First Substitute H.B. 158

This document includes House Committee Amendments incorporated into the bill on Thu, Feb 8, 2007 at 12:07 PM by jeyring. -->

Representative Wayne A. Harper proposes the following substitute bill:

1 AMENDMENTS TO TRANSPORTATION
2 PROVISIONS
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Wayne A. Harper
6 Senate Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Motor Vehicles Code, the Sales and Use Tax Act, the Motor Fuel
11 Tax Act, and the Transportation Code by amending provisions relating to
12 transportation.
13 Highlighted Provisions:
14 This bill:
15 . provides definitions;
16 . creates the Mountain View Corridor Fund;
17 . provides that the following shall be deposited in the Mountain View Corridor Fund:
18 . the local corridor preservation fee imposed in a county of the first class;
19 . 25% of the .25% Public Transit Tax revenue in a county of the first class when
20 certain bonds have been paid off; and
21 . 25% of the County Option Sales and Use Tax for Transportation tax revenue
22 imposed in a county of the first class that is designated for corridor preservation;
23 . provides that H. beginning on July 1, 2009 until December 31, 2018, .H the
23a motor fuel and special fuel tax rate shall be increased H. [ or decreased ] by 2 cents .H
24 every two years H. in the odd numbered year [ based on the actual percentage change
24a in the consumer price index
25 over the previous two calendar years ] .H ;

26 . provides procedures for implementing the motor fuel and special fuel tax rate
27 adjustment;
28 . grants the State Tax Commission rulemaking authority to establish rules to
29 implement the motor fuel and special fuel tax rate adjustment provisions;
30 . exempts the Mountain View Corridor Fund from spending limit provisions;
31 H. [ . repeals certain reapportionment provisions for the distribution of monies in the B
32 and C roads account; ] .H
33 . authorizes the Department of Transportation to spend revenues deposited in the
34 Transportation Corridor Preservation Revolving Loan Fund on administrative costs
35 for transportation corridor preservation;
36 . restricts the use of the Local Transportation Corridor Preservation Fund revenue to
37 preserve highway corridors that are rights-of-way for state highways or minor
38 arterial highways;
39 . provides that local revenues from a county of the first class that are deposited in the
40 Mountain View Corridor Fund and used to pay for the purchase of rights-of-way or
41 construction costs for a project within the Mountain View Corridor shall be
42 considered a local matching contribution; and
43 . makes technical changes.
44 Monies Appropriated in this Bill:
45 None
46 Other Special Clauses:
47 This bill takes effect on July 1, 2007.
48 Utah Code Sections Affected:
49 AMENDS:
50 41-1a-1222, as enacted by Chapter 284, Laws of Utah 2005
51 59-12-502, as last amended by Chapters 253 and 329, Laws of Utah 2006
52 59-12-1703, as enacted by Chapter 1, Laws of Utah 2006, Fourth Special Session
53 59-13-201, as last amended by Chapter 237, Laws of Utah 2004
54 59-13-301, as last amended by Chapters 7 and 268, Laws of Utah 2003
55 59-13-304, as last amended by Chapter 1, Laws of Utah 2005, First Special Session
56 63-38c-103, as last amended by Chapter 1, Laws of Utah 2005, First Special Session

57 H. [ 72-2-108, as last amended by Chapter 105, Laws of Utah 2005 ] .H
58 72-2-117, as last amended by Chapter 284, Laws of Utah 2005
59 72-2-117.5, as last amended by Chapter 1, Laws of Utah 2006, Fourth Special Session
60 72-2-121, as last amended by Chapter 1, Laws of Utah 2006, Fourth Special Session
61 ENACTS:
62 72-2-125, Utah Code Annotated 1953
63
64 Be it enacted by the Legislature of the state of Utah:
65 Section 1. Section 41-1a-1222 is amended to read:
66 41-1a-1222. Local option transportation corridor preservation fee -- Exemptions
67 -- Deposit -- County ordinance -- Notice.
68 (1) (a) (i) A county legislative body may impose a local option transportation corridor
69 preservation fee of up to $10 on each motor vehicle registration within the county.
70 (ii) A fee imposed under Subsection (1)(a)(i) shall be set in whole dollar increments.
71 (b) If imposed under Subsection (1)(a), at the time application is made for registration
72 or renewal of registration of a motor vehicle under this chapter, the applicant shall pay the local
73 option transportation corridor preservation fee established by the county legislative body.
74 (c) A motor vehicle that is exempt from the registration fee under Section 41-1a-1209
75 or Subsection 41-1a-419 (3) is also exempt from the local option transportation corridor
76 preservation fee required by this section.
77 (d) A commercial motor vehicle with an apportioned registration under Section
78 41-1a-301 is exempt from the local option transportation corridor preservation fee required by
79 this section.
80 (2) [The] (a) Except as provided in Subsection (2)(b), the revenue generated under this
81 section shall be:
82 [(a)] (i) deposited in the Local Transportation Corridor Preservation Fund created in
83 Section 72-2-117.5 ;
84 [(b)] (ii) credited to the county from which it is generated; and
85 [(c)] (iii) used and distributed in accordance with Section 72-2-117.5 .
86 (b) The revenue generated by a fee imposed under this section in a county of the first
87 class shall be:

88 (i) deposited in the Mountain View Corridor Fund created in Section 72-2-125 ; and
89 (ii) used in accordance with Section 72-2-125 .
90 (3) To impose or change the amount of a fee under this section, the county legislative
91 body shall pass an ordinance:
92 (a) approving the fee;
93 (b) setting the amount of the fee; and
94 (c) providing an effective date for the fee as provided in Subsection (4).
95 (4) (a) If a county legislative body enacts, changes, or repeals a fee under this section,
96 the enactment, change, or repeal shall take effect on July 1 if the commission receives notice
97 meeting the requirements of Subsection (4)(b) from the county prior to April 1.
98 (b) The notice described in Subsection (4)(a) shall:
99 (i) state that the county will enact, change, or repeal a fee under this part;
100 (ii) include a copy of the ordinance imposing the fee; and
101 (iii) if the county enacts or changes the fee under this section, state the amount of the
102 fee.
103 Section 2. Section 59-12-502 is amended to read:
104 59-12-502. Additional public transit tax for expanded system and fixed guideway
105 and interstate improvements -- Base -- Rate -- Voter approval.
106 (1) (a) (i) In addition to other sales and use taxes, including the public transit district tax
107 authorized by Section 59-12-501 , a county, city, or town within a transit district organized
108 under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act, may impose a sales and
109 use tax of .25% on the transactions described in Subsection 59-12-103 (1) located within the
110 county, city, or town, to fund a fixed guideway and expanded public transportation system.
111 (ii) Notwithstanding Subsection (1)(a)(i), a county, city, or town may not impose a tax
112 under this section on:
113 (A) the sales and uses described in Section 59-12-104 to the extent the sales and uses
114 are exempt from taxation under Section 59-12-104 ; and
115 (B) any amounts paid or charged by a seller that collects a tax under Subsection
116 59-12-107 (1)(b).
117 (b) For purposes of this Subsection (1), the location of a transaction shall be
118 determined in accordance with Section 59-12-207 .

119 (c) (i) A county, city, or town may impose the tax under this section only if the
120 governing body of the county, city, or town submits, by resolution, the proposal to all the
121 qualified voters within the county, city, or town for approval at a general or special election
122 conducted in the manner provided by statute.
123 (ii) Notice of the election under Subsection (1)(c)(i) shall be given by the county, city,
124 or town governing body 15 days in advance in the manner prescribed by statute.
125 (2) If the majority of the voters voting in this election approve the proposal, it shall
126 become effective on the date provided by the county, city, or town governing body.
127 (3) (a) This section may not be construed to require an election in jurisdictions where
128 voters have previously approved a public transit sales or use tax.
129 (b) This section shall be construed to require an election to impose the sales and use
130 tax authorized by this section, including jurisdictions where the voters have previously
131 approved the sales and use tax authorized by Section 59-12-501 , but this section may not be
132 construed to affect the sales and use tax authorized by Section 59-12-501 .
133 (4) No public funds shall be spent to promote the required election.
134 (5) (a) Notwithstanding the designated use of revenues in Subsection (1), of the
135 revenues generated by the tax imposed under this section by any county of the first class:
136 (i) 75% shall be allocated to fund a fixed guideway and expanded public transportation
137 system; and
138 (ii) except as provided in Subsection (5)(b), 25% shall be allocated to fund new
139 construction, major renovations, and improvements to Interstate 15 and state highways within
140 the county and to pay any debt service and bond issuance costs related to those projects.
141 [(b) Notwithstanding the designated use of revenues in Subsection (1), beginning on
142 July 1, 2006, and ending on July 1, 2007, a county of the first class may expend an amount not
143 to exceed $3,500,000 of the revenues described in Subsection (5)(a)(ii) for expenses relating to
144 reconfiguring railroad curves within that county to reduce rail congestion.]
145 (b) (i) As used in this Subsection (5)(b), "Mountain View Corridor" means the land
146 area of Salt Lake County running from Interstate 80 south between SR-154 and SR-111 to
147 12600 South and then south and southeasterly to the northern portion of Utah County west of
148 SR-15.
149 (ii) Beginning on July 1, 2008 and except as provided in Subsection (5)(c), a bond may

