-1a-102
that are not registered
under Title
41, Chapter 1a, Part 2
, Registration; and
(v)
other farming activities;
(c)
in manufacturing tangible personal property at an establishment described in:
(i)
SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
the federal Executive Office of the President, Office of Management and Budget;
or
(ii)
a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
American Industry Classification System of the federal Executive Office of the
President, Office of Management and Budget;
(d)
by a scrap recycler if:
(i)
from a fixed location, the scrap recycler utilizes machinery or equipment to
process one or more of the following items into prepared grades of processed
materials for use in new products:
(A)
iron;
(B)
steel;
(C)
nonferrous metal;
(D)
paper;
(E)
glass;
(F)
plastic;
(G)
textile; or
(H)
rubber; and
(ii)
the new products under Subsection
(61)(d)(i)
would otherwise be made with
nonrecycled materials; or
(e)
in producing a form of energy or steam described in Subsection
54-2-1(3)(a)
by a
cogeneration facility as defined in Section
54-2-1
.
(62)
(a)
"Installation charge" means a charge for installing:
(i)
tangible personal property; or
(ii)
a product transferred electronically.
(b)
"Installation charge" does not include a charge for:
(i)
repairs or renovations of:
(A)
tangible personal property; or
(B)
a product transferred electronically; or
(ii)
attaching tangible personal property or a product transferred electronically:
(A)
to other tangible personal property; and
(B)
as part of a manufacturing or fabrication process.
(63)
"Institution of higher education" means an institution of higher education listed in
Section
53H-1-102
.
(64)
(a)
"Lease" or "rental" means a transfer of possession or control of tangible personal
property or a product transferred electronically for:
(i)
(A)
a fixed term; or
(B)
an indeterminate term; and
(ii)
consideration.
(b)
"Lease" or "rental" includes:
(i)
an agreement covering a motor vehicle and trailer if the amount of consideration
may be increased or decreased by reference to the amount realized upon sale or
disposition of the property as defined in Section 7701(h)(1), Internal Revenue
Code; and
(ii)
car sharing.
(c)
"Lease" or "rental" does not include:
(i)
a transfer of possession or control of property under a security agreement or
deferred payment plan that requires the transfer of title upon completion of the
required payments;
(ii)
a transfer of possession or control of property under an agreement that requires
the transfer of title:
(A)
upon completion of required payments; and
(B)
if the payment of an option price does not exceed the greater of:
(I)
$100; or
(II)
1% of the total required payments; or
(iii)
providing tangible personal property along with an operator for a fixed period of
time or an indeterminate period of time if the operator is necessary for equipment
to perform as designed.
(d)
For purposes of Subsection
(64)(c)(iii)
, an operator is necessary for equipment to
perform as designed if the operator's duties exceed the:
(i)
set-up of tangible personal property;
(ii)
maintenance of tangible personal property; or
(iii)
inspection of tangible personal property.
(65)
"Lesson" means a fixed period of time for the duration of which a trained instructor:
(a)
is present with a student in person or by video; and
(b)
actively instructs the student, including by providing observation or feedback.
(66)
"Life science establishment" means an establishment in this state that is classified
under the following NAICS codes of the 2007 North American Industry Classification
System of the federal Executive Office of the President, Office of Management and
Budget:
(a)
NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
(b)
NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
Manufacturing; or
(c)
NAICS Code 334517, Irradiation Apparatus Manufacturing.
(67)
"Life science research and development facility" means a facility owned, leased, or
rented by a life science establishment if research and development is performed in 51%
or more of the total area of the facility.
(68)
"Load and leave" means delivery to a purchaser by use of a tangible storage media if
the tangible storage media is not physically transferred to the purchaser.
(69)
"Local taxing jurisdiction" means a:
(a)
county that is authorized to impose an agreement sales and use tax;
(b)
city that is authorized to impose an agreement sales and use tax; or
(c)
town that is authorized to impose an agreement sales and use tax.
(70)
"Manufactured home" means the same as that term is defined in Section
15A-1-302
.
(71)
"Manufacturing facility" means:
(a)
an establishment described in:
(i)
SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
the federal Executive Office of the President, Office of Management and Budget;
or
(ii)
a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
American Industry Classification System of the federal Executive Office of the
President, Office of Management and Budget;
(b)
a scrap recycler if:
(i)
from a fixed location, the scrap recycler utilizes machinery or equipment to
process one or more of the following items into prepared grades of processed
materials for use in new products:
(A)
iron;
(B)
steel;
(C)
nonferrous metal;
(D)
paper;
(E)
glass;
(F)
plastic;
(G)
textile; or
(H)
rubber; and
(ii)
the new products under Subsection
(71)(b)(i)
would otherwise be made with
nonrecycled materials; or
(c)
a cogeneration facility as defined in Section
54-2-1
if the cogeneration facility is
placed in service on or after May 1, 2006.
(72)
(a)
"Marketplace" means a physical or electronic place, platform, or forum where
tangible personal property, a product transferred electronically, or a service is offered
for sale.
(b)
"Marketplace" includes a store, a booth, an Internet website, a catalog, or a dedicated
sales software application.
(73)
(a)
"Marketplace facilitator" means a person, including an affiliate of the person,
that enters into a contract, an agreement, or otherwise with sellers, for consideration,
to facilitate the sale of a seller's product through a marketplace that the person owns,
operates, or controls and that directly or indirectly:
(i)
does any of the following:
(A)
lists, makes available, or advertises tangible personal property, a product
transferred electronically, or a service for sale by a marketplace seller on a
marketplace that the person owns, operates, or controls;
(B)
facilitates the sale of a marketplace seller's tangible personal property, product
transferred electronically, or service by transmitting or otherwise
communicating an offer or acceptance of a retail sale between the marketplace
seller and a purchaser using the marketplace;
(C)
owns, rents, licenses, makes available, or operates any electronic or physical
infrastructure or any property, process, method, copyright, trademark, or patent
that connects a marketplace seller to a purchaser for the purpose of making a
retail sale of tangible personal property, a product transferred electronically, or
a service;
(D)
provides a marketplace for making, or otherwise facilitates, a retail sale of
tangible personal property, a product transferred electronically, or a service,
regardless of ownership or control of the tangible personal property, the
product transferred electronically, or the service that is the subject of the retail
sale;
(E)
provides software development or research and development activities related
to any activity described in this Subsection
(73)(a)(i)
, if the software
development or research and development activity is directly related to the
person's marketplace;
(F)
provides or offers fulfillment or storage services for a marketplace seller;
(G)
sets prices for the sale of tangible personal property, a product transferred
electronically, or a service by a marketplace seller;
(H)
provides or offers customer service to a marketplace seller or a marketplace
seller's purchaser or accepts or assists with taking orders, returns, or exchanges
of tangible personal property, a product transferred electronically, or a service
sold by a marketplace seller on the person's marketplace; or
(I)
brands or otherwise identifies sales as those of the person; and
(ii)
does any of the following:
(A)
collects the sales price or purchase price of a retail sale of tangible personal
property, a product transferred electronically, or a service;
(B)
provides payment processing services for a retail sale of tangible personal
property, a product transferred electronically, or a service;
(C)
charges, collects, or otherwise receives a selling fee, listing fee, referral fee,
closing fee, a fee for inserting or making available tangible personal property, a
product transferred electronically, or a service on the person's marketplace, or
other consideration for the facilitation of a retail sale of tangible personal
property, a product transferred electronically, or a service, regardless of
ownership or control of the tangible personal property, the product transferred
electronically, or the service that is the subject of the retail sale;
(D)
through terms and conditions, an agreement, or another arrangement with a
third person, collects payment from a purchase for a retail sale of tangible
personal property, a product transferred electronically, or a service and
transmits that payment to the marketplace seller, regardless of whether the
third person receives compensation or other consideration in exchange for the
service; or
(E)
provides a virtual currency for a purchaser to use to purchase tangible personal
property, a product transferred electronically, or service offered for sale.
(b)
"Marketplace facilitator" does not include:
(i)
a person that only provides payment processing services; or
(ii)
a person described in Subsection
(73)(a)
to the extent the person is facilitating a
sale for a seller that is a restaurant as defined in Section
59-12-602
.
(74)
"Marketplace seller" means a seller that makes one or more retail sales through a
marketplace that a marketplace facilitator owns, operates, or controls, regardless of
whether the seller is required to be registered to collect and remit the tax under this part.
(75)
"Member of the immediate family of the producer" means a person who is related to a
producer described in Subsection
59-12-104(20)(a)
as a:
(a)
child or stepchild, regardless of whether the child or stepchild is:
(i)
an adopted child or adopted stepchild; or
(ii)
a foster child or foster stepchild;
(b)
grandchild or stepgrandchild;
(c)
grandparent or stepgrandparent;
(d)
nephew or stepnephew;
(e)
niece or stepniece;
(f)
parent or stepparent;
(g)
sibling or stepsibling;
(h)
spouse;
(i)
person who is the spouse of a person described in Subsections
(75)(a)
through (g); or
(j)
person similar to a person described in Subsections
(75)(a)
through (i) as determined
by the commission by rule made in accordance with Title
63G, Chapter 3
, Utah
Administrative Rulemaking Act.
(76)
"Mobile home" means the same as that term is defined in Section
15A-1-302
.
(77)
"Mobile telecommunications service" means the same as that term is defined in the
Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(78)
(a)
"Mobile wireless service" means a telecommunications service, regardless of the
technology used, if:
(i)
the origination point of the conveyance, routing, or transmission is not fixed;
(ii)
the termination point of the conveyance, routing, or transmission is not fixed; or
(iii)
the origination point described in Subsection
(78)(a)(i)
and the termination point
described in Subsection
(78)(a)(ii)
are not fixed.
(b)
"Mobile wireless service" includes a telecommunications service that is provided by
a commercial mobile radio service provider.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define "commercial mobile radio service provider."
(79)
(a)
"Mobility enhancing equipment" means equipment that is:
(i)
primarily and customarily used to provide or increase the ability to move from one
place to another;
(ii)
appropriate for use in a:
(A)
home; or
(B)
motor vehicle; and
(iii)
not generally used by persons with normal mobility.
(b)
"Mobility enhancing equipment" includes parts used in the repair or replacement of
the equipment described in Subsection
(79)(a)
.
(c)
"Mobility enhancing equipment" does not include:
(i)
a motor vehicle;
(ii)
equipment on a motor vehicle if that equipment is normally provided by the
motor vehicle manufacturer;
(iii)
durable medical equipment; or
(iv)
a prosthetic device.
(80)
"Model 1 seller" means a seller registered under the agreement that has selected a
certified service provider as the seller's agent to perform the seller's sales and use tax
functions for agreement sales and use taxes, as outlined in the contract between the
governing board of the agreement and the certified service provider, other than the
seller's obligation under Section
59-12-124
to remit a tax on the seller's own purchases.
(81)
"Model 2 seller" means a seller registered under the agreement that:
(a)
except as provided in Subsection
(81)(b)
, has selected a certified automated system
to perform the seller's sales tax functions for agreement sales and use taxes; and
(b)
retains responsibility for remitting all of the sales tax:
(i)
collected by the seller; and
(ii)
to the appropriate local taxing jurisdiction.
(82)
(a)
Subject to Subsection
(82)(b)
, "model 3 seller" means a seller registered under
the agreement that has:
(i)
sales in at least five states that are members of the agreement;
(ii)
total annual sales revenue of at least $500,000,000;
(iii)
a proprietary system that calculates the amount of tax:
(A)
for an agreement sales and use tax; and
(B)
due to each local taxing jurisdiction; and
(iv)
entered into a performance agreement with the governing board of the agreement.
(b)
For purposes of Subsection
(82)(a)
, "model 3 seller" includes an affiliated group of
sellers using the same proprietary system.
(83)
"Model 4 seller" means a seller that is registered under the agreement and is not a
model 1 seller, model 2 seller, or model 3 seller.
(84)
"Modular home" means a modular unit as defined in Section
15A-1-302
.
(85)
"Motor vehicle" means the same as that term is defined in Section
41-1a-102
.
(86)
"Oil sands" means impregnated bituminous sands that:
(a)
contain a heavy, thick form of petroleum that is released when heated, mixed with
other hydrocarbons, or otherwise treated;
(b)
yield mixtures of liquid hydrocarbon; and
(c)
require further processing other than mechanical blending before becoming finished
petroleum products.
(87)
"Oil shale" means a group of fine black to dark brown shales containing kerogen
material that yields petroleum upon heating and distillation.
(88)
"Optional computer software maintenance contract" means a computer software
maintenance contract that a customer is not obligated to purchase as a condition to the
retail sale of computer software.
(89)
(a)
"Other fuels" means products that burn independently to produce heat or energy.
(b)
"Other fuels" includes oxygen when it is used in the manufacturing of tangible
personal property.
(90)
(a)
"Paging service" means a telecommunications service that provides transmission
of a coded radio signal for the purpose of activating a specific pager.
(b)
For purposes of Subsection
(90)(a)
, the transmission of a coded radio signal includes
a transmission by message or sound.
(91)
"Pawn transaction" means the same as that term is defined in Section
13-32a-102
.
(92)
"Pawnbroker" means the same as that term is defined in Section
13-32a-102
.
(93)
(a)
"Permanently attached to real property" means that for tangible personal property
attached to real property:
(i)
the attachment of the tangible personal property to the real property:
(A)
is essential to the use of the tangible personal property; and
(B)
suggests that the tangible personal property will remain attached to the real
property in the same place over the useful life of the tangible personal
property; or
(ii)
if the tangible personal property is detached from the real property, the
detachment would:
(A)
cause substantial damage to the tangible personal property; or
(B)
require substantial alteration or repair of the real property to which the
tangible personal property is attached.
(b)
"Permanently attached to real property" includes:
(i)
the attachment of an accessory to the tangible personal property if the accessory is:
(A)
essential to the operation of the tangible personal property; and
(B)
attached only to facilitate the operation of the tangible personal property;
(ii)
a temporary detachment of tangible personal property from real property for a
repair or renovation if the repair or renovation is performed where the tangible
personal property and real property are located; or
(iii)
property attached to oil, gas, or water pipelines, except for the property listed in
Subsection
(93)(c)(iii)
or (iv).
(c)
"Permanently attached to real property" does not include:
(i)
the attachment of portable or movable tangible personal property to real property
if that portable or movable tangible personal property is attached to real property
only for:
(A)
convenience;
(B)
stability; or
(C)
for an obvious temporary purpose;
(ii)
the detachment of tangible personal property from real property except for the
detachment described in Subsection
(93)(b)(ii)
;
(iii)
an attachment of the following tangible personal property to real property if the
attachment to real property is only through a line that supplies water, electricity,
gas, telecommunications, cable, or supplies a similar item as determined by the
commission by rule made in accordance with Title
63G, Chapter 3
, Utah
Administrative Rulemaking Act:
(A)
a computer;
(B)
a telephone;
(C)
a television; or
(D)
tangible personal property similar to Subsections
(93)(c)(iii)(A)
through (C)
as determined by the commission by rule made in accordance with Title
63G,
Chapter 3
, Utah Administrative Rulemaking Act; or
(iv)
an item listed in Subsection
(139)(c)
.
(94)
"Person" includes any individual, firm, partnership, joint venture, association,
corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
municipality, district, or other local governmental entity of the state, or any group or
combination acting as a unit.
(95)
"Place of primary use":
(a)
for telecommunications service other than mobile telecommunications service,
means the street address representative of where the customer's use of the
telecommunications service primarily occurs, which shall be:
(i)
the residential street address of the customer; or
(ii)
the primary business street address of the customer; or
(b)
for mobile telecommunications service, means the same as that term is defined in the
Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(96)
(a)
"Postpaid calling service" means a telecommunications service a person obtains
by making a payment on a call-by-call basis:
(i)
through the use of a:
(A)
bank card;
(B)
credit card;
(C)
debit card; or
(D)
travel card; or
(ii)
by a charge made to a telephone number that is not associated with the origination
or termination of the telecommunications service.
(b)
"Postpaid calling service" includes a service, except for a prepaid wireless calling
service, that would be a prepaid wireless calling service if the service were
exclusively a telecommunications service.
(97)
"Postproduction" means an activity related to the finishing or duplication of a medium
described in Subsection
59-12-104(54)(a)
.
(98)
"Prepaid calling service" means a telecommunications service:
(a)
that allows a purchaser access to telecommunications service that is exclusively
telecommunications service;
(b)
that:
(i)
is paid for in advance; and
(ii)
enables the origination of a call using an:
(A)
access number; or
(B)
authorization code;
(c)
that is dialed:
(i)
manually; or
(ii)
electronically; and
(d)
sold in predetermined units or dollars that decline:
(i)
by a known amount; and
(ii)
with use.
(99)
"Prepaid wireless calling service" means a telecommunications service:
(a)
that provides the right to utilize:
(i)
mobile wireless service; and
(ii)
other service that is not a telecommunications service, including:
(A)
the download of a product transferred electronically;
(B)
a content service; or
(C)
an ancillary service;
(b)
that:
(i)
is paid for in advance; and
(ii)
enables the origination of a call using an:
(A)
access number; or
(B)
authorization code;
(c)
that is dialed:
(i)
manually; or
(ii)
electronically; and
(d)
sold in predetermined units or dollars that decline:
(i)
by a known amount; and
(ii)
with use.
