First Substitute H.B. 158

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 the motor fuel and special fuel tax rate shall be increased or decreased
24 every two years based on the actual percentage change in the consumer price index
25 over the previous two calendar years;

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 . repeals certain reapportionment provisions for the distribution of monies in the B
32 and C roads account;
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 72-2-108, as last amended by Chapter 105, Laws of Utah 2005
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)(d)(ii)(A); and
371 (D) if the county enacts the tax or changes the rate of the tax described in Subsection
372 (9)(d)(ii)(A), the rate of the tax.
373 (e) (i) For a transaction described in Subsection (9)(e)(iii), if the billing period for the
374 transaction begins before the effective date of the enactment of the tax or a tax rate increase
375 under Subsection (1), the enactment of a tax or a tax rate increase shall take effect on the first
376 day of the first billing period that begins after the effective date of the enactment of the tax or
377 the tax rate increase.
378 (ii) For a transaction described in Subsection (9)(e)(iii), if the billing period for the
379 transaction begins before the effective date of the repeal of the tax or the tax rate decrease
380 imposed under Subsection (1), the repeal of a tax or a tax rate decrease shall take effect on the
381 first day of the last billing period that began before the effective date of the repeal of the tax or
382 the tax rate decrease.
383 (iii) Subsections (9)(e)(i) and (ii) apply to transactions subject to a tax under:
384 (A) Subsection 59-12-103 (1)(b);
385 (B) Subsection 59-12-103 (1)(c);
386 (C) Subsection 59-12-103 (1)(d);
387 (D) Subsection 59-12-103 (1)(e);
388 (E) Subsection 59-12-103 (1)(f);
389 (F) Subsection 59-12-103 (1)(g);
390 (G) Subsection 59-12-103 (1)(h);
391 (H) Subsection 59-12-103 (1)(i);
392 (I) Subsection 59-12-103 (1)(j); or
393 (J) Subsection 59-12-103 (1)(k).
394 (f) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
395 sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
396 a tax described in Subsection (9)(d)(i) takes effect:
397 (A) on the first day of a calendar quarter; and

398 (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
399 rate under Subsection (9)(d)(i).
400 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
401 the commission may by rule define the term "catalogue sale."
402 Section 4. Section 59-13-201 is amended to read:
403 59-13-201. Rate -- Tax basis -- Exemptions -- Revenue deposited in the
404 Transportation Fund -- Restricted account for boating uses -- Refunds -- Reduction of tax
405 in limited circumstances.
406 (1) (a) Subject to the provisions of this section, a tax is imposed at the rate of 24-1/2
407 cents per gallon upon all motor fuel that is sold, used, or received for sale or used in this state.
408 (b) In lieu of the tax imposed under Subsection (1)(a) and subject to the provisions of
409 this section, a tax is imposed at the rate of 3/19 of the rate imposed under Subsection (1)(a),
410 rounded up to the nearest penny, upon all motor fuels that meet the definition of clean fuel in
411 Section 59-13-102 and are sold, used, or received for sale or use in this state.
412 (c) (i) Beginning on or after January 1, 2009, the commission shall, every two years in
413 the odd year, increase or decrease the rate imposed under Subsection (1)(a) by an amount equal
414 to the actual percentage change in the Consumer Price Index during the previous two calendar
415 years rounded up to the nearest half penny.
416 (ii) For purposes of Subsection (1)(c)(i), the commission shall calculate the Consumer
417 Price Index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
418 (iii) The adjusted fuel tax rate shall take effect on January 1 in a year that the fuel tax
419 rate is required to be adjusted in accordance with Subsection (1)(c)(i).
420 (iv) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
421 the commission may make rules implementing the provisions of this Subsection (1)(c).
422 (2) Any increase or decrease in tax rate applies to motor fuel that is imported to the
423 state or sold at refineries in the state on or after the effective date of the rate change.
424 (3) (a) No motor fuel tax is imposed upon:
425 (i) motor fuel that is brought into and sold in this state in original packages as purely
426 interstate commerce sales;
427 (ii) motor fuel that is exported from this state if proof of actual exportation on forms
428 prescribed by the commission is made within 180 days after exportation;

429 (iii) motor fuel or components of motor fuel that is sold and used in this state and
430 distilled from coal, oil shale, rock asphalt, bituminous sand, or solid hydrocarbons located in
431 this state; or
432 (iv) motor fuel that is sold to the United States government, this state, or the political
433 subdivisions of this state.
434 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
435 commission shall make rules governing the procedures for administering the tax exemption
436 provided under Subsection (3)(a)(iv).
437 (4) The commission may either collect no tax on motor fuel exported from the state or,
438 upon application, refund the tax paid.
439 (5) (a) All revenue received by the commission under this part shall be deposited daily
440 with the state treasurer and credited to the Transportation Fund.
441 (b) An appropriation from the Transportation Fund shall be made to the commission to
442 cover expenses incurred in the administration and enforcement of this part and the collection of
443 the motor fuel tax.
444 (6) (a) The commission shall determine what amount of motor fuel tax revenue is
445 received from the sale or use of motor fuel used in motorboats registered under the provisions
446 of the State Boating Act, and this amount shall be deposited in a restricted revenue account in
447 the General Fund of the state.
448 (b) The funds from this account shall be used for the construction, improvement,
449 operation, and maintenance of state-owned boating facilities and for the payment of the costs
450 and expenses of the Division of Parks and Recreation in administering and enforcing the State
451 Boating Act.
452 (7) (a) The United States government or any of its instrumentalities, this state, or a
453 political subdivision of this state that has purchased motor fuel from a licensed distributor or
454 from a retail dealer of motor fuel and has paid the tax on the motor fuel as provided in this
455 section is entitled to a refund of the tax and may file with the commission for a quarterly
456 refund.
457 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
458 commission shall make rules governing the application and refund provided for in Subsection
459 (7)(a).

