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First Substitute 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 . creates the Restaurant Industry Promotion Fund;
15 . defines terms;
16 . requires a county legislative body of a county of the first or second class that
17 imposes a tax on prepared foods and beverages to deposit each calendar year at least
18 3% of the revenues from the imposition of that tax within the county:
19 . to the Restaurant Industry Promotion Fund; and
20 . to be expended by the Commissioner of Agriculture and Food for tourism
21 promotion in the state by promoting increased patronage of restaurants in the
22 state by persons who reside in the state and persons who reside outside the state;
23 and
24 . makes technical changes.
25 Monies Appropriated in this Bill:
26 None
27 Other Special Clauses:
28 None
29 Utah Code Sections Affected:
30 AMENDS:
31 17-31-5.5, as last amended by Chapter 134, Laws of Utah 2006
32 59-12-602, as last amended by Chapter 248, Laws of Utah 1995
33 59-12-603, as last amended by Chapters 134 and 253, Laws of Utah 2006
34 ENACTS:
35 4-40-101, Utah Code Annotated 1953
36 4-40-102, Utah Code Annotated 1953
37 4-40-103, Utah Code Annotated 1953
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39 Be it enacted by the Legislature of the state of Utah:
40 Section 1. Section 4-40-101 is enacted to read:
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42 4-40-101. Title.
43 This chapter is known as the Restaurant Industry Promotion Fund Act.
44 Section 2. Section 4-40-102 is enacted to read:
45 4-40-102. Definitions.
46 As used in this chapter, "fund" means the Restaurant Industry Promotion Fund created
47 by Section 4-40-103 .
48 Section 3. Section 4-40-103 is enacted to read:
49 4-40-103. Restaurant Industry Promotion Fund -- Source of monies -- Interest --
50 Expenditure of monies.
51 (1) There is created a restricted special revenue fund known as the Restaurant Industry
52 Promotion Fund.
53 (2) The fund shall be funded by the portion of the sales and use tax described in
54 Section 59-12-603 (2)(b).
55 (3) (a) The fund shall earn interest.
56 (b) Any interest earned on fund monies shall be deposited into the fund.
57 (4) The commissioner shall expend the monies deposited into the fund for tourism
58 promotion in the state by promoting increased patronage of restaurants in this state by:
59 (a) persons who reside within the state; and
60 (b) persons who reside outside the state.
61 Section 4. Section 17-31-5.5 is amended to read:
62 17-31-5.5. Independent audit -- Report to county legislative body -- Content.
63 (1) The legislative body of each county imposing the transient room tax provided for in
64 Section 59-12-301 shall annually engage an independent auditor to perform an audit to verify
65 that transient room tax funds are used only as authorized by this chapter and to report the
66 findings of the audit to the county legislative body.
67 (2) Subsection (1) applies to the tourism, recreation, cultural, and convention facilities
68 tax provided for in Section 59-12-603 , except that the audit verification required under this
69 Subsection (2) shall be for the uses authorized under Section 59-12-603 .
70 (3) The report required under Subsection (1) shall include a breakdown of expenditures
71 into the following categories:
72 (a) for the transient room tax, identification of expenditures for:
73 (i) establishing and promoting:
74 (A) recreation;
75 (B) tourism;
76 (C) film production; and
77 (D) conventions;
78 (ii) acquiring, leasing, constructing, furnishing, or operating:
79 (A) convention meeting rooms;
80 (B) exhibit halls;
81 (C) visitor information centers;
82 (D) museums; and
83 (E) related facilities;
84 (iii) acquiring or leasing land required for or related to the purposes listed in
85 Subsection (3)(a)(ii);
86 (iv) mitigation costs as identified in Subsection 17-31-2 (1)(d); and
87 (v) making the annual payment of principal, interest, premiums, and necessary reserves
88 for any or the aggregate of bonds issued to pay for costs referred to in Subsections
89 17-31-2 (2)(c) and (3)(a); and
90 (b) for the tourism, recreation, cultural, and convention facilities tax, identification of
91 expenditures for:
92 (i) financing tourism promotion[
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95 (ii) the development, operation, and maintenance of the following facilities as defined
96 in Section 59-12-602 :
97 (A) tourist facilities;
98 (B) recreation facilities;
99 (C) cultural facilities; and
100 (D) convention facilities; and
101 (iii) a pledge as security for evidences of indebtedness under Subsection 59-12-603 (4).
