S.B. 209

1

SALES AND USE TAXES - NOTICE AND
2 EFFECTIVE DATE
3 2000 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: John L. Valentine
6 AN ACT RELATING TO THE MUNICIPAL ENERGY SALES AND USE TAX AND THE
7 SALES AND USE TAX ACT; SUBJECTING CERTAIN SALES AND USE TAXES TO
8 UNIFORM PROVISIONS RELATING TO EFFECTIVE DATES AND PROVIDING NOTICE
9 OF CERTAIN ACTIONS BY A COUNTY, CITY, OR TOWN TO THE UTAH STATE TAX
10 COMMISSION; AND MAKING TECHNICAL CHANGES.
11 This act affects sections of Utah Code Annotated 1953 as follows:
12 AMENDS:
13 10-1-304, as enacted by Chapter 280, Laws of Utah 1996
14 59-12-301, as last amended by Chapter 291, Laws of Utah 1998
15 59-12-354, as enacted by Chapter 305, Laws of Utah 1997
16 59-12-402, as last amended by Chapter 291, Laws of Utah 1998
17 59-12-603, as last amended by Chapters 289 and 291, Laws of Utah 1998
18 59-12-703, as last amended by Chapters 209 and 291, Laws of Utah 1998
19 59-12-1001, as last amended by Chapter 291, Laws of Utah 1998
20 59-12-1102, as last amended by Chapter 13, Laws of Utah 1998
21 59-12-1302, as enacted by Chapter 243, Laws of Utah 1998
22 ENACTS:
23 59-12-208.1, Utah Code Annotated 1953
24 59-12-355, Utah Code Annotated 1953
25 59-12-403, Utah Code Annotated 1953
26 59-12-504, Utah Code Annotated 1953
27 59-12-805, Utah Code Annotated 1953

28 REPEALS:
29 10-1-309, as enacted by Chapter 280, Laws of Utah 1996
30 59-12-208, as renumbered and amended by Chapter 5, Laws of Utah 1987
31 Be it enacted by the Legislature of the state of Utah:
32 Section 1. Section 10-1-304 is amended to read:
33 10-1-304. Municipality may levy tax -- Rate.
34 (1) By ordinance as provided in Section 10-1-305 , a municipality may levy a municipal
35 energy sales and use tax on the sale or use of taxable energy within the municipality of up to 6%
36 of the delivered value of the taxable energy.
37 (2) A municipal energy sales and use tax imposed under this part may be in addition to any
38 local option sales and use tax imposed by the municipality as provided in Title 59, Chapter 12, Part
39 2, The Local Sales and Use Tax Act.
40 (3) (a) For purposes of this Subsection (3):
41 (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part 4,
42 Annexation.
43 (ii) "Annexing area" means an area that is annexed into a city or town.
44 (b) (i) If, on or after May 1, 2000, a city or town enacts or repeals a tax or changes the rate
45 of a tax under this part, the enactment, repeal, or change shall take effect:
46 (A) on the first day of a calendar quarter; and
47 (B) after a 75-day period beginning on the date the commission receives notice meeting
48 the requirements of Subsection (3)(b)(ii) from the city or town.
49 (ii) The notice described in Subsection (3)(b)(i)(B) shall state:
50 (A) that the city or town will enact or repeal a tax or change the rate of a tax under this
51 part;
52 (B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
53 (C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
54 (D) if the city or town enacts the tax or changes the rate of the tax described in Subsection
55 (3)(b)(ii)(A), the new rate of the tax.
56 (c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
57 in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
58 (A) on the first day of a calendar quarter; and

59 (B) after a 75-day period beginning on the date the commission receives notice meeting
60 the requirements of Subsection (3)(c)(ii) from the city or town that annexes the annexing area.
61 (ii) The notice described in Subsection (3)(c)(i)(B) shall state:
62 (A) that the annexation described in Subsection (3)(c)(i) will result in a change in the rate
63 of a tax under this part for the annexing area;
64 (B) the statutory authority for the tax described in Subsection (3)(c)(ii)(A);
65 (C) the effective date of the tax described in Subsection (3)(c)(ii)(A); and
66 (D) the new rate of the tax described in Subsection (3)(c)(ii)(A).
67 Section 2. Section 59-12-208.1 is enacted to read:
68 59-12-208.1. Imposition or repeal of tax -- Tax rate change - Effective date -- Notice
69 requirements.
70 (1) For purposes of this section:
71 (a) "Annexation" means an annexation to:
72 (i) a county under Title 17, Chapter 2, Annexation to County; or
73 (ii) a city or town under Title 10, Chapter 2, Part 4, Annexation.
74 (b) "Annexing area" means an area that is annexed into a county, city, or town.
75 (2) (a) If, on or after May 1, 2000, a county, city, or town enacts or repeals a tax or changes
76 the rate of a tax under this part, the enactment, repeal, or change shall take effect:
77 (i) on the first day of a calendar quarter; and
78 (ii) after a 75-day period beginning on the date the commission receives notice meeting
79 the requirements of Subsection (2)(b) from the county, city, or town.
80 (b) The notice described in Subsection (2)(a)(ii) shall state:
81 (i) that the county, city, or town will enact or repeal a tax or change the rate of a tax under
82 this part;
83 (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
84 (iii) the effective date of the tax described in Subsection (2)(b)(i); and
85 (iv) if the county, city, or town enacts the tax or changes the rate of the tax described in
86 Subsection (2)(b)(i), the new rate of the tax.
87 (3) (a) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
88 in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
89 (i) on the first day of a calendar quarter; and

