59-12-103 - Sales and use tax base -- Rates -- Effective dates -- Use of sales and use tax revenues. - Utah Statutes

59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and usetax revenues.
(1) A tax is imposed on the purchaser as provided in this part for amounts paid orcharged for the following transactions:
(a) retail sales of tangible personal property made within the state;
(b) amounts paid for:
(i) telecommunications service, other than mobile telecommunications service, thatoriginates and terminates within the boundaries of this state;
(ii) mobile telecommunications service that originates and terminates within theboundaries of one state only to the extent permitted by the Mobile Telecommunications SourcingAct, 4 U.S.C. Sec. 116 et seq.; or
(iii) an ancillary service associated with a:
(A) telecommunications service described in Subsection (1)(b)(i); or
(B) mobile telecommunications service described in Subsection (1)(b)(ii);
(c) sales of the following for commercial use:
(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(d) sales of the following for residential use:
(i) gas;
(ii) electricity;
(iii) heat;
(iv) coal;
(v) fuel oil; or
(vi) other fuels;
(e) sales of prepared food;
(f) except as provided in Section 59-12-104, amounts paid or charged as admission oruser fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries, fairs,races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuittelevision broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golfdriving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails, tenniscourts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises, horsebackrides, sports activities, or any other amusement, entertainment, recreation, exhibition, cultural, orathletic activity;
(g) amounts paid or charged for services for repairs or renovations of tangible personalproperty, unless Section 59-12-104 provides for an exemption from sales and use tax for:
(i) the tangible personal property; and
(ii) parts used in the repairs or renovations of the tangible personal property described inSubsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations ofthat tangible personal property;
(h) except as provided in Subsection 59-12-104(7), amounts paid or charged for assisted

cleaning or washing of tangible personal property;
(i) amounts paid or charged for tourist home, hotel, motel, or trailer courtaccommodations and services that are regularly rented for less than 30 consecutive days;
(j) amounts paid or charged for laundry or dry cleaning services;
(k) amounts paid or charged for leases or rentals of tangible personal property if withinthis state the tangible personal property is:
(i) stored;
(ii) used; or
(iii) otherwise consumed;
(l) amounts paid or charged for tangible personal property if within this state the tangiblepersonal property is:
(i) stored;
(ii) used; or
(iii) consumed; and
(m) amounts paid or charged for a sale:
(i) (A) of a product that:
(I) is transferred electronically; and
(II) would be subject to a tax under this chapter if the product was transferred in amanner other than electronically; or
(B) of a repair or renovation of a product that:
(I) is transferred electronically; and
(II) would be subject to a tax under this chapter if the product was transferred in amanner other than electronically; and
(ii) regardless of whether the sale provides:
(A) a right of permanent use of the product; or
(B) a right to use the product that is less than a permanent use, including a right:
(I) for a definite or specified length of time; and
(II) that terminates upon the occurrence of a condition.
(2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax isimposed on a transaction described in Subsection (1) equal to the sum of:
(i) a state tax imposed on the transaction at a tax rate equal to the sum of:
(A) 4.70%; and
(B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Salesand Use Tax Act, if the location of the transaction as determined under Sections 59-12-211through 59-12-215 is in a county in which the state imposes the tax under Part 18, AdditionalState Sales and Use Tax Act; and
(II) the tax rate the state imposes in accordance with Part 20, Supplemental State Salesand Use Tax Act, if the location of the transaction as determined under Sections 59-12-211through 59-12-215 is in a city, town, or the unincorporated area of a county in which the stateimposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on thetransaction under this chapter other than this part.
(b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposedon a transaction described in Subsection (1)(d) equal to the sum of:
(i) a state tax imposed on the transaction at a tax rate of 2%; and

