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S.B. 68
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6 Cosponsor:Curtis S. Bramble 7
8 LONG TITLE
9 General Description:
10 This bill amends provisions relating to the Tourism, Recreation, Cultural, and
11 Convention Facilities Tax to address funding for tourism promotion.
12 Highlighted Provisions:
13 This bill:
14 . defines "tourism promotion";
15 . requires a county legislative body that imposes a tax on prepared foods and
16 beverages to distribute each calendar year at least 10% of the revenues from the
17 imposition of that tax within the county to a nonprofit organization having as its
18 primary purpose to promote the restaurant industry on a statewide basis;
19 . requires an organization that receives a distribution of revenues to expend those
20 revenues for tourism promotion in the state by promoting increased patronage of
21 restaurants in the state by persons who reside in the state and persons who reside
22 outside the state; and
23 . makes technical changes.
24 Monies Appropriated in this Bill:
25 None
26 Other Special Clauses:
27 None
28 Utah Code Sections Affected:
29 AMENDS:
30 17-31-5.5, as last amended by Chapter 134, Laws of Utah 2006
31 59-12-602, as last amended by Chapter 248, Laws of Utah 1995
32 59-12-603, as last amended by Chapters 134 and 253, Laws of Utah 2006
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34 Be it enacted by the Legislature of the state of Utah:
35 Section 1. Section 17-31-5.5 is amended to read:
36 17-31-5.5. Independent audit -- Report to county legislative body -- Content.
37 (1) The legislative body of each county imposing the transient room tax provided for in
38 Section 59-12-301 shall annually engage an independent auditor to perform an audit to verify
39 that transient room tax funds are used only as authorized by this chapter and to report the
40 findings of the audit to the county legislative body.
41 (2) Subsection (1) applies to the tourism, recreation, cultural, and convention facilities
42 tax provided for in Section 59-12-603 , except that the audit verification required under this
43 Subsection (2) shall be for the uses authorized under Section 59-12-603 .
44 (3) The report required under Subsection (1) shall include a breakdown of expenditures
45 into the following categories:
46 (a) for the transient room tax, identification of expenditures for:
47 (i) establishing and promoting:
48 (A) recreation;
49 (B) tourism;
50 (C) film production; and
51 (D) conventions;
52 (ii) acquiring, leasing, constructing, furnishing, or operating:
53 (A) convention meeting rooms;
54 (B) exhibit halls;
55 (C) visitor information centers;
56 (D) museums; and
57 (E) related facilities;
58 (iii) acquiring or leasing land required for or related to the purposes listed in
59 Subsection (3)(a)(ii);
60 (iv) mitigation costs as identified in Subsection 17-31-2 (1)(d); and
61 (v) making the annual payment of principal, interest, premiums, and necessary reserves
62 for any or the aggregate of bonds issued to pay for costs referred to in Subsections
63 17-31-2 (2)(c) and (3)(a); and
64 (b) for the tourism, recreation, cultural, and convention facilities tax, identification of
65 expenditures for:
66 (i) financing tourism promotion[
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69 (ii) the development, operation, and maintenance of the following facilities as defined
70 in Section 59-12-602 :
71 (A) tourist facilities;
72 (B) recreation facilities;
73 (C) cultural facilities; and
74 (D) convention facilities; and
75 (iii) a pledge as security for evidences of indebtedness under Subsection 59-12-603 (4).
76 (4) A county legislative body shall provide a copy of a report it receives under this
77 section to:
78 (a) the Governor's Office of Economic Development;
79 (b) its tourism tax advisory board; and
80 (c) the Office of the Legislative Fiscal Analyst.
81 Section 2. Section 59-12-602 is amended to read:
82 59-12-602. Definitions.
83 As used in this part:
84 (1) "Convention facility" means any publicly owned or operated convention center,
85 sports arena, or other facility at which conventions, conferences, and other gatherings are held
86 and whose primary business or function is to host such conventions, conferences, and other
87 gatherings.
88 (2) "Cultural facility" means any publicly owned or operated museum, theater, art
89 center, music hall, or other cultural or arts facility.
90 (3) "Recreation facility" or "tourist facility" means any publicly owned or operated
91 park, campground, marina, dock, golf course, water park, historic park, monument,
92 planetarium, zoo, bicycle trails, and other recreation or tourism-related facility.