460 (8) (a) The commission shall refund annually into the Off-Highway Vehicle Account in
461 the General Fund an amount equal to the lesser of the following:
462 (i) .5% of the motor fuel tax revenues collected under this section; or
463 (ii) $1,050,000.
464 (b) This amount shall be used as provided in Section 41-22-19 .
465 (c) This Subsection (8) sunsets on July 1, 2010.
466 (9) (a) Beginning on April 1, 2001, a tax imposed under this section on motor fuel that
467 is sold, used, or received for sale or use in this state is reduced to the extent provided in
468 Subsection (9)(b) if:
469 (i) a tax imposed on the basis of the sale, use, or receipt for sale or use of the motor
470 fuel is paid to the Navajo Nation;
471 (ii) the tax described in Subsection (9)(a)(i) is imposed without regard to whether or
472 not the person required to pay the tax is an enrolled member of the Navajo Nation; and
473 (iii) the commission and the Navajo Nation execute and maintain an agreement as
474 provided in this Subsection (9) for the administration of the reduction of tax.
475 (b) (i) If but for Subsection (9)(a) the motor fuel is subject to a tax imposed by this
476 section:
477 (A) the state shall be paid the difference described in Subsection (9)(b)(ii) if that
478 difference is greater than $0; and
479 (B) a person may not require the state to provide a refund, a credit, or similar tax relief
480 if the difference described in Subsection (9)(b)(ii) is less than or equal to $0.
481 (ii) The difference described in Subsection (9)(b)(i) is equal to the difference between:
482 (A) the amount of tax imposed on the motor fuel by this section; less
483 (B) the tax imposed and collected by the Navajo Nation on the motor fuel.
484 (c) For purposes of Subsections (9)(a) and (b), the tax paid to the Navajo Nation under
485 a tax imposed by the Navajo Nation on the basis of the sale, use, or receipt for sale or use of
486 motor fuel does not include any interest or penalties a taxpayer may be required to pay to the
487 Navajo Nation.
488 (d) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
489 commission shall make rules governing the procedures for administering the reduction of tax
490 provided under this Subsection (9).

491 (e) The agreement required under Subsection (9)(a):
492 (i) may not:
493 (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
494 (B) provide a reduction of taxes greater than or different from the reduction described
495 in this Subsection (9); or
496 (C) affect the power of the state to establish rates of taxation;
497 (ii) shall:
498 (A) be in writing;
499 (B) be signed by:
500 (I) the chair of the commission or the chair's designee; and
501 (II) a person designated by the Navajo Nation that may bind the Navajo Nation;
502 (C) be conditioned on obtaining any approval required by federal law;
503 (D) state the effective date of the agreement; and
504 (E) state any accommodation the Navajo Nation makes related to the construction and
505 maintenance of state highways and other infrastructure within the Utah portion of the Navajo
506 Nation; and
507 (iii) may:
508 (A) notwithstanding Section 59-1-403 , authorize the commission to disclose to the
509 Navajo Nation information that is:
510 (I) contained in a document filed with the commission; and
511 (II) related to the tax imposed under this section;
512 (B) provide for maintaining records by the commission or the Navajo Nation; or
513 (C) provide for inspections or audits of distributors, carriers, or retailers located or
514 doing business within the Utah portion of the Navajo Nation.
515 (f) (i) If, on or after April 1, 2001, the Navajo Nation changes the tax rate of a tax
516 imposed on motor fuel, any change in the reduction of taxes under this Subsection (9) as a
517 result of the change in the tax rate is not effective until the first day of the calendar quarter after
518 a 60-day period beginning on the date the commission receives notice:
519 (A) from the Navajo Nation; and
520 (B) meeting the requirements of Subsection (9)(f)(ii).
521 (ii) The notice described in Subsection (9)(f)(i) shall state:

522 (A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
523 motor fuel;
524 (B) the effective date of the rate change of the tax described in Subsection (9)(f)(ii)(A);
525 and
526 (C) the new rate of the tax described in Subsection (9)(f)(ii)(A).
527 (g) If the agreement required by Subsection (9)(a) terminates, a reduction of tax is not
528 permitted under this Subsection (9) beginning on the first day of the calendar quarter after a
529 30-day period beginning on the day the agreement terminates.
530 (h) If there is a conflict between this Subsection (9) and the agreement required by
531 Subsection (9)(a), this Subsection (9) governs.
532 Section 5. Section 59-13-301 is amended to read:
533 59-13-301. Tax basis -- Rate -- Exemptions -- Revenue deposited with treasurer
534 and credited to Transportation Fund -- Reduction of tax in limited circumstances.
535 (1) (a) Except as provided in Subsections (2), (3), and (11) and Section 59-13-304 , a
536 tax is imposed at the same rate imposed under Subsection 59-13-201 (1)[(a)] on the:
537 (i) removal of undyed diesel fuel from any refinery;
538 (ii) removal of undyed diesel fuel from any terminal;
539 (iii) entry into the state of any undyed diesel fuel for consumption, use, sale, or
540 warehousing;
541 (iv) sale of undyed diesel fuel to any person who is not registered as a supplier under
542 this part unless the tax has been collected under this section;
543 (v) any untaxed special fuel blended with undyed diesel fuel; or
544 (vi) use of untaxed special fuel, other than a clean special fuel.
545 (b) The tax imposed under this section shall only be imposed once upon any special
546 fuel.
547 (2) (a) No special fuel tax is imposed or collected upon dyed diesel fuel which:
548 (i) is sold or used for any purpose other than to operate or propel a motor vehicle upon
549 the public highways of the state, but this exemption applies only in those cases where the
550 purchasers or the users of special fuel establish to the satisfaction of the commission that the
551 special fuel was used for purposes other than to operate a motor vehicle upon the public
552 highways of the state; or