(100)
(a)
"Prepared food" means:
(i)
food:
(A)
sold in a heated state; or
(B)
heated by a seller;
(ii)
two or more food ingredients mixed or combined by the seller for sale as a single
item; or
(iii)
except as provided in Subsection
(100)(c)
, food sold with an eating utensil
provided by the seller, including a:
(A)
plate;
(B)
knife;
(C)
fork;
(D)
spoon;
(E)
glass;
(F)
cup;
(G)
napkin; or
(H)
straw.
(b)
"Prepared food" does not include:
(i)
food that a seller only:
(A)
cuts;
(B)
repackages; or
(C)
pasteurizes;
(ii)
(A)
the following:
(I)
raw egg;
(II)
raw fish;
(III)
raw meat;
(IV)
raw poultry; or
(V)
a food containing an item described in Subsections
(100)(b)(ii)(A)(I)

through (IV); and
(B)
if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of
the Food and Drug Administration's Food Code that a consumer cook the items
described in Subsection
(100)(b)(ii)(A)
to prevent food borne illness; or
(iii)
the following if sold without eating utensils provided by the seller:
(A)
food and food ingredients sold by a seller if the seller's proper primary
classification under the 2002 North American Industry Classification System
of the federal Executive Office of the President, Office of Management and
Budget, is manufacturing in Sector 311, Food Manufacturing, except for
Subsector 3118, Bakeries and Tortilla Manufacturing;
(B)
food and food ingredients sold in an unheated state:
(I)
by weight or volume; and
(II)
as a single item; or
(C)
a bakery item, including:
(I)
a bagel;
(II)
a bar;
(III)
a biscuit;
(IV)
bread;
(V)
a bun;
(VI)
a cake;
(VII)
a cookie;
(VIII)
a croissant;
(IX)
a danish;
(X)
a donut;
(XI)
a muffin;
(XII)
a pastry;
(XIII)
a pie;
(XIV)
a roll;
(XV)
a tart;
(XVI)
a torte; or
(XVII)
a tortilla.
(c)
An eating utensil provided by the seller does not include the following used to
transport the food:
(i)
a container; or
(ii)
packaging.
(101)
"Prescription" means an order, formula, or recipe that is issued:
(a)
(i)
orally;
(ii)
in writing;
(iii)
electronically; or
(iv)
by any other manner of transmission; and
(b)
by a licensed practitioner authorized by the laws of a state.
(102)
(a)
"Prewritten computer software" means computer software that is not designed
and developed:
(i)
by the author or other creator of the computer software; and
(ii)
to the specifications of a specific purchaser.
(b)
"Prewritten computer software" includes:
(i)
a prewritten upgrade to computer software if the prewritten upgrade to the
computer software is not designed and developed:
(A)
by the author or other creator of the computer software; and
(B)
to the specifications of a specific purchaser;
(ii)
computer software designed and developed by the author or other creator of the
computer software to the specifications of a specific purchaser if the computer
software is sold to a person other than the purchaser; or
(iii)
except as provided in Subsection
(102)(c)
, prewritten computer software or a
prewritten portion of prewritten computer software:
(A)
that is modified or enhanced to any degree; and
(B)
if the modification or enhancement described in Subsection
(102)(b)(iii)(A)
is
designed and developed to the specifications of a specific purchaser.
(c)
"Prewritten computer software" does not include a modification or enhancement
described in Subsection
(102)(b)(iii)
if the charges for the modification or
enhancement are:
(i)
reasonable; and
(ii)
subject to Subsections
59-12-103(2)(f)(ii)
and (2)(g)(i), separately stated on the
invoice or other statement of price provided to the purchaser at the time of sale or
later, as demonstrated by:
(A)
the books and records the seller keeps at the time of the transaction in the
regular course of business, including books and records the seller keeps at the
time of the transaction in the regular course of business for nontax purposes;
(B)
a preponderance of the facts and circumstances at the time of the transaction;
and
(C)
the understanding of all of the parties to the transaction.
(103)
(a)
"Private communications service" means a telecommunications service:
(i)
that entitles a customer to exclusive or priority use of one or more
communications channels between or among termination points; and
(ii)
regardless of the manner in which the one or more communications channels are
connected.
(b)
"Private communications service" includes the following provided in connection
with the use of one or more communications channels:
(i)
an extension line;
(ii)
a station;
(iii)
switching capacity; or
(iv)
another associated service that is provided in connection with the use of one or
more communications channels as defined in Section
59-12-215
.
(104)
(a)
"Product transferred electronically" means a product transferred electronically
that would be subject to a tax under this chapter if that product was transferred in a
manner other than electronically.
(b)
"Product transferred electronically" does not include:
(i)
an ancillary service;
(ii)
computer software; or
(iii)
a telecommunications service.
(105)
(a)
"Prosthetic device" means a device that is worn on or in the body to:
(i)
artificially replace a missing portion of the body;
(ii)
prevent or correct a physical deformity or physical malfunction; or
(iii)
support a weak or deformed portion of the body.
(b)
"Prosthetic device" includes:
(i)
parts used in the repairs or renovation of a prosthetic device;
(ii)
replacement parts for a prosthetic device;
(iii)
a dental prosthesis; or
(iv)
a hearing aid.
(c)
"Prosthetic device" does not include:
(i)
corrective eyeglasses; or
(ii)
contact lenses.
(106)
(a)
"Protective equipment" means an item:
(i)
for human wear; and
(ii)
that is:
(A)
designed as protection:
(I)
to the wearer against injury or disease; or
(II)
against damage or injury of other persons or property; and
(B)
not suitable for general use.
(b)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission shall make rules:
(i)
listing the items that constitute "protective equipment"; and
(ii)
that are consistent with the list of items that constitute "protective equipment"
under the agreement.
(107)
(a)
For purposes of Subsection
59-12-104(41)
, "publication" means any written or
printed matter, other than a photocopy:
(i)
regardless of:
(A)
characteristics;
(B)
copyright;
(C)
form;
(D)
format;
(E)
method of reproduction; or
(F)
source; and
(ii)
made available in printed or electronic format.
(b)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define the term "photocopy."
(108)
(a)
"Purchase price" and "sales price" mean the total amount of consideration:
(i)
valued in money; and
(ii)
for which tangible personal property, a product transferred electronically, or
services are:
(A)
sold;
(B)
leased; or
(C)
rented.
(b)
"Purchase price" and "sales price" include:
(i)
the seller's cost of the tangible personal property, a product transferred
electronically, or services sold;
(ii)
expenses of the seller, including:
(A)
the cost of materials used;
(B)
a labor cost;
(C)
a service cost;
(D)
interest;
(E)
a loss;
(F)
the cost of transportation to the seller; or
(G)
a tax imposed on the seller;
(iii)
a charge by the seller for any service necessary to complete the sale; or
(iv)
consideration a seller receives from a person other than the purchaser if:
(A)
(I)
the seller actually receives consideration from a person other than the
purchaser; and
(II)
the consideration described in Subsection
(108)(b)(iv)(A)(I)
is directly
related to a price reduction or discount on the sale;
(B)
the seller has an obligation to pass the price reduction or discount through to
the purchaser;
(C)
the amount of the consideration attributable to the sale is fixed and
determinable by the seller at the time of the sale to the purchaser; and
(D)
(I)
(Aa)
the purchaser presents a certificate, coupon, or other
documentation to the seller to claim a price reduction or discount; and
(Bb)
a person other than the seller authorizes, distributes, or grants the
certificate, coupon, or other documentation with the understanding that
the person other than the seller will reimburse any seller to whom the
certificate, coupon, or other documentation is presented;
(II)
the purchaser identifies that purchaser to the seller as a member of a group
or organization allowed a price reduction or discount, except that a
preferred customer card that is available to any patron of a seller does not
constitute membership in a group or organization allowed a price reduction
or discount; or
(III)
the price reduction or discount is identified as a third party price reduction
or discount on the:
(Aa)
invoice the purchaser receives; or
(Bb)
certificate, coupon, or other documentation the purchaser presents.
(c)
"Purchase price" and "sales price" do not include:
(i)
a discount:
(A)
in a form including:
(I)
cash;
(II)
term; or
(III)
coupon;
(B)
that is allowed by a seller;
(C)
taken by a purchaser on a sale; and
(D)
that is not reimbursed by a third party; or
(ii)
subject to Subsections
59-12-103(2)(f)(ii)
and (2)(g)(i), the following if
separately stated on an invoice, bill of sale, or similar document provided to the
purchaser at the time of sale or later, as demonstrated by the books and records the
seller keeps at the time of the transaction in the regular course of business,
including books and records the seller keeps at the time of the transaction in the
regular course of business for nontax purposes, by a preponderance of the facts
and circumstances at the time of the transaction, and by the understanding of all of
the parties to the transaction:
(A)
the following from credit extended on the sale of tangible personal property or
services:
(I)
a carrying charge;
(II)
a financing charge; or
(III)
an interest charge;
(B)
a delivery charge;
(C)
an installation charge;
(D)
a manufacturer rebate on a motor vehicle; or
(E)
a tax or fee legally imposed directly on the consumer.
(109)
"Purchaser" means a person to whom:
(a)
a sale of tangible personal property is made;
(b)
a product is transferred electronically; or
(c)
a service is furnished.
(110)
"Qualifying data center" means a data center facility that:
(a)
houses a group of networked server computers in one physical location in order to
disseminate, manage, and store data and information;
(b)
is located in the state;
(c)
is a new operation constructed on or after July 1, 2016;
(d)
consists of one or more buildings that total 150,000 or more square feet;
(e)
is owned or leased by:
(i)
the operator of the data center facility; or
(ii)
a person under common ownership, as defined in Section
59-7-101
, of the
operator of the data center facility; and
(f)
is located on one or more parcels of land that are owned or leased by:
(i)
the operator of the data center facility; or
(ii)
a person under common ownership, as defined in Section
59-7-101
, of the
operator of the data center facility.
(111)
"Qualifying energy storage manufacturing facility" means a facility that
manufactures, in the state, equipment or devices that store and discharge energy for the
purpose of providing electrical power.
(112)
"Regularly rented" means:
(a)
rented to a guest for value three or more times during a calendar year; or
(b)
advertised or held out to the public as a place that is regularly rented to guests for
value.
(113)
"Rental" means the same as that term is defined in Subsection
(64)
.
(114)
(a)
"Repairs or renovations of tangible personal property" means:
(i)
a repair or renovation of tangible personal property that is not permanently
attached to real property; or
(ii)
attaching tangible personal property or a product transferred electronically to
other tangible personal property or detaching tangible personal property or a
product transferred electronically from other tangible personal property if:
(A)
the other tangible personal property to which the tangible personal property or
product transferred electronically is attached or from which the tangible
personal property or product transferred electronically is detached is not
permanently attached to real property; and
(B)
the attachment of tangible personal property or a product transferred
electronically to other tangible personal property or detachment of tangible
personal property or a product transferred electronically from other tangible
personal property is made in conjunction with a repair or replacement of
tangible personal property or a product transferred electronically.
(b)
"Repairs or renovations of tangible personal property" does not include:
(i)
attaching prewritten computer software to other tangible personal property if the
other tangible personal property to which the prewritten computer software is
attached is not permanently attached to real property; or
(ii)
detaching prewritten computer software from other tangible personal property if
the other tangible personal property from which the prewritten computer software
is detached is not permanently attached to real property.
(115)
"Research and development" means the process of inquiry or experimentation aimed
at the discovery of facts, devices, technologies, or applications and the process of
preparing those devices, technologies, or applications for marketing.
(116)
(a)
"Residential telecommunications services" means a telecommunications service
or an ancillary service that is provided to an individual for personal use:
(i)
at a residential address; or
(ii)
at an institution, including a nursing home or a school, if the telecommunications
service or ancillary service is provided to and paid for by the individual residing at
the institution rather than the institution.
(b)
For purposes of Subsection
(116)(a)(i)
, a residential address includes an:
(i)
apartment; or
(ii)
other individual dwelling unit.
(117)
"Residential use" means the use in or around a home, apartment building, sleeping
quarters, and similar facilities or accommodations.
(118)
"Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other than:
(a)
resale;
(b)
sublease; or
(c)
subrent.
(119)
(a)
"Retailer" means any person, unless prohibited by the Constitution of the
United States or federal law, that is engaged in a regularly organized business in
tangible personal property or any other taxable transaction under Subsection
59-12-103(1)
, and who is selling to the user or consumer and not for resale.
(b)
"Retailer" includes commission merchants, auctioneers, and any person regularly
engaged in the business of selling to users or consumers within the state.
(120)
(a)
"Sale" means any transfer of title, exchange, or barter, conditional or otherwise,
in any manner, of tangible personal property or any other taxable transaction under
Subsection
59-12-103(1)
, for consideration.
(b)
"Sale" includes:
(i)
installment and credit sales;
(ii)
any closed transaction constituting a sale;
(iii)
any sale of electrical energy, gas, services, or entertainment taxable under this
chapter;
(iv)
any transaction if the possession of property is transferred but the seller retains
the title as security for the payment of the price; and
(v)
any transaction under which right to possession, operation, or use of any article of
tangible personal property is granted under a lease or contract and the transfer of
possession would be taxable if an outright sale were made.
(121)
"Sale at retail" means the same as that term is defined in Subsection
(118)
.
(122)
"Sale-leaseback transaction" means a transaction by which title to tangible personal
property or a product transferred electronically that is subject to a tax under this chapter
is transferred:
(a)
by a purchaser-lessee;
(b)
to a lessor;
(c)
for consideration; and
(d)
if:
(i)
the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial
purchase of the tangible personal property or product transferred electronically;
(ii)
the sale of the tangible personal property or product transferred electronically to
the lessor is intended as a form of financing:
(A)
for the tangible personal property or product transferred electronically; and
(B)
to the purchaser-lessee; and
(iii)
in accordance with generally accepted accounting principles, the
purchaser-lessee is required to:
(A)
capitalize the tangible personal property or product transferred electronically
for financial reporting purposes; and
(B)
account for the lease payments as payments made under a financing
arrangement.
(123)
"Sales price" means the same as that term is defined in Subsection
(108)
.
(124)
(a)
"Sales relating to schools" means the following sales by, amounts paid to, or
amounts charged by a school:
(i)
sales that are directly related to the school's educational functions or activities
including:
(A)
the sale of:
(I)
textbooks;
(II)
textbook fees;
(III)
laboratory fees;
(IV)
laboratory supplies; or
(V)
safety equipment;
(B)
the sale of a uniform, protective equipment, or sports or recreational
equipment that:
(I)
a student is specifically required to wear as a condition of participation in a
school-related event or school-related activity; and
(II)
is not readily adaptable to general or continued usage to the extent that it
takes the place of ordinary clothing;
(C)
sales of the following if the net or gross revenue generated by the sales is
deposited into a school district fund or school fund dedicated to school meals:
(I)
food and food ingredients; or
(II)
prepared food; or
(D)
transportation charges for official school activities; or
(ii)
amounts paid to or amounts charged by a school for admission to a school-related
event or school-related activity.
(b)
"Sales relating to schools" does not include:
(i)
bookstore sales of items that are not educational materials or supplies;
(ii)
except as provided in Subsection
(124)(a)(i)(B)
:
(A)
clothing;
(B)
clothing accessories or equipment;
(C)
protective equipment; or
(D)
sports or recreational equipment; or
(iii)
amounts paid to or amounts charged by a school for admission to a
school-related event or school-related activity if the amounts paid or charged are
passed through to a person:
(A)
other than a:
(I)
school;
(II)
nonprofit organization authorized by a school board or a governing body of
a private school to organize and direct a competitive secondary school
activity; or
(III)
nonprofit association authorized by a school board or a governing body of
a private school to organize and direct a competitive secondary school
activity; and
(B)
that is required to collect sales and use taxes under this chapter.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may make rules defining the term "passed through."
(125)
For purposes of this section and Section
59-12-104
, "school" means:
(a)
an elementary school or a secondary school that:
(i)
is a:
(A)
public school; or
(B)
private school; and
(ii)
provides instruction for one or more grades kindergarten through 12; or
(b)
a public school district.
(126)
(a)
"Seller" means a person that makes a sale, lease, or rental of:
(i)
tangible personal property;
(ii)
a product transferred electronically; or
(iii)
a service.
(b)
"Seller" includes a marketplace facilitator.
(127)
(a)
"Semiconductor fabricating, processing, research, or development materials"
means tangible personal property or a product transferred electronically if the
tangible personal property or product transferred electronically is:
(i)
used primarily in the process of:
(A)
(I)
manufacturing a semiconductor;
(II)
fabricating a semiconductor; or
(III)
research or development of a:
(Aa)
semiconductor; or
(Bb)
semiconductor manufacturing process; or
(B)
maintaining an environment suitable for a semiconductor; or
(ii)
consumed primarily in the process of:
(A)
(I)
manufacturing a semiconductor;
(II)
fabricating a semiconductor; or
(III)
research or development of a:
(Aa)
semiconductor; or
(Bb)
semiconductor manufacturing process; or
(B)
maintaining an environment suitable for a semiconductor.
