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H.B. 107 Enrolled
David Ure
Thomas V. Hatch
Afton B. Bradshaw
This act modifies provisions of the Utah Code relating to tourism marketing. The act defines
certain terms. The act increases the money in the Tourism Marketing Performance Fund.
The act modifies the Tourism Marketing Performance Fund Committee to include members
of the tourism industry. The act allows the Division of Travel Development to consult with
counties and travel regions about effective tourism promotion. The act clarifies the purposes
of the transient room tax and the tourism, recreation, cultural, and convention facilities tax.
The act requires counties with no existing tourism tax advisory boards to create and utilize
a tourism tax advisory board. The act makes technical changes.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
9-2-1702, as enacted by Chapter 301, Laws of Utah 1997
9-2-1703, as enacted by Chapter 301, Laws of Utah 1997
9-2-1704, as enacted by Chapter 301, Laws of Utah 1997
9-2-1705, as enacted by Chapter 301, Laws of Utah 1997
9-3-204, as last amended by Chapter 109, Laws of Utah 1994
17-31-2, as last amended by Chapter 146, Laws of Utah 1998
59-12-603, as last amended by Chapter 319, Laws of Utah 2000
ENACTS:
9-2-1703.5, Utah Code Annotated 1953
9-2-1706, Utah Code Annotated 1953
17-31-8, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 9-2-1702 is amended to read:
9-2-1702. Definitions.
As used in this part:
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created in Section 9-2-1705 .
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(3) "Division" means the Division of Travel Development created in Section 9-3-204 .
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Fund created in Section 9-2-1703 .
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(a) retail/eating and drinking;
(b) services/hotels and lodging;
(c) services/automotive rental;
(d) services/amusement and recreation; and
(e) transportation.
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(6) "Tourism marketing" means an activity to develop, encourage, solicit, or promote
tourism within this state that attracts transient guests to the state, including:
(a) planning;
(b) product development; and
(c) advertising directed to out of state consumers that promotes leisure travel products or
attractions specific to Utah.
(7) "Tourism oriented sales and use taxes" means a state sales and use tax imposed under
Section 59-12-103 for amounts paid or charged for taxable items or services:
(a) described under Subsection 59-12-103 (1); and
(b) provided by a person described by the following SIC Codes of the 1987 Standard
Industrial Classification Manual of the federal Executive Office of the President, Office of
Management and Budget:
(i) SIC Codes 4011 through 4789;
(ii) SIC Codes 5812 and 5813;
(iii) SIC Codes 7011 through 7041;
(iv) SIC Codes 7513 through 7519; and
(v) SIC Codes 7812 through 7999.
(8) "Utah Tourism Industry Coalition" means the private nonprofit corporation created under
Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, composed of tourism-related
businesses, organizations, and associations authorized to nominate committee members under
Section 9-2-1705 .
Section 2. Section 9-2-1703 is amended to read:
9-2-1703. Creation and administration of fund.
(1) (a) There is created within the General Fund a restricted account known as the "Tourism
Marketing Performance Fund."
(b) The fund shall be administered by the [
(2) The fund shall be funded by appropriations made to the fund by the Legislature in
accordance with Section 9-2-1703.5 .
(3) Any undistributed monies in the fund at the end of the fiscal year are nonlapsing except
that any balance greater than $200,000 at the end of the fiscal year shall lapse to the General Fund.
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Section 3. Section 9-2-1703.5 is enacted to read:
9-2-1703.5. Appropriations to the fund.
(1) The Legislature shall appropriate $200,000 to the fund each fiscal year for which the
State Tax Commission finds that the industry growth for the prior fiscal year equals or exceeds 4%.
(2) To determine the prior fiscal year industry growth the State Tax Commission shall:
(a) calculate the tourism-oriented sales and use taxes for the fiscal year two years preceding
the fiscal year of appropriation;
(b) calculate the tourism-oriented sales and use taxes for the fiscal year three years preceding
the fiscal year of the appropriation; and
(c) determine whether the tourism-oriented sales and use taxes calculated in Subsection
(2)(a) increased from the tourism-oriented sales and use taxes calculated under Subsection (2)(b).
(3) The State Tax Commission shall report its determination under Subsection (2) to the
State Budget Office by no later than September 30 of each year.
Section 4. Section 9-2-1704 is amended to read:
9-2-1704. Distribution of fund monies -- Determination of recipients.
The appropriation to the [
9-2-1703.5 shall be distributed [
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accordance with Section 9-2-1706 .
[
Section 5. Section 9-2-1705 is amended to read:
9-2-1705. Creation of Tourism Marketing Performance Fund Committee -- Members
-- Appointment -- Qualifications --Terms -- Quorum -- Per diem and expenses -- Staff.
