59-12-102 - Definitions.
59-12-102. 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 theFederal 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 thesubscriber'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 FederalCommunications 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) "Admission or user fees" includes season passes.
(b) "Admission or user fees" does not include annual membership dues to privateorganizations.
(4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted onNovember 12, 2002, including amendments made to the Streamlined Sales and Use TaxAgreement after November 12, 2002.
(5) "Agreement combined tax rate" means the sum of the tax rates:
(a) listed under Subsection (6); and
(b) that are imposed within a local taxing jurisdiction.
(6) "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)(i)(A)(I);
(e) Section 59-12-204;
(f) Section 59-12-401;
(g) Section 59-12-402;
(h) Section 59-12-703;
(i) Section 59-12-802;
(j) Section 59-12-804;
(k) Section 59-12-1102;
(l) Section 59-12-1302;
(m) Section 59-12-1402;
(n) Section 59-12-1802;
(o) Section 59-12-2003;
(p) Section 59-12-2103;
(q) Section 59-12-2213;
(r) Section 59-12-2214;
(s) Section 59-12-2215;
(t) Section 59-12-2216;
(u) Section 59-12-2217; or
(v) Section 59-12-2218.
(7) "Aircraft" is as defined in Section 72-10-102.
(8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
(a) except for an airline as defined in Section 59-2-102 or an affiliated group as definedin Subsection 59-12-107(1)(f) of an airline; and
(b) that has the workers, expertise, and facilities to perform the following, regardless ofwhether 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 aircraftengine;
(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 andcompletely 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 resultsin a change in the fixed wing turbine powered aircraft's certification requirements by theauthority that certifies the fixed wing turbine powered aircraft.
(9) "Alcoholic beverage" means a beverage that:
(a) is suitable for human consumption; and
(b) contains .5% or more alcohol by volume.
(10) (a) "Ancillary service" means a service associated with, or incidental to, theprovision 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.
(11) "Area agency on aging" is as defined in Section 62A-3-101.
(12) "Assisted amusement device" means an amusement device, skill device, or ridedevice 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, orride device.
(13) "Assisted cleaning or washing of tangible personal property" means cleaning orwashing of tangible personal property if the cleaning or washing labor is primarily performed byan 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 personalproperty.
(14) "Authorized carrier" means:
(a) in the case of vehicles operated over public highways, the holder of credentialsindicating that the vehicle is or will be operated pursuant to both the International RegistrationPlan and the International Fuel Tax Agreement;
(b) in the case of aircraft, the holder of a Federal Aviation Administration operatingcertificate or air carrier's operating certificate; or
(c) in the case of locomotives, freight cars, railroad work equipment, or other rollingstock, the holder of a certificate issued by the United States Surface Transportation Board.
(15) (a) Except as provided in Subsection (15)(b), "biomass energy" means any of thefollowing 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) methane produced:
(I) at landfills; or
(II) as a byproduct of the treatment of wastewater residuals;
(D) aquatic plants; and
(E) agricultural products.
(b) "Biomass energy" does not include:
(i) black liquor;
(ii) treated woods; or
(iii) biomass from municipal solid waste other than methane produced:
(A) at landfills; or
(B) as a byproduct of the treatment of wastewater residuals.
(16) (a) "Bundled transaction" means the sale of two or more items of tangible personalproperty, 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 thebasis of the selection by the purchaser of the items of tangible personal property included in thetransaction;
(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 taxationunder this chapter and tangible personal property or a product that is not subject to taxation underthis chapter if the:
(A) seller's purchase price of the tangible personal property or product subject to taxationunder this chapter is de minimis; or
(B) seller's sales price of the tangible personal property or product subject to taxationunder this chapter is de minimis; and
(vii) the retail sale of tangible personal property that is not subject to taxation under thischapter 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 (16)(f):
(I) the seller's purchase price of the tangible personal property subject to taxation underthis 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 thischapter is 50% or less of the seller's total sales price of that retail sale.
(c) (i) For purposes of Subsection (16)(a)(i), tangible personal property, a product, or aservice 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, orservice;
(B) tangible personal property, a product, or a service provided free of charge with thepurchase 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 thedefinition of "purchase price."