150 not be issued to fund new construction, major renovations, and improvements to Interstate 15
151 and state highways within the county if the bond is intended to be paid from revenues allocated
152 under Subsection (5)(a)(ii).
153 (c) When all bonds incurred before July 1, 2008 for new construction, major
154 renovations, and improvements to Interstate 15 and state highways within the county which
155 were intended to be paid from revenues allocated under Subsection (5)(a)(ii) have been paid
156 off, the revenues generated by the tax imposed under this section that are allocated under
157 Subsection (5)(a)(ii) shall be deposited in the Mountain View Corridor Fund created in Section
158 72-2-125 .
159 (d) A county of the first class shall notify the commission when all bonds that are
160 intended to be paid from revenues allocated under Subsection (5)(a)(ii) have been paid off.
161 (6) A county of the first class may, through an interlocal agreement, authorize the
162 deposit or transfer of the portion of the revenues described in Subsection (5)(a)(ii) to the Public
163 Transportation System Tax Highway Fund created in Section 72-2-121 .
164 Section 3. Section 59-12-1703 is amended to read:
165 59-12-1703. Opinion question election -- Base -- Rate -- Imposition of tax -- Use of
166 tax revenues -- Administration, collection, and enforcement of tax by commission --
167 Administrative fee -- Enactment or repeal of tax -- Annexation -- Notice.
168 (1) (a) Beginning on or after April 1, 2007, and subject to the other provisions of this
169 part, a county legislative body may impose a sales and use tax of up to .25%:
170 (i) on the transactions:
171 (A) described in Subsection 59-12-103 (1); and
172 (B) within the county, including the cities and towns within the county;
173 (ii) for the purposes described in Subsection (4); and
174 (iii) in addition to any other sales and use tax authorized under this chapter.
175 (b) Notwithstanding Subsection (1)(a)(i), a county legislative body may not impose a
176 tax under this section on:
177 (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
178 are exempt from taxation under Section 59-12-104 ; or
179 (ii) any amounts paid or charged by a seller that collects a tax under Subsection
180 59-12-107 (1)(b).

181 (c) For purposes of this Subsection (1), the location of a transaction shall be
182 determined in accordance with Section 59-12-207 .
183 (2) (a) Except as provided in Subsection (2)(d), before imposing a tax under this part, a
184 county legislative body shall:
185 (i) obtain approval from a majority of the members of the county legislative body to
186 impose the tax; and
187 (ii) submit an opinion question to the county's registered voters voting on the
188 imposition of the tax so that each registered voter has the opportunity to express the registered
189 voter's opinion on whether a tax should be imposed under this part.
190 (b) (i) In a county of the first or second class, the opinion question required by
191 Subsection (2)(a)(ii) shall state the following:
192 "Shall (insert the name of the county), Utah, be authorized to impose a (insert the
193 amount of the sales and use tax up to .25%) sales and use tax for corridor preservation,
194 congestion mitigation, or to expand capacity for regionally significant transportation facilities?"
195 (ii) In a county of the third, fourth, fifth, or sixth class, the opinion question required by
196 Subsection (2)(a)(ii) shall state the following:
197 "Shall (insert the name of the county), Utah, be authorized to impose a (insert the
198 amount of the sales and use tax up to .25%) sales and use tax for transportation projects,
199 corridor preservation, congestion mitigation, or to expand capacity for regionally significant
200 transportation facilities?"
201 (c) Except as provided in Subsection (2)(d), the election required by this Subsection (2)
202 shall be held:
203 (i) at a regular general election conducted in accordance with the procedures and
204 requirements of Title 20A, Election Code, governing regular elections; or
205 (ii) at a special election called by the county legislative body that is:
206 (A) held only on the date of a municipal general election as provided in Subsection
207 20A-1-202 (1); and
208 (B) authorized in accordance with the procedures and requirements of Section
209 20A-1-203 .
210 (d) Notwithstanding Subsection (2)(a) or (c), if a county seeks to impose a tax under
211 this part on or after April 1, 2007, but on or before December 31, 2007, the county legislative