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(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on thetransaction under this chapter other than this part.
(c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposedon amounts paid or charged for food and food ingredients equal to the sum of:
(i) a state tax imposed on the amounts paid or charged for food and food ingredients at atax rate of 1.75%; and
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on theamounts paid or charged for food and food ingredients under this chapter other than this part.
(d) (i) For a bundled transaction that is attributable to food and food ingredients andtangible personal property other than food and food ingredients, a state tax and a local tax isimposed on the entire bundled transaction equal to the sum of:
(A) a state tax imposed on the entire bundled transaction equal to the sum of:
(I) the tax rate described in Subsection (2)(a)(i)(A); and
(II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State Salesand Use Tax Act, if the location of the transaction as determined under Sections 59-12-211through 59-12-215 is in a county in which the state imposes the tax under Part 18, AdditionalState Sales and Use Tax Act; and
(Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State Salesand Use Tax Act, if the location of the transaction as determined under Sections 59-12-211through 59-12-215 is in a city, town, or the unincorporated area of a county in which the stateimposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
(B) a local tax imposed on the entire bundled transaction at the sum of the tax ratesdescribed in Subsection (2)(a)(ii).
(ii) Subject to Subsection (2)(d)(iii), for a bundled transaction other than a bundledtransaction described in Subsection (2)(d)(i):
(A) if the sales price of the bundled transaction is attributable to tangible personalproperty, a product, or a service that is subject to taxation under this chapter and tangiblepersonal property, a product, or service that is not subject to taxation under this chapter, theentire bundled transaction is subject to taxation under this chapter unless:
(I) the seller is able to identify by reasonable and verifiable standards the tangiblepersonal property, product, or service that is not subject to taxation under this chapter from thebooks and records the seller keeps in the seller's regular course of business; or
(II) state or federal law provides otherwise; or
(B) if the sales price of a bundled transaction is attributable to two or more items oftangible personal property, products, or services that are subject to taxation under this chapter atdifferent rates, the entire bundled transaction is subject to taxation under this chapter at thehigher tax rate unless:
(I) the seller is able to identify by reasonable and verifiable standards the tangiblepersonal property, product, or service that is subject to taxation under this chapter at the lowertax rate from the books and records the seller keeps in the seller's regular course of business; or
(II) state or federal law provides otherwise.
(iii) For purposes of Subsection (2)(d)(ii), books and records that a seller keeps in theseller's regular course of business includes books and records the seller keeps in the regularcourse of business for nontax purposes.
(e) Subject to Subsections (2)(f) and (g), a tax rate repeal or tax rate change for a tax rate

imposed under the following shall take effect on the first day of a calendar quarter:
(i) Subsection (2)(a)(i)(A);
(ii) Subsection (2)(b)(i);
(iii) Subsection (2)(c)(i); or
(iv) Subsection (2)(d)(i)(A)(I).
(f) (i) A tax rate increase shall take effect on the first day of the first billing period thatbegins after the effective date of the tax rate increase if the billing period for the transactionbegins before the effective date of a tax rate increase imposed under:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i);
(C) Subsection (2)(c)(i); or
(D) Subsection (2)(d)(i)(A)(I).
(ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the lastbilling period that began before the effective date of the repeal of the tax or the tax rate decreaseif the billing period for the transaction begins before the effective date of the repeal of the tax orthe tax rate decrease imposed under:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i);
(C) Subsection (2)(c)(i); or
(D) Subsection (2)(d)(i)(A)(I).
(g) (i) For a tax rate described in Subsection (2)(g)(ii), if a tax due on a catalogue sale iscomputed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal orchange in a tax rate takes effect:
(A) on the first day of a calendar quarter; and
(B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
(ii) Subsection (2)(g)(i) applies to the tax rates described in the following:
(A) Subsection (2)(a)(i)(A);
(B) Subsection (2)(b)(i);
(C) Subsection (2)(c)(i); or
(D) Subsection (2)(d)(i)(A)(I).
(iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission may by rule define the term "catalogue sale."
(3) (a) The following state taxes shall be deposited into the General Fund:
(i) the tax imposed by Subsection (2)(a)(i)(A);
(ii) the tax imposed by Subsection (2)(b)(i);
(iii) the tax imposed by Subsection (2)(c)(i); or
(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
(b) The following local taxes shall be distributed to a county, city, or town as provided inthis chapter:
(i) the tax imposed by Subsection (2)(a)(ii);
(ii) the tax imposed by Subsection (2)(b)(ii);
(iii) the tax imposed by Subsection (2)(c)(ii); and
(iv) the tax imposed by Subsection (2)(d)(i)(B).
(4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b) through

(g):
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
(A) by a 1/16% tax rate on the transactions described in Subsection (1); and
(B) for the fiscal year; or
(ii) $17,500,000.
(b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount describedin Subsection (4)(a) shall be transferred each year as dedicated credits to the Department ofNatural Resources to:
(A) implement the measures described in Subsections 79-2-303(3)(a) through (d) toprotect sensitive plant and animal species; or
(B) award grants, up to the amount authorized by the Legislature in an appropriations act,to political subdivisions of the state to implement the measures described in Subsections79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
(ii) Money transferred to the Department of Natural Resources under Subsection (4)(b)(i)may not be used to assist the United States Fish and Wildlife Service or any other person to listor attempt to have listed a species as threatened or endangered under the Endangered Species Actof 1973, 16 U.S.C. Sec. 1531 et seq.
(iii) At the end of each fiscal year:
(A) 50% of any unexpended dedicated credits shall lapse to the Water ResourcesConservation and Development Fund created in Section 73-10-24;
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater LoanProgram Subaccount created in Section 73-10c-5; and
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water LoanProgram Subaccount created in Section 73-10c-5.
(c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described inSubsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fundcreated in Section 4-18-6.
(d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described inSubsection (4)(a) shall be transferred each year as dedicated credits to the Division of WaterRights to cover the costs incurred in hiring legal and technical staff for the adjudication of waterrights.
(ii) At the end of each fiscal year:
(A) 50% of any unexpended dedicated credits shall lapse to the Water ResourcesConservation and Development Fund created in Section 73-10-24;
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater LoanProgram Subaccount created in Section 73-10c-5; and
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water LoanProgram Subaccount created in Section 73-10c-5.
(e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount describedin Subsection (4)(a) shall be deposited in the Water Resources Conservation and DevelopmentFund created in Section 73-10-24 for use by the Division of Water Resources.
(ii) In addition to the uses allowed of the Water Resources Conservation andDevelopment Fund under Section 73-10-24, the Water Resources Conservation andDevelopment Fund may also be used to:
(A) conduct hydrologic and geotechnical investigations by the Division of Water