(ii) For purposes of Subsection (16)(c)(i)(B), an item of tangible personal property, aproduct, or a service is provided free of charge with the purchase of another item of tangiblepersonal property, a product, or a service if the sales price of the purchased item of tangiblepersonal property, product, or service does not vary depending on the inclusion of the tangiblepersonal property, product, or service provided free of charge.
(d) (i) For purposes of Subsection (16)(a)(ii), property sold for one nonitemized pricedoes not include a price that is separately identified by tangible personal property, product, orservice on the following, regardless of whether the following is in paper format or electronicformat:
(A) a binding sales document; or
(B) another supporting sales-related document that is available to a purchaser.
(ii) For purposes of Subsection (16)(d)(i), a binding sales document or anothersupporting 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 (16)(b)(vi), the sales price of tangible personalproperty 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 lessof 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 ofthe seller's total sales price of the bundled transaction.
(ii) For purposes of Subsection (16)(b)(vi), a seller:
(A) shall use the seller's purchase price or the seller's sales price to determine if thepurchase price or sales price of the tangible personal property or product subject to taxationunder this chapter is de minimis; and
(B) may not use a combination of the seller's purchase price and the seller's sales price todetermine if the purchase price or sales price of the tangible personal property or product subjectto taxation under this chapter is de minimis.
(iii) For purposes of Subsection (16)(b)(vi), a seller shall use the full term of a servicecontract to determine if the sales price of tangible personal property or a product is de minimis.
(f) For purposes of Subsection (16)(b)(vii)(B), a seller may not use a combination of theseller's purchase price and the seller's sales price to determine if tangible personal propertysubject to taxation under this chapter is 50% or less of the seller's total purchase price or salesprice of that retail sale.
(17) "Certified automated system" means software certified by the governing board ofthe 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 amember of the agreement; and
(c) maintains a record of the transaction described in Subsection (17)(a)(i).
(18) "Certified service provider" means an agent certified:
(a) by the governing board of the agreement; and
(b) to perform all of a seller's sales and use tax functions for an agreement sales and usetax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's ownpurchases.
(19) (a) Subject to Subsection (19)(b), "clothing" means all human wearing apparelsuitable for general use.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission shall make rules:
(i) listing the items that constitute "clothing"; and
(ii) that are consistent with the list of items that constitute "clothing" under theagreement.
(20) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
(21) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuelsthat does not constitute industrial use under Subsection (48) or residential use under Subsection(94).
(22) (a) "Common carrier" means a person engaged in or transacting the business oftransporting passengers, freight, merchandise, or other property for hire within this state.
(b) (i) "Common carrier" does not include a person who, at the time the person istraveling to or from that person's place of employment, transports a passenger to or from thepassenger's place of employment.
(ii) For purposes of Subsection (22)(b)(i), in accordance with Title 63G, Chapter 3, UtahAdministrative Rulemaking Act, the commission may make rules defining what constitutes aperson's place of employment.
(23) "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 greenhousesdoing a majority of their business in wholesale sales, and for providing power for off-highwaytype farm machinery; and
(d) feed, seeds, and seedlings.
(24) "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.
(25) "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.
(26) (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" includes providing a telephone number as part of theancillary service described in Subsection (26)(a).
(c) "Conference bridging service" does not include a telecommunications service used toreach the ancillary service described in Subsection (26)(a).
(27) "Construction materials" means any tangible personal property that will beconverted into real property.
(28) "Delivered electronically" means delivered to a purchaser by means other thantangible storage media.
(29) (a) "Delivery charge" means a charge:
(i) by a seller of:
(A) tangible personal property;
(B) a product transferred electronically; or
(C) services; and
(ii) for preparation and delivery of the tangible personal property, product transferredelectronically, or services described in Subsection (29)(a)(i) to a location designated by thepurchaser.
(b) "Delivery charge" includes a charge for the following:
(i) transportation;
(ii) shipping;
(iii) postage;
(iv) handling;
(v) crating; or
(vi) packing.
(30) "Detailed telecommunications billing service" means an ancillary service ofseparately stating information pertaining to individual calls on a customer's billing statement.
(31) "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 totaldietary intake; or
(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredientdescribed in Subsections (31)(b)(i) through (v);
(c) (i) except as provided in Subsection (31)(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) notwithstanding Subsection (31)(c)(i), if the product is not intended for ingestion in a
form described in Subsections (31)(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.
