Sales Tax Exemptions by Category

(Source: Utah Code Section 59-12-104 and Utah State Tax Commission)
How the document is organized: Below is a list of the sales tax exemptions found in Section 59-12-104. Exemptions are grouped into two major
categories: (1) business inputs and (2) non-business inputs. Non-business inputs are further categorized into charitable / government, economic
development, economic efficiency, healthcare, and other. Within categories, exemptions are listed by subsection number.
Estimated State Sales Tax Amount: If available, a static fiscal estimate based on the value of exempt sales and tax rates for a given fiscal year is shown
for each exemption. These estimates were taken from the three most recent annual reports produced by the Tax Commission or, if the exemption was
recently adopted, the fiscal note of the bill that enacted the exemption. Unlike taxable sales, exempt amounts are not usually reported. Tax Commission
estimates ". . . are either based on a time adjusted fiscal note or . . . publicly available, outside, data sources" (see 2016 Annual Report, Page 61). Some
exemptions may influence the behavior of businesses and individuals in such a way that additional tax revenue (sales, income, property, etc.) is
generated that the state would not have otherwise received. These dynamic fiscal impacts are not captured in the estimates provided in this document.
Quality and Estimated State Sales Tax Amount
(59-12-104)

Year Enacted
Subsection

Brief Description of Sales Tax Exemption (n/a means there is little or no reliable data available upon which
(based on TRC Availability of Data
(click here to view Section 59-12-104 then navigate to the specified to base an estimate; click to view annual reports)
data and recent (provided by TC; good,
subsection to see the statutory language for a particular exemption)
legislation) fair, or poor) FY 2014 FY 2015 FY 2016
Business Inputs (one category; exemptions for purchases that are (1) primarily made by businesses or (2) limited to businesses)
Business Inputs - All
Food and alcoholic beverages to a commercial airline
(4)(a) 1983 Poor $285,000 $298,000 $306,000
for in-flight consumption
Aircraft parts and equipment sold by the manufacturer
(5) 1984 Fair $530,000 $626,000 $600,000
for installation in certain aircraft
Commercials, films, and other audio / video sold to
(6) 1981 Poor $60,000 $58,000 $64,000
broadcasters and others
(11) Pollution control equipment (includes consumables) 1973 Good $5,000,000 $7,700,000 $7,700,000
Machinery, equipment, or parts to manufacturers and
(14) 1985 Fair $112,080,000 $121,080,000 $122,077,000
others (three-year economic life)
Certain equipment under certain aerospace or
(15) 1986 Poor $840,000 $991,000 $948,000
electronics contracts with the federal government
(18) Certain products primarily used in farming operations 1979 Good $43,000,000 $43,000,000 $43,000,000

(19) Hay 1995 Good $10,200,000 $10,300,000 $9,209,000

Non-returnable containers, labels, and casings used for
(22) 1969 Fair $16,600,000 $16,897,000 $17,000,000
packaging goods

6/16/2017 Page 1 of 6
 Quality and Estimated State Sales Tax Amount

(59-12-104)
Year Enacted
Subsection
Brief Description of Sales Tax Exemption (n/a means there is little or no reliable data available upon which
(based on TRC Availability of Data
(click here to view Section 59-12-104 then navigate to the specified to base an estimate; click to view annual reports)
data and recent (provided by TC; good,
subsection to see the statutory language for a particular exemption)
legislation) fair, or poor) FY 2014 FY 2015 FY 2016

(23) Product stored in the state for resale 1937 Poor n/a n/a n/a
Product purchased for resale in its original form or as a
(25) 1937 Poor $30,000,000 $30,756,000 $31,000,000
component part of a manufactured good
Intrastate telecommunications services or fuel for use
(27) 1933 Poor $9,000,000 $8,729,000 $9,000,000
in compounding a taxable service
(29) Certain products used by a steel mill 1987 Fair $206,000 $297,000 $317,000
Telecommunications service for purposes of providing
(32) 1990 Poor n/a n/a n/a
telecommunications service
Vehicle or products installed on a vehicle by an
(33) 1995 Poor $1,200,000 $1,397,000 $1,497,000
authorized carrier
(37) Electricity to ski resorts for lifts 1996 Fair $110,000 $130,000 $151,000