212 body shall:
213 (i) obtain the approval required by Subsection (2)(a)(i) within five calendar days of
214 September 20, 2006;
215 (ii) direct the county clerk to submit the opinion question required by Subsection
216 (2)(a)(ii) during the November 7, 2006 general election; and
217 (iii) hold the election required by this section on November 7, 2006.
218 (3) If a county legislative body determines that a majority of the county's registered
219 voters voting on the imposition of the tax have voted in favor of the imposition of the tax in
220 accordance with Subsection (2), the county legislative body shall impose the tax in accordance
221 with this section.
222 (4) (a) Subject to Subsections (5) and (6), the revenues generated by a tax under this
223 part may only be expended for:
224 (i) a project or service:
225 (A) relating to a regionally significant transportation facility;
226 (B) for the portion of the project or service that is performed within the county;
227 (C) for new capacity or congestion mitigation if the project or service is performed
228 within a county:
229 (I) of the first class;
230 (II) of the second class; or
231 (III) that is part of an area metropolitan planning organization;
232 (D) (I) if the project or service is a principal arterial highway or a minor arterial
233 highway in a county of the first or second class, that is part of the county and municipal master
234 plan and part of:
235 (Aa) the statewide long-range plan; or
236 (Bb) the regional transportation plan of the area metropolitan planning organization if a
237 metropolitan planning organization exists for the area; or
238 (II) if the project or service is for a fixed guideway or an airport, that is part of the
239 regional transportation plan of the area metropolitan planning organization if a metropolitan
240 planning organization exists for the area; and
241 (E) that is on a priority list:
242 (I) created by the county's council of governments in accordance with Subsection (5);

243 and
244 (II) approved by the county legislative body in accordance with Subsection (6);
245 (ii) corridor preservation for a project described in Subsection (4)(a)(i) as provided in
246 Subsection (7)(b); or
247 (iii) any debt service and bond issuance costs related to a project described in
248 Subsection (4)(a)(i) or (ii).
249 (b) In a county of the first or second class, a regionally significant transportation
250 facility project or service described in Subsection (4)(a)(i)(A) must have a funded year priority
251 designation on a Statewide Transportation Improvement Program and Transportation
252 Improvement Program if the project or service described in Subsection (4)(a)(i) is:
253 (i) a principal arterial highway as defined in Section 72-4-102.5 ;
254 (ii) a minor arterial highway as defined in Section 72-4-102.5 ; or
255 (iii) a major collector highway:
256 (A) as defined in Section 72-4-102.5 ; and
257 (B) in a rural area.
258 (c) Notwithstanding the designated use of revenues in Subsection (4)(a), of the
259 revenues generated by the tax imposed under this section by any county of the first or second
260 class, 25% or more shall be expended for the purpose described in Subsection (4)(a)(ii).
261 (d) For purposes of this Subsection (4), the revenues a county will receive from a tax
262 under this part do not include amounts retained by the commission in accordance with
263 Subsection (8).
264 (5) (a) The county's council of governments shall create a priority list of regionally
265 significant transportation facility projects described in Subsection (4)(a) using the process
266 described in Subsection (5)(b) and present the priority list to the county's legislative body for
267 approval as described in Subsection (6).
268 (b) Subject to Sections 59-12-1704 and 59-12-1705 , a council of governments shall
269 establish a council of governments' endorsement process which includes prioritization and
270 application procedures for use of the revenues a county will receive from a tax under this part.
271 (6) (a) The council of governments shall submit the priority list described in
272 Subsection (5) to the county's legislative body and obtain approval of the list from a majority of
273 the members of the county legislative body.

274 (b) A county's council of governments may only submit one priority list per calendar
275 year.
276 (c) A county legislative body may only consider and approve one priority list per
277 calendar year.
278 (7) (a) (i) Except as provided in Subsections (7)(a)(ii) and (7)(b), revenues described in
279 Subsection (4) shall be transmitted:
280 (A) by the commission;
281 (B) to the county;
282 (C) monthly; and
283 (D) by electronic funds transfer.
284 (ii) A county may request that the commission transfer a portion of the revenues
285 described in Subsection (4):
286 (A) directly to a public transit district:
287 (I) organized under Title 17A, Chapter 2, Part 10, Utah Public Transit District Act; and
288 (II) designated by the county; and
289 (B) by providing written notice to the commission:
290 (I) requesting the revenues to be transferred directly to a public transit district as
291 provided in Subsection (7)(a)(ii)(A); and
292 (II) designating the public transit district to which the revenues are requested to be
293 transferred.
294 (b) (i) Except as provided in Subsection (7)(b)(ii), revenues generated by a tax under
295 this part that are allocated for a purpose described in Subsection (4)(a)(ii) shall be:
296 (A) deposited in or transferred to the Local Transportation Corridor Preservation Fund
297 created by Section 72-2-117.5 ; and
298 (B) expended as provided in Section 72-2-117.5 .
299 (ii) In a county of the first class, revenues generated by a tax under this part that are
300 allocated for a purpose described in Subsection (4)(a)(ii) shall be:
301 (A) deposited in or transferred to the [Public Transportation System Tax Highway]
302 Mountain View Corridor Fund created by Section [ 72-2-121 ] 72-2-125 ; and
303 (B) expended as provided in Section [ 72-2-121 ] 72-2-125 .
304 (8) (a) (i) Except as provided in Subsection (8)(b), the tax authorized under this part