93 (4) (a) "Restaurant" includes any coffee shop, cafeteria, luncheonette, soda fountain, or
94 fast-food service where food is prepared for immediate consumption.
95 (b) "Restaurant" does not include:
96 (i) any retail establishment whose primary business or function is the sale of fuel or
97 food items for off-premise, but not immediate, consumption; and
98 (ii) a theater that sells food items, but not a dinner theater.
99 (5) (a) "Tourism promotion" means to develop, market, promote, or solicit tourism.
100 (b) "Tourism promotion" includes:
101 (i) advertising;
102 (ii) planning;
103 (iii) product development; or
104 (iv) tourism promotion as described in Subsection 59-12-603 (2)(b)(ii) or (2)(c).
105 Section 3. Section 59-12-603 is amended to read:
106 59-12-603. County tax -- Bases -- Rates -- Use of revenues -- Collection --
107 Adoption of ordinance required -- Administration -- Distribution -- Enactment or repeal
108 of tax or tax rate change -- Effective date -- Notice requirements.
109 (1) (a) In addition to any other taxes, a county legislative body may, as provided in this
110 part, impose a tax as follows:
111 (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
112 on all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases
113 and rentals of motor vehicles made for the purpose of temporarily replacing a person's motor
114 vehicle that is being repaired pursuant to a repair or an insurance agreement; and
115 (B) beginning on or after January 1, 1999, a county legislative body of any county
116 imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under
117 Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on all short-term leases and rentals
118 of motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made
119 for the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant
120 to a repair or an insurance agreement;
121 (ii) a county legislative body of any county may impose a tax of not to exceed 1% of all
122 sales of prepared foods and beverages that are sold by restaurants; and
123 (iii) a county legislative body of any county may impose a tax of not to exceed .5% on
124 charges for the accommodations and services described in Subsection 59-12-103 (1)(i).
125 (b) A tax imposed under Subsection (1)(a) is in addition to the transient room tax
126 authorized under Part 3, Transient Room Tax, and is subject to the audit provisions of Section
127 17-31-5.5 .
128 (2) (a) Subject to [
129 of the taxes provided for in Subsections (1)(a)(i) through (iii) may be used for the purposes of:
130 (i) financing tourism promotion; and
131 (ii) the development, operation, and maintenance of tourist, recreation, cultural, and
132 convention facilities as defined in Section 59-12-602 .
133 (b) (i) A county legislative body that imposes a tax authorized by Subsection (1)(a)(ii)
134 shall distribute each calendar year, beginning with the calendar year beginning on January 1,
135 2008, at least 10% of the revenues from the imposition of the tax authorized by Subsection
136 (1)(a)(ii) within the county to an organization:
137 (A) exempt from federal income taxation under Section 501(c)(6), Internal Revenue
138 Code; and
139 (B) that has as a primary purpose of the organization to promote the interests and the
140 welfare of the restaurant industry on a statewide basis.
141 (ii) An organization described in Subsection (2)(b)(i) that receives a distribution of
142 revenues under Subsection (2)(b)(i) shall expend those revenues for tourism promotion in the
143 state by promoting increased patronage of restaurants in the state by:
144 (A) persons who reside in the state; and
145 (B) persons who reside outside the state.
146 [
147 revenues from the imposition of a tax authorized by Subsection (1)(a)(iii) within the county to
148 fund a marketing and ticketing system designed [
149 (i) [
150 not reside within the state; and
151 (ii) to combine the sale of:
152 (A) ski lift tickets; and
153 (B) accommodations and services described in Subsection 59-12-103 (1)(i).
154 (3) The tax imposed under Subsection (1)(a)(iii) shall be in addition to the tax imposed
155 under Part 3, Transient Room Tax, and may be imposed only by a county of the first class.
156 (4) A tax imposed under this part may be pledged as security for bonds, notes, or other
157 evidences of indebtedness incurred by a county under Title 11, Chapter 14, Local Government
158 Bonding Act, to finance tourism, recreation, cultural, and convention facilities.
159 (5) (a) In order to impose the tax under Subsection (1), each county legislative body
160 shall annually adopt an ordinance imposing the tax.
161 (b) The ordinance under Subsection (5)(a) shall include provisions substantially the
162 same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
163 those items and sales described in Subsection (1).