553 (ii) is sold to this state or any of its political subdivisions.
554 (b) No special fuel tax is imposed on undyed diesel fuel which:
555 (i) is sold to the United States government or any of its instrumentalities or to this state
556 or any of its political subdivisions;
557 (ii) is exported from this state if proof of actual exportation on forms prescribed by the
558 commission is made within 180 days after exportation;
559 (iii) is used in a vehicle off-highway;
560 (iv) is used to operate a power take-off unit of a vehicle;
561 (v) is used for off-highway agricultural uses;
562 (vi) is used in a separately fueled engine on a vehicle that does not propel the vehicle
563 upon the highways of the state; or
564 (vii) is used in machinery and equipment not registered and not required to be
565 registered for highway use.
566 (3) No tax is imposed or collected on special fuel if it is:
567 (a) purchased for business use in machinery and equipment not registered and not
568 required to be registered for highway use; and
569 (b) used pursuant to the conditions of a state implementation plan approved under Title
570 19, Chapter 2, Air Conservation Act.
571 (4) Upon request of a buyer meeting the requirements under Subsection (3), the
572 Division of Air Quality shall issue an exemption certificate that may be shown to a seller.
573 (5) The special fuel tax shall be paid by the supplier.
574 (6) (a) The special fuel tax shall be paid by every user who is required by Sections
575 59-13-303 and 59-13-305 to obtain a special fuel user permit and file special fuel tax reports.
576 (b) The user shall receive a refundable credit for special fuel taxes paid on purchases
577 which are delivered into vehicles and for which special fuel tax liability is reported.
578 (7) (a) Except as provided under Subsections (7)(b) and (c), all revenue received by the
579 commission from taxes and license fees under this part shall be deposited daily with the state
580 treasurer and credited to the Transportation Fund.
581 (b) An appropriation from the Transportation Fund shall be made to the commission to
582 cover expenses incurred in the administration and enforcement of this part and the collection of
583 the special fuel tax.

584 (c) Five dollars of each special fuel user trip permit fee paid under Section 59-13-303
585 may be used by the commission as a dedicated credit to cover the costs of electronic
586 credentialing as provided in Section 41-1a-303 .
587 (8) The commission may either collect no tax on special fuel exported from the state
588 or, upon application, refund the tax paid.
589 (9) (a) The United States government or any of its instrumentalities, this state, or a
590 political subdivision of this state that has purchased special fuel from a supplier or from a retail
591 dealer of special fuel and has paid the tax on the special fuel as provided in this section is
592 entitled to a refund of the tax and may file with the commission for a quarterly refund in a
593 manner prescribed by the commission.
594 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
595 commission shall make rules governing the application and refund provided for in Subsection
596 (9)(a).
597 (10) (a) The purchaser shall pay the tax on diesel fuel purchased for uses under
598 Subsections (2)(b)(i), (iii), (iv), (v), (vi), and (vii) and apply for a refund for the tax paid as
599 provided in Subsection (9) and this Subsection (10).
600 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
601 commission shall make rules governing the application and refund for off-highway and
602 nonhighway uses provided under Subsections (2)(b)(iii), (iv), (vi), and (vii).
603 (c) A refund of tax paid under this part on diesel fuel used for nonhighway agricultural
604 uses shall be made in accordance with the tax return procedures under Section 59-13-202 .
605 (11) (a) Beginning on April 1, 2001, a tax imposed under this section on special fuel is
606 reduced to the extent provided in Subsection (11)(b) if:
607 (i) the Navajo Nation imposes a tax on the special fuel;
608 (ii) the tax described in Subsection (11)(a)(i) is imposed without regard to whether the
609 person required to pay the tax is an enrolled member of the Navajo Nation; and
610 (iii) the commission and the Navajo Nation execute and maintain an agreement as
611 provided in this Subsection (11) for the administration of the reduction of tax.
612 (b) (i) If but for Subsection (11)(a) the special fuel is subject to a tax imposed by this
613 section:
614 (A) the state shall be paid the difference described in Subsection (11)(b)(ii) if that

615 difference is greater than $0; and
616 (B) a person may not require the state to provide a refund, a credit, or similar tax relief
617 if the difference described in Subsection (11)(b)(ii) is less than or equal to $0.
618 (ii) The difference described in Subsection (11)(b)(i) is equal to the difference
619 between:
620 (A) the amount of tax imposed on the special fuel by this section; less
621 (B) the tax imposed and collected by the Navajo Nation on the special fuel.
622 (c) For purposes of Subsections (11)(a) and (b), the tax paid to the Navajo Nation on
623 the special fuel does not include any interest or penalties a taxpayer may be required to pay to
624 the Navajo Nation.
625 (d) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
626 commission shall make rules governing the procedures for administering the reduction of tax
627 provided under this Subsection (11).
628 (e) The agreement required under Subsection (11)(a):
629 (i) may not:
630 (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
631 (B) provide a reduction of taxes greater than or different from the reduction described
632 in this Subsection (11); or
633 (C) affect the power of the state to establish rates of taxation;
634 (ii) shall:
635 (A) be in writing;
636 (B) be signed by:
637 (I) the chair of the commission or the chair's designee; and
638 (II) a person designated by the Navajo Nation that may bind the Navajo Nation;
639 (C) be conditioned on obtaining any approval required by federal law;
640 (D) state the effective date of the agreement; and
641 (E) state any accommodation the Navajo Nation makes related to the construction and
642 maintenance of state highways and other infrastructure within the Utah portion of the Navajo
643 Nation; and
644 (iii) may:
645 (A) notwithstanding Section 59-1-403 , authorize the commission to disclose to the

