Download Zipped Introduced WP 8.0 SB0172S1.ZIP 93,080 Bytes
[Status][Bill Documents][Fiscal Note][Bills Directory]

First Substitute S.B. 172

Senator Lyle W. Hillyard proposes to substitute the following bill:


             1     
SALES AND USE TAX MODIFICATIONS

             2     
2000 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Lyle W. Hillyard

             5      AN ACT RELATING TO THE SALES AND USE TAX ACT; CLARIFYING THE DUTY TO
             6      COLLECT SALES AND USE TAXES; AMENDING PROVISIONS RELATING TO THE
             7      SALES AND USE TAX BASE AND RATES; PROVIDING FOR THE DISTRIBUTION OF
             8      CERTAIN SALES AND USE TAX REVENUES TO COUNTIES, CITIES, OR TOWNS;
             9      CLARIFYING SALES AND USE TAX REVENUES TO BE DEPOSITED INTO THE
             10      GENERAL FUND; AMENDING DEFINITIONS; AUTHORIZING CERTAIN VENDORS TO
             11      COLLECT A SALES OR USE TAX; REQUIRING THE STATE TAX COMMISSION TO
             12      COLLECT A SALES OR USE TAX FROM CERTAIN VENDORS THAT ARE NOT
             13      CURRENTLY REQUIRED TO COLLECT SALES OR USE TAXES IF PERMITTED BY
             14      CONGRESS OR AUTHORIZED BY THE SUPREME COURT OF THE UNITED STATES;
             15      REQUIRING THE STATE TAX COMMISSION TO MAKE A REPORT TO THE TAX
             16      REVIEW COMMISSION UNDER CERTAIN CIRCUMSTANCES; REQUIRING THE TAX
             17      REVIEW COMMISSION TO CONDUCT A STUDY UNDER CERTAIN CIRCUMSTANCES;
             18      ADDRESSING THE AUTHORITY OF COUNTIES, CITIES, OR TOWNS TO COLLECT
             19      SALES OR USE TAXES; MAKING TECHNICAL CHANGES; DELETING OBSOLETE
             20      LANGUAGE; AND PROVIDING AN EFFECTIVE DATE.
             21      This act affects sections of Utah Code Annotated 1953 as follows:
             22      AMENDS:
             23          17A-2-1064, as enacted by Chapter 133, Laws of Utah 1999
             24          59-12-102, as last amended by Chapters 63 and 362, Laws of Utah 1999
             25          59-12-103, as last amended by Chapter 133, Laws of Utah 1999


             26          59-12-106, as last amended by Chapter 16, Laws of Utah 1995
             27          59-12-107, as last amended by Chapter 210, Laws of Utah 1999
             28          59-12-110, as last amended by Chapter 71, Laws of Utah 1999
             29          59-12-204, as last amended by Chapter 133, Laws of Utah 1999
             30          59-12-205, as last amended by Chapter 133, Laws of Utah 1999
             31          59-12-401, as last amended by Chapter 291, Laws of Utah 1998
             32          59-12-402, as last amended by Chapter 291, Laws of Utah 1998
             33          59-12-501, as last amended by Chapter 291, Laws of Utah 1998
             34          59-12-502, as last amended by Chapter 291, Laws of Utah 1998
             35          59-12-703, as last amended by Chapters 209 and 291, Laws of Utah 1998
             36          59-12-801, as last amended by Chapter 261, Laws of Utah 1998
             37          59-12-802, as last amended by Chapters 261 and 291, Laws of Utah 1998
             38          59-12-803, as last amended by Chapter 261, Laws of Utah 1998
             39          59-12-804, as enacted by Chapter 111, Laws of Utah 1994
             40          59-12-902, as enacted by Chapter 264, Laws of Utah 1997
             41          59-12-1001, as last amended by Chapter 291, Laws of Utah 1998
             42          59-12-1102, as last amended by Chapter 13, Laws of Utah 1998
             43          59-12-1302, as enacted by Chapter 243, Laws of Utah 1998
             44      ENACTS:
             45          59-12-103.1, Utah Code Annotated 1953
             46          59-12-805, Utah Code Annotated 1953
             47      Be it enacted by the Legislature of the state of Utah:
             48          Section 1. Section 17A-2-1064 is amended to read:
             49           17A-2-1064. Airport to University of Utah Light Rail Restricted Account -- Creation
             50      -- Use of revenues.
             51          (1) There is created within the General Fund a restricted account known as the "Airport
             52      to University of Utah Light Rail Restricted Account."
             53          (2) The account shall be funded from the portion of the sales and use tax under Sections
             54      59-12-204 and 59-12-205 that is:
             55          (a) generated by a city or town that will have constructed within its boundaries the Airport
             56      to University of Utah Light Rail described in the Transportation Equity Act for the 21st Century,


             57      Pub. L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
             58          (b) equal to the revenues generated by a 1/64% tax rate on the taxable [items and services]
             59      transactions under Subsection 59-12-103 (1).
             60          (3) The Utah State Tax Commission shall deposit the revenues described in Subsection
             61      (2) into the account.
             62          (4) The account shall earn interest which shall be deposited into the account.
             63          (5) (a) A district may use the revenues in the account for a purpose described in Subsection
             64      (5)(b) if:
             65          (i) more than 200,000 people reside within the district boundaries; and
             66          (ii) the district receives a grant or a loan under 49 U.S.C. Sec. 5309:
             67          (A) for the Airport to University of Utah Light Rail project described in the Transportation
             68      Equity Act for the 21st Century, Pub. L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
             69          (B) before the construction of the Airport to University of Utah Light Rail project
             70      described in Subsection (5)(a)(ii)(A) is completed.
             71          (b) Subsection (5)(a) applies to:
             72          (i) maintaining the Airport to University of Utah Light Rail described in Subsection
             73      (5)(a)(ii)(A); or
             74          (ii) operating the Airport to University of Utah Light Rail described in Subsection
             75      (5)(a)(ii)(A).
             76          Section 2. Section 59-12-102 is amended to read:
             77           59-12-102. Definitions.
             78          As used in this chapter:
             79          (1) (a) "Admission or user fees" includes season passes.
             80          (b) "Admission or user fees" does not include annual membership dues to private
             81      organizations.
             82          (2) "Area agency on aging" is as defined in Section 62A-3-101 .
             83          (3) "Authorized carrier" means:
             84          (a) in the case of vehicles operated over public highways, the holder of credentials
             85      indicating that the vehicle is or will be operated pursuant to both the International Registration
             86      Plan (IRP) and the International Fuel Tax Agreement (IFTA);
             87          (b) in the case of aircraft, the holder of a Federal Aviation Administration (FAA) operating


             88      certificate or air carrier's operating certificate; or
             89          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling stock,
             90      the holder of a certificate issued by the United States Interstate Commerce Commission.
             91          (4) (a) For purposes of Subsection 59-12-104 (43), "coin-operated amusement device"
             92      means:
             93          (i) a coin-operated amusement, skill, or ride device;
             94          (ii) that is not controlled through vendor-assisted, over-the-counter, sales of tokens; and
             95          (iii) includes a music machine, pinball machine, billiard machine, video game machine,
             96      arcade machine, and a mechanical or electronic skill game or ride.
             97          (b) For purposes of Subsection 59-12-104 (43), "coin-operated amusement device" does
             98      not mean a coin-operated amusement device possessing a coinage mechanism that:
             99          (i) accepts and registers multiple denominations of coins; and
             100          (ii) allows the vendor to collect the sales and use tax at the time an amusement device is
             101      activated and operated by a person inserting coins into the device.
             102          (5) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels
             103      that does not constitute industrial use under Subsection (13) or residential use under Subsection
             104      (21).
             105          (6) (a) "Common carrier" means a person engaged in or transacting the business of
             106      transporting passengers, freight, merchandise, or other property for hire within this state.
             107          (b) (i) "Common carrier" does not include a person who, at the time the person is traveling
             108      to or from that person's place of employment, transports a passenger to or from the passenger's
             109      place of employment.
             110          (ii) For purposes of Subsection (6)(b)(i), in accordance with Title 63, Chapter 46a, Utah
             111      Administrative Rulemaking Act, the commission may make rules defining what constitutes a
             112      person's place of employment.
             113          (7) "Component part" includes:
             114          (a) poultry, dairy, and other livestock feed, and their components;
             115          (b) baling ties and twine used in the baling of hay and straw;
             116          (c) fuel used for providing temperature control of orchards and commercial greenhouses
             117      doing a majority of their business in wholesale sales, and for providing power for off-highway type
             118      farm machinery; and


             119          (d) feed, seeds, and seedlings.
             120          (8) "Construction materials" means any tangible personal property that will be converted
             121      into real property.
             122          (9) (a) "Fundraising sales" means sales:
             123          (i) (A) made by a public or private elementary or secondary school; or
             124          (B) made by a public or private elementary or secondary school student, grades
             125      kindergarten through 12;
             126          (ii) that are for the purpose of raising funds for the school to purchase equipment,
             127      materials, or provide transportation; and
             128          (iii) that are part of an officially sanctioned school activity.
             129          (b) For purposes of Subsection (9)(a)(iii), "officially sanctioned school activity" means a
             130      school activity:
             131          (i) that is conducted in accordance with a formal policy adopted by the school or school
             132      district governing the authorization and supervision of fundraising activities;
             133          (ii) that does not directly or indirectly compensate an individual teacher or other
             134      educational personnel by direct payment, commissions, or payment in kind; and
             135          (iii) the net or gross revenues from which are deposited in a dedicated account controlled
             136      by the school or school district.
             137          (10) (a) "Hearing aid" means:
             138          (i) an instrument or device having an electronic component that is designed to:
             139          (A) (I) improve impaired human hearing; or
             140          (II) correct impaired human hearing; and
             141          (B) (I) be worn in the human ear; or
             142          (II) affixed behind the human ear;
             143          (ii) an instrument or device that is surgically implanted into the cochlea; or
             144          (iii) a telephone amplifying device.
             145          (b) "Hearing aid" does not include:
             146          (i) except as provided in Subsection (10)(a)(i)(B) or (10)(a)(ii), an instrument or device
             147      having an electronic component that is designed to be worn on the body;
             148          (ii) except as provided in Subsection (10)(a)(iii), an assistive listening device or system
             149      designed to be used by one individual, including:


             150          (A) a personal amplifying system;
             151          (B) a personal FM system;
             152          (C) a television listening system; or
             153          (D) a device or system similar to a device or system described in Subsections
             154      (10)(b)(ii)(A) through (C); or
             155          (iii) an assistive listening device or system designed to be used by more than one
             156      individual, including:
             157          (A) a device or system installed in:
             158          (I) an auditorium;
             159          (II) a church;
             160          (III) a conference room;
             161          (IV) a synagogue; or
             162          (V) a theater; or
             163          (B) a device or system similar to a device or system described in Subsections
             164      (10)(b)(iii)(A)(I) through (V).
             165          (11) (a) "Hearing aid accessory" means a hearing aid:
             166          (i) component;
             167          (ii) attachment; or
             168          (iii) accessory.
             169          (b) "Hearing aid accessory" includes:
             170          (i) a hearing aid neck loop;
             171          (ii) a hearing aid cord;
             172          (iii) a hearing aid ear mold;
             173          (iv) hearing aid tubing;
             174          (v) a hearing aid ear hook; or
             175          (vi) a hearing aid remote control.
             176          (c) "Hearing aid accessory" does not include:
             177          (i) a component, attachment, or accessory designed to be used only with an:
             178          (A) instrument or device described in Subsection (10)(b)(i); or
             179          (B) assistive listening device or system described in Subsection (10)(b)(ii) or (iii); or
             180          (ii) a hearing aid battery.