(32) (a) "Direct mail" means printed material delivered or distributed by United Statesmail 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 apurchaser 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 singleaddress.
(33) "Directory assistance" means an ancillary service of providing:
(a) address information; or
(b) telephone number information.
(34) (a) "Disposable home medical equipment or supplies" means medical equipment orsupplies 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 26-21-2;
(B) a health care provider as defined in Section 78B-3-403;
(C) an office of a health care provider described in Subsection (34)(a)(ii)(B); or
(D) a person similar to a person described in Subsections (34)(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, thecommission may by rule define what constitutes medical equipment or supplies.
(35) (a) "Drug" means a compound, substance, or preparation, or a component of acompound, 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 (35)(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.
(36) (a) Except as provided in Subsection (36)(c), "durable medical equipment" meansequipment 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 theequipment described in Subsection (36)(a).
(c) Notwithstanding Subsection (36)(a), "durable medical equipment" does not includemobility enhancing equipment.
(37) "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 (37)(b)(i) through (vi).
(38) "Employee" is as defined in Section 59-10-401.
(39) "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.
(40) "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.
(41) "Fixed wireless service" means a telecommunications service that provides radiocommunication between fixed points.
(42) (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 (78)(b)(iii).
(c) "Food and food ingredients" does not include:
(i) an alcoholic beverage;
(ii) tobacco; or
(iii) prepared food.
(43) (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 (43)(a)(iii), "officially sanctioned school activity" meansa school activity:
(i) that is conducted in accordance with a formal policy adopted by the school or schooldistrict governing the authorization and supervision of fundraising activities;
(ii) that does not directly or indirectly compensate an individual teacher or othereducational personnel by direct payment, commissions, or payment in kind; and
(iii) the net or gross revenues from which are deposited in a dedicated account controlledby the school or school district.
(44) "Geothermal energy" means energy contained in heat that continuously flowsoutward from the earth that is used as the sole source of energy to produce electricity.
(45) "Governing board of the agreement" means the governing board of the agreementthat is:
(a) authorized to administer the agreement; and
(b) established in accordance with the agreement.
(46) (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 Officeof the Court Administrator, and similar administrative units in the judicial branch;
(iii) the legislative branch of the state, including the House of Representatives, theSenate, the Legislative Printing Office, 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 highereducation, including:
(i) a college campus of the Utah College of Applied Technology;
(ii) a school;
(iii) the State Board of Education;
(iv) the State Board of Regents; or
(v) a state institution of higher education as defined in Section 53B-3-102.
(47) "Hydroelectric energy" means water used as the sole source of energy to produceelectricity.
(48) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or otherfuels:
(a) in mining or extraction of minerals;
(b) in agricultural operations to produce an agricultural product up to the time of harvestor placing the agricultural product into a storage facility, including:
(i) commercial greenhouses;
(ii) irrigation pumps;
(iii) farm machinery;
(iv) implements of husbandry as defined in Subsection 41-1a-102(23) that are notregistered under Title 41, Chapter 1a, Part 2, Registration; and
(v) other farming activities;
(c) in manufacturing tangible personal property at an establishment described in SICCodes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federalExecutive 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 processone or more of the following items into prepared grades of processed materials for use in newproducts:
(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 (48)(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(2)(a) by acogeneration facility as defined in Section 54-2-1.
(49) (a) Except as provided in Subsection (49)(b), "installation charge" means a chargefor installing:
(i) tangible personal property; or
(ii) a product transferred electronically.
(b) "Installation charge" does not include a charge for repairs or renovations of:
(i) tangible personal property; or
(ii) a product transferred electronically.
(50) (a) "Lease" or "rental" means a transfer of possession or control of tangible personalproperty or a product transferred electronically for:
(i) (A) a fixed term; or
(B) an indeterminate term; and
(ii) consideration.
(b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if theamount of consideration may be increased or decreased by reference to the amount realized uponsale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue Code.
(c) "Lease" or "rental" does not include:
(i) a transfer of possession or control of property under a security agreement or deferredpayment 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 thetransfer 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 oftime or an indeterminate period of time if the operator is necessary for equipment to perform asdesigned.
(d) For purposes of Subsection (50)(c)(iii), an operator is necessary for equipment toperform 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.
(51) "Load and leave" means delivery to a purchaser by use of a tangible storage media ifthe tangible storage media is not physically transferred to the purchaser.