90 (ii) after a 75-day period beginning on the date the commission receives notice meeting
91 the requirements of Subsection (3)(b) from the county, city, or town that annexes the annexing
92 area.
93 (b) The notice described in Subsection (3)(a)(ii) shall state:
94 (i) that the annexation described in Subsection (3)(a) will result in a change in the rate of
95 a tax under this part for the annexing area;
96 (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
97 (iii) the effective date of the tax described in Subsection (3)(b)(i); and
98 (iv) the new rate of the tax described in Subsection (3)(b)(i).
99 Section 3. Section 59-12-301 is amended to read:
100 59-12-301. Transient room tax -- Rate.
101 (1) (a) Any county legislative body may impose a transient room tax not to exceed 3% of
102 the rent for every occupancy of a suite, room, or rooms on all persons, companies, corporations,
103 or other similar persons, groups, or organizations doing business as motor courts, motels, hotels,
104 inns, or similar public accommodations.
105 (b) A county legislative body imposing a tax under this part shall impose the tax on the
106 rents described in Subsection (1)(a) relating to the Olympic Winter Games of 2002 made to or by
107 an organization exempt from federal income taxation under Section 501(c)(3), Internal Revenue
108 Code, except for rents described in Subsection (1)(a):
109 (i) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
110 of 2002;
111 (ii) exclusively used by:
112 (A) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
113 Olympic Winter Games of 2002; or
114 (B) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
115 Games of 2002; and
116 (iii) for which the Salt Lake Organizing Committee for the Olympic Winter Games of
117 2002 does not receive reimbursement.
118 (2) [Any] Subject to Subsection (3), a county legislative body:
119 (a) may[, from time to time,] increase or decrease the transient room tax [as necessary or
120 desirable]; and

121 (b) shall regulate the transient room tax by ordinance.
122 (3) (a) For purposes of this Subsection (3):
123 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Annexation
124 to County.
125 (ii) "Annexing area" means an area that is annexed into a county.
126 (b) (i) If, on or after May 1, 2000, a county enacts or repeals a tax or changes the rate of
127 a tax under this part, the enactment, repeal, or change shall take effect:
128 (A) on the first day of a calendar quarter; and
129 (B) after a 75-day period beginning on the date the commission receives notice meeting
130 the requirements of Subsection (3)(b)(ii) from the county.
131 (ii) The notice described in Subsection (3)(b)(i)(B) shall state:
132 (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
133 (B) the statutory authority for the tax described in Subsection (3)(b)(ii)(A);
134 (C) the effective date of the tax described in Subsection (3)(b)(ii)(A); and
135 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
136 (3)(b)(ii)(A), the new rate of the tax.
137 (c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
138 in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
139 (A) on the first day of a calendar quarter; and
140 (B) after a 75-day period beginning on the date the commission receives notice meeting
141 the requirements of Subsection (3)(c)(ii) from the county that annexes the annexing area.
142 (ii) The notice described in Subsection (3)(c)(i)(B) shall state:
143 (A) that the annexation described in Subsection (3)(c)(i) will result in a change in the rate
144 of a tax under this part for the annexing area;
145 (B) the statutory authority for the tax described in Subsection (3)(c)(ii)(A);
146 (C) the effective date of the tax described in Subsection (3)(c)(ii)(A); and
147 (D) the new rate of the tax described in Subsection (3)(c)(ii)(A).
148 Section 4. Section 59-12-354 is amended to read:
149 59-12-354. Collection of tax -- Penalties -- Commission to interpret, audit, and
150 adjudicate transient room tax.
151 (1) Except as provided in Subsection (2), a governing body of a municipality levying a

152 transient room tax under this part shall levy the tax at the same time and collect the tax in the same
153 manner as provided in Part 2, The Local Sales and Use Tax Act.
154 (2) Notwithstanding Section 59-12-206 , a municipality imposing a transient room tax
155 under this part:
156 (a) may collect the tax and is not required to:
157 (i) transmit revenues generated by the tax to the commission; or
158 (ii) contract with the commission to collect the tax;
159 (b) shall report the revenues it collects to the commission as provided in Section
160 59-12-207 ; and
161 (c) subject to the limitations of Subsections (3) and (4), may adopt an ordinance imposing
162 penalties and interest on a person who:
163 (i) is required to pay the tax under this part; and
164 (ii) does not remit the tax to the collecting agent in a timely manner.
165 (3) A governing body of a municipality adopting an ordinance imposing penalties and
166 interest under Subsection (2)(c) may impose penalties and interest in amounts that are less than or
167 equal to the penalties and interest rates authorized for the commission under Sections 59-1-401
168 and 59-1-402 .
169 (4) A municipality may adopt an ordinance imposing penalties and interest under
170 Subsection (2)(c) only if the municipality does not contract with the commission to collect the tax.
171 (5) If a municipality elects to collect the tax as provided in Subsection (2), the commission
172 shall interpret, audit, and adjudicate the tax imposed under this part.
173 [(6) A municipality imposing a tax under this part shall:]
174 [(a) collect the tax on the first day of a calendar quarter; and]
175 [(b) notify the commission at least 30 days before the day on which the commission is
176 required to collect the tax.]
177 Section 5. Section 59-12-355 is enacted to read:
178 59-12-355. Imposition or repeal of tax -- Tax rate change -- Effective date -- Notice
179 requirements.
180 (1) For purposes of this section:
181 (a) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part 4,
182 Annexation.