102 (4) A county legislative body shall provide a copy of a report it receives under this
103 section to:
104 (a) the Governor's Office of Economic Development;
105 (b) its tourism tax advisory board; and
106 (c) the Office of the Legislative Fiscal Analyst.
107 Section 5. Section 59-12-602 is amended to read:
108 59-12-602. Definitions.
109 As used in this part:
110 (1) "Convention facility" means any publicly owned or operated convention center,
111 sports arena, or other facility at which conventions, conferences, and other gatherings are held
112 and whose primary business or function is to host such conventions, conferences, and other
113 gatherings.
114 (2) "Cultural facility" means any publicly owned or operated museum, theater, art
115 center, music hall, or other cultural or arts facility.
116 (3) "Qualifying bonded indebtedness payment" means an amount a county of the first
117 or second class pays or reimburses from revenues collected from the tax under Subsection
118 59-12-603 (1)(a)(ii) for debt service on a bond, note, or other evidence of indebtedness issued
119 on or before April 29, 2007, if:
120 (a) the face value of the bond, note, or other evidence of indebtedness is not increased;
121 (b) the term for repayment of the bond, note, or other evidence of indebtedness is not
122 extended;
123 (c) the bond, note, or other evidence of indebtedness is not retired; or
124 (d) the bond, note, or other evidence of indebtedness is not substantially modified in a
125 manner other than as described in Subsections (3)(a) through (c).
126 [
127 operated park, campground, marina, dock, golf course, water park, historic park, monument,
128 planetarium, zoo, bicycle trails, and other recreation or tourism-related facility.
129 [
130 fountain, or fast-food service where food is prepared for immediate consumption.
131 (b) "Restaurant" does not include:
132 (i) any retail establishment whose primary business or function is the sale of fuel or
133 food items for off-premise, but not immediate, consumption; and
134 (ii) a theater that sells food items, but not a dinner theater.
135 (6) (a) "Tourism promotion" means to develop, market, promote, or solicit tourism.
136 (b) "Tourism promotion" includes:
137 (i) advertising;
138 (ii) planning;
139 (iii) product development; or
140 (iv) tourism promotion as described in Subsection 59-12-603 (2)(b)(ii) or (2)(c).
141 Section 6. Section 59-12-603 is amended to read:
142 59-12-603. County tax -- Bases -- Rates -- Use of revenues -- Collection --
143 Adoption of ordinance required -- Administration -- Distribution -- Enactment or repeal
144 of tax or tax rate change -- Effective date -- Notice requirements.
145 (1) (a) In addition to any other taxes, a county legislative body may, as provided in this
146 part, impose a tax as follows:
147 (i) (A) a county legislative body of any county may impose a tax of not to exceed 3%
148 on all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases
149 and rentals of motor vehicles made for the purpose of temporarily replacing a person's motor
150 vehicle that is being repaired pursuant to a repair or an insurance agreement; and
151 (B) beginning on or after January 1, 1999, a county legislative body of any county
152 imposing a tax under Subsection (1)(a)(i)(A) may, in addition to imposing the tax under
153 Subsection (1)(a)(i)(A), impose a tax of not to exceed 4% on all short-term leases and rentals
154 of motor vehicles not exceeding 30 days, except for leases and rentals of motor vehicles made
155 for the purpose of temporarily replacing a person's motor vehicle that is being repaired pursuant
156 to a repair or an insurance agreement;
157 (ii) a county legislative body of any county may impose a tax of not to exceed 1% of all
158 sales of prepared foods and beverages that are sold by restaurants; and
159 (iii) a county legislative body of any county may impose a tax of not to exceed .5% on
160 charges for the accommodations and services described in Subsection 59-12-103 (1)(i).