             181          (12) (a) "Home medical equipment and supplies" means equipment and supplies that:
             182          (i) a licensed physician prescribes or authorizes in writing as necessary for the treatment
             183      of a medical illness or injury or as necessary to mitigate an impairment resulting from illness or
             184      injury;
             185          (ii) are used exclusively by the person for whom they are prescribed to serve a medical
             186      purpose; and
             187          (iii) are listed as eligible for payment under Title 18 of the federal Social Security Act or
             188      under the state plan for medical assistance under Title 19 of the federal Social Security Act.
             189          (b) "Home medical equipment and supplies" does not include:
             190          (i) equipment and supplies purchased by, for, or on behalf of any health care facility, as
             191      defined in Subsection (12)(c), doctor, nurse, or other health care provider for use in their
             192      professional practice;
             193          (ii) eyeglasses, contact lenses, or equipment to correct impaired vision; or
             194          (iii) hearing aids or hearing aid accessories.
             195          (c) For purposes of Subsection (12)(b)(i), "health care facility" includes:
             196          (i) a clinic;
             197          (ii) a doctor's office; and
             198          (iii) a health care facility as defined in Section 26-21-2 .
             199          (13) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or other
             200      fuels in:
             201          (a) mining or extraction of minerals;
             202          (b) agricultural operations to produce an agricultural product up to the time of harvest or
             203      placing the agricultural product into a storage facility, including:
             204          (i) commercial greenhouses;
             205          (ii) irrigation pumps;
             206          (iii) farm machinery;
             207          (iv) implements of husbandry as defined in Subsection 41-1a-102 (23) that are not
             208      registered under Title 41, Chapter 1a, Part 2, Registration; and
             209          (v) other farming activities; and
             210          (c) manufacturing tangible personal property at an establishment described in SIC Codes
             211      2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal Executive Office


             212      of the President, Office of Management and Budget.
             213          (14) "Manufactured home" means any manufactured home or mobile home as defined in
             214      Title 58, Chapter 56, Utah Uniform Building Standards Act.
             215          (15) For purposes of Subsection 59-12-104 (14), "manufacturing facility" means:
             216          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard Industrial
             217      Classification Manual of the federal Executive Office of the President, Office of Management and
             218      Budget; or
             219          (b) a scrap recycler if:
             220          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process one
             221      or more of the following items into prepared grades of processed materials for use in new products:
             222          (A) iron;
             223          (B) steel;
             224          (C) nonferrous metal;
             225          (D) paper;
             226          (E) glass;
             227          (F) plastic;
             228          (G) textile; or
             229          (H) rubber; and
             230          (ii) the new products under Subsection (15)(b)(i) would otherwise be made with
             231      nonrecycled materials.
             232          (16) (a) "Medicine" means:
             233          (i) insulin, syringes, and any medicine prescribed for the treatment of human ailments by
             234      a person authorized to prescribe treatments and dispensed on prescription filled by a registered
             235      pharmacist, or supplied to patients by a physician, surgeon, or podiatric physician;
             236          (ii) any medicine dispensed to patients in a county or other licensed hospital if prescribed
             237      for that patient and dispensed by a registered pharmacist or administered under the direction of a
             238      physician; and
             239          (iii) any oxygen or stoma supplies prescribed by a physician or administered under the
             240      direction of a physician or paramedic.
             241          (b) "Medicine" does not include:
             242          (i) any auditory, prosthetic, ophthalmic, or ocular device or appliance; or


             243          (ii) any alcoholic beverage.
             244          (17) "Olympic merchandise" means tangible personal property bearing an Olympic
             245      designation, emblem, insignia, mark, logo, service mark, symbol, terminology, trademark, or other
             246      copyrighted or protected material, including:
             247          (a) one or more of the following terms:
             248          (i) "Olympic[;]";
             249          (ii) "Olympiad[;]"; or
             250          (iii) "Citius Altius Fortius[;]";
             251          (b) the symbol of the International Olympic Committee, consisting of five interlocking
             252      rings;
             253          (c) the emblem of the International Olympic Committee Corporation;
             254          (d) a United States Olympic Committee designation, emblem, insignia, mark, logo, service
             255      mark, symbol, terminology, trademark, or other copyrighted or protected material;
             256          (e) any emblem of the Winter Olympic Games of 2002 that is officially designated by the
             257      Salt Lake Organizing Committee of the Winter Olympic Games of 2002; or
             258          (f) the mascot of the Winter Olympic Games of 2002.
             259          (18) (a) "Other fuels" means products that burn independently to produce heat or energy.
             260          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible personal
             261      property.
             262          (19) "Person" includes any individual, firm, partnership, joint venture, association,
             263      corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
             264      municipality, district, or other local governmental entity of the state, or any group or combination
             265      acting as a unit.
             266          (20) "Purchase price" means the amount paid or charged for tangible personal property or
             267      any other taxable [item or service] transaction under Subsection 59-12-103 (1), excluding only cash
             268      discounts taken or any excise tax imposed on the purchase price by the federal government.
             269          (21) "Residential use" means the use in or around a home, apartment building, sleeping
             270      quarters, and similar facilities or accommodations.
             271          (22) (a) "Retail sale" means any sale within the state of tangible personal property or any
             272      other taxable [item or service] transaction under Subsection 59-12-103 (1), other than resale of such
             273      property, item, or service by a retailer or wholesaler to a user or consumer.


             274          (b) "Retail sale" includes sales by any farmer or other agricultural producer of poultry,
             275      eggs, or dairy products to consumers if the sales have an average monthly sales value of $125 or
             276      more.
             277          (c) "Retail sale" does not include, and no additional sales or use tax shall be assessed
             278      against, those transactions where a purchaser of tangible personal property pays applicable sales
             279      or use taxes on its initial nonexempt purchases of property and then enters into a sale-leaseback
             280      transaction by which title to such property is transferred by the purchaser-lessee to a lessor for
             281      consideration, provided:
             282          (i) the transaction is intended as a form of financing for the property to the
             283      purchaser-lessee; and
             284          (ii) pursuant to generally accepted accounting principles, the purchaser-lessee is required
             285      to capitalize the subject property for financial reporting purposes, and account for the lease
             286      payments as payments made under a financing arrangement.
             287          (23) (a) "Retailer" means any person engaged in a regularly organized retail business in
             288      tangible personal property or any other taxable [item or service] transaction under Subsection
             289      59-12-103 (1), and who is selling to the user or consumer and not for resale.
             290          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
             291      engaged in the business of selling to users or consumers within the state.
             292          [(c) "Retailer" includes any person who engages in regular or systematic solicitation of a
             293      consumer market in this state by the distribution of catalogs, periodicals, advertising flyers, or
             294      other advertising, or by means of print, radio or television media, by mail, telegraphy, telephone,
             295      computer data base, cable, optic, microwave, or other communication system.]
             296          [(d)] (c) "Retailer" does not include farmers, gardeners, stockmen, poultrymen, or other
             297      growers or agricultural producers producing and doing business on their own premises, except
             298      those who are regularly engaged in the business of buying or selling for a profit.
             299          [(e)] (d) For purposes of this chapter the commission may regard as retailers the following
             300      if they determine it is necessary for the efficient administration of this chapter: salesmen,
             301      representatives, peddlers, or canvassers as the agents of the dealers, distributors, supervisors, or
             302      employers under whom they operate or from whom they obtain the tangible personal property sold
             303      by them, irrespective of whether they are making sales on their own behalf or on behalf of these
             304      dealers, distributors, supervisors, or employers, except that:


             305          (i) a printer's facility with which a retailer has contracted for printing shall not be
             306      considered to be a salesman, representative, peddler, canvasser, or agent of the retailer; and
             307          (ii) the ownership of property that is located at the premises of a printer's facility with
             308      which the retailer has contracted for printing and that consists of the final printed product, property
             309      that becomes a part of the final printed product, or copy from which the printed product is
             310      produced, shall not result in the retailer being deemed to have or maintain an office, distribution
             311      house, sales house, warehouse, service enterprise, or other place of business, or to maintain a stock
             312      of goods, within this state.
             313          (24) "Sale" means any transfer of title, exchange, or barter, conditional or otherwise, in any
             314      manner, of tangible personal property or any other taxable [item or service] transaction under
             315      Subsection 59-12-103 (1), for [a] consideration. It includes:
             316          (a) installment and credit sales;
             317          (b) any closed transaction constituting a sale;
             318          (c) any sale of electrical energy, gas, services, or entertainment taxable under this chapter;
             319          (d) any transaction if the possession of property is transferred but the seller retains the title
             320      as security for the payment of the price; and
             321          (e) any transaction under which right to possession, operation, or use of any article of
             322      tangible personal property is granted under a lease or contract and the transfer of possession would
             323      be taxable if an outright sale were made.
             324          (25) (a) "Sales relating to schools" means sales by a public school district or public or
             325      private elementary or secondary school, grades kindergarten through 12, that are directly related
             326      to the school's or school district's educational functions or activities and include:
             327          (i) the sale of textbooks, textbook fees, laboratory fees, laboratory supplies, and safety
             328      equipment;
             329          (ii) the sale of clothing that:
             330          (A) a student is specifically required to wear as a condition of participation in a
             331      school-related event or activity; and
             332          (B) is not readily adaptable to general or continued usage to the extent that it takes the
             333      place of ordinary clothing;
             334          (iii) sales of food if the net or gross revenues generated by the food sales are deposited into
             335      a school district fund or school fund dedicated to school meals; and


             336          (iv) transportation charges for official school activities.
             337          (b) "Sales relating to schools" does not include:
             338          (i) gate receipts;
             339          (ii) special event admission fees;
             340          (iii) bookstore sales of items that are not educational materials or supplies; and
             341          (iv) except as provided in Subsection (25)(a)(ii), clothing.
             342          (26) "Senior citizen center" means a facility having the primary purpose of providing
             343      services to the aged as defined in Section 62A-3-101 .
             344          (27) "State" means the state of Utah, its departments, and agencies.
             345          (28) "Storage" means any keeping or retention of tangible personal property or any other
             346      taxable [item or service] transaction under Subsection 59-12-103 (1), in this state for any purpose
             347      except sale in the regular course of business.
             348          (29) (a) "Tangible personal property" means:
             349          (i) all goods, wares, merchandise, produce, and commodities;
             350          (ii) all tangible or corporeal things and substances which are dealt in or capable of being
             351      possessed or exchanged;
             352          (iii) water in bottles, tanks, or other containers; and
             353          (iv) all other physically existing articles or things, including property severed from real
             354      estate.
             355          (b) "Tangible personal property" does not include:
             356          (i) real estate or any interest or improvements in real estate;
             357          (ii) bank accounts, stocks, bonds, mortgages, notes, and other evidence of debt;
             358          (iii) insurance certificates or policies;
             359          (iv) personal or governmental licenses;
             360          (v) water in pipes, conduits, ditches, or reservoirs;
             361          (vi) currency and coinage constituting legal tender of the United States or of a foreign
             362      nation; and
             363          (vii) all gold, silver, or platinum ingots, bars, medallions, or decorative coins, not
             364      constituting legal tender of any nation, with a gold, silver, or platinum content of not less than
             365      80%.
             366          (30) (a) "Use" means the exercise of any right or power over tangible personal property


             367      under Subsection 59-12-103 (1), incident to the ownership or the leasing of that property, item, or
             368      service.
             369          (b) "Use" does not include the sale, display, demonstration, or trial of that property in the
             370      regular course of business and held for resale.
             371          (31) "Vehicle" means any aircraft, as defined in Section 72-10-102 ; any vehicle, as defined
             372      in Section 41-1a-102 ; any off-highway vehicle, as defined in Section 41-22-2 ; and any vessel, as
             373      defined in Section 41-1a-102 ; that is required to be titled, registered, or both. "Vehicle" for
             374      purposes of Subsection 59-12-104 (36) only, also includes any locomotive, freight car, railroad
             375      work equipment, or other railroad rolling stock.
             376          (32) "Vehicle dealer" means a person engaged in the business of buying, selling, or
             377      exchanging vehicles as defined in Subsection (31).
             378          (33) (a) "Vendor" means[: (i)] any person receiving any payment or consideration upon
             379      a sale of tangible personal property or any other taxable [item or service] transaction under
             380      Subsection 59-12-103 (1), or to whom [such] the payment or consideration is payable[; and].
             381          [(ii) any person who engages in regular or systematic solicitation of a consumer market
             382      in this state by the distribution of catalogs, periodicals, advertising flyers, or other advertising, or
             383      by means of print, radio or television media, by mail, telegraphy, telephone, computer data base,
             384      cable, optic, microwave, or other communication system.]
             385          (b) "Vendor" does not mean a printer's facility described in Subsection (23)(e).
             386          Section 3. Section 59-12-103 is amended to read:
             387           59-12-103. Sales and use tax base -- Rate -- Use of sales and use tax revenues.
             388          (1) [There is levied a] A tax is imposed on the purchaser as provided in this part for [the
             389      amount] amounts paid or charged for the following transactions:
             390          (a) retail sales of tangible personal property made within the state;
             391          (b) [amount] amounts paid to common carriers or to telephone or telegraph corporations,
             392      whether the corporations are municipally or privately owned, for:
             393          (i) all transportation;
             394          (ii) intrastate telephone service; or
             395          (iii) telegraph service;
             396          (c) sales of the following for commercial use:
             397          (i) gas[,];


             398          (ii) electricity[,];
             399          (iii) heat[,];
             400          (iv) coal[,];
             401          (v) fuel oil[,]; or
             402          (vi) other fuels [sold for commercial use];
             403          (d) sales of the following for residential use:
             404          (i) gas[,];
             405          (ii) electricity[,];
             406          (iii) heat[,];
             407          (iv) coal[,];
             408          (v) fuel oil[,]; or
             409          (vi) other fuels [sold for residential use];
             410          (e) sales of meals [sold];
             411          (f) amounts paid or charged as admission or user fees for theaters, movies, operas,
             412      museums, planetariums, shows of any type or nature, exhibitions, concerts, carnivals, amusement
             413      parks, amusement rides, circuses, menageries, fairs, races, contests, sporting events, dances,
             414      boxing [and] matches, wrestling matches, closed circuit television broadcasts, billiard [or] parlors,
             415      pool parlors, bowling lanes, golf [and], miniature golf, golf driving ranges, batting cages, skating
             416      rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides,
             417      river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or any other
             418      amusement, entertainment, recreation, exhibition, cultural, or athletic activity;
             419          (g) amounts paid or charged for services:
             420          (i) for repairs or renovations of tangible personal property; or [services]
             421          (ii) to install tangible personal property in connection with other tangible personal
             422      property;
             423          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for cleaning
             424      or washing of tangible personal property;
             425          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court accommodations
             426      and services for less than 30 consecutive days;
             427          (j) amounts paid or charged for laundry [and] or dry cleaning services;
             428          (k) amounts paid or charged for leases [and] or rentals of tangible personal property if:


             429          (i) the [property] tangible personal property's situs is in this state[, if];
             430          (ii) the lessee took possession of the tangible personal property in this state[,]; or [if the]
             431          (iii) within this state the tangible personal property is:
             432          (A) stored[,];
             433          (B) used[,]; or
             434          (C) otherwise consumed [in this state];
             435          (l) amounts paid or charged for tangible personal property if within this state the tangible
             436      personal property is:
             437          (i) stored[,];
             438          (ii) used[,]; or
             439          (iii) consumed [in this state]; and
             440          (m) amounts paid or charged for prepaid telephone calling cards.
             441          (2) (a) Except [for Subsection (1)(d), the rates of the tax levied under] as provided in
             442      Subsections (2)(b) and (c), beginning on July 1, 2001, a state tax and a local tax is imposed on a
             443      transaction described in Subsection (1) [shall be:] equal to the sum of:
             444          [(a) 5% through June 30, 1994;]
             445          [(b) 4.875% beginning on July 1, 1994 through June 30, 1997; and]
             446          [(c) 4.75% beginning on July 1, 1997.]
             447          (i) a state tax imposed on the transaction at a rate of 4.75%; and
             448          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             449      transaction under this chapter other than this part.
             450          [(3)] (b) [The rates of the tax levied under] Notwithstanding Subsection (2)(a), beginning
             451      on July 1, 2001, a state tax and a local tax is imposed on a transaction described in Subsection
             452      (1)(d) [shall be 2% from and after January 1, 1990] equal to the sum of:
             453          (i) a state tax imposed on the transaction at a rate of 2%; and
             454          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             455      transaction under this chapter other than this part.
             456          (c) Notwithstanding Subsections (2)(a) and (b), beginning on July 1, 2001, if a vendor
             457      collects a tax under Subsection 59-12-107 (1)(b) on a transaction described in Subsection (1), a
             458      state tax and a local tax is imposed on the transaction equal to the sum of:
             459          (i) a state tax imposed on the transaction at a rate of:


             460          (A) 4.75% for a transaction other than a transaction described in Subsection (1)(d); or
             461          (B) 2% for a transaction described in Subsection (1)(d); and
             462          (ii) except as provided in Subsection (2)(d), a local tax imposed on the transaction at a rate
             463      equal to the sum of the following tax rates:
             464          (A) the lowest tax rate imposed by a county, city, or town under Section 59-12-204 , but
             465      only if all of the counties, cities, and towns in the state impose the tax under Section 59-12-204 ;
             466          (B) the lowest tax rate imposed by a county, city, or town under Section 59-12-205 , but
             467      only if all of the counties, cities, and towns in the state impose the tax under Section 59-12-205 ;
             468      and
             469          (C) the tax rate authorized by Section 59-12-1102 , but only if all of the counties in the
             470      state impose the tax under Section 59-12-1102 .
             471          (d) Tax rates authorized under the following do not apply to Subsection (2)(c)(ii):
             472          (i) Subsection (2)(a)(i);
             473          (ii) Subsection (2)(b)(i);
             474          (iii) Subsection (2)(c)(i);
             475          (iv) Section 59-12-301 ;
             476          (v) Section 59-12-352 ;
             477          (vi) Section 59-12-353 ;
             478          (vii) Section 59-12-401 ;
             479          (viii) Section 59-12-402 ;
             480          (ix) Section 59-12-501 ;
             481          (x) Section 59-12-502 ;
             482          (xi) Section 59-12-603 ;
             483          (xii) Section 59-12-703 ;
             484          (xiii) Section 59-12-802 ;
             485          (xiv) Section 59-12-804 ;
             486          (xv) Section 59-12-1001 ;
             487          (xvi) Section 59-12-1201 ; or
             488          (xvii) Section 59-12-1302 .
             489          (3) (a) Except as provided in Subsections (4) through (7), the state taxes described in
             490      Subsections (2)(a)(i), (2)(b)(i), and (2)(c)(i) shall be deposited into the General Fund.


             491          (b) The local taxes described in Subsections (2)(a)(ii) and (2)(b)(ii) shall be distributed to
             492      a county, city, or town as provided in this chapter.
             493          (c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the state
             494      shall receive the county's, city's, or town's proportionate share of the revenues generated by the
             495      local tax described in Subsection (2)(c)(ii) as provided in Subsection (3)(c)(ii).
             496          (ii) The commission shall determine a county's, city's, or town's proportionate share of the
             497      revenues under Subsection (3)(c)(i) by:
             498          (A) dividing the population of the county, city, or town by the total population of the state;
             499      and
             500          (B) multiplying the percentage determined under Subsection (3)(c)(ii)(A) by the total
             501      amount of revenues generated by the local tax under Subsection (2)(c)(ii) for all counties, cities,
             502      and towns.
             503          (iii) (A) Except as provided in Subsection (3)(c)(iii)(B), for purposes of this section, the
             504      commission shall calculate the population of a county, city, or town on the basis of the most recent
             505      official census or census estimate of the United States Census Bureau.
             506          (B) Notwithstanding Subsection (3)(c)(iii)(A), if population estimates are not made for a
             507      county, city, or town by the United States Bureau of the Census, the commission shall calculate
             508      the population estimates according to the biennial estimate of the population of the county, city,
             509      or town from the Utah Population Estimates Committee created by executive order of the
             510      governor.
             511          (C) For purposes of this section, the population of a county may only include the
             512      population of the unincorporated areas of the county.
             513          (4) (a) [There] Notwithstanding Subsection (3)(a), there shall be deposited in an Olympics
             514      special revenue fund or funds as determined by the Division of Finance under Section 51-5-4 , for
             515      the use of the Utah Sports Authority created under Title 63A, Chapter 7, Utah Sports Authority
             516      Act:
             517          (i) from January 1, 1990, through December 31, 1999, the amount of sales and use tax
             518      generated by a 1/64% tax rate on the taxable [items and services] transactions under Subsection
             519      (1);
             520          (ii) from January 1, 1990, through June 30, 1999, the amount of revenue generated by a
             521      1/64% tax rate under Section 59-12-204 or Section 59-12-205 on the taxable [items and services]


             522      transactions under Subsection (1); and
             523          (iii) interest earned on the amounts under Subsections (4)(a)(i) and (ii).
             524          (b) These funds shall be used:
             525          (i) by the Utah Sports Authority as follows:
             526          (A) to the extent funds are available, to transfer directly to a debt service fund or to
             527      otherwise reimburse to the state any amount expended on debt service or any other cost of any
             528      bonds issued by the state to construct any public sports facility as defined in Section 63A-7-103 ;
             529          (B) to pay for the actual and necessary operating, administrative, legal, and other expenses
             530      of the Utah Sports Authority, but not including protocol expenses for seeking and obtaining the
             531      right to host the Winter Olympic Games; and
             532          (C) unless the Legislature appropriates additional funds from the Olympics Special
             533      Revenue Fund to the Utah Sports Authority, the Utah Sports Authority may not expend, loan, or
             534      pledge in the aggregate more than:
             535          (I) $59,000,000 of sales and use tax deposited into the Olympics special revenue fund
             536      under Subsection (4)(a);
             537          (II) the interest earned on the amount described in Subsection (4)(b)(i)(C)(I); and
             538          (III) the revenues deposited into the Olympics Special Revenue Fund that are not sales and
             539      use taxes deposited under Subsection (4)(a) or interest on the sales and use taxes;
             540          (ii) to pay salary, benefits, or administrative costs associated with the State Olympic
             541      Officer under Subsection 63A-10-103 (3), except that the salary, benefits, or administrative costs
             542      may not be paid from the sales and tax revenues generated by municipalities or counties and
             543      deposited under Subsection (4)(a)(ii).
             544          (c) A payment of salary, benefits, or administrative costs under Subsection 63A-10-103 (3)
             545      is not considered an expenditure of the Utah Sports Authority.
             546          (d) If the Legislature appropriates additional funds under Subsection (4)(b)(i)(C), the
             547      authority may not expend, loan, pledge, or enter into any agreement to expend, loan, or pledge the
             548      appropriated funds unless the authority:
             549          (i) contracts in writing for the full reimbursement of the monies to the Olympics special
             550      revenue fund by a public sports entity or other person benefitting from the expenditure; and
             551          (ii) obtains a security interest that secures payment or performance of the obligation to
             552      reimburse.


             553          (e) A contract or agreement entered into in violation of Subsection (4)(d) is void.
             554          (5) (a) [From] Notwithstanding Subsection (3)(a), beginning on July 1, 1997, the annual
             555      amount of sales and use tax generated by a 1/8% tax rate on the taxable items and services under
             556      Subsection (1) shall be used as follows:
             557          (i) 50% shall be used for water and wastewater projects as provided in Subsections (5)(b)
             558      through (f); and
             559          (ii) 50% shall be used for transportation projects as provided in Subsections (5)(g) through
             560      (h).
             561          (b) Five hundred thousand dollars each year shall be transferred to the Agriculture
             562      Resource Development Fund created in Section 4-18-6 .
             563          (c) Fifty percent of the remaining amount generated by 50% of the 1/8% tax rate shall be
             564      transferred to the Water Resources Conservation and Development Fund created in Section
             565      73-10-24 for use by the Division of Water Resources. In addition to the uses allowed of the fund
             566      under Section 73-10-24 , the fund may also be used to:
             567          (i) provide a portion of the local cost share, not to exceed in any fiscal year 50% of the
             568      funds made available to the Division of Water Resources under this section, of potential project
             569      features of the Central Utah Project;
             570          (ii) conduct hydrologic and geotechnical investigations by the Department of Natural
             571      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             572      quantifying surface and ground water resources and describing the hydrologic systems of an area
             573      in sufficient detail so as to enable local and state resource managers to plan for and accommodate
             574      growth in water use without jeopardizing the resource;
             575          (iii) fund state required dam safety improvements; and
             576          (iv) protect the state's interest in interstate water compact allocations, including the hiring
             577      of technical and legal staff.
             578          (d) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
             579      shall be transferred to the Utah Wastewater Loan Program subaccount created in Section 73-10c-5
             580      for use by the Water Quality Board to fund wastewater projects as defined in Section 73-10b-2 .
             581          (e) Twenty-five percent of the remaining amount generated by 50% of the 1/8% tax rate
             582      shall be transferred to the Drinking Water Loan Program subaccount created in Section 73-10c-5
             583      for use by the Division of Drinking Water to:


             584          (i) provide for the installation and repair of collection, treatment, storage, and distribution
             585      facilities for any public water system, as defined in Section 19-4-102 ;
             586          (ii) develop underground sources of water, including springs and wells; and
             587          (iii) develop surface water sources.
             588          (f) Notwithstanding Subsections (5)(b), (c), (d), and (e), $100,000 of the remaining amount
             589      generated by 50% of the 1/8% tax rate each year shall be transferred as dedicated credits to the
             590      Division of Water Rights to cover the costs incurred in hiring legal and other technical staff for the
             591      adjudication of water rights. Any remaining balance at the end of each fiscal year shall lapse back
             592      to the contributing funds on a prorated basis.
             593          (g) Fifty percent of the 1/8% tax rate shall be transferred to the class B and class C roads
             594      account to be expended as provided in Title 72, Chapter 2, Transportation Finances Act, for the
             595      use of class B and C road funds except as provided in Subsection (5)(h).
             596          (h) (i) If H.B. 53, "Transportation Corridor Preservation," passes in the 1996 General
             597      Session, $500,000 each year shall be transferred to the Transportation Corridor Preservation
             598      Revolving Loan Fund, and if H.B. 121, "State Park Access Roads," passes in the 1996 General
             599      Session, from July 1, 1997, through June 30, 2006, $500,000 shall be transferred to the Department
             600      of Transportation for the State Park Access Highways Improvement Program. The remaining
             601      amount generated by 50% of the 1/8% tax rate shall be transferred to the class B and class C roads
             602      account.
             603          (ii) At least 50% of the money transferred to the Transportation Corridor Preservation
             604      Revolving Loan Fund under Subsection (5)(h)(i) shall be used to fund loan applications made by
             605      the Department of Transportation at the request of local governments.
             606          (6) (a) [Beginning] Notwithstanding Subsection (3)(a), beginning on January 1, 2000, the
             607      Division of Finance shall deposit into the Centennial Highway Fund created in Section 72-2-118
             608      a portion of the state sales and use tax under [Subsections] Subsection (2) [and (3)] equal to the
             609      revenues generated by a 1/64% tax rate on the taxable [items and services] transactions under
             610      Subsection (1).
             611          (b) Except for sales and use taxes deposited under Subsection (7), beginning on July 1,
             612      1999, the revenues generated by the 1/64% tax rate:
             613          (i) retained under Subsection 59-12-204 (7)(a) shall be retained by the counties, cities, or
             614      towns as provided in Section 59-12-204 ; and


             615          (ii) retained under Subsection 59-12-205 (4)(a) shall be distributed to each county, city, and
             616      town as provided in Section 59-12-205 .
             617          (7) [Beginning] Notwithstanding Subsection (3)(a), beginning on July 1, 1999, the
             618      commission shall deposit into the Airport to University of Utah Light Rail Restricted Account
             619      created in Section 17A-2-1064 the portion of the sales and use tax under Sections 59-12-204 and
             620      59-12-205 that is:
             621          (a) generated by a city or town that will have constructed within its boundaries the Airport
             622      to University of Utah Light Rail described in the Transportation Equity Act for the 21st Century,
             623      Pub. L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
             624          (b) equal to the revenues generated by a 1/64% tax rate on the taxable items and services
             625      under Subsection (1).
             626          Section 4. Section 59-12-103.1 is enacted to read:
             627          59-12-103.1. Action by Supreme Court of the United States authorizing or action by
             628      Congress permitting a state to require certain vendors to collect a sales or use tax --
             629      Collection of tax by commission -- Tax Review Commission study.
             630          (1) A vendor shall remit to the commission a tax as provided in Subsection
             631      59-12-103 (2)(c) and Section 59-12-107 if:
             632          (a) the Supreme Court of the United States issues a decision authorizing a state to require
             633      a vendor that does not meet one or more of the criteria described in Subsection 59-12-107 (1)(a)
             634      to collect a sales or use tax; or
             635          (b) Congress permits the state to require a vendor that does not meet one or more of the
             636      criteria described in Subsection 59-12-107 (1)(a) to collect a sales or use tax.
             637          (2) The commission shall:
             638          (a) collect the tax described in Subsection (1) from the vendor:
             639          (i) to the extent:
             640          (A) authorized by the Supreme Court of the United States; or
             641          (B) permitted by Congress;
             642          (ii) beginning on the first day of a calendar quarter as prescribed by the Utah Tax Review
             643      Commission; and
             644          (b) make a report to the Utah Tax Review Commission:
             645          (i) regarding the actions taken by:


             646          (A) the Supreme Court of the United States; or
             647          (B) Congress; and
             648          (ii) at the Utah Tax Review Commission meeting immediately following the day on which
             649      the Supreme Court of the United States' or Congress' actions become effective.
             650          (3) The Utah Tax Review Commission shall after hearing the commission's report under
             651      Subsection (2)(b):
             652          (a) review the actions taken by:
             653          (i) the Supreme Court of the United States; or
             654          (ii) Congress;
             655          (b) direct the commission regarding the day on which the commission is required to collect
             656      the tax described in Subsection (1); and
             657          (c) make recommendations to the Revenue and Taxation Interim Committee:
             658          (i) regarding whether as a result of the Supreme Court of the United States' or Congress'
             659      actions any provisions of this chapter should be amended or repealed; and
             660          (ii) within a one-year period after the day on which the commission makes a report under
             661      Subsection (2)(b).
             662          Section 5. Section 59-12-106 is amended to read:
             663           59-12-106. Sales and use tax license -- No fee -- Exemption certificate license number
             664      to accompany contract bids.
             665          (1) It is unlawful for any person required by this chapter to collect sales or use tax, to
             666      engage in business within the state without first having obtained a license to do so. This license
             667      shall be granted and issued by the commission. The license is not assignable and is valid only for
             668      the person in whose name it is issued until that person ceases to do business or changes his
             669      business address, or until the license is revoked by the commission. Such license shall be granted
             670      only upon application stating the name and address of the applicant and other information the
             671      commission may require. At the time of application, the commission shall notify the applicant of
             672      the responsibilities and liability of a business owner successor under Section 59-12-112 . If
             673      business is transacted at two or more separate places by one person, a separate license for each
             674      place of business shall be required. The commission shall, on a reasonable notice and after a
             675      hearing, revoke the license of any person violating any provisions of this chapter and no license
             676      may be issued to such person until the taxpayer has complied with the requirements of this chapter.


             677      Any person required by this chapter to collect sales or use tax within this state without having
             678      secured a license to do so, is guilty of a criminal violation as provided in Section 59-1-401 . No
             679      license is required for any person engaged exclusively in the business of selling commodities
             680      which are exempt from taxation under this chapter. A license shall be issued to the applicant by
             681      the commission without a license fee.
             682          (2) For the purpose of the proper administration of this chapter and to prevent evasion of
             683      the tax and the duty to collect the tax, it shall be presumed that tangible personal property or any
             684      other taxable [item or service] transaction under Subsection 59-12-103 (1), sold by any person for
             685      delivery in this state is sold for storage, use, or other consumption in this state unless the person
             686      selling such property, item, or service has taken from the purchaser an exemption certificate signed
             687      by and bearing the name and address of the purchaser to the effect that the property, item, or
             688      service was exempted under Section 59-12-104 . The exemption certificates shall contain
             689      information as prescribed by the commission.
             690          (3) All persons filing contract bids with the state or any of its political subdivisions for sale
             691      of tangible personal property or any other taxable [item or service] transaction under Subsection
             692      59-12-103 (1), shall include with the bid the sales tax license number issued to them under
             693      Subsection (1).
             694          Section 6. Section 59-12-107 is amended to read:
             695           59-12-107. Collection, remittance, and payment of tax by vendors or other persons
             696      -- Returns -- Direct payment by purchaser of vehicle -- Other liability for collection -- Credits
             697      -- Deposit and sale of security -- Penalties.
             698          (1) (a) Each vendor shall pay or collect and remit the sales and use taxes imposed by this
             699      chapter if within this state the vendor:
             700          (i) has or utilizes:
             701          (A) an office[,];
             702          (B) a distribution house[,];
             703          (C) a sales house[,];
             704          (D) a warehouse[,];
             705          (E) a service enterprise[,]; or [other]
             706          (F) a place of business similar to Subsections (1)(a)(i)(A) through (E);
             707          (ii) maintains a stock of goods;


             708          [(iii) engages in regular or systematic solicitation of sale of tangible personal property,
             709      whether or not accepted in this state, by the distribution of catalogs, periodicals, advertising flyers,
             710      or other advertising by means of print, radio, or television, or by mail, telegraphy, telephone,
             711      computer data base, optic, microwave, or other communication system for the purpose of selling,
             712      at retail, tangible personal property;]
             713          (iii) regularly solicits orders, regardless of whether or not the orders are accepted in the
             714      state, unless the vendor's only activity in the state is:
             715          (A) advertising; or
             716          (B) solicitation by:
             717          (I) direct mail;
             718          (II) electronic mail;
             719          (III) the Internet;
             720          (IV) telephone; or
             721          (V) a means similar to Subsections (1)(a)(iii)(A) or (B);
             722          (iv) regularly engages in the delivery of property in [this] the state other than by:
             723          (A) common carrier; or
             724          (B) United States mail; or
             725          (v) regularly engages in [any] an activity [in connection with] directly related to the leasing
             726      or servicing of property located within [this] the state.
             727          (b) If [none of the conditions listed under] a vendor does not meet one or more of the
             728      criteria provided for in Subsection (1)(a) [exist], the vendor [is not responsible for the collection
             729      of the use tax but each person storing, using, or consuming]:
             730          (i) except as provided in Subsection (1)(b)(ii), may voluntarily:
             731          (A) collect a tax as provided in Subsection 59-12-103 (2)(c) on a transaction described in
             732      Subsection 59-12-103 (1); and
             733          (B) remit the tax to the commission as provided in this part; or
             734          (ii) notwithstanding Subsection (1)(b)(i), shall collect a tax as provided in Subsection
             735      59-12-103 (2)(c) on a transaction described in Subsection 59-12-103 (1) if Section 59-12-103.1
             736      requires the vendor to collect the tax.
             737          (c) A person shall pay a use tax imposed by this chapter on a transaction if:
             738          (i) the vendor did not collect a use tax imposed by this chapter on the transaction; and


             739          (ii) the person:
             740          (A) stores the tangible personal property in the state;
             741          (B) uses the tangible personal property in the state; or
             742          (C) consumes the tangible personal property [is responsible for remitting the use tax] in
             743      the state.
             744          [(c)] (d) Notwithstanding the provisions of Subsection (1)(a), the ownership of property
             745      that is located at the premises of a printer's facility with which the retailer has contracted for
             746      printing and that consists of the final printed product, property that becomes a part of the final
             747      printed product, or copy from which the printed product is produced, shall not result in the retailer
             748      being considered to have or maintain an office, distribution house, sales house, warehouse, service
             749      enterprise, or other place of business, or to maintain a stock of goods, within this state.
             750          (2) (a) Each vendor shall collect the sales or use tax from the purchaser.
             751          (b) A vendor may not collect as tax an amount, without regard to fractional parts of one
             752      cent, in excess of the tax computed at the rates prescribed by this chapter.
             753          (c) (i) Each vendor shall:
             754          (A) give the purchaser a receipt for the use tax collected; or
             755          (B) bill the use tax as a separate item and declare the name of this state and the vendor's
             756      use tax license number on the invoice for the sale.
             757          (ii) The receipt or invoice is prima facie evidence that the vendor has collected the use tax
             758      and relieves the purchaser of the liability for reporting the use tax to the commission as a
             759      consumer.
             760          (d) A vendor is not required to maintain a separate account for the tax collected, but is
             761      considered to be a person charged with receipt, safekeeping, and transfer of public moneys.
             762          (e) Taxes collected by a vendor pursuant to this chapter shall be held in trust for the benefit
             763      of the state and for payment to the commission in the manner and at the time provided for in this
             764      chapter.
             765          (f) If any vendor, during any reporting period, collects as a tax an amount in excess of the
             766      lawful state and local percentage of total taxable sales allowed under this part and Part 2, the
             767      vendor shall remit to the commission the full amount of the tax imposed under this part and Part
             768      2 plus any excess.
             769          (g) If the accounting methods regularly employed by the vendor in the transaction of the


             770      vendor's business are such that reports of sales made during a calendar month or quarterly period
             771      will impose unnecessary hardships, the commission may accept reports at intervals that will, in its
             772      opinion, better suit the convenience of the taxpayer or vendor and will not jeopardize collection
             773      of the tax.
             774          [(3) Each person storing, using, or consuming tangible personal property under Subsection
             775      59-12-103 (1) is liable for the use tax imposed under this chapter.]
             776          [(4)] (3) (a) Except as provided in Subsection [(5)] (4) and in Section 59-12-108 , the sales
             777      or use tax imposed by this chapter is due and payable to the commission quarterly on or before the
             778      last day of the month next succeeding each calendar quarterly period.
             779          (b) (i) Each vendor shall, on or before the last day of the month next succeeding each
             780      calendar quarterly period, file with the commission a return for the preceding quarterly period.
             781          (ii) The vendor shall remit with the return under Subsection (3)(b)(i) the amount of the tax
             782      required under this chapter to be collected or paid for the period covered by the return.
             783          (c) Each return shall contain information and be in a form the commission prescribes by
             784      rule.
             785          (d) The sales tax as computed in the return shall be based upon the total nonexempt sales
             786      made during the period, including both cash and charge sales.
             787          (e) The use tax as computed in the return shall be based upon the total amount of sales or
             788      purchases for storage, use, or other consumption in this state made during the period, including
             789      both by cash and by charge.
             790          (f) The commission may by rule extend the time for making returns and paying the taxes.
             791      No extension may be for more than 90 days.
             792          (g) The commission may require returns and payment of the tax to be made for other than
             793      quarterly periods if it considers it necessary in order to ensure the payment of the tax imposed by
             794      this chapter.
             795          [(5)] (4) On each vehicle sale made by other than a regular licensed vehicle dealer, the
             796      purchaser shall pay the sales or use tax directly to the commission if the vehicle is subject to titling
             797      or registration under the laws of this state. The commission shall collect the tax when the vehicle
             798      is titled or registered.
             799          [(6)] (5) If any sale of tangible personal property or any other taxable [item or service]
             800      transaction under Subsection 59-12-103 (1), is made by a wholesaler to a retailer, the wholesaler


             801      is not responsible for the collection or payment of the tax imposed on the sale if the retailer
             802      represents that the personal property is purchased by the retailer for resale and the personal
             803      property thereafter is not resold. Instead, the retailer is solely liable for the tax.
             804          [(7)] (6) If any sale of property or service subject to the tax is made to a person prepaying
             805      sales or use tax in accordance with Title 63, Chapter 51, Resource Development, or to a contractor
             806      or subcontractor of that person, the person to whom such payment or consideration is payable is
             807      not responsible for the collection or payment of the sales or use tax if the person prepaying the
             808      sales or use tax represents that the amount prepaid as sales or use tax has not been fully credited
             809      against sales or use tax due and payable under the rules promulgated by the commission. Instead,
             810      the person prepaying the sales or use tax is solely liable for the tax.
             811          [(8)] (7) Credit is allowed for prepaid taxes and for taxes paid on that portion of an account
             812      determined to be worthless and actually charged off for income tax purposes or on the portion of
             813      the purchase price remaining unpaid at the time of a repossession made under the terms of a
             814      conditional sales contract.
             815          [(9)] (8) (a) The commission may require any person subject to the tax imposed under this
             816      chapter to deposit with it security as the commission determines, if the commission considers it
             817      necessary to ensure compliance with this chapter.
             818          (b) The commission may sell the security at public sale if it becomes necessary to do so
             819      in order to recover any tax, interest, or penalty due.
             820          (c) (i) The commission shall serve notice of the sale upon the person who deposited the
             821      securities either personally or by mail.
             822          (ii) If the notice under Subsection (8)(c)(i) is by mail, notice sent to the last-known address
             823      as it appears in the records of the commission is sufficient for the purposes of this requirement.
             824          (d) The commission shall return to the person who deposited the security any amount of
             825      the sale proceeds that exceed the amounts due under this chapter.
             826          [(10)] (9) (a) A vendor may not, with intent to evade any tax, fail to timely remit the full
             827      amount of tax required by this chapter.
             828          (b) A violation of this section is punishable as provided in Section 59-1-401 .
             829          [(b)] (c) Each person who fails to pay any tax to the state or any amount of tax required
             830      to be paid to the state, except amounts determined to be due by the commission under Sections
             831      59-12-110 and 59-12-111 , within the time required by this chapter, or who fails to file any return


