59-12-104 - Exemptions.
59-12-104. Exemptions.
The following sales and uses are exempt from the taxes imposed by this chapter:
(1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise taxunder Chapter 13, Motor and Special Fuel Tax Act;
(2) sales to the state, its institutions, and its political subdivisions; however, thisexemption does not apply to sales of:
(a) construction materials except:
(i) construction materials purchased by or on behalf of institutions of the publiceducation system as defined in Utah Constitution Article X, Section 2, provided the constructionmaterials are clearly identified and segregated and installed or converted to real property which isowned by institutions of the public education system; and
(ii) construction materials purchased by the state, its institutions, or its politicalsubdivisions which are installed or converted to real property by employees of the state, itsinstitutions, or its political subdivisions; or
(b) tangible personal property in connection with the construction, operation,maintenance, repair, or replacement of a project, as defined in Section 11-13-103, or facilitiesproviding additional project capacity, as defined in Section 11-13-103;
(3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
(i) the proceeds of each sale do not exceed $1; and
(ii) the seller or operator of the vending machine reports an amount equal to 150% of thecost of the item described in Subsection (3)(b) as goods consumed; and
(b) Subsection (3)(a) applies to:
(i) food and food ingredients; or
(ii) prepared food;
(4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
(i) alcoholic beverages;
(ii) food and food ingredients; or
(iii) prepared food;
(b) sales of tangible personal property or a product transferred electronically:
(i) to a passenger;
(ii) by a commercial airline carrier; and
(iii) during a flight for in-flight consumption or in-flight use by the passenger; or
(c) services related to Subsection (4)(a) or (b);
(5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of partsand equipment:
(A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002North American Industry Classification System of the federal Executive Office of the President,Office of Management and Budget; and
(II) for:
(Aa) installation in an aircraft, including services relating to the installation of parts orequipment in the aircraft;
(Bb) renovation of an aircraft; or
(Cc) repair of an aircraft; or
(B) for installation in an aircraft operated by a common carrier in interstate or foreigncommerce; or
(ii) beginning on October 1, 2008, sales of parts and equipment for installation in anaircraft operated by a common carrier in interstate or foreign commerce; and
(b) notwithstanding the time period of Subsection 59-1-1410(8) for filing for a refund, aperson may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for arefund:
(i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
(ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
(iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for thesale prior to filing for the refund;
(iv) for sales and use taxes paid under this chapter on the sale;
(v) in accordance with Section 59-1-1410; and
(vi) subject to any extension allowed for filing for a refund under Section 59-1-1410, ifthe person files for the refund on or before September 30, 2011;
(6) sales of commercials, motion picture films, prerecorded audio program tapes orrecords, and prerecorded video tapes by a producer, distributor, or studio to a motion pictureexhibitor, distributor, or commercial television or radio broadcaster;
(7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personalproperty if the cleaning or washing of the tangible personal property is not assisted cleaning orwashing of tangible personal property;
(b) if a seller that sells at the same business location assisted cleaning or washing oftangible personal property and cleaning or washing of tangible personal property that is notassisted cleaning or washing of tangible personal property, the exemption described inSubsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning orwashing of the tangible personal property; and
(c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3, UtahAdministrative Rulemaking Act, the commission may make rules:
(i) governing the circumstances under which sales are at the same business location; and
(ii) establishing the procedures and requirements for a seller to separately account forsales of assisted cleaning or washing of tangible personal property;
(8) sales made to or by religious or charitable institutions in the conduct of their regularreligious or charitable functions and activities, if the requirements of Section 59-12-104.1 arefulfilled;
(9) sales of a vehicle of a type required to be registered under the motor vehicle laws ofthis state if the vehicle is:
(a) not registered in this state; and
(b) (i) not used in this state; or
(ii) used in this state:
(A) if the vehicle is not used to conduct business, for a time period that does not exceedthe longer of:
(I) 30 days in any calendar year; or
(II) the time period necessary to transport the vehicle to the borders of this state; or
(B) if the vehicle is used to conduct business, for the time period necessary to transportthe vehicle to the borders of this state;
(10) (a) amounts paid for an item described in Subsection (10)(b) if:
(i) the item is intended for human use; and
(ii) (A) a prescription was issued for the item; or
(B) the item was purchased by a hospital or other medical facility; and
(b) (i) Subsection (10)(a) applies to:
(A) a drug;
(B) a syringe; or
(C) a stoma supply; and
(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission may by rule define the terms:
(A) "syringe"; or
(B) "stoma supply";
(11) sales or use of property, materials, or services used in the construction of orincorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127;
(12) (a) sales of an item described in Subsection (12)(c) served by:
(i) the following if the item described in Subsection (12)(c) is not available to the generalpublic:
(A) a church; or
(B) a charitable institution;
(ii) an institution of higher education if:
(A) the item described in Subsection (12)(c) is not available to the general public; or
(B) the item described in Subsection (12)(c) is prepaid as part of a student meal planoffered by the institution of higher education; or
(b) sales of an item described in Subsection (12)(c) provided for a patient by:
(i) a medical facility; or
(ii) a nursing facility; and
(c) Subsections (12)(a) and (b) apply to:
(i) food and food ingredients;
(ii) prepared food; or
(iii) alcoholic beverages;
(13) (a) except as provided in Subsection (13)(b), the sale of tangible personal propertyor a product transferred electronically by a person:
(i) regardless of the number of transactions involving the sale of that tangible personalproperty or product transferred electronically by that person; and
(ii) not regularly engaged in the business of selling that type of tangible personal propertyor product transferred electronically;
(b) this Subsection (13) does not apply if:
(i) the sale is one of a series of sales of a character to indicate that the person is regularlyengaged in the business of selling that type of tangible personal property or product transferredelectronically;
(ii) the person holds that person out as regularly engaged in the business of selling thattype of tangible personal property or product transferred electronically;
(iii) the person sells an item of tangible personal property or product transferredelectronically that the person purchased as a sale that is exempt under Subsection (25); or
(iv) the sale is of a vehicle or vessel required to be titled or registered under the laws ofthis state in which case the tax is based upon:
(A) the bill of sale or other written evidence of value of the vehicle or vessel being sold;
or
(B) in the absence of a bill of sale or other written evidence of value, the fair marketvalue of the vehicle or vessel being sold at the time of the sale as determined by the commission;and
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission shall make rules establishing the circumstances under which:
(i) a person is regularly engaged in the business of selling a type of tangible personalproperty or product transferred electronically;
(ii) a sale of tangible personal property or a product transferred electronically is one of aseries of sales of a character to indicate that a person is regularly engaged in the business ofselling that type of tangible personal property or product transferred electronically; or
(iii) a person holds that person out as regularly engaged in the business of selling a typeof tangible personal property or product transferred electronically;
(14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or afterJuly 1, 2006, for a purchase or lease by a manufacturing facility except for a cogenerationfacility, of the following:
(i) machinery and equipment that:
(A) are used:
(I) for a manufacturing facility except for a manufacturing facility that is a scrap recyclerdescribed in Subsection 59-12-102(54)(b):
(Aa) in the manufacturing process;
(Bb) to manufacture an item sold as tangible personal property; and
(Cc) beginning on July 1, 2009, in a manufacturing facility described in this Subsection(14)(a)(i)(A)(I) in the state; or
(II) for a manufacturing facility that is a scrap recycler described in Subsection59-12-102(54)(b):
(Aa) to process an item sold as tangible personal property; and
(Bb) beginning on July 1, 2009, in a manufacturing facility described in this Subsection(14)(a)(i)(A)(II) in the state; and
(B) have an economic life of three or more years; and
(ii) normal operating repair or replacement parts that:
(A) have an economic life of three or more years; and
(B) are used:
(I) for a manufacturing facility except for a manufacturing facility that is a scrap recyclerdescribed in Subsection 59-12-102(54)(b):
(Aa) in the manufacturing process; and
(Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(I) in the state;or
(II) for a manufacturing facility that is a scrap recycler described in Subsection59-12-102(54)(b):
(Aa) to process an item sold as tangible personal property; and
(Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(II) in thestate;
(b) amounts paid or charged on or after July 1, 2005, for a purchase or lease by amanufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006, of