646 Navajo Nation information that is:
647 (I) contained in a document filed with the commission; and
648 (II) related to the tax imposed under this section;
649 (B) provide for maintaining records by the commission or the Navajo Nation; or
650 (C) provide for inspections or audits of suppliers, distributors, carriers, or retailers
651 located or doing business within the Utah portion of the Navajo Nation.
652 (f) (i) If, on or after April 1, 2001, the Navajo Nation changes the tax rate of a tax
653 imposed on special fuel, any change in the amount of the reduction of taxes under this
654 Subsection (11) as a result of the change in the tax rate is not effective until the first day of the
655 calendar quarter after a 60-day period beginning on the date the commission receives notice:
656 (A) from the Navajo Nation; and
657 (B) meeting the requirements of Subsection (11)(f)(ii).
658 (ii) The notice described in Subsection (11)(f)(i) shall state:
659 (A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
660 special fuel;
661 (B) the effective date of the rate change of the tax described in Subsection
662 (11)(f)(ii)(A); and
663 (C) the new rate of the tax described in Subsection (11)(f)(ii)(A).
664 (g) If the agreement required by Subsection (11)(a) terminates, a reduction of tax is not
665 permitted under this Subsection (11) beginning on the first day of the calendar quarter after a
666 30-day period beginning on the day the agreement terminates.
667 (h) If there is a conflict between this Subsection (11) and the agreement required by
668 Subsection (11)(a), this Subsection (11) governs.
669 Section 6. Section 59-13-304 is amended to read:
670 59-13-304. Exemptions from Special Fuel Tax -- Clean Special Fuel Tax --
671 Certificate required -- Fees for certificates -- Inspection of vehicles -- Exemptions.
672 (1) (a) Except as provided in Subsection (4), a user of special fuel who owns a vehicle
673 powered by a clean special fuel as defined under Section 59-13-102 shall pay a clean special
674 fuel tax as provided under this section for use of clean special fuel.
675 (b) A user of special fuel who qualifies for the clean special fuel tax shall annually
676 purchase from the commission a clean special fuel tax certificate for each vehicle owned or

677 leased that is powered by a clean special fuel.
678 (c) Clean special fuel tax certificates are provided to encourage the use of clean fuels to
679 reduce air pollution.
680 (2) (a) The fee for a clean special fuel tax certificate is:
681 (i) 70/.19 of the tax per gallon imposed under Subsection 59-13-201 (1)[(a)], rounded
682 up to the nearest dollar, for qualified motor vehicles as defined under Section 59-13-102 ; and
683 (ii) 36/.19 of the tax per gallon imposed under Subsection 59-13-201 (1)[(a)], rounded
684 up to the nearest dollar, for other vehicles.
685 (b) The commission may require each vehicle to be inspected for safe operation before
686 issuing the certificate.
687 (c) Each vehicle shall be equipped with an approved and properly installed carburetion
688 system if it is powered by a fuel that is gaseous at standard atmospheric conditions.
689 (3) (a) Beginning January 1, 2001 through December 31, 2010, there is imposed a
690 surcharge of $35 on each clean special fuel tax certificate issued under this section.
691 (b) (i) Until Subsection (3)(b)(ii) applies, surcharges imposed under Subsection (3)(a)
692 shall be deposited into the Centennial Highway Fund Restricted Account created under Section
693 72-2-118 .
694 (ii) When the highway general obligation bonds have been paid off and the highway
695 projects completed that are intended to be paid from revenues deposited in the Centennial
696 Highway Fund Restricted Account as determined by the Executive Appropriations Committee
697 under Subsection 72-2-118 (6)(d), the surcharge imposed under Subsection (3)(a) shall be
698 deposited into the Transportation Investment Fund of 2005 created by Section 72-2-124 .
699 (4) A governmental entity identified in Subsection 59-13-301 (9) that owns or leases a
700 vehicle powered by a special fuel that qualifies as a clean special fuel is exempt from the clean
701 special fuel tax imposed under this section.
702 Section 7. Section 63-38c-103 is amended to read:
703 63-38c-103. Definitions.
704 As used in this chapter:
705 (1) (a) "Appropriations" means actual unrestricted capital and operating appropriations
706 from unrestricted General Fund sources and from non-Uniform School Fund income tax
707 revenues as presented in the governor's executive budgets.

708 (b) "Appropriation" includes appropriations that are contingent upon available
709 surpluses in the General Fund.
710 (c) "Appropriations" does not mean:
711 (i) debt service expenditures;
712 (ii) emergency expenditures;
713 (iii) expenditures from all other fund or subfund sources presented in the executive
714 budgets;
715 (iv) transfers into, or appropriations made to, the General Fund Budget Reserve
716 Account established in Section 63-38-2.5 ;
717 (v) transfers into, or appropriations made to, the Education Budget Reserve Account
718 established in Section 63-38-2.6 ;
719 (vi) monies appropriated to fund the total one-time project costs for the construction of
720 capital developments as defined in Section 63A-5-104 ;
721 (vii) appropriations made to the Centennial Highway Fund Restricted Account created
722 by Section 72-2-118 ; [or]
723 (viii) appropriations made to the Transportation Investment Fund of 2005 created by
724 Section 72-2-124 [.]; or
725 (ix) appropriations made to the Mountain View Corridor Fund created by Section
726 72-2-125 .
727 (2) "Base year real per capita appropriations" means the result obtained for the state by
728 dividing the fiscal year 1985 actual appropriations of the state less debt monies by:
729 (a) the state's July 1, 1983 population; and
730 (b) the fiscal year 1983 inflation index divided by 100.
731 (3) "Calendar year" means the time period beginning on January 1 of any given year
732 and ending on December 31 of the same year.
733 (4) "Fiscal emergency" means an extraordinary occurrence requiring immediate
734 expenditures and includes the settlement under Chapter 4, Laws of Utah 1988, Fourth Special
735 Session.
736 (5) "Fiscal year" means the time period beginning on July 1 of any given year and
737 ending on June 30 of the subsequent year.
738 (6) "Fiscal year 1985 actual base year appropriations" means fiscal year 1985 actual