(38) Ski resort equipment and parts 1996 Fair $330,000 $386,000 $449,000
Natural gas, electricity, coal, fuel oil, and other fuels
(39) 1996 Fair $27,000,000 $26,954,000 $27,000,000
for industrial use
Semiconductor fabricating, processing, research, or
(44) 2001 Fair <$7,000,000 <$7,000,000 <$7,000,000
development materials
(46) Vehicles used for temporary sporting events 2001 Poor n/a n/a n/a

(52) Sale-leaseback transaction - Poor n/a n/a n/a

Machinery or equipment purchased by the film
(54) 1981 Poor $518,000 $518,000 $541,000
industry and used to produce certain media
Certain machinery, equipment, etc. for or by an
(55) 2004 Poor n/a n/a n/a
alternative energy electricity production facility
Certain machinery, equipment, etc. for or by a waste
(56) 2004 Poor n/a n/a n/a
energy production facility
Certain purchases for or by a facility that produces fuel
(57) 2004 Poor n/a n/a n/a
from alternative energy (must be installed on facility)

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 Quality and Estimated State Sales Tax Amount

(59-12-104)
Year Enacted
Subsection
Brief Description of Sales Tax Exemption (n/a means there is little or no reliable data available upon which
(based on TRC Availability of Data
(click here to view Section 59-12-104 then navigate to the specified to base an estimate; click to view annual reports)
data and recent (provided by TC; good,
subsection to see the statutory language for a particular exemption)
legislation) fair, or poor) FY 2014 FY 2015 FY 2016
Building materials shipped out of state and
(58) 1989 Poor $300,000 $298,000 $303,000
incorporated into real property
(59) Address list or database used to send direct mail 2005 Poor $1,400,000 $1,400,000 $1,300,000
Certain machinery, equipment, or software purchased
(61) 2006 Fair $7,400,000 $7,877,000 $7,390,000
by or for a telecommunications service provider
Products used in the research and development of
(62) 2006 Poor <$500,000 <$500,000 <$500,000
alternative energy technology
Business property purchased outside the state and
(63) 2007 Poor - n/a -
brought into the state after first use
Construction materials for Salt Lake International
(66) 2010 Poor n/a n/a n/a
Airport (material converted to real property only)
Construction materials for new airport in 2nd class
(67) 2010 Poor - - -
county (material converted to real property only)
Fuel sold to a common carrier that is a railroad and
(68) 2008 Fair $1,200,000 $1,300,000 $1,316,000
used in a locomotive engine
Products to an aircraft repair provider if used to repair
(70) 2010 Poor $265,000 $248,000 $368,000
aircraft not registered in Utah
Construction materials for life science research facility
(73) 2012 Fair n/a $174,000 $174,000
(material converted to real property only)
Machinery, equipment, or parts used in qualified
(74) 2012 Fair n/a $4,800,000 $4,900,000
research (three-year life)
Product used in preparation of food if seller and
(75) 2013 Poor n/a n/a $11,000
purchaser are the same (seller already paid sales tax)
Amusement and recreation machinery or equipment
(76) 2013 Fair $136,600 $165,000 $199,000
(three-year life; business must charge fee to use)
(77) Short-term lodging consumable 2013 Fair $1,760,000 $1,870,000 $2,089,000

(78) Database access (viewing or retrieval of information) 2013 Poor $400,000 $461,000 $476,000
Machinery, equipment, or parts used for electronic
(79) 2013 Fair $42,000 $46,000 $46,000
financial payment services (three-year life)