             832      as required by this chapter, shall pay, in addition to the tax, penalties and interest as provided in
             833      Section 59-12-110 .
             834          [(c)] (d) For purposes of prosecution under this section, each quarterly tax period in which
             835      a vendor, with intent to evade any tax, collects a tax and fails to timely remit the full amount of
             836      the tax required to be remitted, constitutes a separate offense.
             837          Section 7. Section 59-12-110 is amended to read:
             838           59-12-110. Overpayments, deficiencies, and refunds procedures.
             839          (1) (a) As soon as practicable after a return is filed, the commission shall examine the
             840      return.
             841          (b) If the commission determines that the correct amount of tax to be remitted is greater
             842      or less than the amount shown to be due on the return, the commission shall recompute the tax.
             843          (c) If the amount paid exceeds the amount due, the excess, plus interest as provided in
             844      Section 59-1-402 , shall be credited or refunded to the taxpayer as provided in Subsection (2).
             845          (d) The commission may not credit or refund to the taxpayer interest on an overpayment
             846      under Subsection (1)(c) if the commission determines that the overpayment was made for the
             847      purpose of investment.
             848          (2) (a) If a taxpayer pays a tax, penalty, or interest more than once or the commission
             849      erroneously receives, collects, or computes any tax, penalty, or interest, including an overpayment
             850      described in Subsection (1)(c), the commission shall:
             851          (i) credit the amount of tax, penalty, or interest paid by the taxpayer against any amounts
             852      of tax, penalties, or interest the taxpayer owes; and
             853          (ii) refund any balance to the taxpayer or the taxpayer's successors, administrators,
             854      executors, or assigns.
             855          (b) Except as provided in Subsection (2)(c) or Section 19-2-124 , a taxpayer shall file a
             856      claim with the commission to obtain a refund or credit under this Subsection (2) within three years
             857      from the day on which the taxpayer overpaid the tax, penalty, or interest.
             858          (c) Notwithstanding Subsection (2)(b), beginning on July 1, 1998, the commission shall
             859      extend the period for a taxpayer to file a claim under Subsection (2)(b) if:
             860          (i) the three-year period under Subsection (2)(b) has not expired; and
             861          (ii) the commission and the taxpayer sign a written agreement:
             862          (A) authorizing the extension; and


             863          (B) providing for the length of the extension.
             864          (d) A taxpayer may file a claim to obtain a refund or credit under this Subsection (2)
             865      regardless of whether the taxpayer received or objected to a notice of deficiency or a notice of
             866      assessment as provided in Subsection 59-12-114 (1).
             867          (e) A taxpayer may obtain a refund under this Subsection (2) of a tax paid under this
             868      chapter on a [sale or use] transaction that is taxable under Section 59-12-103 if:
             869          (i) the sale or use was exempt from sales and use taxes under Section 59-12-104 on the
             870      date of purchase; and
             871          (ii) except as provided in Subsection (2)(c), the taxpayer files a claim for a refund with the
             872      commission as provided in Subsections (2)(b) through (d).
             873          (f) If the commission denies a claim for a refund or credit under this Subsection (2), the
             874      taxpayer may request a redetermination of the denial by filing a petition or request for agency
             875      action with the commission as provided in Title 63, Chapter 46b, Administrative Procedures Act.
             876          (3) If the commission erroneously determines an amount to be due from a taxpayer, the
             877      commission shall authorize the amounts to be cancelled upon its records.
             878          (4) (a) Subject to the provisions of Subsection (4)(b), the commission may impose on a
             879      deficiency under this section:
             880          (i) a penalty as provided in Section 59-1-401 ; and
             881          (ii) interest as provided in Section 59-1-402 .
             882          (b) The commission may impose a penalty and interest on the entire deficiency if any part
             883      of the deficiency is due to:
             884          (i) negligence;
             885          (ii) intentional disregard of law or rule; or
             886          (iii) fraud with intent to evade the tax.
             887          (5) (a) Except as provided in Subsection (5)(b), a taxpayer shall pay a tax deficiency,
             888      including penalties or interest under this section, within ten days after the commission provides
             889      the taxpayer notice and demand of the deficiency, penalty, or interest.
             890          (b) Notwithstanding Subsection (5)(a), a taxpayer may pay a tax deficiency, penalty, or
             891      interest within 30 days after the commission provides the taxpayer notice and demand of the
             892      deficiency, penalty, or interest if the commission determines:
             893          (i) that a greater amount was due than was shown on the return; and


             894          (ii) the tax is not in jeopardy.
             895          (6) (a) Except as provided in Subsections (6)(c) through (f), the commission shall assess
             896      the amount of taxes imposed by this chapter, and any penalties and interest, within three years after
             897      a taxpayer files a return.
             898          (b) Except as provided in Subsections (6)(c) through (f), if the commission does not make
             899      an assessment under Subsection (6)(a) within three years, the commission may not commence a
             900      proceeding for the collection of the taxes after the expiration of the three-year period.
             901          (c) Notwithstanding Subsections (6)(a) and (b), the commission may make an assessment
             902      or commence a proceeding to collect a tax at any time if a deficiency is due to:
             903          (i) fraud; or
             904          (ii) failure to file a return.
             905          (d) Notwithstanding Subsections (6)(a) and (b), beginning on July 1, 1998, the commission
             906      may extend the period to make an assessment or to commence a proceeding to collect the tax under
             907      this chapter if:
             908          (i) the three-year period under this Subsection (6) has not expired; and
             909          (ii) the commission and the taxpayer sign a written agreement:
             910          (A) authorizing the extension; and
             911          (B) providing for the length of the extension.
             912          (e) If the commission delays an audit at the request of a taxpayer, the commission may
             913      make an assessment as provided in Subsection (6)(f) if:
             914          (i) the taxpayer subsequently refuses to agree to an extension request by the commission;
             915      and
             916          (ii) the three-year period under this Subsection (6) expires before the commission
             917      completes the audit.
             918          (f) An assessment under Subsection (6)(e) shall be:
             919          (i) for the time period for which the commission could not make an assessment because
             920      of the expiration of the three-year period; and
             921          (ii) in an amount equal to the difference between:
             922          (A) the commission's estimate of the amount of taxes the taxpayer would have been
             923      assessed for the time period described in Subsection (6)(f)(i); and
             924          (B) the amount of taxes the taxpayer actually paid for the time period described in


             925      Subsection (6)(f)(i).
             926          Section 8. Section 59-12-204 is amended to read:
             927           59-12-204. Sales and use tax ordinance provisions -- Tax rate -- Distribution of tax
             928      revenues.
             929          (1) The tax ordinance adopted pursuant to this part shall impose a tax upon those [items]
             930      transactions listed in [Section] Subsection 59-12-103 (1).
             931          (2) (a) Except as provided in [Subsection] Subsections (2)(b) and (c), (6)(b) and (c), and
             932      59-12-205 (2), such tax ordinance shall include a provision imposing a tax upon every [retail sale
             933      of items] transaction listed in [Section] Subsection 59-12-103 (1) made within a county, including
             934      areas contained within the cities and towns thereof at the rate of 3/4% or any fractional part of such
             935      3/4% of the purchase price paid or charged.
             936          (b) (i) Notwithstanding Subsection (2)(a), a tax ordinance under this Subsection (2) shall
             937      include a provision prohibiting a county, city, or town from imposing a tax under this section on:
             938          (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             939      exempt from taxation under Section 59-12-104 ; and
             940          (B) subject to Subsection (2)(b)(ii), any amounts paid or charged by a vendor that collects
             941      a tax under Subsection 59-12-107 (1)(b) unless all of the counties, cities, and towns in the state
             942      impose the tax under this section.
             943          (ii) Notwithstanding Subsection (2)(a), if a county, city, or town imposes a tax under
             944      Subsection (2)(b)(i)(B), the tax ordinance under this Subsection (2) shall include a provision that
             945      the tax rate is equal to the lowest tax rate imposed by a county, city, or town under this section.
             946          (c) (i) Notwithstanding Section 59-12-205 , a tax ordinance under this Subsection (2) shall
             947      include a provision prohibiting a county, city, or town from imposing a tax under Section
             948      59-12-205 on:
             949          (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             950      exempt from taxation under Section 59-12-104 ; and
             951          (B) subject to Subsection (2)(c)(ii), any amounts paid or charged by a vendor that collects
             952      a tax under Subsection 59-12-107 (1)(b) unless all of the counties, cities, and towns in the state
             953      impose the tax under Section 59-12-205 .
             954          (ii) Notwithstanding Section 59-12-205 , if a county, city, or town imposes a tax under
             955      Subsection (2)(c)(i)(B), the tax ordinance under this Subsection (2) shall include a provision that


             956      the tax rate is equal to the lowest tax rate imposed by a county, city, or town under Section
             957      59-12-205 .
             958          (3) Such tax ordinance shall include provisions substantially the same as those contained
             959      in Part 1, Tax Collection, insofar as they relate to sales or use tax, except that the name of the
             960      county as the taxing agency shall be substituted for that of the state where necessary for the
             961      purpose of this part and that an additional license is not required if one has been or is issued under
             962      Section 59-12-106 .
             963          (4) Such tax ordinance shall include a provision that the county shall contract, prior to the
             964      effective date of the ordinance, with the commission to perform all functions incident to the
             965      administration or operation of the ordinance.
             966          (5) Such tax ordinance shall include a provision that the sale, storage, use, or other
             967      consumption of tangible personal property, the purchase price or the cost of which has been subject
             968      to sales or use tax under a sales and use tax ordinance enacted in accordance with this part by any
             969      county, city, or town in any other county in this state, shall be exempt from the tax due under this
             970      ordinance.
             971          (6) Such tax ordinance shall include a provision that any person subject to the provisions
             972      of a city or town sales and use tax shall be exempt from the county sales and use tax if the city or
             973      town sales and use tax is levied under an ordinance including provisions in substance as follows:
             974          (a) a provision imposing a tax upon every [retail sale of items] transaction listed in Section
             975      59-12-103 made within the city or town at the rate imposed by the county in which it is situated
             976      pursuant to Subsection (2);
             977          (b) (i) notwithstanding Subsection (2)(a), and subject to Subsection (6)(b)(ii), a provision
             978      prohibiting the city or town from imposing a tax under this section on any amounts paid or charged
             979      by a vendor that collects a tax under Subsection 59-12-107 (1)(b) unless all of the counties, cities,
             980      and towns in the state impose a tax under this section; and
             981          (ii) notwithstanding Subsection (2)(a), if a city or town imposes a tax under Subsection
             982      (6)(b)(i), a provision that the tax rate is equal to the lowest tax rate imposed by a county, city, or
             983      town under this section;
             984          (c) (i) notwithstanding Section 59-12-205 and subject to Subsection (6)(c)(ii), a provision
             985      prohibiting the city or town from imposing a tax under Section 59-12-205 on any amounts paid
             986      or charged by a vendor that collects a tax under Subsection 59-12-107 (1)(b) unless all of the


             987      counties, cities, and towns in the state impose a tax under Section 59-12-205 ; and
             988          (ii) notwithstanding Section 59-12-205 , if a city or town imposes a tax under Subsection
             989      (6)(c)(i), a provision that the tax rate is equal to the lowest tax rate imposed by a county, city, or
             990      town under Section 59-12-205 ;
             991          [(b)] (d) provisions substantially the same as those contained in Part 1, Tax Collection,
             992      insofar as they relate to sales and use taxes, except that the name of the city or town as the taxing
             993      agency shall be substituted for that of the state where necessary for the purposes of this part;
             994          [(c)] (e) a provision that the city or town shall contract prior to the effective date of the city
             995      or town sales and use tax ordinance with the commission to perform all functions incident to the
             996      administration or operation of the sales and use tax ordinance of the city or town;
             997          [(d)] (f) a provision that the sale, storage, use, or other consumption of tangible personal
             998      property, the gross receipts from the sale of or the cost of which has been subject to sales or use
             999      tax under a sales and use tax ordinance enacted in accordance with this part by any county other
             1000      than the county in which the city or town is located, or city or town in this state, shall be exempt
             1001      from the tax; and
             1002          [(e)] (g) a provision that the amount of any tax paid under Part 1, Tax Collection, shall not
             1003      be included as a part of the purchase price paid or charged for a taxable item.
             1004          (7) (a) Notwithstanding any other provision of this section, from January 1, 1990, through
             1005      June 30, 1999, the commission shall determine and retain the amount of revenue generated by a
             1006      1/64% tax rate and deposit it in the Olympics Special Revenue Fund or funds provided for in
             1007      Subsection 59-12-103 (4) for the purposes of the Utah Sports Authority described in Title 63A,
             1008      Chapter 7, Utah Sports Authority Act.
             1009          (b) Except for sales and use taxes deposited under Subsection (7)(c), beginning on July 1,
             1010      1999, the amount of revenue generated by the 1/64% tax rate under Subsection (7)(a) shall be
             1011      retained by the county, city, or town levying a tax under this section.
             1012          (c) Notwithstanding any other provision of this section, beginning on July 1, 1999, the
             1013      commission shall:
             1014          (i) determine and retain the portion of the sales and use tax imposed under this section:
             1015          (A) by a city or town that will have constructed within its boundaries the Airport to
             1016      University of Utah Light Rail described in the Transportation Equity Act for the 21st Century, Pub.
             1017      L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and