(b)
"Semiconductor fabricating, processing, research, or development materials"
includes:
(i)
parts used in the repairs or renovations of tangible personal property or a product
transferred electronically described in Subsection
(127)(a)
; or
(ii)
a chemical, catalyst, or other material used to:
(A)
produce or induce in a semiconductor a:
(I)
chemical change; or
(II)
physical change;
(B)
remove impurities from a semiconductor; or
(C)
improve the marketable condition of a semiconductor.
(128)
"Senior citizen center" means a facility having the primary purpose of providing
services to the aged as defined in Section
26B-6-101
.
(129)
"Shared vehicle" means the same as that term is defined in Section
13-48a-101
.
(130)
"Shared vehicle driver" means the same as that term is defined in Section
13-48a-101
.
(131)
"Shared vehicle owner" means the same as that term is defined in Section
13-48a-101
.
(132)
(a)
Subject to Subsections
(132)(b)
and (c), "short-term lodging consumable"
means tangible personal property that:
(i)
a business that provides accommodations and services described in Subsection
59-12-103(1)(i)
purchases as part of a transaction to provide the accommodations
and services to a purchaser;
(ii)
is intended to be consumed by the purchaser; and
(iii)
is:
(A)
included in the purchase price of the accommodations and services; and
(B)
not separately stated on an invoice, bill of sale, or other similar document
provided to the purchaser.
(b)
"Short-term lodging consumable" includes:
(i)
a beverage;
(ii)
a brush or comb;
(iii)
a cosmetic;
(iv)
a hair care product;
(v)
lotion;
(vi)
a magazine;
(vii)
makeup;
(viii)
a meal;
(ix)
mouthwash;
(x)
nail polish remover;
(xi)
a newspaper;
(xii)
a notepad;
(xiii)
a pen;
(xiv)
a pencil;
(xv)
a razor;
(xvi)
saline solution;
(xvii)
a sewing kit;
(xviii)
shaving cream;
(xix)
a shoe shine kit;
(xx)
a shower cap;
(xxi)
a snack item;
(xxii)
soap;
(xxiii)
toilet paper;
(xxiv)
a toothbrush;
(xxv)
toothpaste; or
(xxvi)
an item similar to Subsections
(132)(b)(i)
through (xxv) as the commission
may provide by rule made in accordance with Title
63G, Chapter 3
, Utah
Administrative Rulemaking Act.
(c)
"Short-term lodging consumable" does not include:
(i)
tangible personal property that is cleaned or washed to allow the tangible personal
property to be reused; or
(ii)
a product transferred electronically.
(133)
(a)
"Short-term rental" means a lease or rental for less than 30 consecutive days.
(b)
"Short-term rental" does not include car sharing.
(134)
"Simplified electronic return" means the electronic return:
(a)
described in Section 318(C) of the agreement; and
(b)
approved by the governing board of the agreement.
(135)
"Solar energy" means the sun used as the sole source of energy for producing
electricity.
(136)
(a)
"Sports or recreational equipment" means an item:
(i)
designed for human use; and
(ii)
that is:
(A)
worn in conjunction with:
(I)
an athletic activity; or
(II)
a recreational activity; and
(B)
not suitable for general use.
(b)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission shall make rules:
(i)
listing the items that constitute "sports or recreational equipment"; and
(ii)
that are consistent with the list of items that constitute "sports or recreational
equipment" under the agreement.
(137)
"State" means the state of Utah, its departments, and agencies.
(138)
"Storage" means any keeping or retention of tangible personal property or any other
taxable transaction under Subsection
59-12-103(1)
, in this state for any purpose except
sale in the regular course of business.
(139)
(a)
"Tangible personal property" means personal property that:
(i)
may be:
(A)
seen;
(B)
weighed;
(C)
measured;
(D)
felt; or
(E)
touched; or
(ii)
is in any manner perceptible to the senses.
(b)
"Tangible personal property" includes:
(i)
electricity;
(ii)
water;
(iii)
gas;
(iv)
steam; or
(v)
prewritten computer software, regardless of the manner in which the prewritten
computer software is transferred.
(c)
"Tangible personal property" includes the following regardless of whether the item is
attached to real property:
(i)
a dishwasher;
(ii)
a dryer;
(iii)
a freezer;
(iv)
a microwave;
(v)
a refrigerator;
(vi)
a stove;
(vii)
a washer; or
(viii)
an item similar to Subsections
(139)(c)(i)
through (vii) as determined by the
commission by rule made in accordance with Title
63G, Chapter 3
, Utah
Administrative Rulemaking Act.
(d)
"Tangible personal property" does not include a product that is transferred
electronically.
(e)
"Tangible personal property" does not include the following if attached to real
property, regardless of whether the attachment to real property is only through a line
that supplies water, electricity, gas, telephone, cable, or supplies a similar item as
determined by the commission by rule made in accordance with Title
63G, Chapter 3
,
Utah Administrative Rulemaking Act:
(i)
a hot water heater;
(ii)
a water filtration system; or
(iii)
a water softener system.
(140)
(a)
"Telecommunications enabling or facilitating equipment, machinery, or
software" means an item listed in Subsection
(140)(b)
if that item is purchased or
leased primarily to enable or facilitate one or more of the following to function:
(i)
telecommunications switching or routing equipment, machinery, or software; or
(ii)
telecommunications transmission equipment, machinery, or software.
(b)
The following apply to Subsection
(140)(a)
:
(i)
a pole;
(ii)
software;
(iii)
a supplementary power supply;
(iv)
temperature or environmental equipment or machinery;
(v)
test equipment;
(vi)
a tower; or
(vii)
equipment, machinery, or software that functions similarly to an item listed in
Subsections
(140)(b)(i)
through (vi) as determined by the commission by rule
made in accordance with Subsection
(140)(c)
.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes equipment, machinery, or software
that functions similarly to an item listed in Subsections
(140)(b)(i)
through (vi).
(141)
"Telecommunications equipment, machinery, or software required for 911 service"
means equipment, machinery, or software that is required to comply with 47 C.F.R. Sec.
20.18.
(142)
"Telecommunications maintenance or repair equipment, machinery, or software"
means equipment, machinery, or software purchased or leased primarily to maintain or
repair one or more of the following, regardless of whether the equipment, machinery, or
software is purchased or leased as a spare part or as an upgrade or modification to one or
more of the following:
(a)
telecommunications enabling or facilitating equipment, machinery, or software;
(b)
telecommunications switching or routing equipment, machinery, or software; or
(c)
telecommunications transmission equipment, machinery, or software.
(143)
(a)
"Telecommunications service" means the electronic conveyance, routing, or
transmission of audio, data, video, voice, or any other information or signal to a
point, or among or between points.
(b)
"Telecommunications service" includes:
(i)
an electronic conveyance, routing, or transmission with respect to which a
computer processing application is used to act:
(A)
on the code, form, or protocol of the content;
(B)
for the purpose of electronic conveyance, routing, or transmission; and
(C)
regardless of whether the service:
(I)
is referred to as voice over Internet protocol service; or
(II)
is classified by the Federal Communications Commission as enhanced or
value added;
(ii)
an 800 service;
(iii)
a 900 service;
(iv)
a fixed wireless service;
(v)
a mobile wireless service;
(vi)
a postpaid calling service;
(vii)
a prepaid calling service;
(viii)
a prepaid wireless calling service; or
(ix)
a private communications service.
(c)
"Telecommunications service" does not include:
(i)
advertising, including directory advertising;
(ii)
an ancillary service;
(iii)
a billing and collection service provided to a third party;
(iv)
a data processing and information service if:
(A)
the data processing and information service allows data to be:
(I)
(Aa)
acquired;
(Bb)
generated;
(Cc)
processed;
(Dd)
retrieved; or
(Ee)
stored; and
(II)
delivered by an electronic transmission to a purchaser; and
(B)
the purchaser's primary purpose for the underlying transaction is the processed
data or information;
(v)
installation or maintenance of the following on a customer's premises:
(A)
equipment; or
(B)
wiring;
(vi)
Internet access service;
(vii)
a paging service;
(viii)
a product transferred electronically, including:
(A)
music;
(B)
reading material;
(C)
a ring tone;
(D)
software; or
(E)
video;
(ix)
a radio and television audio and video programming service:
(A)
regardless of the medium; and
(B)
including:
(I)
furnishing conveyance, routing, or transmission of a television audio and
video programming service by a programming service provider;
(II)
cable service as defined in 47 U.S.C. Sec. 522(6); or
(III)
audio and video programming services delivered by a commercial mobile
radio service provider as defined in 47 C.F.R. Sec. 20.3;
(x)
a value-added nonvoice data service; or
(xi)
tangible personal property.
(144)
(a)
"Telecommunications service provider" means a person that:
(i)
owns, controls, operates, or manages a telecommunications service; and
(ii)
engages in an activity described in Subsection
(144)(a)(i)
for the shared use with
or resale to any person of the telecommunications service.
(b)
A person described in Subsection
(144)(a)
is a telecommunications service provider
whether or not the Public Service Commission of Utah regulates:
(i)
that person; or
(ii)
the telecommunications service that the person owns, controls, operates, or
manages.
(145)
(a)
"Telecommunications switching or routing equipment, machinery, or software"
means an item listed in Subsection
(145)(b)
if that item is purchased or leased
primarily for switching or routing:
(i)
an ancillary service;
(ii)
data communications;
(iii)
voice communications; or
(iv)
telecommunications service.
(b)
The following apply to Subsection
(145)(a)
:
(i)
a bridge;
(ii)
a computer;
(iii)
a cross connect;
(iv)
a modem;
(v)
a multiplexer;
(vi)
plug in circuitry;
(vii)
a router;
(viii)
software;
(ix)
a switch; or
(x)
equipment, machinery, or software that functions similarly to an item listed in
Subsections
(145)(b)(i)
through (ix) as determined by the commission by rule
made in accordance with Subsection
(145)(c)
.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes equipment, machinery, or software
that functions similarly to an item listed in Subsections
(145)(b)(i)
through (ix).
(146)
(a)
"Telecommunications transmission equipment, machinery, or software" means
an item listed in Subsection
(146)(b)
if that item is purchased or leased primarily for
sending, receiving, or transporting:
(i)
an ancillary service;
(ii)
data communications;
(iii)
voice communications; or
(iv)
telecommunications service.
(b)
The following apply to Subsection
(146)(a)
:
(i)
an amplifier;
(ii)
a cable;
(iii)
a closure;
(iv)
a conduit;
(v)
a controller;
(vi)
a duplexer;
(vii)
a filter;
(viii)
an input device;
(ix)
an input/output device;
(x)
an insulator;
(xi)
microwave machinery or equipment;
(xii)
an oscillator;
(xiii)
an output device;
(xiv)
a pedestal;
(xv)
a power converter;
(xvi)
a power supply;
(xvii)
a radio channel;
(xviii)
a radio receiver;
(xix)
a radio transmitter;
(xx)
a repeater;
(xxi)
software;
(xxii)
a terminal;
(xxiii)
a timing unit;
(xxiv)
a transformer;
(xxv)
a wire; or
(xxvi)
equipment, machinery, or software that functions similarly to an item listed in
Subsections
(146)(b)(i)
through (xxv) as the commission determines by rule made
in accordance with Subsection
(146)(c)
.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes equipment, machinery, or software
that functions similarly to an item listed in Subsections
(146)(b)(i)
through (xxv).
(147)
(a)
"Textbook for a higher education course" means a textbook or other printed
material that is required for a course:
(i)
offered by an institution of higher education; and
(ii)
that the purchaser of the textbook or other printed material attends or will attend.
(b)
"Textbook for a higher education course" includes a textbook in electronic format.
(148)
"Tobacco" means:
(a)
a cigarette;
(b)
a cigar;
(c)
chewing tobacco;
(d)
pipe tobacco; or
(e)
any other item that contains tobacco.
(149)
"Unassisted amusement device" means an amusement device, skill device, or ride
device that is started and stopped by the purchaser or renter of the right to use or operate
the amusement device, skill device, or ride device.
(150)
(a)
"Use" means the exercise of any right or power over tangible personal property,
a product transferred electronically, or a service under Subsection
59-12-103(1)
,
incident to the ownership or the leasing of that tangible personal property, product
transferred electronically, or service.
(b)
"Use" does not include the sale, display, demonstration, or trial of tangible personal
property, a product transferred electronically, or a service in the regular course of
business and held for resale.
(151)
"Value-added nonvoice data service" means a service:
(a)
that otherwise meets the definition of a telecommunications service except that a
computer processing application is used to act primarily for a purpose other than
conveyance, routing, or transmission; and
(b)
with respect to which a computer processing application is used to act on data or
information:
(i)
code;
(ii)
content;
(iii)
form; or
(iv)
protocol.
(152)
(a)
Subject to Subsection
(152)(b)
, "vehicle" means the following that are required
to be titled, registered, or titled and registered:
(i)
an aircraft as defined in Section
72-10-102
;
(ii)
a vehicle as defined in Section
41-1a-102
;
(iii)
an off-highway vehicle as defined in Section
41-22-2
; or
(iv)
a vessel as defined in Section
41-1a-102
.
(b)
For purposes of Subsection
59-12-104(33)
only, "vehicle" includes:
(i)
a vehicle described in Subsection
(152)(a)
; or
(ii)
(A)
a locomotive;
(B)
a freight car;
(C)
railroad work equipment; or
(D)
other railroad rolling stock.
(153)
"Vehicle dealer" means a person engaged in the business of buying, selling, or
exchanging a vehicle as defined in Subsection
(152)
.
(154)
(a)
"Vertical service" means an ancillary service that:
(i)
is offered in connection with one or more telecommunications services; and
(ii)
offers an advanced calling feature that allows a customer to:
(A)
identify a caller; and
(B)
manage multiple calls and call connections.
(b)
"Vertical service" includes an ancillary service that allows a customer to manage a
conference bridging service.
(155)
(a)
"Voice mail service" means an ancillary service that enables a customer to
receive, send, or store a recorded message.
(b)
"Voice mail service" does not include a vertical service that a customer is required to
have in order to utilize a voice mail service.
(156)
(a)
"Waste energy facility" means a facility that generates electricity:
(i)
using as the primary source of energy waste materials that would be placed in a
landfill or refuse pit if it were not used to generate electricity, including:
(A)
tires;
(B)
waste coal;
(C)
oil shale; or
(D)
municipal solid waste; and
(ii)
in amounts greater than actually required for the operation of the facility.
(b)
"Waste energy facility" does not include a facility that incinerates:
(i)
hospital waste as defined in 40 C.F.R. 60.51c; or
(ii)
medical/infectious waste as defined in 40 C.F.R. 60.51c.
(157)
"Watercraft" means a vessel as defined in Section
73-18-2
.
(158)
"Wind energy" means wind used as the sole source of energy to produce electricity.
(159)
"ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
location by the United States Postal Service.
Section 2. Section
59-12-102
is amended to read:
59-12-102
Effective
07/01/26
. Definitions.
As used in this chapter:
(1)
"800 service" means a telecommunications service that:
(a)
allows a caller to dial a toll-free number without incurring a charge for the call; and
(b)
is typically marketed:
(i)
under the name 800 toll-free calling;
(ii)
under the name 855 toll-free calling;
(iii)
under the name 866 toll-free calling;
(iv)
under the name 877 toll-free calling;
(v)
under the name 888 toll-free calling; or
(vi)
under a name similar to Subsections
(1)(b)(i)
through (v) as designated by the
Federal Communications Commission.
(2)
(a)
"900 service" means an inbound toll telecommunications service that:
(i)
a subscriber purchases;
(ii)
allows a customer of the subscriber described in Subsection
(2)(a)(i)
to call in to
the subscriber's:
(A)
prerecorded announcement; or
(B)
live service; and
(iii)
is typically marketed:
(A)
under the name 900 service; or
(B)
under a name similar to Subsection
(2)(a)(iii)(A)
as designated by the Federal
Communications Commission.
(b)
"900 service" does not include a charge for:
(i)
a collection service a seller of a telecommunications service provides to a
subscriber; or
(ii)
the following a subscriber sells to the subscriber's customer:
(A)
a product; or
(B)
a service.
(3)
(a)
"Adaptive driving equipment" means mobility enhancing equipment:
(i)
to be installed in a motor vehicle; and
(ii)
regardless of who provides the equipment or parts.
(b)
"Adaptive driving equipment" includes:
(i)
a wheelchair or scooter lift;
(ii)
equipment to secure a wheelchair;
(iii)
a swivel seat;
(iv)
a hand or foot control; and
(v)
a steering aid.
(4)
(a)
"Admission or user fees" includes season passes.
(b)
"Admission or user fees" does not include:
(i)
annual membership dues to private organizations; or
(ii)
a lesson, including a lesson that involves as part of the lesson equipment or a
facility listed in Subsection
59-12-103(1)(f)
.
(5)
"Affiliate" or "affiliated person" means a person that, with respect to another person:
(a)
has an ownership interest of more than 5%, whether direct or indirect, in that other
person; or
(b)
is related to the other person because a third person, or a group of third persons who
are affiliated persons with respect to each other, holds an ownership interest of more
than 5%, whether direct or indirect, in the related persons.
(6)
"Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
Agreement after November 12, 2002.