183 (b) "Annexing area" means an area that is annexed into a city or town.
184 (2) (a) If, on or after May 1, 2000, a city or town enacts or repeals a tax or changes the rate
185 of a tax under this part, the enactment, repeal, or change shall take effect:
186 (i) on the first day of a calendar quarter; and
187 (ii) after a 75-day period beginning on the date the commission receives notice meeting
188 the requirements of Subsection (2)(b) from the city or town.
189 (b) The notice described in Subsection (2)(a)(ii) shall state:
190 (i) that the city or town will enact or repeal a tax or change the rate of a tax under this part;
191 (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
192 (iii) the effective date of the tax described in Subsection (2)(b)(i); and
193 (iv) if the city or town enacts the tax or changes the rate of the tax described in Subsection
194 (2)(b)(i), the new rate of the tax.
195 (3) (a) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
196 in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
197 (i) on the first day of a calendar quarter; and
198 (ii) after a 75-day period beginning on the date the commission receives notice meeting
199 the requirements of Subsection (3)(b) from the city or town that annexes the annexing area.
200 (b) The notice described in Subsection (3)(a)(ii) shall state:
201 (i) that the annexation described in Subsection (3)(a) will result in a change in the rate of
202 a tax under this part for the annexing area;
203 (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
204 (iii) the effective date of the tax described in Subsection (3)(b)(i); and
205 (iv) the new rate of the tax described in Subsection (3)(b)(i).
206 Section 6. Section 59-12-402 is amended to read:
207 59-12-402. Additional resort communities sales tax -- Rate -- Collection fees --
208 Resolution and voter approval requirements -- Election requirements -- Notice requirements
209 -- Ordinance requirements.
210 (1) Subject to the limitations of Subsections (2) through (6), the governing body of a
211 municipality in which the transient room capacity is greater than or equal to 66% of the permanent
212 census population may, in addition to the sales tax authorized under Section 59-12-401 , impose
213 an additional resort communities sales tax in an amount that is less than or equal to 1/2% on the

214 sales and uses described in Subsection 59-12-103 (1), subject to the exemptions provided for in
215 Section 59-12-104 , and shall exempt from that additional tax wholesale sales and sales of single
216 items for which consideration paid is $2,500 or more.
217 (2) An amount equal to the total of any costs incurred by the state in connection with the
218 implementation of Subsection (1) which exceed, in any year, the revenues received by the state
219 from its collection fees received in connection with the implementation of Subsection (1) shall be
220 paid over to the state General Fund by the cities and towns which impose the tax provided for in
221 Subsection (1). Payment costs shall be allocated proportionally among those cities and towns
222 according to the amount of revenue the respective cities and towns generate in that year through
223 imposition of that tax.
224 (3) To impose an additional resort communities sales tax under this section, the governing
225 body of the municipality shall:
226 (a) pass a resolution approving the tax; and
227 (b) except as provided in Subsection (6), obtain voter approval for the tax as provided in
228 Subsection (4).
229 (4) To obtain voter approval for an additional resort communities sales tax under
230 Subsection (3)(b), a municipality shall:
231 (a) hold the additional resort communities sales tax election during:
232 (i) a regular general election; or
233 (ii) a municipal general election; and
234 (b) publish notice of the election:
235 (i) 15 days or more before the day on which the election is held; and
236 (ii) in a newspaper of general circulation in the municipality.
237 (5) [(a)] An ordinance approving an additional resort communities sales tax under this
238 section shall provide an effective date for the tax as provided in Section 59-12-403 .
239 [(b) A municipality imposing a tax under this section shall:]
240 [(i) collect the tax on the first day of a calendar quarter; and]
241 [(ii) notify the commission at least 30 days before the day on which the commission is
242 required to collect the tax.]
243 (6) (a) Except as provided in Subsection (6)(b), a municipality is not subject to the voter
244 approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality

245 imposed a license fee or tax on businesses based on gross receipts pursuant to Section 10-1-203 .
246 (b) The exception from the voter approval requirements in Subsection (6)(a) does not
247 apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one
248 class of businesses based on gross receipts pursuant to Section 10-1-203 .
249 Section 7. Section 59-12-403 is enacted to read:
250 59-12-403. Imposition or repeal of tax -- Tax rate change -- Effective date -- Notice
251 requirements.
252 (1) For purposes of this section:
253 (a) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part 4,
254 Annexation.
255 (b) "Annexing area" means an area that is annexed into a city or town.
256 (2) (a) If, on or after May 1, 2000, a city or town enacts or repeals a tax or changes the rate
257 of a tax under this part, the enactment, repeal, or change shall take effect:
258 (i) on the first day of a calendar quarter; and
259 (ii) after a 75-day period beginning on the date the commission receives notice meeting
260 the requirements of Subsection (2)(b) from the city or town.
261 (b) The notice described in Subsection (2)(a)(ii) shall state:
262 (i) that the city or town will enact or repeal a tax or change the rate of a tax under this part;
263 (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
264 (iii) the effective date of the tax described in Subsection (2)(b)(i); and
265 (iv) if the city or town enacts the tax or changes the rate of the tax described in Subsection
266 (2)(b)(i), the new rate of the tax.
267 (3) (a) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
268 in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
269 (i) on the first day of a calendar quarter; and
270 (ii) after a 75-day period beginning on the date the commission receives notice meeting
271 the requirements of Subsection (3)(b) from the city or town that annexes the annexing area.
272 (b) The notice described in Subsection (3)(a)(ii) shall state:
273 (i) that the annexation described in Subsection (3)(a) will result in a change in the rate of
274 a tax under this part for the annexing area;
275 (ii) the statutory authority for the tax described in Subsection (3)(b)(i);