             1018          (B) that is equal to the revenues generated by a 1/64% tax rate; and
             1019          (ii) deposit the revenues described in Subsection (7)(c)(i) in the Airport to University of
             1020      Utah Light Rail Restricted Account created in Section 17A-2-1064 for the purposes described in
             1021      Section 17A-2-1064 .
             1022          (8) If a county, city, or town imposes a tax under this section on any amounts paid or
             1023      charged by a vendor that collects a tax under Subsection 59-12-107 (1)(b), the revenues generated
             1024      by the tax shall be distributed as provided in Subsection 59-12-103 (3)(c).
             1025          Section 9. Section 59-12-205 is amended to read:
             1026           59-12-205. Ordinances to conform with statutory amendments -- Distribution of tax
             1027      revenues.
             1028          (1) Each county, city, and town, in order to maintain in effect sales and use tax ordinances
             1029      adopted pursuant to [this part] Section 59-12-204 , shall, within 30 days of any amendment of any
             1030      applicable provisions of Part 1, Tax Collection, adopt amendments of their respective sales and
             1031      use tax ordinances to conform with the amendments to Part 1, Tax Collection, insofar as they relate
             1032      to sales and use taxes.
             1033          (2) (a) Any county, city, or town may distribute its sales or use tax revenues by means
             1034      other than point of sale or use by notifying the commission in writing of such decision, no later
             1035      than 30 days before commencement of the next tax accrual period. [After]
             1036          (b) Except as provided in Subsections 59-12-204 (2)(b) and (c) and (6)(b) and (c), after
             1037      such notice is given, a county, city, or town may increase the tax authorized by this part to a total
             1038      of 1% [from and after] beginning on January 1, 1990, of the purchase price paid or charged[,
             1039      excluding a public transit sales and use tax as provided in Section 59-12-501 and a resort
             1040      communities sales tax as provided in Section 59-12-401 . This tax shall be collected and
             1041      distributed as follows:].
             1042          [(a) from July 1, 1992, through June 30, 1993, 45% of each dollar collected from the sales
             1043      and use tax authorized by this part shall be paid to each county, city, and town providing notice
             1044      under this section, based upon the percentage that the population of the county, city, or town bears
             1045      to the total population of all such entities providing notice under this section, and 55% based upon
             1046      the point of sale or use of the transaction; and (b) from and after July 1, 1993,]
             1047          (c) Except as provided in Subsections (2)(d), (3), and (4):
             1048          (i) 50% of each dollar collected from the sales and use tax authorized by this part shall be


             1049      paid to each county, city, and town providing notice under this section, based upon the percentage
             1050      that the population of the county, city, or town bears to the total population of all such entities
             1051      providing notice under this section[,]; and
             1052          (ii) 50% of each dollar collected from the sales and use tax authorized by this part shall
             1053      be paid to each county, city, and town providing notice under this section, based upon the point
             1054      of sale or use of the transaction.
             1055          (d) Notwithstanding Subsection (2)(c), if a county, city, or town imposes a tax under this
             1056      section on any amounts paid or charged by a vendor that collects a tax under Subsection
             1057      59-12-107 (1)(b), the revenues generated by the tax shall be distributed as provided in Subsection
             1058      59-12-103 (3)(c).
             1059          (3) (a) Notwithstanding any provision of Subsection (2), a county, city, or town that has
             1060      given notice under this section may not receive a tax revenue distribution less than 3/4 of 1% of
             1061      the taxable sales within its boundaries.
             1062          (b) The commission shall proportionally reduce quarterly distributions to any county, city,
             1063      or town, which, but for the reduction, would receive a distribution in excess of 1% beginning
             1064      January 1, 1990, of the sales and use tax revenue collected within its boundaries.
             1065          (4) (a) Notwithstanding any other provision of this section, from January 1, 1990, through
             1066      June 30, 1999, the commission shall determine and retain the amount of revenue generated by a
             1067      1/64% tax rate and deposit it in the Olympics Special Revenue Fund or funds provided for in
             1068      Subsection 59-12-103 (4) for the purposes of the Utah Sports Authority described in Title 63A,
             1069      Chapter 7, Utah Sports Authority Act.
             1070          (b) Except for sales and use taxes deposited under Subsection (4)(c), beginning on July 1,
             1071      1999, the amount of revenue generated by the 1/64% tax rate under Subsection (4)(a) shall be
             1072      distributed to each county, city, and town as provided in this section.
             1073          (c) Notwithstanding any other provision of this section, beginning on July 1, 1999, the
             1074      commission shall:
             1075          (i) determine and retain the portion of the sales and use tax imposed under this section:
             1076          (A) by a city or town that will have constructed within its boundaries the Airport to
             1077      University of Utah Light Rail described in the Transportation Equity Act for the 21st Century, Pub.
             1078      L. No. 105-178, Sec. 3030(c)(2)(B)(i)(II), 112 Stat. 107; and
             1079          (B) that is equal to the revenues generated by a 1/64% tax rate; and


             1080          (ii) deposit the revenues described in Subsection (4)(c)(i) in the Airport to University of
             1081      Utah Light Rail Restricted Account created in Section 17A-2-1064 for the purposes described in
             1082      Section 17A-2-1064 .
             1083          (5) (a) Population figures for purposes of this section shall be based on the most recent
             1084      official census or census estimate of the United States Census Bureau [of the Census].
             1085          (b) If population estimates are not made for any county, city, or town by the United States
             1086      Bureau of Census, population figures shall be determined according to the biennial estimate from
             1087      the Utah Population Estimates Committee created by executive order of the governor.
             1088          (6) The population of a county for purposes of this section shall be determined solely from
             1089      the unincorporated area of the county.
             1090          Section 10. Section 59-12-401 is amended to read:
             1091           59-12-401. Resort communities tax -- Rate -- Collection fees.
             1092          (1) (a) [In] Except as provided in Subsection (1)(b), and in addition to other sales taxes,
             1093      a city or town in which the transient room capacity is greater than or equal to 66% of the
             1094      permanent census population may impose a sales tax of up to 1% on the [sales and uses]
             1095      transactions described in Subsection 59-12-103 (1)[, subject to exemptions provided for in Section
             1096      59-12-104 , and shall exempt from that additional tax wholesale sales and sales of single items for
             1097      which consideration paid is $2,500 or more].
             1098          (b) Notwithstanding Subsection (1)(a), a city or town may not impose a tax under this
             1099      section on:
             1100          (i) wholesale sales;
             1101          (ii) the sale of a single item for which consideration paid is $2,500 or more;
             1102          (iii) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             1103      exempt from taxation under Section 59-12-104 ; and
             1104          (iv) any amounts paid or charged by a vendor that collects a tax under Subsection
             1105      59-12-107 (1)(b).
             1106          (2) (a) An amount equal to the total of any costs incurred by the state in connection with
             1107      the implementation of Subsection (1) which exceed, in any year, the revenues received by the state
             1108      from its collection fees received in connection with the implementation of Subsection (1) shall be
             1109      paid over to the state General Fund by the cities and towns which impose the tax provided for in
             1110      Subsection (1). [Payment costs]


             1111          (b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those
             1112      cities and towns according to the amount of revenue the respective cities and towns generate in that
             1113      year through imposition of that tax.
             1114          Section 11. Section 59-12-402 is amended to read:
             1115           59-12-402. Additional resort communities sales tax -- Rate -- Collection fees --
             1116      Resolution and voter approval requirements -- Election requirements -- Notice requirements
             1117      -- Ordinance requirements.
             1118          (1) (a) [Subject] Except as provided in Subsection (1)(b), and subject to the limitations of
             1119      Subsections (2) through (6), the governing body of a municipality in which the transient room
             1120      capacity is greater than or equal to 66% of the permanent census population may, in addition to
             1121      the sales tax authorized under Section 59-12-401 , impose an additional resort communities sales
             1122      tax in an amount that is less than or equal to 1/2% on the [sales and uses] transactions described
             1123      in Subsection 59-12-103 (1)[, subject to the exemptions provided for in Section 59-12-104 , and
             1124      shall exempt from that additional tax wholesale sales and sales of single items for which
             1125      consideration paid is $2,500 or more].
             1126          (b) Notwithstanding Subsection (1)(a), the governing body of a municipality may not
             1127      impose a tax under this section on:
             1128          (i) wholesale sales;
             1129          (ii) the sale of a single item for which consideration paid is $2,500 or more;
             1130          (iii) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             1131      exempt from taxation under Section 59-12-104 ; and
             1132          (iv) any amounts paid or charged by a vendor that collects a tax under Subsection
             1133      59-12-107 (1)(b).
             1134          (2) (a) An amount equal to the total of any costs incurred by the state in connection with
             1135      the implementation of Subsection (1) which exceed, in any year, the revenues received by the state
             1136      from its collection fees received in connection with the implementation of Subsection (1) shall be
             1137      paid over to the state General Fund by the cities and towns which impose the tax provided for in
             1138      Subsection (1). [Payment costs]
             1139          (b) Amounts paid under Subsection (2)(a) shall be allocated proportionally among those
             1140      cities and towns according to the amount of revenue the respective cities and towns generate in that
             1141      year through imposition of that tax.


             1142          (3) To impose an additional resort communities sales tax under this section, the governing
             1143      body of the municipality shall:
             1144          (a) pass a resolution approving the tax; and
             1145          (b) except as provided in Subsection (6), obtain voter approval for the tax as provided in
             1146      Subsection (4).
             1147          (4) To obtain voter approval for an additional resort communities sales tax under
             1148      Subsection (3)(b), a municipality shall:
             1149          (a) hold the additional resort communities sales tax election during:
             1150          (i) a regular general election; or
             1151          (ii) a municipal general election; and
             1152          (b) publish notice of the election:
             1153          (i) 15 days or more before the day on which the election is held; and
             1154          (ii) in a newspaper of general circulation in the municipality.
             1155          (5) (a) An ordinance approving an additional resort communities sales tax under this
             1156      section shall provide an effective date for the tax.
             1157          (b) A municipality imposing a tax under this section shall:
             1158          (i) collect the tax on the first day of a calendar quarter; and
             1159          (ii) notify the commission at least 30 days before the day on which the commission is
             1160      required to collect the tax.
             1161          (6) (a) Except as provided in Subsection (6)(b), a municipality is not subject to the voter
             1162      approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality
             1163      imposed a license fee or tax on businesses based on gross receipts pursuant to Section 10-1-203 .
             1164          (b) The exception from the voter approval requirements in Subsection (6)(a) does not
             1165      apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one
             1166      class of businesses based on gross receipts pursuant to Section 10-1-203 .
             1167          Section 12. Section 59-12-501 is amended to read:
             1168           59-12-501. Public transit tax -- Rate -- Voter approval.
             1169          (1) (a) (i) [In] Except as provided in Subsection (1)(a)(ii), in addition to other sales and
             1170      use taxes, any county, city, or town within a transit district organized under Title 17A, Chapter 2,
             1171      Part 10, may impose a sales and use tax of 1/4 of 1% on the [sales and uses] transactions described
             1172      in Subsection 59-12-103 (1), [subject to the exemptions provided for in Section 59-12-104 ,] to fund


             1173      a public transportation system.
             1174          (ii) Notwithstanding Subsection (1)(a)(i), a county, city, or town may not impose a tax
             1175      under this section on:
             1176          (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             1177      exempt from taxation under Section 59-12-104 ; and
             1178          (B) any amounts paid or charged by a vendor that collects a tax under Subsection
             1179      59-12-107 (1)(b).
             1180          (b) A county, city, or town may impose a tax under this section only if the governing body
             1181      of the county, city, or town, by resolution, submits the proposal to all the qualified voters within
             1182      the county, city, or town for approval at a general or special election conducted in the manner
             1183      provided by statute.
             1184          (2) (a) If only a portion of a county is included within a public transit district, the proposal
             1185      may be submitted only to the qualified voters residing within the boundaries of the proposed or
             1186      existing public transit district.
             1187          (b) Notice of any such election shall be given by the county, city, or town governing body
             1188      15 days in advance in the manner prescribed by statute.
             1189          (c) If a majority of the voters voting in such election approve the proposal, it shall become
             1190      effective on the date provided by the county, city, or town governing body.
             1191          (3) This section may not be construed to require an election in jurisdictions where voters
             1192      have previously approved a public transit sales or use tax.
             1193          Section 13. Section 59-12-502 is amended to read:
             1194           59-12-502. Additional public transit tax for expanded system and fixed guideway
             1195      and interstate improvements -- Rate -- Voter approval.
             1196          (1) (a) (i) [In] Except as provided in Subsection (1)(a)(ii), and in addition to other sales
             1197      and use taxes, [and] including the public transit district tax authorized by Section 59-12-501 , [any]
             1198      a county, city, or town within a transit district organized under Title 17A, Chapter 2, Part 10, may
             1199      impose a sales and use tax of 1/4 of 1% on the [sales and uses] transactions described in
             1200      Subsection 59-12-103 (1), [subject to the exemptions provided in Section 59-12-104 ,] to fund a
             1201      fixed guideway and expanded public transportation system.
             1202          (ii) Notwithstanding Subsection (1)(a)(i), a county, city, or town may not impose a tax
             1203      under this section on:


             1204          (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             1205      exempt from taxation under Section 59-12-104 ; and
             1206          (B) any amounts paid or charged by a vendor that collects a tax under Subsection
             1207      59-12-107 (1)(b).
             1208          (b) A county, city, or town may impose the tax under this section only if the governing
             1209      body of the county, city, or town submits, by resolution, the proposal to all the qualified voters
             1210      within the county, city, or town for approval at a general or special election conducted in the
             1211      manner provided by statute. Notice of the election shall be given by the county, city, or town
             1212      governing body 15 days in advance in the manner prescribed by statute.
             1213          (2) If the majority of the voters voting in this election approve the proposal, it shall
             1214      become effective on the date provided by the county, city, or town governing body.
             1215          (3) (a) This section may not be construed to require an election in jurisdictions where
             1216      voters have previously approved a public transit sales or use tax.
             1217          (b) This section shall be construed to require an election to impose the sales and use tax
             1218      authorized by this section, including jurisdictions where the voters have previously approved the
             1219      [transit district] sales and use tax authorized by Section 59-12-501 , but this section may not be
             1220      construed to affect the sales and use tax authorized by Section 59-12-501 .
             1221          (4) No public funds shall be spent to promote the required election.
             1222          (5) Notwithstanding the designated use of revenues in Subsection (1), of the revenues
             1223      generated by the tax imposed under this section by any county of the first class, 75% shall be
             1224      allocated to fund a fixed guideway and expanded public transportation system and 25% shall be
             1225      allocated to fund renovations, repairs, and improvements to Interstate 15.
             1226          Section 14. Section 59-12-703 is amended to read:
             1227           59-12-703. Opinion question election -- Imposition of tax -- Uses of tax monies.
             1228          (1) (a) (i) [Any] Except as provided in Subsection (1)(a)(ii), a county legislative body may,
             1229      by majority vote of all members, submit an opinion question to the residents of that county so that
             1230      each resident has an opportunity to express the resident's opinion on the imposition of a local sales
             1231      and use tax of 1/10 of 1% on the [sales and uses] transactions described in Subsection
             1232      59-12-103 (1), [subject to the exemptions provided for in Section 59-12-104 ,] to fund recreational
             1233      and zoological facilities and botanical, cultural, and zoological organizations in that county.
             1234          (ii) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a tax


             1235      under this section on:
             1236          (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             1237      exempt from taxation under Section 59-12-104 ; and
             1238          (B) any amounts paid or charged by a vendor that collects a tax under Subsection
             1239      59-12-107 (1)(b).
             1240          (b) The election shall follow the procedures outlined in Title 11, Chapter 14, Utah
             1241      Municipal Bond Act.
             1242          (2) (a) If the county legislative body determines that a majority of the qualified electors
             1243      voting on the opinion question has assented to the imposition of a local sales and use tax as
             1244      prescribed in Subsection (1)(a), the county legislative body may, by a majority vote of all
             1245      members, impose such a tax.
             1246          (b) If the county legislative body imposes a tax under Subsection (2)(a), the tax shall be
             1247      imposed at the beginning of the quarter following the county legislative body's decision to impose
             1248      such a tax.
             1249          (3) The monies generated from any tax imposed under Subsection (2) shall be used for
             1250      financing recreational and zoological facilities and ongoing operating expenses of botanical,
             1251      cultural, and zoological organizations within the county.
             1252          (4) Taxes imposed under this part shall be:
             1253          (a) levied at the same time and collected in the same manner as provided in Title 59,
             1254      Chapter 12, Part 2, The Local Sales and Use Tax Act, except that the collection and distribution
             1255      of the tax revenue is not subject to Subsection 59-12-205 (2); and
             1256          (b) levied for a period of ten years and may be reauthorized at the end of the ten-year
             1257      period in accordance with this section.
             1258          Section 15. Section 59-12-801 is amended to read:
             1259           59-12-801. Definitions.
             1260          As used in this part:
             1261          (1) "Nursing care facility" is as defined in Section 26-21-2 .
             1262          (2) "Rural city hospital" means a hospital owned by a city that is located within a third,
             1263      fourth, fifth, or sixth class county.
             1264          [(2)] (3) "Rural county health care facility" means a rural county hospital or a rural county
             1265      nursing care facility.


             1266          [(3)] (4) "Rural county hospital" means a hospital owned by a third, fourth, fifth, or sixth
             1267      class county, as defined in Section 17-16-13 , which is located outside of a standard metropolitan
             1268      statistical area, as designated by the United States Bureau of the Census.
             1269          [(4)] (5) "Rural county nursing care facility" means a nursing care facility owned by a
             1270      third, fourth, fifth, or sixth class county, as defined in Section 17-16-13 , which is located outside
             1271      of a standard metropolitan statistical area, as designated by the United States Bureau of the Census.
             1272          Section 16. Section 59-12-802 is amended to read:
             1273           59-12-802. Imposition of rural county health care facilities tax -- Base -- Rates.
             1274          (1) (a) [Any] A county legislative body may[, by a majority vote of all members, submit
             1275      an opinion question to the residents of that county so that each resident has an opportunity to
             1276      express the resident's opinion on the imposition of a local] impose a sales and use tax of up to 1%:
             1277          (i) except as provided in Subsection (1)(b), on the [sales and uses] transactions described
             1278      in Subsection 59-12-103 (1)[, subject to the exemptions provided for in Section 59-12-104 ,]; and
             1279          (ii) to fund rural county health care facilities in that county.
             1280          (b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a tax
             1281      under this section on:
             1282          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             1283      exempt from taxation under Section 59-12-104 ; and
             1284          (ii) any amounts paid or charged by a vendor that collects a tax under Subsection
             1285      59-12-107 (1)(b).
             1286          (2) (a) Before imposing or increasing a tax under Subsection (1)(a), a county legislative
             1287      body shall obtain approval to impose or increase the tax from a majority of the:
             1288          (i) members of the county's legislative body; and
             1289          (ii) county's registered voters voting on the imposition of the tax.
             1290          (b) The county legislative body shall conduct the election [shall follow] according to the
             1291      procedures [outlined in] and requirements of Title 11, Chapter 14, Utah Municipal Bond Act.
             1292          [(2) If the legislative governing body determines that a majority of the qualified electors
             1293      voting on the opinion question has assented to the imposition of a local sales and use tax as
             1294      prescribed in Subsection (1)(a), the county legislative body may, by majority vote of all members,
             1295      impose such a tax.]
             1296          (3) The monies generated [from] by a tax imposed under Subsection (1) may only be used


             1297      for the financing of:
             1298          (a) ongoing operating expenses of a rural county health care facility; [and]
             1299          (b) the acquisition of land for[, and] a rural county health care facility; or
             1300          (c) the design, construction, equipping, [and] or furnishing of a rural county health care
             1301      facility.
             1302          (4) Taxes imposed under this [part] section shall be:
             1303          (a) levied at the same time and collected in the same manner as provided in [Title 59,
             1304      Chapter 12,] Part 2, The Local Sales and Use Tax Act, except that the collection and distribution
             1305      of the tax revenue is not subject to Subsection 59-12-205 (2); and
             1306          (b) levied for a period of ten years and may be reauthorized at the end of the ten-year
             1307      period by the county legislative body as provided in Section (1).
             1308          (5) The [tax] commission may retain an amount not to exceed 1-1/2% of the [county
             1309      option funding] tax collected under this [part] section for the cost of administering this tax.
             1310          Section 17. Section 59-12-803 is amended to read:
             1311           59-12-803. Distribution of revenues generated by rural county health care facilities
             1312      tax.
             1313          [All] (1) Except as provided in Subsection 59-12-802 (5) and Subsection (2), all revenues
             1314      collected by a county under [this part] Section 59-12-802 shall be distributed quarterly by the
             1315      county legislative body to rural county health care facilities. [If]
             1316          (2) Notwithstanding Subsection (1), if there is more than one rural county health care
             1317      facility in a county, the revenues collected by a county under Section 59-12-802 shall be distributed
             1318      as determined by the county legislative body.
             1319          Section 18. Section 59-12-804 is amended to read:
             1320           59-12-804. Imposition of rural city hospital tax -- Base -- Rates.
             1321          [(1) As used in this section, "rural city hospital" means any hospital owned by a city which
             1322      is located within a third, fourth, fifth, or sixth class county.]
             1323          [(2) Any] (1) (a) A city legislative body may[, by a majority vote of all members submit
             1324      an opinion question to the residents of that city so that each resident has an opportunity to express
             1325      his opinion on the imposition of a local] impose a sales and use tax of up to 1%:
             1326          (i) except as provided in Subsection (1)(b), on the transactions described in Subsection
             1327      59-12-103 (1); and


             1328          (ii) to fund rural city hospitals in that city.
             1329          [(3) The city legislative body and the tax commission shall follow the procedures and
             1330      requirements established in Sections 59-12-802 and 59-12-803 for the tax imposed under this
             1331      section.]
             1332          (b) Notwithstanding Subsection (1)(a)(i), a city legislative body may not impose a tax
             1333      under this section on:
             1334          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             1335      exempt from taxation under Section 59-12-104 ; and
             1336          (ii) any amounts paid or charged by a vendor that collects a tax under Subsection
             1337      59-12-107 (1)(b).
             1338          (2) (a) Before imposing or increasing a tax under Subsection (1)(a), a city legislative body
             1339      shall obtain approval to impose the tax from a majority of the:
             1340          (i) members of the city legislative body; and
             1341          (ii) city's registered voters voting on the imposition of the tax.
             1342          (b) The city legislative body shall conduct the election according to the procedures and
             1343      requirements of Title 11, Chapter 14, Utah Municipal Bond Act.
             1344          (3) The monies generated by a tax imposed under Subsection (1) may only be used for the
             1345      financing of:
             1346          (a) ongoing operating expenses of a rural city hospital;
             1347          (b) the acquisition of land for a rural city hospital; or
             1348          (c) the design, construction, equipping, or furnishing of a rural city hospital.
             1349          (4) Taxes imposed under this section shall be:
             1350          (a) levied at the same time and collected in the same manner as provided in Part 2, The
             1351      Local Sales and Use Tax Act, except that the collection and distribution of the tax revenue is not
             1352      subject to Subsection 59-12-205 ; and
             1353          (b) levied for a period of ten years and may be reauthorized at the end of the ten-year
             1354      period by the city legislative body as provided in Subsection (1).
             1355          (5) The commission may retain an amount not to exceed 1-1/2% of the tax collected under
             1356      this section for the cost of administering the tax.
             1357          Section 19. Section 59-12-805 is enacted to read:
             1358          59-12-805. Distribution of revenues generated by rural city hospital tax.


             1359          (1) Except as provided in Subsection 59-12-804 (5) and Subsection (2), all revenues
             1360      collected by a city under Section 59-12-804 shall be distributed quarterly by the city legislative
             1361      body to rural city hospitals.
             1362          (2) Notwithstanding Subsection (1), if there is more than one rural city hospital in a city,
             1363      the revenues collected by the city under Section 59-12-804 shall be distributed as determined by
             1364      the city legislative body.
             1365          Section 20. Section 59-12-902 is amended to read:
             1366           59-12-902. Sales tax refund for qualified emergency food agencies -- Administration
             1367      -- Rulemaking authority.
             1368          (1) Beginning on January 1, 1998, a qualified emergency food agency may claim a sales
             1369      tax refund as provided in this section on the pounds of food donated to the qualified emergency
             1370      food agency.
             1371          (2) (a) Subject to the adjustments provided for in Subsection (2)(b), a qualified emergency
             1372      food agency may claim a refund in an amount equal to the pounds of food donated to the qualified
             1373      emergency food agency multiplied by:
             1374          (i) $1.70; and
             1375          (ii) [the lowest percentage of combined state and local sales and use taxes collected by a
             1376      municipality in the state under this chapter, except that the lowest percentage of combined state
             1377      and local sales and use taxes does not include the levy under Subsection 59-12-103 (3).] the sum
             1378      of:
             1379          (A) 4.75%; and
             1380          (B) except as provided in Subsection (2)(c), the sum of the tax rates provided for in
             1381      Subsection (2)(b).
             1382          (b) Tax rates authorized under the following apply to Subsection (2)(a)(ii)(B):
             1383          (i) the lowest tax rate imposed by a county, city, or town under Section 59-12-204 , but
             1384      only if all of the counties, cities, and towns in the state impose the tax under Section 59-12-204 ;
             1385          (ii) the lowest tax rate imposed by a county, city, or town under Section 59-12-205 , but
             1386      only if all of the counties, cities, and towns in the state impose the tax under Section 59-12-205 ;
             1387          (iii) the tax rate authorized by Section 59-12-501 or Section 59-12-1001 , but only if all of
             1388      the counties, cities, and towns in the state impose the tax:
             1389          (A) under Section 59-12-501 ; or


             1390          (B) under Section 59-12-1001 ;
             1391          (iv) the tax rate authorized by Section 59-12-502 , but only if all of the counties, cities, and
             1392      towns in the state impose the tax under Section 59-12-502 ;
             1393          (v) the tax rate authorized by Section 59-12-703 , but only if all of the counties in the state
             1394      impose the tax under Section 59-12-703 ; and
             1395          (vi) the tax rate authorized by Section 59-12-1102 , but only if all of the counties in the
             1396      state impose the tax under Section 59-12-1102 .
             1397          (c) Tax rates authorized under the following do not apply to Subsection (2)(a)(ii)(B):
             1398          (i) Subsection 59-12-103 (2)(a)(i);
             1399          (ii) Subsection 59-12-103 (2)(b)(i);
             1400          (iii) Subsection 59-12-103 (2)(c)(i);
             1401          (iv) Section 59-12-301 ;
             1402          (v) Section 59-12-352 ;
             1403          (vi) Section 59-12-353 ;
             1404          (vii) Section 59-12-401 ;
             1405          (viii) Section 59-12-402 ;
             1406          (ix) Section 59-12-603 ;
             1407          (x) Section 59-12-802 ;
             1408          (xi) Section 59-12-804 ;
             1409          (xii) Section 59-12-1201 ; or
             1410          (xiii) Section 59-12-1302 .
             1411          [(b)] (d) Beginning on January 1, 1999, the commission shall annually adjust on or before
             1412      the second Monday of February the $1.70 provided in Subsection (2)(a)(i) by a percentage equal
             1413      to the percentage difference between the food at home category of the Consumer Price Index for:
             1414          (i) the preceding calendar year; and
             1415          (ii) calendar year 1997.
             1416          (3) To claim a sales tax refund under this section, a qualified emergency food agency shall
             1417      file an application with the commission.
             1418          (4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1419      commission may make rules providing procedures for implementing the sales tax refund under this
             1420      section, including:


             1421          (a) procedures for an organization to apply for recognition as a qualified emergency food
             1422      agency;
             1423          (b) standards for determining and verifying the amount of the sales tax refund; and
             1424          (c) procedures for a qualified emergency food agency to apply for a sales tax refund,
             1425      including the frequency with which a qualified emergency food agency may apply for a sales tax
             1426      refund.
             1427          (5) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1428      Division of Community Development may establish rules providing for the certification of
             1429      emergency food agencies to claim a refund under this part.
             1430          Section 21. Section 59-12-1001 is amended to read:
             1431           59-12-1001. Authority to impose highways tax -- Resolution and voter approval
             1432      requirements -- Election requirements -- Notice requirements -- Ordinance requirements.
             1433          (1) (a) [A] Except as provided in Subsection (1)(b), a municipality in which [sales and
             1434      uses] the transactions described in Subsection 59-12-103 (1) are not subject to a sales and use tax
             1435      under Section 59-12-501 may as provided in this part impose a sales and use tax of 1/4% on the
             1436      [sales and uses] transactions described in Subsection 59-12-103 (1)[, subject to the exemptions
             1437      provided for in Section 59-12-104 ].
             1438          (b) Notwithstanding Subsection (1)(a), a municipality may not impose a tax under this
             1439      section on:
             1440          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             1441      exempt from taxation under Section 59-12-104 ; and
             1442          (ii) any amounts paid or charged by a vendor that collects a tax under Subsection
             1443      59-12-107 (1)(b).
             1444          (2) A tax imposed under this part by a municipality shall be used for the construction and
             1445      maintenance of highways under the jurisdiction of the municipality imposing the tax.
             1446          (3) To impose a highways tax under this part, the governing body of the municipality shall:
             1447          (a) pass an ordinance approving the tax; and
             1448          (b) except as provided in Subsection (7), obtain voter approval for the tax as provided in
             1449      Subsection (4).
             1450          (4) To obtain voter approval for a highways tax under Subsection (3)(b), a municipality
             1451      shall:


             1452          (a) hold the highways tax election during:
             1453          (i) a regular general election; or
             1454          (ii) a municipal general election; and
             1455          (b) publish notice of the election:
             1456          (i) 15 days or more before the day on which the election is held; and
             1457          (ii) in a newspaper of general circulation in the municipality.
             1458          (5) An ordinance approving a highways tax under this part shall provide an effective date
             1459      for the tax.
             1460          (6) A municipality imposing a tax under this part shall:
             1461          (a) begin collecting the tax on the first day of a calendar quarter; and
             1462          (b) notify the commission at least 30 days before the day on which the commission is
             1463      required to collect the tax.
             1464          (7) (a) Except as provided in Subsection (7)(b), a municipality is not subject to the voter
             1465      approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality
             1466      imposed a licensee fee or tax on businesses based on gross receipts pursuant to Section 10-1-203 .
             1467          (b) The exception from the voter approval requirements in Subsection (7)(a) does not
             1468      apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one
             1469      class of businesses based on gross receipts pursuant to Section 10-1-203 .
             1470          Section 22. Section 59-12-1102 is amended to read:
             1471           59-12-1102. Base -- Rate -- Imposition of tax -- Distribution of revenue --
             1472      Administration.
             1473          (1) (a) (i) [Subject] Except as provided in Subsection (1)(a)(ii), subject to the provisions
             1474      of Subsections (2) through (4), and in addition to any other tax authorized by this chapter, a county
             1475      may impose by ordinance a county option sales and use tax of 1/4% upon the [sales and uses]
             1476      transactions described in Subsection 59-12-103 (1)[, subject to the exemptions provided for in
             1477      Section 59-12-104 ].
             1478          (ii) Notwithstanding Subsection (1)(a)(i), a county may not impose a tax under this section
             1479      on:
             1480          (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             1481      exempt from taxation under Section 59-12-104 ; and
             1482          (B) any amounts paid or charged by a vendor that collects a tax under Subsection


             1483      59-12-107 (1)(b) unless all of the counties in the state impose a tax under this section.
             1484          (b) The county option sales and use tax under this section shall be imposed:
             1485          (i) upon sales and uses made in the county, including sales and uses made within
             1486      municipalities in the county; and
             1487          (ii) except as provided in Subsection (1)(c), beginning on the first day of January:
             1488          (A) of the next calendar year after adoption of the ordinance imposing the tax if the
             1489      ordinance is adopted on or before May 25; or
             1490          (B) of the second calendar year after adoption of the ordinance imposing the tax if the
             1491      ordinance is adopted after May 25.
             1492          (c) Notwithstanding Subsection (1)(b)(ii), the county option sales and use tax under this
             1493      section shall be imposed:
             1494          (i) beginning January 1, 1998, if an ordinance adopting the tax imposed on or before
             1495      September 4, 1997; or
             1496          (ii) beginning January 1, 1999, if an ordinance adopting the tax is imposed during 1997
             1497      but after September 4, 1997.
             1498          (2) (a) Before imposing a county option sales and use tax under Subsection (1), a county
             1499      shall:
             1500          (i) hold two public hearings on separate days in geographically diverse locations in the
             1501      county; and
             1502          (ii) notify the commission at least 30 days prior to the adoption of the ordinance.
             1503          (b) (i) At least one of the hearings required by Subsection (2)(a)(i) shall have a starting
             1504      time of no earlier than [6:00] 6 p.m.
             1505          (ii) The earlier of the hearings required by Subsection (2)(a)(i) shall be no less than seven
             1506      days after the day the first advertisement required by Subsection (2)(c) is published.
             1507          (c) (i) Before holding the public hearings required by Subsection (2)(a)(i), the county shall
             1508      advertise in a newspaper of general circulation in the county:
             1509          (A) its intent to adopt a county option sales and use tax;
             1510          (B) the date, time, and location of each public hearing; and
             1511          (C) a statement that the purpose of each public hearing is to obtain public comments
             1512      regarding the proposed tax.
             1513          (ii) The advertisement shall be published once each week for the two weeks preceding the


             1514      earlier of the two public hearings.
             1515          (iii) The advertisement shall be no less than 1/8 page in size, and the type used shall be no
             1516      smaller than 18 point and surrounded by a 1/4-inch border.
             1517          (iv) The advertisement may not be placed in that portion of the newspaper where legal
             1518      notices and classified advertisements appear.
             1519          (v) Whenever possible:
             1520          (A) the advertisement shall appear in a newspaper that is published at least five days a
             1521      week, unless the only newspaper in the county is published less than five days a week; and
             1522          (B) the newspaper selected shall be one of general interest and readership in the
             1523      community, and not one of limited subject matter.
             1524          (d) The adoption of an ordinance imposing a county option sales and use tax is subject to
             1525      a local referendum election as provided in Title 20A, Chapter 7, Part 6, Local Referenda -
             1526      Procedures, except that:
             1527          (i) notwithstanding Subsection 20A-7-609 (2)(a), the county clerk shall hold a referendum
             1528      election that qualifies for the ballot on the earlier of the next regular general election date or the
             1529      next municipal general election date more than 155 days after adoption of an ordinance under this
             1530      section;
             1531          (ii) for 1997 only, the 120-day period in Subsection 20A-7-606 (1) shall be 30 days; and
             1532          (iii) the deadlines in Subsection 20A-7-606 (2) and (3) do not apply, and the clerk shall
             1533      take the actions required by those subsections before the referendum election.
             1534          (3) (a) [If] Except as provided in Subsection (4), if the aggregate population of the counties
             1535      imposing a county option sales and use tax under Subsection (1) is less than 75% of the state
             1536      population, the tax levied under Subsection (1) shall be distributed to the county in which the tax
             1537      was collected.
             1538          (b) [If] Except as provided in Subsection (4), if the aggregate population of the counties
             1539      imposing a county option sales and use tax under Subsection (1) is greater than or equal to 75%
             1540      of the state population:
             1541          (i) 50% of the tax collected under Subsection (1) in each county shall be distributed to the
             1542      county in which the tax was collected; and
             1543          (ii) except as provided in Subsection (3)(c), 50% of the tax collected under Subsection (1)
             1544      in each county shall be distributed proportionately among all counties imposing the tax, based on


             1545      the total population of each county.
             1546          (c) If the amount to be distributed annually to a county under Subsection (3)(b)(ii), when
             1547      combined with the amount distributed to the county under Subsection (3)(b)(i), does not equal at
             1548      least $75,000, then:
             1549          (i) the amount to be distributed annually to that county under Subsection (3)(b)(ii) shall
             1550      be increased so that, when combined with the amount distributed to the county under Subsection
             1551      (3)(b)(i), the amount distributed annually to the county is $75,000; and
             1552          (ii) the amount to be distributed annually to all other counties under Subsection (3)(b)(ii)
             1553      shall be reduced proportionately to offset the additional amount distributed under Subsection
             1554      (3)(c)(i).
             1555          (d) The commission shall establish rules to implement the distribution of the tax under
             1556      Subsections (3)(a), (b), and (c).
             1557          (4) Notwithstanding Subsections (3)(a) and (b), if a county imposes a tax under this section
             1558      on any amounts paid or charged by a vendor that collects a tax under Subsection 59-12-107 (1)(b),
             1559      the revenues generated by the tax shall be distributed as provided in Subsection 59-12-103 (3)(c).
             1560          [(4)] (5) (a) Except as provided in Subsections [(4)] (5)(b) and (c), a county option sales
             1561      and use tax under Subsection (1) shall be imposed and administered in the same manner as a tax
             1562      imposed under Title 59, Chapter 12, Part 2, The Local Sales and Use Tax Act.
             1563          (b) A county option sales and use tax imposed under this part is not subject to:
             1564          (i) the distribution provisions of Subsections 59-12-205 (2) and (3); and
             1565          (ii) the earmarking provisions of Subsection 59-12-205 (4).
             1566          (c) The fee charged by the commission under Section 59-12-206 shall be based on the
             1567      distribution amounts resulting after all the applicable distribution calculations under Subsection
             1568      (3) have been made.
             1569          Section 23. Section 59-12-1302 is amended to read:
             1570           59-12-1302. Authority to impose -- Base -- Rate.
             1571          (1) Beginning on or after January 1, 1998, the governing body of a town may impose a tax
             1572      as provided in this part in an amount that does not exceed 1%.
             1573          (2) A town may impose a tax as provided in this part if the town imposed a license fee or
             1574      tax on businesses based on gross receipts under Section 10-1-203 on or before January 1, 1996.
             1575          (3) A town imposing a tax under this section shall:


             1576          (a) adopt an ordinance:
             1577          (i) except as provided in Subsection (4), imposing the tax on the [sales and uses]
             1578      transactions described in [Section] Subsection 59-12-103 (1); and
             1579          [(ii) exempting from the tax the sales and uses described in Section 59-12-104 ; and]
             1580          [(iii)] (ii) providing an effective date for the tax;
             1581          (b) impose the tax on the first day of a calendar quarter; and
             1582          (c) notify the commission at least 30 days before the day on which the commission is
             1583      required to collect the tax.
             1584          (4) Notwithstanding Subsection (3)(a)(i), a town may not impose a tax under this section
             1585      on:
             1586          (a) the sales and uses described in Section 59-12-104 to the extent the sales and uses are
             1587      exempt from taxation under Section 59-12-104 ; and
             1588          (b) any amounts paid or charged by a vendor that collects a tax under Subsection
             1589      59-12-107 (1)(b).
             1590          [(4)] (5) The commission shall:
             1591          (a) except as provided in Subsection [(4)] (5)(c), distribute the revenues generated by the
             1592      tax under this section to the town imposing the tax;
             1593          (b) administer, collect, and enforce the tax authorized under this section pursuant to:
             1594          (i) the same procedures used to administer, collect, and enforce the sales and use tax under
             1595      Title 59, Chapter 12, Part 1, Tax Collection; and
             1596          (ii) Title 59, Chapter 1, General Taxation Policies; and
             1597          (c) deduct from the distribution under Subsection [(4)] (5)(a) an administrative charge for
             1598      collecting the tax as provided in Section 59-12-206 .
             1599          Section 24. Effective date.
             1600          This act takes effect on July 1, 2001.





Legislative Review Note
    as of 2-18-00 2:01 PM


This legislation raises the following constitutional or statutory concerns:

    Courts have interpreted the commerce clause of the Constitution of the United States to
require that before a state can impose sales and use tax obligations on a person, the person must
first have sufficient connections or "nexus" with the state. This legislation modifies the
requirements necessary for a vendor to have nexus with the state and to be obligated to collect
sales and use taxes. Because case law is still developing in this area, it is unclear whether a court
would find that these requirements fall within parameters allowed by the federal constitution. The
legislation also authorizes vendors not having nexus with the state to voluntarily collect sales and
use taxes. However, if the Supreme Court of the United States authorizes or Congress permits a
state to impose collection obligations on these vendors, the vendors would be required to collect
sales and use taxes under the legislation. The legislation provides that a vendor not having nexus
with the state that collects sales and use taxes would collect the taxes from its Utah customers at
a lower rate than a vendor with nexus collecting sales and use taxes on its Utah transactions.
Under equal protection principles of the Constitution of the United States and the uniform
operation of the laws provisions of the Utah Constitution, there are limits on a legislature's ability
to make distinctions between taxpayers. In examining the permissibility of taxpayer classes, courts
look to factors such as the relationship between the class and the legislative objective being
pursued.

Office of Legislative Research and General Counsel


[Bill Documents][Bills Directory]