739 capital and operations appropriations from General Fund and non-Uniform School Fund
740 income tax revenue sources, less debt monies.
741 (7) "Inflation index" means the change in the general price level of goods and services
742 as measured by the Gross National Product Implicit Price Deflator of the Bureau of Economic
743 Analysis, U.S. Department of Commerce calculated as provided in Section 63-38c-202 .
744 (8) (a) "Maximum allowable appropriations limit" means the appropriations that could
745 be, or could have been, spent in any given year under the limitations of this chapter.
746 (b) "Maximum allowable appropriations limit" does not mean actual appropriations
747 spent or actual expenditures.
748 (9) "Most recent fiscal year's inflation index" means the fiscal year inflation index two
749 fiscal years previous to the fiscal year for which the maximum allowable inflation and
750 population appropriations limit is being computed under this chapter.
751 (10) "Most recent fiscal year's population" means the fiscal year population two fiscal
752 years previous to the fiscal year for which the maximum allowable inflation and population
753 appropriations limit is being computed under this chapter.
754 (11) "Population" means the number of residents of the state as of July 1 of each year
755 as calculated by the Governor's Office of Planning and Budget according to the procedures and
756 requirements of Section 63-38c-202 .
757 (12) "Revenues" means the revenues of the state from every tax, penalty, receipt, and
758 other monetary exaction and interest connected with it that are recorded as unrestricted revenue
759 of the General Fund and from non-Uniform School Fund income tax revenues, except as
760 specifically exempted by this chapter.
761 (13) "Security" means any bond, note, warrant, or other evidence of indebtedness,
762 whether or not the bond, note, warrant, or other evidence of indebtedness is or constitutes an
763 "indebtedness" within the meaning of any provision of the constitution or laws of this state.
764 Section 8. Section 72-2-108 is amended to read:
765 72-2-108. Apportionment of funds available for use on class B and class C roads
766 -- Bonds.
767 (1) For purposes of this section:
768 (a) "Graveled road" means a road:
769 (i) that is:

770 (A) graded; and
771 (B) drained by transverse drainage systems to prevent serious impairment of the road
772 by surface water;
773 (ii) that has an improved surface; and
774 (iii) that has a wearing surface made of:
775 (A) gravel;
776 (B) broken stone;
777 (C) slag;
778 (D) iron ore;
779 (E) shale; or
780 (F) other material that is:
781 (I) similar to a material described in Subsection (1)(a)(iii)(A) through (E); and
782 (II) coarser than sand.
783 (b) "Paved road" includes a graveled road with a chip seal surface.
784 (c) "Road mile" means a one-mile length of road, regardless of:
785 (i) the width of the road; or
786 (ii) the number of lanes into which the road is divided.
787 (d) "Weighted mileage" means the sum of the following:
788 (i) paved road miles multiplied by five;
789 (ii) graveled road miles multiplied by two; and
790 (iii) all other road type road miles multiplied by one.
791 (2) Subject to the provisions of [Subsections] Subsection (3) [through (5)], funds in the
792 class B and class C roads account shall be apportioned among counties and municipalities in
793 the following manner:
794 (a) 50% in the ratio that the class B roads weighted mileage within each county and
795 class C roads weighted mileage within each municipality bear to the total class B and class C
796 roads weighted mileage within the state; and
797 (b) 50% in the ratio that the population of a county or municipality bears to the total
798 population of the state as of the last official federal census or the United States Bureau of
799 Census estimate, whichever is most recent, except that if population estimates are not available
800 from the United States Bureau of Census, population figures shall be derived from the estimate

801 from the Utah Population Estimates Committee.
802 (3) For purposes of Subsection (2)(b), "the population of a county" means:
803 (a) the population of a county outside the corporate limits of municipalities in that
804 county, if the population of the county outside the corporate limits of municipalities in that
805 county is not less than 14% of the total population of that county, including municipalities; and
806 (b) if the population of a county outside the corporate limits of municipalities in the
807 county is less than 14% of the total population:
808 (i) the aggregate percentage of the population apportioned to municipalities in that
809 county shall be reduced by an amount equal to the difference between:
810 (A) 14%; and
811 (B) the actual percentage of population outside the corporate limits of municipalities in
812 that county; and
813 (ii) the population apportioned to the county shall be 14% of the total population of
814 that county, including incorporated municipalities.
815 [(4) (a) If an apportionment under Subsection (2) to a county or municipality is less
816 than 110% of the amount apportioned to the county or municipality from the class B and class
817 C roads account for fiscal year 1996-97, the department shall:]
818 [(i) reapportion the funds under Subsection (2) to ensure that the county or
819 municipality receives an amount equal to 110% of the amount apportioned to the county or
820 municipality from the class B and class C roads account for fiscal year 1996-97; and]
821 [(ii) decrease proportionately as provided in Subsection (4)(b) the apportionments to
822 counties and municipalities for which the reapportionment under Subsection (4)(a)(i) does not
823 apply.]
824 [(b) The aggregate amount of the funds that the department shall decrease
825 proportionately from the apportionments under Subsection (4)(a)(ii) is an amount equal to the
826 aggregate amount reapportioned to counties and municipalities under Subsection (4)(a)(i).]
827 [(5) (a) (i) In addition to the apportionment adjustments made under Subsection (4), a
828 county or municipality that qualifies for reapportioned monies under Subsection (4)(a)(i) shall
829 receive 1/3 of the percentage increase in the class B and C road account for the current fiscal
830 year over the previous fiscal year.]
831 [(ii) Any percentage increase calculated under Subsection (5)(a)(i) may not include any