the following:
(i) machinery and equipment that:
(A) are used:
(I) in the manufacturing process;
(II) to manufacture an item sold as tangible personal property; and
(III) beginning on July 1, 2009, in a manufacturing facility described in this Subsection(14)(b) in the state; and
(B) have an economic life of three or more years; and
(ii) normal operating repair or replacement parts that:
(A) are used:
(I) in the manufacturing process; and
(II) in a manufacturing facility described in this Subsection (14)(b) in the state; and
(B) have an economic life of three or more years;
(c) amounts paid or charged for a purchase or lease made on or after January 1, 2008, byan establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or NAICSCode 213113, Support Activities for Coal Mining, 213114, Support Activities for Metal Mining,or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining, of the 2002North American Industry Classification System of the federal Executive Office of the President,Office of Management and Budget, of the following:
(i) machinery and equipment that:
(A) are used:
(I) (Aa) in the production process, other than the production of real property; or
(Bb) in research and development; and
(II) beginning on July 1, 2009, in an establishment described in this Subsection (14)(c) inthe state; and
(B) have an economic life of three or more years; and
(ii) normal operating repair or replacement parts that:
(A) have an economic life of three or more years; and
(B) are used in:
(I) (Aa) the production process, except for the production of real property; and
(Bb) an establishment described in this Subsection (14)(c) in the state; or
(II) (Aa) research and development; and
(Bb) in an establishment described in this Subsection (14)(c) in the state;
(d) (i) amounts paid or charged for a purchase or lease made on or after July 1, 2010, buton or before June 30, 2014, by an establishment described in NAICS Code 518112, Web SearchPortals, of the 2002 North American Industry Classification System of the federal ExecutiveOffice of the President, Office of Management and Budget, of the following:
(A) machinery and equipment that:
(I) are used in the operation of the web search portal;
(II) have an economic life of three or more years; and
(III) are used in a new or expanding establishment described in this Subsection (14)(d) inthe state; and
(B) normal operating repair or replacement parts that:
(I) are used in the operation of the web search portal;
(II) have an economic life of three or more years; and
(III) are used in a new or expanding establishment described in this Subsection (14)(d) inthe state; or
(ii) amounts paid or charged for a purchase or lease made on or after July 1, 2014, by anestablishment described in NAICS Code 518112, Web Search Portals, of the 2002 NorthAmerican Industry Classification System of the federal Executive Office of the President, Officeof Management and Budget, of the following:
(A) machinery and equipment that:
(I) are used in the operation of the web search portal; and
(II) have an economic life of three or more years; and
(B) normal operating repair or replacement parts that:
(I) are used in the operation of the web search portal; and
(II) have an economic life of three or more years;
(e) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,Utah Administrative Rulemaking Act, the commission:
(i) shall by rule define the term "establishment"; and
(ii) may by rule define what constitutes:
(A) processing an item sold as tangible personal property;
(B) the production process, except for the production of real property;
(C) research and development; or
(D) a new or expanding establishment described in Subsection (14)(d) in the state; and
(f) on or before October 1, 2011, and every five years after October 1, 2011, thecommission shall:
(i) review the exemptions described in this Subsection (14) and make recommendationsto the Revenue and Taxation Interim Committee concerning whether the exemptions should becontinued, modified, or repealed; and
(ii) include in its report:
(A) an estimate of the cost of the exemptions;
(B) the purpose and effectiveness of the exemptions; and
(C) the benefits of the exemptions to the state;
(15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
(i) tooling;
(ii) special tooling;
(iii) support equipment;
(iv) special test equipment; or
(v) parts used in the repairs or renovations of tooling or equipment described inSubsections (15)(a)(i) through (iv); and
(b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
(i) the tooling, equipment, or parts are used or consumed exclusively in the performanceof any aerospace or electronics industry contract with the United States government or anysubcontract under that contract; and
(ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i), titleto the tooling, equipment, or parts is vested in the United States government as evidenced by:
(A) a government identification tag placed on the tooling, equipment, or parts; or
(B) listing on a government-approved property record if placing a governmentidentification tag on the tooling, equipment, or parts is impractical;
(16) sales of newspapers or newspaper subscriptions;