161 (b) A tax imposed under Subsection (1)(a) is in addition to the transient room tax
162 authorized under Part 3, Transient Room Tax, and is subject to the audit provisions of Section
163 17-31-5.5 .
164 (2) (a) Subject to [
165 of the taxes provided for in Subsections (1)(a)(i) through (iii) may be used for the purposes of:
166 (i) financing tourism promotion; and
167 (ii) the development, operation, and maintenance of tourist, recreation, cultural, and
168 convention facilities as defined in Section 59-12-602 .
169 (b) (i) Each calendar year, beginning with the calendar year beginning on January 1,
170 2008, a county legislative body of a county of the first or second class that imposes a tax
171 authorized by Subsection (1)(a)(ii) shall deposit into the Restaurant Industry Promotion Fund
172 created by Section 4-40-103 the difference between:
173 (A) 3% of the revenues from the imposition of the tax authorized by Subsection
174 (1)(a)(ii) within that county of the first or second class for that calendar year; and
175 (B) the sum of any qualifying bonded indebtedness payments that county of the first or
176 second class makes for that calendar year.
177 (ii) Revenues deposited into the Restaurant Industry Promotion Fund in accordance
178 with Subsection (2)(b)(i) shall be expended for tourism promotion in the state as provided in
179 Section 4-40-103 by promoting increased patronage of restaurants in the state by:
180 (A) persons who reside in the state; and
181 (B) persons who reside outside the state.
182 [
183 revenues from the imposition of a tax authorized by Subsection (1)(a)(iii) within the county to
184 fund a marketing and ticketing system designed [
185 (i) [
186 not reside within the state; and
187 (ii) to combine the sale of:
188 (A) ski lift tickets; and
189 (B) accommodations and services described in Subsection 59-12-103 (1)(i).
190 (3) The tax imposed under Subsection (1)(a)(iii) shall be in addition to the tax imposed
191 under Part 3, Transient Room Tax, and may be imposed only by a county of the first class.
192 (4) A tax imposed under this part may be pledged as security for bonds, notes, or other
193 evidences of indebtedness incurred by a county under Title 11, Chapter 14, Local Government
194 Bonding Act, to finance tourism, recreation, cultural, and convention facilities.
195 (5) (a) In order to impose the tax under Subsection (1), each county legislative body
196 shall annually adopt an ordinance imposing the tax.
197 (b) The ordinance under Subsection (5)(a) shall include provisions substantially the
198 same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
199 those items and sales described in Subsection (1).
200 (c) The name of the county as the taxing agency shall be substituted for that of the state
201 where necessary, and an additional license is not required if one has been or is issued under
202 Section 59-12-106 .
203 (6) In order to maintain in effect its tax ordinance adopted under this part, each county
204 legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
205 Tax Collection, adopt amendments to its tax ordinance to conform with the applicable
206 amendments to Part 1, Tax Collection.
207 (7) (a) (i) Except as provided in Subsection (7)(a)(ii), a tax authorized under this part
208 shall be administered, collected, and enforced in accordance with:
209 (A) the same procedures used to administer, collect, and enforce the tax under:
210 (I) Part 1, Tax Collection; or
211 (II) Part 2, Local Sales and Use Tax Act; and
212 (B) Chapter 1, General Taxation Policies.
213 (ii) A tax under this part is not subject to Section 59-12-107.1 or Subsections
214 59-12-205 (2) through (7).
215 (b) Except as provided in Subsection (7)(c):
216 (i) for a tax under this part other than the tax under Subsection (1)(a)(i)(B), the
217 commission shall distribute the revenues to the county imposing the tax; and
218 (ii) for a tax under Subsection (1)(a)(i)(B), the commission shall distribute the revenues
219 according to the distribution formula provided in Subsection (8).
220 (c) Notwithstanding Subsection (7)(b), the commission shall deduct from the
221 distributions under Subsection (7)(b) an administrative charge for collecting the tax as provided
222 in Section 59-12-206 .
