59-12-214 - Location of a transaction involving the lease or rental of certain tangible personal property or a product transferred electronically.
59-12-214. Location of a transaction involving the lease or rental of certain tangiblepersonal property or a product transferred electronically.
(1) As used in this section:
(a) "Primary property location" means an address for tangible personal property or aproduct transferred electronically:
(i) a lessee provides to a lessor; and
(ii) that is available to the lessor from the lessor's records maintained in the ordinarycourse of business.
(b) "Primary property location" does not include an address described in Subsection(1)(a) if use of that address constitutes bad faith.
(2) (a) Except as provided in Subsection (2)(b) and notwithstanding Section 59-12-211,if a lease or rental of tangible personal property or a product transferred electronically that issubject to taxation under this part requires recurring periodic payments:
(i) the location of the transaction for any down payment and for the first recurringperiodic payment is as provided in Section 59-12-211; and
(ii) the location of the transaction for the second recurring periodic payment andsubsequent recurring periodic payments is the primary property or product location for each timeperiod covered by the recurring periodic payment.
(b) If a transaction subject to taxation under this chapter involving a lease or rental of anaircraft or a motor vehicle, semitrailer, or trailer that is not transportation equipment as defined inSection 59-12-211 requires recurring periodic payments, the location of the transaction for adown payment and for each recurring periodic payment is the primary property location for eachtime period covered by the recurring periodic payment.
(3) Notwithstanding Section 59-12-211, if a transaction involving a lease or rental of thefollowing does not require recurring periodic payments, the location of the transaction is asprovided in Section 59-12-211 for each lease or rental payment for:
(a) tangible personal property or a product transferred electronically that is subject totaxation under this chapter; or
(b) an aircraft or a motor vehicle, semitrailer, or trailer that is:
(i) not transportation equipment under Section 59-12-211; and
(ii) subject to taxation under this chapter.
(4) This section does not affect the imposition or computation of a tax under this chapteron:
(a) a lease or rental of tangible personal property or a product transferred electronicallythat is subject to taxation under this chapter on:
(i) the basis of a lump sum; or
(ii) an accelerated basis; or
(b) the acquisition of tangible personal property or a product transferred electronically ifthat tangible personal property or product transferred electronically is:
(i) subject to taxation under this chapter; and
(ii) for lease.
Enacted by Chapter 384, 2008 General Session