(17) (a) except as provided in Subsection (17)(b), tangible personal property or a producttransferred electronically traded in as full or part payment of the purchase price, except that forpurposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer, trade-ins arelimited to other vehicles only, and the tax is based upon:
(i) the bill of sale or other written evidence of value of the vehicle being sold and thevehicle being traded in; or
(ii) in the absence of a bill of sale or other written evidence of value, the then existingfair market value of the vehicle being sold and the vehicle being traded in, as determined by thecommission; and
(b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to thefollowing items of tangible personal property or products transferred electronically traded in asfull or part payment of the purchase price:
(i) money;
(ii) electricity;
(iii) water;
(iv) gas; or
(v) steam;
(18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal propertyor a product transferred electronically used or consumed primarily and directly in farmingoperations, regardless of whether the tangible personal property or product transferredelectronically:
(A) becomes part of real estate; or
(B) is installed by a:
(I) farmer;
(II) contractor; or
(III) subcontractor; or
(ii) sales of parts used in the repairs or renovations of tangible personal property or aproduct transferred electronically if the tangible personal property or product transferredelectronically is exempt under Subsection (18)(a)(i); and
(b) notwithstanding Subsection (18)(a), amounts paid or charged for the following aresubject to the taxes imposed by this chapter:
(i) (A) subject to Subsection (18)(b)(i)(B), the following if used in a manner that isincidental to farming:
(I) machinery;
(II) equipment;
(III) materials; or
(IV) supplies; and
(B) tangible personal property that is considered to be used in a manner that is incidentalto farming includes:
(I) hand tools; or
(II) maintenance and janitorial equipment and supplies;
(ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a producttransferred electronically if the tangible personal property or product transferred electronically isused in an activity other than farming; and
(B) tangible personal property or a product transferred electronically that is considered tobe used in an activity other than farming includes:
(I) office equipment and supplies; or
(II) equipment and supplies used in:
(Aa) the sale or distribution of farm products;
(Bb) research; or
(Cc) transportation; or
(iii) a vehicle required to be registered by the laws of this state during the period endingtwo years after the date of the vehicle's purchase;
(19) sales of hay;
(20) exclusive sale during the harvest season of seasonal crops, seedling plants, orgarden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, orgarden, farm, or other agricultural produce is sold by:
(a) the producer of the seasonal crops, seedling plants, or garden, farm, or otheragricultural produce;
(b) an employee of the producer described in Subsection (20)(a); or
(c) a member of the immediate family of the producer described in Subsection (20)(a);
(21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued underthe Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
(22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,wholesaler, or retailer for use in packaging tangible personal property to be sold by thatmanufacturer, processor, wholesaler, or retailer;
(23) a product stored in the state for resale;
(24) (a) purchases of a product if:
(i) the product is:
(A) purchased outside of this state;
(B) brought into this state:
(I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
(II) by a nonresident person who is not living or working in this state at the time of thepurchase;
(C) used for the personal use or enjoyment of the nonresident person described inSubsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
(D) not used in conducting business in this state; and
(ii) for:
(A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of theproduct for a purpose for which the product is designed occurs outside of this state;
(B) a boat, the boat is registered outside of this state; or
(C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registeredoutside of this state;
(b) the exemption provided for in Subsection (24)(a) does not apply to:
(i) a lease or rental of a product; or
(ii) a sale of a vehicle exempt under Subsection (33); and
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, forpurposes of Subsection (24)(a), the commission may by rule define what constitutes the
following:
(i) conducting business in this state if that phrase has the same meaning in thisSubsection (24) as in Subsection (63);
(ii) the first use of a product if that phrase has the same meaning in this Subsection (24)as in Subsection (63); or
(iii) a purpose for which a product is designed if that phrase has the same meaning in thisSubsection (24) as in Subsection (63);
(25) a product purchased for resale in this state, in the regular course of business, eitherin its original form or as an ingredient or component part of a manufactured or compoundedproduct;