(7)
"Agreement combined tax rate" means the sum of the tax rates:
(a)
listed under Subsection
(8)
; and
(b)
that are imposed within a local taxing jurisdiction.
(8)
"Agreement sales and use tax" means a tax imposed under:
(a)
Subsection
59-12-103(2)(a)(i)(A)
;
(b)
Subsection
59-12-103(2)(a)(i)(B)
;
(c)
Subsection
59-12-103(2)(b)(i)
;
(d)
Subsection
59-12-103(2)(c)(i)
;
(e)
Subsection
59-12-103(2)(d)
;
(f)
Subsection
59-12-103(2)(e)(i)(A)
;
(g)
Section
59-12-204
;
(h)
Section
59-12-401
;
(i)
Section
59-12-402
;
(j)
Section
59-12-402.1
;
(k)
Section
59-12-703
;
(l)
Section
59-12-802
;
(m)
Section
59-12-804
;
(n)
Section
59-12-1102
;
(o)
Section
59-12-1302
;
(p)
Section
59-12-1402
;
(q)
Section
59-12-1802
;
(r)
Section
59-12-2003
;
(s)
Section
59-12-2103
;
(t)
Section
59-12-2213
;
(u)
Section
59-12-2214
;
(v)
Section
59-12-2215
;
(w)
Section
59-12-2216
;
(x)
Section
59-12-2217
;
(y)
Section
59-12-2218
;
(z)
Section
59-12-2219
;
(aa)
Section
59-12-2220
;
or
(bb)
Section
59-12-2402
.
; or
(cc)
Section
59-12-2502
.
(9)
"Aircraft" means the same as that term is defined in Section
72-10-102
.
(10)
"Aircraft maintenance, repair, and overhaul provider" means a business entity:
(a)
except for:
(i)
an airline as defined in Section
59-2-102
; or
(ii)
an affiliated group, as defined in Section
59-7-101
, except that "affiliated group"
includes a corporation that is qualified to do business but is not otherwise doing
business in the state, of an airline; and
(b)
that has the workers, expertise, and facilities to perform the following, regardless of
whether the business entity performs the following in this state:
(i)
check, diagnose, overhaul, and repair:
(A)
an onboard system of a fixed wing turbine powered aircraft; and
(B)
the parts that comprise an onboard system of a fixed wing turbine powered
aircraft;
(ii)
assemble, change, dismantle, inspect, and test a fixed wing turbine powered
aircraft engine;
(iii)
perform at least the following maintenance on a fixed wing turbine powered
aircraft:
(A)
an inspection;
(B)
a repair, including a structural repair or modification;
(C)
changing landing gear; and
(D)
addressing issues related to an aging fixed wing turbine powered aircraft;
(iv)
completely remove the existing paint of a fixed wing turbine powered aircraft
and completely apply new paint to the fixed wing turbine powered aircraft; and
(v)
refurbish the interior of a fixed wing turbine powered aircraft in a manner that
results in a change in the fixed wing turbine powered aircraft's certification
requirements by the authority that certifies the fixed wing turbine powered aircraft.
(11)
"Alcoholic beverage" means a beverage that:
(a)
is suitable for human consumption; and
(b)
contains .5% or more alcohol by volume.
(12)
"Alternative energy" means:
(a)
biomass energy;
(b)
geothermal energy;
(c)
hydroelectric energy;
(d)
solar energy;
(e)
wind energy; or
(f)
energy that is derived from:
(i)
coal-to-liquids;
(ii)
nuclear fuel;
(iii)
oil-impregnated diatomaceous earth;
(iv)
oil sands;
(v)
oil shale;
(vi)
petroleum coke; or
(vii)
waste heat from:
(A)
an industrial facility; or
(B)
a power station in which an electric generator is driven through a process in
which water is heated, turns into steam, and spins a steam turbine.
(13)
(a)
Subject to Subsection
(13)(b)
, "alternative energy electricity production facility"
means a facility that:
(i)
uses alternative energy to produce electricity; and
(ii)
has a production capacity of two megawatts or greater.
(b)
A facility is an alternative energy electricity production facility regardless of whether
the facility is:
(i)
connected to an electric grid; or
(ii)
located on the premises of an electricity consumer.
(14)
(a)
"Ancillary service" means a service associated with, or incidental to, the
provision of telecommunications service.
(b)
"Ancillary service" includes:
(i)
a conference bridging service;
(ii)
a detailed communications billing service;
(iii)
directory assistance;
(iv)
a vertical service; or
(v)
a voice mail service.
(15)
"Area agency on aging" means the same as that term is defined in Section
26B-6-101
.
(16)
"Assisted amusement device" means an amusement device, skill device, or ride device
that is started and stopped by an individual:
(a)
who is not the purchaser or renter of the right to use or operate the amusement
device, skill device, or ride device; and
(b)
at the direction of the seller of the right to use the amusement device, skill device, or
ride device.
(17)
"Assisted cleaning or washing of tangible personal property" means cleaning or
washing of tangible personal property if the cleaning or washing labor is primarily
performed by an individual:
(a)
who is not the purchaser of the cleaning or washing of the tangible personal property;
and
(b)
at the direction of the seller of the cleaning or washing of the tangible personal
property.
(18)
"Authorized carrier" means:
(a)
in the case of vehicles operated over public highways, the holder of credentials
indicating that the vehicle is or will be operated pursuant to both the International
Registration Plan and the International Fuel Tax Agreement;
(b)
in the case of aircraft, the holder of a Federal Aviation Administration operating
certificate or air carrier's operating certificate; or
(c)
in the case of locomotives, freight cars, railroad work equipment, or other rolling
stock, a person who uses locomotives, freight cars, railroad work equipment, or other
rolling stock in more than one state.
(19)
(a)
"Biomass energy" means any of the following that is used as the primary source
of energy to produce fuel or electricity:
(i)
material from a plant or tree; or
(ii)
other organic matter that is available on a renewable basis, including:
(A)
slash and brush from forests and woodlands;
(B)
animal waste;
(C)
waste vegetable oil;
(D)
methane or synthetic gas produced at a landfill, as a byproduct of the
treatment of wastewater residuals, or through the conversion of a waste
material through a nonincineration, thermal conversion process;
(E)
aquatic plants; and
(F)
agricultural products.
(b)
"Biomass energy" does not include:
(i)
black liquor; or
(ii)
treated woods.
(20)
(a)
"Bundled transaction" means the sale of two or more items of tangible personal
property, products, or services if the tangible personal property, products, or services
are:
(i)
distinct and identifiable; and
(ii)
sold for one nonitemized price.
(b)
"Bundled transaction" does not include:
(i)
the sale of tangible personal property if the sales price varies, or is negotiable, on
the basis of the selection by the purchaser of the items of tangible personal
property included in the transaction;
(ii)
the sale of real property;
(iii)
the sale of services to real property;
(iv)
the retail sale of tangible personal property and a service if:
(A)
the tangible personal property:
(I)
is essential to the use of the service; and
(II)
is provided exclusively in connection with the service; and
(B)
the service is the true object of the transaction;
(v)
the retail sale of two services if:
(A)
one service is provided that is essential to the use or receipt of a second
service;
(B)
the first service is provided exclusively in connection with the second service;
and
(C)
the second service is the true object of the transaction;
(vi)
a transaction that includes tangible personal property or a product subject to
taxation under this chapter and tangible personal property or a product that is not
subject to taxation under this chapter if the:
(A)
seller's purchase price of the tangible personal property or product subject to
taxation under this chapter is de minimis; or
(B)
seller's sales price of the tangible personal property or product subject to
taxation under this chapter is de minimis; and
(vii)
the retail sale of tangible personal property that is not subject to taxation under
this chapter and tangible personal property that is subject to taxation under this
chapter if:
(A)
that retail sale includes:
(I)
food and food ingredients;
(II)
a drug;
(III)
durable medical equipment;
(IV)
mobility enhancing equipment;
(V)
an over-the-counter drug;
(VI)
a prosthetic device; or
(VII)
a medical supply; and
(B)
subject to Subsection
(20)(f)
:
(I)
the seller's purchase price of the tangible personal property subject to
taxation under this chapter is 50% or less of the seller's total purchase price
of that retail sale; or
(II)
the seller's sales price of the tangible personal property subject to taxation
under this chapter is 50% or less of the seller's total sales price of that retail
sale.
(c)
(i)
For purposes of Subsection
(20)(a)(i)
, tangible personal property, a product, or
a service that is distinct and identifiable does not include:
(A)
packaging that:
(I)
accompanies the sale of the tangible personal property, product, or service;
and
(II)
is incidental or immaterial to the sale of the tangible personal property,
product, or service;
(B)
tangible personal property, a product, or a service provided free of charge with
the purchase of another item of tangible personal property, a product, or a
service; or
(C)
an item of tangible personal property, a product, or a service included in the
definition of "purchase price."
(ii)
For purposes of Subsection
(20)(c)(i)(B)
, an item of tangible personal property, a
product, or a service is provided free of charge with the purchase of another item
of tangible personal property, a product, or a service if the sales price of the
purchased item of tangible personal property, product, or service does not vary
depending on the inclusion of the tangible personal property, product, or service
provided free of charge.
(d)
(i)
For purposes of Subsection
(20)(a)(ii)
, property sold for one nonitemized price
does not include a price that is separately identified by tangible personal property,
product, or service on the following, regardless of whether the following is in
paper format or electronic format:
(A)
a binding sales document; or
(B)
another supporting sales-related document that is available to a purchaser.
(ii)
For purposes of Subsection
(20)(d)(i)
, a binding sales document or another
supporting sales-related document that is available to a purchaser includes:
(A)
a bill of sale;
(B)
a contract;
(C)
an invoice;
(D)
a lease agreement;
(E)
a periodic notice of rates and services;
(F)
a price list;
(G)
a rate card;
(H)
a receipt; or
(I)
a service agreement.
(e)
(i)
For purposes of Subsection
(20)(b)(vi)
, the sales price of tangible personal
property or a product subject to taxation under this chapter is de minimis if:
(A)
the seller's purchase price of the tangible personal property or product is 10%
or less of the seller's total purchase price of the bundled transaction; or
(B)
the seller's sales price of the tangible personal property or product is 10% or
less of the seller's total sales price of the bundled transaction.
(ii)
For purposes of Subsection
(20)(b)(vi)
, a seller:
(A)
shall use the seller's purchase price or the seller's sales price to determine if
the purchase price or sales price of the tangible personal property or product
subject to taxation under this chapter is de minimis; and
(B)
may not use a combination of the seller's purchase price and the seller's sales
price to determine if the purchase price or sales price of the tangible personal
property or product subject to taxation under this chapter is de minimis.
(iii)
For purposes of Subsection
(20)(b)(vi)
, a seller shall use the full term of a service
contract to determine if the sales price of tangible personal property or a product is
de minimis.
(f)
For purposes of Subsection
(20)(b)(vii)(B)
, a seller may not use a combination of the
seller's purchase price and the seller's sales price to determine if tangible personal
property subject to taxation under this chapter is 50% or less of the seller's total
purchase price or sales price of that retail sale.
(21)
"Car sharing" means the same as that term is defined in Section
13-48a-101
.
(22)
"Car-sharing program" means the same as that term is defined in Section
13-48a-101
.
(23)
"Certified automated system" means software certified by the governing board of the
agreement that:
(a)
calculates the agreement sales and use tax imposed within a local taxing jurisdiction:
(i)
on a transaction; and
(ii)
in the states that are members of the agreement;
(b)
determines the amount of agreement sales and use tax to remit to a state that is a
member of the agreement; and
(c)
maintains a record of the transaction described in Subsection
(23)(a)(i)
.
(24)
"Certified service provider" means an agent certified:
(a)
by the governing board of the agreement; and
(b)
to perform a seller's sales and use tax functions for an agreement sales and use tax, as
outlined in the contract between the governing board of the agreement and the
certified service provider, other than the seller's obligation under Section
59-12-124

to remit a tax on the seller's own purchases.
(25)
(a)
Subject to Subsection
(25)(b)
, "clothing" means all human wearing apparel
suitable for general use.
(b)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission shall make rules:
(i)
listing the items that constitute "clothing"; and
(ii)
that are consistent with the list of items that constitute "clothing" under the
agreement.
(26)
"Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
(27)
"Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels
that does not constitute industrial use under Subsection
(61)
or residential use under
Subsection
(117)
.
(28)
(a)
"Common carrier" means a person engaged in or transacting the business of
transporting passengers, freight, merchandise, or other property for hire within this
state.
(b)
(i)
"Common carrier" does not include a person that, at the time the person is
traveling to or from that person's place of employment, transports a passenger to
or from the passenger's place of employment.
(ii)
For purposes of Subsection
(28)(b)(i)
, in accordance with Title
63G, Chapter 3
,
Utah Administrative Rulemaking Act, the commission may make rules defining
what constitutes a person's place of employment.
(c)
"Common carrier" does not include a person that provides transportation network
services, as defined in Section
13-51-102
.
(29)
"Component part" includes:
(a)
poultry, dairy, and other livestock feed, and their components;
(b)
baling ties and twine used in the baling of hay and straw;
(c)
fuel used for providing temperature control of orchards and commercial greenhouses
doing a majority of their business in wholesale sales, and for providing power for
off-highway type farm machinery; and
(d)
feed, seeds, and seedlings.
(30)
"Computer" means an electronic device that accepts information:
(a)
(i)
in digital form; or
(ii)
in a form similar to digital form; and
(b)
manipulates that information for a result based on a sequence of instructions.
(31)
"Computer software" means a set of coded instructions designed to cause:
(a)
a computer to perform a task; or
(b)
automatic data processing equipment to perform a task.
(32)
"Computer software maintenance contract" means a contract that obligates a seller of
computer software to provide a customer with:
(a)
future updates or upgrades to computer software;
(b)
support services with respect to computer software; or
(c)
a combination of Subsections
(32)(a)
and (b).
(33)
(a)
"Conference bridging service" means an ancillary service that links two or more
participants of an audio conference call or video conference call.
(b)
"Conference bridging service" may include providing a telephone number as part of
the ancillary service described in Subsection
(33)(a)
.
(c)
"Conference bridging service" does not include a telecommunications service used to
reach the ancillary service described in Subsection
(33)(a)
.
(34)
"Construction materials" means any tangible personal property that will be converted
into real property.
(35)
"Delivered electronically" means delivered to a purchaser by means other than tangible
storage media.
(36)
(a)
"Delivery charge" means a charge:
(i)
by a seller of:
(A)
tangible personal property;
(B)
a product transferred electronically; or
(C)
a service; and
(ii)
for preparation and delivery of the tangible personal property, product transferred
electronically, or services described in Subsection
(36)(a)(i)
to a location
designated by the purchaser.
(b)
"Delivery charge" includes a charge for the following:
(i)
transportation;
(ii)
shipping;
(iii)
postage;
(iv)
handling;
(v)
crating; or
(vi)
packing.
(37)
"Detailed telecommunications billing service" means an ancillary service of separately
stating information pertaining to individual calls on a customer's billing statement.
(38)
"Dietary supplement" means a product, other than tobacco, that:
(a)
is intended to supplement the diet;
(b)
contains one or more of the following dietary ingredients:
(i)
a vitamin;
(ii)
a mineral;
(iii)
an herb or other botanical;
(iv)
an amino acid;
(v)
a dietary substance for use by humans to supplement the diet by increasing the
total dietary intake; or
(vi)
a concentrate, metabolite, constituent, extract, or combination of any ingredient
described in Subsections
(38)(b)(i)
through (v);
(c)
(i)
except as provided in Subsection
(38)(c)(ii)
, is intended for ingestion in:
(A)
tablet form;
(B)
capsule form;
(C)
powder form;
(D)
softgel form;
(E)
gelcap form; or
(F)
liquid form; or
(ii)
if the product is not intended for ingestion in a form described in Subsections
(38)(c)(i)(A)
through (F), is not represented:
(A)
as conventional food; and
(B)
for use as a sole item of:
(I)
a meal; or
(II)
the diet; and
(d)
is required to be labeled as a dietary supplement:
(i)
identifiable by the "Supplemental Facts" box found on the label; and
(ii)
as required by 21 C.F.R. Sec. 101.36.
(39)
(a)
"Digital audio work" means a work that results from the fixation of a series of
musical, spoken, or other sounds.
(b)
"Digital audio work" includes a ringtone.
(40)
"Digital audio-visual work" means a series of related images which, when shown in
succession, imparts an impression of motion, together with accompanying sounds, if any.
(41)
"Digital book" means a work that is generally recognized in the ordinary and usual
sense as a book.
(42)
(a)
"Direct mail" means printed material delivered or distributed by United States
mail or other delivery service:
(i)
to:
(A)
a mass audience; or
(B)
addressees on a mailing list provided:
(I)
by a purchaser of the mailing list; or
(II)
at the discretion of the purchaser of the mailing list; and
(ii)
if the cost of the printed material is not billed directly to the recipients.
(b)
"Direct mail" includes tangible personal property supplied directly or indirectly by a
purchaser to a seller of direct mail for inclusion in a package containing the printed
material.
(c)
"Direct mail" does not include multiple items of printed material delivered to a single
address.
(43)
"Directory assistance" means an ancillary service of providing:
(a)
address information; or
(b)
telephone number information.