Resources in a cooperative effort with other state, federal, or local entities, for the purpose ofquantifying surface and ground water resources and describing the hydrologic systems of an areain sufficient detail so as to enable local and state resource managers to plan for and accommodategrowth in water use without jeopardizing the resource;
(B) fund state required dam safety improvements; and
(C) protect the state's interest in interstate water compact allocations, including the hiringof technical and legal staff.
(f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described inSubsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount created inSection 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
(g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described inSubsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount created inSection 73-10c-5 for use by the Division of Drinking Water to:
(i) provide for the installation and repair of collection, treatment, storage, anddistribution facilities for any public water system, as defined in Section 19-4-102;
(ii) develop underground sources of water, including springs and wells; and
(iii) develop surface water sources.
(5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,2006, the difference between the following amounts shall be expended as provided in thisSubsection (5), if that difference is greater than $1:
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for thefiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
(ii) $17,500,000.
(b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
(A) transferred each fiscal year to the Department of Natural Resources as dedicatedcredits; and
(B) expended by the Department of Natural Resources for watershed rehabilitation orrestoration.
(ii) At the end of each fiscal year, 100% of any unexpended dedicated credits describedin Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fundcreated in Section 73-10-24.
(c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of theremaining difference described in Subsection (5)(a) shall be:
(A) transferred each fiscal year to the Division of Water Resources as dedicated credits;and
(B) expended by the Division of Water Resources for cloud-seeding projects authorizedby Title 73, Chapter 15, Modification of Weather.
(ii) At the end of each fiscal year, 100% of any unexpended dedicated credits describedin Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fundcreated in Section 73-10-24.
(d) After making the transfers required by Subsections (5)(b) and (c), 94% of theremaining difference described in Subsection (5)(a) shall be deposited into the Water ResourcesConservation and Development Fund created in Section 73-10-24 for use by the Division ofWater Resources for:
(i) preconstruction costs:

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(A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter26, Bear River Development Act; and
(B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline projectauthorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
(ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,Chapter 26, Bear River Development Act;
(iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline projectauthorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
(iv) other uses authorized under Sections 73-10-24, 73-10-25.1, 73-10-30, andSubsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
(e) Any unexpended monies described in Subsection (5)(d) that remain in the WaterResources Conservation and Development Fund at the end of the fiscal year are nonlapsing.
(f) After making the transfers required by Subsections (5)(b) and (c) and subject toSubsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall betransferred each year as dedicated credits to the Division of Water Rights to cover the costsincurred for employing additional technical staff for the administration of water rights.
(g) At the end of each fiscal year, any unexpended dedicated credits described inSubsection (5)(f) over $150,000 lapse to the Water Resources Conservation and DevelopmentFund created in Section 73-10-24.
(6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in theTransportation Fund created by Section 72-2-102.
(7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies, beginningon January 1, 2000, the Division of Finance shall deposit into the Centennial Highway FundRestricted Account created in Section 72-2-118 a portion of the taxes listed under Subsection(3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable transactions underSubsection (1).
(b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds havebeen paid off and the highway projects completed that are intended to be paid from revenuesdeposited in the Centennial Highway Fund Restricted Account as determined by the ExecutiveAppropriations Committee under Subsection 72-2-118(6)(d), the Division of Finance shalldeposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 a portionof the taxes listed under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate onthe taxable transactions under Subsection (1).
(8) (a) Notwithstanding Subsection (3)(a) and in addition to the amount deposited inSubsection (7)(a), for the 2010-11 fiscal year only, the Division of Finance shall deposit into theCentennial Highway Fund Restricted Account created by Section 72-2-118 a portion of the taxeslisted under Subsection (3)(a) equal to 1.93% of the revenues collected from the following taxes,which represents a portion of the approximately 17% of sales and use tax revenues generatedannually by the sales and use tax on vehicles and vehicle-related products:
(i) the tax imposed by Subsection (2)(a)(i)(A);
(ii) the tax imposed by Subsection (2)(b)(i);
(iii) the tax imposed by Subsection (2)(c)(i); and
(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).