832 increases from increases in fees or tax rates.]
833 [(b) The adjustment under Subsection (5)(a) shall be made in the same way as provided
834 in Subsection (4)(a)(ii) and (b).]
835 [(6)] (4) The governing body of any municipality or county may issue bonds
836 redeemable up to a period of ten years under Title 11, Chapter 14, Local Government Bonding
837 Act, to pay the costs of constructing, repairing, and maintaining class B or class C roads and
838 may pledge class B or class C road funds received pursuant to this section to pay principal,
839 interest, premiums, and reserves for the bonds.
840 Section 9. Section 72-2-117 is amended to read:
841 72-2-117. Transportation Corridor Preservation Revolving Loan Fund --
842 Distribution -- Repayment -- Rulemaking.
843 (1) There is created the Transportation Corridor Preservation Revolving Loan Fund
844 within the Transportation Fund.
845 (2) The fund shall be funded from the following sources:
846 (a) motor vehicle rental tax imposed under Section 59-12-1201 ;
847 (b) appropriations made to the fund by the Legislature;
848 (c) contributions from other public and private sources for deposit into the fund;
849 (d) interest earnings on cash balances;
850 (e) all monies collected for repayments and interest on fund monies;
851 (f) all monies collected from rents and sales of real property acquired with fund
852 monies; and
853 (g) proceeds from general obligation bonds, revenue bonds, or other obligations as
854 authorized by Title 63B, Bonds.
855 (3) All monies appropriated to the Transportation Corridor Preservation Revolving
856 Loan Fund are nonlapsing.
857 (4) (a) The commission shall authorize the expenditure of fund monies to allow the
858 department to acquire real property or any interests in real property for state, county, and
859 municipal transportation corridors subject to:
860 (i) monies available in the fund;
861 (ii) rules made under Subsection (7); and
862 (iii) Subsection (9).

863 (b) Fund monies may be used to pay interest on debts incurred in accordance with this
864 section.
865 (5) Administrative costs [of the Transportation Corridor Preservation Revolving Loan
866 Fund] for transportation corridor preservation shall be paid from the fund.
867 (6) The department:
868 (a) may apply to the commission under this section for monies from the Transportation
869 Corridor Preservation Revolving Loan Fund for a specified transportation corridor project,
870 including for county and municipal projects; and
871 (b) shall repay the fund monies authorized for the project to the fund as required under
872 Subsection (7).
873 (7) The commission shall:
874 (a) administer the Transportation Corridor Preservation Revolving Loan Fund to:
875 (i) preserve transportation corridors;
876 (ii) promote long-term statewide transportation planning;
877 (iii) save on acquisition costs; and
878 (iv) promote the best interests of the state in a manner which minimizes impact on
879 prime agricultural land;
880 (b) prioritize fund monies based on considerations, including:
881 (i) areas with rapidly expanding population;
882 (ii) the willingness of local governments to complete studies and impact statements
883 that meet department standards;
884 (iii) the preservation of corridors by the use of local planning and zoning processes;
885 (iv) the availability of other public and private matching funds for a project; and
886 (v) the cost-effectiveness of the preservation projects;
887 (c) designate high priority corridor preservation projects in cooperation with a
888 metropolitan planning organization;
889 (d) administer the program for the purposes provided in this section;
890 (e) prioritize fund monies in accordance with this section; and
891 (f) make rules in accordance with Title 63, Chapter 46a, Utah Administrative
892 Rulemaking Act, establishing:
893 (i) the procedures for the awarding of fund monies;

894 (ii) the procedures for the department to apply for transportation corridor preservation
895 monies for projects; and
896 (iii) repayment conditions of the monies to the fund from the specified project funds.
897 (8) (a) The proceeds from any bonds or other obligations secured by revenues of the
898 Transportation Corridor Preservation Revolving Loan Fund shall be used for:
899 (i) the acquisition of real property in hardship cases; and
900 (ii) any of the purposes authorized for funds in the Transportation Corridor
901 Preservation Revolving Loan Fund under this section.
902 (b) The commission shall pledge the necessary part of the revenues of the
903 Transportation Corridor Preservation Revolving Loan Fund to the payment of principal of and
904 interest on the bonds or other obligations.
905 (9) (a) The department may not apply for monies under this section unless the highway
906 authority has an access management policy or ordinance in effect that meets the requirements
907 under Subsection (9)(b).
908 (b) The access management policy or ordinance shall:
909 (i) be for the purpose of balancing the need for reasonable access to land uses with the
910 need to preserve the smooth flow of traffic on the highway system in terms of safety, capacity,
911 and speed; and
912 (ii) include provisions:
913 (A) limiting the number of conflict points at driveway locations;
914 (B) separating conflict areas;
915 (C) reducing the interference of through traffic;
916 (D) spacing at-grade signalized intersections; and
917 (E) providing for adequate on-site circulation and storage.
918 (c) The department shall develop a model access management policy or ordinance that
919 meets the requirements of this Subsection (9) for the benefit of a county or municipality under
920 this section.
921 (10) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
922 Act, the commission shall make rules establishing a corridor preservation advisory council.
923 (b) The corridor preservation advisory council shall:
924 (i) assist with and help coordinate the corridor preservation efforts of the department