(26) a product upon which a sales or use tax was paid to some other state, or one of itssubdivisions, except that the state shall be paid any difference between the tax paid and the taximposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if thetax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax Act;
(27) any sale of a service described in Subsections 59-12-103(1)(b), (c), and (d) to aperson for use in compounding a service taxable under the subsections;
(28) purchases made in accordance with the special supplemental nutrition program forwomen, infants, and children established in 42 U.S.C. Sec. 1786;
(29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovensof a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification Manualof the federal Executive Office of the President, Office of Management and Budget;
(30) sales of a boat of a type required to be registered under Title 73, Chapter 18, StateBoating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
(a) not registered in this state; and
(b) (i) not used in this state; or
(ii) used in this state:
(A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a timeperiod that does not exceed the longer of:
(I) 30 days in any calendar year; or
(II) the time period necessary to transport the boat, boat trailer, or outboard motor to theborders of this state; or
(B) if the boat, boat trailer, or outboard motor is used to conduct business, for the timeperiod necessary to transport the boat, boat trailer, or outboard motor to the borders of this state;
(31) sales of aircraft manufactured in Utah;
(32) amounts paid for the purchase of telecommunications service for purposes ofproviding telecommunications service;
(33) sales, leases, or uses of the following:
(a) a vehicle by an authorized carrier; or
(b) tangible personal property that is installed on a vehicle:
(i) sold or leased to or used by an authorized carrier; and
(ii) before the vehicle is placed in service for the first time;
(34) (a) 45% of the sales price of any new manufactured home; and
(b) 100% of the sales price of any used manufactured home;
(35) sales relating to schools and fundraising sales;
(36) sales or rentals of durable medical equipment if:
(a) a person presents a prescription for the durable medical equipment; and
(b) the durable medical equipment is used for home use only;
(37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined inSection 72-11-102; and
(b) the commission shall by rule determine the method for calculating sales exemptunder Subsection (37)(a) that are not separately metered and accounted for in utility billings;
(38) sales to a ski resort of:
(a) snowmaking equipment;
(b) ski slope grooming equipment;
(c) passenger ropeways as defined in Section 72-11-102; or
(d) parts used in the repairs or renovations of equipment or passenger ropewaysdescribed in Subsections (38)(a) through (c);
(39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
(40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate foramusement, entertainment, or recreation an unassisted amusement device as defined in Section59-12-102;
(b) if a seller that sells or rents at the same business location the right to use or operatefor amusement, entertainment, or recreation one or more unassisted amusement devices and oneor more assisted amusement devices, the exemption described in Subsection (40)(a) applies if theseller separately accounts for the sales or rentals of the right to use or operate for amusement,entertainment, or recreation for the assisted amusement devices; and
(c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3, UtahAdministrative Rulemaking Act, the commission may make rules:
(i) governing the circumstances under which sales are at the same business location; and
(ii) establishing the procedures and requirements for a seller to separately account for thesales or rentals of the right to use or operate for amusement, entertainment, or recreation forassisted amusement devices;
(41) (a) sales of photocopies by:
(i) a governmental entity; or
(ii) an entity within the state system of public education, including:
(A) a school; or
(B) the State Board of Education; or
(b) sales of publications by a governmental entity;
(42) amounts paid for admission to an athletic event at an institution of higher educationthat is subject to the provisions of Title IX of the Education Amendments of 1972, 20 U.S.C.Sec. 1681 et seq.;
(43) (a) sales made to or by:
(i) an area agency on aging; or
(ii) a senior citizen center owned by a county, city, or town; or
(b) sales made by a senior citizen center that contracts with an area agency on aging;
(44) sales or leases of semiconductor fabricating, processing, research, or developmentmaterials regardless of whether the semiconductor fabricating, processing, research, ordevelopment materials:
(a) actually come into contact with a semiconductor; or
(b) ultimately become incorporated into real property;
(45) an amount paid by or charged to a purchaser for accommodations and servicesdescribed in Subsection 59-12-103(1)(i) to the extent the amount is exempt under Section59-12-104.2;