164 (c) The name of the county as the taxing agency shall be substituted for that of the state
165 where necessary, and an additional license is not required if one has been or is issued under
166 Section 59-12-106 .
167 (6) In order to maintain in effect its tax ordinance adopted under this part, each county
168 legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
169 Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
170 amendments to Part 1, Tax Collection.
171 (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
172 shall be administered, collected, and enforced in accordance with:
173 (A) the same procedures used to administer, collect, and enforce the tax under:
174 (I) Part 1, Tax Collection; or
175 (II) Part 2, Local Sales and Use Tax Act; and
176 (B) Chapter 1, General Taxation Policies.
177 (ii) A tax under this part is not subject to Section 59-12-107.1 or Subsections
178 59-12-205 (2) through (7).
179 (b) Except as provided in Subsection (7)(c):
180 (i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
181 commission shall distribute the revenues to the county imposing the tax; and
182 (ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenues
183 according to the distribution formula provided in Subsection (8).
184 (c) Notwithstanding Subsection (7)(b), the commission shall deduct from the
185 distributions under Subsection (7)(b) an administrative charge for collecting the tax as provided
186 in Section 59-12-206 .
187 (8) The commission shall distribute the revenues generated by the tax under Subsection
188 (1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according to the
189 following formula:
190 (a) the commission shall distribute 70% of the revenues based on the percentages
191 generated by dividing the revenues collected by each county under Subsection (1)(a)(i)(B) by
192 the total revenues collected by all counties under Subsection (1)(a)(i)(B); and
193 (b) the commission shall distribute 30% of the revenues based on the percentages
194 generated by dividing the population of each county collecting a tax under Subsection
195 (1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
196 (9) (a) For purposes of this Subsection (9):
197 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
198 Annexation to County.
199 (ii) "Annexing area" means an area that is annexed into a county.
200 (b) (i) Except as provided in Subsection (9)(c), if, on or after July 1, 2004, a county
201 enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
202 change shall take effect:
203 (A) on the first day of a calendar quarter; and
204 (B) after a 90-day period beginning on the date the commission receives notice meeting
205 the requirements of Subsection (9)(b)(ii) from the county.
206 (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
207 (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
208 (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
209 (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
210 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
211 (9)(b)(ii)(A), the rate of the tax.
212 (c) (i) Notwithstanding Subsection (9)(b)(i), for a transaction described in Subsection
213 (9)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
214 first billing period:
215 (A) that begins after the effective date of the enactment of the tax or the tax rate
216 increase; and
217 (B) if the billing period for the transaction begins before the effective date of the
218 enactment of the tax or the tax rate increase imposed under Subsection (1).
219 (ii) Notwithstanding Subsection (9)(b)(i), for a transaction described in Subsection
220 (9)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
221 billing period:
222 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
223 and
224 (B) if the billing period for the transaction begins before the effective date of the repeal
225 of the tax or the tax rate decrease imposed under Subsection (1).
226 (iii) Subsections (9)(c)(i) and (ii) apply to transactions subject to a tax under:
227 (A) Subsection 59-12-103 (1)(e);
228 (B) Subsection 59-12-103 (1)(i); or
229 (C) Subsection 59-12-103 (1)(k).
230 (d) (i) Except as provided in Subsection (9)(e), if, for an annexation that occurs on or
231 after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a
232 tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
233 (A) on the first day of a calendar quarter; and
234 (B) after a 90-day period beginning on the date the commission receives notice meeting
235 the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
236 (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
237 (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
238 repeal, or change in the rate of a tax under this part for the annexing area;
239 (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
240 (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
241 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
242 (9)(d)(ii)(A), the rate of the tax.
243 (e) (i) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
244 (9)(e)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
245 first billing period:
246 (A) that begins after the effective date of the enactment of the tax or the tax rate
247 increase; and
248 (B) if the billing period for the transaction begins before the effective date of the
249 enactment of the tax or the tax rate increase imposed under Subsection (1).
250 (ii) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
251 (9)(e)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
252 billing period:
253 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
254 and
255 (B) if the billing period for the transaction begins before the effective date of the repeal
256 of the tax or the tax rate decrease imposed under Subsection (1).
257 (iii) Subsections (9)(e)(i) and (ii) apply to transactions subject to a tax under:
258 (A) Subsection 59-12-103 (1)(e);
259 (B) Subsection 59-12-103 (1)(i); or
260 (C) Subsection 59-12-103 (1)(k).
Legislative Review Note
as of 1-24-07 10:04 AM