925 and local governments;
926 (ii) provide recommendations and priorities concerning corridor preservation and the
927 use of fund monies to the department and to the commission; and
928 (iii) include members designated by each metropolitan planning organization in the
929 state to represent local governments that are involved with corridor preservation through
930 official maps and planning.
931 Section 10. Section 72-2-117.5 is amended to read:
932 72-2-117.5. Local Transportation Corridor Preservation Fund -- Distribution.
933 (1) As used in this section:
934 (a) "Council of governments" means a decision-making body in each county composed
935 of the county governing body and the mayors of each municipality in the county.
936 (b) "Metropolitan planning organization" has the same meaning as defined in Section
937 72-1-208.5 .
938 (2) There is created the Local Transportation Corridor Preservation Fund within the
939 Transportation Fund.
940 (3) The fund shall be funded from the following sources:
941 (a) a local option transportation corridor preservation fee imposed under Section
942 41-1a-1222 ;
943 (b) appropriations made to the fund by the Legislature;
944 (c) contributions from other public and private sources for deposit into the fund;
945 (d) interest earnings on cash balances;
946 (e) all monies collected from rents and sales of real property acquired with fund
947 monies;
948 (f) proceeds from general obligation bonds, revenue bonds, or other obligations issued
949 as authorized by Title 63B, Bonds; and
950 (g) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii)
951 and required by Subsection 59-12-1703 (7)(b)(i) to be deposited into the fund.
952 (4) (a) All monies appropriated to the Local Transportation Corridor Preservation Fund
953 are nonlapsing.
954 (b) The State Tax Commission shall provide the department with sufficient data for the
955 department to allocate the revenues:

956 (i) provided under Subsection (3)(a) to each county imposing a local option
957 transportation corridor preservation fee under Section 41-1a-1222 ; and
958 (ii) provided under Subsection 59-12-1703 (4)(a)(ii) to each county imposing a county
959 option sales and use tax for transportation.
960 (c) The monies allocated under Subsection (4)(b):
961 (i) shall be used for the purposes provided in this section for each county; and
962 (ii) are allocated to each county as provided in this section:
963 (A) with the condition that the state will not be charged for any asset purchased with
964 the monies allocated under Subsection (4)(b); and
965 (B) are considered a local matching contribution for the purposes described under
966 Section 72-2-123 if used on a state highway.
967 (d) Administrative costs of the department to implement this section shall be paid from
968 the fund.
969 (5) (a) The department shall authorize the expenditure of fund monies to allow a
970 highway authority to acquire real property or any interests in real property for state, county, and
971 municipal transportation corridors subject to:
972 (i) monies available in the fund to each county under Subsection (4)(b); and
973 (ii) the provisions of this section.
974 (b) Fund monies may be used to pay interest on debts incurred in accordance with this
975 section.
976 (c) (i) (A) Fund monies may be used to pay maintenance costs of properties acquired
977 under this section but limited to a total of 5% of the purchase price of the property.
978 (B) Any additional maintenance cost shall be paid from funds other than under this
979 section.
980 (C) Revenue generated by any property acquired under this section is excluded from
981 the limitations under this Subsection (5)(c)(i).
982 (ii) Fund monies may be used to pay direct costs of acquisition of properties acquired
983 under this section.
984 (d) Fund monies allocated under Subsection (4)(b) may be used by a county highway
985 authority for countywide transportation planning if:
986 (i) the county is not included in a metropolitan planning organization;

987 (ii) the transportation planning is part of the county's continuing, cooperative, and
988 comprehensive process for transportation planning, corridor preservation, right-of-way
989 acquisition, and project programming;
990 (iii) no more than four years allocation every 20 years to each county is used for
991 transportation planning under this Subsection (5)(d); and
992 (iv) the county otherwise qualifies to use the fund monies as provided under this
993 section.
994 (e) (i) Fund monies allocated under Subsection (4)(b) may be used by a county
995 highway authority for transportation corridor planning that is part of the corridor elements of an
996 ongoing work program of transportation projects.
997 (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
998 direction of:
999 (A) the metropolitan planning organization if the county is within the boundaries of a
1000 metropolitan planning organization; or
1001 (B) the department if the county is not within the boundaries of a metropolitan
1002 planning organization.
1003 (6) (a) (i) The Local Transportation Corridor Preservation Fund shall be used to
1004 preserve transportation corridors, promote long-term statewide transportation planning, save on
1005 acquisition costs, and promote the best interests of the state in a manner which minimizes
1006 impact on prime agricultural land.
1007 (ii) The Local Transportation Corridor Preservation Fund shall only be used to preserve
1008 a highway corridor that is:
1009 (A) right-of-way for a state highway; or
1010 (B) right-of-way for a minor arterial highway as defined in Section 72-4-102.5 .
1011 [(ii)] (iii) The Local Transportation Corridor Preservation Fund may not be used for a
1012 transportation corridor that is primarily a recreational trail as defined under Section
1013 63-11a-101 .
1014 (b) (i) The department shall develop and implement a program to educate highway
1015 authorities on the objectives, application process, use, and responsibilities of the Local
1016 Transportation Corridor Preservation Fund as provided under this section to promote the most
1017 efficient and effective use of fund monies including priority use on designated high priority