(1) There is created a Tourism Marketing Performance Fund Committee which shall consist
of [
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(2) (a) The governor shall appoint 11 voting members to the committee including:
(i) one member from the automobile rental industry;
(ii) one member representing public lands;
(iii) one member representing Utah Travel Regions;
(iv) the director of the Division of Travel Development;
(v) one member representing county tourism selected from a list of three qualified
individuals nominated by the Utah Association of Counties;
(vi) one member representing the restaurant industry selected from a list of three qualified
individuals nominated by the Utah Tourism Industry Coalition;
(vii) one member representing the hotel and lodging industry selected from a list of three
qualified individuals nominated by the Utah Tourism Industry Coalition;
(viii) one member representing the ski industry selected from a list of three qualified
individuals nominated by the Utah Tourism Industry Coalition;
(ix) one member representing the amusement and recreation industry selected from a list of
three qualified individuals nominated by the Utah Tourism Industry Coalition;
(x) one member representing the transportation industry selected from a list of three qualified
individuals nominated by the Utah Tourism Industry Coalition; and
(xi) one at large member representing the Utah tourism industry selected from a list of three
qualified individuals nominated by the Utah Tourism Industry Coalition.
(b) The president of the Senate and the speaker of the House of Representatives shall
nominate and the governor shall appoint one nonvoting member of the committee from the
Economic Development and Human Resources Appropriations Subcommittee.
(c) Members of the committee shall be nominated to provide geographic balance in
representation on the committee.
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(b) All subsequent appointments shall be for terms of two years.
(c) A member may not serve more than two full consecutive terms unless the governor
determines that an additional term is in the best interest of the state.
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a qualified replacement to fill the unexpired term.
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receive no per diem and expenses incurred in the performance of the member's official duties.
(8) Staff services to the committee shall be provided by the division.
(9) The terms of the members who are serving on the committee on April 30, 2001, shall
terminate on that date. The governor shall appoint members to the committee in accordance with
this section as in effect on May 1, 2001.
Section 6. Section 9-2-1706 is enacted to read:
9-2-1706. Duties of Tourism Marketing Performance Fund Committee.
(1) The committee and the division shall jointly develop a tourism marketing plan to
determine the best use of the funds in the Tourism Marketing Performance Fund.
(2) Any plan provided for under Subsection (1) shall address:
(a) enhancing the state's image;
(b) promoting Utah as a year-round destination;
(c) encouraging expenditures by visitors to the state; and
(d) the diversity of the state's travel regions.
(3) The committee shall comply with Title 52, Chapter 4, Open and Public Meetings, in
determining and giving notice of the time and place of any meetings.
(4) The committee may not perform any function not authorized by this section.
Section 7. Section 9-3-204 is amended to read:
9-3-204. Division of Travel Development -- Powers and duties -- Travel development
plan.
(1) There is created within the department the Division of Travel Development under the
administration and general supervision of the director.
(2) The division shall be under the policy direction of the director.
(3) The division shall:
(a) be the travel development authority of the state;
(b) develop a travel promotion program for the state;
(c) develop a plan to increase the economic contribution by tourists visiting the state;
(d) plan and conduct a program of information, advertising, and publicity relating to the
recreational, scenic, historic, highway, and tourist advantages and attractions of the state at large; and
(e) encourage and assist in the coordination of the activities of persons, firms, associations,
corporations, travel regions, counties, and governmental agencies engaged in publicizing,
developing, and promoting the scenic attractions and tourist advantages of the state.
(4) Any plan provided for under Subsection (3) shall address, but not be limited to,
enhancing the state's image, promoting Utah as a year-round destination, encouraging expenditures
by visitors to the state, and expanding the markets where the state is promoted.
Section 8. Section 17-31-2 is amended to read:
17-31-2. Purposes of transient room tax -- Purchase or lease of facilities -- Mitigating
impacts of recreation, tourism, or conventions -- Issuance of bonds.
(1) Any county legislative body may impose the transient room tax provided for in Section
59-12-301 for the purposes of:
(a) establishing and promoting recreation, tourism, film production, and conventions;
(b) acquiring, leasing, constructing, furnishing, or operating convention meeting rooms,
exhibit halls, visitor information centers, museums, and related facilities;
(c) acquiring or leasing land required for or related to the purposes listed in Subsection
(1)(b); and
(d) as required to mitigate the impacts of recreation, tourism, or conventions in counties of
the fourth, fifth, and sixth class, paying for:
(i) solid waste disposal operations;
(ii) emergency medical services;
(iii) search and rescue activities; and
(iv) law enforcement activities.