(52) "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.
(53) "Manufactured home" is as defined in Section 58-56-3.
(54) For purposes of Section 59-12-104, "manufacturing facility" means:
(a) an establishment described in SIC Codes 2000 to 3999 of the 1987 StandardIndustrial Classification Manual 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 processone or more of the following items into prepared grades of processed materials for use in newproducts:
(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 (54)(b)(i) would otherwise be made withnonrecycled materials; or
(c) a cogeneration facility as defined in Section 54-2-1.
(55) "Member of the immediate family of the producer" means a person who is related toa 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 (55)(a) through (g); or
(j) person similar to a person described in Subsections (55)(a) through (i) as determinedby the commission by rule made in accordance with Title 63G, Chapter 3, Utah AdministrativeRulemaking Act.
(56) "Mobile home" is as defined in Section 58-56-3.
(57) "Mobile telecommunications service" is as defined in the MobileTelecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(58) (a) "Mobile wireless service" means a telecommunications service, regardless of thetechnology 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 (58)(a)(i) and the termination pointdescribed in Subsection (58)(a)(ii) are not fixed.
(b) "Mobile wireless service" includes a telecommunications service that is provided by acommercial mobile radio service provider.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission may by rule define "commercial mobile radio service provider."
(59) (a) Except as provided in Subsection (59)(c), "mobility enhancing equipment"means equipment that is:
(i) primarily and customarily used to provide or increase the ability to move from oneplace 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 ofthe equipment described in Subsection (59)(a).
(c) Notwithstanding Subsection (59)(a), "mobility enhancing equipment" does notinclude:
(i) a motor vehicle;
(ii) equipment on a motor vehicle if that equipment is normally provided by the motorvehicle manufacturer;
(iii) durable medical equipment; or
(iv) a prosthetic device.
(60) "Model 1 seller" means a seller registered under the agreement that has selected acertified service provider as the seller's agent to perform all of the seller's sales and use taxfunctions for agreement sales and use taxes other than the seller's obligation under Section59-12-124 to remit a tax on the seller's own purchases.
(61) "Model 2 seller" means a seller registered under the agreement that:
(a) except as provided in Subsection (61)(b), has selected a certified automated system toperform the seller's sales tax functions for agreement sales and use taxes; and
(b) notwithstanding Subsection (61)(a), retains responsibility for remitting all of the salestax:
(i) collected by the seller; and
(ii) to the appropriate local taxing jurisdiction.
(62) (a) Subject to Subsection (62)(b), "model 3 seller" means a seller registered underthe agreement that has:
(i) sales in at least five states that are members of the agreement;
(ii) total annual sales revenues of at least $500,000,000;
(iii) a proprietary system that calculates the amount of tax:
(A) for an agreement sales and use tax; and
(B) due to each local taxing jurisdiction; and
(iv) entered into a performance agreement with the governing board of the agreement.
(b) For purposes of Subsection (62)(a), "model 3 seller" includes an affiliated group ofsellers using the same proprietary system.
(63) "Model 4 seller" means a seller that is registered under the agreement and is not amodel 1 seller, model 2 seller, or model 3 seller.
(64) "Modular home" means a modular unit as defined in Section 58-56-3.
(65) "Motor vehicle" is as defined in Section 41-1a-102.
(66) "Oil shale" means a group of fine black to dark brown shales containing bituminousmaterial that yields petroleum upon distillation.
(67) (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 tangiblepersonal property.
(68) (a) "Paging service" means a telecommunications service that provides transmissionof a coded radio signal for the purpose of activating a specific pager.
(b) For purposes of Subsection (68)(a), the transmission of a coded radio signal includesa transmission by message or sound.
(69) "Pawnbroker" is as defined in Section 13-32a-102.
(70) "Pawn transaction" is as defined in Section 13-32a-102.
(71) (a) "Permanently attached to real property" means that for tangible personal propertyattached 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 propertyin 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 detachmentwould:
(A) cause substantial damage to the tangible personal property; or
(B) require substantial alteration or repair of the real property to which the tangiblepersonal 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 repairor renovation if the repair or renovation is performed where the tangible personal property andreal property are located; or
(iii) property attached to oil, gas, or water pipelines, except for the property listed inSubsection (71)(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 ifthat 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 thedetachment described in Subsection (71)(b)(ii);
(iii) an attachment of the following tangible personal property to real property if theattachment 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 rulemade 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 (71)(c)(iii)(A) through (C) asdetermined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act; or
(iv) an item listed in Subsection (111)(c).