276 (iii) the effective date of the tax described in Subsection (3)(b)(i); and
277 (iv) the new rate of the tax described in Subsection (3)(b)(i).
278 Section 8. Section 59-12-504 is enacted to read:
279 59-12-504. Imposition or repeal of tax -- Tax rate change -- Effective date -- Notice
280 requirements.
281 (1) For purposes of this section:
282 (a) "Annexation" means an annexation to:
283 (i) a county under Title 17, Chapter 2, Annexation to County; or
284 (ii) a city or town under Title 10, Chapter 2, Part 4, Annexation.
285 (b) "Annexing area" means an area that is annexed into a county, city, or town.
286 (2) (a) If, on or after May 1, 2000, a county, city, or town enacts or repeals a tax or changes
287 the rate of a tax under this part, the enactment, repeal, or change shall take effect:
288 (i) on the first day of a calendar quarter; and
289 (ii) after a 75-day period beginning on the date the commission receives notice meeting
290 the requirements of Subsection (2)(b) from the county, city, or town.
291 (b) The notice described in Subsection (2)(a)(ii) shall state:
292 (i) that the county, city, or town will enact or repeal a tax or change the rate of a tax under
293 this part;
294 (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
295 (iii) the effective date of the tax described in Subsection (2)(b)(i); and
296 (iv) if the county, city, or town enacts the tax or changes the rate of the tax described in
297 Subsection (2)(b)(i), the new rate of the tax.
298 (3) (a) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
299 in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
300 (i) on the first day of a calendar quarter; and
301 (ii) after a 75-day period beginning on the date the commission receives notice meeting
302 the requirements of Subsection (3)(b) from the county, city, or town that annexes the annexing
303 area.
304 (b) The notice described in Subsection (3)(a)(ii) shall state:
305 (i) that the annexation described in Subsection (3)(a) will result in a change in the rate of
306 a tax under this part for the annexing area;

307 (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
308 (iii) the effective date of the tax described in Subsection (3)(b)(i); and
309 (iv) the new rate of the tax described in Subsection (3)(b)(i).
310 Section 9. Section 59-12-603 is amended to read:
311 59-12-603. County tax -- Bases -- Rates -- Ordinance required -- Collection --
312 Administration -- Distribution.
313 (1) In addition to any other taxes, a county legislative body may, as provided in this part,
314 impose a tourism, recreation, cultural, and convention tax as follows:
315 (a) (i) a county legislative body of any county may impose a tax of not to exceed 3% on
316 all short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases and
317 rentals of motor vehicles made for the purpose of temporarily replacing a person's motor vehicle
318 that is being repaired pursuant to a repair or an insurance agreement;
319 (ii) beginning on or after January 1, 1999, a county legislative body of any county
320 imposing a tax under Subsection (1)(a)(i) may, in addition to imposing the tax under Subsection
321 (1)(a)(i), impose a tax of not to exceed 4% on all short-term leases and rentals of motor vehicles
322 not exceeding 30 days, except for leases and rentals of motor vehicles made for the purpose of
323 temporarily replacing a person's motor vehicle that is being repaired pursuant to a repair or an
324 insurance agreement;
325 (b) a county legislative body of any county may impose a tax of not to exceed 1% of all
326 sales of prepared foods and beverages that are sold by restaurants; and
327 (c) a county legislative body of any county may impose a tax of not to exceed 1/2% of the
328 rent for every occupancy of a suite, room, or rooms on all persons, companies, corporations, or
329 other similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns,
330 or similar public accommodations.
331 (2) The revenue from the imposition of the taxes provided for in Subsections (1)(a)
332 through (c) may be used for the purposes of financing, in whole or in part, tourism promotion, and
333 the development, operation, and maintenance of tourist, recreation, cultural, and convention
334 facilities as defined in Section 59-12-602 .
335 (3) The tax imposed under Subsection (1)(c) shall be in addition to the transient room tax
336 imposed under Part 3 and may be imposed only by a county of the first class.
337 (4) (a) A tax imposed under this part shall be levied at the same time and collected in the

338 same manner as provided in Part 2, The Local Sales and Use Tax Act, except that the collection
339 and distribution of the tax revenue is not subject to the provisions of Subsection 59-12-205 (2).
340 (b) A tax imposed under this part may be pledged as security for bonds, notes, or other
341 evidences of indebtedness incurred by a county under Title 11, Chapter 14, Utah Municipal Bond
342 Act, to finance tourism, recreation, cultural, and convention facilities.
343 (5) (a) In order to impose the tax under Subsection (1), each county legislative body shall
344 annually adopt an ordinance imposing the tax.
345 (b) (i) The ordinance under Subsection (5)(a) shall include provisions substantially the
346 same as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on
347 those items and sales described in Subsection (1).
348 (ii) A county legislative body imposing a tax under this part shall impose the tax as
349 provided in this section on the leases, rentals, and sales described in Subsection (1) relating to the
350 Olympic Winter Games of 2002 made to or by an organization exempt from federal income
351 taxation under Section 501(c)(3), Internal Revenue Code, except for leases, rentals, and sales
352 described in Subsection (1):
353 (A) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
354 of 2002;
355 (B) exclusively used by:
356 (I) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
357 Olympic Winter Games of 2002; or
358 (II) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
359 Games of 2002; and
360 (C) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
361 does not receive reimbursement.
362 (c) The name of the county as the taxing agency shall be substituted for that of the state
363 where necessary, and an additional license is not required if one has been or is issued under
364 Section 59-12-106 .
365 (6) In order to maintain in effect its tax ordinance adopted under this part, each county
366 legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1,
367 Tax Collection, adopt amendments to its tax ordinance to conform with the applicable amendments
368 to Part 1, Tax Collection.