223 (8) The commission shall distribute the revenues generated by the tax under Subsection
224 (1)(a)(i)(B) to each county collecting a tax under Subsection (1)(a)(i)(B) according to the
225 following formula:
226 (a) the commission shall distribute 70% of the revenues based on the percentages
227 generated by dividing the revenues collected by each county under Subsection (1)(a)(i)(B) by
228 the total revenues collected by all counties under Subsection (1)(a)(i)(B); and
229 (b) the commission shall distribute 30% of the revenues based on the percentages
230 generated by dividing the population of each county collecting a tax under Subsection
231 (1)(a)(i)(B) by the total population of all counties collecting a tax under Subsection (1)(a)(i)(B).
232 (9) (a) For purposes of this Subsection (9):
233 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2,
234 Annexation to County.
235 (ii) "Annexing area" means an area that is annexed into a county.
236 (b) (i) Except as provided in Subsection (9)(c), if, on or after July 1, 2004, a county
237 enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal, or
238 change shall take effect:
239 (A) on the first day of a calendar quarter; and
240 (B) after a 90-day period beginning on the date the commission receives notice meeting
241 the requirements of Subsection (9)(b)(ii) from the county.
242 (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
243 (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
244 (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
245 (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
246 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
247 (9)(b)(ii)(A), the rate of the tax.
248 (c) (i) Notwithstanding Subsection (9)(b)(i), for a transaction described in Subsection
249 (9)(c)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
250 first billing period:
251 (A) that begins after the effective date of the enactment of the tax or the tax rate
252 increase; and
253 (B) if the billing period for the transaction begins before the effective date of the
254 enactment of the tax or the tax rate increase imposed under Subsection (1).
255 (ii) Notwithstanding Subsection (9)(b)(i), for a transaction described in Subsection
256 (9)(c)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
257 billing period:
258 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
259 and
260 (B) if the billing period for the transaction begins before the effective date of the repeal
261 of the tax or the tax rate decrease imposed under Subsection (1).
262 (iii) Subsections (9)(c)(i) and (ii) apply to transactions subject to a tax under:
263 (A) Subsection 59-12-103 (1)(e);
264 (B) Subsection 59-12-103 (1)(i); or
265 (C) Subsection 59-12-103 (1)(k).
266 (d) (i) Except as provided in Subsection (9)(e), if, for an annexation that occurs on or
267 after July 1, 2004, the annexation will result in the enactment, repeal, or change in the rate of a
268 tax under this part for an annexing area, the enactment, repeal, or change shall take effect:
269 (A) on the first day of a calendar quarter; and
270 (B) after a 90-day period beginning on the date the commission receives notice meeting
271 the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
272 (ii) The notice described in Subsection (9)(d)(i)(B) shall state:
273 (A) that the annexation described in Subsection (9)(d)(i) will result in an enactment,
274 repeal, or change in the rate of a tax under this part for the annexing area;
275 (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
276 (C) the effective date of the tax described in Subsection (9)(d)(ii)(A); and
277 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
278 (9)(d)(ii)(A), the rate of the tax.
279 (e) (i) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
280 (9)(e)(iii), the enactment of a tax or a tax rate increase shall take effect on the first day of the
281 first billing period:
282 (A) that begins after the effective date of the enactment of the tax or the tax rate
283 increase; and
284 (B) if the billing period for the transaction begins before the effective date of the
285 enactment of the tax or the tax rate increase imposed under Subsection (1).
286 (ii) Notwithstanding Subsection (9)(d)(i), for a transaction described in Subsection
287 (9)(e)(iii), the repeal of a tax or a tax rate decrease shall take effect on the first day of the last
288 billing period:
289 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
290 and
291 (B) if the billing period for the transaction begins before the effective date of the repeal
292 of the tax or the tax rate decrease imposed under Subsection (1).
293 (iii) Subsections (9)(e)(i) and (ii) apply to transactions subject to a tax under:
294 (A) Subsection 59-12-103 (1)(e);
295 (B) Subsection 59-12-103 (1)(i); or
296 (C) Subsection 59-12-103 (1)(k).
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