(44)
(a)
"Disposable home medical equipment or supplies" means medical equipment or
supplies that:
(i)
cannot withstand repeated use; and
(ii)
are purchased by, for, or on behalf of a person other than:
(A)
a health care facility as defined in Section
26B-2-201
;
(B)
a health care provider as defined in Section
78B-3-403
;
(C)
an office of a health care provider described in Subsection
(44)(a)(ii)(B)
; or
(D)
a person similar to a person described in Subsections
(44)(a)(ii)(A)
through
(C).
(b)
"Disposable home medical equipment or supplies" does not include:
(i)
a drug;
(ii)
durable medical equipment;
(iii)
a hearing aid;
(iv)
a hearing aid accessory;
(v)
mobility enhancing equipment; or
(vi)
tangible personal property used to correct impaired vision, including:
(A)
eyeglasses; or
(B)
contact lenses.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes medical equipment or supplies.
(45)
"Drilling equipment manufacturer" means a facility:
(a)
located in the state;
(b)
with respect to which 51% or more of the manufacturing activities of the facility
consist of manufacturing component parts of drilling equipment;
(c)
that uses pressure of 800,000 or more pounds per square inch as part of the
manufacturing process; and
(d)
that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
manufacturing process.
(46)
(a)
"Drug" means a compound, substance, or preparation, or a component of a
compound, substance, or preparation that is:
(i)
recognized in:
(A)
the official United States Pharmacopoeia;
(B)
the official Homeopathic Pharmacopoeia of the United States;
(C)
the official National Formulary; or
(D)
a supplement to a publication listed in Subsections
(46)(a)(i)(A)
through (C);
(ii)
intended for use in the:
(A)
diagnosis of disease;
(B)
cure of disease;
(C)
mitigation of disease;
(D)
treatment of disease; or
(E)
prevention of disease; or
(iii)
intended to affect:
(A)
the structure of the body; or
(B)
any function of the body.
(b)
"Drug" does not include:
(i)
food and food ingredients;
(ii)
a dietary supplement;
(iii)
an alcoholic beverage; or
(iv)
a prosthetic device.
(47)
(a)
"Durable medical equipment" means equipment that:
(i)
can withstand repeated use;
(ii)
is primarily and customarily used to serve a medical purpose;
(iii)
generally is not useful to a person in the absence of illness or injury; and
(iv)
is not worn in or on the body.
(b)
"Durable medical equipment" includes parts used in the repair or replacement of the
equipment described in Subsection
(47)(a)
.
(c)
"Durable medical equipment" does not include mobility enhancing equipment.
(48)
"Electronic" means:
(a)
relating to technology; and
(b)
having:
(i)
electrical capabilities;
(ii)
digital capabilities;
(iii)
magnetic capabilities;
(iv)
wireless capabilities;
(v)
optical capabilities;
(vi)
electromagnetic capabilities; or
(vii)
capabilities similar to Subsections
(48)(b)(i)
through (vi).
(49)
"Electronic financial payment service" means an establishment:
(a)
within NAICS Code 522320, Financial Transactions Processing, Reserve, and
Clearinghouse Activities, of the 2012 North American Industry Classification System
of the federal Executive Office of the President, Office of Management and Budget;
and
(b)
that performs electronic financial payment services.
(50)
"Employee" means the same as that term is defined in Section
59-10-401
.
(51)
"Fixed guideway" means a public transit facility that uses and occupies:
(a)
rail for the use of public transit; or
(b)
a separate right-of-way for the use of public transit.
(52)
"Fixed wing turbine powered aircraft" means an aircraft that:
(a)
is powered by turbine engines;
(b)
operates on jet fuel; and
(c)
has wings that are permanently attached to the fuselage of the aircraft.
(53)
"Fixed wireless service" means a telecommunications service that provides radio
communication between fixed points.
(54)
(a)
"Food and food ingredients" means substances:
(i)
regardless of whether the substances are in:
(A)
liquid form;
(B)
concentrated form;
(C)
solid form;
(D)
frozen form;
(E)
dried form; or
(F)
dehydrated form; and
(ii)
that are:
(A)
sold for:
(I)
ingestion by humans; or
(II)
chewing by humans; and
(B)
consumed for the substance's:
(I)
taste; or
(II)
nutritional value.
(b)
"Food and food ingredients" includes an item described in Subsection
(100)(b)(iii)
.
(c)
"Food and food ingredients" does not include:
(i)
an alcoholic beverage;
(ii)
tobacco; or
(iii)
prepared food.
(55)
(a)
"Fundraising sales" means sales:
(i)
(A)
made by a school; or
(B)
made by a school student;
(ii)
that are for the purpose of raising funds for the school to purchase equipment,
materials, or provide transportation; and
(iii)
that are part of an officially sanctioned school activity.
(b)
For purposes of Subsection
(55)(a)(iii)
, "officially sanctioned school activity" means
a school activity:
(i)
that is conducted in accordance with a formal policy adopted by the school or
school district governing the authorization and supervision of fundraising
activities;
(ii)
that does not directly or indirectly compensate an individual teacher or other
educational personnel by direct payment, commissions, or payment in kind; and
(iii)
the net or gross revenue from which is deposited in a dedicated account
controlled by the school or school district.
(56)
"Geothermal energy" means energy contained in heat that continuously flows outward
from the earth that is used as the sole source of energy to produce electricity.
(57)
"Governing board of the agreement" means the governing board of the agreement that
is:
(a)
authorized to administer the agreement; and
(b)
established in accordance with the agreement.
(58)
(a)
For purposes of Subsection
59-12-104(41)
, "governmental entity" means:
(i)
the executive branch of the state, including all departments, institutions, boards,
divisions, bureaus, offices, commissions, and committees;
(ii)
the judicial branch of the state, including the courts, the Judicial Council, the
Administrative Office of the Courts, and similar administrative units in the
judicial branch;
(iii)
the legislative branch of the state, including the House of Representatives, the
Senate, Legislative Services, the Office of Legislative Research and General
Counsel, the Office of the Legislative Auditor General, and the Office of the
Legislative Fiscal Analyst;
(iv)
the National Guard;
(v)
an independent entity as defined in Section
63E-1-102
; or
(vi)
a political subdivision as defined in Section
17B-1-102
.
(b)
"Governmental entity" does not include the state systems of public and higher
education, including:
(i)
a school;
(ii)
the State Board of Education;
(iii)
the Utah Board of Higher Education; or
(iv)
an institution of higher education listed in Section
53H-1-102
.
(59)
"Hydroelectric energy" means water used as the sole source of energy to produce
electricity.
(60)
"Individual-owned shared vehicle" means the same as that term is defined in Section
13-48a-101
.
(61)
"Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or other
fuels:
(a)
in mining or extraction of minerals;
(b)
in agricultural operations to produce an agricultural product up to the time of harvest
or placing the agricultural product into a storage facility, including:
(i)
commercial greenhouses;
(ii)
irrigation pumps;
(iii)
farm machinery;
(iv)
implements of husbandry as defined in Section
41-1a-102
that are not registered
under Title
41, Chapter 1a, Part 2
, Registration; and
(v)
other farming activities;
(c)
in manufacturing tangible personal property at an establishment described in:
(i)
SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
the federal Executive Office of the President, Office of Management and Budget;
or
(ii)
a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
American Industry Classification System of the federal Executive Office of the
President, Office of Management and Budget;
(d)
by a scrap recycler if:
(i)
from a fixed location, the scrap recycler utilizes machinery or equipment to
process one or more of the following items into prepared grades of processed
materials for use in new products:
(A)
iron;
(B)
steel;
(C)
nonferrous metal;
(D)
paper;
(E)
glass;
(F)
plastic;
(G)
textile; or
(H)
rubber; and
(ii)
the new products under Subsection
(61)(d)(i)
would otherwise be made with
nonrecycled materials; or
(e)
in producing a form of energy or steam described in Subsection
54-2-1(3)(a)
by a
cogeneration facility as defined in Section
54-2-1
.
(62)
(a)
"Installation charge" means a charge for installing:
(i)
tangible personal property; or
(ii)
a product transferred electronically.
(b)
"Installation charge" does not include a charge for:
(i)
repairs or renovations of:
(A)
tangible personal property; or
(B)
a product transferred electronically; or
(ii)
attaching tangible personal property or a product transferred electronically:
(A)
to other tangible personal property; and
(B)
as part of a manufacturing or fabrication process.
(63)
"Institution of higher education" means an institution of higher education listed in
Section
53H-1-102
.
(64)
(a)
"Lease" or "rental" means a transfer of possession or control of tangible personal
property or a product transferred electronically for:
(i)
(A)
a fixed term; or
(B)
an indeterminate term; and
(ii)
consideration.
(b)
"Lease" or "rental" includes:
(i)
an agreement covering a motor vehicle and trailer if the amount of consideration
may be increased or decreased by reference to the amount realized upon sale or
disposition of the property as defined in Section 7701(h)(1), Internal Revenue
Code; and
(ii)
car sharing.
(c)
"Lease" or "rental" does not include:
(i)
a transfer of possession or control of property under a security agreement or
deferred payment plan that requires the transfer of title upon completion of the
required payments;
(ii)
a transfer of possession or control of property under an agreement that requires
the transfer of title:
(A)
upon completion of required payments; and
(B)
if the payment of an option price does not exceed the greater of:
(I)
$100; or
(II)
1% of the total required payments; or
(iii)
providing tangible personal property along with an operator for a fixed period of
time or an indeterminate period of time if the operator is necessary for equipment
to perform as designed.
(d)
For purposes of Subsection
(64)(c)(iii)
, an operator is necessary for equipment to
perform as designed if the operator's duties exceed the:
(i)
set-up of tangible personal property;
(ii)
maintenance of tangible personal property; or
(iii)
inspection of tangible personal property.
(65)
"Lesson" means a fixed period of time for the duration of which a trained instructor:
(a)
is present with a student in person or by video; and
(b)
actively instructs the student, including by providing observation or feedback.
(66)
"Life science establishment" means an establishment in this state that is classified
under the following NAICS codes of the 2007 North American Industry Classification
System of the federal Executive Office of the President, Office of Management and
Budget:
(a)
NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
(b)
NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
Manufacturing; or
(c)
NAICS Code 334517, Irradiation Apparatus Manufacturing.
(67)
"Life science research and development facility" means a facility owned, leased, or
rented by a life science establishment if research and development is performed in 51%
or more of the total area of the facility.
(68)
"Load and leave" means delivery to a purchaser by use of a tangible storage media if
the tangible storage media is not physically transferred to the purchaser.
(69)
"Local taxing jurisdiction" means a:
(a)
county that is authorized to impose an agreement sales and use tax;
(b)
city that is authorized to impose an agreement sales and use tax; or
(c)
town that is authorized to impose an agreement sales and use tax.
(70)
"Manufactured home" means the same as that term is defined in Section
15A-1-302
.
(71)
"Manufacturing facility" means:
(a)
an establishment described in:
(i)
SIC Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of
the federal Executive Office of the President, Office of Management and Budget;
or
(ii)
a NAICS code within NAICS Sector 31-33, Manufacturing, of the 2017 North
American Industry Classification System of the federal Executive Office of the
President, Office of Management and Budget;
(b)
a scrap recycler if:
(i)
from a fixed location, the scrap recycler utilizes machinery or equipment to
process one or more of the following items into prepared grades of processed
materials for use in new products:
(A)
iron;
(B)
steel;
(C)
nonferrous metal;
(D)
paper;
(E)
glass;
(F)
plastic;
(G)
textile; or
(H)
rubber; and
(ii)
the new products under Subsection
(71)(b)(i)
would otherwise be made with
nonrecycled materials; or
(c)
a cogeneration facility as defined in Section
54-2-1
if the cogeneration facility is
placed in service on or after May 1, 2006.
(72)
(a)
"Marketplace" means a physical or electronic place, platform, or forum where
tangible personal property, a product transferred electronically, or a service is offered
for sale.
(b)
"Marketplace" includes a store, a booth, an Internet website, a catalog, or a dedicated
sales software application.
(73)
(a)
"Marketplace facilitator" means a person, including an affiliate of the person,
that enters into a contract, an agreement, or otherwise with sellers, for consideration,
to facilitate the sale of a seller's product through a marketplace that the person owns,
operates, or controls and that directly or indirectly:
(i)
does any of the following:
(A)
lists, makes available, or advertises tangible personal property, a product
transferred electronically, or a service for sale by a marketplace seller on a
marketplace that the person owns, operates, or controls;
(B)
facilitates the sale of a marketplace seller's tangible personal property, product
transferred electronically, or service by transmitting or otherwise
communicating an offer or acceptance of a retail sale between the marketplace
seller and a purchaser using the marketplace;
(C)
owns, rents, licenses, makes available, or operates any electronic or physical
infrastructure or any property, process, method, copyright, trademark, or patent
that connects a marketplace seller to a purchaser for the purpose of making a
retail sale of tangible personal property, a product transferred electronically, or
a service;
(D)
provides a marketplace for making, or otherwise facilitates, a retail sale of
tangible personal property, a product transferred electronically, or a service,
regardless of ownership or control of the tangible personal property, the
product transferred electronically, or the service that is the subject of the retail
sale;
(E)
provides software development or research and development activities related
to any activity described in this Subsection
(73)(a)(i)
, if the software
development or research and development activity is directly related to the
person's marketplace;
(F)
provides or offers fulfillment or storage services for a marketplace seller;
(G)
sets prices for the sale of tangible personal property, a product transferred
electronically, or a service by a marketplace seller;
(H)
provides or offers customer service to a marketplace seller or a marketplace
seller's purchaser or accepts or assists with taking orders, returns, or exchanges
of tangible personal property, a product transferred electronically, or a service
sold by a marketplace seller on the person's marketplace; or
(I)
brands or otherwise identifies sales as those of the person; and
(ii)
does any of the following:
(A)
collects the sales price or purchase price of a retail sale of tangible personal
property, a product transferred electronically, or a service;
(B)
provides payment processing services for a retail sale of tangible personal
property, a product transferred electronically, or a service;
(C)
charges, collects, or otherwise receives a selling fee, listing fee, referral fee,
closing fee, a fee for inserting or making available tangible personal property, a
product transferred electronically, or a service on the person's marketplace, or
other consideration for the facilitation of a retail sale of tangible personal
property, a product transferred electronically, or a service, regardless of
ownership or control of the tangible personal property, the product transferred
electronically, or the service that is the subject of the retail sale;
(D)
through terms and conditions, an agreement, or another arrangement with a
third person, collects payment from a purchase for a retail sale of tangible
personal property, a product transferred electronically, or a service and
transmits that payment to the marketplace seller, regardless of whether the
third person receives compensation or other consideration in exchange for the
service; or
(E)
provides a virtual currency for a purchaser to use to purchase tangible personal
property, a product transferred electronically, or service offered for sale.
(b)
"Marketplace facilitator" does not include:
(i)
a person that only provides payment processing services; or
(ii)
a person described in Subsection
(73)(a)
to the extent the person is facilitating a
sale for a seller that is a restaurant as defined in Section
59-12-602
.
(74)
"Marketplace seller" means a seller that makes one or more retail sales through a
marketplace that a marketplace facilitator owns, operates, or controls, regardless of
whether the seller is required to be registered to collect and remit the tax under this part.
(75)
"Member of the immediate family of the producer" means a person who is related to a
producer described in Subsection
59-12-104(20)(a)
as a:
(a)
child or stepchild, regardless of whether the child or stepchild is:
(i)
an adopted child or adopted stepchild; or
(ii)
a foster child or foster stepchild;
(b)
grandchild or stepgrandchild;
(c)
grandparent or stepgrandparent;
(d)
nephew or stepnephew;
(e)
niece or stepniece;
(f)
parent or stepparent;
(g)
sibling or stepsibling;
(h)
spouse;
(i)
person who is the spouse of a person described in Subsections
(75)(a)
through (g); or
(j)
person similar to a person described in Subsections
(75)(a)
through (i) as determined
by the commission by rule made in accordance with Title
63G, Chapter 3
, Utah
Administrative Rulemaking Act.
(76)
"Mobile home" means the same as that term is defined in Section
15A-1-302
.
(77)
"Mobile telecommunications service" means the same as that term is defined in the
Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(78)
(a)
"Mobile wireless service" means a telecommunications service, regardless of the
technology used, if:
(i)
the origination point of the conveyance, routing, or transmission is not fixed;
(ii)
the termination point of the conveyance, routing, or transmission is not fixed; or
(iii)
the origination point described in Subsection
(78)(a)(i)
and the termination point
described in Subsection
(78)(a)(ii)
are not fixed.
(b)
"Mobile wireless service" includes a telecommunications service that is provided by
a commercial mobile radio service provider.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define "commercial mobile radio service provider."
(79)
(a)
"Mobility enhancing equipment" means equipment that is:
(i)
primarily and customarily used to provide or increase the ability to move from one
place to another;
(ii)
appropriate for use in a:
(A)
home; or
(B)
motor vehicle; and
(iii)
not generally used by persons with normal mobility.
(b)
"Mobility enhancing equipment" includes parts used in the repair or replacement of
the equipment described in Subsection
(79)(a)
.