(72) "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 combinationacting as a unit.
(73) "Place of primary use":
(a) for telecommunications service other than mobile telecommunications service, meansthe street address representative of where the customer's use of the telecommunications serviceprimarily 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, is as defined in the MobileTelecommunications Sourcing Act, 4 U.S.C. Sec. 124.
(74) (a) "Postpaid calling service" means a telecommunications service a person obtainsby 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 ortermination of the telecommunications service.
(b) "Postpaid calling service" includes a service, except for a prepaid wireless callingservice, that would be a prepaid wireless calling service if the service were exclusively atelecommunications service.
(75) "Postproduction" means an activity related to the finishing or duplication of amedium described in Subsection 59-12-104(54)(a).
(76) "Prepaid calling service" means a telecommunications service:
(a) that allows a purchaser access to telecommunications service that is exclusivelytelecommunications 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.
(77) "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.
(78) (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 singleitem; or
(iii) except as provided in Subsection (78)(c), food sold with an eating utensil providedby the seller, including a:
(A) plate;
(B) knife;
(C) fork;
(D) spoon;
(E) glass;
(F) cup;
(G) napkin; or
(H) straw.
(b) "Prepared food" does not include:
(i) food that a seller only:
(A) cuts;
(B) repackages; or
(C) pasteurizes; or
(ii) (A) the following:
(I) raw egg;
(II) raw fish;
(III) raw meat;
(IV) raw poultry; or
(V) a food containing an item described in Subsections (78)(b)(ii)(A)(I) through (IV);and
(B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of theFood and Drug Administration's Food Code that a consumer cook the items described in
Subsection (78)(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 classificationunder the 2002 North American Industry Classification System of the federal Executive Office ofthe President, Office of Management and Budget, is manufacturing in Sector 311, FoodManufacturing, 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) Notwithstanding Subsection (78)(a)(iii), an eating utensil provided by the seller doesnot include the following used to transport the food:
(i) a container; or
(ii) packaging.
(79) "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.
(80) (a) Except as provided in Subsection (80)(b)(ii) or (iii), "prewritten computersoftware" 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 computersoftware is not designed and developed:
(A) by the author or other creator of the computer software; and
(B) to the specifications of a specific purchaser;
(ii) notwithstanding Subsection (80)(a), computer software designed and developed bythe author or other creator of the computer software to the specifications of a specific purchaser ifthe computer software is sold to a person other than the purchaser; or
(iii) notwithstanding Subsection (80)(a) and except as provided in Subsection (80)(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 (80)(b)(iii)(A) isdesigned and developed to the specifications of a specific purchaser.
(c) Notwithstanding Subsection (80)(b)(iii), "prewritten computer software" does notinclude a modification or enhancement described in Subsection (80)(b)(iii) if the charges for themodification or enhancement are:
(i) reasonable; and
(ii) separately stated on the invoice or other statement of price provided to the purchaser.
(81) (a) "Private communication service" means a telecommunications service:
(i) that entitles a customer to exclusive or priority use of one or more communicationschannels between or among termination points; and
(ii) regardless of the manner in which the one or more communications channels areconnected.
(b) "Private communications service" includes the following provided in connection withthe 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 morecommunications channels as defined in Section 59-12-215.
(82) (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.
(83) (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, thecommission 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" underthe agreement.
(84) (a) For purposes of Subsection 59-12-104(41), "publication" means any written orprinted 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, thecommission may by rule define the term "photocopy."
(85) (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 servicesare:
(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 (85)(b)(iv)(A)(I) is directly related to aprice reduction or discount on the sale;
(B) the seller has an obligation to pass the price reduction or discount through to thepurchaser;
(C) the amount of the consideration attributable to the sale is fixed and determinable bythe seller at the time of the sale to the purchaser; and
(D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to theseller 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 willreimburse 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 ororganization allowed a price reduction or discount, except that a preferred customer card that isavailable to any patron of a seller does not constitute membership in a group or organizationallowed a price reduction or discount; or
(III) the price reduction or discount is identified as a third party price reduction ordiscount 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) the following if separately stated on an invoice, bill of sale, or similar documentprovided to the purchaser:
(A) the following from credit extended on the sale of tangible personal property orservices:
(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.