6/16/2017 Page 3 of 6
 Quality and Estimated State Sales Tax Amount

(59-12-104)
Year Enacted
Subsection
Brief Description of Sales Tax Exemption (n/a means there is little or no reliable data available upon which
(based on TRC Availability of Data
(click here to view Section 59-12-104 then navigate to the specified to base an estimate; click to view annual reports)
data and recent (provided by TC; good,
subsection to see the statutory language for a particular exemption)
legislation) fair, or poor) FY 2014 FY 2015 FY 2016
Business property temporarily brought into the state
(81) 2014 Poor - n/a n/a
by an out-of-state for disaster-related work
(83) Molten magnesium 2015 Fair - $600,000 <$600,000
Machinery, equipment, parts, and materials to a
(84) 2015 Good - - <$1,200,000
drilling equipment manufacturer
Machinery, equipment, or parts purchased by certain
(85) 2016 Good Fiscal note estimate for FY 2018: $0
data centers (one-year economic life)
Machinery, equipment, or parts purchased by a
(86) 2017 Fair Fiscal note estimate for FY 2018: $0
automobile manufacturer
Equipment or parts to industrial gas manufacturers to
(87) 2017 Fair Fiscal note estimate for FY 2018: $0
manufacture hydrogen (< three-year economic life)
Machinery, equipment, etc. purchased by a refinery
(89) 2018 Fair Fiscal note estimate for FY 2019: $2,135,100
and used in a specified activity
Non-Business Inputs (five categories; exemptions for purchases that are primarily made by consumers rather than businesses)
Non-Business Inputs - Charitable / Government
State and local government purchases except for
(2) 1933 Fair $41,500,000 $44,500,000 $46,000,000
certain construction materials
Sales to and by religious or charitable organizations
(8) 1933 Fair $7,940,000 $4,000,000 $5,890,000
(administered as refund if sale is less than $1,000)
Certain food or alcohol sold by a church, charitable
(12)(a) - Poor $730,000 $815,000 $903,000
institution, or school (not available to general public)
(21) Food stamp purchases - Good $6,600,000 $5,550,000 $5,492,000

(28) WIC purchases - Good $820,000 $486,000 $457,000

(35) Sales relating to schools and fundraising 1995 Poor $150,000 $148,000 $151,000

(41) Copies and publications by a government entity 1997 Poor $23,000 $23,000 $23,000
Sales to a public transit district (includes construction
(65) 2007 Poor n/a n/a n/a
materials converted to real property)

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 Quality and Estimated State Sales Tax Amount

(59-12-104)
Year Enacted
Subsection
Brief Description of Sales Tax Exemption (n/a means there is little or no reliable data available upon which
(based on TRC Availability of Data
(click here to view Section 59-12-104 then navigate to the specified to base an estimate; click to view annual reports)
data and recent (provided by TC; good,
subsection to see the statutory language for a particular exemption)
legislation) fair, or poor) FY 2014 FY 2015 FY 2016

(69) Sales to or by Heber Creeper Railroad 2010 Fair $5,000 $6,000 $6,000
Sales of goods and services at a National Guard
(82) 2014 Good $20,000 $20,000 $20,000
morale, welfare, and recreation facility
Non-Business Inputs - Economic Development
(31) Aircraft manufactured in Utah 1990 Poor n/a n/a n/a
Certain electricity produced from a new alternative
(47) 2002 Poor n/a n/a n/a
energy source
(80) Fuel cell 2013 Fair $35,000 $36,000 $34,000