(46) beginning on September 1, 2001, the lease or use of a vehicle issued a temporarysports event registration certificate in accordance with Section 41-3-306 for the event periodspecified on the temporary sports event registration certificate;
(47) sales or uses of electricity, if the sales or uses are:
(a) made under a tariff adopted by the Public Service Commission of Utah only forpurchase of electricity produced from a new wind, geothermal, biomass, or solar power energysource, as designated in the tariff by the Public Service Commission of Utah; and
(b) for an amount of electricity that is:
(i) unrelated to the amount of electricity used by the person purchasing the electricityunder the tariff described in Subsection (47)(a); and
(ii) equivalent to the number of kilowatthours specified in the tariff described inSubsection (47)(a) that may be purchased under the tariff described in Subsection (47)(a);
(48) sales or rentals of mobility enhancing equipment if a person presents a prescriptionfor the mobility enhancing equipment;
(49) sales of water in a:
(a) pipe;
(b) conduit;
(c) ditch; or
(d) reservoir;
(50) sales of currency or coinage that constitute legal tender of the United States or of aforeign nation;
(51) (a) sales of an item described in Subsection (51)(b) if the item:
(i) does not constitute legal tender of any nation; and
(ii) has a gold, silver, or platinum content of 80% or more; and
(b) Subsection (51)(a) applies to a gold, silver, or platinum:
(i) ingot;
(ii) bar;
(iii) medallion; or
(iv) decorative coin;
(52) amounts paid on a sale-leaseback transaction;
(53) sales of a prosthetic device:
(a) for use on or in a human; and
(b) (i) for which a prescription is required; or
(ii) if the prosthetic device is purchased by a hospital or other medical facility;
(54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals ofmachinery or equipment by an establishment described in Subsection (54)(c) if the machinery orequipment is primarily used in the production or postproduction of the following media forcommercial distribution:
(i) a motion picture;
(ii) a television program;
(iii) a movie made for television;
(iv) a music video;
(v) a commercial;
(vi) a documentary; or
(vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by thecommission by administrative rule made in accordance with Subsection (54)(d); or
(b) notwithstanding Subsection (54)(a), purchases, leases, or rentals of machinery orequipment by an establishment described in Subsection (54)(c) that is used for the production orpostproduction of the following are subject to the taxes imposed by this chapter:
(i) a live musical performance;
(ii) a live news program; or
(iii) a live sporting event;
(c) the following establishments listed in the 1997 North American IndustryClassification System of the federal Executive Office of the President, Office of Managementand Budget, apply to Subsections (54)(a) and (b):
(i) NAICS Code 512110; or
(ii) NAICS Code 51219; and
(d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission may by rule:
(i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi); or
(ii) define:
(A) "commercial distribution";
(B) "live musical performance";
(C) "live news program"; or
(D) "live sporting event";
(55) (a) leases of seven or more years or purchases made on or after July 1, 2004 but onor before June 30, 2019, of machinery or equipment that:
(i) is leased or purchased for or by a facility that:
(A) is a renewable energy production facility;
(B) is located in the state; and
(C) (I) becomes operational on or after July 1, 2004; or
(II) has its generation capacity increased by one or more megawatts on or after July 1,2004 as a result of the use of the machinery or equipment;
(ii) has an economic life of five or more years; and
(iii) is used to make the facility or the increase in capacity of the facility described inSubsection (55)(a)(i) operational up to the point of interconnection with an existing transmissiongrid including:
(A) a wind turbine;
(B) generating equipment;
(C) a control and monitoring system;
(D) a power line;
(E) substation equipment;
(F) lighting;
(G) fencing;
(H) pipes; or
(I) other equipment used for locating a power line or pole; and
(b) this Subsection (55) does not apply to:
(i) machinery or equipment used in construction of:
(A) a new renewable energy production facility; or
(B) the increase in the capacity of a renewable energy production facility;
(ii) contracted services required for construction and routine maintenance activities; and
(iii) unless the machinery or equipment is used or acquired for an increase in capacity ofthe facility described in Subsection (55)(a)(i)(C)(II), machinery or equipment used or acquiredafter:
(A) the renewable energy production facility described in Subsection (55)(a)(i) isoperational as described in Subsection (55)(a)(iii); or
(B) the increased capacity described in Subsection (55)(a)(i) is operational as describedin Subsection (55)(a)(iii);
(56) (a) leases of seven or more years or purchases made on or after July 1, 2004 but onor before June 30, 2019, of machinery or equipment that:
(i) is leased or purchased for or by a facility that:
(A) is a waste energy production facility;
(B) is located in the state; and
(C) (I) becomes operational on or after July 1, 2004; or