(c)
"Mobility enhancing equipment" does not include:
(i)
a motor vehicle;
(ii)
equipment on a motor vehicle if that equipment is normally provided by the
motor vehicle manufacturer;
(iii)
durable medical equipment; or
(iv)
a prosthetic device.
(80)
"Model 1 seller" means a seller registered under the agreement that has selected a
certified service provider as the seller's agent to perform the seller's sales and use tax
functions for agreement sales and use taxes, as outlined in the contract between the
governing board of the agreement and the certified service provider, other than the
seller's obligation under Section
59-12-124
to remit a tax on the seller's own purchases.
(81)
"Model 2 seller" means a seller registered under the agreement that:
(a)
except as provided in Subsection
(81)(b)
, has selected a certified automated system
to perform the seller's sales tax functions for agreement sales and use taxes; and
(b)
retains responsibility for remitting all of the sales tax:
(i)
collected by the seller; and
(ii)
to the appropriate local taxing jurisdiction.
(82)
(a)
Subject to Subsection
(82)(b)
, "model 3 seller" means a seller registered under
the agreement that has:
(i)
sales in at least five states that are members of the agreement;
(ii)
total annual sales revenue of at least $500,000,000;
(iii)
a proprietary system that calculates the amount of tax:
(A)
for an agreement sales and use tax; and
(B)
due to each local taxing jurisdiction; and
(iv)
entered into a performance agreement with the governing board of the agreement.
(b)
For purposes of Subsection
(82)(a)
, "model 3 seller" includes an affiliated group of
sellers using the same proprietary system.
(83)
"Model 4 seller" means a seller that is registered under the agreement and is not a
model 1 seller, model 2 seller, or model 3 seller.
(84)
"Modular home" means a modular unit as defined in Section
15A-1-302
.
(85)
"Motor vehicle" means the same as that term is defined in Section
41-1a-102
.
(86)
"Oil sands" means impregnated bituminous sands that:
(a)
contain a heavy, thick form of petroleum that is released when heated, mixed with
other hydrocarbons, or otherwise treated;
(b)
yield mixtures of liquid hydrocarbon; and
(c)
require further processing other than mechanical blending before becoming finished
petroleum products.
(87)
"Oil shale" means a group of fine black to dark brown shales containing kerogen
material that yields petroleum upon heating and distillation.
(88)
"Optional computer software maintenance contract" means a computer software
maintenance contract that a customer is not obligated to purchase as a condition to the
retail sale of computer software.
(89)
(a)
"Other fuels" means products that burn independently to produce heat or energy.
(b)
"Other fuels" includes oxygen when it is used in the manufacturing of tangible
personal property.
(90)
(a)
"Paging service" means a telecommunications service that provides transmission
of a coded radio signal for the purpose of activating a specific pager.
(b)
For purposes of Subsection
(90)(a)
, the transmission of a coded radio signal includes
a transmission by message or sound.
(91)
"Pawn transaction" means the same as that term is defined in Section
13-32a-102
.
(92)
"Pawnbroker" means the same as that term is defined in Section
13-32a-102
.
(93)
(a)
"Permanently attached to real property" means that for tangible personal property
attached to real property:
(i)
the attachment of the tangible personal property to the real property:
(A)
is essential to the use of the tangible personal property; and
(B)
suggests that the tangible personal property will remain attached to the real
property in the same place over the useful life of the tangible personal
property; or
(ii)
if the tangible personal property is detached from the real property, the
detachment would:
(A)
cause substantial damage to the tangible personal property; or
(B)
require substantial alteration or repair of the real property to which the
tangible personal property is attached.
(b)
"Permanently attached to real property" includes:
(i)
the attachment of an accessory to the tangible personal property if the accessory is:
(A)
essential to the operation of the tangible personal property; and
(B)
attached only to facilitate the operation of the tangible personal property;
(ii)
a temporary detachment of tangible personal property from real property for a
repair or renovation if the repair or renovation is performed where the tangible
personal property and real property are located; or
(iii)
property attached to oil, gas, or water pipelines, except for the property listed in
Subsection
(93)(c)(iii)
or (iv).
(c)
"Permanently attached to real property" does not include:
(i)
the attachment of portable or movable tangible personal property to real property
if that portable or movable tangible personal property is attached to real property
only for:
(A)
convenience;
(B)
stability; or
(C)
for an obvious temporary purpose;
(ii)
the detachment of tangible personal property from real property except for the
detachment described in Subsection
(93)(b)(ii)
;
(iii)
an attachment of the following tangible personal property to real property if the
attachment to real property is only through a line that supplies water, electricity,
gas, telecommunications, cable, or supplies a similar item as determined by the
commission by rule made in accordance with Title
63G, Chapter 3
, Utah
Administrative Rulemaking Act:
(A)
a computer;
(B)
a telephone;
(C)
a television; or
(D)
tangible personal property similar to Subsections
(93)(c)(iii)(A)
through (C)
as determined by the commission by rule made in accordance with Title
63G,
Chapter 3
, Utah Administrative Rulemaking Act; or
(iv)
an item listed in Subsection
(139)(c)
.
(94)
"Person" includes any individual, firm, partnership, joint venture, association,
corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
municipality, district, or other local governmental entity of the state, or any group or
combination acting as a unit.
(95)
"Place of primary use":
(a)
for telecommunications service other than mobile telecommunications service,
means the street address representative of where the customer's use of the
telecommunications service primarily occurs, which shall be:
(i)
the residential street address of the customer; or
(ii)
the primary business street address of the customer; or
(b)
for mobile telecommunications service, means the same as that term is defined in the
Mobile Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(96)
(a)
"Postpaid calling service" means a telecommunications service a person obtains
by making a payment on a call-by-call basis:
(i)
through the use of a:
(A)
bank card;
(B)
credit card;
(C)
debit card; or
(D)
travel card; or
(ii)
by a charge made to a telephone number that is not associated with the origination
or termination of the telecommunications service.
(b)
"Postpaid calling service" includes a service, except for a prepaid wireless calling
service, that would be a prepaid wireless calling service if the service were
exclusively a telecommunications service.
(97)
"Postproduction" means an activity related to the finishing or duplication of a medium
described in Subsection
59-12-104(54)(a)
.
(98)
"Prepaid calling service" means a telecommunications service:
(a)
that allows a purchaser access to telecommunications service that is exclusively
telecommunications service;
(b)
that:
(i)
is paid for in advance; and
(ii)
enables the origination of a call using an:
(A)
access number; or
(B)
authorization code;
(c)
that is dialed:
(i)
manually; or
(ii)
electronically; and
(d)
sold in predetermined units or dollars that decline:
(i)
by a known amount; and
(ii)
with use.
(99)
"Prepaid wireless calling service" means a telecommunications service:
(a)
that provides the right to utilize:
(i)
mobile wireless service; and
(ii)
other service that is not a telecommunications service, including:
(A)
the download of a product transferred electronically;
(B)
a content service; or
(C)
an ancillary service;
(b)
that:
(i)
is paid for in advance; and
(ii)
enables the origination of a call using an:
(A)
access number; or
(B)
authorization code;
(c)
that is dialed:
(i)
manually; or
(ii)
electronically; and
(d)
sold in predetermined units or dollars that decline:
(i)
by a known amount; and
(ii)
with use.
(100)
(a)
"Prepared food" means:
(i)
food:
(A)
sold in a heated state; or
(B)
heated by a seller;
(ii)
two or more food ingredients mixed or combined by the seller for sale as a single
item; or
(iii)
except as provided in Subsection
(100)(c)
, food sold with an eating utensil
provided by the seller, including a:
(A)
plate;
(B)
knife;
(C)
fork;
(D)
spoon;
(E)
glass;
(F)
cup;
(G)
napkin; or
(H)
straw.
(b)
"Prepared food" does not include:
(i)
food that a seller only:
(A)
cuts;
(B)
repackages; or
(C)
pasteurizes;
(ii)
(A)
the following:
(I)
raw egg;
(II)
raw fish;
(III)
raw meat;
(IV)
raw poultry; or
(V)
a food containing an item described in Subsections
(100)(b)(ii)(A)(I)

through (IV); and
(B)
if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of
the Food and Drug Administration's Food Code that a consumer cook the items
described in Subsection
(100)(b)(ii)(A)
to prevent food borne illness; or
(iii)
the following if sold without eating utensils provided by the seller:
(A)
food and food ingredients sold by a seller if the seller's proper primary
classification under the 2002 North American Industry Classification System
of the federal Executive Office of the President, Office of Management and
Budget, is manufacturing in Sector 311, Food Manufacturing, except for
Subsector 3118, Bakeries and Tortilla Manufacturing;
(B)
food and food ingredients sold in an unheated state:
(I)
by weight or volume; and
(II)
as a single item; or
(C)
a bakery item, including:
(I)
a bagel;
(II)
a bar;
(III)
a biscuit;
(IV)
bread;
(V)
a bun;
(VI)
a cake;
(VII)
a cookie;
(VIII)
a croissant;
(IX)
a danish;
(X)
a donut;
(XI)
a muffin;
(XII)
a pastry;
(XIII)
a pie;
(XIV)
a roll;
(XV)
a tart;
(XVI)
a torte; or
(XVII)
a tortilla.
(c)
An eating utensil provided by the seller does not include the following used to
transport the food:
(i)
a container; or
(ii)
packaging.
(101)
"Prescription" means an order, formula, or recipe that is issued:
(a)
(i)
orally;
(ii)
in writing;
(iii)
electronically; or
(iv)
by any other manner of transmission; and
(b)
by a licensed practitioner authorized by the laws of a state.
(102)
(a)
"Prewritten computer software" means computer software that is not designed
and developed:
(i)
by the author or other creator of the computer software; and
(ii)
to the specifications of a specific purchaser.
(b)
"Prewritten computer software" includes:
(i)
a prewritten upgrade to computer software if the prewritten upgrade to the
computer software is not designed and developed:
(A)
by the author or other creator of the computer software; and
(B)
to the specifications of a specific purchaser;
(ii)
computer software designed and developed by the author or other creator of the
computer software to the specifications of a specific purchaser if the computer
software is sold to a person other than the purchaser; or
(iii)
except as provided in Subsection
(102)(c)
, prewritten computer software or a
prewritten portion of prewritten computer software:
(A)
that is modified or enhanced to any degree; and
(B)
if the modification or enhancement described in Subsection
(102)(b)(iii)(A)
is
designed and developed to the specifications of a specific purchaser.
(c)
"Prewritten computer software" does not include a modification or enhancement
described in Subsection
(102)(b)(iii)
if the charges for the modification or
enhancement are:
(i)
reasonable; and
(ii)
subject to Subsections
59-12-103(2)(f)(ii)
and (2)(g)(i), separately stated on the
invoice or other statement of price provided to the purchaser at the time of sale or
later, as demonstrated by:
(A)
the books and records the seller keeps at the time of the transaction in the
regular course of business, including books and records the seller keeps at the
time of the transaction in the regular course of business for nontax purposes;
(B)
a preponderance of the facts and circumstances at the time of the transaction;
and
(C)
the understanding of all of the parties to the transaction.
(103)
(a)
"Private communications service" means a telecommunications service:
(i)
that entitles a customer to exclusive or priority use of one or more
communications channels between or among termination points; and
(ii)
regardless of the manner in which the one or more communications channels are
connected.
(b)
"Private communications service" includes the following provided in connection
with the use of one or more communications channels:
(i)
an extension line;
(ii)
a station;
(iii)
switching capacity; or
(iv)
another associated service that is provided in connection with the use of one or
more communications channels as defined in Section
59-12-215
.
(104)
(a)
"Product transferred electronically" means a product transferred electronically
that would be subject to a tax under this chapter if that product was transferred in a
manner other than electronically.
(b)
"Product transferred electronically" does not include:
(i)
an ancillary service;
(ii)
computer software; or
(iii)
a telecommunications service.
(105)
(a)
"Prosthetic device" means a device that is worn on or in the body to:
(i)
artificially replace a missing portion of the body;
(ii)
prevent or correct a physical deformity or physical malfunction; or
(iii)
support a weak or deformed portion of the body.
(b)
"Prosthetic device" includes:
(i)
parts used in the repairs or renovation of a prosthetic device;
(ii)
replacement parts for a prosthetic device;
(iii)
a dental prosthesis; or
(iv)
a hearing aid.
(c)
"Prosthetic device" does not include:
(i)
corrective eyeglasses; or
(ii)
contact lenses.
(106)
(a)
"Protective equipment" means an item:
(i)
for human wear; and
(ii)
that is:
(A)
designed as protection:
(I)
to the wearer against injury or disease; or
(II)
against damage or injury of other persons or property; and
(B)
not suitable for general use.
(b)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission shall make rules:
(i)
listing the items that constitute "protective equipment"; and
(ii)
that are consistent with the list of items that constitute "protective equipment"
under the agreement.
(107)
(a)
For purposes of Subsection
59-12-104(41)
, "publication" means any written or
printed matter, other than a photocopy:
(i)
regardless of:
(A)
characteristics;
(B)
copyright;
(C)
form;
(D)
format;
(E)
method of reproduction; or
(F)
source; and
(ii)
made available in printed or electronic format.
(b)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define the term "photocopy."
(108)
(a)
"Purchase price" and "sales price" mean the total amount of consideration:
(i)
valued in money; and
(ii)
for which tangible personal property, a product transferred electronically, or
services are:
(A)
sold;
(B)
leased; or
(C)
rented.
(b)
"Purchase price" and "sales price" include:
(i)
the seller's cost of the tangible personal property, a product transferred
electronically, or services sold;
(ii)
expenses of the seller, including:
(A)
the cost of materials used;
(B)
a labor cost;
(C)
a service cost;
(D)
interest;
(E)
a loss;
(F)
the cost of transportation to the seller; or
(G)
a tax imposed on the seller;
(iii)
a charge by the seller for any service necessary to complete the sale; or
(iv)
consideration a seller receives from a person other than the purchaser if:
(A)
(I)
the seller actually receives consideration from a person other than the
purchaser; and
(II)
the consideration described in Subsection
(108)(b)(iv)(A)(I)
is directly
related to a price reduction or discount on the sale;
(B)
the seller has an obligation to pass the price reduction or discount through to
the purchaser;
(C)
the amount of the consideration attributable to the sale is fixed and
determinable by the seller at the time of the sale to the purchaser; and
(D)
(I)
(Aa)
the purchaser presents a certificate, coupon, or other
documentation to the seller to claim a price reduction or discount; and
(Bb)
a person other than the seller authorizes, distributes, or grants the
certificate, coupon, or other documentation with the understanding that
the person other than the seller will reimburse any seller to whom the
certificate, coupon, or other documentation is presented;
(II)
the purchaser identifies that purchaser to the seller as a member of a group
or organization allowed a price reduction or discount, except that a
preferred customer card that is available to any patron of a seller does not
constitute membership in a group or organization allowed a price reduction
or discount; or
(III)
the price reduction or discount is identified as a third party price reduction
or discount on the:
(Aa)
invoice the purchaser receives; or
(Bb)
certificate, coupon, or other documentation the purchaser presents.
(c)
"Purchase price" and "sales price" do not include:
(i)
a discount:
(A)
in a form including:
(I)
cash;
(II)
term; or
(III)
coupon;
(B)
that is allowed by a seller;
(C)
taken by a purchaser on a sale; and
(D)
that is not reimbursed by a third party; or
(ii)
subject to Subsections
59-12-103(2)(f)(ii)
and (2)(g)(i), the following if
separately stated on an invoice, bill of sale, or similar document provided to the
purchaser at the time of sale or later, as demonstrated by the books and records the
seller keeps at the time of the transaction in the regular course of business,
including books and records the seller keeps at the time of the transaction in the
regular course of business for nontax purposes, by a preponderance of the facts
and circumstances at the time of the transaction, and by the understanding of all of
the parties to the transaction:
(A)
the following from credit extended on the sale of tangible personal property or
services:
(I)
a carrying charge;
(II)
a financing charge; or
(III)
an interest charge;
(B)
a delivery charge;
(C)
an installation charge;
(D)
a manufacturer rebate on a motor vehicle; or
(E)
a tax or fee legally imposed directly on the consumer.
(109)
"Purchaser" means a person to whom:
(a)
a sale of tangible personal property is made;
(b)
a product is transferred electronically; or
(c)
a service is furnished.
(110)
"Qualifying data center" means a data center facility that:
(a)
houses a group of networked server computers in one physical location in order to
disseminate, manage, and store data and information;
(b)
is located in the state;
(c)
is a new operation constructed on or after July 1, 2016;
(d)
consists of one or more buildings that total 150,000 or more square feet;
(e)
is owned or leased by:
(i)
the operator of the data center facility; or
(ii)
a person under common ownership, as defined in Section
59-7-101
, of the
operator of the data center facility; and
(f)
is located on one or more parcels of land that are owned or leased by:
(i)
the operator of the data center facility; or
(ii)
a person under common ownership, as defined in Section
59-7-101
, of the
operator of the data center facility.
(111)
"Qualifying energy storage manufacturing facility" means a facility that
manufactures, in the state, equipment or devices that store and discharge energy for the
purpose of providing electrical power.
(112)
"Regularly rented" means:
(a)
rented to a guest for value three or more times during a calendar year; or
(b)
advertised or held out to the public as a place that is regularly rented to guests for
value.