369 (7) The commission shall:
370 (a) administer, collect, and enforce the tax authorized under this part pursuant to:
371 (i) the same procedures used to administer, collect, and enforce the sales and use tax under
372 Part 1, Tax Collection; and
373 (ii) Chapter 1, General Taxation Policies;
374 (b) (i) except as provided in Subsection (7)(c), for a tax under this part other than the tax
375 under Subsection (1)(a)(ii), distribute the revenues to the county imposing the tax; and
376 (ii) except as provided in Subsection (7)(c), for a tax under Subsection (1)(a)(ii), distribute
377 the revenues according to the distribution formula provided in Subsection (8); and
378 (c) deduct from the distributions under Subsection (7)(b) an administrative charge for
379 collecting the tax as provided in Section 59-12-206 .
380 (8) The commission shall distribute the revenues generated by the tax under Subsection
381 (1)(a)(ii) to each county collecting a tax under Subsection (1)(a)(ii) according to the following
382 formula:
383 (a) the commission shall distribute 70% of the revenues based on the percentages
384 generated by dividing the revenues collected by each county under Subsection (1)(a)(ii) by the total
385 revenues collected by all counties under Subsection (1)(a)(ii); and
386 (b) the commission shall distribute 30% of the revenues based on the percentages
387 generated by dividing the population of each county collecting a tax under Subsection (1)(a)(ii)
388 by the total population of all counties collecting a tax under Subsection (1)(a)(ii).
389 (9) (a) For purposes of this Subsection (9):
390 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Annexation
391 to County.
392 (ii) "Annexing area" means an area that is annexed into a county.
393 (b) (i) If, on or after May 1, 2000, a county enacts or repeals a tax or changes the rate of
394 a tax under this part, the enactment, repeal, or change shall take effect:
395 (A) on the first day of a calendar quarter; and
396 (B) after a 75-day period beginning on the date the commission receives notice meeting
397 the requirements of Subsection (9)(b)(ii) from the county.
398 (ii) The notice described in Subsection (9)(b)(i)(B) shall state:
399 (A) that the county will enact or repeal a tax or change the rate of a tax under this part;

400 (B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
401 (C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
402 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
403 (9)(b)(ii)(A), the new rate of the tax.
404 (c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
405 in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
406 (A) on the first day of a calendar quarter; and
407 (B) after a 75-day period beginning on the date the commission receives notice meeting
408 the requirements of Subsection (9)(c)(ii) from the county that annexes the annexing area.
409 (ii) The notice described in Subsection (9)(c)(i)(B) shall state:
410 (A) that the annexation described in Subsection (9)(c)(i) will result in a change in the rate
411 of a tax under this part for the annexing area;
412 (B) the statutory authority for the tax described in Subsection (9)(c)(ii)(A);
413 (C) the effective date of the tax described in Subsection (9)(c)(ii)(A); and
414 (D) the new rate of the tax described in Subsection (9)(c)(ii)(A).
415 Section 10. Section 59-12-703 is amended to read:
416 59-12-703. Opinion question election -- Imposition of tax -- Uses of tax monies.
417 (1) (a) Any county legislative body may, by majority vote of all members, submit an
418 opinion question to the residents of that county so that each resident has an opportunity to express
419 the resident's opinion on the imposition of a local sales and use tax of 1/10 of 1% on the sales and
420 uses described in Subsection 59-12-103 (1), subject to the exemptions provided for in Section
421 59-12-104 , to fund recreational and zoological facilities and botanical, cultural, and zoological
422 organizations in that county.
423 (b) The election shall follow the procedures outlined in Title 11, Chapter 14, Utah
424 Municipal Bond Act.
425 (2) [(a)] If the county legislative body determines that a majority of the qualified electors
426 voting on the opinion question has assented to the imposition of a local sales and use tax as
427 prescribed in Subsection (1)(a), the county legislative body may, by a majority vote of all
428 members, impose such a tax.
429 [(b) If the county legislative body imposes a tax under Subsection (2)(a), the tax shall be
430 imposed at the beginning of the quarter following the county legislative body's decision to impose

431 such a tax.]
432 (3) The monies generated from any tax imposed under Subsection (2) shall be used for
433 financing recreational and zoological facilities and ongoing operating expenses of botanical,
434 cultural, and zoological organizations within the county.
435 (4) Taxes imposed under this part shall be:
436 (a) levied at the same time and collected in the same manner as provided in Title 59,
437 Chapter 12, Part 2, The Local Sales and Use Tax Act, except that the collection and distribution
438 of the tax revenue is not subject to Subsection 59-12-205 (2); and
439 (b) levied for a period of ten years and may be reauthorized at the end of the ten-year
440 period in accordance with this section.
441 (5) (a) For purposes of this Subsection (5):
442 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Annexation
443 to County.
444 (ii) "Annexing area" means an area that is annexed into a county.
445 (b) (i) If, on or after May 1, 2000, a county enacts or repeals a tax or changes the rate of
446 a tax under this part, the enactment, repeal, or change shall take effect:
447 (A) on the first day of a calendar quarter; and
448 (B) after a 75-day period beginning on the date the commission receives notice meeting
449 the requirements of Subsection (5)(b)(ii) from the county.
450 (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
451 (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
452 (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
453 (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
454 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
455 (5)(b)(ii)(A), the new rate of the tax.
456 (c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
457 in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
458 (A) on the first day of a calendar quarter; and
459 (B) after a 75-day period beginning on the date the commission receives notice meeting
460 the requirements of Subsection (5)(c)(ii) from the county that annexes the annexing area.
461 (ii) The notice described in Subsection (5)(c)(i)(B) shall state:

462 (A) that the annexation described in Subsection (5)(c)(i) will result in a change in the rate
463 of a tax under this part for the annexing area;
464 (B) the statutory authority for the tax described in Subsection (5)(c)(ii)(A);
465 (C) the effective date of the tax described in Subsection (5)(c)(ii)(A); and
466 (D) the new rate of the tax described in Subsection (5)(c)(ii)(A).
467 Section 11. Section 59-12-805 is enacted to read:
468 59-12-805. Imposition or repeal of tax -- Tax rate change -- Effective date -- Notice
469 requirements.
470 (1) For purposes of this section:
471 (a) "Annexation" means an annexation to:
472 (i) a county under Title 17, Chapter 2, Annexation to County; or
473 (ii) a city or town under Title 10, Chapter 2, Part 4, Annexation.
474 (b) "Annexing area" means an area that is annexed into a county, city, or town.
475 (2) (a) If, on or after May 1, 2000, a county, city, or town enacts or repeals a tax or changes
476 the rate of a tax under this part, the enactment, repeal, or change shall take effect:
477 (i) on the first day of a calendar quarter; and
478 (ii) after a 75-day period beginning on the date the commission receives notice meeting
479 the requirements of Subsection (2)(b) from the county, city, or town.
480 (b) The notice described in Subsection (2)(a)(ii) shall state:
481 (i) that the county, city, or town will enact or repeal a tax or change the rate of a tax under
482 this part;
483 (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
484 (iii) the effective date of the tax described in Subsection (2)(b)(i); and
485 (iv) if the county, city, or town enacts the tax or changes the rate of the tax described in
486 Subsection (2)(b)(i), the new rate of the tax.
487 (3) (a) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
488 in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
489 (i) on the first day of a calendar quarter; and
490 (ii) after a 75-day period beginning on the date the commission receives notice meeting
491 the requirements of Subsection (3)(b) from the county, city, or town that annexes the annexing
492 area.

493 (b) The notice described in Subsection (3)(a)(ii) shall state:
494 (i) that the annexation described in Subsection (3)(a) will result in a change in the rate of
495 a tax under this part for the annexing area;
496 (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
497 (iii) the effective date of the tax described in Subsection (3)(b)(i); and
498 (iv) the new rate of the tax described in Subsection (3)(b)(i).
499 Section 12. Section 59-12-1001 is amended to read:
500 59-12-1001. Authority to impose highways tax -- Resolution and voter approval
501 requirements -- Election requirements -- Notice requirements -- Ordinance requirements.
502 (1) A municipality in which sales and uses described in Subsection 59-12-103 (1) are not
503 subject to a sales and use tax under Section 59-12-501 may as provided in this part impose a sales
504 and use tax of 1/4% on the sales and uses described in Subsection 59-12-103 (1), subject to the
505 exemptions provided for in Section 59-12-104 .
506 (2) A tax imposed under this part by a municipality shall be used for the construction and
507 maintenance of highways under the jurisdiction of the municipality imposing the tax.
508 (3) To impose a highways tax under this part, the governing body of the municipality shall:
509 (a) pass an ordinance approving the tax; and
510 (b) except as provided in Subsection (7), obtain voter approval for the tax as provided in
511 Subsection (4).
512 (4) To obtain voter approval for a highways tax under Subsection (3)(b), a municipality
513 shall:
514 (a) hold the highways tax election during:
515 (i) a regular general election; or
516 (ii) a municipal general election; and
517 (b) publish notice of the election:
518 (i) 15 days or more before the day on which the election is held; and
519 (ii) in a newspaper of general circulation in the municipality.
520 (5) An ordinance approving a highways tax under this part shall provide an effective date
521 for the tax as provided in Subsection (6).
522 [(6) A municipality imposing a tax under this part shall:]
523 [(a) begin collecting the tax on the first day of a calendar quarter; and]

524 [(b) notify the commission at least 30 days before the day on which the commission is
525 required to collect the tax.]
526 (6) (a) For purposes of this Subsection (6):
527 (i) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part 4,
528 Annexation.
529 (ii) "Annexing area" means an area that is annexed into a city or town.
530 (b) (i) If, on or after May 1, 2000, a city or town enacts or repeals a tax or changes the rate
531 of a tax under this part, the enactment, repeal, or change shall take effect:
532 (A) on the first day of a calendar quarter; and
533 (B) after a 75-day period beginning on the date the commission receives notice meeting
534 the requirements of Subsection (6)(b)(ii) from the city or town.
535 (ii) The notice described in Subsection (6)(b)(i)(B) shall state:
536 (A) that the city or town will enact or repeal a tax or change the rate of a tax under this
537 part;
538 (B) the statutory authority for the tax described in Subsection (6)(b)(ii)(A);
539 (C) the effective date of the tax described in Subsection (6)(b)(ii)(A); and
540 (D) if the city or town enacts the tax or changes the rate of the tax described in Subsection
541 (6)(b)(ii)(A), the new rate of the tax.
542 (c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
543 in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
544 (A) on the first day of a calendar quarter; and
545 (B) after a 75-day period beginning on the date the commission receives notice meeting
546 the requirements of Subsection (6)(c)(ii) from the city or town that annexes the annexing area.
547 (ii) The notice described in Subsection (6)(c)(i)(B) shall state:
548 (A) that the annexation described in Subsection (6)(c)(i) will result in a change in the rate
549 of a tax under this part for the annexing area;
550 (B) the statutory authority for the tax described in Subsection (6)(c)(ii)(A);
551 (C) the effective date of the tax described in Subsection (6)(c)(ii)(A); and
552 (D) the new rate of the tax described in Subsection (6)(c)(ii)(A).
553 (7) (a) Except as provided in Subsection (7)(b), a municipality is not subject to the voter
554 approval requirements of Subsection (3)(b) if, on or before January 1, 1996, the municipality