(86) "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.
(87) "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 forvalue.
(88) "Renewable energy" means:
(a) biomass energy;
(b) hydroelectric energy;
(c) geothermal energy;
(d) solar energy; or
(e) wind energy.
(89) (a) "Renewable energy production facility" means a facility that:
(i) uses renewable energy to produce electricity; and
(ii) has a production capacity of 20 kilowatts or greater.
(b) A facility is a renewable energy production facility regardless of whether the facilityis:
(i) connected to an electric grid; or
(ii) located on the premises of an electricity consumer.
(90) "Rental" is as defined in Subsection (50).
(91) "Repairs or renovations of tangible personal property" means:
(a) a repair or renovation of tangible personal property that is not permanently attached toreal property; or
(b) attaching tangible personal property or a product that is transferred electronically toother tangible personal property if the other tangible personal property to which the tangiblepersonal property or product that is transferred electronically is attached is not permanentlyattached to real property.
(92) "Research and development" means the process of inquiry or experimentation aimedat the discovery of facts, devices, technologies, or applications and the process of preparing thosedevices, technologies, or applications for marketing.
(93) (a) "Residential telecommunications services" means a telecommunications serviceor 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 telecommunicationsservice or ancillary service is provided to and paid for by the individual residing at the institutionrather than the institution.
(b) For purposes of Subsection (93)(a), a residential address includes an:
(i) apartment; or
(ii) other individual dwelling unit.
(94) "Residential use" means the use in or around a home, apartment building, sleepingquarters, and similar facilities or accommodations.
(95) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other than:
(a) resale;
(b) sublease; or
(c) subrent.
(96) (a) "Retailer" means any person engaged in a regularly organized business intangible personal property or any other taxable transaction under Subsection 59-12-103(1), andwho is selling to the user or consumer and not for resale.
(b) "Retailer" includes commission merchants, auctioneers, and any person regularlyengaged in the business of selling to users or consumers within the state.
(97) (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 Subsection59-12-103(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 thischapter;
(iv) any transaction if the possession of property is transferred but the seller retains thetitle as security for the payment of the price; and
(v) any transaction under which right to possession, operation, or use of any article oftangible personal property is granted under a lease or contract and the transfer of possessionwould be taxable if an outright sale were made.
(98) "Sale at retail" is as defined in Subsection (95).
(99) "Sale-leaseback transaction" means a transaction by which title to tangible personalproperty or a product transferred electronically that is subject to a tax under this chapter istransferred:
(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 ofthe tangible personal property or product transferred electronically;
(ii) the sale of the tangible personal property or product transferred electronically to thelessor 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 isrequired to:
(A) capitalize the tangible personal property or product transferred electronically forfinancial reporting purposes; and
(B) account for the lease payments as payments made under a financing arrangement.
(100) "Sales price" is as defined in Subsection (85).
(101) (a) "Sales relating to schools" means the following sales by, amounts paid to, oramounts charged by a school:
(i) sales that are directly related to the school's educational functions or activitiesincluding:
(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 aschool-related event or school-related activity; and
(II) is not readily adaptable to general or continued usage to the extent that it takes theplace of ordinary clothing;
(C) sales of the following if the net or gross revenues generated by the sales are depositedinto 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-relatedevent 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 (101)(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-relatedevent 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 privateschool to organize and direct a competitive secondary school activity; or
(III) nonprofit association authorized by a school board or a governing body of a privateschool 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, thecommission may make rules defining the term "passed through."
(102) For purposes of this section and Section 59-12-104, "school":
(a) means:
(i) an elementary school or a secondary school that:
(A) is a:
(I) public school; or
(II) private school; and
(B) provides instruction for one or more grades kindergarten through 12; or
(ii) a public school district; and
(b) includes the Electronic High School as defined in Section 53A-15-1002.
(103) "Seller" means a person that makes a sale, lease, or rental of:
(a) tangible personal property;
(b) a product transferred electronically; or
(c) a service.
(104) (a) "Semiconductor fabricating, processing, research, or development materials"means tangible personal property or a product transferred electronically if the tangible personalproperty or product transferred electronically is:
(i) used primarily in the process of:
(A) (I) manufacturing a semiconduc