H.B. 61

1

DISTRIBUTION OF SALES AND USE TAX REVENUES -
2 BOTANICAL, CULTURAL, RECREATIONAL, AND
3 ZOOLOGICAL ORGANIZATIONS OR FACILITIES
4 2000 GENERAL SESSION
5 STATE OF UTAH
6 Sponsor: Bradley T. Johnson
7 AN ACT RELATING TO THE SALES AND USE TAX ACT; MODIFYING THE
8 DISTRIBUTION OF REVENUES PROVISIONS FOR THE TAX USED FOR BOTANICAL,
9 CULTURAL, RECREATIONAL, AND ZOOLOGICAL ORGANIZATIONS OR FACILITIES;
10 AND MAKING TECHNICAL CHANGES.
11 This act affects sections of Utah Code Annotated 1953 as follows:
12 AMENDS:
13 59-12-704, as last amended by Chapters 193 and 209, Laws of Utah 1998
14 Be it enacted by the Legislature of the state of Utah:
15 Section 1. Section 59-12-704 is amended to read:
16 59-12-704. Distribution of revenues -- Advisory board creation -- Determining
17 operating expenses.
18 (1) Except as provided in Subsections (3)(b) and (5), and subject to the requirements of
19 this section, any revenues collected by a county of the first class under this part shall be distributed
20 annually by the county legislative body to support recreational and zoological facilities and
21 botanical, cultural, and zoological organizations within that first class county as follows:
22 (a) 30% of the revenue collected by the county under this section shall be distributed by
23 the county legislative body to support recreational facilities located within the county;
24 (b) (i) 12.5% of the revenue collected by the county under this section shall be distributed
25 by the county legislative body to support zoological facilities and organizations located within the
26 county; and
27 (ii) the county legislative body shall determine how the monies shall be distributed among

28 the zoological organizations;
29 (c) (i) 52.5% of the revenue collected by the county under this section shall be distributed
30 to botanical and cultural organizations with average annual operating expenses of more than
31 $250,000 as determined under Subsection (3);
32 (ii) subject to Subsection (1)(c)(iii), the county legislative body shall distribute the monies
33 described in Subsection (1)(c)(i) among the organizations and in proportion to their average annual
34 operating expenses as determined under Subsection (3); and
35 (iii) the amount distributed to any organization described in Subsection (1)(c)(i) may not
36 exceed 35% of the organization's budget; and
37 (d) (i) 5% of the revenue collected by the county under this section shall be distributed to
38 botanical and cultural organizations with average annual operating expenses of less than $250,000
39 as determined under Subsection (3); and
40 (ii) the county legislative body shall determine how the monies shall be distributed among
41 the organizations described in Subsection (1)(d)(i).
42 (2)(a) The county legislative body of each county of the first class shall create an advisory
43 board to advise the county legislative body on disbursement of funds to botanical and cultural
44 organizations under Subsection (1)(c)(i).
45 (b) (i) The advisory board under Subsection (2)(a) shall consist of seven members
46 appointed by the county legislative body.
47 (ii) Two of the seven members of the advisory board under Subsection (2)(a) shall be
48 appointed from the Utah Arts Council.
49 (3) (a) Except as provided in Subsection (3)(b), to be eligible to receive monies collected
50 by the county under this part, a botanical, cultural, and zoological organization located within a
51 county of the first class shall, every three years:
52 (i) calculate their average annual expenses based upon audited expenses for three
53 preceding fiscal years; and
54 (ii) submit to the appropriate county legislative body:
55 (A) a verified audit of annual expenses for each of those three preceding fiscal years; and
56 (B) the average annual expenses as calculated under Subsection (3)(a)(i).
57 (b) Notwithstanding Subsection (3)(a), the county legislative body may waive the expense
58 reporting requirements under Subsection (3)(a) for organizations described in Subsection (1)(d)(i).

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

Legislative Review Note
as of 1-13-00 2:12 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel