H.B. 61 Enrolled

DISTRIBUTION OF SALES AND USE TAX REVENUES -
BOTANICAL, CULTURAL, RECREATIONAL, AND
ZOOLOGICAL ORGANIZATIONS OR FACILITIES
2000 GENERAL SESSION
STATE OF UTAH
Sponsor: Bradley T. Johnson
AN ACT RELATING TO THE SALES AND USE TAX ACT; MODIFYING THE
DISTRIBUTION OF REVENUES PROVISIONS FOR THE TAX USED FOR BOTANICAL,
CULTURAL, RECREATIONAL, OR ZOOLOGICAL ORGANIZATIONS OR FACILITIES;
AND MAKING TECHNICAL CHANGES.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-12-704, as last amended by Chapters 193 and 209, Laws of Utah 1998
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-12-704 is amended to read:
59-12-704. Distribution of revenues -- Advisory board creation -- Determining
operating expenses.
(1) Except as provided in Subsections (3)(b) and (5), and subject to the requirements of
this section, any revenues collected by a county of the first class under this part shall be distributed
annually by the county legislative body to support recreational and zoological facilities and
botanical, cultural, and zoological organizations within that first class county as follows:
(a) 30% of the revenue collected by the county under this section shall be distributed by
the county legislative body to support recreational facilities located within the county;
(b) (i) 12.5% of the revenue collected by the county under this section shall be distributed
by the county legislative body to support zoological facilities and organizations located within the
county; and
(ii) the county legislative body shall determine how the monies shall be distributed among
the zoological organizations;
(c) (i) 52.5% of the revenue collected by the county under this section shall be distributed

to botanical and cultural organizations with average annual operating expenses of more than
$250,000 as determined under Subsection (3);
(ii) subject to Subsection (1)(c)(iii), the county legislative body shall distribute the monies
described in Subsection (1)(c)(i) among the organizations and in proportion to their average annual
operating expenses as determined under Subsection (3); and
(iii) the amount distributed to any organization described in Subsection (1)(c)(i) may not
exceed 35% of the organization's budget; and
(d) (i) 5% of the revenue collected by the county under this section shall be distributed to
botanical and cultural organizations with average annual operating expenses of less than $250,000
as determined under Subsection (3); and
(ii) the county legislative body shall determine how the monies shall be distributed among the
organizations described in Subsection (1)(d)(i).
(2)(a) The county legislative body of each county of the first class shall create an advisory
board to advise the county legislative body on disbursement of funds to botanical and cultural
organizations under Subsection (1)(c)(i).
(b) (i) The advisory board under Subsection (2)(a) shall consist of seven members appointed
by the county legislative body.
(ii) Two of the seven members of the advisory board under Subsection (2)(a) shall be
appointed from the Utah Arts Council.
(3) (a) Except as provided in Subsection (3)(b), to be eligible to receive monies collected by
the county under this part, a botanical, cultural, and zoological organization located within a county
of the first class shall, every three years:
(i) calculate their average annual expenses based upon audited expenses for three preceding
fiscal years; and
(ii) submit to the appropriate county legislative body:
(A) a verified audit of annual expenses for each of those three preceding fiscal years; and
(B) the average annual expenses as calculated under Subsection (3)(a)(i).
(b) Notwithstanding Subsection (3)(a), the county legislative body may waive the expense

- 2 -

reporting requirements under Subsection (3)(a) for organizations described in Subsection (1)(d)(i).
(4) When calculating average annual expenses as described in Subsection (3), each botanical,
cultural, and zoological organization shall use the same three-year fiscal period as determined by the
county legislative body.
(5) (a) By July 1 of each year, the county legislative body of a first class county may index
the threshold amount in Subsections (1)[(a), (b),] (c) and (d).
(b) Any change under Subsection (5)(a) shall be rounded off to the nearest $100.
(6) [In all other counties,] Beginning on July 1, 2000, in a county except for a county of the
first class, the county legislative body shall [distribute] by ordinance provide for the distribution of
100% of the revenues generated by the tax imposed by this section as follows:
(a) [30% of the revenues collected by the county as a result of a tax imposed under this
section] the county legislative body shall in the ordinance providing for the distribution of the
revenues generated by a tax imposed by this section specify a percentage of revenues:
(i) that is not less than 30% but that does not exceed 45%; and
(ii) to be distributed to support recreational facilities within the county; and
(b) [70% of the revenues to botanical, cultural, and zoological facilities and organizations
within the county as determined by] after specifying the percentage of revenues to be distributed to
support recreational facilities under Subsection (6)(a), the county legislative body shall provide in the
ordinance providing for the distribution of the revenues generated by a tax imposed by this section
that the remainder of the revenues shall be distributed to support the following:
(i) one or more botanical organizations;
(ii) one or more cultural organizations;
(iii) one or more zoological organizations;
(iv) one or more zoological facilities; or
(v) a combination of Subsections (6)(b)(i) through (iv).
(7) The commission may retain an amount not to exceed 1-1/2% of the county option funding
collected under this part for the cost of administering this part.

- 3 -