(II) has its generation capacity increased by one or more megawatts on or after July 1,2004 as a result of the use of the machinery or equipment;
(ii) has an economic life of five or more years; and
(iii) is used to make the facility or the increase in capacity of the facility described inSubsection (56)(a)(i) operational up to the point of interconnection with an existing transmissiongrid including:
(A) generating equipment;
(B) a control and monitoring system;
(C) a power line;
(D) substation equipment;
(E) lighting;
(F) fencing;
(G) pipes; or
(H) other equipment used for locating a power line or pole; and
(b) this Subsection (56) does not apply to:
(i) machinery or equipment used in construction of:
(A) a new waste energy facility; or
(B) the increase in the capacity of a waste energy facility;
(ii) contracted services required for construction and routine maintenance activities; and
(iii) unless the machinery or equipment is used or acquired for an increase in capacitydescribed in Subsection (56)(a)(i)(C)(II), machinery or equipment used or acquired after:
(A) the waste energy facility described in Subsection (56)(a)(i) is operational asdescribed in Subsection (56)(a)(iii); or
(B) the increased capacity described in Subsection (56)(a)(i) is operational as describedin Subsection (56)(a)(iii);
(57) (a) leases of five or more years or purchases made on or after July 1, 2004 but on orbefore June 30, 2019, of machinery or equipment that:
(i) is leased or purchased for or by a facility that:
(A) is located in the state;
(B) produces fuel from biomass energy including:
(I) methanol; or
(II) ethanol; and
(C) (I) becomes operational on or after July 1, 2004; or
(II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004 as aresult of the installation of the machinery or equipment;
(ii) has an economic life of five or more years; and
(iii) is installed on the facility described in Subsection (57)(a)(i);
(b) this Subsection (57) does not apply to:
(i) machinery or equipment used in construction of:
(A) a new facility described in Subsection (57)(a)(i); or
(B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
(ii) contracted services required for construction and routine maintenance activities; and
(iii) unless the machinery or equipment is used or acquired for an increase in capacitydescribed in Subsection (57)(a)(i)(C)(II), machinery or equipment used or acquired after:
(A) the facility described in Subsection (57)(a)(i) is operational; or
(B) the increased capacity described in Subsection (57)(a)(i) is operational;
(58) (a) subject to Subsection (58)(b) or (c), sales of tangible personal property or aproduct transferred electronically to a person within this state if that tangible personal property orproduct transferred electronically is subsequently shipped outside the state and incorporatedpursuant to contract into and becomes a part of real property located outside of this state;
(b) the exemption under Subsection (58)(a) is not allowed to the extent that the otherstate or political entity to which the tangible personal property is shipped imposes a sales, use,gross receipts, or other similar transaction excise tax on the transaction against which the otherstate or political entity allows a credit for sales and use taxes imposed by this chapter; and
(c) notwithstanding the time period of Subsection 59-1-1410(8) for filing for a refund, aperson may claim the exemption allowed by this Subsection (58) for a sale by filing for a refund:
(i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
(ii) as if this Subsection (58) as in effect on July 1, 2008, were in effect on the day onwhich the sale is made;
(iii) if the person did not claim the exemption allowed by this Subsection (58) for thesale prior to filing for the refund;
(iv) for sales and use taxes paid under this chapter on the sale;
(v) in accordance with Section 59-1-1410; and
(vi) subject to any extension allowed for filing for a refund under Section 59-1-1410, ifthe person files for the refund on or before June 30, 2011;
(59) purchases:
(a) of one or more of the following items in printed or electronic format:
(i) a list containing information that includes one or more:
(A) names; or
(B) addresses; or
(ii) a database containing information that includes one or more:
(A) names; or
(B) addresses; and
(b) used to send direct mail;
(60) redemptions or repurchases of a product by a person if that product was:
(a) delivered to a pawnbroker as part of a pawn transaction; and
(b) redeemed or repurchased within the time period established in a written agreementbetween the person and the pawnbroker for redeeming or repurchasing the product;
(61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
(i) is purchased or leased by, or on behalf of, a telecommunications service provider; and
(ii) has a useful economic life of one or more years; and
(b) the following apply to Subsection (61)(a):
(i) telecommunications enabling or facilitating equipment, machinery, or software;
(ii) telecommunications equipment, machinery, or software required for 911 service;
(iii) telecommunications maintenance or repair equipment, machinery, or software;
(iv) telecommunications switching or routing equipment, machinery, or software; or