(113)
"Rental" means the same as that term is defined in Subsection
(64)
.
(114)
(a)
"Repairs or renovations of tangible personal property" means:
(i)
a repair or renovation of tangible personal property that is not permanently
attached to real property; or
(ii)
attaching tangible personal property or a product transferred electronically to
other tangible personal property or detaching tangible personal property or a
product transferred electronically from other tangible personal property if:
(A)
the other tangible personal property to which the tangible personal property or
product transferred electronically is attached or from which the tangible
personal property or product transferred electronically is detached is not
permanently attached to real property; and
(B)
the attachment of tangible personal property or a product transferred
electronically to other tangible personal property or detachment of tangible
personal property or a product transferred electronically from other tangible
personal property is made in conjunction with a repair or replacement of
tangible personal property or a product transferred electronically.
(b)
"Repairs or renovations of tangible personal property" does not include:
(i)
attaching prewritten computer software to other tangible personal property if the
other tangible personal property to which the prewritten computer software is
attached is not permanently attached to real property; or
(ii)
detaching prewritten computer software from other tangible personal property if
the other tangible personal property from which the prewritten computer software
is detached is not permanently attached to real property.
(115)
"Research and development" means the process of inquiry or experimentation aimed
at the discovery of facts, devices, technologies, or applications and the process of
preparing those devices, technologies, or applications for marketing.
(116)
(a)
"Residential telecommunications services" means a telecommunications service
or an ancillary service that is provided to an individual for personal use:
(i)
at a residential address; or
(ii)
at an institution, including a nursing home or a school, if the telecommunications
service or ancillary service is provided to and paid for by the individual residing at
the institution rather than the institution.
(b)
For purposes of Subsection
(116)(a)(i)
, a residential address includes an:
(i)
apartment; or
(ii)
other individual dwelling unit.
(117)
"Residential use" means the use in or around a home, apartment building, sleeping
quarters, and similar facilities or accommodations.
(118)
"Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other than:
(a)
resale;
(b)
sublease; or
(c)
subrent.
(119)
(a)
"Retailer" means any person, unless prohibited by the Constitution of the
United States or federal law, that is engaged in a regularly organized business in
tangible personal property or any other taxable transaction under Subsection
59-12-103(1)
, and who is selling to the user or consumer and not for resale.
(b)
"Retailer" includes commission merchants, auctioneers, and any person regularly
engaged in the business of selling to users or consumers within the state.
(120)
(a)
"Sale" means any transfer of title, exchange, or barter, conditional or otherwise,
in any manner, of tangible personal property or any other taxable transaction under
Subsection
59-12-103(1)
, for consideration.
(b)
"Sale" includes:
(i)
installment and credit sales;
(ii)
any closed transaction constituting a sale;
(iii)
any sale of electrical energy, gas, services, or entertainment taxable under this
chapter;
(iv)
any transaction if the possession of property is transferred but the seller retains
the title as security for the payment of the price; and
(v)
any transaction under which right to possession, operation, or use of any article of
tangible personal property is granted under a lease or contract and the transfer of
possession would be taxable if an outright sale were made.
(121)
"Sale at retail" means the same as that term is defined in Subsection
(118)
.
(122)
"Sale-leaseback transaction" means a transaction by which title to tangible personal
property or a product transferred electronically that is subject to a tax under this chapter
is transferred:
(a)
by a purchaser-lessee;
(b)
to a lessor;
(c)
for consideration; and
(d)
if:
(i)
the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial
purchase of the tangible personal property or product transferred electronically;
(ii)
the sale of the tangible personal property or product transferred electronically to
the lessor is intended as a form of financing:
(A)
for the tangible personal property or product transferred electronically; and
(B)
to the purchaser-lessee; and
(iii)
in accordance with generally accepted accounting principles, the
purchaser-lessee is required to:
(A)
capitalize the tangible personal property or product transferred electronically
for financial reporting purposes; and
(B)
account for the lease payments as payments made under a financing
arrangement.
(123)
"Sales price" means the same as that term is defined in Subsection
(108)
.
(124)
(a)
"Sales relating to schools" means the following sales by, amounts paid to, or
amounts charged by a school:
(i)
sales that are directly related to the school's educational functions or activities
including:
(A)
the sale of:
(I)
textbooks;
(II)
textbook fees;
(III)
laboratory fees;
(IV)
laboratory supplies; or
(V)
safety equipment;
(B)
the sale of a uniform, protective equipment, or sports or recreational
equipment that:
(I)
a student is specifically required to wear as a condition of participation in a
school-related event or school-related activity; and
(II)
is not readily adaptable to general or continued usage to the extent that it
takes the place of ordinary clothing;
(C)
sales of the following if the net or gross revenue generated by the sales is
deposited into a school district fund or school fund dedicated to school meals:
(I)
food and food ingredients; or
(II)
prepared food; or
(D)
transportation charges for official school activities; or
(ii)
amounts paid to or amounts charged by a school for admission to a school-related
event or school-related activity.
(b)
"Sales relating to schools" does not include:
(i)
bookstore sales of items that are not educational materials or supplies;
(ii)
except as provided in Subsection
(124)(a)(i)(B)
:
(A)
clothing;
(B)
clothing accessories or equipment;
(C)
protective equipment; or
(D)
sports or recreational equipment; or
(iii)
amounts paid to or amounts charged by a school for admission to a
school-related event or school-related activity if the amounts paid or charged are
passed through to a person:
(A)
other than a:
(I)
school;
(II)
nonprofit organization authorized by a school board or a governing body of
a private school to organize and direct a competitive secondary school
activity; or
(III)
nonprofit association authorized by a school board or a governing body of
a private school to organize and direct a competitive secondary school
activity; and
(B)
that is required to collect sales and use taxes under this chapter.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may make rules defining the term "passed through."
(125)
For purposes of this section and Section
59-12-104
, "school" means:
(a)
an elementary school or a secondary school that:
(i)
is a:
(A)
public school; or
(B)
private school; and
(ii)
provides instruction for one or more grades kindergarten through 12; or
(b)
a public school district.
(126)
(a)
"Seller" means a person that makes a sale, lease, or rental of:
(i)
tangible personal property;
(ii)
a product transferred electronically; or
(iii)
a service.
(b)
"Seller" includes a marketplace facilitator.
(127)
(a)
"Semiconductor fabricating, processing, research, or development materials"
means tangible personal property or a product transferred electronically if the
tangible personal property or product transferred electronically is:
(i)
used primarily in the process of:
(A)
(I)
manufacturing a semiconductor;
(II)
fabricating a semiconductor; or
(III)
research or development of a:
(Aa)
semiconductor; or
(Bb)
semiconductor manufacturing process; or
(B)
maintaining an environment suitable for a semiconductor; or
(ii)
consumed primarily in the process of:
(A)
(I)
manufacturing a semiconductor;
(II)
fabricating a semiconductor; or
(III)
research or development of a:
(Aa)
semiconductor; or
(Bb)
semiconductor manufacturing process; or
(B)
maintaining an environment suitable for a semiconductor.
(b)
"Semiconductor fabricating, processing, research, or development materials"
includes:
(i)
parts used in the repairs or renovations of tangible personal property or a product
transferred electronically described in Subsection
(127)(a)
; or
(ii)
a chemical, catalyst, or other material used to:
(A)
produce or induce in a semiconductor a:
(I)
chemical change; or
(II)
physical change;
(B)
remove impurities from a semiconductor; or
(C)
improve the marketable condition of a semiconductor.
(128)
"Senior citizen center" means a facility having the primary purpose of providing
services to the aged as defined in Section
26B-6-101
.
(129)
"Shared vehicle" means the same as that term is defined in Section
13-48a-101
.
(130)
"Shared vehicle driver" means the same as that term is defined in Section
13-48a-101
.
(131)
"Shared vehicle owner" means the same as that term is defined in Section
13-48a-101
.
(132)
(a)
Subject to Subsections
(132)(b)
and (c), "short-term lodging consumable"
means tangible personal property that:
(i)
a business that provides accommodations and services described in Subsection
59-12-103(1)(i)
purchases as part of a transaction to provide the accommodations
and services to a purchaser;
(ii)
is intended to be consumed by the purchaser; and
(iii)
is:
(A)
included in the purchase price of the accommodations and services; and
(B)
not separately stated on an invoice, bill of sale, or other similar document
provided to the purchaser.
(b)
"Short-term lodging consumable" includes:
(i)
a beverage;
(ii)
a brush or comb;
(iii)
a cosmetic;
(iv)
a hair care product;
(v)
lotion;
(vi)
a magazine;
(vii)
makeup;
(viii)
a meal;
(ix)
mouthwash;
(x)
nail polish remover;
(xi)
a newspaper;
(xii)
a notepad;
(xiii)
a pen;
(xiv)
a pencil;
(xv)
a razor;
(xvi)
saline solution;
(xvii)
a sewing kit;
(xviii)
shaving cream;
(xix)
a shoe shine kit;
(xx)
a shower cap;
(xxi)
a snack item;
(xxii)
soap;
(xxiii)
toilet paper;
(xxiv)
a toothbrush;
(xxv)
toothpaste; or
(xxvi)
an item similar to Subsections
(132)(b)(i)
through (xxv) as the commission
may provide by rule made in accordance with Title
63G, Chapter 3
, Utah
Administrative Rulemaking Act.
(c)
"Short-term lodging consumable" does not include:
(i)
tangible personal property that is cleaned or washed to allow the tangible personal
property to be reused; or
(ii)
a product transferred electronically.
(133)
(a)
"Short-term rental" means a lease or rental for less than 30 consecutive days.
(b)
"Short-term rental" does not include car sharing.
(134)
"Simplified electronic return" means the electronic return:
(a)
described in Section 318(C) of the agreement; and
(b)
approved by the governing board of the agreement.
(135)
"Solar energy" means the sun used as the sole source of energy for producing
electricity.
(136)
(a)
"Sports or recreational equipment" means an item:
(i)
designed for human use; and
(ii)
that is:
(A)
worn in conjunction with:
(I)
an athletic activity; or
(II)
a recreational activity; and
(B)
not suitable for general use.
(b)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission shall make rules:
(i)
listing the items that constitute "sports or recreational equipment"; and
(ii)
that are consistent with the list of items that constitute "sports or recreational
equipment" under the agreement.
(137)
"State" means the state of Utah, its departments, and agencies.
(138)
"Storage" means any keeping or retention of tangible personal property or any other
taxable transaction under Subsection
59-12-103(1)
, in this state for any purpose except
sale in the regular course of business.
(139)
(a)
"Tangible personal property" means personal property that:
(i)
may be:
(A)
seen;
(B)
weighed;
(C)
measured;
(D)
felt; or
(E)
touched; or
(ii)
is in any manner perceptible to the senses.
(b)
"Tangible personal property" includes:
(i)
electricity;
(ii)
water;
(iii)
gas;
(iv)
steam; or
(v)
prewritten computer software, regardless of the manner in which the prewritten
computer software is transferred.
(c)
"Tangible personal property" includes the following regardless of whether the item is
attached to real property:
(i)
a dishwasher;
(ii)
a dryer;
(iii)
a freezer;
(iv)
a microwave;
(v)
a refrigerator;
(vi)
a stove;
(vii)
a washer; or
(viii)
an item similar to Subsections
(139)(c)(i)
through (vii) as determined by the
commission by rule made in accordance with Title
63G, Chapter 3
, Utah
Administrative Rulemaking Act.
(d)
"Tangible personal property" does not include a product that is transferred
electronically.
(e)
"Tangible personal property" does not include the following if attached to real
property, regardless of whether the attachment to real property is only through a line
that supplies water, electricity, gas, telephone, cable, or supplies a similar item as
determined by the commission by rule made in accordance with Title
63G, Chapter 3
,
Utah Administrative Rulemaking Act:
(i)
a hot water heater;
(ii)
a water filtration system; or
(iii)
a water softener system.
(140)
(a)
"Telecommunications enabling or facilitating equipment, machinery, or
software" means an item listed in Subsection
(140)(b)
if that item is purchased or
leased primarily to enable or facilitate one or more of the following to function:
(i)
telecommunications switching or routing equipment, machinery, or software; or
(ii)
telecommunications transmission equipment, machinery, or software.
(b)
The following apply to Subsection
(140)(a)
:
(i)
a pole;
(ii)
software;
(iii)
a supplementary power supply;
(iv)
temperature or environmental equipment or machinery;
(v)
test equipment;
(vi)
a tower; or
(vii)
equipment, machinery, or software that functions similarly to an item listed in
Subsections
(140)(b)(i)
through (vi) as determined by the commission by rule
made in accordance with Subsection
(140)(c)
.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes equipment, machinery, or software
that functions similarly to an item listed in Subsections
(140)(b)(i)
through (vi).
(141)
"Telecommunications equipment, machinery, or software required for 911 service"
means equipment, machinery, or software that is required to comply with 47 C.F.R. Sec.
20.18.
(142)
"Telecommunications maintenance or repair equipment, machinery, or software"
means equipment, machinery, or software purchased or leased primarily to maintain or
repair one or more of the following, regardless of whether the equipment, machinery, or
software is purchased or leased as a spare part or as an upgrade or modification to one or
more of the following:
(a)
telecommunications enabling or facilitating equipment, machinery, or software;
(b)
telecommunications switching or routing equipment, machinery, or software; or
(c)
telecommunications transmission equipment, machinery, or software.
(143)
(a)
"Telecommunications service" means the electronic conveyance, routing, or
transmission of audio, data, video, voice, or any other information or signal to a
point, or among or between points.
(b)
"Telecommunications service" includes:
(i)
an electronic conveyance, routing, or transmission with respect to which a
computer processing application is used to act:
(A)
on the code, form, or protocol of the content;
(B)
for the purpose of electronic conveyance, routing, or transmission; and
(C)
regardless of whether the service:
(I)
is referred to as voice over Internet protocol service; or
(II)
is classified by the Federal Communications Commission as enhanced or
value added;
(ii)
an 800 service;
(iii)
a 900 service;
(iv)
a fixed wireless service;
(v)
a mobile wireless service;
(vi)
a postpaid calling service;
(vii)
a prepaid calling service;
(viii)
a prepaid wireless calling service; or
(ix)
a private communications service.
(c)
"Telecommunications service" does not include:
(i)
advertising, including directory advertising;
(ii)
an ancillary service;
(iii)
a billing and collection service provided to a third party;
(iv)
a data processing and information service if:
(A)
the data processing and information service allows data to be:
(I)
(Aa)
acquired;
(Bb)
generated;
(Cc)
processed;
(Dd)
retrieved; or
(Ee)
stored; and
(II)
delivered by an electronic transmission to a purchaser; and
(B)
the purchaser's primary purpose for the underlying transaction is the processed
data or information;
(v)
installation or maintenance of the following on a customer's premises:
(A)
equipment; or
(B)
wiring;
(vi)
Internet access service;
(vii)
a paging service;
(viii)
a product transferred electronically, including:
(A)
music;
(B)
reading material;
(C)
a ring tone;
(D)
software; or
(E)
video;
(ix)
a radio and television audio and video programming service:
(A)
regardless of the medium; and
(B)
including:
(I)
furnishing conveyance, routing, or transmission of a television audio and
video programming service by a programming service provider;
(II)
cable service as defined in 47 U.S.C. Sec. 522(6); or
(III)
audio and video programming services delivered by a commercial mobile
radio service provider as defined in 47 C.F.R. Sec. 20.3;
(x)
a value-added nonvoice data service; or
(xi)
tangible personal property.
(144)
(a)
"Telecommunications service provider" means a person that:
(i)
owns, controls, operates, or manages a telecommunications service; and
(ii)
engages in an activity described in Subsection
(144)(a)(i)
for the shared use with
or resale to any person of the telecommunications service.
(b)
A person described in Subsection
(144)(a)
is a telecommunications service provider
whether or not the Public Service Commission of Utah regulates:
(i)
that person; or
(ii)
the telecommunications service that the person owns, controls, operates, or
manages.
(145)
(a)
"Telecommunications switching or routing equipment, machinery, or software"
means an item listed in Subsection
(145)(b)
if that item is purchased or leased
primarily for switching or routing:
(i)
an ancillary service;
(ii)
data communications;
(iii)
voice communications; or
(iv)
telecommunications service.
(b)
The following apply to Subsection
(145)(a)
:
(i)
a bridge;
(ii)
a computer;
(iii)
a cross connect;
(iv)
a modem;
(v)
a multiplexer;
(vi)
plug in circuitry;
(vii)
a router;
(viii)
software;
(ix)
a switch; or
(x)
equipment, machinery, or software that functions similarly to an item listed in
Subsections
(145)(b)(i)
through (ix) as determined by the commission by rule
made in accordance with Subsection
(145)(c)
.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes equipment, machinery, or software
that functions similarly to an item listed in Subsections
(145)(b)(i)
through (ix).
(146)
(a)
"Telecommunications transmission equipment, machinery, or software" means
an item listed in Subsection
(146)(b)
if that item is purchased or leased primarily for
sending, receiving, or transporting:
(i)
an ancillary service;
(ii)
data communications;
(iii)
voice communications; or
(iv)
telecommunications service.
