| (1) |
As used in this section:
Terms Used In Utah Code 59-12-214- Aircraft: means the same as that term is defined in Section 72-10-102. See Utah Code 59-12-102
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Motor vehicle: means the same as that term is defined in Section 41-1a-102. See Utah Code 59-12-102
- Personal property: includes :Utah Code 68-3-12.5
- Personal property: All property that is not real property.
- product transferred electronically: means a product transferred electronically that would be subject to a tax under this chapter if that product was transferred in a manner other than electronically. See Utah Code 59-12-102
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- rental: includes an agreement covering a motor vehicle and trailer if the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue Code. See Utah Code 59-12-102
- Tangible personal property: includes :
| (v) | prewritten computer software, regardless of the manner in which the prewritten computer software is transferred. See Utah Code 59-12-102- Use: means the exercise of any right or power over tangible personal property, a product transferred electronically, or a service under Subsection 59-12-103(1), incident to the ownership or the leasing of that tangible personal property, product transferred electronically, or service. See Utah Code 59-12-102
- vehicle: includes :
| (i) | a vehicle described in Subsection (143)(a); or |
| (ii) | | (C) | railroad work equipment; or |
| (D) | other railroad rolling stock. See Utah Code 59-12-102 |
| (a) |
“Primary property location” means an address for tangible personal property or a product 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 ordinary course of business. |
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| (b) |
“Primary property location” does not include an address described in Subsection (1)(a) if use of that address constitutes bad faith. |
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| (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 is subject to taxation under this part requires recurring periodic payments:
| (i) |
the location of the transaction for any down payment and for the first recurring periodic payment is as provided in Section 59-12-211; and |
| (ii) |
the location of the transaction for the second recurring periodic payment and subsequent recurring periodic payments is the primary property or product location for each time period covered by the recurring periodic payment. |
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| (b) |
If a transaction subject to taxation under this chapter involving a lease or rental of an aircraft or a motor vehicle, semitrailer, or trailer that is not transportation equipment as defined in Section 59-12-211 requires recurring periodic payments, the location of the transaction for a down payment and for each recurring periodic payment is the primary property location for each time period covered by the recurring periodic payment. |
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| (3) |
Notwithstanding Section 59-12-211, if a transaction involving a lease or rental of the following does not require recurring periodic payments, the location of the transaction is as provided in Section 59-12-211 for each lease or rental payment for:
| (a) |
tangible personal property or a product transferred electronically that is subject to taxation 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. |
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| (4) |
This section does not affect the imposition or computation of a tax under this chapter on:
| (a) |
a lease or rental of tangible personal property or a product transferred electronically that is subject to taxation under this chapter on:
| (i) |
the basis of a lump sum; or |
| (ii) |
an accelerated basis; or |
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| (b) |
the acquisition of tangible personal property or a product transferred electronically if that tangible personal property or product transferred electronically is:
| (i) |
subject to taxation under this chapter; and |
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Enacted by Chapter 384, 2008 General Session
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