555 imposed a licensee fee or tax on businesses based on gross receipts pursuant to Section 10-1-203 .
556 (b) The exception from the voter approval requirements in Subsection (7)(a) does not
557 apply to a municipality that, on or before January 1, 1996, imposed a license fee or tax on only one
558 class of businesses based on gross receipts pursuant to Section 10-1-203 .
559 Section 13. Section 59-12-1102 is amended to read:
560 59-12-1102. Base -- Rate -- Imposition of tax -- Distribution of revenue --
561 Administration.
562 (1) (a) Subject to the provisions of Subsections (2) through [(4)] (5), and in addition to any
563 other tax authorized by this chapter, a county may impose by ordinance a county option sales and
564 use tax of 1/4% upon the sales and uses described in Subsection 59-12-103 (1), subject to the
565 exemptions provided for in Section 59-12-104 .
566 (b) The county option sales and use tax under this section shall be imposed:
567 (i) upon sales and uses made in the county, including sales and uses made within
568 municipalities in the county; and
569 (ii) except as provided in Subsection (1)(c), beginning on the first day of January:
570 (A) of the next calendar year after adoption of the ordinance imposing the tax if the
571 ordinance is adopted on or before May 25; or
572 (B) of the second calendar year after adoption of the ordinance imposing the tax if the
573 ordinance is adopted after May 25.
574 (c) Notwithstanding Subsection (1)(b)(ii), the county option sales and use tax under this
575 section shall be imposed:
576 (i) beginning January 1, 1998, if an ordinance adopting the tax imposed on or before
577 September 4, 1997; or
578 (ii) beginning January 1, 1999, if an ordinance adopting the tax is imposed during 1997
579 but after September 4, 1997.
580 (2) (a) Before imposing a county option sales and use tax under Subsection (1), a county
581 shall[: (i)] hold two public hearings on separate days in geographically diverse locations in the
582 county[; and].
583 [(ii) notify the commission at least 30 days prior to the adoption of the ordinance.]
584 (b) (i) At least one of the hearings required by Subsection (2)(a)(i) shall have a starting
585 time of no earlier than [6:00] 6 p.m.

586 (ii) The earlier of the hearings required by Subsection (2)(a)(i) shall be no less than seven
587 days after the day the first advertisement required by Subsection (2)(c) is published.
588 (c) (i) Before holding the public hearings required by Subsection (2)(a)(i), the county shall
589 advertise in a newspaper of general circulation in the county:
590 (A) its intent to adopt a county option sales and use tax;
591 (B) the date, time, and location of each public hearing; and
592 (C) a statement that the purpose of each public hearing is to obtain public comments
593 regarding the proposed tax.
594 (ii) The advertisement shall be published once each week for the two weeks preceding the
595 earlier of the two public hearings.
596 (iii) The advertisement shall be no less than 1/8 page in size, and the type used shall be no
597 smaller than 18 point and surrounded by a 1/4-inch border.
598 (iv) The advertisement may not be placed in that portion of the newspaper where legal
599 notices and classified advertisements appear.
600 (v) Whenever possible:
601 (A) the advertisement shall appear in a newspaper that is published at least five days a
602 week, unless the only newspaper in the county is published less than five days a week; and
603 (B) the newspaper selected shall be one of general interest and readership in the
604 community, and not one of limited subject matter.
605 (d) The adoption of an ordinance imposing a county option sales and use tax is subject to
606 a local referendum election as provided in Title 20A, Chapter 7, Part 6, Local Referenda -
607 Procedures, except that:
608 (i) notwithstanding Subsection 20A-7-609 (2)(a), the county clerk shall hold a referendum
609 election that qualifies for the ballot on the earlier of the next regular general election date or the
610 next municipal general election date more than 155 days after adoption of an ordinance under this
611 section;
612 (ii) for 1997 only, the 120-day period in Subsection 20A-7-606 (1) shall be 30 days; and
613 (iii) the deadlines in Subsection 20A-7-606 (2) and (3) do not apply, and the clerk shall
614 take the actions required by those subsections before the referendum election.
615 (3) (a) If the aggregate population of the counties imposing a county option sales and use
616 tax under Subsection (1) is less than 75% of the state population, the tax levied under Subsection

617 (1) shall be distributed to the county in which the tax was collected.
618 (b) If the aggregate population of the counties imposing a county option sales and use tax
619 under Subsection (1) is greater than or equal to 75% of the state population:
620 (i) 50% of the tax collected under Subsection (1) in each county shall be distributed to the
621 county in which the tax was collected; and
622 (ii) except as provided in Subsection (3)(c), 50% of the tax collected under Subsection (1)
623 in each county shall be distributed proportionately among all counties imposing the tax, based on
624 the total population of each county.
625 (c) If the amount to be distributed annually to a county under Subsection (3)(b)(ii), when
626 combined with the amount distributed to the county under Subsection (3)(b)(i), does not equal at
627 least $75,000, then:
628 (i) the amount to be distributed annually to that county under Subsection (3)(b)(ii) shall
629 be increased so that, when combined with the amount distributed to the county under Subsection
630 (3)(b)(i), the amount distributed annually to the county is $75,000; and
631 (ii) the amount to be distributed annually to all other counties under Subsection (3)(b)(ii)
632 shall be reduced proportionately to offset the additional amount distributed under Subsection
633 (3)(c)(i).
634 (d) The commission shall establish rules to implement the distribution of the tax under
635 Subsections (3)(a), (b), and (c).
636 (4) (a) Except as provided in Subsections (4)(b) and (c), a county option sales and use tax
637 under Subsection (1) shall be imposed and administered in the same manner as a tax imposed
638 under Title 59, Chapter 12, Part 2, The Local Sales and Use Tax Act.
639 (b) A county option sales and use tax imposed under this part is not subject to:
640 (i) the distribution provisions of Subsections 59-12-205 (2) and (3); and
641 (ii) the earmarking provisions of Subsection 59-12-205 (4).
642 (c) The fee charged by the commission under Section 59-12-206 shall be based on the
643 distribution amounts resulting after all the applicable distribution calculations under Subsection
644 (3) have been made.
645 (5) (a) For purposes of this Subsection (5):
646 (i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Annexation
647 to County.