(2) [
provided in Section 59-12-301 [
(a) (i) [
constructing, furnishing, maintaining, or operating:
(A) convention meeting rooms[
(B) exhibit halls[
(C) visitor information centers[
(D) museums[
(E) related facilities[
(ii) acquiring or leasing land required for or related to [
in Subsection (2)(a)(i);
(b) as required to mitigate the impacts of recreation, tourism, or conventions in counties of
the fourth, fifth, and sixth class, to pay for:
(i) solid waste disposal operations;
(ii) emergency medical services;
(iii) search and rescue activities; and
(iv) law enforcement activities[
(c) making the annual payment of principal, interest, premiums, and necessary reserves for
any or the aggregate of bonds authorized under Subsection (3).
(3) (a) The county legislative body may[
permitted by law, to pay all or part of any costs incurred for the purposes set forth in [
Subsection (2)(a) or (b) that are permitted to be paid from bond proceeds[
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(b) When the proceeds of the transient room tax provided in Section 59-12-301 are not
needed for payment of principal, interest, premiums, and reserves on bonds issued as provided in
Subsection [
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Section 9. Section 17-31-8 is enacted to read:
17-31-8. Tourism tax advisory boards.
(1) (a) Except as provided in Subsection (1)(b), any county that collects the following taxes
shall operate a tourism tax advisory board:
(i) the transient room tax allowed under Section 59-12-301 ; or
(ii) the tourism, recreation, cultural, and convention facilities tax allowed under Section
59-12-603 .
(b) Notwithstanding Subsection (1)(a), a county is exempt from Subsection (1)(a) if the
county has an existing board, council, committee, convention visitor's bureau, or body that
substantially conforms with Subsections (2), (3), and (4).
(2) A tourism tax advisory board created under Subsection (1) shall consist of at least five
members.
(3) A tourism tax advisory board shall be composed of any of the following members that:
(a) are residents of the county; and
(b) represent the local:
(i) hotel and lodging industry;
(ii) restaurant industry;
(iii) recreational facilities;
(iv) convention facilities;
(v) museums;
(vi) cultural attractions; or
(vii) other tourism-related industries.
(4) A tourism tax advisory board shall advise the county legislative body on the best use of
revenues collected from:
(a) the transient room tax allowed under Section 59-12-301 ; and
(b) the tourism, recreation, cultural, and convention facilities tax allowed under Section
59-12-603 .
(5) A member of any county tourism tax advisory board:
(a) may not receive compensation or benefits for the member's services; and
(b) may receive per diem and expenses incurred in the performance of the member's official
duties.
Section 10. Section 59-12-603 is amended to read:
59-12-603. County tax -- Bases -- Rates -- Ordinance required -- Collection --
Administration -- Distribution -- Imposition of tax -- Tax rate change -- Effective date -- Notice
requirements.
(1) In addition to any other taxes, a county legislative body may, as provided in this part,
impose a tourism, recreation, cultural, and convention tax as follows:
(a) (i) a county legislative body of any county may impose a tax of not to exceed 3% on all
short-term leases and rentals of motor vehicles not exceeding 30 days, except for leases and rentals
of motor vehicles made for the purpose of temporarily replacing a person's motor vehicle that is
being repaired pursuant to a repair or an insurance agreement;
(ii) beginning on or after January 1, 1999, a county legislative body of any county imposing
a tax under Subsection (1)(a)(i) may, in addition to imposing the tax under Subsection (1)(a)(i),
impose a tax of not to exceed 4% on all short-term leases and rentals of motor vehicles not
exceeding 30 days, except for leases and rentals of motor vehicles made for the purpose of
temporarily replacing a person's motor vehicle that is being repaired pursuant to a repair or an
insurance agreement;
(b) a county legislative body of any county may impose a tax of not to exceed 1% of all sales
of prepared foods and beverages that are sold by restaurants; and
(c) a county legislative body of any county may impose a tax of not to exceed 1/2% of the
rent for every occupancy of a suite, room, or rooms on all persons, companies, corporations, or other
similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns, or
similar public accommodations.
(2) The revenue from the imposition of the taxes provided for in Subsections (1)(a) through
(c) may be used for the purposes of financing[
development, operation, and maintenance of tourist, recreation, cultural, and convention facilities
as defined in Section 59-12-602 .
(3) The tax imposed under Subsection (1)(c) shall be in addition to the transient room tax
imposed under Part 3, Transient Room Tax, and may be imposed only by a county of the first class.
(4) (a) A tax imposed under this part shall be levied at the same time and collected in the
same manner as provided in Part 2, Local Sales and Use Tax Act, except that the collection and
distribution of the tax revenue is not subject to the provisions of Subsection 59-12-205 (2).