(v) telecommunications transmission equipment, machinery, or software;
(62) (a) beginning on July 1, 2006, and ending on June 30, 2016, purchases of tangiblepersonal property or a product transferred electronically that are used in the research anddevelopment of coal-to-liquids, oil shale, or tar sands technology; and
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission may, for purposes of Subsection (62)(a), make rules defining what constitutespurchases of tangible personal property or a product transferred electronically that are used in theresearch and development of coal-to-liquids, oil shale, and tar sands technology;
(63) (a) purchases of tangible personal property or a product transferred electronically if:
(i) the tangible personal property or product transferred electronically is:
(A) purchased outside of this state;
(B) brought into this state at any time after the purchase described in Subsection(63)(a)(i)(A); and
(C) used in conducting business in this state; and
(ii) for:
(A) tangible personal property or a product transferred electronically other than thetangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property fora purpose for which the property is designed occurs outside of this state; or
(B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registeredoutside of this state;
(b) the exemption provided for in Subsection (63)(a) does not apply to:
(i) a lease or rental of tangible personal property or a product transferred electronically;or
(ii) a sale of a vehicle exempt under Subsection (33); and
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, forpurposes of Subsection (63)(a), the commission may by rule define what constitutes thefollowing:
(i) conducting business in this state if that phrase has the same meaning in thisSubsection (63) as in Subsection (24);
(ii) the first use of tangible personal property or a product transferred electronically ifthat phrase has the same meaning in this Subsection (63) as in Subsection (24); or
(iii) a purpose for which tangible personal property or a product transferred electronicallyis designed if that phrase has the same meaning in this Subsection (63) as in Subsection (24);
(64) sales of disposable home medical equipment or supplies if:
(a) a person presents a prescription for the disposable home medical equipment orsupplies;
(b) the disposable home medical equipment or supplies are used exclusively by theperson to whom the prescription described in Subsection (64)(a) is issued; and
(c) the disposable home medical equipment and supplies are listed as eligible forpayment under:
(i) Title XVIII, federal Social Security Act; or
(ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
(65) sales:
(a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit DistrictAct; or
(b) of tangible personal property to a subcontractor of a public transit district, if thetangible personal property is:
(i) clearly identified; and
(ii) installed or converted to real property owned by the public transit district;
(66) sales of construction materials:
(a) purchased on or after July 1, 2010;
(b) purchased by, on behalf of, or for the benefit of an international airport:
(i) located within a county of the first class; and
(ii) that has a United States customs office on its premises; and
(c) if the construction materials are:
(i) clearly identified;
(ii) segregated; and
(iii) installed or converted to real property:
(A) owned or operated by the international airport described in Subsection (66)(b); and
(B) located at the international airport described in Subsection (66)(b);
(67) sales of construction materials:
(a) purchased on or after July 1, 2008;
(b) purchased by, on behalf of, or for the benefit of a new airport:
(i) located within a county of the second class; and
(ii) that is owned or operated by a city in which an airline as defined in Section 59-2-102is headquartered; and
(c) if the construction materials are:
(i) clearly identified;
(ii) segregated; and
(iii) installed or converted to real property:
(A) owned or operated by the new airport described in Subsection (67)(b);
(B) located at the new airport described in Subsection (67)(b); and
(C) as part of the construction of the new airport described in Subsection (67)(b);
(68) sales of fuel to a common carrier that is a railroad for use in a locomotive engine;
(69) purchases and sales described in Section 9-3-511; and
(70) (a) sales of tangible personal property to an aircraft maintenance, repair, and
overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of afixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration listsa state or country other than this state as the location of registry of the fixed wing turbinepowered aircraft; or
(b) sales of tangible personal property by an aircraft maintenance, repair, and overhaulprovider in connection with the maintenance, repair, overhaul, or refurbishment in this state of afixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration listsa state or country other than this state as the location of registry of the fixed wing turbinepowered aircraft.
Amended by Chapter 88, 2010 General Session
Amended by Chapter 209, 2010 General Session
Amended by Chapter 364, 2010 General Session