(b)
The following apply to Subsection
(146)(a)
:
(i)
an amplifier;
(ii)
a cable;
(iii)
a closure;
(iv)
a conduit;
(v)
a controller;
(vi)
a duplexer;
(vii)
a filter;
(viii)
an input device;
(ix)
an input/output device;
(x)
an insulator;
(xi)
microwave machinery or equipment;
(xii)
an oscillator;
(xiii)
an output device;
(xiv)
a pedestal;
(xv)
a power converter;
(xvi)
a power supply;
(xvii)
a radio channel;
(xviii)
a radio receiver;
(xix)
a radio transmitter;
(xx)
a repeater;
(xxi)
software;
(xxii)
a terminal;
(xxiii)
a timing unit;
(xxiv)
a transformer;
(xxv)
a wire; or
(xxvi)
equipment, machinery, or software that functions similarly to an item listed in
Subsections
(146)(b)(i)
through (xxv) as the commission determines by rule made
in accordance with Subsection
(146)(c)
.
(c)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
commission may by rule define what constitutes equipment, machinery, or software
that functions similarly to an item listed in Subsections
(146)(b)(i)
through
(xxv)
.
(147)
(a)
"Textbook for a higher education course" means a textbook or other printed
material that is required for a course:
(i)
offered by an institution of higher education; and
(ii)
that the purchaser of the textbook or other printed material attends or will attend.
(b)
"Textbook for a higher education course" includes a textbook in electronic format.
(148)
"Tobacco" means:
(a)
a cigarette;
(b)
a cigar;
(c)
chewing tobacco;
(d)
pipe tobacco; or
(e)
any other item that contains tobacco.
(149)
"Unassisted amusement device" means an amusement device, skill device, or ride
device that is started and stopped by the purchaser or renter of the right to use or operate
the amusement device, skill device, or ride device.
(150)
(a)
"Use" means the exercise of any right or power over tangible personal property,
a product transferred electronically, or a service under Subsection
59-12-103(1)
,
incident to the ownership or the leasing of that tangible personal property, product
transferred electronically, or service.
(b)
"Use" does not include the sale, display, demonstration, or trial of tangible personal
property, a product transferred electronically, or a service in the regular course of
business and held for resale.
(151)
"Value-added nonvoice data service" means a service:
(a)
that otherwise meets the definition of a telecommunications service except that a
computer processing application is used to act primarily for a purpose other than
conveyance, routing, or transmission; and
(b)
with respect to which a computer processing application is used to act on data or
information:
(i)
code;
(ii)
content;
(iii)
form; or
(iv)
protocol.
(152)
(a)
Subject to Subsection
(152)(b)
, "vehicle" means the following that are required
to be titled, registered, or titled and registered:
(i)
an aircraft as defined in Section
72-10-102
;
(ii)
a vehicle as defined in Section
41-1a-102
;
(iii)
an off-highway vehicle as defined in Section
41-22-2
; or
(iv)
a vessel as defined in Section
41-1a-102
.
(b)
For purposes of Subsection
59-12-104(33)
only, "vehicle" includes:
(i)
a vehicle described in Subsection
(152)(a)
; or
(ii)
(A)
a locomotive;
(B)
a freight car;
(C)
railroad work equipment; or
(D)
other railroad rolling stock.
(153)
"Vehicle dealer" means a person engaged in the business of buying, selling, or
exchanging a vehicle as defined in Subsection
(152)
.
(154)
(a)
"Vertical service" means an ancillary service that:
(i)
is offered in connection with one or more telecommunications services; and
(ii)
offers an advanced calling feature that allows a customer to:
(A)
identify a caller; and
(B)
manage multiple calls and call connections.
(b)
"Vertical service" includes an ancillary service that allows a customer to manage a
conference bridging service.
(155)
(a)
"Voice mail service" means an ancillary service that enables a customer to
receive, send, or store a recorded message.
(b)
"Voice mail service" does not include a vertical service that a customer is required to
have in order to utilize a voice mail service.
(156)
(a)
"Waste energy facility" means a facility that generates electricity:
(i)
using as the primary source of energy waste materials that would be placed in a
landfill or refuse pit if it were not used to generate electricity, including:
(A)
tires;
(B)
waste coal;
(C)
oil shale; or
(D)
municipal solid waste; and
(ii)
in amounts greater than actually required for the operation of the facility.
(b)
"Waste energy facility" does not include a facility that incinerates:
(i)
hospital waste as defined in 40 C.F.R. 60.51c; or
(ii)
medical/infectious waste as defined in 40 C.F.R. 60.51c.
(157)
"Watercraft" means a vessel as defined in Section
73-18-2
.
(158)
"Wind energy" means wind used as the sole source of energy to produce electricity.
(159)
"ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
location by the United States Postal Service.
Section 3. Section
59-12-2501
is enacted to read:
25. Law Enforcement Infrastructure Tax
59-12-2501
Effective
05/06/26
. Definitions.
As used in this part:
(1)
(a)
"Infrastructure improvement" means the replacement, repair, or upgrade of a
facility, equipment, or technology that a local law enforcement agency owns or
operates for law enforcement purposes.
(b)
"Infrastructure improvement" does not include payment for salaries of law
enforcement personnel or other operational costs.
(2)
"Law enforcement infrastructure tax" means the sales and use tax authorized under
Section
59-12-2502
.
(3)
"Local law enforcement agency" means the law enforcement agency of a qualifying
municipality.
(4)
"Qualifying municipality" means a city or town that:
(a)
is located within a county of the fourth, fifth, or sixth class, as classified in Section
17-60-104
; and
(b)
does not impose a sales and use tax under Section
59-12-401
or
59-12-402
.
Section 4. Section
59-12-2502
is enacted to read:
59-12-2502
Effective
05/06/26
. Imposition of law enforcement infrastructure
tax -- Rate -- Requirements for imposing tax -- Expenditure of tax revenue --
Administration, collection, and enforcement of tax -- Reauthorization of tax --
Administrative charge.
(1)
(a)
The legislative body of a qualifying municipality may impose a sales and use tax
of up to 0.5% on the transactions described in Subsection
59-12-103(1)
located
within the qualifying municipality.
(b)
Notwithstanding Subsection
(1)(a)
, a qualifying municipality may not impose a tax
under this section on:
(i)
the sales and uses described in Section
59-12-104
to the extent the sales and uses
are exempt from taxation under Section
59-12-104
; and
(ii)
except as provided in Subsection
(1)(d)
, amounts paid or charged for food and
food ingredients.
(c)
For purposes of this Subsection
(1)
, the location of a transaction is determined in
accordance with Sections
59-12-211
through
59-12-215
.
(d)
A qualifying municipality that imposes a tax under this section shall impose the tax
on the purchase price or sales price for amounts paid or charged for food and food
ingredients if the food and food ingredients are sold as part of a bundled transaction
attributable to food and food ingredients and tangible personal property other than
food and food ingredients.
(2)
Before imposing a tax under this section, the legislative body of a qualifying
municipality shall:
(a)
hold a public hearing at which the tax is discussed, after providing notice under
Subsection
(3)
; and
(b)
after the public hearing required by Subsection
(2)(a)
is held, obtain approval to
impose the tax from a majority of the members of the qualifying municipality's
legislative body.
(3)
(a)
The legislative body of a qualifying municipality proposing a tax under this
section shall, as a class A notice under Section
63G-30-102
, publish notice of the
public hearing required by Subsection
(2)(a)
for at least 14 days before the day of the
public hearing.
(b)
The notice described in Subsection
(3)(a)
shall state:
(i)
that the legislative body proposes to adopt a tax under this section;
(ii)
the proposed tax rate;
(iii)
the date, time, and location of the public hearing; and
(iv)
that the purpose of the public hearing is to obtain public comments regarding the
proposed tax.
(4)
(a)
Subject to Subsection
(4)(b)
, a qualifying municipality may use money collected
from a tax imposed under this section to fund infrastructure improvements for the
qualifying municipality's local law enforcement agency.
(b)
A qualifying municipality that imposes a tax under this section:
(i)
shall deposit the revenue the qualifying municipality receives from the tax into a
special revenue fund that is created to hold the revenue and is separate from the
qualifying municipality's general fund; and
(ii)
may only expend the revenue as provided in Subsection
(4)(a)
.
(5)
(a)
Except as provided in Subsection
(5)(b)
, a tax under this section shall be
administered, collected, and enforced in accordance with the same procedures used to
administer, collect, and enforce the tax under:
(i)
(A)
Part 1, Tax Collection; or
(B)
Part 2, Local Sales and Use Tax Act; and
(ii)
Chapter 1, General Taxation Policies.
(b)
A tax under this section is not subject to Subsections
59-12-205(2)
through
(5)
.
(6)
(a)
The legislative body of a qualifying municipality shall levy a tax under this
section for a period of 10 years.
(b)
The legislative body of a qualifying municipality may reauthorize a tax under this
section at the end of the 10-year levy period by following the procedures and
requirements of Subsections
(2)
and
(3)
.
(7)
The commission shall retain and deposit an administrative charge in accordance with
Section
59-1-306
from the revenue the commission collects from a tax under this section.
Section 5. Section
59-12-2503
is enacted to read:
59-12-2503
Effective
05/06/26
. Enactment, repeal, or change in the rate of
rural public safety tax -- Annexation -- Notice.
(1)
(a)
Except as provided in Subsection
(3)
, if a qualifying municipality enacts or
repeals a law enforcement infrastructure tax or changes the rate of a law enforcement
infrastructure tax, the enactment, repeal, or change shall take effect:
(i)
on the first day of a calendar quarter; and
(ii)
after a 90-day period beginning on the date the commission receives notice that
meets the requirements of Subsection
(1)(b)
from the qualifying municipality.
(b)
The notice described in Subsection
(1)(a)(ii)
shall state:
(i)
that the qualifying municipality will enact, repeal, or change the rate of a law
enforcement infrastructure tax;
(ii)
the statutory authority for the law enforcement infrastructure tax;
(iii)
the effective date of the enactment, repeal, or change in the rate of the law
enforcement infrastructure tax; and
(iv)
if the qualifying municipality enacts or changes the rate of the law enforcement
infrastructure tax, the rate of the law enforcement infrastructure tax.
(2)
(a)
Except as provided in Subsection
(3)
, if an annexation will result in the enactment,
repeal, or change in the rate of a law enforcement infrastructure tax for an annexing
area, the enactment, repeal, or change shall take effect:
(i)
on the first day of a calendar quarter; and
(ii)
after a 90-day period beginning on the date the commission receives notice
meeting the requirements of Subsection
(2)(b)
from the municipality that annexes
the annexing area.
(b)
The notice described in Subsection
(2)(a)(ii)
shall state:
(i)
that the annexation described in Subsection
(2)(a)
will result in the enactment,
repeal, or change in the rate of a law enforcement infrastructure tax for the
annexing area;
(ii)
the statutory authority for the law enforcement infrastructure tax;
(iii)
the effective date of the enactment, repeal, or change in the rate of the law
enforcement infrastructure tax; and
(iv)
if the annexation results in the enactment or change in the rate of a law
enforcement infrastructure tax for the annexing area, the rate of the law
enforcement infrastructure tax.
(3)
(a)
If the billing period for a transaction begins before the effective date of the
enactment of a law enforcement infrastructure tax or the increase in the rate of a law
enforcement infrastructure tax, the enactment of the tax or the tax rate increase shall
take effect on the first day of the first billing period that begins after the effective
date of the enactment of the tax or the tax rate increase.
(b)
If the billing period for a transaction begins before the effective date of the repeal of
a law enforcement infrastructure tax or the decrease in the rate of a law enforcement
infrastructure tax, the repeal of the tax or the tax rate decrease shall take effect on the
first day of the billing period that began before the effective date of the repeal of the
tax or the tax rate decrease.
(c)
If a law enforcement infrastructure tax due on a catalogue sale is computed on the
basis of sales and use tax rates published in the catalogue, an enactment, repeal, or
change in the rate of the tax shall take effect:
(i)
on the first day of a calendar quarter; and
(ii)
beginning 60 days after the effective date of the enactment, repeal, or change in
the rate of the tax.
(4)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and for
purposes of Subsection
(3)(c)
, the commission may by rule define the term "catalogue
sale."
Section 6. Section
59-12-2504
is enacted to read:
59-12-2504
Effective
05/06/26
. Seller or certified service provider reliance on
commission information.
A seller or certified service provider is not liable for failing to collect a law enforcement
infrastructure tax if the seller's or certified service provider's failure to collect the law
enforcement infrastructure tax is as a result of the seller's or certified service provider's
reliance on incorrect data provided by the commission in a database created by the
commission:
(1)
containing tax rates, boundaries, or local taxing jurisdiction assignments; or
(2)
indicating the taxability of tangible personal property, a product transferred
electronically, or a service.
Section 7. Section
59-12-2505
is enacted to read:
59-12-2505
Effective
05/06/26
. Certified service provider or model 2 seller
reliance on commission certified software.
(1)
Except as provided in Subsection
(2)
and subject to Subsection
(4)
, a certified service
provider or model 2 seller is not liable for failing to collect a law enforcement
infrastructure tax if:
(a)
the certified service provider or model 2 seller relies on software the commission
certifies; and
(b)
the certified service provider's or model 2 seller's failure to collect a law enforcement
infrastructure tax is a result of the certified service provider's or model 2 seller's
reliance on incorrect data:
(i)
provided by the commission; or
(ii)
in the software the commission certifies.
(2)
The relief from liability described in Subsection
(1)
does not apply if a certified service
provider or model 2 seller incorrectly classifies an item or transaction into a product
category the commission certifies.
(3)
If the taxability of a product category is incorrectly classified in software the
commission certifies, the commission shall:
(a)
notify a certified service provider or model 2 seller of the incorrect classification of
the taxability of a product category in software the commission certifies; and
(b)
state in the notice required by Subsection
(3)(a)
that the certified service provider or
model 2 seller is liable for failing to collect the correct amount of a law enforcement
infrastructure tax on the incorrectly classified product category if the certified service
provider or model 2 seller fails to correct the taxability of the item or transaction
within 10 days after the day on which the certified service provider or model 2 seller
receives the notice.
(4)
If a certified service provider or model 2 seller fails to correct the taxability of an item
or transaction within 10 days after the day on which the certified service provider or
model 2 seller receives the notice described in Subsection
(3)
, the certified service
provider or model 2 seller is liable for failing to collect the correct amount of a law
enforcement infrastructure tax on the item or transaction.
Section 8. Section
59-12-2506
is enacted to read:
59-12-2506
Effective
05/06/26
. Purchaser relief from liability.
(1)
(a)
Except as provided in Subsection
(1)(b)
, a purchaser is relieved from a penalty
under Section
59-1-401
for failure to pay a tax due under this part or an
underpayment of the tax if:
(i)
the purchaser's seller or certified service provider relies on incorrect data provided
by the commission:
(A)
on a tax rate;
(B)
on a boundary;
(C)
on a taxing jurisdiction; or
(D)
in the taxability matrix the commission provides in accordance with the
agreement; or
(ii)
the purchaser, regardless of whether the purchaser holds a direct payment permit
in accordance with Section
59-12-107.1
, relies on incorrect data provided by the
commission:
(A)
on a tax rate;
(B)
on a boundary;
(C)
on a taxing jurisdiction; or
(D)
in the taxability matrix the commission provides in accordance with the
agreement.
(b)
For purposes of Subsection
(1)(a)
, a purchaser is not relieved from a penalty under
Section
59-1-401
for failure to pay a tax due under this part or an underpayment of
the tax if the purchaser's, the purchaser's seller's, or the purchaser's certified service
provider's reliance on incorrect data provided by the commission is a result of
conduct that is:
(i)
fraudulent;
(ii)
intentional; or
(iii)
willful.
(2)
In addition to the relief from a penalty described in Subsection
(1)
, a purchaser is not
liable for a tax or interest under Section
59-1-402
for failure to pay a tax due under this
part or an underpayment of the tax if:
(a)
the purchaser's seller or certified service provider relies on:
(i)
incorrect data provided by the commission:
(A)
on a tax rate;
(B)
on a boundary; or
(C)
on a taxing jurisdiction; or
(ii)
an erroneous classification by the commission:
(A)
in the taxability matrix the commission provides in accordance with the
agreement; and
(B)
with respect to a term that is in the library of definitions and that is listed as
taxable or exempt, included in or excluded from "sales price," or included in or
excluded from a definition; or
(b)
the purchaser, regardless of whether the purchaser holds a direct payment permit in
accordance with Section
59-12-107.1
, relies on:
(i)
incorrect data provided by the commission:
(A)
on a tax rate;
(B)
on a boundary; or
(C)
on a taxing jurisdiction; or
(ii)
an erroneous classification by the commission:
(A)
in the taxability matrix the commission provides in accordance with the
agreement; and
(B)
with respect to a term that is in the library of definitions and that is listed as
taxable or exempt, included in or excluded from "sales price," or included in or
excluded from a definition.
Section 9.
Effective Date.
(1)
Except as provided in Subsection (2), this bill takes effect
May 6, 2026
.
(2)
The actions affecting Section 59-12-102
Effective
07/01/26
take effect on
July 1, 2026
.
1-7-26 9:49 AM