SALT Report 2344 – Utah recently enacted legislation that provides a sales and use tax exemption for the purchase or lease of machinery and equipment by qualified electronic financial payment services. A qualified “electronic financial payment service” is defined as a business falls within the North American Industry Classification System 522320, Financial Transactions Processing, Reserve, and Clearinghouse Activities and that performs electronic financial payment services.
All exempt machinery and equipment must be:
- Used in the operation of the electronic financial payment services, and
- Have an economic life of three or more years
Additionally, the exemption will apply to repair services and replacement parts that are used in the operation of the service so long as the parts have an economic life of three or more years.
The exemption is effective July 1, 2013.
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