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(b) Notwithstanding Subsection (3)(a), in addition to the amount deposited in Subsection(7)(a), and until Subsection (8)(c) applies, for a fiscal year beginning on or after July 1, 2011, theDivision of Finance shall deposit into the Centennial Highway Fund Restricted Account createdby Section 72-2-118 a portion of the taxes listed under Subsection (3)(a) equal to 8.3% of therevenues collected from the following taxes, which represents a portion of the approximately17% of sales and use tax revenues generated annually by the sales and use tax on vehicles andvehicle-related products:
(i) the tax imposed by Subsection (2)(a)(i)(A);
(ii) the tax imposed by Subsection (2)(b)(i);
(iii) the tax imposed by Subsection (2)(c)(i); and
(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
(c) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited underSubsection (7)(b), when the highway general obligation bonds have been paid off and thehighway projects completed that are intended to be paid from revenues deposited in theCentennial Highway Fund Restricted Account as determined by the Executive AppropriationsCommittee under Subsection 72-2-118(6)(d), the Division of Finance shall deposit into theTransportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listedunder Subsection (3)(a) equal to 8.3% of the revenues collected from the following taxes, whichrepresents a portion of the approximately 17% of sales and use tax revenues generated annuallyby the sales and use tax on vehicles and vehicle-related products:
(i) the tax imposed by Subsection (2)(a)(i)(A);
(ii) the tax imposed by Subsection (2)(b)(i);
(iii) the tax imposed by Subsection (2)(c)(i); and
(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
(9) (a) Notwithstanding Subsection (3)(a) and for the fiscal year 2008-09 only, theDivision of Finance shall deposit $55,000,000 of the revenues generated by the taxes listed underSubsection (3)(a) into the Critical Highway Needs Fund created by Section 72-2-125.
(b) Notwithstanding Subsection (3)(a) and until Subsection (9)(c) applies, for a fiscalyear beginning on or after July 1, 2009, the Division of Finance shall annually deposit$90,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into theCritical Highway Needs Fund created by Section 72-2-125.
(c) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited underSubsections (7) and (8), when the general obligation bonds authorized by Section 63B-16-101have been paid off and the highway projects completed that are included in the prioritized projectlist under Subsection 72-2-125(4) as determined in accordance with Subsection 72-2-125(6), theDivision of Finance shall annually deposit $90,000,000 of the revenues generated by the taxeslisted under Subsection (3)(a) into the Transportation Investment Fund of 2005 created bySection 72-2-124.
(10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund createdby Section 9-4-1409 and expended as provided in Section 9-4-1409.
(11) (a) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection(11)(a)(ii), and until Subsection (11)(b) applies, beginning on January 1, 2009, the Division ofFinance shall deposit into the Critical Highway Needs Fund created by Section 72-2-125 theamount of tax revenue generated by a .025% tax rate on the transactions described in Subsection

(1).
(ii) For purposes of Subsection (11)(a)(i), the Division of Finance may not deposit intothe Critical Highway Needs Fund any tax revenue generated by amounts paid or charged for foodand food ingredients, except for tax revenue generated by a bundled transaction attributable tofood and food ingredients and tangible personal property other than food and food ingredientsdescribed in Subsection (2)(e).
(b) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b)(ii),and in addition to any amounts deposited under Subsections (7), (9), and (10), when the generalobligation bonds authorized by Section 63B-16-101 have been paid off and the highway projectscompleted that are included in the prioritized project list under Subsection 72-2-125(4) asdetermined in accordance with Subsection 72-2-125(6), the Division of Finance shall deposit intothe Transportation Investment Fund of 2005 created by Section 72-2-124 the amount of taxrevenue generated by a .025% tax rate on the transactions described in Subsection (1).
(ii) For purposes of Subsection (11)(b)(i), the Division of Finance may not deposit intothe Transportation Investment Fund of 2005 any tax revenue generated by amounts paid orcharged for food and food ingredients, except for tax revenue generated by a bundled transactionattributable to food and food ingredients and tangible personal property other than food and foodingredients described in Subsection (2)(e).
(12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection (12)(b),beginning on January 1, 2009, the Division of Finance shall deposit into the Transportation Fundcreated by Section 72-2-102 the amount of tax revenue generated by a .025% tax rate on thetransactions described in Subsection (1) to be expended to address chokepoints in constructionmanagement.
(b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into theTransportation Fund any tax revenue generated by amounts paid or charged for food and foodingredients, except for tax revenue generated by a bundled transaction attributable to food andfood ingredients and tangible personal property other than food and food ingredients described inSubsection (2)(e).

Amended by Chapter 412, 2010 General Session