First Substitute S.B. 170

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House Committee Amendments 2-21-2007 dd/rlr This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Tue, Feb 13, 2007 at 12:51 PM by rday. --> This document includes House Committee Amendments incorporated into the bill on Wed, Feb 21, 2007 at 10:00 AM by ddonat. --> Senator Gene Davis proposes the following substitute bill:

1 DISTRIBUTION OF LOCAL SALES AND USE
2 TAX REVENUES
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Gene Davis
6 House Sponsor: Gregory H. Hughes

7 Cosponsors:

Curtis S. Bramble

Howard A. Stephenson

8
9 LONG TITLE
10 General Description:
11 This bill amends the Local Sales and Use Tax Act to modify the distribution of
12 revenues collected from the tax.
13 Highlighted Provisions:
14 This bill:
15 . modifies the calculation of the minimum tax revenue distribution certain counties,
16 cities, and towns receive; H. and
17 [ . modifies the time period during which a county, city, or town may receive the
18 minimum tax revenue distribution; and ] .H
19 . makes technical changes.
20 Monies Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill takes effect on July 1, 2007.
24 Utah Code Sections Affected:
25 AMENDS:

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- 2 - 26 59-12-205, as last amended by Chapters 222 and 253, Laws of Utah 2006
27
28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 59-12-205 is amended to read:
30 59-12-205. Ordinances to conform with statutory amendments -- Distribution of
31 tax revenues -- Determination of population.
32 (1) Each county, city, and town, in order to maintain in effect sales and use tax
33 ordinances adopted pursuant to Section 59-12-204 , shall, within 30 days of any amendment of
34 any applicable provisions of Part 1, Tax Collection, adopt amendments of their respective sales
35 and use tax ordinances to conform with the amendments to Part 1, Tax Collection, insofar as
36 they relate to sales and use taxes.
37 (2) Except as provided in Subsections (3) through (5):
38 (a) 50% of each dollar collected from the sales and use tax authorized by this part shall
39 be paid to each county, city, and town on the basis of the percentage that the population of the
40 county, city, or town bears to the total population of all counties, cities, and towns in the state;
41 and
42 (b) 50% of each dollar collected from the sales and use tax authorized by this part shall
43 be paid to each county, city, and town on the basis of the location where the transaction is
44 consummated as determined under Section 59-12-207 .
45 (3) (a) For fiscal years beginning with fiscal year 1983-84 and ending with fiscal year
46 2005-06, a county, city, or town may not receive a tax revenue distribution less than .75% of
47 the taxable sales within the boundaries of the county, city, or town.
48 (b) The commission shall proportionally reduce monthly distributions to any county,
49 city, or town that, but for the reduction, would receive a distribution in excess of 1% of the
50 sales and use tax revenue collected within the boundaries of the county, city, or town.
51 (4) (a) As used in this Subsection (4):
52 (i) "Eligible county, city, or town" means a county, city, or town that receives $2,000 or
53 more in tax revenue distributions in accordance with Subsection (3) for each of the following
54 fiscal years:
55 (A) fiscal year 2002-03;
56 (B) fiscal year 2003-04; and

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House Committee Amendments 2-21-2007 dd/rlr

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Senate 3rd Reading Amendments 2-13-2007 rd/rlr 57

(C) fiscal year 2004-05.
58 (ii) "Minimum tax revenue distribution" means the greater of:
59 (A) the total amount of tax revenue distributions an eligible county, city, or town
60 receives from a tax imposed in accordance with this part for fiscal year [2004-05.] 2000-01;
60a H. [ or ] .H
61 (B) the total amount of tax revenue distributions an eligible county, city, or town
62 receives from a tax imposed in accordance with this part for fiscal year 2004-05 H. [ . ] ; or
62a (C) the total amount of tax revenue distributions an eligible county, city, or town
62b receives from a tax imposed in accordance with this part for fiscal year 2005-06. .H
63 (b) (i) Notwithstanding Subsection (2) and except as provided in Subsection (4)(b)(ii),
64 beginning with fiscal year 2006-07 and ending with fiscal year 2012-13, an eligible county,
65 city, or town shall receive a tax revenue distribution for a tax imposed in accordance with this
66 part equal to the greater of:
67 (A) the payment required by Subsection (2); or
68 (B) the minimum tax revenue distribution.
69 (ii) If the tax revenue distribution required by Subsection (4)(b)(i) for an eligible
70 county, city, or town is equal to the amount described in Subsection (4)(b)(i)(A) for three
71 consecutive fiscal years, for fiscal years beginning with the fiscal year immediately following
72 that three consecutive fiscal year period, the eligible county, city, or town shall receive the tax
73 revenue distribution equal to the payment required by Subsection (2).
74 (c) For S. [ [ ] a fiscal year beginning with [ ] ] .S fiscal year 2013-14 S. [ [ ] and
74a ending with fiscal year
75 2015-16 [ ] only ] .S , an eligible county, city, or town shall receive the minimum tax revenue
76 distribution for that fiscal year if for fiscal year 2012-13 the payment required by Subsection
77 (2) to that eligible county, city, or town is less than or equal to the product of:
78 (i) the minimum tax revenue distribution; and
79 (ii) .90.
80 (5) Notwithstanding Subsection (2), if a county, city, or town imposes a tax authorized
81 by this part on any amounts paid or charged by a seller that collects a tax in accordance with
82 Subsection 59-12-107 (1)(b), the revenues generated by the tax shall be distributed as provided
83 in Subsection 59-12-103 (3)(c).
84 (6) (a) Population figures for purposes of this section shall be based on the most recent
85 official census or census estimate of the United States Census Bureau.
86 (b) If a needed population estimate is not available from the United States Census
87 Bureau, population figures shall be derived from the estimate from the Utah Population

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- 4 - 88 Estimates Committee created by executive order of the governor.
89 (7) The population of a county for purposes of this section shall be determined solely
90 from the unincorporated area of the county.
91 Section 2. Effective date.
92 This bill takes effect on July 1, 2007.