648 (ii) "Annexing area" means an area that is annexed into a county.
649 (b) (i) If, on or after May 1, 2000, a county enacts or repeals a tax or changes the rate of
650 a tax under this part, the enactment, repeal, or change shall take effect:
651 (A) on the first day of a calendar quarter; and
652 (B) after a 75-day period beginning on the date the commission receives notice meeting
653 the requirements of Subsection (5)(b)(ii) from the county.
654 (ii) The notice described in Subsection (5)(b)(i)(B) shall state:
655 (A) that the county will enact or repeal a tax or change the rate of a tax under this part;
656 (B) the statutory authority for the tax described in Subsection (5)(b)(ii)(A);
657 (C) the effective date of the tax described in Subsection (5)(b)(ii)(A); and
658 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
659 (5)(b)(ii)(A), the new rate of the tax.
660 (c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
661 in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
662 (A) on the first day of a calendar quarter; and
663 (B) after a 75-day period beginning on the date the commission receives notice meeting
664 the requirements of Subsection (5)(c)(ii) from the county that annexes the annexing area.
665 (ii) The notice described in Subsection (5)(c)(i)(B) shall state:
666 (A) that the annexation described in Subsection (5)(c)(i) will result in a change in the rate
667 of a tax under this part for the annexing area;
668 (B) the statutory authority for the tax described in Subsection (5)(c)(ii)(A);
669 (C) the effective date of the tax described in Subsection (5)(c)(ii)(A); and
670 (D) the new rate of the tax described in Subsection (5)(c)(ii)(A).
671 Section 14. Section 59-12-1302 is amended to read:
672 59-12-1302. Authority to impose -- Base -- Rate.
673 (1) Beginning on or after January 1, 1998, the governing body of a town may impose a tax
674 as provided in this part in an amount that does not exceed 1%.
675 (2) A town may impose a tax as provided in this part if the town imposed a license fee or
676 tax on businesses based on gross receipts under Section 10-1-203 on or before January 1, 1996.
677 (3) A town imposing a tax under this section shall:
678 [(a) adopt an ordinance:]

679 [(i) imposing] (a) impose the tax on the sales and uses described in Section 59-12-103 ;
680 [(ii) exempting] (b) exempt from the tax the sales and uses described in Section
681 59-12-104 ; and
682 [(iii) providing] (c) provide an effective date for the tax[;] as provided in Subsection (4).
683 [(b) impose the tax on the first day of a calendar quarter; and]
684 [(c) notify the commission at least 30 days before the day on which the commission is
685 required to collect the tax.]
686 (4) (a) For purposes of this Subsection (4):
687 (i) "Annexation" means an annexation to a town under Title 10, Chapter 2, Part 4,
688 Annexation.
689 (ii) "Annexing area" means an area that is annexed into a town.
690 (b) (i) If, on or after May 1, 2000, a town enacts or repeals a tax or changes the rate of a
691 tax under this part, the enactment, repeal, or change shall take effect:
692 (A) on the first day of a calendar quarter; and
693 (B) after a 75-day period beginning on the date the commission receives notice meeting
694 the requirements of Subsection (4)(b)(ii) from the town.
695 (ii) The notice described in Subsection (4)(b)(i)(B) shall state:
696 (A) that the town will enact or repeal a tax or change the rate of a tax under this part;
697 (B) the statutory authority for the tax described in Subsection (4)(b)(ii)(A);
698 (C) the effective date of the tax described in Subsection (4)(b)(ii)(A); and
699 (D) if the town enacts the tax or changes the rate of the tax described in Subsection
700 (4)(b)(ii)(A), the new rate of the tax.
701 (c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
702 in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
703 (A) on the first day of a calendar quarter; and
704 (B) after a 75-day period beginning on the date the commission receives notice meeting
705 the requirements of Subsection (4)(c)(ii) from the town that annexes the annexing area.
706 (ii) The notice described in Subsection (4)(c)(i)(B) shall state:
707 (A) that the annexation described in Subsection (4)(c)(i) will result in a change in the rate
708 of a tax under this part for the annexing area;
709 (B) the statutory authority for the tax described in Subsection (4)(c)(ii)(A);

710 (C) the effective date of the tax described in Subsection (4)(c)(ii)(A); and
711 (D) the new rate of the tax described in Subsection (4)(c)(ii)(A).
712 [(4)] (5) The commission shall:
713 (a) except as provided in Subsection [(4)] (5)(c), distribute the revenues generated by the
714 tax under this section to the town imposing the tax;
715 (b) administer, collect, and enforce the tax authorized under this section pursuant to:
716 (i) the same procedures used to administer, collect, and enforce the sales and use tax under
717 Title 59, Chapter 12, Part 1, Tax Collection; and
718 (ii) Title 59, Chapter 1, General Taxation Policies; and
719 (c) deduct from the distribution under Subsection [(4)] (5)(a) an administrative charge for
720 collecting the tax as provided in Section 59-12-206 .
721 Section 15. Repealer.
722 This act repeals:
723 Section 10-1-309, Effective date of levy.
724 Section 59-12-208, When tax levied becomes effective.




Legislative Review Note
as of 2-17-00 3:04 PM

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

Office of Legislative Research and General Counsel