Non-Business Inputs - Economic Efficiency

(1) Aviation, motor, special fuels (jet, gas, diesel, etc.) 1957 Good $287,400,000 $209,000,000 $182,000,000
Vending machine food sold for $1 or less under certain
(3) - Fair $2,100,000 $1,993,000 $2,135,000
circumstances
Products sold by a commercial airline during a flight
(4)(b) - Poor <$5,000 <$6,000 <$5,000
for in-flight consumption
Primarily unassisted cleaning of property (coin
(7) 1975 Fair $1,570,000 $1,617,000 $1,683,000
operated laundry, etc.)
Non-resident vehicle that is not registered or used in
(9) 1957 Poor $2,300,000 $2,480,000 $2,638,000
the state except under specified circumstances
Isolated and occasional sales if not regularly engaged
(13) - Poor $9,000,000 $9,300,000 $9,703,000
in business
Vehicle trade-ins and other trades as part payment for
(17) - Poor $2,400,000 $2,700,000 $2,600,000
a purchase
Exclusive sale of seasonal crops and plants if sold
(20) 1937 Poor $2,000,000 $2,169,000 $2,300,000
during the harvest season by the producer
Product brought in by a nonresident for use (product
(24) - Poor $2,400,000 n/a n/a
may not be used for business in the state)
Product for which sales tax was paid to another state
(26) 1937 Poor n/a n/a n/a
(must pay difference if Utah tax is greater)
Non-resident boat that is not registered or used in the
(30) 1988 Poor $95,000 $109,000 $129,000
state except under specified circumstances
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 Quality and Estimated State Sales Tax Amount

(59-12-104)
Year Enacted
Subsection
Brief Description of Sales Tax Exemption (n/a means there is little or no reliable data available upon which
(based on TRC Availability of Data
(click here to view Section 59-12-104 then navigate to the specified to base an estimate; click to view annual reports)
data and recent (provided by TC; good,
subsection to see the statutory language for a particular exemption)
legislation) fair, or poor) FY 2014 FY 2015 FY 2016
45% of a new and 100% of a used manufactured home
(34) 1995 Fair $1,200,000 $1,193,000 $1,214,000
(based on sales price)
(40) Use of coin operated amusement device - Fair $1,000,000 $1,255,000 $1,514,000
Hotel accommodations and services taxed by the
(45) 2001 ? - - -
Navajo Nation
(50) Currency or coinage that is legal tender - Poor n/a n/a n/a
Gold, silver, platinum (bars, coins, etc.; not legal
(51) 2003 Poor n/a n/a n/a
tender; content 50%+ gold, silver, or platinum)
(60) Pawnbroker repurchases or redemptions - Poor $1,900,000 $2,098,000 $2,113,000
Municipal taxes or fees levied on purchaser for
(72) 2011 Fair $9,000 $9,000 $9,000
enhanced level of municipal service
Car wash that does not include cleaning the interior of
(88) 2018 Fair Fiscal note estimate for FY 2018: $8,400
the vehicle
Non-Business Inputs - Healthcare
(10) Prescription drugs, syringes, and stoma supplies 1976 Fair $59,120,000 $64,652,000 $68,120,000
Certain food or alcohol served by a hospital or nursing
(12)(b) - Poor $680,000 $614,000 $689,000
home to a patient
(36) Prescribed durable medical equipment for home use - Fair $720,000 $742,000 $722,000
Sales to or by a nonprofit that provides certain services
(43) 1999 Poor <$1,000 <$1,000 n/a
to persons age 60+
(48) Prescribed mobility enhancing equipment - Fair $460,000 $472,000 $460,000
Prosthetic device (prescribed or purchased by medical
(53) - Fair $4,000,000 $4,000,000 $4,000,000
facility)
(64) Prescribed disposable home medical supplies - Poor - - -
Non-Business Inputs - Other
(16) Newspapers or newspaper subscriptions 1937 Poor $2,400,000 $2,386,000 $2,386,000
(42) Admissions to college athletic events 1998 Fair $2,200,000 $2,129,000 $2,265,000
(49) Water in a pipe, conduit, ditch or reservoir 2003 Poor n/a n/a n/a
Textbooks purchased by a student (not including a
(71) 2011 Fair $108,000 $109,000 $109,000
college book store; seller sales primarily textbooks)

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