(b) A tax imposed under this part may be pledged as security for bonds, notes, or other
evidences of indebtedness incurred by a county under Title 11, Chapter 14, Utah Municipal Bond
Act, to finance tourism, recreation, cultural, and convention facilities.
(5) (a) In order to impose the tax under Subsection (1), each county legislative body shall
annually adopt an ordinance imposing the tax.
(b) (i) The ordinance under Subsection (5)(a) shall include provisions substantially the same
as those contained in Part 1, Tax Collection, except that the tax shall be imposed only on those items
and sales described in Subsection (1).
(ii) A county legislative body imposing a tax under this part shall impose the tax as provided
in this section on the leases, rentals, and sales described in Subsection (1) relating to the Olympic
Winter Games of 2002 made to or by an organization exempt from federal income taxation under
Section 501(c)(3), Internal Revenue Code, except for leases, rentals, and sales described in
Subsection (1):
(A) paid for in full by the Salt Lake Organizing Committee for the Olympic Winter Games
of 2002;
(B) exclusively used by:
(I) an officer, a trustee, or an employee of the Salt Lake Organizing Committee for the
Olympic Winter Games of 2002; or
(II) a volunteer supervised by the Salt Lake Organizing Committee for the Olympic Winter
Games of 2002; and
(C) for which the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
does not receive reimbursement.
(c) The name of the county as the taxing agency shall be substituted for that of the state
where necessary, and an additional license is not required if one has been or is issued under Section
59-12-106 .
(6) In order to maintain in effect its tax ordinance adopted under this part, each county
legislative body shall, within 30 days of any amendment of any applicable provisions of Part 1, Tax
Collection, adopt amendments to its tax ordinance to conform with the applicable amendments to
Part 1, Tax Collection.
(7) The commission shall:
(a) administer, collect, and enforce the tax authorized under this part pursuant to:
(i) the same procedures used to administer, collect, and enforce the sales and use tax under
Part 1, Tax Collection; and
(ii) Chapter 1, General Taxation Policies;
(b) (i) except as provided in Subsection (7)(c), for a tax under this part other than the tax
under Subsection (1)(a)(ii), distribute the revenues to the county imposing the tax; and
(ii) except as provided in Subsection (7)(c), for a tax under Subsection (1)(a)(ii), distribute
the revenues according to the distribution formula provided in Subsection (8); and
(c) deduct from the distributions under Subsection (7)(b) an administrative charge for
collecting the tax as provided in Section 59-12-206 .
(8) The commission shall distribute the revenues generated by the tax under Subsection
(1)(a)(ii) to each county collecting a tax under Subsection (1)(a)(ii) according to the following
formula:
(a) the commission shall distribute 70% of the revenues based on the percentages generated
by dividing the revenues collected by each county under Subsection (1)(a)(ii) by the total revenues
collected by all counties under Subsection (1)(a)(ii); and
(b) the commission shall distribute 30% of the revenues based on the percentages generated
by dividing the population of each county collecting a tax under Subsection (1)(a)(ii) by the total
population of all counties collecting a tax under Subsection (1)(a)(ii).
(9) (a) For purposes of this Subsection (9):
(i) "Annexation" means an annexation to a county under Title 17, Chapter 2, Annexation to
County.
(ii) "Annexing area" means an area that is annexed into a county.
(b) (i) If, on or after May 1, 2000, a county enacts or repeals a tax or changes the rate of a
tax under this part, the enactment, repeal, or change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 75-day period beginning on the date the commission receives notice meeting the
requirements of Subsection (9)(b)(ii) from the county.
(ii) The notice described in Subsection (9)(b)(i)(B) shall state:
(A) that the county will enact or repeal a tax or change the rate of a tax under this part;
(B) the statutory authority for the tax described in Subsection (9)(b)(ii)(A);
(C) the effective date of the tax described in Subsection (9)(b)(ii)(A); and
(D) if the county enacts the tax or changes the rate of the tax described in Subsection
(9)(b)(ii)(A), the new rate of the tax.
(c) (i) If, for an annexation that occurs on or after May 1, 2000, the annexation will result
in a change in the rate of a tax under this part for an annexing area, the change shall take effect:
(A) on the first day of a calendar quarter; and
(B) after a 75-day period beginning on the date the commission receives notice meeting the
requirements of Subsection (9)(c)(ii) from the county that annexes the annexing area.
(ii) The notice described in Subsection (9)(c)(i)(B) shall state:
(A) that the annexation described in Subsection (9)(c)(i) will result in a change in the rate
of a tax under this part for the annexing area;
(B) the statutory authority for the tax described in Subsection (9)(c)(ii)(A);
(C) the effective date of the tax described in Subsection (9)(c)(ii)(A); and
(D) the new rate of the tax described in Subsection (9)(c)(ii)(A).
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