305 shall be administered, collected, and enforced in accordance with:
306 (A) the same procedures used to administer, collect, and enforce the tax under:
307 (I) Part 1, Tax Collection; or
308 (II) Part 2, Local Sales and Use Tax Act; and
309 (B) Chapter 1, General Taxation Policies.
310 (ii) A tax under this part is not subject to Subsections 59-12-205 (2) through (7).
311 (b) (i) The commission may retain an amount of tax collected under this part of not to
312 exceed the lesser of:
313 (A) 1.5%; or
314 (B) an amount equal to the cost to the commission of administering this part.
315 (ii) Any amount the commission retains under Subsection (8)(b)(i) shall be:
316 (A) placed in the Sales and Use Tax Administrative Fees Account; and
317 (B) used as provided in Subsection 59-12-206 (2).
318 (9) (a) (i) Except as provided in Subsection (9)(b) or (c), if, on or after April 1, 2007, a
319 county enacts or repeals a tax or changes the rate of a tax under this part, the enactment, repeal,
320 or change shall take effect:
321 (A) on the first day of a calendar quarter; and
322 (B) after a 90-day period beginning on the date the commission receives notice meeting
323 the requirements of Subsection (9)(a)(ii) from the county.
324 (ii) The notice described in Subsection (9)(a)(i)(B) shall state:
325 (A) that the county will enact, repeal, or change the rate of a tax under this part;
326 (B) the statutory authority for the tax described in Subsection (9)(a)(ii)(A);
327 (C) the effective date of the tax described in Subsection (9)(a)(ii)(A); and
328 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
329 (9)(a)(ii)(A), the rate of the tax.
330 (b) (i) For a transaction described in Subsection (9)(b)(iii), if the billing period for the
331 transaction begins before the effective date of the enactment of the tax or tax rate increase
332 under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
333 day of the first billing period that begins after the effective date of the enactment of the tax or
334 the tax rate increase.
335 (ii) For a transaction described in Subsection (9)(b)(iii), if the billing period for the

336 transaction begins before the effective date of the repeal of the tax or the tax rate decrease
337 imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
338 first day of the last billing period that began before the effective date of the repeal of the tax or
339 the tax rate decrease.
340 (iii) Subsections (9)(b)(i) and (ii) apply to transactions subject to a tax under:
341 (A) Subsection 59-12-103 (1)(b);
342 (B) Subsection 59-12-103 (1)(c);
343 (C) Subsection 59-12-103 (1)(d);
344 (D) Subsection 59-12-103 (1)(e);
345 (E) Subsection 59-12-103 (1)(f);
346 (F) Subsection 59-12-103 (1)(g);
347 (G) Subsection 59-12-103 (1)(h);
348 (H) Subsection 59-12-103 (1)(i);
349 (I) Subsection 59-12-103 (1)(j); or
350 (J) Subsection 59-12-103 (1)(k).
351 (c) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
352 sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
353 a tax described in Subsection (9)(a)(i) takes effect:
354 (A) on the first day of a calendar quarter; and
355 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
356 rate of the tax under Subsection (9)(a)(i).
357 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
358 the commission may by rule define the term "catalogue sale."
359 (d) (i) Except as provided in Subsection (9)(e) or (f), if, for an annexation that occurs
360 on or after April 1, 2007, the annexation will result in the enactment, repeal, or change in the
361 rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
362 effect:
363 (A) on the first day of a calendar quarter; and
364 (B) after a 90-day period beginning on the date the commission receives notice meeting
365 the requirements of Subsection (9)(d)(ii) from the county that annexes the annexing area.
366 (ii) The notice described in Subsection (9)(d)(i)(B) shall state:

367 (A) that the annexation described in Subsection (9)(d)(i)(B) will result in an enactment,
368 repeal, or change in the rate of a tax under this part for the annexing area;
369 (B) the statutory authority for the tax described in Subsection (9)(d)(ii)(A);
370 (C) the effective date of the tax described in Subsection (9)