1018 corridor preservation projects.
1019 (ii) The department shall develop a model transportation corridor property acquisition
1020 policy or ordinance that meets federal requirements for the benefit of a highway authority to
1021 acquire real property or any interests in real property under this section.
1022 (c) The department shall authorize the expenditure of fund monies after determining
1023 that the expenditure is being made in accordance with this section from applications that are:
1024 (i) made by a highway authority; [and]
1025 (ii) endorsed by the council of governments[.]; and
1026 (iii) for a right-of-way purchase for a state highway or minor arterial highway.
1027 (7) (a) (i) A council of governments may establish a council of governments
1028 endorsement process which includes prioritization and application procedures for use of the
1029 monies allocated to each county under this section.
1030 (ii) The endorsement process under Subsection (7)(a)(i) may include review or
1031 endorsement of the preservation project by the:
1032 (A) metropolitan planning organization if the county is within the boundaries of a
1033 metropolitan planning organization; or
1034 (B) the department if the county is not within the boundaries of a metropolitan
1035 planning organization.
1036 (b) All fund monies shall be prioritized by each highway authority and council of
1037 governments based on considerations, including:
1038 (i) areas with rapidly expanding population;
1039 (ii) the willingness of local governments to complete studies and impact statements
1040 that meet department standards;
1041 (iii) the preservation of corridors by the use of local planning and zoning processes;
1042 (iv) the availability of other public and private matching funds for a project;
1043 (v) the cost-effectiveness of the preservation projects;
1044 (vi) long and short-term maintenance costs for property acquired; and
1045 (vii) whether the transportation corridor is included as part of:
1046 (A) the county and municipal master plan; and
1047 (B) (I) the statewide long range plan; or
1048 (II) the regional transportation plan of the area metropolitan planning organization if

1049 one exists for the area.
1050 (8) (a) Unless otherwise provided by written agreement with another highway
1051 authority, the highway authority that holds the deed to the property is responsible for
1052 maintenance of the property.
1053 (b) The transfer of ownership for property acquired under this section from one
1054 highway authority to another shall include a recorded deed for the property and a written
1055 agreement between the highway authorities.
1056 (9) (a) The proceeds from any bonds or other obligations secured by revenues of the
1057 Local Transportation Corridor Preservation Fund shall be used for the purposes authorized for
1058 funds under this section.
1059 (b) The highway authority shall pledge the necessary part of the revenues of the Local
1060 Transportation Corridor Preservation Fund to the payment of principal and interest on the
1061 bonds or other obligations.
1062 (10) (a) A highway authority may not apply for monies under this section unless the
1063 highway authority has:
1064 (i) a transportation corridor property acquisition policy or ordinance in effect that
1065 meets federal requirements for the acquisition of real property or any interests in real property
1066 under this section; and
1067 (ii) an access management policy or ordinance in effect that meets the requirements
1068 under Subsection 72-2-117 (9).
1069 (b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has a
1070 written agreement with the department for the acquisition of real property or any interests in
1071 real property under this section.
1072 Section 11. Section 72-2-121 is amended to read:
1073 72-2-121. Public Transportation System Tax Highway Fund.
1074 (1) There is created a special revenue fund entitled the Public Transportation System
1075 Tax Highway Fund.
1076 (2) The fund consists of monies generated from the following revenue sources:
1077 (a) any voluntary contributions received for new construction, major renovations, and
1078 improvements to Interstate 15 and state highways within a county of the first class; and
1079 (b) the portion of the sales and use tax described in Subsection 59-12-502 (5)(a)(ii)

1080 deposited in or transferred to the fund through an interlocal agreement[; and].
1081 [(c) the portion of the sales and use tax described in Subsection 59-12-1703 (4)(a)(ii)
1082 and required by Subsection 59-12-1703 (7)(b)(ii) to be deposited in or transferred to the fund.]
1083 (3) (a) The fund shall earn interest.
1084 (b) All interest earned on fund monies shall be deposited into the fund.
1085 (4) The executive director may use fund monies, as prioritized by the Transportation
1086 Commission[: (a) for the portion of the monies generated from the revenue sources described
1087 in Subsections (2)(a) and (b)], only for new construction, major renovations, and improvements
1088 to Interstate 15 and state highways within a county of the first class and to pay any debt service
1089 and bond issuance costs related to those projects[; and].
1090 [(b) for the portion of the monies generated from the revenue sources described in
1091 Subsection (2)(c), only for state highway corridor preservation for new state highway projects
1092 within a county of the first class, to pay any debt service and bond issuance costs related to
1093 those projects, and shall not supplant monies already designated for state projects.]
1094 (5) The additional administrative costs of the department to administer this fund shall
1095 be paid from the monies in the fund.
1096 Section 12. Section 72-2-125 is enacted to read:
1097 72-2-125. Mountain View Corridor Fund.
1098 (1) As used in this section, "Mountain View Corridor" means the land area of Salt Lake
1099 County running from Interstate 80 south between SR-154 and SR-111 to 12600 South and then
1100 south and southeasterly to the northern portion of Utah County west of SR-15.
1101 (2) There is created a special revenue fund within the Transportation Fund entitled the
1102 Mountain View Corridor Fund.
1103 (3) The fund consists of monies generated from the following sources:
1104 (a) any voluntary contributions received for the maintenance, construction,
1105 reconstruction, or renovation of a state highway within the Mountain View Corridor;
1106 (b) appropriations made to the fund by the Legislature;
1107 (c) a local option transportation corridor preservation fee imposed in a county of the
1108 first class under Section 41-1a-1222 ;
1109 (d) a portion of the Public Transit Tax imposed in a county of the first class under
1110 Section 59-12-502 ; and

1111 (e) a portion of the County Option Sales and Use Tax for Transportation tax revenue
1112 imposed in a county of the first class that is designated for corridor preservation under Section
1113 59-12-1703 .
1114 (4) (a) The fund shall earn interest.
1115 (b) All interest earned on fund monies shall be deposited into the fund.
1116 (5) The executive director may use fund monies only to pay for:
1117 (a) the acquisition of real property within the Mountain View Corridor;
1118 (b) a highway construction project within the Mountain View Corridor; and
1119 (c) any debt service and bond issuance costs related to that project.
1120 (6) The revenues described in Subsections (3)(c), (d), and (e) that are deposited in the
1121 fund and used in accordance with Subsection (5) are considered a local matching contribution
1122 for the purposes described under Section 72-2-123 .
1123 Section 13. Effective date.
1124 This bill takes effect on July 1, 2007.